If anyone looked at Ethereum's chart a week or two ago, it looked awful:
With a double top and a sharp decline on the weekly chart, it seemed like it can't hold to any support. Now it temporarily bounced from another support line, but is this a reversal or another dead cat bouncing?
I don't know...
What I do know is that the crypto market - including alts - sort of stabilized lately, and if good news follow, they might go back up. My crypto holdings are very biased for this alternative so, if the other happens until the end of the year, I won't be happy.
Regarding Ethereum, I am not very well informed about the security of new chains, so... is it still considered one of or the most secure big chain besides Bitcoin? Here I am not talking about ETH hacks and things like that, which happened recently either on CEXes or maybe (although I'm not aware) at the level of certain smart contracts where people lock their funds. By doing either of those operations, people send their ETH or other crypto to another entity (CEX or smart contract), so it's not in their possession anymore until they claim it back to their self-custody wallet (if they do). And the hacks happen at those ends, usually, so it's not really Ethereum base-layer's fault.
Sure, what most people don't like at Ethereum (including myself) are the fees. But when moving enormous amounts of money, that fee is small, if the security provided and the liquidity is the highest one can find.
The biggest stablecoins, USDT and USDC, are multi-chain now. They both started on Ethereum, and probably still experience their highest volumes there.
I don't know if there could be a big enough stablecoin that could ignore Ethereum, if it works on the existing public chains. If it's on a private chain, maybe, but they'd be trading more market share for more control and non-public transactions. I'm sure there will be enough of this kind of stablecoins too.
But from the stablecoins that will work on public blockchains, the biggest ones will be at least partially be on Ethereum, most likely.
Now... The EU has crypto regulations (awful ones - worse than banks - and more awful ones are coming regarding digital IDs), UAE has some crypto regulations, the US is getting ready to create their own stablecoin regulations.
Once everything is clear, I expect more stablecoins to pop up, some from major corporations (Meta?, X?, Apple?, Amazon?, Microsoft?, banks?, retailers? etc.). If China jumps onto the stablecoin's train (although I doubt they'd support USD-based stablecoins), their major corporations could adopt them in no time. However, China has the digital Yuan, at least for the internal market. But for export, they'd need something else...
As you can see, many of the corporations I listed above could be waiting for the American regulations on stablecoins, if they are interested in adopting them. If only a fraction of them end up on Ethereum (or any other existing big chain), that's almost a guaranteed bull crypto reason. Imagine Meta releasing a stablecoin (or even announcing it). They tried before, but back when crypto went under the crackdown period, so that didn't work out for them. But how about now? 2bn users or how many they have using a US-backed stablecoin. Why would they be stopped... again, by the Americans?
Sure, in their first attempt, they created their own chain. Even that would be ok, as I imagine it would interact with the rest of crypto.
Well, if WW3 won't start (and chances are it won't... for now), we have good chances to see a good end of the year in crypto. But it depends how fast Americans move with these regulations and how bad they are, because they are unlikely to be good, like many regulations...
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IIRC most of the stablecoin transactions happen on Tron because it is feeless blockchain (which mostly copied EOS). Politicians are buying ETH likely because they have some plans for Ethereum in terms of government involvement.
Feeless, but who can trust it for something serious?
Trump jr surely shills it and they buy. I doubt they do that to lose money.
Other DPoS blockchains can do the same. We already have wrapped assets on HIVE-Engine. The trick is getting the marketshare. I don't think large players will have a lot of trust in Tron, but Justin Sun can shill his way into retail and get everyone to use Tron a little bit. The users and volumes can add up over time.
Man, Ethereum always feels like that old, expensive VIP club, the high fees, but still where all the big money hangs out. If stablecoins keep using it, ETH ain't going anywhere soon. But yeah, cheaper options are creeping in so things can change
It does look like an old expensive VIP club sometimes... Thanks for dropping by!
welcome, great article
I think those regulations will take a while to go through. I don't think the effects will be so great unless it passes in Congress, and that is a very slow process.
Hmm, while I'm not a fan of regulations or of corporations swarming into crypto, this is one way for the bull market to "restart". Another is to have great news like... peace in Ukraine, for example? But not with too high costs, or it would be considered a bad peace then.
Corporations launching stablecoins will be a great positive sign for crypto, I think as an effect more retail users will be onboarded to crypto and have the ability to explore the wider ecosystem. I've heard Eth is also becoming the dominant player in RWA, when that sector picks up, Ethereum will further solidify its position within crypto and lead us to the bull summer :)
Good point! They need very good security for RWA, which would make Ethereum a great candidate despite the high fees, which aren't so big when we talk about RWA.
Personally I only trust USDT as it has a proven track record. I don't doubt that some shiny stable coin might pop up, infact I think it's only a matter of time though, but then, I'm part of the people who only trust the old coins and the older projects that's stood the test of time.
Ethereum price chart gas been truly horrible, and after some crab walks for a few weeks, it's dipping again
I'm sure we will have stablecoins to rival or even overtake USDT. Then, it only depends if you trust their issuers or not, because otherwise all major stablecoins have some hidden or known strings their issuers can pull when they need to.
I know, I understand. Perhaps it's just my inner trust issues lol. I feel like going forward, we'll have more scam in crypto rather than more quality project
I don't like eth as well, gas fee are riducolous
Yes, they are. But for very big transactions, they are a good option. Still, the more newer cheap and quick alternatives come out, the harder will be for Ethereum.
I think ETH is considered as one of the expensive stable coins due to its higher gas fees
It's not a stable coin. Maybe you meant stable coins on Ethereum? In this case, yes, maybe the high fees make a stable coin on Ethereum more expensive than elsewhere.
I am not a big fan of ETH because of the fees
Neither am I, but it kind of signals when alt seasons happen.
for me these regulations can have an effect on the status of the crypto for the year
They could have. But we will see what happens.
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