The Cryptocurrency market cap is at $ 2 trillion. This is more than most countries in the world. According to the Bank Of America study, these assets are now too big to ignore. The bull run of institutions has started, and it focuses on 3 crypto: ADA, ETH and BNB!
“Bitcoin is just the start. ADA, ETH and BNB are the continuation ”Bank Of America
- The number of large transactions is exploding!
- The feeling of the holders is 100% Bullish!
- Ethereum development exceeds expectations!
ADA, ETH and BNB, the future kings of cryptocurrencies
Bank of America: 1/3 of the United States will use cryptocurrencies by 2022
Bank of America, one of the world’s leading financial institutions, commissioned a study under the direction of Alkesh Shah. According to this study, cryptocurrencies will grow massively over the next 30 years. In just a year, a third of Americans will be using cryptocurrency. In particular Cardano ADA, Ethereum ETH and Binance Coin BNB!
“It’s hard to overstate how blockchain technology, digital assets and the thousands of decentralized applications will transform the world. Digital assets that build a platform, like Apple’s iPhone, gain the most value. The top three: Ethereum ETH, Cardano ADA and Binance Coin BNB “
27% of the American population will use cryptocurrencies
The Historical Bank of the United States report states that the NFTs, institutional investments and the growth rate are incredible. And yet, the Bank of America considers the market to be still “young” and with “gigantic” growth potential.
221 million people buy and sell cryptocurrency in June 2021, up from 66 million in May 2020. Crypto will disrupt finance, technology, supply chains, social media, gaming, and more.
The violent adoption of institutions
- According to Bank Of America, which is THE bank of the United States, the adoption will be massive and powerful.
- 14% of Americans currently hold cryptocurrencies
- This represents 21 million users and investors. They will be 42 million in 1 year. That’s a 100% increase.
- The average cryptocurrency holder earns around $ 111,000 per year, according to the study.
- If 42 million people invest $ 111,000 in crypto, that represents an inflow of $ 4,662 billion. Just for the United States.
In addition, the share of institutional investors has exploded for a year.
- On Coinbase, the number of institutions increases by 67% while the number of individuals increases by only 34%.
- Institutionals make up 1% of Coinbase’s population, but they own 50% of the assets.
- The volumes that institutions traded is up 633% in one year, from $ 9 billion to $ 57 billion.
Other highlights from this 140-page report:
- The stablecoins are so important that they represent a risk for global finance!
- The CBDCs – Central Bank Digital Currency, central bank crypto, are inevitable.
NFTs and DeFi
For more information – see our guide “Buy Ethereum“.
Many investors see NFTs as one more bubble, according to the report. However, the Bank of America is not wrong.
NFTs can be used in place of deeds, titles, or whatever is currently needed to demonstrate ownership – and all without a middleman charging a fee.
According to the report, NFTs are well highlighted as one of the current market drivers. The power of Non-Fungible Tokens – Non Fungible Token – will have violent repercussions on the rest of the economy and industry. Far beyond what people still understand. The rise of SORARE which now weighs 5 billion dollars is a glaring example!
But the most interesting passage in the report is undoubtedly about DeFi. Decentralized Finance clearly represents a danger for the economic model of banks. Yet the report simply notes that the SEC is working to bring this sector up to standard. Even better: according to the Bank of America, Decentralized Finance will, in time, be part of the global economic landscape.
In this area in particular, Ethereum is emerging as the future king of crypto.
In short, Bank of America has changed sides. The question for her is not whether cryptocurrencies like ADA, ETH and BNB will rule the world, but when. And a priori, it will start in 2022.
One Ethereum Competitor Is Showing Strength As Bitcoin Loses Ground, According to Crypto Trader Benjamin Cowen
Crypto analyst Benjamin Cowen says an Ethereum rival is showing strength as Bitcoin pulls back from its all-time high.
Cowen tells his 576,000 YouTube subscribers that AVAX, the native token for the smart contract platform Avalanche, is “weathering the storm relatively well.”ADVERTISEMENT
The 12th-ranked asset by market cap is trading at $68.28 at time of writing, up over 5% in the past 24 hours and more than 20% in the past week, according to CoinGecko.
Cowen notes that AVAX is trading well above both its 20-week simple moving average (SMA) and 21-week exponential moving average (EMA). Taken together, the two metrics are what Cowen refers to as the “bull market support band.”
“We also have some wiggle room in the sense that we are above the bull market support band of the AVAX/USD valuation. The 20-week SMA is at $35.85 and the 21-week EMA is at $43.47. What that tells you is that Avalanche has been performing pretty well for the last several weeks.
A lot of coins are right above their bull market support band, and they haven’t been performing as well recently. A lot of these things can have some type of seasonality as the money ball just jumps around from project to project, and right now, clearly, AVAX is showing a decent amount of strength.”
