Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors

Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors

Solana has been one of the most talked-about projects in the crypto space this week, and it doesn’t appear to be slowing down. In the latest show of adoption, an institutional investment firm has opened a new Fund for the company’s SOL token.

Big Expansion for Osprey

According to an official press release shared on Thursday, Osprey Funds has launched an SOL-based Trust product for private placement. The press release confirmed that the new product would offer exposure to SOL for investors, making Osprey the first company to offer an investment product dedicated solely to the token.

The Osprey Solana Fund is open to all accredited investors, with a minimum subscription amount of $10,000. Osprey Funds pointed out that it will be looking to list the SOL fund on the OTCQX over-the-counter (OTC) market as soon as possible. The company has also waived its management fee – which stands at 2.5 percent – for all investors in the SOL fund until January 2023.

The SOL Fund is the fourth product to be launched by Osprey. The New York company already offering exposure to Bitcoin (BTC), Polkadot’s DOT token, and the ALGO token from blockchain project Algorand. BTC -3.37% Bitcoin / USD BTCUSD $ 44,911.09
-$1,513.50-3.37%
Volume 39.2 b Change -$1,513.50 Open $44,911.09 Circulating 18.81 m Market Cap 844.88 b
8 h Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors 9 h Bank of Mexico Governor says #Bitcoin More like Precious Metal than Legal Tender, But Sweden’s Sees Eventual “Collapse” 9 h National Australia Bank Observing Crypto As An ‘Emerging Issue’ After Being Accused of Refusing to Do Business with the Industry
DOT -2.32% Polkadot / USD DOTUSD $ 29.26
-$0.68-2.32%
Volume 3.68 b Change -$0.68 Open $29.26 Circulating 987.58 m Market Cap 28.9 b
8 h Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors 3 d Bitcoin (BTC) Finally Records Inflows After 8 Weeks, Solana (SOL) Remains the Favorite Altcoin 1 w Cardano Upgrades Testnet With Smart Contracts Capabilities, ADA Price Surges
ALGO -13.46% Algorand / USD ALGOUSD $ 2.03
-$0.27-13.46%
Volume 2.61 b Change -$0.27 Open $2.03 Circulating 5.23 b Market Cap 10.61 b
8 h Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors 10 h Algorand Foundation Assigns 150 Million ALGO to Support DeFi Innovation on the Blockchain 1 w 76.8% of SOL Supply is Locked to Secure the Network and Not Available for Sale in the Market

What a Week for Solana

This announcement is yet another show of support from major institutional players as SOL’s profile grows. The coin has been growing in adoption within developer’s circles for a while. Institutional investors are also taking note. According to last week’s Digital Asset Fund Flows Weekly issue from crypto investment firm CoinShares, institutional inflows to SOL-based products stood at $13.2 million last week. – a jump of 388 percent.

CoinShares added that the inflows to Solna-based products have doubled so fr year-to-date, with the asset absorbing $25 million in 2021 so far. This number could rise even higher, as Delta Exchange announced earlier this week that it had launched options trading for the coin. Investors can now purchase options calls on SOL with daily maturities, although weekly and monthly maturities are expected to be rolled out subsequently.

Besides, investors are still waiting for the Solana Investment Trust announced by Grayscale Investments back in June. Grayscale is the industry’s largest asset management firm, and support for Solana should increase the asset’s credibility among institutional investors even more.

Read Original/a>
Author: Jimmy Aki

Bitcoin Showing A “Good Risk/Reward Setup,” ETF to Play A “Large Part” in the Market Sentiments

Now that steam has been taken out of the “frenzied” rally, where low spot volumes added to the carnage, crypto prices are back on the move with the fear of Fed withdrawing liquidity dangling on the horizon.

After Tuesday’s flash crash, Bitcoin is now hovering around $45k and $46k and Ether between $3,400-$3,500.

The rest of the crypto market is also back to moving upwards, with Raydium (RAY), Fantom (FTM), Elrond (EGLD), Mina Protocol, Harmony (ONE), and Solana (SOL) leading the gains and sending the total market cap back again past $2.2 trillion.

As we reported, the funding reset after the pullback is healthy for the market and sets a base for further leg up.

After all, Standard Chartered analysts, as we reported, have given a target of $175,000 in the longer term and see Bitcoin to peak around $100k by the end of this year or early next year with the leading cryptocurrency sharing “characteristics with currencies, commodities, and equities.”

