TronWeekly

Crypto World News

You are here: Home / Archives for Ether

Ether

Lithuanian Government Acquires 6.5M Euros of Seized Crypto Sale

by

While the crypto market has been steering several into its industry, the government continues to bust scammy projects. Lithuanian government seems to be making the right use of the funds acquired in a past seize. As the price of Bitcoin has been on an uphill journey, selling the king coin or any other crypto coin can bring in immense profits.

Lithuanian Government Sells Bitcoin, Ether and Monero

At the time of writing, the price of Bitcoin had just pushed beyond $19K becoming more profitable than it was in the last two years. As per a recent announcement made by the State Tax Inspectorate [STI] of Lithuania which is the country’s tax authority, several cryptocurrencies were sold.

Previously, the country’s tax authority had seized crypto assets including Bitcoin [BTC], Ethereum [ETH] as well as Monero [XMR]. Recently, STI sold cryptocurrency worth 6.4 million euros, and the funds were further appended to the budget of the state. The STI revealed that conversion of these assets into fiat had taken about a day. The tax authority had to prep before converting crypto into fiat. In the process, they created a digital currency wallet that was previously confiscated.

The director of the State Tax Inspectorate Irina Gavrilova commented on the same and said,

“The whole process was new for the tax administrator, from the takeover of the confiscated cryptocurrencies to their realization.”

Furthermore, the director added that it would be more easygoing for the tax authority to sell seized cryptocurrencies in the future. While the STI did not mention the process and the execution of the selling of the assets, the tax authority seems to have made the right use of confiscated crypto.

Bitcoin in the meantime was headed towards $20K. The king coin was seen trading for $19,105.01. Over the last 24-hours, BTC had surged by 3.57%. ETH had, however, slumped below $600 despite acquiring gains of over 25% in the last seven days.

100,000 Bitcoins are Currently Locked on Ethereum, Should Ether be Worried?

by

Ethereum’s network has single-handedly changed the blockchain scenario in 2020. Well, it might not be that single-handed(More like DeFi handed), but its utilization has been off the charts. With the explosion of DeFi, the hype surrounding the development of ETH 2.0 and the overall price turbulence, has collectively put Ethereum under everyone’s attention.

Recent data from Etherscan also suggested that the number of daily transactions on the Ethereum network surpassed its previous high on September 17th, when the total number of transactions reached 1,406,000. The previous high was clocked in January 2018, with 1,350,000 transactions.

It is fair to say that the on-going development is largely due to the fact that DeFi applications have taken over, surmounting close to 9.70 billion in Total Value Locked(USD) at press time.

However, the growth of Ethereum is currently attracting the largest digital asset on its network as well.

Bitcoin on Ethereum reaches 100,000 locked units

Image

According to the above chart, the total number of Bitcoin currently locked on Ethereum has reached 100,000. While many observed it as a positive, certain proponents were crossed about its long-term implication both Ether and Bitcoin.

Longhash’s Kyle Torpey suggested that from a long-term perspective, it was bad for Ether but Eric Wall opined a balanced outcome. The former lead at Cinnober stated,

“It’s both good and bad. People still become inclined to invest in ETH when they see the activity/utility on the platform going up. Most wBTC on Ethereum aren’t for ethereans forgoing ETH for BTC, it’s for people looking to chase a DeFi yield on their bitcoin holdings.”

While too much change is necessarily a good thing, the rise of non-ETH tokens on Ethereum was indirectly detrimental to Ether’s economy, here’s why.

Rise of non-Eth token reduces Ether’s monetary functionality on Ethereum

It is definitely true that Ether is the base token for Ethereum and for all gas transactions the use case of Ether is predominant. However, with time, if Ether is only used for that particular reason while not being held by investors or traders, a period of under-development will definitely stunt its value.

Michale Saylor, CEO of MicroStrategy recently clarified his decision to invest in Bitcoin because of the very fact that the community defends the network from meaningless change. Bitcoin’s rigidity to stand by its original mode of functionality is a factor of trust. Its assurance to not alter its initial ideology is something that Ethereum lacks, which is now deteriorating Ether’s value.

Innovation is a ket factor of digital assets and Ethereum has definitely taken some major steps in the right direction over the past couple of years. However, the value of Ether might face redundancy over time, if more and more non-ETH tokens receive prominence on its own parent blockchain.

