Ethereum is the second most popular cryptocurrency according to Coingecko statistics, with a market capitalization of $197 billion.
As a consequence of the construction of the biggest protocols on top of the Ethereum network, it became popular with DeFi. This grabbed Visa’s curiosity, which subsequently announced its support for Ethereum as a payment settlement mechanism.
The move might set up another surge for Ethereum (ETH), which, as of this writing on January 7th, is up about 30% in the monthly time period.
At StarkWare 2023, Visa’s VP and Crypto Head Cuy Sheffield disclosed the company’s testing of big transactions utilising the Ethereum network. VisaNet, the company’s electronic payment network, is linked to SWIFT, also known as the Society of Worldwide Interbank Financial Telecommunication.
This makes the system incredibly efficient, with the network readily capable of processing around 1,500 to 2,000 transactions per second. However, its connection with SWIFT has also hampered the network’s ability to function at the frequency that the business desires.
Sheffield said at the event that the firm is testing how to accept payments in the form of stablecoins on the Ethereum network, using USDC, the fifth biggest cryptocurrency by market capitalization, being the stablecoin of choice.
This integration of blockchain technology with conventional banking instruments may support Visa’s aim of a cashless world.
As of the time of writing, the optimistic news about Ethereum has not been reflected on the market, with the coveted cryptocurrency continuing to ride the negative wave. With its strong connection with Bitcoin and the present suffering the top crypto is undergoing, we may anticipate the currency to perform poorly in the short to medium term.
The present bearishness Ethereum is displaying may lead to the bears challenging the current level around $1,593, a significant support that might lead to additional long-term pain if broken.
Even while the altcoin is seen by many as a smart investment for diversifying a cryptocurrency portfolio, the present slowing of Ethereum has made it more difficult for investors to remain positive about the altcoin’s long-term potential.
Consequently, investors and traders should be wary of the present state of ETH. Nonetheless, Visa’s continued use of the Ethereum network may draw attention to the cryptocurrency, further strengthening the token’s status as the market’s premier crypto asset.
If the $1,500 support holds, we may anticipate Visa’s stock to rise in the medium to long term as more positive factors emerge.
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