GB Market Commentary 07/09/2021
by Will Morris
Bitcoin prices reached their highest levels since May 11th overnight, during Asia’s morning trading session. Resistance is likely to be found $55k and major resistance at $58k. A golden cross appears imminent on the daily BTC timeframe, as the 50-day crosses the 200-day moving average, this is a long-term bullish signal that appears when a more responsive moving average cross a slower one. In addition to this Glassnode stated that: “on chain volumes are showing continued growth in dominance by large, institutional sized capital.” Signalling continued institutional demand at current prices. The market has cooled off this morning, with most coins registering negative returns, BTC is down 0.6% over24 hours, trading at $51350 according to trading view at the time of writing.
Solana surged past previous ATHs, passing $50bn market cap and surpassing Dogecoin. Solanacontinues to demonstrate very strong technical performance, particularly in comparison to Ethereum. Nowhere is this more apparent than in the NFT market. Ethereum can currently handle around 30transactions per second while Solana can handle around 65,000 per second, these transactions settle in real time, in fractions of a second. When there is a surge in activity, such as when there is a popular mining of NFTs, those buying will encounter next to no fees on Solana but could face fees running into hundreds of dollars on Ethereum, when the network is highly congested.
Ethereum 2.0 is targeting 100,000 transactions per second – in the meantime Solana is already becoming a go to token for NFT minting, this only seems set to increase. Brett Robertson (interviewed on MoneyWeb) spoke of the staggering scale of financial products that will be introduced by Ethereumthrough DeFi. Going on to say: “If you are planning a new financial architecture to run the world, it’s now fairly clear that blockchain is the way to do it, and Solana is a real contender.”
Fantom is the top performing altcoin according to CoinMarketCap over the past 7 days, up 103.17%. Fantom is a directed acyclic graph (DAG) smart contract platform, providing DeFi services to developers using its own bespoke consensus algorithm. Fantom aims to solve the problem of transaction speeds inDeFi, developers have reduced this to under two seconds.
Today El Salvador officially makes history, as they become the first country to legalise Bitcoin as legal tender. They are also the first government to invest in the rapidly expanding crypto space. El Salvador'spresident, Nayib Bukele, has taken to Twitter announcing that the country now holds 400 Bitcoin. The country has a $150 million fund set aside for the adoption of Bitcoin as legal tender, showing appetite to continue purchasing. While this is a huge step forward for crypto, there is still backlash, with the WorldBank and International Monetary Fund stating that adopting Bitcoin could negatively impact their economy. As well as many El Salvadorans protesting, over fears around lack of information disseminated to citizens about what Bitcoin is and how they are able to use it in practice.