Matic Network Strategically Rebrands to ‘Polygon’ in a Bid to Build the Best Ethereum Layer 2 Solutions

Matic Network Strategically Rebrands to ‘Polygon’ in a Bid to Build the Best Ethereum Layer 2 Solutions

  • Matic Network rebrands to ‘Polygon’ and expands their strategic technological mission of providing faster layer 2 solutions for Ethereum blockchain.

Polygon, formerly Matic Network, announced its pivoting in a shift to enable Ethereum to compete with its rival, Polkadot, by building robust, fast and efficient multi-chain solutions.

According to a blog post, the Indian-based startup will incorporate a layer 2 aggregation software development kit (SDK), allowing projects to host multiple projects at once. This will allow developers to connect to any of their preferred scaling solutions, reducing the burden on Ethereum, as well.

Polygon introduces a new secure layer 2 scaling solution that relies on Ethereum for security purposes and sidechains that completely deal with their own security. The former allows startups to focus on their craft rather than worry about safety and ensure the projects attain the highest security levels. The standalone sidechains also have their benefits for companies, such as sovereignty and speed of transactions.

“The Polygon SDK is built to accommodate [and] aggregate all such kinds of solutions, rollups being one of them. Currently, the Polygon SDK will enable the creation of standalone chains like Polkadot’s substrate.”

Sandeep Nailwal Polygon Co-Founder

Polygon, adding to the Plasma chains already available on Matic, will “support other major Layer 2 solutions such as Optimistic Rollups, zkRollups, Validium, etc., thus basically becoming one-of-a-kind “Layer 2 aggregator”, the report reads.

“Polygon SDK will support and offer several auxiliary solutions and products which will extend Polygon functionalities, improve the developer experience and introduce support for specific use cases.”

The Polygon network aims to overpower other scalability solutions such as Avalanche (AVAX), Polkadot (DOT), and Cosmos (ATOM). Having built on the Ethereum (ETH) Network, Polygon could enjoy greater security levels and become more open and robust, feeding off the second-largest blockchain.

The old Matic Network version will remain fully functional, and the MATIC token will continue to be the native token of the network.

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Author: Lujan Odera

Fundstrat Raises ETH Target Price to $10,500; “The Best Risk/Reward Investment Play In Crypto”

Fundstrat Raises Ethereum Price Target to $10,500; Calls It “The Best Risk/Reward Investment Play In Crypto”

The second-largest cryptocurrency could surge more than 700% from its current level to $10,500, according to Fundstrat Global Advisors LLC.

The prediction is made by digital asset strategist of Fundstrat, David Grider, who wrote, Ether is “the best risk/reward investment play in crypto.” “Blockchain computing may be the future of the cloud,” added Grider, who sees setbacks in the Ethereum 2.0 network upgrade or a crypto bear market as the risks.

The first phase of ETH 2.0, the Beacon Chain, already has 2.57 million ETH locked in its deposit contract. Calling the launch “a resounding success,” developer Danny Ryan says, thus far, it has proved to be “stable and robust.” Ryan in a blog post on Wednesday wrote,

“The successful launch of the beacon chain was a huge milestone for engineers, stakers, and the community at large. We now have the foundation for Ethereum’s sustainable future. Although there are many moving pieces and innumerable winding threads, across the board, the Ethereum community has shown its unbelievable resilience and ability to deliver.”

Besides the network upgrade, Grider’s prediction is also based on the popularity of decentralized finance (DeFi), a growing sector that has over $23 billion in total value locked (TVL).

This moon target came a day after Ether hit its all-time high at $1,440 before seeing a decline today in tandem with Bitcoin. Eth’s new high came with an “overheated” derivatives market seen in the recent high funding rate.

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Eth’s more than fivefold gains last year beats Bitcoin’s uptrend, which quadrupled in 2020. The crypto market expects ETH to outperform Bitcoin yet again, as it did during the 2017 bull cycle as well.

Crypto derivatives platform Deribit actually added ETH options contracts with a strike price of $10k in the first week of January 2021. On Tuesday, Deribit added another ETH options contract at a strike price of $20,000 with the December expiry.

On Feb. 8, the regulated platform, CME, will also launch the Ethereum futures contract, which is further expected to bring in institutional investors by legitimizing the cryptocurrency for institutions to make it part of their investment portfolio.