As for what caused this crash, which, like always, was exacerbated by the liquidations of leveraged traders, Galaxy Research stated that it was a big BTC seller who dumped on the over-the-counter (OTC) market that led to the largest forced futures liquidations since May 19, 2021.

It is also worth noting that low spot volumes added to the carnage. On Tuesday, BTC liquidations were 34% of total traded spot volume across major exchanges versus the 1y daily average of 12%, the largest since April 18 when liquidations were more than 90% of traded spot volume, which was a day of extreme volatility and an outlier in the dataset.

Meanwhile, ETH liquidations were 23% of total traded spot volume across major exchanges versus the 1y daily average of 8%.

Macro Factor On The Horizon

According to Asian trading firm QCP Capital, it was “strange behaviour for a bullish market.”

“The outsized move seems to have been triggered by regulatory fears, taking the steam out of the “frenzied” rally,” it said. The rally was frenzied in the sense that retail was leveraged all-in on the alts, pushing the funding rates on some of the major alts’ through the roof and deep disbelief that this rally could fail.

Macro factors, however, are not playing a part yet, with S&P still climbing higher, which could change towards Q4 when the FOMC starts to taper.

“Given how far asset prices have diverged greatly from the real economy, our fear is the potential speed of the mean reversion once the Fed withdraws liquidity.”

In the meantime, the US dollar index is trading at 92.48 while the euro gained 0.2% to trade at around $1.1837 as the European Central Bank kept its monetary policy unchanged on Thursday but slowed down the pace of net asset purchases.

Interest rates will remain at their current lowest levels until inflation reaches 2%, reiterated ECB. In August, Eurozone inflation rose to a decade high of 3%, while their own forecasts are currently projecting a spike in inflation this year to 1.9% due to temporary factors before falling to 1.5% and 1.4% in 2022 and 2023, respectively.

ETF to Play A Large Part in Sentiments

Regulator fears emerged in the US in the form of the SEC preparing to sue Coinbase for its lending product. However, with the expectations rising that we may get a Bitcoin ETF soon, industry experts see it happening by October or November, which may help prop Bitcoin prices.

Recently, SEC Chair Gary Gensler signaled openness to futures backed Bitcoin ETF; since then, seven firms have applied for the same.

But Michael Sonnenshein, CEO of Grayscale Investments, which is working on converting its close-ended Grayscale Bitcoin Trust into an ETF, said that “it would be shortsighted of the SEC to allow a futures-based product into the market before a spot product.”

According to Sonnenshein, both the products should be allowed into the markets at the same time, and it should be left to the investors to choose what they want. He further said that if a futures-based ETF comes before GBTC is allowed to convert to an ETF, it can harm investors who have exposure to GBTC inside mutual funds and retirement accounts.

“Going forward, it is clear that news around the ETF will continue to play a large part in the overall sentiment,” said QCP Capital.

Read Original/a>
Author: AnTy

Japan’s Financial Services Agency (FSA) Looks to Step Up Crypto Oversight: Report

Japan has always been seen as a shining light in the Asian market for crypto adoption, with favorable regulations and a pang of hunger for digital assets.

However, recent events have caused many in the industry to rethink this stance, especially with the regulator now looking towards imposing stricter rules against companies in the space.

Keeping Close Tabs of Crypto and DeFi

Earlier this week, Jiji Press – a local news source – confirmed that the country’s Financial Services Agency (FSA) had started looking into imposing stricter regulations on cryptocurrencies. The report explained that the regulator is looking to optimize investor protection, even if it means putting exchanges in a tougher operating position.

The news source explained that the FSA established a dedicated panel of financial experts to help the government gain better oversight of the crypto and decentralized finance (DeFi) spaces. Besides oversight, the agency will also monitor developments in cryptocurrencies and the Japanese government’s efforts to build a central bank digital currency (CBDC).

The FSA is looking to overhaul its current crypto regulations and implement new rules by the middle of 2022. With the new rules in place, the agency hopes to bring more stability to the crypto space in Japan while encouraging innovation and development.

The current crypto laws in Japan were instituted in 2019 following the hack of Bitpoint – one of the country’s top exchanges at the time. The rules implemented strict Anti-Money Laundering (AML) policies on local Bitcoin exchanges at the time, marking the first time the FSA will step in to regulate crypto.

