Ethereum
$227.49 -1.30%
ETH · 4w

Tokenized Bitcoin Propels Ethereum to Near $240

Ethereum is finally rising, up to almost $240 before stopping to think a bit about whether it really wants to jump to a new frontier.

Making this a 30% jump since 12th of May from $185 to now a moving price but around $235 at the time of writing.

Ethereum rises, May 2020

May the 8th is when the tokenized bitcoin wBTC was added to MakerDAO’s DAI.

It’s not however until May 13th when we see a big jump in wbtc’s market cap. In the chart above that’s the biggest green candle after the huge red one.

Price then goes on to $220, but it retraces to find a local bottom on May 21st. Coincidentally, that’s precisely when wbtc’s market cap sees another big jump.

So the price then somewhat recovers, double tests the local bottom, and we’re off to wherever the astronaut is going later today.

The rise of tokenized bitcoin, May 2020

The correlation is not perfect, as you’d expect, but there appears to have been some sort of correlation with the question of course being why might that be.

The answer maybe is because it gives ethereum access to the biggest crypto by far where market cap and arguably community is concerned. In addition it gives bitcoin access to the second biggest crypto market.

And thus we have some synergy through which new utility arises with both being the winner as you can’t have wbtc without btc.

Price is based on supply and demand of course, but demand is based on utility through which then speculation arises that makes the utility part more a random walk where price is concerned, but speculation also derives from utility.

So logically if you increase utility in a way that the market thinks you have actually done so, then you’re increasing demand, and the random walk speculation in generally one direction unless speculation just completely briefly detaches.

The utility here being the decentralized finance space where for example you can get a wbtc flashloan and do all sorts ...

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