Tag Archives: ethereum

Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

Crypto market crash: Why Ethereum and Bitcoin see a dip in valuation

The crypto market crashed amid a rising inflation rate. BTC, ETH and others lose the market cap

The crypto markets have hit a new low for the year, with the market capitalisation plunging below the $1 trillion mark for the first time since February 2021. Bitcoin has dropped below $23,000, its lowest point since December 2020. And BTC isn’t the only one, nearly every top coin is now worth half or less of its all-time high.

The total market capitalisation of the market at the time of writing stands at $963 billion, a drop of around 4.1 percent since yesterday. Bitcoin (BTC), the most valuable crypto by market capitalisation, dropped sharply, and its market dominance fell to 45 percent, registering a decrease of 2 percent over the day. Ethereum, the second-largest crypto by market cap, slipped below the $1300 mark, with a total valuation just above $149 billion.

Both tokens are roughly down by 70 percent from their November peaks.

According to Kunal Jagdale, founder of BitsAir, investors have lost around $2 trillion due to the recent market carnage. “The risk aversion sentiments have weighed hard on the digital assets and the new investment asset class,” he added.

Data released on Friday showed that the annual inflation rate in the US accelerated to a 40-year high of 8.60 percent. The bears maintained their dominance in the global crypto market over the weekend. It is important to note here that the US Dollar Index (DXY) is also at a six-month high, having gained 2 percent in a single day and causing a drop in the stock and crypto markets.

“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptos suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” Edul Patel, co-founder and CEO of crypto investment platform Mudrex, said in a statement.

Besides the high inflation rates, several intramural and extramural factors have adversely impacted the crypto market. The market hasn’t yet revived completely from the Terra-UST crash and might face another in the form of Celsius’s looming shutdown.

“The tightening of monetary policy is denting the appeal for riskier assets like crypto and equity. Other than this, rising inflationary worries and looming recession concerns are also hurting the market for digital assets, which is quite in the nascent stage,” Jagdale said.

Despite the pessimism in the crypto market, some experts advise investors to buy the dip in order to average out their costs and make long-term gains. Based on current market sentiments and statistics, the recovery will be slow, according to Anndy Lian of BigONE Exchange. He added, “This could be a start to another crypto winter which could last for another 2 years.”

Among the intramural factors, there is a lot of talk about regulatory actions from various global governments, making the industry and investors nervous. Furthermore, Terra’s LUNA fiasco is a major contributor to the fallout. It is rumoured that Luna has wiped out $40 billion from investors’ bank accounts. Last week, digital assets worth approximately $102 million were sold by US crypto funds ‘in anticipation of hawkish monetary policy from the US Federal Reserve.

Despite the fact that the crypto market has tanked, NFT trading volumes have increased. Top NFT projects such as Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Crypto Punks have increased by 100 percent in the last 24 hours.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Ethereum 2.0: What to expect from the long-awaited upgrade?

Ethereum 2.0: What to expect from the long-awaited upgrade?

Additional comments on top of what is quoted in the article: 

Well, back in 2020 everybody is talking about Ethereum 2.0 but now people no longer really care about it, the reason for that is based on my own observations are:

1) It is been delayed numerous times.  Till now we don’t have a trustworthy date for that,

2) A big portion of the Ethereum community is against it, especially the miners,
3) It doesn’t do much actually. If it includes sharding, many would look forward to 2.0, but since it does not matter,
4) Neither the speed nor the cost will go down a lot. This makes no difference in most instances.

As to the price prediction, when the 2.0 launches, we would most likely see a price increase, maybe a new time high. However, its just speculation, not aligned with its real value. Hence it will drop back to where it should be. This will also depend on the bigger economic and financial environment, 2022 could be a difficult year.

My final word to everyone. Crypto is very volatile. Invest with caution.

– Anndy Lian

Ethereum 2.0: What to expect from the long-awaited upgrade?

Ethereum’s native cryptocurrency, ether (ETH), saw a fruitful 2021 as the world’s second-largest coin surged by 404.21% in the last 12 months from $730.37 on 1 January 2021 to $3,682.63 on 31 December 2021.

With over 119 million ETH in circulation and a market capitalisation of $384bn, at the time of writing (14 January 2022), countless ETH investors are waiting impatiently for the cryptocurrency to release its series of updates known as Ethereum 2.0 or ETH2, aimed at making the decentralised blockchain faster, safer and more sustainable.

