As of this writing, the price of Bitcoin is hovering around $32,000 after rising over Memorial Day. Records indicate that the 7% rise is the largest gain since early March, after it suffered a nine-week streak of losses. Additionally, on-chain data shows that the gas fee for Ethereum has dropped, leaving the average transaction fee at under $4. Earlier this year, that number could be as high as $50 at times of high chain congestion.
“The fallout from the Terra debacle, without question, heightened consumer concern, and it’s taken a toll on many different aspects of the digital assets world, including the NFT market and other areas which utilize the Ethereum chain. It isn’t surprising that the demand for gas is low right now. However, over time, investors will put their faith back into fundamentals, as they should. The fundamentals show that there is great promise for blockchain technologies,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
“Bitcoin is up today, and the Memorial Day weekend helped it along, as well. Crypto is known to be volatile, but when you consider the tremendous uncertainty in the markets, digital assets aren’t alone. Traditional assets, too, have been harmed by the macroeconomic conditions,” said Gardner.
“Consider the war continuing to rage in Eastern Europe, a resurgence of Covid, and sky-high inflation, and you have skittish investors. That’s a sign of the times we live rather than anything in particular that is related to cryptocurrencies,” said Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“I think one of the end results of the international uncertainty is that you’ll see more activity in crypto derivatives, which, when used properly, can absolutely mitigate the risk of fluctuating individual asset prices. There’s a lot of upside in the derivatives market, and I think this short-term dip will only increase its value,” said Gardner.