simon peters is a market analyst at eToro
Bitcoin remains above $20,000, having briefly crossed $22,000 for the first time since mid-June last week, and continues to show signs of resilience.
The cryptocurrency has been moving in this zone for over a month now, putting an end to the steep declines seen at the beginning of the year. BTC is currently trading around $20,200 on the eToro platform.
Similarly, Ether has risen between $1,000 and over $1,200 since its sharp April-June drop and is currently trading just above $1,100 on the eToro platform.
All eyes are now on Ether as the meltdown of the Ethereum network approaches. Major testing has gone smoothly and all indications are that it will happen soon. While it is impossible to know what effect moving to a proof-of-stake network will have on the price of cryptoassets, it is theoretically deflationary as it encourages holders to bet rather than sell their tokens.
While crypto asset price levels are well below last year’s highs, performance is normalizing and most tokens on eToro have shown more stability in recent weeks.
The message for investors right now is to sit still and watch the market. We view steady institutional moves and continued industry growth as a key indicator that the game is not over. However, it is important to remember that diversification within the industry, as with any asset class, is key to risk diversification.
Venture capitalists looking for opportunities in cryptocurrencies
Venture capital firm Konvoy has launched a $150 million fund to seek blockchain-based gaming opportunities. The fund’s launch is a prime example of the underlying interest in the blockchain and crypto asset markets, despite ongoing market adversity.
Konvoy caters to a fairly specific segment of the cryptosphere in gaming and blockchain, but both are part of a growing industry without a lack of exciting innovations. Gaming is a huge industry and blockchain-based projects are a growing part of it.
In recent weeks and months, we have seen examples of venture capital and other interest capital flowing into the financing of crypto projects. While this is neither a drop in the ocean nor a market-making proposition, it is clear evidence to investors that despite the low market valuations, there is still potential for future investment in the sector.
Fund managers push for access to blockchain funds
Fund managers are requesting access to blockchain technology to help leverage ledger technology in fund trading. The comments from the Investment Association (IA) are a call to action at a time when blockchain and crypto in general face a number of challenges.
IA says it would like the UK to introduce a new category of “blockchain-traded funds” that use distributed ledger technology to execute and record transactions. In many ways, this grouping is the representative of the old-school fund management industry, so it’s very encouraging to see them pushing for blockchain solutions.
What is clear here is that a key representative of the TradFi industry sees the value of blockchain technology and would simply like to use it. In the current circumstances, this is a very positive signal for the crypto asset sector, which aims to provide this type of infrastructure solutions.
Reddit launches NFTs
Popular digital discussion forum Reddit has launched NFT avatars and a marketplace to get them. While Reddit isn’t the first nor the last to enter the space, it has a sizable user base and is likely to build on that as an entry point to more crypto technologies for its platform.
It is not the leader in this regard, but it is a positive indicator that the market is still there. NFTs have had a bumpy ride since they gained real notoriety among the public. There is a big debate about the direction of the industry and the quality of certain offerings, but it is ultimately no different from the early days of crypto, which is now much more developed and sophisticated in terms of ideas and ideas.
With any emerging market, there will be teething troubles, but the ideas and innovations remain relevant and organizations like Reddit are taking the opportunity to participate regularly, allowing the space to grow organically over the long term.
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