Expert analysis: Is Ethereum’s price recovery signal the start of a new bull market?
Ethereum’s 30-day gains are currently more than 25%.
- Ethereum’s (ETH) adoption has continued to increase despite its recent volatility woes.
- Social media platform Reddit recently announced that it has adopted an ETH-based L2 solution to help scale up its ‘Community Points’ system.
- The last 5 days have seen the total market capitalization of the crypto industry rise from $1.28 trillion to over $1.57 trillion — a 20% increase.
After more than a month of intense bearish action, the world’s second-largest cryptocurrency by total market capitalization, Ethereum, has once again started on its path of upward ascent. The premier altcoin is currently showcasing weekly profits of around 20%. At press time, ETH is trading for $2,285.
Providing her insights on the matter, Katia Shabanova, founder of Forward PR Studio, told Finder that at this point, Ethereum powers an astronomically large ecosystem of platforms and protocols that seems highly unlikely to fail or implode anytime soon. As a result, more positive price movements could quite easily be witnessed in the near term, adding:
“Despite the technology having certain limitations, there is a huge army of supporters who want to scale and make it better. The growing number of use-cases and L2 DApps will surely continue to reflect on ETH’s positive price action and popularity in the long run despite the current market volatility.”
Reddit adopts L2 solution
Amidst a market-wide rally of sorts, social media platform Reddit released a statement recently announcing its decision to adopt a scaling solution called ‘Arbitrum’ to help scale up — as well as streamline — its hugely popular Ethereum-based Community Points system. On a more technical note, Reddit administrator jarins revealed that the aforementioned system has been launched atop the Rinkeby testnet and will eventually be migrated onto the Ethereum mainnet.
Reddit’s reasons for adopting Arbitrum are manifold. For starters, the offering is highly decentralized and developer-friendly. Not only that, it also has the ability to “roll up” transactions onto a gasless sidechain that is able to operate independently.
Major artists continue to board the NFT bandwagon
There is no denying that with the advent of non-fungible tokens (NFTs), artists all over the globe have been afforded the ability to greatly increase their overall market reach and presence. For example, through the use of these novel blockchain-based digital assets, it is possible for artists to maintain ownership of their work while gaining access to various royalty streams accrued from sales made via secondary markets.
This paradigm shift has resulted in an increasing number of mainstream artists — including the likes of Damien Hirst, Philip Colbert, Huang Heshan, amongst others —starting to focus more of their efforts on this growing market.
Since July 21, the total market capitalization of the digital asset sector has risen from $1.28 trillion to $1.57 trillion, thus showcasing a growth of nearly 20%. Not only that, as per the inaugural 2021 Independent Reserve Cryptocurrency Index, or IRCI, which took into consideration the views of 1,000 Singaporeans, nearly 43% of all individuals living in the country revealed that they own some crypto asset or the other. This striking data provides a clear glimpse into the crypto adoption wave currently sweeping the planet.
Disclosure: The author owns a range of cryptocurrencies at the time of writing