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Author: AnTy

Grayscale’s Record-Breaking Hat-trick, Q3 Inflows Rakes in Over $1 Billion in Investment

Q3 was the best quarter ever for Grayscale Investments, which serves institutional investors, family officers, and private investors.

The largest digital asset manager took in more than $1 billion in new investment in its largest-ever quarterly inflows, marking it the third-straight quarter when the asset manager broke its own record for inflows.

As per the firm’s report on Wednesday, Grayscale now has $5.9 billion in assets under management (AUM).

This growth came despite the global economy taking a nosedive in 2020, and the price of Bitcoin recording gains of only 18%.

Like every time, the leading digital asset remained the most popular cryptocurrency. Grayscale Bitcoin Trust (GBTC), the company’s largest product, saw $719.3 million in new inflows in Q3.

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The persistent demand for GBTC has the company becoming one of the fastest-growing investment products in the world. It is further increasing the appetite for Grayscale’s other products.

Ethereum saw a record growth with 17% of the investment in Grayscale Ethereum Trust (ETH) from new institutional investors.

This week, Grayscale announced that ETHE is now an SEC reporting company that helped in its price surge.

“We believe in a future where multiple digital assets coexist,” said Michael Sonnenshein, managing director at Grayscale Investments. “We believe that there is a future state where bitcoin, Ethereum, and other digital currencies coexist as part of the digital currency cohort” and are “used for different things,” he said.

Grayscale’s Bitcoin Cash, Litecoin, and Digital Large Cap products also saw over 10x growth in inflows quarter-over-quarter.

Interestingly, for the first time, Grayscale found that a majority of its investors, more than half at 57%, were investing at least two of its crypto investment products, up from 44% a year ago and 37% when the company was first launched in 2012.

More institutions are surely coming, which are not only the primary source of investment capital at 81% in Grayscale, but they also increased their average allocation to $2.9 million from the previous quarter’s $2.2 million.

What is more interesting than this “consistent and significant growth” is what has been behind it.

Besides the digital assets outperforming major indices YTD, investors are interested in them because of the ongoing stimulus concern. With more significant fiscal stimulus expected in Q4, “more investors may look to digital assets for yield in this paradigm of monetary inflation,” it says.

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Author: AnTy

Fidelity Report: Trillions of Dollars Could Flow into Bitcoin as a ‘Unique’ Alternative Investment

The current macro environment is the best scenario for bitcoin; it is exactly what the digital currency needs.

As Fidelity notes in its latest report on “Bitcoin Investment Thesis,” bitcoin as a unique investable asset is gaining a lot of traction, which is to increase in response to the Federal Reserve cutting their benchmark interest rate to zero or negative.

“In a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher,” reads the report by Ria Bhutoria, the Director of Research.

What makes bitcoin an attractive alternative investment is its low correlation to traditional assets.

BTC, being uncorrelated to other assets because of its dynamic narrative, being a young asset, and favored by retail investors. As such, it makes all the sense to invest in Bitcoin.

When it comes to retail, it has more to gain as the retail investors’ channel for financial information and advice shift to Twitter, Reddit, Telegram TikTok, and YouTube, a new wave of retail investors “will undoubtedly flow to bitcoin and other digital assets.”

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As a matter of fact, the report found that “The annualized returns of portfolios with an incrementing allocation to bitcoin outperformed a portfolio with no allocation to bitcoin over all time horizons displayed here, ending in September 2020.”

Given the growing interest in alternatives amidst low yields, overvalued equities, and the potential for funds to flow from fixed income into other asset buckets, it is beneficial to have BTC as a component of the alternative bucket.

With a market cap of just $210 billion, it is a drop “in the bucket compared with markets bitcoin could disrupt,” such as a store of value, alternative investments, and settlement networks.

The alternative investment market was sized alone at $13.4 trillion in 2018, as per the CAIA Association. If BTC were to capture even 5% of it, it would equate to an incremental $670 billion growth in its market size, and a 10% growth would take it to over a trillion dollars.

Also Read: Asset Manager, Stone Ridge, Buys 10,000 ($115M) Bitcoin as its Treasury Reserve Asset

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Author: AnTy

MetaMask Launches A ‘Token Swap’ Feature In the Battle For A Share of the DeFi Market

MetaMask, the ConsenSys backed Ethereum app, introduces a token swap feature, promising the best trading fees in the decentralized finance (DeFi) ecosystem. This aims to take a share of the market from the prevailing decentralized exchanges which used Metamask connection to transfer funds to the trading wallet.

