ETH/BTC Continues its Descent as Fees Drops Under $3, ConsenSys Launching MetaMask Institutional

Etehreum’s average fees have dropped lower than Bitcoin’s, while MetaMask Institutional comes as cryptocurrency funds, family offices, and financial institutions “increasingly” seek exposure to DeFi.

The price of Ether is subdued at around $2,500, following the 60% drop in its price from the all-time high of $4,380 last month. Ether actually more than doubled its price in just over a fortnight to hit this peak.

During the recent sell-off, Eth went as low as $1,725 on Coinbase.

Much like the weakness in the USD market, ETH is also feeling the woes against BTC.

ETH/BTC started its uptrend on March 29 when it was around 0.03. After two and a half months of a continuous uptrend, climbing to 0.082, a level last seen in May 2018, ETH/BTC topped out on May 15.

The subsequent sell-off during which ETH dropped harder than Bitcoin, as it usually happens – the opposite of a bull market where Eth price typically outperforms Bitcoin, ETH/BTC fell to 0.055.

As of writing, ETH/BTC is down at under 0.063 after climbing to 0.075 momentarily as Bitcoin leads the cryptocurrency space in strength in the current “crab” market, with El Salvador declaring it a legal tender acting as a likely catalyst.

Bitcoin leading the market is seen as a bullish scenario for the rest of the market because as long as Bitcoin maintains its strength and pumps while altcoins do not, the money will eventually rotate into them and pump them higher as we saw during the end of 2020 and into 2021. BTC 3.61% Bitcoin / USD BTCUSD $ 40,526.78
$1,463.023.61%
Volume 48.51 b Change $1,463.02 Open $40,526.78 Circulating 18.73 m Market Cap 759.27 b
5 h Bitcoin (BTC) Price Trading Analysis June 14: Market Outlook Bullish Continuation, Here’s Why 5 h Ethereum (ETH) Price Trading Analysis June 14; Market Outlook Is Slightly Bearish, Here’s Why 6 h Bitcoin Surges Above $41k — MacroStrategy, PTJ, FOMC Meeting, BCIE ‘Adopting BTC for Legal Use’

Seeking Exposure

The lack of price action has the Ethereum exchanges inflow volume reaching its lowest volume since November 15, 2020.

Akin to this absence of activity, the fees on the second-largest network have fallen to a single digit, last seen before the DeFi summer. The standard gas fee is currently a mere 5 gwei, as per ETHgas station, which skyrocketed to 2,000 gwei briefly for the first time ever during the market sell-off.

Average fees have gone down to $2.7, even lower than Bitcoin’s average of about $5, as per Blockchair.

The total daily fee on Ethereum is also on a downtrend, recording about 3.7 million on June 13, last seen in December, down from 117.2 million on May 11, according to Coin Metrics.

Amidst the lack of momentum, the popular Ethereum wallet MetaMask is launching its services for institutions to help them access and engage with DeFi.

With the decentralized finance ecosystem reaching past $40 billion, cryptocurrency funds, family offices, and financial institutions are “increasingly” seeking exposure to space, and through MetaMask Institutional, the company aims to enable funds to swap tokens, borrow, lend, invest, and interact with DeFi protocols and applications using its interface.

Prior to its commercial launch, ConsenSys is collaborating with a select group of partners, custodians, and professional trading firms to give feedback throughout beta testing.

“Ideal partners have customers already deploying capital into DeFi protocols,” it noted.

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Author: AnTy

Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum

Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum

Ethereum layer 2 scaling solution Polygon has been seeing a meteoric rise over the past few months.

