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Asset manager explains why Ethereum’s transaction fees won’t kill ETH

As covered extensively by CryptoSlate over recent days, Ethereum’s network congestion is reaching an untenable point.

The post Asset manager explains why Ethereum’s transaction fees won’t kill ETH appeared first on CryptoSlate.

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As covered extensively by CryptoSlate over recent days, Ethereum’s network congestion is reaching an untenable point. At one point in the past week, the average user of the blockchain was spending $50 in ETH to send a single transaction, effectively pricing out a majority of users.

To include a personal anecdote, this writer has spent over $1,500 on gas fees in the past two weeks.

With such extreme cost to send transactions, there have been some critics that say Ethereum is failing and will be overtaken by blockchain competitors.

Block.one‘s Brendan Blumer, for instance, has noted that EOS is the best blockchain suited for DeFi:

” #EOS has the performance, liquidity, and developer community to support #DeFi applications that aren’t possible anywhere else.”

Other blockchain founders have made similar assertions due to the extreme fee situation.

An asset manager and author don’t think this is a concern for Ethereum’s long-term future, though.

Why Ethereum transaction fees won’t kill the blockchain

Felix Hartmann, the managing partner of Hartmann Capital and an author, thinks that “ETH gas fees will not lead to an ‘ETH Killer’” eating the network’s lunch, so to say.

“Saying ETHs fees are its downfall is like saying the hottest club in towns downfall is that it’s at capacity, and you head over to the dead joint next door.”

A key facet of his argument is that in Ethereum’s transaction fees rising, investors are shown that the applications on the network are actually “products people want” and are being onboarded into.

This is a good determinant for a blockchain’s long-term success because even if another network has lower transaction fees, if they have poor applications, then there’s no point migrating over to that network:

“The third world doesn’t need your clunky, hackable and buggy shoe stringed together protocol. If you don’t understand the importance of what’s going on right now with DeFi, including the absurd yield craze, you need to pause, reflect, and zoom out.”

Hartmann elaborated that the vast influx of users, capital, and even hacks that are taking place in Ethereum DeFi, will improve this market segment’s viability in the future.

“Sushis, yams, and pizzas probably won’t be here forever. Let the kids have fun. They’ll learn their lesson in terms of economics and risk. [… But] when the dust settles, we’re left with more capital and talent in the industry than before.”

Solutions are needed

That’s not to say that solutions aren’t needed. Far from.

Vitalik Buterin, the founder of Ethereum, addressed potential solutions in a recent Twitter thread, saying:

“The only solution to high tx fees is scaling. Tether, Gitcoin and other apps are doing the right thing by migrating to ZK rollups today. I’m excited about the soon-upcoming optimistic rollups that will generalize rollup scaling to full EVM contracts.”

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Source: https://cryptoslate.com/asset-manager-explains-why-ethereums-transaction-fees-wont-kill-eth/

Blockchain

What’s the prevailing price plot for Ethereum?

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Ethereum’s price has recovered from the weekend blues: the price is up 7%. There is an uptick in exchange inflows after a consistent drop in percent balances across exchanges since the end of April 2020. However, the overall exchange net flow has hit a 1-month low based on data from Glassnode.

Ethereum’s market cap has dropped to $397 Billion level, from $500 Billion. This drop in market capitalization and market dominance has placed Ethereum below US Top Banks.

What's in store for ETH HODLers

Market Dominance of ETH || Source: Coinmarketcap.com

There is a slow volume uptick on decentralized exchanges and based on the below chart, ETH HODLers have dropped from 65% to 57% based on on-chain data from intotheblock. Based on the below chart, ETH HODLers are stubbornly bullish.

What's in store for ETH HODLers

ETH Exchanges Reserve || Source: Twitter

The drop in exchanges reserve is bullish for ETH, however, this narrative is likely to change in the short-term since Bitcoin is now rallying, trading above the $45000 level. The inflow of investment from Bitcoin to Ethereum may dwindle or stop, based on the dropping BTC balances across exchanges and despite the likelihood of this, HODLers continue to be bullish on ETH.

