Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

In Monday’s crypto carnage, the market provided a hefty discount that people have been calling out for some time now, with the digital assets rallying hard.

The overall cryptocurrency market lost $240 billion, but since then, it has gained some $86 billion back as the prices of cryptocurrencies make a recovery.

While Bitcoin went under the $50,000 level, Ethereum went under $1,550. But what has been interesting and for some devastating, the price of Ether went to $700 on Kraken.

The cryptocurrency exchange had some wild price action on Ether as after such a discounted opportunity, it went back right above $1,700 and caught up with other exchanges soon after.

This hasn’t even been a one-time thing as popular crypto personality, CryptoCobain, tweeted, “People trading on Kraken are masochistic. Once per month they get completely fucked by the matching engine.”

While for leveraged traders, it was a disaster, this also turned out to be a perfect opportunity for spot buyers.

“Unbelievable, my fishing ETH orders below $1.2k have been filled on Kraken,” tweeted one trader, who is extremely bullish on Ether and has long been calling out for a $10,000 price target for the second-largest cryptocurrency in this cycle.

On top of the deep red market, this much price volatility sent the gas prices on the network soaring. This made trading on-chain nearly impossible, let alone allowing traders to front-run.

Exchanges were already struggling with too much activity, with Kraken reporting, “Due to heavy traffic you might experience some connectivity issues. We are working to resolve the issue as soon as possible.”

Then, this congestion due to demand spikes on the Ethereum network led to delays with ETH and ERC20 token withdrawals.

Besides Bitstamp, Binance, as usual, felt the heat and suspended withdrawals.

“Binance has temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion. Rest assured funds are SAFU, and we apologize for any inconvenience caused,” informed the leading spot exchange.

For now, things are slowly coming back to normal, ETH is currently around $1,750, and Bitcoin is back above $53,500.

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Author: AnTy

What’s Happening on the Bitcoin Network Amidst The Red Hot Market?

Miners are reaping the fruits of rising BTC price and fees as blockchain activity continues to ramp up.

Bitcoin continues to smash new record highs, the latest one being $35k and nearly $36k. But this has just started and we have a long way to go.

This ATH came after the market had a 20% pullback on Monday providing a ‘buy the dip’ opportunity. “A large pullback of 20% – 30% should be expected, even in a bull market,” noted Arcane Research.

And this drop has been the result of sky-high funding rates and of course an overly confident market that led to $1.2b worth of longs getting liquidated in the BTC futures market — by far the largest daily liquidation since BTC started moving a few months ago.

After normalizing, these funding rates have started rising back up already.

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What’s just as interesting is the activity the largest crypto network has been seeing.

This price action has actually been on the back of the strong volume. Leading spot exchanges crushed all the previous records by having three days with over $10 billion in volume.

“$80+ billion in trading volume in the last 24 hrs on Binance. ATH x 2!” resulting in scaling issues, noted the CEO of leading spot exchange, Changpeng Zhao.

In terms of blockchain activity, Bitcoin active addresses grew by 9.3% week-over-week to start 2021, averaging over 1.1 million per day. These addresses are actually near all-time highs.

On January 3rd, the 7-day average reached 1.15 million, just shy of the all-time high of 1.18 million set in December 2017. The number of hourly active addresses (24h MA) actually just hit a new ATH.

Network security continues to look strong as well with the hash rate growing by 11.7%, again reaching for a new all-time high.

Bitcoin miners are currently enjoying revenue of $33 million per day, as per data source Glassnode. This has been thanks to the rising BTC prices and the average Bitcoin fees that have yet again surged to $11, moving up since Dec. 13.

Between the last halving and October, the average daily revenue was at around $10 million. It has only been within 5 weeks in late 2017 that this number has been higher.

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Author: AnTy

Ethereum Exchange Reserves on a Sharp Decline While Locked ETH Continues its Uptrend

Activity on the second-largest network is thriving.

Since early this year, daily transactions on Ethereum have been growing, hitting an all-time high last month. Although it has come down some as DeFi mania cooled down, daily transactions are keeping to July-August level.