The sidechain currently has over $9.5 billion of total value locked (TVL), up from just $1 billion less than two months back, with 3.71 million in ETH and 26.87 million in BNB. BNB -1.15% Binance Coin / USD BNBUSD $ 353.84
-$4.07-1.15%
Volume 4.49 b Change -$4.07 Open $353.84 Circulating 153.43 m Market Cap 54.29 b
8 h Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum 6 d ETH 2.0 is Already the Largest Proof of Stake Network and Vitalik isn’t Concerned About Competitors 1 w China’s Regulatory Crackdown Focused on High Leverage Derivatives Trading

This growth of Polygon has been the result of the Ethereum network working at capacity and rising gas costs. ETH -2.99% Ethereum / USD ETHUSD $ 2,519.04
-$75.32-2.99%
Volume 41.91 b Change -$75.32 Open $2,519.04 Circulating 116.21 m Market Cap 292.74 b
6 h NHL Team, San Jose Sharks, to Accept BTC, ETH, DOGE, And Alts Next Season 6 h Polkadot Ecosystem Hits a Milestone as Kusama’s First Functional Parachain Goes Live 8 h Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum

Up until now, there has also been a lack of layer 2 solutions, though popular ones Arbitrum and Optimism have yet to be user-ready. Layer 2 solutions are expected to bring the fees down on layer 1, Ethereum as well; however, according to long-term ETH investor Tetronode,

“L2 will cause L1 fees to go up, not down. Demand for L1 interaction is unlimited and only curbed by what the market is willing to pay. L2 settlements are valuable and worth almost any gas price. Arbing makes L1 fees dependent on value onchain, not TX throughput!”

As can be seen currently, the fees on Ethereum are extremely low, the gas price is actually set to tumble into a single digit, but this is actually indicating a lack of activity on DeFi.

The gas issue was also what led to the explosion of the Binance Smart Chain (BSC) in the DeFi scene. Hundreds of projects launched on BSC, and the network scaled from under a million transactions a day to more than 11 million at its peak.

image2

Polygon’s growth, in contrast, has been steady. Those already familiar with Ethereum went to the sidechain trying to escape the extremely high cost of transactions on the second largest network.

The layer 2 solution has its own variation of Uniswap, QuickSwap, which has risen in popularity. Its rapid growth can be attributed to the fact that it enables over 10,000 swaps, constantly indicating users make use of the lower transaction fees.

Additionally, the average value of swaps on this automated market maker (AMM) has risen from just $186 to the north of $30k at its peak.

image1

Popular lending protocol Aave which currently dominates the DeFi space, is also contributing to the share of transactions on Polygon. AAVE -1.24% Aave / USD AAVEUSD $ 331.35
-$4.11-1.24%
Volume 406.83 m Change -$4.11 Open $331.35 Circulating 12.79 m Market Cap 4.24 b
3 w Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More 3 w Software Provider Temenos Enables Crypto Trading for Banks 3 w Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov

Aave was integrated on Polygon for less than a quarter, but the average user on Polygon’s implementation of Aave does about 5 transactions on any given day, noted Joel John. The combined gas cost for supporting over 4,000 users as of early June was under $15.

In the meantime, Polygon’s $9 billion market cap coin MATIC is feeling the market woes, trading at $1.40, down 46% from its all-time high of $2.62.

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Author: AnTy

New NFT Marketplace, Metaplex, Targets Low Fees With Solana Partnership

New NFT Marketplace, Metaplex, Targets Low Fees With Solana Partnership

  • Even as the NFT frenzy seems to be tapering off, more protocols are launching online marketplaces for these unique digital assets.
  • The latest is Metaplex, built on the popular Ethereum killer Solana.

Metaplex Launches On Solana Network

In a Twitter post, Metaplex, a non-fungible token marketplace, announced its launch on popular proof-of-stake (PoS) protocol Solana blockchain.

According to Metaplex, digital artists, creators, and brands will easily mint and auction off their customized digital collectibles. Alongside this, Metaplex also adds a perpetual royalty functionality that will let creators receive a portion of their NFTs if they get re-sold on the secondary market.

Unlike most NFT marketplace like Nifty Gateway, owned by US crypto exchange Gemini, Metaplex is a decentralized protocol allowing any creator to open a digital storefront to auction their collectibles. Also, the minting will be done on-chain, making it easier to launch projects without any time lag.

Metaplex has received massive support from the crypto community, and the popular crypto exchange FTX would be a strategic partner through its FTX Pay infrastructure. This way, NFT enthusiasts can use the platform’s payment infrastructure in purchasing their desired digital collectibles.

