While tensions are growing on the European continent due to the war between Russia and Ukraine, people on the African continent are wondering to what extent financial market stability is currently at risk. Because the IMF published its report on Nigeria and its newly launched digital central bank currency, the e-Naira. The IMF recognizes the opportunities, but also warns of possible risks.
On October 25, 2021, the world’s first publicly available central bank digital currency was launched, not in China or Sweden, but in Nigeria. The state-backed payment method e-Naira, which was developed in cooperation with fintech Bitt Inc., has now been part of the Nigerian central bank (CBN) money supply for four months. In order to meet the needs of the population, the CBN uses a tiered identification model . The more information about the identity of the users is entered, the higher the available transaction amounts per day. There are four levels in total, for companies the transaction amounts are unlimited.
In the classic manner, the International Monetary Fund (IMF) now examined the implications and effects of the new currency and came to interesting conclusions in its current country report 22/33 .
“The e-Naira poses risks for monetary and operational areas”
The IMF warns of a more difficult implementation of monetary policy, the threat to both bank financing and cyber security. In addition, the International Monetary Fund sees the e-Naira as a threat to operational resilience and financial integrity and stability. That is why they are demanding regular risk assessments and the development of an emergency plan from the Nigerian government. In particular, the IMF calls for the current regulations on money laundering and terrorist financing to be tightened. That would pose considerable difficulties for the identification model already mentioned, because so far only verification with the telephone number is necessary at the lowest level.
The events of early February already show that the Nigerian authorities should take this statement seriously. At that time, the international law enforcement authorities, in cooperation with Binance , froze several Nigerian Binance accounts. The accusation was: non-compliance with international money laundering standards.
opportunities for the population
Likewise, the IMF sees the e-Naira as an opportunity to promote financial inclusion, achieve a higher remittance inflow and reduce informality and corruption within the country – so the assessment is not very clear.
Ita Mary Mannathoko, IMF Executive Director for Africa (Group 1) and Patterson Chukwuemeka Ekeocha, her adviser, emphasize the benefits of e-Naira in their closing statements. The central bank digital currency would help their country in many ways. This is how the e-Naira can:
to improve the Nigerian payment system,
to create financial inclusion, especially for people without bank access,
collect taxes and thus generate income,
to support targeted social measures,
to improve remittance flows with foreign countries,
prevent corruption.
They point out that the risks of the IMF mentioned would be reduced by digital currency management. Because the e-Naira relies on distributed ledger technology. Nevertheless, a ban on illegal money flows and the use of money for illegal activities on this blockchain would be possible. This is because the money transfer requires that the transaction partners identify themselves and the details of the transaction are recorded. Nonetheless, Mannathoko and Ekeocha emphasize taking technical assistance and guidance from the IMF.
e-Naira as a transparent means against the abuses
With a GDP of 432.3 billion US dollars , Nigeria is the largest economy on the African continent (for comparison: Austria’s GDP is 433.3 billion US dollars). Despite this, more than 42 million rural adults do not have access to banking services. In rural areas, only 40 percent have a formal bank account, which excludes them from traditional finance. With the e-Naira one wants to overcome these difficulties, therefore no bank account is necessary for level 1 of the transaction amounts. These people can still send or receive money up to $50 a day.
At the same time, the country has suffered greatly from the Covid 19 pandemic. The country is currently registering falling inflation of 15.6 percent. The IMF also expects that the food supply has deteriorated as a result of the pandemic and the rate of people in poverty has increased sharply. Here, the Nigerian government and central bank hope that the e-Naira can help to transfer social assistance faster and more completely to the needy places and people. Because according to the Corruption Perceptions Index (CPI), Nigeria only ranks 149th out of 180 countries considered.
It will therefore remain interesting to see how the Nigerian government balances these benefits against the risks identified by the IMF. At the same time, the question arises to what extent the identification model can be retained if stricter money laundering and financing regulations are introduced. Then just those people could be excluded from the financial system again, for which the connection would be life-changing.
Ethereum must recapture USD 2,733 to generate price potential up to USD 2,954.
Only a breakout above USD 3,273 brightens the chart image again.
$2,305 as a key support level for the upcoming trading week.
The ether course had to bow again to the Bitcoin correction and slipped back to the strong support at USD 2,305. Only here did a clear countermovement back to USD 2,733 begin. Here the ether price initially bounced south on Friday, February 25, but can currently stabilize above USD 2,700. The bull camp must now try to stabilize the ether price above USD 2,733 in order to initiate another attempt to rise. Only a reconquest of USD 2,993 enables a march towards the historical high at USD 3,273.
