Recurring market commentary on what's happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.

Market commentary

Good Morning!

Ethereum (ETH) is on the rise again. The overall market conditions have not changed a great deal of late, but ETH began its outperformance and dominance in mid-April of this year.

The traded volume has consistently increased while nearing the April expiry, and still remains very high. The most prominent space is Decentralized Finance (DeFi), which refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by the Ethereum blockchain.

One of the primary benefits of DeFi on Ethereum is that financial activity is transparent and settles in real time. Since the beginning of 2021, the number of unique Ethereum addresses has risen to approx. 146 million (+12%), and DeFi users only represent about 1% of the total Ethereum addresses.

While all of this growth has been incredibly beneficial for the entire crypto ecosystem, it presented some challenges to the network. The gas price has increased by 50%, as did the price of Ethereum, and at the end of Q1 2021, this meant an average transaction fee of $23. Ethereum's total fees were double that of the Bitcoin blockchain.

There is still huge potential to continue increasing the number of transactions, speed, efficiency, and scalability of the network, e.g. Ethereum 2.0 and EIP 1559 standards.

Happy Trading!

All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.

Disclaimer

This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.

Risk disclosure

Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.