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3 key factors that propelled Ethereum to $2,000 for the first time ever

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The price of Ether (ETH) is surging past $2,000 with strong momentum while gaining a bit of ground on Bitcoin (BTC) in the last 24 hours. 

There are three key reasons behind the explosive rally of Ether, namely the rapid growth of DeFi, the hype around ETH after the CME futures listing, and the decreasing amount of BTC and ETH on exchanges.

ETH/USDT 4-hour price chart (Binance). Source: TradingView.com

CME futures listing institutional hype

Ether hitting $2,000 for the first time ever follows the launch of CME ETH futures earlier this month, which primarily target institutional investors. 

Prior to the listing, there was a popular narrative that the CME listing would cause the price of ETH to decline significantly, because the CME Bitcoin futures listing in 2017 coincided with the local BTC top at the time.

However, ETH has continuously rallied since, breaking past its all-time high and surpassing $2,000 on Feb. 20. The new milestone indicates that there is currently significant institutional hype around ETH, which is also evidenced by Grayscale’s Ethereum Trust resuming the buying of ETH in February.

Explosive growth of DeFi

According to data from Dappradar.com, the total value locked (TVL) of the DeFi market is almost $50 billion.

Defi total value locked. Source: Dappradar

The term TVL is used to measure the amount of capital that is locked up in every DeFi protocol. For instance, if $2 billion are being used on a lending protocol to borrow or loan money, that would mean the TVL of the protocol would be $2 billion.

ETH directly benefits from the high TVL of the DeFi market because ETH is used as a means to pay transaction fees on the Ethereum blockchain network.

Hence, the higher the demand for DeFi protocols and services, the more it benefits the value of ETH in the market.

BTC and ETH reserves continue falling on exchanges 

Meanwhile, the price of Bitcoin is showing no signs of slowing down as it breached $57,000 and is holding the $50,000 area as a solid support level. Part of the reason for this is the decreasing amount of BTC as well as ETH that’s available on exchanges, which reduces sell pressure. 

ETH exchange reserve (red) vs. ETH price (black). Source: CryptoQuant

In addition, as long as the price of Bitcoin continues to demonstrate resilience above $50,000, the strong momentum of ETH would likely be sustained in the foreseeable future.

According to analysts at Santiment, there is also significant interest in Ethereum among the crypto community. When the price of ETH surpassed $2,000, 33% of all crypto discussions were related to ETH. They wrote:

“Well #Ethereum over $2,000 happened quickly, as prices rose all the way up to $2,041 just an hour after our article posted! Address activity is up to one-month high levels. And 33% of all #crypto discussions were related to $ETH when history was made.”

If the momentum of the dominant cryptocurrency in Bitcoin remains intact and investors keep pulling ETH from exchanges, the probability of Ether continuing its rally past the $2,000 level is likely to increase.

Source: https://cointelegraph.com/news/3-key-factors-that-propelled-ethereum-to-2-000-for-the-first-time-ever

Blockchain

Bitcoin HODL Waves Suggest Bull Run Has Barely Started

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Analyzing Bitcoin HODL Waves from previous bull runs as led crypto YouTuber and analyst Lark Davis to the conclusion that this cycle is still in its infancy.

He added that we are just now past the first major price wave, “get ready for wave 2”.

The chart depicts three distinct price waves for every market cycle back to 2011. The current cycle shows just one wave cresting at Bitcoin’s recent all-time high of $58,250 on Feb. 21. This indicates that, if history rhymes, there could be two larger ones to come especially if corporate giants keep buying it.

Bitcoin Being Hodled

HODL Waves are a visualization pioneered by Unchained Capital which shows the cross-section of Bitcoin held in wallets grouped by the age since they last moved. The Bitcoin financial services company explained;

“By comparing the age of bitcoin sitting in addresses to the current US dollar prices, we can make some interesting conjectures about the bitcoin economy and the sentiment of HODLers.”

Glassnode has extrapolated the short-term HODL waves and overlaid them on the logarithmic scale price chart. Using these metrics it does appear that there is a lot more to go with this bull run, but there are many other on-chain and fundamental factors to consider.

One of them is them is the central bank money printing narrative which could drive wild inflation and devalue global currencies. Trillions of new dollars have been printed for stimulus purposes in the U.S. alone since the Covid-19 pandemic put the economy into shutdown mode in early 2020.

Vice President of digital asset strategy at Fundstrat Global Advisor, Leeor Shimron, compared Bitcoin to M1 money stock – the country’s basic money supply that is used as a medium of exchange. He also thinks this cycle could “get very wild” in the face of unprecedented money printing.

