ETC is trying to attain some visibility from Berlin for the first time. But are they going to succeed with the same? Maybe today’s analysis will help in understanding if the valuation has improved because of the same.
Current Statistics of Ethereum Classic:
- Market Ranking: 18
- Return on Investment: 703.20%
- Total supply/ Circulating Supply: 112,882,800 ETC/ 112,882,800 ETC
- 24 Hour Volume: 833,460,288 USD
- Market Cap Value: 682,131,813 USD
- 7 Day high/ low: 6.38 USD/ 5.37 USD
ETC to USD Price Comparison:
Yesterday, the value was initially seen at $6.359 at 03:33 UTC. The value then dropped by 7.24% at 16:07 UTC when the value dropped to $5.899. The value was seen escalating from there by 5.24% today at 01:05 UTC with the trading value changed to $6.205. The value from then is dropped to 2.39% as of now.
ETC Price Prediction and Conclusion:
Users might have to hold on to their position for a while to boost some returns in the ETC network. Touch down to $10 might be visible by the end of the year. But well, it will be worth watching! You might want to hide your returns as of now to enjoy the greater profits in the future. Meanwhile, the resistance support level may assist you with intrastate trade decisions:
R1: 6.38, R2: 6.62, R3: 6.87
S1: 5.89, S2: 5.64, S3: 5.4
We should not overlook that Ethereum Classic is known to be a compelling coin (after Bitcoin, obviously) in the realm of digital currency. In any case, ETC may walk consistently; however, it appears that it may increase your interests in the coming years.
Ethereum may scale to be a trillion-dollar market, if Defi remains relevant
A new investor entering the digital asset market right now, without any prior information of the industry, may potentially be inclined towards Ethereum. The second-largest crypto-asset has risen by 106.44 percent in 2020, outshining the likes of Bitcoin and the rest. Although the price has been slightly bearish over the past two weeks, the overall sentiment remains positive.
Source: ETH/USD on Trading View
With bullish trends come bullish speculations. Recently, Nick Cannon, Founder of EthereumPrice.org, discussed Ethereum’s long-term transition from a billion-dollar market industry to $1 trillion.
Cannon used the term ‘economic bandwidth’ in the context of Ethereum’s capacity to support DeFi applications. Pinning the growth of DeFi‘s long-term success, Cannon explained that Ethereum’s current lending process required a ‘collateralization ratio’ of 150 percent; meaning, if Ethereum’s current market cap of roughly $30 billion is taken into consideration, the network will allow a loan of maximum of $20 billion USD if every ETH unit is used.
However, at press time, the amount of ETH used in collateralized loans and other financial applications was around $2.8 million, which is slightly under 2 percent of the total 109 million ETH in circulation.
Assuming the total number of ETH will not cross 120 million (in accordance with Ethereum’s expected supply inflation rate), Cannon believes that about 10 percent of the total ETH supply will provide the economic bandwidth for the $1 trillion derivatives market. The catch arrives where according to calculation, each of those 12 million ETH units would need to be valued at $80,000.
Such a steep rise in valuation may turn the most optimistic person a little skeptical as well. However, Cannon admitted,
“There is a lot that needs to happen for Ethereum finance to grow from $1 billion to $1 trillion, a scaled-back version of this outlook is still difficult to reconcile to today’s valuation.”
Besides the assumption being a little over-bullish, it is important to consider the fact that DeFi is not a sure-shot lending protocol as of yet.
The latest bZx attacks turned a lot of heads in the industry as over $1.2 million worth of ETH was stolen over two meticulously thought-out plans. Although Cannon believes such attacks will continue to some degree, it is still a major issue that needs to be taken into consideration, before pinning all hopes on Ethereum’s DeFi protocol.
From a bullish perspective, Cannon’s high hopes on ETH crossing $5000 by the end of 2020 would need a lot of things to go right for Ethereum. However, certain investors have already pinned their hopes on a rise.
According to the chart attached above, 400 ETH options contracts were currently placed which predicted the price to go above $800 by the end of September, before the contract expires on the 25th. That is approximately 103K worth of assets, a significant amount in any investment medium.
Ethereum Price Prediction: ETH/USD Heads Towards Recovery To Reclaim $289
Up 100% since the beginning of the year, the Ethereum price is set to resume its northerly progress.
The smart contract platform continues to cement its position as the go-to platform for decentralised finance (DeFi), and that looks to be helping it widen its influence across the crypto space.
News that Ripple is planning to develop interoperability technology for XRP and Ethereum is the latest evidence of this. Ripple’s development arm Xpring will be leading the efforts, as well as looking to work on other crypto asset interoperability candidates.
