Please disable Ad Blocker before you can visit the website !!!

Ethereum Long

by SignalFactory   ·  December 3, 2021 | 14:42:31 UTC  

Ethereum Long

by SignalFactory   ·  December 3, 2021 | 14:42:31 UTC  

New technology promises to solve Ethereum’s growing pains in gaining traction, increasing bets that someday most of the network’s transactions might not take place on its blockchain.

For years slow speeds and high transaction fees have plagued the network underpinning the $550 billion cryptocurrency Ether — home to the most popular blockchain applications. Its weaknesses have allowed new competitors such as Solana and Avalanche to gain ground. However, help from so-called Layer 2 technologies, or rollups, could be a solution.

Digital ledgers like Ethereum are designed to slow down and become more expensive as their popularity increases. But these Layer 2 projects, many of which have only recently debuted, can effectively take transaction data off Ethereum, compress it and post it back onto the original chain for a fraction of the time and cost. So far the user base is relatively small. But rapid growth is raising expectations that Ethereum will not only be able to ward off competition but that other blockchain might adopt similar scaling solutions.

If the technology takes off, networks like Ethereum might only be directly used for very large transactions in the future, with the bulk of activity happening on Layer 2 networks.

“That’s where we’re headed with Ethereum,” said Jeff Dorman, chief investment officer at Arca, a digital asset investment manager. “

Layer 2 solutions including Arbitrum, Loopring, Optimism, and StarkWare are leading the shift, thanks in part to their embrace by cryptocurrency exchanges. Rollups can provide a major competitive advantage by making it significantly cheaper to trade Ether and other Ethereum-based coins. A transaction that might cost traders $50 and take 14 seconds to confirm directly on Ethereum could cost less than a cent and happen instantaneously, depending on the program.

Decentralized exchange dYdX moved to Layer 2 in April and its daily trading volume reached that of Coinbase Global Inc. for a day this fall as traders, in part, liked its lower fees. Additionally, Binance, the world’s biggest crypto exchange, integrated with Arbitrum in November, and Coinbase are working on Layer 2 integrations as well.

Layer 2 Growth –
About $7 billion of value is locked on Layer 2 projects, up from just $48 million at the beginning of the year, according to tracker L2Beat. However, there have been barriers to adoption. It can take a week to move funds from Arbitrum’s network onto Ethereum without additional technology called bridges. Transaction fees can still be too high for many applications. And not enough of the popular Ethereum applications use rollups yet.

Further development could encourage greater adoption. Ethereum is currently considering a proposal from its cofounder Vitalik Buterin that could cut Layer 2 transaction costs fivefold. More rollups are issuing tokens, offering supporters extra incentives. Funding is being thrown around. And existing companies are redoubling efforts. Polygon — whose token has a $14 billion market cap — is working to expand its capabilities, and StarkWare is rolling out a way to further scale and reduce costs in the coming months.

Ethereum Long (Buy)
Enter At: 4683.20
T.P_1: 4855.96
T.P_2: 5020.61
T.P_3: 5398.51
T.P_3: 5794.32
S.L: 3941.06

All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user. This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use. Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered. While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all. All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information. All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way. The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions. Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company. Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results. Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.

Signal Factory is now on Telegram

make sure to join our Telegram channel now and you will not miss any update