Ethereum Will Be The Next Coin To Explode – Here’s Why
While Ethereum has rebalanced in the range of $3500-3600 dollars over the past few days, Bitcoin has overcome tough resistance at $55,000.
According to forecasts of various experts, the network will continue to grow, even exceeding record levels, despite the fact that the price of Ethereum remained at the same level.
Such an increase in popularity is due to the fact that the demand for the DeFi industry and the NFT industry has grown.
Ethereum’s Demand Is Back
At the end of the 3rd quarter of this year, the demand for Ethereum block space increased compared to the beginning of the previous quarter due to a massive increase in the layer-2 protocol. Ethereum’s transaction fees topped $1 billion in September, and the average transaction was $28.
Frank Holmes, who is the CEO, and CIO of U.S. Global Investors, the second most valuable cryptocurrency is the next coin to explode.
The revival of bitcoin, according to the CEO, will motivate Ethereum to become more active. He draws an analogy that Ethereum follows Bitcoin in a similar pattern as silver follows gold.
Holmes considers the current protocol – proof of work – the most significant problem when it comes to mining Ethereum.
It is assumed that by 2022 Ethereum will switch from the current work confirmation protocol to the bet confirmation protocol, but this is unlikely.
DeFi And NFT Hype
NFT is back in the headlines. According to Frank Holmes, due to the significant recovery and discussion around DeFi – NFT, the role of Ethereum is “a much more important foundation for the growth of the blockchain.”
Ethereum (ETH) is the leader in the power of smart contracts and the number of active projects on the network.
The continued growth of Ethereum transactions may be related to the growing popularity of NFTs and the growing use of decentralized finance (DeFi) platforms.
At the same time, a significant increase in BTC reserves among long-term holders leads to a decrease in bitcoin network activity.
Regulatory Action Towards Crypto Growth
As reported, the last step of the United States planned to issue an executive order to tighten the cryptocurrency market against the threat of cybercrime.
They are considering broader control of the cryptocurrency market in response to the growing threat of extortion and other cybercrimes.
The ransomware program works by encrypting the victim’s data. As a rule, hackers provide victims with a “key” in exchange for cryptocurrency payments, which can amount to hundreds of thousands or even millions of dollars.
Earlier this month, President Joe Biden announced that America’s top national security advisers will meet online with officials from 30 countries to review plans to combat the growing threat of the US government. ransomware and other cybercriminals.
The participation of the US government may have a serious impact on the growth of the crypto part of the market in the future. According to the central Bank of England, regulatory measures are needed, as cryptocurrencies are becoming increasingly integrated into the financial and banking system.
Some products may be easier to regulate than others. While products that track cryptography can be regulated, it is actually impossible to regulate the tokens themselves.
China has been playing this game for years and ended up with bans instead of functional regulations.