These DeFi Tokens Continue to Rule the Market while $12,000 Remains Elusive to Bitcoin

It was last weekend that the price of bitcoin surpassed $12,000 for the first time in a year, only to come crashing back down to $10,500 minutes after. A week after that and we haven’t achieved that level yet.

Sure, bitcoin futures contracts on CME hit $12,000 briefly this week, but on the spot market, we remain elusive of the level that is expected to take BTC back to June 2019 high $13,900.

For now, $12k might take some time as analyst Mati Greenspan said, “Personally, I think it would be nice if the bitcoin price would cool down a bit into a more sustainable rally, for example experiencing a bit of a retracement before blasting through $12,000 sometime next week.”

A similar opinion was voiced by Matt Maley, chief market strategist at Miller Tabak & Co, who says the best thing to happen right now for bitcoin is to go back down a bit and then “successfully test that support level and bounce off that. You get that kind of move, and it’s going to be very bullish.”

However, the 29% uptrend by bitcoin in the past 20 days has the mainstream media talking about bitcoin mania being back almost in full bloom.

The largest cryptocurrency is surging alongside gold that is hitting fresh highs and other risk-on assets such as stocks that are also approaching record highs.

According to investors, a collapse in real yield, return once inflation is taken into account, on government bonds is what is driving “everything rally.” Not to mention “QE addiction,” in which the Fed will need even greater stimulus to prevent the market from falling.

It’s DeFi Time!

While bitcoin action has been a bit subdued, altcoins took this opportunity to record some gains. Ether continues to make its way to $400 while Tezos is up 7% which trader Jonny Moe says “after nearly 6 months of consolidation (…) finally looks ready for more,”

Even Litecoin might get to see some movement as analyst Rekt Capital notes, “Litecoin is once again peaking past its multi-year downtrend. BTC and ETH have already confirmed new bull markets. A Weekly Close above the multi-year diagonal confirms a new bull market for LTC.”

However, the top performers of the market are none other than the same old DeFi tokens that have been rallying hard throughout 2020.

No surprise there, given that the DeFi space continues to be a hot sector as seen in the record $4.5 billion total value locked in it, as per DeFi Pulse.

Also, yield turning negative in the real world is not only driving the assets higher but also these DeFi projects, which offer interest ranging from 7% to 35%.

“So you can imagine in a ZIRP [zero interest-rate-policy] environment, people are pretty excited,” said Meltem Demirors of CoinShares. What the giant decentralized risk market, “seeing is people chasing liquidity,” she said.

Additionally, it might just be the perfect environment for the decentralized space to thrive.

Who’s the Winner?

It’s a no brainer either that the hottest coin of 2020 is back onto making new highs. LINK didn’t waste any time to fly just as bitcoin took a breather.

The 8th largest cryptocurrency by market cap of over $4 billion is up 22%, trading at a new high of $11.82. This ATH came after six green candles in a row on the 4-hour chart with sight at yet new high at over $12.

“Bubbles are mathematically impossible in this new paradigm. So are corrections and all else,” said trader Hsaka about the unstoppable rally of LINK.

This has been despite Zeus Capital trying its hardest to prove LINK a scam and crash it.

But LINK is not the only star performer, BAND, which is going to be listed on Coinbase Pro on Monday next week is currently up a whopping 40% trading at $11.19.

Other DeFi winners include Akropolis (31.79%), Melon Protocol (27.18%), Balancer (23.46%), Kava (23.40%), ThorChain (18.11%), and Aave (11.21%).

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Author: AnTy

Bitcoin Wrap Up: 4 Big Things that Happened This Week

This week started around $10,350 and recorded an increase of 13.5% to now trade around $11,500 while keeping the ‘real’ volume stable around $2 billion.

However, there were much more exciting things than the price that happened in the bitcoin market this week.

For starters, JPMorgan strategies revealed that while older investors go for gold, younger ones prefer bitcoin. Also, over the past five months, both gold and bitcoin ETFs saw strong inflows as old and young both see the case for an “alternative” currency.

