ETH to BTC prediction: Will post-Merge Ethereum rise to challenge Bitcoin domination?

ETH to BTC prediction: Will post-Merge Ethereum rise to challenge Bitcoin domination?

Bitcoin (BTC), the crypto market pioneer, is, by market capitalisation, twice the size of ethereum (ETH), the second largest coin. Will ETH eclipse BTH following successful completion of The Merge that saw it switch to the proof-of-stake (PoS) consensus mechanism?

Here we take a look at the ETH to BTC exchange rate, and what factors are shaping ETH/BTC in 2022 and beyond.

What is ETH/BTC?

ETH/BTC represents the exchange rate between ether, the Ethereum blockchain’s native coin, and bitcoin, the native coin on the Bitcoin Network.

ETH/BTC represents how many bitcoins can be bought for one ether, with the rise in ETH/BTC signifying either a rise in ETH or fall in BTC, and vice-versa.

BTC was meant to be “a purely peer-to-peer version of electronic cash”. However, over the years the cryptocurrency has also become a store of value and a comparison to gold as a hedge against rising inflation.

Bitcoin mining relies on a blockchain that connects all public transactions. Using a proof-of-work (PoW) consensus, BTC miners compete against one another to solve mathematical equations and confirm the legitimacy of transactions. They are rewarded in BTC tokens.

In order to reduce the rate at which new BTCs are given as rewards, the cryptocurrency was designed to undergo halving events roughly every four years. A halving reduces the number of bitcoins released into circulation by half, limiting supply.

Ethereum, a programmable network for building decentralised applications (dApps), was launched in 2015, and was inspired by bitcoin’s limitations.

“While Bitcoin is only a payment network, Ethereum is more like a marketplace of financial services, games, social networks and other apps that respect your privacy and cannot censor you,” Ethereum’s website says.

Another key element of Ethereum is the blockchain’s ability to run smart contracts – computer programmes on the blockchain that allow for the creation and smooth running of dApps.

Just like BTC, ETH initially used a PoW mechanism, but since 15 September 2022 relies on PoS. The change became known as ‘The Merge’, and was designed to reduce Ethereum’s energy consumption by around 99.95%.

The Merge is one of a series of upgrades. In a July presentation, the platform’s co-founder, Vitalik Bouterin, named the following development stages, but did not specify when they will happen:

  • The Surge – the addition of Ethereum sharding, which will lower the cost of bundle transactions and make operating easier.
  • The Verge – users will be able to become validators without having to store large amounts of data.
  • The Purge – will simplify the Ethereum protocol and cut down on the amount of space the blockchain uses.
  • The Splurge – this upgrade includes “all of the other fun stuff”.

These updates also have potential to affect the ETH price  shaping the ETH to BTC exchange rate.

ETH to BTC historical rate chart

The ETH to BTC exchange rate surged by 2,518% in the first two years after the pair started trading, from 0.005767BTC in August 2015 to the all-time high of 0.151BTC in June 2017, signifying the quicker rise in ether’s price.

However, this peak in the ETH to BTC price chart did not last long. The exchange rate fell to 0.02427BTC in December 2017 – down 83.9% since the June peak.ETH to BTC exchange rate, 2015 - 2022

The ETH value reached $1,396.42 in January 2018, and the ETH to BTC rate jumped to 0.09724 BTC.

ETH to USD exchange rate, 2015 - 2022

ETH managed to uphold its positive trend against BTC for the next three weeks as the price chart gained 16% more, peaking at 0.1131BTC on 1 February 2018.

ETH to BTC performed fairly well for the duration of 2021, peaking in mid-May at 0.08178BTC, when the ETH price reached $4,168.7 and BTC was trading at $50,000.

The ETH/BTC pairing was not hugely affected when the BTC value reached its all-time high of $66,971.83 in November 2021, It did peak in December 2021 at 0.0879BTC after briefly falling to 0.06034BTC on 19 October 2021.

BTC to USD exchange rate, 2015 - 2022

Following the collapse of the TerraUSD (UST) stablecoin and its sister token LUNA and the wider crypto crash that followed, the ETH to BTC exchange rate fell by nearly 30% from 0.07554BTC in May 2022 to 0.05373BTC in July, indicating a faster decline of ETH price.

ETH’s price dipped to as low as $993 in June, with BTC slumping to $19,017 amid the bearish sentiment in the cryptocurrency world sparked by LUNA collapse and tightening monetary policy.

Ether rose  to 0.0846BTC in September 2022 in anticipation of The Merge. The current exchange rate stood at 0.07088 BTC, as of 20 September.

Is The Merge driving ETH/BTC?

On 15 September Ethereum successfully upgraded its system from PoW to PoS after a six-year build-up. However, the ETH price did not rally as much as investors were anticipating.

