Will Bitcoin Break the Streak? Historically, Red November Always Leads to Losses in December

With just one day left to end November, Bitcoin needs to turn 6.4% losses in the month to profit as it hovers around $58k while Ether surpasses $4,640.

Bitcoin is all set to end November at a red note, recording 6.4% losses in the month.

Meanwhile, the leading cryptocurrency’s year-to-date return is above 98% compared to Ether’s more than 500% gains. While Ether managed to be green this month, it has been barely at 6%.

As of writing, the price of Bitcoin is hovering around $58k and on an uptrend after hitting nearly $59k on Monday. Ether meanwhile went on to surpass $4,640 on Tuesday.

Much like Bitcoin, the leading global oil benchmark, West Texas Intermediate (WTI) also noted negative returns at -9.33% while up 61.56% YTD. Gold is barely holding on to its 0.13% gains this month while the US dollar jumped 2.11%, more than SPX’s 1.08% gains, according to Skew.

Coming back to the trillion-dollar leading cryptocurrency, historically, there has been twice that Bitcoin was red in November 2018 and 2019. And both the times, December was also a red one but of significantly less magnitude.

In 2018, a negative 45.3% performance in November led to -7.1% in December, and the following year, the losses were 19.5% and 5.1%, respectively.

But that was a bear market, and while many are fearful that we are entering the bear market, not everyone is convinced yet.

Additionally, green November has always resulted in a subsequent green month except for 2014 when it posted an 11.1% upside resulting in a loss of 16.6% in that December.

Now it remains to be seen if we break the streak or history ends up repeating itself.

For now, BTC is holding up just alright while ETH and BNB have found strength and are leading the market, while AVAX, which was the top performer until a few days ago, has taken quite the beating. BNB -0.35% Binance Coin / USD BNBUSD $ 623.00
-$2.18-0.35%
Volume 2.78 b Change -$2.18 Open $623.00 Circulating 166.8 m Market Cap 103.92 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 10 h Will Bitcoin Break the Streak? Historically, Red November Always Leads to Losses in December 1 w “Ethereum Is The Clear Winner,” says ConsenSys CEO as MetaMask Users Grow 38x in Last Year
AVAX 0.74% Avalanche / USD AVAXUSD $ 120.82
$0.890.74%
Volume 1.74 b Change $0.89 Open $120.82 Circulating 223.85 m Market Cap 27.05 b
10 h Will Bitcoin Break the Streak? Historically, Red November Always Leads to Losses in December 1 w DOGE Pumps on Elon Musk’s Enquiry to Binance, CZ Strikes Back 1 w “Ethereum Is The Clear Winner,” says ConsenSys CEO as MetaMask Users Grow 38x in Last Year

According to Delphi Digital, the DVOL index, which measures implied volatility (IV) on a 30-day forward basis, has gone down in recent days.

IV is a measure of market uncertainty, and when things get dicey, it tends to rise while it usually falls when things look unidirectional.

“Fatter, higher tails towards the left side implies puts are getting more expensive as participants turn their focus towards hedging spot or speculating on further downside,” it noted. “All in all, the market doesn’t look too hot here, but taking the long view, we believe any near-term downside volatility will wind up being rather short-lived.”

The first ten days are the focus right now, with the majority of the gains recorded by Bitcoin during this period of every month.

And with the last day of November here, risk asset investors are most concerned about the new Covid variant Omicron and rising rates and inflation. But the good thing, as Jeff Dorman, CIO at Arca, says, “they both can’t be true” due to them being offsetting forces.

“Tapering and the many hurdles ahead do not mean “end of the bull market,” yet hurdles do make it harder to push higher. Upwards & bumpy. That’s my view, which I’ve been hammering for quite a while. This is a great environment for good short-term traders,” commented trader and economist Alex Kruger.

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Author: AnTy

“This Isn’t Just BTC Anymore,” It’s Digital Assets Creating an Ecosystem of New Opportunities: BofA

“This Isn’t Just Bitcoin Anymore,” It’s Digital Assets Creating an Ecosystem of New Opportunities, says Head of BofA Global Research

Bank of America has finally launched coverage of cryptocurrencies due to “growing institutional interest” and the massive appetite among retail clients.

Candace Browning, head of global research at BofA Securities, shared in an interview with Bloomberg that the number of corporates mentioning crypto on their earnings calls has increased to about 147 in the most recent quarter, from merely 17 in the last year.

