crypto

Review – After the Elon Musk Crypto Crash, Will Markets Go Back Up?

Digitex
• Dave Reiter
May 19, 2021

On February 8, the Bitcoin (BTC) community received incredibly bullish news when Tesla CEO, Elon Musk announced that his company had purchased $1.5 billion worth of BTC. In the same press release, Musk also revealed that the company would accept BTC as a method of payment for its Tesla automobiles. Immediately following the press release, the price of BTC exploded to the upside, gaining $6,881 (Chart #1).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 1

The announcement by Musk marked the beginning of a massive rally in Bitcoin. Over the course of the next two months, BTC increased 73%.  

Elon Musk quickly became one of the biggest supporters of the Bitcoin ecosystem. Of course, the entire crypto community was more than happy to embrace Musk as its newest member of the “family.” In addition to being CEO of Tesla, he is the wealthiest person on the planet. In fact, Tesla’s purchase of BTC was the major contributing factor to catapulting Musk ahead of Jeff Bezos as the world’s wealthiest person. Therefore, Musk was viewed as the perfect ambassador for the Bitcoin community.

Unfortunately, the happy relationship between Musk and the crypto community was short-lived. What happened? Why did Elon Musk suddenly withdraw his endorsement of the Bitcoin ecosystem? More importantly, how will this affect the future direction of Bitcoin along with the entire cryptocurrency universe? Let’s discuss the details.

Elon Musk Abruptly Changes His View on Bitcoin     

Elon Musk is one of the greatest entrepreneurs in modern American history. Musk rose to fame in the late 1990s during the internet mania, as one of the original founders of PayPal. Over the course of the past two decades, he has been responsible for creating a number of highly successful business ventures.

Musk is most famously known for his affiliation with Tesla, which was launched in July 2003. In addition to Tesla, Musk is also involved in the Boring Company and SpaceX. As mentioned, his entrepreneurial success recently turned Musk into the wealthiest person on the planet, according to Forbes Magazine.      

Over the course of the past few years, he has received an increasing amount of scrutiny from various environmental groups concerning Tesla’s commitment to producing energy-efficient vehicles. Additionally, the company’s automobile plants are closely monitored by several third parties in an effort to determine if Tesla is maintaining an eco-friendly working environment. Tesla promotes itself as an industry leader in using renewable energy to operate its manufacturing facilities. This probably explains why the company is constantly critiqued and observed by independent agencies.     

Bitcoin has come under frequent and repeated attack by a number of environmentally-friendly research groups concerning its potential damage to the environment, particularly as it relates to Bitcoin mining. These research groups claim that the Bitcoin mining process consumes a great deal of non-renewable energy and emits an ever-increasing amount of carbon into the atmosphere. They question whether Bitcoin’s damage to the environment is outweighed by its benefit as a long-term store of value. This has been an ongoing debate between Bitcoiners and environmental groups for the past few years. However, the debate has certainly intensified during the past few months.

This brings us back to Elon Musk and his endorsement of Bitcoin. Given the fact that Tesla is currently struggling with its own environmental issues, Elon and his inner circle of advisors probably determined that Tesla’s involvement with Bitcoin was a poorly-timed decision. Most likely, this explains why Musk withdrew his support of BTC as a medium of exchange.

Musk released his now-famous tweet on May 12, in which he tweeted that Tesla would no longer accept Bitcoin as a method of payment for its automobiles.

Musk cited “environmental concerns” as the reason why Tesla suspended its acceptance of Bitcoin. Immediately upon the release of Elon’s tweet, the price of BTC quickly began to roll over to the downside. By the end of the day, BTC had lost 9.5% of its value.

BTC continued to drop for the next three days, as Musk released a few additional negative comments about Bitcoin and many analysts are wondering if the bottom is in yet, after BTC briefly dove below $40,000 on May 19. So, where do we go from here? In order to answer this question, let’s examine Bitcoin based on technical analysis.

Analyzing Bitcoin Based on Technical Analysis

Bitcoin peaked @ 64,789 on April 14. During the past four weeks, BTC had dropped by more than 34% (Chart #2), only to tumble even lower below the $40,000 mark on May 19.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 2

How does this sell-off compare with declines from other bull market cycles? Let’s analyze the most recent bull market cycle from 2017. BTC generated a dramatic rally in the second half of 2017, advancing 570% from September through December. However, Bitcoin also experienced two sharp declines of 39.7% and 30.0%, respectively (Chart #3).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 3

Even though the current decline is certainly painful for the Bitcoin bulls, it is quite normal when compared to other historical downturns.

Despite the current decline, the daily chart pattern for Bitcoin continues to remain bullish. The first sign of trouble for the bulls would be a weekly close below 37,409 (Chart #4). The BTC chart pattern will turn decidedly bearish if 37,409 is penetrated on a weekly closing basis.      

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 4  

In terms of the hourly chart, the bears are in control. In order to reverse the bearish momentum, the bulls need a daily close above 59,696 (Chart #5). The most likely scenario over the course of the next few weeks is a trading range.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 5

BTC could easily remain locked in a trading range for the next several weeks. The important numbers to watch are 37,409 and 59,696.

Analyzing Ethereum Based on Technical Analysis

Although Bitcoin has garnered the majority of media attention during the past few days, Elon’s comments have wreaked havoc on the entire cryptocurrency universe. Almost all coins and tokens have suffered brutal declines. Let’s briefly review Ethereum (ETH) from a technical perspective.

Prior to the Tesla news, ETH was in the middle of a dramatic rally dating back to the pandemic low in March 2020. ETH recorded a major low on 13 March 2020 @ 89.50. The cryptocurrency preceded to rally 4,783% during the next 14 months, reaching its peak on 12 May @ 4,370.76.

The very next day, Elon Musk released his tweet concerning Tesla’s plan to stop accepting Bitcoin. Although Elon’s tweet was not aimed directly at Ethereum, it nevertheless sparked a brutal sell-off in ETH. Within 72 hours, ETH had declined 28.2% (Chart #6).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 6

In spite of the sharp decline, the Ethereum chart pattern remains persistently bullish. It would take a weekly close below 1,937 to flip the chart from bullish to bearish (Chart #7).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 7

This type of price drop is certainly possible. However, it’s highly unlikely. Going forward, ETH will most likely remain in a trading range for the next several weeks, as it consolidates the recent sharp decline.

As long as the price stays above 1,937, ETH should easily create a new all-time high above 4,370 by the end of 2021.

All Signs Point to Higher Crypto Prices

It’s very easy for crypto traders and investors to become fixated on short-term fluctuations in the crypto markets. Many traders (particularly novice traders) have a tendency to focus only on the negative crypto news while ignoring the long-term bullish outlook.

Bitcoin, Ethereum and other cryptocurrencies have received a tremendous amount of bullish news during the past several months, particularly at the institutional level. A wave of institutional money has flooded into the crypto universe during the past nine months. This is extremely bullish from a “big picture” multi-year perspective.

While it’s certainly possible that Bitcoin and other cryptocurrencies could experience another sharp leg to the downside, this won’t change the bullish outlook from a long-term global perspective. Cryptocurrencies are in the early stages of completely disrupting industries that have been in existence for hundreds of years. There will be several bumps along the way (e.g. Elon Musk’s tweets). However, investors who can tolerate the short-term volatility will be rewarded with long-term success.

 Digitex writers and/or guest authors may or may not have a vested interest in the Digitex project and/or other businesses mentioned throughout the site. None of the content on Digitex is investment advice nor is it a replacement for advice from a certified financial planner.

May 19, 2021
Digitex

Review – After the Elon Musk Crypto Crash, Will Markets Go Back Up?

Dave Reiter
crypto

On February 8, the Bitcoin (BTC) community received incredibly bullish news when Tesla CEO, Elon Musk announced that his company had purchased $1.5 billion worth of BTC. In the same press release, Musk also revealed that the company would accept BTC as a method of payment for its Tesla automobiles. Immediately following the press release, the price of BTC exploded to the upside, gaining $6,881 (Chart #1).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 8

The announcement by Musk marked the beginning of a massive rally in Bitcoin. Over the course of the next two months, BTC increased 73%.  

Elon Musk quickly became one of the biggest supporters of the Bitcoin ecosystem. Of course, the entire crypto community was more than happy to embrace Musk as its newest member of the “family.” In addition to being CEO of Tesla, he is the wealthiest person on the planet. In fact, Tesla’s purchase of BTC was the major contributing factor to catapulting Musk ahead of Jeff Bezos as the world’s wealthiest person. Therefore, Musk was viewed as the perfect ambassador for the Bitcoin community.

Unfortunately, the happy relationship between Musk and the crypto community was short-lived. What happened? Why did Elon Musk suddenly withdraw his endorsement of the Bitcoin ecosystem? More importantly, how will this affect the future direction of Bitcoin along with the entire cryptocurrency universe? Let’s discuss the details.

Elon Musk Abruptly Changes His View on Bitcoin     

Elon Musk is one of the greatest entrepreneurs in modern American history. Musk rose to fame in the late 1990s during the internet mania, as one of the original founders of PayPal. Over the course of the past two decades, he has been responsible for creating a number of highly successful business ventures.

Musk is most famously known for his affiliation with Tesla, which was launched in July 2003. In addition to Tesla, Musk is also involved in the Boring Company and SpaceX. As mentioned, his entrepreneurial success recently turned Musk into the wealthiest person on the planet, according to Forbes Magazine.      

Over the course of the past few years, he has received an increasing amount of scrutiny from various environmental groups concerning Tesla’s commitment to producing energy-efficient vehicles. Additionally, the company’s automobile plants are closely monitored by several third parties in an effort to determine if Tesla is maintaining an eco-friendly working environment. Tesla promotes itself as an industry leader in using renewable energy to operate its manufacturing facilities. This probably explains why the company is constantly critiqued and observed by independent agencies.     

Bitcoin has come under frequent and repeated attack by a number of environmentally-friendly research groups concerning its potential damage to the environment, particularly as it relates to Bitcoin mining. These research groups claim that the Bitcoin mining process consumes a great deal of non-renewable energy and emits an ever-increasing amount of carbon into the atmosphere. They question whether Bitcoin’s damage to the environment is outweighed by its benefit as a long-term store of value. This has been an ongoing debate between Bitcoiners and environmental groups for the past few years. However, the debate has certainly intensified during the past few months.

This brings us back to Elon Musk and his endorsement of Bitcoin. Given the fact that Tesla is currently struggling with its own environmental issues, Elon and his inner circle of advisors probably determined that Tesla’s involvement with Bitcoin was a poorly-timed decision. Most likely, this explains why Musk withdrew his support of BTC as a medium of exchange.

Musk released his now-famous tweet on May 12, in which he tweeted that Tesla would no longer accept Bitcoin as a method of payment for its automobiles.

Musk cited “environmental concerns” as the reason why Tesla suspended its acceptance of Bitcoin. Immediately upon the release of Elon’s tweet, the price of BTC quickly began to roll over to the downside. By the end of the day, BTC had lost 9.5% of its value.

