Bitcoin’s Longest Slump Since May Severs its Pandemic-era Correlation With Tech Stocks

The beating continues in the cryptocurrency market as Bitcoin drops to as low as $55,700 on Thursday and Ether to $3,970. This has the total cryptocurrency market cap dropping to $2.56 trillion.

Some crypto assets like Loopring, Fantom, SHIB, NEAR, Zcash, LINK, and Kusama have fallen as much as 20% to 27% in the past week. Still, a few cryptos are enjoying gains, with The Sandbox, MANA, and Crypto.com up 50% to 75%.

For the fifth consecutive day, Bitcoin slipped, which is the longest slump since mid-May. The cryptocurrency has dropped below its average prices over the last 50 days. According to Matt Maley, chief market strategist for Miller Tabak + Co., $54,500 is the next important level with a drop below $50k to raise “serious warning flags.”

https://twitter.com/CL207/status/1461453590900486149

Now, ahead of the weekend, Bitcoin is back around $57k while Ether is above $4,100 that has the overall market cap now aiming for $2.6 trillion.

“The pullback, while sharp, has not impacted our positive intermediate-term gauges. Short-term oversold conditions are within reach for Bitcoin, Ether, and many altcoins,” said Katie Stockton, founder of research firm Fairlead Strategies. “So we would look for their collective pullback to mature later this week.”

With the latest weakness in the market, the correlation between Bitcoin and Nasdaq 100 futures is evaporating.

The 30-day correlation between the leading cryptocurrency and the Nasdaq futures has fallen to almost zero in recent days, which hit a 2021 peak at the end of September at 0.56, suggesting Bitcoin and tech stocks were moving in tandem often.

The correlation between Nasdaq and Bitcoin has been generally positive since February last year. But since September-end, Bitcoin is up 40%, surpassing Nasdaq 100’s 11% increase. Last week, Bitcoin hit a new all-time high at $69,000, emerging as an inflation hedge.

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However, according to Carsten Menke, head of next-generation research with Bank Julius Baer in Zurich, this evolution of the relationship between the cryptocurrency and Bitcoin doesn’t support the argument that it is a reliable, modern-day store of value for portfolios.

The lack of a consistent and negative correlation between them suggests that Bitcoin is not yet a safe haven, he said, stressing that during times of financial-market stress, it tends to suffer like other riskier assets.

Defending Bitcoin, Esme Pau, an analyst with China Tonghai Securities, argued that bitcoin is a “sensible” way of buffering against inflation.

“I would urge investors to focus on the longer-term trend and do not think short-term changes in correlation should be considered representative,” she said.

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Author: AnTy

Bullish Week: Overwhelming Bitcoin Buying Sends OI to May Level while Net Dollar Longs Surging

The bullish start of October continues this week as the price of Bitcoin went from $48,250 to as high as $56,645 on Friday. As of writing, BTC/USD is hovering around $55k.

With this latest pump in price, Bitcoin has yet again become a trillion-dollar asset class.

According to Chainalysis, ever since Bitcoin hit it’s low late in July, those holding at least 1k BTC have increased their holdings by 172k BTC. Meanwhile, institutional traders have acquired an additional 68k BTC.

Much like the leading cryptocurrency, Ether moved in tandem to start the week at $3,400 to hit $3,675 and is now trading around $ 3565. The overall crypto market cap also grew by more than 9.5% to above $2.4 trillion.

This past week, the biggest gainer in the crypto market has been SHIB which is up by 232%. Other big gainers include FTM (44%), ONE (37%), OHM (25%), BTT (21%), XRP (18%), DCR (16%), AXS 16%), and EOS (15%).

Q4 is looking primed for a significant price-performance with it being historically a bullish quarter combined with the possible upcoming approvals for BTC ETFs in the US, the stabilization of the Evergrande situation, and traditional giants like Soros Fund Management turning crypto-positive.

Institutional Demand

Despite the 14% uptrend in Bitcoin price, the funding rate is still not heavy, with the highest currently on OKEx at 0.0453%, as per Bybt.

