Euphoria is Back Ahead of ETF Listings: BTC Hits $63k, ETH Nearly $4k as NYSE Certifies “Approval for Listing”

Euphoria is Back Ahead of ETF Listings: Bitcoin Hits $63k and Ether Nearly $4k as NYSE Certifies “Approval for Listing”

OI on Bitcoin futures has hit a new ATH on both Binance and CME, while annualized daily basis on Binance is closing on 13%.

Bitcoin is just inches away from hitting its all-time high of $65,000.

On Friday, the leading cryptocurrency went to hit nearly $63,000 on Coinbase while going as far as $63,100 on Deribit. As of writing, BTC/USD is trading at $60,840, up 41.5% this month.

Much like Bitcoin, Ether is rallying and back to surpassing $4,000. Climbing to $3,970, Ether is less than 10% away from its mid-May ATH of $4,380. The price of ETH had briefly reached $4k in early September. ETH -0.96% Ethereum / USD ETHUSD $ 3,829.41
-$36.76-0.96%
Volume 16.5 b Change -$36.76 Open $3,829.41 Circulating 117.96 m Market Cap 451.7 b
10 h Euphoria is Back Ahead of ETF Listings: Bitcoin Hits $63k and Ether Nearly $4k as NYSE Certifies “Approval for Listing” 1 d Bitcoin Breaks Through $61,000 as Euphoria & ‘Greed’ Brings the Money Back In 1 d Indexed Finance’s NDX Is Down 92% from ATH After $16 Million Hack Sends it Crashing

While Bitcoin is in the lead, and Ether following, altcoins are lagging behind but still managing to see greens. This has the total crypto market cap making a new all-time high at $2.62 trillion earlier today.

Thanks to positive price active driving greed, the funding rate is also trending up ever since late September when it was negative. BTC’s annualized daily basis on Binance is closing 13%, but there’s still a lot of room to grow as, during the April peak, it went to 41.4%.

Open interest on Bitcoin futures is fast approaching mid-April ATH $27.38 bln, currently sitting at $22.85 billion. On Binance and CME, OI is already at a new high of $5.38 billion and $3.61 billion, respectively, and leading the futures market.

Ether’s OI is rising even at a much faster pace, sitting at $11.04 billion, not far from $11.55 bln high from early May. On CME again, OI on Ether futures is already at a new ATH of $1.01 bln.

Approval for Listing

All of this excitement is due to the Bitcoin Futures ETF finally starting trading next week. The market is extremely confident that the US will finally see a Bitcoin exchange-traded fund listing.

While there is no confirmation, ProShares is ready to roll out its fund, having filed paperwork. The fund will go by the ticker BITO with a 0.95% expense ratio and would only hold Bitcoin futures contracts, having removed the language for investing in Canadian ETFs.

“If anyone needs more evidence that this is happening on Tuesday. Proshares’ 8A just hit which registers the ETF’s shares with the SEC for trading on an exchange,” commented James Seyffart, ETF analyst at Bloomberg Intelligence.

The amended filing from ProShares indicated that the ETF would begin trading next week, which suggests the SEC is unlikely to block the listing at this point. NYSE Arca also certified “its approval for listing,” meaning the exchange will allow investors to trade the funds as allowed under federal law without the interruption of the regulatory agency.

Ten such applications for a Bitcoin futures ETF have been filed ever since SEC chief Gary Gensler first hinted at his support for such a product in August. In the weeks ahead, Valkyrie and Investor could also follow ProShares into the market.

Late on Friday also came the reports that the largest digital asset manager Grayscale Investments plans to file an application to convert its bitcoin fund into a spot ETF next week. GBTC is currently trading at a 15.12% discount.

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Author: AnTy

Ether Fees Skyrocket During Flash Crash Making it Deflationary, SOL Provides an Opportunity to Those Who Missed ETH

The flash crash on Tuesday saw Ether falling to $3,000 after hitting $4,030 just four days back. Momentarily wiping out all the progress made in the past month, Ether is currently above $3,400.

ETHBTC also went down to 0.0694 and is currently around 0.0737.

Before the crash, the amount of ETH open interest reached a new all-time high at $11.62 billion, growing by more than $3 billion in just 6 days of this month.

This rapid rise in ETH OI was likely aided by high amounts of leverage as the more the traders became bullish about ETH’s future, they began to take out leveraged long positions, anticipating that the price would continue to rise.