Ethereum again failed to reach the USD 3,273 mark in the previous week. Instead, the price slipped again to the support at $2,305 before the bulls returned to the floor. The ether price is currently trading below the important resist at USD 2,733. If the bulls succeed in breaking out of this resistance in the coming trading days and the EMA20 (red) at USD 2,800 is also overcome, the upper edge of the orange resistance zone at USD 2,954 will initially come into focus as a target.
The bulls have to pass their first important test at USD 2,993. In addition to the 38 Fibonacci retracement, the EMA50 (orange) can also be found at this course mark. If USD 2,993 is broken through without renewed setbacks, the lower edge of the red resistance zone will again come into focus for investors. If Ethereum also dynamically overcomes USD 3,155 and thus jumps above the supertrend again, a renewed test of USD 3,273 should be planned. In addition to the high of February 10, 2022, the 50 Fibonacci retracement and the EMA200 (blue) can also be found here.
The chart image brightens
If the bulls can develop enough purchasing power and then form a new historical high, a subsequent increase into the turquoise resist zone should be planned. The MA200 (green) runs in the area of USD 3,589. In order to be able to break through this resistance zone, Bitcoin (BTC) must also recover significantly. If this area is overcome in the medium term, the next price target will be activated at USD 3,752. This price mark acts as the first resistance on the way to USD 3,898. Here, the bears will resist again to keep their chance for a fresh correction. On the other hand, if the buyer side succeeds in recapturing this technical chart hurdle, price targets of USD 4,043 and USD 4,158 will come into focus for investors.
This strong resistance zone is to be seen as the first overarching target area for the coming weeks of trading. A subsequent increase up to USD 4,339 is only conceivable if Ethereum also recaptures this zone in the long term. If Bitcoin also overcomes the area around USD 52,000 and rises towards USD 57,000, Ethereum should continue to rise towards USD 4,547. If this price mark is broken through in the form of the old all-time high without serious price setbacks, the zone between USD 4,719 and the all-time high at USD 4,864 will come into focus again. For now, this area is to be viewed as the maximum price target on the upside.
Bullish Variant (Ethereum) ETH Price Prediction
The seller side sent the Ether course back to the yellow support zone again. Only here did the bulls come back into the market and heave Ethereum back to the lower edge of the orange resistance zone at USD 2,733. As long as Ethereum does not break out of the historical high at USD 3,273, another sell-off can be expected at any time. A first indication would be a drop below the support mark at USD 2,578. If Ethereum breaks below this price level again, the yellow zone should be targeted again. If the bulls do not return to the floor, a retest of the low at USD 2,161 should be planned. If the selling pressure persists in this zone, a sell-off down to the green support zone is also conceivable.
Ethereum should then break away to at least USD 2,044, but more likely to USD 1,930. If the USD 1,930 is also undercut by the daily closing price, the chart picture will become even cloudier. The bulls should be there at the latest between USD 1,795 and USD 1,713 to avert a relapse below the low from the summer of 2021. The probability of a correction close to USD 1,545 would increase drastically. Even a retest of the support at $1,425 could be considered. The maximum bearish price targets for the coming months are unchanged at USD 1,359 and USD 1,223. From the current perspective, there is no more sales potential.
Indicators (Ethereum)
The RSI indicator is currently trying to climb back into the neutral zone between 45 and 55. If Ethereum continues to strive north, a new buy signal could form here in the coming trading days. The MACD, on the other hand, still has a sell signal, but it could turn it into a long signal as well. On a weekly basis, the bearish picture is unchanged. The RSI continues to trade below the neutral zone between 45 and 55.
Cardano (ADA): Abandonment of key support clouds chart image
ADA price falls back below key support and falls to new 52-week low.
USD 1.00 as the first important chart technical hurdle.
USD 0.75 is now acting as initial support on the downside.
Cardano’s course also trended south as Bitcoin corrected. The Bittrex stock exchange chart used here even shows a low of around USD 0.50. This extreme price low is a good example of a lack of liquidity on a crypto exchange. The low at Binance and Co., on the other hand, is found at USD 0.75 and is therefore exactly in the important yellow support zone mentioned in the last Cardano analysis . The ADA course can currently changehowever, for now recovering somewhat and rallying back above the resistance at $0.82. However, to initiate an initial bounce, ADA price needs to recapture the key area between USD 0.93 and USD 1.00. On the downside, the $0.70-$0.75 zone is now acting as a key support zone.
After the clear sell-off as an initial reaction to the start of the war in Ukraine yesterday, Thursday, the ADA course is currently recovering somewhat. At the low today, Cardano found support at the $0.82 support. The aim of the bulls must now be to heave Cardano back above USD 0.93 and especially USD 1.00 as quickly as possible in order to ban the danger of another sell-off in the short term. If the buyer side succeeds in recapturing the USD 1.00 mark and thus also overcoming the EMA20 (red), a subsequent increase towards USD 1.10 should be planned.
