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‘Ethereum Killers will fail’ says Freddy Zwanzger of Blockdaemon at EthCC

“All the Ethereum killers from back in the day didn’t succeed, and I don’t expect them to succeed at all,” as stated by Ethereum lead at Blockdaemon, Freddy Zwanzger. 

Zwanzger believes that Ethereum will maintain its superiority over other smart contract platforms in the crypto ecosystem primarily due to post development of the Merge. 

Zwanzger met with Crypto media platform, Cointelegraph during the Ethereum Community conference where he stated: 

“It’ll continue to be a leader. I mean, obviously, the first and most important smart contract platform, and that’s not going to change.”

Blockdaemon provides  node operations and infrastructure tooling for various blockchain projects. 

Solana, Cardano, Tezos and Polkadot are all considered crypto projects that may put Ethereum on its back in the near future. Especially now, many smart contract platforms are performing at a higher level than Ethereum in terms of scalability and gas prices. 

However, despite Ethereum’s current setbacks, it has remained on top of supposed competition, which may be expected to take a huge hit given Ethereum’s tentative date for the merge. 

Zwanzger is of the belief that the Merge will boost Ethereum’s position to new heights in terms of its technological development and the value of its native coin, Ether. 

“There are so many good things in there, like environmentally-friendliness, [and] all sorts of things that are beneficial to a lot of people. Staking will become more attractive,” he explained, “It’s a show of strength and commitment that the roadmap is materializing.”

Ethereum’s merge refers to the process that will see the Ethereum mainnet merge with the Beacon blockchain, effectively making Ethereum a Proof of Stake consensus instead of a Proof of Work consensus. This will give Ethereum’s efficiency a 99% overhaul in terms of energy consumption, transaction costs, and scalability. This will be a big step for Ethereum as its current PoW consensus only manages to allow 15-20 transactions per second (TPS). It is expected that the TPS will hit up to 100,000, a stark overhaul for the Ethereum network and its derivative ecosystems. 

“The original Ethereum roadmap was focused on sharding, but that’s not so much the case anymore. Now we have a roll-up-centric roadmap, so scaling via layer-2 solutions,” said Zwanzger. 

Traders hold as week closes in on BTC price

A hold below the BTC’s $23,000 must hold at the week’s close in order for bulls to remain calm. 

Recovering over $23,000 on the day, July 22, attention has increased towards the upcoming close for the week. 

Market data has indicated that BTC/USD has found a bolster of energy, diving towards the $22,000 mark. Trading in a particularly critical zone for bulls, the 50-day and 200-week MAs have yet to flip from resistance to support. 

Analysis holding out for the weekly close are trying to ascertain the resolve of Bitcoins’s latest upward movements which have garnered some 25% of its value. 

A Rekt Capital analyst tweeted, “To perform a reclaim of the 200-week MA as support, $BTC needs to Weekly Close above $22800.” 

Another trader by the name of Jibon had this to say in a tweet about the critical level Bitcoin will need to maintain at the close of the week. 

Jiboon took into consideration that Bitcoin is still in a bear market, alluding to the end of it some time into 2023. “So All bullish trends are temporary moves,” he explained.

Sentiment towards market volatility has grown as the QCP trading firm voiced its opinions about the upcoming meeting of the US Federal Reserve and the Federal Open Markets Committee that will take place on July 27th. 

When it comes to the US dollar index, analysts have been waiting for a long-term parabolic upside to show signs of cracking. According to market data, USD remains at an inverse correlation with the performance of crypto assets. 

Major BTC Outflow from Tesla, BTC Price dives under $23k

BTC has taken a sudden pause on its march towards $24,000 as the media has reported that Tesla sold off 75% of its Bitcoin.

Starting the day on a positive note, Bitcoin was on its way to climb over $24,300. However a turn in the latter half of the day would see it ending in the red with Q2 earning news reporting that Tesla sold 75% of its Bitcoin, at the same time Mojang studios announced that it would ban NFTs on its platform. 

Tesla’s Q2 earnings data showed that 75% of its BTC holdings were sold for the accumulation of $963 million to its newly recorded balance. 

The unexpected pullback comes at a time when bullish sentiment was increasing. Now some traders are thinking this sentiment was premature. 

Pullback for BTC as a response to this sell-off has been pretty mild. A few other alltcoins experienced steeper declines on the day as gains over the past week have sparked some traders to sell as well. 