At launch, MetaMask will release the ERC-20 token swapping feature on Firefox web browser extension with other web extensions and its mobile app to come later. The token swapping feature will source its data feeds from multiple decentralized exchanges and their aggregators to offer the best prices and gas fees on the platform.

“We get the best prices because we simultaneously aggregate the most liquidity sources (DEXs) and many different methods for splitting the order across the DEXs (aggregators),” Jacob Cantele, head of product at MetaMask.

The token swapping feature is set to open a gateway to users to directly swap their tokens without the need for a third-party service. Previously, a user needed to connect their MetaMask wallet to a DEX such as Paraswap or Uniswap to swap their ERC 20 tokens to obtain them. With the direct swap, users will not choose to transfer their tokens to another party – reducing the number of steps.

The wallet will support data feeds from Uniswap, Paraswap, Kyber Network, 0x exchange, and 1.inch exchange, among other decentralized platforms.

According to ConsenSys, the fees will range across users depending on the order size, with trading fees expected to range from 0.03% to 0.085% on the platform.

The latest developments follow the Metamask mobile wallet’s launch on iOS and Android, allowing users to buy Ethereum (ETH) using Apple Pay directly. The developments will be key to onboard more customers, recently announcing they had reached 1 million active digital wallet users.

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Author: Lujan Odera

“Nothing Compares to My Bitcoin Bet,” Says Social Capital CEO Chamath Palihapitiya

Bitcoin was the best performing asset of the last decade, and in 2020, it remains a winner again.

Compared to the S&P 500 hitting a new record with just 2.09% returns YTD and gold also reaching a new peak with 22.2% returns, Bitcoin is still 46.5% away from its all-time high but up 49% in 2020 so far.

As such, it makes sense that Bitcoin is Chamath Palihapitiya’s best bet.

The chairman of Virgin Galactic and a stakeholder at Warriors, this week, Palihapitiya took to twitter to impart some investment knowledge.

In his investment 101, he talked about taking time to understand that you own so that you can go “all in.” “Don’t confuse slugging percentage with batting average,” he said.

During this, he provided the example of Bitcoin, “I’ve made some great bets before, but nothing compares to my bitcoin bet in 2012 and sizing up…” with an added “PS, HODL.”

Recently, Palihapitiya revealed in the investor call of his company Social Capital that it has been a bitcoin investor since 2013. Here he compared BTC to the early days of Amazon and Tesla, with “great asymmetric upside which can 10x in 10 years.”

In another of this Twitter thread, Palihapitiya discussed an investment portfolio. Conventionally, investment for retirement was 60% equities and 40% bonds, which got the job done in the 80s, 90s, and 00s.

But now, in the world of zero and negative interest rates, bonds return zero, calling for a new addition.

Here, he suggested, one idea is to replace the bonds by increasing the exposure to alternative assets such as “crypto, cars, art, baseball cards,” and others.

“Most people have 0-5% in alts. This allocation will probably change if bonds remain at 0…it’s just the math,” he said.

Bitcoin Struck a Nerve

Big players and companies are slowly but increasingly turning to the leading digital currency, as we have seen this year with the likes of Paul Tudor Jones and MicroStrategy.

Bitcoin actually “struck a nerve” when the halving happened, the programmatic supply reduction – a completely predictable boring thing, the same time as the money printer went burr, said former macro hedge fund manager Raoul Pal.

The bitcoin proponent believes BTC to be “a priceless reserve and collateral asset.” Earlier this month, he revealed that more than 50% of his investment is in bitcoin.

In a recent interview, he also talked about a bitcoin exchange-traded fund (ETF), which, according to him, is imminent and advised not to miss the “opportunity of a lifetime.”

“You’re allowed to front-run in Bitcoin, and I’m going to give you the biggest front-running opportunity of your life: they will get an ETF across the line. There will be billions of dollars that pour into it,” he said.

He expects “every” pension plans and family offices to allocate some of their money to it and from there, “the more the price goes up, the more they will allocate,” providing the retail an opportunity to “front-run the institutions for once as opposed to Goldman Sachs front-running us.”

