February 07, 2021.
Green is the color of the week in crypto and it's not only because of Bitcoin goes up, in fact we've seen a few new all time highs from the alts in the top 10 led by none other than Ethereum. And it certainly looks like we're in the alt season now.
Ethereum has been flirting with its all time high for a few weeks, testing the $1,400 level then backing off a bit. Well, the courtship is over and Ethereum is well into what seasoned traders called "price discovery". Of course it helps that Grayscale is scooping up tens of millions of dollars worth of ETH each day.
Grayscale bought about $38 million worth of ETH that brings their total holdings of Ethereum up to $4.2 billion. Grayscale is now holding about 2% of all ETH in existence.
DeFi is also definitely playing a role. DeFi coins like SOL, AAVE, UNI, UMA and COMP, have also reach double digit growth this week.
The recent Robinhood fiasco woke up a lot of people to how inefficient the current financial system is. Although it's a bit cliche to say that crypto fixes this, in this case, Ethereum could actually be a way to bring our financial system into the current century. Or, could it be Cardano?
Cardano wants to overtake Ethereum.
Cardano is a unique smart contract platform with a very different development framework compared to Ethereum. As we know, when Ethereum launched, it was a full functioning smart contract platform. Since day 1, anyone can create a custom token or build dApps in the Ethereum blockchain.
Cardano, taking a more measured approach, launched with almost no features. When it was, Cardano was just a dead simple cryptocurrency with little functionality besides sending and receiving payments.
Since that time though, the Cardano team has been slowly upgrading the platform. First, the staking was launched, and now the smart contracts.
Just around this month, Cardano will enabling their very first smart contract functionality that allows its users to create custom tokens and dApps.
With that big news, Cardano is surging! It's token, ADA, was up to 30+% in one day and it's currently trading at prices not seen since 2018. At this rate, Cardano is on track to overtake XRP in the crypto charts, which has never happened!
The UMA Protocol.
UMA is also an another cryptocurrency project that was pumping so hard in the last week of January. Although there's been something of a pullback in the last few days, at one point UMA hit $40 per coin. The price is more than 100% than its previous all-time high.
In case you've never heard of it, UMA is a protocol that lets users trade blockchain based assets that track the price of popular stocks. It's a cool bit of technology, and UMA has been getting a lot of attention since Robinhood shutdown trading on GameStop.
The Impact of Elon Musk in Crypto.
It's one common knowledge that Elon Musk is a Doge coin fan, but the billionaire's recent tweets are having more of an impact on the price than they ever did before.
With just a couple of tweets, Elon Musk has caused the price of Doge to go up by more than 500% in the last month, January, 2021. That's absolutely stunning, even by crypto standards, and it was enough to propel Doge into the top 10 cryptocurrency rankings for a short time.
We even reached a point where some people predicting 1 Doge would be worth $1 in the not too distant future. That never happened though, but Elon Musk isn't done tweeting yet either.
Of course, prudence demands that we asks;
Is it really Elon that's causing this massive spike?
Does Elon's Twitter account do really have that so much impact to what happened?
And the answer appears to be a yes.
The Blockchain Research Lab has looked into it and they've found that there is a strong correlation between what Elon Musk says to his 44 million Twitter followers, and what happens to the price of Doge.
Proposed legislation from India.
From a regulatory point of view, India has traditionally been very unfriendly towards cryptocurrencies. The Indian government banned crypto at one point, then that ban was overturned by the Indian Supreme Court and crypto became legal again. That was great news for crypto users in India, but it wasn't meant to last.
Last week, the Indian Parliament introduced a bill to ban all private cryptocurrencies while simultaneously clearing the way for a national, government approved state currency.
Indiawantsbitcoin.org - a community website that allows Indian people to reach out to Parliament and also to leave a comment on the bill. Crypto users fro America has able to create a difference by commenting on the act, and hopefully Indians can team up together to let the Indian government know that their people want to keep using crypto.
Bluford Putnam to Bitcoin.
Bluford Putnam, who is the managing director of the CME Group, has said that he believes Bitcoin could be an "emerging competitor" to Gold.
That's hardly news for anyone in cryptocurrency, but it's really cool to hear someone from deep within the financial establishment acknowledging this fact.
More people are waking up to this digital hold narrative and as the threat of inflation looms large, things could really start to get interesting in crypto space later this year of 2021.
Lead Image: Crypto News.
Wow this is really wonderful dear
Thanks you so much for sharing
This is really great post because I have learn alot of thing
Again thanks 😊