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ETH/BTC on the Verge of Breaking Out; NFT Market May be Stagnating: Markets Wrap

blockworks.co 24 November 2021 00:11, UTC
Reading time: ~2 m

BTC has struggled despite the strong macro narrative. ETH/BTC looks ready to breakout of a multi-month consolidation.

Various Ethereum scaling solutions are coming along strong and should lower fees for users over the medium-to-long term.

Developer data from Santiment leads to misleading conclusions.

Opensea trading volume appears to be tapering off while the number of NFTs sold is lagging even further.

Latest in Macro:

  • S&P 500: 4,690, +0.17%
  • NASDAQ: 15,775, -.50%
  • Gold: $1,790, -.84%
  • WTI Crude Oil: $78.50, +2.28%
  • 10-Year Treasury: 1.676%, +0.051%

Latest in Crypto:

  • BTC: $57,494, +1.49%
  • ETH: $4,328, +5.54%
  • ETH/BTC: 0.0752, +4.01%
  • BTC.D: 42.48%, -0.62%

Can BTC hold the line?

The macro narrative behind BTC has never been stronger, so investors are likely puzzled by the recent price action. Some headwinds for BTC include spot ETF rejections, Mt.Gox claims, the Craig Wright case, a strengthening USD, rising treasury yields, and potentially unfavorable legislation.

“We also have the macro situation, with further evidence that BTC behaves more like a risk asset than an inflation hedge coming in the form of a sharp spike when the news broke that Biden had decided to renominate Jerome Powell — gold, in contrast, dropped.” Noelle Acheson, head of market insights at Genesis, commented to Blockworks.

Ethereum has seen the number of active addresses on the network continue to climb. The net issuance of ETH continues to fall towards zero, unique addresses are increasing, scaling solutions are increasing and mainstream use cases continue to unfold, such as Sotheby’s denominating prices in ETH.

Ethereum critics point to the high transaction fees as the Achilles’ heel of the leading smart contract enabled platform. However, scaling solutions are progressing rapidly and are expected to gain adoption over the coming year.

“ETH won’t ossify, it will reach homeostasis where more usage kickstarts feedback loops that flow value back into Ether *and* auto-scale to accommodate increased demand.” wrote one Ethereum enthusiast on Twitter

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