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Author: AnTy

YFI Ploughs Through Bitcoin’s ATH as Yearn Finance Continues to Build the Lego for Castles

The DeFi darling, YFI, is probably having the best time in the crypto industry.

The token hasn’t taken a break in its upwards trajectory, which gained speed in mid-August when YFI was trading around $4,500. Today, it shot past Bitcoin’s ATH $20,000, to hit a new all-time high of $24,961, as per CoinGecko.

YFI is up 70,078% from its all-time low on July 18.

Lots of exciting things are happening in the world of Year Finance, and much more is coming for YFI.

Just recently, the project creator Andre Cronje hinted at working with another fast-growing project FTX, the derivatives platform, which is taking a deep dive in the DeFi world.

Other exciting things going on include the new decentralized funding mechanism announced by Yearn Finance today.

With Delegated Funding DAO Vaults, funders provide YFI into the fair launch Vault, and you receive your LP share based on the contribution.

Yesterday, another popular DeFi project Aave which recently obtained the electronic money authorization from the Financial Conduct Authority (FCA), integrated YFI on its platform.

Within 2 hours of the announcement, 1.3% of the tokens, 400 YFI, was moved on the platform.

“Lend to short-sellers, use as collateral for loans… another sink that will push up yields for those participating in governance,” said analyst Ceteris Paribus about this development.

Meanwhile, a new proposal to direct 1% of rewards that go to TreasuryVault towards Gitcoin Tech Grants, Ethereum public good funding, has received 84.26% favorable voting.

“Yearn will become a matching partner of Gitcoin and help the ecosystem its built upon to thrive further,” states the proposal.

Given the success of YFI and Yearn Finance, the community wants to see real decentralization, where venture funds and management don’t have a chunk of premined tokens allotted to them. A project which is all about building and bringing new and exciting things for the industry.

“Projects raising big VC money and reserving tokens for insiders will be in total disbelief. This is the power of fair launch, no premine, no insider rounds. This is not a new lesson. The herd wants to participate in a game that they feel is fair for them,” said entrepreneur and quant trader Qiao Wang.

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Author: AnTy

FalconX Exchange Raises $17M to Enhance Trading Services For Its Growing Demand

FalconX, the US-based virtual assets trading startup that offers its customers best execution via data science, has announced that it has raised $17 million from different investors.

The firm stated that the funding round comprised Coinbase Ventures, Accel, Fenbushi Capital, Accomplice VC, Lightspeed Venture Partners, Flybridge Capital Partners as well as Avon Ventures.

According to a press release shared with Bitcoin EXchange Guide, the money will be utilized in rolling out fresh products, enhancing FalconX’s crypto trading services, as well as, enhancing its infrastructure in order to serve the expanding institutional clients in the market.

According to FalconX CEO, Raghu Yarlagadda, the firm’s technology is set to offer the right infrastructure that will define the future of digital assets.

According to the firm, in the last 10 months, it has processed over $7 billion in worldwide trading volume, which also translates to 600% quarterly growth rate which is fueled by tight spreads, removing spillage as well as hidden fees. The firm also attributes the exponential growth to high levels of enterprise-grade security.

The San Francisco, CA-based Exchange FalconX provides digital asset trading and has developed robust liquidity via various liquidity pools or exchanges as well as proprietary dark pools. Currently, the firm boasts more than 100 financial-based institutions ranging from crypto miners, hedge funds, payment gateways, and exchanges. The firm also revealed that it was seeking licenses in different jurisdictions in efforts to expand its footprint in the world.

FalconX was started in 2018 by Prabhahar Reddy as well as Raghu Yarlagadda. Before founding FalconX, Yarlagadda, an engineer and renowned entrepreneur, held various leadership positions including an executive role at Google. Yarlagadda played a vital role in scaling Chromebooks, helping to turn it into a multi-billion dollar venture. On the other hand, Reddy previously worked at Accel, a venture capital firm.

The FalconX team is made up of experienced individuals from Silicon Valley as well as Wall Street.

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Author: Joseph Kibe

Bitcoin Halving Is Not An Event; “There Just Ain’t Enough BTC To Satisfy New Investor Demand”

The equities market finished April with a 12% gain, having its best monthly performance since 1991 despite the ruptured economy.

“Soaring jobless claims, empty restaurants, and a falling count for active oil rigs show the breadth and depth of the blow to the economy,” said Bloomberg economists Eliza Winger and Tom Orlik.

