- The analysts of the Standard Chartered Bank structurally estimate the value of Ethereum between 26,000 and 35,000 US dollars and see the future of Altcoin positively.
- Vitalik Buterin proposes a solution to the high gas fees in the Ethereum network. He suggests migrating the NFTs entirely to Layer 2.
- The transaction volume on Ethereum Layer 2 has exceeded that of Bitcoin, making flipping an issue again.
The adoption of Layer 2 scaling protocols has skyrocketed with the rise in Ethereum gas prices. ETH Layer 2 protocols process over 250,000 transactions per day, surpassing the number of Bitcoin.
Leading global bank is optimistic about Ethereum and estimates Ethereum at $ 26,000 to $ 35,000
Standard Chartered, a British multinational banking giant headquartered in London, recently published a report on the two major cryptocurrencies, Bitcoin and Ethereum. The report provides insights into structural considerations and the economic benefits of ether. Three researchers from Standard Chartered Bank wrote:
While the potential returns for ETH are higher than for BTC, the risks are also higher.
The banking giant’s analysts said:
Structurally, we see Ethereum at $ 26,000- $ 35,000.
While the altcoin has consolidated and fallen nearly 20% on Tuesday, it is noticeable that proponents of traditional finance have a positive outlook on ether.
Sam Trabucco, CEO of Alameda Research, shared his thoughts on the drop in Ethereum prices. Trabucco points out that the setup before correction is almost the same every time. Futures contracts trade at a high premium, which indicates aggressive buying. This setup is followed by a steep price correction that gives traders an opportunity to buy the decline.
Buying the dip now has always been a good idea in the past pic.twitter.com/8suSJmWWdH
– Sam Trabucco (@AlamedaTrabucco) September 8, 2021
Another factor that likely triggered the slump is the sharp rise in transaction fees on the Ethereum network. Founder Vitalik Buterin linked this to the rise in non-fungible tokens (NFTs) on the Ethereum blockchain and suggested some solutions to address this challenge.
Vitalik Buterin suggests moving NFTs entirely to layer-two solutions to combat high gas charges.
Buterin shared his thoughts on the Ethereum Research Blog, where he suggested moving non-fungible tokens entirely to scaling solutions. Buterin notes that existing Ethereum Virtual Machine (EVM) capable roll-up platforms have back doors and some degree of centralization; until there is a better solution, NFTs should therefore be cross-rollup.
This means that NFTs should easily move through the entire Layer 2 ecosystem until a single rollup addresses the challenge of centralization and solves the security issues.
Buterin’s proposals sparked a new debate in the crypto community. However, this has opened up further growth opportunities for Layer 2 scaling solutions.
Evan Van Ness, the founder of Week In Ethereum News, tweeted about the increasing transactions on Ethereum Layer-2 solutions and how they are already outperforming Bitcoin in trading volume.
There are already more daily transactions on Ethereums Layer2 (~ 250k) than on Bitcoin (~ 210k yesterday via @coinmetrics) $ ETH Layer2 is just beginning
– Evan Van Ness (@evan_van_ness) September 6, 2021
Flipping in the Bitcoin network has become relevant again as the Ethereum Layer 2 ecosystem exceeds daily transactions. Overall, the developments in the Ethereum ecosystem ensure a positive outlook on the price of the altcoin despite the correction in the price of ether.
The analysts at FXStreet expect the altcoin to break out towards the $ 4,000 mark.