BTC continued to drop for the next three days, as Musk released a few additional negative comments about Bitcoin and many analysts are wondering if the bottom is in yet, after BTC briefly dove below $40,000 on May 19. So, where do we go from here? In order to answer this question, let’s examine Bitcoin based on technical analysis.

Analyzing Bitcoin Based on Technical Analysis

Bitcoin peaked @ 64,789 on April 14. During the past four weeks, BTC had dropped by more than 34% (Chart #2), only to tumble even lower below the $40,000 mark on May 19.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 9

How does this sell-off compare with declines from other bull market cycles? Let’s analyze the most recent bull market cycle from 2017. BTC generated a dramatic rally in the second half of 2017, advancing 570% from September through December. However, Bitcoin also experienced two sharp declines of 39.7% and 30.0%, respectively (Chart #3).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 10

Even though the current decline is certainly painful for the Bitcoin bulls, it is quite normal when compared to other historical downturns.

Despite the current decline, the daily chart pattern for Bitcoin continues to remain bullish. The first sign of trouble for the bulls would be a weekly close below 37,409 (Chart #4). The BTC chart pattern will turn decidedly bearish if 37,409 is penetrated on a weekly closing basis.      

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 11  

In terms of the hourly chart, the bears are in control. In order to reverse the bearish momentum, the bulls need a daily close above 59,696 (Chart #5). The most likely scenario over the course of the next few weeks is a trading range.

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 12

BTC could easily remain locked in a trading range for the next several weeks. The important numbers to watch are 37,409 and 59,696.

Analyzing Ethereum Based on Technical Analysis

Although Bitcoin has garnered the majority of media attention during the past few days, Elon’s comments have wreaked havoc on the entire cryptocurrency universe. Almost all coins and tokens have suffered brutal declines. Let’s briefly review Ethereum (ETH) from a technical perspective.

Prior to the Tesla news, ETH was in the middle of a dramatic rally dating back to the pandemic low in March 2020. ETH recorded a major low on 13 March 2020 @ 89.50. The cryptocurrency preceded to rally 4,783% during the next 14 months, reaching its peak on 12 May @ 4,370.76.

The very next day, Elon Musk released his tweet concerning Tesla’s plan to stop accepting Bitcoin. Although Elon’s tweet was not aimed directly at Ethereum, it nevertheless sparked a brutal sell-off in ETH. Within 72 hours, ETH had declined 28.2% (Chart #6).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 13

In spite of the sharp decline, the Ethereum chart pattern remains persistently bullish. It would take a weekly close below 1,937 to flip the chart from bullish to bearish (Chart #7).

Review - After the Elon Musk Crypto Crash, Will Markets Go Back Up? 14

This type of price drop is certainly possible. However, it’s highly unlikely. Going forward, ETH will most likely remain in a trading range for the next several weeks, as it consolidates the recent sharp decline.

As long as the price stays above 1,937, ETH should easily create a new all-time high above 4,370 by the end of 2021.

All Signs Point to Higher Crypto Prices

It’s very easy for crypto traders and investors to become fixated on short-term fluctuations in the crypto markets. Many traders (particularly novice traders) have a tendency to focus only on the negative crypto news while ignoring the long-term bullish outlook.

Bitcoin, Ethereum and other cryptocurrencies have received a tremendous amount of bullish news during the past several months, particularly at the institutional level. A wave of institutional money has flooded into the crypto universe during the past nine months. This is extremely bullish from a “big picture” multi-year perspective.

While it’s certainly possible that Bitcoin and other cryptocurrencies could experience another sharp leg to the downside, this won’t change the bullish outlook from a long-term global perspective. Cryptocurrencies are in the early stages of completely disrupting industries that have been in existence for hundreds of years. There will be several bumps along the way (e.g. Elon Musk’s tweets). However, investors who can tolerate the short-term volatility will be rewarded with long-term success.

 Digitex writers and/or guest authors may or may not have a vested interest in the Digitex project and/or other businesses mentioned throughout the site. None of the content on Digitex is investment advice nor is it a replacement for advice from a certified financial planner.

Latest News

futures

ETHUSD Futures Market Tick Size Will Change to $1

Digitex
Trading
• Digitex
May 11, 2021

Heads up, traders! Digitex will be changing the tick size on our ETHUSD futures market from $0.25 to $1. On May 12 at 12:00 UTC, the Digitex exchange will be down for one hour as we make the necessary adjustment. So, please keep in mind that you will not be able to access your account during that time. All orders on the ETHUSD will be settled, so you should close them ahead.

The Rising Price of ETH

As you all know, the price of ETH has been on an absolute tear this year, running circles around Bitcoin and hitting a new all-time high of more than $4,200! Even today, as it’s cooled off slightly, the number one altcoin is still registering a yearly gain of almost 2000%. Of course, this is great for traders, investors, and Ethereum enthusiasts. But, when it comes to trading on a ladder, a tick size of $0.25 on an asset with such a high price makes for a poor user experience as contracts keep jumping off the ladder.

The change in tick size on the ETHUSD market will prevent this from happening and also make it easier for liquidity miners. So, we can expect to see more bids and offers closer to the spot price after we make the switch, making the trading experience on the Digitex exchange better for everyone. 

Keep in mind that, on the Digitex platform, the $1 tick is equivalent to 1 DGTX. So, when you win or lose 1 tick ($1), you win or lose 1 DGTX. The contract value of ETHUSD remains the same as it was.

Take Advantage of ETH Volatility Trading Commission-Free

As always, with ETH’s skyrocketing price and swift corrections, there’s no better time to capitalize on the premier altcoin’s extreme volatility. So, be sure to get trading on the platform now! Digitex is the ONLY exchange that lets you pursue high-frequency trading strategies that allow you to place unlimited trades without paying any transaction fees of any kind. Simply trade and walk away with 100% of your profit.

Just please keep in mind that the exchange will be down for around one hour on May 12 at 12:00 UTC while we make the switch. We hope you enjoy the improved trading experience. Any questions at all, please contact our customer support or hit us up on our socials. 

May 11, 2021
Digitex
Trading

ETHUSD Futures Market Tick Size Will Change to $1

Digitex
futures

Heads up, traders! Digitex will be changing the tick size on our ETHUSD futures market from $0.25 to $1. On May 12 at 12:00 UTC, the Digitex exchange will be down for one hour as we make the necessary adjustment. So, please keep in mind that you will not be able to access your account during that time. All orders on the ETHUSD will be settled, so you should close them ahead.

The Rising Price of ETH

As you all know, the price of ETH has been on an absolute tear this year, running circles around Bitcoin and hitting a new all-time high of more than $4,200! Even today, as it’s cooled off slightly, the number one altcoin is still registering a yearly gain of almost 2000%. Of course, this is great for traders, investors, and Ethereum enthusiasts. But, when it comes to trading on a ladder, a tick size of $0.25 on an asset with such a high price makes for a poor user experience as contracts keep jumping off the ladder.

The change in tick size on the ETHUSD market will prevent this from happening and also make it easier for liquidity miners. So, we can expect to see more bids and offers closer to the spot price after we make the switch, making the trading experience on the Digitex exchange better for everyone. 

Keep in mind that, on the Digitex platform, the $1 tick is equivalent to 1 DGTX. So, when you win or lose 1 tick ($1), you win or lose 1 DGTX. The contract value of ETHUSD remains the same as it was.

Take Advantage of ETH Volatility Trading Commission-Free

As always, with ETH’s skyrocketing price and swift corrections, there’s no better time to capitalize on the premier altcoin’s extreme volatility. So, be sure to get trading on the platform now! Digitex is the ONLY exchange that lets you pursue high-frequency trading strategies that allow you to place unlimited trades without paying any transaction fees of any kind. Simply trade and walk away with 100% of your profit.

Just please keep in mind that the exchange will be down for around one hour on May 12 at 12:00 UTC while we make the switch. We hope you enjoy the improved trading experience. Any questions at all, please contact our customer support or hit us up on our socials. 

Latest News

Crypto

What Cryptocurrencies Are Available to Buy and Sell on Digitex?

Digitex
Cryptocurrency
• Digitex
April 26, 2021

Since our mainnet launch, Digitex has operated as a Bitcoin derivatives exchange allowing users to buy and sell cryptocurrency futures contracts without any trading fees.

However, as part of Digitex’s evolution, we rolled out our spot exchange last week to provide an optimized trading experience to all traders on the platform.

As a result, you can now enjoy a zero-fee crypto trading experience for digital asset pairs on both the spot and derivatives markets.

In this upgrade, we have also expanded our list with new trading pairs, which means you can now gain exposure to more digital assets on Digitex.

We have collected all the cryptocurrencies you can trade on the next-generation Digitex trading platform in this article. Check them out below.

Bitcoin (BTC)

Rank: 1st

Market capitalization: $1.059 trillion

YTD ROI: +96.45%

Launched in 2009 by the anonymous Satoshi Nakamoto, Bitcoin is the first cryptocurrency ever created and also the largest by market cap.

Created in the aftermath of the 2007-2008 financial crisis, Bitcoin features a peer-to-peer (P2P) electronic cash system that allows users to hold, receive, and send cryptocurrency without any intermediaries, according to the original BTC whitepaper.

That said, due to its limited supply and the deflationary mechanism that cuts the newly mined BTC supply in half every four years, Bitcoin also serves as an excellent store of value.

On Digitex, you can gain exposure to both spot market and Bitcoin derivatives trading pairs:

  • DGTX/BTC (spot)
  • ETH/BTC (spot)
  • BTC/USDC (spot)
  • BTC/USD (futures)

Ethereum (ETH)

Rank: 2nd

Market capitalization: $257 billion

YTD ROI: +201.87%

Launched in July 2015, Ethereum has introduced smart contracts – self-executing digital agreements between two or more parties – to the digital asset industry.

As a result, developers can program, deploy, and run their own decentralized applications (DApps) as well as create tokens and launch Initial Coin Offerings (ICOs) on top of the Ethereum blockchain.

For these reasons, Ethereum has been among the most active blockchain networks on the market that facilitated the ICO, decentralized finance (DeFi), and non-fungible token (NFT) booms.

You can trade ETH via the following trading pairs on Digitex:

  • DGTX/ETH (spot)
  • ETH/BTC (spot)
  • ETH/USDC (spot)
  • ETH/USD (futures)

USDC

Rank: 15th

Market capitalization: $11.3 billion

USDC is a stablecoin with a 1:1 peg to the USD’s value.

For that reason, while non-stablecoin cryptocurrencies often experience high levels of volatility with extreme price swings, USDC is able to maintain a relatively stable value.

This allows USDC to retain most of the benefits of cryptocurrencies – such as P2P transfers, cost-efficient fees, and fast transactions – while offering users the ability to trade digital asset pairs without exchanging their funds into fiat currencies.

Launched as the project of the global technology firm Circle, USDC quickly became the second-largest stablecoin by market capitalization just after Tether (USDT).