Open Interest is also surging, having climbed to $19.15 billion, a level last seen in early May. In just over ten days, the OI has increased by about $6 billion. As reported, CME is particularly enjoying a heightened activity with OI on Bitcoin contracts sitting at $3.12 billion, the same as FTX and just behind Binance at $4.35 billion, as per Skew.

On Sept. 29, OI on the regulated platform CME was $1.47 billion. For Ether contracts, OI on CME currently at $830 mln is reaching for early Sept. ATH of $860.75 mln — but ranks at 6th place.

This significant increase in OI suggests “institutional demand has been the underlying driver of this move higher,” according to QCP Capital. Additionally, the “unusually large premium on CME indicates an overwhelming amount of outright buying.”

Premium on CME futures has been highest among the major exchanges when typically it is compressed due to the cash-and-carry spread trades that institutional players like to put on — buy spot vs. sell CME future.

This week, Senator Cynthia Lummis R-Wyo. also disclosed buying between $50,001 to $100,000 worth of BTC in mid-August, according to a filing. This, however, isn’t her first Bitcoin purchase, as she first bought it in 2013. She also disclosed buying Bitcoin worth between $100k-$250k in April this year.

Dollar Longs at 2-Year High

While crypto is euphoric, S&P 500 is merely up 2.14% this month and 17.14% YTD compared to Bitcoin’s 90% uptrend in 2021 so far. Gold is also green this month by 1.60% but still down by 7.27% year to date.

When it comes to the US dollar index, it is up 0.56% and 2.74% in this month and year, respectively.

US dollar net longs meanwhile have surged to their highest level in over two years. In the week ended Oct. 5, the value of the net long dollar position jumped to $22.89 billion, versus $16.37 billion in the previous week.

Traders are net-long on US dollar for 12 straight weeks after being short for 16 months, thanks to the Federal Reserve suggesting a possible tapering of its asset purchases starting November this year.

However, before the weekend, the dollar pushed back after data showed US non-farm payrolls increased by just 194,000 jobs last month, compared to the expected 500,000 new jobs.

“U.S. inflation data released next Wednesday may add to evidence that inflationary pressures are proving less ‘transitory’ than generally anticipated,” wrote Jonathan Petersen, markets economist at Capital Economics.

“Our view remains that this will push U.S. yields and the dollar a bit higher in the coming months.”

Bitcoin net shorts meanwhile increased to 1,518 contracts — largest since late July — from 883 the previous week.

Developing Countries Leading In Adoption

El Salvador, which continues to see growing bitcoin adoption, is now planning to invest some of the $4 million gains obtained from its Bitcoin operations to build a veterinary hospital, President Nayib Bukele said this week.

The Bitcoin Trust, which was authorized by Congress in August to facilitate BTC and USD transfers, now has a “surplus” of $4 million to its original balance of $150 million, said Bukele.

“So we decided to invest a part of that money in this: a veterinary hospital for our furry friends,” Bukele wrote on Twitter. The veterinary hospital would provide basic and emergency care services along with rehabilitation, he added.

Earlier last week, El Salvador became the world’s first nation to adopt Bitcoin as legal tender. According to BitMEX CEO Alex Hoeptner, Salvador is just the first one as he predicts at least five countries accepting the cryptocurrency as legal tender by the end of next year and all of them will be developing countries.

“Faced with an inherently unequal financial system, those who have the most to lose by continuing the status quo are acting in their self-interest to explore alternative options like Bitcoin.”

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Author: AnTy

AnySwap and Aave Fork Geist Finance Send Fantom TVL Past $9 Billion, FTM Makes a New ATH

The total value locked (TVL) in the decentralized finance (DeFi) sector continues to hit a new all-time high, the latest being $209.8 billion, according to DeFi Llama. This growth reflects the growing world of multi-chains.

While Ethereum remains the king, accounting for about 68% of this TVL with $142.58 billion coming from the second-largest network, other chains like BSC ($$17.4 bln), Terra ($8.85 bln), Avalanche ($4.93 bln), and Polygon ($4.56 bln) are also growing.