Institutional Investors are Back

It’s not just the retail investors that all up in bitcoin’s business, institutional investors have also entered the market. After a long time, Bakkt finally made progress and set new records twice in a row that eclipsed the previous ATH.

“The trading activity on Bakkt has exploded after bitcoin crossed $10,000 again. Both open interest and volume saw new all-time highs last week,” noted Norwegian cryptocurrency analysis firm Arcane Research.

In the first half of July, trading volume on the ICE-backed exchange remained around $30 million which has since surged to $80 million in August. Open Interest on Bakkt contracts saw even more explosive growth of 575% from mid-July level.

Bakkt Bitcion Futures
Source: Arcane Research

Similarly, volume on CME has spiked from around $100 million to now over $650 million. OI on CME bitcoin contracts meanwhile is slowly making its way to $1 billion, with 120% jump from last month, as per Skew.

San Francisco-based crypto exchange Coinbase, which has been recording trading volume between $30 to $100 million up until July 27 the day bitcoin broke the key levels of $10,000 and $10,500, has now made its way to $275 million.

Explosive Q2 Reports

Square all but gobbled all the BTC mined in Q2 as it reported a revenue of $875 million from bitcoin, up 600% year over year, accounting for a big chunk of the company’s $1.92 billion in revenue.

What’s interesting is that much of this revenue is the Square burning the BTC for its customers as only a “small margin” is charged from the users on each sale. The company recorded $17 million gross profit, less than 3% of total gross profit, from trading bitcoin last quarter.

Another bullish Q2 report came from Genesis Lending, which saw $2.3 billion loans in the origination, hitting new all-time highs.

“BTC loans increased as a result of the flattened futures curve enticing traders to long basis by borrowing BTC, selling it spot while buying short-dated futures,” noted Jack Purdy of Messari.

With crypto getting more institutionalized, prime brokers like Genesis have a “pivotal” role to play by providing a full suite of products just like in the traditional financial world.

Bitcoin is the Choice

Wolfe Research wrote a technical analysis of the largest digital asset titled “Bitcoin — More than just a bit,” where it talks about bitcoin chart set-up looking “pretty darn good.” Not only is it above upward-sloping moving averages, but it also has “positive momentum readings across all periodicities.”

As per the research, the first reasonable target for BTC is $13,850 from June 2019 and is expected to make a new all-time high in this cycle.

As we reported, $1.2 billion publicly-traded company MicroStrategy also disclosed in its Q2 2020 earnings call that it is diversifying its cash holdings to include bitcoin. This movie has been made in the company’s search for yield, as it expects yields on government bonds to turn negative all over the world thanks to all the money printing by the central banks.

The Fed Tailwind

The biggest driver of all the bullishness in the markets will continue to push them higher as already, another fiscal stimulus is on the way, which would be a trend changer because “nobody is expecting it despite the negative headlines,” said economist and trader Alex Kruger.

Moreover, the US Federal Reserve is also expected to make a harder commitment to ramp up the inflation soon, until it hits at least 2%. Markets are already betting on higher inflation as seen in the falling dollar, surging gold prices, and people looking at bitcoin as an alternative currency.

Such a case would be “widely bullish” for alternative asset classes, said Ed Yardeni, head of Yardeni Research.

“This is the scenario bitcoiners have waited for,” said trader Scott Melker.

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Author: AnTy

Ethereum Classic Core Developer, ETC Labs, Onboards CipherTrace to Investigate 51% Attacks

Ethereum Classic’s lead development team, ETC Labs, is investigating the recent 51% hack after hiring Kobre & Kim, an investigations firm to lead its legal proceedings. The firm will also use blockchain analysis firm, CipherTrace services, who will work together with U.S. authorities to pursue criminal charges on the perpetrators of the $5.7 million hack.

In a press release this Friday, the core development and accelerator organization of the ETC blockchain stated they would also be working on better security systems after multiple 51% attacks in the past 20 months or so.

Terry Culver, the CEO of ETC Labs, rightly termed the hack as “manipulating a public blockchain to steal,” further stating there will be severe consequences.

