PayPal May Support Crypto Trading, New York Ease Bitlicense Rules as Ethereum Network Fee Surge, is Chainlink the King of Oracles?
- PayPal and Venmo may support crypto trading
- New York’s stringent Bitlicense rules may be eased this year
- The spike in Ethereum fees points to increasing utility
- Chainlink has partnered with China’s Blockchain Services Network (BSN)
Crypto Trending News: Bitcoin, Ethereum, Ripple (XRP), and Chainlink
It has been a wild week in crypto.
However, prime news has to be the possibility of PayPal allowing its 325 million users to buy, sell, and trade cryptocurrencies. It won’t be PayPal alone, but also Venmo, its subsidiary, with over 52 million users moving over $30 billion of trading volumes in Q1 2020. There has been no official comment, but there is more to be gleaned from their actions.
PayPal has been searching for qualified cryptographers. These engineers will be tasked with “designing, developing and maintaining key crypto products and features targeted towards availability, performance, and scalability of PayPal services,” and be part of their Strategic Technology Enablement team.
In yet another exciting development, the New York Department of Financial Services (NYDFS), may ease restrictions of the Bitlicense.
The regulator, according to a Reuters report on June 24, aims to eliminate hurdles faced by crypto and blockchain firms seeking launch operations in the financial hub of the United States. Their proposal is open for public input until August 30, 2020.
When launching the Bitlicense in 2015, the Superintendent of Financial Services, Ben Lawsky, in a Reddit post, said the Bitlicense aims to “Protect consumers and root out illegal activity – without stifling beneficial innovation.”
The spike in Ethereum fees can be attributed to the growth of DeFi and the widespread use of Stablecoins.
This is the deduction from a Coinbase researcher, Max Bronstein, who tweeted a snapshot showing an uptick in Stablecoin interaction with the Ethereum network.
At the time of press, DeFi dApps hold a combined $1.6 billion worth of ETH, according to Defipulse streams.
Regardless, the spike in fees shows the increasing utility in Ethereum, a net positive for the platform, as well as the holders of Ether (ETH).
Ripple—the majority owner of XRP, is now part of the PayID. The service is fronted by various companies, including leading exchanges, like Huobi. Their goal is to make payment as “easy as sending mail.”
This week’s top performer is ChainLink. Their decentralized oracle systems will be integrated by China’s Blockchain Services Network (BSN).
For their mission objective, Chainlink has been identified by the World Economic Forum’s Technology pioneers.
Ethereum Price Analysis
Week-to-date, the Ethereum price is stable against the greenback, adding three percent. It has also gained against BTC by the same margin. Although there has been a reversal from June 23, 2020 highs, the trend is still bullish.
Noticeably, ETH is oscillating within a tight $20 range with caps at $250 to the upside and $230 as immediate support. However, with prices trending along the ascending channel of the last three months, candlestick arrangements suggest that buyers are in charge.
In the daily chart, there is a double bar bullish reversal pattern because of the uptick of prices on June 22, 2020, ostensibly matching those of June 11, 2020. This spike in price pushed ETH price above the middle BB—or the 20-day moving average, away from the main support line at $230, as buyers prepare for a possible rally above the immediate resistance level at $250.
Any break above $250 may spark a rally towards $280—Feb 2020 highs. On the reverse side, losses below $230 could see ETH prices collapse to $200.
Disclosure: This is not trading or investment advice, but the opinions of the author. Do your due diligence.