Paradigm Launches Largest New VC Crypto Fund, Valkyrie and Coinbase Targets DeFi

Coinbase believes it “can bring billions of users to DeFi by making it easy to use” while Valkyrie launches a $100 million “On-Chain DeFi Fund.”

On Monday, San Francisco-based investment firm Paradigm announced that it is starting a $2.5 billion venture capital fund aimed at the “next generation of crypto companies and protocols.”

Coinbase co-founder Fred Ersham co-founded Paradigm with former Sequoia Capital partner Matt Huang which would be the largest new VC fund aimed at the industry, according to the Finance Times.

Launched during the bear market of 2018, the firm’s fundraising outruns VC giant Andreessen Horowitz’s (a16z) $2.2 billion fund earlier in 2021.

There has been a record-breaking venture capital raising activity this year, highlighting a continuing boom in the crypto industry.

“This new fund and its size are reflective of crypto being the most exciting frontier in technology. Over the past decade, crypto has come a long way,” Ersham and Huang wrote in a blog post on Monday.

The crypto investment of Paradigm involves both big and small, as much as $100 million-plus or as little as $1 million, and intends to continue to invest in startups with “just a glimmer of an idea” as well as later-stage companies.

Zeroing in on DeFi

Crypto asset manager Valkyrie Investments is also launching a $100 million decentralized finance (DeFi) fund next week. The fund is designed to give investors easy and safe exposure to the rapidly growing industry.

Last month, Valkyrie received approval from the US Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF) which would start trading on Tuesday.

Now, it is launching the “On-Chain DeFi Fund,” which is going live on Nov. 22 and targets accredited investors in the US and the majority of international countries. The Fund holds its assets on-chain, unlike Galaxy Digital’s recently launched DeFi tracker fund, which is managed passively.

This Fund will allow Valkyrie to participate in the upside of DeFi while gaining additional yield from lending, liquidity pools, farming, and staking in the DeFi ecosystem.

“We get the appreciation plus the compounded yield generated from on-chain DeFi participation,” Valkyrie’s Managing Director of DeFi, Wes Cowan, said in an interview.

The Fund will invest in most of the major DeFi protocols, including Ethereum, Solana, Avalanche, Binance Smart Chain, Fantom, and Matic.

When assessing the risk associated with DeFi investing, the firm’s investment counsel works to determine what percentage of the portfolio should be in stablecoins, which are also deployed on-chain to generate yield.

Cryptocurrency exchange Coinbase is also interested in DeFi and has divided its overall strategy into three “pillars” where the third one is about “crypto as an app platform” focusing on allowing users access to applications.

“We plan eventually to service third-party apps inside our main product and so that we’re going to be agnostic between a customer choosing a Coinbase product or a third-party DeFi product. We want to introduce and find the best product for our customers,” said CFO Alesia Haas while speaking at the fintech-focused event hosted by Citi.

As an app platform, the company will help DeFi in two ways — building tools to accelerate the builders in the ecosystem through Coinbase Cloud, an opportunity it expects to be large in the future as more companies want to offer crypto services to their customers, and helping with the distribution where it acts as a “bridge to DeFi.”

Coinbase believes it “can bring billions of users to DeFi by making it easy to use,” and both the exchange and DeFi “can and will successfully grow and coexist,” Hass said.

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Author: AnTy

Privacy Browser Brave to Integrate Solana as Default Support

Brave browser is making moves to integrate the world’s fastest blockchain to support its 42 million active users and 1.3 million verified creators.

Brave’s Integration with Solana

On Monday, November 8, at Solana’s Breakpoint conference in Lisbon, Brendan Eich, CEO and co-founder of Brave and Bat, and Anatoly Yakovenko, CEO and founder of Solana Labs, announced the proposed integration of Brave’s Web3 desktop and mobile browser with Solana’s blockchain in the first half of 2022.

The privacy-centric browser turned to Solana for default support due to the blockchain’s high speed and low transaction costs.

Brendan Eich made a detailed explanation, stating how both projects would work together to provide more convenient ways to support potential crypto users to harness digital assets.

“With more and more users and creators requiring tools for fast and affordable access to the decentralized Web, this integration will seamlessly pave the way for the next billion crypto users to harness applications and tokens.”

The privacy browser was initially working on the Ethereum blockchain, but the increased interest in crypto and DeFi resulted in high transaction fees on the ethereum network, causing a drawback for some users.