“Together, we will cooperate with stakeholders and agencies in the United States and wherever else the investigation leads to analyze the transactions and to identify the responsible parties with the knowledge and motive to carry out these attacks,” Culver said.

“We are determined to protect the integrity of the ecosystem.”

The blockchain has been a victim of 51% attacks in the recent past – facing two successive attacks on July 31st and August 5, losing upwards of $5.5 million in a double spend. According to the statement, the second attempt was similar to the first as the hackers reorganized 4,236 blocks after probably buying hash power from Nicehash DaggerHashimoto, also used previously.

Hashing similar tones to Culver, CEO of ChipherTrace, Dave Jevans said,

“We are proud to help solve this pivotal case, which represents more than a major theft because it is an attack on the integrity of a major blockchain.”

Ethereum Classic has shown resilience in the past after facing 51% hashing power attacks. In January 2019, the blockchain suffered a reorganization attack but little changed on the market, as ETC only lost 6% following the attack. ETC currently trades at $6.84 on Coingecko charts, a sharp 17% fall from highs achieved on August 2, days before the second attack.

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Author: Lujan Odera

Bitcoin Gains Independence From the Traditional Markets to Move in Line with Gold

Ever since last month, the one-month correlation between Bitcoin and S&P 500 has been on a constant decline, going from an all-time high of 78.8% on July 8th to now just at 26%.

While the equities market is continuing on its upwards trend with a few retracements along the way, after trading sideways for close to three months, bitcoin started picking up momentum in late July.

In the past 20 days, BTC/USD has surged 29%, currently trading at $11,750. Up 60.60% in 2020, the world’s leading digital currency is still down 40% from ATH.

The correlation between the two asset classes first started rising in March during the coronavirus pandemic sell-off when everything from gold, oil, and the stock market crashed.

“Sure, it was loosely correlated for a while there, but by now, bitcoin and the crypto markets are once again able to claim independence from the traditional markets,” said analyst Mati Greenspan.

As per the 90-day Pearson correlation between bitcoin and the S&P 500 since 2011, we are once again below 0.2, which means there is no correlation on a day-to-day basis anymore.

“It should probably be noted that even the peak of 0.6 only represents a loose correlation. Many stocks have a very high correlation with each other, usually above 0.8, even if they’re in completely different industries, and many altcoins are similar,” he explained in his daily Quantum Economics email.

Time For a Change

In the current macro-environment of monetary stimulus, currency debasement, and bond markets in trouble with yields sinking to levels so incredibly low, investors and portfolio managers are “actively looking for other ways to achieve diversification.”

This search for an alternative asset is why precious metals have been surging like crazy. Gold has already hit a new all-time high, having topped $2,000, now close to hitting $2,100.

“The concept of TINA (there is no alternative) has been driving traders to stocks all year long, and I’m pretty certain it’s time for a change, especially when there is a perfectly viable alternative sitting in plain sight,” said Greenspan.

Source: @RaoulGMI

As such, the one-month correlation between gold and Bitcoin has been on the rise since March bottom at -42.8% to the current +68.9%.

This has bitcoin being digital gold and becoming a store of value narrative increasingly gaining traction, which “will continue to buoy the price of the benchmark crypto asset,” said Bloomberg in its recent report.

Besides increasing correlation, declining volatility relative to the bullion “indicates an enduring relationship for price advancement.” Bitcoin is at its lowest annual volatility levels compared to gold in about three years.

Moreover, unprecedented global central bank easing and Fed not even thinking about raising rates “should remain a tailwind for the quasi-currencies.”

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Author: AnTy

CoinDCX Becomes The First Indian Crypto Exchange To Launch Token Staking Services

Indian cryptocurrency exchange, CoinDCX, becomes the first in the country to launch simple staking services for its users. First reported on Coindesk, the staking service will launch with three tokens Tron (TRX), Harmony (ONE), and Qtum (QTUM).