Anndy Lian, chief digital advisor at the Mongolian Productivity Organisation and author of NFT: From Zero to Hero. noted that right after The Merge, the price swung above $1,640 and fell shortly after:

“This is very much expected. There was much influx of ETH into various exchanges since the 12th and then building up to around 1.8 million ETH before the completion. In this case, I see that investors could be planning to sell off before the price fell.”

Lars Seier Christensen, chairman of the Concordium Foundation and founder of Saxo Bank, said that the Ethereum community anticipated a “much more positive reaction to the successful Merge”. He added that the recent rally was what in TradFi we call “buy the rumour, sell the fact” and that whoever saw The Merge as upbeat news had already bought ETH.

“Merge is really a non-event. It changes nothing in terms of scalability or fees, and actually antagonises a number of long-term Ethereum supporters – the miners,” he added.

Eugene Zomchak, CoinLoan’s head of product, told Capital.com that the value of ETH to BTC is likely affected by other microeconomic factors such as the cryptowinter and the Fed’s policy tightening than The Merge, noting:

“There are some positive forecasts coming in from enthusiasts who note that the Merge was a landmark event and the price of ether could surge by two, three and even five times.”

Since The Merge, the BTC price has been fluctuating between $19,000 and $20,000. ETH reached $1,469.74 on 17 September before falling to around $1,300, as of 20 September.

Lian stressed that it is important investors remind themselves that the effects of The Merge, possibly including the ETH to BTC price, will only be felt in the long-term:

“The gas fees will remain the same, and other scalability issues are still unsolved. The community at large must wait for Surge, Verge, Purge, and Splurge improvements to see a reduction in transaction costs and boost scalability significantly.”

Concordium Foundation’s Christensen also noted that the current market environment is challenging:

“The correlation to broader asset markets is very clear, and if stocks don’t recover, this will add to negative sentiment. If Ethereum goes decisively below 1,400, I think we could see a significant sell-off.”

Christensen added that the next Ethereum upgrades will be in focus:

“The most important thing is increased scalability, which will reduce fees. Until that happens, Ethereum is in effect not much use, and entirely reliant on Layer 2 solutions that provide much less security than Ethereum itself.
“Considering how difficult the Merge has been to execute, with years of delay, my personal belief that Ethereum can deliver the next stages in a speedy fashion is limited. Ethereum has one advantage and one advantage only: a very loyal ecosystem that will go through the most extraordinary and irrational hurdles, just to stay loyal. I wonder how long that will last.”

ETH/BTC exchange rate forecasts

Based on its analysis of past price performance as of 20 September, algorithm-based forecasting service Wallet Investor predicted that ETH/USD could trade at $2,391.383 in 2023 and reach $7,135.056 by 2027.

In terms of bitcoin prediction, the site saw BTC/USD trade at $33,668.92 in 2023 and reach $79,969.28 by 2027.

While Wallet Investor did not provide a direct ETH/BTC exchange rate forecast, the data suggests that they expected the rate to be 0.335BTC in 2023 and 0.421BTC in 2027.

DigitalCoinPrice supported a positive ETH/USD forecast, as of 20 September, and expected the coin to grow to $1,832.85 by the end of 2022, $3,032.72 in 2023 and $5,417.40 in 2025. Its long-term prediction saw the token surge past $18,000 in 2030.

The site also gave an upbeat BTC/USD forecast, expecting the coin to grow to $27,580.79 by the end of 2022, $41,874.03 in 2023 and $76,453.11 by 2025, passing $264,000 in 2030.

DigitalCoinPrice expected the rate to be 0.0665BTC by the end of 2022, 0.0724BTC in 2023, 0.708BTC  by 2025 and 0.068BTC by 2030.

Note that forecasts and analysts’ expectations shouldn’t be used as a substitute for your own research. Always conduct your own due diligence and rely on your own projections. And never trade money you cannot afford to lose.

 

Source: https://capital.com/eth-btc-prediction-ethereum-bitcoin-merge-domination

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 “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”.

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Elon Musk again sparks 10% rise in Dogecoin. Does it have more steam left?

Elon Musk again sparks 10% rise in Dogecoin. Does it have more steam left?
Synopsis

Anndy Lian, Chairman, BigONE Exchange said, “Dogecoin continues to rally after Elon Musk’s tweet on meme coin. This has triggered retail investor buying. Together with this trend, the number of long term holders of dogecoin rises.”

New Delhi: After a brutal correction, Dogecoin was back in demand, zooming as much as 10 per cent during Monday’s trade. The largest and biggest meme coins market cap once again topped the $20 billion mark.

Volume on the counter remained strong, with Dogecoins worth over $1.5 billion having exchanged hands in the last 24 hours.

