Ethereum’s price action heats up with overnight gains of 8% – here’s why ETH may surge further
Thanks to its most recent push, ETH's weekly gain/loss ratio now stands at +0.4%.
- Since the implementation of August's London Hardfork, more than 1 million ETH have been burned (worth approximately AUD$5.90 billion).
- Twitter and Square CEO Jack Dorsey recently announced the release of a whitepaper for a new decentralised trading platform called tbDEX.
- The past week has seen the DeFi market lose 3% in value.
After scaling as low as AUD$5,600 recently, Ethereum, the second-largest cryptocurrency by total market capitalisation, has gone on a tear, following closely in the footsteps of Bitcoin. Over the last 24 hours, ETH has gained 7.4% in value, with the altcoin currently trading at a price point of AUD$6,060.
Ethereum's ongoing ascent comes at a time when a little over 1 million ETH have been burned following the currency's much-hyped London Hardfork that was meant to help alleviate many of the network's transaction and high gas fee woes. Since August of this year, Blockchain analytics platform CryptoRank revealed that Ethereum worth nearly AUD$5.90 (US$4.24) billion has been burned, putting added deflationary pressure on the altcoin.
Furthermore, Jack Dorsey, CEO of all-in-one payments platform Square, recently announced the release of a whitepaper that seeks to help in the creation of a decentralised exchange tentatively called "tbDEX". As per the document, the proposed exchange will make use of a so-called "messaging protocol" that utilises a public key infrastructure instead of a trustless model. On the development, Dorsey was quoted as saying:
"Our goal is censorship resistance, un-permissioned access and the maximization of competition for liquidity – with the ultimate goal of commoditizing it around the world... nothing in principle precludes anonymous transactions for financial privacy on the tbDEX network."
Vitalik Buterin proposes a new change to curb rising gas fees
On 27 November, Ethereum co-founder Vitalik Buterin announced that he will be introducing a new proposal that seeks to put a limit on the total transaction calldata, effectively bringing down gas costs for everyday users by a substantial margin. The solution, even though short term, will help ease many of the transactional bottlenecks facing the ETH ecosystem at the moment.
DeFi market loses a little momentum amidst a marketwide selloff
As per data available online, the total value locked (TVL) across the global DeFi landscape has dipped by 3+% over the last 7-day stretch, bringing the metric down to around AUD$216 billion (approximately US$155 billion). A majority of the top 100 DeFi tokens have seen their values drop over the above-stated timeframe, with Basic Attention Token (BAT) Curve DAO Token (CRV) and Ankr (ANKR) being the only ones to record substantial gains.
Disclosure: The author owns a range of cryptocurrencies at the time of writing