Before the crash, ETH perpetual futures funding rates ticked up to their highest levels since May. The fact that a growing amount of long contracts were willing to pay the funding rate in order to remain open shows a sign of positive market sentiment for the cryptocurrency.

image1

With ETH seeing significantly more futures trading volume than spot trading volume, like most cryptos, it made the crypto asset susceptible to these types of crashes, as was also seen in May.

But while leverage flushes are painful in the short-term, they are typically healthy over the long-term as some of the riskier contracts are flushed out of the system and reset to healthier levels creating a more solid foundation for the next leg up.

Unlike the prices, underlying fundamentals remain unchanged. Ethereum added more than 6.2 million addresses holding 0.01-1 ETH since the start of 2021, showing that user adoption is growing at a rapid rate.

But one effect of this crash was high fees on the network, which, while negative for the users, is good for the network ever since EIP 1559 implementation earlier last month.

ETH gas prices spiked trading activity, and transfers picked up during the sell-off. NFT mania meanwhile continued with the launch of a new project called “the Sevens.”

These high fees translated into negative ETH issuance during many blocks of Tuesday. This was the second deflationary day for ETH after Sept. 2nd when $54 mln of ETH was burned. So far, overall, 240,135 ETH has been burned worth $816 million.

The average transaction fee had surged past $63, near the May 19 all-time high of $70.83, according to Blockchair. As of writing, it is $38.47, while the cheaper and faster alternative Solana currently costs 0.000005 SOL per transaction worth $0.00080 at the current SOL price of $155.21. SOL 10.92% Solana / USD SOLUSD $ 192.18
$20.9910.92%
Volume 13.21 b Change $20.99 Open $192.18 Circulating 292.84 m Market Cap 56.28 b
8 h FTX Intensifies its Marketing Efforts with A New Ambassador and Shareholder, NBA’s Stephen Curry 9 h Ether Fees Skyrocket During Flash Crash Making it Deflationary, SOL Provides an Opportunity to Those Who Missed ETH 1 d Bitcoin (BTC) Finally Records Inflows After 8 Weeks, Solana (SOL) Remains the Favorite Altcoin

Ethereum competitor Solana also showed its resilience during this flash crash, yet again. Tuesday, SOL made a new all-time high at $195.5, up from $1.52 on January 1st. The same day, the price fell more than 31% to $134.4, only to surge to a new ATH at $200 on Coinbase.

Meanwhile, British banking giant Standard Chartered in its first report on crypto on Tuesday, valued Ether in a $26,000-$35,000 range in the long term adding, for Ether to get there, Bitcoin needs to first trade at $175,000. BTC -1.51% Bitcoin / USD BTCUSD $ 46,137.85
-$696.68-1.51%
Volume 48.96 b Change -$696.68 Open $46,137.85 Circulating 18.81 m Market Cap 867.88 b
6 h UK Bank Standard Chartered Publishes Bullish Ethereum Prediction; ETH to $35k If BTC Hits $175k 6 h LATAM’s Crypto Adoption: Panama Introduces Bill to Regulate Crypto and Recognize BTC and ETH as Payment Methods 9 h Ether Fees Skyrocket During Flash Crash Making it Deflationary, SOL Provides an Opportunity to Those Who Missed ETH

While Ether’s price prediction shows it having “greater” reward potential than Bitcoin, it also has “higher” risk in terms of “relative complexity” and “uncertainty” around its development, the report added.

On the other hand, according to John Street Capital, a lot of parallels have been drawn between SOL on Tuesday when it hit new ATHs and when ETH crossed $100.

“ETH found PMF w/ ICOs & for those who “missed” BTC. SOL is finding PMF w/ DeFi NFT’s & for those that missed ETH or remain ideologically flexible,” it said while noting that SOL is a much smaller percentage of Bitcoin and of the total market cap than Ether was while having “greater utility” than the second-largest cryptocurrency had in Q2 of 2017.

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Author: AnTy

Historically September Records Losses, But Will This Time Be Any Different?

August is coming to an end, and Bitcoin is trading around $48,000 and Ether around $3,200.

With just two days left in the month, the leading cryptocurrency is locking in just over 16% gains while being up 66.21% year-to-date. As for Ether, it had a 26.4% uptrend in the month, 40.60% in the quarter, and 333.50% in the year, so far.

