At the time of writing, ETH was trading at $552, with the cryptocurrency gaining by 6.2% over the previous 24 hours. In fact, the transaction fee for ETH had also risen alongside the rise in demand, relative to the previous week, based on trade volume data from spot exchanges. Closer to the launch of ETH 2.0, ETH needs strong social capital to drive its bullish sentiment and price rally towards a high monthly close and a bullish open.
The demand for a project may come from a price rally, or a new ATH, or a social layer. The easiest to capture is the social layer as it has the most visibility and it supports demand growth both in the short and the long-term. For ETH 2.0, the social layer will probably act as social capital, adding to its overall value in the community.
The social layer model has been proven in the past since Bitcoin’s initial price rallies can be attributed to rapidly rising interest and demand from users through Google Search results and Twitter mentions. Back in 2017, the Google search volume for Bitcoin increased by over 300% overnight, with the price rallying to an ATH of close to $20,000 subsequently.
Though this was not the only factor influencing the price, it does usually have a significant impact on demand and adoption. The current search volume for Bitcoin is nowhere close to the 2017 level based on data from Google. In fact, in the case of Ethereum, the same is just under half the 2017 bull-run level.
Interest in ETH in the past 5 years || Source: Google Data
To determine the social capital of a project, scores of influencers are determined and there are several projects like Hive.one working on it. Influencers are divided into clusters based on projects they promote or propagate on social media and every time a member of a given cluster follows you, it adds to your score. The more influential your new follower is and the fewer other accounts it follows, the bigger the boost to your score. Basically, it’s the same core idea that Google uses to rank websites.
Based on this ranking mechanism, the current scores for ETH’s top 5 influencers are as follows,
With Ethereum shaking off bearish sentiment, one would expect a significant rise in OI and trade volume on derivatives exchanges, however, that is not the case. The bull market is emerging more from the echoes of price pullbacks and corrections so, while shorting the asset is lucrative, it may have contrary results for retail traders.
A more relevant strategy would be to follow smart money rather than entirely making trading decisions based on metrics. In a highly volatile market, metrics may suffer due to a lack of volume for consistent signals. The social layer may help retail traders see value beyond speculation and identify with the on-chain identity of the project.
While CT may change its opinion nearly every hour, the real value of a project, however, is derived from the quality and influence of its adopters and users. If DeFi is creating the future of finance, SoFi is creating the future of social capital and ETH 2.0 is looking at higher social capital, relative to altcoin projects, as 2021 looms.
Reports of the new Omicron variant of the coronavirus brought back memories of last summer when the fast-spreading Delta variant put a dent in the recovery and consumer confidence. This spooked investors on a traditionally quiet day in the market following Thanksgiving, leading to one of the worst days for stocks this year.
The Dow(INDU) logged its worst day since October 2020, while the S&P 500(SPX) had its worst performance since February. The Nasdaq Composite(COMP) recorded its steepest fall since September.
But just as the market quickly bounced back from its Delta fears, history appears to be repeating itself: Investors are taking a breath and sensing a buying opportunity.
The market opened in the green, with all three indexes sharply higher. The Dow opened up 375 points, or 1.1%, while the S&P rose 1.2%. The Nasdaq was 1.5% higher.
Other asset classes that were battered Friday — notably oil and cryptocurrencies — also recovered.
US oil prices were up 6.7%, or almost $5, at $72.69 per barrel around the time of the stock market open. That doesn’t totally make up for Friday’s drop, but it takes back a chunk of it.
The global oil benchmark Brent was up 5.7% at $76.84 per barrel.
Bitcoin was up more than 5%.
“Investors are trying to make sense of the latest Omicron Covid strain, but at this point more seems to be unknown than known,” said analysts at Bespoke Investments. “Clouding things even more, we’re unlikely to have definitive answers in the immediate future.”
US equities took a dive at the open and continued their downward path in the first half hour of trading, with the Dow more some 900 points lower. Oil prices were also badly hit.
Over the summer, the Delta variant spooked consumers and weighed on sectors like leisure and hospitality. Now investors and economists worry this new variant could do the same.
Wall Street was deep in the red early Friday, with the Dow(INDU) falling 2.5%, or about 900 points, in what is shaping up to be a volatile session. The broader S&P 500(SPX) tumbled 1.8% and the Nasdaq Composite(COMP) opened down 1.3%.
It’s a shortened trading session as the New York Stock Exchange will close at 1 pm ET after being closed Thursday for Thanksgiving. Reduced trading volume during this half-day session is also likely to exacerbate the swings in the market.
Nevertheless, it could shape up to be one of the worst days of the year for stocks.
But it’s not just stocks that aregetting a beating.
Oilprices are tumbling as well. US oil futures fell 7.4%, or nearly $6, to $72.51 per barrel around the time of the stock market open. The global benchmark Brent dropped 6.8% to $76.63 per barrel.
The US dollar, measured by the ICE US Dollar Index, which pegs it against its main rivals, was down 0.6% Friday morning.
Cryptocurrencies also felt the heat, dropping across the board. Bitcoin was down nearly 7% around the time of the stock market open, according to CoinDesk data.
Meanwhile, investors are pushing into safe haven investments. The 10-year US Treasury bond got more expensive and yields fell more than 0.1 percentage points to 1.52% Friday morning. Gold prices also jumped.
An NFT is “a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible,” according to a blog post from Collins, published Wednesday.
Acting like virtual signatures, NFTs prove the authenticity of an artwork as the blockchain serves as incorruptible proof of ownership, meaning that “original” artworks and their owners can always be identified via the blockchain, even if an image or video is widely replicated.
In March, a digital artwork named “Everydays: The First 5000 days” sold for $69.3 million via Christie’s, making its creator, graphic designer Mike Winkelmann, better known as Beeple, one of the art market’s most valuable living artists.
The idea of a digital revolution is also captured in another of the dictionary’s candidates for Word of the Year: “crypto,” short for “cryptocurrency,” digital money that is challenging traditional forms of money, according to Collins.
It also named “metaverse” in its blog post, following Facebook’s announcement that it would change its corporate name to Meta.
Other selected words reflect the ongoing coronavirus pandemic, with “double-vaxxed” and “hybrid working” making the shortlist.
“Climate anxiety” reflects growing concern about the damage humans are doing to the planet, while “neopronoun” is a way of referring to a person without using their name or traditional markers of gender, such as “he” and “she.” Collins gives “xe,” “ze” and “ve” as examples of neopronouns.
Rounding out the shortlist are “Regencycore,” which is defined as a fashion aesthetic inspired by the Georgian-era clothing seen in the Netflix show “Bridgerton,” and “cheugy,” which is used to say that something is out of date or uncool.
In 2020, Collins named “lockdown” its Word of the Year, for obvious reasons, and, earlier this month, Oxford Languages made “vax” its pick for 2021.
Defined as “a colloquialism meaning either vaccine or vaccination as a noun and vaccinate as a verb,” vax was relatively rare until this year, the company, which publishes the Oxford English Dictionary, said.
In September, vax appeared more than 72 times more frequently than the year before, said Oxford Languages, which analyzes news content to track changes in the English language.