Ethereum fees have also gone back to normal levels as the DeFi rush came to an end, which in August sent average fees to $10 for the first time, bringing Ethereum’s scaling issues into glaring light.

With the upgrade coming up to keep the fees down for another potential growth spurt, it “would mean less demand for the token because people would need to buy fewer coins to do the same operations. From developers to end-users, it will largely reduce the buying pressure,” wrote analyst Mati Greenspan.

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Moreover, as per Glassnode, the popular stablecoin Tether transaction volume on Ethereum also saw a 20% spike over the past 30 days. It reached a new milestone of $600 billion.

“Tether’s important role in the digital asset ecosystem… If you were to add tether’s usage on other chains such as Tron, Omni, and Algorand, the headline figure would be higher still,” said Paolo Ardoino, CTO at Tether and its sister company crypto exchange Bitfinex.

Out of the total supply of $16 billion, USDT’s supply on Ethereum has also exceeded $10 billion, representing nearly 65% of the Tether token supply on a blockchain.

7.6% of ETH’s Total Supply Out of the Market

Amidst this growing activity, Ether’s amount on exchange wallets has been declining ever since May, as per Crypto Quant. Ethereum exchange reserves have fallen to 11.8 million ETH from the mid-May high of 14.14 million ETH.

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This trend coincides with the ETH that hasn’t been moved in over a year, which has reached 60%.

Additionally, 8.7 million of ETH are currently locked in the decentralized finance (DeFi) sector, as per DeFi Pulse.

“7.6% of ETH’s total supply is currently locked in the DeFi ecosystem. The amount of ETH locked in DeFi increased by a record high of 3.3M in September and has grown by 5.6M in 2020. That’s 2M more than the total supply of ETH has increased this year,” as per The TIE.

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The only factor lagging is Ether’s price, which is currently trading around $380, up only 188% YTD and still down 75.76% from its ATH.

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Author: AnTy

Bitcoin Mixers See Rapid Growth From the Darknet Markets: BitFury Crystal Blockchain Report

The latest crypto activity report, published by Crystal blockchain, suggests a significant surge in the use of bitcoin mixers on the darknet between the last quarter of 2019 and the first quarter of 2020. The rise is a whopping 294% which suggests the rapid adoption and use of mixing tools by these darknet entities.

The report also saw a similar trend for the US Dollar which increased from $3m in Q1 2019 to $67m in Q1 2020. The report read:

“The amount of bitcoin sent to mixers by darknet entities rose significantly this year — from 790 total bitcoin in Q1 2019 to 7,946 bitcoin in Q1 2020. The same growth was also observed in USD — an increase from $3m in Q1 2019 to $67m in Q1 2020. This indicates a rapid adoption of crypto mixing services by darknet entities.”

Some of the key findings of the report include:

BitFury Crystal Blockchain
Source: BitFury Crystal Blockchain

The amount of bitcoin (measured in BTC) transferred between darknet entities and other entity types declined in Q1 2020 compared to the same period one year ago; however, the value of the amount of bitcoin transferred (measured in USD) grew by 65%.

This is not just due to the increase in the USD value of bitcoin from 2019 to 2020. The amount of money being transferred by darknet entities is still growing, and they are continuing to use bitcoin as a medium of transport. The mass adoption of bitcoin, as well as its ease of use and popularity, is a contributing factor as well.

In Q1 2020, there was a rapid growth in the amount of Bitcoin sent from darknet entities to mixers. During that same period, the amount sent in Bitcoin to exchanges that required verification was reduced — indicating a reduction in the use of cryptocurrency exchanges for criminal and darknet activities in favor of more anonymous services like mixers.

The share of bitcoin sent from one darknet entity to another also grew in Q1 2020. It is possible that darknet users are trying to hide their bitcoin flow inside of the darknet, avoiding the detection of their activities. This also encourages darknet services to cooperate and grow their revenue internally.

The report concluded that even though the amount of bitcoin sent to darknet has decreased since 2017, the value of bitcoin in USD has increased significantly. Also, the amount of bitcoin being sent among darknet members have also seen a rise. While the use of privacy tools by these darknet entities was no secret, now with the help of many analytical tools and service providers, it is easier to track even the masked transactions.