Comparatively, gold which is traditionally a safe haven asset is barely in the green for the month while being down 4% YTD, at $1,814 per ounce. In comparison, the US dollar recorded returns of 1.65% and 2.83%, respectively.

When it comes to the stock market, the S&P 500 managed to go up 2.60% in August despite hitting a fresh all-time high at $4,513 on Friday. According to data analytics company Skew, the S&P 500 is also up roughly 5% for the quarter ending September and a mere 20% in 2021.

The summer saw a downtrend for cryptocurrency prices which fell during May, June, and most of July due to seasonal effects as investors sold in May and went away.

But since July low, crypto assets have recovered sharply, up more than 60%, with some altcoins like Solana (SOL) and Terra (LUNA) hitting new ATHs. SOL 9.35% Solana / USD SOLUSD $ 100.47
$9.399.35%
Volume 2.52 b Change $9.39 Open $100.47 Circulating 290.94 m Market Cap 29.23 b
10 h Historically September Records Losses, But Will This Time Be Any Different? 10 h Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH 4 d Chainlink (LINK) Blockchain Oracle Goes Live on Solana (SOL) Devnet
LUNA -0.76% Luna Coin / USD LUNAUSD $ 0.00
$0.00-0.76%
Volume 0 Change $0.00 Open $0.00 Circulating 1.71 m Market Cap 8.17 K
10 h Historically September Records Losses, But Will This Time Be Any Different? 10 h Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH 5 d Avalanche Captures Market’s Attention, 5x In A Month With Memes, Big Names, & A Massive Fund

Now, the market is waiting for the return of money in September, as the well-known financial-world adage goes. But according to monthly returns of Bitcoin, next month is not looking so good, with average returns showing a loss of 7.8%.

But given that June and July were down months and August has only started to recover, positive sentiments can further accelerate in September.

Not to mention, NFT mania is here with the floor price of digital art surging and bringing retail with it into the crypto sector. While NFT is driving the mainstream crypto adoption, institutions haven’t stopped coming either.

“There’s generally been pretty positive crypto sentiment recently: NFTs have helped lead the revival, and the crash from May is further in the rearview mirror,” said Sam Bankman-Fried, CEO of crypto exchange FTX.

Additionally, all the gains made in NFT and altcoins are expected to flow into the leading cryptos, sparking euphoria in the market.

According to Yoni Assia, founder and CEO of eToro, it is a “generation buying movement” and cited a confluence of events, massive fiscal stimulus, and rock-bottom interest rates worldwide. Combining this with the rising inflation as economics reopen, it’s “leading a lot of people to look for various types of investments,” Assia said.

“There’s no doubt that there’s a lot of excitement in crypto.”

“You can definitely see it within the numbers in the industry, whether it’s looking at total volumes or looking at growth of companies,” he said, adding that “we’ve seen a lot of exuberance in the market.”

A recent survey of eToro also found that about a quarter of its 6,000 investors surveyed own crypto, which rises to nearly 50% for the younger demographics. The survey further found that the average investor was also set to increase their crypto allocation with “significant” interest in altcoins in the coming months.

“With all of this money floating around, we should not be surprised that there are people paying exorbitant amounts of money” for digital assets, said Michael O’Rourke, chief market strategist at JonesTrading.

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Author: AnTy

Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH

Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH

Solana (SOL) has finally hit three digits to make a new all-time high while the rest of the crypto market is slow to move, with NFTs dominating the limelight and FOMO.

Late on Sunday, SOL surged past $100 to be worth more than $29 billion in market capitalization to become the 8th largest cryptocurrency, trumping USDC and Polkadot (DOT). DOT -3.39% Polkadot / USD DOTUSD $ 24.80
-$0.84-3.39%
Volume 960.74 m Change -$0.84 Open $24.80 Circulating 987.58 m Market Cap 24.49 b
10 h Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH 2 d Risky Assets Rejoice: Bitcoin & Gold Spike and Stocks Hit Record High while Dollar Weakens on Powell’s Dovish Speech 6 d Bitcoin Unable to Attract Funds, Altcoins Recording Inflows with Ether’s Competitor Seeing the Largest

As of writing, SOL is trading at $100.71, up 5,222% YTD and nearly 200x from the May 2020 low of $0.5.