Digitex offers users the following USDC-based trading pairs on its platform:

  • DGTX/USDC (spot)
  • BTC/USDC (spot)
  • ETH/USDC (spot)

DGTX

Rank: 883rd

Market capitalization: $16.4 million

YTD ROI: +63.28%

DGTX is the native exchange token of the revolutionary crypto trading platform Digitex.

Since raising $5.2 million in 17 minutes during the Digitex token sale in January 2018, DGTX has played a vital role in our ecosystem.

DGTX is the cryptocurrency that allows our users to benefit from zero-fee crypto trading while powering the Digitex liquidity mining and DGTX rewards programs, which both offer traders new ways to earn crypto.

Thanks to our new spot exchange, you can now buy and sell DGTX without using third-party services. We offer traders the following DGTX trading pairs on Digitex:

  • DGTX/BTC (spot)
  • DGTX/ETH (spot)
  • DGTX/USDC (spot)

Enjoy Commission-Free Crypto Trading on Digitex

By introducing our new spot exchange, Digitex users can now trade an increased number of cryptocurrency pairs without any fees.

In addition to the ones currently offered on the exchange platform, we will be gradually adding new trading pairs based on demand and user feedback.

In the meantime, be sure to test your crypto trading strategies on the Digitex spot market.

And don’t forget to grab some DGTX instantly for USDC, ETH, or BTC via our digital asset exchange platform.

April 26, 2021
Digitex
Cryptocurrency

What Cryptocurrencies Are Available to Buy and Sell on Digitex?

Digitex
Crypto

Since our mainnet launch, Digitex has operated as a Bitcoin derivatives exchange allowing users to buy and sell cryptocurrency futures contracts without any trading fees.

However, as part of Digitex’s evolution, we rolled out our spot exchange last week to provide an optimized trading experience to all traders on the platform.

As a result, you can now enjoy a zero-fee crypto trading experience for digital asset pairs on both the spot and derivatives markets.

In this upgrade, we have also expanded our list with new trading pairs, which means you can now gain exposure to more digital assets on Digitex.

We have collected all the cryptocurrencies you can trade on the next-generation Digitex trading platform in this article. Check them out below.

Bitcoin (BTC)

Rank: 1st

Market capitalization: $1.059 trillion

YTD ROI: +96.45%

Launched in 2009 by the anonymous Satoshi Nakamoto, Bitcoin is the first cryptocurrency ever created and also the largest by market cap.

Created in the aftermath of the 2007-2008 financial crisis, Bitcoin features a peer-to-peer (P2P) electronic cash system that allows users to hold, receive, and send cryptocurrency without any intermediaries, according to the original BTC whitepaper.

That said, due to its limited supply and the deflationary mechanism that cuts the newly mined BTC supply in half every four years, Bitcoin also serves as an excellent store of value.

On Digitex, you can gain exposure to both spot market and Bitcoin derivatives trading pairs:

  • DGTX/BTC (spot)
  • ETH/BTC (spot)
  • BTC/USDC (spot)
  • BTC/USD (futures)

Ethereum (ETH)

Rank: 2nd

Market capitalization: $257 billion

YTD ROI: +201.87%

Launched in July 2015, Ethereum has introduced smart contracts – self-executing digital agreements between two or more parties – to the digital asset industry.

As a result, developers can program, deploy, and run their own decentralized applications (DApps) as well as create tokens and launch Initial Coin Offerings (ICOs) on top of the Ethereum blockchain.

For these reasons, Ethereum has been among the most active blockchain networks on the market that facilitated the ICO, decentralized finance (DeFi), and non-fungible token (NFT) booms.

You can trade ETH via the following trading pairs on Digitex:

  • DGTX/ETH (spot)
  • ETH/BTC (spot)
  • ETH/USDC (spot)
  • ETH/USD (futures)

USDC

Rank: 15th

Market capitalization: $11.3 billion

USDC is a stablecoin with a 1:1 peg to the USD’s value.

For that reason, while non-stablecoin cryptocurrencies often experience high levels of volatility with extreme price swings, USDC is able to maintain a relatively stable value.

This allows USDC to retain most of the benefits of cryptocurrencies – such as P2P transfers, cost-efficient fees, and fast transactions – while offering users the ability to trade digital asset pairs without exchanging their funds into fiat currencies.

Launched as the project of the global technology firm Circle, USDC quickly became the second-largest stablecoin by market capitalization just after Tether (USDT).

Digitex offers users the following USDC-based trading pairs on its platform:

  • DGTX/USDC (spot)
  • BTC/USDC (spot)
  • ETH/USDC (spot)

DGTX

Rank: 883rd

Market capitalization: $16.4 million

YTD ROI: +63.28%

DGTX is the native exchange token of the revolutionary crypto trading platform Digitex.

Since raising $5.2 million in 17 minutes during the Digitex token sale in January 2018, DGTX has played a vital role in our ecosystem.

DGTX is the cryptocurrency that allows our users to benefit from zero-fee crypto trading while powering the Digitex liquidity mining and DGTX rewards programs, which both offer traders new ways to earn crypto.

Thanks to our new spot exchange, you can now buy and sell DGTX without using third-party services. We offer traders the following DGTX trading pairs on Digitex:

  • DGTX/BTC (spot)
  • DGTX/ETH (spot)
  • DGTX/USDC (spot)

Enjoy Commission-Free Crypto Trading on Digitex

By introducing our new spot exchange, Digitex users can now trade an increased number of cryptocurrency pairs without any fees.

In addition to the ones currently offered on the exchange platform, we will be gradually adding new trading pairs based on demand and user feedback.

In the meantime, be sure to test your crypto trading strategies on the Digitex spot market.

And don’t forget to grab some DGTX instantly for USDC, ETH, or BTC via our digital asset exchange platform.

Latest News

Ethereum

The Future Price of Ethereum — Technical Analysis

Digitex Futures
• Dave Reiter
April 12, 2021

Similar to other coins and tokens, Ethereum has generated a substantial rally throughout the past six months. Specifically, ETH has increased 498%, outperforming BTC by approximately 60% during the same time period (see chart 1 below). So, where do we go from here? How will ETH perform for the remainder of 2021 and beyond? Let’s explore the details.

The Future Price of Ethereum — Technical Analysis 15

The Difference Between Ethereum and Ether

In terms of market capitalization, ETH is the second-largest cryptocurrency in the crypto universe. Only Bitcoin has a larger market capitalization. ETH has enjoyed some explosive price moves throughout its brief 6-year history. But, before we analyze the future price direction of ETH, let’s briefly discuss the difference between Ethereum and Ether.

There seems to be some confusion regarding these two crypto terms. Ethereum is a blockchain-based platform used for writing autonomous smart contracts and decentralized applications. Ether is the cryptocurrency that serves as the fuel to power the smart contracts, apps, and other transactions on the Ethereum blockchain.

Although most people in the crypto community (including many crypto websites) use these words interchangeably, they are actually quite different in terms of how they are used in the crypto ecosystem.

Use Cases for Ethereum Blockchain Continue to Expand

In this article, we will be analyzing the price direction of Ether (ETH), the cryptocurrency. However, it’s also important to discuss Ethereum, the blockchain, because it lays the foundation for the current ETH bull market. It seems almost impossible to believe that Ether was trading below $100 per token less than 15 months ago (see chart 2).

The Future Price of Ethereum — Technical Analysis 16

Over the course of the past 15 months, ETH has exploded to the upside by increasing 2,226%. Since March 2020, ETH has been one of the top-performing cryptocurrencies within the entire crypto universe. Ether easily outperformed Bitcoin during this particular time period, 2,226% versus 1,388%.

The majority of Ether’s gains can be attributed to the fact that the total number of use cases for the Ethereum blockchain has increased substantially. Unlike the Bitcoin blockchain, Ethereum can be used for multiple applications across a wide variety of industries. Several of these applications have evolved into legitimate and profitable business enterprises with exponential growth potential. Let’s briefly examine a few of these Ethereum-based businesses.

DeFi (Decentralized Finance)

Without question, the most exciting new business linked to Ethereum is decentralized finance, more commonly known as DeFi. Although DeFi has been in existence for less than four years, it has gained an incredible amount of interest from venture capital firms and angel investors who see the enormous potential in this new space.

Without going into great detail, DeFi competes head-to-head with the legacy financial services industry, with an estimated value of $26.5 trillion by 2022, according to data gathered by The World Bank. Based on these numbers, the upside potential in DeFi is massive. This is great news if you are an owner of ETH because the overwhelming majority of the DeFi ecosystem operates on the Ethereum blockchain.

NFTs (Non-Fungible Tokens)

Another business venture associated with Ethereum is non-fungible tokens (NFT), which have witnessed a tremendous wave of enthusiasm from investors and speculators during the past few months. Very briefly, non-fungible tokens allow non-fungible assets to possess unique properties that completely change the user and development relationship of these assets.

Examples of non-fungible digital assets include digital collectibles, such as in-game items and characters, virtual pets, and representations of fine art. By attaching unique properties such as immutability and scarcity to non-fungible assets, it substantially increases the value of said assets.

Almost the entire NFT industry operates on the Ethereum blockchain, which is obviously bullish for ETH. Arguably, the most exciting part of NFTs is the fact that young people are heavily involved in this exciting new space. Consequently, this will provide Generation Z with an opportunity to familiarize themselves with cryptocurrencies and other digital assets. This is very bullish from a long-term perspective.

In addition to DeFi and NFT, the Ethereum blockchain is also actively engaged in enterprise software, which is used by organizations, businesses, charities, schools, and governments to handle day-to-day operations across a wide variety of internal departments within each organization.

These daily operations would include such tasks as human resources, supply chain management, database management, CRM, security, and billing systems. Enterprise software companies are using a privatized version of the Ethereum network to provide their services to companies like Microsoft, IBM, JPMorgan Chase, and Deloitte.

These are just a few examples of how the Ethereum blockchain is linked to industries and businesses across the global economy. Of course, this is extremely bullish for ETH because these companies and businesses must purchase ETH in order to pay for their services on the Ethereum blockchain. Many crypto experts believe that the number of use cases for Ethereum will continue to expand as blockchain technology becomes more common throughout the global economy.

Using TA to Forecast the Price of ETH

Technical analysis has been extremely useful in forecasting the future price direction of ETH. Let’s review a few of these indicators.

Arguably, the most reliable technical indicator in modern history was created by a twelfth-century Italian mathematician by the name of Leonardo Fibonacci. The vast majority of mathematical historians consider Fibonacci to be the greatest mathematician of the Middle Ages. In fact, many experts in the field of mathematics claim that Fibonacci was one of the ten greatest mathematicians of all time.

Fibonacci made several important contributions to the field of mathematics throughout his life. However, he will always be most famously known for Fibonacci numbers, which are a sequence of numbers developed by Fibonacci circa 1202.

Fibonacci numbers are used in the study of nature, music, agriculture, computer applications, price forecasting, and several other fields of study. Stock and commodity traders use “Fib” numbers to calculate support and resistance levels.