Also Read: Twitter Hacker Managed to Scam Only 12 Bitcoin After Duping Major Accounts

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Author: James W

Ethereum is Close to Being Flipped on its Own Blockchain As the Total Value Stored Is Shifting

The Ethereum network has been seeing a lot of activity in 2020.

The price of Ether already seems to lead the altcoins rally, currently trading at $221, up over 3.8%. The digital asset is also recording 70% gains YTD, more than double the bitcoin’s gains.

Moreover, the open interest on Ether options on the leading options exchange Deribit is at a new all-time high.

The whales also continue to accumulate.

Ether whale addresses have hit a 10-month high with the cumulative holdings of the top 100 non-exchange wallets now owning more than 21.8 million Ether, worth about $4.5 billion.

“This is the largest collective balance held within the top 100 addresses since May, 2019,” reported Santiment.

As a matter of fact, in the past two days, these top whale addresses added an additional 145k Ether, worth over $30 million.

Recently, the network usage also hit a new high this week with the fees surging to $0.663 last week which now remains above $0.55. The last time the average Ethereum transaction fees were this high was on March 12 when the prices crashed and before that in March 2019.

Higher fees point to more sustainability, “allowing a blockchain to rely less on new coin issuance for security over time.” Moreover, this could lead to Ether’s net issuance to decline.

This uptick in network usage and fees has been recorded while ERC-20 tokens approach 50% of the total value stored on the Ethereum blockchain.

This transformation happened over the past two years which now has Ether “close to being flipped on its own blockchain.” The market capitalization of Ethereum-based assets is current at $18.7 billion compared to Ethereum’s $22 billion.

And this will depend on the growth of stablecoins versus the growth in the value of Ether, observed Ryan Watkins of Messari.

Ethereum is also increasingly used to transfer significant amounts of money and this year it is on track to settle more than $500 billion thanks to stablecoins. During the first quarter of 2020, fiat-backed digital currencies had record growth and most of the stablecoins are based on the Ethereum network.

Ethereum’s dominance in the decentralized finance (DeFi) space is pretty clear and strong, which is emerging as the store of value on the blockchain.

All of this increased usage of the Ethereum network is “a positive for the foreseeable future,” Watkins said.

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Author: AnTy

Bitcoin Delivery on Bakkt Remains Unaffected by an Unstable Market

  • After a disappointing activity in last quarter of 2019, 2020 records a significant increase
  • Bakkt consumer app to help loop in mainstream users – Paul Veradittakit, partner at Bakkt investor, Pantera Capital

The physical delivery of Bitcoin on ICE’s Bakkt is looking to be moving in the opposite direction of price.

This month, Bitcoin price went down as low as $3,850 on March 12th however, the physical delivery of Bitcoin had a record increase of 44%. As of March 20, nearly 300 BTC were delivered. However, the USD value of the Bitcoin delivery saw a decline.

“Physical BTC delivery on Bakkt increased 44% in March, although being relatively flat in USD. Despite the recent market instability, Bakkt seems relatively unaffected,” reported Arcane Research.

Unlike the last quarter of 2019, when the bitcoin physical delivery was extremely low at below 25 BTC, the first quarter of 2020 is seeing a much-heightened delivery, March more so.

Source: Arcane Research

Bakkt was launched in September last year as the first such platform to offer physical bitcoin delivery. Unlike the other cash-settled bitcoin futures, these products have been expected to bump up the market activity in bitcoins.

However, as we noted last year, the activity has been underwhelming, to say the least as in October, Bakkt delivered 15 bitcoins adding two more in the next month. But it has started to see a jump as users go for their bitcoins.

In December however, the company launched cash-settled bitcoin futures along with bitcoin options.

Bakkt Consumer App to Help Loop in Mainstream users

Elsewhere, Paul Veradittakit, a partner at Pantera Capital talked about Bakkt’s upcoming mobile app being a “critical step” to bolster the credibility of crypto assets as legitimate.

Recently, the platform closed a $300 million Series B led by Pantera Capital, ICE, Microsoft’s M12, BCG, and others.