Ethereum’s Polygon decreased by 11.5% at the head of a week where the coine value was increased by 87%. Arweave(AR) dove by 10.84%, while Filecoin(FIL) went down 10.2%

There were a few coins in the top 100 that managed to hold on to the green. Steem (STEEM) and (REEF) managed to gain 6.27% and 3.15% respectively. The overarching crypto market cap is now at $1.035 trillion, with a Bitcoin dominance rate at 42.7%

Bitcoin whales lined up to sell at $20k despite recent gains

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Many analysts are claiming that whales will make it much harder for traders to turn BTCs current BTC price of $20,000 to support. 

September  28 saw BTC bounce back during the Wall Street open as bulls began a face off with BTC whales prepped to sell. 

Market data indicates that BTC/USD has gained over $1,000 on September 28. Bitstamp saw the BTC price go up to $19,656. 

Following gains from the United States equities, The S&P and Nasdaq Composite Index increased by 1.5% and 2.2% respectively. 

However, further analysis indicated that the $20,000 mark for BTC was lacking larger volume traders who are ready to increase their profits. Material Inficators had this to say about the current situation. 

“The BTC/USD chart on major exchange Binance “shows brown Mega Whales dumping into BTC support to minimize slippage,”

“Let’s see if $19.5k holds to set up another potential run at the R/S flip zone ~$20k.”

Analyst Maartunn, a contributor on CryptQuant also highlighted a large spectrum of bid interest taking place in the range between $18,000 and $18,500. That being said, the bounce has many traders skeptical with many analysts warning bulls to not start celebrating just yet. 

Macro saw the UK central bank bounce back to quantitative easing following some financial turmoil that targeted its currency and bond market; the Bank of England however, made a recovery on the GBP/USD after hitting all-time lows. 

 However, the US dollar itself staved off from its 20 year highs, losing 1.5 points on the day. IncomeSharks reacted optimistically with,

“Looks like we’ll finish the week out strong for Bitcoin and Stocks as we head into Pumptober,”

Traders wary of Bitcoin price volatility, DXY 2022 shows increase towards 20%

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The US dollar is once again at center stage as the month closes and expiry hangs over Bitcoin. 

With Bitcioin volatility moving up on the day, Wall Street managed to avoid some pretty heavy losses. Market data indicated BTC/USD fluctuating around $19,000 on the day. 

It was anticipated that BTC/USDwould break itself out of the narrow range, having consolidated since September 22. 

CEO of Eight trading firm, Michael van de Poppe had this to say in a tweet on the day. 

“Theory still stands for Bitcoin,”

“Crucial area at $18.6K holds for support, which we’ve been testing multiple times. Another test of the $19.4K–19.5K area (which we’ll be doing soon) is, most likely, giving a breakout to the upside. I’m targeting $20K and $22.5K.”

On chain analytics from Material Indicators validated these claims by Van de Poppe, adding,  “BTC is trading in a tight range. Volatility will increase as the week progresses toward the Monthly Close, which coincides with Monthly and Quarterly Options expiry,” on a tweet. 

“If bulls can manage a green M close above $20k, technical resistance is at the key MAs.”

Analyst Josh Rager, provided another suggestion on a more optimistic scenario for the BTC/USD pair as its current movements seem to be mirroring from the beginning half of 2019. 

“Uncertain if a bottom is in for Bitcoin but if the BTC price starts making its way back up to $24k+, I’ll certainly be paying attention,” Rager said in a tweet. 

“Not saying that history will repeat but April ’19 took most people by surprise.”

The S&P 500  and Nasdaq Comp Index were down by .35% and .65% respectively on September 26. The US dollar index (DXY) seemed ready for an attack on its prior 20 year highs, retracing after hitting 114.52 since May of that year.  This marks the best year for the DXY since then, and is up by 18% since January 1. 

Ethereum hard fors are out post merge: what to expect

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Marking a turning point for the Ethereum platform, the merge may have ushered in a new set of consequences for the new PoS system. 

One day post merge saw the DeFi community settle into an anticlimactic transition for the Ethereum network, which entailed a switch of Proof of Work consensus to the much more desired Proof of Stake consensus model. The proof of work mining communities for Ethereum: Ethereum and Ethereum Classic has shown to act quite differently post merge as well. 

