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Here Are 10 Signs That Ethereum Will Shatter $10,000, According to VC Investor Spencer Noon

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Venture capitalist and crypto veteran Spencer Noon is offering 10 signs that Ethereum is on its way to a $10,000 price tag.

In a new tweetstorm, Noon starts by noting that Ethereum by far generates the most revenue from network fees out of any blockchain, indicating massive demand for the world’s second-largest crypto by market cap.

Secondly, the former chief of crypto-focused investment fund DTC Capital points out that the Ethereum network settles 12 times more value than payments giant PayPal and almost twice as much as Bitcoin.

“Ethereum settles $30.5 billion worth of value per day, far more than Bitcoin and every other blockchain – to put this into context, PayPal settles ~$2.5 billion daily.” 

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Source: Spencer Noon/Twitter

Noon’s third sign of Ethereum’s journey to $10,000 is the fact that active wallets are on a steady climb upwards, breaking all-time highs (ATH) almost on a weekly basis.

“Ethereum has 625,000 daily active addresses (90-day MA) – a figure that continues to climb and now sits comfortably at ATHs.”

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Source: Spencer Noon/Twitter

Sign number four is that the decentralized finance (DeFi) space, which heavily relies on the Ethereum network, now has over $65 billion worth of value locked up, indicating that Ethereum is “institutional-grade financial technology.”

Noon’s fifth sign of Ethereum’s continued growth is the increasing supply of stablecoins living on the network.

“Ethereum has $50 billion in outstanding stablecoin supply, with 500,000 daily unique senders and $20 billion in value being exchanged per day – a sign of explosive product-market fit.”

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The crypto investor says that another important indicator for Ethereum is that decentralized exchanges (DEXs) existing on the Ethereum network are starting to rival traditional centralized exchanges in terms of volume.

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Source: Spencer Noon/Dune Analytics/Twitter

The seventh indicator is that Bitcoin-backed Ethereum tokens like Wrapped Bitcoin (WBTC) and pBTC are also growing in popularity at a rapid pace. Noon says the phenomenon is “a sign that ETH is becoming an economic vacuum for all assets, including Bitcoin.”

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Source: Spencer Noon/Dune Analytics/Twitter

Sign number eight for Noon is the red-hot non-fungible tokens (NFTs) sector exploding on the Ethereum network. NFTs are blockchain-based tokens with properties that make them verifiably unique. The NFT space has exploded in recent months, and most of the projects rely on the Ethereum blockchain.

“Sales of NFTs on Ethereum have now surpassed ~$600 million, with 13 pieces selling for $1 million+ each – a sign that new categories of applications are also emerging on ETH.”

The ninth sign that ETH is en route to $10,000, according to Noon, has to do with the Ethereum-based Polygon network. Polygon (MATIC) allows developers to build interoperable blockchains on top of the Ethereum network, and Noon notes just how quickly it’s taking off.

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“Polygon is currently doing ~1 million daily transactions and has onboarded numerous DeFi blue chip projects, including Aave, which has >$2 billion in liquidity there – disproving the ‘Ethereum can’t scale’ narrative.”

Noon says the 10th sign that Ethereum is about to shatter $10,000 is the upcoming EIP 1559 update, which overhauls ETH’s fee market. The investor says the highly-anticipated update is bullish for ETH on multiple levels.

“Finally, in less than 3 months(!), the EIP-1559 upgrade will be activated, likely resulting in hundreds of millions worth of ETH being burned each year – this is a massive catalyst for ETH value capture and its overall fundamental investment case.”

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Source: Spencer Noon/Bankless/Twitter

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Ethereum

Bullish? Only 16% of ETH Is Currently Sitting on Exchanges

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As investors continue to withdraw their ETH holdings off exchanges, the price of the token has surged by 800% in a year.

The overall demand for ETH continues to increase with new on-chain data suggesting that the total supply held on exchanges has declined by approximately one-third in the past year alone. As such, less than 20% of all ETH in existence is currently sitting on trading platforms.

Investors Withdraw ETH Tokens

It’s safe to say that the Ethereum blockchain is arguably the most utilized network in the cryptocurrency space. After all, it’s the home of numerous projects from two of the hottest trends in the past year – non-fungible tokens and decentralized finance.

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Recognizing the protocol’s potential, investors started praising its native cryptocurrency a while back and begun allocating substantial funds to it. Some of the most notable names, even such outside of the community that has openly admitted to owning portions of the second-largest cryptocurrency, include Mark Cuban and Robert Kiyosaki.

On-chain data from the analytics company Santiment suggests that most Ethereum investors seem bullish as the number of ETH tokens sitting on exchanges has gone down dramatically in the past year.

