Virtual currency market analysis [March 22]
Cryptocurrency Practical Investment Article March 22
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【Ranked 5th in MagMag Magazine Awards】
In 2020, the largest MAG magazine site
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（Reference）In 2020, 5th place in MagMag’s cryptocurrency newsletter assets management category!!
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https://bitcoin-newstart.com/2020magmag
【Cryptocurrency Market Analysis】
The price movement of cryptocurrencies since last week
over the past week is summarized as follows
Summary: Current price (change from a week ago)
Bitcoin5,170,000 yen (17％)
Ethereum363,000 yen(18.5%）
Ripple102 yen（11％）
Cardano115 yen（21%）
Polkadot2,400 yen（15%）
Binance Coin49,000 yen(11％）
Solana11,000 yen(15%)
Avalanche 10,480 yen(29%)
Uniswap1,200 yen（20%）
ICP 2,200 yen（16％）
Bitcoin has risen from the previous week's low of around 4.2 million yen and is now near the upper bound of the range at around 5.2 million yen.
Bitcoin Daily Chart
As of last week, prices were converging within a range with low volatility, but then broke upward and have been rising steadily.
The upper bound of the range, around 5.2 million yen, has been in place since mid-January this year, and it remains to be seen whether it will break upward or rebound downward again.
Because the market is relatively calm, short-term predictions are difficult (many may still think the range will continue); however, in the medium to long term, one key point may be how inflation in currencies will evolve.
Major altcoins have risen more than Bitcoin.
In particular, Ethereum, the second-largest by market cap, rose by nearly 20% week-over-week.
Regarding Bitcoin, there hasn’t been much dramatic news recently, but
・Goldman Sachs conducted OTC (over-the-counter) derivative tradingOTCfor Bitcoin
・Steve Wozniak predicted Bitcoin to reach $100,000
there was such news.
Goldman Sachs has long considered providing Bitcoin services to institutional investors and has been offering Ethereum funds from the cryptocurrency companyGalaxy Digitalto clients.
Also, Steve Wozniak is known as a co-developer of Ethereum, and he has long stated that “Ethereum is the next Apple (selling iPhone by Apple).”
From Wozniak’s perspective, Bitcoin is valuable because it is not controlled by governments, and a price of $100,000 (about 12 million yen) is within sight.
（Reference）Yahoo News
https://news.yahoo.co.jp/articles/ab23e915e8cf9c88c6688e749d357143070f2ce3
【Background to Ethereum’s Price Surge】
Last week, Ethereum saw
○proposal of EIP4844 to reduce transaction feesEIP4844 by developers
○developers appeared on the cover of Time Magazine
Last year, Ethereum introduced EIP1559, a burn mechanism that reduces the total supply to increase inflation resistance.
And now this isEIP4844, which is said to directly lower transaction fees for Ethereum.
Currently, Ethereum faces high fees on its main L1 (Layer 1), leading to several Layer 2 solutions like zkRollups, Optimism, etc., which help reduce fees.
ThisEIP4844is said to be a proposal to further lower these fees.
Even in Layer 2, when transaction volume increases, fees tend to rise on the network, so this proposal may help cover that.
2022 has been described as the “Year of Layer 2,” and transaction activity on Layer 2 is expected to increase further this year.
※Recently, Layer 2optimismhas succeeded in fundraising.
Thus, attention is focused on how this proposal will be positioned in the future.
（Reference）CoinPost
Also, Vitalik Buterin, Ethereum’s developer, appeared on the cover of Time Magazine.
In the Time Magazine article, Mr. Buterin comments on the development environment at the time and the current NFT boom.
Recently, in NFT world tooNFT has been drawing attention with BAYC, a monkey NFT, trading at high prices among celebrities, and the owner receivingAPE cryptocurrency distributed and traded on Ethereum’s network.
However, Vitalik has expressed that he does not view such price-focused trading as his goal, and he emphasizes the purpose of a decentralized network that enables anyone to provide services.
The distributed platform Ethereum, created by him, indeed attracts great attention for its use cases in NFT, and even the above-mentioned transaction fees could be useful for future NFT trades (which also see fee surges).
Nevertheless, he might feel that profit-focused trading is getting out of hand.
A more measured perspective like this also provides food for thought from an investor’s standpoint about the true value.
