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6 Reasons Why Ethereum Price is Surging

Ethereum is entering new realms of price discovery – here are six reasons why Ethereum is showing significant strength at the outset of 2021 and the ETH price continues to rise.

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Ethereum continues to press forward to new all time highs as ETH price surged to $1756 for the first time last night according to CoinMarketCap. Ether has since fallen to $1,674 at the time of writing.

As ETH prices breached $1,700 for the first time, Paolo Ardoino, CTO at Bitfinex shared his thoughts on Ethereum’s surging popularity with Blockchain.News in a note:

“Ethereum is seemingly ‘going to the moon’ as it reaches another all-time high above US$1,700. There are lots of moving parts to the second biggest cryptocurrency by market capitalization. Sceptics may focus on the challenges that it faces. But hackers and coders love to solve problems. Ethereum was designed to be a currency to fuel an ecosystem of applications and we are still at the very beginning of this journey. Meanwhile, the coming CME Futures launch represents another milestone towards crypto becoming an established asset class.”

Below are six reasons why Ethereum is showing so much strength and why the ETH price continues to rise.

Reason 1:

A large number of mainstream brokerages have restricted transactions, resulting in a large number of WSB (WallStreetBets) style retail investors investing in the decentralized cryptocurrency market.

WBS, a turbulent U.S. retail investor group joined forces against Wall Street short sellers by targeting a selection of hedge fund shorted stocks, mainly GameStop (GME) and AMC. Following the coordinated buying attack of WSB, mainstream brokerages like Robinhood began restricting the purchases of some WSB targets stocks such as AMC NOK BB due to liquidation risks.

As a result, the retail investors have coordinated to focus on the decentralized virtual currency trading markets, and the influx of such a large number of retail investors has been a factor in accelerating the rise of Ethereum.

Reason 2:

Since January 4, Ethereum has directly risen to $1,350 with a thunderous momentum. The market value reached its highest peak on February 5 today, and continue to rise today. According to CoinMarketCap data, the current market capitalization of Ethereum is about $183,092,738,810, and the price is trading at around $1603.52.

Technical analysis shows that Ethereum has been moving in an ascending channel for the past two days and still has strong upwards momentum. From the perspective of transaction volume, starting from 2021, the overall average transaction volume is higher than the average levels of both 2020 and 2019. The promotion of transaction volume is also one of the factors contributing to the continued rise of Ethereum.

20210205-ethereum-charts-coinmarketcap.jpeg

Source: https://coinmarketcap.com/currencies/ethereum/

Reason 3:

According to statistics from the Ethereum options market in the next few days the trading volume in the nearly expiry date, the volume of call options are much bigger than that of put options. The market has shown a bullish sentiment. The main driving force for this sharp rise comes from capital.

bybt_chart (1).jpg

Source: https://www.bybt.com/options

bybt_chart.jpg

Source: https://www.bybt.com/options

Reason 4: The strong rise of Defi led to the strong rise of ETH.

In recent days, the Defi ecosystem has repeatedly set new highs. Up to now, the total value locked has reached over 48 billion U.S. dollars and the true locked up value of Defi has exceeded 34 billion U.S. dollars, reaching $35.55 billion—a new record high. Ethereum remains intrinsically tied to the DeFi markets and continues to be the most utilized smart contract blockchain in the space and consequently the ETH price continues to surge with the decentralized market.

04.png

Source: https://debank.com/ranking/locked_value?chart_date=3M

According to data of Debank ,the top five projects in terms of lock-up volume are Maker, WBTC, Uniswap, AAVE and Compound. These five projects have their own merits, and then those who are chasing afterwards are also catching up. Whenever a project rushes into the top five, the token value will reach a new peak.

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Source: https://debank.com/ranking/locked_value

Reason 5: Institutional investor arbitrage

Institutional arbitrage may boost ETH’s recent gains, speculating that investors are buying ETH to solve the loan problem of ETHE stock.

