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Ethereum News Today – Headlines for January 24

  • Ether is the highest correlated digital asset – Binance Research
  • Tezos is the least correlated digital asset
  • BNB, XRP EOS, and LTC showed high correlation

Ethereum News Today – a new study has been conducted to determine the coin with the most market correlation. This research was conducted by the research arm of Binance. The new research determined that Ethereum’s Ether (ETH), the number two largest digital asset by market capitalization, is the token with the title of most correlated assets over the last year in the crypto space.

According to the report, ETH had an average correlation of about 0.69, out of an overall total of the top 20 leading cryptos the report based their research on. The report also notes that digital assets that have a correlation of about 0.5 are regarded as assets that have a strong positive association.

However, it determined that assets with a correlation of about -0.5 are regarded as having a strong negative association. Assets with a close-to-zero correlation indicate a lack of a linear relationship between more than one variable, and for this analysis, it implies the returns of two separate assets.”

A Positive Correlation Means When Two Assets Move in Sync

Essentially, a positive correlation can be defined as a situation where two digital assets tend to maintain the same direction in their movements. This means that when you invest in them you could be exposed to similar risks. On the other hand, a negative correlation is determined when a digital asset can be used as a hedge against the other crypto. Ether (ETH) is reportedly the highest correlated asset.

As stated above Ether had an average correlation that is a coefficient of 0.69 through the last year. The coin is consistently among the most correlated digital assets considering its appearance over the years. The coefficient began at 0.69 in Q1 before rising to about 0.72 in Q4.

BNB, XRP EOS, and LTC Showed High Correlation

Among the entire top 20 cryptocurrencies, the protocol known as Tezos (XTZ) was found to be the least correlated digital asset. Tezos claims this title having posted a median correlation that is a coefficient of 0.3. Generally, Blockchains that have smart contracts and dApps (decentralized applications) like NEO, EOS, and ETH all recorded higher correlation.

Meanwhile, the other cryptos that have shown a high correlation with the remainder of the market include BNB, XRP, LTC, ADA, and EOS. Other cryptos that posted a low correlation to the market include the likes of ATOM and LINK. All in all, the study notes the median correlation among the top cryptos dropped slightly in Q4 of last year.

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Ethereum

Sorare issues Ethereum based digital collectibles for Juventus

Juventus Football Club has entered into a partnership with Sorare. As a part of this alliance, the platform is planning to launch a series of digital collectibles of famous football players.

They have recently launched a digital asset representing famous football player Cristiano Ronaldo’s Ethereum card for their fan base. These are non-fungible tokens which are based on ERC-721 standard. These are traceable and tradable crypto-assets.

These cards will be divided into 3 categories:

  • Unique-only one unique card.
  • Rare- ten cards.
  • Super rare- one hundred cards.

Just like other digital assets, these assets can be used for competing fantasy leagues and can be traded in the open market.

Card owners can arrange digital soccer battles by creating five-member fantasy football teams. Sorare will arrange tournaments each week on its platform and the “managers” of these digital soccer groups can earn rewards by taking part in games.

According to a press release obtained by Cointelegraph, Sorare CEO Nicolas Julia said that:

“We are very proud to have signed this agreement with such an Italian heavyweight. We see this as a new key step in our vision to onboard the best soccer clubs from around the world and bring blockchain-gaming to football fans around the world.”

Sorare, is a leading blockchain-based gaming platform. It offers users to collect and play with official football crypto goods. This Paris-based company is also in partnerships with Europe’s football giants such as AS Roma, Schalke, West Ham United, Napoli among others.

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A Severe Ethereum (ETH) Correction is Expected by Traders After 125% Rally: Here’s Why

Ethereum (ETH) has front run bitcoin throughout the past 42 days. As the bitcoin price surged by around 50 percent against the USD, ETH recorded a 125 percent rally. The explosive upsurge of ETH may be coming to an end traders warn, if BTC begins to correct.

Ethereum has been a more volatile version of bitcoin during the recent rally

During a bull cycle, major alternative cryptocurrencies (altcoins) tend to precede bitcoin with strong upward momentum.

It took less than two months for Ethereum to recover from around $120 to $280, demonstrating a vertical price movement for the first time since June 2019.

