Ethereum
Is Ethereum still a crypto millionaire?
If you are considering investing in Ethereum, focus on future growth potential and not historical track record.
Since its launch in July 2015, Ethereum (ETH 0.68%) has skyrocketed from just $0.31 to $3,000 today. This represents a return on investment of almost 10,000! If you had invested just a few hundred dollars in Ethereum ten years ago, you would probably be a millionaire today.
But does Ethereum still have the power to make you a millionaire? While it’s hard to argue with Ethereum’s historical track record, things become a little more difficult when considering its future prospects.
Competitive landscape
When Ethereum launched in 2015, it was the only blockchain platform for smart contracts. And, as such, he had an incredible first-mover advantage. It was probably not until 2020 when blockchain took off. Solana (GROUND 2.51%) appeared, that Ethereum saw its first legitimate rival.
To put this into perspective, imagine if your favorite Silicon Valley tech company had an incredible five-year head start on the competition. After this period, it would likely appear to have an insurmountable lead in terms of market share, intellectual property and customer dependency. Frankly, it would seem unstoppable.
This is why I think Ethereum’s ability to replicate its history is limited at best. There is simply too much competition now and Ethereum is no longer the only major layer 1 blockchain. Check for yourself: three of the top 15 cryptocurrencies by market cap are direct rivals to Ethereum. This type of competition simply did not exist in 2015.
Incremental or disruptive innovation
Plus, I’ve grown a little bitter about the endless upgrades to the Ethereum blockchain. Yes, the 2022 blockchain upgrade, known as The Merge, was impressive. People have compared this engineering feat to changing the engine of a plane in mid-flight. The merger brought about a total transformation of Ethereum. In doing so, Ethereum became faster, cheaper to use, and more efficient in processing transactions.
However, Ethereum initially promised us 1 million transactions per second, and we are far from achieving that. What’s even more concerning is that Ethereum now relies on a complex mix of layer 2 blockchains for scalability and functionality. Ethereum’s main blockchain (i.e. layer 1) is simply not fast or efficient enough to handle current transaction volumes. So we’re left with several more upgrade cycles, each filled with new tweaks and upgrades.
There is, of course, nothing wrong with incremental innovation. But there is a big difference between incremental innovation and truly disruptive innovation. And that’s what worries me about Ethereum: we may have witnessed the end of disruptive innovation with The Merge. And this will open the door for fast and agile competitors to challenge Ethereum.
The SEC and Regulatory Risk
Finally, there’s the pesky little matter of the Securities and Exchange Commission (SEC). Since The Merge, the SEC has not really decided whether Ethereum is a commodity or a security. When Ethereum converted to a proof-of-stake blockchain as part of The Merge, this has changed the way people interact with blockchain, with possible regulatory consequences.
For example, the process of staking crypto could be interpreted by some as “the investment of money in a joint enterprise with a reasonable expectation of profits from the efforts of others.” According to the SEC, this would make Ethereum a security.
This may seem incredibly shaky from a legal perspective, but it’s important for investors. Some Bitcoin maximalists are currently rejoicing over Ethereum’s potential regulatory dilemma, and there is a very real risk that the SEC will view Ethereum as a security. If that happens, all bets are off. I don’t think this would pose an existential risk to Ethereum, but it would certainly scare away many investors.
The myth of 1000x crypto
If you have $1,000 to invest in crypto today, you will need a 1,000x return on your investment to become a millionaire. So, let’s rephrase the original question about Ethereum being a millionaire crypto creator as follows: Can Ethereum increase its value 1,000 times from its current price of $3,000?
This would suggest a stratospheric price of $3 million for a single Ethereum coin in the near future. Given Ethereum’s circulating supply of 120 million coins, this would imply a total market cap of $360 trillion! In comparison, the total market capitalization of S&P500 these days, that’s about $50 trillion.
Ultimately, investing based solely on past performance is like driving a car looking only in the rearview mirror. So stop focusing so much on Ethereum’s historical track record and focus more on how it’s going to create value in the future.
Ethereum
QCP sees Ethereum as a safe bet amid Bitcoin stagnation
QCP, a leading trading firm, has shared key observations on the cryptocurrency market. Bitcoin’s struggle to surpass the $70,000 mark has led QCP to predict Selling pressure is still strong, with BTC likely to remain in a tight trading range. In the meantime, Ethereum (ETH) is seen as a more promising investment, with potential gains as ETH could catch up to BTC, thanks to decreasing ETHE outflows.
Read on to find out how you can benefit from it.
Bitcoin’s Struggle: The $70,000 Barrier
For the sixth time in a row, BTC has failed to break above the $70,000 mark. Bitcoin is at $66,048 after a sharp decline. Many investors sold Bitcoin to capitalize on the rising values, which caused a dramatic drop. The market is becoming increasingly skeptical about Bitcoin’s rise, with some investors lowering their expectations.
Despite the continued sell-off from Mt. Gox and the US government, the ETF market remains bullish. There is a notable trend in favor of Ethereum (ETH) ETFs as major bulls have started investing in ETFs, indicating a bullish sentiment for ETH.
QCP Telegram Update UnderlinesIncreased market volatility. The NASDAQ has fallen 10% from its peak, led by a pullback in major technology stocks. Currency carry trades are being unwound and the VIX, a measure of market volatility, has jumped to 19.50.
