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Ethereum

What if you could own a piece of the U.S. Mint? Check this out!

Updated: Jul 30, 2024
Published: Jul 18, 2023
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Imagine owning a piece of an institution that literally prints money

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Now, what if you could also own a part of a mint issuing currencies for various global economies?

Sounds implausible? Not quite!

For now, the USD is still the world currency of choice, but Ethereum’s shaping up to be the premier infrastructure that will power the next generation of money.

Whether stablecoins or CBDCs, Ethereum beats every other blockchain as the favourite infrastructure for digital money.

Let’s dive into how Ethereum’s taking over the future of money and what that means for your portfolio.

TLDR 📃

  • Aave chooses Ethereum as a home for a new decentralised stablecoin, $GHO
  • Brazil takes a copy of Ethereum to build its very own CBDC
  • A competing L1, Celo, prepares to transition into being an L2 on Ethereum instead
  • Wallet-to-wallet messaging now live on Ethereum through Coinbase Wallet
Disclaimer: Not financial or investment advice. Any capital-related decisions you make are your full responsibility.

Ethereum is powering new money, centralised and otherwise 💰

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There are several blockchain networks on which you can issue a stablecoin, but Ethereum still reigns supreme. 

Two main reasons make Ethereum the powerhouse it is: decentralisation and technology, and news about the two latest currencies illustrate those points perfectly!

Aave releases a decentralised stablecoin 👻

One of the biggest OG’s in DeFi has released a brand new stablecoin, and it’s entirely managed by code on the blockchain. 

Aave’s new decentralised stablecoin, $GHO, is right at home on Ethereum, and one of the reasons given for choosing Ethereum is that it is the most decentralised smart contract blockchain. After all, what would be the point of issuing a decentralised stablecoin if the network you were operating on was any different?

The currency’s grown to a respectable $3 million in market cap in the past few days as users mint new currency units using their collateral. The maximum supply is $100 million, but we won’t have to wait until that’s maxed out before seeing new liquidity pools

There may even be arbitrage opportunities since things priced in $GHO may have less liquidity at the start.

Brazil adopts Ethereum for its upcoming CBDC 🇧🇷

Another currency’s gearing up to launch, but this one’s $GHO’s centralised opposite

Brazil’s prepping to launch a CBDC, and the country has gotten a significant headstart on the setup – thanks to Ethereum.

Brazil has practically taken a copy of the Ethereum blockchain and is deploying a modified version to power a digital Brazillian Real. Brazil could have copied any other blockchain, but they chose Ethereum. 

This can only mean one thing! Beyond decentralisation, Ethereum’s also the most impressive under the hood.

Ethereum expands with new allies and new features 🤝

You know the saying, “If you can’t beat them, join them”? That’s what Celo’s doing.

Otherwise, how would you explain a competing L1 blockchain preparing to become an Ethereum L2? This news is pretty much unprecedented, but since Celo is an EVM-based blockchain (i.e., a copy of Ethereum), it can easily plug into Ethereum.

Celo’s establishing a model other EVM-based blockchains like Avalanche and Fantom can follow, especially once they see Celo realise the benefits of being part of a larger network. 

Currencies gain value through the size of their networks. Given its size and security, joining Ethereum is a no-brainer.

It’s no wonder everyone’s excited to jump on Ethereum, but Coinbase introduced another reason this week: wallet-to-wallet messaging! Using Coinbase Wallet, you can now chat with any Ethereum wallet using the same encryption levels that WhatsApp and Telegram offer. 

This is exciting because it makes networking possible on one of the biggest blockchain networks, the premier choice for new currencies and apps.

Ethereum ticks another box of institutional players 🌲

We are ETH fanboys today – and with good reason.

Ethereum’s outclassed competitors in the latest ESG rankings by CCData, standing as the only blockchain to receive a AA rating

This is huge news from the institutional side, where ESG metrics determine whether institutions can invest in an asset or not. 

ESG measures how responsible assets are for the environment and world overall, and by this metric, Ethereum beats every other blockchain! 

This is plenty of validation for traditional investors looking for points to justify an investment in ETH.

Price analysis 📊

Ethereum price chart

Ethereum price chart​​It didn't take long for ETH to reach $2,000 again, but here we are.

Last week, the asset briefly broke above $2,000, but sellers did their bit, and the price returned to the $1900s. It will take longer to break this crucial level and head to $2,500, but keep in mind that it will require a market-wide bullish performance.

ETH might be the 2nd biggest asset in crypto, but its price is still correlated to Bitcoin's price action. 

It sucks, but we'll need the king to perform well if we expect ETH to reach new yearly highs. You can find more on that here.

Our eyes are now on another test of $2,000 as resistance. A weekly closure above this level will confirm $2,500 as our next target.

Cryptonary’s take 🧠

Ethereum is powering the new generation of money on the traditional and Web3 side of digital currencies. Holding ETH simply means that you own a piece of the pie that’s being baked.

The development of new stablecoins like $GHO and CBDCs like Brazil's digital Real on Ethereum are shining examples of Ethereum's versatility and potential

Whether you're a seasoned crypto enthusiast or a newcomer to the digital currency space, keep a close eye on Ethereum's trajectory. As it evolves, so too do the opportunities it presents. 

The rest of the world’s recognising what we’ve known for years: ETH is ultra-sound money.

As always, thanks for reading! 🙏

Cryptonary, out!

 

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