Back on September 26th, 2020, 24.1% of the overall supply of ETH stood on trading platforms. Fast-forward a year later, and the percentage has decreased by roughly one-third to 16.1%. Consequently, the analytics firm concluded that “this is a good sign for patient hodlers.”ADVERTISEMENT

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ETH Supply on Exchanges vs. ETH Price. Source: Santiment
ETH Supply on Exchanges vs. ETH Price. Source: Santiment

ETH’s Price Surge in a Year

The decreasing supply of ETH held on exchanges essentially means that investors are not in a rush to sell their coins, which could be regarded as a bullish sign. Looking at what transpired with its USD value in the same timeframe in which the supply on exchanges dropped is quite impressive on its own.

On September 26th last year, ETH traded around $350. It went on a full bull run in the following months and more than doubled its value by the end of 2020.

2021 started on a high note as the second-largest crypto kept doubling in price, it broke its 2018 ATH and reached unseen highs. It all culminated in mid-May when it charted its current record of $4,400.

Despite the subsequent retracement and volatility, ETH still stands today – a year later – at around $3,100. This means that in the same timeframe in which investors were withdrawing ETH from exchanges, the asset’s price skyrocketed by nearly 800%.

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ETHUSD. Source: TradingView
ETHUSD. Source: TradingView

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Ethereum

Ethereum’s Second-Largest Mining Pool to Shut Down on Sept 30 Amid China Regulatory Pressure

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The Chinese crackdown on the cryptocurrency industry has taken another victim – this time, the Ethereum mining pool Sparkpool.

The second-largest ETH mining pool – Sparkpool – has announced that it has halted access to new users in Mainland China. Furthermore, the organization plans to abandon all of its services as of September 30th.

  • Based in Hangzhou, China, Sparkpool is the second-largest Ethereum mining pool responsible for more than 20% of the total hash rate, as the picture below demonstrates.
Ethereum Hash Rate Distribution. Source: Etherscan
Ethereum Hash Rate Distribution. Source: Etherscan
  • However, the company plans to seize all operations due to the most recent Chinese crackdown. The announcement published earlier this week reads that it has suspended access to new users who are located in Mainland China as of September 24th.
  • This part might be expected to a large extent because of the nation’s openly hostile stance against the cryptocurrency industry. The latest news coming from the country indicated that all digital asset trading is banned.
  • This forced Huobi, one of the largest cryptocurrency exchanges, to stop providing any of its services to Chinese users.
  • However, Sparkpool has decided to take it a step further. The statement reads that a “complete shutdown for all Sparkpool services and operations for the existing users, at home or abroad, has been planned for September 30th, 2021 (UTC +8) at 20:00.”
  • The company argued that this decision comes “under the premise of ensuring the safety of our users’ assets.”
  • Sparkpool promised to provide more specific information on clearing and refunding rules in upcoming announcements through emails and in-site letters.
  • The closure of the second-largest ETH mining pool would most likely lead to damages to Ethereum’s hash rate. The metric, which is crucial for the network’s security, recently reached a new ATH, but it might drop in the following few weeks.

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Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow?

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  • Ethereum price analysis is bullish today.
  • ETH/USD continued to move higher overnight.
  • ETH is likely to pause before breaking higher.

Ethereum price analysis is bullish today as bulls pushed the market price to the $3,150 resistance after a strong rally yesterday. Therefore, we expect ETH/USD to break higher later today and finally set a new higher high.

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow? 1
Cryptocurrency heat map. Source: Coin360

The overall market traded with a bullish momentum over the last 24 hours. Bitcoin is up by 1.6 percent, while Ethereum has gained 4.47 percent. Meanwhile, Solana (SOL) is the best performer today, with a gain of 10 percent.

Ethereum price movement in the last 24 hours: Ethereum tests $3,150 previous high

ETH/USD traded in a range of $2,976.34 – $3,163.67, indicating a substantial amount of volatility over the last 24 hours. Trading volume has declined by 13.33 percent and totals $18.85 billion, while the total market cap trades around $365.4 billion, resulting in the market dominance of 18.75 percent.

ETH/USD 4-hour chart: ETH ready to set higher high?

On the 4-hour chart, Ethereum price action can be seen to look for a breakout above the previous high of $3,150 as bulls have regained control.

Ethereum Price Analysis: ETH tests $3,150 resistance, a breakout to follow?
ETH/USD 4-hour chart. Source: TradingView

The overall market continued to trade in a bearish momentum last week. After a new lower high was set around $3,650, ETH/USD dropped more than 25 percent until support was found around $2,750.

What followed was a reaction higher, with the previous major support of $3,150 retested as resistance. What followed was another spike lower on Friday, with a slightly higher low set this time.

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Yesterday, the $2,750 support was tested for the third time, with a subsequent rally to $3,150 resistance over the last 24 hours. Overall, we can expect exhaustion for bearish momentum, likely leading the Ethereum price higher over the next 24 hours.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish for today as bulls pushed higher overnight, and the $3,150 resistance currently gets tested. Therefore, ETH/USD should see further upside above the $3,150 resistance later today.

While waiting for Ethereum to move further, read our guides on NFT Games, CoinJar, as well as Bitcoin Memes.

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