Solana is currently the most popular one with a $10.6 bln TVL. While Fantom comes in third place with $9 billion in TVL, it had seen explosive growth in the past 24 hours when its TVL was at just $3.25 bln.

This growth is also reflected in FTM price, up 85% in less than two days to make a new all-time high at $2.43 on Friday. As of writing, FTM is trading at $2.34.

The majority of Fantom’s growth comes from AnySwap, a trustless MPC protocol to cross-chain any assets and data between chains. With 43.6% dominance in the Fantom ecosystem, AnySwap is responsible for almost $4 billion of Fantom’s TVL.

Decentralized non-custodial liquidity market protocol Geist Finance is another significant contributor with $3.19 billion of TVL. Geist Finance, a fork of popular lending protocol AaveAave, has been “giving LPs ridiculous incentives.”

Together, AnySwap and Geist Finance account for almost 78% of Fantom’s total TVL.

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Flows from Ethereum to FantomFDN have also been averaging $10-25 million per day over September. But it was over the last two days that it “increased by an unprecedented amount on the back of a new yield farm,” noted Delphi Digital.

Some notable mentions include SpookySwap, SpiritSwap, Beefy Finance, Curve, Scream, Tarot, Abracadabra, and Yearn Finance.

Abracadabra Money has launched a new stablecoin, Magic Internet Money, or MIM, which taps into yield tokens allowing people to borrow stables against them.

“Yearn alone has over $5B in TVL, meaning there were a lot of idle tokens to loan against,” said Delphi Digital.

On Thursday, Yearn Finance finally launched on Fantom as well, tweeting,

“Today, we go multichain with the launch of Iron Bank Fantom and the first Fantom vaults on http://beta.yearn.finance.”

The first vaults on Fantom include yvWFTM, yvUSDC, yvDAI, and yvMIM.

Yearn decided to go multichain because they need specific infrastructure to function safely and efficiently, both externally and internally.

“Our v2 vault codebase has hardened over the past few months, and the new beta website is a vast improvement, allowing us to switch chains relatively easily, something we simply could not have done in the past.”

As for choosing Fantom, it is fast and simple to use, not to mention easy to bridge thanks to Anyswap Network. “It doesn’t hurt that @AndreCronjeTech is a big fan,” it added.

Fantom, however, is just the beginning for Yearn as they plan to add support for other chains as well.

“The Realm expands, and we go with it. We want to meet people where they are, including new users and users with smaller deposits. Multichain expansion is a natural way to do this.”

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Author: AnTy

Blockchain Platform Lido Now Supports Solana (SOL) Staking

Blockchain Platform Lido Now Supports Solana (SOL) Staking

Solana’s profile continues to rise. With the coin’s current price jump, adoption has also been growing.

The latest sign of increased Solana adoption is coming from Lido – a blockchain-based crypto staking platform.

An Interesting Staking System

Earlier this week, Lido announced expanding its staking services to include Solana’s native SOL token. In a tweet, the company confirmed that SOL holders can now stake their coins via its platform, earning rewards in the process.

The development marked the project coin that will be supported on Lido – behind Ethereum 2.0 and Terra. Lido has been especially popular due to its liquid staking operation, in which currencies are converted to their synthetic counterparts on the platform.

These synthetic tokens are then used in decentralized finance (DeFi) protocols to improve their holders’ yield-generation opportunities. So, when an investor locks their coins, they receive the synthetic versions of these tokes that they can use in the interim.

With support from Lido, stSOL (synthetic SOL tokens) will now be available on DeFi protocols such as Serum, Phantom, and Raydium. Kasper Rasmussen, Lido’s marketing chief, told industry news sources that the projects would allow stSOL users to provide liquidity and get additional rewards with their regular staking rewards.

Felix Lutsch, the chief marketing officer for blockchain staking and interoperability platform Chorus One, also pointed out the presence of a wormhole bridge that connects Solana with other leading blockchains like Ethereum. As he explained, they will be hoping to use this bridge to bring Lido-staked assets across chains. Chorus One is currently in charge of developing Lido’s liquid staking solutions for Solana.

