Ethereum Market Value Rises 200% to $44.3bn in 2020
Cryptocurrencies continue their impressive growth in 2020, drawing more and more attention from investors in times of economic uncertainty caused by the COVID-19 outbreak.
According to data presented by AksjeBloggen, the market capitalization of the world’s second-largest crypto coin, Ethereum, soared by 213% YTD to $44.3bn, 2.5 times bigger increase than the leading cryptocurrency Bitcoin.
Amost 250% Jump After the COVID-19 Crash
After an impressive performance in the first two months of 2020, Ethereum market capitalization slumped by 58% in the second week of March, falling to $12.7bn, revealed the CoinMarketCap data.
However, the price of the world’s second-largest crypto coin quickly bounced back, with market cap recovering to $25.1bn in the second quarter of 2020. Statistics show the increasing trend continued in the third quarter of the year, with the combined value of all Ethereum coins peaking at $53.5bn in September, a 102% jump in three months. Although the last month witnessed a slight decrease, with the market capitalization slipping to $44.3bn, this value still represents a 250% jump after the crash in March.
As the world’s leading cryptocurrency, Bitcoin witnessed an 86% increase in market capitalization since the beginning of the year. In January, the combined value of all Bitcoins circulating in the crypto space amounted to $130.54bn. After a sharp fall to around $90bn in March, this figure surged to $176.2bn in June, a 95% jump in three months. Statistics show the market cap of the leading digital currency globally rose to $245bn at the end of last week.
XRP, the third-largest cryptocurrency globally, witnessed a 32% increase in market capitalization in 2020, with the figure rising from $8.4bn in January to $11.1bn last week.
Ethereum Hit Over 1 Million Daily Transactions in Q3 2020
Besides a surge in market capitalization, Ethereum also witnessed a significant increase in daily transactions worldwide. In the first quarter of 2020, the average number of daily Ethereum transactions amounted to 537,900, revealed the BitInfoCharts data. Over the next three months, this figure dropped by 14% to 463,100.
However, at the end of the third quarter of 2020, there were more than a million Ethereum transactions recorded daily worldwide, a 100% increase since the beginning of the year.
SEC’s Demands are a ‘Threshold Moment’ for Bitcoin and Other Cryptocurrencies
Fresh demands from the U.S. financial regulators on cryptocurrencies are “a threshold moment” for Bitcoin and other digital assets, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.
The comments from Nigel Green, chief executive and founder of deVere Group, come as the Securities and Exchange Commission Chairman Gary Gensler has said that Wall Street’s top watchdog needs Congress to grant it more power to oversee the growing crypto market.
Mr Green says: “These demands by the SEC – the financial regulator of the world’s largest economy – underscore again that cryptocurrencies are a major growth market and are gaining further influence within the mainstream global financial system.
“The watchdog needs more powers over the market as there’s a clear direction of travel: both institutional and retail investors are taking Bitcoin and other cryptocurrencies more and more seriously as a financial asset and a medium of exchange. They are increasing their exposure to them at a faster rate than ever before.
“The SEC seems aware that digital assets are the inevitable future of money.”
He continues: “With increasing dominance and value, comes increasing regulatory scrutiny as we are seeing now.
“Gensler’s calls for the SEC to be given more direct authority over the burgeoning crypto sector will, I believe, be approved by Congress.
“This is a threshold moment as it shows that the time has come to hold crypto assets to the same standards as the rest of the financial system.
“This shake-up will likely generate some market turbulence, but ultimately regulation will be good for investors.”
One of the best ways to address the regulatory issues is via the exchanges, says the deVere CEO, adding that he believes this will be the route the SEC adopts.
A robust regulatory framework will help protect both retail and institutional investors, help combat cryptocurrency criminality, and reduce the potential threat of disrupting global financial stability, as well as offering a possible long-term economic boost.
“As such, the proactive and pragmatic approach now being taken by the Chairman of the SEC should be championed.”
Mr Green concludes: “Cryptocurrency regulation is required and, I believe, now inevitable. The SEC is one of the world’s most influential regulators and, therefore, its approach is likely to help shape the policies of others.”
New Exchange Makes Trading With No Counterparty Possible
Morpher has announced the launch of their decentralized exchange, which will allow users to trade over 700 stocks, commodities currencies and other cryptos with no need for a counterparty. The platform, which will go live on August 1st, uses smart contracts to let anyone in the world stake cryptocurrency to the performance of an underlying market, making it tradeable through what the company calls “virtual futures.”
The startup’s CEO, Martin Froehler, said “billions of people in low and middle-income countries have been excluded from western capital markets either by regulations, by companies rejecting them as customers, or simply by steep initial capital requirements. We are changing that by making global capital markets available to anyone for the first time.”
Morpher DEX makes decentralized stock trading possible through smart contracts, which are self-executing contracts coded into the trading protocol on the blockchain. Users choose the market they would like to stake (e.g. Tesla stock) and select the amount that they would like to invest. The staked tokens “morph” into a virtual future, and are destroyed upon creation. When the virtual future is closed, tokens are minted proportionally to the current value of the virtual future, which is pegged to the performance of the underlying market.
Tim Draper, an early investor in Morpher, commented: “Free markets are awesome, and liquidity creates wealth. Morpher is creating infinite wealth!”.
Users are able to trade long or short any and all markets, employ up to 10x leverage, and place their trades 24/7 — even while the underlying markets are closed. Morpher DEX is the first step in true permission-less trading and decentralized access to global markets. The exchange will launch on August 1st, 2021, at www.Morpher.com/dex.
Morpher’s team has been developing its protocol and app since 2018 and launched a sidechain trading app in August 2020. Since then, Morpher has gained a following of 40,000 active traders and has several thousand daily transactions.
Alchemy Pay & Binance Partner to Drive Binance Pay Merchant Integration
Binance, the world’s largest crypto exchange, has partnered with crypto-fiat hybrid payment solutions provider Alchemy Pay to build a payment bridge between crypto and fiat through the Binance Pay wallet.
Binance Pay is a contactless, borderless, and secure user-to-user cryptocurrency payment feature on the Binance App. Launched as a beta in February, Binance Pay’s functions allow users and merchants to send and receive crypto payments around the world without incurring special handling fees for using crypto.
Supported by Alchemy Pay’s fiat-crypto integration, Binance Pay is available for both peer-to-peer payments and merchant-based transactions. Users and merchants can choose their preferred options for paying and getting paid with 40+ supported cryptocurrencies.
“Alchemy Pay was founded in 2018 by a team of fiat payment gateway veterans with a shared vision to build a practical bridge between fiat and crypto,” said Alchemy Pay CEO, John Tan. “When we started, the total value of the cryptocurrency market was less than a tenth of a percent of what it is today. Electronic payments outside of the $80 trillion fiat economy were virtually unknown to the world.”
Commenting on the partnership, John said, “Alchemy Pay’s partnership with Binance for the Binance Pay wallet significantly expands the practical backbone applications we build between the crypto and fiat worlds.”
Alchemy Pay merchant networks include Shopify, QFPay, Hong Kong’s Pricerite, Singapore’s Ce La Vi, Canadian footwear brand Aldo, multinational Arcadier SaaS, Midwest Global Asia taxi services (with its network of more than 2500 limousine drivers) and more.
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