SNX to Surge Past $2,000 & Reach 3x Ethereum’s Current Market Cap: Report

DeFi bluechip Synthetix (SNX) is one of the biggest gainers of 2020, with more than 863% YTD.

With a $707 million market cap, SNX is the 40th largest cryptocurrency trading at $6.32.

However, according to the latest report, the DeFi token has a potential to go 364x from here that would take the digital asset’s market cap to a whopping $242 billion, more than 3x of the second-largest cryptocurrency Ethereum’s current market cap at $73 billion.

These lofty predictions come from the “confidential” report by Teeka Tiwari’s Palm Beach Research Group, claims an unconfirmed report.

The report, which calls these numbers “conservative,” compares Synthetix with Tesla, Amazon, and General Motors, stating “disruptive tech projects tend to be worth more through their innovations and cutting of overhead costs.”

The decentralized platform on the Ethereum network trades everything from cryptocurrencies, commodities, forex, indexes and will soon add stocks to its list, too, by creating synthetic assets on the blockchain.

As per the report, since the beginning of 2020, Synthetix has grown its user base nearly 4x, and the assets held on its platform have also increased 4.4x to over $750 million. Since February, the platform has also generated over $1 billion in trading volume but “has massive potential to eat more market share from traditional exchanges.”

“Conservatively, we think Synthetic could come to command a premium five times higher than traditional exchanges,” further reads the report. This is because the decentralized protocol eliminates middlemen and expensive overhead costs needed to run an exchange.

With an estimated $130 trillion trading in equities every year alone, even capturing a tiny portion of the market would see the volume on the platform, trading fee, profits, price, and the market cap of the digital asset ballooning, argues the report.

With the bull market in focus, everyone is back to making wilder predictions. However, given that Synthetix is one of the hottest DeFi projects in the market, it can achieve a higher value, but it’s to be seen just how high they will go.

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Author: AnTy

Bitcoin Skeptics Busy Talking About Bananas, 2018 Bear Market & Missing Price Discovery

Despite the price of Bitcoin jumping more than 220% this year, billionaire Mark Cuban still isn’t interested in the leading cryptocurrency.

“My thoughts haven’t changed,” Cuban told Forbes a week before Bitcoin surged past an all-time high of $20,000 to hit a record $23,800 on Wednesday, in a story that was published Thursday.

Bitcoin is “a store of value…that is more religion than solution to any problem,” said Cuban adding that the cryptocurrency won’t be replacing government-backed currency.

“No matter how much (bitcoin) fans want to pretend that it’s a hedge against doomsday scenarios, it is not,” Cuban said.

“Countries will take steps to protect their currencies and their ability to tax, so the more people believe this is anything more than a store of value, the more risk of government intervention they face.”

However, Cuban does agree that bitcoin is like gold in the way that it is a store of value. Although with its supply being limited, as the demand for the digital currency fluctuates, so will the price, which will be volatile, “as long as people accept (bitcoin) as a digital version of gold, it’s investable,” he said.

Despite this optimistic view, Cuban went back to his banana having “more utility” because it has potassium, a “valuable nutrient to every person on the planet,” while Bitcoin is what it is because “enough people have agreed upon” it as an investable asset.

Absolutely crazy right now

Another person that remains skeptical of Bitcoin is the Rosenberg Research chief economist, who calls it a “massive bubble.”

However, given his Bitcoin issues, it looks like it’s him who is in a bubble because he didn’t even take time to understand it before ranting about it.

“You speak to most people that are asking me to put money in bitcoin, they can’t even tell you who the person was that developed it or even how it’s actually mined,” said David Rosenberg. Alright, uninformed boomer!

“It’s just a classic, follow-the-herd, extremely crowded trade. It’s in a massive bubble.”

He had a particular nugget to share with that “there’s really nothing in the protocol to suggest that the supply of bitcoin can’t go up once we hit that limit.”

From the March low of $3,800, during the coronavirus pandemic-induced sell-off recorded in gold, stock, especially oil prices, and every other asset class, BTC has seen a whopping 525% uptrend.

Since October, Bitcoin has rallied 114%, and the chart of the digital asset is looking “absolutely crazy right now” to Rosenberg, who took it as his civic duty to remind everyone of the 2018 bear market after the last time bitcoin behaved with such a “speculative fervor.”

Meanwhile, BTC/USD is holding firm around $23,000, embarking on its price discovery journey.

