Connect with us

Blockchain

Is Ethereum Undervalued, or Polkadot Overvalued?

BeInCrypto dives into current platform analytics to compare the DOT versus ETH price and their network usage. Estimation of future production capacity drives price. However, we can begin to understand the valuation of the two ecosystems and why one may be way undervalued or overvalued compared to the other. Is Polkadot really an Ethereum killer? … Continued

The post Is Ethereum Undervalued, or Polkadot Overvalued? appeared first on BeInCrypto.

Avatar

Published

on

DOT, the native cryptocurrency of the Polkadot platform, has taken off lately. It’s vaulted into fourth place by market capitalization, but is this warranted compared to Ethereum’s value?

BeInCrypto dives into current platform analytics to compare the DOT versus ETH price and their network usage. Estimation of future production capacity drives price. However, we can begin to understand the valuation of the two ecosystems and why one may be way undervalued or overvalued compared to the other.

Is Polkadot really an Ethereum killer?

Since the bull run of 2017, smart contract platforms pop up regularly. They promise increased transaction speed and decreased transaction costs. They also envision overthrowing Ethereum as the smart contract king. These goals still tempt startups. Platforms like Polakdot and Cardano continue to grow in value and user following.

But how does platform usage translate to price? Do they correlate? These new platforms may promise higher transaction speeds. Both speed and correlation merit further examination in this case.

Understanding the metrics

Ethereum currently ranks second by cryptocurrency market cap. It boasts a total market cap of $137.8 billion compared to Polkadot’s $15.4 billion. Polkadot continues climbing the ranks, though. Crypto market cap aggregator CoinGecko showed that the platform almost quadrupled its market cap since mid-December. However, what justifies the price when comparing the usability of the smart contract platforms? Let’s find out.

Reddit user Oxygenjacket points to data from Polkascan, a website offering on-chain Polkadot data. The platform peaked at about six transactions per minute during high transaction volume in the last few days. Polkadot ran far fewer than six transactions per minute on average before its peak.

Ethereum, on the other hand, averaged more than 850 transactions per minute consistently over the last month. This equals more than 140 times the former’s peak. However, to simplify matters, the comparison below uses the Polkadot high number.

Comparing the market capitalization of the two projects with their current transactional output clarifies the situation, maybe. Ethereum’s market cap of $136.8 billion overwhelms Polkadot’s $15.6 billion. Polkadot weighs in at over 11 percent of Ethereum, by this metric. However, it currently produces only 0.7 percent of the Ethereum’s transaction volume. This wide disparity leads to the conclusion that either Polkadot is overvalued or Ethereum is undervalued. However, the analysis leads to a dead end at this point.

A hint from Pantera

Pantera Capital, one of the most influential blockchain based venture capitalist firms in the world recently gave a clue. It indicated, indirectly, that Ethereum may be the one undervalued. Pantera stated in its latest newsletter that Ethereum is undervalued compared to Bitcoin. By extension, perhaps investors undervalue Ethereum compared to Polkadot with its recent speculative growth.

Share Article

Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

Follow Author

Source: https://beincrypto.com/is-ethereum-undervalued-or-polkadot-overvalued/

Blockchain

Sen. Sherrod Brown tells the Fed to move forward on CBDC or risk being ‘left behind’

The letter, dated March 1, warns that private actors and other nations are attempting to dominate the payment system, meaning the Fed must move swiftly to avoid being “left behind.”

The post Sen. Sherrod Brown tells the Fed to move forward on CBDC or risk being ‘left behind’ appeared first on The Block.

Avatar

Published

on

Senator Sherrod Brown (D-OH) is encouraging the Federal Reserve to take a closer look at a possible digital dollar.

In a March 1 letter to Chair Jerome Powell and Governor Lael Brainard, Brown said he strongly supports the central bank’s study of central bank digital currency (CBDC).

“The Federal Reserve must lead the way on CBDCs and other digital payments, just as the Federal Reserve has done in moving forward with its faster payments system, FedNow,” read Brown’s letter. 

The letter, dated March 1, warns that private actors and other nations are attempting to dominate the payment system, meaning the Fed must move swiftly to avoid being “left behind.”

It also points to companies’ recent bitcoin purchases as a sign of the times. Brown said bitcoin and other “non-sovereign crypto assets” pose monetary policy and climate risks.

“They are highly volatile and speculative, can be used for illegal activity, and consume incredible amounts of energy, driving up electricity use rates, and putting the resilience of local grids at risk,” said the letter. 

Brown also pointed to Facebook’s Libra, now renamed Diem, as a possible threat to the regulatory regime. Regulating private actors is not enough to curb the threat, according to Brown. 

“But the Fed must not stop at regulating a privately-issued digital currency,” said his letter. “It must go further and explore a publicly issued digital dollar.”

