bridge21 rate update
The USD:MXN rate corrected from over 20:1 to 19.84:1 as of this writing. Cryptos with greater scalability and functionality are vastly…
The USD:MXN rate corrected from over 20:1 to 19.84:1 as of this writing. Cryptos with greater scalability and functionality are vastly outperforming Bitcoin.
Short-term USD:MXN forecast
USD:MXN rates have been down over the last two weeks. There’s reasonable support at 19:8:1 levels and strong support at 19.6:1 levels.
We feel higher rates are likely from here, but if we’re wrong, a drop below 19.6:1 is unlikely.
Cryptos with greater scalability and functionality are absolutely crushing Bitcoin’s performance over the last six months.
Over the last three months, Bitcoin recovered 29%, Ethereum rallied 66%, and Solana is up 432%.
Ethereum and Solana support decentralized finance (staking, minting NFT’s, yield farming etc.) while Bitcoin does not. The lion’s share of innovation in crypto is happening in these spaces, and this is reflected in the price performance of the underlying assets.
Ethereum is a victim of its own success, and is severely limited by gas fees and congestion. It’s extremely expensive to mint NFT’s or yield farm on the Ethereum network. The expense is so great it limits new participants to the wealthy who are able to take large positions.
Solana, which has greater scalability than Ethereum, is rapidly gaining popularity as a result. Its price appreciation reflects this fact.
Cardano’s price performance falls between Ethereum and Solana, but it has been slow to execute and release DEFI projects.
The greatest returns are likely to be found with tokens associated with the top projects on Ethereum and Solana during a bull market, and Cardano if they can execute on at least a few promising projects. These returns can be augmented by participating in DEFI yield farming and staking. It’s going to be hard to participate in these markets if you are based in the United States, as regulators are making it extremely difficult for developers to offer decentralized finance.
If the market heads higher, you can expect Ethereum and Solana to outperform Bitcoin, and the tokens associated with the most successful projects on these networks to do even better. If we see further corrections, Ethereum and Solana are likely to take a harder hit than Bitcoin.
Longer-term USD:MXN rate forecast
We think the exchange rate will be higher long term.
The content in this update is for informational purposes only. You should not construe any information or other material in this update as legal, tax, investment, financial, or other advice. While we took care to share correct information from reputable sources, bridge21 cannot guarantee the accuracy or timeliness of the information.