However, with Solana offering faster transactions of up to 2300 transactions per second (tps) for as low as $0.001-$0.005 per transaction, the platform will provide significant cost savings for Brave browser users and encourage potential users to make use of the Solana blockchain.

Following the announcement, Brave’s native ethereum-based token, Brave Attention Token, BAT, has seen a 25% bullish run in the last 24hrs, according to CoinMarketCap.

The Integration also proves beneficial for Solana (SOL) as it would enable Brave’s 42 million active users to access the new Solana decentralized applications (DApps).

The CEO of Solana Labs, Anatoly Yakovenko, emphasized that integration with browsers will enable decentralized applications to build more convenient web experiences.

A ‘Brave’ Future for Solana

As a result of the partnership with Brave, it is expected that more mainstream crypto users will become aware of Solana’s network in the coming months, thereby increasing its valuation in the long run.

With Solana, developers can access decentralized exchanges (DEX) for Solana swaps via mobile and desktop browsers, enable NFT support, and promote BAT usage by their peers.

Additionally, the Solana Network would be able to implement the Themis protocol developed by Brave, a significant milestone in BAT 2.0.

Brave continues to build more on its privacy policies as it is currently regarded as the premium choice in terms of privacy for access to Web3. With the integration, Brave mobile users will be able to access Web3 more securely.

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Author: Jimmy Aki

dYdX Records $6.5B Volume to Surpass BitMEX & Coinbase Driven by China Crypto Ban & Liquidity Mining

DYDX token surged past $22.50, making its airdrop worth $100k. However, the token holders do not get a share of the trading fees earned on the platform, which goes to dYdX Trading Inc and equity holders.

As China cracks down on crypto declaring virtual currency-related business activities, including the provision of services by overseas exchanges to Chinese residents through the Internet to be “illegal financial activities,” decentralized finance (DeFi) is gaining a lot of traction in the country.

One DeFi project, in particular, is enjoying increased activity; decentralized derivatives exchange dYdX.

“China’s strong regulatory policy may benefit DeFi applications such as MetaMask and dYdX,” said Wu Blockchain as it noted, “A large number of Chinese users will flood into the DeFi world… All Chinese communities are discussing how to learn defi.”

In the last 24 hours, dYdX perpetual recorded more than $6.5 billion in trading volume, according to Coingecko. With these numbers, dYdX has outperformed the popular centralized crypto exchange BitMEX, which saw $1.69 billion in volume and has reached closer to FTX and Bybit, seeing just over $8.5 billion each.

In terms of open interest, dYdX is in 14th place with $483 million in OI compared to Binance Futures’ more than $8.23 billion, which sits in first place and records $56.7 billion in volume.

Late on Sunday, dYdX founder Antonio Juliano shared on Twitter that five years ago, he left leading US crypto exchange Coinbase to eventually found dYdX, and now for the first time, his platform is “doing more trade volume than Coinbase.”

Coinbase, which is a spot exchange, recorded $3.1 billion in volume.

Besides China turning to decentralized exchanges, this growing volume could also be driven by all the hype going around the platform usage, creating a feedback loop and the liquidity mining programs currently underway.

Users who trade on the exchange get to earn tokens through this program. Token rewards are based on the total fees paid and OI on the dYdX exchange. The first epoch of this reward incentive program ends on Sept 28, and there are currently just over 3.8 million DYDX tokens worth more than $86.3 million in this reward pool for distribution.

Given that the value of the DYDX token is on the rise, this further fuels this frenzy of activity on the platform.

Up more than 91.5% since the weekend, the DYDX token today hit a new all-time high at $22.56 thanks to growing usage.

Launched earlier this month, the governance token which was airdropped to its users and for which United States’ users were not eligible is currently worth $100,000.

Currently, DYDX has a market cap of about $1.1 billion based on the circulating supply of 50.855 million DYDX, out of the 1 billion total supply.

Amidst the ongoing dYdX mania, the crypto community got to know that all the trading fees earned on the platform go to the dYdX Trading Inc. Equity holders of the DyDx Foundation actually earn a percentage of the revenues generated by the exchange.

Also, the token holders can’t vote for the fees to be shared among them because, according to the team, “trading fees aren’t part of the smart contracts owned by the token.” And there are no plans to do any token burns either.

