At the height of the cryptocurrency boom of last December into January this year, two things happened to Ethereum (ETH). Firstly, it was the preferred coin for funding ICOs. The second is that as a result, its demand skyrocketed to peak levels of $1,400 aided by the general crypto bull run of that period. Now the ICOs that were funded during this peak period, have seen their holdings diminish in value as ETH is now valued at $322. This is a drop in value of 77%. Imagine if an ICO had raised $10 Million in ETH back then, that value is now valued at $2.3 Million and could bring challenges in funding the project.
Also worth analyzing, is ETH’s recent weakness after the SEC decided to delay their verdict on the Bitcoin ETF up until the 30th of September. We saw ETH reach new lows of $309 with some predicting that the fall might continue to the upper $200 levels.
It is with this worrying trend that perhaps Ethereum might be slowly becoming obsolete in a fast-paced crypto and blockchain ecosystem. The platform still has scalability issues as well as security vulnerabilities with the smart contracts created on it. As the Ethereum Foundation looks for solutions, other blockchain projects are presenting themselves from all directions and having already solved some of the Ethereum platform issues.
First on the list is the Tron (TRX) project that can handle 80 times more transactions per second than the Ethereum platform. As a matter of fact, the newly released TRON network is doing 308,754 transactions per day, compared to 641,927 Ethereum’s transactions per day, and at the moment of writing this. This means that the TRON network is halfway towards eclipsing Ethereum’s daily transactions, and its Mainnet is hardly 2 months old.
Also, the Tron network uses bandwidth rather than gas. Therefore, transactions on the Tron network are virtually free. More users are sure to flock to the Tron network for the cheap transactions.
Other potential threats to Ethereums’ dominance of smart contracts are Cardano (ADA), Zilliqa (ZIL) and IOSToken (IOST). All these projects have showcased that they can increase the transactions per second (throughput) and make smart contracts on their platform more secure than those on the Ethereum Platform.
Therefore, Ethereum might be headed for further decline before it can be dominant again. The resurgence of Ethereum will be dependant on whether they implement the scalability solutions that have been recommended for the platform. Otherwise, ETH will be the choice currency by traders who simply want to short it.
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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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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
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