On the way, however, there is a first stumbling block with the super trend at USD 1.08. At the latest at USD 1.10 there is also the EMA50 (orange) in addition to a horizontal resistance mark. Cardano is likely to fail here in the first attempt. If there is a sustained relief rally for Bitcoin back towards its historical highs and ADA also rises to around USD 1.20 as a result, the risk of a relapse would be banned for the time being. If Cardano then stabilizes above USD 1.20, the focus turns again towards USD 1.25.
A first stabilization conceivable
If the buyer side manages to sustainably break through this strong resist and also break through the 38 Fibonacci retracement of the current movement at USD 1.29, the ADA rate should continue to rise and march through to USD 1.42. Here again a strong resistance awaits with the EMA200 (blue). In the zone between USD 1.48 and USD 1.52 at the latest, it should again be difficult for the bulls. This zone could not be recaptured in the long term on several occasions.
If the crypto market becomes increasingly bullish in the coming weeks, Cardano could take off up to USD 1.59. Once again, investors will want to take profits. Price targets at USD 1.77 and USD 1.82 are only activated when this resistance level is broken by the daily closing price. The latter resistance level can be seen as a make-or-break area for the coming months. Here the MA200 (green) continues to run next to the old demolition edge from November 2021. For the time being, this price level is to be regarded as the maximum bullish price target for the coming period.
Bearishe Variant (Cardano) ADA Price Prediction
The bears showed their paws again. The abandonment of the key support between USD 0.93 and USD 1.00 has left its mark. The seller side seems to have pushed the ADA price south enough in the short term, but renewed sell-offs are already to be expected in the orange zone. If the bear camp can cap the price below USD 1.00 and ADA falls back below USD 0.82 again in the coming trading days, the yellow support zone will again come into the focus of investors. If the price mark of USD 0.70 does not hold and is undercut at the end of the day, the chart picture will continue to cloud over. As a result, Cardano could also target lower price targets on the underside at USD 0.58 and USD 0.48. At most, a retest of the breakout level of February 2, 2021 is even conceivable. The support area around 0, USD 39 can currently be seen as a possible price target for the bears. Only if Cardano does not bounce significantly north here either and continues to weaken in the coming period, could a fall back to USD 0.33 or even USD 0.26 no longer be ruled out.
Indicators (Cardano) ADA Price Prediction
Both the RSI and the MACD indicator show active sell signals in the daily chart. The same can also be seen on a weekly basis. Here, too, both indicators continue to show active sell signals. While both indicators remain oversold, as long as there is no sign of a sustained reversal, this status is negligible for the time being.
support zone. If the overall market again tends more clearly to the south in the coming trading weeks, Avalanche could even fall back to the historical low from September 2021 at USD 32.21. From the current perspective, this support is to be regarded as the maximum bearish price target.
Price analysis based on the value pair NEAR/USD on Binance
Near price bounces north on key support at $7.58.
First price target at $9.50.
Parent support at $6.11.
In January of this year, Near made a new all-time high of around USD 20.63. Starting from this level, the NEAR price initially fell to the EMA200 (blue) at USD 9.50, where there was initially an interim stabilization. However, amid the overall market weakness, the near continued to slide, marking a fresh historical low of $7.42 yesterday, Thursday, February 24, before the bulls returned to the floor and hauled the price back above the $8.36 resistance . The aim of the bulls must now be to let the NEAR price quickly rise back above USD 9.80 and thus brighten the chart image again.
Bullish Variant (Near) NEAR Price Prediction
The buyer side was able to avert a total crash for the time being. If the NEAR price stabilizes above USD 7.78 in the coming trading days and can recapture the zone between USD 9.50 and USD 9.80, this would be a first indication of strength. If the resistance at USD 10.50 is subsequently broken through, a first directional decision in the range between USD 11.37 and USD 11.90 can be expected. There is a whole bunch of potential hurdles here with the Supertrend, the EMA50 (orange) and the 38 Fibonacci retracement. If the buyer camp can also recapture this zone in the coming weeks, the focus will be on USD 13.28. Near has failed here several times in the past.
If the NEAR price also jumps back above this resistance, price targets at USD 15.08 and USD 17.52 will be activated. Both marks are derived from Fibonacci retracements. If the bulls manage to pulverize the NEAR price in the medium term, even this price resistance, a retest of the all-time high at USD 20.35 is conceivable. Investors are likely to want to take profits here again. If the NEAR course can get stuck in this zone, an increase to the 138 Fibonacci extension is also possible in the medium term. Since the price-limiting upward trend line also runs in this zone, a direct breakout above USD 26.20 is not to be planned. For the coming months, the maximum target price for Near is $29.60. This mark is derived from the 161 Fibonacci price projection.