NFTs are unique digital representations of tangible and intangible items that range from virtual real estate to sports memorabilia to even GIFs. They are also stored on the blockchain, making them immutable.

The NFT sub-sector has boomed in recent months, and it is gradually carving a niche for itself. National Basketball Association’s NBA Top Shot online marketplace is a popular place for fans to bid for in-game video highlights, and the sports franchise has made sales above $700 million.

Metaplex says it will not only facilitate the minting and sales of NFTs on the platform. According to the Metaplex Foundation, creators will permanently store their digital collectibles on decentralized storage protocol Arweave. According to Metaplex, this is meant to preserve the long-term viability of NFTs.

Providing details on cost, Metaplex says its NFT marketplace is a zero-fee platform, but creators will only pay a negligible minting fee under a dollar.

Metaplex: The ‘Shopify For NFTs’

According to Metaplex, it will not be auctioning only digital goods. A partnership with decentralized wireless protocol Helium will see the auctioning of NFTs representing ownership of physical Hotspots.

Popular music streaming platform Audius Music is also integrating Metaplex’s NFT marketplace on its platform. According to the announcement, digital artists on the Audius platform will mint tracks as NFTs.

Additionally, popular footwear digital collectibles brand will also open a storefront on Metaplex and enable users to create, collect, and mint one-of-a-kind sneakers on the Metaplex platform.

Speaking on the new entrant idea, popular artist RAC likened Metaplex to Shopify for the burgeoning NFT marketplace.

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Author: Jimmy Aki

Galaxy Leading the Ether ETF Race with Lowest Fees; Purpose Amasses Nearly 11k ETH

Galaxy Leading the Ether ETF Race with Lowest Fees; Purpose Amasses Nearly 11k ETH

All three of the Ethereum exchange-traded funds made their debut on the Toronto Stock exchange on Tuesday.

While the US has yet to approve a single Bitcoin exchange-traded fund, Canada has launched several and has now moved to Ethereum.

Not one but three Ether ETFs made their debut trading on the Toronto Stock exchange on Tuesday.

Purpose Investments, CI Global Asset Management, and Evolve Funds Group are the Canada-based asset managers who received approval from the Ontario Securities Commission last week.

These three firms also launched the Bitcoin ETFs, with the Purpose Bitcoin ETF (BTCC) being the first one in North America, which has amassed 18,525 BTC in just over two months.

The Purpose Ether ETF, the CI Galaxy Ethereum ETF, and the Evolve Ether ETF all three provide exposure to the price of the second-largest crypto ETH without owning the crypto asset itself.

Purpose charges a 1% management fee, and its product ETHH has accumulated 10,902 ETH already, worth CAD 33.33 million ($26.65 million).

“While bitcoin tends to get a lot of attention as it was the first major cryptocurrency, what ether and the Ethereum ecosystem represent is one of the most exciting new technology visions today in society,” Som Seif, founder and CEO of Purpose Investments said in a statement.

Evolve and CI have waived off their management fees until May 31 and June 15, respectively. The former charges 0.75%, and the latter charges 0.40% of the net asset value, NAV.

Evolve’s ETF (ETHR) has gathered about $2.769 million in assets under management (AUM).

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Author: AnTy

BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher

BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher

BNB price is soaring while several DeFi projects launch flash loans, margin trading products, and more on BSC, “offering strong competition for Ethereum.”

While heightened activity on the Ethereum blockchain ends up pricing out smaller users, sending the gas fees to crazy levels, Binance Smart Chain has cut down its fees in half this week in light of growing network usage.

On Wednesday, the BSC community urged the validator to decrease the minimum gas price amidst the BNB price surging to new highs above $400 and the blockchain itself growing fast. BNB 8.40% Binance Coin / USD BNBUSD $ 418.12
$35.128.40%
Volume 4.55 b Change $35.12 Open $418.12 Circulating 154.53 m Market Cap 64.61 b
4 h TrueUSD (TUSD) Stablecoin to Go Live on Tron Network Tomorrow 8 h BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher 10 h Crypto Market Is Getting Ridiculously Euphoric; Bitcoin Only Consolidating with Several Catalysts Ahead

“The greatest benefit of BSC rather than Ethereum network is lower transaction fees. We would like to decrease BSC gas fee for the future growth of BSC DeFi platforms,” wrote one user on the platform.

