Impact of Web 3.0 on Business and the Latest in the Crypto Market
Ether (ETH) price experienced a significant setback as it encountered strong resistance at the $4,100 mark on March 12. This resulted in a 9% decline over the past week, leading traders to question whether the current support level of $3,200 will hold. In comparison, the total cryptocurrency market capitalization also saw a 2.5% decrease during the same period.
Many are speculating on the impact of Web 3.0 on businesses and the crypto market as a whole. With notable figures like Mark Cuban showing interest in crypto, the market is constantly evolving and gaining attention. There is also a growing interest in gas and key cryptos, with questions arising about the decentralization of Web 3.0 and its relation to the metaverse. As the crypto market continues to develop, it remains a hot topic for those interested in cryptocurrency and its related industries.
The Potential Impact of Web 3.0 on Business and the Latest Developments in the Crypto Market
The approval of a spot Ethereum exchange-traded fund (ETF) could be a major catalyst for the bullish outlook on Ether. The SEC is currently reviewing the matter and is expected to make a decision by May 23. However, according to Bloomberg senior ETF analyst James Seyffart, approval is not the most likely scenario.
Aside from the ETF decision, the recent upgrades to the Ethereum protocol should not be overlooked. The Dencun hard fork, which occurred on March 13, aimed to improve the network’s scalability and layer-2 data processing capabilities, making it more attractive for rollup solutions. This has led to a significant decrease in transaction fees for most applications on Arbitrum, Optimism, and Base.
While these enhancements are expected to encourage the adoption of layer-2 solutions, competitors like BNB Chain and Solana offer lower transaction fees at the base layer, making them more appealing to newcomers. Despite this, Ethereum’s ecosystem has seen a surge in activity, with 7-day volumes for Arbitrum, Optimism, and Base increasing by 145%, 144%, and 203% respectively, which has helped alleviate some of the downward pressure on Ether’s price caused by high gas fees.
It’s worth noting that the rise of the metaverse and the concept of Web 3.0 is often associated with the world of cryptocurrencies. However, while the two are closely related, they are not exactly the same. This distinction has become more apparent as other cryptocurrencies like Solana have seen a 57% increase in decentralized application (DApp) volumes over the past week, according to DappRadar.
The potential impact of web 3.0 on businesses and the latest developments in the crypto market
The price of Ether could face challenges due to regulatory concerns, particularly in the United States. According to reports, the SEC is investigating companies with ties to the Ethereum Foundation, possibly to classify Ether as a security.
This investigation was triggered by Ethereum’s shift to a proof-of-stake network, leading to several U.S.-based companies being asked to provide financial records and documents related to their interactions with the Ethereum Foundation.
Experts, including Van Buren Capital and lawyer Scott Johnsson, believe that the SEC’s scrutiny of Ether’s status as a security could be used as an excuse to reject spot Ether ETF applications. However, not everyone shares this view, with Coinbase’s chief legal officer Paul Grewal arguing that “the SEC has no valid reason to reject the Ether ETP applications.”
To gauge the sentiment of professional traders following Ether’s recent price decline, we can look at the ETH options 25% delta skew. A skew above 7% indicates expectations of a price drop, while a negative skew below -7% typically reflects bullish sentiment.
Since March 21, the ETH options 25% skew has risen from 0% to 5%, suggesting caution and skepticism towards the $3,200 support level. However, despite an 11% correction in Ether’s price over the past week, the skew remains in neutral territory, indicating that bearish sentiment has not significantly intensified.
Zooming out, the Ethereum network continues to dominate in terms of deposits, with a total value locked (TVL) of $94 billion. The recent announcement by BlackRock, the world’s largest asset manager, to launch a tokenized asset fund on Ethereum further solidifies its position. Therefore, there is little reason to doubt that the $3,200 support level for Ether will be broken in the near future.
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