Bearish Variant (Near) NEAR Price Prediction
The bears pummeled the NEAR price to the horizontal support at $7.58 before the bulls increasingly resisted. As long as the seller is able to cap the price below USD 9.80, a retest of the historical low can be expected at any time. A first indication of renewed price weakness would be the sustained drop below USD 8.36. Then Near should immediately correct to the low of USD 7.40. If the NEAR price also undercuts this price mark at the end of the day, the correction extends into the green support area. The zone between USD 6.66 and USD 6.11 already acted as a strong support area several times in 2021.
In the first attempt, a rebound to the north should therefore be planned. If the weakness in the overall market expands in the coming trading weeks and Near slips below USD 6.11, the next support at USD 4.80 will come into focus for investors. This course mark was heavily contested several times in 2021. If Near cannot stabilize at this support either and also gives up this price mark for a long time, the price correction expands in the direction of the maximum bearish price target at USD 3.54. This price level was the starting point for the rally to the all-time high in August of the previous year. The bulls will therefore do everything in their power to move the NEAR course north again in the long term.
Indicator (Near)
Both the RSI indicator and the MACD indicator are currently showing a sell signal. Only when jumping back above USD 9.80 could the indicators activate new long signals.
The EU Parliament’s decision on the controversial ban on services for proof-of-work-based cryptocurrencies such as Bitcoin is being postponed. A new date has not yet been set.
A possible ban of Proof-of-Work-based cryptocurrencies like Bitcoin by the EU Parliament has made waves in the crypto space – Citytelegraph reported exclusively, international media picked up the message. Now the House of Representatives has reacted. The chairman of the responsible committee for economics and currency (ECON) Stefan Berger (CDU) commented on Twitter . In it, the European politician announces the cancellation of the vote on the MiCA draft in the EU Parliament. The vote was originally scheduled for February 28th. A new date has not yet been set.
For him, the discussion about MiCA indicates that “individual passages of the draft report can be misinterpreted and understood as a POW ban”. Under these circumstances, he considers a vote by the EU Parliament to be “fatal”. The draft should not be “misinterpreted” as a Bitcoin ban, writes Berger.
So far, the Bitcoin draft has stated that starting January 1, 2025, crypto-asset providers will not be allowed to provide services that are in any way related to crypto-assets that rely on environmentally unsustainable consensus mechanisms. “Specifically, they shall not facilitate the purchase or trading of such crypto-assets and shall not provide custody services for such crypto-assets,” the paragraph continues.
Berger wants to create “clear facts” about Bitcoin
Berger told BTC-ECHO that the group representatives of the Social Democrats, the Greens and the Left were the main drivers of the proposal. After the clear reactions, the politician now sees the need “to resume talks and negotiations with the parliamentary groups on this topic and to create clear facts on the question of PoW.”
It remains to be seen what the outcome of the talks will be. A de facto ban on proof-of-work-based cryptocurrencies such as Bitcoin should therefore be off the table for the time being.
TRON DAO and BitTorrent Chain (BTTC) revealed the launch of the TRON Grand Hackathon 2022 and debuted the TRONDAO Forum on Thursday, February 10.
Suitably, the Hackathon’s registration began on Valentine’s Day, February 14, just in time to spread the love and desire for new entrepreneurs, engineers, and designers, to continue the climb of Web 3.0 and the blockchain industry. Registration ends on March 7.
The mission of the hackathon is to concentrate on permitting developers to explore and impact the TRON blockchain and to make an excess of undertaking reaching DeFi (Decentralized Finance), blockchain gaming, Web3, Digital Art/Collectibles, and more.
“The future is not far from where decentralized storage, decentralized applications, digital assets, and cryptocurrency wallets are widespread. With the increasing use of decentralized, peer-to-peer, and secure networks, blockchain is becoming the backbone of Web 3.0 – the decentralized web,” said H.E. Justin Sun, Founder of TRON.
TRON’s new crypto discussion site TRONDAO Forum encourages people in the decentralized community to imprint the power and expansion of the TRON DAO, constructing the footing of a related cross-chain future for the entire blockchain economy.
TRON DAO and BTTC’s goal is to inspire developers to experience this prospect, to design and execute DeFi, GameFi, NFT, and Web3 applications and take advantage of the TRONDAO Forum.
The TRON Grand Hackathon 2022 and the TRONDAO Forum are all about creating chances, exchanges, and delegating the TRON DAO community to have a say.
Since TRON transitioned to a fully decentralized project by becoming a community-governed DAO this past December, this event is about establishing control in the crypto community around the globe.
For submission requirements, eligibility, rules, criteria, and further details, please visit the TRON DAO Forum or see the Medium article.
In 2022, it is easier than ever to get involved in stock trading, even as a newbie. There are countless tutorials, videos, and articles about investing in stocks, as well as an ever-growing online community of traders sharing information. However, one crucial piece of the trading puzzle remains unshared, which is the promising stocks that will likely see gains in the near future.
