The Price of Bitcoin Lags Behind The Growth of Crypto ATMs, Which Surpassed 11,100 Installs

While the price of cryptocurrencies is taking its sweet time to reach their all-time highs, Bitcoin is holding strong above the important psychological support level of $10,000, currently above $11,300; the same can’t be said of the fundamentals.

The crypto industry continues to grow fast, and the latest metric to reflect this is the crypto ATMs.

For the first time, the number of crypto ATM installations has exceeded 11,100, representing a surge of almost 75% since the beginning of this year, as per Crypto ATM Radar.

In 2020, already more than 4,700 new bitcoin ATMs have been added, more than double of last year’s growth as only about 2200 new crypto ATMs were installed in 2019. The growth of these ATMs has seen almost a parabolic uptrend in 2020.

Bitcoin ATM Installations Growth
Source: CoinATMRadar

The biggest net change in crypto ATM numbers was recorded in September as 973 ATMs were installed this month, which has been growing since May. As a matter of fact, throughout 2020, more than 250 ATMs were installed every month, unlike ever before.

Genesis Coin is the dominant contributor to this growth as it manufactured 35.9% of these ATMs, followed by General Bytes, with its share just under 30%. Other manufacturers account for less than 10% of the number of cryptocurrency machines installed by manufacturer share.

As always, most of these crypto ATMs, 86.6%, are based in North America, with the US representing 78.6%. Europe is another continent with 11.3% of this share, while others account for less than 1%.

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Author: AnTy

Former Ripple CTO Jed McCaleb Ready to Sell Another 120 Million XRP ($28.14M)

Ever since hitting its all-time high of $3.84 in January 2018, XRP hasn’t been having a good time. As a matter of fact, it has been only on a decline.

There have been several pumps along its downward journey, but unlike other altcoins, XRP fails to show any momentum.

In 2020, the fourth largest digital asset managed to record 20% losses, but it is among the worst performers, joining the ranks with Bitcoin Cash (BCH) and Litecoin (LTC).

At the time of writing, XRP has been trading at $0.234, managing just $109 million in ‘real’ trading volume.

Amidst this, former Ripple CTO Jed McCaleb continues to dump his XRP on the market regularly. Just yesterday, another 120 million XRP were transferred to his wallet.

Although this doesn’t have much of an impact on the price of XRP, with not much happening with XRP’s price anyway, it just adds to the sell-side.

XRP sees some use!

Ripple’s prominent partner, SBI Holdings, however, continues to keep XRP relevant. In the latest news, SBI Group’s subsidiary, SBI esports, announced that it would be paying player salaries in crypto instead of fiat.

Esports players will drive their salaries in XRP as part of the sponsorship deal with Venture capital firm, VC Trade, to strengthen the company’s presence in the field.

With this deal, the goal is to “create and nurture a healthy market based on customer-centricity, improve prices, and expand liquidity.”

Increase those numbers…

According to Ripple, using sustainable architecture means XRP transactions could grow by more than 1000% by 2025.

Ripple also wrote about how “the digital asset XRP is a staggering 61,000x more energy-efficient than Bitcoin.”

The company has announced that it will achieve a net carbon zero target by 2030 for which it is working with XRP Ledger Foundation, Energy Web, and the Rocky Mountain Institute.

The company is also helping in launching and funding the EW Zero open-source to enable any blockchain to decarbonize through the purchase of renewable energy in local markets in partnership with Energy Web Foundation.

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Author: AnTy

ETH Locked on Aave & Uniswap Records a Sharp Rise

Decentralized Finance (DeFi) is back to recovering, currently at over $11 billion, reaching an all-time high of nearly $12 billion from last week, as per DeFi Pulse.

On this climb up, the amount of BTC on Ethereum is already at an all-time of 130.8k BTC. When it comes to Ether, at 8.2 million ETH, it still has some way to go before it hits a peak of 10.67 million ETH.

Interestingly, the third-largest DeFi project Aave with $1.63 billion in TVL, has added over 370 million ETH in just the last three days.