In this app, a user can manage all of their digital assets while offering rewards programs and a checking account. This app is key because it shows why cryptocurrencies are useful, drives user engagement, and identifies new opportunities for both suppliers and merchants, said Veradittakit.

Bakkt’s consumer app that will be launched in the summer will bring “accessibility, understanding, and utility to digital assets.” This he said is a step forward in “helping loop in mainstream users to the digital space.”

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Author: AnTy

Bakkt Bitcoin Options Trading Slumps In Last 10 Days With Zero Activity

Trading activity in the Bakkt BTC option market seems to have been at a standstill in the past 10 days as no transactions have been recorded. The exchange’s option trading based on Bitcoin future prices dropped significantly despite a strong start in the first two weeks of 2020.

Bakkt’s business model was quite promising given the cutting edge as physical trade of Bitcoin for settlements within its ecosystem. This has however, yet to yield the speculated level of activity especially in trading Bitcoin futures and options. As it stands, around 63% of the transactions within this network are BTC backed.

Earlier in Jan. 2020, Bakkt’s trading volumes in futures and options were on an uptrend with the former hitting a high of $40.8 million during the first week. The BTC futures were more actively traded than the options and are currently at $20 million as of yesterday; Bitcoin Options traded on the other hand have been at the zero-mark for the past 10 days;

Bakkt’s 1,500% Spike in Physical Bitcoins Delivered

This BTC oriented exchange saw the number of physical coins delivered to them increase by over 1500% over the course of January. Some analysts attributed the spike in volume to Bitcoin’s speculative nature which in turn correlates with the amount of activity in crypto exchanges. The leading digital currency has been on an uptrend to hit the $9,000 mark; this may have contributed to Bakkt’s physical BTC spike.

In addition, interest on unsettled future contracts grew by 14% to stand at $6.17 million. The exchange plans to roll out an alternative to settle BTC transactions through cash; they hope to edge out peers like CME who already have this convenience within their ecosystem. Stakeholders are also optimistic that the Bakkt BTC derivative volumes will pick up as we approach the May 2020 halving.

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Author: Lujan Odera

JPMorgan Strategist: “High Anticipation” Among Institutional Investors for CME’s Bitcoin Options Launch

  • Strong activity registered in BTC futures before the options launch on Jan. 13
  • Bitcoin’s intrinsic value is still below BTC price, says JPMorgan’s strategist Nikolaos Panigirtzoglou

According to JPMorgan Chase, institutional interest in Bitcoin-related contract is building up and there is high anticipation for the upcoming launch of CME Group’s options on Jan. 13.

Intercontinental exchange’s Bakkt has already launched options last month but the volumes and open interest on them have been “rather small,” wrote JPMorgan’s strategists led by Nikolaos Panigirtzoglou in a note on Jan. 10.

Given CME’s dominance in trading Bitcoin futures on regulated exchanges, it is expected this new offering may change things.

In the past few days, “there has been a step increase in the activity of the underlying CME futures contract” as the open interest on CME futures contracts has increased 69% from year-end. The number of large open-interest holders has also grown.

“This unusually strong activity over the past few days likely ref lects the high anticipation among market participants of the option contract,” Panigirtzoglou wrote.

The introduction of bitcoin futures for the first time in December 2017 by CME itself led BTC price to top out at about $20,000. When ICE debuted its physically settled futures contracts, Bakkt in Sept. the prices fell that time too. Now, it’s to be seen how will the price react next week.

Currently, BTC/USD is trading at $8,165 with 24 hours gains of 2.27%, as per Coincodex.

But although Bitcoin’s intrinsic value has been rising, it is still below the market price. JPMorgan calculates the intrinsic value of BTC by treating the world’s leading cryptocurrency as a commodity and taking its marginal cost of production into account.

“The market price has declined by nearly 40% from its peak while the intrinsic value has risen by around 10%,” Panigirtzoglou wrote. But “the gap has not yet fully closed, suggesting some downside risk remains.”

