Financial
Ethereum surpassed Visa in 2021 concerning the sums traded.
Ethereum has a high usage rate and a high fee structure, and the implementation of EIP-1559 has resolved some issues. In 2021 Ethereum Surpassed Visa concerning the sums traded on the network.
A detailed analysis of Ethereum in 2021 by Josh Stark points out that the second-largest cryptocurrency in the world has overtaken Visa in terms of value transacted.
Last year alone, the Ethereum network handled the equivalent of $11.6 trillion in transactions.
In addition to this information, the article also provides data on the total fees paid on different blockchains, including Bitcoin.
It also analyzes the arrival of second-layer solutions and the arrival of different players in the sector.
Finally, it is also possible to find detailed information about the ratio between emission and burning of ETH after the introduction of EIP-1559.
Ethereum surpassed Visa
The sums traded by Bitcoin and Ethereum are perhaps the most unexpected facts uncovered in this research.
While Visa transacted a total of 10.4 trillion dollars in 2021, Bitcoin moved US$ 4.6 trillion, passing PayPal.
Ethereum managed to double the volume of BTC and surpass Visa after closing the year with a volume of transactions equivalent to 11.6 trillion dollars.
Although it seems that Bitcoin is losing this fight, it is worth remembering that most transactions on Ethereum involve tokens, fungible or not. That is, both have their merits here.
High Usage and High Fees on Ethereum Network
As most blockchains work as an auction system, where transactions with higher fees are accepted first, it is no surprise to find expensive fees when networks are overloaded.
With the explosion of DeFi, NFT, play-to-earn gaming sectors, scalability has been Ethereum’s weak point ever since. In other words, he could be a lot bigger if his rates were cheaper.
The chart below compares some payment solutions’ total fees paid in 2021.
While a 10-fold difference between ETH and BTC draws attention, Visa’s $24 billion is the focus. After all, this profit belongs to the company. In cryptocurrencies, this profit goes to the miners.
Second layer solutions
Because of the scalability mentioned above, the latter half of 2021 was defined by second-tier solutions on Ethereum. Escaping high fees is the main reason.
The article highlights that Ethereum validated around 1.2 million transactions per day and that the arrival of these second-tier solutions is managing to increase this number, which is currently at its limit.
The Growth in use cases of Cryptocurrency
Another important observation from Stark’s Ethereum 2021 retrospective is the expansion of cryptocurrency use cases, mainly linked to Ethereum itself.
While until the year 2020, the vast majority of people who lived off cryptocurrencies were investors, developers, and companies. The expansion of non-fungible tokens (NFTs) attracted other professionals to this universe.
For example, artists selling their artwork on NFT are often used by athletes such as Stephen Curry, which also has strong ties to Bitcoin and cryptocurrencies. Currently, he is a partner in one of the largest exchanges in the world and collects NFTs.
Stark compares revenue between Ethereum and other services used by artists such as Spotify and YouTube Music in the chart above. Pointing out the potential of blockchain, still little explored.
The Ethereum burns with the EIP-1559.
Finally, the report highlights Ethereum’s economic shift in August through EIP-1559. With it, part of the transaction fees began to be burned, reducing the total supply of ETH.
With a reward of 2 ETH per block, generated every ~15 seconds, Ethereum would have inflation of around 11,520 ethers per day. In November, the network burned its one-millionth ETH.
Despite this, the amount was lowered once the burn was introduced.
Highlighting the end of October, when Ethereum became a deflationary asset for eight consecutive days, that is, the number of ethers decreased in this period.
Ultimately, this shows that ignoring cryptocurrencies is a mistake.
Like the director of Microsoft, the most visionary already admit that Ethereum will be the new application store.
On the other hand, Bitcoin gains more space as a store of value with each passing day, and today both are dominant in their areas.
The Solana surge is evident as it has recently seen a significant boost in market presence and price. This uptick is primarily driven by growing institutional investments and the successful performance of its decentralized exchange, Jupiter.
The focus will be on the factors driving this growth and the expectations surrounding its price potentially exceeding $200.
Solana Surge: Institutional Investments and DEX Prowess
Solana has garnered significant attention from institutional investors, with substantial inflows marking its ascent as a preferred asset in the crypto space. Particularly, investment products related to Solana have attracted remarkable interest, with investment flows increasing notably over recent months.