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Author: AnTy

Grayscale Recording Inflows “Unlike Ever Before;” Meanwhile Largest Gold ETF Yet to See Any

Bitcoin is enjoying a wild rally, having surged more than 20% since yesterday this too, while average BTC fees being just above $4.

Trading above $23,000 with $11.27 billion in ‘real’ volume, the market is euphoric with greens.

Bitcoin’s market cap has reached above $430 billion today, adding more than $70 billion since yesterday.

This is all the result of the factors at play in this bull market that we haven’t ever seen before in terms of “investment banks writing research highlighting bitcoin superiority to gold,” said Michael Sonnenshein, Managing Director of the largest crypto asset manager Grayscale Investments.

We also saw prominent investors like Paul Tudor Jones, Stanley Druckenmiller, BlackRock CIO, and many others coming out supporting this asset class and corporations like Square and MicroStrategy adding bitcoin to their balance sheet as a reserve asset.

As Sonnenshein shared in his interview with CNBC, Grayscale is currently seeing flows that “are now probably up 6x what they were last year.”

Elaborating on the type of investors that are buying GBTC at over 34% premium to Bitcoin price and ETHE at nearly 210% premium to Ether, Sonnenshein said these “investors that are putting capital to work are unlike any of the investors we’re seeing ever before.” He said,

“It’s some of the world’s largest investors and the allocations that they’re making are bigger than we’ve ever seen before and their time horizon for this is generally something over the medium to longer-term.”

As of writing, GBTC holds just above 569k BTC, worth more than $12 billion, representing just over 3% of Bitcoins’ circulating supply, while their Ether stash represents 2.58% supply at 2.94 million ETH worth $1.84 billion.

Unlike all the flows that Bitcoin sees currently, gold has yet to recover from all the outflows it started recording last month. Kevin Rooke noted,

“The world’s largest gold ETF sold 8.3% of its gold so far in Q4 (100+ tons), and hasn’t seen any inflows in 17 trading days. November 19th was the last day the NAV of GLD actually went up, almost a month ago.”

However, the price of gold did manage to uptrend some on the back of declining USD, and Federal Reserve Chairman Jerome Powell vowing that they will keep up with its massive monetary stimulus.

Climbing to $1,890, the bullion still recorded 22.32% returns in 2020 compared to Bitcoin’s 223%.

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Author: AnTy

Grayscale Amasses 552.5k Bitcoin and Almost 3 Million ETH with Latest Big Accumulations

Grayscale Investments continue to gobble up more and more Bitcoin, and now it has its eyes set on Ether as well.

All this buying has Grayscale Bitcoin Trust amassing 552.5k BTC so far, worth more than $10 billion. GBTC currently has almost 3% of Bitcoin’s circulating supply.

As per the company’s Dec. 3rd filing with the US Securities and Exchange Commission (SEC), they added another nearly 14,592 BTC worth over $280 million to its holdings.

GBTC is currently trading at a premium of around 15% to BTC price, cut down in half since last week. The premium started trending up in early October along with the jump in the price of Bitcoin but has been keeping under 30% throughout 2020 except for a handful of occasions.

This premium is a function of “exposure to bitcoin in a regulated vehicle without having to deal with the challenges of custody, eligibility to some tax-efficient schemes, strong distribution through regular brokerage accounts, lack of alternatives such as an ETF,” noted data provider Skew in its report.

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Source: Grayscale Investments BTC Holdings

However, it is not just Bitcoin that Grayscale’s institutional investors have their eyes on. Grayscale’s ETH stash is ready to hit 3 million, currently at 2.94 million ETH worth nearly $1.7 billion.

This Ether accumulation actually saw a big spike on Wednesday, which means this week institutional investors bought the dip on ETH.

Ether is currently trading at $560, up from yesterday’s low of $530, while Bitcoin is around $18,240, has managed to recover from yesterday’s drop to $17,650.

Grayscale Ethereum Trust (ETHE) is trading at a premium of a whopping 127%, down from 900% in June.

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Grayscale Investments ETH Holdings

Institutions are coming into the cryptocurrency market at a fast pace in 2020 as the market enters into another bull cycle.

Bitcoin is gaining attention as digital gold and inflation hedge this year, while Ethereum blockchain is becoming the most actively used with its token Ether solidifying itself as an asset class.

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Author: AnTy

ETH 2.0 Effect: Staked Value & Miner Revenue Continue to Uptrend

Ethereum 2.0 deposit contract continues to amass more and more ETH.

The trend particularly gained momentum after ETH 2.0 finally went live on Dec. 1st. More than 81,500 ETH were deposited to the contract on Tuesday, bringing the total staked value to about 1.35 million ETH.