While your average trading article might speak about the potential of Amazon or Netflix stock, it cannot speak on the thousands of stocks on the market, especially not the ‘hidden gem’ stocks that don’t make headlines. Oftentimes, the average trader only heard of these gems after they have made waves in the market and towards the end of their bull runs, with only a small amount of profit left.
The ability to predict top-grossing stocks is one of the biggest competitive edges in stock trading which is why big trading companies spend millions a year on the best predictive software. This difference in resources is one of the reasons why the top firms can gross much more than individual smaller traders playing in the same market.
Now, StocksToTrade is working to sloe this knowledge gap by empowering traders with the industrial-grade tools they need to succeed.
Tools of the Trade
Knowing which stocks are going to be profitable means going beyond reading articles and listening to experts on TV. it means knowing in real-time which stocks are gaining value in the last 24 hours or less. Now, a trader can choose to manually search for this, but this would mean combing through a large amount of stock (StocksToTrade, for example, has over 19,000 stocks listed).
But with STT, they don’t have to. Its trading tools scan the markets and shows which stocks have seen the biggest losses or gains in the last month, week, day, or even hour. That means when the juicy new stock is just starting its bull run, an investor can buy into it and make the maximum profit.
Besides showing stocks that are currently gaining, STT’s ORACLE can show the stocks that are likely to gain. The ORACLE analyses past metrics and performances to predict which stocks are going to make gains and by how much. Based on this, users can buy into potentially valuable stocks before they even begin their bull run.
For those who trade in penny stocks, STT’s filter can be optimised to find the most valuable stocks within their budget, as the site is made for both experienced traders and newer ones.
Users can also search for stocks using their preferred metrics, whether this is industry, IPO date, and so on.
All these work together to make sure that the user does not miss out on profitable stocks, whether due to a lack of resources and knowledge or all the time and effort it would take to manually find these stocks.
A More Accessible Way to Trade
What STT is doing goes beyond just helping traders make a profit; giving this level of access to resources and tools closes the monopoly that large trading firms have on the industry and on making money from stocks.
For the average trader, it means that they do not have to wear themselves out chasing the best stock but can instead sit back and trade with much more ease and with increased accessibility.
There are no longer any limits to virtual clothing items in the Metaverse. Now the underwear manufacturer Victoria’s Secret is back with news for the digital parallel world.
Victoria’s Secret underwear coming to the Metaverse soon?
Trademark attorney Mike Kondoudis announced on Twitter that US underwear label Victoria’s Secret filed several applications with the Trademark and Patent Office on February 8.
Accordingly, the company wants to secure the trademark rights to “downloadable virtual goods”, “retail store services” and “entertainment services”.
In other words, Victoria’s Secret could use it to offer clothing items as NFTs and virtual services in the Metaverse.
The fashion sector is booming in the Metaverse. Victoria’s Secret is in good company with virtual products: in addition to sporty clothing from Adidas and Nike , the luxury market is also represented in the Metaverse with Gucci , for example.
Gucci gets involved in blockchain game The Sandbox
Luxury fashion house Gucci launches Metaverse fashion in blockchain-based game The Sandbox.
The luxury fashion house confirmed to Vogue Business yesterday, February 9, that it has bought a plot of land in popular Metaverse game The Sandbox.
The young offshoot of the luxury brand, Gucci Vaults , houses the experimental projects in the Metaverse.
Gucci will soon be able to offer its customers the opportunity to buy and wear designer clothing in The Sandbox .
When exactly the virtual Gucci experience will be available is currently unknown.
The Italian fashion house has dabbled in NFTs in the past and is now taking virtual fashion a step further.
It remains to be seen whether Heidi Klum, who recently came out as an NFT fan , will pay a visit to the Gucci store in the virtual parallel world.
The Ukraine crisis is overshadowing current events on the financial market. The DAX collapsed by up to 3.5 percent at the start of the week. Investors are increasingly fleeing to gold and safe government bonds. Interestingly, Bitcoin is relatively stable with a current minus of only 0.7 percent. Every single DAX title is thus more in the red than the key cryptocurrency Bitcoin.
Bitcoin and altcoins in particular react more strongly to market uncertainties than the traditional financial sector. The higher volatility today, however, lies with the large stocks, such as those found in the DAX . DAX titles such as Deutsche Bank, Continental or Delivery Hero are currently over 4 percent in the red. Accordingly, the small Bitcoin minus (0.7 percent) can be seen as a strength.
However, the current Bitcoin strength can also be over very quickly. Should there be a further escalation in the Ukraine crisis this week, a significant red sign on the crypto market can be expected. After all, investors withdraw their capital from risky investments, such as BTC, in phases of great uncertainty.