Since Friday, ETH locked in the lending protocol has jumped by more than 190% and a whopping 792% since the beginning of this month. Aave is the fifth largest ETH holder in the DeFi space.

The most amount of ETH is locked in Uniswap at 2.9 million, doubled in the past ten days. While Maker’s ETH balance stayed steady over 2 million throughout this month, both Compound and SushiSwap recorded a drastic drop.

Both are among the top five ETH holders, but the amount of Ether locked in Compound has been on a constant decline since the middle of this month, down 30%. Uniswap clone SushuSwap registered a whopping 72% fall in ETH deposit on its protocol, which is no surprise given its overall sliding value.

The price of Ether meanwhile, is also on the rise, up 3.24% trading at $364, a jump from last week’s low of $320.

These gains are in line with the rest of the crypto market, which is moving in tandem with Bitcoin, approaching $11,000. But while bitcoin’s options market is sending mixed messages, “front-end skew bid and 3-month largely flat,” Ethereum’s is much more bullish.

“This can point to hedging flow, especially given the rising trend of locking Bitcoin on the Ethereum network, as well as lend/borrow flow,” noted Dennis Vinoourov of Bequant.

At the same time, Ethereum bulls are also waiting for an update on the much-needed Proof of Stake (PoS) transition for which the Spadina testnet, dress rehearsal for the most important parts of the Eth 2.0, will go live this week.

However, the best thing happened with the Ethereum transaction fees, which have declined sharply since skyrocketing on Uniswap’s governance token UNI’s launch — another factor acting in support of the DeFi world.

The average cost of processing an Ethereum transaction has fallen to a 49-day lull, at $2.34 compared to early Sept. cost of $14.6, as per Bitinfocharts.

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Author: AnTy

Lightning Network’s Ready for the Next Step in its Evolution; Bitcoin Capacity Across Channels Hits Peak

The cumulative capacity across all channels on the layer 2 solution of bitcoin Lightning Network has hit an all-time high at 1,106 BTC, worth about $11.8 million at current bitcoin prices, as per 1ML.

The previous high was in early May 2019 at 1,099.7 BTC, worth about $6.5 million at that time.

Source: Bitcoin Visuals

The number of channels is also approaching the peak of 40k from mid-March 2019, as it currently hovers around 37,600. As for the number of nodes that open payment channels with each other funded with BTC, it is above 7,600.

Amidst this, Lightning Labs, which maintains the Lightning Network Daemon (LND) implementation of the Lightning Network, started supporting Wumbo with the release of Ind 0.11-beta — channels over the 0.1677 BTC limit originally imposed to discourage users from putting too much money into the early software.

This latest development means “the software has progressed to a point where advanced users, companies, and node operators can opt into larger channels.”

“Enabling Wumbo was our signal to the rest of the world that the Lightning Network is ready for the next step in its evolution,” states Lightning Labs.

This evolution involves a world where Lightning nodes are as “ubiquitous as the TCP/IP driver,” and every device from the mobile phone, laptop, desktop, router, and network switch can send/receive payments, authenticate themselves, and send end-to-end encrypted messages without a trusted third party.

Just last week, Lightning Labs also added accounting reports to the suite of tools for Ind to help users track sats. And with Wumbo and Faraday, it expects more and more companies to enable Lightning for its users.

Blockstream, which maintains the c-lightning implementation, also updated its tech stack in the form of channel management and routing tools.

The latest version 0.9.1 of c-lightning improves the likelihood of larger transactions to find a route between the sender and receiver while removing the bugs to make the process more efficient.

Additionally, with multifundchannel plugin, it is now possible to open multiple channels with a single transaction.

Also Read: Bitfinex Launches Wumbo Lightning Network Channels

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Author: AnTy

Is the DeFi Craze Killing Tezos? XTZ’s Main Selling Point “Staking” Is Losing Appeal

The 13th largest cryptocurrency by market cap of $2.8 billion jumped to its all-time high at $4.5 just last week. But this week, bitcoin’s fall had Tezos (XTZ) dropping nearly 25% to now trade at $3.89, a level first hit in late February 2020 only.