The most common Fib levels are:

  • .236
  • .382
  • .500
  • .618
  • .786
  • 000

It’s not uncommon for financial assets like cryptocurrencies to fluctuate between Fibonacci support and resistance levels for long periods of time. When a major breakout finally occurs, it usually marks the beginning of a substantial move.

The crypto trading community would love to know the final top in ETH before a new bear market ensues, probably near the end of 2021 or early-2022. Of course, it’s impossible to accurately forecast the final top of any speculative asset. Cryptocurrencies are particularly difficult because we have such a small sample size of historical data. However, we can use Fibonacci numbers to develop an educated forecast concerning the final top for Ether. Please review the calculation on Chart 3 below:

The Future Price of Ethereum — Technical Analysis 17

There are several different ways to use Fib levels as a forecasting device. The most popular format involves calculating the price difference between two important price levels. For this particular calculation, we selected the historic high from January 2018 and the subsequent low achieved in December of the same year.

The majority of Fibonacci experts agree that .618 is the most significant Fib level. Therefore, we will use this number in our calculation. Based on the Fibonacci calculation, the final top for this cycle will be 4,921.73. If ETH follows the same path as the 2017 bull market, the top will occur in late-2021.

Another useful technical indicator is the Relative Strength Index (RSI), which was created by J Welles Wilder Jr, one of the greatest technical analysts in the history of financial markets. RSI is a momentum indicator that measures the overbought or oversold condition of a speculative asset. RSI is typically displayed in an oscillator format, which fluctuates between 0 and 100.

Generally speaking, a market is considered overbought if the RSI reading exceeds 70. Conversely, the market is considered oversold if the RSI reading falls below 30. Many traders will use a reading above 70 as a trigger to generate a sell signal and a reading below 30 will generate a buy signal. However, this is not a good strategy to follow in a momentum-fueled environment like cryptocurrencies. Please review Chart number 4:

The Future Price of Ethereum — Technical Analysis 18

The RSI reading has been above 70 since November 9, 2020, when ETH was trading @ 446.10. Obviously, this was not a good time to sell ETH. In fact, this would have been a great time to buy Ether. Therefore, an argument could be made that the optimum way to use RSI for trending markets like cryptocurrencies is to wait for a bullish breakout above 70 as a buy signal. A bearish breakout below 30 would constitute a sell signal. Trying to pick tops and bottoms in a trending market is a recipe for disaster. As Chart #4 clearly demonstrates, the best course of action is to follow the momentum.

In addition to RSI, another momentum-based indicator is the Money Flow Index (MFI). This indicator measures the inflow and outflow of money into a speculative asset over a specific period of time. It uses price and volume to calculate trading pressure. Arguably, MFI is the purest way to determine the amount of money entering and leaving a particular asset class.

Similar to RSI, the index fluctuates between 0 and 100. In terms of trending markets like cryptocurrencies, the best way to apply MFI is to wait for a bullish breakout above 70 or a bearish breakout below 30. MFI is located at the bottom of Chart #5.

The Future Price of Ethereum — Technical Analysis 19

An Ether buy signal was generated @ 509.11 on November 23, 2020, when MFI penetrated the 70 level. MFI has been continuously above 70 for the past five months. This is a perfect example of why it’s best to follow the trend of the market and avoid the temptation to pick a top or bottom.

At least for now, the trend of ETH is clearly in favor of the bulls. The vast majority of technical indicators are forecasting a continuation of the bull market. In addition to technical analysis, the fundamental backdrop for Ether is extremely bullish, as more use cases are being added to the Ethereum blockchain. Eventually, this bullish cycle will end and a new bear cycle will begin. However, this current bullish phase could easily continue for the remainder of 2021.

Don’t forget that whether the price of ETH goes up or down, you can make money trading ETH futures on our zero-fee rapid-fire ladder trading platform. Sign up here to find out how easy it is to profit from even the smallest of price fluctuations when you’re not constantly losing out to commissions. 

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

April 12, 2021
Digitex Futures

The Future Price of Ethereum — Technical Analysis

Dave Reiter
Ethereum

Similar to other coins and tokens, Ethereum has generated a substantial rally throughout the past six months. Specifically, ETH has increased 498%, outperforming BTC by approximately 60% during the same time period (see chart 1 below). So, where do we go from here? How will ETH perform for the remainder of 2021 and beyond? Let’s explore the details.

The Future Price of Ethereum — Technical Analysis 20

The Difference Between Ethereum and Ether

In terms of market capitalization, ETH is the second-largest cryptocurrency in the crypto universe. Only Bitcoin has a larger market capitalization. ETH has enjoyed some explosive price moves throughout its brief 6-year history. But, before we analyze the future price direction of ETH, let’s briefly discuss the difference between Ethereum and Ether.

There seems to be some confusion regarding these two crypto terms. Ethereum is a blockchain-based platform used for writing autonomous smart contracts and decentralized applications. Ether is the cryptocurrency that serves as the fuel to power the smart contracts, apps, and other transactions on the Ethereum blockchain.

Although most people in the crypto community (including many crypto websites) use these words interchangeably, they are actually quite different in terms of how they are used in the crypto ecosystem.

Use Cases for Ethereum Blockchain Continue to Expand

In this article, we will be analyzing the price direction of Ether (ETH), the cryptocurrency. However, it’s also important to discuss Ethereum, the blockchain, because it lays the foundation for the current ETH bull market. It seems almost impossible to believe that Ether was trading below $100 per token less than 15 months ago (see chart 2).

The Future Price of Ethereum — Technical Analysis 21

Over the course of the past 15 months, ETH has exploded to the upside by increasing 2,226%. Since March 2020, ETH has been one of the top-performing cryptocurrencies within the entire crypto universe. Ether easily outperformed Bitcoin during this particular time period, 2,226% versus 1,388%.

The majority of Ether’s gains can be attributed to the fact that the total number of use cases for the Ethereum blockchain has increased substantially. Unlike the Bitcoin blockchain, Ethereum can be used for multiple applications across a wide variety of industries. Several of these applications have evolved into legitimate and profitable business enterprises with exponential growth potential. Let’s briefly examine a few of these Ethereum-based businesses.

DeFi (Decentralized Finance)

Without question, the most exciting new business linked to Ethereum is decentralized finance, more commonly known as DeFi. Although DeFi has been in existence for less than four years, it has gained an incredible amount of interest from venture capital firms and angel investors who see the enormous potential in this new space.

Without going into great detail, DeFi competes head-to-head with the legacy financial services industry, with an estimated value of $26.5 trillion by 2022, according to data gathered by The World Bank. Based on these numbers, the upside potential in DeFi is massive. This is great news if you are an owner of ETH because the overwhelming majority of the DeFi ecosystem operates on the Ethereum blockchain.

NFTs (Non-Fungible Tokens)

Another business venture associated with Ethereum is non-fungible tokens (NFT), which have witnessed a tremendous wave of enthusiasm from investors and speculators during the past few months. Very briefly, non-fungible tokens allow non-fungible assets to possess unique properties that completely change the user and development relationship of these assets.

Examples of non-fungible digital assets include digital collectibles, such as in-game items and characters, virtual pets, and representations of fine art. By attaching unique properties such as immutability and scarcity to non-fungible assets, it substantially increases the value of said assets.

Almost the entire NFT industry operates on the Ethereum blockchain, which is obviously bullish for ETH. Arguably, the most exciting part of NFTs is the fact that young people are heavily involved in this exciting new space. Consequently, this will provide Generation Z with an opportunity to familiarize themselves with cryptocurrencies and other digital assets. This is very bullish from a long-term perspective.

In addition to DeFi and NFT, the Ethereum blockchain is also actively engaged in enterprise software, which is used by organizations, businesses, charities, schools, and governments to handle day-to-day operations across a wide variety of internal departments within each organization.

These daily operations would include such tasks as human resources, supply chain management, database management, CRM, security, and billing systems. Enterprise software companies are using a privatized version of the Ethereum network to provide their services to companies like Microsoft, IBM, JPMorgan Chase, and Deloitte.

These are just a few examples of how the Ethereum blockchain is linked to industries and businesses across the global economy. Of course, this is extremely bullish for ETH because these companies and businesses must purchase ETH in order to pay for their services on the Ethereum blockchain. Many crypto experts believe that the number of use cases for Ethereum will continue to expand as blockchain technology becomes more common throughout the global economy.

Using TA to Forecast the Price of ETH

Technical analysis has been extremely useful in forecasting the future price direction of ETH. Let’s review a few of these indicators.

Arguably, the most reliable technical indicator in modern history was created by a twelfth-century Italian mathematician by the name of Leonardo Fibonacci. The vast majority of mathematical historians consider Fibonacci to be the greatest mathematician of the Middle Ages. In fact, many experts in the field of mathematics claim that Fibonacci was one of the ten greatest mathematicians of all time.

Fibonacci made several important contributions to the field of mathematics throughout his life. However, he will always be most famously known for Fibonacci numbers, which are a sequence of numbers developed by Fibonacci circa 1202.

Fibonacci numbers are used in the study of nature, music, agriculture, computer applications, price forecasting, and several other fields of study. Stock and commodity traders use “Fib” numbers to calculate support and resistance levels.

The most common Fib levels are:

  • .236
  • .382
  • .500
  • .618
  • .786
  • 000

It’s not uncommon for financial assets like cryptocurrencies to fluctuate between Fibonacci support and resistance levels for long periods of time. When a major breakout finally occurs, it usually marks the beginning of a substantial move.

The crypto trading community would love to know the final top in ETH before a new bear market ensues, probably near the end of 2021 or early-2022. Of course, it’s impossible to accurately forecast the final top of any speculative asset. Cryptocurrencies are particularly difficult because we have such a small sample size of historical data. However, we can use Fibonacci numbers to develop an educated forecast concerning the final top for Ether. Please review the calculation on Chart 3 below:

The Future Price of Ethereum — Technical Analysis 22

There are several different ways to use Fib levels as a forecasting device. The most popular format involves calculating the price difference between two important price levels. For this particular calculation, we selected the historic high from January 2018 and the subsequent low achieved in December of the same year.

The majority of Fibonacci experts agree that .618 is the most significant Fib level. Therefore, we will use this number in our calculation. Based on the Fibonacci calculation, the final top for this cycle will be 4,921.73. If ETH follows the same path as the 2017 bull market, the top will occur in late-2021.

Another useful technical indicator is the Relative Strength Index (RSI), which was created by J Welles Wilder Jr, one of the greatest technical analysts in the history of financial markets. RSI is a momentum indicator that measures the overbought or oversold condition of a speculative asset. RSI is typically displayed in an oscillator format, which fluctuates between 0 and 100.