This represents 253.75% of phase 0, “the Beacon Chain” goal, as per Dune Analytics.

While more than 1% of ETH supply is locked in ETH 2.0 contract, about 7 million ETH are locked in DeFi, and another 3 million are with Grayscale’s Ethereum Trust.

With the Beacon Chain’s successful launch, the enthusiasm around Ethereum is increasing not only among the retail but also institutions.

In the world of mining, the “new generation of Bitmain ETH machine E9 is in production,” with “China’s ETH mining enthusiasm is higher than BTC this year. At least 10 companies are preparing to make new ETH mining machines,” noted Chinese publication Wu Blockchain.

For now, a full transition to proof-of-stake (PoS) is still far off, and at least for a year, ETH1 will continue to run normally with no changes to the mining.

“There are still plenty of mining rewards left to be earned, and there will be for the foreseeable future,” stated one of the biggest mining pools, F2Pool.

According to an F2Pool’s report, mining revenue is to be unaffected by the development of ETH 2.0 and “will be a profitable option for at least another year or two.”

Ethereum creator Vitalik Buterin himself had stated that the issuance rate of the cryptocurrency would remain stable at 4.7 million tokens per year for the foreseeable future.

However, there is Ethereum Improvement Proposal (EIP) 2878, which seeks to reduce inflation by reducing the block reward from 2 to 0.5 ETH, and EIP 1559 that suggests modifying the dynamics of the Ethereum fee market to mitigate certain issues with the user experience that arise during times of high congestion, that is to be considered but are currently under discussion and debate.

As of writing, Ethereum mining revenue is $0.036 per MH/s, trending up since last month, as per Bitinfocharts.

In November, Ether miners raked in over $262 million in revenue, up 22.4% from the previous month but down from September’s $321 million, which resulted from DeFi mania.

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Author: AnTy

Singapore Government Bankrolls $9 Million Blockchain Innovation Program

Singapore is well-known as a crypto-friendly destination. Now, the government is investing even more in the country’s blockchain ecosystem as it looks to leverage the technology’s unique capabilities.

Bolstering Trade and Expanding Blockchain’s Use

Earlier today, the Straits Times reported that several parties had come together to launch the Singapore Blockchain Innovation Program, an initiative seeking to consolidate blockchain development across companies and industries.

The program was reportedly launched by the Infocomm Media Development Authority (IMDA), Enterprise Singapore (ESG), and National Research Foundation (NRF). The ESG, a department in the Prime Minister’s Office, will bankroll the effort, which is expected to cost the government $12 million ($9M USD).

The program will engage about 75 local firms to conceptualize multiple blockchain projects within the next three years. The project will focus primarily on the trade and logistics sector, although developers will need input from companies in the information technology sector as well.

Along with the project development, the program will also focus on improving blockchain adoption in sectors with high transaction rates.

Peter Ong, the Chairman of Enterprise Singapore, explained that the coronavirus had emphasized the need for companies to transition much faster into the digital world. With blockchain, companies can trust applications, thus improving efficiency in areas like logistics, supply chains, and digital identities.

Blockchain’s Increasing Use in Singapore

Lew Chuen Hong, the chief executive of IMDA, also explained that Singapore had primarily seen significant success with applying blockchain to the traditional finance sector. Last month, HSBC Bangladesh successfully issued letters of credit on the Contour blockchain platform following a purchase of 20,000 tons from United Mymensingh Power, the United Group’s Singapore subsidiary.

Md Mahbub ur Rahman, HSBC Bangladesh’s chief executive, described the transaction as a showcase of the firm’s commitment to using cutting-edge technology for supporting cross-border trade.

“I believe this will usher in a new era of routing international trade transactions as businesses and governments recognize transparency, security, and swiftness in performing tasks using blockchain technology,” he added.

As for expanding blockchain applications, Singapore has a blockchain-based payment network running. The network, known as “Project Ubin,” was developed in July by the Monetary Authority of Singapore (MAS) in collaboration with JPMorgan and investment giant Temasek.

Ubin will focus on improving international payment settlements. It can provide settlements in several currencies, conduct foreign exchange transactions, and settle foreign currency-denominated securities.

Ubin is in its fifth and final development stage, and a final product is expected soon.

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Author: Jimmy Aki

PayPal CEO: Entire World is Going to be ‘Digital First’ with ‘Consumers Abandoning Cash’

PayPal CEO Dan Schulman said digital currencies are set to go mainstream as more merchants take a “digital first” approach to payments, which means cash is on the way out.