Analysts said that Elon Musk’s tweet again sparked the rally in Dogecoin. Musk, the owner of Tesla Inc, is also known as ‘Doge Father’ among crypto fanatics.

Musk on Sunday tweeted that he is giving “serious thought” to building a new social media platform, a day after he put out a poll on Twitter asking users if they believe the social media giant adhered to the principle of free speech.

When a follower suggested that Musk buy the company (Twitter) and change the logo from a bird to a Dogecoin, Tesla Inc CEO indicated that he likes the idea.

Anndy Lian, Chairman, BigONE Exchange said, “Dogecoin continues to rally after Elon Musk’s tweet on meme coin. This has triggered retail investor buying. Together with this trend, the number of long term holders of dogecoin rises.”

The various factors give a very bullish outlook for Dogecoin, with many analysts forecasting an ascent of around 50 per cent, Lian said.

Market experts said Dogecoin has been in momentum over the last few months, experiencing a roller-coaster ride in price movements.

In a period of little more than two weeks, Dogecoin has jumped as much as 50 per cent, scaling $0.15 on Monday. However, it is still about 80 per cent below its all-time peak of $0.6848.

The volatility in Dogecoin is fairly high and investors should remain cautious while investing in it, suggested Praveen Kumar, Founder & CEO, Belfrics Group, adding that going forward, the volatility would continue and investors should look at some level of profit booking in this upwards price movement.

Experts are swearing by the ever-growing popularity of Dogecoin among retailers on a global level. The rising volumes of the token is indicating the same.

Dogecoin has a tremendous future and will see better upside due to its massive retail involvement, enhanced acceptance, and backing of legendary Elon Musk, said Rahul Kumar, CEO of Lyca Nation, a metaverse based crypto island.

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 “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”.

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VET crypto price prediction: Will VeChain rise in value?

VET crypto price prediction: Will VeChain rise in value?

VeChain demonstrates the continuing advancement of the blockchain sector.

VeChain is a fully programmable smart contract platform that utilises distributed ledger technology to provide retailers and consumers with the ability to determine a product’s quality and authenticity. In a sense, this enhances supply chain and product lifecycle management processes, while connecting blockchain technology to the real-world.

Founded in 2015 by Sunny Lu, the project’s vision is to build a trust-free and distributed business ecosystem platform to enable transparent information flow, efficient collaboration and high speed value transfers.

More specifically, VeChain ToolChain offers a low-code blockchain-based software as a service (SaaS) platform that allows enterprise clients to build and drive digital transformation on a global scale. Solutions are suited to an enterprise’s specific business needs. VeChain has secured high-profile partnerships with the likes of PwC, Walmart China and BMW Group.

What the VeChain project excels at is enabling businesses to track their products and conduct quality assurance through a unique blockchain-as-a-Service (BaaS) model. This has the potential to both reduce the costs between parties, as well as making business cooperation simpler and more efficient.

In particular, global supply chain suppliers stand to benefit from the integration of blockchain technology since their systems often rely on tracking physical paperwork between siloed parts of a multinational network.

In 2019, multinational retail corporation Walmart announced that it would be partnering with VeChain to streamline product management between its suppliers, stores and customers in China through a traceability strategy.

Earlier this year, the Republic of San Marino approved VeChain’s NFT-based vaccination passport which contains a record of past infections, negative test results and also provides a digital vaccination certificate.

In other VeChain news, the company has worked with the Chinese government to introduce a risk self-assessment application called VeTrust, which is built on the VeChainThor blockchain and combines DNV’s – the classification society and a recognised advisor for the maritime industry – infection risk management methodology.

What is VeChain (VET)?

From product source materials to servicing history, every single piece of information about the supply chain movement of a product can be recorded and verified. VeChain offers a product traceability strategy which covers the life cycle of products from manufacturing, logistics, supply chain, retail and wholesale.

By utilising VeChain’s blockchain-powered platform, businesses can assign products with unique IDs and then track goods and services by embedding this ID in a QR code. This allows manufacturers, supply chain partners and consumers to track the movement of products through their supply chain.

On the VeChainThor platform, there are five main types of participants:

  • Business owners, which includes all kinds of entities such as enterprises, individuals, organizations, departments of governments and regulators
  • Application service providers that help business owners who do not have the individual adequate capabilities to build necessary applicational development and services on the VeChainThor blockchain
  • Enterprises or individuals that are capable of providing technical services to build and run smart contracts for business owners who wish to develop blockchain applications
  • Infrastructure service providers who ensure the integrity of the VeChainThor blockchain network by generating and verifying blocks
  • Members of the VeChain Foundation

The VeChain token (VET) is used to carry value from smart contracts which means that transactions on decentralised applications occurring on VeChain’s blockchain use VET.