EthereumPOW debuted on twitter with multiple twitter posts reporting issues with access to the network.  A result of a hack, the issues have since been resolved. OKX, A major crypto exchange, began providing on-chain data for EthereumPOW. With a seemingly stable transaction activity, EthereumPoW has been experiencing a steady decay of value since its launch, beginning at $137 at its highest, down to $5.87 at the time of writing. 

Without a clear roadmap for the trajectory of EthereumPoW, it seems that the project has been delegated as a meme, especially when looking at its 10  page white paper including 5 pages purely dedicated to the title of the platform, and another 5 pages containing absolutely nothing. The GitHub repository displays only 16 contributions since August, 2022, accompanied by no further information on the EthereumPoW official documents. 

The Ethereum Classic may see an update in its struggle since its debut, as the community has displayed more interest in the six-year project. Originating in 2-16 with the goal of providing a solution to the DAO hack, it was the sign of a stark division in the Ethereum community. 

The DAO or decentralized autonomous organization was designed to address the hack and help investors get back on their feet.  Agreeing to roll back the network history, those who disagreed with the old fork continuation called the new platform, Ethereum Claasic. 

Ethereum Classic is just an open-source blockchain running smart contracts with its own dedicated cryptocurrency. 

This preference in the community transcends the valuation of the coin, but the practicality that it entails. Sebastian Nill, ETC miner and COO of AETERNAM  says the the PoW consensus is more attractive the the mining community: 

“The solana blockchain has garnered an increased amount of daily transactions totalling out to more than 40 million, exponentially outperforming Ethereum’s comparatively smaller 1 million daily transactions in April and June, 2022.”

He adds:

“Ethereum Classic is going to be just as effective as Ethereum was for miners. In the end, the community is going to pick ETC, not because of its rentability but for effectiveness for data processing.”

Salana outperformed Ethereum in Q2 Daily Transactions

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The solana blockchain has garnered an increased amount of daily transactions totalling out to more than 40 million, exponentially outperforming Ethereum’s comparatively smaller 1 million daily transactions in April and June, 2022. 

It seems that the hype Ethereum has been able to acquire in the past months did not help it to reach new avenues in Q2 of 2022, as reports indicate that Solana surpassed Ethereum’s daily user transaction count despite push back from market conditions and network outages. 

Q2 saw Solana’s daily user transaction increase, capped out with over 40 million transactions, a stark contrast to Ethereum’s 1 million per day between the months of April and June. 

Despite its higher volatility, Solana was able to keep an increased daily transaction count. It was revealed upon further observation of on-chain data that solana-based network, Serum, was among the top Dapps to contribute to the surge of daily transactions. Solana was able to record around 100 million to 200 million vote transactions per day from 400,000 wallets,  exceeding almost 1 million  wallets by the end of May. 

This growth can be attributed to funding which occurred in Q2 which were targeted towards GameFi, DeFi and NFT platforms. A Nansen research analyst, Mega Septandara said, “Whether it’s the establishment of the Korea grant and investment fund, or the numerous upcoming events that welcome new builders and users, the Solana ecosystem is thriving.”

A governance proposal slated for October 2022 noted the possibility of Helium, an IoT blockchain, to transition to Solana. The de community had this to say: 

“In the last several months of the network, both have been challenging for network participants with much reduced proof-of-coverage activity due to network size and blockchain/validator load, and packet delivery issues.”

BTC price holding at $20k despite US stock major losses

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The US stock market is at a total loss of $1.6 trillion equalling out to 4 Bitcoin market caps. Despite this, the BTC price has remained sturdy at near the $20,000 price level. 

Losing its $20,000 support during the night leading to September 14h, US inflation caused a severe decrease in risk assets. 

Maret data indicates that BTC/USD hit lows of $19,780 on Bitstamp, the pair’s most severe drop since September 9th. 

This comes during a rout in stocks which was triggered by the Consumer Price Index inflation data for the month of August having higher results than expected. 

With the market hoping for a quicker recovery from inflation, the market inflation is still lower than July. With predictions for the prospect of recovery wearing thin, equities index have also lost value severely, with major tech corporations like apple losing as much as $154 billion in daily losses. 

“Markets had tried desperately to spin a bull case and fight the Fed, basically, and that’s a dangerous place to be,” said Carol Schleif, deputy chief investment officer at BMO Family Office, in an interview with Bloomberg.