The ETH2 process kickstarted on 1 December 2020, pushing the coin to a 5.2% daily gain from its $602.87 opening price, by launching the Beacon Chain, that introduced proof-of-stake (PoS) to the blockchain, a new means to keep Ethereum more secure and help investors earn more ETH tokens in the process.

Initially known as Phase 0 on technical roadmaps, the ETH2 process consists of three phases in total, with Beacon Chain being the first.

Miners are currently anticipating the launch of Phase 1, which is planned for June 2022.

A final date for the Ethereum 2.0 release is yet to be announced, but the final phase of the blockchain’s launch is anticipated in 2023. What should investors expect from ETH2 and what are analysts saying?

What is Ethereum 2.0?

Initially known as ‘Serenity’,  the Ethereum 2.0 set of interconnected upgrades has been an active area of research and development since 2014. ETH miners, however, were first introduced to the concept during CEO Vitalik Buterin’s speech at the Devcon conference in Prague on 31 October 2018.

“Ethereum 2.0 is this kind of combination of a bunch of different features that we have been talking about for several years, researching for several years, actively building for several years, that are finally going to come together into this one coherent whole,” Buterin said, describing what Ethereum 2.0 entails.

The vision of ETH2 is to “bring Ethereum into the mainstream and serve all of humanity” by making it more “scalable, secure, and sustainable” as the blockchain aims to target three large-scale problems; clogged networks, lack of disk space and using too much energy (which is not eco-friendly).

In general, what ETH2 will do is switch up Ethereum’s algorithm from its current proof-of-work (PoW) consensus protocol, also used by Bitcoin, towards proof-of-stake. What this means for the blockchain is that mining ETH will come with less energy consumption, less hardware requirements, stronger immunity to centralisation and stronger support for shard chains, a key upgrade in scaling the Ethereum network.

Following Ethereum 2.0 updates, the blockchain itself will become more accessible as its move towards a proof-of-stake consensus protocol also plans to drop its expensive use price triggered by its popular demand and ability to only process between 15 to 45 transactions per second.

According to crypto investor Lark Davis  on Twitter, who shared a photo from CoinMarketCap, ETH transactions fees are the highest in comparison to all other blockchains, reaching $46.22 as of 13 January 2022.

The ETH2 roadmap consists of three phases, with Phase 0, the launch of Beacon Chain, already live. Possibly one of the most vital changes to the Ethereum blockchain, the Beacon Chain, does not alter anything about the way Ethereum is mined today, but introduces the proof-of-stake algorithm.

The Beacon Chain, currently, exists separately from the Mainnet (short for main network) Ethereum chain used. However, following Phase 1, coined by the blockchain’s creators as ‘the merge’, the two will become one. Currently, more than 8 million ETH coins are eligible for the Beacon Chain.

It is estimated that ‘the merge’ will launch in June 2022, with the possibility it could be delayed further if not ready. ‘The merge’s’ launch will mark the end of proof-of-work algorithms within the Ethereum blockchain and the full and final transaction into proof-of-stake.

Phase 2, the final of the ETH2 launch, Shard chains, was originally planned to launch before ‘the merge’ was complete.However, this plan was later changed because Shard chains can only enter the Ethereum ecosystem with an operating proof-of-stake consensus mechanism.

Because ETH2 upgrades are “somewhat interrelated”, one cannot fully operate without the other being complete, so Ethereum 2.0 will entirely launch into action once Phase 2 is released.

What will ETH2 do to the Ethereum price?

Firstly, Ethereum’s update will allow the cryptocurrency to catch up with its competitors, which are already much more advanced in terms of scalability and security. NEO , for example, can already master over 10,000 transactions per second, something Ethereum is unable to achieve due to its current proof-of-work consensus protocol.

In addition, the current cost of ETH transactions via the Ethereum Network is very high, therefore preventing a number of people from using it. The introduction of Shard chain aims to increase the transaction speed of the ETH token, potentially scaling it up to 100,000 transactions per second, thus having the possibility to lower Ethereum fees amid faster transactions.

“Technical updates usually have worked well for Ethereum’s price in the past, and the same could be expected for the 2.0 update,” said Yuya Hasegawa, market analyst at Bitbank.

News concerning ETH2 updates had also positively affected the performance of the token’s price so far.

On 20 January 2021, Ethereum Foundation Researcher Danny Ryan published a report stating that the launch of the Beacon Chain was a “resounding success”. Between the launch of Beacon Chain on 1 December 2020 and the end of January 2021, the token’s price skyrocketed by 123% from $587.32 to $1,314.