Many traders have been expecting XTZ to mimic LINK’s growth, which has been hitting new highs every other day and is up 585% YTD.

But trader and economist Alex Kruger feels the craze of yield farming is killing the main selling point of XTZ – staking.

The yield farming has made DeFi the hot spot of 2020 with APR sometimes as high as 1000% compared to less than 10% reward on XTZ staking. Also, DeFi tokens are seeing much higher gains, ‘astronomical’ percentage of increases actually.

Trader CL has shared similar opinions as he said, “There’s basically nothing to speculate on, and i think it trades at a pretty high speculation premium. If someone wants to be exposed to directional risk and have yields from holding it, theres many other better coins.”

Recently, Tezos celebrated its 2nd anniversary shortly after hitting 1,000,000 in blocks. The network has successfully completed its three upgrades governed by on-chain voting during this time. It is now on its way to introduce zk-snarks (sapling), validator, and governance extensions.

Tezos is the first supported and most traded staking blockchain on top exchanges. Crypto exchanges like Coinbase and Binance were the ones that initiated custodial staking services that have resulted in securing 25% of the entire Tezos network.

For a long time now, the percentage of Tezos circulating supply that is being staked is stuck at 80%.

Tezos Custodial Staking Trends
Source: Blockwatch Data

Custodial growth has slowed recently but still spiked 8% month over month with Binance seeing 42% of that growth in July.

Binance’s XTZ bakery is running over capacity, which isn’t anything new but is a chronic problem. Exchange’s capacity is only about 41 million XTZ much lower than Kraken’s more than 300 million XTZ capacity.

Meanwhile, non-custodial staking is seeing interest, which spreads across 120+ public staking services and 250+ private attacking operations. In the past three months, new delegators recorded the strongest growth adding 7,500 delegators with the lowest churn rate of 7%.

“The majority of new users are small investors. In fact, accounts between 1 and 1000 TEZ grew by 10% (+6,200) in July, suggesting that everybody who invested in Tezos also staked,” stated Alexander Eichhorn, founder of Blockwatch Data.

In the meantime, a growing number of entities are working on DeFi, and although Tezos’ learning curve is steeper, “a linear increase” is seen in deployed contracts. Because Tezos smart contracts are hard to upgrade, most developers deploy a new version.

Overall activity on Tezos blockchain is steadily growing, and gas usage has also reached its all-time high, which can be attributed to regular spending transactions and higher delegation activity.

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Author: AnTy

Chinese Bitcoin Mining Farms Hit Hard by Floods, Hash Rate Crashes Across Mining Pools

  • Bitcoin hash rate is reaching new all-time highs as the price surges above $12,000 to a 13-month high.

The hash rate of the largest network had a rocky start to 2020, seeing a huge drop following the March price crash and then due to May 11th halving. But now it has fully recovered and even eclipsed the previous levels.

This means the fundamentals are bullish, and network security is stronger than ever.

Bitcoin miner revenue, which has become more dependent on trading fees following the halving, has also been growing. Thanks to the average trading fee rising from $0.81 to $2.31 post halving, miner revenue surged 7% in July.

Starting at nearly $16 million, bitcoin miner revenue rose to $19.8 million in mid-February, as per Blockchain.com. But a month later, this revenue crashed to $6.9 million due to the price crash. But before the halving, it climbed to over $20 million only for the reward halving to push it back around $7 million.

Now, in August, so far, miner revenue is keeping in the range of $13.7 million and $10.39 million, the lowest point of this month hit today.

Source: Blockchain.com

But with the price of Bitcoin back on an uptrend, things might get better for miners.

Soaring BTC prices and cheap electricity has been what is leading the hash rate to new all-time highs currently.

