Ethereum price rebounds despite losing 20% since the start of April
Pundits see ETH scaling down to a relative low of AUD$3,600 (US$2,700) over the coming few days.
- It is estimated that a sizable 3.3 million ETH will be burned annually after the network makes its highly anticipated transition to a proof-of-stake (PoS) consensus mechanism.
- The Cardano network has seen an influx of 100,000 new wallet addresses over the last 30 days alone.
- A number of KuCoin-backed firms have come together to launch a Web3-centric developer fund worth approximately US$100 million.
Ethereum, the world's second-largest cryptocurrency by total market capitalisation, has wiped out its weekly losses after gaining some positive financial momentum over the last 48-hour stretch. At press time, ETH is trading at AUD$4,154.
ETH's value has dipped by a whopping 20% over the last 21 days, hitting a relative low of AUD$3,900 (US$2,900) on 10 April. Technically speaking, the altcoin's fundamentals suggest that a larger drop may occur over the coming few days, potentially seeing the asset drop to AUD$3,600.
However, there are also those individuals confident of a trend reversal. For example, popular crypto investor Lark Davis noted that with Ethereum's supply growth to reduce by -2.8% post its upcoming PoS upgrade, approximately 3.3 million ETH will be burned per year, resulting in its value rising in the near-to-mid term.
Davis further noted that by the end of the decade, Ethereum's total circulation pool will dip to under 100 million. "Or put another way, we will burn the equivalent of all ETH currently sitting on exchanges," he opined.
Seeking Alpha analyst Kennan Mell shares a similar opinion. He believes that Ethereum's proposed network upgrades will most likely have a positive influence on investors, especially those waiting on the sidelines to accrue the asset from a long-term savings perspective.
Cardano adoption skyrockets over the past month
Despite the bearish market factors driving the crypto market at the moment, blockchain activity on the Cardano (ADA) network seems to be increasing at a rapid rate, with a total of 400 new projects reportedly in the works. Since 15 March, the ecosystem has seen an influx of 100,000 new wallets.
In all, there are now approximately 900 blockchain platforms that are being actively developed on the Cardano network. However, despite these growing numbers, ADA's recent price action has remained relative lacklustre, with the digital currency currently down 20% over the last 14 days.
KuCoin-backed firms deploy a US$100 million Web3 developer fund
Prominent digital asset trading platform KuCoin revealed that its venture capital and non-fungible token (NFT) wings have just launched a new creator's fund that will provide financial support for a range of NFT projects operating within the realm of art, sports and GameFi. The fund will also provide assistance to projects operating within the domain of Web3 development.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.