The same day the community celebrated the gas fees cutting down in half.

The fees on the network are rising fast with the usage with the highest so far 6,031 BNB collected in fees on Monday while it was keeping under 1k BNB up until Jan.

According to Cryptofees, Binance Chain is generating about $42k in average daily fees versus $25 million by Ethereum network. ETH 3.84% Ethereum / USD ETHUSD $ 2,088.41
$80.193.84%
Volume 25.32 b Change $80.19 Open $2,088.41 Circulating 115.39 m Market Cap 240.98 b
2 h Billion Dollar Stablecoin Fei Protocol Struggles As Token Drops Below USD Peg 4 h TrueUSD (TUSD) Stablecoin to Go Live on Tron Network Tomorrow 8 h BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher

Ethereum’s gas fees going through the roof is one of the reasons people are shifting to BSC.

According to a recent report by Dapp Radar, Binance Smart Chain has seen “tremendous growth in the DeFi sector” by allowing users to swap tokens relatively cheaply.

BSC has overtaken Ethereum in Q1 of 2021, with the former bringing in an average of 105,000 daily active wallets compared to the latter’s 75k.

“‘ETH is scaling; it’s coming.” Okay, I’ll be excited then, but BSC is doing 4x as many transactions as ETH today, and SOL is superior tech than ETH with a burgeoning developer community springing up,” noted trader The Crypto Dog. SOL -0.04% Solana / USD SOLUSD $ 27.03
-$0.01-0.04%
Volume 378.18 m Change -$0.01 Open $27.03 Circulating 268.42 m Market Cap 7.26 b
8 h BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher 10 h Crypto Market Is Getting Ridiculously Euphoric; Bitcoin Only Consolidating with Several Catalysts Ahead 1 d Tether (USDT) to Become First Stablecoin on Polkadot (DOT) And Kusama (KSM) Network

However, in terms of total value locked (TVL), Ethereum is keeping its leadership and “is still the most significant blockchain within the DeFi ecosystem.”

In the meantime, the Binance Smart Chain usage has exploded this year as the market rides the bulls, DeFi protocols, and NFT.

According to BSC scan, on April 7, BSC recorded more than 4 million total transactions, up from about 350k at the beginning of the year and just a few thousand in Sept. last year.

BSC is particularly getting a lot of traction in Asia as DeFi heats up in the region. The low fees is making it an attractive alternative to Ethereum.

Moreover, as DeFi goes multi-chain, popular projects like Alpha Finance, SushiSwap, and others are also launching on BSC. ALPHA -1.76% Alpha Finance Lab / USD ALPHAUSD $ 1.75
-$0.03-1.76%
Volume 89.16 m Change -$0.03 Open $1.75 Circulating 250.15 m Market Cap 438.47 m
8 h BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher 2 w Alpha Tokenomics Makes Value Accrual Integral to the Usage of Core Protocols; 75% of Fees to Stakers 2 w Total Value Locked in Binance Smart Chain (BSC) Surpasses $15 Billion; Brave Joins in with Wrapped BAT
SUSHI 1.37% SushiSwap / USD SUSHIUSD $ 14.41
$0.201.37%
Volume 213.89 m Change $0.20 Open $14.41 Circulating 127.24 m Market Cap 1.83 b
8 h BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher 9 h Coinbase Accelerates Altcoin Listing Ahead of Going Public, Bringing Millions of Retail to DeFi 3 d Force DAO, A DeFi Hedge Fund, Loses Over $375k in xFORCE Token Exploit