Interestingly, the current move appears to have been inspired by another security breach. Last week, Liquid Global, another exchange based in the country, was a victim of a cyber attack that saw it lose $80 million in assets – almost three times the losses racked up in the Bitpoint hack. While the exchange is looking to remediate things, Jiji Press claims the FSA is using the incident to further its agenda.

The agency particularly believes that the Liquid hack means exchanges have still not implemented safe AML policies. So, it is time for things to change.

A Long Road to Get Here

Japan’s regulatory environment has been quite challenging for exchanges. Earlier this year, the FSA announced the planned adoption of the Travel Rule from the Financial Action Task Force. The Travel Rule primarily requires that crypto service providers and asset custodians share transaction data for recipients and senders. Despite being decried by the crypto industry bigwigs, the rule has slowly gained adoption across the world. As the FSA’s announcement explained, the agency is now looking to adopt the rule by April 2022.

The agency also asked the Japanese Virtual Currency Exchange Association (JVCEA) – a self-regulatory crypto organization – to prepare for the Travel Rule’s implementation soon. The JVCEA had largely been free to regulate the Japanese crypto space, but things are about to heat up significantly.

Last month, Reuters also reported that the Japanese Ministry of Finance is strengthening its efforts to regulate crypto on a global scale. The report explained that the ministry and several other regulatory bodies are now upscaling to impose stricter rules on crypto.

Besides the staff increase, Reuters also reported that Tokyo is open to engaging with global financial regulators to develop private crypto rules. With agencies like the G20 and G7 groups already calling for regulations for private fiat-pegged stablecoins, Japan is looking to take the lead.

With new regulations coming and the Travel Rule breathing down their necks, crypto companies in Japan are about to have a rough ride.

Read Original/a>
Author: Jimmy Aki

Vitalik Buterin Casts Doubt on Jack Dorsey & Mark Zuckerberg’s Influence on Crypto

Vitalik Buterin, the Russian-Canadian co-founder of Ethereum, has never been shy of making his opinions on crypto heard – no matter how unpopular they are.

Now, the developer is turning his focus on a seemingly growing wave; the entrance of social media platforms – and their founders – into crypto.

Vitalik Bites Back at Dorsey

In a recent interview with Bloomberg, Buterin shared doubts about the plans that Twitter CEO Jack Dorsey and Facebook founder Mark Zuckerberg have for the crypto space. Speaking with the news medium, Buterin was especially skeptical of Dorsey, who has stated that he plans to make Bitcoin more applicable to decentralized finance (DeFi).

Last month, Dorsey announced on Twitter that Square – his payment processor – plans to build a division that will focus on building DeFi infrastructure on the Bitcoin blockchain. In his tweet, Dorsey explained that the division’s objective will be to make it easier to create “non-custodial, permissionless, and decentralized financial services” on Bitcoin’s blockchain.

Since it doesn’t support smart contracts, the Bitcoin network is unable to compete with blockchains like Ethereum. Building DeFi on Bitcoin will need additional tools like sidechains and bridges to initiate smart contracts. But, Square hopes to break this barrier, further bringing Bitcoin to DeFi.

Buterin, whose work and company will be affected by this, is somewhat not a fan. As he explained to Bloomberg, the Bitcoin blockchain can work similarly to Ehereum for DeFi. But, it will have a much weaker trust model overall.

The Ethereum co-founder added that Ethereum already allows users to directly put Ether or an ERC token into smart contracts. To bring that into Bitcoin, Dorsey, and Square will have to create their dedicated system.

Dorsey has risen to be one of the harshest Ethereum critics. The billionaire has reiterated that he and Square will not invest in Ether, even though Twitter still just released 140 non-fungible tokens (NFTs) on Rarible – an Ethreum-based platform.

Dorsey further criticized Ethereum last week, claiming that the network is unable to “disrupt Big Tech” on its own. He did follow up by saying that his singular focus on Bitcoin isn’t necessarily a sign that he hates Ethereum; he just believes Bitcoin to have a stronger network and more potential for the type of disruption he envisions.

Facebook’s Trust Issues Still Haunts It

As for Zuckerberg, Buterin criticized the tech mogul and Facebook’s planned digital currency, Diem. Launched as “Libra” in June 2019, Diem works as a stablecoin whose value will be tied to a basket of fiat currencies. But, it has so far been met with significant pushback from regulators and policymakers.

