Fun

News Feed - 2023-11-07 01:11:06

Marcel Pechman7 hours ago3 reasons why Ethereum price is underperforming altcoinsETH price is trading at a key resistance level, but data highlights why the altcoin could struggle to hold $1,900.5440 Total views104 Total sharesListen to article 0:00Market AnalysisJoin us on social networksThe price of Ether (ETH) surged by 6.2% from Nov. 3 to Nov. 5, but the altcoin is facing difficulty breaking the $1,900 resistance. Despite the current bullish trend, Ether’s 17% return over the last 30 days falls short of Bitcoin’s (BTC) impressive 27% gain during the same period.Regulatory hurdles and ecosystem centralization critiques linger


Analysts attribute some of Ether’s underperformance to uncertainty surrounding Consensys, a key player in the Ethereum ecosystem. Former employees have filed a lawsuit against the company and its co-founder Joseph Lubin. Over two dozen shareholders of the Swiss holding company, Consensys AG, claim that Lubin, who is also a co-founder of Ethereum, violated a “no-dilution promise” made in 2015.


Consensys is responsible for developing and hosting infrastructure projects crucial to the Ethereum network. It was founded in October 2014, about nine months before the Ethereum blockchain launched in mid-2015. Furthermore, the High Court of Zug in Switzerland ruled in favor of the plaintiffs, exacerbating the current uncertainty.


Regulatory challenges have hampered the growth of the Ethereum ecosystem. The latest concern centers around PayPal’s U.S. dollar-pegged stablecoin, PYUSD, which operates on the Ethereum network. This token is designed for digital payments and Web3 applications. On Nov. 2, PayPal disclosed a subpoena it received from the United States Securities and Exchange Commission.


In addition to regulatory pressures, there has been notable criticism of the decentralization of financial applications within the Ethereum network. Chainlink, a preferred solution for oracle services, quietly reduced the number of participants in its multisignature wallet from four out of nine to four out of eight. Analysts have highlighted the lack of governance by regular users as a significant issue. Ether’s underperformance to altcoins is evidence of other issues 


Several major altcoins — including Solana’s SOL (SOL), XRP (XRP) and Cardano’s ADA (ADA) — have outperformed Ether, with returns of 75.5%, 37% and 35% in the last 30 days, respectively. This discrepancy suggests that the factors holding back ETH are not solely related to regulatory pressure or reduced demand for the decentralized finance and nonfungible token markets.


One pressing issue for the Ethereum network is the high gas fees associated with transactions, including those executed by smart contracts. The latest seven-day average transaction fee was $4.90, negatively impacting the usage of decentralized applications (DApps).


Moreover, the total deposits on the Ethereum network, measured in Ether, have dropped to their lowest levels since August 2020. It’s essential to note that this analysis does not consider the effects of native Ethereum staking.Ethereum network applications" total deposits in ETH. Source: DefiLlama


According to DefiLlama data, Ethereum DApps had a total value locked (TVL) of 12.7 million ETH on Nov. 5, down 4% from the 13.2 million ETH two months earlier. In comparison, the TVL on the Tron network increased by 13% during the same period, while Arbitrum deposits remained at 1 million ETH. Data on DApp activity on the Ethereum network supports the notion of reduced activity.Ethereum network top DApps, 30-day active addresses. Source: DappRadar


Even excluding the significant 60% decline in the Uniswap NFT Aggregator, the average number of active addresses across the top Ethereum network DApps decreased by 3% compared with the previous month. In contrast, Solana’s top applications saw an average 18% increase in active users during the same period, according to DappRadar data.


Related: Aave pauses several markets after reports of feature issue


Finally, on-chain activity indicates increased user deposits of ETH at exchanges. While this data doesn’t necessarily signal short-term selling, the mere availability of coins is typically viewed as a precautionary measure by analysts.Average 7-day daily ETH deposits at exchanges, ETH thousands. Source: Coin Metrics


The present daily ETH deposit average of 255,614 represents a 30% increase from two weeks earlier, indicating that holders are more inclined to sell as Ether’s price approaches $1,900.


