Is Bitcoin losing ground?
BTC’s lateral pricing has caused users to look for other investment alternatives. Is Bitcoin losing ground in the market?
Bitcoin’s boring pricing behaviour has motivated many people to look for other ways into the crypto market. Is Bitcoin losing ground? No. The $11,000 brand is still a hurdle that price has struggled to overcome. Let’s take a look at some highlights regarding BTC.
Coinmetrics reports that ETH’s cumulative rates are double those of BTC
Cumulative transaction fees paid to Ethereum miners (ETH) by 2020 are now close to double those of Bitcoin (BTC). At a price of USD 276 million compared to USD 146 million.
A graph published by Coinmetrics highlights how Ethereum’s rates rose sharply in the latter part of the year. This coincides quite closely with the launch of the Compound token incentive. Ethereum’s cumulative 2020 rates were equalized with BTC’s on August 12, and have continued to rise steeply since then.
This marks a change from the transaction fee trends of previous years, where Bitcoin generally dominated over any other network by a wide margin.
Cambridge University study says 90% of Bitcoin’s trade happens outside the network
The majority of operations with crypt coins are not recorded in the main blockchains of the ecosystem. At least that suggests a recent study by the University of Cambridge, which assumes that 90% of exchanges occur in exchanges. And, that they continue to favour the use of BTCs because of their greater demand in the markets and their ability to convert to other currencies. Is Bitcoin losing ground?
According to the Cambridge Business School’s „Third Global Comparative Study of Crypt Currencies“, analysis of 25 crypt currencies such as Bitcoin suggests that global exchanges occur outside the network. Because blockchains, which record the transaction history of each, are used more as settlement platforms.
In addition, the study indicates that, during 2020, exchanges have begun to accept more stablecoins, Crypto Legacy anchored to the value of the dollar or other cryptomonies. And local fiat currencies for trading on their platforms.
In this regard, the document describes that 55% of exchanges have begun to accept stablecoins, compared to 11% who accepted them in 2018.
For its part, the study noted that the dominance of Bitcoin as the most used cryptomone currency in exchanges decreased in 2020. It is now accepted by only 90% of exchange platforms (until recently it dominated 98%).
Bitcoin Miner producer Ebang blames coronavirus for 50% drop in revenue
Ebang said that the side effects of the coronavirus outbreak caused revenues to drop by half in the first six months of 2020.
Total net revenues for the Nasdaq-listed mining equipment manufacturer plummeted to $11 million in the first half of 2020. This is 50.6% less than the $22.35 million earned in the same period last year, according to an SEC filing.
In a statement, Ebang’s chairman and chief executive officer, Dong Hu, linked the drop in revenue to the pandemic, which led chip suppliers to reduce capacity and caused a chronic shortage of raw materials that severely disrupted Ebang’s business.