According to Coingecko data, Ethereum is the second most popular cryptocurrency with a market valuation of $197 billion. As a result, the Ethereum network became popular with DeFi, as the largest protocols were constructed on top of it. This sparked interest from the giant digital payments visa, which recently announced its support for ethereum as a payment settlement method.
The move could set up another rally for Ethereum (ETH) which, at the time of writing, is up nearly 30% in the monthly time frame, based on data today, January 7th.
Ethereum To Be The Backbone Of Visa Crypto Venture
At StarkWare 2023, Visa’s VP and Crypto Head Cuy Sheffield announced the company’s testing of large transactions using the Ethereum blockchain. VisaNet, the company’s electronic payment network, is tied to Society of Worldwide Interbank Financial Telecommunication which is more commonly known as SWIFT.
This makes the system extremely efficient, with the network easily able to handle over 1,500-2,000 transactions per second. However, its interconnection with Swift has also limited the capacity of the network to function at the frequency desired by the enterprise.
Image: Coinpedia
Sheffield stated in the case where the company is testing how to accept payments as stablecoins in the Ethereum network with the stablecoin of choice being USDC, the fifth most important crypto currency in terms of market capitalization.
Integrating blockchain technology with traditional financial tools can stimulate Visa's vision of a cash-free company.
At $1.6K, is that going to lead to higher highs?
At the time of writing, the new bullish for ethereum did not reflect into the market at all with the sought-after altcoin continuing to surf on the downtrend. With its strong correlation with bitcoin and the present pain of superior cryptography knows, we can expect the coin to perform more poorly in the short and medium term.
The current waterproofing ether watch can lead bears to test the current substrate at $1,593, a crucial substrate that could lead to more long-term pain in the event of rupture.
Even though the altcoin is considered by many to be a solid investment to diversify a cryptocurrency portfolio, the current slowdown of Ethereum has made it harder for investors to be optimistic of the long term prospect of the altcoin.
ETH total market cap at $199 billion on the daily chart | Chart: TradingView.com
In that spirit, investors and traders need to be wary of the current state of the EPF. However, the continued use of Visa's ethereum network could draw attention to the altcoin currency, further solidifying the token's position as the superior crypto asset in the market.
If support of $1,500 continues, we can expect an uptrend over the medium and long term as more visa-related developments take place.
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