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Ethereum 2.0: Is the Interest Real or Hype About Nothing?

Ethereum 2.0 is the next level of the Ethereum platform which will introduce several new features aimed at scaling the platform and adding value for its many users and dapps.

The post Ethereum 2.0: Is the Interest Real or Hype About Nothing? appeared first on CoinCentral.

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No sooner had the crypto world started to settle down after the third Bitcoin halving event, when another wave of hype started to build around Ethereum 2.0, which was initially projected to be released this July. Ethereum 2.0 is the next level of the Ethereum platform which will be achieved by introducing sharding, proof-of-stake and a new virtual machine. Despite some doubts regarding the prospective date, in a February AMA ETH 2.0 researcher Justin Drake expressed his 95% confidence that phase 0 of the project will be finally launched in summer 2020. As it stands now, no one knows if Ethereum will hit the target date, as, according to testnet coordinator Afri Schoedon, the full spec hasn’t been implemented in any client so far. 

Ethereum’s shift from its current proof-of-work (PoW) consensus to a proof-of-stake (PoS) algorithm has been the talk of the town over the past few weeks. It’s obvious that many average users and big investors enamored by the team’s strong commitment to better security, further decentralization, and lower reliance on miners are highly anticipating the rollout of ETH 2.0. But with all the buzz going around, it’s getting harder to sort out the wheat from the chaff and understand whether the positive public sentiment towards the future of Ethereum is fact-driven or hollow. So, let’s figure it out.

Ethereum regaining lost ground

In early 2018, when Ether holders saw it hit its record price of around $1400, the number of ETH addresses was slightly over 10 million. Today, according to data from Glassnode, there are currently 40 million active ETH addresses, with more than 15 million joining the party after Ethereum 2.0 was announced in late May 2019, which represents a good 60% growth. The overall usage of the world’s second most popular cryptocurrency has also experienced a significant increase since the beginning of 2020 and, as of mid-May, the amount of ETH daily transactions has almost doubled from 450,000 to roughly 900,000.

Source: Etherscan.io

The same upward trend can also be seen within the Ethereum network powered by the Gas token, which enables transfers of payments or smart contract information. The total consumption of Gas has recently surpassed 61 million units, hitting its all-time high and moving up by around 60% compared to what it registered in January. This is a great sign for Ethereum 2.0 developers, as the more people utilizing Gas to make the whole network operate, the more smooth the update from PoW to PoS will be.

With that said, the release of ETH 2.0 is expected to create a real demand for the in-house cryptocurrencies, Ether and Gas. While the latter will serve as a fuel for decentralized computers, the higher speed of ETH transactions and much lower fees will become more appealing for both producers and consumers, as well as for both retail and institutional investors.

The influx of larger players feeling bullish about Ether has been dramatic, since it was revealed that currently over $276.5 million are under the management of the Grayscale Ethereum Trust, whereas that figure was only $11.7 million at the same period in 2019.

Authentic hype or marketing?

But are big investors really prepping for Ethereum 2.0? Some media outlets have also tied the surge in ETH volumes to growing institutional interest. At first sight, it seems to be a logical conclusion, however, figures are stubborn things.

Ethereum 2.0 Charts

Source: Coin360

As you can see ETH daily volume hit its maximum of over $10 billion after the March crypto market breakdown on April 30. This was a remarkable performance considering its previous level of $2.92 billion in early January and the subsequent global financial turbulence. Nevertheless, if we take this value and divide it by the number of transactions that were registered on the eve of Labour Day – approximately 840,000 – we discover that the average volume of one transaction is only around $12,000. Moving further, this figure decreases to below $10,000, where it remains today. Doesn’t actually look like intense institutional involvement, does it?   

There is another explanation and it’s probably much more authentic. With Ethereum 2.0, users will have the chance to become staking agents and earn rewards over time by transferring 32 ETH to a contract. At the time of writing, 32 ETH is worth $7,776, which is almost equal to the current average Ether transaction. With that in mind, this rising demand seems indicative of average users and retail investors feeling curious about how this is going to work out and flocking to ETH markets available on the most liquid exchanges with proven security, such as HitBTC and Huobi, in order to come out winning after the much-awaited release.

The aforementioned boom in user activity inevitably led to an ETH price surge. It’s noteworthy that since Ether was worth $1400, its price has declined by 85%. At present, ETH is trading at around $243, having recovered from the repercussions of “Black Thursday” when the price fell to just $111. Nonetheless, it is still not even close to its all-time high.

But this explanation for the uptick in Ethereum activity has been largely ignored in favor of the institutional investor’s narrative.

Why? Whether it is being consciously manufactured or not, the narrative that has institutional investors flocking to DeFi, and specifically Ethereum, is more beneficial to the Ethereum ecosystem. Big names getting involved with Ethereum is more likely to lead to another bull run than average users making investments in a project they believe in. 

Artificially inflated excitement?

In the crypto space, there are few better at making waves that cross over into traditional finance than the Winklevoss twins, long-known in the community for their crypto investing experience and for holding the biggest Bitcoin fortune in the world.

In a recent interview for The Defiant, Tyler and Cameron admitted to making concerted efforts to accumulate a huge stake of Ether, which is now rumored to be “in the same galaxy” as their BTC holdings: “We’re big fans of Ether. We have a material amount.”

