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Cryptocurrency

Why Ethereum is unlikely to drop below $1,500 anytime soon

Ethereum reserve in all Crypto exchanges hit a two-year low.

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Number of contract calls on Ethereum rises by 300%

Investors remain relatively bullish on Ethereum, as lately, they have been eager to acquire Ether at above the $1,500 mark.

Ethereum has had sustained outflows over the last 3 weeks and now we have more than 3.5 million Ethereum staked in 2.0. The exchange reserve on Ethereum is declining constantly. This reflects accumulation and confidence in the market.

Ethereum reserve in all exchanges hit the two-year low.

READ: Ethereum, second most valuable cryptocurrency, surges over 88% since March

However, at the time of drafting this report, a significant amount of profit taking was observed, as the utility crypto traded at $1,776.17 with a daily trading volume of $25.4 billion and is down 3.38% for the day.

It’s also critical to note that miners remain more attracted to Ethereum as they earn almost four times more than those in the Bitcoin network. Ethereum’s fees which amount to the total dollar value spent on the Ethereum blockchain — are at record levels, with over $8 billion in annualized fees.

READ: Morgan Stanley becomes first major U.S Bank offering clients Bitcoin

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Sigma Pensions

While Bitcoin, the world’s most popular Crypto asset, annualized fees are currently around $2.3 billion. This contrast highlights Ether’s growing utility and the reason why it is often referred to as digital fuel.

  • The odds have been on the utility crypto’s side since its recent upgrade, Ethereum 2.0 (a network that promises better functionality and experience to the Ethereum network).
  • Unique features of the notable upgrades include a shift from Proof of Stake (PoS) to Proof of work, a new blockchain referred to as the beacon chain that provides better scalability. All of this and more is expected to be phased in through a carefully planned roadmap.

Through the implementation of efficiency, enhancements, scalability, and speed, the Ethereum network becomes better without compromising its decentralization and security.

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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    Cryptocurrency

    Ripple’s CTO advises investors to reduce their crypto investments

    The crypto leader recently made the warning on Twitter.

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    on

    XRP

    David Schwartz, Ripple’s Chief Technology Officer has advised investors and crypto traders to consider offloading some amounts of their crypto holdings to reduce risk. The crypto leader recently made the warning on Twitter.

    “This is probably going to be my least popular tweet ever, but: If you have life-changing amounts of cryptocurrency, please take some time to seriously consider selling some to reduce your risk and exposure. This is not any kind of prediction about what the market will do,” his tweet stated.

    READ: Billionaire investors in Nigeria you may not know

    To lend credence to his advice, about $1.39 billion dollars were liquidated in the crypto market arbitrarily with about 240,759 traders liquidated.

    The largest single liquidation order happened on Huobi-XRP valued at $11.69 million.

    Despite the recent pullback in some trending crypto assets, some crypto traders remain upbeat that crypto assets are the best tools for hedging against rising inflation, offer better returns than many traditional assets, and are set to win more attention from the corporate world.

    READ: US moves against misuse of cryptocurrencies, to employ new financial technologies

    Sigma Pensions

    Many weeks ago, the Financial Conduct Authority, a leading United Kingdom financial regulator, issued a piece of stern advice on the risk associated with trading crypto assets.

    The statement highlighted the risks associated with investing in Bitcoin and other crypto-assets and warned the public that there were high chances that all their funds could be lost.

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    READ: List of unpopular Cryptos likely to outperform

    “The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.

    Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” said the FCA.

    Stanbic 728 x 90

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    Cryptocurrency

    Coinbase success: Rapper Nas among early investors, set to make over $100 million

    Nasir Jones is amongst the earliest investors in Coinbase via his Queensbridge Venture.

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    The trending news in the cryptoverse is the successful direct listing of Coinbase on the NASDAQ, which happened on Wednesday, 14th April 2021. So far, the returns are looking very good for early investors in the crypto trading company.

    According to CNBC, Coinbase closed its first day in NASDAQ at a value of $328.28 per share and a valuation of $85.8 billion. During the course of the day, Coinbase valuation exceeded $100bn but later dropped to $85.8bn.

    READ: Coinbase executes over $1 billion Crypto trades for world’s biggest clients

    Rapper Nas and QueensBridge Venture Partners

    Legendary rapper, Nasir Jones who owns and runs Queensbridge Venture Partners together with its Co-Founder Anthony Saleh were amongst the earliest investors in Coinbase.

    QueensBridge Venture Partners invested in Coinbase as early as 2013 in a Series B round back when it raised $25 million. Around that time, Coinbase was valued at about $143 million. According to QueensBridge Co-Founder, the venture capital firm made an investment of $100,000 to $500,000.

    READ: Coinbase makes debut on Nasdaq as Bitcoin, Ethereum XRP post all-time highs

    Calculated ROI 

    According to Coindesk, at the time of Nas’ investment, a single unit of Coinbase share sold for $1.00676. With an investment of $100,000 to $500,000 QueensBridge stands to own 99,329 to 496,642 unit shares.

    With Coinbase trading at an average price of $350 yesterday, Nas and his VC firm stand to earn between $34.76 million and $173.8 million ROI, according to Coindesk. The number can be a lot higher given that this is just Coinbase’s first day on NASDAQ and some experts expect its price to increase.

    Sigma Pensions

    READ: Google founders earn $42 billion in 100 days

    Happy Nas

    Nas celebrated his smart investment with a tweet eulogizing cryptocurrency. His VC firm also invested in Robinhood and Dropbox.

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    What you should know 

    • Coinbase was listed directly. This is quite different from an initial public offering (IPO). According to Investopedia the difference between an IPO and a direct listing process is the presence and absence of new shares.
    • In an IPO, the company involved creates new shares and employs underwriters before going public.
    • In a direct listing only existing or outstanding shares are made public. Companies that pursue this strategy usually don’t employ underwriters.

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