Ethereum instead of Bitcoin? The “big money” is turning around

While the Lightning Network is setting new records, “Big Money” is changing its investment strategy. The market update.

The crypto market is taking a quiet end to the week after a few stormy days of trading. Total market capitalization rose slightly by 0.6 percent on a daily basis, which is enough to push it back just above the 2 trillion mark. Among the ten largest cryptocurrencies, however, the color red dominates at the time of going to press. Bitcoin (BTC) and Cardano (ADA) and Polkadot (DOT) are the only coins that make up between 0.5 and 1.8 percent ground. Ethereum and Co., on the other hand, posted losses of between 1.5 and 4 percent.


Lightning Network sets new records

The Lightning Network is enjoying increasing popularity as a Bitcoin payment solution. With over 2,700 BTC worth around 116 million US dollars transferred between the payment channels, the second-layer network has set a new record. The number of payment channels and nodes are also only slightly below the peak values ​​achieved on Wednesday. The network now ramifies over 72,000 channels, with around 15,600 nodes connected.

The Lightning Network is gradually mutating into the backbone of the Bitcoin blockchain. The second-layer solution enables payment channels to be connected to one another and Bitcoin transactions to be processed off-chain. This has the advantage of being able to carry out any number of transactions without having to use the slow transaction path of the Bitcoin blockchain. The transactions are only transferred to the main chain when the status is final. This not only relieves the Bitcoin blockchain, but also enables microtransactions that are not profitable due to the transaction fees in the actual BTC network.

The Lightning Network is a valuable support and fulfills an important purpose for the integration of the cryptocurrency in everyday payment transactions. The second-layer settlement system is likely to receive another growth spurt in the near future. Twitter launched a BTC tip feature yesterday, September 23rd announced. In the future, users will be able to use the Strike payment app to buy tips in the crypto currency, with Strike being based on the Lightning Network.

Fed up with Bitcoin? JPMorgan sees trend reversal

According to a report by JPMorgan, the demand for Bitcoin futures among large investors is declining in favor of Ethereum. Accordingly, BTC futures were traded on the world’s largest futures exchange, the Chicago Mercantile Exchange (CME), at a rate of one Bitcoin. “This is a setback for Bitcoin and reflects weak demand from institutional investors,” cited “Business Insider”An excerpt from the report. Because of the costs of custody, the prices are usually higher than the value of a Bitcoin.

In contrast, the “big money” demand for Ethereum has been increasing since August. According to JPMorgan, the 21-day average of the Ethereum futures premium rose to 1 percent above the actual Ether price, which “indicates a much healthier demand for Ethereum compared to Bitcoin by institutional investors”.



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