But it is not just in DeFi that dapps running on Ethereum’s platform are making headway.
Two projects go live on the Ethereum blockchain
Gaming development project Enjin has flicked the switch on its platform that will allow devs to integrate assets into their games.
The ERC-1155 token that Enjin created allows devs to build smart contracts that make use of non-fungible tokens (NFT) and fungible one in their games. NFT is critical for in-game assets such as skins and weapons, where trading of unique assets is a growing part of gaming.
Virtual world Decentraland (MANA) is also now live on the Ethereum blockchain after two years of development. The project has built up a community of 100,000 members in that time and like Enjin (ENJ) also makes use of NFTs for game items. Players can buy LAND with the MANA token upon which they build their worlds.
The increased activity on the network is also reflected in the steadily rising hash rate since the beginning of this year.
ETH watchers are also encouraged by positive briefings on Ethereum 2.0 progress. Andrew Keys, co-founder of ConsenSys, said that the upgrade to proof-of-stake could happen this year. Reportedly there has been 100% take-up on the testnet, launched at the start of the year.
Meanwhile, Ethereum co-founder Vitalik Buterin has provided more detail on the phased release and the scalability, sharding and privacy features that will be at the heart of Ethereum 2.0.
ETHUSD Technical analysis
Although ETHUSD has suffered from the downdraft triggered by bitcoin’s latest reversal from above $10,000, it has come back to life today.
ETH continues to rise in strength against bitcoin, up 58% since 14 January (see chart below). It is currently maintaining a print above crucial support at 0.026.
ETH was trading 3% higher (when the chart snapshot below was taken) over the past 24 hours according to coinmarketcap, as bulls look to recover lost ground.
Strong support at $250 – the 0.382 Fibonacci retracement level (i.e. 38% retracement from high)– was tested on 17 February leading to a recovery to 286 before 19 February bitcoin-induced fall back to form a slightly higher low near the 250 support to currently nudge resistance at $265.
A breakthrough the 0.236 Fib ($266) should see momentum pick up, with the MACD set to cross its signal line, confirmed by a rising relative strength index (51) on the 4-hour chart (see below).
Conversely a drop from here turns support into resistance at $265, as also seen in the volume profile (VP) in the chart below. VP shows buyers and sellers evenly split at these prices, with the point of control defining the area of highest trading interest at $267, the current resistance region.
ETHUSD price target
A price target of $289 to be achieved by the beginning of next week, taking ETHUSD back to the year-to-date high, is reasonable.
However, that target is conditional on holding above the 0.236 Fib ($265), a level that has just been breached to the downside.
At the time of writing ETH has slipped to $260 on Coinbase, but is still up 2.2% in the past 24 hours.
Nevertheless, the ETH price is currently hovering above the Ichimoku cloud (shaded green in Fib chart) which is also a useful indicator of bullish buoyancy in support of the $289 target.
Ethereum’s DeFi marks new ATH as TVL edges closer to a billion
The cryptocurrency market has been witnessing a rise in the price of most crypto-assets. Led by Bitcoin, most major cryptos were a part of this bullish wave. Ethereum, the world’s second-largest coin reported YTD gains of around 57%, outperforming BTC’s gains of 35%. With the price of digital assets climbing, DeFi also managed to mark a new milestone.
According to data provided by DeFi Pulse, the total value locked [USD] in DeFi was reported to be $970.3 million.
Source: DeFi Pulse
Whereas, Ethereum locked in DeFi noted a decline in February.
Source: DeFi Pulse
Maker dominated lending with the value locked-in reaching as high as $573.6 million, recording a 7% rise over the day. Compound took the number two position due to the vast difference in the locked-in value but reported an 8% surge in a day. Despite the tremendous growth of DeFi, Udi Wertheimer, an independent developer and coder, remains a skeptic as he believes that DeFi applications do not offer an advantage over traditional Bitcoin exchanges.
Wertheimer was a guest on ‘The Blockchain Debate’ podcast wherein he debated for the motion ‘DeFi is DeFicient.’ Wertheimer pointed out the vagueness in defining DeFi or decentralized Finance, with the coder highlighting that by the current understanding of DeFi, Bitcoin could be a DeFi in itself. He added,
“If it is, then what about USDT/Tether? Is that also DeFi? Is USDC also DeFi? So it’s hard to tell.”
In a tweet thread, Wertheimer had asserted that the Bitcoin exchanges offered “services like lending, leverage, synthetics, etc. with identical security properties” and that there is no upside to using DeFi instead. Despite existing arbitrage opportunities on DeFi, the volume has been low and according to the coder, it may not be able to go far.