All Eyes on SOL

Lido’s expansion into Solana is just the latest adoption play for the asset, which has been on a significant price upsurge in the past week. Yesterday, Delta Exchange – a crypto exchange and derivatives trading platform – launched options trading for SOL and Cardano’s ADA token. The move will bring both tokens to move investors, many of which would like to take advantage of their recent gains.

Delta already offers Options trading for coins like Bitcoin, Ether, Binance Coin, and XRP. The company’s rollout for SOL and ADA will start with daily maturities for call and put options. However, weekly and monthly maturities are expected to come at a later date.

Options offer owners the right – but not the obligation – to trade specific securities at a particular time and price.

They are popular in the crypto market, as they allow investors to speculate on coin prices in both the short and long term. The market for derivatives has been growing recently, with open interest in Bitcoin options alone doubling their levels in June – according to data from ByBt.

With the growth of platforms like Delta and FTX, a derivatives platform built on Solana, the derivatives market should see more cash influx. This also puts SOL in an interesting spot for bigger gains.

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Author: Jimmy Aki

Bitcoin Capitulation to Push Volatility Even Lower, But OI on Binance Continues to Rise Sharply

Nothing exciting is happening with Bitcoin price as the cryptocurrency continues to be boring, trading in the $30k and $40k range.

Bitcoin is having a tough time breaking out of this range or even above the 50-day moving average. While the downward slope gives the appearance that $20k support might get a retest but that may not be so easy to reach as there are a lot of bids stacked under $30k.

Moreover, “a price crash right now probably wouldn’t be a bad thing at all” because of many nervous people sitting on coins right now that they’re unsure of, and a break below will push them out and transfer the coins from weak to strong hands, wrote analyst Mati Greenspan in his daily newsletter Quantum Economics.

“In technical terms, this is known as capitulation, a classic example of which occurred for bitcoin in late 2018, marking the end of crypto winter and paving way for the 2019 bull run,”For now, volume and volatility are coming off with QCP Capital expecting the implied volatility to “move decisively toward our target range of 55-65%.”

As Bitcoin remains around $31,000, Scott Minerd, Chief Investment Officer of Guggenheim Partners, is back with his bearish call, which recently went lower than the previous $20k calls to sub $10k.

Now he is back to remind that it is coming sooner as price testing $30k support again and again.

“A technician’s rule to remember with Bitcoin: “Every time a support level is tested, it becomes weaker.” That would mean support for $30,000 may soon fail,” tweeted Minerd.

However, Minerd’s bearish calls for Bitcoin aren’t really worth any attention as he has been bearish ever since January this year, the month SEC approved Guggenheim for buying Grayscale Bitcoin Trust (GBTC).

“Stocks down, credit spreads widening, Treasurys rallying, commodities soft or falling. Consumer sentiment lowest since February 2021. Starting to feel like market participants are losing faith in growth expectations. May be time to prepare for a risk-off summer,” he said in a separate tweet.

Interestingly, amidst the ongoing weak price action, open interest continues to rise sharply.

On June 22nd, the OI on leading derivatives exchange Binance was at its all-time high of 57,000 BTC, and in just three weeks and a half, it has soared more than 63% to 93,100 BTC, as per Bybt.

At the time, last month, trader CL of eGirl Capital described it as the “unprecedented pace of open interest growth on Binance.”

As for Ether, less than two weeks back, OI on Binance was 534.16k ETH which has now reached 726.33k ETH, representing an increase of 36%.

Overall in USD terms, the total OI on Bitcoin futures is $11.83 billion, up from $10.6 billion on June 26 but way off of $27.68 billion on April 13. For Ether futures, the total OI is $5.23 billion, up from $4.43 billion on June 26 but down from the $11.6 billion peak on May 10.

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Author: AnTy

Yield Compression Continues as More Money Seeks Yield while Avoiding Capitulation

Yield Compression Continues as More Money Seeks Yield while Avoiding Capitulation

Activity in the crypto market and DeFi has taken a hit as prices either dump or trade sideways. When it comes to the Ethereum network, gas prices have fallen to early DeFi summer levels, a mere 10 gwie which skyrocketed to 2,000 gwei for a brief period in May.