“The entire world is going to come into digital first,” Schulman said at the Web Summit conference on Wednesday. Merchants are moving to accept payments via smartphones and QR codes, and more customers have started to use digital wallets, which “are natural complements to digital currencies.” He added,

“So, over the long run, I’m very bullish on digital currencies of all kinds.”

These remarks came after the popular payment company announced support for cryptos just last month. PayPal is also planning to use digital currencies to shop at 26 million merchants on its network next year.

According to a recent survey by Mizuho, one-fifth of PayPal users have already traded Bitcoin on the app.

Bitcoin’s ongoing exuberance boosts user engagement, with BTC traders reporting over three times higher usage frequency than non-BTC traders. However, converting these non-BTC traders into crypto users is a challenge because only 8% say they plan to trade Bitcoin in the future on the PayPal app.

Schulman also sees China’s largest mobile-payment company Ant Financial as its biggest competitor who had “tremendous success” in the country with a digital wallet with “all elements of financial services, all elements of shopping,” Shulman said.

Drop the Cash

During the conference, Schuman said PayPal’s most significant opportunity is to move toward digital payments and away from cash. The trend that has already been happening is “accelerating” in the pandemic, and “you’re seeing an explosion in digital payments,” he said.

The USD Index has been on a decline ever since March, currently at a level not seen since April 2018 as “Treasury Secretary Steven Mnuchin, and Federal Reserve Chair Jerome Powell are once again on Capitol Hill begging Congress for some money.”

Meanwhile, Bitcoin has made a new all-time high, currently trading above $19,000.

According to analyst Mati Greenspan, currently, we are having a very similar setup playing out that we saw just before BTC broke through $14,000. He noted,

“The pattern resulted in an extremely rare upward breakout of an upward facing channel, despite a coinciding psychological barrier.”

While the natural thing for the market to do is have a pullback and test the lows before going for ATH, we are not in a “normal market right now,” and “the question isn’t really when we break $20,000 so much as how it will break,” said Greenspan.

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Author: AnTy

FUD of the Week: China and US Treasury Unsuccessful in Attacking Bitcoin

This week as we reported, China Police seized more than $4.2 billion worth of the crypto asset from the PulsToken Ponzi scheme.

However, it was the officials informing the public, as the crypto market has known all along, about how and where these funds have been moving thanks to the transparency of the blockchain technology.

Researcher Ergo has been updating the community about the sale of these tokens over the years, which peaked in mid-2019. Only about 15k of the BTC are left of the original 201k BTC now.

What is really interesting about China’s latest summary is that the authorities might be the ones involved in the sale of crypto assets all this time.

“Chen Bo, the mastermind of PlusToken (arrested in June 2019), was entrusted with selling PlusToken’s BTC, via a third party business, on behalf of the CCP?” commented ErgoBTC adding, “In return, he only gets 8 years in the gulag for architecting a multi-billion $ Ponzi? What kind of communism is this?”

The good news about this all is the market won’t be getting smashed as most of the Bitcoin has already been dumped into the open market through OKEx and Huobi. It was this sale-off at that time in mid-2019 that sent BTC crashing from $14k to $6k in six months.

There isn’t really anything left to send to China’s national treasury as they already sold most of it all. However, the same can’t be said of ETH and other altcoins, including LTC, EOS, DASH, XRP, DOGE, BCH, and USDT.

“Most importantly, this can be seen as the first government attack toward Bitcoin via liquidity games and price manipulation. IT FAILED,” said market analyst David Puell.

The price of cryptocurrencies had already taken a big drop before this news hit the market, sending BTC to nearly $16,300. Today, the crypto market is actually green.

Besides, over-leverage and BTC already rallying 85% in less than two months being the reason for the crash, Coinbase CEO Brian Armstrong spreading the U.S. Treasury FUD is another one.

While “false, it should be taken seriously,” said Puell.

Regulating self-custodied wallets is already forced upon exchanges in countries like Switzerland, Singapore, and the Netherlands.

While the crypto community continues to oppose these regulations, more rules and laws are expected, which means “privacy and ownership, even more so than price, will be the most contested subjects in Bitcoin in the next few years.”

The implication of this in the US on the price of Bitcoin in the long term, however, isn’t expected to change anything.

“The fundamentals remain the same, so in my view, even if we continue correcting ($14k, 12k, or whatever), the cause would be simply out of major market actors taking profits with the aim to buy cheaper,” Puell said.

