Home Technology Four Signs That Crypto Is Recovering From the Latest Crash

Four Signs That Crypto Is Recovering From the Latest Crash

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The crypto market’s recent crash caused $1.3 trillion to be wiped from the industry’s collective market cap, but amid the terrifying red candles and general panic, there are signs that it may have turned a corner. Whether it’s bitcoin regaining $40,000 after dropping to near $30k, or Goldman Sachs making a bullish case for Ethereum or adoption by leading investors and celebrities, there are reasons to be positive in both the short and mid-term.

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Q1 2021 hedge fund letters, conferences and more

Goldman Sachs Advances Bullish Case for Ethereum

Speaking of the number two cryptocurrency, on-chain data shows that the ETH balance on digital asset exchanges has returned to pre-dump levels after losing close to 50% of its value during the sell-off.

On a week-by-week basis, ETH looks incredibly stable – and a leaked report by US banking giant Goldman Sachs is nurturing the feel-good factor.

In a section entitled ‘Ether beats bitcoin as a store of value,’ the report acknowledges that most defi applications are being built on the Ethereum network, and that ‘most non-fungible tokens (NFTs) issued today are purchased using ether.’

The report goes on to predict that as crypto use in defi and NFTs becomes more widespread, ‘ether will build its own first-mover advantage in applied crypto technology.’

Although Bitcoin’s market cap is over double that of Ethereum’s at present, the launch of Ethereum 2.0 – whereupon the network will transition to a ‘greener’ consensus algorithm (Proof of Stake) and improve its throughput – could well see the price rocket, particularly given rising concerns about crypto’s energy consumption. Watch this space.

Live-Streamed Celebrity Charity Poker Tournament Takes Place On-Chain

Decentralized peer-to-peer platform is hosting a charity tournament featuring a range of high-profile players, including NBA Hall of Famer Paul Pierce and poker legend Phil Ivey. ConsenSys founder Joe Lubin as well as also has a place at the 12-man table.

The live-streamed tournament is licensed by the Malta Gaming Authority and will shine a spotlight on yet another use-case for the Ethereum blockchain: provably fair gaming. The popularization of blockchain-based betting would certainly be bullish for Ethereum as well as other networks (TRON, EOS, WAX) that can facilitate it.

Virtue Poker is backed by several crypto-focused VC funds including ConsenSys, DFG Group, Digital Strategies, Fenbushi Capital, Flurry Capital, JRR, Pantera Capital.

Mark Cuban Invests in Layer-2 Network Polygon

Mark Cuban is no stranger to the cryptosphere: the billionaire Dallas Mavericks owner regularly pops up at blockchain conferences and expects Ethereum to eventually surpass Bitcoin. His latest investment, however, is in layer-two network Polygon (formerly Matic).

Polygon, which helps users avoid Ethereum’s excessive gas fees, will also integrate into Lazy.com, a Cuban portfolio company that facilitates NFT display. The network’s native asset has been one of the year’s best performers, with its price having appreciated more than 9,535% this year.

There are now hundreds of projects building on Polygon’s scalable defi ecosystem, and over $6.5 billion of Ethereum and ETH-based tokens locked within its smart contracts.

The latest crypto crash may have left blood in the ring but the bulls aren’t ready to call time just yet.

Bitcoin Mining Council to Mobilize Against Energy Critics

The formation of the Bitcoin Energy Council caught some people by surprise:  rarely does an outbreak of FUD inspire such a tangible response. However, the creation of the Bitcoin Energy Council was born of a desire to help shape the narrative around the asset’s energy usage according to Bitcoin bull Michael Saylor.

Last week, the MicroStrategy CEO put Elon Musk in touch with a handful of North American miners to create a loose collective committed to publishing energy usage data and addressing environmental concerns.

Musk described the move as “potentially promising,” and the value of bitcoin bounced in seeming acknowledgement. Although the mining community is disparate – the BMC controls just 10% of the hashrate – the fact that some miners are finally wrestling with the energy question can only be a good thing for the industry’s reputation, not least as it may appease regulators.

Saylor stated that the Bitcoin Mining Council could also help to combat the views of those who are “hostile to Bitcoin and hostile to the crypto industry.”

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