Crypto Market Analysis: 6th September 2021

Ether is closing in on all-time highs while Bitcoin has reached above $50,000 for the first time since mid-May.

ETH surged in the last week coming close to breaching the $4,000 level. The cryptoasset began the week below $3,200 but rose quickly through the week, reaching $3,981 by Friday. Over the weekend gains have flattened but remain trading in this range.

A confluence of factors is contributing to the rising price of  ETH. ETH burning, staking, gas fees, transactions and locked away tokens on DeFi are all working in concert to support price levels.

BTC meanwhile has hit above $50,000 for the first time since mid-May. The cryptoasset started the week with falls to below $47,000 before rallying midweek above $50,000. In early trading today BTC has surged again, closing in on $52,000.

ETH inflation rate down sharply

The rate of inflation on cryptoasset ether (ETH) is plummeting according to crypto research firm Delphi Digital.

For the first three weeks of August, according to the Delphi Digital data, ETH’s inflation rate hovered just below 3%. This rose to touch 3% around 23 August before collapsing totally by the end of the month.

ETH’s inflation rate was around 0.5% as of 31 August. This is largely down to the increase in burning of ETH tokens, with some 150,000 ETH burned since the EIP 1559 ‘London hard fork’ was implemented.

The downward movement of ETH’s inflation rate is indicative of earlier predictions that the cryptoasset could become deflationary. As more ETH in the network are burned, scarcity will increase. As this scarcity rises, it could have significant further effects on price levels.

Twitter may soon accept BTC for digital tips

Twitter users could soon be able to tip their favourite tweeters in BTC or ETH.

The firm’s product lead Kayvon Beykpour confirmed that the social media network is looking to integrate Bitcoin’s Lightning Network to the platform.

Twitter has begun testing a new feature for content creators on the platform called ‘tip jars’ where users with over 10,000 followers can monetise their tweets and receive tips from followers.

Inclusion of the Lightning Network would allow users to tip content creators in BTC.

85,000 Swiss merchants can now take crypto payments

Payments provider Worldline has made crypto payments accessible to 85,000 merchants in Switzerland.

The service is set to be provided by Worldline in partnership with Bitcoin Suisse, a regulated Swiss crypto trading platform.

The partnership will allow some 85,000 Swiss merchants accept payments in bitcoin or ether at the point of sale. For prices quoted in the local fiat currency the Swiss Franc (CHF), instant price conversions to BTC or ETH can be made using the WL Crypto Payments mobile app.

 

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All contents within this report are for informational purposes only and does not constitute financial advice. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.

 

Image by Miloslav Hamřík from Pixabay