Even after changing its name and making concessions, Diem is yet to see the light of day. As Buterin explained, there is a great deal of mistrust for Facebook, given the company’s many privacy indiscretions. So, building a currency is somewhat ill-timed at the moment.

Buterin further added that Facebook could build Diem on an existing blockchain. Of course, there’s little chance that Facebook will do so.

Read Original/a>
Author: Jimmy Aki

ETH Fees Renews its Uptrend and Back at May Levels, Making Ethereum Effectively Deflationary

So far, more than 50k ETH worth about $160 million has been burned, which is flipping Ethereum issuance to negative in more and more blocks.

The market has started to get back into action with Bitcoin above $47k, Ether $3,285, and the total market cap $2.1 trillion.

With this, the fees on the second-largest network have started to spike as well, currently, around $20, last seen on May 23rd, according to Blockchair. Average gas price has also jumped to 62.55 gwei, which increases further when using other applications like DeFi protocols, during high periods of activity, congestion, and if one needs their transactions to be processed fast.

image1

This surge in gas fees has resulted in more amount of ETH getting burned, leading to the flipping of Ethereum issuance to negative. About 100-150 gwei is the breakeven for the Ether issuance.

“Sustained base fee needed to fully offset issuance in Ethereum. Today: 167 gwei. After The Merge: 19 gwei. After capacity increase: even less,” noted yearn developer Banteg.

image2

So far, since August 5th, when the London upgrade with EIP-1559 was activated, more than 50k ETH worth roughly $160 million have been burned. The biggest contributor to this burn is the NFT marketplace OpenSea.

OpenSea continues to be the biggest gas guzzler on the Ethereum blockchain for some time now, followed by Axie Infinity (AXS), Tether (USDT), Uniswap V2 (UNI), and Uniswap V3, according to Etherscan.

The fees on the Ethereum network have actually been gradually increasing since early July, thanks to non-fungible tokens.

Before the greens made their re-entrance in the past month, NFTs have been attracting the mainstream masses to the world of cryptocurrency. Everyone has been hopping on this digital art train, from teenagers, celebrities, artists, and companies from different sectors.

OpenSea is also seeing its trading volume rising since the beginning of this month, recording nearly $800 million in August, up from $284.2 million in July and $125.2 million in the previous month. Last month, it raised a $100 million funding round led by A16z, valuing OpenSea at $1.5 billion.

However, in this NFT frenzy, it’s all about attention, with the likes of Pudgy Penguins and CyberKongz now at the forefront and the top collectible projects such as CryptoPunks and Meebits now seeing their sales drop by more than 70% in the last week.

While trading is declining, Christie’s is all set to auction Bored Ape NFTs along with CryptoPunks and Meebits NFTs next month, which can bring them back into the limelight. Rare NFTs are the ones that fetch millions of dollars, and the auction houses tend to sell the rarest ones.

Amidst this, this past weekend, the five-star hotel Ca’ di Dio announced that it is officially opening in Venice on August 27. Before that, through Monday, August 16, the parent company VRetreats is auctioning off a night’s stay, but consumers must bid on an NFT.

“We see using NFT for this auction as an advantage from a distribution point of view, not just from a marketing point of view,” said Angelo La Riccia, commercial director of VRetreats and VOIhotels.

“I’ve heard from colleagues in the hospitality industry that work at other brands who say they’re putting in a couple of euros to bid in the auction just to understand how that works,” La Riccia said. “Hoteliers have to think creatively as we come out of the crisis.”

Read Original/a>
Author: AnTy

Poly Network Declares the Hacker a “White Hat” After He Returns Almost All the Stolen $610 Mln

What remains to be recovered is the $235 million of funds that have been sent to a “shared multisig” account which requires the keys from both the Poly Network and the hacker to access and the $33 million USDT frozen by Tether.

Poly Network, a little-known project which is not connected to Ethereum sidechain protocol Polygon (MATIC), declared its hacker as a “white hat,” referring to ethical hackers who aim to expose vulnerability upon the return of most of the stolen $610 million funds.

The last $235 million has been sent to a “shared multisig” account which requires the keys from both the Poly Network and the hacker to access the funds, said Tom Robinson, chief scientist and co-founder of Elliptic, a crypto tracking firm.