Grayscale Solana Trust, for instance, trades at a significant premium, indicating high demand among institutional players. Additionally, the launch of a dedicated Solana fund by major financial players like Galaxy and Bloomberg further underscores the institutional commitment to Solana.
Now, let us dig deeper into how these factors contribute to Solana’s market dynamics and, at the same time, what future trends we can expect as Solana evolves in the competitive cryptocurrency landscape.
Analyzing the Impact of Institutional Investments on Solana
Solana (DEX), Jupiter exchange, plays a critical role the ecosystem, contributing to the overall trading volume and enhancing token utility in the crypto market.
The combination of robust institutional support and success-driven decentralized finance (DeFi) applications establishes Solana as a prominent player in the cryptocurrency realm.
Solana Surge: Key Institutional Players and Their Influence
Significant investment flows into various blockchain-focused funds and trusts have demonstrated institutional interest in Solana.
Grayscale Solana Trust, in particular, has seen a staggering 869% premium, indicating strong demand among institutional investors.
Also, new funds facilitated by major financial players like Galaxy and Bloomberg have further boosted Solana’s visibility and attractiveness in the institutional arena.
Investment Trends and Future Outlook
The consistent inflows into Solana-related investment products underscore a growing trend of institutional confidence.
With Solana leading altcoin investments and capturing significant portions of the institutional inflows, it is positioned as a top contender in the crypto market for long-term growth.
The increasing openness of institutional investors to altcoins, especially Solana, suggests a broader acceptance of its underlying technology and potential for high returns.
The Role of Institutional Confidence in Crypto Valuations
Institutional investments are not just about capital inflows; they also bring credibility and stability to the market.
The enhanced institutional confidence has led to reduced volatility and a steadier price trajectory.
The institution’s requirement to retain underlying assets to hedge against their positions in derivatives markets, such as futures and options, is primarily to blame for this shift.
Comparisons with Other Cryptocurrencies
While Bitcoin and Ethereum have traditionally dominated institutional attention, Solana’s unique offerings, like lower transaction fees and faster speeds, have carved out a significant niche for them.
Its capability to handle complex decentralized applications efficiently makes it an attractive alternative to Ethereum for some investors.
Jupiter DEX: A Catalyst for Solana Price Surge
How Jupiter is Redefining DEX Operations
Jupiter DEX, has significantly impacted its ecosystem by boosting its transaction volumes and liquidity.
This DEX facilitates a large volume of transactions and enhances the user experience with its innovative features and high transaction speeds, which are crucial for DeFi operations.
Technological Innovations and User Experience
Jupiter’s success can be attributed to its seamless integration within the Solana ecosystem, providing users with efficient and cost-effective trading solutions.
Its ability to handle large volumes without compromising on speed or security makes it a standout platform, fostering a more robust DeFi environment on Solana.
Jupiter Market Performance and Volume Analysis
Jupiter has rapidly climbed the ranks to become one of the top players by volume among decentralized exchanges.
In addition to demonstrating its operational success, this surge in activity shows how the cryptocurrency community is becoming more engaged and trusting of Solana DeFi capabilities.
Metrics and Growth Indicators
The increase in trading volumes and user engagement on Jupiter underscores the DEX vital role in propelling Solana market cap and investor interest.
As Jupiter continues to expand its offerings and improve its technology, it is expected to play a central role in shaping the future trajectory of Solana in the crypto market.
Future Projections: Can Solana Exceed $200 again?
Market Sentiment and Technical Analysis on Solana
The bullish sentiment surrounding Solana is palpable, with experts and analysts citing its robust technological framework and growing institutional interest as key drivers.
Technical analysis of Solana price trends suggests a potential breakout above the $200 mark, especially considering its recent performance and increased market participation.
The growing volume of DEXs like Jupiter and persistent institutional investments, which offer a solid foundation for price stability and growth, support this theory.
Expert Predictions and Chart Trends
Financial analysts and crypto experts have noted token resilience and innovative capabilities, positioning it as a strong contender in the cryptocurrency market.
Chart trends show a consistent upward trajectory in trading volumes and market capitalization, hinting at a possible surge past the $200 threshold if current market conditions persist.
The Role of External Market Factors
External factors such as global economic conditions, regulatory changes, and technological advancements play a significant role in the cryptocurrency market.
Solana’s flexibility in responding to these changes and its ability to take advantage of emerging technology trends may play a role in its potential to surpass $200.