Generally speaking, a market is considered overbought if the RSI reading exceeds 70. Conversely, the market is considered oversold if the RSI reading falls below 30. Many traders will use a reading above 70 as a trigger to generate a sell signal and a reading below 30 will generate a buy signal. However, this is not a good strategy to follow in a momentum-fueled environment like cryptocurrencies. Please review Chart number 4:

The Future Price of Ethereum — Technical Analysis 23

The RSI reading has been above 70 since November 9, 2020, when ETH was trading @ 446.10. Obviously, this was not a good time to sell ETH. In fact, this would have been a great time to buy Ether. Therefore, an argument could be made that the optimum way to use RSI for trending markets like cryptocurrencies is to wait for a bullish breakout above 70 as a buy signal. A bearish breakout below 30 would constitute a sell signal. Trying to pick tops and bottoms in a trending market is a recipe for disaster. As Chart #4 clearly demonstrates, the best course of action is to follow the momentum.

In addition to RSI, another momentum-based indicator is the Money Flow Index (MFI). This indicator measures the inflow and outflow of money into a speculative asset over a specific period of time. It uses price and volume to calculate trading pressure. Arguably, MFI is the purest way to determine the amount of money entering and leaving a particular asset class.

Similar to RSI, the index fluctuates between 0 and 100. In terms of trending markets like cryptocurrencies, the best way to apply MFI is to wait for a bullish breakout above 70 or a bearish breakout below 30. MFI is located at the bottom of Chart #5.

The Future Price of Ethereum — Technical Analysis 24

An Ether buy signal was generated @ 509.11 on November 23, 2020, when MFI penetrated the 70 level. MFI has been continuously above 70 for the past five months. This is a perfect example of why it’s best to follow the trend of the market and avoid the temptation to pick a top or bottom.

At least for now, the trend of ETH is clearly in favor of the bulls. The vast majority of technical indicators are forecasting a continuation of the bull market. In addition to technical analysis, the fundamental backdrop for Ether is extremely bullish, as more use cases are being added to the Ethereum blockchain. Eventually, this bullish cycle will end and a new bear cycle will begin. However, this current bullish phase could easily continue for the remainder of 2021.

Don’t forget that whether the price of ETH goes up or down, you can make money trading ETH futures on our zero-fee rapid-fire ladder trading platform. Sign up here to find out how easy it is to profit from even the smallest of price fluctuations when you’re not constantly losing out to commissions. 

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.

Latest News

How Long Before Ethereum Fees Get Lower? 25

How Long Before Ethereum Fees Get Lower?

Cryptocurrency
Crypto Industry
• Digitex
April 5, 2021

Ethereum has been grabbing the headlines a lot lately. From the rising popularity of DeFi and NFTs to being Visa’s blockchain of choice for settling its first transaction, ETH price has been on the up, recently marking its latest all-time high of over $2,100. All this action surrounding the premier altcoin has undoubtedly been bullish for HODLers and yield farmers. But, what about regular users trying to interact with the Ethereum blockchain? 

Rising gas fees on the network have been pricing them out of the market. According to  BitInfoCharts, this time last year, the average transaction fee on the Ethereum network was around 8 cents. Today, users are facing regular averages of around $20 just to move funds, calling the promise of low fees and near-instant transfers of value into question. And for traders looking to avoid the volatility of cryptocurrencies by using stablecoins, such as the ERC20 versions of USDT or USDC on Ethereum, high fees create a barrier.

In tandem with rising fees comes rising network congestion. Not only do users have to pay prices on a par with PayPal to move their funds but they also have to wait for lengthy periods of time to do so. While the solution to all these problems is touted to be the long-awaited transition to a Proof of Stake blockchain (ETH 2.0), that could be a long time coming. So, how long will users really have to wait before Ethereum fees get lower?

Optimistic Rollups

Ethereum users cannot wait for years to resolve the problem of high fees as DeFi grows and Ethereum attracts increasing attention from investors. Interim solutions are needed in the meantime. Even Vitalik Buterin recognized that Ethereum scaling was a top priority  and that a solution in the shape of optimistic rollups was on the cards very soon.

How Long Before Ethereum Fees Get Lower? 26

If you think of the blockchain in layers, Ethereum is a layer 1 protocol, whereas rollups are a layer 2 solution that aggregate transactions and store them inside smart contracts to reduce congestion on the network and bring gas fees down.  

The concept of rollups was first described way back in 2014, but they were referred to as “shadow chains.” And now that network congestion and fees have been thrust into the limelight once more, their utility is back on the table. How long will it take for them to be implemented? Some projects such as Polygon (formerly Matic) have already started using them with success and, optimistically (groan), rollups could act as the mid-term solution for Ethereum.

Berlin Hard Fork

Another solution for gas fees may lie in the upcoming Berlin Hard Fork, slated to take place on April 14, 2021. Months in the planning, however, it’s not certain just how much of a dent the hard fork will make in gas fees or whether it will improve congestion. Four main improvement protocols (EIPs) will be deployed in Berlin to make the network more robust and hacker-resistant, as well as tackling gas fees. 

But different analysts have questioned how much of an effect the Berlin hard fork will really have on gas fees, citing that Ethereum has deep structural changes that need to be resolved for it to scale first before sustainable gas fees are achieved. 

Competing Blockchains

In the meantime, cryptocurrency industry participants are not sitting idle. Several PoS smart contract blockchains from Solana to Algorand have already started rolling out solutions to help traders avoid Ethereum’s high gas fees.

By running stablecoins like USDC and USDT on these blockchains, traders can move their funds from a crypto like BTC or ETH into a stablecoin almost instantly and for a cost of next to nothing. This is particularly appealing to high-frequency traders and users who simply want to move small-to-modest amounts of value without paying exorbitant fees.

There is also an increasing number of blockchains integrating EVM compatibility. This allows any smart contract deployed on the Ethereum blockchain to be deployed on them. dApp developers being priced out of the market by high fees can easily migrate their dApps to one of these blockchains and continue to develop without the high cost.

However, most of these come with trade-offs and are arguably centralized or flawed in some form or another. Moreover, network effect isn’t something that you simply knock out of the park straight away. Ethereum has much longer time in the market and still far and away the largest developer community, and number of dApps in the cryptosphere. It’s also the backbone of the majority of DeFi projects and is well-recognized now among a growing class of institutional investors.

Closing Thoughts

The upcoming Berlin hard fork could give network users some temporary relief as far as high gas fees go and optimistic rollups seem to be the next likely major step forward for Ethereum before it transitions to ETH 2.0. 

With a little bit of luck, we might expect to see lower gas fees on Ethereum by the middle of this month and at least sustainable rates coming soon while we wait for ETH 2.0. In the meantime, Ethereum will certainly be keeping its eyes open to the cohort of high throughput blockchains that are springing up around it promising faster transactions and lower costs. 

Want to trade ETH futures with zero commissions on crypto’s only trading ladder interface? Sign up for a KYC-free account and start making gains now.

April 5, 2021
Cryptocurrency
Crypto Industry

How Long Before Ethereum Fees Get Lower?

Digitex
How Long Before Ethereum Fees Get Lower? 27

Ethereum has been grabbing the headlines a lot lately. From the rising popularity of DeFi and NFTs to being Visa’s blockchain of choice for settling its first transaction, ETH price has been on the up, recently marking its latest all-time high of over $2,100. All this action surrounding the premier altcoin has undoubtedly been bullish for HODLers and yield farmers. But, what about regular users trying to interact with the Ethereum blockchain? 

Rising gas fees on the network have been pricing them out of the market. According to  BitInfoCharts, this time last year, the average transaction fee on the Ethereum network was around 8 cents. Today, users are facing regular averages of around $20 just to move funds, calling the promise of low fees and near-instant transfers of value into question. And for traders looking to avoid the volatility of cryptocurrencies by using stablecoins, such as the ERC20 versions of USDT or USDC on Ethereum, high fees create a barrier.

In tandem with rising fees comes rising network congestion. Not only do users have to pay prices on a par with PayPal to move their funds but they also have to wait for lengthy periods of time to do so. While the solution to all these problems is touted to be the long-awaited transition to a Proof of Stake blockchain (ETH 2.0), that could be a long time coming. So, how long will users really have to wait before Ethereum fees get lower?

Optimistic Rollups

Ethereum users cannot wait for years to resolve the problem of high fees as DeFi grows and Ethereum attracts increasing attention from investors. Interim solutions are needed in the meantime. Even Vitalik Buterin recognized that Ethereum scaling was a top priority  and that a solution in the shape of optimistic rollups was on the cards very soon.

How Long Before Ethereum Fees Get Lower? 28

If you think of the blockchain in layers, Ethereum is a layer 1 protocol, whereas rollups are a layer 2 solution that aggregate transactions and store them inside smart contracts to reduce congestion on the network and bring gas fees down.  

The concept of rollups was first described way back in 2014, but they were referred to as “shadow chains.” And now that network congestion and fees have been thrust into the limelight once more, their utility is back on the table. How long will it take for them to be implemented? Some projects such as Polygon (formerly Matic) have already started using them with success and, optimistically (groan), rollups could act as the mid-term solution for Ethereum.

Berlin Hard Fork

Another solution for gas fees may lie in the upcoming Berlin Hard Fork, slated to take place on April 14, 2021. Months in the planning, however, it’s not certain just how much of a dent the hard fork will make in gas fees or whether it will improve congestion. Four main improvement protocols (EIPs) will be deployed in Berlin to make the network more robust and hacker-resistant, as well as tackling gas fees. 

But different analysts have questioned how much of an effect the Berlin hard fork will really have on gas fees, citing that Ethereum has deep structural changes that need to be resolved for it to scale first before sustainable gas fees are achieved. 

Competing Blockchains

In the meantime, cryptocurrency industry participants are not sitting idle. Several PoS smart contract blockchains from Solana to Algorand have already started rolling out solutions to help traders avoid Ethereum’s high gas fees.

By running stablecoins like USDC and USDT on these blockchains, traders can move their funds from a crypto like BTC or ETH into a stablecoin almost instantly and for a cost of next to nothing. This is particularly appealing to high-frequency traders and users who simply want to move small-to-modest amounts of value without paying exorbitant fees.

There is also an increasing number of blockchains integrating EVM compatibility. This allows any smart contract deployed on the Ethereum blockchain to be deployed on them. dApp developers being priced out of the market by high fees can easily migrate their dApps to one of these blockchains and continue to develop without the high cost.

However, most of these come with trade-offs and are arguably centralized or flawed in some form or another. Moreover, network effect isn’t something that you simply knock out of the park straight away. Ethereum has much longer time in the market and still far and away the largest developer community, and number of dApps in the cryptosphere. It’s also the backbone of the majority of DeFi projects and is well-recognized now among a growing class of institutional investors.

Closing Thoughts

The upcoming Berlin hard fork could give network users some temporary relief as far as high gas fees go and optimistic rollups seem to be the next likely major step forward for Ethereum before it transitions to ETH 2.0. 

With a little bit of luck, we might expect to see lower gas fees on Ethereum by the middle of this month and at least sustainable rates coming soon while we wait for ETH 2.0. In the meantime, Ethereum will certainly be keeping its eyes open to the cohort of high throughput blockchains that are springing up around it promising faster transactions and lower costs. 

Want to trade ETH futures with zero commissions on crypto’s only trading ladder interface? Sign up for a KYC-free account and start making gains now.

