Short answer: Maybe, but probably yes.
Long answer: Keep reading for reasons.
Disclaimer: Not Financial Advice
It’s about that time of year when the days start to grow noticeably longer, the skies begin to clear up, and the thermometer inches ever slightly higher. And if you are in Lisbon, like BetProtocol is, you’re already outside in the sunshine with your laptop in a short sleeve shirt. But you’re not here to hear me brag about our awesome weather. You probably want to know if #CryptoSpring is a thing, or if it’s like “fetch” and simply not going to happen.
Here are our reasons why #CryptoSpring is here:
Reason #1: The Buidling Don’t Stop.
Turns out #ETHDenver was a huge success, and even though BetProtocol was not there, we were watching from afar, and were very impressed by the amount of #BUIDL going on. From burner wallets like XDai.io to easy to string together smart contracts without touching a line of code (watch out Cardstack!) we are seeing the building blocks of #DeFi really take shape.
Reason #2: Decentralized Finance is taking off.
MakerDAO continues to make waves by collateralizing 2% of all ETH in existence locked inside CDPs. Amazing.
We personally can’t wait for multi collateral Dai, allowing the market cap of Dai to increase and add way more liquidity to DeFi. As it stands, there’s a $100,000,000 hard ceiling.
Reason #3: Ethereum’s Issuance Reduction and Constantinople Upgrade
We know that any significant network upgrade is good for the price of any cryptocurrency, but add to that an issuance of reduction from 3 to 2 ETH per block, and well you can make the case for a bull run.
If you put Reasons #2 and #3 together, you see that the demand for Ether is increasing due to DeFi as collateral in the MakerDao ecosystem, while the new supply of ETH from miners is reducing permanently from 3 to 2 ETH per block.
Remember that for every $1 of Dai created, $1.50 of ETH needs to be collateralized. As the demand for Dai increases, the demand for ETH increases even more. And at a time when the issuance of new ETH from miners is decreasing. What do the economics majors among you say about this situation’s potential effect on the price of ETH?
Reason #4: The Bitcoin Bull Awakens
Crypto Rand, whom I trust as one of the best traders in the game, has called this as a major trend reversal for Bitcoin. Several technical indicators mentioned above confirm this. Bitcoin is still the largest cryptocurrency by market cap, and the whole crypto market still follows where it goes. Seeing Bitcoin break out of a long bear trend on high volume is a very positive sign.
Couple this with many bullish news coming out in the mainstream press, and it only gets better.
Reason #5: Sentiment in Mainstream Media has Turned
Nasdaq to Start Offering BTC and ETH Indices
The Nasdaq stock exchange will start offering real-time information on two new indices tied to the cryptocurrency…
JP Morgan rolls out first US bank-backed cryptocurrency to transform payments business
There are three early applications for the JPM Coin, according to Farooq. The first is for international payments for…
Galaxy S10 leak shows hole-punch display and cryptocurrency wallet
Following the first leak of the upcoming Samsung Galaxy S10 a few weeks back, more images have surfaced of the flagship…
The Nasdaq news of a curated price feed for Bitcoin and Ethereum is big. Very big. One of the reasons why there isn’t more institutional trading is the lack of an “official” price feed that institutions feel is free from manipulation. Do you really honestly think that a Goldman Sachs is going to use Coin Gecko or some similar service to get its price feeds? Look to see a significant uptick in institutional trading in Bitcoin and Ethereum with this addition.
And of course, there’s the JP Morgan news. Yes, Jaime Diamond, after calling Bitcoin a “scam”, is now making his own cryptocoin.
Oh how the tables have turned.
Time will tell whether or not JPM Coin will be a success or a failure, but one thing is for sure: it signals that the biggest institutions in the world are taking blockchain and crypto seriously, and shall also BUIDL.
Research shows that JPM Coin will be a stablecoin, and will run on Quorum, a private permissioned blockchain fork of Ethereum. In order for JPM Coin to be used outside of JP Morgan’s permissioned blockchain (like in interbank settlement, or on secondary markets and exchanges) JPM Coin will likely have to interact with public Ethereum.
The Samsung News is also quite interesting. The S10 will likely be an iPhone competitor, and no doubt will sell hundreds of thousands of phones, perhaps millions, all of which will have an Ethereum wallet pre-installed. There’s one word for that, and it starts with an “A”.
All in all, those are our reasons why #CryptoSpring is most likely here.
Do you have other reasons? Disagree? Put up a comment below!
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Thanks for reading!