In the past 7-days, dYdX earned $12.55 million in revenue, the fourth-largest, and $29 million in the past 30 days.

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Author: AnTy

Brevan Howard Ventures Deeper into Crypto; New Hires and Launching A New Division Called BH Digital

Brevan Howard Ventures Deeper into Crypto by Making a New Hire and Launching a New Division called BH Digital

The high-profile hedge fund is planning to increase its private and venture investments in crypto and further “significantly expand” its exposure to crypto-assets.

Hedge fund Brevan Howard has hired Colleen Sullivan, the chief executive of the digital arm of trading firm CME Digital, to lead its private and venture investments in the cryptocurrency market.

Sullivan will also chair the investment committee for a new strategy focused on crypto, according to the company’s statement. Brevan CEO Aron Landy said,

“Colleen’s exceptional track record in making highly successful crypto venture investments will be of tremendous benefit to Brevan Howard clients and underscores the firm’s commitment to rapidly expanding its platform and offerings in cryptocurrencies and digital assets.”

Brevan Howard Asset Management recorded 2020 as its best year since the hedge fund first began investing about two decades ago, and it looks like it is planning to deploy these funds into the crypto market.

The fund is launching a new business division, BH Digital, to manage and “significantly expand” its exposure to crypto-assets.

Famous for its bets on macroeconomic trends, Brevan is the latest high-profile hedge fund that is moving deeper into crypto trading.

According to an annual report by PriceWaterHouseCoopers, total assets under management of crypto hedge funds globally have about doubled to $3.8 billion in 2020 from $2 billion in the previous year.

“What was initially seen as something of a fad now appears to be becoming a more permanent structure of the financial landscape… and very much forcing the institutional interest we are now seeing,” said Stuart Cole, a head macroeconomist at London-based Equiti Capital.

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Author: AnTy

Vitalik Buterin Casts Doubt on Jack Dorsey & Mark Zuckerberg’s Influence on Crypto

Vitalik Buterin, the Russian-Canadian co-founder of Ethereum, has never been shy of making his opinions on crypto heard – no matter how unpopular they are.

Now, the developer is turning his focus on a seemingly growing wave; the entrance of social media platforms – and their founders – into crypto.

Vitalik Bites Back at Dorsey

In a recent interview with Bloomberg, Buterin shared doubts about the plans that Twitter CEO Jack Dorsey and Facebook founder Mark Zuckerberg have for the crypto space. Speaking with the news medium, Buterin was especially skeptical of Dorsey, who has stated that he plans to make Bitcoin more applicable to decentralized finance (DeFi).

Last month, Dorsey announced on Twitter that Square – his payment processor – plans to build a division that will focus on building DeFi infrastructure on the Bitcoin blockchain. In his tweet, Dorsey explained that the division’s objective will be to make it easier to create “non-custodial, permissionless, and decentralized financial services” on Bitcoin’s blockchain.

Since it doesn’t support smart contracts, the Bitcoin network is unable to compete with blockchains like Ethereum. Building DeFi on Bitcoin will need additional tools like sidechains and bridges to initiate smart contracts. But, Square hopes to break this barrier, further bringing Bitcoin to DeFi.

Buterin, whose work and company will be affected by this, is somewhat not a fan. As he explained to Bloomberg, the Bitcoin blockchain can work similarly to Ehereum for DeFi. But, it will have a much weaker trust model overall.

The Ethereum co-founder added that Ethereum already allows users to directly put Ether or an ERC token into smart contracts. To bring that into Bitcoin, Dorsey, and Square will have to create their dedicated system.

Dorsey has risen to be one of the harshest Ethereum critics. The billionaire has reiterated that he and Square will not invest in Ether, even though Twitter still just released 140 non-fungible tokens (NFTs) on Rarible – an Ethreum-based platform.

Dorsey further criticized Ethereum last week, claiming that the network is unable to “disrupt Big Tech” on its own. He did follow up by saying that his singular focus on Bitcoin isn’t necessarily a sign that he hates Ethereum; he just believes Bitcoin to have a stronger network and more potential for the type of disruption he envisions.

Facebook’s Trust Issues Still Haunts It

As for Zuckerberg, Buterin criticized the tech mogul and Facebook’s planned digital currency, Diem. Launched as “Libra” in June 2019, Diem works as a stablecoin whose value will be tied to a basket of fiat currencies. But, it has so far been met with significant pushback from regulators and policymakers.