Latest News

Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains 29

Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains

Trading
• Ali Martinez
June 16, 2020

Digitex Futures Exchange is gearing up to roll out a new financial product this summer that will enable mainnet users to benefit from Ethereum’s price action. The new ETHUSD perpetual contracts together with the opportunity for zero-fee trading will offer a broader range of markets to our traders, attracting more users to our mainnet and driving demand for the DGTX token. 

For this reason, we have decided to take a look at the different milestones that Ethereum has reached over the past year to determine whether or not it will offer sizable opportunities for those trading it.

Ethereum’s Utility Increases Over Time

The second-largest cryptocurrency in the industry by market cap, Ethereum, has managed to expand its reach to millions of investors worldwide over the past year. Not only Japan’s e-commerce giant Ratuken launched a new mobile app that offers a spot trading service for ETH, but Swiss exchange SIX listed a joint Bitcoin and Ether exchange-traded product (ETP).

The move was meant to provide a “unique way for investors to add the two major cryptocurrencies globally to their portfolio,” according to Amun CEO Hany Rashwan.

As more retail and institutional investors gained access to Ethereum, different organizations across the globe have employed the smart contracts giant’s technology to improve their operations. IKEA, for instance, took part in a commercial transaction on the Ethereum network to facilitate the settlement of an order from a local retailer. Uniswap, on the other hand, listed the first real estate security token and UNICEF, the United Nations’ charity arm for children, launched a cryptocurrency fund based on Ether donations.

Meanwhile, professional soccer clubs Galatasaray Spor Kulübü and Juventus, as well as NBA’s Sacramento Kings and the Ultimate Fighting Championship (UFC), developed Ethereum-based digital assets as a new way to keep their fans engaged.

Now, the Ethereum Foundation prepares to transition from a proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS) and its utility may expand further. The upgrade is expected to solve the scalability issues that the network has faced throughout the years and transform the crypto-economic incentives by rewarding ETH holders.

The launch of ETH 2.0 is scheduled for Q3 2020, but as speculation mounts around the upcoming hard fork, demand for this altcoin is assumed to rise.

“It’s hard to be bearish with Ethereum staking coming soon. I suspect there will be a lot more ether staked than the projected 10-30 million. Perhaps even 50 million-plus if a lot of people select to stake through exchanges/rocket pool,” said David Schwartz, a senior software engineer at decentralized exchange Nash.

While market participants grow overwhelmingly bullish about what the future holds for Ether, different charting patterns validate this momentum.

Prices Continue Trending Up

Despite the downward pressure on Ethereum since the beginning of the month, its price continues trending up from a long-term perspective. Based on the 1-day chart, the smart contract giant is contained within an ascending parallel channel that began to take shape during the March market meltdown.

Consistent with the characteristics of this technical pattern, each time Ether rises to the upper boundary of the channel, it retraces down to hit the lower boundary. From this point, it bounces back up again.

The recent bearish impulse that Ether went through allowed it to reach the bottom of the channel. If this support barrier continues to hold, ETH could surge to the middle or upper boundary of the channel like it has done it over the past three months.

Failing to do so, however, could jeopardize the bullish outlook and set off the alerts for a steep decline.

Ethereum US dollar price chart
Ethereum Is Contained Within a Parallel Channel. (Source: TradingView)

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that bouncing off the lower boundary of the ascending parallel channel will not be easy this time around.

Based on this on-chain metric, roughly 1.24 million addresses bought over 7.42 million ETH between $235 and $242. These price levels represent a massive hurdle that may have the ability to absorb any upside pressure. But breaking through it will increase the odds for an upswing towards $280 since there isn’t any significant resistance in-between.

On the flip side, the IOMAP cohorts reveal that if the current support level fails to hold, the most next significant barrier to watch out for sits around $204. Here, nearly 1.7 million addresses purchased more than 6 million ETH.

Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)
Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)

Due to the ambiguous outlook, the Fibonacci retracement indicator indicates that the area between the 61.8% and 78.6% Fib is a reasonable no-trade zone. This support and resistance points sit at $211 and $245, respectively.

A daily candlestick close above this area may see an increase in demand that sends Ether to the upper boundary of the aforementioned parallel channel.

Ethereum US dollar price chart
Ethereum Sits In a No-Trade Zone. (Source: TradingView)

Conversely, a sudden rise in the sell orders behind this cryptocurrency that allows it to drop below this no-trade zone might ignite a sell-off. Under such circumstances, investors should expect Ether to plunge towards the 50% or 38.2% Fib levels that lie around $188 and $165, respectively.

With the cryptocurrency market on the cusp of its next bullish cycle, it is crucial to understand the significance of the support and resistance levels previously mentioned. Although there is more room to go up, a steep correction can be extremely beneficial in the long-term. It could help flush out some of the so-called “weak hands” and allow sidelined investors to get back in the market.

A new inflow of capital into Ethereum may eventually propel its price to new-yearly highs.

June 16, 2020
Trading

Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains

Ali Martinez
Ethereum Paves the Way For Mainstream Adoption as It Signals Further Gains 30

Digitex Futures Exchange is gearing up to roll out a new financial product this summer that will enable mainnet users to benefit from Ethereum’s price action. The new ETHUSD perpetual contracts together with the opportunity for zero-fee trading will offer a broader range of markets to our traders, attracting more users to our mainnet and driving demand for the DGTX token. 

For this reason, we have decided to take a look at the different milestones that Ethereum has reached over the past year to determine whether or not it will offer sizable opportunities for those trading it.

Ethereum’s Utility Increases Over Time

The second-largest cryptocurrency in the industry by market cap, Ethereum, has managed to expand its reach to millions of investors worldwide over the past year. Not only Japan’s e-commerce giant Ratuken launched a new mobile app that offers a spot trading service for ETH, but Swiss exchange SIX listed a joint Bitcoin and Ether exchange-traded product (ETP).

The move was meant to provide a “unique way for investors to add the two major cryptocurrencies globally to their portfolio,” according to Amun CEO Hany Rashwan.

As more retail and institutional investors gained access to Ethereum, different organizations across the globe have employed the smart contracts giant’s technology to improve their operations. IKEA, for instance, took part in a commercial transaction on the Ethereum network to facilitate the settlement of an order from a local retailer. Uniswap, on the other hand, listed the first real estate security token and UNICEF, the United Nations’ charity arm for children, launched a cryptocurrency fund based on Ether donations.

Meanwhile, professional soccer clubs Galatasaray Spor Kulübü and Juventus, as well as NBA’s Sacramento Kings and the Ultimate Fighting Championship (UFC), developed Ethereum-based digital assets as a new way to keep their fans engaged.

Now, the Ethereum Foundation prepares to transition from a proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS) and its utility may expand further. The upgrade is expected to solve the scalability issues that the network has faced throughout the years and transform the crypto-economic incentives by rewarding ETH holders.

The launch of ETH 2.0 is scheduled for Q3 2020, but as speculation mounts around the upcoming hard fork, demand for this altcoin is assumed to rise.

“It’s hard to be bearish with Ethereum staking coming soon. I suspect there will be a lot more ether staked than the projected 10-30 million. Perhaps even 50 million-plus if a lot of people select to stake through exchanges/rocket pool,” said David Schwartz, a senior software engineer at decentralized exchange Nash.

While market participants grow overwhelmingly bullish about what the future holds for Ether, different charting patterns validate this momentum.

Prices Continue Trending Up

Despite the downward pressure on Ethereum since the beginning of the month, its price continues trending up from a long-term perspective. Based on the 1-day chart, the smart contract giant is contained within an ascending parallel channel that began to take shape during the March market meltdown.

Consistent with the characteristics of this technical pattern, each time Ether rises to the upper boundary of the channel, it retraces down to hit the lower boundary. From this point, it bounces back up again.

The recent bearish impulse that Ether went through allowed it to reach the bottom of the channel. If this support barrier continues to hold, ETH could surge to the middle or upper boundary of the channel like it has done it over the past three months.

Failing to do so, however, could jeopardize the bullish outlook and set off the alerts for a steep decline.

Ethereum US dollar price chart
Ethereum Is Contained Within a Parallel Channel. (Source: TradingView)

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that bouncing off the lower boundary of the ascending parallel channel will not be easy this time around.

Based on this on-chain metric, roughly 1.24 million addresses bought over 7.42 million ETH between $235 and $242. These price levels represent a massive hurdle that may have the ability to absorb any upside pressure. But breaking through it will increase the odds for an upswing towards $280 since there isn’t any significant resistance in-between.

On the flip side, the IOMAP cohorts reveal that if the current support level fails to hold, the most next significant barrier to watch out for sits around $204. Here, nearly 1.7 million addresses purchased more than 6 million ETH.

Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)
Ethereum Faces Strong Resistance Ahead. (Source: IntoTheBlock)

Due to the ambiguous outlook, the Fibonacci retracement indicator indicates that the area between the 61.8% and 78.6% Fib is a reasonable no-trade zone. This support and resistance points sit at $211 and $245, respectively.

A daily candlestick close above this area may see an increase in demand that sends Ether to the upper boundary of the aforementioned parallel channel.

Ethereum US dollar price chart
Ethereum Sits In a No-Trade Zone. (Source: TradingView)

Conversely, a sudden rise in the sell orders behind this cryptocurrency that allows it to drop below this no-trade zone might ignite a sell-off. Under such circumstances, investors should expect Ether to plunge towards the 50% or 38.2% Fib levels that lie around $188 and $165, respectively.

With the cryptocurrency market on the cusp of its next bullish cycle, it is crucial to understand the significance of the support and resistance levels previously mentioned. Although there is more room to go up, a steep correction can be extremely beneficial in the long-term. It could help flush out some of the so-called “weak hands” and allow sidelined investors to get back in the market.

A new inflow of capital into Ethereum may eventually propel its price to new-yearly highs.

Latest News

Crypto

Digitex Futures Is Helping to Grow the Crypto Space

Crypto Industry
Digitex Futures
• Christina Comben
March 23, 2020

We often talk about Digitex going head to head with cryptocurrency’s major exchanges. Not only is it good to have a goal, but a little competition is healthy. No one wants the blockchain ecosystem to develop like the internet has, with four or five monopolies running the show. However, at Digitex, we never forget that we’re part of something so much bigger. There’s plenty of space for every legitimate project or exchange that wants to bring value to its users.

Let’s Grow This Space Together

Binance’s charismatic leader Changpeng Zhao (CZ) put out a memorable tweet in response to a supporter who stated that BNB was going obliterate ETH. He thanked him for his excitement and positivity toward Binance Coin but reminded supporters that destroying Ethereum is not the goal.

CZ said that there is no need to “diss” other coins, that Ethereum is still a powerhouse blockchain and that we should grow this space together. When one of his followers asked if that was a subtle hint at monopolization, he replied:

“No, we want thousands of blockchains and millions of tokens”

Honestly, he couldn’t have put it better. Yeah, it may sometimes feel as if Binance has an unstoppable influence on the market. But let’s give credit where credit is due. Binance has grown so fast due to its low fee model (note, not zero-fee!), a supportive community, innovative leadership, and a passionate and talented team. 

