2021 was a turbulent year for the airwaves.
Thanks to several factors, including a slowly evolving core network upgrade and the growth of cryptocurrencies in general, the world’s second largest cryptocurrency by market value is growing. Now air has just hit an all-time high, surpassing $ 3,430 in the early hours of May 4th.
Ether has been around for almost ten years, it was first proposed in 2013 by its founder Vitalik Buterin and launched in 2015. This latest rejection made Buterin a certified billionaire – one of his digital wallets contains more than $ 1.1 billion worth of ether. …
But what’s interesting about this progress is that in the past few months, Ether has begun to move independently of its much larger competitor Bitcoin. Previously, the two seemed inextricably linked as the Bitcoin sell-off inevitably hit the prices of other cryptocurrencies.
This split has worked for a while, as the network that powers Ether, known as Ethereum, is currently undergoing a major overhaul. The developers say that with the help of Eth2, Ethereum will become more secure, scalable and sustainable, as updates to switch the mining process from proof of work to proof of stake should make the production of new Ethereum tokens much less energy intensive.
TO READ Could Ether Escape From Bitcoin’s Shadow? Crypto shows ‘signs of disconnection’
Since Bitcoin’s drop to the $ 50,000 mark prompts cryptoheads to revalue their portfolios, Ether has been much less volatile by comparison. The bitcoin network issues that led to blocking transactions earlier this month only boosted Ether’s popularity – on May 4, Ether rose more than 4%, while Bitcoin and other major XRP coins fell 5-10% as 10: 00 BST.
Mati Greenspan, crypto investor and CEO of Quantum Economics, said the changing behavior of alternatives to bitcoin marks the beginning of a new divergence known as the “alternate season.”
“It’s not that bitcoin fell, but that it was stuck in the middle of its price range,” Greenspan said. “What’s even more interesting is how the two platforms seem to work together and compete at the same time.”
Ethereum is known for its ease of use of smart contracts, hence the subsequent popularity of Ethereum as a medium of exchange for non-fungible tokens (NFT). Millions of dollars have been invested to buy cryptocurrency using NFT this year, with transactions from traditional sites such as Christie’s only further mainstreaming it.
TO READ The Dark Side of NFT: Why Collectible Digital Art May Challenge Investor Goals for ESG
Meanwhile, Bitcoin’s penchant for extremely high energy intensity has led some institutional investors to ponder how they can reconcile its environmental impact with ESG’s goals. Duncan Trenholm, co-head of digital assets at brokerage TP Icap, said in this sense, the Ethereum upgrade could make it a much more attractive alternative.
“The network fees on Ethereum and the possibility of proof of stake are two important factors in terms of how much Ethereum will continue to be used,” Trenholm said. Fintech files…
“Of course, from our financial side, tokenization is causing a lot of excitement in terms of how we will view traditional assets at this new technological level and take advantage of this type of settlement.”
While Ether is a digital currency, it will likely be a network that attracts investors because of the currency’s potential as an asset for their portfolios. The European Investment Bank issued its first digital bonds using Ethereum last month alongside Goldman Sachs, Societe Generale and Santander, while financial institutions are weighing how they can use the protocol for decentralized financial applications.
“It’s pretty clear in which direction to go, although it’s probably hard to tell where you see successes and failures even in cryptography,” added Trenholm’s co-director Simon Forster. “But technology is not going anywhere, and I think as an organization TP Icap needs to be mindful of what this means for the market infrastructure.”
Elsewhere in fintech …
Revolut began its “multi-million dollar expansion” in India last month, announcing 300 jobs in the country as it quickly recruits for the new market. But it looks like Prime Minister Boris Johnson just took notice.
“I am delighted that Revolut is expanding in India to make the most of British business opportunities in one of the largest economies in the world. Our exporters are brilliant UK ambassadors and I hope today’s announcement is just the beginning of what you can do for India and the UK, ”Johnson said in a statement released by Revolut on May 4 – 12 days after the expansion was announced.
Revolut, while stating that this is a “repeat” of its commitment to the market, has also added 60 more jobs to its total UK-based jobs to help its Indian division get started.
It comes at a time when Johnson is holding virtual trade talks with Indian Prime Minister Narendra Modi, hoping to secure thousands of jobs and billions of pounds in new trade and investment. Perhaps the two could be related.
To contact the author of this story with reviews or news, please email Emily Nicole.