Investing.com – The corrective movement that started yesterday in the cryptocurrency market continued on Thursday. ,,,, and Co. are all recording losses, but the market capitalization of digital currencies is still above $ 2 trillion.
Bitcoin loses a total of 2.8 percent at a BTC rate of $ 46,904. Ethereum sells 3.2 percent, while the ether price is quoted at $ 3102.
For Cardano, it’s down 5.6 percent, resulting in an ADA rate of $ 2.59. The profit of the last 7 days, meanwhile, melts to 24.4 percent.
It looks similarly bleak with Ripple and Dogecoin. The XRP price fell by 4.45 percent to $ 1.1197, but it may soon be uphill – the DOGE, however, is the biggest loser at a price of 0.2693 dollars with a minus of 7.13 percent Top10.
Ethereum – the day of the decision is approaching
Ethereum continues to decline after the second most important cryptocurrency by market capitalization failed to break the $ 3,350 mark. The Ether course is now headed purposefully towards the psychologically important mark of $ 3,000.
Tomorrow Friday promises high tension. Eventually, $ 820 million worth of options will expire, which can create volatility in either direction.
The important $ 3,000 mark has already accumulated $ 100 million in open interest. For now, the bears are left behind, placing 83 percent of their bets at $ 2,900 and below. Or to put it another way: in an area that, from today’s perspective, can only be achieved with increased momentum on the underside.
Whether the levels below $ 2,900 come back into play at all depends on various factors. First and foremost from the general mood on the crypto market, but also how quickly the Cardano Alonzo upgrade, after the launch on September 12, causes smart contracts to migrate.
So far, Ethereum has been ahead of the curve when it comes to smart contracts and NFTs, but this has also had disadvantages for a long time. The success of the Ethereum blockchain is paid dearly with intermittent network congestion and high transaction fees. Many of the developers are just waiting for Alonzo to finally switch to Cardano.
The change will not be made difficult for them – on the contrary. The ERC20 converter developed by the IOHK ensures smooth interoperability. Added to this are the EVM compatibility listed below and the implementation of financial regulation guidelines.
With this, the Ethereum network will lose some of its unique selling points that have contributed to its previous success.
The smart contracts already developed for Ethereum and the NFT markets based on them can be quickly migrated to Cardano. That definitely makes sense for the developers and operators, because the transaction costs will decrease considerably.
Cardano cooperates with DcSpark and Coinfirm
DcSpark is already an established company in the field of DLT solutions and will now support Cardano in developing the first sidechain (Milkomeda).
The cornerstone for the sidechain is Wrapped ADA (wADA), while at the same time an EVM (Ethereum Virtual Machine) compatibility is created. The DcSpark developers are creating an environment for smart contracts that will be compatible with the sidechains of other blockchains in a later phase.
“We are convinced that Milkomeda’s flexibility and performance will set a whole new standard for some of the most promising smart-contract-enabled blockchains and their ecosystems,” says Robert Kornacki, CSO at dcSpark.
The positive effect for users is that smart contract transactions can be processed via the sidechain without having to leave the Cardano mainnet.
Charles Hoskinson, CEO of IOHK stated: “We don’t believe that there will be one blockchain in the end that dominates all the others. Rather, the key to success is collaboration. When it comes to interoperability and scalability, the key to success is collaboration Sidechains are an integral part of our vision for Cardano. We pioneered the proof-of-stake sidechains and know how important they are to interoperability within our industry. Milkomeda is a valuable addition to the Cardano ecosystem as they It enables developers to benefit from the speed, security and lower Cardano transaction costs. There is no need to change wallets or use a completely new operating system. “
Cardano reached another milestone in the area of AML guidelines. The cooperation with Coinfirm enables the Cardano Foundation to use the company’s established AML functions. This implements financial regulation guidelines that are essential for the acceptance of financial services. This puts a stop to possible fraud from the start.
“Coinfirm welcomes the integration of the Cardano protocol into our AML platform. This ensures that counterparties using the ADA cryptocurrency and other assets created on Cardano are not compromised by illegal funds. This provides financial institutions with a seamless transition to Adopt the protocol in full and address AML / CFT compliance concerns. ” – Sachin Dutta, Marketing Director at Coinfirm.
The South Korean financial regulator recently announced that 210 exchanges would soon be closed if they fail to implement and comply with the AML guidelines. This makes it very clear what significance AML has for the future of blockchain technology in general and for DeFi in particular.
US economic checks also flowed into cryptocurrencies
The Covid-19 pandemic rocked the global economy. The governments of the industrialized countries took various measures to prevent the domestic labor market from falling. The US also relied on so-called economic checks, through which most Americans were able to enjoy monetary gifts.
CNBC hired research firm Momentive to find out what the business stimulus checks were used for.
The survey of 5530 participants showed that 11 percent invested part of the economic aid in cryptocurrencies. At 15 percent, the largest share of crypto investors was in the age group between 18 and 34 years of age. In the age group from 35 to 64 years, it was still 11 percent who invested in crypto currencies, while only 4 percent of those over 65 years of age hold a crypto investment.
The risk assessment for buying Bitcoin & Co. was similarly structured. The younger the group of respondents, the lower the assessment of the risks associated with an investment in the crypto market.
A total of 60% of respondents in the survey said that investing in cryptocurrencies should be viewed as a long-term investment.
It is particularly interesting that among the 18 to 34-year-olds, the economic checks were the decisive factor in making an investment for the first time. Around 60% of respondents from this age group had never made an investment before 2020. Apparently the necessary money was missing here.
The survey showed that young and inexperienced people are more likely to invest in the crypto industry. With the little money they have at their disposal, they don’t have much to lose, while the potential returns make you forget about the risks.
From Marco Oehrl