Meanwhile, the past Superbowl in the USA could have been positive for the Bitcoin course . Up to 800 million people around the world watched the sports spectacle yesterday, Sunday. Especially crypto companies like Coinbase , Crypto.com or FTX have advertised aggressively there. Among other things, this could have contributed to the support of the Bitcoin course – more about this later here at BTC-ECHO.
Investors and traders should be aware of the currently very high volatility and react accordingly cautiously. This could mean, among other things, reducing leveraged positions.
In any case, from a fundamental point of view, BTC is stronger than ever: The Bitcoin on-chain data paints a more positive picture than it has in a long time.
Despite high transaction costs and increasing layer 1 competition, Ethereum is the undisputed number 1 in the world of non-fungible tokens (NFTs) – why is that?
In recent years, the crypto industry has changed a lot. A lot has happened, especially with smart contract platforms like Ethereum. For example, in 2017 and 2018, Ethereum was still mainly used by Initial Coin Offering (ICO) projects for fundraising purposes . In contrast, applications from Decentralized Finance (DeFi) and the non-fungible token area dominate the Ethereum blockchain today.
Some alternative smart contract platforms (Fantom, Terra, Binance Smart Chain, Solana) have since tried to build on this success. To do this, they have developed their own blockchains, which are often less decentralized and secure, but in return are cheaper and faster.
Alternative Layer 1 blockchains such as Terra (LUNA), Binance Smart Chain (BSC), Avalanche (AVAX), Fantom (FTM) or Solana (SOL) have succeeded in gaining significant market shares in the DeFi ecosystem.
Data from Coin98 Analytics shows that alternative Layer 1 blockchains now account for over a third of all capital residing in DeFi protocols.
Quelle: Total Value Locked nach Blockchain, Coin98 Analytics
But while Terra and Co. were able to make up some ground, especially in the DeFi sector, the situation in the NFT sector is significantly different.
Ethereum is responsible for over 90 percent of NFT trading volume
Ethereum has so far been able to maintain its market share in the NFT sector. According to user 1confirmation ‘s NFT annual review 2021, at the end of last year more than 90 percent of NFT trading volume was still attributable to Ethereum and its scaling solutions (e.g. Polygon, Ronin, Arbitrum).
Source: 1confirmation, NFT trading volume by blockchain
Of course, it is possible that the alternative smart contract platforms could also gain more market share in the NFT sector over time. Nevertheless, it is surprising that NFTs, which have so far been particularly popular with small investors compared to DeFi, are still mainly traded on Ethereum.
Despite high transaction fees, many retail investors don’t seem to shy away from buying NFTs on Ethereum.
Reasons for Ethereum dominance
1. Largest infrastructure and community
Ethereum was crypto space’s first smart contract platform and has built the largest blockchain infrastructure and community over the years. For this reason, users can access a far larger number of decentralized applications and NFTs within the Ethereum ecosystem. In addition, there is significantly more capital in the ETH network than on other smart contract platforms. This is a great advantage for NFT traders as they can trade their NFTs in comparatively more mature markets.
2. Most active developer community
In addition, Ethereum has the largest and most active community of developers and NFT creators. Whether it’s the latest scaling solutions or experimenting with the next generation of NFTs , Ethereum is the epicenter of the NFT world right now. Reproducing or imitating this talent en masse is not easy. It is therefore a lot more difficult to reproduce the success of an NFT ecosystem than in the DeFi area.
3. Longest history
Another reason for ETH’s continued dominance is that Ethereum’s NFT scene has by far the longest history. The first NFT projects on Ethereum were conceived as early as 2015, and for many NFT collectors, older digital collectibles such as the Crypto Kitties or the Crypto Punks are therefore valuable.
4. Most secure smart contract platform
Ethereum has also maintained perfect uptime throughout its lifetime. The network thus has the longest and most proven track record of reliably securing NFTs.
5. Highest quality NFT projects
Precisely because of the security and underlying history of many NFT projects, NFTs on Ethereum are considered by many to be the most desirable NFTs out there.
So, when it comes to users wanting the best NFTs of the most interesting projects, the NFTs of other blockchains can’t quite match in terms of their perceived quality.
Conclusion
Things can change incredibly quickly in the crypto space. It is therefore entirely possible that Ethereum will lose some of these important advantages of its NFT ecosystem over time. For now, however, the benefits remain at a large scale, and scaling solutions like Polygon are making ETH transactions low-cost, similar to Layer 1 blockchains. The fight for market share in the NFT sector should therefore be much more difficult for alternative layer 1 blockchains than in the DeFi area.
In 2021, many smart contract platforms competed for users’ attention and attempted to be the next Ethereum killer. The terms DeFi, GameFi, and NFT, have been all over the media lately, and any of these would not be possible without smart contracts. As more smart contract platforms are introduced, it becomes hard for newcomers to choose which is right for them. This article will examine some of the most popular smart contract platforms and share our hands-on experience with them.
