NY Court Dismisses Half of Class Action Plaintiffs’ “Baseless” Claims Against Tether and Bitfinex

NY Court Dismisses Half of Class Action Plaintiffs’ “Baseless” Claims Against Tether and Bitfinex

This week, Judge Katherine Polk Failla dismissed half of the class action plaintiffs’ claims that were filed about two years back against the cryptocurrency exchange Bitfinex and the sister company Tether, a stablecoin USDT issuer.

The Judge of the US District Court for the Southern District of New York issued a 127-page opinion regarding the dismissal of the complaint that included RICO claims as well, stated both Bitfenix and Tether on Wednesday.

As for the remaining claims, the court has raised substantial issues, making them “meritless.”

Bitfinex said,

“With half their case now dismissed, their primary expert debunked, and their lead law firm embroiled in its own internecine war – with its partners and former partners trading allegations of fraud and ethics violations – this case is doomed.”

It further said that they would not be settling the remaining of the “baseless” claims either as the litigation exposes the case to be a “clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem.”

In other news, on Thursday, the exchange halted trading for over two hours with its status page reading, “investigating issues with the platform.” The incident is now resolved after the company’s intervention.

Handling more than $715 million trading volume in the last 24 hours makes Bitfinex the world’s ninth-largest spot crypto exchange, as per CoinGecko.

The Fee Fiasco

Earlier this week, Bitfinex mistakenly paid $23.7 million in fees for sending $100,000. The transaction was made using a hardware wallet from DeversiFi, a non-custodial exchange that spun out of Bitfinex about two years back.

While, as we reported, the miner has given back $22.1 million, DeversiFi noted in its post mortem that it was due to underlying issues in the EthereumJS library coinciding with gas fee changes associated with the EIP-1559 upgrade in some transactions.

Combined with the fact that Ledger hardware wallet displayed fees in an unreadable manner,

“Only wallets with very large quantity of funds would be impacted, all other users would see a failed transaction.”

DeversiFi offered the miner to keep 50 ETH as a return fee. As for ensuring that it doesn’t happen again, the platform is working with the Ethereum community and Ledger to patch issues that may have contributed to this occurrence.

“On our platform we’ll be implementing stronger defensive measures when interfacing with external libraries, reviewing how we treat failed transactions and also enforcing a ceiling value for any max transaction fees as additional protection.”

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Author: AnTy

Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market

September is turning out to be a historically accurate month so far.

More than half of the month is gone, and Bitcoin’s price hasn’t done anything but either drop or trade sideways.

After starting the month above $47,000, the price of bitcoin went on to hit $53,000 before the first week of September was over. But from there, we only dropped lower to as low as $42,000 before even Sept. 8 was here.

Since then, not much has occurred with Bitcoin, keeping between $43k and $49k.

Like Bitcoin, Ether rallied from about $3,400 to just past $4k only to drop to $3k.

As of writing, BTC/USD is trading around $44,500 and Ether $3,100, with the total market cap also back around $2 trillion.

As we reported earlier this month, September has historically seen an average return of negative 7.8%. And currently, Bitcoin is about 4.2% down from where it started the month and Ether about 7.3%.

While the majority of the cryptocurrencies are down, some altcoins did outperform in the first half of the month, such as Solana, Avalanche, and Cosmos. SOL -13.93% Solana / USD SOLUSD $ 132.02
-$18.39-13.93%
Volume 5.61 b Change -$18.39 Open $132.02 Circulating 296.97 m Market Cap 39.21 b
5 h Bitcoin Price Flash Crashes to $5,400 on Solana-based Oracle Pyth Network Causing Liquidations 9 h JPMorgan says Ether Is Overvalued at Current Prices and DeFi’s Institutional Adoption Is Above 60% 11 h Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market
AVAX -19.02% Avalanche / USD AVAXUSD $ 57.01
-$10.84-19.02%
Volume 2.35 b Change -$10.84 Open $57.01 Circulating 220.29 m Market Cap 12.56 b
10 h Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 11 h Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero
ATOM -23.10% Cosmos / USD ATOMUSD $ 33.88
-$7.83-23.10%
Volume 3.47 b Change -$7.83 Open $33.88 Circulating 221.69 m Market Cap 7.51 b
11 h Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market 1 w More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits 2 w “Moon” Is Not the Limit for Bitcoin, says Chainalysis CEO But be Wary of Downside Risk & Level of Retail Mania

Dollar Is Showing The Strength

The crypto market, however, is not alone in seeing losses. S&P 500 has also been on a decline this month, having dropped 2.5% after hitting a new all-time high right at the beginning of September at 4545.85.

