Uniswap (UNI) Farming to End Today, Billions of Dollars to be Released

Launched in the mid of September, the governance token of DEX Uniswap, UNI, is currently down over 10%. In the first week of November, the DeFi token crashed 72% from its all-time high, achieved right after its launch.

Since then, the 26th largest cryptocurrency by market cap of $803 million has doubled in value, trading at $3.56.

Uniswap actually has been the first DeFi project to hit $3 billion in total value locked (TVL), which is currently down at $2.84 billion. Meanwhile, it has 3.1 million ETH, 29.5k BTC, and nearly 190 million DAI locked.

The project, however, maintains its dominance in the market at 21.18%.

Interestingly, in the next few hours, UNI farming on Uniswap Protocol will end with about $1 billion to be released into the market.

As it stands, around $2.3 billion funds are deployed farming the native token, and with Ethereum being the reference token, it means there is currently $1.1 billion ETH locked. Although it remains to be seen how much ETH will actually leave, the portion that chooses to stay will get to enjoy the high fees.

This could still mean some selling pressure for Eth, which is trading just around $462, already “at resistance with a potential double top.”

DeFi-Inflow-of-Money
Source: IntoTheBlock

With this new influx of money flowing into the DeFi sector, it’s to be seen where it will exactly move to.

It is possible this money flow will potentially make its way to SushiSwap. While liquidity has been coming off its recent highs on Uniswap, SushiSwap’s liquidity has increased substantially.

Even SUSHI token is currently enjoying gains of over 17% at $1.36, up 109% month-to-date (MTD) basis compared to Uniswaps’ 62%.

However, both are still cheap when it comes to their valuations based on the price/sales ratio. While Uniswap P/S is around 10x and SushiSwap’s even much lower than that, its competitors like Curve and Balancer trade close to 80x.

In other news, over the weekend, the decentralized exchange Uniswap’s app interface went down due to issues with its gateway provider Cloudflare.

The automated market maker (AMM) built on top of Ethereum took to Twitter to share the outage issues and point out how “now is a good time to remember the benefits of decentralization.”

Unlike a CeFi, which, if goes down, has no way to access it, a “true DeFi on Ethereum there are no central points of failure” and “there is no downtime,” as pointed out by Uniswap creator Hayden Adams.

As can be seen with Uniswap, it is available on other IPFS gateways, can be run locally, easily be forked and re-hosted, and can be traded over Uniswap natively from Dharma and other Ethereum wallets. One can also trade on Uniswap through a wide range of aggregators, a command-line, and over Etherscan.

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Author: AnTy

Binance’s Mining Pool Becomes 4th Largest One Amidst ‘More Adoption & Institutional Participation’

Launched less than seven months back, Binance Mining Pool is currently the 4th largest one with a hash rate share of 11.36% after Antpool, Poolin, and F2Pool.

The leading spot cryptocurrency exchange Binance launched its own mining pool in April this year, which at the time was the 11th largest one, accounting for less than 4% share.

At the time when the pool finally went public, Spencer Noon of DTC Capital had shared his skepticism towards saying the “galaxy brain power move” by Binance CEO Changpeng Zhao makes him nervous because this might led to exchange-owned mining pools to “prioritize their own transactions or even censor transactions to competitor exchanges.”

Recently, as we reported, a new Bitcoin mining pool actually promotes censoring certain Bitcoin transactions, which the community is against.

The increased market share is achieved by Binance amidst the bull run with Bitcoin up 120% YTD and ETH 253%.

As a result of the greens, the market has been experiencing heightened volume and interest from the likes of PayPal and legendary investors, including Stanley Druckenmiller and Ben Miller.

“Right now, we are definitely seeing more users come in, more adoption happening, and more institutional participation,” said “CZ” in an interview. “Overall, things are going pretty well, I would say.”

Regulatory Aspect

Amidst this, Binance.US also expanded its services to the 10.5 million residents of North Carolina, now serving over 80% of the US.

Binance.US first opened the registration to the United States users in Sept. 2019, but residents of the 13 states, including North Carolina, were excluded due to local rules and regulations.

Binance.US is an independent entity that is fully compliant in the US, according to Zhao, who said in an interview with Bloomberg that they are hopeful they will be able to get the licenses to offer its services in other left-out states as well.

