The Ethereum crash looks far from over. A few days ago, Ethereum crashed to a new milestone when it dipped to levels below the much dreaded $200 value. Every crypto enthusiast was confident that the King of Smart contracts would continue to hold its own and possibly recover to levels around $400. But that has not come to be as the crypto markets are still stagnant at levels of a total market capitalization of $195.4 Billion and at the moment of writing this, ETH is somewhat stable at $192.
As a result, Bitcoin (BTC) has even increased its dominance to 56% as I write. On the other hand, Ethereum’s dominance is currently at 10% after dropping by a few points for its usual dominance in the markets of between 14 and 18%.
Why Ethereum’s Crash is not Over
To begin with, the rumors that the ICOs from last year are selling the Ethereum they raised is valid. Looking at the EOS project, the team managed to sell off all their Ethereum before they launched their mainnet on the 2nd of June. Further checking the crypto markets, we find that ETH was relatively well priced at around $600 back then. Using this price as a reference, the digital asset had dropped an astounding 57% from its all-time high of $1,400. Therefore, the EOS team was justified in cashing out before it dipped further.
It is with this background that the probability is high for more ETH to be sold in the markets by ICOs still holding bags of it. Common trading sense indicates that when a digital asset is spiraling out of control in the markets, the best option is to opt for BTC or the controversial Tether (USDT) to hedge against further losses.
The number of ICOs still holding ETH are still significant enough to cause a further decline of the digital asset if they decided to systematically trade it for Bitcoin or any of the other stabler digital assets such as Stellar (XLM).
Secondly, and even without the ICOs selling their Ethereum, the crypto markets are in a very fragile state. The bear market that was kick-started by regulatory fears from South Korea and China back in February has shown no signs of abating even with proof positive evidence of institutional investors getting into crypto investing.
Wall Street even has plans of offering Ethereum futures contracts before the end of the year. This should have led to a positive knee-jerk reaction for Ethereum in the markets.
The mood and feel are that we are headed for tougher times this September, especially with the pending SEC decision on the CBOE sponsored ETF on the 30th of September. Global Coin Report had advised in an earlier post that traders tread carefully between now and the D-Day that is September 30th.
What can Save Ethereum?
The answer to this question is simple. The markets need to turn around before it gets worse for Ethereum. Crypto traders and the institutional investors need to start buying and pushing for the massive adoption of cryptocurrencies for day to day commerce such as paying for coffee. That is the only way that demand for all digital assets will go up, thus causing a ripple effect that will raise the price of ETH.
A second option would be for the Ethereum core developers to solve the scalability issues on the network to enable for faster transaction speeds as well as cheaper transactions. This then will prevent DApp creators and users from moving to more efficient platforms such as Tron (TRX) and Zilliqa. The network congestion on Ethereum is the sole reason savvy investors continue to short ETH in the markets.
In conclusion, the short-term future for Ethereum in the crypto markets looks a bit bleak in the current bear market coupled with the possibility of ICOs deciding to sell all their ETH before it is too late. That said, it might be time for ETH HODLers to reconsider their investment strategy moving forward as the Ethereum crash looks far from over.
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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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XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Should Crypto Projects Devote Resources to Community Growth and Marketing?
2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for. While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory. When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion. But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.
I mention both of the above projects as they have each taken slightly different paths to achieve greatness. Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion. Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special. Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.
Cryptocurrency vs. Blockchain Technology
It’s important to make a distinction between blockchain technology and cryptocurrency. Although they are often used interchangeably, they are different. Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…
XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.
As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021.
“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.
He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”
Mr. Yamagata has been…