ETH Gas Prices Explode Higher After Ethereum Dumps to $480

Everything is going as expected and as seen by the crypto market so many times.

The market has been given a Thanksgiving sale as the price of Bitcoin fell hard, to about $6,300 level.

This obviously led to an even bigger sell-off in the price of the altcoins.

After the rally seen by the cryptos in the past few weeks, a correction was expected, and retail flows into the sector further meant “it’s time to be cautious.”

ETH Got Cheap Again

The second-largest cryptocurrency market cap went down to as low as $480.

Just the day before yesterday, ETH went as high as $620, a level that was last seen in May 2018, thanks to the confirmation of the ETH 2.0 launch on December 1st.

“While Bitcoin has understandably dominated market attention over the past number of weeks, Ether has been quietly building steam in its shadow,” said Konstantin Richter, founder of Blockdaemon. As ETH 2.0 comes closer, “market confidence is peaking,” he said.

After reaching the $600 mark, Etherem faced strong selling pressure. As per the IOMAP indicator of IntoTheBlock, “the strongest level of support for ETH is located between $531 and $547, where 499k addresses previously bought 6.43m ETH.”

As a result, on several of the top centralized exchanges, the funding rate for Ethereum got positive, meaning long traders started paying the shorters to keep the price of perpetual futures contracts near the index price.

Then last night, the price of ETH dropped more than 20% to $480, seen last Friday only.

At the time of writing, ETH/USD has been trading around $500 with $3.4 billion in ‘real’ trading volume.

And Network Becomes Too Costly

Not just ETH but DeFi tokens much like most of the cryptocurrency market are in losses; these cryptos are actually down 15% to 30%.

CREAM, up 14%, is among a handful of tokens that are in the green at the moment.

As a result of these losses, people are changing their positions, and a lot of activity on the Ethereum network is leading to a surge in gas prices.

“Gas has exploded higher since the flush. DeFi traders are active rebalancing positions,” noted trader and economist Alex Kruger.

Ethereum gas fees have surged to 180 Gwei, up 200% from yesterday’s 60.7 Gwei, as per Blockchair.

Earlier this week, the gas fees went down to 29 Gwei, declining from the Sept. 17 high of 539 Gwei when DeFi was topping out.

As such, average Ethereum fees went up to $7.48, an increase of 236% from yesterday’s $2.28. The all-time high in average fees was achieved on Sept. 2nd at $15.2.

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Author: AnTy

Tezos ‘Delphi’ Upgrade Makes it More Attractive For Defi Projects; Reducing Gas Price By 75%

Tezos has completed the Delphi upgrade, which many believe would make the blockchain a hub for defi projects. As per the official announcement, the Delphi upgrade has brought down the gas fees significantly, allowing users and developers to deploy more complex smart contracts on the platform.

The Delphi upgrade is believed to bring down the gas fee by a whopping 75% along with a four-times lower storage cost.

Tezos network makes use of gas just like Ethereum, but with a different implementation. While the Ethereum blockchain uses gas as a transaction fee, the Tezos network uses it as a limit setter for the consumption of computing power for a transaction. However, the transaction cost is determined by the amount of gas used for that transaction.

Gabriel Alfour, the lead developer at Marigold—and one of the core development teams that worked on Delphi, explained the importance of the lower gas fees and how it can propel the Tezos network to be a leading blockchain when it comes to the deployment of complex smart contracts. He said,

The motivation for such an interim proposal is straightforward. The size and complexity of smart contracts is limited by gas constraints, and so people attempting to build contracts with rich functionality have needed improvements to those constraints for some time.

Thus, such improvements are crucial to enable novel applications on Tezos that target areas like DeFi (“Decentralized Finance”), collectibles, and gaming.

Luckily, in August, we finalized some long-standing work on improving the performance of the Michelson type checker and interpreter, and on refining the cost model, thus mitigating the gas problem.

Growing gas fees due to the network congestion has been a substantial problem for Ethereums mainnet since defi gained traction, and its volume increased significantly. While the launch of ETH 2.0 is believed to solve many of the scaling problems for Ethereum, in the meantime, other blockchains such as Tezos can attract higher numbers of customers to its platform.

