Ethereum Mining Revenue Outperformed Bitcoin in July, but Both Posted a Sharp Drop

Audy Castañeda
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Ethereum Mining Revenue Outperformed Bitcoin in July, but Both Posted a Sharp Drop

Ethereum mining revenue surpassed Bitcoin in July. Both digital assets saw mining revenue decline in the year-on-year time frame.

Ethereum and Bitcoin miners saw further revenue declines during the month of July as prices of both cryptocurrencies failed to make new highs.

According to experts, July ended up being the worst month for Bitcoin miners so far this year, who were able to generate around $574.89 million in revenue during the seventh month of the year. This past month, Bitcoin miner revenue saw a 13% drop from June’s value of roughly $667.94 million.

Aside from this, the total return on BTC mining revenue over the past year has also dropped by 40% from July 2021, when around $971.83 million in revenue was recorded.

Ethereum Again Surpasses Bitcoin Mining Revenue

While Bitcoin miners managed to raise $574.89 million in July, Ethereum miners generated approximately $596.33 million.

Unlike Bitcoin, Ethereum’s revenue has soared 8% since June. As of June 2022, Ethereum mining had generated a total revenue of $549.58 million.

Like Bitcoin, Ethereum mining also saw a year-over-year monthly drop in July. Around $1.11 billion in revenue was generated in July 2021, while the figure for 2022 fell by 46%.

Although BTC remained the most popular and largest digital asset by market cap in July, miners gained more by contributing energy to validating transactions involving ETH than BTC.

Fall in Mining Income: Causes

First of all, you need to understand how the miners’ income is calculated. This is done by multiplying the total number of coins earned as rewards in July by the price of the coins (BTC and ETH).

That said, it can be concluded that the drop in digital asset market prices was the cause of the drop in mining revenue.

Throughout July, Ethereum was trading between $1,034 and $1,760. Compared to the same period in 2021, Ethereum traded in the price range between $1,722 and $2,551.

In July, Bitcoin traded in the price range between $18,967 and $24,573. In July 2021, miners made more money, while BTC was trading between $29,361 and $42,236.

What to Expect in August

In order to visualize what might come ahead, it is worth assessing what has happened this week to BTC and ETH.

BTC, currently at $28.83, is down 15.92% in the last 7 days and is up 83.77% on a monthly basis. It ranks 80th with a market cap of $500 million.

Meanwhile, ETH, currently at $36.39, it has fallen by 14.43% in the last 7 days and is up 141.18% in monthly terms. It ranks 19th with a capitalization of $4.9 billion.

According to Jose Maria Lerma, Financial Manager and es.investing.com collaborator, both Bitcoin and Ethereum indicated a possible market floor, and therefore, “a possibility of recovery and upward momentum, leaving the markets with a clear purchase option.”

However, the expert suggests caution, confirming whether there is a new bullish process or, on the contrary, “the markets start a strong downward momentum that leads them to seek the previous lows in the first place.”

By Audy Castaneda

An Analysis of Bitcoin Perpetual Contracts Indicates a Possible Trend Reversal

Alexander Salazar
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An Analysis of Bitcoin Perpetual Contracts Indicates a Possible Trend Reversal

The analysis of BTC bullish prices suggests that the cryptocurrency will reach USD 24,702. The study of BTC bearish prices shows that there is a downward trend.

The analysis of Bitcoin (BTC) Perpetual Futures through price patterns and moving average help predict what will happen to the cryptocurrency.

Like futures contracts, perpetual contracts allow buying or selling an asset on a predetermined date at a specified price. They are gaining popularity as traders can hold leveraged positions without expiration.

The Qualities that Make Bitcoin the Best Crypto Asset

The pioneering cryptocurrency operates without centralized control by banks or governments, relying on software and peer-to-peer encryption.

A public ledger registers all Bitcoin transactions and keeps the copies on servers worldwide. Miners collect these operations into a block every ten minutes and permanently add them to the blockchain.

It is possible to exchange Bitcoin for cash or any other asset on online cryptocurrency exchanges, in person, or on communication platforms. That advantageous situation allows even small businesses to accept BTC as payment for their products or services.

When Bitcoin emerged, people could mine coins instantly, even with a personal computer. Since miners can choose which transactions to group into a block, the sender can add variable fees as an incentive.