Regulatory Environment and Competitor Movements
The regulatory landscape for cryptocurrencies is an important factor. Positive developments, such as the approval of crypto products and the institutionalization of crypto investments, can benefit Solana.
Conversely, stringent regulations could pose challenges. Additionally, movements by competitors, especially Ethereum and its ongoing upgrades, could impact Solana’s market positioning and price dynamics.
Additional Thoughts
Jupiter, Solana’s decentralized exchange, has been a huge success and has contributed significantly to the company’s market surge.
The combined effect of these factors not only enhances Solana’s market credibility but also boosts its price stability and growth potential.
With expectations high and market sentiment bullish, Solana is poised to potentially exceed the $200 mark, contingent on sustaining its current momentum and navigating the broader external factors effectively.
FAQs on Solana Intitutional Investments and DEXs
- What are the main factors driving institutional investments into Solana?
Institutional investments in Solana are primarily driven by its technological advancements, high transaction speeds, and low fees, which offer significant efficiency for decentralized applications. Additionally, the successful performance of its decentralized exchange, Jupiter, and the increasing adoption of Solana in various crypto financial products have bolstered investor confidence. Recent launches of Solana investment funds by major entities like Galaxy and Bloomberg have further signaled strong institutional support. - How does Jupiter DEX compare with other top decentralized exchanges in terms of volume and technology?
Jupiter DEX stands out due to its integration with the Solana blockchain, known for high-speed transactions and low costs, which are critical in high-frequency trading environments typical of decentralized exchanges. It competes closely with other top DEXs by offering superior transaction speeds and lower fees, which have attracted a significant user base and increased its trading volumes, thus enhancing its market position compared to other DEX platforms. - What are the potential risks and rewards of investing in Solana at its current price point?
The rewards of investing in Solana include potential high returns due to its innovative technology, growing institutional interest, and robust ecosystem developments like its DeFi applications. However, risks involve market volatility, regulatory changes, and competition from other blockchains like Ethereum. Investors must also consider the technology’s nascent stage, which could be susceptible to technical challenges or security vulnerabilities (Blockworks). - How might regulatory changes impact Solana market position and price?
Regulatory developments can significantly impact Solana’s market position. Positive regulations that support the growth of cryptocurrencies and blockchain technology could enhance Solana’s adoption and increase its price. Conversely, stringent regulations or negative legal attention could restrict its growth or lead to decreased market confidence, adversely affecting its price. - Can Solana maintain its growth trajectory in the highly competitive DEX market?
Solana’s ability to maintain its growth trajectory in the competitive DEX market depends on its ongoing innovation, scalability, and ability to attract and retain users. Its current technological edge, particularly its high transaction speeds and low fees, provides a strong foundation. However, continuous improvements and adaptations to emerging market needs and technological trends will be crucial for maintaining its competitive advantage.
Financial
Web3 Investors from 16 nations converged to witness these 6 Graviton-backed Indian startups make their pitch.
Graviton Web3 Accelerator’s digitally simulcast Demo Day event saw participation from VCs and angels around the world, focused on a cumulative raise of $10Mn for their first cohort.
Graviton, a web3-focused accelerator for emerging markets backed by global VCs such as Hashkey Capital, Moonrock Capital, NGC Ventures, 369 Capital, Ascensive Assets, Stacker Ventures, MH Ventures, G1 Ventures, Infinity Ventures Crypto (IVC), and GravityX Capital, recently organized its first-ever digitally simulcast Demo Day.
The event saw participation from over 70 global investors from 16 countries, with all eyes converging on what the six teams at Graviton are busy building and scaling. These teams have emerged as outliers from a pool of 300+ startups that had applied to get accelerated through the Graviton ecosystem.
Graviton’s uniquely designed accelerator program arms a limited cohort of promising early-stage web3 founders with a healthy infusion of institutional capital (marked by a seed investment into each team), technical grants and integrations from a vast partner ecosystem, mentorship from proven industry experts to help the teams with business strategy, tech fundamentals, growth marketing, and fundraising, as well as expanded networking opportunities to help them raise serious capital in the long run.
“While the ongoing ‘bear market’ sentiment fosters a conservative investment mindset around the world for crypto platforms, we at Graviton believe that world-class technology products led by visionary founders are always ahead of the curve, and always lucrative to serious investors”, remarked Arpit Nik (Founder & CEO at Graviton and a General Partner at GravityX Capital). Arpit and team have been hard at work since December last year, to identify India’s strongest founders with a penchant to build for the decentralized web.
