Metaverse (ETP) continues its interesting rise for the 5th month in a row. Its rise has been without any hype or any significant presence in the media. This is quite incredible given that Metaverse is up by over 400% in the last 4 months, and looks set to make even more gains this month. But where are these gains coming from, in a market that has remained largely bearish, and with consistently low volumes?
The secret behind Metaverse’s price action is nothing special. It all tied to where it is traded. Metaverse (ETP) highest volumes come from Bitfinex and TopBTC. On these two exchanges, Metaverse is paired against the U.S dollar and the Chinese Yuan. This means that Metaverse price action is very much detached from that of bitcoin (BTC). The valuation of Metaverse is on the basis of its core fundamentals and not on the price swings of bitcoin (BTC). From its rise, investors can draw a number of inferences with regards to the crypto market in general.
The first conclusion that one can draw from the rise of Metaverse is that, without heavy ties to bitcoin, most altcoins would be more stable, and worth much more than their current valuations. That’s because Metaverse, a relatively small crypto has managed to remain strong and grow in a heavily bearish market. As such, if all coins were to be traded more against fiat currencies and less with Bitcoin (BTC), they would be worth way much than they are worth today. Most of them have the fundamentals to give them such growth, were they to be traded more heavily against fiat and not BTC. One coin that could take the Metaverse route faster than most other cryptos is stellar (XLM). That’s because with the launch of StellarX, stellar (XLM) can be easily traded for any county’s fiat and without fees. As this gains traction, the value of stellar (XLM) stands to rise significantly going into the future. Other cryptos that are also gaining more fiat pairings will follow suit.
The second conclusion that one can draw from the rise of Metaverse (ETP) is that China is still the market to watch when it comes to crypto. That’s because the largest percentages of gains for Metaverse are always against the Chinese Yuan. This is a pointer to the fact that the Chinese market is still much needed in crypto space. Actually, the current crypto bear-run started when China banned centralized exchanges earlier this year. This marked the beginning of the crypto winter that has lasted to date. Volumes have been consistently low all through the year. In essence, investors need to keep an eye China’s moves towards cryptos. The moment China softens its stance towards cryptocurrencies, it will usher in the biggest Bull Run ever. It could open up the doors for huge volumes that could take crypto all the way back to 2017 when demand was at its highest point. For Metaverse (ETP) investors, things would get even better, because an increase in market-wide volumes would drive up its volumes as well.