According to the hacker’s message, they will “provide the final key when everyone is ready.”

Additionally, $33 million USDT is also yet to be returned as Tether froze them on the day of the attack. Poly Network said on Twitter,

“The repayment process has not yet been completed. To ensure the safe recovery of user assets, we hope to maintain communication with Mr. White Hat and convey accurate information to the public.”

The hacker claims to have been offered a $500k bounty to return the stolen assets by Poly Network and the promise of not being accountable for the incident.

While the hacker turned down the offer of a bounty, they did ask for donations from the general public as a reward for doing the right thing. The hacker’s donation account has so far received 1.475 ETH worth nearly $4,800.

Earlier this week, on Tuesday, in the biggest ever DeFi hack, the hacker attacked the cross-chain network and stole $610 million worth of crypto assets, including stablecoins from three different blockchains Ethereum, Binance Smart Chain, and Polygon.

Founded last year in August by Chinese entrepreneur Da Hongfei, the chief executive of another blockchain platform, NEO, the hack of Poly Network mainly affected the Chinese individuals.

Less than 24 hours after the hack, crypto security firm SlowMist said that it had identified the attacker’s email id, IP addresses, and device fingerprints, adding the hack was “likely to be a long-planned, organized and prepared attack.”

In a series of Q&As, which the hacker did by sending transactions to themselves with text embedded within them, they said the attack was “for fun” and that they just wanted to “expose the vulnerability” before others could exploit it. They also said the plan was “always” to return the funds.

But not everyone believes that, as Gurvais Grigg, CTO at blockchain forensics company Chainalysis and former FBI veteran, said, it was likely that white hat hackers may have returned the money due to difficulties of laundering it.

While the hacker has returned the funds, they may still be pursued by the authorities as “their activities have left numerous digital breadcrumbs on the blockchain for law enforcement to follow, aided by blockchain analytics tools,” said Robinson.

Read Original/a>
Author: AnTy

Ether’s ‘Bullish Self-Reinforcing Cycle’ Commences as Daily Transfers of ERC-721 Tokens Reaches ATH

Ever since falling to nearly $1,725 on July 20, Ether has been surging, climbing to almost $3,270 on Wednesday, a level last seen in May during the sell-off. 19 out of these last 22 days, ETH has printed green candles.

As of writing, ETH/USD is trading above $3,259, down about 26% from its all-time high three months back.

ETHBTC is also on an uptrend this month, currently around 0.07, with next resistances at 0.0735, 0.077, and the May high of 0.82. After this comes Jan. 29, 2018, a high of 0.1227 on Coinbase.

“A bullish self-reinforcing cycle seems to have developed in ETH,” stated digital assets traders, QCP Capital.

In the options market, “the frenzied buying of calls in both BTC and ETH across the curve has resulted in a short squeeze (in both spot and vols),” which is expected to be from “funds and large speculators making large topside bets, buying BTC strikes up to 80-100k, and ETH strikes up to 8-10k from as early as September 2021 out to June 2022.” BTC -0.16% Bitcoin / USD BTCUSD $ 45,501.45
-$72.80-0.16%
Volume 33.75 b Change -$72.80 Open $45,501.45 Circulating 18.78 m Market Cap 854.67 b
7 h Auto Insurer Metromile Adds $1 Million worth of Bitcoin to its Balance Sheet 7 h Coinbase’s Institutional Volume Surges 47% to Dwarf Retail in Q2 But Accounted for Less than 6% of Revenue 8 h Ethereum’s ‘Bullish Self-Reinforcing Cycle’ Commences as Daily Transfers of ERC-721 Tokens Reaches ATH

It further noted that the ETH spot rallied thanks to EIP-1559 and reignited interest from speculators, with NFTs leading the charge.

The trading volume in NFTs has been surpassing every other ETH transaction venue, including DeFi and Stablecoin flow, which has led to a greater burn rate on ETH, spurring further price appreciation, which in turn encourages more interest and speculation, creating a feedback loop.

This mania in NFTs and digital collectibles can be seen in daily transfers of ERC-721 tokens, the standard for Ethereum-based NFTs, which is near an ATH.

So far, in less than a week, 27,270 ETH worth $82.35 million has been burned ever since EIP-1559 went live as part of Ethereum’s London hard fork on August 5th.