Tech-heavy Nasdaq, which also hit a new peak this month, has been down for less than a fortnight, down just over 2.3%.

As for the Dow Jones Average Index, it has slipped 3% since reaching a new high in mid-August.

While the stock and crypto market are both going down, the USD Index has been on an uptrend since last week to hit 93.432 on Monday, the second-highest level this year. The greenback aims for a 2021 high of 93.74, which it hit on August 20 and before that seen in early November 2020.

As the dollar shows strength, gold isn’t faring any better either. The bullion is trading at $1,758.71 per ounce, on a decline since early August 2020 ATH of $2,075 per ounce. Between March and May, the precious metal did get some relief rally of 14.3% above $1,900 but is now back down.

We Don’t Need Institutions Anymore

Yet another weekend of sell-off action saw $818.55 million of liquidations, with 40.86% of it happening on Bybit and 19.2% on Binance.

Due to this, open interest on Bitcoin futures dropped $1.34 billion in just two days, and Ether’s slid $360 million in four days.

While public markets are not doing well, showing a lack of institutional capital inflow, private markets see exactly the opposite.

In the month of August, the crypto and blockchain sector raised nearly $2.1 billion in private investment across over 100 rounds. The highest rounds at 65 were recorded in Seed and Pre-Series A but amassed the lowest amount at $190.6 million. The later stage gained the highest amount at $663 million but the lowest rounds, just 4.

“The overall funding environment for crypto this year – the depth, breadth, quality and size – is the single biggest factor that would lead you to believe the “four year cycle” that has historically driven crypto is likely coming to an end in real time,” commented Travis Kling who’s running Ikigai Fund, on the amount of capital being invested in the crypto infrastructure.

According to Three Body Capital, with crypto here to stay as people adopt it as money, crypto no longer needs institutional validation or capital as it is getting both from people, who are the ones that matter.

“TradFi institutions remain hamstrung by the very rules and regulations they put in place to cement their prominence,” it noted.

“We think crypto’s breakthrough moment is now in progress, finding product-market fit with the average person on the street, not in DeFi or trading, but in ‘normie’ things like gaming and art.”

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Author: AnTy

Visa Customers Spent Over $1 Bln on its Crypto-linked Cards in First Half of the Year

Visa Customers Spent Over $1 Bln on its Crypto-linked Cards in First Half of the Year

Payments giant Visa said that its customers spent more than $1 billion on its crypto-linked cards in the first half of the year, just as the payment processor has been making moves to make crypto transactions smoother.

The company said it was partnering with 50 crypto platforms that will allow its customers to convert and spend digital currencies at 70 million merchants worldwide.

This is yet another step in Visa’s acceptance of cryptocurrencies which announced in March that it would allow the use of USDC stablecoin to settle transactions on its payment network.

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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

NFL Player Russell Okung to be Paid Half of His $13 Mln Contract in Bitcoin

NFL Player Russell Okung to be Paid Half of His $13 Mln Contract in Bitcoin

While the offensive tackle for the Carolina Panthers finally got his wish to be paid in BTC, about 20 months and multiple all-time highs later, this is just the beginning as several other players have joined the program.

NFL player Russell Okung will now be paid half of his $13 million contract for 2020 in Bitcoin by Carolina Panthers, according to NFL Network’s Ian Rapoport.

The 32-year old has become the first NFL player to be paid in Bitcoin, who first shared his desire to be compensated in the world’s largest cryptocurrency in May 2019 and got his wish on Tuesday.

During these 20 months, the price of Bitcoin rallied more than 225% and hit several new all-time highs.