The Hourly Analysis of the Price of Bitcoin

The most recent hourly analysis of the price of BTC reveals the information explained below.

A descending channel shows two downward trend lines above and below a price representing resistance and support levels. A trend line supporting lower lows and a diagonal resistance level defines that pattern.

When the price is around the upper trend line, it looks for opportunities. However, aggressive traders can go short and long in both trend lines, searching for a bounce or pullback. Descending channels allow predicting general changes in the trends of the Bitcoin price.

BTC is currently worth around USD 23,184 but could reach the USD 24,702 resistance level if the pattern continues. The price could drop to USD 21632 while the sell level could reach USD 22645 if the trend reverses.

The Moving Average of the Price of Bitcoin

The price of BTC currently undergoes a bearish trend, slightly below 50 MA and below 200 MA. When it moves above 50 MA and 200 MA, it will be a bullish state. Therefore, BTC is in a bearish situation, with a high possibility of a trend reversal.

Bitcoin is trading at around USD 23,184 and has accumulated a 2.8% loss over the last week. While its daily trading volume is above USD 23.73 billion, its market capitalization is about USD 443.13 billion, according to CoinGecko.

The pioneering cryptocurrency has become increasingly relevant in the global economic system. Experts have determined that its price influences the rest of the crypto market while external factors affect it. It is advisable to research before investing in it to make accurate predictions about where it might head next.

By Alexander Salazar

Here’s What You Could Be Missing about AAVE’s Latest Charting ‘Push’

Audy Castañeda
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Here’s What You Could Be Missing about AAVE’s Latest Charting ‘Push’

AAVE price action has finally broken out of its downward resistance after struggling to find any directional balance over the past few days. The move came after the protocol announced the launch of a new liquidity mining program for Optimism.

The world of decentralized finance or DeFi on Ethereum has a variety of exponents and services, and one of them is AAVE. AAVE (Danish word meaning “ghost”) is a decentralized lending platform that has established itself as one of the largest and longest-running projects in this sector.

The announcement about the Optimism liquidity mining program appears to have fueled a shift in investor sentiment in favor of the bulls. This is because Optimism is one of the most popular Ethereum Layer 2 scaling solutions, facilitating high volumes.

According to its website, Optimism’s on-chain value exceeds $800 million. In fact, it has reportedly helped save more than $1 billion in gas fees.

On August 4, @AaveAave, builder of an open source and non-custodial liquidity protocol, posted the following Twit:

“The @OptimismFND Liquidity Mining program is live on Aave V3. The program will run for 90 days with a distribution of 5M OP to the Aave Protocol’s Optimism Market users. Claiming support for rewards will be active soon! Feeling Optimistic.”

AAVE Price Action

The impact on AAVE’s price action means that investors expect the move to increase demand for the cryptocurrency. Although AAVE managed to break out of its descending resistance, it should still deal with friction near the $101 price range.

The explanation is that the same level represented resistance in the second half of July.

What to Expect

AAVE’s rise in the last hours was courtesy of the buying pressure that had been building since August 2. This was around the same time that the IMF pivoted due to accumulation, and the same goes for the RSI. However, it is not clear if the latest advantage will last.

AAVE’s current bullish performance could be short-lived unless the market manages to maintain its favorable bullish sentiments. This is because the main directions supply metric recorded a drop of 0.41% in the last few hours, indicating that the whales have been cashing in.

The advantage was also supported by a smaller increase in active addresses, compared to the previous spike in addresses on August 3.

The AAVE whale transaction count also saw an increase in activity over the past two days and this supported the latest uptrend.

However, whale transactions have been within an average daily count. In other words, nothing out of the ordinary seems to be happening in terms of buying pressure.

In short, although AAVE’s price increase reflected the Optimism announcement, its on-chain metrics explain the lack of strong momentum. Therefore, your short-term advantage may be limited.

By Audy Castaneda

Three Fundamental Factors Influence the Price of the Pioneering Cryptocurrency

Alexander Salazar
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Three Fundamental Factors Influence the Price of the Pioneering Cryptocurrency

Austrian economist Saifedean Ammous thinks Bitcoin can fix the economic collapse, although its price is steadily dropping. The average price growth over the two previous halving events leads experts to predict that BTC will trade at USD 284,272.

