It may appear that bitcoin is haunted and that does not allow it to begin recovery. Negative news is constantly disappointing investors.
At the same time, the second most popular cryptocurrency, Ethereum (ETH), has gained a new chance to grow. Although the reason was, frankly, not very optimistic.
The other day, the Securities and Exchange Commission (SEC) officially denied the “Ether” in the status of the security. The American regulator considered ETH an unreliable alternative to the fiat currency, that is, the dollar, the euro and others, and therefore neither generation, nor conversion, nor any other processing of the child of Vitaly Buterin now lies inside the legal field.
“Bad news? At first glance, yes. So why on its background did the Ethereum price grow by 8% overnight?
At the same time, experts on cryptocurrencies consider it positive. After all, this way the SEC solution eliminates uncertainty and removes the risks of delisting this cryptocurrency from exchanges if there is suddenly a regulation that separates the trades of securities and non-securities.
For the cryptocurrency community, the positive thing is that, in a model similar to Ethereum, almost all infrastructure projects, blockchain-platforms for smart contracts and decentralized applications now work or plan to function: NEM, Cardano, Qtum, ICON, Aeternity, Waves, etc…
Shortly after the announcement of the SEC, investment expert Brian Kelly on the air of CNBC recommended shifting from bitcoin to Ether. According to him, the number one cryptocurrency, losing popularity, is still in a protracted peak since the beginning of the year, namely, Ethereum may prove to be a more reliable and promising channel for investments.
Among the reasons and the promised prompt launch of CBOE Group futures, by the way, the price index for the cryptocurrency has already been launched by the CME Group, and a serious upgrade of the network …
So investors began to actively purchase Ethereum. Even if we do not take into account the possibility of exchange rate growth, holders of ETH will receive even a small but constant income for processing transactions. And the more transactions in the network, the higher the level of income.
Let’s see if the new investment policy will affect the situation on the market. Over time, the rapid growth of the “ether” has been corrected: after the “jump” from 471 dollars to 521 dollars, and today at 13:49 UTC time the token fell to 449.63 dollars.
In any case, the summer promises to be hot.