Over the past 3 days, the Grayscale Fund bought a large amount of ETH, and its holdings reached the highest peak. The total holding of eth reached 3.02 million US.dollar. In the past 7 days, a total of 83678 were bought. eth, in the past 24 hours, the Grayscale Fund bought a large amount of eth, the amount reached 12684, the inflow of grayscale Ethereum greatly exceeded BTC, and the inflow of Ethereum capital rose sharply.

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Source: https://debank.com/ranking/locked_value

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Source: https://www.bybt.com/Grayscale

Reason 6: The positive impact of ETH 2.0

On the current Ethereum protocol, miners use special mining machines that consume large amounts of electricity to mine. The reform of Ethereum 2.0 allows Ethereum holders to pledge Ethereum tokens to become validators in the network, and participate in it to obtain transaction fees. Part of the revenue, and part of the additional tokens.

Under Ethereum 2.0, ETH is no longer a pure consumer commodity, but a productive commodity that combines the nature of commodities and equity – ETH holders can mortgage tokens for interest. Obtain cash flow income, similar to equity securities.

Image source: Shutterstock

Source: https://blockchain.news/analysis/6-reasons-why-ethereum-price-is-surging

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Blockchain news

Crypto Market Roundup: Top Earners and Losers for Today

Cardano and The Graph are the top gainers today, while the performance of Shiba Inu and IoTex hit the worst to become the biggest losers today.

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The selling pressure in the global crypto market was stumped on Friday as several coins began paring off their losses from the previous day.

Bitcoin’s market strides were visible as the largest cryptocurrency surged 1.72% to $46,146.24 at the time of writing. Ethereum (ETH) is also favoured by the bulls, inching a 3.04% gain to $3,237.66, according to CoinMarketCap.

Amidst the broader rise in price, here are the top gainers and losers for today, August 13.

Top Gainers

The Graph (GRT) is leading the altcoin surge today after the coin’s buyers pushed the price to $0.9413, atop an 18.30% gain. At this pace, The Graph is on track to break the $1 resistance level and journey down toward its 90-day high of $1.42. The Graph’s use case permits an increased embrace. It plays a role as an indexing protocol for querying data for networks like Ethereum and IPFS, supporting many applications in DeFi and the broader Web3 ecosystem.

Meanwhile, Cardano (ADA) has also shifted its price to its highest price gains of all time, surging above the $2 psychological level for the first time in 3 months. With several test nets deployed, the coin has enjoyed increased sentiment from buyers as the broader digital currency ecosystem prepares for the arrival of the Alonzo upgrade that will aid the emergence of smart contracts and DApps on the Cardano blockchain. The token has been tagged as undervalued. However, we may begin to see the coin’s true worth come to life with the new upgrade.

Top Losers

The majority of the tokens are paring off their losses. However, meme token Shiba Inu (SHIB) is the biggest loser amongst the altcoins topping the chart after inking a 0.50% slip in price to $0.00000795. IoTex (IOTX) was down 3.36% to $0.1102 during the intraday.

The momentum in the market may drive in such buying volatility that will stir these coins off the red zones. The global crypto market is currently on track to re-register a $2 trillion market cap to cover the weekend.

Image source: Shutterstock

The Graph (GRT) is leading the altcoin surge today after the coin’s buyers pushed the price to $0.9413, atop an 18.30% gain. At this pace, The Graph is on track to break the $1 resistance level and journey down toward its 90-day high of $1.42. The Graph’s use case permits an increased embrace. It plays a role as an indexing protocol for querying data for networks like Ethereum and IPFS, supporting many applications in DeFi and the broader Web3 ecosystem.

Source: https://blockchain.news/analysis/crypto-market-roundup-top-earners-and-losers-today

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Ethereum is Expected to Undergo a 90% Daily Emission Reduction Following ETH 2.0 Upgrade

Market analyst Lark Davis believes that Ethereum 2.0 upgrade will prompt a 90% daily emission reduction from 12,800 to 1,280.