The price of Bitcoin (BTC), the pioneering cryptocurrency, recently opened the market with a bullish trend. After suffering a drop over the last two days, it recovered from its USD 23,000 levels.

Despite trading just above USD 23,000, the leading cryptocurrency remained below its all-time high of USD 67,000 in November 2021.

However, the outlook of BTC is still optimistic if three crucial factors (inflation, halving, and adoption) influence its price.

Bitcoin Is the Crypto Asset with the Highest Volatility

Mike McGlone and other financial experts believe Bitcoin will prove one of the most profitable assets amid market volatility. They expect this situation will occur mainly in the next half of 2022.

Saifedean Ammous, the author of The Bitcoin Standard and Austrian economist, also thinks Bitcoin can fix the current economic collapse.

Jameson Lopp, a Bitcoin advocate and software developer, created a chart showing the inflation rate of decentralized finance (DeFi). It indicates that the price of BTC is steadily decreasing alongside the number of coins still available to miners.

According to estimated data, the inflation rate in the DeFi market will drop to around 0.39% in late 2030.

Halving Events Have Affected the Price of Bitcoin

Bitcoin has undergone several halving events, after which its price has increased.

The first Bitcoin halving occurred in November 2012, the same year the price jumped from USD 12 to USD 1,200. Since the second half of July 2016, it recovered from USD 647 to USD 19,800 as of December.

The price of Bitcoin rose by 463%, going from USD 8,700 to USD 49,000, on May 11th, 2021. That happened one year after the most recent halving event in May 2020.

Experts expect Bitcoin to trade at USD 284,272 for the next halving event scheduled for 2024. That estimation relies on the average price growth over the two previous reductions in the price.

Institutional Interest Also Influences the Price of Bitcoin

Institutional interest is also a fundamental factor in the cryptocurrency space and the price of Bitcoin.

Investment management corporation BlackRock has recently collaborated with cryptocurrency exchange Coinbase to connect its customer base holding shares.

Experts have constantly talked about the increasing relevance of Bitcoin in the global economic system. They have said its price influences the rest of the crypto market as a ripple effect. However, external factors like the Russia-Ukraine conflict and the Fed’s rise in interest rates can also affect the cryptocurrency.

Bitcoin is trading at around USD 23,183 and has accumulated a 2.8% loss over the last 24 hours. While its daily trading volume is above USD 26.06 billion, its market capitalization is about USD 443.11billion, according to CoinGecko.

By Alexander Salazar

Cryptoactives Align with New Investments to Promote Clean Energy

Audy Castañeda
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0
Cryptoactives Align with New Investments to Promote Clean Energy

Increasingly, socio-environmental responsibility becomes a determining factor for investors around the world.

In recent months, the high volatility of the crypto market has been demonstrated; after having a value greater than 3 trillion dollars, to reach 0.9 trillion dollars. In addition, currencies such as Bitcoin or Ethereum, dependent on market supply and demand, are the most affected in the world.

This is why, since 2020, stable tokens began to become very famous, whose purpose is to maintain the digital advantage of crypto and the transactional security offered by Blockchain technologies. Unlike speculative cryptocurrencies, these do not depend on market volatility, as they are backed by the value of a currency such as the dollar or the euro, and even by assets such as gold or real estate.

Unergy’s ‘uWatt’

Unergy, a Colombian startup that developed a crowdfunding platform to invest in solar energy projects, decided to create its own token: the ‘uWatt’. Such token will represent real Watts of projects installed in different Latin American countries, which will generate annual returns of more than 11%, from the production and sale of clean energy.

Eduardo Andrés Ospina, co-founder and CEO of Unergy explains that “the world today needs a crypto project that bases its value on real assets that generate real value for the world, such as profitability and sustainability, since today more than 2.4 trillion dollars in clean energy investments to avoid a climate disaster in the coming years.”

How the Project Works

Ospina explains that it is necessary to understand that a solar panel, a wind turbine, or any power generation project, has a variable that determines the generation capacity energy: the “Watt”. Therefore, the number of “Watts” present in a project determines the size and energy production.

“In this way, we defined that the best thing was to tokenize them, so we developed an algorithm and protocol that allows our users follow up on your investment, through our crypto token, since it is totally linked to the real asset”, added Ospina.