Cowen doesn’t predict that AVAX will have a strong move against Bitcoin “in the next month or so,” but he does say that Avalanche can increase in value in terms of its relationship to the US dollar in the short term.
Ethereum Price Forecast: ETH bulls set sights on new record high targeting $6,000
- Ethereum price is gearing up for a new all-time high as two significant bullish chart patterns have transpired.
- The governing technical patterns present optimistic targets at $6,015 and $6,365.
- A daily close above $3,960 would add credence to the bulls’ aspirations toward $6,000.
Ethereum price is hovering around a key support level which has previously acted as resistance for ETH, as the bulls catch their breath before the token resumes its rally. As long as the second-largest cryptocurrency by market capitalization holds above $3,960, a 60% surge is still on the radar.
Ethereum price eyes 60% ascent
Ethereum price has printed two major bullish technical patterns on the daily chart, an ascending parallel channel and a cup-and-handle pattern. The former chart pattern indicates that ETH has been consistently reaching higher highs and higher lows since mid-June, presenting an optimistic outlook for the token.
Based on the first prevailing chart pattern, ETH is likely to tag the upper boundary of the channel at $6,015, coinciding with the 161.8% Fibonacci extension level, representing a 48% climb.
The cup-and-handle chart pattern suggests that the projected target for Ethereum price is at $6,365, forecasting a 60% rally. While the two governing technical patterns establish an optimistic outlook for ETH, the token may be confronted by a headwind at its all-time high at $4,369, corresponding to the middle boundary of the parallel channel.
Additional hurdles may emerge at the 127.2% Fibonacci extension level at $5,092, then at the 161.8% Fibonacci extension level at $6,015.
Given the reinforcement of the two optimistic chart patterns presented on the ETH daily chart, retracements for Ethereum price may not be significant even if selling pressure arises.
ETH/USDT daily chart
Ethereum price will discover immediate support at the support trend line at $3,960, then at the 78.6% Fibonacci retracement level at $3,797. The following line of defense will emerge at the 21-day Simple Moving Average (SMA) at $3,710, then at the 50-day SMA at $3,453 before eventually dropping toward the lower boundary of the ascending parallel channel at $3,349, which meets the 61.8% Fibonacci retracement level.
If Ethereum price fails to hold above the aforementioned levels of support, the bullish outlook may be voided, prompting ETH to plunge lower toward the 100-day SMA at $3,137.
ETH bulls should aim for a daily close above $3,960 to reinforce commitment for the bullish target to be on the horizon.
Whales hoarding NFTs? 80% of Ethereum NFTs bought by only 17% of Addresses
- Around 16 percent of addresses snatched up 80.98 percent of all NFTs on Ethereum between April and September.
- Moostream argues that there is still room in the NFT space for ‘small investors.’
Moonstream, the open-source blockchain analytics platform, has revealed that about 80 percent of all non-fungible tokens (NFTs) on the Ethereum blockchain between April 1 and September 25 were owned by a minority of wallets. According to the October 21 report, four-fifths of NFTs in that time period was owned by 17 percent of wallets.
The reported analysed data from 7,020,950 million NFT transactions on Ethereum in a period of close to six months. It revealed that a significant number (80.98 percent) of NFTs on the blockchain were owned by whales, NFT platforms and exchanges which make up 16.71 percent of all wallets. The rest were distributed amongst the remaining 83.29 percent. This trend seems to follow the Pareto Principle or 80/20 rule as pointed out by one Reddit user. This is a principle that asserts that 80 percent of consequences are as a result of 20 percent of the causes.
It is worth noting that the data used in the report is based exclusively on the Ethereum blockchain and not Layer 2 networks or centralised Application Programming Interfaces (APIs). The report explains this in it’s ‘Caveats’ section.
The Ethereum NFTs dataset is constructed purely from events on the Ethereum blockchain. It does not include any data from Layer 2 networks like Polygon. Nor does it include any data from centralized APIs like the OpenSea API. It does not account for events or data from any non-ERC721 smart contracts associated with these platforms on the Ethereum blockchain. This means that two parties could exchange a positive amount of funds for a transfer off-chain and conduct the transfer on-chain and we would not be able to distinguish the transfer from a gift. It is also possible for a single transaction to involve multiple NFT transfers.
Still early for ‘small-time’ investors and individuals?
While the unevenness in NFT distribution is glaringly obvious, Moonstream insists that there is still room for participation from small investors.
What this data shows us is that the Ethereum NFT market is open in the sense the vast majority of its participants are small-time purchasers who likely make their purchases manually. There are few barriers to entry for those who wish to participate in this market.
Contrary to what many may believe, purchasing and holding NFTs is relatively easy. Individuals can open a wallet on an NFT marketplace and fund it. After this, they can easily bid on available NFTs. Some popular NFT marketplaces are OpenSea, Rarible and Foundation.