Ethereum (ETH) is one of the top two cryptocurrencies on the market right now but, just as with bitcoin, it’s position at the top of the pile has far from insulated from the wider market’s decline seen over the last eight weeks or so.
With regards to ETH specifically, the token currently trades for a little over $810 apiece, down from the $1389 reached on January 15, 2018. That’s a 41% decrease from highs and it gives Ethereum a market cap right now of just shy of $79 billion.
Take a look at the mainstream news coverage of the cryptocurrency space right now and you will see the general treatment of Ethereum and its token ETH mimics that of many of the other coins in the space.
What this sort of blanket coverage overlooks, however, is that ETH is materially different from pretty much every other talk on the market right now and at least every one that is currently functional against its predefined use case.
What do we mean by this?
Well, for anybody not familiar with Ethereum, it’s a platform technology designed to serve as a protocol layer on which third parties can build decentralized applications (which are now being referred to as DApps for the main part).
As far as the actual token is concerned, ETH is used in a variety of ways but primarily to serve as what is called gas payment, which is another way of saying it’s the token that’s used to buy or rent computational power to underpin the functionality of the applications that are being built on Ethereum’s technology.
But not only that, ETHis also used as the number one exchange token for initial coin offerings (ICOs).
That is, when a company conducts an ICO, it creates a token that is ERC20 compliant, meaning simply that it can be stored in an Ethereum wallet. This allows it to form the basis of a smart contract which, when one while it receives ETH (i.e., when the wallet that serves as a collection wallet for an ICO receives funds), automatically distributes the ERC20 complaint token that’s associated with the company conducting the ICO to the wallet that initially sent the ETH.
The key point to recognize here is that ETH has a number of roles outside of those commonly associated with what we might deem a traditional cryptocurrency – value storage, transactions, etc.
It’s this role extension that resulted in Ethereum holding its value for two weeks longer than many of the major alternative coins ahead of the wider market correction in January (as mentioned above, ETH peaked on January 15, while the major altcoins peaked on January 4 and BTC peaked late December).
Additionally, it’s what limited (to a degree) the overarching decline in the market capitalization of ETH as the wider markets corrected. Many of the major coins declined between 60% to 80%, while Ethereum slipped 49% highs to lows.
It’s still not great, of course, and as far as traditional equities markets go, a cost 50% decline is a disaster, but in the cryptocurrency markets, and especially against the backdrop of the bloodbath we have seen across other points over the last few weeks, it’s a drop in the ocean.
So what comes next?
We think that ETH is on the up from here on out. Not only is the coin now subject to positive sentiment as bitcoin and its compatriots turn around, there still huge demand for it as a basis for the ever-expanding ICO market – the month that we see as central to this one holding its position as the number two coin (and perhaps outpacing bitcoin sooner or later) for the foreseeable future.
We will be updating our subscribers as soon as we know more. For the latest on ETH, sign up below!
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.
Image courtesy of Ethereum.
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…