Ethereum and Ether: Are Their Futures Align in Terms of Growth?

by

Ethereum is rapidly becoming the most widely used blockchain in the industry, and its rising transaction fees are evident in the current situation. Congestion has been created for a number of reasons, with DeFi and Tether’s issuance being the top two reasons.

Now, with demand for block space getting out of hand, it was recently reported that Tether had adopted Ethereum’s scaling solution OmiseGo (OMG) network in order to reduce the confirmation time of the transaction,

As indicated earlier, the adoption of OmiseGo token might have helped on its expedition of doubling its value in the past week. However, with Ether largely becoming irrelevant on its own blockchain, is there a future where Ethereum’s growth continues to pull Ether’s value up?

Ether will accrue Ethereum’s value; eventually

According to a recent blog post shared by Ethereum supported by Ryan Sean Adams, it was explained that Ether’s demand would not be replaced on ETH due to three simple reasons. First, the blog stated that Ethereum’s block space demand makes Ether valuable as well because the native token is the only settlement medium on the platform. It was explained,

“There’s virtually an endless amount of use cases for Ethereum’s blockspace. All of it drives a tiny demand for ether.”

Secondly, Adams believed that the primary ethos of cryptocurrencies is to minimize the dependency of capital on centralized entities. DeFi is currently playing a critical role in that movement and it perfectly falls in place with Ethereum’s money protocol.

Right now, Ether is the most trust-minimized asset on the blockchain and Ether will continue to hold capital priority in the ETH economy.

https%3A%2F%2Fbucketeer e05bbc84 baa3 437e 9518 adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fc1189d7d 2c77 4f76 a0b3

The post added,

“This demand for ETH from DeFi is apparent in the data too. There’s now over 4.5 million ETH locked up in Ethereum financial protocols—valued at nearly $2B. This means that roughly 1 in every 25 ETH in circulation is locked up in DeFi right now.”

Lastly, Sean Adams believed that the imminent implementation of Ethereum 2.0 will lead to Ether’s value in the future to be looked as a productive asset. In fairness, in spite of these strong arguments for Ethereum, these are still assumptions based on what can happen whereas the current facts are that Ether has not been able to keep up with Ethereum’s development. Hence, only time will tell if Ether’s price position improves with respect to Ethereum’s growth as a blockchain.

Ethereum’s 2-Year High of $433 Does Not Match its Network Growth

by

In 2020, Ethereum made a name for itself to surprise the community when they least expected a breakout.
On July 21, when Ethereum surged over $170, rising from $230 to $400, ETH proponents were on the verge of believing that anything could happen now. However, people in the crypto space tend to forget about the rally, and over the last 12 days, there has been enough speculation that the ETH rally has been done and dusted.

The largest altcoin managed to pull the rabbit out of the hat, yet again.

Witnessing a surge of 13.10 percent in the last 24-hours, Ethereum went passed its resistance at $400, attaining a high of $433. Right now, the valuation of Ether is at $425 as the altcoin is exhibiting consolidation.

While the Ethereum community rejoiced over the recent rally, metric-wise a lot was going in the network, which was not necessarily positive for the asset.

Ethereum hashrate on a 20-month High; but Daily Active Addresses low

Painting a picture of extreme contraction, it began with Ethereum clocking in a record hashrate of over 201 million GH/s, its highest network rate since mid-July 2018. Now, the increasing hashrate is a notable sign that the network is being used more and more, and activity should be reaching sky-high levels.

Miner revenue from fees and fee ratio multiple

A similar picture was created by the miner revenue, which attained its highest ever levels in Ethereum’s history. ETH miners were earning a profit of 18% on a 30-day average, which indicated the development of the space.

However, Santiment’s chart pictured the extreme opposite of high user involvement.

Image

The chart is a clear explanation that Ethereum’s network is not what it seems at the moment. According to the bar graph, Ethereum’s daily active addresses are on a 67-day low at the moment, recording only 350,000 addresses on 12th August. The network recorded such a low number back on June 7th, when ETH was priced under $250.

