Green in the screen is a good day! Whilst we’ve been seeing more red in recent days, it’s a bit of a knee-jerk reaction with most taking it as a healthy correction — off the parabolic run-up we’d enjoyed. And this was not just a $BTC cavalcade. The moment Ethereum 2.0 hit the minimum 524,288 ETH to activate 2.0’s Beacon Chain, $ETH lost a tranche of support from the speculators selling on the news. A shrewd move considering the track record of Ethereum meeting self-imposed milestones.
MTD the trade would have pocketed you +62% (at its peak). Peanuts compared to Ripple which eclipsed that trade by over fourfold:
The reason? Well, nothing new. The proposition of $XRP as an investment is dubious given the monster of an overhang posed by many sources of liquidity, not least to mention one billion $XRP dumped into the market by the foundation’s escrow each month like clockwork. With the 55% supply depleted by 2022. Newbies will surely be attracted to the big name partnerships that the network has forged and this will have in turn, served as validation for the protocol’s token. Volumes have exploded on this rip topping $25B on Nov 25th (a 5x increase vs 30 ADV).
But indicators of euphoria were everywhere. Silvergate Bank (SI US) popped on gangbuster earnings. Arguably one of the most important fiat gateways connecting the industry to the traditional fiat network, they will benefit from all volume, regardless of price action.
And with $BTC now punching in 32~45B in turnover a day, they are not complaining.
Even Riot Blockchain (RIOT US) basked under the sun.