The Ethereum network has broken 2 records today! Along with the dramatic increase in the rate of burning ETH, the free crypto signals for the largest altcoin are growing significantly.
With this mechanism, the number of tokens burned in the last 24 hours broke the record, reaching $ 35 million in ETH. Along with this record, over 6.2 million addresses containing 0.01-1 ETH have been included in the Ethereum network since early 2021.
- The increase in combustion volume inevitably led to the formation of deflation blocks on the network. Since miners are mining less ETH than they are burning, deflationary blocks have formed.
- From an economic point of view, deflation has worked in favor of long- and medium-term investors who were able to accumulate large amounts of ETH prior to the EIP-1559 update.
- Previously, analysts from SafeTrading and pundits had expected Ethereum to become deflationary by the end of the year with the latest update. However, large volumes recorded by various NFT projects and general network congestion have indirectly helped the Ethereum network move towards a deflationary perspective.
But, most likely, as NFT volumes fall, base fees and burn rate will fall – analyst of SafeTrading.
According to on-chain data, the demand for ETH is steadily growing, while the circulating supply of Ethereum is constantly decreasing. In fact, over 6.2 million addresses currently contain over 0.01 ETH. This increase in the number of addresses containing Ethereum indicates that the general market sentiment is positive.
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Ethereum is currently trading at $ 3,400 and is consolidating after its recent 15% drop by free crypto signals. But even after this severe crash, ETH holders and investors did not transfer funds to exchanges and continued to store funds in their wallets – experts of SafeTrading.
How will it affect the market if a Bitcoin ETF is approved?
The long-awaited Bitcoin ETF that US citizens have been waiting for is constantly being rejected. While countries such as Canada and Brazil recently officially approved BTC, the ETH ETF, the SEC continues to hold back from doing so in the United States.
But optimism about this has grown significantly over the past few weeks following comments from US Securities and Exchange Commission chairman Gary Gensler at the Aspen Security Forum. Gensler spoke in detail about cryptocurrencies and commented on this topic:
- “Given these important issues, I look forward to the authorities considering such applications, especially if they are limited to bitcoin futures traded by CME.”
So what happens if a Bitcoin ETF is approved later this year?
How have ETFs affected gold in the past?
- For a realistic comparison, the adoption of the first gold ETF could be based on considering a possible path for Bitcoin after the ETF is launched. The first gold ETF was approved in Australia in 2003, then the SEC approved it in 2004 and trading began in November 2004.
- From an annual low in 2001 to ETF approval in 2004, the value of gold has risen 76%. But shortly after the ETF, the market began to move sideways and fell 9% in a month. Almost a year later, the impact of ETFs was felt on the charts.
- Over the next 5-6 years, gold experienced a parabolic rally, reaching $ 1,900 from $ 420 to $ 440. Gold became available during the 2008 financial crisis and there was a renewed institutional interest in the asset. Gold has already been seen as a way to escape inflation.
What is the expected reaction of Bitcoin?
An official Bitcoin ETF will clearly increase the credibility of the digital asset as a legitimate investment vehicle. If it mimics gold’s past, BTC could be worth over $ 200,000 over the next 5 years. However, of course, there may be some difficulties. The SEC regulated Bitcoin ETF is likely to close on weekends.
Transactions for BTCC and EBIT are currently available Monday through Friday. This poses a problem as the spot market is open 24 hours a day, 7 days a week. For any Bitcoin ETF where there is extreme price volatility outside business hours, investors will not be able to close trades because they are outside business hours. To avoid this scenario, a US ETF must be open for trading on OTC exchanges 24 hours a day. This will allow investors to see their future.
MasterCard Buys Cryptocurrency Company!
The most important feature that the bitcoin and cryptocurrency markets brought was the revolutionary change in the payment system. We no longer need intermediaries like banks when making payments in a payment system powered by blockchain technology. The parties just need to share their bitcoin addresses with each other.
Electronic payments so far; This was done by methods such as MasterCard, Visa and Swift. In particular, MasterCard holds the lion’s share of the electronic payments market. For MasterCard, the blockchain-based payment system, bitcoin and cryptocurrencies were a threat. However, MasterCard acted rationally and made a deal with its adversary. It started using blockchain technology. Now MasterCard is among the influential players in the cryptocurrency market. With MasterCard cards supporting digital money, cryptocurrency investors can spend their virtual money in many areas of the real economy.
MasterCard is preparing to acquire a company operating in the cryptocurrency markets. This company: Cipher Trace! The company is a leading “cryptocurrency research and monitoring company”. In other words, Cipher Trace has the ability to track and analyze transactions made on the blockchain. The complexity of blockchains makes it difficult to track funds transfers. This ensures the privacy of cryptocurrency investors. But this privacy worries security bureaucracy and financial companies for a variety of reasons.
MasterCard plans to offer its stakeholders financial security and transparency through Ciper Trace. Institutional firms entering the cryptocurrency markets will want to know where their investors are ranked. MasterCard seems to be filling this need with Ciper Trace.
The aforementioned acquisitions and partnerships serve to further deepen and expand the cryptocurrency markets.