After the recent price surge, Santiment expressed its surprise as well. The analytics platform suggested,

Hence, it can be speculated that even though prices are soaring for Ethereum at the moment, they are legitimate holes in the network that does not match price development with ecosystem growth. On paper, Ethereum is undoubtedly the 2nd best crypto asset out there, however, the situation behind the curtains might be a little worse than expected.

Ethereum Price Prediction: ETH May Push Towards $430 if $397 is Crossed

by

Ethereum Price Prediction

Ethereum collapsed on August 2nd, it was pretty frightful. After registering a yearly high of $407 due to high liquidations on both the Bitcoin and Ethereum futures, the altcoin was dealt with by a deafening drop. Dropping to $325 at one point in time, the asset has been able to carve its way above $369 in the last 24 hours, injecting a little optimism on the market.

ETH 1-hour chart

ETH price prediction

At first glance, ETH traders will be salivating on 1st glance on the 1-hour chart. Over the past day, ETH has been oscillating between an ascending channel, which is a predominantly bullish sign in the market. The token is currently right under the resistance at $397, which is holding strong for the moment. Considering the breakout is positive from the pattern, and the asset is able to break through the resistance, a re-test above $407 is likely as well.

However, the bearish divergence between trading volume and price is varying sign. The rally hasn’t been supported by high volume, which might be indicating a false rally at the expense of past performance.

ethereum trading view

From a bullish side, if ETH is able to break above $407, the main thing to watch is the Relative Strength Index or RSI. The buying pressure facilitated by RSI is currently under the resistance at 62, nearing the overbought zone again in the charts.

Any move above this region will give the asset enough moment to possibly register a new high at $430, which was last witnessed back in 2018.

ethereum news

Now, market indicators again illustrated a conflicted future-forward. MACD suggested the trend is bearish since the blue line is above the red line at press time. A bullish reversal is plausible in the charts but there is a case to be made for a bearish presence of CMF.

Chaikin Money Flow or CMF suggested that the capital inflows are currently getting dominated by capital going out, therefore the bullish foundation for the next rally isn’t completely rigid. Over the next 24-hours, the trend will attain more clarity whether a new high will be registered or not for the largest altcoin in the cryptocurrency space.

 

DeFi Total Value Locked in USD Reaches $3.5 Billion; ETH Still Uncorrelated

by

Back on March 13th, when Total Locked Value in DeFi plummeted down to $562 million from an all-time high of $1.28 billion in February, many expected it to be the beginning of the end for Decentralized Finance tokens. Market commentators believed that the hype has fizzled out and DeFi is going to lose its market. Little did they know that the DeFi industry was on its way to exponential growth in 2020.

DEFI

According to DeFi pulse, the total value locked in DeFi has reached a whopping $3.5 billion at press time, but a majority of the growth came over the span of the last 30-45 days.

On June 16th, the TVL under DeFi was close to $1.04 billion but since then, the market cap has improved by $2.5 billion, leading to its all-time high TVL at the time of writing.

The top DeFi tokens incurring high locked USD value are Maker, Aave, Compound, Synthetix, and Curve Finance. Over the past day, Aave and Curve Finance tokens have resulted in a hike of 17.61 and 16.17 percent, taking their locked value to $609 million and $385 million respectively.

Why is DeFi pumping so much?

Now, even though DeFi is based on Ethereum, DeFi’s immense market capture did not lead to an increase in Ether’s valuation. It is solely because Ether’s only functionality in the DeFi space is to be utilized for gas transactions. Other than that, the functionality of DeFi and Ether is largely independent.

DeFi’s massive increment over the past month has been due to the introduction of Yield Farming. This new form of decentralized lending was first launched by Compound’s governance token, which initially took DeFi’s TVL over $2 billion. At the time of writing, Compound had over $553 million in TVL.

Now, continuing on Compound’s blueprint, iEarn Finance or Curve Finance ended up launching its governance token and they released 1000 percent annual percentage yield or API for their investors, which currently makes it the highest-earning pool in DeFi.

Ether’s value continues to lag behind

As reported previously, the high usage of DeFi had led to an explosion of Ethereum transaction fees that were last observed in October 2018. With Ether lagging on its own-parent chain, many were speculating that the ERC-2- tokens may become of secondary importance on Ethereum if DeFi tokens continued to attract such high-levels of interest.