Even after changing its name and making concessions, Diem is yet to see the light of day. As Buterin explained, there is a great deal of mistrust for Facebook, given the company’s many privacy indiscretions. So, building a currency is somewhat ill-timed at the moment.

Buterin further added that Facebook could build Diem on an existing blockchain. Of course, there’s little chance that Facebook will do so.

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Author: Jimmy Aki

Over 60% of Robinhood Clients Traded Crypto for the First Time in Q2

Robinhood is currently making more money from crypto trading than equities and options combined. While crypto revenue surged 4,560% from a year earlier, transaction revenue from equity was down 26.8% from 2Q20 and 61% from 1Q21, and for options, it was down 16.7% from 1Q21.

Robinhood Markets (HOOD) reported a 131% increase in its second-quarter revenue, having benefited from a surge in cryptocurrency trading on its platform.

Still, the company’s shares dropped and are currently trading at $49.80 after it warned investors that this crypto boom-driven jump in revenue might not last.

“We expect seasonal headwinds and lower trading activity across the industry to result in lower revenues and considerably fewer new funded accounts,” in the third quarter ended September 30, 2021, Robinhood said in a statement.

In its first earnings report as a publicly traded company, the online brokerage said revenue more than doubled to $565 million for the quarter ended June 30 compared to $244 million a year earlier.

Transaction-based revenue at $451 million formed the bulk of the investing app’s $565 million revenue in Q2.

And crypto revenue totaled $233 million in the second quarter, an increase of a whopping 4,560% from a year earlier. Crypto trading revenue was only $5 million a year ago.

A significant portion of this primarily came from Dogecoin (DOGE) alone, which accounted for 62% of cryptocurrency transaction-based revenue.

In the past year, crypto has grown to become 41%, from just 2% of Robinhood’s total revenue.

But even more interesting is the fact that over 60% of funded accounts traded crypto for the first time in Q2 as “Robinhood’s customers demonstrated significant interest in cryptocurrencies,” it said.

At this point, Robinhood is making more money from crypto trading than equities and options combined.

As a matter of fact, Robinhood’s transaction revenue from equity was down 26.8% from 2Q20 and 61% from 1Q21. As for options transaction revenue, down 16.7% from 1Q21 but still up 48.6% from 2Q20.

QoQ growth of average account size of the firm is flat at ~$4,500 but recorded an increase of 34.6% YoY while operating expenses climbed 169% YoY.

Despite this growth, Robinhood is yet to offer its users the options to move their crypto assets out of the platform. When asked about when the firm will provide crypto wallets, Chief Executive Officer Vlad Tenev said, “It’s something that our teams are working on,” adding they’re in particular demand among DOGE enthusiasts.

“The ability to deposit and withdraw cryptocurrencies is tricky to do with scale, and we want to make sure it’s done correctly and properly.”

Executives also said they would explore making more crypto assets available for trading, Round Up Investing, and offering retirement accounts.

“The heat is on for Robinhood to invest in crypto-trading products, including added crypto-wallet functionality and more coins to buy and trade, after the strong interest from users reflected in 2Q results,” noted Julie Chariell, Bloomberg Intelligence fintech industry analyst.

A large part of Robinhood’s transactional revenue actually comes from a practice called payment for order flow (PFOF). In this practice, rental brokers send customers orders to wholesale brokers instead of exchanges for a slightly better execution price and payments from the wholesalers in return.

The US SEC is scrutinizing this practice over concerns that it is a potential conflict of interest. Brokers may be incentivized to maximize their own profit by not sending orders to places where customers would get the best execution.

But Robinhood doesn’t expect PFOF to be banned, but even if it does happen, it said, it can find other ways to generate revenue.

Robinhood’s funded accounts reached 22.5 million customers as of June 30, compared with about 9.8 million a year earlier. Monthly active users increased 109% to 21.3 million, from 10.2 million in Q2 of 2020, while assets under custody jumped 205% to $102 billion during the same period.

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Author: AnTy

Bitcoin Shorts Fall While Institutions Wait In Cash After Basis Trade Evaporates

This weekend, the price of Bitcoin is making its way upwards to $34,500, but this has been on the back of even lower volume than the declining trend, given that it’s Saturday.

