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Ethereum continues to decouple from Bitcoin (but in a bad way)

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Ethereum Bitcoin

As the day continues, things are not looking good for the second largest cryptocurrency in the market. Ether, the silver of the pseudo gold represented by Bitcoin, has been experiencing dramatic changes in the last couple of months that even though have not been enough to move the coin to lower positions in the charts, still represent a huge change compared to the value that the crypto had back at the beginning of the year.

In this sense, it is worth to mention that according to CoinDesk the crypto has had a decrease of 90 percent compared to the value it had in January, and only today, we have seen a reduction of the 4.48% with respect to the last 24 hours, a fact that logically has many of us feeling concerned.

Ethereum has landed to the mark of $174 against the USD, and even though we are used to watching dramatics up and downs for the coins when it comes to being aligned with Bitcoin (BTC), Ether was not that apart.

However, the story is different this time, as even with the volatility of the sector Bitcoin is showing a decrease of 9% in the last 30 days, while Ether, on the other hand, shows an almost 30% of the decrease in the same period. So what’s exactly going on? As it seems, two major problems are affecting the coin. Let’s talk about them.

Ethereum’s co-founder comments on the future of blockchain

One of the things that may have been reflecting on the performance of Ether is the recent comments that Vitalik Buterin, co-founder of Ethereum, made in relation to the blockchain and what he conceives is going on right now.

Vitalik gave a declaration to Bloomberg News in which he states that the highly fruitful times for the crypto world are finally getting to an end.

He said:

“There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” so what we need to acknowledge is that “the blockchain space is getting to the point where there’s a ceiling in sight.”

Of course, as it was to be expected a declaration of this kind was not going to pass unnoticed by the community. The real question here is, how does a company expect to make their clients believe in their products while one of their most important members is preaching the end of the niche for that specific product?

The Ethereum co-founder went on to cover up his remarks but that hasn’t done any good yet though.

We can not be sure if whether or not these declarations are influencing the price, but for sure there are high chances that people are selling their Ether holdings because of this.

ICO’s are gone as well

Ethereum has been pretty much adopted because of the platform that it provides. In this sense, Ethereum has given the cryptocurrency world the opportunity to build projects on its network. So we can all agree with the fact that Ethereum is more of a store of value than another thing, is the big computer in which all of the projects are being created, or at least, a place where the project was being created.

During last year, Initial Coin Offerings (ICOs) had an incredible boom that benefitted Ether in a great measure. However, ICOs are not being deployed anymore, especially when the Securities and Exchange Commission (SEC) clarified that even when Ethereum is not a security itself, many of the projects built on their network had security features.

Regarding this, the CEO of CoinFi, Timothy Tam, expressed:

“Retail investors were completely euphoric a few months ago. Now, that emotion has flipped, and they’re panicking,” we can all be sure that “shorts are going to ride that wave.”

Furthermore, one of the reasons why the market is acting as such is because of the pressure that short-sellers are putting in.

In this sense, according to CoinFi’s team data from their platform shows how multi-million dollar bets are being made against ether’s all-time high, and this for sure is going to have a repercussion on the price. Do you think Ethereum will manage to survive the recent conditions? Will it get by side of Bitcoin when it comes to market resistance, again? We all wish to, but in the meantime, let’s stay tuned.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Currency Market

12 Peers Capital Markets Purchases DigitalBits XDB Token

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12 Peers Capital Markets , a broker-dealer and capital markets firm has announced its support for DigitalBits, a blockchain protocol focused on consumer digital assets such as loyalty points, rewards, and branded stablecoins.  The traditional market brokerage firm has purchased the DigitalBits XDB token, after recently announcing “a new found investment thesis focused on identifying blockchain projects that improve efficiencies across global markets,” it said in today’s announcement.

DigitalBits is an enterprise-grade blockchain protocol for supporting consumer digital assets, specifically branded currencies.  The company believes that branded currencies play an integral role in driving consumer behavior, but many of these programs are dated by today’s technological standards.  “These limitations have stifled value transfer, resulting in the accumulation of large amounts of idle capital – in 2017 US corporations held in excess of $100 billion in unused points liability,” the DigitalBits experts explain.  

The DigitalBits blockchain supports tokenization of existing and new consumer digital assets.  The XDB Foundation, which was formed earlier this year, is a neutral agnostic non-profit organization to enhance the DigitalBits blockchain and ecosystem, engage partnerships and building a robust ecosystem for users. Commenting on the 12 Peers Capital Market announcement, XDB Foundation’s Managing Director Michael Gord said that it is great to see traditional firms show interest in blockchain technology. …

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AllianceBlock Completes TGE, Lists ALBT Token on Uniswap

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Big day for the Dutch-based AllianceBlock project today. After more than two years in development, the stealth mode is finally off.  AllianceBlock announced its completion of the Token Generation Event (TGE) . The newly generated AllianceBlock token (ALBT) was also instantly available on Uniswap – an automated liquidity protocol that has been gaining traction recently. Unlike centralized and most decentralized exchanges that match buy and sell orders to determine prices and execute trades, Uniswap uses a simple math equation and token pools, plus ETH to execute trades.

AllianceBlock Uniswap
 

Just weeks ago AllianceBlock reported wrapping up its private sale, which was 1,200% oversubscribed and helped raise $0.5 million. The next step for AllianceBlock is coding the platform and expanding the ecosystem.  The team is gearing up for the mainnet launch, which is set for the second quarter of 2021. The AllianceBlock platform is based on the Prometheus Protocol, which is a multi-layered architecture designed to solve some of the biggest problems of the traditional finance (TradFi) industry while funneling potentially trillions of dollars of traditional capital into the DeFi industry, the company says.

AllianceBlock is raising the bar high – it is building a “globally compliant decentralized capital market” by utilizing a blend of several decentralized technologies. To help bridge traditional markets and DeFi, the company is focusing on three cornerstone issues — compliance, security, and user experience, which are…

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Could The Rise of Yearn Finance Harm the Long Term Viability of Bitcoin?

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Cryptocurrency

Even in the highly unpredictable world of crypto, 2020 has made for an exceptionally volatile year so far. 

The summer months have been punctuated the unprecedented rise of the decentralized finance (DeFi) movement followed by heavy falls across the cryptocurrency landscape. 

The jewel in the crown of DeFi, yearn.finance, was catapulted to values upwards of $38,300, and a market cap of over $1.1 billion just months after its launch. Backed by advanced and practical DeFi applications like smart contracts and blockchain-based insurance, DeFi tokens like YFI are supported by exciting and tangible technology.

Given their advanced frameworks, could this mean that the DeFi boom for yEarn and its counterparts will harm the long term viability of more speculative traditional cryptocurrencies like Bitcoin? Or could the world’s oldest and most famous cryptocurrency push back against the brave new world of decentralized finance?

Why Yearn.Finance is Different

YFI is certainly a cryptocurrency with a difference. Writing for Forbes, Joseph Young has attributed the rise of Yearn.Finance to four major components: a unique supply, an active community, a respected developer, and innovative products. 

Significantly, yearn.finance developer, Andrew Cronje, rebranded and relaunched yearn.finance with a suite of new and cutting-edge products. He also released YFI with no premine, a significantly limited supply of just 30,000 tokens, and no founder reward. 

These factors made the…

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