Yet BigOne Exchange chairman in Asia Anndy Lian notes that the Ethereum 2.0 price outlook could not be as bullish as it seems.

“As to the price prediction, when the 2.0 launches, we would most likely see a price increase, maybe a new time high. However, it’s just speculation, not aligned with its real value. Hence it will drop back to where it should be. This will also depend on the bigger economic and financial environment; 2022 could be a difficult year,” Lian told capital.com.

Please note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.

Risks ahead for Ethereum 2.0 release

Lian notes that back in 2020 people were much more invested in the Ethereum 2.0 release than they are now for a number of reasons.

Firstly, Lian said it has been delayed “numerous times” and until now “we don’t have a trustworthy date”. Secondly, he added, “a big portion of the Ethereum community is against it, especially the miners”.

Lian said that it is likely ETH’s cost will not decrease by much, following the final launch of Ethereum 2.0, making no difference in most instances.

On the other hand, Bitbank’s Hasegawa disagreed and stressed that the two-year delay of the Ethereum 2.0 release date is “proof that the developers have been working hard to make sure no significant network failure would happen”. She said “technical risks are expected to be unlikely” once Ethereum 2.0 launches.

“An overall outlook for Ethereum is positive, with the upcoming update to 2.0, and the growing anticipation for the NFT and metaverse industries’ expansion,” Hasegawa concluded.

In a 2020 Macro Report, Crypto.com senior research analyst Kendrick Lau said that sharding, which is planned to be introduced alongside Ethereum 2.0, is “one of the most promising methods to add scalability to a blockchain network and in tandem with layer 2 scaling solutions, which can increase scalability by a factor of hundreds, if not thousands”.

Please note that analyst predictions can be wrong. Analyst comments shouldn’t be used as a substitute for your own research. Always conduct your own research before investing. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/what-is-ethereum-20

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Anndy Lian Shares “Ethereum Will Remain The Dominant DeFi Platform: Analyst Opinion”

Anndy Lian Shares “Ethereum Will Remain The Dominant DeFi Platform: Analyst Opinion”

Thanks CoinGenius for covering my comments made in the earlier article on DeFi and Ethereum.

Ethereum Will Remain The Dominant DeFi Platform: Analyst Opinion

Ethereum will remain the dominant Defi platform despite the attempts of other blockchains such as TRON and EOS of trying to catch up. Most of the total value locked into DeFi is locked in Ethereum based platforms and it seems that things are going to stay this way as per the Ethereum latest news.

The industry observers believe that Ethereum will remain the dominant Defi platform because the growth among Defi enabling blockchains will come from other network effects as well as utility and capacity. With Ethereum boasting the first-mover advantage and the rapidly growing, it will be the best place to be for DeFi. ETH is by far the most dominant blockchain according to the data from the DeFi pulse, accounting for 90% and 99% of the total value locked in DeFi platforms. Looking at the data, all of the 36 Defi platforms are based on ETH and out of the 4 billion now locked into these 36 platforms.

According to industry observers, this dominance will come not so much from ETH being superior but from it being the first platform to move and gain a decent base. According to Anndy Lian, the Singapore-based crypto advisor:

 “Ethereum has the first-mover advantage, as it has had at previous times in crypto history, from taking the lead in ICOs [initial coin offerings] and smart contracts and now DeFi.”

Lian noted that Ethereum has the biggest market cap in crypto and is one of the best testing platforms for the industry so if it cannot make Defi work, no one can. A spokesperson for the Maker Foundation said that Ethereum’s current success lies with the fact that it was able to build upon the activity on the blockchain which attracts even more users and more activity:

 “Scope, size and amount of activity on Ethereum are critical factors driving the DeFi ecosystem.”

The Maker Foundation spokesperson suggested that other blockchains that can interoperate with the build on top of ETH have the chance of expanding their market share:

 “Chains that can easily integrate or build across Ethereum should be able to take advantage of that activity and grow with it by providing scale for DeFi apps.”

The market shares of EOS and TRON will go upwards in the upcoming months as per the EOS newsletter and Anndy Lian isn’t sure how fast this growth will be:

 “The market share is starting to spread but it will be slow. Ethereum will take the lead till 2021 on DeFi while the rest are playing catch up.”

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Source: https://coingenius.news/ethereum-will-remain-the-dominant-defi-platform-analyst-opinion/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j