As the market gets set to embrace the realities of a new stimulus package, BTC, ETH, and UNI stand as the cryptocurrencies to watch for the week The cryptocurrency markets received new boosts over the weekend based on some news worth shifting and increasing the global adoption of cryptos over the next weeks. One such news is the passage of the $1.9 trillion COVID-19 stimulus package proposed by the US President, Joe Biden.
The hoard of digital currencies out there are expected to feel the impact of the money flow into the economy but Bitcoin (BTC), Ethereum (ETH), and decentralized finance protocol Uniswap (UNI) are worth paying attention to this week.
The dominance of Bitcoin as the world’s most valuable cryptocurrency remains unchanged over the past week as the coin gained 6.07% in that time frame to be exchanging hands at $51,071.27 at the time of writing according to CoinMarketCap.
Based on precedents, Bitcoin is likely to stand as the biggest beneficiary of the monetary stimulus the United States government just passed at the Congressional level. The $1.9 trillion stimulus package is expected to stir the printing of an equivalent amount of fiat currency which will be injected into the economy. This has an anti-effect on the value of the United States dollar as excess cash flow can fuel the rise of inflation and devaluation.
The record of inflation was reported back in 2020 when the first tranche of the stimulus package was signed into law. This unarguably served as the basis for which institutional investors began embracing the cryptocurrency, declaring it a safer and better store of value in hedging against the devaluation of the United States dollar.
The inflow of monetary stimulus issued to Americans into Bitcoin is also a possibility, all driving the bull case for the digital currency to increase its valuation in the coming weeks and months. The most evident response to this bullish scenario by the coin is trading above $50,000, a level many analysts believe is crucial to be sustained in driving the new run above its previous all-time high above $58,000.
This week may stir a surprising twist for the world’s biggest cryptocurrency.
Ethereum is currently in the bullish zone, trading at $1,741.03, a 13.83% growth in the past week, according to CoinMarketCap, giving investors a renewed hope in the network’s potentials. Despite this immediate gain, the Ethereum network is in dire need to resolve its skyrocketing transaction fees, a situation that has made the Ethereum Foundation announce the implementation of the EIP 1559 upgrade. With this upgrade, the network will be setting a base fee for everyone while also stirring a token burn to deflate the coin’s supply and corresponding value over time.
Pending when Ethereum 2.0 will finally be rolled out, the network will draw on the scalability offered by its integration with the Amazon Managed Blockchain while also reducing its transaction fees owing to the EIP 1559 upgrade.
Uniswap has proven to be a pervasive force in the decentralized finance ecosystem, becoming the very first DeFi platform whose native token will rise amongst the first 10 cryptocurrencies by market cap. Currently, UNI sits in the 8th position after a 39.06% gain in the past week.
For the strength the network has shown, it may look to push up further the ladder, beating its own set record as it aims at surpassing its all-time high record of $34.87 set today according to CoinMarketCap.