Value transfers on ethereum network eclipse ether's share
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Ethereum’s economy is now dominated by the stablecoin value transfer, an incredible feat, according to Ryan Watkins, research analyst at Messari.
Essentially, ethereum is being outshone by ERC-20 backed stablecoins on its own network. The flip occurred in mid-2019 on a weekly basis and has remained valid ever since.
Ether's trailing 12 month transfer volume fell from approximately $430 billion to $150 billion in 2019. Stablecoins' volume also followed ether's downtrend until mid-2019 after which it began rising.
Tether (USDT) volumes rose sharply after Tether Ltd began migrating tokens to ethereum in April 2019. Alongside (USDT), MakerDAO's DAI also gained ground, according to research by Joel John, an analyst at Outlier Ventures.
The ethereum network allows for numerous tokens to operate within its ecosystem amid the backdrop of interoperability, enabling seamless transactions between multiple parties.
It's worth noting that users need to pay fees to miners for successfully conducting a transaction or executing a contract on the Ethereum blockchain platform. That fee is referred to as "gas", whose price is determined by miners.
Users need to have ether in order to pay gas. So, a rise in the stablecoin volume on the ethereum blockchain is not necessarily a negative development for ether. |
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Bullish Consolidation
BTC: Price: $9,350 | Market cap: $170 billion | 24-Hr Volume: $28 billion
Trend: Bullish Bitcoin's price rally has stalled in the last 24 hours with upside repeatedly capped around $9,400. The ongoing price congestion, however, does not imply bullish exhaustion.
After all, buyers successfully defended the former resistance-turned-support at $9,188 by absorbing selling pressure around that level during the Asian trading hours.
If anything, the breakout above $9,188 (Jan. 14 high) confirmed on Wednesday has been reinforced.
As a result, the sideways channel seen on the hourly chart is likely to be breached on the higher side. That will likely make the way for a test of higher resistance levels at $9,600 and $10,000, as suggested by the bullish setup on the daily and weekly charts.
Should the range be breached to the downside, a deeper pullback to the 200-day average at $8,900 may be seen.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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