Recently, as we reported, Binance started blocking the users who are US citizens, which according to Zhao, they have “always” done.

“But users do find intelligent ways to get around our block sometimes, and we just have to be smarter about the way we block,” he said.

“Basically, we do continually try to improve our blocking. There are sometimes a few guys who want to circumvent our blocking and still use the platform, and we have to come up with a smarter way to protect that, and when we do, we block them.”

As for China making new moves to regulate the crypto market, it doesn’t impact Binance’s operations because the exchange is not in Hong Kong, said Zhao.

“Our position is usually we want to see other smaller exchanges to succeed first in any geographic location, and then we will expand our services potentially to cover those regions as well,” he said.

But still, the Asia market “is pretty significant,” an estimated 25% to 40% of daily trading volume originating there, he said.

Commenting on China’s digital yuan plans, Zhao said the country is “way ahead” of other countries, which will put pressure on others. Being the first one to have a CBDC will mean attracting a lot of international usage and volumes, he added.

“This probably will help significantly in making RMB a more dominant currency in the world, and if that works, then I think that will put pressure on other central banks to get their own central bank digital currency out as soon as possible.”

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Author: AnTy

Bitcoin Mining Pool Stirs Controversy by Promoting Censoring BTC Transactions

Blockchain analyst firm, BlockSeer has launched a private mining pool, currently, in beta, that will censor certain Bitcoin transactions.

Given that the Bitcoin community emphasizes censorship-resistance, an essential feature of cryptocurrency that makes it differentiating from the central bank digital currencies, it’s pretty obvious that the company would come under fire for its move.

The community has never favored such steps and has time and again criticized those, like Coinbase and Tether, and other cryptocurrency exchanges, who censored specific transactions or parties.

Last month, DMG Solutions, to which BlockSeer is a subsidiary, suggested that ensuring transaction blocks are OFAC (US Government’s Office of Foreign Assets Control) compliant will help in the leading digital asset’s mainstream adoption.

DMG’s COO Sheldon Bennett said at the time that this pool would be “the first of its kind focused on governance, transparency and building Bitcoin blocks on the network,” which instead of focusing on transaction fees will be all about “sound transaction data and history.”

The company wants to bring “a new compliance-focused standard to the industry” by focusing on

“being devoid of transaction from known nefarious wallets which use this medium in ways that continue to sully the reputation of cryptocurrencies, specifically Bitcoin, in the mainstream as well as to impede widespread adoption.”

Protesting this move, Monero’s lead developer Riccardo Spagni says with censoring transactions as a key selling point of these new mining pools, regulators will try to take advantage of this by encouraging other mining pools to implement similar measures.

“It’s only a matter of time till most Bitcoin mining pools are forced to do this transaction filtering. Might be time to dust off p2pool + focus on Stratum v2 support for pools,” argued Spagni. “Also worth noting that adding more privacy to Bitcoin would prevent this,” he added.

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Author: AnTy

Ethereum 2.0 Deposits Slow Down This Week; Only 10% of ETH Staking Goal Achieved So Far

Since the Ether staking activated, ETH has been deposited at a steady pace. Currently, 56,113 Ether, worth nearly $26.5 million, has made it to the deposit contract.

This is just over 10% of the required 524,288 ETH (16,384 validators) to launch the mainnet. The Phase 0 staking goal is much far away that could see the expected launch date of December 1st being pushed back.

As one ETH enthusiast shared their concern, “An average of 2,100 ETH per day has been deposited over the last three days. We need ~32,000 ETH per day from now till 11/24 to meet the 12/1 launch date. At the current rate, we will NOT launch till June 2021.”

The number of ETH 2.0 deposits have actually slowed down considerably this week.

image1

However, ETH holders will likely be staking more and more ETH towards the deadline. This is because the size of rewards depends on the total amount of ETH staked in total — the more the people staked, the lower the yield.

Besides the late mover having more information, staking ETH is a one-way street, and if something goes wrong with ETH 2.0, these ETH are gone forever. Moreover, staking via exchanges offers instant liquidity on BETH, and the exchange will be the one doing the work of running a virtual validator.

“This makes sense though – not only is there a yield opportunity cost from now until Dec 1 on ETH1, but if you deposit later, you’ll get a better idea of ETH2 staking yield,” said analyst Cetris Paribus.