“This isn’t just Bitcoin anymore, this is digital assets and it’s creating a whole ecosystem of new companies, new opportunities, and new applications.”

The bank has published its first research coverage focused on crypto titled “Digital Assets: Only the first inning” while noting that the industry has grown to over $2 trillion with more than $200 million users. The “digital asset universe is too large to ignore” now.

BofA’s cryptocurrency research coverage for which the team was appointed in July is headed by former tech analyst Alkesh Shah, the bank said.

“This is growing, this is mainstream, and it’s not just Bitcoin.”

In other news, Inuit Inc., the maker of QuickBooks and TurboTax software which recently acquired privately held email marketing firm Mailchimp for $12 billion, has launched a new venture arm to invest in emerging financial technology, including crypto.

Talking about crypto’s role in Intuit’s future and just how excited the company is about the nascent asset class, Sasan Goodarzi, CEO of Intuit, told Bloomberg that “It’s important to intentionally place your bets on the future.”

He believes betting on emerging, and unproven trends is important because some will work and some won’t. Also, it gives an opportunity to pick great talent, he added.

“We believe crypto and blockchain will play an important role,” said Goodarzi, noting they are all about making sure that everything that they do is about making customers manage their cash flow, only to add, “but they (crypto) are going to play an important role.”

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Author: AnTy

Assets in Crypto ETFs Triple in Just Six Months, Cathie Wood’s Ark to Start Investing in Canadian Bitcoin ETFs

Assets in Crypto ETFs Triple in Just Six Months, Cathie Wood’s Ark to Start Investing in Canadian Bitcoin ETFs

Bitcoin bull Cathie Wood’s Ark Investment Management is allowing one of its funds to invest in Canadian Bitcoin ETFs.

For this, the firm tweaked the prospectus for its $5.7 billion ARK Next Generation Internet ETF (ARKW).

This modification was made in a late-Friday filing that included that it may invest in “other pooled investment vehicles that invest in bitcoin (CRYPTO: BTC), such as exchange-traded funds that are domiciled and listed for trading in Canada (Canadian Bitcoin ETFs).”

A similar move was made by the $1.3 billion Amplify Transformational Data Sharing ETF (BLOK), a blockchain-focused product that showed a tiny stake in three Canadian Bitcoin ETFs.

Ark investment isn’t new to Bitcoin exposure, however, as ARKW has 5.5% of its fund invested in the Grayscale Bitcoin Trust, the second-largest holding in the fund.

Ark Invest owns more than 8.5 million shares of GBTC, which is currently trading at a discount of 14.58%.

Interestingly, the shares of this $30 billion vehicle have been trading at a discount ever since the first Canadian Bitcoin ETF, Purpose Bitcoin ETF (BTCC), was launched in February. GBTC is now aiming to convert its closed-ended trust into an ETF and has been making a lot of hires for the same.

The US ETF market is $6.8 trillion, more than 90% of which is controlled by BlackRock, State Street, Vanguard, Charles Schwab, Fidelity Investments, Invesco, and investors and issuers are eagerly awaiting the approval of a cryptocurrency ETF to invest in.

But the US Securities and Exchange Commission (SEC) has yet to approve a single Bitcoin ETF though the first such application was filed by Winklevoss twins in 2013. Ark itself has filed for a Bitcoin ETF by teaming up with Switzerland-based 21Shares AG.

SEC Chair Gary Gensler recently did signal openness to a futures-backed ETF.

Canada, meanwhile, has approved and listed several ETFs for both Bitcoin and Ether on Toronto Stock Exchange (TSX).

Total assets in the cryptocurrency ETFs globally have actually tripled to $9 bln as of June from $3 bln at the end of last year, according to data from ETFGI, a consultancy. The sums committed to leveraged and inverse ETFs, which amplifies gains, meanwhile has risen to a record $109 bln from $79 bln at the end of 2019.

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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

Crypto Market Surpasses $2T, Asset Manager Sees BTC As A “Hedge Against Higher Inflation”

ADA is now leading past $2 and just 15.27% away from its peak, with Bitcoin and Ether still 28% and 25.3% off of their respective ATHs. The dollar is staying firm near its highest level in four months as the Fed sets itself apart from more dovish central banks.

Ahead of the weekend, the crypto market has started pumping yet again.