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Author: Hank Klinger

Anchorage & Tokensoft Collab to Bring Wrapped Coins to Ethereum; Zcash (ZEC) Is Up First

The growing popularity of decentralized finance (DeFi) has attracted many other digital assets to Ethereum, including Bitcoin, in a wrapped layer one solution. The latest to join the league is the privacy-centric coin Zcash (ZEC). The Wrapped Zcash is brought into the Decentralized ecosystem by Anchorage in association with Tokensoft.

Wrapped ZCash (wZEC) is the first asset launched by the “wrapped” project in association with Ethereum tokenizers Tokensoft and the qualified custodian Anchorage. The liquidity for the wrapped project would be offered by over-the-counter (OTC) liquidity provided by CMS Holdings.

However, Wrapped Zcash is not the first wrapped digital asset on Ethereum. Wrapped Bitcoin has been quite popular as the DeFi market continues to explode. A wrapped digital asset transfers the value of that particular digital asset onto the Ethereum blockchain by creating an ERC-20 token with a 1:1 value representation against the asset. Thus one Wrapped bitcoin would be equivalent in value to that of 1 bitcoin.

This allows for other digital asset holders to access the DeFi space and collateralize that asset instead of buying Ether and then collateralizing it. This also helps in increasing the liquidity of the DEX ecosystem.

Zooko Wilcox-O’Hearn, Zcash founder and Electric Coin Company CEO, commented on their recent association with Anchorage and Tokensoft and said,

“I’m thrilled that there is such interest, and that people can, and do, innovate and deploy extensions on top of Zcash without the Electric Coin Company’s knowledge or approval.”

“I also agree that it’s great for people to have more alternatives to centralized exchanges (CEXs), and the way that CEX’s have to comply with arbitrary demands from their banks.”

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Author: James W

Netherlands Central Bank (DNB) Approves First Crypto Exchange Under New AMLD5 Regulations

The AMLD5 regulations approved by the EU are considered to be quite strict, which cast many doubts over the future of digital asset firms operating in the region. However, Nederlandsche Bank NV (DNB), the Netherlands’ central bank, has approved AMDAX BV as the first digital asset firm to operate under its jurisdiction.

The authorities’ approval is a first of its kind since the latest AMLD5 regulations came into force. Many existing crypto firms had to either close their operations or move their business outside of the Netherlands. Deribit, a popular derivative exchange, was among those who had to shut down its operations because of the newly enforced laws.

As per an official briefing dated October 7, AMDAX BV, an Amsterdam-based crypto service provider, would now offer its services to the Dutch residents. The company in its official statement said,

“AMDAX B.V. has been registered by De Nederlandsche Bank (DNB) as the first provider of crypto services in the Netherlands. This enables AMDAX to process crypto transactions and store cryptocurrencies.”

Ever since the enforcement of newly updated anti-money laundering rules called 5th Anti-Money Laundering Directive, or AMLD5, companies must register with the regulatory body. Only after their approval, they can offer their services to the customers. The registration for support started in January 2020, and AMDAX B.V has become the first firm to get the regulatory nod.

AMDAX B.V to Cater to the Needs of Retail and Institutional Investors

AMDAX B.V would be catering to the needs of both retail and institutional investors. The digital asset firm started working towards AMLD5 compliance back in May. Valentino Cremona, AMDAX BV co-founder, commented on their regulatory approval and said,

“The market needs clear legal frameworks, such as the set of requirements of DNB. This registration shows investors that crypto is a mature asset class, not for criminals, but smart investors.”

“All crypto companies need to get this registration. Without it, they cannot operate in the Netherlands. The other Dutch crypto companies have up to November 21st to receive registration.”

The approval of DNB for AMDAX BV shows that digital asset firms can still get the regulatory nod despite the stricter regulations.

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Author: Hank Klinger

Trader Calls for an Extended DeFi Winter for the Best Performing Assets of 2020

The decentralized finance (DeFi) rage made many people in the crypto community very rich. With DeFi tokens surging by as much as 10,000% and more, they have become the best-performing assets of 2020, so far.