As for why not 100%, Okung quipped, “My wife isn’t fully on board yet.”

Okung, who is working as his own agent signed a four-year $53 million deal with the Los Angeles Chargers in 2017. In his last year of the deal, he will become a free agent from next year.

This arrangement is facilitated by Zap, a startup founded by Jack Mallers. Zap’s product Strike converts traditional paychecks into Bitcoin. Okung also teased about the service and tweeted that someone should tell Bitcoin skeptic Mark Cuban about it.

Mallers told CoinDesk that unnamed players on both the Brooklyn Nets and Yankees have also joined the program.

Okung has been a Bitcoin supporter for some time now who continuously endorses it on his Twitter and of course professional life.

“The next decade will be about bitcoin’s mass adoption,” he said today.

The two-time Pro Bowler, however, isn’t the first athlete from a major American sports league to explore cryptocurrencies.

Brooklyn Nets guard Spencer Dinwiddie tokenized his contract at the beginning of this year which first made news in September 2019. He also told Shams Charania of The Athletic and Stadium in May that he would hold a fan vote if a GoFundMe campaign he set up raised over $24.6 million in BTC.

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Author: AnTy

Bitcoin Shortage is Real; PayPal & Cash App Buying More Than 100% of All Newly-Issued BTC

Ever since the Bitcoin halving on May 11, a mere 900 BTC have been generated every day, half of what has been mined before that day.

At the time, BTC price was around $8,500, and legendary investor Paul Tudor Jones had just come out with his Bitcoin bull thesis calling it the fastest horse as an inflation hedge.

While Square’s Cash App and Grayscale have been all in Bitcoin’s business, eating up more than half of the bitcoin supply, things were relatively very smooth.

Now, nearly seven months following the halving, BTC’s price has increased 10x, currently trading around $18,500.

This jump in price in the backdrop of zero and sub-zero interest rates, money printing by the central banks, and their ever-expanding balance sheets has captured the interest of companies like MicroStrategy and Square, celebrities like Maisie Williams and rapper Logic, high-profile investors like Stan Druckenmiller, Bill Miller, JPMorgan and BlackRock changing their tunes on BTC – seeing it replacing gold.

“All the big hitters in the hedge fund world are coming out to endorse bitcoin now; it is entering the realm of the mainstream,” said Pendal’s head of fixed income, Vimal Gor.

According to him, “ultimately, the government bonds will turn into a “dead asset class,” and cryptos have a part to play there. He added,

“We have so many clients asking us about bitcoin and what to do and how to get access. Large institutions have stayed away so far, but high-net-worth clients and wholesale investors are leading the charge.”

image2

On top of this, PayPal launched its new service enabling its customers to buy, sell, and hold cryptos directly from their PayPal accounts.

With 300 million active users, PayPal offers great potential in crypto adoption. PayPal, Cash App, and Robinhood provide millions of people instant access to Bitcoin, Ethereum, and other digital assets.

Already, in less than a month, the volume has exploded on PayPal’s crypto infrastructure provider Paxos.

itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume up until PayPal got involved.

image1

“PayPal is already buying almost 70% of the new supply of bitcoins. PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins,” noted Pantera Capital in its latest blockchain letter.

If the growth continues, within weeks, PayPal will be buying more than all the newly-issued bitcoin. And this is just PayPal.

While demand continues to increase, this supply shortage will push the price of BTC higher, as we have seen in this quarter. Dan Morehead, CEO of Pantera Capital, said,

“When other, larger financial institutions follow their lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrates is at a higher price.”

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Author: AnTy

Cardano Hits Decentralization Milestone; 50% Of Blocks Come from Community Stake Pools

  • Cardano blockchain is in the final half of its journey to total decentralization.
  • Over 1,210 staking pools are live – surpassing the targeted 1,000 marks.

The lead development organization of Cardano, Input Output Hong Kong (IOHK), announced public staking pools are now validating over 50% of the blocks. The statement on Twitter shows that the blockchain is gradually moving towards total decentralization following the launch of the long-awaited Shelley mainnet earlier this year.