The six teams that emerged frontrunners amidst a plethora of applicants, include:
Spydra – An enterprise grade blockchain solution that is helping large organizations migrate their existing tech stack from web2 to web3, making the transition as frictionless as possible. Led by the seasoned and suave Manish Tewari (with massive previous exits at Koovs.com and Pokkt), Spydra is powering the largest status-quo migration in enterprise tech, since the advent of AWS and cloud-computing. They’re already clocking an annual run rate of $100K in revenue, servicing clients such as Raymond, Myntra, and the National Payments Corporation of India.
Wall – This team is solving one of the most significant challenges of web3, i.e. community building. Wall helps businesses acquire and take community members through beautifully mapped custom user journeys, helping them claim rewards (such as Airdrop tokens), while completing platform-mandated tasks across multiple touch points (such as Twitter, Telegram, Discord, etc). It offsets the community moderation costs for emerging web3 platforms, and after helping 40+ projects design custom reward pathways, Wall is fast emerging as the go-to community building solution for L1 and L2 ecosystems. Wall is helmed by Anuj Kumar Kodam (ex IIT Kharagpur, IIM Calcutta, and formerly part of the founder’s office at Ola Cabs).
Strive – Global opinion on the utility of NFTs is divided, and Strive is here to change that. With a proprietary layer that facilitates the sharing and trading of NFT utilities, the team is expanding the possibilities of what one can do with NFTs today. Using Strive, any business, brand, or artist-led community can monetize their audience and influence with ease. Kartik Mehrotra (ex UC Berkeley) leads the show at Strive Network.
Zoth – Crypto users of today are struggling to find secure and passive income generating opportunities, despite the total value of crypto finance having breached $1Trillion as of 2022. Pritam Dutta (ex Ab-InBev, Mahindra & Mahindra) and team Zoth are on a mission to democratize global access to affordable capital, through the tokenization of real world assets. They’ve already deployed $500K in capital, and have a little under $10M in their managed assets pipeline.
Fetcch – The motto and creed at Fetcch is to make web3 payments as simple as Venmo or Paypal. Mandar Ray, CEO at Fetcch, explains that they’re building an abstracted middleware layer that removes the complexities associated with wallet addresses, which in turn is a giant leap towards the mainstream adoption of web3. Recently, the team has opened up beta access to Fetcch Pay, their flagship payments product.
GG Nation – eSports is booming, and team GG Nation has done a stellar job of capturing the mindshare of student gamers across 250+ Indian colleges in 18 cities. Today, GGNation has more than 200,000 gamers on its roster, with an aim to onboard India’s first million gamers. Abhinandan, the founder and CEO, has a remarkable track record with two of India’s biggest sports IPs, Indian Racing League and Premier Futsal, achieving impressive media value, viewership, and live attendance.
Over the last 16 weeks, these teams have been immersed in interactive workshops with a team of 50+ remarkable mentors – all of whom are established thought leaders in their respective domains. And in exchange for their time and imparted wisdom, Graviton has created a circular rewards model, with each mentor acquiring nominal equity in these teams, proportionate to the time they spend nurturing each product. Arjun Kalsy (ex-Growth lead at Polygon), for instance, has a vested interest in the success of each of these six teams, as one of their growth mentors. The same is true for Parth Chaturvedi of Coinswitch Ventures, Vijay Pravin of bitsCrunch, and many others who have become an integral part of the growth journeys of all 6 teams.
The success of Graviton’s Demo Day is owed largely to the efforts of Program Director Jeffrey Broer, who is a seasoned web3 investor at Mulana Capital, and a highly sought-after blockchain mentor and speaker.
“Supporting visionary entrepreneurs on their transformative journeys in the web3 realm brings me immense joy. I extend my heartfelt gratitude to the nurturing Graviton ecosystem for promoting an inclusive culture of progress. May the six teams embark on a remarkable path of growth and achievement!”
– Vijay Pravin (CEO, bitsCrunch & Growth Mentor at Graviton)
“All hands aboard is the philosophy that drives us to help startups and founders. We’re glad that this team of web3 disruptors came together at Graviton, and forever indebted to our invaluable mentors, who have helped craft this journey together. With everyone’s hearts set on building sustainably for the decentralized internet, we’re just really excited about what the future holds for the Indian web3 space”
– Vishal Sanap (Head of Portfolio Growth & Development at Graviton)
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