It comes as no surprise that the brothers have been investing in ETH, but until this May they never really spoke about the quantity of their investment. Notwithstanding the fact that the real figure remains undisclosed, Cameron has hinted at its size, saying that a few years ago they received a large amount of Ether in profit, meaning that they have been investing heavily for a while now. 

So it is more likely than not that the Winklevoss twins number among the ETH whales as well, and their public bullishness has played no small part in the public’s enthusiasm for Ethereum 2.0. But why did they decide to break their silence on the issue now? Coincidence or not, the interview was published on May 21, when the price of Ether dropped below $200 for the third time in two weeks, and, following its publication, the price did an about-face and began climbing again. The Winklevoss’ enthusiasm was disseminated by a number of leading crypto media outlets where retail traders, eager to make profits, found their next big market event. The effect on institutional investors was remarkable, too, and Ether derivatives are becoming more popular than ever before.

Killing two birds with one stone indeed. This is how it works and above all, nobody can blame Tyler and Cameron Winklevoss for their sincere belief in the Ethereum network’s significance for the development of decentralized finance.

“Sell the news” opportunity

The hype around the Ethereum 2.0 launch can also be seen as a consequence of the “buy the rumor, sell the news” maxim when traders act in anticipation of any big announcement that can potentially cause a shift in the market. “If we get the rally on Ethereum I am expecting,” tweeted popular crypto trader Ethereum Jack, who used to go by the “Bitcoin Jack” moniker, “then July seems like the perfect sell the news moment with the ETH 2.0 launch.” ETH whales, if they employ this trading strategy, will be able to take advantage of the situation, while the community is speculating on the release date and the media are adding fuel to the fire.

But in reality, the event itself is not as important as we imagine, because, at least initially, Ethereum 2.0 will mostly serve as a testnet for the updated PoS consensus system. So, it’s not completely clear whether institutions are investing in the future of the crypto-financial network or are just trying to grab as big a piece of the hype pie as they possibly can. We can only wait and watch how things unfold.

Source: https://coincentral.com/ethereum-2-0-coverage-real-interest-or-hype/

Blockchain

MATIC Price Analysis: Weekly and 4 Hr Chart Analyses Reveals Buy Signal for Polygon

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Polygon recently set a new record for highest bounty paid in DeFi. The team at Polygon paid a two million US dollar worth of bounty to Gerhard Wagner, a white hat hacker who discovered a crucial vulnerability that had put around 850 million US dollars’ worth of capital at risk.

So what type of vulnerability could this be? Well, it’s a double-spend bug, a type of bug that could have tuned catastrophic for the Polygon ecosystem.

Bullish/Bearish Scenario

  • The bear-trap candlestick formation on the weekly time frame, alongside the buildup of bullish divergence on the 4HR time frame, shows that the bulls are back in control.
  • A breakdown of the 1.152 support implies a bearish takeover.

Important Weekly Polygon (MATIC) Announcements

  • Immunefi, a bug bounty, and security platform acknowledged that the bounty is the highest that has been paid in decentralized finance [DeFi].
  • Another exciting announcement in the Polygon ecosystem is the PECO-Polygon Ecosystem Index, which makes it possible for participants to bet on the performance of Polygon [MATIC] projects. The PECO Index is a single token that captures the best native projects on @xPolygon.

Without any further delay, Let’s analyze the MATICUSDT price chart.

Polygon (MATIC) Price Analysis:  MATICUSDT Weekly Chart 

Following the path of most top altcoins in the cryptocurrency market, the MATICUSDT triggers a bear-trap candlestick formation while trading within a rising and expanding wedge.

Although the crypto pair still trades below its all-time high, higher RSI readings above level-25 tell us that we are still in an uptrend and we may soon see a surge in demand for the MATIC token.

Polygon (MATIC) Price Analysis:  MATICUSDT Daily Chart 

A recent regular bearish divergence on the daily chart above shows that we may soon see a slowing and possible correction of current gains.

Failure of RSI values to breach below level-25 would suggest a continuation of the current uptrend.

Polygon (MATIC) Price Analysis:  MATICUSDT 4 Hr Chart 

As the RSI prints higher values above level-25 on the daily time frame, the 4HR time frame confirms entry into the uptrend with an exit of the oversold area [level-25] with the recent entry of oversold at press time.

Regular and hidden bullish divergence setups are instrumental for the previous trend reversal and current trend continuation we see on the above intraday chart.

An impending hidden bullish divergence at press time may be sufficient for the bulls to find a price floor above the 1.491 support and restore the MATIC price into new highs.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/polygon-matic-price-analysis-intraday-hidden-bullish-divergence-signals-trend-continuation-for-maticusdt/

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Blockchain

Harmony’s ONE Token Targets $1 After Breaking All-Time High

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

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Source: https://cryptobriefing.com/harmonys-one-token-targets-1-after-breaking-all-time-high/?utm_source=main_feed&utm_medium=rss

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Blockchain

NEAR Announces $800M in Development Grants

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

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Source: https://cryptobriefing.com/near-announces-800m-in-development-grants/?utm_source=main_feed&utm_medium=rss

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