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The Bitbuy Brief: Trade AAVE And Link! Could ETH Flip BTC?
Article Author: Bitbuy Staff
Bitbuy Staff
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Issue 142: Trade AAVE And Link! Could ETH Flip BTC?

July 8th, 2021

New Coins Available On Bitbuy!

We’ve added two new tradable coins to Bitbuy! You can now buy, sell, deposit and withdraw Aave and Chainlink on Bitbuy.
Get AAVE or Chainlink now on the Bitbuy App, Bitbuy Express & Pro Trade, and Bitbuy OTC today!
Want to learn more about these two new assets? We’ve published some in-depth

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Weekly Market Recap 

 

 

Analysis: Another pullback in the last 24 hours brought most major coins into the red in the 7-day period. Bitcoin continues to hover in the 38K – 43K CAD range that it’s been trading in for the past 4 weeks. AAVE was up 44% on news they are debuting an institutional lending platform. Or… was it “the Bitbuy bump”?

Big Story: Could Ethereum Actually Flip Bitcoin?

After Bitcoin, many would agree the most well-known cryptocurrency is Ethereum. While many recognize it as second to Bitcoin in terms of market capitalization, recent statistics have proven the number of daily active addresses on its network have already overtaken the Bitcoin network.

The cryptocurrency analytics company, Santiment, determined Bitcoin’s total number of active addresses was 50,000 less than Ethereum, a decrease of over 38% in the last three months.

While active addresses are increasing, there is still a stark contrast in the market cap of the two assets.
However, The Chief Investment Officer of Digital Prime predicts that Ethereum will eventually flip Bitcoin in terms of market cap. The interesting thing is that talk of a flip is far from new. During the initial coin offering (ICO) bubble back in 2017, many analysts predicted Ethereum would one day overtake Bitcoin.
Although this didn’t happen then, there’s new reasons why it could eventually happen.
In a new report from Goldman Sachs, the company has given Ethereum, with a market cap of $250 billion, a high chance of overtaking Bitcoin as a “dominant” store of value. They believe Ether’s use cases currently possess the highest “potential,” being the most popular development platform for smart contracts.
The most popular two use cases recently being decentralized finance, a technology that replicates loans, interest and other previously bank-dependent products, and non-fungible tokens (NFT’s), a method for digitizing art.

Since the Ethereum network or issuance of Ether are present in both, a greater number of transactions can be noted, further proving Ether’s dominance. With more people adopting cryptocurrency, the rise of Defi applications has also grown to more than $63 billion. This growth can also be noted in app developers, who have been growing at 20x for the past six years.

A secondary development that may impact the price of ETH is the Proof of Stake (PoS) algorithm, which is believed to drastically reduce the required computing power to mine ETH. PoS allows ETH holders to stake their tokens and run lightning software to validate blocks. Selections are made randomly but give more weight to addresses with a higher stake. With less computational power required, it’s believed it will create more demand to stake ETH and thus send the price higher.

*This opinion piece is not investment advice, always do your own research.

Other Headlines & News

 

Ethereum Just Surpassed Bitcoin In A Key Milestone As Major Upgrades Help Spur Its Price Higher – Forbes
Visa Is Partnering With Over 50 Crypto Companies To Allow Clients To Spend And Convert Digital Currencies – Business Insider
Single.Earth To Link Carbon Credits To Crypto Token Market, Raises $7.9M From EQT Ventures – TechCrunch
China Crypto Ban A ‘Huge Opportunity For Canada,’ Mining Group Head Says – CoinTelegraph
Toronto Art Gallery To Host City’s First NFT Show – Blog TO