Ethereum price does not pass resistance of $3k

In the coming months, attention will mainly be paid to the Bitcoin price because of the upcoming Bitcoin halving, but Ethereum should also benefit from this. What will Ethereum do in the time leading up to this April halving?

Ethereum rise caused by DeFi applications

Ethereum was one of the first blockchain networks that other developers could actively work on. This has now resulted in a large network of other tokens and DeFi applications that use the Ethereum blockchain.

All these tokens and applications ensure an increased TVL on this blockchain. TVL stands for Total Value Locked and concerns the total value that is locked in these types of applications or tokens. The higher the TVL, the more stable the original cryptocurrency of the blockchain.

Ethereum is still the most popular blockchain for developers, although projects like Solana and Cardano are quickly gaining ground.

Proof-of-Stake model ensures burns

Since Ethereum switched to the Proof-of-Stake model, it has become a deflationary asset. This means that there will be fewer and fewer Ethereum tokens available, causing scarcity. Normally, a reduced supply of a cryptocurrency causes the price to rise.

Ethereum used to be an inflationary asset, but by moving away from the Proof-of-Work model, a new consensus mechanism has been introduced that causes burns. This is because a small part of the gas fees is burned with each transaction.

Below you can clearly see that the number of Ethereum tokens increased rapidly until September 2022. Through the Proof-of-Work model, new tokens were always distributed to miners who successfully added new blocks to the Ethereum blockchain.

The stock has actually been declining since September. Because only a fraction of the tokens are burned, this is not happening at a high pace, but the fact that new token releases have stopped already creates a completely different supply of ETH tokens.

Ethereum is of course always most compared to Bitcoin. With Bitcoin there is a fixed number of total coins available, namely 21 million. Over the next 116 years, new Bitcoins will be issued to miners working on the network.

From then on it will reach maximum demand and basically the same thing happens as with Ethereum. No coins are burned with Bitcoin, but Bitcoins are lost. As a result, there will also be a shortage of the first cryptocurrency ever.

Alternatives to the Ethereum price

If the Ethereum price continues to struggle to break the $3,000 barrier, it may be wise to expand your portfolio with coins that have a good chance of rising in the near future. Below are three relatively new cryptocurrencies that could see significant gains in the coming months.

Bitcoin Minetrix – Bitcoin mining token in final presale phase

Bitcoin Minetrix has been available in a presale for a while, but is now heading towards the final phase. In total, the project has already raised more than $11.3 million, so you can still buy the token via the project’s website.

With the BTCMTX token you can benefit from cloud mining. By staking the BTCMTX token, you receive credits that you can then use for mining Bitcoin. You will receive a nice reward for this.

Big Announcement! 🎉#BitcoinMinetrix has hit a phenomenal milestone, raising over $10,000,000! 🪙 pic.twitter.com/toEsT1NvWv

— Bitcoinminetrix (@bitcoinminetrix) January 31, 2024

Immediately after you purchase the tokens, you can lock them for staking. The tokens can then be claimed once the presale is sold out and over. From that moment on, exchange listings will also follow, making the token available to an even wider audience.

Smog – New meme coin with stormy beginnings

The new meme coin Smog was recently launched, but many traders have already heard of the coin. This is partly due to the increase of more than 900% it experienced on the day it was launched.

The coin has already established itself in the top 20 most valuable meme tokens and a lot is yet to happen. For example, an airdrop is coming where they will give away a large portion of the tokens to traders and the token will still be listed on several exchanges.

You can still participate in the airdrop by purchasing tokens now via the website and staking them immediately. For both you receive airdrop points so that you increase the number of tokens you receive.

Sponge V2 – Spongebob meme coin with new V2 tokens

The meme coin Sponge received a lot of attention last year when it became worth ten times as much in the first day after launch and there is now a sequel. The Sponge V2 token was launched for everyone who already owned V1 tokens, but is now also available to the general public.

The tokens can be purchased via Sponge’s website, where you can also immediately pin them for staking. By staking the Sponge V2 tokens you can receive up to more than 800% in interest per year.

By investing in Sponge V2 now, you will benefit from a low entry price, high staking rewards and you will be ahead of the first exchange listings. If the token becomes worth 10x as much again on an exchange listing, you will be there this time!

Disclaimer: This article contains insights from independent authors and is not part of BitcoinMagazine.nl’s editorial content. This is not investment advice, please do your own research.