On Thursday, Bitcoin experienced a small drop in price as it fell to about $43,750. In tandem with BTC, Ether went to $2,972, and the rest of the crypto market went just under $1.89 trillion.

But already, the market is back up and running with Bitcoin past $46,350 and Ether at $3,230 on Friday. The total cryptocurrency market cap is now past $2 trillion, not far from the mid-May all-time high of $2.55 trillion as digital assets started rallying in the past two weeks.

Among the top cryptos, Cardano (ADA) is rallying spectacularly, now past $2 and just 15.27% away from its peak, in anticipation of the Cardano smart contract announcement. IntoTheBlock noted,

“The crypto-asset hits $2 for the first time since May, poised by a strong number of HODLERS. The number of addresses holding ADA +1 year just hit a new ath with 221.49k addresses, aggregating 4.46b.”

BTC & Ether Back in Action

Both Bitcoin and Ether are still 28% and 25.3% away from their respective ATHs.

As prices go upwards, sentiment is recovering, with funding rates turning positive after staying negative for an extended period of time. This implies traders are now leaning towards longs but still, the highest Bitcoin funding rate, as of writing, is 0.0289% on Deribit.

With this, the open interest on Bitcoin futures has risen to $16.18 bln, from $10.62 low on June 26, with the ATH at $27.68 bln, as per Bybt. As for Ether futures, it has nearly doubled to 8.65 bln, from $4.43 ln low, and is fast nearing its peak of $11.6 bln.

When it comes to Ether, the London upgrade last week has kickstarted the bulls into motion as EIP 1550 got activated. So far, in less than ten days, more than 37,000 ETH worth over $114 million have been burned.

This crunch in Ether supply is helping push its prices upwards, aided by the NFT mania. Last year was all about DeFi, but this year is about NFT, which, unlike the complex decentralized finance sector, has managed to take crypto mainstream.

Renewed Mania

NFTs and digital collectibles have experienced massive growth this year, and while the crypto prices were experiencing a drawdown between May and July, NFT activity has made its way back to the peak mania of March. Daily transfers of ERC-721 tokens are currently on their way to breaching ATHs.

CryptoPunks, a pioneering NFT project which is being sold for millions, along with Bored Apes Yacht Club and Meebits, will be auctioned by Christie’s next month. Recently, Three Arrows Capital also went on an NFT buying spree, mostly focused on CryptoPunks and Art Blocks, a platform for creating generative NFT art. CoinMetrics noted,

“With NFTs becoming a mainstay of the burgeoning digital economy on Ethereum, institutional players may be taking notice and contributing to this recent rise in volume and activity.”

Coming Up

Amidst this, firms continue to file for ETFs, with the 21st being an Ether ETF by Kryptoin. After SEC Chair Gary Gensler signaling more openness for futures-backed ETFs, four companies have filed for them in the past two weeks.

Just this week, asset manager giant Neuberger Berman who has $433 billion assets under management, gave its Commodity Strategy Fund the green light to invest in cryptos. The 164.4 million mutual fund, which invests in commodity-linked futures contracts, can now add exposure to Bitcoin and Ether through futures.

The fund’s portfolio managers see cryptos as increasing diversification and providing a hedge against higher inflation, a spokesman for the fund told Reuters. The spokesman added,

“Accessing these markets through exchange-traded instruments is a prudent way to gain exposure, which the portfolio management team will seek to do over the coming weeks and months.”

On the macro front, the dollar is staying firm near its highest level at 92.758 in four months as the US Federal Reserve starts discussing tapering with an announcement by the end of the year seen as a near certainty. While consumer price data indicates that inflation may be peaking, the wholesale price data underscored the strength of inflationary pressure.

As we reported, several Fed officials this week came out in support of reducing monetary stimulus, setting themselves apart from more dovish central banks such as the European Central Bank and the Bank of Japan.

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Author: AnTy

Binance.US CEO Brian Brooks Steps Down Just After Three Months Due to “Differences over Strategic Direction”

Binance.US CEO Brian Brooks Steps Down Just After Three Months Due to “Differences over Strategic Direction”

Binance.US CEO Brian Brooks is already stepping down from his position just three months after taking up the role.

Brooks announced his resignation on Friday in a tweet saying, “Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come!”