Amidst this, the total stablecoin supply has reached nearly $108 billion, adding more than $47 billion in just the last three months. trader CL of eGirl Capital said,

“The rate of USDC minting concerns me, the more money-seeking yield in crypto, the more alpha decay in futures curve. The pool of yield-seeking money only gets bigger, leverage traders seem to perpetually lose money. 1 day we might never see quarterlies above 20% again.”

While “good for price… it will make speculation way more competitive,” he added.

In the meantime, this growth in stablecoins supply is crypto market participants looking for risk-off yield farming opportunities or even traditional market participants bypassing directly investing in crypto. Glassnode noted,

“Among the bearish sentiment, liquidity remains strong on-chain as core DeFi participants seek out the highest yields in stablecoins, accumulate governance tokens, and continue to hold spot ETH.”

However, yields have already started to contract as demand for leverage slows. With funding on perpetual contracts normalizing and going negative, yield in DeFi is bound to go down even more as well. Meanwhile, the low volatility interest rates have arisen, giving stablecoin farmers and short-sellers access to cheap borrowed capital. Glassnode says,

“As long as liquidity stays strong and demand for borrow lessens, yields will continue to stay low in borrow/lend markets.”

The latest sell-off in the market saw Bitcoin crashing 55% from its all-time high and Ether experiencing a drawdown of over 66%. But while short-term ETH holders see their unrealized gains evaporate as the loss enters the capitulation zone, long-term holds remain firmly in profit.

Unlike previous times of capitulation, this time, these long-term holders have the opportunity to deploy their assets in DeFi. Fiskantes said,

“One of the reasons this down cycle could be shorter than 2018-2020. Money don’t have a reason to leave if they can stay in stables -> compressed yields -> higher yield seekers increase risk appetite -> buy pressure for “productive assets.”

As we reported, both the lending protocols Aave and Compound have seen over $4 billion in outstanding deposits.

These protocols allow ETH holders to borrow stablecoins against their deposited crypto asset, which can be used for attractive risk-off yields or speculate on token prices and gain governance tokens, stablecoin balances, and crypto assets by buying the dips, all the while keeping their exposure to ETH.

“Stablecoin yield farmers remain healthy profiteers during downturns,” states Glassnode, noting the competition is waging on in the Curve Finance ecosystem as Yearn, Convex Finance, and Stake DAO compete for deposit dominance.

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Author: AnTy

DeFi Bleeding: Fundamentals Don’t Matter But Particular Sections of The Market Are Still Seeing Growth

DeFi also continues to bleed against ETH, but active strategies and an active rotation into stablecoin farms do outperform ‘buy and hold’ Ether.

Cryptocurrencies continue to get sold-off.

And decentralized finance (DeFi) isn’t exempt either. The market cap of the entire DeFi sector has fallen just under $76 billion, down from about $144 billion peak in mid-May due to the prices of DeFi tokens crashing 20% to 75% in the last 30 days.

DeFi, much like all the other altcoins in the market, remains at the mercy of Bitcoin. While it may seem like initially that the crypto assets are decoupling, that is not the case, at least not yet.

“Typically, new and less well-known tokens don’t have institutional support from a liquidity perspective. When majors — Bitcoin and Ethereum — are down significantly like today, DeFi products like these will have more violent price actions,” said Wilfred Daye, chief executive officer of Enigma Securities.

One of the reasons could be that everyone doesn’t understand DeFi or its fundamentals just yet.

“Fundamentals don’t matter because not enough people understand it and is willing to put $ on it, on the other hand, momentum following has always worked,” noted trader CL of eGirl Capital.

DeFi tokens are not only falling in USD terms but also bleeding against ETH.

DeFi is actually worse off compared to Ether in terms of lower returns, higher volatility, longer drawdowns, and larger maximum drawdown.

“Of course, defi would be underperforming ETH – the defi/eth bear market has been in play since last year at some point in the future, I would expect select defi to strongly outperform ETH, but that might not be so soon,” noted Degen Spartan of eGirl Capital.