2020 saw everything from stocks, bonds, and commodities flying, hitting new all-time highs (ATH). But nothing compares to the success of DeFi.

In the macro, the YTD returns have been: gold 25% and S&P 500 2.62%.

In the crypto market, Bitcoin recorded 45.7% returns YTD. The center of the DeFi world, Ether, which according to Bloomberg strategist Mike McGlone, “appears to be maintaining its platform leadership status” meanwhile rallied 160%.

Now, in the DeFi market, the top year-to-date performers include Cream (+98,900%), Aave (+2,617%), YFI (+2,144%), Loopring (+953%), and Melon Protocol (+877%).

Crypto assets performed well during the Covid-19 crisis thanks to Bitcoin becoming a “refuge” like gold and offering a store of value amidst the concerns of fiat devaluation, weakening dollar, and inflation propelled by huge stimulus injections to counter the pandemic.

“A purely ethereal instrument performs well when the real economy is on pause,” said Marc Fleury, CEO of crypto asset management and fintech firm Two Prime.

As for DeFi solutions, they basically port financial functions like lending, borrowing, trading, earnings, and insuring on blockchains.

DeFi also led to a surge in interest in Ethereum contracts, with 5.2 million ETH now locked in the sector, as per DeFi Pulse.

“Retail cryptocurrency users have increasingly turned to derivatives to maximize their returns,” said Aziz Zainuddin, chief product officer of Fasset.

Time for a Break?

However, recently the growth of DeFi is slowing down. On Sept. 18, the DeFi collateral levels reached over $13.2 billion from less than $700 million at the start of the year.

This week, the losses recorded by DeFi tokens have the TVL of DeFi declining to $6.3 billion, currently around $8 billion.

While the deposits are struggling to get back up, the price of the tokens has been taking a hard beating for the past few days.

In the past seven days, DeFi projects have lost a considerable amount of their value, including Swerve (65%), Rune (59%), Balancer (32%), UMA (30%), YFI (30%), Bancor (25%), and Curve (20%) to name a few.

“Been expecting a DeFi mini-winter since two weeks ago, but the kind of obnoxious shit that happened last few days makes think we are headed for a much longer winter. Could easily be invalidated by price action but need to be mentally prepared whether you’re an investor or founder,” said entrepreneur and quant trader, Qiao Wang.

While the past week, the largest DEX by volume Uniswap launched its much anticipated token UNI, this week, a group of large accounts were caught dumping their coin.

This week, we also saw Curve fork Swerve’s TVL crashing from over a billion-dollar last week to a mere $44 million today.

But while the Defi bull market might take a pause, the builders aren’t stopping

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Author: AnTy

Wyoming Allows Insurance Companies to Invest in Bitcoin and Other Cryptos Starting July 1

Wyoming authorities have taken many positive steps towards the crypto market with its blockchain and crypto custody rules. The state also became the first one to pass a bill that gives direct property rights to cryptocurrency owners and might be seeing a crypto bank soon as well.

Now, in another first, they are making it possible for insurance firms to invest in Bitcoin and other crypto-assets by amending its insurance code, as per the reports. The new law will be effective from July 1, 2020.

“YES! Insurance cos in Wyoming will be able to invest in bitcoin & crypto as of 7/1/2020 (this was recently signed into law by Governor Gordon). Most likely insurers will offer this as part of variable life policies rather than whole life, since NAIC capital charge will be high,” said Caitlin Long, a Wall Street Veteran and the founder and CEO of Avanti, the Crypto Bank coming to Wyoming.

With this first provision of its kind in the nation, domestic insurers will be allowed to invest in digital assets. Digital assets are defined in Wyoming law as

“a representation of economic, proprietary or access rights that is stored in a computer readable format, and includes digital consumer assets, digital securities and virtual currency.”

As per this provision, “digital consumer assets” which are digital assets used or bought primarily for consumptive, personal or household purposes are excluded. These also include an “open blockchain token constituting intangible personal property” such as utility tokens.

