At the moment of writing this, the crypto markets are experiencing the usual decline as we transition from the weekend into the week. The weekends are historically known for low trade volume, therefore, it was a surprise when Ethereum (ETH) managed to dig itself out of a hole from its Wednesday levels of $171. The weekend should have caused ETH to fall further. But it survived the weekend only to start declining yesterday, Monday the 17th of September.
The King of Smart contracts is currently valued at $199 and looks once again to retest more levels below $200 with the additional FUD that ICOs were cashing out on their funds due to a bear market. The latter rumor might be true but the ICOs cannot be blamed for wanting to pay employee salaries, pay operation costs and even perhaps buy some office coffee. These are the regular costs of running a startup. As a matter of fact, Ethereum should be thriving if they are paying for their expenses using the digital asset. Many employees in the crypto-space actually prefer being paid in crypto.
But we are digressing. The first evidence that the Ethereum crash might continue is the fact that it has lost all the massive gains it had achieved last week and leading into the weekend. At one time, we all thought $250 was a possibility.
There could be hope around the corner for its network congestion issues might be a thing of the past with the first demonstration of sharding in Berlin this past week. Sharding is a concept of dividing the processing of transactions amongst shards or groups of nodes in the blockchain network. This then means that a transaction need not be validated by the entire network to process thus increasing the throughput of the Ethereum network.
Vlad Zamfir, the Ethereum core developer who demonstrated sharding on the network at the EthBerlin event last week, had this to say about the development:
We’re still working on the integration but check back in a week and it should be something where we have instructions and you can follow the instructions and get it running on your computer.
Why Is Sharding Important
We need to remember that the chief reason many traders were shorting Ethereum in the markets and expecting it to fall, is the fact that it is slowly being eclipsed by faster networks such as those of EOS, Tron and Zilliqa. The reported transactions per second (tps) – or throughput – of these networks are as follows:
- EOS – 3,000 tps
- Tron – 2,000 tps
- Zilliqa – 2,828 tps with 6 shards
- ETH – 25 tps
Ethereum is clearly lagging behind. And with more and more DApps being created for the finance and gaming industry, we get to understand why faster transaction time is relevant. With sharding on Ethereum, HODLers and traders can once again reignite their bullish sentiments about ETH.
Another reason why the Ethereum crash will likely continue is the fact that the recent comments by many crypto-experts who confidently stated that the recent decline of Bitcoin to $6,200, was the final one before a total market recovery, might just be wrong. One such analyst and expert is the ex-fund manager and Billionaire investor, Michael Novogratz, who had this to say in a September 13th tweet:
I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout..we retraced the whole of the bubble.
Looking at the charts once again, BTC is currently valued at $6,290 and looks ready to sink some more as we approach the September 30th SEC deadline for the CBOE sponsored Bitcoin ETF. If history is to go by, the chances of the SEC approving it are slim and we could be headed for tough times that will include Ethereum dropping some more in the markets.
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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. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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TRON Partnership Involves Cloud Computing
It has been almost an entire week since Justin Sun, the founder of TRON (TRX), announced a new big partnership for this cryptocurrency. His Twitter announcement did not provide a lot of information, except for the fact that the TRON partnership is with an industry giant worth tens of billions of dollars.
— Justin Sun (@justinsuntron) October 12, 2018
Even so, the entire crypto community started speculating about the new partner’s identity. Soon after the announcement, a new rumor emerged, claiming that the identity of an unnamed corporation was uncovered. According to the rumor, TRON’s new partner is none other than Baidu, one of the largest tech giants of China, which also represents this country’s largest internet search provider.
Baidu is often viewed as China’s version of Google, and if the rumors of a partnership with this company turn out to be true, this will be a big game-changer for TRON.
However, in days following the announcement, new reports started coming in with claims that the partnership will not revolve around blockchain technology. Instead, ODaily reported that the alleged partnership between TRON and Baidu will be focused on cloud computing. The report claims that TRON will be purchasing computing resources from Baidu.
Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?
Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.
It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.
The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.
China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.
Furthermore, the country has adopted several…
Ravencoin (RVN) Surges Following Binance Listing
While most cryptocurrencies today still remain unstable and at the edge of falling into the red, there are some coins that are doing significantly better. One such coin is Ravencoin (RVN), which has surged by over 26% in the last 24 hours.
Ravencoin came to be as a hard fork of Bitcoin and was inspired by a popular book series-turned-television programme, Game of Thrones. The coin’s developers decided to make Ravencoin an open-source project that provides users with the ability to declare assets on their platform. The platform itself is decentralized, transparent, and secure.
Just as Game of Thrones’ ravens are used for spreading the news and truth, Ravencoin hopes to become a carrier of truth regarding the ownership of assets on the blockchain.
Ravencoin’s main use case is for performing P2P transfers, while it prioritizes security, autonomy, user privacy, and control. Additionally, as a coin fighting for truth and transparency, it also stands against censorship.
Ravencoin got listed on Binance prior to MainNet launch
Following the last week’s announcement that Ravencoin is getting officially listed on Binance, the world’s largest cryptocurrency exchange ba trading volume, Ravencoin experienced a large price surge. At one point, the surge took the coin’s value up by over 31%. At the time of writing, however, the coin is still growing, with an increase of 26.15% in the last 24 hours.
Getting listed on Binance has brought Ravencoin to the top…
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