The 14-day mining hash rate has already climbed to a new all-time high of 127 Eh/s. This means the next difficulty adjustment, estimated to be positive 8%, within a week’s time could set a new record as well.

However, what has been pushing the electricity cost down is now leading to the drop of hash rate among major Chinese bitcoin mining pools.

The monsoon season in China brings abundant rain leading to cheap electricity prices. In the Sichuan province, which is estimated to account for more than 50% of Bitcoin’s total computational power, heavy rainfall is now affecting the operations. Molly, the head of marketing at HashKey Hub noted,

“The heavy rainfall in Sichuan is continually getting worse, caused internet blackout in multiple places in Sichuan, might cause bitcoin hashrate drop temporarily since over 70% of mining farms in Sichuan.”

And the hash rate has dropped significantly as per data from BTC.com, between 10% to 20% as bitcoin mining farms in the region are forced to unplug.

Bitcoin Block Explorer - BTC com
Source: BTC.com

One of the largest bitcoin mining pools, Poolin, shared several videos of the mining farm located in the Sichuan region being hit hard by the floods.

The three-day hash rate has already dropped 3% to about 123 Rh/s, and the one-day average fell 10% to 110 Eh/s.

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Author: AnTy

Institutional Interest Picking Up for This DeFi Token which is on a ‘Tear’ This Year

The biggest gainer of 2020 Aave (LEND) has hit a new all-time high today at $0.58.

The 27th largest cryptocurrency by market cap of $736 million that has recorded 6,380% returns YTD is in the double-digits green today.

The protocol also has a record of $1.145 billion of total locked value, as per DeFi Pulse.

As IntoTheBlock notes, this decentralized lending protocol “has been on a tear this year.”

Besides price, LEND’s large transaction volume hit an-time high as well at $148 million last week, which “points to institutional interest picking up for Aave.”

large-trans-volume

Aave has already been a “DeFi VC darling” with the sale of $3M worth of LEND tokens to crypto funds Three Arrows Capital and Framework Ventures. About a week before that, it had secured $4.5 million investment from ParaFi.

The tremendous success of Aave, previously known as Eth.Lend, has been more than just speculative, as it grew to be a $1 billion market with innovations like flash loans, credit delegation, and stable rates.

Additionally, as we reported, just over the weekend, the decentralized money market protocol announced Aave V2, which will be venturing into debt, collateral, and margin trading.

Interestingly, it is also planning the tokenization of all kinds of assets, and collaboration with RealT is reportedly already in the works.

The latest version will also include transition to governance and transaction fee optimizations.

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Author: AnTy

Bitcoin Working on Being a Reserve Asset while S&P 500, Yield, & Inflation Takes the Wheel

The equities market is yet again just inches away from its all-time high. Yesterday, the ATH from February was briefly broken only for the S&P 500 to retrace a bit, currently sitting at 3,382. Another small leg higher today, and it will breach the new ATH at 3,387.89.

It only took 175 days for the index to go from peak to bottom to the peak again. However, only a handful of companies are pushing the overall index higher; energy companies are nursing losses of more than 20%.

Thanks to the Federal Reserve stimulus and frenetic buying by buyers, it took less than six months for the S&P 500 to fully recover, unlike the previous 12 cycles when the stocks took an average of four years to recover from the drop of at least 20%.

“It’s really a policy-driven market at this point,” said Jon Adams, senior investment strategist at BMO Global Asset Management.

Loss of Appetite for Assets not offering Income

Despite the ongoing policies, much like stocks, US Treasury yields rose, going to a five-week high as new debt issuance this week drives prices lower and yields higher. Analyst Mati Greenspan wrote in his daily newsletter Quantum Economics,

“The U.S. junk bond market has been on fire lately, setting a new record for the month of August by generating more than $30 billion in trading volume in only seven business days,”

“The amount of big money chasing small money at high-risk is simply breathtaking.”

The anticipation for the bond yields to head higher is weakening the appetite for assets that don’t offer income.

