State of the Market #71
Ether Price Hits New Record High as Analysts Anticipate Supply Drop
Ethereum’s price hits an all-time high of 2,564 in anticipation of the EIP-1559 which has the potential to make Ethereum a deflationary asset. This is unusual because generally the price of Ethereum and Bitcoin are correlated. This month alone Ethereum has gained 35% while BTC has dropped about 8%. While EIP-1559 is not a scaling solution, the coming months could be very bullish for Ethereum. EIP-1559 will not be implemented until this summer but it introduces a burn mechanism. Check the video of the week for an explanation of Ethereum gas fees and how EIP 1559 changes them.
PancakeSwap Widens Binance Smart Chain’s Lead Over Ethereum on Transactions
A couple of weeks ago Joshua Frank, CEO of The TIE, told us about how he had made 10x on a defi protocol named pancake swap. This week Pancake swap accounted for twenty percent of Binance Smart Chain’s record of 9.13 million transactions on Wednesday. Pancake swap is currently benefiting from the low fees provided by Binance Smart Chain. While Ethereum's fees have averaged thirty-eight dollars, Fees on Binance’s Smart Chain average just a few cents. This week's total collateral has risen from $5.89 billion to $10.76 billion and the decentralized exchange’s daily transaction count has gone up by a staggering 300% in just the past seven days.
SEC Presses Ahead With Ripple Lawsuit With Gensler at the Helm
Everyone’s least favorite crypto has made the headlines once again in their dramatic case with the SEC. If you are not familiar, Ripple has been accused of selling unregistered securities worth over 1.38 billion. The SEC also named Ripple’s executive chairman Chris Larsen and CEO Brad Garlinghouse as co-defendants for allegedly aiding and abetting Ripple’s violations and making US$600 million in personal profits from their unregistered sales of XRP. The charges are hefty and have sent Ripple’s price all over the place as people speculate what will happen. While Ripple recently had a break when they got access to documents related to the agency’s internal discussions about cryptocurrencies Bitcoin and Ether, the SEC accused Ripple of trying to “harass” the agency and “gamesmanship with respect to discovery.” In non-legal terms, they are accused of requesting documents in order to highlight irrelevant details in order to shift attention away.
Bitcoin dominance is about to drop below 50% for the first time in 3 years
As Doge and Ethereum capture the media’s attention, Bitcoin’s market dominance has slipped below 50%. Does this mark the start of an altcoin season? According to William Suberg from Coindesk, there is historical precedence from 2017 to suggest that this first showing of an ongoing alt season.
Turkey Blocks Bank Accounts of a Crypto Exchange Even as It Hunts for the CEO of Another
President of Turkey Recep Tayyip Erdogan fired the nation’s top central banker, Naci Agbal, in March due to the lira plunging. Consequently, the Turkish currency plummeting has led to protests from their government’s political opponents and an overall economic disaster. The lira decreased in value, but payment transactions through cryptocurrencies in Turkey skyrocketed. In an attempt to preserve the Turkish lira, the nation’s central bank announced earlier this month that they plan on banning cryptocurrency as a form of payment. Furthermore, the Turkish authorities blocked all onshore bank accounts of cryptocurrency exchange platforms.
Chart of the Week
Reddit user u/ibelite made a graph that shows previous market cycles and compares that to where we are right now. This indicates that the bull market is still very early and that the peak has not yet occurred. In the post, he makes some analysis that shows that eth could hit almost eight thousand dollars. While most graphs and analysis are very wrong regarding crypto, I think that this week has shown the bullish signals coming from eth.
Ross Ublricht’s showing yet another reason why his sentence was unjust. It is actions like these that show his true want to do good. #FREEROSS
How to buy crypto is surging once again signaling that this bull market could continue to pick up speed
Pei, an Austin-based crypto company and previous guess speaker, is constantly doing give-aways on top of their great product. If you want to support a legit company that is doing what they do for the sake of the ecosystem over profits go give them a follow.
Video of the Week
This video does a really great job at explaining Ethereums gas fees and how EIP-1559 changes them.
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Texas Blockchain’s ‘State of the Market’ is a student-led editorial. None of the views expressed by the authors should be taken as the view of the University of Texas at Austin or the Texas Blockchain organization. Furthermore, none of the views expressed should be taken as financial advice in any circumstance.