BTC Price Outlook

At the time of press, BTC was trading at $49,250, down from its recent weekly high of $52,580 hit in late trading on March 3 according to Tradingview.com.

Momentum is still bullish from a weekend swing low to $43,300 but the asset needs to break above resistance at $55,250 to push towards a new all-time high.

March has traditionally been a bearish month for Bitcoin and crypto markets so this move may come later in the year.

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Source: https://cryptopotato.com/bitcoin-hodl-waves-suggest-bull-run-as-barely-started/

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Blockchain

Ripple CEO files motion to dismiss SEC complaint citing ‘abuse of prosecutorial discretion’

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Ripple CEO Brad Garlinghouse has filed a motion to dismiss the SEC’s amended complaint against him, calling it “regulatory overreach.”

The exec took to Twitter to announce his position on the SEC’s charges against him and Ripple Labs Inc. by sharing a link to the letter filed on his behalf, saying that “it speaks for itself.” According to the said letter, the SEC’s allegations against Garlinghouse fail on account of a number of reasons.

The same, addressed to U.S District Court Judge Analisa Torres, claimed,

“First, the SEC fails to recognize the economic realities of Defendants’ transactions in XRP, the XRP market, and Ripple’s business, each of which exhibits none of the traditional characteristics of an investment contract.”

The motion to dismiss, filed by Cleary Gottlieb Steen and Hamilton, also commented on the SEC’s amended complaint, while also expanding on the regulatory agency personally targeting Garlinghouse for the alleged violation of securities laws.

“Straining to impose personal liability on an executive like Mr. Garlinghouse for simply doing his job where he reasonably understood that his actions complied with the law represents an abuse of prosecutorial discretion that has sent a dangerous signal to entrepreneurs and will chill innovation.”

Garlinghouse was reported to have sold over 60% of his XRP holdings for approximately $159 million at the time of those transactions, leaving him with 200 million XRP tokens. While holding 200 million XRP tokens is a considerably long position, some members of the community feel that Garlinghouse selling a majority of his XRP is disingenuous on his part.

In fact, Ripple’s lawyers have argued that the SEC’s allegations with respect to Garlinghouse’s XRP sales are “vague,” with no particular reference to any of these transactions occurring within the United States.

“The truth is that the vast majority of Mr. Garlinghouse’s XRP sales were made on foreign exchanges, and those transactions do not and cannot violate the federal securities laws,” they asserted.

XRP was trading at $0.4660 at press time, down by over 25% from a high of $0.6338 in February.


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Source: https://ambcrypto.com/ripple-ceo-files-motion-to-dismiss-sec-complaint-citing-abuse-of-prosecutorial-discretion

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OKEx Lists Chiliz, Enables CHZ/USDT and CHZ/BTC Spot Trading

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The blockchain-based fan engagement platform Socios.com received a huge boost after its native asset Chiliz (CHZ) was listed on OKEx – a leading global crypto exchange and derivatives trading platform. The popular digital currency for the sporting and entertainment industries, CHZ became available for spot trading against USDT and BTC at 10 AM UTC on March 3, 2021.

The CHZ blockchain’s Socios.com allows sporting teams and clubs to create Fan Tokens to connect and engage with their fans. These Fan Tokens will act as membership cards, providing its holders with the privilege to participate in various decision-making processes of their favorite teams. In addition, fan token holders will also be eligible for exclusive access to team events, merchandise and other rewards. Socios.com has already partnered with some of the biggest sporting teams and clubs including the likes of AC Milan, FC Barcelona, Juventus, UFC and more.

According to Chiliz, their Fan Token model has also helped sporting organizations unlock new revenue streams, enabling them to overcome losses in the form of poor ticket sales, lost sponsorship deals etc., during the pandemic.

Acknowledging the role of Chiliz in promoting blockchain technology, CEO of OKEx Jay Hao said, “Chiliz has uncovered another key use case for blockchain technology showing how the sports and entertainment industries can adapt to an increasingly digital world and create new revenue streams beyond traditional sources. As more and more fans begin to engage with clubs and teams through fan tokens, the use of cryptocurrencies becomes continuously more mainstream. OKEx couldn’t be happier to support this important initiative.”

Celebrating the new listing, OKEx is distributing $150,000 worth of Fan Tokens to the CHZ community members through lucky draw. Users depositing or trading CHZ on OKEx until March 10, 2021, will be eligible for the giveaway program. Up to $10,000 worth of Fan Tokens is earmarked for referral rewards.

OKEx will be activating CHZ withdrawals on the platform starting 10 AM UTC on March 4, 2021.

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Source: https://www.newsbtc.com/news/company/okex-lists-chiliz-enables-chz-usdt-and-chz-btc-spot-trading/

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