Amidst this, Ethereum Foundation is funding several grants for ETH 2.0 staking.

According to CryptoQuant CEO Ki Young Ju’s Twitter poll, 45% of the 815 votes are “just not interested” in locking their ETH. While 15.5% says their ETH are locked on other projects, a good 26% says there is a lack of staking rewards with a deadline effect as per 13.5% of the votes.

Additionally, this past week, ETH price saw substantial gains, currently trading near $470, with ~80% of $ETH addresses experiencing profit. However, both the transaction and social volume of ETH have begun to decline, with positive funding rates making an appearance mean the price may take a breather here.

But the fact that crypto exchanges’ ETH balance is declining and active addresses are increasing only slightly; these deposits can gain momentum.

Also Read: Ethereum Undergoes ‘Unannounced Hard Fork’ After Infura Goes Down

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Author: AnTy

This Election Week is Won by Markets; US Dollar Under Pressure with Risk On

On Thursday, the price of Bitcoin went nearly to $16,000 and is currently holding around $15,500. Having rallied 20% this week, the digital currency seems to be now in consolidation mode providing the altcoins the chance to surge.

These gains came during the US election week, which helped the leading digital currency beat major asset classes this year.

With 115% gains in 2020, Bitcoin exceeds gold’s 28% returns and S&P 500’s 8.60%.

Everything is aiming for their all-time highs following the Nov. 3 election as Joe Biden’s lead strengthened with the possibility of a Republican Senate. Such an outcome of a split government, according to some, could lead to an increase in fiscal stimulus.

“We still anticipate that there will be a fiscal package in excess of $1 trillion next year,” said James Knightley, chief international economist at ING Group in New York.

Besides the escalating pandemic and looser monetary policy, the sliding greenback helps push the digital asset higher as investors seek stores of value.

The dollar has its worst week since March, and according to Kit Juckes, a strategist at Societe Generale, “If you had to write a playbook that would get people to say ‘I need an alternative to the dollar,’ this whole process fits that story.”

During the period BTC rallied, the risk-on backdrop triggered a sell-off in the dollar, which fell to a 2018 low.

“Gold, silver, and Bitcoin have worked like a dream in the weak U.S. dollar environment and has attracted huge client interest,” wrote Chris Weston, head of research with Pepperstone Group Ltd., adding, further weakness in the dollar would encourage “an even more constructive view” on both gold and Bitcoin.

Crypto markets also have a history of wild swings, and it is currently on its third such cycle, riding a tide of liquidity.

Mania isn’t Here Yet

In the stock market, tech stocks are rallying on expectations that key progressive goals like antitrust reforms won’t be implemented by Biden.

According to Goldman Sachs analysts, financial services companies will also benefit from better capital markets and a lower likelihood of tighter regulation.

Already, more than $4 trillion has been added to global equity markets this week, putting it on track for the third-biggest week of 2020.

And with this, investors are back into pouring cash into global markets with a force that hasn’t been seen in months. The same is happening in the crypto markets, which added about $50 billion during the same period.

This can be seen in the open interest in Bitcoin options, which is reaching $4 billion. As per CME’s latest COT report, short interest from hedge funds has made a new all-time high, the same as short interest from dealers and intermediaries.

According to on-chain analyst Willy Woo, Bitcoin is not topping; rather, it will see more bullish action after consolidation.

As for the price action that we have recently, it was the “most organic pump” instead of a squeeze from derivatives traders as a “ridiculous amount of coins were scooped up and moved off to individual wallets,” — the largest one day scoop up in 5 years.

Before the pump started, the influx of new HODLers has been “through the roof,” the kind of momentum last seen in Oct. 2017, just one month before the mania started.

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Author: AnTy

Bitcoin Sees a Correction After Ending October with the Highest Monthly Close Ever

Bitcoin started November around $13,760, and although in the red currently, the price of the digital asset remains hovering around $13,400 on the back of $1.79 billion volume.

The month began on a red note, but it has just started, and more exciting has been the monster monthly candle we got in October.

Interestingly and bullishly, Bitcoin had its second-highest monthly close in history in October.

While, on Bitstamp, the longest-standing bitcoin exchange, Bitcoin had its second-highest monthly close, losing to the first by just an inch, on other exchanges, the flagship cryptocurrency actually made history.