Speaking on the latest developments, CoinDCX CEO, Sumit Gupta, confirmed the staking service would not carry fees or hidden charges. The Mumbai based digital asset exchange is built to promote retail staking with low minimum balances required to stake. A minimum of 100 ONE (~$1), one QTUM (~$3), and five TRX tokens (~$0.1) is required with an annual return of 8-10%, 6-10%, and 5-10% respectively.

Gupta further said the exchange would pool the staking deposits from customers in a bid to increase their staking rewards while simplifying the staking process. Additionally, CoinDCX will also measure the optimal reward system by offering staking rewards through their partner exchange, Binance, or directly on the blockchain.

The exchange has raised over $5 million in 2020 in a bid to expand its products and market base. In March, following the landmark Indian Supreme Court ruling against the crypto ban, CoinDCX raised a $3 million Series A funding round from BitMEX and Bain Capital. The exchange further extended its raise by $2.5 million, led by Coinbase Ventures and Polychain Capital, to increase the company’s market share and encourage crypto adoption in India.

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Author: Lujan Odera

YFI’s Andre Cronje isn’t Going Anywhere; ‘This Space Won’t Get Rid of Me’

Andre Cronje, the guy behind yEarn and the popular YFI, is not leaving the cryptocurrency space any time soon, at least, “until there is nothing left to build.”

“This space won’t get rid of me,” Cronje clarified on Twitter after his recent interview about quitting crashed the price of YFI about 22%.

On August 7th, YFI, the “valueless, zero supply token” surged to its all-time high of almost $5,300, only to fall to $3,755 today after Cronje’s interview with a crypto publication where he talked about being “close to rage quitting again,” because he is “so sick and tired of this space.”

But since then, the price has rebounded 23%, as per CoinGecko.

Cronje took to Twitter today to thank the community for their “amazing responses” and that one shouldn’t talk to reporters when one is angry and just before one is going to sleep.

His project yEarn, previously called iEarn, on which the South African software developer spent a year building has been seeing immense success, with the total value locked in the protocol smashing to just over $345 million on July 26th, a staggering increase from just $9.3 million TVL just a week before that, as per DeFi Pulse.

He spent $42,467 on building the platform and double of this on audits and hosting to “give up these controls and costs.”

Its token YFI, which handed all the reins to the community, has been growing like crazy. For the time in the space, the team, Cronje, didn’t keep any of the 30,000 tokens, a cap that was decided through a proposal like every other change to be made in this decentralized system.

The token that has “0 financial value” is currently worth $4,465.

“Andre owning 0 YFI is complete and utter bullshit and every single holder especially the big ones should dip into their YFI book and donate to him,” said popular trader MoonOverlord.

The community has been working on a proposal to allocate some of the supply back to the founder. After the recent development, community members also made donations to Cronje, which he “will be returning, all of them.”

Cronje, who was in control of $40 million of customer funds locked in yVaults has also handed its governance rights to 6 of the 9 wallets of community shareholders that also controls YFI minting, as revealed by an independent crypto researcher Hasu.

In response to this, Cronje shared with the publication that he is being “attacked 24/7” when he is just building on his own without raising a single penny, unlike the multi-million dollar VC raised projects that can instantly steal funds or custodial services lying about being DeFi.

“I just don’t get why everyone is so adversarial and targeting my project so much,” he said.

Although it was all the “truth,” he said, it’s “a lot more sensationalist than the full picture.”

This hasn’t been the first time Cronje talked about quitting the space, back at the end of February, the “toxic community” of DeFi pushed him to take a similar decision.

“I learned my lesson back in March, I made the active decision to continue and work through whatever comes my way. I might hate it more often than not, but it’s not going to stop me. This space won’t get rid of me, until there is nothing left to build,” Cronje said today.

Also Read: yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

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Author: AnTy

Crypto Mom, Hester Peirce, Secures Second Term as SEC Commissioner Through 2025

The US Securities and Exchange (SEC) Commissioner Hester Peirce, aka “Crypto Mom,” has been confirmed for a second term that will last till June 5, 2025, by the US Senate in a voice vote.