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Author: AnTy

WHO Collaborates With Oracle, IBM and Government Agencies to Develop COVID-19 Blockchain Data Monitoring System

World Health Organization has teamed up with the likes of IBM, Oracle, Microsoft and many other government agencies to create a blockchain-based open data hub called MiPasa. The platform will verify various data and information related to the COVID-19 outbreak to ensure its validity and create plans to contain the pandemic based on the same.

The coronavirus pandemic has engulfed the whole world leading to chaos, fear, the uncertainty of the future and a stream of misinformation. The MiPasa platform created by Hacera has been built on top of Hyperledger Fabric with a range of data monitoring and analytic tools to test the available data on the outbreak and other information which would eventually lead to correct detection of virus infection hotspot.

Jonathan Levi, CEO of Hacera, believe MiPasa would be “COVID-19 information highway,” and precise analysis of the information and data available presently are more than enough to make the right decisions.

While creating an enterprise-grade blockchain-based system could take months, but tough times call for tougher measures and as a result, the collaboration of major players like Microsoft, Johns Hopkins University, China’s National Health Commission and many other agencies made it possible to create the MiPasa platform in no time.

IBM at the Forefront to Avail Data Analytics tools on MiPasa

IBM is at the forefront of the initiative and noted that after brainstorming about the idea for a data verifying and analyzing consortium, they all agreed that it is the need of the hour. Gari Singh, IBM Blockchain CTO noted,

“It’s not that we were trying to force blockchain into this solution, but we thought we need to replicate data, we need to have trusted sources, we need to make sure it can’t be tampered with.”

IBM has also pledged to bring ‘Call for Code’ initiative which would ensure in the rapid creation of various analytical tools for monitoring all kinds of data. Sing also said that coronavirus testing data is something they were looking to add to the platform in the near future.

The platform is also focused on the ease of use where someone can enter a set of information from a mobile device which then will be utilized by the platform to build an application for the same.

Data analytics can be a big game-changer in the present scenario and if the quality of the data input is consistent and correct, it would create a powerful insight into the spread of the virus, which then can be used to stem and contain the problem.

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Author: James W

Binance’s Educational Platform Opens Up Government Approved Office in Shanghai

Binance, one of the most popular crypto exchanges in the crypto-verse which also has many subsidiaries including Binance Academy (a blockchain and crypto-centred educational portal) is all set to open its first office in Shanghai, China. Changpeng Zhao (CZ), the CEO of the exchange confirmed the same on Twitter.

This can be seen as a major milestone for Binance given there have been many rumors of them unofficially running an office and even some reports of them being investigated by the authorities (which the exchange has denied time and again). CZ has been trying to strike balance with the authorities for quite some time now, but given China’s stance on crypto exchanges forced Binance to shift their operating base outside the country.

The Begining of a New Chapter for Binance

According to the local news report, the major milestone would see Binance Chain’s core team working with Lingang Xinyefang and Lingang Innovation Management College in order to set up a research institute in Shanghai province. The focus of the research institute would be to develop various use cases for blockchain technology, for which China seems to be really bullish.

Today marked the official signing ceremony where the local authority seal of approval took place and the possession of the office was handed over to Binance. While CZ has often propagated that in modern times physical headquarters and office does not make much of a difference given the technology has made it possible to function without the need of one. However, given China’s notorious and passive stance towards crypto service providers despite being bullish on blockchain make this event indeed historical for Binance.

Does Binance’s Office Approval Suggest China’s Softening Stance on Crypto?

The answer is a hard NO. China has been tip-toeing about their approval for crypto for quite some time, but it seems it would be quite difficult to see China’s softening regulatory stance on cryptocurrency. This has been evident on many occasions in the past, be it them calling Bitcoin the best use case of blockchain, in the wake of PM’s call for accelerated blockchain adoption, but the very next day they took a U-turn and said that Bitcoin still has many flaws which would be overcome by their national CBDC.