Today, Cream announced that it is bringing flash loans onto BSC and bZx is yet another one “excited” to launch Yield Farming on BSC — “the first DeFi margin trading product on BSC.” CREAM 8.96% Cream Finance / USD CREAMUSD $ 161.61
$14.488.96%
Volume 6.46 m Change $14.48 Open $161.61 Circulating 616.38 K Market Cap 99.61 m
8 h BSC Recording ‘Tremendous’ Usage, Fees Cut in Half as Transactions & Active Wallets Explode Higher 3 w DeFi “DNS Hijack:” Cream Finance Deployed to New Domain, PancakeSwap Regains Access 1 mon Rug Pulled on Users as DeFi Project Meerkat Finance Disappears Along with $31 Million

“BSC is offering strong competition for Ethereum in the DeFi ecosystem. Taking into consideration how extensively DeFi dapps are expanding to BSC, it might not take long for BSC to become a leader across all key metrics,” concluded Dapp Radar.

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Author: AnTy

Burn Ethereum Fees: EIP1559 Accepted into the London Hard Fork, Coming This July

Burn Ethereum Fees: EIP1559 Accepted into the London Hard Fork, Coming This July

“Always” burning or destroying the base fee will cement the economic value of ETH within the Ethereum platform and create a positive feedback loop for Ether price.

Ethereum Improvement Proposal (EIP) 1559, a significant and contentious update, is coming to the second largest network.

The proposal has been accepted to be included in the London hard fork, which is expected to come this July regardless of miners’ stance on it, according to the All Core Developers call Friday.

The hard fork will be packed with several other EIPs. Ethereum developers have also decided to include the “Ice Age” – delay to the difficulty bomb that will increase the mining difficulty along with it. According to Geth team lead Péter Szilágyi, the pairing will ensure no one would fork Ethereum without undergoing technical hurdles at the time.

EIP 1559 basically aims to have a fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with the congestion. The base fee amount, which is adjusted based on how congested the network is, the changes will be constrained, will be estimated by most users’ wallets, and a small inclusion fee which compensates miners.

Miners only get to keep the inclusion fee while the base fee is “always” burned or destroyed by the protocol so that only ETH can be ever used to pay for transactions on Ethereum, “cementing the economic value of ETH within the Ethereum platform.”

Given that miners raked in a record nearly $723 million in transaction fees in February, about 52.7% of miners’ total $1.37 billion revenue in the month, they have been gathering in opposition.

A minority pool Flexpool actually launched a campaign against the EIP with several others, including the majority pools like SparkPool and Ethermine also joining in. More than 60% of the network is against this proposal.

One of the biggest miners, F2Pool, which has about 10% hash power, meanwhile has announced its support of the proposal, saying that miners have been already benefiting from the increasing usage and resultant skyrocketing fees on Ethereum despite the rewards dropping from 30k ETH daily in 2016 to 13k ETH daily today. The mining pool also stated that it is important to side with the users and core contributors as history has taught some costly lessons in this regard (cue ETC).

Market expectation is another reason for siding with the proposal as from investors to community members; people have positive feedback for EIP-1559.

As we reported, the world’s largest digital asset manager, Grayscale defined EIP 1559 as a “positive feedback loop for Ether’s price.” And while ETH continues to outperform Bitcoin’s gains, up over 100% YTD to BTC’s 61%, Ether has been rather falling behind.

As of writing, ETH has been trading around $1,500, just 5.6% above 2017 ATH of $1,420 while BTC is currently up 140% from the $20k peak.

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Author: AnTy

Another One Bites the Dust; Ethereum’s Insanely High Fees Force A Project to Shutdown

Another One Bites the Dust; Ethereum’s Insanely High Fees Force A Project to Shutdown

As average fees on the second-largest network continue to rise, Unite.Community kills its project.

Crazy high fees on the Ethereum network continue to price out smaller users. This time, a small social network project called Unite.Community has been the victim of this.

“We are unfortunately no longer actively developing Unite,” announced the project on Twitter this week. The project blamed the high fees for its shut down, which has been making it hard to make the project a reality.

“Gas prices mean the original idea for Unite isn’t feasible and after several months of work and many conversations we’ve decided against building a social token platform on a L2.”

This isn’t the first time a project has shut down because of the extremely high fees of the Ethereum network.

