It comes as a shock to no one that the crypto ecosystem continues to expand at an accelerated pace. Between institutions rallying to meet public demand for crypto accessibility and blockchain platforms working to ramp up network capacity, growth is happening across the board for crypto, and some predictions are citing last week’s severe market correction as a positive indicator.
All eyes are on Ethereum as analysts observe a “cup and handle” pattern in the network’s market cycle, which occurs when an asset rallies and then sees a correction in the market, showing a dip with an upward curve to follow. Based on Harvard studies, these cup and handle patterns have a 68% success rate, giving Ethereum investors hope for the near future. (Cointelegraph)
Ethereum’s success garnered well-deserved recognition in the press this week, with Ethereum founder, Vitalik Buterin, making the list for Time Magazine’s 100 Most Influential People of 2021. (Decrypt) Buterin is mentioned as one of the top innovators of the world.
This past July marked the Ethereum network’s sixth anniversary, which seems a short-lived time for the amount the network has accomplished. Today’s thriving DeFi network, largely built on the Ethereum blockchain, and the brilliant strategy behind Ethereum 2.0 both serve as proof that Buterin continues to earn his bright spot in history. With that said, Ethereum didn’t get to where it is without some growing pains, and other networks that mirror its efforts are encountering the same struggles.
Solana, one of Ethereum’s main competitors, saw some churn after the network had a lapse as it was unable to process transactions. The mainnet eventually went offline when a major increase in transactions—up to 400,000 per second—overwhelmed the network and caused denial-of-service. This brief incident cost Solana 15% of its value over the course of 12 hours, but those in crypto know that this is the price of being popular and trying to scale blockchain technology. (Cointelegraph)
No one knows that problem better than Ethereum (hint: CryptoKitties). Arbitrum One, the promised Layer 2 solution to Ethereum’s own congestion issues, also experienced difficulties this week when increased traffic caused a bug that shut its sequencer down for nearly an hour. Despite the outage, the network continued to function and no funds were put at risk.
Arbtirum emphasized that the platform is still in its beta stage and that it would work to avoid these interruptions in the future, but maintained full transparency in the possibility of further outages as the network finds its initial footing. (Medium) Newer networks like Arbitrum and Solana have the benefit of being able to reference crypto past to provide realistic outlooks for users, and to quickly learn from their mistakes to prepare for the future.
As interest in crypto outside of Bitcoin continues to increase, so do the initiatives to fund those networks. Consumers and investors alike are hungry for crypto opportunities, particularly when it comes to smart contracts and DeFi. Anticipating a continued flood of popularity, these networks are seeing an outpouring of funding to make them as user-friendly and accessible to investors as possible.
For example, SkyBridge Capital, which revealed that it holds approximately $700 million in crypto assets, announced this Tuesday that it raised more than $100 million toward a new Algorand fund. Following suit, the Avalanche network announced just days later that it had garnered $230 million, “to support and accelerate the rapid growth of DeFi, enterprise applications, and other use cases on the Avalanche public blockchain.” (CoinDesk)
“Crypto is here to stay,” said SkyBridge founder and former White House Communications Director Anthony Scaramucci. “This is a lot like Uber—the regulators wanted to knock Uber out of business, but the people wanted Uber and the people won. Before long, there will be 200 million [crypto] users in the United States.” (Cointelegraph)
It seems increasingly likely that crypto finds a home in the most common parts of our daily lives and commerce. You can soon pay to see a movie at AMC theatres with Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. (CryptoPotato) Since the company’s meme-ification by WallStreetBets earlier this year, its stock has seen substantial increases, in part due to its move toward the future of crypto. As a wise person once said, “give the people what they want.”
In the midst of all of this rapid action, it’s easy to forget how new mainstream crypto adoption really is. We are still in its consumer infancy, as was noted by Scaramucci and as is apparent from the number of new use cases popping up every day. Imagine how much more growth will be possible once scalability issues are solved.
The growing pains we experience now are just steps to a better, more efficient, and scalable tomorrow. If you look at how far the internet and mobile technology have come in just the past 10-years, the potential for crypto growth seems limitless. And of course, the crypto revolution will keep expanding because crypto is for everyone.
Top market movers as of September 17, 2021
- Hedera Hashgraph (HBAR) +43%
- Avalanche (AVAX) +33%
- Cosmos (ATOM) +29%
- Sushiswap (SUSHI) +28%
Cointelegraph > "Morgan Stanley launches cryptocurrency research team"
All investments involve risk and the past performance of a digital asset or other financial product does not guarantee future results or returns. Cryptocurrencies are highly speculative in nature, involve a high degree of risk and can rapidly and significantly decrease in value. It is reasonably possible for the value of Cryptocurrencies to decrease to zero or near zero. While diversification may help spread risk, it does not assure a profit or protect against loss. Investors should consider their investment objectives and risks carefully before investing.