As Bitcoin toys with a $50,000 price, retail traders are looking for more positive signs that the historic September slowdown for the crypto market is a thing of the past.
Will this September be different? There are several factors that could help the digital currency market break free of its past.
First, altcoins are surging, led by Ethereum.
Think about it — one year ago today, Ethereum’s native coin Ether (ETC) was trading at $376. Today, it’s hovering just below $4,000, which is a 1000% increase. Despite its high fees or gas prices, Etherum remains the go-to blockchain for DApps (decentralized applications) including NFTs or Non-Fungible Tokens which caught on this year after a piece of NFT artwork sold for $69 million at a Christie’s auction.
Changes to the Ethereum network are also attracting investor attention. Recent upgrades and the anticipated more to the Proof of Stake protocol.
“NFT sales are usually based in Ethereum, which together with excitement over the London Hard Fork and all the Ether tokens going up in smoke recently, has sent prices on a bull run,” one enthusiast wrote on Trading View’s blog. “Things are looking so promising, in fact, that analysts are predicting that Ethereum may overtake the OG Bitcoin.”
Traders can’t help but be encouraged by the American actress Reese Witherspoon, who tweeted to her 2.9 million followers today, “I just bought my first #ETH! Let’s do this #cryptotwitter!”
Other altcoins are gaining ground as upgrades to networks improve capability.
No doubt, altcoin developers have recognized that upgrades to their networks that streamline processes, provide new capabilities, and lower fees whenever possible are making their platforms more attractive — as well as attract attention.
Cardano’s ADA coin bumped up past $3 this week as developers announced smart contracts could be built on its Alonzo upgrade, which is currently in its test phase. The full launch is expected at the end of the month. ADA has the third-largest market capitalization in the crypto universe.
Solana, which calls itself the fastest blockchain in the world, saw new gains in its SOL coin as well as it moved down the same smart contract track as Cardano.
“Solana’s stunning rally this past week has headlined growth among a slew of so-called altcoins, or cryptocurrency alternatives to market leaders bitcoin and ether,” wrote Jonathan Ponciano of Forbes.com earlier this week. “Solana’s support for smart contracts has helped it take advantage of the buzz around NFTs and DeFi, but other players have signaled plans to dive into the space as well, with Cardano, for example, planning to launch a software upgrade next month to begin processing smart contracts.”
Dogecoin (DOGE), the meme coin that became a real coin, released an upgrade in August that has bumped along as node developers were slow to implement. Nonetheless, the coin, which was trading around $.0003 a year ago, is now commanding $30 and boasts a market cap of almost $39 Billion.
And a US bank announced this week the launch of crypto banking services.
“Now available to U.S.-based consumers, this service represents another groundbreaking milestone for the bank, which earlier this year became the first in the country to offer customers the ability to purchase and sell cryptocurrencies alongside a traditional checking account,” the announcement said.
The locally and family-owned bank changed its twitter description to “Still a bank. Now offering crypto services.”
So, what will we see this September?
Looking back a year ago, the crypto market was vastly different than it is today. DeFi (decentralized finance) has gained new ground and respect. NFTs opened the eyes of millions around the globe as to the value of blockchain technology, which furthers the acceleration of crypto adoption. Upgrades to networks are enhancing the value of platforms. With all the activity in the market, some analysts see September with new eyes, especially as Bitcoin and Ethereum fundamentals come into play. On-chain analysts Glassnode point to “the divergence between low on-chain activity and strong supply dynamics for $BTC and $ETH” as providing provocative insight for September.
“Whilst the divergence between price and on-chain activity is historically abnormal for a full scale bull market, it is not an uncommon signature for the pre-bull, and pre-supply-squeeze dynamic,” Glassnode wrote in its weekly newsletter. “These periods often accompany the end of bear market accumulation where the investors who remain, are the strong hands, those with the highest conviction.”
Bitcoin Archive’s tweet summed September up: “Go away, bears.”
Joyce Pavia Hanson Contributor
Originally published at https://stex.com on September 4, 2021.