Cardano, a brainchild of Ethereum’s co-founder, Charles Hoskinson, is transitioning from a federated system operated by the IOG, the creators, to a fully decentralized blockchain controlled and operated by the public stake pools.

Following Shelley’s launch, Cardano began its journey to total decentralization with “the percentage of blocks produced by public stake pools increasing at every epoch until block production on Cardano becomes fully decentralized.” The statement reads,

“Currently, 50% of the blocks are [validated] and produced by the stake pools.”

At the Shelley mainnet network launch in late July this year, ADA (Cardano’s native token) holders can now delegate their tokens to community-run stake pools and earn rewards. Before, in the earlier centralized era of Byron, the IOG produced the blocks and earned rewards to ensure the continuous development of the blockchain.

At epoch 3, the Cardano blockchain introduced the first decentralized stake pools minting ADA token. Currently, at epoch 227, a total of 1212 public stake pools have joined the minting process, as of writing – surpassing the targeted 1,000 stake pools.

With the rise of community stake pools, IOG (federated IOHK nodes) will delegate a substantial stake to other community pools. This is an effort not to increase “D” and avoid the re-centralization of Cardano block production, Kevin Hammond, IOHK’s software engineer, stated in a blog post in August.

As of Friday this week, Cardano expects the d-parameter (decentralization parameter, whereby d=1 is completely centralized and d=0 is fully decentralized) to drop to 0.48 – showing the Cardano community will be running most of the block production.

Interesting times ahead for Cardano ahead!

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Author: Lujan Odera

Bitcoin Potential Investors’ Market Increases by 52% to 32 Million in 2020: Grayscale Survey

More than half of US investors are now interested in Bitcoin, up 19% from 36% last year, Grayscale’s latest survey revealed.

Interestingly, 83% of these who invested in the digital asset did so within the last year.

The Bitcoin Investor Study for the eventful year of 2020, in which the global pandemic was a key driver of Bitcoin investments, revealed 38% of Bitcoin investors invested within the last four months. Two-thirds of these reported ramifications of COVID-19 to be a factor in their BTC investing decision.

image1

The important driver of interest continues the perception of Bitcoin as an asset offering a large growth opportunity, at 59% this year up from 51% in 2019. Similarly, the ability to start with a small amount is another driver, among 65% of respondents.

82% of those who expressed interest in Bitcoin said they would pursue safe-haven investments during market volatility or economic downturn compared to 38% of those who were not interested in the leading digital currency.

The online survey of 1,000 US consumers between the ages of 25 and 64 was conducted between June 26, 2020, and July 12, 2020.

A Huge Opportunity

The survey further found that the market of potential Bitcoin investors has increased to 32 million compared to 21 million a year ago. Bitcoin is basically moving towards mainstream acceptance as familiarity with BTC increases from 53% in 2019 to 62%. Almost half of them believe it will be mainstream by the end of the current decade.

However, the common characteristics of investors interested in Bitcoin remain consistent with last year as “the more formal education an investor has, the more likely they are to invest in Bitcoin.”

Still, there are twice as many (31%) male investors as females (15%). However, female investors that would consider bitcoin investment are up 4%, with 66% of those women interested in BTC would be more open to investing if they see evidence of a strong performance track record.

image2

“The fact that the majority of current and potential Bitcoin investors haven’t even reached their prime earning years yet, coupled with the $68 trillion wealth transfer set to take place over the next 25 years, reveals a potentially huge opportunity for those who see the possibility for long-term growth in Bitcoin,” concluded Grayscale.

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Author: AnTy

Survey Suggest 40% of Yield Farmers Can’t Read Smart Contracts; Still Pulling 500% Returns

A recent survey from Coingecko revealed that almost half of the DeFi yield farmers couldn’t read the smart contracts of the project they join. A majority of these yield farmers depend on auditors to monitor the security aspects of the project.

The survey revealed that 40% of the yield farmers could not read the smart contracts of the project they joined in; the report also revealed that the defi yield farming is dominated by males with 90% representation. It further showed that despite these yield farmers not able to read or understand the project, they still managed to make hefty profits; in fact, 90% of the respondents said that they had made a 500% return or more.