US stocks fell by about $1.6 trillion on the day, totalling more than four times the market cap of Bitcoin. Coincidentally, the strength of the US dollar increased as shown on the DXY which surged back to 20 year highs.

Bloomberg analyst calls Bitcoin a ‘wild card’, says major rebound is on the way

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Mike McGlone, an analyst for Bloomberg said that Bitcoin (BTC) is a ‘wild card’ that is set to for a major rebound when stocks finally bottom out. 

McGlone gave his analysis over a 7-part Twitter thread, this September 7 where he explained that Bitcoin remains a “wildcard” in the face of Federal Reserve’s control over the traditional stock market. 

“Bitcoin is a wild card that’s more ripe to outperform when stocks bottom, but transitioning to be more like gold and bonds.”

McGlone gave more detail in his report on September 7, where he highlighted Bitcoins potential to rebound from the bear market, even considering the upward battle facing high-risk assets. 

“It’s typically a matter of time for the fed funds gauge to flip toward cuts, and when it does, Bitcoin is poised to be a primary beneficiary.”

He added that Bitcoin may coincide with movements in treasury bonds and gold, while Ehtereum (ETH) “may have a higher correlation with stocks.”

The Federal Reserve has increased quantitative tightening during some major interest hikes that have been occurring throughout the year. The most recent interest rate hike accounted for 75 basis points on July 27. 

It is not known for certain when the quantitative tightening will subside, however, some economists have forecasted its end to be “at some point in 2023” as a Bloomberg article states. 

Other experts are led to believe, in contrast to McGlone, that Bitcoin and equity markets coincide on an even greater magnitude. 

Bitcoin dives below $19k, data indicates bulls unwilling to add leverage longs

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BTC took a dive on September 6th as market data has shown traders skepticism over a quick BTC recovery.

From $19,820 to $18,960 in less than two hours on the day,  this steep drop from BTC was the deciding factor in a series of futures liquidations, totalling $74 million. At $18,746 at the time of writing, this is the lowest BTC has been since June. 

A 2% jump happened in the morning of September 6, yet the Bitcoin quickly lost that traction, derailing to $19,800 within the span of an hour. Ethereum has seen a 7% increase in the past 48 hours. 

However, On September 6 , ETH dropped by 5.6%, higher in percentage than BTCs on-the-day losses at just 3.8%. Since August 27 as  result of the Powell speech and the 1.25 trillion in US stock losses. Powell stated that larger interest rates were highly likely, which led to an S&P  close at 3.4% on that day. 

Other retail traders have usually been those to avoid futures because of the difference from spot markets. However, they are still generally useful to traders, preventing fluctuation in funding rates  in perpetual futures contracts. 

Healthy markets are indicated by a 4% to 8% annualized premium that covers costs and associated risks. BTC premiums have remained below 3% for the entirety of that time, indicating apprehension  to add bullish momentum. 

Bear markets typically see investors give higher odds for price dumps, which cause the skew indicator to increase over 12%. Bullish markets will typically see a minus 12%, discounting options. 

The thirty-day delta skew was over 12% since September 1, indicating that options traders were not so confident about downside protection. The two metrics also indicate that the price dump on September 6 may have been expected, as some traders foretold. 

To contrast, August 18 saw Bitcoin drop by $2,500, which caused bullish liquidations to reach $210 million. Bearish sentiment prevailing, this does not simply mean the continuation of a losing streak for BTC. Treading carefully during this time is imperative while whales and market markers are not as willing to add leverage longs and downside protection for options. 

Ethereum Merge may force crypto mining to surge in other PoW platforms

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The Ethereum Merge is soon to come and it may spell utter disaster for crypto miners who may give up their mining rigs. 

The Ethereum merge will entail a transition of the Proof of Work (PoW) consensus system  to a Proof of Stake (PoS) and will cause a major hiccup to other coins running on the PoW consensus. 

CEO of Bitcoin miner White Rock suggests that the Ethereum Merg will be a signal to PoW miners to look for a new opportunity elsewhere, and “swamp” PoW coins, increasing the amount of difficulty, and inversely affecting profitability from mining in these other platforms. 

“As GPU miners point their hardware at other chains their difficulty will increase causing lower returns and splitting the reward amongst more miners.”

