The Ethereum network was originally designed to provide users of blockchain space with a reliable, secure and scalable decentralized environment that could sustain a large amount of transactions passing through it. The network became a breakthrough with its use of advanced cryptography and the single standard of token on the ERC-20 basis. This revolutionary network paved the way for the establishment of a whole ecosystem of applications on its basis. Leveraging the relatively simple coding and versatile architecture of the Ethereum blockchain, developers started deploying their applications en masse, providing users with a vast variety of services and blockchain-based products. Everything one could imagine was being deployed on the Ethereum network, including games, exchanges, payment services, and even outright bizarre services like porn streaming and digital avatar collection. Combined, these services and applications ensured the inflow of a large amount of money into the Ethereum network and gave it the means to develop further.
The native ETH coin was one of the main currencies on the cryptocurrency market since the launch of the Ethereum network. Competing with Bitcoin, this coin became a staple of trading and eventually rose to become the second most expensive cryptocurrency and the second most coveted asset in blockchain space. Given the fact that the amount of ETH in circulation is limited, the price of the asset is actually directly tied to the law of supply and demand. Contrary to many other cryptocurrencies, which have no intrinsic value and are basing their prices purely on speculation and perceived worth, ETH has real applications within the Ethereum network, namely – the payment of gas fees.
Having to pay for transactions to pass through the network was a revolutionary development that the Ethereum network introduced, making users pay a commission for their actions in the form of gas. The higher the congestion on the network and the size of the transfer – the larger the size of the gas fee they had to pay. This made ETH a highly-prized asset that any user of the Ethereum network had to have if they wanted to leverage its capabilities in full. Soon, it became obvious that ETH is an excellent speculative and trading asset, one that could rival Bitcoin and virtually any other cryptocurrency for the title of a value-saving instrument.
How Much Is One Ethereum in Naira?
The exchange rate of ETH to NGN stood at 1,309,452 at the time of writing, marking a considerable drop in recent months, following the general decline of cryptocurrency exchange rates on the market. The given trend is relevant to the exchange rate of BTC to any other currency as well, since the long line of crypto exchange and project failures extends well into the beginning of 2022, which saw the bankruptcies of several major platforms.
A general trend of depreciation of digital assets is in full swing, since the market and its participants have been disenchanted with the slow progress of development and traction of major platforms. The resulting lack of liquidity injections has slashed cryptocurrency market capitalization to a new low, making it both a dreary and opportunistic time to engage in digital assets. With metaverse environments going down the drain and marking a complete trend for oblivion, many market participants are wondering whether there remains any space for development in the industry. The NFT sector is just as troubled in light of the failure of many collections to attract liquidity. And though many are blaming the developers for such failures, the real causes of such a gloomy state of affairs should be found in other areas.
A general environment of mistrust has replaced the seemingly global consensus of a status quo built on globalization and the dominance of a few. What was once a US Dollar dominated environment is now shifting towards multi-polarity and the diversification of currencies. This is leading to the impoverishment of millions of people in the formerly prosperous states of the world. The result is the lack of free liquidity that would otherwise have been diverted to such superstructure industries as that of cryptocurrencies. One has to admit that digital assets are more like trifles and entertainment in times of plenty, and now is no time for such an article of splurging.
Key Takeaways
Nigerians have many opportunities open to them to engage in the crypto market in its current state of decline. However, anyone willing to start taking advantage of the market should consider that the future may result in greater losses if the market of cryptocurrencies does not recover, leading to a total depreciation of assets added to a portfolio at present.
