Displaying items by tag: Ethereum

GUANGZHOU, China — The value of the cryptocurrency market topped $2 trillion for the first time on Monday driven by a rally in ether, the second-largest digital coin.

In just over two months, the market capitalization of the cryptocurrency market has doubled, according to price tracking website CoinGecko, as retail and institutional investors pile into the space.

 Bitcoin, the biggest digital currency, accounts for over 50% of the entire cryptocurrency market capitalization. Bitcoin has rallied over 100% this year alone, and that has helped drive the cryptocurrency market higher.

Last month, bitcoin hit a record high of above $61,000. The digital coin was trading at about $58,800 on Tuesday, according to Coindesk data.

Ether rally

But the latest boost in the cryptocurrency market appears to have been driven by ether, the digital coin that powers the Ethereum blockchain.

Bitcoin also runs on a technology called blockchain which is a public ledger of activity and a way for transactions to take place using the cryptocurrency. In comparison, the Ethereum blockchain is more like a software platform that allows developers to build apps on top of it. Users can then spend ether on these apps.

So-called smart contracts are a key feature of Ethereum. These are contracts that can be automatically executed using code.

There is growing excitement about the use of Ethereum in so-called decentralized finance, or DeFi, applications. These are blockchain-based financial services, such as lending, which could in theory bypass banks and brokerages. Users of these apps may transact using cryptocurrency.

Ethereum also has the underlying technology behind the recent craze in non-fungible tokens, or NFTs — a new type of digital asset.

Bitcoin has fallen from $61,683.86 to 9.57% within a seven day trailing period. 

The MarketWatch reported the opinion of the market analyst at ThinkMarkets, Fawad Razaqzada, "Judging by recent events, traders seem happy to be selling into the rallies rather than buying the dip.

So, don’t be surprised if we see renewed weakness in the markets later on in the session"

The Analysts expected the downwards momentum to continue and warns that BTC may breach the $50,000 levels.

MarketWatch reported that Razaqzada has urged Bitcoin traders to exercise caution, in his words “appetite for risk” is slowly fading, .

Some are of the opinion BTC’s decline is the expiration of $5 billion worth of options, due on Friday, as per Ai.

According to the analyst, the expiration of contracts and some investors pushing the price lower to make money from bets against the cryptocurrency in the options market “have led to spot-selling pressure into quarter-end.” 

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