Ethereum Shares Some of its Bullish Fundamental News Events
Ethereum (ETH) remains more than 85 percent below the all-time high it had at the exact peak of the past cryptocurrency mania. And this happened despite the over 100 percent rally from the $88 lows of March’s capitulation.
Also, Ethereum might soon get a slight bullish relief. And this is because news releases fundamental trends that could dramatically increase demand for ETH, thus fueling higher prices.
Mythos Capital’s founder, Ryan Sean Adams, determined these trends. And they all occurred in the span of a week.
The first news is that Ethereum got the primary U.S. CFTC-regulated futures market last week. This is when an exchange backed by prominent players like TD Ameritrade, ErisX, launched its contracts previous week. Then, a leading crypto analyst expects the release of ETH futures to make the prices higher.
Another news is reported by CryptoSlate, where the leading online forum and one of the most visited sites on the internet, Reddit, confirmed a week ago its new feature named ‘Community Points.’ The said feature is based on an Ethereum testnet that lets the site’s millions of users obtain access to special features. Soon, they will migrate these tokens to the leading Ethereum network.
Finally, on May 14, Visa filed a patent that outlines a process the would turn fiat currency (dollar, yen, yuan, and so on) into a blockchain asset. Even though the system looks somehow theoretical, the patent said about the use of the Ethereum network. And the multinational payments company placing a payment rail into Ethereum would enormously boost demand for ETH and would onboard millions into the crypto space.
ETH’s Network Effects
The said developments might not have an immediate tangible effect on demand for Ethereum. But still, they are crucial to the asset’s network effect. This is an economic idea that the value of a network – such as Facebook or the U.S. dollar – will become tied to the number of people who use it.
In addition to that, the founder of Galaxy Digital and a former partner at Goldman Sachs, Mike Novogratz, told Ethereum co-founder Joseph Lubin and Forkast.news’ Angie Lau, regarding the blockchain’s network effect, “One of the things for the Ethereum narrative is valuing the network kind of like we do with Facebook (the more network affects you get, the better). Like getting Tether to migrate its coins to Ethereum brings people using that to the network.”
Elsewhere, TAAL, a blockchain service provider, has processed the most massive block to date on Bitcoin SV. And it is 369 MB in size, with 1.3 million transactions.
TAAL announced this on Twitter. And the block is an order of magnitude larger than anything currently reachable on Bitcoin (BTC) or Bitcoin Cash (BCH).
Aside from that, Chief Executive Officer (CEO) of TAAL, Jerry Chan, stated that users of an application out of China initially processed the transactions. Also, they are the ones who competed with each other to see who could make the most transactions in a contest created to test the transaction capabilities of the network.
With this, it follows hot on the heels of a block with 1.1 million transactions processed last May 13.
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