“Hashrate will flow to alternative GPU PoW coins, and many miners will simply give up and try to sell off their farms of cards,” he said.

“Some miners will try to sell their High-Performance Computing (HPC) or GPU cloud services and will likely fail since there’s too much capacity chasing a limited amount of demand,” he added.

Prices in GPUs have been on a steady decline, likely due to the harsh times the crypto market has fallen on recently. At this point, it is becoming increasingly more difficult for traders to get rid of their mining rids amid the dropping prices in GPUs. 

Long says that he is interested to see “how market forces play out.”

“When I was building GPU farms in 2017 the Merge was cited as an imminent threat and would have been much more impactful then.”

“There will always be GPUs mining some GPU optimized chains, but I doubt we will return to the levels of revenue seen in ETH proof-of-work at its peak ever again.”

The Ethereum Merge is set for a date between September 10 and September 20. It is touted as being the most pivotal upgrade on the crypto stage in 2022.

Bitcoin below $20k during Powell speech, regarded as ‘bunch of nothing by community

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The Bitcoin price may see another dip under $20k as traders fear, with price targets seemingly set at $16,000.

Analysts kept price targets as of August 27 after Bitcoin BTC briefly fell below the $20,000 mark.

Market data indicates that BTC/USD hit $19,945 on Bitsamp after some predatory comments made by the US Federall Reserve. Intraday losses were as high as 9% along with the US equities faltering over the outlook on current inflation policy which may not cater to the “soft landing” idea anymore

“Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth,” Fed Chair Jerome Powell said in a speech at the annual Jackson Hole Economic Symposium.

He continued: “Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”

The community did not take well to Powell’s speech as traders like Will Clemente took to twitter to voice their opinions.

A combined $1.25 trillion was lost by US stocks in a single session, totalling over the entire crypto market cap. Bitcoin surpassed $20k on the day, and is now hovering near $20,200. It is still closer to its one-month lows. Traders are now worried that this sudden relief will be followed by even steeper losses in the near future.

Il Capo of Crypto lso released another tweet in which he laid out short term relief targets between, $23,00, and $23,500. He also marked the lowsides as being anywhere from $19,000 to 16,000.

https://twitter.com/CryptoCapo_/status/1563434314507104257
Twitter account TraderSZ said that a $19,400 may be a potential bounce zone after this correction, and relief will likely open near $23,000 at the beginning of the new week.

“Moving higher resistance at $21,100. Support at $19850 followed by $19,200,” the Twitter account for trading suite Decentrader said.

In the wake of tumbling stocks, the US dollar index saw heavy losses but rebounded later in the day which putting it even closer to twenty-year highs.

August 26 saw the DXY at just near 108.9 which is an increase from its previous 107.6 just hours before.

“FED staying the course means $DXY maintains its trend which means assets trend down more,” analyst Kevin Svenson summarized.

Bitcoin steady at $20k despite analysts warning of ‘more deleveragin’ due to BTC open interests

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Holding at $20,000 on the day, BTC is trading in the lower spectrum of its 76-day range. Analysts are weary of actions by the Fed.

Struggling at $20,000 from repeat dips throughout last week have garnered the opinion of some analysts that forecast a steeper downside in the near future. Philip Swift posted a tweet that the Crypto Fear and Greed Index  headed back down to “Extreme Fear,” indicating weakened sentiment from investors. 

Analytics data from Delphi Digital noted that Bitcoin open interest is hitting a new record high. 

“The Futures Open Interest Leverage Ratio for BTC reached its highest level ever recorded at more than 3% of BTC market cap, following the market-wide collapse on August 26th.”\

“higher values suggest that open interest is large, relative to market size. This implies a higher risk of market squeezes, liquidation cascades or delivering events.”

The exact cause of these events is unknown, but it is held to be more certain that consistent downtrends in stocks may continue to hold down the Bitcoin price. CNBC data indicates the Dow closing the month with losses of 4.1% while the S&P 500 and Nasdaq closed at 4.2% and 4.6% respectively. 

Loretta Mester,  president of the Cleveland Federal  Reserve made a comment in which she highlighted that her expectations  for the benchmark interest rate will increase over 4%. She also said that the likelihood of any cuts through the year of 2023 is low. 

The Merge is one of the main vessels for bullish support from traders. Ethereum’s movements have been well received by the community, both in ETH staking opportunities as well as smart contract security standards.