Altcoins tend to outperform bitcoin amidst an ongoing rally, but during consolidation, most altcoins are at the mercy of bitcoin.

In the past two months, for instance, bitcoin has seen an extended rally with minor pullbacks, establishing solid support levels as basis for a stronger upside movement.

In contrast, altcoins like Ethereum spiked up by 80 to 130 percent with little to no pullback, leaving it vulnerable to a steep pullback.

DonAlt, a renowned cryptocurrency trader, said on a livestream that if the bitcoin price begins to pull back to the $7,000s, the altcoin market is highly likely to experience a steep correction.

Ethereum has been one of the best performing cryptocurrencies year-to-date and as such, DonAlt emphasized that the chart of ETH at larger time frames are showing strength compared to other cryptocurrencies.

Still, if the weekly candle of bitcoin closes below a key support level at $9,550, the trader noted that the market could start to correct from its recent upsurge.

The monthly chart of bitcoin also indicates it is vulnerable to seeing an evening star formation, which typically indicates a local top.

Cryptodonalt

Source: Twitter

Some traders believe ETH is preventing the market from a large crash

Major altcoins including XRP, EOS, and Cardano (ADA) have already shown rejection at larger time frames, especially at a weekly level.

Ethereum is the only top cryptocurrency in the market to have maintained a green weekly candle, two days before close on February 24.

One trader known as Mac said “ETH is currently keeping BTC alive and will probably keep it alive for awhile,” alluding to the fact that Ethereum has provided the cryptocurrency market with momentum in the last two weeks.

The breakdown of ETH followed by a pullback of bitcoin below $9,500 and potentially in the low $9,000 region could spell a local top in the cryptocurrency market for the foreseeable future.

The total capitalization of the cryptocurrency market also showed rejection at $300 billion, struggling to rebound above August 2019 levels.

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Ethereum News Today – Headlines for February 22

  • Ethereum ProgPow update set to go live on July 2020
  • ASIC may pose a threat to the Ethereum network
  • The ProgPow hard fork will bring changes to Ethereum

Ethereum News Today – according to reports, the Ethereum ProgPow update has been scheduled to launch in July this year as Ethereum’s core developers conclude preparations to make the digital asset more ASIC resistant. Ether’s core developers have reportedly reached an agreement to implement the ProgPow hard fork following the EIP-1962 upgrades which are scheduled for June 2020.

The EIP-1962 update is set to add some minor features to Ethereum’s cryptographic functions. The network’s core developers have reportedly been promoting this ProgPow hard fork vigorously. This is because are solidly behind the improvements that this initiative brings to Ether. Some developers have expressed concern as there are fears that the hard fork could split the Ethereum community.

The Update is a Cause for Concern for Some

The contentious update has been a cause for concern regarding crypto exchanges running different versions of Ether all comprising of the old and new mining models which can mean a new fork for Ethereum. The exchanges can also increase their fee and the Ethereum community might inevitably split. Now that a consensus has been reached its implementation will be a reality.

James Hancock, Ethereum’s hard fork coordinator, said there wouldn’t be any split in the Ether community because the hard fork is reportedly the ‘read-to-go’. Note that Ethereum split occurred some time ago when DAO (decentralized autonomous organization) split and took about three and a half million ETH tokens. The parties affected were refunded by developers, and dissenters launched Ethereum Classic as tagged the move a developer overreach.

Despite minor dissent to Ethereum’s ProgPow hard fork, the bulk of core developers working on the project have shown support for the update. The discussions brought to the fore fissures in the developer Blockchain, as many influential developers showed their contrarian viewpoints. All in all, the meetings were elaborate.

How Does ASICs Pose a Threat to Ether?

Ethereum has resisted ASIC mining since it began. It was always more favorable for the Ether community to distribute coin via simple computer hardware. This invoked more community participation and even helped to decentralize the efforts of the ETH token. When Bitmain launched its Ethereum ASIC in 2018, it was regarded as an attack on the Ethereum community. Eventually, other manufacturers followed and launched similar products.

Another development was staking which was also in the works and would have rendered any future updates unnecessary. To date, resistance to ASIC has reportedly been successful because developers are keen to keep the platform as transparent as possible.

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