While DeFi’s “returns have been lackluster for idle buy and hold strategies,” data provider Glassnode found in its latest report that active strategies and an active rotation into stablecoin farms have outperformed buy and hold ETH.

“While returns in DeFi governance tokens have been underwhelming at times, access to yield on assets an investor would otherwise choose to hold regardless is incredibly powerful,” it said.

Still, some metrics are showing strength in the DeFi market. As we reported, total value locked (TVL) in DeFi blue-chips, Yearn, and Aave has already surpassed ATH despite the prices more than halved.

Lending activity in the market is also seeing growth as people look for lucrative yield farming opportunities in the absence of price action. Outstanding DAI is also at ATH of $5.36bn the same as Aave, which hit $6.27 bln high just this week.

Also, while much like on centralized exchanges (CEX), volume on decentralized exchanges (DEX) is falling off a cliff, just last month, total DEX volume hit a new record of over $173 billion, up 109.5% from the previous month and 67,460% from a year back.

“Halfway thru June, DEX volumes on pace for 3rd largest month ever (already > EVERY month in 2020), DEX’s are stealing market share from CeFi,” noted Jeff Dorman, CIO at digital asset management firm, Arca.

This is just short-term, and “a week or two of data doesn’t invalidate long-term trends in volumes, revenue and cash flows,” he added.

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Author: AnTy

The May Crypto Sell-off Predominantly Occurred in the US Session

Bitcoin continues to chop.

Currently, in a ‘crab’ pattern, the price of Bitcoin is constantly going up and down by a few thousand dollars but remains range-bound within $30k-$40k.

Having a drawdown of 50% after rallying 1,610% from March low to mid-April all-time high, the sideways trading is expected to continue for months and trend up if the bull market is intact and down if we are in fact in a bear market.

With new retail, institutions, corporations, and even countries involved in Bitcoin this time, it’s to be seen just how this cycle will play out.

But for now, activity is dying down this month.

May was a record month in terms of many factors, such as volume and fees. But the month ended up wiping out more than a trillion dollars from the market as BTC dropped to $30,000 and $28k on some exchanges. Ether meanwhile ended up falling to $1,725 from the high of $4,375 that occurred just over ten days before. ETH 0.80% Ethereum / USD ETHUSD $ 2,372.48
$18.980.80%
Volume 25.72 b Change $18.98 Open $2,372.48 Circulating 116.27 m Market Cap 275.84 b
11 h The May Crypto Sell-off Predominantly Occurred in the US Session 1 d Best Cryptocurrencies with Growth Potential to Buy In June 1 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers

During this May sell-off, the most selling actually occurred during the US session.

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Now, with most of the gains made in 2021 wiped out, people aren’t really getting back into the market yet, which according to some, could be a ‘sell in May and go away’ phenomenon in work.

This has the volume on exchanges dropping substantially in recent weeks. Daily exchange volume (7DMA) has gone down to $41.44 billion on June 12th from the ATH of $89.69 billion on May 26th.

Even the new follower count of big exchanges has been recording a big drop. Trading in NFTs has also come down a lot, but it remains a much bigger space than last year.

Much like the spot market, in the futures market, so far in nearly two weeks, the total volume is $670 billion; last month, the total futures volume reached 2.56 trillion.

At its height in April, the aggregate open interest of Bitcoin futures was $27.68 bln, which fell to May’s highest $20.91 only to drop even further in June, currently at $12.30 bln. Aggregate OI for Ether futures is currently $6.05 bln, down from $11.6 bln last month.

The premium in the futures market has also gone down massively. Funding rates have fallen into the negative territory; just last month, the annualized basis was 40.71%.

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Author: AnTy

Ether Is Already Flippening Bitcoin in Several Metrics

Ether’s market cap is still 2.2x away from reaching Bitcoin’s, but the latter’s dominance continues to decline as Ether gains ground.

This week, crypto-asset prices show strength, with Bitcoin going to nearly $39,500 and Ether climbing to almost $2,900. While the price action is green, it remains range bound still.

As the prices crash severely from their all-time high, so have the fees on both networks. For Bitcoin, some of this drop could be attributed to layer 2 solution Lightning Network, and for Ethereum, the rise of Polygon and Arbitrum are also helping bring the fees down.

