Economy
Can AI Startups Predict Ethereum’s Price Rise? DeFi Trading Gets Smarter
Ethereum has emerged as the dominant platform for Decentralized Finance (DeFi). Unlike traditional finance controlled by central institutions, DeFi uses blockchain technology to create a peer-to-peer financial system.
Ethereum’s programmable capabilities allow developers to build innovative financial applications, such as lending platforms, decentralized exchanges (DEXs), and yield farming protocols.
This has promoted the growth of DeFi, with the total value locked (TVL) in DeFi applications reaching record highs in recent years.
The year 2024 is shaping up to be a pivotal year for Ethereum. Experts predict a huge rise in Ethereum’s network activity and revenue, potentially doubling to $5 billion.
This bullish sentiment is further bolstered by the highly anticipated EIP-4844 upgrade, which aims to drastically reduce transaction costs and make the network more accessible to mainstream users.
While Ethereum forms the technological foundation, a new wave of innovation is surging in the DeFi space – AI startups. These young companies are harnessing the power of artificial intelligence to develop solutions that can transform DeFi trading.
With Ethereum’s price and network poised for significant growth, can AI startups predict Ethereum’s price rise and contribute to a smarter DeFi trading industry? Read on to learn!
Ethereum’s Revenue Surge and EIP-4844
Ethereum’s future appears bright, with analysts at Bitwise Asset Management predicting a staggering doubling of its revenue to $5 billion in 2024. This impressive growth projection reflects the increasing adoption and usage of DeFi applications built on the Ethereum network.
As DeFi protocols continue to attract users, the fees generated from transactions on the Ethereum blockchain will naturally rise.
A significant catalyst for this growth is the upcoming EIP-4844 upgrade, expected to be implemented later in 2024. This much-anticipated upgrade aims to address one of Ethereum’s biggest challenges – high transaction fees (gas fees).
EIP-4844 introduces a new transaction type called “blob-carrying transactions,” which store less critical data off-chain, significantly reducing the cost of transactions on the Ethereum network.
According to estimates, they range from 5-10x cheaper to 40-100x cheaper depending on the rollup type, which is paving the way for wider user adoption and further DeFi innovation.
DeFi’s Obstacles
Despite its rapid growth, DeFi still faces hurdles that hinder mainstream adoption. One of the biggest roadblocks is the issue of high transaction fees. On the Ethereum network, gas fees can fluctuate significantly depending on network congestion.
These fees can be a major deterrent for casual users and smaller transactions, making DeFi seem inaccessible and expensive.
Another challenge is the complexity of DeFi applications. Using DeFi platforms often requires a certain level of technical knowledge and familiarity with cryptocurrency concepts.
The user interfaces of many DeFi protocols can be intimidating for newcomers, hindering wider participation in the DeFi ecosystem.
The Position Of AI In DeFi Trading
The burgeoning field of AI startups is rapidly transforming the industry of DeFi trading. These innovative companies are developing sophisticated AI-powered solutions that address key challenges and open new possibilities for participants in the DeFi ecosystem.
Price Prediction Models
One of the most intriguing applications of AI in DeFi is the development of price-prediction models. These models leverage machine learning algorithms to analyze vast amounts of historical market data, including price movements, trading volumes, and on-chain activity.
AI models attempt to forecast future price movements for assets like Ethereum by identifying patterns and trends within this data.
While not foolproof, AI-powered price predictions can be a valuable tool for DeFi traders by providing insights and potentially mitigating risk.
For instance, a price prediction model might indicate a potential surge in Ethereum’s price, prompting a trader to buy before the price increase occurs.
Automated Trading Strategies
Human emotions can often cloud judgment and lead to irrational trading decisions. AI-powered automated trading strategies aim to address this by removing human bias from the equation.
These strategies are pre-programmed sets of rules that guide trading activities based on specific market conditions.
For example, an automated trading strategy could be configured to buy Ethereum if the price falls below a certain threshold or sell it if it reaches a pre-defined profit target.
This approach allows traders to automate repetitive tasks and potentially improve their trading performance by adhering to a disciplined strategy.
Sentiment Analysis
Social media and news outlets are a constant stream of information that can influence market sentiment. AI startups are developing tools that utilize sentiment analysis to gauge the overall market mood towards Ethereum and other cryptocurrencies.