Amidst this SOL summer, the Ether competitor started trending on CoinGecko, becoming the 2nd highest trending asset on the crypto data site and also the 2nd most trending asset on the financial communications platform Stocktwits this weekend.

Solana is also the 52nd most held crypto asset on cryptocurrency exchange Coinbase.

In line with the price, the total value locked (TVL) in the Solana ecosystem is also reaching new all-time highs at $3.05 billion, up from just a billion dollars in May.

Other coins in the Solana ecosystem are also enjoying an uptrend. In the past week, APEX, SOLPAD, and RAY rallied between 60% to 100%.

With Etherem’s recent network update in the form of a London upgrade with EIP 1559 done earlier this month, speculators are turning their attention toward rival blockchains and their tokens, said Avi Felman co-portfolio manager at BlockTower Capital, in an interview.

The faster and cheaper alternative to Ethereum, Solana, isn’t the only one pumping right now. Compared to Ether’s 336% YTD gains, Cardano (ADA) is up 1,505% and Avalanche (AVAX) 1,157%. ETH -0.15% Ethereum / USD ETHUSD $ 3,184.95
-$4.78-0.15%
Volume 13.04 b Change -$4.78 Open $3,184.95 Circulating 117.32 m Market Cap 373.65 b
9 h Canada’s Security Regulator Prohibits Regulated Crypto Exchanges from Trading in Tether (USDT) 10 h Historically September Records Losses, But Will This Time Be Any Different? 10 h Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH
ADA -2.27% Cardano / USD ADAUSD $ 2.81
-$0.06-2.27%
Volume 4.84 b Change -$0.06 Open $2.81 Circulating 32.15 b Market Cap 90.18 b
10 h Investors Turn to Ether Competitors, Solana’s SOL Hits 3-Digits to Mark A New ATH 4 d Crypto Accounts for 73% of eToro’s Total Trading Commission in Q2, “Strong Interest from Retail” 4 d Cardano Foundation Ramps Up Drive for Regulatory Compliance With Coinfirm Partnership
ADAX 19.38% ADAX / USD ADAXUSD $ 2.11
$0.4119.38%
Volume 38.24 m Change $0.41 Open $2.11 Circulating 0 Market Cap 0

Besides Solana summer, other coins trending up include Tezos, which jumped 50% in the last 7-days. Fantom, SafeMoon, Horizen, LUNA, and Decentraland are also up 20% to 50%.

Arweave (AR) is also up 50% during this period and 285% in August. This storage solution that offers data permanence among all the centralized and decentralized storage solutions is “the most feasible solution to make decentralised data storage gain wider adoption,” wrote Molly of eGirl Capital, which is invested in the cryptocurrency.

The VC firm’s website post further states that Arweave currently only accounts for 0.1% of the total decentralized storage and only 8% of its market value. However, they believe with its superior technology and design, “there is still a lot of room for Arweave to grow in the future.”

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Author: AnTy

Cream Finance Exploited Yet Again, Hacker Stealing $18.8 Million in Ether and AMP

Cream Finance Exploited Yet Again, Hacker Stealing $18.8 Million in Ether and AMP

Another day, yet another decentralized finance (DeFi) hack. This time Cream Finance has been exploited for $18.8 million.

Founded by Taiwan Taiwan entertainment star Jeffrey Huang, Cream Finance is a decentralized lending protocol operating on Ethereum, Binance Smart Chain (BSC), and Fantom.

Cream offers a wide range of tokens on its money markets, including stablecoins, interest-bearing stablecoins, DeFi coins, LP-tokens, and other cryptos. The protocol has $1.61 billion of total value locked (TVL) in it, near its June 15 ATH of $1.72 bln.

In reaction to the news of the hack, the token CREAM dropped more than 8% in value and is currently trading around $166.58, roughly 56% from its early February high of $374.

Back in February, the protocol was attacked by a flash loan and lost $37.5 million. This time, half of the amount hacked last time has been stolen. The team took to Twitter to share that,

“C.R.E.A.M. v1 market on Ethereum has suffered an exploit, resulting in a loss of 418,311,571 in AMP and 1,308.09 in ETH, by way of reentrancy on the AMP token contract.”

