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Ethereum Demand at 3x Supply: Paxful CEO Roshan Dharia Calls ETH ‘A Great Opportunity for Traders’

Published April 8, 2024 7:26 PM
Shraddha Sharma
Published April 8, 2024 7:26 PM

Key Takeaways

  • Paxful CEO Roshan Dharia points out that demand for Ethereum is currently three times higher than its supply.
  • Paxful finds Ethereum is becoming a prime choice for traders.
  •  ETH has seen 15% more traders in the 30-day period, as per IntoTheBlock.

CCN spoke to Paxful CEO Roshan Dharia about the broader crypto market and Ethereum (ETH) in particular. According to the executive of the peer-to-peer crypto marketplace, ETH demand outstrips supply by threefold. We get his perspective on what should we expect next.

Ethereum Demand-Supply Dynamics

Paxful CEO emphasizes that cryptocurrencies have an important role to play in growing global economic access and individual agency. He revealed, “Our traders love Bitcoin and stablecoins as a store of value and medium of exchange,” 

The peer-to-peer exchange says that it recently added Ethereum on the back of consumer demand. With regard to the second largest crypto by market cap, Roshan Dharia said, “We’re seeing ETH demand at 3x the available supply, and higher in certain markets or payment methods, commanding a higher trade premium for fast and fair liquidity providers.”

After the Dencun upgrade, Ethereum has seen an upsurge in transactions with Layer 2 networks, adding to the activity on the back of reduced fees. According to IntoTheBlock , in the last 30 days up to April 8, ETH trading has seen a change.

Hodlers, who have held onto their Ethereum for over a year, have increased by 1.49%. However, Traders, who typically hold Ethereum for less than a month have surged by 15.36%, showing an uptick in short-term trading activity.

Analysis by SpotOnChain finds that recovery in Ethereum price has led to whale activity. 2 Whales reportedly moved Ethereum — totaling 11,657 ETH, which is worth about $40.28 million out of Binance.

Meanwhile, Dharia added, “We’re confident in the technology, community, and adoption of Ethereum, and see robust, continued growth in the asset.”

Shifting Crypto Trends

Paxful CEO also touched upon the shifting markets globally, influenced by post-Covid recovery efforts and fluctuating fiscal policies. He said, “Historically, economies of the Global South tend to ramp up digital asset adoption in the face of local financial pressures or controls, as well as during cryptocurrency bull runs.”

He added, “With Western institutional interest running parallel to global retail excitement, we’re seeing demand for cryptocurrency access and education booming on-trend with the market.”

The exchange executive suggested that the financial uncertainties and the economic impact of the pandemic have led to instability in global currencies. He explained that more people are turning to Bitcoin and other cryptocurrencies as a secure investment to preserve their savings and as a means of payment for goods and services. The CEO added that they are also using digital currencies for remittances and to expand their businesses in ways that local financial systems may not support.

According to Dharia, “Post-Covid fiscal and monetary pressures around the world have destabilized global currencies, leaving many looking for a safe, uncorrelated asset. “

Dharia emphasizes both a global and local perspective. “If that’s the macro, let’s look to the micro,” he says, drawing attention to how individual and regional behaviors on their platform reveal unique preferences and uses for digital currencies.

He points out the inclination towards USDT in South America, the adoption of Bitcoin in Africa, and the favored use of Ethereum in European cities such as Lisbon and Amsterdam. Dharia also highlights how Vietnamese users are purchasing international luxury goods at a discount with gift cards bought using crypto. He added that individuals in Africa and Southeast Asia are turning to peer-to-peer payments in the absence of traditional banking services.

Dharia added, “There’s so much to learn about economic activity from peer-to-peer financial transactions and the range of use cases are countless.”

Compliance and Security in Crypto

The CEO also highlights the importance of shared responsibility in security and compliance. He adds, “In broader strokes, we believe a compliance-first approach with a frictionless user experience is good for our traders, good for us, and good for both local and global economies.”

Dharia highlighted the role of fundamental security practices in emerging markets, stating, “On both a personal and national level, security in emerging markets stands to gain more from standardization than innovation. Simply said, individuals and businesses doing the basics right 100% of the time will keep more people and money safe than any one technology trend or draconian policy.”

Meanwhile, the executive emphasizes the importance of basic security practices for both individuals and businesses in the cryptocurrency space. He states, “For individuals, essentials like keeping one’s funds in safe custody, understanding the risks and steps of any financial transaction they make, and avoiding behavior that might lead to a hack or loss of funds.”

For businesses, he outlines several key responsibilities: “verifying identity and good behavior of all users of any financial product, setting win-win and transparent transaction terms, and designing products for compatibility with local nuances like language preference or infrastructure constraints (such as document availability or limited bandwidth).”

Focus on Two Main Things

In speaking with CCN, Dharia discusses two major trends shaping the crypto market. He said, “Firstly, the explosive interest in Bitcoin among both Western institutions and the Global South, alongside the halving to slow Bitcoin minting, could have a profound effect on the asset.”

He added, “Secondly, I’m watching DeFi across a few ecosystems, with a special interest in on-chain real-world assets.”

Dharia is particularly interested in how traditional financial products are being transformed through blockchain technology, with features like smart contracts, which automate agreements and transactions, potentially leading to more efficient, lower-cost financial services.

He added, “As part of the “RWA” trend, I’m seeing traditional financial products being modernized with composability, smart-contract automation, and lower fees. At the same time, you can find previously niche or inaccessible investment opportunities finding new audiences on-chain. We’re just at the beginning, and I think this is one area where blockchain stands to make the biggest impact.”

Dharia underlines a commitment to the technology while being cautious in the ongoing bull run. He added, “We’re long cryptocurrency for the technology, the asset utility, and the global vision. We love a good bull run, but we’re conscious no market stays up forever. That’s why our best advice is advice we give ourselves: build a business that can thrive in any market by offering a valuable solution people need and built on values that are designed to last.”

What is Next?

Dharia highlights the significant demand for Ethereum, signaling a robust opportunity for traders and marking Ethereum’s growing importance in the crypto market. He also emphasized the crucial role of cryptocurrencies in providing global economic access and enhancing individual agency. The executive also called for a strong focus on security and compliance, especially in emerging markets.

Looking forward, Dharia’s dual focus on Bitcoin and DeFi suggests a crypto market at the cusp of growth and new integrations.


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