The cryptocurrency market has once again garnered all the attention this week, with the permission of the European Central Bank and the ‘lady who does not taper’, in the words of Christine Lagarde herself, president of the organization. From his entry into force as currency in El Salvador the crash that followed this “historic” event, through the IOTA update or the important Sunday ahead of Cardano, in addition to Solana’s historical milestone, this is what the week has given itself in the cryptocurrency market.
Tuesday’s declines caught a market that “I was expecting a healthy little pullback after a very positive 30 days”writes Alejandro Zala, Country Manager at Bitpanda. Bullish sentiment had increased after Labor Day weekend in the United States and when bitcoin was officially recognized as legal tender in El Salvador, but the celebration quickly died away with the 16% correction of BTC. Other major altcoins joined the sale with price drops ranging from 15-20%. In addition, many leveraged positions were liquidated, which further amplified the price movement. Despite the fall, “the market is still bullish in a longer time frame and in the next few days we will see if the market has hit the bottom in these ranges,” Zala says.
Regarding the implications of the entry into force in the Central American country, this means that bitcoin is now a payment currency equal to the US dollar in the country, which has been in circulation in El Salvador since 2001. Goods, services and even taxes can now be paid with crypto. Every economic agent or service must accept the use of bitcoin as a legal form of payment. A day before the law came into effect, El Salvador bought its first 400 BTC and acquired 150 more BTC after the recent drop in its price.
However, Salvadorans remain little inclined towards the adoption of ‘crypto’, given the justified resentments with the government, while their implementation problems seem to have been solved. Other experts distance themselves from the matter, since not that El Salvador has abandoned the US dollar as its currency of reference for bitcoin, emphasizes Jurrien Timmer, director of Fidelity Investments. In statements to ‘CNBC’, he explained that the nation maintains the US dollar, so the population can continue to use the US currency, since the adoption of the cryptocurrency is voluntary. However, local merchants in the country are required to accept and process transactions in the crypto currency.
Another key event has been the IOTA Hornet updateZala highlights. Bitpanda’s country manager explains that the token’s price soared more than 100% in the first 3 days of September to reach an intraday high of 1.72 euros, before falling back to around 1 euro. The price is now trying to find support around 1.25 euros, which is still 50% higher than at the end of August. The increased interest in the project comes after the protocol integrated the Hornet update and other enhancements that streamline and improve execution processes. The network is also developing the proposed update alongside a new wallet option known as Firefly.
This week has also been relevant for the SOL token of the Solana project. It has hit new all-time highs above $ 210, ranked sixth by market capitalization, overtaking ripple, and accumulates a staggering 8,600% growth in 2021. The cornerstone of the Solana project is clearly that it excels at the time. to solve some problems or barriers that the ether blockchain presents and that hinder its practical application to the real world, explains Ramiro Martínez-Pardo, CEO and founder of HeyTrade and the experts indicate that his blockchain will surpass that of Ethereum.
Finally, Zala explains that it will be a very important Sunday for Cardano. The altcoin space has only gone one way with ADA as one of the best performing assets. The update ‘Alonzo’ of Cardano and the arrival of smart contracts to the network are just around the corner, which is driving the price higher. According to Cardano, on Sunday, September 12, the main network update occurs to enable smart contracts. IOHK, the developers behind Cardano, officially submitted an upgrade proposal to the Cardano mainnet to trigger a hard fork combinatorial event. Once the proposal is submitted, any ADA token holder can vote to accept or reject it. As for ADA, the price of the native Cardano token reached its all-time high of € 2.6.