His resignation came amidst a series of compliance setbacks and regulatory scrutiny from all over the globe tied to the cryptocurrency exchange Binance. Binance CEO Changpeng Zhao said in a statement,

“I remain confident in Binance.US’s business and its commitment to serve its customers and innovate. As one of the largest cryptocurrency exchanges in the United States, Binance.US is poised to continue to grow and empower the future of finance. This transition will not impact Binance.US customers in any way as the company will continue to deliver best-in-class products and services.”

In a separate tweet, CZ wished Brooks the “very best in his future endeavors,” saying his work at its US-based entity has been “invaluable.”

Brooks was the acting Comptroller of the Currency during the Trump administration from May 2020 to January 2021, where he led efforts to provide regulatory clarity for stablecoin and digital asset custody. Brooks joined Binance.US in May, and before joining the regulator, he was the Chief Legal Officer at the competing exchange Coinbase.

“This reminds me of so many other stories of foreigners taking executive-level positions at Chinese companies. Just as an empirical fact, it frequently ends in disaster,” said Matthew Graham, CEO at VC Sino Global Capital, last month regarding the disappearance of Catherine Coley from the social media after Brooks replaced her as the CEO of Binance.US.

“Don’t be surprised if/when the Brian Brooks era ends in similar fashion,” Graham had said at the time.

Amidst this, the latest round of speculation in the market around Binance has been that it is “planning the ultimate rug pull” based on the fact that someone other than CZ is the beneficial owner of Binance, as narrated by a former Binance user who lost his funds on the platform during the May 19 crash when about $10 billion worth liquidation happened during which Binance went down.

But it seems more to do with how things work in China than the nefarious plan in action as claimed by Binance victim Francis Kim, whose Twitter bio says he’s here to expose the truth about the exchange.

Kim’s tweet about Binance “fundamentally misunderstands how business is done in China, where it’s quite common to have assets under other people’s names,” Graham said of the tweet.

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Author: AnTy

Macro Market Impact: Bitcoin, Stocks, Gold, and USD Reacts Ahead of FOMC Meeting

While PPI, just like the consumer price index, had its historical increase, retail sales figures actually fell in May, indicating the economy isn’t that hot. Markets are eagerly awaiting Fed chair Jerome Powell’s post-meeting news conference to decide where to next.

The Federal Reserve is to release new forecasts following its two-day meeting on Wednesday.

While some economists expect the Fed to mention tapering of the bond-buying program, much detail on the same isn’t expected.

Allianz chief economic adviser Mohamed El-Erian recently said in an interview that Fed officials had put themselves into a corner with their “backward-looking monetary new framework” that will make it very difficult for them to take their foot off the pedal.

Meanwhile, the producer price index (PPI), which measures the average prices of goods and services produced, rose 6.6% during the 12-month period ending in May.

Just like the consumer price index saw its biggest increase since 2008, the PPI figure was also the greatest in history ever since the Bureau of Labor Statistics first started calculating it in 2010.

The Fed, however, is maintaining that “inflation will be transitory” and that they’re “not thinking about raising rates.”

Based on annualized 2Y/2Y CPI reading, which gets rid of YoY denominator issues, “inflation is rising, but it’s nothing to get too concerned about yet,” also wrote Jeff Dorman, Chief Investment Officer at digital assets management firm, Arca.

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Interestingly, retail sales figures, which fell by 1.3% in May, showed that despite all the new money pumped into the market, the economy isn’t that hot. Analyst Mati Greenspan in his daily newsletter Quantum Economics wrote,

“This will have to be a topic of discussion in the upcoming Fed meeting tomorrow, where they will undoubtedly be asking themselves whether the juice is worth the squeeze.”

Effect on the Market

As we reported, the market is eagerly awaiting Fed chair Jerome Powell’s post-meeting news conference and how they react to the high inflation. Ahead of this meeting, Bitcoin has dropped under $39k.

S&P 500 and tech-heavy Nasdaq are unsure currently following their new peaks on Monday. Gold started the day by going down, continuing from last week, but is now seeing a slight rise in value at $1,860 per ounce. The US dollar index is also up above 90.5.

While “BTC exhibits a modest positive correlation to equity markets and gold. Its correlation to US 10y Treasury futures is very slightly negative,” noted Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX.

For this reason, statisticians often argue that BTC is not driven by macro, but “I would argue that while the daily correlations are obscured by crypto volatility, macro markets do have an impact. Particularly when there are substantial shifts in policy. Crypto has certainly enjoyed a significant tailwind from the policy response to the covid disruption,” he added.