Back in September, during the DeFi mania, which pushed the prices to even higher levels, Unilogin had to shut down because, at times, it was paying $130 to onboard new users.

Around the same time, Publish0x, a platform that paid writers in Ether tokens, had to first delay its payments and then switch to a monthly system of payment to avoid the high gas fees.

Interestingly, while in USD terms, the average transaction fees on the second-largest network continue to hit new highs, going to $24 earlier this week, in Ether terms, at 0.015 ETH, we are nowhere near the Sept. levels of over 0.03 ETH. Average gas prices that are currently keeping between 100-300 Gwie are also high but still far off of June 2020 levels when it was over 700 Gwei and above 535 Gwei in September.

These fees rise further when interacting with DeFi protocols and for faster transactions, which are making it harder for small users to actively use DeFi platforms. However, for miners, it means earning a fortune, already they have raked in $283 million in transaction fees in February so far. In January, Ethereum miners earned $325.45 million from transaction fees.

On Thursday, miners’ one-day revenue from fees was 28.45 million, hitting new records.

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Author: AnTy

Uniswap Generating More Network Fees than Bitcoin; Total Fees on ETH Reaches BTC All Time High

Bitcoin has been the leader in generating more fees than any other network. But that has only been up until June 2020, when decentralized finance (DeFi) mania started kicking in.

Today, this DeFi craze even saw popular DEX Uniswap beating Bitcoin in daily fees of $2.3 million, as per Cryptofees.Info. While BTC only had $1.8 million, Ethereum is unreachable by collecting $8.8 million in fees.

Uniswap, which accounts for 48.5% of DEX volume market share, even without the liquidity incentives, saw $12.7b in traded volume, $36.543 million in fees, and liquidity increased to $3.6 billion over the past 15 days, as per IntoTheBlock.

Another DEX SushiSwap had just under $1 million in daily fees, followed by Synthetix and Balancer, but they only had about $100k to $200k.

In the past week, Ethereum did more than 3x of Bitcoin’s 7-day average fees of just over $3 million, while Uniswap recorded $2.4 million.

“It’s the first DeFi protocol, but not the last. The key feature here is that fees in DeFi benefit not only miners but also LPs and token holders,” noted Santiago R Santos, a partner at ParaFi capital.

image1

Ethereum entered the space in 2015, and its daily total fees in USD surpassed Bitcoin’s several times since then. But it wasn’t until DeFi exploded that ETH was able to beat the world’s largest network by a wild margin.

During the peak of the 2017 bill market, Bitcoin did nearly $21.4 million in total fees, while at its peak, Ethereum did only $4.55 million.

But earlier in June 2020, compared to Bitcoin’s $383k in total fees, Ethereum recorded a whopping $3.55 million. From here, as DeFi gained more traction, so did Ethereum fees, and this gap between BTC and ETH fees continued to grow.

At the peak of DeFi mania in Sept. 2020, the Ethereum network was used so much that it became unusable as the average fees and gas prices continued to hit new highs. On Sept. 1st, the Ethereum network received more than $17 million in total fees compared to $1.48 million on Bitcoin.

Bitcoin overtook Ethereum for a brief period, a fortnight and a small margin, from late October to early November.

Since then, Ethereum continues to generate millions of dollars in fees every day, setting yet another new record at $21.38 million on Jan. 11, the day the crypto market saw a sell-off.

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Author: AnTy

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

“Defi has incredible potential,” says Mark Cuban but cautions that much like derivatives, “risk never leaves the system” here as well.

Ethereum is notorious for its extremely high fees when the network activity amps up.

In January, with ETH and DeFi tokens enjoying an uptrend and offering buy the dip opportunities, too much activity is making the platform costly to use. Popular DEX Uniswap, which has long been the biggest gas guzzler, has spent $28.3 million in gas in the last 30 days.

“The high gas costs are a direct result of *huge demand for trading on Uniswap,” said Hayden Adams, the creator of Uniswap, earlier this month when the fees skyrocketed yet again.

“Scaling is a huge problem. It absolutely sucks small transactions are sometimes priced out during volatility.”

