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Over 40 days after Ethereum’s EIP-1559, here’s where it stands

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The last couple of months have seen Ethereum steal the show on the charts, as well as in the larger market. In fact, the implementation of EIP-1559 in the 1st week of August this year gave ETH much of its market-wide hype. That, coupled with the wider market’s resurgence, has allowed many in the mainstream to finally move beyond just Bitcoin.

While this has been revolutionary for the network and its participants, issues of scalability and high gas prices have been repeatedly raised. In line with these concerns, the emergence of ‘ETH-killers’ such as Solana and the rapid rise of layer-2 scaling solutions has thrown a spanner in the works.

EIP-1559 a ‘parasitic tax?

Recently, analyst Willy Woo sparked an interesting debate with his take on EIP-1559 and capital rotation out of the Ethereum network. He ran a poll on whether his followers consider EIP-1559 a “parasitic tax” driving decentralized applications (dApps) to other networks for short-term deflationary effects. The reactions were mixed, but it’s an interesting take on the situation. 

Over the last few months, the increased usage of ETH network in dApps, NFT surges, and yield farming has caused the network fees to hit 100-200 Gwei several times. Previously, ETH developers had spoken about EIP-1559 being focused on tackling hiked gas fees and making it predictable. 

Notably, in the 40 days since EIP-1559 was first implemented, the amount of ETH burned has exceeded 296,000 ETH. What’s more, the burn value has exceeded $1 billion with OpenSea burning the largest number, more than 40000 ETH. 

Source: Wu Blockchain

So, who benefited from EIP-1559?

While for the Ethereum network the post-London phase was a bittersweet time with criticism and applause coming in equally, there were other networks that reaped the advantages of it. In fact, the high gas fee over the last couple of months was a blessing in disguise for layer-2 scaling solutions. At the time of writing, over 3.6 billion were locked in layer 2 solutions on Ethereum.

Further, interestingly, Solana’s exponential growth can also be attributed to its low transaction costs and high speed. Ethereum has relied on Optimistic Ethereum, rollups, and zero-knowledge tech to increase speed and lower gas fees. On the other hand, Solana is in a more favorable market position.

In fact, the narrative that Solana is “the fastest blockchain network in the world” could be ETH’s doing and indirectly a post-EIP-1559 effect. 

Now, for the future, it seems like there are two ways forward for the second-largest blockchain. Either the high gas fees will continue to drive capital rotation out of Ethereum (to L-2 solutions) or aid the transition to a scalable and relatively low-fee blockchain post-ETH 2.0

For now, however, with the NFT buzz cooling off, it seems like dApps might be migrating away from the ETH network. Thus, looks like the short-term effects of EIP-1559 are debatable. 

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Source: https://ambcrypto.com/over-40-days-after-ethereums-eip-1559-heres-where-it-stands

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Crypto-to-fiat liquidity startup Xanpool raises $27M

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Cryptocurrency-to-fiat infrastructure provider Xanpool continues expanding operations in the Asia Pacific (APAC) by securing fresh funding.

The Hong Kong-based startup raised $27 million in a Series A funding round led by Valar Ventures, the venture capital firm co-founded by PayPal co-creator Peter Thiel.

Other participating investors included crypto-focused venture capital firm CMT Digital as well as angel investors like TransferWise co-founder Taavet Hinrikus, Xanpool announced Friday.

Running operations in 13 countries across APAC, Xanpool is looking to further consolidate its presence in the region with new funding. Xanpool CEO Jeffery Liu told Cointelegraph that the startup operates in countries like India, Hong Kong, Philippines, Singapore, Thailand, Indonesia, Australia, New Zealand, and Japan.

“In the coming quarter or two, we are primarily expanding our services into a few more APAC countries. As well as consolidating our hold in existing markets,” Liu noted.

Since its launch in March 2019, the platform has so far amassed over 500,000 users and 400 business partners, according to the announcement. “By the end of 2022, we aim to have grown our user base by 20x to 10 million users across the APAC,” the CEO said.

XanPool is a peer-to-peer crypto-to-fiat platform and a liquidity network relying on the liquidity of its participants. The platform deploys unused money by individuals and businesses to settle cross-currency and cryptocurrency transactions, reducing the counterparty risk and costs and also allowing liquidity providers (LPs) to earn up to 2% on their idle capital.

Xanpool CEO told Cointelegraph that the startup is running software similar to that of decentralized finance platform Uniswap. “Except that instead of crypto-to-crypto, our automated market maker automates between crypto and fiat,” Liu noted.

Related: Crypto fintech MoonPay reportedly aims for $3.4B valuation in first VC funding

“Instead of crypto native LPs, our LPs range from traditional import-export businesses to money service operators, to crypto funds. This liquidity is essentially used to settle local currency and cryptocurrency transactions immediately from the individual’s or business’s wallet,” the CEO said. Liu stressed that Xanpool never touches money on individuals’ or businesses’ wallets.

“We simply make software which allows the individual or business to automate their buying and selling, and in return earn a fee,” the executive said.

The latest funding brings XanPool’s total raised to around $32 million, including previous funding by individual investors. The company raised $4.3 million in a pre-A financing round last November in conjunction with its official launch.