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Author: AnTy

Bitcoin Is Heating Up; Funding Rate on Perpetual Contracts Has Finally Popped

Bitcoin has gained more than 70% since October; today, some it broke above $19k after taking a rest since breaking the $18,000 level last week. But it’s to be seen if $20k is coming soon.

It has been just this year in March, during the global sell-off, that Bitcoin went down to $3,800, and this week, we made a new all-time high at nearly $19,420. We are just over 4% away from the all-time of $20,000.

Despite these huge gains, the market has been pointing out there has been no change whatsoever in the funding rate.

A funding rate is basically used to keep the price of the perpetual swap contract, futures contracts without an expiry date, in line with the underlying asset. Every 8 hours, you will either be paying or receiving funding if you have an open position.

In a positive funding rate, longs pay the shorts; in a negative funding rate, shorts are the ones paying the longs.

Crypto market traders have been pointing these past few weeks how there has been no change in the funding despite the rally.

Finally, bitcoin funding rates on major cryptocurrency exchanges have increased considerably over the past few days.

“Long positions are heavily paying shorts – potentially incentivizing more traders to start taking the other side,” noted Glassnode.

The funding started increasing towards the weekend when Bitcoin dropped to about $17,500 level. The digital asset has been primarily keeping between $18k and $19k, taking a breather before going higher.

The funding rate on Bybit is the highest, having reached 0.16% and 0.0113% on Binance, with the mean going to 0.093%.

It is possible; finally, the market will get to have a correction everyone is waiting for some time now. During the 2017 bull cycle, the market had several pullbacks of an average of 30%.

“BTC finally heating up. Every time funding popped like this in the last six months, a strong correction followed within 24H. Basis also popping,” said trader and economist Alex Kruger. However, he added:

“This time may be different though: retail mania kicking in. Google Trends aside, I have not seen such retail interest since Jan/2018.”

The trader is expecting a repeat of this past weekend in a few days.

“This is short term leverage piling on top of the systematic spot buying we’ve been seeing for BTC and ETH.

Leverage accrued after an extended rally makes longs vulnerable. The underlying spot bid is widespread, so thinking this time is different, and leverage has room to build up.”

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Author: AnTy

China’s State Media on BTC’s ‘Institutional-Driven’ Bull Run; Improved Dramatically Compared to 2017

Bitcoin has enjoyed gains of 31% in November while being up more than 67% this quarter, making it the 18th largest asset in the world by market capitalization.

After breaking $16k, $17k, and $18k this week, today, we are keeping around the $18,000 level on the back of a $6 billion trading volume.

However, with these gains came the issues with crypto exchanges as they continue to go down whenever BTC makes higher than usual moves.

Coinbase has been one of them, whose CEO Brian Armstrong said they are working on adding additional capacity, in terms of servers and customer support “to deal with increased traffic.”

While Armstrong said, “Bull runs can be exciting and stressful,” the crypto community isn’t really satisfied as the exchanges had three years of bear and slow market to deal with the issues.

Now that the bull market is here, the situation will only get wilder and wilder — the market capitalization of BTC has already hit a new high. Unchained Capital stated,

“The bitcoin market cap is at a new all-time high, but the current state of coins held for the long-term is nearly identical to when the price was about $700 in 2016 before it went on its historic run to $20k in 2017.”

Already we are at price levels not seen since the euphoric December 2017, and the positive momentum continues to come for the leading digital asset as the BTC percentage supply on exchanges continues to decrease while the overall exchange flow balance remains dormant.

“This is good news for bulls, with little funding moving from offline wallets with the intent of making major trades,” noted Santiment.

Gradually as we continue to go higher, mainstream media is taking note as well. The latest has been from CCTV.

China’s official TV channel reporting on Bitcoin’s uptrend, which it said is driven by institutional funds. The ecosystem is far better than the last time during the current bull run.

“The Bitcoin ecosystem ranging from infrastructure and development to investment, has improved dramatically compared to 2017.”

However, at the same time, we have been seeing the Chinese government cracking down on the exchange of cryptocurrencies. According to the local media, about 74% of the “Chinese miners are facing a major problem in paying electricity bills.”

This could also be why funding has been flat in this bull run, with open interest in USD increasing only marginally. Economist and crypto trader Alex Kruger shared his theory behind this,

“Chinese miners selling heavily reduced due to fiat onramp complications. They are instead shorting derivatives. Their selling pressure is equal in measure to buying pressure from levered longs. Hence why funding has remained flat in this bull run.”

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Author: AnTy