The “Crypto Mom” nickname was bestowed upon her by the crypto community for her support of the cryptocurrency market. Just last month, during her testimony in the nomination hearing, she maintained that stance as she said crypto is “clearly going to be here to stay, and I would like us to set up a regulatory framework that works well for crypto.”

Pierce wants to work on SEC’s “attitude towards innovation,” which she said is highlighted in their consideration of crypto.

Earlier this year, she proposed a three-year safe harbor for blockchain companies that conduct token sales. Here, she talked about SEC oversight and adherence to disclosure standards while allowing the firms to develop a network and work toward decentralization before being subject to the Howey test.

She is also an advocate for the approval of a bitcoin ETF, which has been rejected numerous times on the round of price manipulation. In February, in a dissenting statement, Pierce objected to SEC’s approach to these products and that “it evinces a stubborn stodginess in the face of innovation.”

As we reported, with the potential of SEC Chairman Jay Clayton moving to the US Attorney’s office, Pierce is also speculated to be the next SEC Chair.

“On behalf of our 4,500 dedicated colleagues, we applaud their long-standing commitment to investors and look forward to their continued work to advance the SEC’s vital mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation,” Clayton and fellow commissioners congratulated Pierce and Caroline A. Crenshaw.

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Author: AnTy

yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

DeFi craze continues to get hotter as the system grows.

yEarn’s zero supply valueless token YFI climbed to a new high today at $5,300 and is currently trading at $4,700.

Today, it also announced integration with Aave with the launch of the Credit Delegation service.

Built on the Aave platform, “Credit Delegation supports smart contract to smart contract.” Delegate to a yVault and farm yield with the borrowing asset you prefer.”

Credit Delegation is a transaction where an Aave protocol depositor delegates a credit line to someone they trust; it can also be delegated to another contract that executes predefined functions.

“Credit Delegation might be a way to source liquidity from Aave Protocol across DeFi and into traditional finance without demanding borrower side collateral,” states Aave in its official announcement.

yVaults to have significant market implications

This is just the latest of what yEarn is offering to the DeFi users. Back in June, yEarn was also the one that further pushed the yield farming craze into high gear by rolling out automated yields for hot tokens like COMP, BAL, and CRV.

Now, with yVaults, Yearn is ready to welcome even more exciting DeFi projects into the mix. LINK is the first project the yEarn community has chosen to go with to provide liquidity with a delegated vault.

Chainlink’s LINK was chosen with nearly all (99.47%) of the votes. Currently, voting is going on to add Synthetix (SNX) to yVault as well.

How this works is; first, a liquidity provider (LP) deposits LINK into the vault and receives yLINK. In the next step, the LINK is deposited into Aave and activated to be used as collateral. In the third step, borrowing a stablecoin, which is then deposited into yVault to generate APY returns. Now, any stablecoin earned above the debt, that is, profits, are sold for LINK, which then increases the LINK in yVault.

If these yVaults gain steam, “they are going to have significant market implications,” said analyst Ceteris Paribus as he explains, “‘Fundamental’ value, P/E, etc. don’t matter as much if you have a significant amount of supply locked up by long-term holders passively auto-buying every day.”

This will also mean LINK would be bought in the open market, giving a constant daily dollar bid to LINK, which will continue to become more pronounced. Also, “LINK vault users are effectively long Link with compounding returns,” he said.

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Author: AnTy

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend.

Interestingly, despite the fact that the leading cryptocurrency is still trading 30% below its all-time high of $20,000, the dollar cost averaging from the peak of the market in December 2017 would have meant a return of 61.8% or 20.1% annually, noted Coin Metrics.

Dollar-cost averaging is an investment strategy in which an investor divides the total amount to be invested across the period to purchase the target asset to reduce the overall impact of volatility on the price of that asset and avoid putting all the investment amount at a poor time.

BTC Dollar Cost Averaging
Source: CoinMetrics

Meanwhile, as BTC reaches a 1-year high, the short-term holder MVRV, which assesses the behavior of short term investors by taking into account only those UTXOs younger than 155 days, remains bullish by keeping above 1.

