Ethereum transactions overtake bitcoin, XRP braces for FUD

While the Bitcoin price consolidates above the 35,000 US dollar mark, the analysis house Messari reports a „flippening“ in Ethereum transactions.

ETH is also at record levels in terms of price: the all-time high of 1,448 US dollars is only a few percentage points away. Meanwhile, Ripple is struggling with regard to the SEC proceedings – which is also reflected in the XRP price. Market update.

The second-largest cryptocurrency by market capitalization continues to chase records: with a daily gain of 10.28 percent, Ether has risen to $1,332 in the last 24 hours.

This puts it just a few percentage points away from the all-time high of $1,448 that ETH reached on Jan. 13, 2018. This is despite the fact that the chronically underutilized Ethereum blockchain continues to hang on to sometimes exorbitant gas fees.

In fact, for quite some time now, significantly more value has been transported via Ethereum than via the Bitcoin network. In this regard, Ethereum has greatly increased its lead over Bitcoin in recent weeks. This is according to data from the blockchain analysis portal Messari, which analyst Ryan Watkins shared via Twitter on January 19.

According to this, Ethereum currently transacts around three billion US dollars more per day than Bitcoin. In addition to stablecoins, Messari cites the still booming DeFi sector, which relies on Ethereum to a large extent, as a growth driver. Still, much of what Messari calls the „parabolic“ rise in Ether transactions can be attributed to the fact that the Ether price has more than doubled since mid-December. If one also considers that transactions with the Ethereum version of the stablecoin Tether (USDT) are also included in the calculation, the picture is somewhat put into perspective.

Growing centralization in Ethereum capital.

Not only the ETH price, but also the centralization of capital is at record levels for Ethereum. Data from blockchain analytics firm Glassnode suggests that one percent of all Ethereum hodlers account for over 97 percent of all ETH units.

While this centralization of Ethereum assets should be a thorn in the side of any decentralization advocate, the following fact might appease: Glassnode does not take into account the account balances of smart contracts, bitcoin exchanges and funding addresses of teams for its metrics. Yet more and more ETH units are floating around, especially in smart contracts. According to DeFi Pulse, the MakerDAO (MKR) ecosystem alone holds 2.7 million ETH – about 2.36 percent of Ethereum’s current circulating supply.

Ripple price (XRP) defies prophecies of doom

Not only Ethereum, but also Ripple’s XRP, the former No. 3 by market capitalization, is showing signs of growth today. With a daily gain of 11.37 percent, the Ripple coin can lift itself back above the US$0.3 mark and put those prophets of doom who see the SEC lawsuit against Ripple and co-founders Garlinghouse and Larsen as the death blow to XRP in their place, at least for now.

It may be the new appointments at the top of the U.S. Securities and Exchange Commission that has given XRP bulls a boost. Ripple CEO Garlinghouse has recently expressed optimism about working with Gary Gensler, the new man at the top of the SEC:

Congratulations to Gary Gensler! We are ready to work with SEC leadership and the broader Biden administration to find a path forward for blockchain and crypto innovation in the US.

At the same time, it is questionable whether Gensler’s appointment by Joe Biden really signals positivity for the dispute with the SEC from Ripple’s perspective.

The new SEC chief Gensler: Ripple hopes for cooperation

For example, the former head of the Commodities Futures Trading Commission (CFTC) is considered quite knowledgeable about the crypto market. But Gensler has already assessed XRP as a security several times in the past.

As far as Ripple and Ether are concerned I think there is a strong argument especially for Ripple or XRP given the centrality and the common enterprise around Ripple Labs, and because they sell it [XRP] every month and so forth. That’s really a discussion between them and the SEC, and ultimately I think if the SEC declares that it’s securities, it could end up in court, and so it’s not going to be the SEC, maybe not even a federal district court, but an appellate court that will decide, or the Supremes [the highest courts].

Gensler said during a 2018 lecture at the Massachusetts Institute of Technology (MIT). Still, Gensler certainly shows knowledge of XRP’s use case as a bridge currency. In another fall 2018 MIT lecture, he refers to XRP as a currency for illustrative purposes.