The average transaction fees for both Bitcoin and Ethereum, as we reported, have returned to levels not seen since Jan 2021 and Aug-Sept 2020 during ‘DeFi Summer.’

The average transaction fee paid on each network is currently $7.38 for BTC and $6.08 for ETH.

While some feel this signifies the end of the bull market, others speculate this could be the beginning of another DeFi season. It remains to be seen which scenario will play out.

While fees have come down drastically, Ethereum is still generating 4x of Bitcoin’s fees daily. At their peak, Ethereum did $117.2 million on May 11, 2021, compared to Bitcoin’s $21.4 million on December 22, 2017. On each others’ ATH day’s, Bitcoin did $4.6 million, and Ether did $1.11 million.

Much like fees, a growing number of people in the crypto community expect the Ether market cap to flip BTC at some point in this cycle. Given that Ether outperforms Bitcoin in the bull market, it is possible that Ether can capture the first spot, at least temporarily.

Already, Bitcoin’s dominance is declining as more and more altcoins get launched while Ether’s going upwards.

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While some expect an extended period of flipping to negatively affect Bitcoin, others believe that both are different assets with their own narratives, and ranking doesn’t matter. However, it might be too soon for that, and it’s anyone’s guess what will happen in the future.

For now, the Ethereum network, which is the base of the majority of DeFi and NFT space, is recording much-heightened activity than Bitcoin, which is primarily used for “HODLing.”

In the month of May, while BTC miner revenue decreased by 15% to $1.45 billion, ETH miner revenue increased by 42.8% to a new ATH of $2.35 billion. This is the first time since June 2017 that ETH miner revenue exceeded BTC miner revenue.

For some time now, Ether has been outpacing Bitcoin in the futures market as retail and institutions alike went for the second-largest cryptocurrency. Compared to BTC futures volume’s increase of nearly 30% to a new ATH of $2.47 trillion, ETH futures’ volume surged much sharply by 94.7% to a new ATH of $1.7trn.

Eth yet again saw increased interest in the options market and is now up to 60% of BTC volume.

On the leading option platform, Deribit, 581,578 BTC options contracts traded on the platform, down 0.8% versus April 2021. Meanwhile, over 4.89 million ETH options contracts were traded in May 2021, up 43% versus April 2021.

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Author: AnTy

Regulatory Crackdown Continues: SEC Commissioner Calls for More Regulation Around Crypto Exchanges

Regulatory Crackdown Continues: SEC Commissioner Calls for More Regulation Around Crypto Exchanges

Users would benefit from investor protection on the crypto exchanges as cryptocurrencies are “highly volatile,” said Gary Gensler.

US Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterated that he would like to see more regulation around cryptocurrency exchanges.

“This is quite volatile, one might say highly volatile, asset class, and the investing public would benefit from more investor protection on the crypto exchanges,” he said at the Financial Industry Regulatory Authority’s annual conference.

Gensler said he had asked Congress to consider the issue.

He shared how the regulator has taken many enforcement actions against the crypto tokens that are issued much like classic investment tokens and fall under the SEC’s jurisdiction but aren’t registered with the agency.

“And there are hundreds of tokens out there, so we’ll continue through examination and enforcement doing what we can in that space.”

Gensler then went on to say that the SEC needs to refresh its rules and regulations around crypto marketing and being offered by retail brokerages, robo-advisors, and wealth management firms.

“We all know that there’s greater access and some real enhancement that can come from these mobile applications, but at the same time, we have to freshen up and ensure that our rule sets address it properly around the communications with the public.”

This week, the US Treasury also called for stricter crypto compliance with the IRS, while Federal Reserve Chair Jerome Powell talked about stablecoin carrying potential risks.

“It’s clear a US crypto regulatory crackdown is starting, but I’m optimistic because most of the major players/agencies have spoken already & the policy is taking shape: its pay taxes, comply w/ laws & don’t take shortcuts, & we’ll enable innovation,” said Caitlin Long, founder, and CEO of digital asset bank Avanti Bank & Trust.

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Author: AnTy