This means that if there is a 100,000 Watt project that costs $100,000, 100,000 uWatts will be generated and in turn each token it will cost 1 dollar. Value that is not depreciated by supply and demand, since the token is backed by a real asset.

In the end, the ‘uWatts’ are the representation of what generates the clean energy that companies consume and that they pay month to month, thus generating the profitability that any user receives for the possession of such tokens.

Ospina believes that what they have created with many years of work, innovation, and experience in the renewable energy sector is a decentralized finance protocol (DeFi), which allows anyone in the world to help finance solar energy projects in emerging markets, which are the ones that most require this type of capital.

“This is important because it allows breaking the traditional schemes where few companies in the world are the owners of the energy that we consume, in this case, millions of people in the world would be the owners of the uWatts that represent those clean energy assets that we are going to consume in the future”, highlights the CEO of Unergy.

It should be noted that Unergy has already exceeded 10,000 million pesos in financing solar energy projects and this will be a boost gigantic for a purpose of managing in the future to finance the more than 2.4 trillion dollars that the world needs to avoid climate mayhem. Whether or not that goal is achieved is something that remains to be seen.

By Audy Castaneda

Expert Points out Five Advantages of Tokenization in the Energy Market

Audy Castañeda
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0
Expert Points out Five Advantages of Tokenization in the Energy Market

Cassio J. Krupinsk, CEO of BlockBr, explains the advantages of using Blockchain in energy tokenization.

The commercialization of renewable energy certificates (RECs) is generating a lot of interest among entrepreneurs in Brazil and throughout Latin America, especially with the possibility of tokenizing these assets.

With these certificates, companies can attest that the energy was generated from renewable sources. An alternative to this greater transparency is the tokenization of RECs on Blockchains.

RECs: Brief Definition

Renewable energy certificates (RECs), are tradable, invisible, non-tangible energy commodities that verify that one-megawatt hour of electricity was generated from a renewable energy source like wind, solar or hydro. RECs makes it possible to measure progress on clean energy. They can be considered as a receipt, ensuring the benefits associated with renewable energy.

Entrepreneurs’ interest in RECs may be due to three clear benefits or advantages.

First, purchasing RECs ensures the reduction of emissions to save the planet and make it greener.

Second, renewable generators make money from selling RECs. Such income allows for the development of renewable energy projects, maintenance, as well as job growth.

Third, renewable generators are relatively less expensive than fossil fuel generators. The cost savings thus achieve the goal of reducing customers’ electricity rates, thus boosting future endeavors to become realities.

What Tokenization Refers to

Tokenization, in the field of payments, is a process that protects customers’ sensitive banking information in a secure vault. In addition, it works by replacing payment card data with a token (series of numbers and letters associated with the user’s card).

Five Advantages of Tokenization in the Renewable Energy Market

Cassio J. Krupinsk, CEO of BlockBr, an expert on the subject, lists five advantages of investing in tokenization in the renewable energy market, which are summarized below:

1 – Flexibility and accessibility: “Tokenization will allow greater flexibility in the possibilities of products and will solve, among other things, liquidity problems in the energy sector by allowing the exchange of tokenized assets every day, 24 hours a day, and seven days a week, without borders.”

2 – Without Intermediaries: “Reduction of indirect costs with bureaucracy and intermediaries, since smart contracts make the entire investment process faster and safer”.

3 – Governance: “It will transform the sale process from static to dynamic, improving the transparency and automation of the process, even allowing the international transfer of tokens in seconds.”

4 – Investment Fractionalization: “With tokenization, true portfolio diversification can be achieved. In this way, investors can better mitigate their risks by not having to buy 100% of an asset and instead can partially participate.

5 – Security: “Audit of assets and legal documents in accordance with standards that guarantee the soundness of the investment. Tokenization requires compliance with KYC (Know-Your-Customer) and AML (Anti-Money Laundering) procedures, as well as other actions and disclosures required by applicable legislation protecting investors.”

It should be remembered that last May, the Youtuber Rodrix Digital expressed that in the electricity sector, Blockchain is directly related to a greater use of renewable energies. According to him, “with this technology it is possible for consumers to obtain certificates of origin, which guarantee the registration and traceability of these sources.”

By Audy Castaneda

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