The main factors driving this uncertainty are Value at Risk (VaR) shocks, high stock market valuations and global risk aversion sentiment. Commodities such as oil and copper have also declined on fears of an economic slowdown.
Additionally, QCP anticipates increased market volatility ahead of the upcoming FOMC meeting, highlighting the importance of the Federal Reserve’s statement and Jerome Powell’s subsequent press conference.
A glimmer of hope
QCP notes a positive development in the crypto space with an inflow of $33.7 million into ETH spot ETFs, which is giving a much-needed boost to ETH prices. However, they anticipate continued outflows of ETHE in the coming weeks. The recent Silk Road BTC moves by the US government have added to the market uncertainty.
QCP suggests a strategic trade involving BTC, which will likely remain in its current range, while ETH offers a more promising opportunity. They propose a trade targeting a $4,000-$4,500 range for ETH, which could generate a 5.5x return by August 30, 2024.
Ethereum
Ethereum Whale Resurfaces After 9 Years, Moves 1,111 ETH Worth $3.7 Million
An Ethereum ICO participant has emerged from nearly a decade of inactivity.
Lookonchain, a smart on-chain money tracking tool, revealed On X, this long-inactive participant recently transferred 1,111 ETH, worth approximately $3.7 million, to a new wallet. This significant move marks a notable on-chain movement, given the participant’s prolonged dormancy.
The Ethereum account in question, identified as 0xE727E67E…B02B5bFC6, received 2,000 ETH on the Genesis block over 9 years ago.
This initial allocation took place during the Ethereum ICOwhere the participant invested in ETH at around $0.31 per coin. The initial investment, worth around $620 at the time, has now grown to millions of dollars.
Recent Transactions and Movements
The inactive account became active again with several notable output transactions. Specifically, the account transferred 1,000 ETH, 100 ETH, 10 ETH, 1 ETH, and 1 more ETH to address 0x7C21775C…2E9dCaE28 within a few minutes. Additionally, it moved 1 ETH to 0x2aa31476…f5aaCE9B.
Additionally, in the latest round of transactions, the address transferred 737,995 ETH, 50 ETH, and 100 ETH, for a total of 887,995 ETH. These recent activities highlight a significant movement of funds, sparking interest and speculation in the crypto community.
Why are whales reactivating?
It is also evident that apart from 0xE727E67E…B02B5bFC6, other previously dormant Ethereum whales are waking up with significant transfers.
In May, another dormant Ethereum whale made headlines when it staked 4,032 ETHvalued at $7.4 million, after more than two years of inactivity. This whale initially acquired 60,000 ETH during the Genesis block of Ethereum’s mainnet in 2015.
At the time, this activity could have been related to Ethereum’s upgrade known as “Shanghai,” which improved the network’s scalability and performance. This whale likely intended to capitalize on the price surge that occurred after the upgrade.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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Ethereum
Only Bitcoin and Ethereum are viable for ETFs in the near future
BlackRock: Only Bitcoin and Ethereum Are Viable for ETFs in the Near Future
Bitcoin and Ethereum will be the only cryptocurrencies traded via ETFs in the near future, according to Samara Cohen, chief investment officer of ETFs and indices at BlackRock, the world’s largest asset manager.
In an interview with Bloomberg TV, Cohen explained that while Bitcoin and Ethereum have met BlackRock’s rigorous criteria for exchange-traded funds (ETFs), no other digital asset currently comes close. “We’re really looking at the investability to see what meets the criteria, what meets the criteria that we want to achieve in an ETF,” Cohen said. “Both in terms of the investability and from what we’re hearing from our clients, Bitcoin and Ethereum definitely meet those criteria, but it’s going to be a while before we see anything else.”
Cohen noted that beyond the technical challenges of launching new ETFs, the demand for other crypto ETFs, particularly Solana, is not there yet. While Solana is being touted as the next potential ETF candidate, Cohen noted that the market appetite remains lacking.
BlackRock’s interest in Bitcoin and Ethereum ETFs comes after the successful launch of Ethereum ETFs last week, which saw weekly trading volume for the crypto fund soar to $14.8 billion, the highest level since May. The success has fueled speculation about the next possible ETF, with Solana frequently mentioned as a contender.
Solana, known as a faster and cheaper alternative to Ethereum, has been the subject of two separate ETF filings in the US by VanEck and 21Shares. However, the lack of CME Solana futures, unlike Bitcoin and Ethereum, is a significant hurdle for SEC approval of a Solana ETF.
Despite these challenges, some fund managers remain optimistic about Solana’s potential. Franklin Templeton recently described Solana as an “exciting and major development that we believe will drive the crypto space forward.” Solana currently accounts for about 3% of the overall cryptocurrency market value, with a market cap of $82 billion, according to data from CoinGecko.
Meanwhile, Bitcoin investors continue to show strong support, as evidenced by substantial inflows into BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT). On July 22, IBIT reported inflows of $526.7 million, the highest single-day total since March. This impressive haul stands in stark contrast to the collective inflow of just $6.9 million seen across the remaining 10 Bitcoin ETFs, according to data from Farside Investors. The surge in IBIT inflows coincides with Bitcoin’s significant $68,000 level, just 8% off its all-time high of $73,000.
Ethereum
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