The VeChain Foundation has distributed more than 70% of VET tokens (including a portion of burnt tokens) through different processes including private sale, public sale, promotions, business collaborations and marketing activities.

VET price analysis: Technical view

The VET coin started its journey in August 2018, and achieved an all-time high of $0.2782 on 17 April 2021. Only a week earlier, on 10 April 2021, VET had been trading at $0.1335.

However, the price retreated to $0.1589 on 25 April, dropping to as low as $0.07553 on 23 May. This is somewhat of a sharp drop considering that the coin had hit its all-time high just 37 days earlier.

The VET price then consolidated, trading within the $0.06 to $0.09 range until 7 August 2021, when it climbed to $0.1031, hitting $0.1556 on 6 September 2021. The rally was short lived, and the trend reversed when the price dropped to $0.08642 on 29 September 2021.

It’s currently (2 December) trading at around $0.116202. A decisive close above $0.12 would confirm a rally and clearing this crucial barrier could reverse VET’s downward trend.

VET ranks 27th in the list of cryptocurrencies by market capitalisation at $7.6bn. There are more than 64.32bn VET coins in circulation from a total supply of 86bn, according to CoinMarketCap.

Technical analysis provided by CoinCodex shows that short-term sentiment on VET is bearish, with eight indicators displaying bullish signals compared with 18 bearish.

The daily simple and exponential moving averages are giving mostly sell signals, according to data from TradingView, while the relative strength index (RSI) is at 39, as of 2 December. An RSI reading of 30 or below indicates an oversold or undervalued condition. Generally, when the RSI surpasses the horizontal 30 reference level, it could be interpreted as a bullish signal.

The technical analyst at CoinText, Ansh Rathod told Capital.com:

“VET has fallen by over 40% from the highs that it hit last month, however it seems to be taking support from the lower trendline, which could be a reversal zone for the coin. VET has formed several bullish candles at the support level and a break from the $0.129 resistance zone could change this downward trend.”

Blockchain-powered solution focused on supply chain and logistics needs

Last month, VeChain marked a milestone in its seven-year history. The company launched the first phase of its Proof-of-Authority (PoA) 2.0 consensus mechanism, which aims to improve the scalability of the network.

The upgrade allows VeChain transactions to be authorised without the use of mining, thus reducing environmental impact and providing a boost to the project.

According to VeChain, PoA 2.0 combines the Byzantine Fault Tolerance and Nakamoto consensus mechanisms to offer a more secure system, which could lead to wider adoption for the project.

Anndy Lian, chairman of BigONE Exchange and chief digital advisor for Mongolia’s national productivity agenda, believes that the VET token has not yet reached its optimum potential.

“VeChain’s recent upgrade to a Proof-of-Authority (PoA) model is deemed to be more environmentally friendly and this is just the beginning. Many people in my circle are saying that VET’s price could go up during this bullish market but they are yet to invest in the project as they are waiting for the full-scale launch of the upgrade to materialise. I can only say that innovation takes time – let’s be patient.”

What are the risks for the VET token?

While VeChain is a cryptocurrency that powers a network with some revolutionary potential, it’s crucial to take key risks into account and consider the price yourself before you decide to proceed forward. VeChain was launched in 2015, making it a relatively new project.

Also, the PoA system used in VeChainThor lacks the open, permissionless and decentralised nature which is inherent to blockchains, thus posing centralisation risks.

VET token price prediction: Buy, sell or hold?

In terms of a VET coin prediction, algorithm-based forecasting service Wallet Investor gives a positive VET/USD forecast. Based on historical data, Wallet Investor sees the price rising to $0.224 by December 2022, $0.441 in December 2024 and hitting $0.549 by December 2025.

Digital Coin Price supports the bullish VET crypto forecast, expecting the token to grow to $0.2290027113 in 2022, $0.2898387094 in 2025 and hit $0.5757652097 in 2028.

Note that algorithm-based 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.

Original Source: https://capital.com/vechain-vet-coin-prediction

 

What is VeChain?

VeChain is an enterprise blockchain platform that aims to solves some of the major problems with supply chain management. VeChain also plans to become a leading platform for conducting transactions between Internet of Things (IoT) connected devices.

Who invented VeChain?

VeChain was founded in 2015 by Sunny Lu. Lu was the former CIO of Louis Vuitton China.

What is Anndy Lian's view on VeChain now?

VeChain’s recent upgrade to a Proof-of-Authority (PoA) model is deemed to be more environmentally friendly and this is just the beginning. Many people in my circle are saying that VET's price could go up during this bullish market but they are yet to invest in the project as they are waiting for the full-scale launch of the upgrade to materialise. I can only say that innovation takes time - let's be patient.

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 “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”.

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