Bloomberg is currently looking at a key trendline that acted as a support for BTC price but is now struggling to break above. This flip, according to them, would be a bearish outlook unless prices can retake the barrier.

Originating at the March 2020 crash, the trendline acted as support as recently as May, when the cryptocurrency fell to about $30k. But to trader CL of eGirl Capital,

“The way ppl are positioned make me feels like we’ll never break sub 30k in a meaningful way (as in nuke to mid 20 and remain there).”

Meanwhile, despite the leading cryptocurrency still down about 48% from its all-time high in April, it is still up 19%, much better than gold, the stock market, or the US dollar.

Bitcoin’s sideways action is happening at a time when the US dollar is showing strength, keeping above 92 level. With this, US net shorts have fallen, for a second straight week, to their lowest level of $10.44 billion since April.

Meanwhile, in the futures market, indicators have bounced from recent lows, but a proper sentiment reversal is still not in sight.

In the week ended June 29, Bitcoin net shorts fell to 1,345 contracts from 1,528 the previous week.

When it comes to premium on major futures contracts, not much has changed, with those expiring at the end of September trading at a few hundred premium while the one with the December expiry has a premium of about $1,000. The increase in OI is also marginal. Trader CL said,

“BTC and ETH basis also look relatively bullish, as in I feel like a meaningful break sub 32k and we may start seeing consistent backward, which isn’t v likely since I don’t see a strong reason why this market should trade backward atm.”

As basis trade, the difference between spot and futures prices collapses, hedge funds are closing their positions and are back into cash. $200 million hedge fund, Nickel Digital Asset Management, run by Goldman Sachs and JPMorgan alumni, is one example.

This was to be expected amid signs that institutional investors are increasingly interested in the assets, said Anatoly Crachilov, the co-founder and the chief executive of Europe’s biggest regulated crypto hedge fund. Crachilov said in an interview,

“June will be remembered as a cash-rich, wait-and-see month.”

“The sideways market conditions throughout the month led us to exercise financial discipline and keep powder dry until risk/reward of re-emerging market opportunities warrant efficient deployment of capital.”

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According to OKEx futures data, BTC long/short ratio shows buying interest after it recovered last Friday and held up relatively well this week despite the recent price slide.

BTC margin lending ratio, which jumped to as high as 4.39 this week from last Friday’s 1.53 and is now at 2.82, also shows retail has started buying again.

Not to mention, a bill in Germany has taken into effect that indicates at least $13 billion in inflows, based on PWC hedge fund survey data from May. This is coming while banks are charging 0.5% on deposits. Crachilov said,

“The investment world has dismissed crypto on every leg down for the past decade, thus far to their detriment.”

“The most recent drawdown is ‘business as usual’ for anyone long enough in crypto business and with familiarity with Bitcoin’s polemical history.”

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Author: AnTy

Will EIP-1559 Get Implemented on Ethereum by The End of July?

Will EIP-1559 Get Implemented on Ethereum by The End of July?

Market participants are in favor of making this a reality while DeFi is busy making Ethereum attractive to the TradeFi people by pushing all their buttons.

The market is expecting EIP-1559 to be implemented on Ethereum by July 31, 2021.

According to the information markets platform, Polymarket, users are now pricing this event of happening at $0.71, up from $0.62, about 24 hours back. The volume on this market is under $75k.

Every Ethereum enthusiast and others are eagerly waiting for this update that will burn the fees paid in ETH. By making Ether a deflationary asset, it is expected to create a positive feedback loop for its prices.

As for the gas fee itself, which eclipsed 2000 gwei briefly on Balck Wednesday, layer 2 solutions are coming up to relieve the users of these eye-watering high numbers.

Ethereum layer 2 scaling solution, sidechain project Polygon is one such example with over $10 billion in TVL. The excitement around these solutions and low fees is evident from the fact that MATIC token is the best performing coin this year, recording gain in five-digit percentage gain. MATIC -18.79% Polygon / USD MATICUSD $ 1.49
-$0.28-18.79%
Volume 3.7 b Change -$0.28 Open $1.49 Circulating 6.16 b Market Cap 9.15 b
8 h Will EIP-1559 Get Implemented on Ethereum by The End of July? 2 d Polygon Surpasses $10 Billion in TVL as MATIC Emerges the Winner in Bloody Red Market 3 d Only 1% of Ethereum Addresses Are Currently Using DeFi: ConsenSys Report

Arbitrum and Optimism are two other big names that are expected to change the game.