Brown also reiterated Treasury Secretary Janet Yellen’s digital dollar sentiments. Yellen recently said a CBDC could further financial inclusion in America despite her concerns about other digital assets. 

Last year, Brown put forth a digital dollar bill in the Senate to advance the issue. The Banking for All Act would issue a digital wallet called a “FedAccount” to residents. Government payouts would be deposited to these accounts in digital dollars, and residents could use them for basic banking purposes, like direct deposit, withdrawal and payments. 

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://www.theblockcrypto.com/linked/97455/sen-sherrod-brown-letter-fed-cbdc?utm_source=rss&utm_medium=rss

Continue Reading

Blockchain

Vechain price prediction: VET set to move higher again, resistance to break at $0.056

TL;DR Breakdown VET continues pushing higher. The closest resistance found around $0.055. VET rejects further downside at the several-day trendline. Today’s Vechain price prediction is bullish as further downside seems to be rejected right now, indicating that we should see the $0.056 resistance broken soon. Cryptocurrency heat map. Source: Coin360 The overall market continues trading […]

Avatar

Published

on

TL;DR Breakdown

  • VET continues pushing higher.
  • The closest resistance found around $0.055.
  • VET rejects further downside at the several-day trendline.

Today’s Vechain price prediction is bullish as further downside seems to be rejected right now, indicating that we should see the $0.056 resistance broken soon.

Vechain price prediction: VET set to move higher again, resistance to break at $0.056 1

Cryptocurrency heat map. Source: Coin360

The overall market continues trading in the red after a strong push lower was seen earlier today across the board. Bitcoin and Ethereum trade with a loss of 4 percent, while the best performance is seen for Uniswap, which is up by 10.4 percent. The worst performer right now is Polkadot with almost 10 percent in the red.

VET/USD opened at $0.052 today after slightly bullish yesterday’s price action. Vechain price has established clear ascending trendline support over the past week, indicating a potential area where the market will reverse again. So far, VET does respect the ascending trendline of support with a sharp rejection for further downside. Therefore, we are likely to see the price of Vechain test the $0.056 resistance. 

Vechain price movement in the last 24 hours

In the last 24 hours, VET/USD moved in a range of $0.04934 – $0.05456, indicating high volatility. Trading volume is down by 14 percent and totals $497 million. Vechain currently ranks 27th in the market rank by capitalization with just over $3.3 billion.

VET/USD 4-hour chart – current 4-hour rejection candle to push VET higher?

As seen on the 4-hour chart, Vechain currently strongly rejects further downside after a brief test of the psychologically important $0.05 price mark. Therefore, we can assume that Vechain has set another higher low, meaning that the short-term trend is bullish.

Vechain price prediction: VET set to move higher again, resistance to break at $0.056 2

VET/USD 4-hour chart. Source: TradingView

Overall, VET has had a very strong retracement over the past month. After Vechain price set a new all-time high at $0.06, the market did reverse and moved all the way to the $0.042 mark in the middle of February. What followed was another rally and an attempt to set a further all-time high. However, Vechain was heavily sold as soon as it approached the previous all-time high at the $0.06 mark. 

What resulted was another strong push lower over several days at the end of February. As seen on the chart, the 61.8% Fibonacci level was tested and the price did consolidate around this area for several days as it built a base for another reversal to the upside.

After the last test around $0.037 at the end of February resulted in a failure to move lower, VET did reverse in a major way towards the previous medium-term bullish trend. Vechain price has since set both higher local high and higher local low twice, indicating that the bullish momentum has indeed returned.

Earlier this week, Vechain did move towards $0.055, gaining 30 percent from the local low of $0.042. This has made bulls confident for the market structure of Vechain again. Therefore, the current test of last week’s ascending trendline should result in another push higher. Additionally, the 4-hour candle around the trendline is looking to close with a massive wick, meaning that bulls are present. 

This bullishness should result in Vechain reaching towards the $0.06 all-time high again next week. If VET can break above, we are likely to see the market continue its rapid growth in a similar way as during the beginning of February, when VET/USD moved by more than 100 percent from the low of $0.025 to $0.06.

Vechain Price Prediction: Conclusion 

Vechain price prediction is bullish as the market has rejected further downside near the previously mentioned several day ascending support trendline. Resistance to watch is located at $0.056. If it is broken, we should see Vechain setting new all-time highs next week,

While waiting for Vechain to move higher, read our long-term Vechain price prediction or our latest guide on Ripple wallets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://www.cryptopolitan.com/vechain-price-prediction-vet-set-to-break-56/

Continue Reading

Blockchain

How strong is the floor to Bitcoin’s price?

A volatile few weeks for the cryptocurrency market have instilled fear in the minds of investors, many of whom hadn’t anticipated the short-term sell-off. While Bitcoin’s price had recovered somew

The post How strong is the floor to Bitcoin’s price? appeared first on AMBCrypto.