As seen in gold, the precious metal had its worst plunge since 2013 to as low as $1,866. Although it rebounded sharply from yesterday’s fall, it is still trading at $1,932, down 7.3% from its ATH.

Inflation is coming, Much quicker than anticipated

Government policies are also not good in the long term. Already, US consumer prices are rising; in July, they soared more than expected, especially in auto and apparel costs.

Inflation remained muted as the coronavirus suppressed demand, but the Consumer price index rose 0.6% from the previous month following a 0.6% gain in June.

US core inflation jump

On an annual basis, core inflation is at a four-month high of 1.6%, after measuring 1.2% in June.

Gasoline prices rose 5.6%, clothing 1.1%, used cars 2.3%, new vehicles 0.8%, and car insurance 9.3%, but the cost of grocery falling 1.1% from last month provided consumers some relief.

This increase in consumer prices reflects a rebound in demand for goods and services. The Fed meanwhile doesn’t see a threat of inflation and expects to hold interest rates near zero for the foreseeable future. Brett Ryan, senior U.S. economist at Deutsche Bank Securities Inc., said,

“That’s not a sustained increase in inflation,”

“The bigger picture here is that you’re going to have a persistent output gap and elevated unemployment, and that’s going to put downward pressure on wages.”

Bitcoin Recognized as a Reserve Asset

In these times, people are turning to bitcoin as an inflation hedge.

For now, bitcoin is stuck around $11,500, in red, but up over 200% since March low. In 2020, so far, BTC has recorded 56% returns while still being down 42.5% from its ATH of $20,000.

However, in this cycle, bitcoin is expected to be seen as a reserve by the “most open-minded sovereign state,” said on-chain analyst Willy Woo. As we saw with MicroStrategy and Paul Tudor Jones, it has already started to take shape. He said,

“The thing with BTC is it trades as a risk-on asset, getting bigger shakes this, maybe $1T marketcap that’s 5x from here. $50k-60k BTC will be a mark in the sand.”

In the broad crypto market, altcoins record even harder losses. However, a few coins are still making good gains such as Chainlink (8.62%), TomoChain (10.43%), Algorand (20.39%), WazirX (23%), Aragon network (34%), Waves (36%), HOT (64%), and Numeraire (159%).

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Author: AnTy

After Bitcoin Hash Rate, Difficulty Makes a New All-Time High Just 2 Months Post Halving

Today, Bitcoin’s difficulty has hit an all-time high. The difficulty re-adjustment has completed with a 9.89% increase this time, reaching a “sky-high” 17.35 trillion.

Since early November 2019, bitcoin difficulty has been on a constant increase until in late March after the bitcoin halving, the difficulty saw a downward adjustment of 15.7% from the previous ATH.

CoinWarz-BTC-Difficulty
Source: CoinWarz

In mid-June, bitcoin difficulty had a 14.5% jump, the biggest since January 2018. The last positive adjustment was just a speck on the chart, but today’s positive adjustment marks the full recovery of difficulty in just two months post-halving that reduced the rewards per block from 12.5 BTC to 6.25 BTC.

Bitcoin mining difficulty adjusts every 2016 blocks or roughly 14 days based on the hashing power competing for the rewards on the network.

The Bitcoin network made it most difficult to mine BTC after miners allocated more resources than ever to generate the digital asset.

Bitcoin hash rate made a new high last week, as per Blockchain.com. This jump in both the fundamentals came amidst China’s rainy season, which has made it cheaper to mine bitcoin by reducing the cost of electricity.

Given that China accounts for 65% of bitcoin’s mining power, it makes sense. Moreover, reportedly, the disruption in the supply chain due to coronavirus pandemic is also resolved.

Besides the rainy season in Sichuan, investment is flowing with the new generations of miners are also helping with the situation. While ASIC companies are rolling out new mining machines such as Bitmain’s Antminer S19 Pro and Whatsminer M30S++ by MicroBT, several miners have buying bulk of them.