Very recently they have blasted cryptocurrencies for being volatile and how it could never become an instrument of finance. Even the recent Binance approval for research is strictly for blockchain purposes only. While there is still no confirmation on the launch date of national digital currency, which many speculated to be in line for launch since October 2019.

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Author: James W

Imposed Quarantines and Social Distancing Leads To A Surge In Online Payments With Bitcoin

The continuing spread of coronavirus has seen many people prefer to stay indoors leading to a massive disruption of the traditional economy, this has led to a boon for some digital sectors.

In the recent past, increased state-enforced quarantines as well as moves to social distancing and many firms coming up with policies to enhance working from home which has led to an increase in screen time as well as digital shopping. At the start of this week renowned outlets led by Amazon and Walmart announced they were facing challenges in meeting the high demand coming from panic buying, CNBC reported.

The panic buying has now started to spread to the cryptocurrency space, which has increased the number of crypto payment processors.

Bitcoin rewards app, Lolli, announced that its sales volumes had doubled mostly from firms supplying food-related items as well as personal essentials like Safeway and Vitacost. The firm’s communications head, Aubrey Strobel, revealed the details to CoinDesk. Strobel stated:

“The majority of Lolli’s merchants are online. As a result, our sales have dramatically increased over the last couple of weeks as a reaction to the pandemic. We expect to see this continue over the next several weeks as people transition to a remote work schedule and prepare for COVID-19.”

With 894 locations in 17 states, Safeway is a major Lolli partner with operations in Washington as well as California that have reported high cases of coronavirus in the recent past. Customers get rewarded in Satoshis by Lolli which also has a partnership with various restaurant delivery apps such as Postmates as well as Caviar. The firm also partners with PetCo that provides pet food to customers.

[Start Stacking Sats With Lolli]

Another crypto-based firm, Strike by Zap, which is at the moment operating in beta, almost closed down its operations following a sharp rise in payments than expected. The firm’s CEO stated that their wallet surpassed the previous all-time-highs early last week following processing transactions valued more than a Bitcoin. The firm which rolled-on in January, was set to handle transactions valued at least 1 Bitcoin every month.

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Author: Joseph Kibe

Ethereum Price Analysis: ETH Could Extend Its Downtrend Below $190

Ethereum price started an upside correction from the $189.35 low vs the US Dollar. ETH to USD is facing many hurdles above $204.50 and it is likely to resume its downtrend in the near term.

Key Takeaways: ETH/USD

  • Ethereum price is trading in a bearish zone below the $204.50 and $207.75 levels against the US Dollar.
  • ETH/USD broke a key contracting triangle with support near $199.60 on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin price is down more than 3% and it is likely to dive below the $7,750 level

Ethereum Price Analysis

In the past few day, there were mostly downsides in Ethereum price below the $215.00 and $204.50 levels. ETH to USD even broke the $200.00 support area and traded to a new monthly low at $189.35.

Ethereum Price
Ethereum Price

Looking at the 2-hours chart, Ethereum price settled well below the $204.50 pivot level and the 50 simple moving average (2-hours, purple). Recently, there was an upside correction above the $200.00 level.

The price made an attempt to surpass the 23.6% Fib retracement level of the downward move from $252.65 to $189.35, but it failed. It seems like the $204.50 and $205.00 levels are important barriers for the bulls.

As a result, Ethereum price broke a key contracting triangle with support near $199.60 on the same chart. The price is now trading well below the $204.50 level. An initial support is near the $194.50 level, below which there is a risk of more losses towards the $189.35 level.

Any further losses may perhaps lead the price towards the $188.50 and $182.50 levels in the near term. Conversely, the price must gain traction above $204.50 to start a decent recovery.

The next hurdles are near the $207.80 level and the 50 simple moving average (2-hours, purple). The main resistance above the 50 simple moving average (2-hours, purple) is near the 50% 50 simple moving average (2-hours, purple) at $221.00.

Overall, Ethereum price is trading in a bearish zone below $204.50 and $207.80. Therefore, there is a risk of more losses below $192.00 and $189.35 unless there is a clear break above $207.80.

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Author: Aayush J