All in all, crypto has been a game-changer for Nigerians, and it will only get bigger!Īre you ready to hop on the crypto wave and start making money from it? It is never too late. With crypto, we can transact with anyone, anywhere in the world, without the need for middlemen, and it’s great for startups and small businesses in need of funding. It has helped us in many ways, from protection from inflation, currency devaluation and much more. We all know Nigeria does not have the most stable economy, but we Nigerians have looked to crypto to give us leverage. ![]() ![]() We have witnessed the boom of crypto globally, and Nigeria has not been left off the group chat.ĭespite the limitations of the Central Bank of Nigeria, Nigerians have been at the front line of cryptocurrency adoption in Africa, with millions of users. The first ever cryptocurrency was launched in 2009, and fourteen years later, crypto has experienced massive growth and adoption worldwide.įrom being accepted as legal tender in countries like El Salvador to being accepted as a payment method by businesses worldwide, digital currencies have proved they are here to stay and thrive. ![]() The remaining almost 90% of Ethereum is being held by wallets controlled by users. Investors often tend to move their digital assets from centralised exchanges to cold wallets at the slightest controversy.Īccording to on-chain analytics provider Santiment, the total supply of ETH held on exchanges is currently at its lowest level since July 2015, with only 10.31% of existing ETH available. Commodity Futures Trading Commission (CFTC) to sue the exchange for allegedly violating trading regulations. A process that was intensified in November during the FTX meltdown, which undermined the trust in centralised platforms.Ī similar scenario also played out with Binance on Tuesday when more than 3000 BTC was withdrawn within 24 hours from the platform following a threat from the U.S. It is worth noting that consumers have started moving their Ethereum holdings en masse to self-custody addresses since September last year. Key protocols, such as Coinbase’s BASE, Arbitrum, and Optimism, have found their unique niches within this landscape.Īccording to data from L2Beat, the total value locked in layer 2 protocols has surged more than threefold in just two years, reaching an impressive milestone of over $9 billion.ĭata shows that nearly 90 percent of Ethereum supply has left cryptocurrency exchanges for cold wallets or staking polls. The emergence of Layer 2 technology has undoubtedly become one of the most dynamic and exciting developments in the crypto market. In essence, this analysis challenges the perception that Ether might be overvalued, as suggested by the traditional Metcalfe law Model. Harland continued, “The updated model, which factors in these networks, places ETH’s valuation at $275 billion, indicating that the current market capitalization is trading at a substantial 27% discount.”Įther’s market capitalization consistently tracks the blended Metcalfe law model more accurately than the traditional model, which fails to consider the growing activity on layer 2 networks or offchain solutions built atop the Ethereum mainnet. Lewis Harland, an analyst at RxR, explained the significance of this approach, stating, “Ethereum’s network valuation exhibits a closer alignment with the updated Metcalfe law index when the active user base of Ethereum’s scaling networks is included in the model, in contrast to when it is omitted.” As such, the value of Ether has long been intertwined with Ethereum’s network usage. Instead of relying solely on traditional metrics, RxR’s methodology incorporates a blended version of the Metcalfe law that takes into account both the active user base on the continuously expanding Ethereum scaling networks and the users on the Ethereum mainnet.Įther, as a fundamental component of the Ethereum ecosystem, facilitates a wide range of activities, from simple transactions to participating in network security through staking, earning interest, and even storing non-fungible tokens. This revelation comes as a result of RxR’s innovative approach to evaluating the worth of cryptocurrencies. RxR, a research-driven partnership between Republic Crypto and Re7 Capital, has revealed that Ether (ETH), the native token of the Ethereum blockchain, is currently trading at a 27% discount to its actual fair value.
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