AMP, a digital collateral token that offers instant and verifiable collateralization for any kind of value transfer, was trading at just above $0.059 before falling to $0.484 in the early hours of Monday. As of writing, AMP is trading at $0.0555, down 54% from its mid-June peak of $0.12. Ether meanwhile is trading just under $3,200.

“We have stopped the exploit by pausing supply and borrow on AMP. No other markets were affected,” said the team.

The Cream Finance team is working with PeckShield, a blockchain security and data analytics company, to investigate the attack.

According to PeckShield, the hack was made possible due to a reentrancy bug introduced by ERC777-like token AMP. It was exploited to re-borrow assets during its transfer before updating the first borrow.

Further explaining the attack, the blockchain security team said the hacker made a flashloan of 500 ETH and deposited the funds as collateral. Then the hacker borrowed 19 mln AMP and made use of the reentrancy bug to re-borrow 355 ETH inside AMP token transfer, and then the hacker self-liquidated the loan. PeckShield said,

“The hacker repeats the above process in 17 different txs and gains in total 5.98K ETHs (with ~$18.8M). The funds are still parked in 0xCE1F….6EDE. We are actively monitoring this address for any movement.”

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Author: AnTy

Bitcoin Surges Past $50k on Low Funding But Institutional Investors Are More Bullish on Ethereum

Bitcoin’s breakout is “coinciding with the biggest increase in development activity,” while OI for Ether futures on CME has hit a new peak and has been on an uptrend since July 20.

The cryptocurrency market has been back on the move since before the weekend.

The overall crypto market cap is gradually climbing towards a $2.6 trillion all-time high from mid-May as it surges past $2.2 trillion on Monday.

This past week, the biggest contribution to this growth was made by Avalanche (AVAX), which rallied 160%. Audius (AUDIO), Arweave (AR), Near (NEAR), Fantom (FTM), Terra (LUNA), Thorchain (RUNE), Cosmos (ATOM), Solana (SOL), Cardano (ADA), Kusama (KSM), PancakeSwap (CAKE), and BNB recorded between 20% to 80% uptrend in the last 7-days.

As for the leading cryptocurrency, after falling just under $44,000, the price of Bitcoin went on to hit $50,000 late on Sunday or early Monday. BTC went as high as $50,600, a level that was last seen on May 15.

This breakout is “coinciding with the biggest increase in development activity… also since May,” noted analytics company Santiment. “If Github submissions continue pushing higher here, it will be a promising sign.”

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All the while, the funding rate on Bitcoin perpetual contracts remains subdued, with the highest at 0.0497% on OKEx. On Bybit, for USDT margin contracts, the funding is actually negative at 0.0347%.

Open interest on Bitcoin futures, on the other hand, is currently at $18.25 billion — adding $7.63 billion since June 26 low but still needs about $10.5 billion to hit the mid-April peak of $27.68 billion.

On CME, the OI is only at $1.75 billion, up from $1.11 bln low in July and still far off from $3.26 bln in late Feb., according to Bybt.

This is unlike Ether futures, where OI had climbed to a new peak at $682.68 million and has been on an uptrend since July 20, when it was at $292.58 million. First introduced in early February on CME, the OI on Ether futures was just under $608 million when it topped out mid-May.

“CME futures suggest that a bullish sentiment towards ETH is brewing among institutional investors,” noted Arcane Research.

CME Crypto Futures 3 Month Rolling Basis

Overall, OI for Ether futures keeps above $9 billion, adding $4.58 billion in the last two months and needing $2.6 billion to reach $11.6 billion ATH from May 10th.

As for price, Ether has gone past $3,365 for the first time since May 19. ETHBTC, however, has taken a drop to 0.065 as Bitcoin started rallying. Now the first resistance for ETHBTC is around 0.068, then around 0.070, and then above 0.077.

Working in Ether’s favor is that the percentage of ETH held by the exchanges has dropped to just 12.8%, the lowest in the past three years. Meanwhile, more than 7 million ETH are staked on ETH 2.0 and an almost record 9.7 million in decentralized finance (DeFi).

Adding to this supply crunch, 78,000 ETH worth roughly $245 million has been burned in less than 20 days since the activation of EIP 1559 with the London upgrade earlier this month.

With NFT marketplace OpenSea accounting for close to 10k ETH burns, non-fungible token mania is the biggest contributor to this rapid number of ETH moving out of circulation.