These tools analyze text data from social media posts, news articles, and online forums to identify positive, negative, or neutral sentiment toward Ethereum.
By understanding the prevailing market sentiment, traders can make more informed decisions about their DeFi investments.
The Impact On DeFi Trading
AI-powered trading offers a multitude of benefits for DeFi users, fundamentally transforming the trading experience. Firstly, AI automates repetitive tasks such as order execution and market monitoring, freeing up valuable time for users to focus on strategic analysis and portfolio management.
This increased efficiency allows traders to react more quickly to market opportunities and make informed decisions.
Secondly, AI-powered risk management tools can help users mitigate risk by automatically implementing stop-loss orders and other safeguards. This data-driven approach helps to remove emotional biases from trading decisions, potentially leading to more disciplined and profitable outcomes.
Finally, AI has the potential to democratize DeFi trading by making it more accessible to new users. User-friendly interfaces and automated strategies can simplify the complexities of DeFi, attracting those with less technical knowledge and fostering wider participation in the DeFi ecosystem.
Can AI Predict Ethereum’s Price Rise?
AI-based price prediction models hold immense potential, but it’s important to acknowledge their limitations. The cryptocurrency market remains inherently volatile, susceptible to unforeseen events and external factors that can disrupt even the most sophisticated AI models.
Additionally, AI predictions themselves can influence market behavior, potentially creating a self-fulfilling prophecy.
Therefore, AI should be viewed as a valuable tool for informed decision-making, not a guaranteed crystal ball for predicting Ethereum’s future price movements.
Wrapping Up
As Ethereum’s network activity and revenue surge, AI startups emerge as a powerful force in DeFi trading. These companies are developing innovative solutions like bitcoin pro air that utilize AI to predict price movements, automate trading strategies, and analyze market sentiment.
This confluence of AI and DeFi holds immense promise for the future. AI can facilitate DeFi trading, reduce risks associated with emotional decision-making, and make the DeFi ecosystem more accessible to a broader range of users.
As AI technology continues to evolve and integrate further with DeFi, we can expect even more groundbreaking advancements that will reshape the landscape of decentralized finance.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
The oil market settled lower on Wednesday as investors weighed US economic growth and assessed the risk of supply disruptions from Venezuela and Russia.
Brent crude futures depleted by 14 cents or 0.2 per cent to close at $62.24 a barrel and the US West Texas Intermediate (WTI) crude futures declined by 3 cents or 0.05 per cent to $58.29 per barrel.
US data showed the world’s largest economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports.
The stronger-than-expected increase in gross domestic product last quarter, which was reported by the Commerce Department on Tuesday, showed gross domestic product (GDP) increased at a 4.3 per cent annualized rate last quarter, the fastest pace since the third quarter of 2023.
Still, Brent and WTI prices are on track to drop about 16 per cent and 18 per cent, respectively, this year, their steepest declines since 2020 when the COVID pandemic hit oil demand, as supply is expected to outpace demand next year.
On the supply side, disruptions to Venezuelan exports have been the most significant factor pushing up oil prices, while market analysts noted that Russian and Ukrainian attacks on each other’s energy infrastructure have also supported the market.
Recently, Ukraine launched a drone strike on a Russian shadow fleet vessel in the Mediterranean. The country has been attacking Russian oil refineries throughout 2024 and 2025, but has visibly widened its campaign in recent weeks, striking oil rigs in the Caspian Sea and claiming credit for sea-drone attacks on three tankers in the Black Sea.
Russian President Vladimir Putin, who ordered a full-scale invasion of Ukraine in February 2022, has threatened to sever Ukraine’s access to the Black Sea in response to the attacks on tankers, which he regards as piracy.
In Venezuela, loaded vessels are waiting for new directions from their owners after the US seized the supertanker Skipper earlier this month and targeted two additional vessels over the weekend.
Reuters reported that oil shipments from Kazakhstan via the Caspian Pipeline Consortium are set to drop by a third in December to the lowest since October 2024 after a Ukrainian drone attack damaged facilities at the main CPC export terminal.
The American Petroleum Institute (API) estimated that crude oil inventories in the US saw a build of 2.4 million barrels in the week ending December 19. Crude oil inventories shrank by 9.3 million barrels in the week prior. The US Energy Information Administration (EIA) is due to release official inventory data on Monday, later than usual due to the Christmas holiday.
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