But just like everything else, people should always have options. Binance Futures is not for short-term, high frequency, low volume traders like Digitex. There’s plenty of room for other blockchains, exchanges, and tokens, as the space grows bigger and better together.

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW
Let’s Remember the Phase of Adoption We’re in

If blockchain were a human being, it would be just about learning to walk by now. When you’re so immersed in an industry, it’s easy to forget that the majority of people are still not even waiting at the gates. Less than 10 percent of the UK uses cryptocurrencies for example.

Facebook has over 2.2 billion users around the world. There were 42 million Bitcoin wallets as of Feb 2020. Inward fighting and social media wars at this stage are not helpful for anyone.

Alex Mashinsky, the inventor of VOIP technology and CEO of Celsius Network, a company that offers high-interest accounts and low-interest loans using crypto as collateral, said at Paris Blockchain Week Summit:

“It’s all about expanding the community, right? So we think about how can we build a large community, how we can always act in the best interests of our community and how we can always build in our innovation and be the opposite of what a bank or financial institution is. The competition is not from inside, the competition is only the banks.”

Every player in the cryptocurrency ecosystem should be concentrating on furthering and improving their own products and on expanding the infrastructure until we reach higher adoption.

What Digitex Futures Brings to the Space

You already know that commission-free and a one-click trading ladder are our main value props. With those two factors alone, we’re already bringing tremendous value to the industry. But we also offer an alternative method of tokenomics to remove commissions. 

We don’t use traditional market makers that need paying or expect preferential treatment and we’ll be extremely well-capitalized thanks to the 10 percent of token supply held back for market makers that are programmed to lose.

As Adam said on his AMA panel at the Paris Blockchain Week Summit:

“As an exchange, because our token is the only currency you can use on there, we are actually a very, very well-capitalized exchange and we’re actually going to have very tight bid-ask spreads because of the market making setup we’ve got.”

Our DGTX futures exchange token has value for both traders and HODLers. Even in bearish conditions, DGTX has bucked the trend and is currently trading at more than 4x its ICO price. But we’re capable of so much more. The world of crypto doesn’t grow in a straight line.

ShapeShift founder and Cryptocurrency thought leader, Erik Voorhees said:

“You can’t change the world in a smooth predictable curve.”

We’ll have our ups and downs, and price fluctuations like anyone else out there, but the focus is on continual growth, attracting more traders, and by default, increasing the demand and price for the DGTX token while building up this industry together.

Do you want to stock up on DGTX tokens ahead of the mainnet launch? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX
March 23, 2020
Crypto Industry
Digitex Futures

Digitex Futures Is Helping to Grow the Crypto Space

Christina Comben
Crypto

We often talk about Digitex going head to head with cryptocurrency’s major exchanges. Not only is it good to have a goal, but a little competition is healthy. No one wants the blockchain ecosystem to develop like the internet has, with four or five monopolies running the show. However, at Digitex, we never forget that we’re part of something so much bigger. There’s plenty of space for every legitimate project or exchange that wants to bring value to its users.

Let’s Grow This Space Together

Binance’s charismatic leader Changpeng Zhao (CZ) put out a memorable tweet in response to a supporter who stated that BNB was going obliterate ETH. He thanked him for his excitement and positivity toward Binance Coin but reminded supporters that destroying Ethereum is not the goal.

CZ said that there is no need to “diss” other coins, that Ethereum is still a powerhouse blockchain and that we should grow this space together. When one of his followers asked if that was a subtle hint at monopolization, he replied:

“No, we want thousands of blockchains and millions of tokens”

Honestly, he couldn’t have put it better. Yeah, it may sometimes feel as if Binance has an unstoppable influence on the market. But let’s give credit where credit is due. Binance has grown so fast due to its low fee model (note, not zero-fee!), a supportive community, innovative leadership, and a passionate and talented team. 

But just like everything else, people should always have options. Binance Futures is not for short-term, high frequency, low volume traders like Digitex. There’s plenty of room for other blockchains, exchanges, and tokens, as the space grows bigger and better together.

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW
Let’s Remember the Phase of Adoption We’re in

If blockchain were a human being, it would be just about learning to walk by now. When you’re so immersed in an industry, it’s easy to forget that the majority of people are still not even waiting at the gates. Less than 10 percent of the UK uses cryptocurrencies for example.

Facebook has over 2.2 billion users around the world. There were 42 million Bitcoin wallets as of Feb 2020. Inward fighting and social media wars at this stage are not helpful for anyone.

Alex Mashinsky, the inventor of VOIP technology and CEO of Celsius Network, a company that offers high-interest accounts and low-interest loans using crypto as collateral, said at Paris Blockchain Week Summit:

“It’s all about expanding the community, right? So we think about how can we build a large community, how we can always act in the best interests of our community and how we can always build in our innovation and be the opposite of what a bank or financial institution is. The competition is not from inside, the competition is only the banks.”

Every player in the cryptocurrency ecosystem should be concentrating on furthering and improving their own products and on expanding the infrastructure until we reach higher adoption.

What Digitex Futures Brings to the Space

You already know that commission-free and a one-click trading ladder are our main value props. With those two factors alone, we’re already bringing tremendous value to the industry. But we also offer an alternative method of tokenomics to remove commissions. 

We don’t use traditional market makers that need paying or expect preferential treatment and we’ll be extremely well-capitalized thanks to the 10 percent of token supply held back for market makers that are programmed to lose.

As Adam said on his AMA panel at the Paris Blockchain Week Summit:

“As an exchange, because our token is the only currency you can use on there, we are actually a very, very well-capitalized exchange and we’re actually going to have very tight bid-ask spreads because of the market making setup we’ve got.”

Our DGTX futures exchange token has value for both traders and HODLers. Even in bearish conditions, DGTX has bucked the trend and is currently trading at more than 4x its ICO price. But we’re capable of so much more. The world of crypto doesn’t grow in a straight line.

ShapeShift founder and Cryptocurrency thought leader, Erik Voorhees said:

“You can’t change the world in a smooth predictable curve.”

We’ll have our ups and downs, and price fluctuations like anyone else out there, but the focus is on continual growth, attracting more traders, and by default, increasing the demand and price for the DGTX token while building up this industry together.

Do you want to stock up on DGTX tokens ahead of the mainnet launch? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX

Latest News

Digitex's Decentralized Exchange (DEX) Head Researcher, Petr Korolev 31

Digitex’s Decentralized Exchange (DEX) Head Researcher, Petr Korolev

Blockchain
Digitex Futures
• admin
August 19, 2019

Petr Korolev of Matter Labs is working closely with Digitex developers SmartDec on the build of Digitex’s decentralized futures trading platform. Petre took some time out of his busy schedule to talk to us about scaling challenges, hackathons and why there’s always plenty to do in the blockchain development space. 
Q: Petr, tell us about yourself and your company. What’s your relationship with SmartDec and the development of the Digitex futures exchange? 
Currently, I’m working as an external expert and partner in close cooperation with SmartDec. I’m the co-founder of Matter Labs, so our chosen name for this collaboration is “SmartMatter”. Matter Labs and SmartDec have already worked on several projects together, so our partnership is a longstanding one. 
So far, my role in the Digitex development project is working on implementing various blockchain innovations: scaling solutions, or more specifically the Plasma research, decentralized trading engines, and non-custodial storage of value. 
I was impressed by the ideas Digitex is bringing to the space, which make use of these innovations. The exchange offers exciting technical development opportunities within the blockchain space. It’s interesting for me to participate and contribute to this process. 
Q: How and why did you get into Ethereum? What makes it so appealing to you?
I have been working in IT for the last 12 years, covering everything from low-level ASM-programming of microprocessors at Intel to advanced machine learning techniques.
In the last 5 years, my focus shifted to fintech and the information security area, which naturally led into the blockchain space. I find it fascinating because blockchain is still new, so from a technical perspective, there are always intriguing problems to work on. It’s an excellent opportunity to solve challenges that nobody has faced before. You are working not as a developer in the more traditional sense, but more like a pioneer and innovator in this field. That’s why I find this area really exciting.
Q: How did you become a researcher into Ethereum’s scaling solutions and what are you working on?
Scalable blockchains are in high demand. So, as someone who does research and development on decentralized systems, it’s inevitable that I’ve come to work on scaling solutions. Moreover, I work a lot on open-source development, participating in ETHackathons. The topic of scaling solutions is everywhere in the community — it’s time to #buidl real tools. 
Let me make a comparison between the mobile and blockchain industries. Blockchain now is at the early stage of its evolution. Although Bitcoin has just recently celebrated its 10th anniversary, the current progress of the blockchain area is similar to the smartphone industry in 2012. 
At that time, it was new technology – there were no precedents or instruction manuals. Developers had to create all kinds of frameworks and fix technical gaps like smooth scrolling, quick search and figure out how to fetch a massive amount of data via mobile networks. Many of these solutions have now become industry standards.
The same things are happening in the blockchain area now. Developers are being challenged to come up with new ideas related to privacy and scaling solutions, as well as with UI/UX. So that’s what I’m working on now. 
And that’s what we’re doing with the SmartDec team – implementing cutting-edge technologies into Digitex futures. On the one hand, we provide a user-friendly interface that hides the complexity of blockchain under the hood. On the other hand, we offer a solution to guarantee the safety of your funds with secure cryptography solutions.
Q: Why you do see Digitex a practical use case for this technology?
Scalability is the number one limitation problem of blockchain. It is not as easy as it sounds to manage a high number of transactions and to do it fast. All this is a primary demand for any exchange that wants to be competitive and attractive, and Digitex is no different. Scaling solutions provide the answer to a possible high capacity of the exchange’s blockchain platform, processing transactions in the network.
Q: What does a typical day look like to you (is there such a thing?!)
I have some rituals in my daily life, like morning yoga and meditation. Usually, I try to plan my day in advance, but we are all humans, and not always everything in life can be scheduled! Most of my time in the working day is dedicated to meetings and to the research itself; coding, researching previous articles and implementations, explore open-source toolsets, that kind of thing. 
Q: What do you love most about your job?
I like that every situation is unique and every time you need to find some new solution. There’s no standard answer or technology for all issues and questions. This always motivates me to make sure I’m on the inside of the industry, know everything I can about the market and competitors, and increase my knowledge so I can provide relevant and competitive solutions. 
Q: What is the most challenging part?
That’s difficult to say when your job is also your passion! In comparison to traditional development, it’s hard to predict and guarantee any results in blockchain. It’s challenging that you never know if some solution or initiative you’re working on will ever work, or be delivered to the market. 
Sometimes it might be a massive amount of information or no information at all for the research, sometimes it might be deadlines. Other times it is just hard to go to sleep when you’ve come across a problem that doesn’t yet have a solution, and your brain won’t stop thinking about it!
Q: You’ve won six out of seven hackathons. That’s pretty impressive! What was your favorite one, and what did it involve?
First, I would like to say that hackathons are always about the collaboration between teammates, mentors and other people involved. I’m happy to have worked with awesome teammates who made it happen.
It started in 2017 when I went to the most significant blockchain hackathon in Russia. It was the first time when I decided to code something blockchain-related. I got the main stage prize directly from Vitalik. That’s how it started.
My favorite hackathon projects are mobile smart-contract interactions (that was later named web3swift), Pyromania, and zDai. Pyromania was the winner of ETHParis 2019, main stage and two sponsors Prizes. zDai.io was the winner of ETHDenver 2019, main stage and three sponsor prizes. Web3swift was the winner of ETHDenver 2018.
Q: How do you see the whole space evolving over the next 5-10 years?
Would you have imagined five or ten years ago that we’ll now be talking about Ethereum, scaling, and cryptocurrencies? I’d guess that the answer will be “no” for most people! 
So, our world and industry are changing so fast that it’s hard to predict anything. I know one thing for sure: it doesn’t matter what I will be doing in 5-10 years, but I will do it for the benefit of people by protecting digital values: personal financial freedom and human right to preserve privacy. That’s the main goal that I’m pursuing.
Q: What do you do when you’re not at your keyboard?
Usually, I’m on my phone, haha! Just what ordinary people do – spending time with family, friends, doing sports. At one time, I was a workaholic but then got kind of burned out, quit IT for six months, and went to the Himalayan mountains in India. Now, I stick to the idea that if you want to be successful then everything should be in balance. 
Thank you Petr, for your time talking to us, and your dedication to building the best possible platform for the decentralized Digitex Futures exchange! 
The DEX version of Digitex Futures (decentralized exchange) is in a research and development stage lead by Petr Korolev in a collaborative effort with SmartDec and other team members specializing in this space. Digitex has created a specific resource allocation to fund this research, putting Digitex at the forefront of building the DEX scalability solution. And when we do, we will be the world’s first DEX zero-fee futures exchange. 
This is an extraordinary discovery process leading to a cutting-edge product for the crypto futures trading market. Although, there is significant work ahead in this journey. Therefore, it’s most likely that we will launch a centralized Digitex Futures exchange first as the framework and engine are much closer to being production-ready, while the DEX side still has much work left ahead. This will enable us to launch our exchange, without waiting for the DEX technology to undergo the necessary further development and later, rigorous testing. 
At Digitex, we believe in delivering the best and most innovative product into the market, hence why it has taken us much longer than originally planned to release the first version of Digitex. Stay tuned for further updates as we move ever-closer to launch!

