It appears Ethereum has moved past Ripple’s XRP in the crypto rankings. This is significant for a couple of reasons, the first being that at one point, XRP did overtake Ethereum as the second-largest cryptocurrency by market cap. Granted this didn’t last long, it caused many to view XRP’s prospects in a different way and see it as one of the world’s most powerful new assets.
At the time of writing, many cryptocurrencies have enjoyed newfound success and price spikes over the last week. Bitcoin, for example, has been trapped in a $3,400 slump over the past few weeks, though it’s now trading beyond the $3,600 position. Analysts believe $3,800 is doable by the end of the month, though we probably shouldn’t get our hopes up fully until bitcoin passes the $4,000 mark, as this is where resistance still prominently lies.
Bitcoin Ethereum Oversold
However, bitcoin isn’t alone in its “revival.” At press time, Ethereum has expanded in price by roughly three
Mati Greenspan – a leading analyst with e-Toro – states:
“Crypto price movement over the last week has been encouraging, with Litecoin experiencing an impressive price surge of around 40 percent overall, but it’s important to remember that we’re not out of the bear market just yet. While some might argue that the bears are weakening, bitcoin still needs a strong breakout above the psychological level of $5,000 before the bulls can sharpen their horns in earnest.”
What’s Happening with Ethereum?
One of the significant facts revolving around Ethereum’s sudden jump is that many Ethereum-based applications remain largely unused. A new report suggests that of the 1,300 live decentralized apps (dApps) built through the Ethereum Network, approximately 86 percent have virtually no users. In addition, it states that only about seven percent of Ethereum dApps had any transactional volumes over the past 24 hours.
Many believed that the next bull run in the crypto space wouldn’t occur until more people began using cryptocurrency-based applications, but this report suggests otherwise. In fact, few reasons are offered as to why cryptocurrencies are suddenly on the rise, though plausible reasons can be found if one looks hard enough.
Why Jumps May Be Happening
One for bitcoin comes in the form of Venezuela. It was recently reported that bitcoin transactions and trades are at an all-time high in the South American country despite its price drops of the last 13 months. Venezuela has been swamped with financial trouble since its national currency – the bolivar – fell in value thanks largely to rampant inflation.
To potentially ease the conditions of the country’s falling economy, a cryptocurrency known as the petro was introduced, though the coin has been swamped in controversy since its earliest days. Despite several claims that the currency would be backed by the country’s many oil reserves, the petro’s whitepaper makes no mention of this. It was also stated by President Nicolas Maduro that the petro garnered billions of dollars in sales through its initial coin offering (ICO), but this claim has also been called into question.
Is BTC the Answer?
The petro has not paved the way for Venezuela to reach financial greatness, which is why many are still resorting to bitcoin for their financial needs. It was recently shown that more than 2,400 BTC are traded in an average week in Venezuela, which is equivalent to about $8.9 million given bitcoin’s present price.
The only main currency that remains in a standstill is XRP despite ongoing developments (including one suggesting it may join hands with longtime payment rival SWIFT).