These layer 2 solutions will take the DeFi space to another level, marching towards $100 billion in TVL.

Its market cap has already surpassed these numbers, and following the recent sell-off, it is now aiming to hit a new ATH at $150 billion.

The DeFi sector, which continues to grow at a fast pace and will only gain speed with the layer 2 solutions, also emerged as the winner during the recent market volatility.

As we reported, DEXs are recording a collective volume of more than $100 billion in May, the height of the volume milestone hit on Black Wednesday, the day decentralized exchanges had their first combined $10 billion volume as well.

Unlike the centralized crypto exchanges, which continue to work like they do, going down on highly volatile days, DEXs have improved since the March 2020 debacle.

Maker, who struggled a lot during the March sell-off, didn’t have a single issue this time, thanks to its new auction mechanism. Lending protocol Aave had its biggest day of liquidations ever with many complications. MKR -21.05% Maker / USD MKRUSD $ 3,118.61
-$656.47-21.05%
Volume 365.48 m Change -$656.47 Open $3,118.61 Circulating 992.88 K Market Cap 3.1 b
8 h Will EIP-1559 Get Implemented on Ethereum by The End of July? 1 w 1.5 Billion New DAI Minted in The Past Month, Maker Now Earning $400k per day in Revenue 2 w “Institutional FOMO,” Record Volume Seen by Grayscale Ethereum Trust (ETHE) & Ether ETFs
AAVE -19.70% Aave / USD AAVEUSD $ 374.18
-$73.71-19.70%
Volume 1.22 b Change -$73.71 Open $374.18 Circulating 12.76 m Market Cap 4.77 b
3 d Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More 3 d DeFi Mania Sees Polygon Adds 75,000 Active Users in Seven Days; MATIC Price Soars to $2.19 4 d Software Provider Temenos Enables Crypto Trading for Banks

DeFi is helping make ETH attractive to the TradeFi people as it “is the type of investment that investment professionals love — disruptive tech, describable use cases, demonstrable traction … and cash flows,” said Hunter Horsely, Bitwise Investment CEO. It is basically pushing all the right buttons for the traditional market people.

Even DeFi projects are working towards it, “Aave Pro for institutions” is one such example.

The Ethereum ecosystem simply continues to get bigger and stronger with the only way to go from here is higher.

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Author: AnTy

Both Coinbase.com and Pro Now Support USDT, “Making Arbitrage Across Exchanges Faster”

Both Coinbase.com and Pro Now Support USDT, “Making Arbitrage Across Exchanges Faster”

For now, Coinbase only supports ERC20 USDT. The total USDT market supply meanwhile surges past 52 billion, up 147% so far this year.

  • Coinbase Pro is officially starting the trading of USDT.
  • The exchange is providing support for six pairs viz. BTC-USDT, ETH-USDT, USDT-EUR, USDT-GBP, USDT-USD, and USDT-USDC.
  • Along with this came the announcement that Coinbase.com is now also supporting USDT.

On Monday, the exchange said that the popular stablecoin will now be available on the main Coinbase platform along with its iOS and Android apps.

“Coinbase customers can now buy, sell, convert, send, receive, or store USDT,” said the exchange. USDT is available in all the supported regions except for New York State.

At this time, the exchange only supports ERC20 USDT running on the Ethereum blockchain, clarified Coinbase as USDT is issued on several blockchains including Tron, EOS, Liquid, Algorand, Solana, and other blockchains.

As of writing, nearly $27 billion USDT is issued on the Tron blockchain compared to almost $26 billion on Ethereum, as per the Tether website.

The total supply of the dominant stablecoin in the market has currently climbed past $52 billion, up 147% so far this year, as per CoinGecko.

According to Paolo Ardoino, the CTO of crypto exchange Bitfinex and its sister company Tether, the largest crypto exchange in the US supporting USDT is of importance because of arbitrage.

“Traders arb across multiple exchanges,” and speed of transfer and low friction are key to that, he noted.

Launched in 2014, Tether was created exactly for this use case, making arbitrage across exchanges faster, he said. Now, after seven years, “all exchanges will be all tethered by a common, high liquidity stablecoin.”