Ethereum
Token: ETH
TPS: 10
Ethereum is the world’s first smart contract platform. Developers create decentralized applications (dApps) on the Ethereum Virtual Machine (EVM) with an object-oriented programming language called solidity. Users can interact with dApps that operate autonomously. Since Ethereum is the first smart-contract-enabled blockchain platform, it has a lot of active developers and has the most Total Value Locked (TVL) in DeFi as far as blockchains are concerned. However, despite being the most popular smart contract platform, it still has a few downsides that make us try to stay away from it when possible. One drawback is the slow transaction speed since Ethereum can only process around 10 transactions per second (TPS). The other problem is the hefty transaction fee it charges when the network is busy, in which the fee may sometimes cost more than the transaction per se.
Binance Smart Chain
Token: BNB
TPS: 60
Binance Smart Chain (BSC) is a smart contract blockchain that is fully compatible with the EVM, so developers can leverage existing tools to write dApps without having to learn an entirely new language. In addition, the increase in transaction speed compared to Ethereum is welcoming. BSC started to gain traction earlier last year, it forked a lot of Ethereum projects that bootstrapped the entire ecosystem, and in the latter part of last year, we see GameFi booms on BSC. One most notable concern that many community members have is the centralization of the Binance chain since Binance is a centralized exchange, and most of its validators are connected to Binance. Nonetheless, BSC has a unique and strategic position in the entire crypto ecosystem.
Avalanche
Token: AVAX
TPS: 4,500
Avalanche is an open-source platform for launching DeFi applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche is the first smart contract platform that confirms transactions in under one second with finality on every block. It provides a new consensus mechanism with an adaptable platform optimized for enterprise adoption and developer needs while solving the challenging problems of scaling and security. The AVAX rush incentive plan also ignited the whole Avalanche ecosystem last year, with large price swings in the latter half of the year. We miss the low transaction fees that Avalanche offered at the very start. Another concern we have is their failure to keep up to date with various promises such as burning the foundation’s staking rewards and the introduction of feeless transactions. If Avalanche could significantly reduce its fees and improve communication while keeping its promises, it’s still a smart contract platform worth keeping an eye on.
Solana
Token: SOL
TPS: 2,000
Solana is a high-performance open-source blockchain. It provides a platform for dApps and next-generation protocols. With its Proof of History (PoH) consensus mechanism, the Solana blockchain allows for breakneck transaction speeds, claiming to scale to over 50,000 TPS on an open network, which is said to be possible due to Solana’s novel approach.This deterministic checkpointing mechanism that is used in place of synchronous consensus. However, Solana’s actual TPS is around 2,000, with more than 3/4 of these transactions being vote transactions. The seemingly inflated TPS widely promoted to the public might reflect the questionable design of the Solana platform. Even though it was once regarded as a crypto rising star, with its six blockchain outages happening in the last month alone, Solana is facing fundamental questions about its network stability, as well as the ability to maintain itself as a Wall Street darling.
TRON
Token: TRX
TPS: 2,000
TRON is an innovative open-source blockchain that focuses on providing a cost-effective settlement solution with the ultimate goal of decentralizing the internet. The high level of scalability offered by the system and its mandate for low costs are attractive propositions for those considering taking their first step into the crypto world. Since last April, the amount of Tether USDT on TRON has surpassed Ethereum to become the No.1 worldwide. TRON became the preferred blockchain for many when transferring and converting stablecoins because of its low fees. The TRON network’s increasing dApps and NFT projects also attracted many new users from other blockchains. However, we noticed that newcomers sometimes brought up the concept of bandwidth and energy on the TRON network. Although understanding bandwidth and energy is not necessary to make a transaction, users should be encouraged to look into them as utilizing these resources by staking a certain amount of TRX would enable one to send transactions or interact with smart contracts for free.
Throughout last year, we saw many smart contract platforms rising to compete with Ethereum, and each of them has its pros and cons. There is an incredibly increasing demand for a good smart contract platform, and every platform will eventually have its place in the ecosystem. Investors, users, and developers should take a closer look at each of these blockchains and pick the one that matches their needs best.
The play-to-earn video games are now no longer continually approximately being profitable in play-to-earn video games.
A play-to-earn recreation should first and foremost be enjoyable; while it is, it’s going to draw greater gamers over an extended duration of time.
The motives for consisting of video games in this listing can vary from thrilling new gameplay to early funding potential.
Play-to-earn gaming is one of the hottest topics in the gaming market this year thanks to the growing game world and blockchain technology.
Play to earn Games is a new type of decentralized game that allows players to acquire, trade, and sell non-fungible tokens (NFTs) for in-game assets such as characters, weapons, cars, money, etc.