“Coming from below 1 and reaching the current level (1.25), has previously marked the start of bull markets,” said Rafael Schultze-Kraft, CTO at Glassnode. And as long as MVRV stays above 1, one can remain bullish.

BTC Short Term Holder MVRV
Source: Glassnode

While one on one side, bitcoin’s price is aiming for $12,000 after closing above the important $10,500 level, on the other side, the realized price, which is realized cap divided by the current supply, has hit $6,000 for the first time.

This means, realized market cap continues to surge to all-time highs as well, hitting $111.2 billion, surging nearly 10% in 2020. Back in April, realized market cap fell to just under $101 billion, to early January 2020 levels.

Unlike market capitalization, where each bitcoin in circulation is multiplied by the current price, the realized cap has it multiplied by the price at the time it was moved last.

BTC Realized Price
Source: Glassnode

Not only is the current price is giving bullish signals, the realized BTC price is just another factor adding to all the bullishness.

It is not only the price of bitcoin that is enjoying an uptrend; the fundamentals of the world’s largest cryptocurrency are just as strong and continuing to grow.

Bitcoin user adoption is also pacing up as we have reported a 1-year active supply has already hit new ATH, and a 1-year active supply percentage is at 10-year lows. Hash rate and difficulty had been recovering for quite some time now, hovering around their all-time highs.

Another network fundamental, daily transactions, also recorded over $2.5 billion. The weekly transaction volume is almost $21.6 billion, with 2.2 million in transaction count, as per ByteTree.

Amidst this, the number of new addresses created is growing rapidly, reaching almost the peak of the 2017 bull market level of 1.29 million. Currently, sitting at June 2019 levels, on August 6th, 478,000 new BTC addresses were created.

Source: CryptoCompare & IntoTheBlock

Another bullish facet includes the number of bitcoin addresses holding at least $10 worth of the digital asset surging to a record high of 16.6 million, up 14% from previous a peak of 14.5 million in January 2018.

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Author: AnTy

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment from Paradigm, Parafi Capital, USV, Version One, Variant, A.Capital, and SV Angel.

This latest investment round came just over a year after Uniswap raised a seed round from Paradigm to advance its research and development.

The company is “thrilled” with this move. It will be using these funds to grow its team to build Uniswap V3, which will “dramatically increase the flexibility and capital efficiency of the protocol,” as per the official announcement.

Just two months back in May, a new version Uniswap V2 was released that allows for cheaper transactions, pricing oracles, increased resistance to attacks like “flash loans,” and more diversification by liquidity providers.

Uniswap protocol has already started hiring and is eager to showcase its design to the Ethereum community in the coming months.

“The Uniswap protocol is now one of the most widely-used platforms on Ethereum, with approximately $1.5B in volume in July 2020 alone. While this indicates initial protocol-market fit, we are even more excited for what comes next,” it said.

The volume has exploded in the past few months, from $6.2 million on June 20 to $120 million on July 27. On several days, this DEX exchange even beat up the popular centralized exchanges such as Gemini, Binance US, and Poloniex and is slowly moving closer to Coinbase and Kraken’s trading volume.

Last month, Uniswap also recorded 1.42 million web traffic, an increase of more than 57% from June’s 90,000. Even its users are growing rapidly, reaching 146.5k up from 24k at the beginning of January.

Total Uniswap Users Over Time
Source: Dune Analytics

Unlike a traditional exchange, on Uniswap protocol, trading prices are determined by a deterministic algorithm, an automated market maker, based on demand.

On Uniswap, which doesn’t list any tokens but virtually any ERC20 token can be traded; instead of setting the price, one wants to buy or sell, one “pools” an amount of ETH and the token to buy or sell. Pools contributors are rewards with fees for every swap, helping the market stay liquid.

Interestingly, it is one of the few protocols with no native governance token, which like many other DeFi platforms, might soon become a reality, given its growth and the explosion of interest in the protocol.

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Author: AnTy