“NFTs may be one of the largest catalysts we’ve seen for ETH since the creation of DeFi,” noted Ethereum enthusiast Croissant. “They can bring both liquidity & value to previously intangible assets.”

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Author: AnTy

Asset Manager and Investment Firms Abruptly Withdraw Futures-backed Ether ETF

Asset Manager and Investment Firms Abruptly Withdraw Futures-backed Ether ETF, Another Bitcoin ETF Heads to the SEC

Investment firms ProShares and VanEck have withdrawn their Ether Futures ETF that was filed only just this week.

On Wednesday, VanEck filed for an Ethereum-based ETF that would invest in Ether futures, Canada’s approved and listed Ether ETFs, private Ether funds, and ETPs with exposure to ETH. ProShares also filed for an Ether futures-backed ETF called ProShares Ether Strategy ETF on the same day.

And now before the week was even over, both the firms abruptly withdrew their applications which according to Eric Balchunas, Senior ETF Analyst for Bloomberg could be propelled by the SEC.

“As long we ONLY see the Ether ones ejected, I’d say that’s decent news for bitcoin ETF. Sort of like them saying, look, let’s baby step this, only bitcoin rn. Stop exciting the crypto trade pubs with all these filings,” said Balchunas.

$400 billion asset manager giant Neuberger Berman which filed to have its $164 million Commodity Strategy Fund to invest up to 5% in Bitcoin and Ether through futures, filed a fresh one this week to only include Bitcoin and to “replace” the original.

Earlier this month, SEC Chair Gary Gensler made remarks that suggested he would look favorably upon futures-based ETFs.

Currently, there are still a dozen physically-backed Bitcoin ETF applications filed with the SEC along with several based on Bitcoin Futures contracts.

Amidst this, a new crypto ETF has been filed with the SEC.

Investment management firm AdvisorShares that offers a range of themed ETFs submitted an application for AdvisorShares Managed Bitcoin ETF.

This ETF will not invest directly in Bitcoin but in exchange-traded futures contracts on bitcoin and collateral, as per the filing. Morgan Creek Capital will serve as the sub-advisor of the Fund.

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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.

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Author: AnTy

Bitcoin and Ether Print Green Candles for 10 Consecutive Days, OI on FTX & CME Rises Sharply

The crypto market is enjoying the greens this week as both Bitcoin and Ether print 10 daily green candles in a row.

Ever since bottoming out on July 20, these crypto assets have been surging, with Bitcoin hitting $42,500, which was last seen on May 20, and Ether climbed to the June 16 level of about $2,484.

The total crypto market has now rallied to $1.68 trillion but is still down from $2.55 trillion in mid-May.

In the derivatives market, the open interest on Bitcoin futures is also going up, now at $14.25 billion, up from $11.27 from June 27 low. In terms of BTC, total OI is now at 341.57k, down from 375.74k BTC on July 17.

Interestingly, in the past 24 hours, FTX had the biggest increase of 15.29% in OI, now at 57.53k, followed by CME‘s 10.21% jump to 36.68k BTC. Leading crypto exchange Binance had one of the lowest increases of 4.71% to 80.91k BTC.

Less than a fortnight back, FTX had 42.5k BTC in OI compared to Binance’s 93.89k. This shows the shift in the market as FTX continues to get more popular and bigger while Binance faces regulatory scrutiny worldwide.

Also, during the recent short squeeze, more Binance traders got liquidated than FTX, much like always in spite of the former only pushing 1 liquidation per second and significantly underreporting the figures.

As for Ether, OI has recovered to $6.41 billion from $4.43 billion on June 26. In ETH terms, it is currently at 2.6 million ETH, while less than a fortnight back, it was 2.77 million. The latest increase in OI across the exchanges has been between 8% to 12%, except for CME, which only had a 2.36% rise in the past 24 hours, followed by Bybit’s 4.8%.

But FTX is clearly leading with its OI on Ether futures now at 3726k, while on July 17, it was 379.5k compared to Binance’s 626.92k, which is a long way to reach 730.97k about two weeks back.

The Macro

While the market is clearly recovering sharply, crypto market participants aren’t really sure if the bull run is continuing from the first half of the year after having a 50% to 75% drawdown in crypto prices. However, the confidence for the same is increasing.

But not only is the micro in favor, but the macro-environment also is not as dim with the US Federal Reserve discussing tapering.