Avatar

Published

on

A volatile few weeks for the cryptocurrency market have instilled fear in the minds of investors, many of whom hadn’t anticipated the short-term sell-off. While Bitcoin’s price had recovered somewhat to around $47,700 at press time, research from Chainalysis suggests that Bitcoin’s floor prices are stronger than before.

Philip Gradwell, Chief Economist at Chainalysis, explained that the floor of these recent price swings can be determined by analyzing the price level at which different types of investors entered the market.

Source: Chainalysis

Gradwell found that investors who acquired at least 1,000 BTC since the end of November 2020 have bought 1.7 million BTC at an average price of $35,000 per Bitcoin. “This recent and rapacious willingness to buy at this price level likely puts a floor on the Bitcoin price of at least $35k,” the analyst went on to observe.

According to him, the market has changed radically since the end of November. Prior to the same, larger investors held 1 million BTC at an average purchase price of $14.8k. However, the same set of investors has since entered the market to hold more Bitcoin at double the cost, with the Chief Economist adding,

“There is a far stronger floor to the price than ever before.”

Gradwell’s analysis can be further supported by a recent report from CoinMetrics. The crypto-market analytics research firm found that on-chain indicators showed signs of a key metric resetting, one with positive implications for Bitcoin.

Source: CoinMetrics

Bitcoin’s Spent Output Profit Ratio (SOPR) is a ratio of the price at the time a UTXO was spent to its price at the time of creation. Essentially, this estimates whether holders are selling at a profit or at a loss.

CoinMetrics found that while the BTC SOPR dropped below one on 27 February for only the second time since October 2020, implying that investors were capitulating and selling at a loss, it rebounded back above one on 28 February. What did this mean? Well, it suggested that the market is stabilizing once again, a finding consistent with Gradwell’s findings.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://eng.ambcrypto.com/how-strong-is-the-floor-to-bitcoins-price

Continue Reading
Blockchain3 days ago

Amplifying Her Voice

Blockchain3 days ago

Libra Coin – A New Digital Currency Developed by FACEBOOK

Blockchain3 days ago

Blockchain in Mobile Application Market

Blockchain4 days ago

Ethereum Layer 2 Development Investing Round Led by Union Square Ventures

Blockchain3 days ago

BaderDAO DeFi Protocol Launches Bitcoin Bridge with Ren

Blockchain3 days ago

Bitcoin Halving: Definitive Guide (In Just 5 Minutes)

Blockchain3 days ago

Kine Protocol to Launch Professional-Grade DeFi Derivatives Markets

Blockchain3 days ago

Santiment Reveals Top 10 Ethereum Projects by Developer Activity

Blockchain3 days ago

ECOMI to List OMI Tokens With BitMax

Blockchain3 days ago

BCH Likely to Slide Below $500 Soon – Technical Analysis

Blockchain3 days ago

US SEC issues a risk alert on digital asset securities.

Blockchain3 days ago

Blockchain in Sports Betting

Blockchain3 days ago

Fed’s Brainard Speech Offsets Bitcoin Crash Fears against Rising Yields

Blockchain3 days ago

Bitcoin (BTC) Recovers for Another Attack on $50,000

Blockchain4 days ago

Crypto Projects Continue to Partner With Sports Teams

Blockchain3 days ago

Ethereum’s Top 10 Whale Addresses Add 1 Million ETH In A Day, Evolve Files for Ether ETF

Blockchain3 days ago

Understanding Diversity in Crypto and Blockchain on Women’s Day 2021

Blockchain5 days ago

ADA & DOT Get Another Push From FD7

Blockchain5 days ago

Citi Research: Bitcoin is the North Star, Currently at a Tipping Point (March 2, 2021)

Blockchain3 days ago

Zcash Price Prediction: Will ZEC Price Rise or Crash?

Blockchain3 days ago

Refinitiv Collaborates with Indian Fintech Startup MarketsMojo

Blockchain3 days ago

Playtech Announces Appointment of Brian Mattingley as Chairman

Blockchain1 day ago

XRP ledger that supports CBDC coming soon

Blockchain3 days ago

Is Ethereum stronger than Bitcoin

Blockchain5 days ago

Wildcat Crypto: Will History Repeat Itself?

Blockchain5 days ago

New York Attorney General Calls on Crypto Industry to ‘Play by the Rules’

Blockchain5 days ago

Bitcoin price hits $50K after bullish outlook from Citigroup and Goldman Sachs

Blockchain5 days ago

This Little-Known Altcoin Is Set to Soon Explode, Says Popular Crypto Analyst

Blockchain4 days ago

ethbox to Launch Secured Transaction Support for Binance Smart Chain and Polkadot Ecosystems

Blockchain4 days ago

Bitcoin: Did 2020’s buyers cash in for profits?

Trending