Yield Farming Dominated By Limited Users

The Coingecko survey found 1,347 respondents, out of which only a minor 23% of the respondents had participated in some of the yield farming, despite more than 80% being aware of the trend.

However, the most surprising aspect of the survey was that almost half of the respondents never read the code or researched about the projects they were participating in. This is extremely troubling, given the hype around the defi space. This trend could lead to a number of major scams arising; similar to the ICO era of 2017.

Coingecko, in its statement, noted that,

“All farmers should conduct their research before farming in any pools, as there are more copy-paste yield farming tokens that could potentially expose them to a greater risk such as code vulnerability or scams.”

Decentralized Finance (DeFi) has been the trend of the crypto town in 2020, where its market cap grew from a few million to over $15 billion in just nine months, and more defi projects have debuted given the rising hype around the space. People joining the hype wagon is understandable, but one should be aware of the risk factor involved. In fact, in the past couple of months, many meme defi projects have launched, managed to raise millions, see it’s market cap grow into billions, and make an exit scam.

All this happened in a matter of a few days.

The Coingecko survey report suggested that astonishing returns like the current times might fade away from the defi space as the hype fades out, but some projects would still allow for it to garner attention.

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Author: Rebecca Asseh

USD-Pegged Cryptos & BTC Continue to Rise in Contradiction to the Falling US Dollar

The US dollar is not having a good start in the second half of 2020.

The dollar index, which measures the greenback against a basket of leading currencies, has fallen 9.5% since the March high. July was the currency’s weakest monthly performance in a decade after USD fell to a two-year low.

Source: TradingView

This weakness has been tied to the market, expecting further easing of US monetary policy, a lack of agreement among lawmakers on further fiscal stimulus, and falling bond yields.

Dollar’s loss, however, has been turning out to be good for other asset classes. Gold has hit a new all-time high at above $2,000. Bitcoin is also up 58% YTD at around $11,400, and this could be the time to stack more sats. Trader Scott Melker said,

“This is arguably the most pivotal moment we have seen for the United States Dollar since it bottomed in 2008. This channel has been intact for over 10 years. If it breaks down, hide yo’ kids and buy a metric ton of Bitcoin.”

Bitcoin’s gains have also been attributed to the dollar’s fall, and the digital asset is further expected to benefit from USD weakness.

“If the dollar continues to depreciate, there is a high probability that Bitcoin will continue to rise,” said Jay Hao, CEO of OKEx.

Crypto also addresses frictions such as settlement and transparency, which were “assumed” to be “very hard to solve before,” said Ripple CEO Brad Garlinghouse. “Crypto is up 80% while USD is down 3% YTD.”

Fueling the Rise of Stablecoins

Another interesting facet seen in the crypto market while USD continues to lose its value is the increase in the demand of USD-pegged cryptos.

Stablecoins have had a rapid rise following the crypto crash in March, which was spurred by a massive sell-off in the global equity markets, which led to a huge rush into cash and a global shortage of dollars. Coin Metrics in its joint report with Bitstamp says,

“Moving into stablecoins allows investors to effectively keep money parked on the sideline without having to completely cash out into fiat currency and incurring fees. This rush to safety likely accounted for a significant portion of the increased stablecoin demand following March 12th.”

Stablecoins are back on the rise, with Tether in the lead, which added more than 400 million to its supply in just three days, to a total of over 11.5 billion.

USDT Supply
Source: CoinMetrics

Another driver behind this growth is the use of stablecoins as a medium of exchange, given their ease of international transfer. An increase in these types of payments could be due to hyperinflation in many fiat currencies following the March crash.

The transfer value of these fiat-pegged cryptos reached over $5 billion on July 27th, led by USDT-ETH, USDC, and DAI.

Stablecoin Transfer Value
Source: CoinMetrics

According to Coin Metrics, this continued rise in stablecoins is likely to help introduce more new users into the crypto ecosystem.

“Stablecoins could be the gateway that helps spur crypto’s global adoption, and boost usage of BTC and other crypto assets along the way.”

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Author: AnTy