According to hedge fund billionaire Paul Tudor Jones who is a Bitcoiner and is eyeing the meeting if the central bank officials talk down inflation and fail to take action, that would be a “green light to bet heavily on every inflation trade,” which involves BTC, gold, and commodities.

Raising interest rates, on the contrary, won’t be good for the stock market and even crypto. However, with crypto already having its 50% pullback, “digital assets are not nearly as overvalued as the stock market is right now,” said Greenspan.

With Bitcoin seen as a hedge against Fed money printing and the inflation, it causes, “if the Fed does crash the market, there’s a real chance that bitcoin, and possibly other cryptocurrencies, may be seen as safe havens,” Greenspan added.

Arca’s CIO is of similar opinion as he points out the great macro setup for digital assets — Fed balance sheet printing new all-time highs, low rates and declining US dollar, and the equity volatility index (VIX) back to post Covid lows.

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Author: AnTy

Rates Fall Off a Cliff Suggesting Risk-Off Appetite, But Lending Protocols Leading DeFi

Just like the rest of the cryptocurrency market, the decentralized finance (DeFi) sector is weathering the woes of the deep correction it experienced last month.

The prices of the majority of DeFi tokens are primarily still down 40% to 75% from their all-time highs.

The total market cap of the sector is currently sitting at around $90 billion, down from May’s high of $145 billion, as per CoinGecko.

With prices of coins lower, leverage going down considerably, resulting in funding rates going negative and the highest being 0.01% as per Viewbase, the yield in the market has been on a downtrend.

CME Bitcoin futures basis has been compressing since April. Back in May, it was 5% annualized in the three months bucket. “The 3m basis trade was ~40% at the April peak ex-CME. Now single digit, sub 10%,” noted Degen Spartan. “Pretty much all rates since April have trended lower.”

One potential reason for the same could be more and more people using this arbitrage opportunity.

“As the futures basis inevitably compresses, we should see actors looking at other opportunities for yield enhancement, for instance leveraging options,” stated data provider Skew, which was recently acquired by Coinbase.

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This has the interest rate in the DeFi market also falling substantially. As DegenSpartan further noted back in October, after DeFi summer ended, yields dropped much like the prices and continued lower in the following month as well. At the time, daily APY across different strategies went between 1.25% to 7.60%.

Stablecoin supply rates on Compound since early April have gone down from 6.8% to 2.8%; for DAI, it went from 8.57% to a mere 2.09% for USDC, and for USDT, it is now at 2.45% from 9.6% high two months back.

The demand for stablecoins was extremely high up until April, when the market was rallying hard, and people were borrowing them to go long aggressively. Now that the market is down, demand for borrowing stablecoin has gone down too, and so has the supply APY.

Also, the supply of stablecoins has risen by 41.5 billion in just the last two months, currently exceeding $105 billion in total supply. Not to mention, the regulatory crackdown from China is keeping things uncertain and users away from DeFi.

Not just DeFi, even centralized lending solutions have cut down their interest rates dramatically. As we reported, BlockFi has reduced its rates twice in just the first four months of this year. BlockFi attributed the slashing to market conditions which show low demand to borrow the crypto assets.

Interestingly, despite the low activity on DeFi, notional loan volumes have been rising. As we reported, liquidity on Aave has already risen to its elevated levels. Outstanding debt on Aave is also already at almost its ATH at $5.7 billion, the same as DAI’s $4.81 billion. However, Compound has a long way to go at just $5.33 billion as its ATH was at $9 billion.

Interestingly, the top three projects in the DeFi sector are all lending protocols, with Aave dominating the space, accounting for 14.65% share, followed by Maker and Compound, as per DeFi Pulse.

The total value locked (TVL) in the sector is trending upwards, nearing $70 billion but still down from an $89 billion high on May 12.

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Author: AnTy

Uniswap Collecting More than Double the Daily Fees Generated by Bitcoin

Decentralized finance (DeFi) project Uniswap’s V3 has achieved $1 billion volume in 24-hours in just a week of its launch.

In the past 24-hours, Uniswap v3 recorded $862 million in liquidity and $1.74 billion in volume. As of writing, the volume is at $916 million.

This surge in activity on Uniswap has been the result of Dogecoin-inspired meme coins such as SHIB, AKITA, and WOOF. With these coins not available on centralized exchanges, the retail crowd has been using the DEX to trade these coins.