The thing is, tapering might not happen soon, with GDP figures coming in at 6.5%, only slightly better than Q1 and well below the economists’ expectation of 8.5%. Unemployment also increased month over month at 5.9%.

For the first time, volume at Fed’s reverse repurchase facility also topped $1 trillion as investors and financial institutions continued to pour cash into the overnight window. Demand for the reverse repo facility surged as the US debt ceiling looms, the Treasury department cuts down on its bill issuance, and financial firms struggle to find places to invest their excess cash.

Meanwhile, in the current unchartered territory, household savings rates are plummeting. “In the early days of covid, a major point of inconsistent economic data in increasing stimulus + QE/OMO was the massive savings everyone had. Now they’re back to lows,” noted Split Capital.

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Author: AnTy

Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Used in Smart Contracts

Ahead of the London upgrade with EIP 1559 that will burn ETH and deplete Ether supply, as supply on exchanges continues to decline.

Trading above $2,300, Ether’s year-to-date gains are back above 200%, but the cryptocurrency is still down about 50% from its all-time high around $4,380 hit three months back.

Interestingly, Ether was traded more than Bitcoin in the first half of the year as the trading volume of the former grew faster than the latter, according to a report from Coinbase. BTC 1.71% Bitcoin / USD BTCUSD $ 40,007.16
$684.121.71%
Volume 38.54 b Change $684.12 Open $40,007.16 Circulating 18.77 m Market Cap 750.92 b
9 h A Shift in Momentum: Binance Yields to Regulatory Pressure, the Definition of HQ Changing for CZ Too 10 h US Lawmakers See All the “Flashing Warning Signs” of Cryptocurrency Putting USD at Risk 10 h Big Institutions Are Buying ETH for the First Time, Over 25% of Supply Already Used in Smart Contracts

Based on data from 20 major cryptocurrency exchanges worldwide, Coinbase found that the trading volume for Bitcoin for H1 reached $2.1 trillion, up 489% from $356 billion over the first half of last year.

In the same period, Ether’s total trading volume climbed to $1.4 trillion, up 1,461% from $92 billion in the first half of 2020.

According to Coinbase, the largest exchange in the US, this was the first sustained period of time ever that Ether’s trading pace exceeded that of Bitcoin.

Coinbase further noted that many of its largest institutional clients, including hedge funds, endowments, and corporates, increased or bought ETH for the first time during this period, believing the asset has long-term staying power tantamount to BTC’s.

Depleting Supply

Amidst this growing adoption, the most anticipated upgrade, the London hard fork with EIP-1559, is coming in about a week at block 12,965,000.

EIP-1559 is already implemented on the testnet, and its deployment on the mainnet will mean Ether will officially effectively become a deflationary asset as, according to this proposal, the base fee paid on Ethereum Network in ETH will be burned, decreasing Ether’s supply and boosting Ether’s price.

But already, ETH’s liquid supply continues to deplete.

Before even the supply of ETH paid in base fees could be burned, one-fourth of it is now used in smart contracts in terms of DeFi and staked at ETH 2.0, for instance. While the ETH locked in smart contracts is on an incline at over 25%, up from about 12% a year back, the supply held on exchanges that could be easily sold, is in decline at under 13.4%.

Ethereum blockchain is actually the biggest fees earner by a wide margin, which captured over $11 million in fees in the past 24 hours, followed by $3.1 million by BSC, while Bitcoin is recording under $634k.

In the last 365 days, Ethereum has generated $4.3 billion in total revenue compared to Bitcoin’s $1.1 billion at the second spot, as per Token Terminal.

On the third spot is the popular DEX Uniswap at $937.4 million, while its biggest competitor SushiSwap is at the fifth spot with $309.4 million, with BSC in between at almost $327 million.

Interestingly, as CryptoCobain explained in his recent episode of the UpOnly podcast, Ethereum generates more fees during bull runs as everyone is participating in the frenzy, clogging the network and pushing the fees skywards, which after EIP 1559 will means, more fees being burned, leading to even higher prices.

But during downtrends, as we saw recently, gas fees fall in single digits, which doesn’t help prop up its price at all.

ETH basically gets insanely bullish in bull markets and then crazy bearish in bear markets which makes it the best bet during uptrends to increase your wealth but not so much to protect your investment in downtrends.

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Author: AnTy