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Source: https://cointelegraph.com/news/crypto-to-fiat-liquidity-startup-xanpool-raises-27m

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Bitcoin extends correction as Ethereum sees ‘picture perfect’ rejection at all-time highs

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Bitcoin (BTC) stayed closer to $60,000 on Oct. 22 after the largest altcoin Ether (ETH) failed to cement new all-time highs.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

ETH all-time high? Blink and you’ll miss it

Data from Cointelegraph Markets Pro and TradingView ETH/USD just match its record $4,380 on Bitstamp before seeing a harsh rejection.

Traders watched in anticipation as Ethereum appeared to follow Bitcoin to historic new levels, only to face immediate resistance and fall sharply back into a lower range.

Trader and analyst Rekt Capital called the event a “picture perfect rejection.”

At the time of writing, ETH/USD circled $4,150, preserving $4,000 as support with the exception of a flash dip which immediately followed the all-time high rematch.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Against Bitcoin, Ethereum fared better, with the ETH/BTC pair having bounced near lows last seen in late July. 

Bitcoin could see “additional topside euphoria”

Having similarly failed to hold significantly higher levels, Bitcoin itself took an extended break as overheated markets cooled their excitement.

Related: Too popular: Bitcoin futures ETF in danger of hitting upper limit for contracts

Funding rates were returning to normal on Friday, having reached a state reminiscient of the blow-off top from April. 

Bitcoin funding rates chart. Source: Bybt

As with open interest, however, these were not as frenzied as the Q2 rush, which produced the $64,900 all-time high in place until this week.

“This means there is possibly still room for additional topside euphoria but we are at levels that are starting to stretch the market,” crypto trading firm QCP Capital commented in its latest market update.


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Source: https://cointelegraph.com/news/bitcoin-extends-correction-as-ethereum-sees-picture-perfect-rejection-at-all-time-highs

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VET Technical Analysis: Trend Took Crucial Support at $0.1145 to Reverse Itself, Lantern Pattern Forming

VeChain (VET) Technical Analysis: A Great Chance of the Price Fall to $0.09

VeChain (VET) is a blockchain-powered supply chain platform. Begun in 2015 and launched in June 2016, VeChain aims to use distributed governance and Internet of Things (IoT) technology to create an ecosystem that solves some major problems with supply chain management. VeChain is the product of creator and co-founder Sunny Lu, an IT executive who was formerly CIO of Louis Vuitton China. Let us look at the technical analysis of VET. Past Performance VET started trading at $0.1191 on 15 October 2021. One week later, it closed on 21 October 2021 at $0.1292 with a change of 8.4%. Source: https://www.tradingview.com/x/f54bO4Fl/ VET Technical Analysis The VET trend took crucial support at $0.1145 to reverse itself. The lantern part of the week saw an uptrend as a result of this. The current trading price of VET is $0.132, which is 2.5% higher than the previous day’s close. OBV is showing that the buying pressure significantly overpowering the selling pressure. This is a bullish indication, meaning the traders may take a long position. RSI is showing an uptrend in its chart, which is again a bullish indication. It is currently at 65.9%. The traders may take a long position here. MACD is showing that the fast and the slow lines have moved from the negative to the positive region. They continue to move in the upwards direction, which is a positive signal. There is no divergence of the MACD graph from the price chart. The traders may take a long position. Day-Ahead and Tomorrow Fib numbers show that the trend reversed itself from the Fibonacci pivot at $0.11. It has crossed the next fib levels successfully. Thus, the VET traders may take a long position. This is because the indicators are showing storing bullish signals. The target can be kept at $1.45 and stop-loss at $1.27. However, as the RSI is close to the overbought region, a trend reversal is also possible.

The post VET Technical Analysis: Trend Took Crucial Support at $0.1145 to Reverse Itself, Lantern Pattern Forming appeared first on Cryptoknowmics-Crypto News and Media Platform.

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VeChain (VET) is a blockchain-powered supply chain platform. Begun in 2015 and launched in June 2016, VeChain aims to use distributed governance and Internet of Things (IoT) technology to create an ecosystem that solves some major problems with supply chain management. VeChain is the product of creator and co-founder Sunny Lu, an IT executive who was formerly CIO of Louis Vuitton China. Let us look at the technical analysis of VET.

Past Performance

VET started trading at $0.1191 on 15 October 2021. One week later, it closed on 21 October 2021 at $0.1292 with a change of 8.4%.

TradingView Chart

VET Technical Analysis

The VET trend took crucial support at $0.1145 to reverse itself. The lantern part of the week saw an uptrend as a result of this. The current trading price of VET is $0.132, which is 2.5% higher than the previous day’s close.

OBV is showing that the buying pressure significantly overpowering the selling pressure. This is a bullish indication, meaning the traders may take a long position.

RSI is showing an uptrend in its chart, which is again a bullish indication. It is currently at 65.9%. The traders may take a long position here.

MACD is showing that the fast and the slow lines have moved from the negative to the positive region. They continue to move in the upwards direction, which is a positive signal. There is no divergence of the MACD graph from the price chart. The traders may take a long position.

Day-Ahead and Tomorrow

Fib numbers show that the trend reversed itself from the Fibonacci pivot at $0.11. It has crossed the next fib levels successfully.

Thus, the VET traders may take a long position. This is because the indicators are showing storing bullish signals. The target can be kept at $1.45 and stop-loss at $1.27. However, as the RSI is close to the overbought region, a trend reversal is also possible.

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Source: https://www.cryptoknowmics.com/news/vet-technical-analysis-trend-took-crucial-support-at-0-1145-to-reverse-itself-lantern-pattern-forming/

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