Up until today, they all have been at the front page of Uniswap, accounting for most of the volume. Wrapped Dogecoin is now the only one left in the top 10 after Ethereum co-founder Vitalik Buterin dumped a ton of supply of these meme coins, which has been unwittingly sent to his address and sent the proceeds to the charity.

These retailers chasing the meme coins were the ones congesting the Ethereum network this time, unlike the Crypto Kitties in 2017, and sending the fees on the second-largest network and Uniswap flying.

This helped Uniswap surpass Bitcoin in daily fees. Compared to Uniswap’s nearly $9 million daily fees, Bitcoin only did almost $4 billion. The 7-day average fees for Uniswap and Bitcoin stand at $6.6 million and $5 million, respectively, as per Crypto Fees.

For four days in a row, the popular DEX has surpassed Bitcoin’s daily fees thanks to the retail’s dog meme mania.

Meanwhile, average fees on Ethereum hit a new ATH on Wednesday at $70, generating $107 million in daily fees with $65 million as the 7-day average.

Ethereum fees have gone 2x higher than the previous ATH with “increased competition for MEV should push fees even higher,” noted Lucas Nuzzi from Coin Metrics.

According to him, SHIB was the driver of this spike, but MEV had a clear role in pushing fees higher. MEV increases fees because bots are willing to pay higher fees to extract value and out-of-band payments decrease the certainty of what a “sufficient” gas price should be, leading to overpaying.

EIP-1559 that is coming with the London hard fork in July is expected to normalize some of this volatility.

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Author: AnTy

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood has rebalanced the company’s portfolio in favor of cryptocurrency stocks, yet again.

ARK funds bought 187,078 shares of Coinbase on Friday, adding to the 341,186 shares purchased on Thursday and 749,205 purchased on Wednesday. In total, Wood’s fund has 1,277,469 COIN shares worth almost $437 million at Friday’s closing price of $342.

The funds added to were the flagship ARK Innovation fund, the Next Generation Internet ETF, and the Fintech Innovation ETF.

Separately, it yet again sold 134,541 shares of electric car maker Tesla, valued at $99.5 million, from its flagship fund and Next Generation Internet ETF, but still, TSLA remains by far the firm’s biggest position by value on its major funds.

This big bet on Coinbase gives ARK more indirect exposure to cryptos on top of Tesla, which announced a $1.5 billion investment in Bitcoin this year and started accepting cryptos as payment for its cars.

Founded in 2014, Ark invests in companies involved with disrupting trends.

While up 6.6% from Thursday closing prices, COIN share prices it is still down 21% from its debut peak of almost $430, about 42% above the reference price of $250.

The uptrend in share prices came as the price of Bitcoin recovered after falling to $60,000, and Loop Capital Markets analyst Kenneth Hill advised clients to buy shares of the largest crypto exchange in the US. BTC -8.23% Bitcoin / USD BTCUSD $ 56,246.00
-$4,629.05-8.23%
Volume 97.65 b Change -$4,629.05 Open $56,246.00 Circulating 18.69 m Market Cap 1.05 t
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 10 h Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million 11 h BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000

The latest analyst to call for buy highlighted “lots of runways” for the company ahead of a “takeoff.”

“Coinbase’s market valuation may seem excessive to some given the prospects of increased competition in digital wallets business, which should rapidly eat into Coinbase’s sweet profit margins,” Ipek Ozkardeskaya, senior analyst at Swissquote, told Bloomberg.

“On the other hand, the competition is not here yet, while large trading volumes continue boosting Coinbase’s revenues for the moment.”

Besides the funds, retail traders also jumped in on COIN. Day traders purchased a net $57 million of shares during the debut on the Nasdaq Stock Market, as per VandaTrack.

Retail accounted for 7% of the $822 million individuals spent on all US stocks and ETFs on the day, making Coinbase the fifth-most popular debut with day traders since 2017.

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Coinbase was also the most traded stock on Fidelity’s platform on the day, with over 148,000 shares changing hands, nearly 9x more than Tesla.

The exchange going public has been seen as a watershed moment for the crypto industry, taking it further into the mainstream.

Coinbase CEO Brian Armstrong called this direct listing a “shift in legitimacy” for the entire industry.

“Crypto has a shot at being a major force in the financial world.”

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Author: AnTy