Mine of Dalania
Mines of Dalania is an adventure game project with a new blockchain-based real estate market launched on Launchpool.
Two cooperative groups, miners and landowners, make up the player base. Landowners provide land and resources, and miners fight monsters and destroy blocks in search of valuable resources.
Players can also collaborate with friends to kill monsters, complete quests, and access in-game rewards.
The in-game assets for Mines of Dalania will be available for purchase on the NFT Marketplace in Q1 2022 as part of their planned IGO collection. Upgrades, skill progression, governance, transaction fees, and other in-game transactions are all done with DAR, the same money.
My Neighbor Alice
Play My Neighbor Alice and experience the best of both worlds in a multiplayer building game. A fun experience for casual players and a trading and collecting environment for NFTs.
In the form of an NFT token, players purchase and possess virtual parcels of land from Alice or the marketplace.
Because there is a limited supply of available land, market prices fluctuate. If you’re a good landowner, the in-game reputation system will give you an added benefit.
In addition to land, players can purchase in-game assets such as houses, animals, vegetables, decorations, and cosmetics to use for their avatars. Staking, collateral, and redemption are examples of certain Defi services.
The Mobox
Mobox is a cross-platform GameFi metaverse that blends Defi yield farming with gaming NFTs. Mobox NFTs, commonly known as MOMOs.
MOMO NFTs can be used to farm, battle, and create crypto rewards. Within the MOBOX metaverse, participants can also exchange their MOMOs, stake them to cultivate MBOX tokens, or use them as collateral.
Mobox offers simple gameplay that incorporates both free-to-play and play-to-earn elements. The game places a high value on NFT interoperability, making it possible to play with other players and one of the top play to earn games.
Axie Infinity
Axie Infinity is a Pokemon-inspired Play to Earn game in which players fight, breed, and trade with mythical creatures called Axes.
This game is well known in the crypto community. The game rewards players for competing axes with each other for a little love potion, in-game money (SLP).
Each Axie is also a non-fungible token (NFT) that can be bought and sold on the NFT exchange.
Illuvium
Illuvium is a new blockchain RPG that takes place in an open environment. Players must defeat and catch Illuvials as they wander through a magical environment.
Illivuals can be utilized in battle against other players once you’ve collected them while questing, completing challenges, or progressing through Illuvium’s plot.
The Illuvium project revolves around collecting and customizing your NFT. The Illuvium project revolves around collecting and customizing NFT Illuvial.
Each Illuvial is assigned an affinity and class. There are 5 classes and 5 similarities, each with its strengths and weaknesses. The more you win battles and complete quests, the stronger your Illuvial becomes.
The NFT Marketplace can be used to exchange all game assets on Illivium, including Illuvials and objects. To earn Illuvium’s in-game currency, ILV, and sILV, you can buy tokens and start staking on the Illuvium platform, or staking partner tokens in Flash Pools.
Sandbox
The Sandbox is a virtual metaverse that allows players to buy land, play games and create their games and change the virtual world.
As a collector, artist, or game organizer, you can contribute to the virtual world or simply play many games as a full member.
Sandbox is one of the biggest names on the metaverse if you’re looking to buy digital land or real estate.
The alien world
Alien Worlds is a multi-planet NFT metaverse with 7 worlds. The goal of the game is to earn Trillium (TLM), an in-game cryptocurrency that can be exchanged for real money.
To compete for part of the TLM reward pool, players can collect TLM or send virtual ships on missions across the Metaverse.
Upon completion of the mission, each traveler can receive up to 5 NFTs. In addition to learning about the BSC blockchain, the game also allows players to compete against each other.
RaceFi
RaceFi is the world’s first auto racing network built on the Solana blockchain. In the metaverse of the game itself, users can race or win game assets and earn money.
However, one of the downsides of this game is that it uses AXS and SLP currencies. Both have been heavily devalued recently.
Polygonum
According to the description, the game is a free-to-play, cross-platform, multiplayer Defi survival game with NFT, crypto, and open-world components.
This means that players can earn money in a variety of ways, including mining currency and trading in-game items. Farming, often known as FARM, PVP, and PVE, are the three zones in the game.
Age of Rust
If you’re looking for a PlaytoEarn game with interactive story content, I highly recommend Age of Rust.
Imagine waking up on a planet plagued by natural disasters in the 44th century, ruled by artificial intelligence and machines. Explore exciting landscapes, solve puzzles and earn tokens. The ENJIN protocol was used to create Age of Rust, a post-apocalyptic RPG. The game is based on the Ethereum blockchain and its original purpose is to arouse people’s interest in blockchain technology.
Players will find more than 24 BTC hidden by the game inventor, these bitcoins are currently worth $1,000,000 and 370,000ENJ coins, utility tokens in the world of the ENJIN protocol.