On Bitfinex, Binance, and HitBTC, Bitcoin had the highest monthly close ever.

Additionally, it was the highest quarterly close for BTC price in history as well.

image1

As for why does it matter, “month-end asset valuation is how institutional participants appraise their holdings & investments,” stated one trader.

Now, after recording more than 27% gains in October and up 91% YTD, Bitcoin is down -2.18% in November, experiencing a correction.

However, it is not much different from last week when BTC’s price dipping under $13,000. It’s to be seen how low we will go this time.

“Another strong weekly close on high time frame. With that said, let the “dips” come. It shouldn’t surprise anyone who’s been in this market when it happens. Bitcoin had 9+ pullbacks of at least 30% last bull market. But in the long run, we know where this is going (up),” noted trader Josh Rager.

Pullback after the October rally is to be expected, and during the last bull cycle of 2017, Bitcoin had several such corrections, which were as much as 30% to 40%. Moreover, with the US Presidential elections tomorrow, a bit of volatility is expected across the markets.

Stock markets have been experiencing a downturn since mid-October. Meanwhile, today, gold is making its way up above $1,880, the same as the US Dollar index is doing above 94.

“I don’t have much a bearish thesis etc. Just seems like a nice spot for de-risking. High time frame resistance, elections coming up, not seeing evidence of fuel for a short squeeze,” said trader CryptoGainz. “Low time frame technicals are bullish, just sorta hoping for a bull trap tbh.”

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Author: AnTy

Bitcoin in For Another Bull Cycle as BTC Supply Continues to Get Eaten Up Like Never Before

Over the weekend, the price of Bitcoin started rising and is currently trading above $11,650.

Interestingly, it has been three months, 93 days exactly, since Bitcoin was founded in 2009, that it has spent above the current price of $11.5k.

More importantly, it’s the first time that bitcoin has been above $10,000 with realized volatility extremely low, as per Skew.

While trading in the green, the ‘real’ amount of the BTC traded in the past 24 hours has fallen drastically to just over $700 million.

This lack of volume could be on one side due to the lack of price action in the market and the weekend. On the other hand, the BTC balance on exchanges is on a constant decline. An analyst noted,

“More and more Bitcoin getting out from exchanges and most probably being transferred to non-custodial wallets. This suggests slightly lower liquidity and lower selling pressure going forward.”

BTC Balance on Exchanges
Source: Glassnode

According to Chain.info, in the past 24 hours, the biggest outflow of BTC has been recorded on OKEx of 6,269.

Last week, the exchange suspended all digital currency withdrawals after one of its key holders who has been helping the authorities in an investigation was unreachable.

Additionally, as per Coin Dormancy, a measure of “old hands selling out,” which usually sold the tops have been acting differently in the current cycle. “They sold the bitcoin bottom at $3-$4k, they are selling right now,” observed on-chain analyst Willy Woo.

Coin-Dormancy
Source: Glassnode

Another Bull Cycle in the Making

While Bitcoin continues to move out of exchanges in favor of cold wallet storage, for the first time, public companies are gobbling up more and more BTC by making it part of their Treasury. Grayscale, yet again, for the third time in a row, had a record inflow in Bitcoin.

According to Grayscale’s Q3 report, they bought 77% of all the BTC mined in the quarter, up from 70% in Q2 and 27% in Q1. Dan Tapiero, co-founder of 10T Holdings said,

“SHORTAGES of Bitcoin possible. Barry’s Grayscale trust is eating up BTC like there is no tomorrow. If 77% of all newly mined turns into 110%, it’s lights out. Non-miner supply will get held off mkt in squeeze. Shorts will be dead. Price can go to any number.”

Overall, the market is bullish on digital assets, as Pantera Capital wrote in its last week’s investor letter; besides the network fundamentals, all the money printing the Federal Reserve and other central banks are doing works in bitcoin’s favor.

“We strongly believe we are in the early stages of a large bull market fueled by both a powerful global macro tide and growing fundamentals in the underlying technology.”

Major Bitcoin Price Cycles
Source: Pantera Capital

In its decade long life, Bitcoin has gone through three major prices already and seems to be primed for yet another one.

“My intuition from trading waves for 35 years is we’re in for another one,” wrote Dan Pantera, adding, “it’s still a massive hype cycle roller coaster.”