With this new design of Ethereum’s transaction fee mechanism, where fees are composed of a “base fee” which is required for a transaction to be included in the block and burned and a “priority fee,” which is a voluntary tip, ETH’s net inflation rate has reduced.

Since the release of EIP-1559, the net ETH issuance per block has been between 1-2 ETH, and in some blocks, it has even turned negative.

While creating a better UX for transaction fees, EIP-1559 also creates a new dynamic for network congestion which leads to high gas prices and now post upgrade will result in burning a large amount of ETH, a positive for supply economics that will further help push up the prices.

This upside move in ETH and overall crypto moving higher has been seen as positive, but QCP Capital remains “wary of potential downside risks on the horizon,” as well. Last month they had called for a rally on the back of the EIP-1559 mainnet implementation and then a larger Q4 sell-off on the US Federal Reserve’s tapering.

Just today, Richmond Fed President Thomas Barkin said tapering could take a few months as the focus is not on the calendar but on more improvement in the job market, particularly further increase in employment to population ratio.

But QCP remains uncertain of how crypto prices would be impacted by macro forces given the idiosyncratic divergences between BTC and macro assets such as gold; their 1-year correlation is currently approaching 3-year lows.

Read Original/a>
Author: AnTy

Ether Officially Becomes ‘Deflationary’ as More ETH Burned than Issued; NFTs Continue to Feed the Frenzy

As of publication, more than a whopping 4,840 ETH worth about $13.4 million has been burned in just over 24 hours since the EIP-1559 activation.

Trading above $2,700, Ether is enjoying a sharp rebound in its price for the last 17 days.

On Thursday, the price of Ether rallied as far as $2,840 and hit resistance just above 0.073 against BTC. BTC 4.81% Bitcoin / USD BTCUSD $ 42,832.80
$2,060.264.81%
Volume 38.22 b Change $2,060.26 Open $42,832.80 Circulating 18.78 m Market Cap 804.33 b
8 h Binance Is Restricting Futures Trading for All HK Residents, Also Limiting New API Key Creation 9 h Cathie Wood’s Ark Investment Bets More on Both Bitcoin and Ethereum 10 h Merrill Lynch’s Former ETF Boss to be the Head of its Newly Created Crypto Assets Initiative

In USD terms, Ether is still about 36.5% away from its mid-May peak and about 17.7% down from 0.823 BTC high.

Amidst this price action, the U.S. furniture maker and retailer Ethan Allen Interiors announced that it is changing its stock ticker to “ETD” after 28 years to avoid confusion with the crypto asset Ether, both bearing the same ticker “ETH.”

Earlier this year, Ethan Allen’s stock prices soared as traders confused its ticker for the symbol for ether.

ETH Getting Burned

The latest rally in the price of Ether came in anticipation of the London hard fork, which was to activate EIP 1559. Now, the Ethereum network has officially started burning the base fee paid in ETH.

Already, as of writing, more than a whopping 4,840 ETH worth about $12.7 million has been burned by the second-largest network in just over 24 hours since the activation.

Interestingly, the more Ethereum is used, the more the fees increase, as we have always seen, and the more the ETH gets burned.

Interestingly, at one point, in block 12,965,263, there were more burnt ETH than issued, making it the first deflationary block in history.

But the change is seeing people paying more in fees than they have to. “Many people overpaying for txns right now. Please be a bit watchful. If you transact now with the old format, your gas price is converted to basefee + tip. So the basefee is paid first, and then the rest goes to the miner as a tip, even if a smaller tip would also suffice,” said researcher Hasu.

Users are recommended to look up the recent basefee and set your gasPrice as basefee to which 1-2 gwei can be added as a tip.

Higher the Usage, Higher the Burn

The average gas price on Ethereum, which had declined towards the end of March, falling as low as in one-digit in June only to slowly starting to pick up in July, reached 64.50 gwei on Thursday, as per Ycharts.

The median gas fees skyrocketed briefly on Thursday, which is feeding to the increasing amount of ETH getting burned.

“It’s a good thing high fees are now a feature, not a bug!” commented Avi Felman of BlockTower.

The biggest contribution to the ongoing jump in gas fees is renewed interest in non-fungible tokens (NFT) as shown by the top gas guzzlers. Currently, NFT marketplace OpenSea is using 12.77% of all the gas on Ethereum followed by NFT play-to-earn game Axie Infinity, as per Etherscan. The regulars Tether, Uniswap, MetalMask, USDC are the other heavy users.