August 19, 2019
Blockchain
Digitex Futures

Digitex’s Decentralized Exchange (DEX) Head Researcher, Petr Korolev

admin
Digitex's Decentralized Exchange (DEX) Head Researcher, Petr Korolev 32

Petr Korolev of Matter Labs is working closely with Digitex developers SmartDec on the build of Digitex’s decentralized futures trading platform. Petre took some time out of his busy schedule to talk to us about scaling challenges, hackathons and why there’s always plenty to do in the blockchain development space. 
Q: Petr, tell us about yourself and your company. What’s your relationship with SmartDec and the development of the Digitex futures exchange? 
Currently, I’m working as an external expert and partner in close cooperation with SmartDec. I’m the co-founder of Matter Labs, so our chosen name for this collaboration is “SmartMatter”. Matter Labs and SmartDec have already worked on several projects together, so our partnership is a longstanding one. 
So far, my role in the Digitex development project is working on implementing various blockchain innovations: scaling solutions, or more specifically the Plasma research, decentralized trading engines, and non-custodial storage of value. 
I was impressed by the ideas Digitex is bringing to the space, which make use of these innovations. The exchange offers exciting technical development opportunities within the blockchain space. It’s interesting for me to participate and contribute to this process. 
Q: How and why did you get into Ethereum? What makes it so appealing to you?
I have been working in IT for the last 12 years, covering everything from low-level ASM-programming of microprocessors at Intel to advanced machine learning techniques.
In the last 5 years, my focus shifted to fintech and the information security area, which naturally led into the blockchain space. I find it fascinating because blockchain is still new, so from a technical perspective, there are always intriguing problems to work on. It’s an excellent opportunity to solve challenges that nobody has faced before. You are working not as a developer in the more traditional sense, but more like a pioneer and innovator in this field. That’s why I find this area really exciting.
Q: How did you become a researcher into Ethereum’s scaling solutions and what are you working on?
Scalable blockchains are in high demand. So, as someone who does research and development on decentralized systems, it’s inevitable that I’ve come to work on scaling solutions. Moreover, I work a lot on open-source development, participating in ETHackathons. The topic of scaling solutions is everywhere in the community — it’s time to #buidl real tools. 
Let me make a comparison between the mobile and blockchain industries. Blockchain now is at the early stage of its evolution. Although Bitcoin has just recently celebrated its 10th anniversary, the current progress of the blockchain area is similar to the smartphone industry in 2012. 
At that time, it was new technology – there were no precedents or instruction manuals. Developers had to create all kinds of frameworks and fix technical gaps like smooth scrolling, quick search and figure out how to fetch a massive amount of data via mobile networks. Many of these solutions have now become industry standards.
The same things are happening in the blockchain area now. Developers are being challenged to come up with new ideas related to privacy and scaling solutions, as well as with UI/UX. So that’s what I’m working on now. 
And that’s what we’re doing with the SmartDec team – implementing cutting-edge technologies into Digitex futures. On the one hand, we provide a user-friendly interface that hides the complexity of blockchain under the hood. On the other hand, we offer a solution to guarantee the safety of your funds with secure cryptography solutions.
Q: Why you do see Digitex a practical use case for this technology?
Scalability is the number one limitation problem of blockchain. It is not as easy as it sounds to manage a high number of transactions and to do it fast. All this is a primary demand for any exchange that wants to be competitive and attractive, and Digitex is no different. Scaling solutions provide the answer to a possible high capacity of the exchange’s blockchain platform, processing transactions in the network.
Q: What does a typical day look like to you (is there such a thing?!)
I have some rituals in my daily life, like morning yoga and meditation. Usually, I try to plan my day in advance, but we are all humans, and not always everything in life can be scheduled! Most of my time in the working day is dedicated to meetings and to the research itself; coding, researching previous articles and implementations, explore open-source toolsets, that kind of thing. 
Q: What do you love most about your job?
I like that every situation is unique and every time you need to find some new solution. There’s no standard answer or technology for all issues and questions. This always motivates me to make sure I’m on the inside of the industry, know everything I can about the market and competitors, and increase my knowledge so I can provide relevant and competitive solutions. 
Q: What is the most challenging part?
That’s difficult to say when your job is also your passion! In comparison to traditional development, it’s hard to predict and guarantee any results in blockchain. It’s challenging that you never know if some solution or initiative you’re working on will ever work, or be delivered to the market. 
Sometimes it might be a massive amount of information or no information at all for the research, sometimes it might be deadlines. Other times it is just hard to go to sleep when you’ve come across a problem that doesn’t yet have a solution, and your brain won’t stop thinking about it!
Q: You’ve won six out of seven hackathons. That’s pretty impressive! What was your favorite one, and what did it involve?
First, I would like to say that hackathons are always about the collaboration between teammates, mentors and other people involved. I’m happy to have worked with awesome teammates who made it happen.
It started in 2017 when I went to the most significant blockchain hackathon in Russia. It was the first time when I decided to code something blockchain-related. I got the main stage prize directly from Vitalik. That’s how it started.
My favorite hackathon projects are mobile smart-contract interactions (that was later named web3swift), Pyromania, and zDai. Pyromania was the winner of ETHParis 2019, main stage and two sponsors Prizes. zDai.io was the winner of ETHDenver 2019, main stage and three sponsor prizes. Web3swift was the winner of ETHDenver 2018.
Q: How do you see the whole space evolving over the next 5-10 years?
Would you have imagined five or ten years ago that we’ll now be talking about Ethereum, scaling, and cryptocurrencies? I’d guess that the answer will be “no” for most people! 
So, our world and industry are changing so fast that it’s hard to predict anything. I know one thing for sure: it doesn’t matter what I will be doing in 5-10 years, but I will do it for the benefit of people by protecting digital values: personal financial freedom and human right to preserve privacy. That’s the main goal that I’m pursuing.
Q: What do you do when you’re not at your keyboard?
Usually, I’m on my phone, haha! Just what ordinary people do – spending time with family, friends, doing sports. At one time, I was a workaholic but then got kind of burned out, quit IT for six months, and went to the Himalayan mountains in India. Now, I stick to the idea that if you want to be successful then everything should be in balance. 
Thank you Petr, for your time talking to us, and your dedication to building the best possible platform for the decentralized Digitex Futures exchange! 
The DEX version of Digitex Futures (decentralized exchange) is in a research and development stage lead by Petr Korolev in a collaborative effort with SmartDec and other team members specializing in this space. Digitex has created a specific resource allocation to fund this research, putting Digitex at the forefront of building the DEX scalability solution. And when we do, we will be the world’s first DEX zero-fee futures exchange. 
This is an extraordinary discovery process leading to a cutting-edge product for the crypto futures trading market. Although, there is significant work ahead in this journey. Therefore, it’s most likely that we will launch a centralized Digitex Futures exchange first as the framework and engine are much closer to being production-ready, while the DEX side still has much work left ahead. This will enable us to launch our exchange, without waiting for the DEX technology to undergo the necessary further development and later, rigorous testing. 
At Digitex, we believe in delivering the best and most innovative product into the market, hence why it has taken us much longer than originally planned to release the first version of Digitex. Stay tuned for further updates as we move ever-closer to launch!

Latest News

Check Out the Latest Cryptocurrency Performance Update 33

Check Out the Latest Cryptocurrency Performance Update

Digitex Futures
• Dave Reiter
June 20, 2019

2019 has been an amazing year for the cryptocurrency universe. Even the most bullish crypto enthusiast could not have predicted the strength of this current bull market. Even though the vast majority of all digital currencies are extremely overbought, there’s no indication to suspect that the bull move is on the verge of rolling over. In fact, many cryptocurrencies actually appear to be gaining momentum. Why have the first six months of 2019 turned out to be so bullish for digital currencies? More importantly, how much longer will this bull run continue? Let’s examine the data. Continue reading

June 20, 2019
Digitex Futures

Check Out the Latest Cryptocurrency Performance Update

Dave Reiter
Check Out the Latest Cryptocurrency Performance Update 34

2019 has been an amazing year for the cryptocurrency universe. Even the most bullish crypto enthusiast could not have predicted the strength of this current bull market. Even though the vast majority of all digital currencies are extremely overbought, there’s no indication to suspect that the bull move is on the verge of rolling over. In fact, many cryptocurrencies actually appear to be gaining momentum. Why have the first six months of 2019 turned out to be so bullish for digital currencies? More importantly, how much longer will this bull run continue? Let’s examine the data. Continue reading

Latest News

Latest News