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Author: AnTy

Twitter Activity Related To Bitcoin Surges After Surpassing $11,300

Twitter Activity Related To Bitcoin Surges After Surpassing $11,300
  • Twitter activity related to Bitcoin spikes due to the cryptocurrency positive performance
  • Bitcoin reached its highest price in more than a year

Twitter, one of the most popular social media platforms in the world, has registered the highest number of Bitcoin (BTC) mentions since February 2018. This shows that the sentiment in the space is again surging and the interest for Bitcoin is also growing.

Bitcoin Mentions on Twitter Expand

Twitter users seem to be excited about the future of the cryptocurrency space. According to The Tie, after Bitcoin hit $10,000 for the first time since March 6th 2018, the number of tweets related to Bitcoin surged.

As the crypto analytics firm explained, Bitcoin tweets on June 22nd rose to their highest levels in 489 days, which dates back to February 20, 2018.

Twitter can be used to measure the popularity of a specific topic, trend or, in this case, cryptocurrency. It is also possible to see that the interest on Twitter follows the price of the digital currency and how it behaves. During periods of lower volatility, the interest for Bitcoin in the market seemed to drop.

At the same time, it seems that the official announcement of the Libra cryptocurrency could have positively affected Bitcoin and the whole crypto market. Analysts and investors discussed whether the virtual currency is going to be having a positive or negative effect on the crypto market.

In addition to it, there are several analysts that consider that the digital currency could keep growing in the future. This could also help attract more individuals to the space. If the price of the cryptocurrency continues growing, the Twitter enthusiasm would follow.

A few days ago, Bitcoin surged above $10,000 and then it surpassed $11,300. This has generated a generalized enthusiasm about digital currencies and the future of the space.

At the time of writing this article, Bitcoin is being traded around $11,356 and it has a market capitalization of $201 billion, according to CoinMarketCap.

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Author: Carl T

Harmony Token (ONE) Surges by 800% Over 24-Hour Period Due to Binance IEO

Harmony Token (ONE) Surges by 800% Over 24-hour Period
  • Within just 4 hours of its launch, Binance’s new DEX platform witnessed more trade activity than what IDEX saw over a 24-hour period.
  • Harmony’s market capitalization since yesterday afternoon has exceeded that of Binance’s BNB token.

Harmony (ONE) — an altcoin that is part of Binance’s latest IEO offering— has seen its value surge by a whopping 800% since yesterday afternoon, thereby increasing the currency’s total market cap to around the $600 million mark.

At this point, it should also be highlighted that this digital asset is the first crypto offering to debut simultaneously on Binance’s regular native trading platform as well as its newly-launched decentralized exchange— Binance DEX.

In regards to this development, we should also mention that over the course of the past few weeks, Binance’s executive brass has been able to generate considerable buzz around the ONE token — primarily by promoting a new free giveaway campaign in relation to the coin.

More on the Matter

Harmony was a little known project before its partnership with Binance, however, since its launch, the token has been on a financial tear.

On the subject, a popular crypto analyst was quoted as saying:

“It’s up by 800%+ from (the) IEO. Wouldn’t recommend chasing this. I’ve been eyeing this for a while. This has very huge hype. But not gonna buy at this price. Will wait for dips in the coming weeks. If it moons hard, I don’t mind missing this. Plenty of other choices.”

  • Binance’s DEX platform witnessed more trade activity within a 4 hour time period than what IDEX — one of its closest rivals — saw in more than a day.
  • Since the beginning of May, Binance has been experiencing a pullback of sorts because of its recent $41 million hacking scandal.
  • Over the course of the past 2 weeks or so, Binance’s native token offering (the BNB Coin) has been experiencing a massive monetary surge — with the premier altcoin reaching a price point of $35 for the first time recently.
  • According to a research piece released by Binance a few days ago, the firm has revealed that the crypto market is currently experiencing a “changing trend” that is helping the global investor community view assets like BTC, BCH in a positive light once again.

Final Take

In closing out this piece, we need to point out that since the start of the year, more and more institutional investors have continued to enter this nascent market space. It now remains to be seen how the future of this industry plays out from here on end.

“}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12”:0}”>Latest Binance News and Crypto Exchange Updates

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Shiraz J