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Ethereum (ETH) was up by 9.72% in the past week to breach the psychological price of $2K during intraday trading. ETH’s price stood at $2,056 as the second-largest cryptocurrency continues to gain momentum.

Market analyst Lark Davis believes that the upgrade of Ethereum 2.0 will prompt a 90% daily emission reduction from 12,800 to 1,280. He explained:

“The other wildly important aspect of The Merger is that ETH will undergo a 90% reduction in daily emission. Basically from 12,800 a day to 1,280 a day. Yearly inflation from 4.3% down to 0.43%. This is equivalent to 3 Bitcoin halvings, and is only months away.”

Ethereum 2.0, also known as the Beacon Chain, was launched in December 2020 and was regarded as a game-changer that seeks to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.

Davis also noted that Ethereum would experience “Triple Halving” as part of the ETH 2.0 upgrade, a highly significant economic event for the asset’s price in the coming years.

Ethereum whales cumulatively hold 60.52 million ETH

According to on-chain metrics provider Santiment:

“Ethereum whales that hold between 10k and 1 million ETH in their respective wallets now own a cumulative total of 60.52m coins. This is the highest amount held by this tier since in 5 weeks, and represents a 1.65million ETH accumulation in the past 6 days.”

Image

Therefore, ETH whales continue investing in this asset, which indicates high confidence levels.

Ethereum has been making headlines based on its notable strides. For instance, ETH has had an impressive return on investment (ROI) of 171% this year compared to tech stocks like Microsoft, Facebook, and Apple. Furthermore, Davis had previously noted that Ethereum was settling three times more value on-chain than Bitcoin daily.

Image source: Shutterstock

“The other wildly important aspect of The Merger is that ETH will undergo a 90% reduction in daily emission. Basically from 12,800 a day to 1,280 a day. Yearly inflation from 4.3% down to 0.43%. This is equivalent to 3 Bitcoin halvings, and is only months away.”

Source: https://blockchain.news/analysis/ethereum-is-expected-undergo-a-90-percent-daily-emission-reduction-following-eth-2.0-upgrade

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South Korea Authorities Seizes $47M in Crypto from Tax Evaders

South Korean authorities have made the largest crypto seizures in the country’s history. $47 million in digital currencies have been confiscated.

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Authorities in the South Korean province of Gyeonggi have conducted the largest tax seizures ever, seizing $47 million in Bitcoin (BTC) and Ethereum (ETH).


According to the coverage reported by the Financial Times, the seizure involved about 12,000 tax evaders. The authority has called the action the largest “cryptocurrency seizure for back taxes in Korean history.”

Those “tax dodgers” committed the crime by connecting their trading or investment activities on trading platforms operating in the country with their phone numbers. The process, though rigorous, had to be done manually as crypto exchanges were unable to fully provide the Know-Your-Customer (KYC) details of the defaulting taxpayers. In addition, the FT report was unclear which digital currency trading platform was involved in the investigation.

South Korea has a robust cryptocurrency trading engagement amongst its citizens, and the country has been making moves to implement accomodating regulations. One of these is the law passed by the Korean National Assembly in March 2020. This law mandates cryptocurrency exchanges to take down customer’s details through KYC and obtain licenses to operate from banks.

While big exchanges such as UpBit have been able to comply, other smaller trading platforms have had their struggles in complying, a situation that was compounded by financial institutions dissociating from crypto exchanges. Besides these, South Korea has long been mulling enforcing a 20% capital gains tax on cryptocurrencies, all of which will be made easier with compliant crypto exchanges.

South Korea is one of the more receptive countries to blockchain and cryptocurrency-related innovations. While crypto has thrived in the country in the past decade, the government is taking bold steps to develop its own Central Bank Digital Currency, the Digital Won. Despite its soft stance, however, the nation has zero-tolerance for fraud amongst crypto entities, as showcased in the ongoing raid of Bithumb exchange amidst a broad fraud investigation.

Image source: Shutterstock

Source: https://blockchain.news/news/south-korea-authorities-seizes-47m-in-crypto-from-tax-evaders

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