L2 scaling solutions have offered high transaction settlement in numbers and volume, at 0.0001% of the fees, as in the case of MATIC, and this has further added to ETH’s bullish narrative. It is likely that the drop in price earlier last weekend was due to panic selling, large wallets rotating ETH for other altcoins, memecoins or accumulating more Bitcoin in the process.

However, these traders are likely to accumulate at a higher price. This may bring down the percentage of HODLers profitable at a given price level in on-chain analysis. The only profitable entity, in that case, is the exchange that profits from the transactions. However, more ETH is being staked on exchanges like Coinbase and it is likely HODLers see through the dip, before a rally to the $6000 level, as projected earlier.

The on-chain sentiment is currently neutral and large transactions on the ETH network have dropped in the past week. The social volume has dropped below the level it was a week ago when memecoins were offering double-digit ROI and ending up a part of several trading portfolios. ETH HODLers may be neutral at the moment and they turn bullish by the end of the week.


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Source: https://ambcrypto.com/whats-the-prevailing-price-plot-of-ethereum-for-its-hodlers

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Market Analysts Say Bitcoin Holders Are Adding On Dips, Noobs Panic Sell

Market Analysts Bitcoin Holders

Rate this post The leading market analysts believe that the long-term holders of Bitcoin are adding the cryptocurrency on dips whereas the people who are beginners are selling the digital assets. The noobs in the crypto industry are selling off their asset and are losing their positions due to the panic situation in the market. Bitcoin Holders Stacking Up, Tells Market Analysts Well, the prices of the leading cryptocurrency seem to have stabilized over the past 24 hours as the panic selling has lowered and the noobs appear to have been pushed out of the market. At the time of writing this article, the price of bitcoin is $45,400, which is up 5% since yesterday, and its low during this period of correction went to as low as $42K on May 17. In addition to this, it should be noted that the correction has already shed 35% in 35 days which ultimately declared it to be the largest one of the current rally and almost copying a likely correction that occurred during the year 2017. Using the data from the weekly report of Glassnode, the analysts have confirmed that the recent entries in the market have surrendered at a loss while the long-term holders have continued to make purchases at the dips. Weak Hands and Noobs Panic Selling  In response to the tweet shared by the owner of Tesla, Elon Musk, heavy selling was witnessed in the market that ultimately led to the tumbling in the prices of Bitcoin to their lowest levels in 20 weeks. Glassnode, the on-chain analytics provider mentioned that the total number of addresses holding a non-zero BTC balance has also retreated from its ATH of 38.7 million as over a million traders in the market elucidated their positions.  Along with this, Glassnode stated: “A total of 1.1M addresses have spent all coins they held during this correction, again providing evidence that panic selling is currently underway.”

The post Market Analysts Say Bitcoin Holders Are Adding On Dips, Noobs Panic Sell appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

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The leading market analysts believe that the long-term holders of Bitcoin are adding the cryptocurrency on dips whereas the people who are beginners are selling the digital assets. The noobs in the crypto industry are selling off their asset and are losing their positions due to the panic situation in the market.

Bitcoin Holders Stacking Up, Tells Market Analysts

Well, the prices of the leading cryptocurrency seem to have stabilized over the past 24 hours as the panic selling has lowered and the noobs appear to have been pushed out of the market.

At the time of writing this article, the price of bitcoin is $45,400, which is up 5% since yesterday, and its low during this period of correction went to as low as $42K on May 17.

In addition to this, it should be noted that the correction has already shed 35% in 35 days which ultimately declared it to be the largest one of the current rally and almost copying a likely correction that occurred during the year 2017.

Using the data from the weekly report of Glassnode, the analysts have confirmed that the recent entries in the market have surrendered at a loss while the long-term holders have continued to make purchases at the dips.

Weak Hands and Noobs Panic Selling 

In response to the tweet shared by the owner of Tesla, Elon Musk, heavy selling was witnessed in the market that ultimately led to the tumbling in the prices of Bitcoin to their lowest levels in 20 weeks.

Glassnode, the on-chain analytics provider mentioned that the total number of addresses holding a non-zero BTC balance has also retreated from its ATH of 38.7 million as over a million traders in the market elucidated their positions. 

