Crypto Weekly: In the footsteps of Ethereum Crypto Weekly: In the footsteps of Ethereum Crypto Weekly: In the footsteps of Ethereum

Crypto Weekly: In the footsteps of Ethereum

Summary:  The competition for making a new and more scalable version of Ethereum is heating up, and both Cardano and Solana have surged this month. Ethereum is still by far the biggest within the NFT space, and both Visa, Budweiser, and NBA star Stephen Curry bought NFTs this week. Lastly, Bitcoin miners seem to have a more positive market sentiment now than three weeks ago.

Cardano and Solana follow in the footsteps of Ethereum

Considering the major cryptocurrencies, particularly Cardano and Solana have gained traction in August. From starting the month at $1.34, Cardano has experienced a positive market sentiment sending the cryptocurrency to $2.77. Solana was trading at $36.6 in the beginning of August and is now trading at $99.2. The two cryptocurrencies share the same key property, namely being made to handle decentralized applications with a substantial transaction output. The increasing prices are driven by investors looking at alternatives to Ethereum due to its scalability issues and steep transaction fees. As the Ethereum 2.0 upgrade will first happen somewhat next year, investors are afraid of Ethereum losing its significant first-mover advantages before the update has been launched. With fees averaging between $3 - $8, both developers and users on the network are not pleased, thus imaginably watching other cryptocurrencies to possibly let another network handle their decentralized activities.

Though, the question remaining unanswered is whether other cryptocurrencies over time can match Ethereum’s brand awareness, ecosystem, and more importantly, network effect. Cryptocurrencies wanting to create something similar to Ethereum will encounter the chicken or the egg paradox, as the users are not embracing the network until exchanges and developers have embraced it with e.g., decentralized finance protocols and NFT-marketplaces. However, these network shareholders will not use resources on the network until a substantial number of users are using it.

In terms of Cardano and Solana, Cardano has surged the past month on the news that the cryptocurrency will likely enable smart contracts this coming September, and Solana has surged on a growing institutional interest in the network. As of the time of writing, Cardano is the third - and Solana the eighth-largest cryptocurrency.

Visa, Budweiser, and Stephen Curry buy NFT’s

The market for non-fungible tokens (NFT) has experienced significant growth in the past months with the largest NFT marketplace OpenSea presently generating most transaction fees on Ethereum. On OpenSea, users have traded NFT’s worth $2.84bn the past 30 days. It seems like NFT’s have been the retail crypto-trend of the year comparable to when ICO’s were trending in the latest significant bull run in 2017. Last week two rather well-known companies and one individual joined the NFT-trend by buying their first NFT’s. At the beginning of last week, Visa bought a CryptoPunk, an NFT-based avatar, for $150,000 before sending out a press release stating: “We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce”. Some days after, Budweiser joined Visa by buying a Budweiser NFT made by a fan for around $25,000. This comes after Budweiser bought the Ethereum domain beer.eth for roughly $95,000 earlier this month. Lastly, this weekend NBA star Stephen Curry spend $180,000 for a Bored Ape NFT before sending a selfie into the official Bored Ape Yacht Club community chat.

Bitcoin mining equipment sees its futures rise in price

Multiple Bitcoin mining equipment manufacturers have tradable futures with physical delivery of mining equipment on a specific date. The profitability of mining Bitcoins is highly influenced by the electricity cost, the Bitcoin price, and the cost of equipment. The last one is the futures price, and the electricity cost is rather stable. Thus, the most influential, but most volatile factor for the profitability of mining the cryptocurrency is the Bitcoin price. The Bitcoin price directly affects the profitability, and therefore, the willingness of miners to buy additional equipment, meaning these futures serve as an indicator of how the market sentiment for miners is. The futures have surged more than the Bitcoin price for the past three weeks, effectively signaling miners have a more positive sentiment on the future price now than three weeks ago due to their increased willingness to buy equipment. However, the futures are still not priced as high as at the beginning of May before the Chinese crackdown on mining.
Source: Saxo Group
Source: Saxo Group
ADA vs. USD. Source: CoinMarketCap
SOL vs. USD. Source: CoinMarketCap

The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo Capital Markets HK Limited holds a Type 1 Regulated Activity (Dealing in securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged foreign exchange trading); Type 4 Regulated Activity (Advising on securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong

By clicking on certain links on this site, you are aware and agree to leave the website of Saxo Capital Markets, proceed on to the linked site managed by Saxo Group and where you will be subject to the terms of that linked site.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

Please note that the information on this site and any product and services we offer are not targeted at investors residing in the United States and Japan, and are not intended for distribution to, or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Please click here to view our full disclaimer.