While the dominance of USDT is gradually decreasing in the market as more and more competitors like USDC and BUSD gain traction, Ardoino points out that it is still 4x the second biggest stablecoin USDT with a market cap of just under $15 billion, up 277% YTD. He added,

“Tether and Bitfinex are setting up a massive strategy (including spin-offs and investments) that will open mind-blowing opportunities for the next decade, and this might well be an understatement.”

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Author: AnTy

One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory

Despite the volatility this week, due to Coinbase making its debut on Nasdaq, the Bitcoin price is holding strong above $62,000.

Amidst this, over $623 million worth of BTC stolen in the Bitfinex hack in 2016 moved, representing 10% of the total 119,756 BTC originally stolen. This could have been an attempt to move unseen amidst all the worldwide frenzy around “COIN” listing.

After hitting nearly $65,000 on Wednesday, BTC took a hit to $61,500, which in part could be due to stolen bitcoin moving and in part COIN shares ending up lowering 24%. But the market expects BTC to be back to a new ATH before taking over $70k.

While anything can happen in the market, we are far from topping out based on past performance.

As CoinGecko notes in its latest 2021 Q1 report on the cryptocurrency industry, the ascent of Bitcoin in this cycle (2020- 2022) is mimicking the trajectory it took in the last cycle (2016-2018).

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As we recently reported, despite rallying 1,610% from March lows, due to a wave of institutional adoption amid a conducive macro-environment, BTC is only 225% above its 2017 peak of $20,000. By comparison, the 2017 peak was 1,578% above 2013 ATH, and the 2013 peak was 3,590% higher than the 2011 ATH.

Interestingly, unlike last year and the previous cycle, this cycle we see very low volatility despite bitcoin becoming a trillion-dollar crypto asset, making its way to a six-figure price.

One reason why bitcoin might continue its trajectory, according to the report, is inflation. After spending trillions of dollars, another $1.9 trillion bill was passed this week that will again pour more money into the market.

Moreover, with the Federal Reserve determined to keep interest rates low, there is a growing fear of rising inflation, a setup that has made Bitcoin an increasingly viable hedge against the inflationary macro-environment stated Coingecko.

As we have seen, Bitcoin continues to outperform all major asset classes, but while the stock market is doing good, making new ATHs, gold, and bonds (TLT) did not amidst a “rally” in the U.S. Dollar index and rising bond yields.

Bitcoin’s market capitalization is actually just 10X away from flipping gold.

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When it comes to the rest of the market, Ether is finally moving up, hitting $2,400 this week. But with rising prices comes congestion and fee spikes, making it not conducive for retail users to do even a simple swap using DEXs. ETH 3.60% Ethereum / USD ETHUSD $ 2,523.06
$90.833.60%
Volume 32.2 b Change $90.83 Open $2,523.06 Circulating 115.48 m Market Cap 291.37 b
3 h European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain 3 h Gitcoin Spins Out of ConsenSys After Raising Over $11M in a ‘Strategic’ Capital Move 4 h Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)

With ‘Ethereum-Killers’ racing to offer the cheapest gas fees, this turned out to be good for Binance’s BSC. SOL 6.43% Solana / USD SOLUSD $ 27.85
$1.796.43%
Volume 221.45 m Change $1.79 Open $27.85 Circulating 270.02 m Market Cap 7.52 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Solana’s Data Aggregator Step Finance Raises $2 Million in Private Sale 3 d BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’
BNB 0.93% Binance Coin / USD BNBUSD $ 544.29
$5.060.93%
Volume 4.59 b Change $5.06 Open $544.29 Circulating 154.53 m Market Cap 84.11 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week’s Victory; XRP Jumps On the News 1 d Binance Is Listing A Tokenized Stock of Coinbase, CZ says ‘Rooting for $COIN’
ADA 1.61% Cardano / USD ADAUSD $ 1.48
$0.021.61%
Volume 5.34 b Change $0.02 Open $1.48 Circulating 31.95 b Market Cap 47.39 b
6 h Cardano Releases Plutus Smart Contract Language in Preparation for Alonzo Hard Fork 6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 6 d Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

“Total TVL is growing, but BSC’s TVL appears to be stealing Ethereum’s thunder – in Q1 2021 alone, BSC’s TVL rose from 3% to 27%. Apr-21 Ethereum is likely losing ground because of rising gas fees which drives away retail users,” noted the report.

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Author: AnTy