Moreover, a regulatory filing unveiled that asset management giant Fidelity holds about 10.6% stake in Canada-based mining firm Hut 8.

As the hash rate and difficulty have surged, the hash ribbons have also given a buy signal as Bitcoin remains stuck in a range. However, today, BTC has jumped by 1% to above $9,300.

Besides these two important fundamentals of the network, the world’s leading cryptocurrency market cap of $171 billion saw other aspects making new highs as well.

The realized market cap of bitcoin that discount lost coins and values the supply when it was last moved has reached nearly $107 billion after being on a constant uptrend since April 2020, as per Coin Metrics.

During all this, accumulation is growing strong with a record number of addresses, over 3 million now holding more than 0.1 BTC and hodlers keeping steady with a record 62% of BTC not moved in the past year, not even during the March crash.

Overall, the bitcoin network is strong and seeing growth; now, all eyes are on the price.

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Author: AnTy

Cryptos Sliding Out of the Top Race, These Altcoins are Taking the Place of Top Cryptos

The stock market is flying.

Today, Nasdaq Composite is on pace for another all-time high after setting a new peak yesterday, led by major tech shares such as Microsoft and Apple.

While the S&P 500 is flatline and the Dow dropped 0.7%, tech-heavy Nasdaq gained 0.6%.

But it’s not only the stocks that are surging, but digital assets are also on a tear too, many tokens are gaining 50%-1,000% since the lows in March.

It’s those tokens that are issued by companies that are “beginning to achieve real product market fit,” said Jeff Dorman, Chief Investment Officer at Los Angeles-based money manager Arca.

If we take a look at the top cryptos like Bitcoin, Ethereum, and XRP, it is hard to see, but the crypto market is seeing its very own fireworks.

The Movers & Shakers

In 2020 so far, the DeFi project Aave has surged over 2,100% and Kyber Network 815%. Other known big winners are Bancor (490%), REN (468%), Loopring (342%), Zilliqa (328%), ERD (320%), DigiByte (298%), and Cardano (240%).

Now coming onto the coins that are slowly losing their place are:

XRP, the worst performer of 2020, has already fallen one place below to 4th position.

At the beginning of 2020, Litecoin was at 6th place, EOS 7th, Monero 10th, and Stellar 11th, which have now declined to 8th, 11th, 16th, and 17th place respectively.

Left: Crypto market as of January 4th, 2020, Right: Crypto market as of July 5th, 2020

But today, these positions are captured by other coins. At 6th place, the new crypto is Cardano, which is yet again surging today by 17% and, in anticipation of its Shelley mainnet launch in the coming months, has climbed over 400% since March lows.

IOHK USA, the company behind Cardano, also received a PPP loan between $350K and $1 million.

Chainlink, which continues to make new all-time highs, the latest one is $5.68 at the time of writing, which captured 12th spot, up from 20th rank on January 4th, 2020.

From the 27th spot, Crypto.com Coin has climbed to 10th place, which is up 300% YTD.

Altcoin Season or Extinction

The top cryptos might not be ready yet but still, Bitcoin ended the second quarter better than other traditional assets with 42% gains.

The lack of activity in Bitcoin is actually good for altcoins and its dominance has already been falling since May when it was near 70%.

The DeFi boom is also helping Ethereum, at least in terms of network activity. And it is possible, ETH won’t outperform until the DeFi cycle ends because “new money coming in will have missed the 10-50x returns, see that eth has still trended relatively flat, and buy eth instead as it’s a safer & simpler,” said analyst Ceteris Paribus.

According to trader Crypto Wolf, “ETH is building it’s momentum. We can notice a series of S/R flip, imo this is very bullish as we are building the bases for a parabolic scheme.”

Even XRP may soon see some movement.

However, when this altcoin movement stops, it would be the time for Bitcoin to get on a bull ride. Currently, its implied volatility is at its lowest since March 31, 2019, and realized volatility is at its lowest since April 1st, 2019. So, the leading cryptocurrency may get to see some volatility soon too.

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Author: AnTy