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Ethereum On Track To Complete $1 Trillion in Transactions in 2020

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2 Monaten ago

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The Ethereum network is well poised to be the first cryptocurrency network to process US$1 trillion in transactions by the end of 2020.

The potential of the Ethereum network to hit this milestone was revealed by the cryptocurrency market data aggregator Messari who noted that the network’s 30-day rolling daily average for Ethereum transaction volume is currently at $7 billion. Should the momentum be sustained, Messari believes that the network will eventually process up to US$1 trillion in transactions this year.

As stated by Messari’s Ryan Watkins, “Ethereum’s progress has been so incredible that it will likely become the first public blockchain ever to settle $1 trillion in a year.”

Ethereum has undoubtedly trailed Bitcoin as both digital currencies have occupied the top two positions amongst other cryptocurrencies and analysis of Messari’s transaction volume between the two coins shows that should the predictions be correct, this year would be the first time the Ethereum network will surpass that of Bitcoin.

The total transaction volume on the Ethereum network back in 2016 was $7 billion while Bitcoin’s closed at $88 billion. Both networks experienced relative growth in 2017 with total transactions on the Ethereum network topping $360 billion and Bitcoin transaction $685 billion. Apparently, the Bitcoin network had its highest transaction volume to date in 2018 when it recorded a total of $849 billion dollars. From the projected 2020 figures, Ethereum is expected to surpass bitcoin in total transactions while bitcoin will see its second-highest volume recorded at $800 billion.

Ethereum Transactions Surge, Factors Behind the Rally

Messari has attributed the surge in the transaction volume of Ethereum to the surge in the use of Stablecoins as well as decentralized finance (DeFi) applications running on the Ethereum Network.

“Much of this activity is attributable to Etherum’s stablecoin volumes. Tether alone now transacts more daily than Bitcoin. Most of this volume is ERC-20 Tether,” Watkins tweeted, adding that “the second leading reason for this is Ethereum’s boom in on-chain liquidity. Uniswap and Curve did more than $20 billion in combined volume for September. DEXs now comprise 13.6% of total volumes from all exchanges both centralized and decentralized.”

The activity boost as a result of the Stablecoin and DEXs is already seeing perpetual competition from alternate networks that seek to capitalize on the loophole of the Ethereum network particularly as it relates to scalability. The ethereum foundation is already working on turning this obvious weakness into strength with the almost perfected plan to migrate to a Proof of Stake (PoS) mechanism dubbed Ethereum 2.0. 

The prospect of this migration has been reiterated and besides scaling up from the current 15 transactions per second, with the PoS, it will be able to perform as much as 100,000 transactions per second. With this capability, the network will undoubtedly attract and accommodate more ERC20 tokens as well as Dapps.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





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RIOT Stock Registers Unprecedented Rally, Riot Blockchain Valuation Soars Above $1B

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23 Minuten ago

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Dezember 29, 2020

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Following the Bitcoin all-time high on Sunday, December 27, Riot Blockchain stock registered 20% gains on Monday’s trading session. The stock has already appreciated by 13x this year. Apart from BTC, investors of Bitcoin mining companies are making a bomb in the market.

Bitcoin mining giant Riot Blockchain is making all the news in the market at the moment. On Monday, December 28, Riot Blockchain Inc (NASDAQ: RIOT) stock price surged a massive 20% surging past $15.5 levels. One of the biggest milestones with the Monday rally is that the Riot Blockchain has clocked a $1 billion market cap.

The latest price rally comes as Riot Blockchain hints at going aggressively on its Bitcoin mining business. Last week, the Riot Blockchain added new S19 Pro Antimers to its bitcoin mining arsenal. The company announced the purchase of an additional 15,000 Bitcoin (BTC) mining machines from Bitmain. The recent purchase also pushes Riot’s total fleet to 37,640 Next-Generation Bitmain Antminers.

Riot said that the fresh purchase of Antminers will help the mining company to attain a 65% jump in its mining hash-rate. RIOT stock has registered an unprecedented rally this year in 2020. RIOT stock has multiplied by 13x this year registering a 1200% surge so far.

Riot Blockchain has issued nearly 17 million shares since November 2020 with its total outstanding shares going to 67.5 million. It has been a phenomenal journey for Riot ever since it ventured into the Bitcoin mining business in October 2017. With valuations less than $50 million back then, Riot has grown more than 20x in size as of its latest stock price.

RIOT Stock and Shares of Other Bitcoin Mining Companies Profit from BTC Bull Run

The recent Bitcoin (BTC) price rally during Q4 2020 has also pushed the stocks of Bitcoin mining companies to new highs. Earlier on Sunday, December 28, the BTC price hit its all-time high of $28,000 in a massive bull run followed by huge institutional inflows.

Moreover, along with the BTC price rally, the Bitcoin hash-rate has jumped significantly since November 2020. Over the last two months, the BTC hash-rate has surged nearly 30% and is currently at 132 TH/s. The surge in the hash-rate suggests higher mining activity for Bitcoin.

As a result, Bitcoin mining companies have been making massive purchases of the BTC mining machines. In addition to Riot Blockchain, other giants like the Marathon Patent Group have made aggressive purchases over the last few months. Just like RIOT, the Marathon Patent Group (NASDAQ: MARA) has registered a phenomenal rally of 18% on Monday, December 28. MARA stock has multiplied investors’ wealth by 12x in 2020. It means the MARA stock has also given phenomenal 1100% returns year-to-date.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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How low could XRP go? Watch these price levels next

Published

7 Stunden ago

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Dezember 29, 2020

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XRP price dropped by 30% on Dec. 29 following Coinbase’s decision to suspend trading. 

The market sentiment around XRP has become overwhelmingly negative due to the fear of more exchange delistings.

In the near term, XRP faces three key historical support levels at $0.224, $0.1743 and $0.1471.

Where will the XRP price go next?

The ongoing price trend of XRP is not cyclical nor reliant on technical analysis. It is due to investors selling XRP following the suspension of trading across major cryptocurrency exchanges.

On Dec. 29, Coinbase announced that it is suspending the XRP trading pairs on their platform. Paul Grewal, the chief legal officer at Coinbase, wrote:

“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing.”

As Cointelegraph previously reported, analysts anticipated Coinbase to suspend XRP trading after the United States Securities and Exchange Commission filed its complaint.

Coinbase plans to undergo an initial public offering, and it is in the firm’s best interest to remain fully compliant with the regulators in the U.S.

Considering the regulatory uncertainty around XRP, traders have emphasized that technical analysis is of less importance in the short term. Scott Melker, a cryptocurrency trader, said:

“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here. You cannot trade in a vacuum. Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”

In the foreseeable future, XRP has several major support areas it could potentially recover from. However, these are deep support levels on the weekly chart, which shows that it lacks momentum for a major rebound.

XRP/USD weekly candle price chart (Coinbase). Source: TradingView.com

The XRP price has fallen by over 60% in merely two weeks, recording one of its steepest two-week drops in history.

What happens next?

Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to break the story that Coinbase had conversations about suspending XRP trading.

Cochran hinted that the SEC are probably looking into more projects and companies than people realize. He said:

“If you thought my scoop on Coinbase delisting/suspending $XRP was insightful, you’re going to love the next scoop I’m working on, this week. Looks like that SEC is far more active than we thought and sniffing around a number of projects and companies!”