The data suggests that reduced TVL, declining DApps activity and a higher rate of ETH exchange deposits are negatively impacting the likelihood of Ether breaking the $1,900 resistance. The price level could be more challenging than initially expected, and for now, Ether bears can take a breath.


This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.# PayPal# Cryptocurrencies# Altcoin# Ethereum# Joseph Lubin# SEC# DApps# Markets# ConsenSys# Chainlink# Market Analysis# Ether Price# Solana# Ethereum PriceAdd reactionAdd reactionRead moreOpinion: With Bitcoin’s halving months away, it may be time to go risk-onWill the next crypto bull run be dominated by L1s, L2s or something else?Why is Ether (ETH) price up today?

News Feed

Yashu Gola10 hours agoWhy is Polygon (MATIC) price up today?MATIC’s price is up today as traders assess the appointment of a new CEO and amid surging whale activity ahead of a key network update.1076 Total views1 Total
Price analysis 8/12: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA
Rakesh Upadhyay3 hours agoPrice analysis 8/12: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADAThe S&P 500 Index is extending its recovery, boosting buying in Bitcoin and select altcoins in the near term.930 Total v
Ciaran Lyons2 hours agoTerra Classic community elects to cease USTC mintingThe community strongly backs stopping TerraUSD Classic (USTC) minting and reminting in favor of burning tokens to restore its U.S. dollar peg.108
Brayden Lindrea44 minutes agoOnlyFans, Patreon models turn to Web3 amid payment and censorship fearsPatreon creators had difficulties getting paid in August, while OnlyFans once tried to ban porn on the platform, forcing
ParaSwap DAO allocates funds for hack victims’ compensation
Arijit Sarkar27 minutes agoParaSwap DAO allocates funds for hack victims’ compensationThe ParaSwap AugustusV6 contract, which momentarily went live on March 18, contained a critical vulnerability that allowed hackers t
APAC crypto crime spikes amid legal resource shortages: Chainalysis report
Josh O"Sullivan1 hour agoAPAC crypto crime spikes amid legal resource shortages: Chainalysis reportAPAC’s struggle with increasing crypto crime is exacerbated by a shortage of legal resources and inadequate training fo
ZK systems will have their ChatGPT moment: Telos Foundation
Ezra Reguerra7 minutes agoZK systems will have their ChatGPT moment: Telos FoundationCointelegraph asked professionals working with zero-knowledge technology to get their insights on the current state of ZK.23 Total view
Phillips Auction Featuring Basquiat Painting Worth $70M to Accept Bitcoin, Ethereum Payments
Phillips Auction Featuring Basquiat Painting Worth $70M to Accept Bitcoin, Ethereum Payments On May 18, the auction house Phillips will be hosting an evening sale featuring the wor
Bitcoin futures open interest near ‘alarm raising’ $24B level — Are bulls at risk?
Marcel Pechman8 hours agoBitcoin futures open interest near ‘alarm raising’ $24B level — Are bulls at risk?BTC futures open interest approaches a record high and today’s sharp sell-off triggered alarm from trader
SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale
SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Grayscale Investments’ CEO explains that the U.S. Securities and Exchange Commission (
Samsung’s Asset Management Arm Launches Bitcoin Futures ETF in Hong Kong
Samsung"s Asset Management Arm Launches Bitcoin Futures ETF in Hong Kong Samsung’s asset management arm has launched a bitcoin futures exchange-traded fund (ETF). The new act
Study: MENA Crypto Volumes Grew Fastest Between July 2021 and June 2022 — Turkey Cements Position as Region’s Largest Market
Study: MENA Crypto Volumes Grew Fastest Between July 2021 and June 2022 — Turkey Cements Position as Region"s Largest Market Of the $566 billion in cryptocurrency transaction vol