According to Coingecko data, Ethereum is the second most popular cryptocurrency with a market value of $197 billion. As a result, the Ethereum network is becoming popular with DeFi, as the largest protocol is built on top of it. This has attracted the interest of digital payments giant Visa, which recently announced 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% on the monthly time frame, based on data today, January 7.
Ethereum Becomes Backbone of Visa Crypto Venture
At StarkWare 2023Visa VP and Head of Crypto Cuy Sheffield announced the company’s test of large transactions using the Ethereum blockchain. VisaNetthe company’s electronic payment network, tied to the Society of Worldwide Interbank Financial Telecommunication more commonly known as SWIFT.
This makes the system very efficient, with the network being easy to handle 1,500-2,000 transactions per second. However, the interconnectedness with SWIFT has also limited the network’s ability to operate at the frequency that companies want.
Image: Coinpedia
Sheffield said at the event that the company has been testing how to receive payments in the form of stablecoins on the Ethereum network with the preferred stablecoin being USDC, the fifth largest cryptocurrency in terms of market cap.
The integration of blockchain technology together with traditional financial tools can enhance Visa’s vision of a cashless society.
At $1.6K, Does It Lead to Highs?
At the time of writing, bullish news for Ethereum has yet to be seen in the market with the valued altcoin continuing to ride a bearish wave. With the high correlation with Bitcoin and the current pain the top crypto is experiencing, we can expect the coin to do worse in the short to medium term.
Ethereum’s current bearishness is showing signs of bearishness testing current support at $1,593, an important support that could cause long-term pain if broken.
Although altcoins are considered by many as a solid investment for various cryptocurrency portfolios, Ethereum’s recent decline has made it so harder for investors optimistic about the long-term prospects of altcoins.
ETH total market cap at $199 billion on the daily chart | Chart: TradingView.com
With that in mind, investors and traders should be careful with the current state of ETH. However, Visa’s continued use of the Ethereum network could bring the spotlight on altcoins, further cementing the token’s position as the top crypto asset on the market.
If the $1.5k support holds, we can expect a bullish rise in the medium to long term due to more developments from Visa.
Featured image of Livecoins