Along with this, Glassnode stated:

“A total of 1.1M addresses have spent all coins they held during this correction, again providing evidence that panic selling is currently underway.”

READ  Price of XRP Increases By 17% Bringing Stellar To A New Peak

#Bitcoin #Bitcoin Holders #Market Analysts

Source: https://www.cryptoknowmics.com/news/market-analysts-suggests-bitcoin-holders-are-adding-on-dips-noobs-panic-sell/

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StormGain: Crypto Mining now available on all smartphones

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For many years, cryptocurrency mining has only been reserved to a select few – those people with enough time and capital willing to invest resources into setting up their own mining rigs. However, cloud mining has been quickly gaining speed, and StormGain’s solution removes the technical barriers from the equation in hopes of creating a more even playing field. 

Since miners need to keep several factors in mind, including electricity costs, upkeep and maintenance, and the overall investment return, mining has become less lucrative for the smaller players. StormGain wants to change this narrative, and give everyone the chance to participate in the verification of cryptocurrency transactions, earning a nice income whilst doing so. 

Cloud mining is a prevalent trend in the cryptocurrency industry today. However, many providers claim to offer significant yields and fail to deliver on those promises. StormGain is a different breed, as it provides a mobile-based cloud mining solution. Every user can mine cryptocurrency directly from their mobile phone without dealing with the hardware side of things. Mobile app users connect directly to remote cloud servers, allowing StormGain to provide a risk-free and convenient mining solution, incomparable to those offered by other cloud mining service providers. 

The first step is to register at the StormGain platform using a smartphone – or desktop computer for those who prefer that option. StormGain purposely opts for a pain-free registration process to get as many people acquainted with cloud mining as possible. The registration process also involves a lucrative bonus of $5 USDT, delivered directly to users’ mining accounts. The process is simple – upon registering, use the promo code MINER to receive the bonus. After confirming the account, users can begin mining Bitcoin right away by connecting to the cloud mining server, with no impact whatsoever on the smartphone’s performance. 

After meeting the minimal $10 USDT profit threshold, users are free to trade and exchange their crypto assets with StormGain. Withdrawal of mined currency is not possible without going through the trading process first, but all profit generated via trading can be transferred out of one’s account at any given time – a fair trade-off.

The trading and exchanging via StormGain is available at 0% commission, with users benefiting from all standard and advanced instruments at their disposal. The service also introduces fiat-based cryptocurrency purchasing for those who want to expand their crypto portfolio quickly and effortlessly. 

StromGain has contracted incredible partnerships since its inception, making it the 1# interest rate provider for crypto traders by CoinMarketCap, a member of the well-known Blockchain Association within the Financial Commission, but also an S.S. Lazio official trading partner, and the market’s best cryptocurrency trading & exchange platform, according to The European. To date, StormGain’s trading product notes a 30-day volume of over $6 billion, generated by tens of thousands of traders worldwide. 

What sets StormGain apart from other cloud mining providers is how mining rewards are proportional to trading volume. Users with a higher trading volume will earn a higher daily mining income. Mining with StormGain over more extended periods can have a significant impact on one’s profit potential, showcasing huge capital inflows for the most active miners and traders.  

Cloud mining rewards are distributed every 30-40 minutes. Then, users are free to withdraw the funds to their trading accounts, within less than 72 hours. For newcomers, the first mined Bitcoin rewards will become accessible within 4 hours, a feat that is available nowhere else within the cloud mining industry. 

About StormGain

As part of its services, StormGain’s cloud mining service effectively removes all entry barriers to the mining market. Consequently, there’s no longer a need to invest in expensive mining chips that take up space, make noise, and consume electricity. Contract prices are inherently small so ongoing investments can translate to significant profits over the long term. Since the bitcoin mining service is readily available via the cloud, accessing it via desktop and mobile devices couldn’t be easier, with no hardware and time investments involved. 

Disclaimer: This is a paid post and should not be treated as news/advice.


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Source: https://ambcrypto.com/stormgain-crypto-mining-now-available-on-all-smartphones

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