Amidst this, the Federal Reserve continues to power its money printer. The Fed has dramatically stepped up its effort to prevent a coronavirus depression as it promises to start buying corporate bonds and ETFs in early May. The US central bank later added junk bonds and junk bond ETFs to this list as well.

This meanwhile is helping gold which hovers around $1,700. “The massive monetary support we are witnessing at the movement is helping gold,” Commerzbank analyst Eugen Weinberg said.

But the monetary stimulus is not only helping the precious metal but also the digital currency.

Bitcoin outperformed other assets by finishing April up 34%. The leading digital asset has completely retraced the March 12 lows and is currently trading under $9,000.

“Record monetary and fiscal stimulus is creating the perfect macro backdrop for this inflation-protected, non-sovereign digital asset class,” said Jeff Dorman, Chief Investment Officer at Arca.

Bitcoin’s correlation with the S&P 500 which recently surged to its peak is also starting to subsidize. Moreover, the Chinese Yuan is falling against the dollar once again, which “historically had a much higher negative correlation to Bitcoin.”

Amount of Newly Issued Bitcoin Minuscule to Investment Dollar

Bitcoin has some strong tailwinds ahead of halving, which is less than a week away now. Google searches for the keyword “Bitcoin halving” is already at a record high and continues to climb upwards.

Could the rally that started last month continue into May and see us reaching the all-time high? According to Arca, “the halving is not an event at all.”

Bitcoin has a fixed supply of 21 million coins which is a well-known fact. As such, the supply curve is vertical — perfectly inelastic because it doesn’t change based on demand or price.

This means, “price can only change due to a shift in the demand curve.”

Income, trends and tastes, expectations, price of related goods, and the size and composition of the population are the attributes that cause a shift in the demand curve.

Although these factors contribute to the future growth in bitcoin adoption and as such price, they aren’t specific to halving.

But the price of bitcoin is still expected to move higher for the very reason that “the amount of newly issued Bitcoin is minuscule relative to the number of investment dollars.”

Unlike the corporate bond and equity markets which reached $260 billion in March and then added another $25 billion in April 2020, newly minted bitcoin will fall from 1800 BTC per day to 900 BTC per day post halving.

At the current price, this equates to about $240 million per month of new bitcoin, this is about 12 times less than the new equity offerings and 500 to 1000x less than the corporate bonds offerings.

“There just ain’t enough Bitcoin to satisfy new investor demand,” Dorman said.

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Author: AnTy

Cryptocurrency Analyst Says XRP Is Gearing Up For A 170% Move

  • Altcoins following the past trend, the first quarter is the best quarter for altcoins
  • Trader and analyst Crypto Michaël is going long on XRP
  • The downtrend in the USD market broken, XRP chart resembling the Jan. 2016 one

On January 14, Bitcoin price surged 10% and altcoins followed behind with a much harder rally.

“When Bitcoin goes up, our customers usually start buying altcoins as they tend to follow the leader,” said Steve Ehrlich, chief executive officer of crypto-asset broker Voyager Digital.

The third-largest cryptocurrency XRP also surged 14%, going as high as $0.24 but is back to now $0.225, down 4.43% in the past 24 hours.

However, it might not be the time to get dragged down but to fly.

According to the trader and technical analyst, Crypto Michaël, XRP can see a move as high as 170%. The trader is planning to long the XRP chart from here.

He points out how Zcash (ZEC) made its first HL in a long time and then moved 100%. ZEC is up 73% YTD. Similarly, VeChain Thor (VET) moved about 200% after making a slight HL in a while and breaking a long downtrend.

Just like in the last four years, when the first quarter of the year was the best quarter for the altcoins, cryptocurrencies have started breaking out this month.

As Dash, Ethereum Classic, and ZEC broke the long term downtrend, Ethereum and XRP are now facing similar movements.

XRP and Stellar Lumens (XLM) however, Crypto Michaël, says “don’t move in a natural way, they usually push hard before it goes.”

In the USD market, the downtrend is already broken and it looks to be January 2016 in the XRP market. As such, the trader thinks we are going to break to the upside. The analyst concluded,

“Losing the green area around 2500 is a no-go and that would mean new lower lows. However, breaking the downtrend after this compression and the targets are; 3750-3800, 4400-4450 & 6700-6800 for a move of around 170%.”

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Author: AnTy