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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market
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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

How Cosmos Could Outgrow Ethereum, Making The Case

Reynaldo Marquez
Reynaldo Marquez
3 years ago
2 mins read
Ethereum Cosmos Jumps 38%–Textbook Indicator Points to 70% Price Rally

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In a couple of months, Ethereum should fully deploy its Proof-of-Stake (PoS) capabilities with “The Merge”. The network continues to dominate the decentralized finance (DeFi) and non-fungible token (NFT) sector, some of the most important innovative trends in the crypto industry.

Related Reading | The Last Time This Bitcoin Indicator Turned Bullish It Saw a 65% Hike, Will It Happen Again?

At the time of writing, Ethereum trades at $3,200 with a 6% loss in the last 24-hours.

Ethereum ETH ETHUSD
ETH with moderate losses on the 4-hour chart. Source: ETHUSD Tradingview

ETH’s spot as the blockchain holding popular sector continues to be put into questioning as the “Ethereum Killers” gain market share. Cosmos and its ecosystem have been attracting attention as Terra and Osmosis become more popular.

Recent data posted by monitor Token Terminal suggest Ethereum’s daily protocol revenue has been migrating towards Terra (LUNA) and Avalanche (AVAX). As seen below, this metric saw an increment back in October 2021.

ETH’s daily protocol revenue peaked in November that year and began a downside trend from around $80 million to below $20 million. Token Terminal noted the following on this trend and the impact of the upcoming “Merge” on stopping it:

And the past 90 days the rate of change in revenues is also slowing. AVAX, Luna and some other protocols are taking market share! The merger may flip this trend.

Ethereum ETH ETHUSD Cosmos
Source: Token Terminal via Twitter

In that sense, Token Terminal wonders if Cosmos could become the fastest growing blockchain and outperform Ethereum on these terms. In favor of this thesis, the monitor pointed out the explosion in the Cosmos ecosystem and the time it has taken for it to reach its current adoption levels. Token Terminal said:

(…) what are the odds of Cosmos eventually outgrowing Ethereum? Just consider how long it has taken for L2s to go live versus the pace at which new IBC-enabled chains are going live.

Ethereum To Keep Its Spot As King Of DeFi?

Unlike Ethereum, the protocols build with Cosmos infrastructure (CosmosSDK) seem more flexible and with potentially fewer tradeoffs than if they were built on layer 1. By using this development kit, the project can create “a blockchain that’s dedicated to the asset exchange use case”.

Token Terminal claims this provides the project with more optimization and with tools to improve upon Ethereum’s limitations. As seen below, the Cosmos ecosystem records important growth since 2020.

Cosmos Ethereum ETH ETHUSD
Source: Token Terminal via Twitter

As NewsBTC reported, two experts believe the opposite. Former BitMEX CEO Arthur Hayes and Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone are bullish on Ethereum going into “The Merge”.

Hayes believes that this will set ETH to a 5-digit price and re-take the market share it has lost from the “ETH Killers”. Hayes argues that Ethereum is still the most active blockchain in terms of development and this event will only accelerate this innovation process.

Related Reading | TA: Ethereum Turns Red Below $3.4K, Why Upsides Might Be Capped

McGlone agrees and predicted ETH’s price could reach similar levels around $10,000. The Bloomberg Intelligence expert believes Ethereum is becoming internet collateral with strong support for future appreciation of its DeFi and NFT dominance.

 

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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