But it looks like it’s not only the smaller users that are feeling the brunt of the hefty fees; even the billionaires are complaining. This billionaire, is none other than crypto skeptic Mark Cuban.

Cuban mentioned that gas was always an issue when Haralabos Voulgaris, Head of Quantitative Research at Dallas Mavericks, suggested there being real value in sending money over a decentralized, permissionless network. Cuban feels,

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive, and the number of non crypto options will increase.”

With the Shark Tank investor who finds more worth in bananas and compares crypto trading with the dotcom bubble,  name dropping popular DeFi project, AAVE got the CT excited AAVE 10.31% Aave / USD AAVEUSD $ 140.95
$14.5310.31%
Volume 509.28 m Change $14.53 Open $140.95 Circulating 12.2 m Market Cap 1.72 b
8 s Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
.

“One of the most high-profile billionaires trying out DeFi. I am liking this trend,” noted one such DeFi investor.

However, just because Cuban publicly doesn’t find worth in crypto doesn’t mean he isn’t trying things out, as he responded,

“I don’t think people realize I try to test and use all this stuff and have for years. I still have crypto from the early days of coinbase. I’ve never sold anything.”

As for decentralized finance itself, Cuban says, “DeFi has incredible potential.” Still, according to him, much like derivatives, “risk never leaves the system” as it faces the risk of a dominoes-like collapse. Cuban said on the prospect of Defi fixing the problem of underbanked,

“It’s a long way off for the unbanked. Most deal with cash or lack compute power so they need intermediaries. That’s costly. As DeFi grows away from overcollaterization, it will be interesting to see if access expands or contracts.”

But here, the CT takes over and points out that while “the system is only as strong as its weakest link.” We do, in fact, need better insurance models; the missing point is “unlike tradFi, DeFi is a perfectly transparent system that allows you to measure risk in real time,” said Santiago R Santos, a partner at Parafi Capital.

The DeFi space has grown to over $20 billion in total value locked (TVL) as the DeFi project continues to grow and rise in value. This week, the top US banking regulator actually talked about the opportunities of DeFi and regulators needing to be ready for it.

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Author: AnTy

What’s Happening on the Bitcoin Network Amidst The Red Hot Market?

Miners are reaping the fruits of rising BTC price and fees as blockchain activity continues to ramp up.

Bitcoin continues to smash new record highs, the latest one being $35k and nearly $36k. But this has just started and we have a long way to go.

This ATH came after the market had a 20% pullback on Monday providing a ‘buy the dip’ opportunity. “A large pullback of 20% – 30% should be expected, even in a bull market,” noted Arcane Research.

And this drop has been the result of sky-high funding rates and of course an overly confident market that led to $1.2b worth of longs getting liquidated in the BTC futures market — by far the largest daily liquidation since BTC started moving a few months ago.

After normalizing, these funding rates have started rising back up already.

image1

What’s just as interesting is the activity the largest crypto network has been seeing.

This price action has actually been on the back of the strong volume. Leading spot exchanges crushed all the previous records by having three days with over $10 billion in volume.

“$80+ billion in trading volume in the last 24 hrs on Binance. ATH x 2!” resulting in scaling issues, noted the CEO of leading spot exchange, Changpeng Zhao.

In terms of blockchain activity, Bitcoin active addresses grew by 9.3% week-over-week to start 2021, averaging over 1.1 million per day. These addresses are actually near all-time highs.

On January 3rd, the 7-day average reached 1.15 million, just shy of the all-time high of 1.18 million set in December 2017. The number of hourly active addresses (24h MA) actually just hit a new ATH.

Network security continues to look strong as well with the hash rate growing by 11.7%, again reaching for a new all-time high.

Bitcoin miners are currently enjoying revenue of $33 million per day, as per data source Glassnode. This has been thanks to the rising BTC prices and the average Bitcoin fees that have yet again surged to $11, moving up since Dec. 13.

Between the last halving and October, the average daily revenue was at around $10 million. It has only been within 5 weeks in late 2017 that this number has been higher.

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Author: AnTy