NFT’s popularity is also evident from the fact that the floor price of popular NFT pieces is going through the roof.

On Thursday, CovidPunks were driving the spike in burned ETH.

Overall, the NFT space amassed over $1.2 billion in sales volume during July and besides the popular Axie Infinity, which became the most valuable NFT collection ever with more than $830 million in trading volume, about 80% of it the total volume comes from Ethereum’s primary and secondary markets.

The lion’s share of total NFT volume is currently happening on Ethereum which only spells good things for its price.

Read Original/a>
Author: AnTy

Ethereum London Upgrade with EIP 1559 Activates, About 300 ETH Burned in Just an Hour

The much anticipated London hard fork with EIP 1559 has been activated at block 12,965,000.

As of writing, 304.9 ETH has already been burned.

While the burning started fast, it may not continue at this rate as all the miners haven’t started mining 30 million blocks yet, so we are not at maximum capacity. Additionally, “once the mempool has been cleared entirely… blocks will become smaller, and basefee will fall again,” noted researcher Hasu.

All the transactions will now be handled according to the new format, which means miners have to burn ETH to include the transactions in a block.

In case wallets aren’t ready for EIP 1559, while the format of the old transactions will stay compatible, the gas price will be converted to the new format — max basefee + tip user is willing to pay. So, as a user, you have to be careful not to overpay.

In response to the hard fork upgrade, Binance announced a temporary pause, for about two hours, on deposits and withdrawals of Ether if the hard fork might result in an additional token to reduce the trading risks brought about by price volatility.

Just as the activation happened, the price of ETH took a drop to $2,513 only to recover fast and above $2,600.

The excitement around the upgrade intensified in the last few days that Ether printed 13 daily green candles in a row. The subsequent red candle only ended up pushing the crypto asset to near $2,800 on Wednesday.

As of writing, ETH/USD aims to go even higher while being down about 40% from its mid-May peak.

ETH/BTC meanwhile has found resistance at 0.069. Once past this, it can rally between 0.073 and 0.077. ETHBTC peaked out at 0.082 on May 15.

According to an Ether enthusiast who goes by CroissantEth on Twitter, just as EIP 1559 goes into effect, it will have an “instant shock to ETH” that could potentially burn “already existing tokens on the network.”

EIP 1559’s shock to Ether supply combined with the ETH locked in ETH 2.0, the record 23% of ETH supply locked in smart contracts, and the declining supply on cryptocurrency exchanges has CroissantEth very bullish on the second-largest cryptocurrency.

Meanwhile, based on the past price performance of Ether around the network upgrades, crypto economist Ben Lilly expects an average return of 5.1% in the 30 days following the upgrade and then 28.8% in 60 days and 64.4% in 90 days.

Such returns could potentially see Ether’s price back at its all-time high above $4,000.

Read Original/a>
Author: AnTy

Brazil Approves its First Ethereum ETF

Blockchain investment firm QR Capital’s Ether exchange-traded fund (ETF) has been approved by Brazil’s Securities and Exchange Commission (CVM).

This first Ether ETF approval of the country comes just three weeks after their first Bitcoin ETF went public on the Brazilian Stock Exchange, which was approved in March.

QETH11 “will be listed on the B3, which becomes the 1st exchange in Latin America to have a 100% Ethereum ETF,” announced the firm on Twitter on Wednesday. The date of listing hasn’t been set yet.

This week, another manager Hashdex announced its Bitcoin ETF BITH11, which bets on neutralizing the carbon footprint of mining bitcoin acquired by the fund. It will be listed on the Brazilian stock exchange in the first half of August.

Brazil has also approved an ETF, HASH11, that invests in a basket of cryptocurrencies.

Meanwhile, QR Capital’s Ether ETF will track the same Ethereum index used by the CME Group, the CME CF Ether Reference Rate. QR Asset Management said.

“The Brazilian investor now has the possibility of exposure to the two largest and most valuable digital assets in the world, in a regulated, simple and secure manner. It is no longer necessary to register in exchanges, create private keys or worry about secure custody.”

QR Capital will use crypto exchange Gemini’s crypto custody solution to store digital assets.

Read Original/a>
Author: AnTy