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Author: AnTy

Ethereum Gets A New Smart Contract Language Dubbed ‘Fe’ Aiming to Attract More Developers

The Ethereum Foundation has announced a new smart contract language dubbed ‘Fe’ which is currently in development. This language derives its fundamentals from an Ethereum compiler known as ‘Vyper’; its code is written on Ethereum’s Virtual Machine (EVM) Rust programming language.

According to Ethereum software engineer Christoph Burgdorf, the development of Fe comes as a complement to solidity and will have a net positive effect on the ecosystem,

“The majority of applications deployed on the Ethereum network these days are written in Solidity. We believe the Solidity team is doing a great job and are clearly doing a lot of things right to maintain their current market share.

However, we also believe that more choices for developers will be a net positive for the ecosystem,”

Fe, which is named after the periodic table element Ferrum or Iron, pivots more towards the python programming language. Christoph said that this new language results from the demand for a simpler and more python-friendly alternative to solidity.

This new smart contract language is set to push forward the goals set out by Vyper compiler; they include accurate gas and transaction cost estimations. According to Christoph, the initial goal was to create a Vyper alternative, but the languages ended up taking different syntaxes. He added that,

“At this early stage in development, the differences between Fe and Vyper are still limited. For now, one will notice that Fe borrows a few syntactic properties from Rust.

It’s likely that Fe will begin to more closely resemble Rust as we continue to add new features.”

With Fe’s development ramping up in the recent past, the Ethereum Foundation has expressed optimism in integrating support functions to complete this new smart contract language. Christoph noted that it could be as early as this year, although the compiler will not yet be ready for production at the time,

“To be clear, the compiler will in no way be a suitable choice for a production ERC20 by that time, but we look forward to demonstrating the capabilities of Fe with such a well understood working example.”

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Author: Edwin Munyui

Bitcoin Giving Strong Bullish Signals, Markets to Roar Higher into Next Year

Today, Bitcoin is on the move, aiming for $11,000, currently trading around $10,915.

Adding to this bullishness is all the dry powder. $20 billion worth of fiat is sitting on the sidelines in stablecoins, which has doubled since May.

https://bitcoinexchangeguide.com/bitcoin-re-entering-the-intense-historical-trading-area-following-a-strong-uptrend/
Source: Coinmetrics

Moreover, Bitcoin Difficulty Ribbon Compression is trending up, breaking out of the green buy zone for the first time since the March sell-off.

“Historically, these have been periods characterized by a positive momentum indicating significant BTC price increases,” noted Glassnode.

Not to mention the number of daily active addresses that have been growing strongly this year, with the 180-day average just surpassing its previous ATH.

Meanwhile, in other markets…

While bitcoin started seeing positive moves last week, gold continued down only to make some moves today at 1,871, which is the exact opposite of the US dollar.

The greenback started uptrending right from the beginning of last week, going from 92.75 to today’s 94.74 last seen in late July before it started sliding down. Still, it is holding onto the 94 level.

When it comes to the stock market, it has recorded four straight weeks of declines on the back of a stronger dollar, which is putting pressure on the prices of many assets.

Today, the stock market is also trying to start the week on a green note, opening higher, but it’s to be seen if it will be able to catch up.

Get Ready for the upcoming mania

While Bitcoin (-6.56%), Gold (-4.79%), SPX (-5.77%), USD (-0.62%), and WTI (-7.86%) all are looking to end September on a red note, the next quarter is expected to bring back the greens.

Unlike September and quarter 3, the next quarter has historically been of the green ones. However, for a brief period of time, the US Presidential election will keep the markets uncertain with the major event this week involving the presidential election debate on Tuesday and a vote in the House of Representatives for a second round of pandemic stimulus before the House goes into recess on Friday.

But moving into 2021, things are expected to be even better.

“Impossible to be bearish when we are coming out of the biggest recession in history. The world economy will roar in 2021. Once the uncertainty driven by the US elections is behind us, we are once again off to the races,” said trader and economist Alex Kruger.

According to him, the governments will “overcompensate with ever-increasing fiscal and monetary policy stimulus.”

This means the continuation of a trend that started in April 2020 not only for the stocks but also for crypto, precious metals, the real economy, and others, he said.

The key issue is with the day long term interest rates when they “start rising fast, that’s when we have a major problem.”

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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