More than 100,000 Ether Already Burned in Just 3 Weeks, Daily Issuance Falls Below Bitcoin

Despite Ethereum doing 60x of Bitcoin’s daily total fees and 5x the daily number of transactions, ETH is still lagging in valuation, worth only 0.0669 of BTC.

In a matter of three weeks, over 108,118 ETH worth more than $340 million have been burned ever since EIP 1559 was activated on August 5th.

Throughout this time, NFT marketplace OpenSea remains the biggest contributor to the burn accounting for nearly 16k Ether. Uniswap V2, Uniswap V3, Axie Infinity, USDT, USDC, and MetaMask, are other top ETH burners, according to Dune Analytics.

As we reported, the burn has led the daily net ETH issuance to fall about 27%. Now, for the first time, Ether’s daily issuance dropped lower than Bitcoin’s as well, noted Lucas Outumuro, head of research at IntoTheBlock.

Ether’s net inflation was 1.11% annualized at 3,574 ETH compared to Bitcoin’s 1.75% annualized net inflation at 900 BTC at one point.

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It was due to the recent surge in non-fungible token (NFT) activity that increased the Ethereum fees, in turn, the amount of Ether being burnt.

“This has led to several hours where more ETH was burnt than issued, effectively making it deflationary during brief periods of time,” said Outumuro.

“Ether’s decreasing issuance raises questions about how it is valued… Now that its issuance is provably lower (and potentially deflationary), it is likely to develop a monetary premium like BTC.”

As of writing, Ether is trading above $3,220, down about $28% from mid-May all-time high of $4,380 and worth 0.0669 of BTC, which is trading near $48k.

“Bitcoin’s monetary premium stem is apparent when comparing fundamentals between BTC and ETH. Despite having 10x higher fees, ETH continues to be priced as 40% of Bitcoin,” Outumuro added.

Not only Ethereum is doing 60x of Bitcoin’s daily total fees, but the daily number of transactions on the second-largest network is also 5x of the leading network, and yet Ether is still lagging in valuation.

When it comes to adoption, as we reported, throughout this year, the smaller holders (0.01 to 1 unit of the crypto asset) of Ether are growing much faster at 58% than Bitcoin’s 15% growth which has also been flat since the end of April, and are now ready to surpass it too.

Overall, Ethereum has over 20 million more addresses holding the digital asset.

“As NFTs and other applications continue to grow on Ethereum, this creates deflationary pressure and reinforces Ether’s monetary premium. Ultimately, this aligns users and holders towards ETH becoming the store of value of the decentralized internet,” Outumuro noted.

When it comes to fundamentals, Ethereum’s hash rate has also hit a new ATH at 650.8 TH/s, surpassing the May peak of 643.8 Th/s, as per Etherscan.

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The network’s transition from Proof-of-Work (POW) to Proof-of-Stake (POS) consensus is not coming until Q1 or Q2 of next year, which would then mark the end of POW mining.

Before even becoming a fully PoS coin, the implementation of EIP-1559 has affected the miner revenue as a large portion of their earnings from transaction fees, the base fee is getting burnt while only the tip is paid to miners.

“Despite the numerous headwinds for ETH miners, mining doesn’t seem to be slowing down,” said Delphi Digital.

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Author: AnTy

Global Bitcoin ATM Installation Shoots Past 24,000 In 2021: Report

This year has seen a sharp increase in the number of crypto automated teller machines (ATMs) installed worldwide. Data from Coin ATM Radar shows that crypto ATM installation has increased by more than 70% to over 24,000 this year.

Over 10,000 Crypto ATMs Installed In 2021

No less than 10,000 new crypto ATMs have been installed this year alone, surpassing the 7,620 added in 2020, per Coin ATM Radar. These crypto ATMs are being installed at a speed of roughly 52.3 ATMs per day.

At press time, the crypto ATM tracker reported a total of 24,004 crypto ATMs globally. This represents a 71.73% growth from the 13,993 crypto machines earlier this year.

The US takes the lead for the country with the most installations, according to the report. There are over 21,161 ATMs in the US alone. Canada closely follows the US with 1,698 locations and the UK with 174 locations.

In terms of the manufacturers of the mahines, Genesis Coin tops the list with a total of 9,813 machines installed. This is closely followed by General Bytes with 5,720, Bitaccess with 2,766, and Coinsource with 1,684 machines.

The ATMs are operated by more than 600 different companies. Bitcoin Depot controls the market with about 15.8% market share.

Crypto ATM Operators Sealing Partnership Deals

Earlier this year, Bitcoin Depot started its expansion plans when it launched 115 kiosks across 24 US states, including Alabama, Minnesota, Florida, and California.

Bitcoin Depot has continued to grow its reach. Just last week, the crypto ATM operator sealed a partnership with convenience store chain Circle K.

Through this collaboration, Bitcoin Depot plans to expand its ATMs by installing over 6,000 kiosks across North America by the end of 2021.The partnership has resulted in the installation of more than 700 Bitcoin ATMs in the US and Canada.

Other operators like Coin Cloud and CoinFlip have also signed partnerships with celebrities to boost their operations. Coin Cloud partnered with Oscar-winning filmmaker Spike Lee to promote cryptocurrency ATMs in an ad campaign.

The multimillion-dollar media campaign was tagged “The Currency of Currency” and was directed by Lee.

Last month, Coinflip also partnered with actor and bitcoin investor Neil Patrick Harris on a marketing campaign. The campaign titled “So Flippin’ Easy,” was aimed at promoting cryptocurrency investing.

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Author: Jimmy Aki

UK Watchdog Extends Registration Regime Deadline for Crypto Businesses

FCA Extends Registration Deadline for Crypto Businesses; ‘Significantly High Number’ Not Meeting AML Standards

While issuing yet another warning to investors about crypto assets, FCA said even if a company is registered with them, they are “not responsible for making sure” that those businesses protect client assets.

The Financial Conduct Authority (FCA) says a significant number of cryptocurrency firms are withdrawing their applications to register with the agency because they are struggling to meet anti-money laundering and counter-terrorist financing standards. The U.K. markets regulator said in a statement Thursday,

“A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications.”

As such, the FCA is extending the deadline for its Temporary Registrations Regime for existing crypto-asset businesses to March 31, 2022, from July 9, 2021.

This extension will allow crypto companies to continue to operate while their applications are under “robust assessment.” However, those firms that are not part of the regime or registered with the FCA will be subject to the regulator’s criminal and civil enforcement powers if they continue trading.

Currently, just five companies are registered with the FCA, including crypto exchange Gemini and British start-up Ziglu. Dozens of applications are sitting on the regime list.

In the same statement, the FCA issued yet another warning to investors about the highly speculative nature of crypto assets. Customers should be prepared to lose all their money quickly, the FCA said yet again.

The watchdog has no consumer protection powers for activities of a firm, and even if a company is registered with the FCA, “it is not responsible for making sure crypto-asset businesses protect client assets (i.e., customers’ money),” it adds.

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Author: AnTy

A Growing Number of British Investors Believe Crypto is as Safe as the Stock Market

A Growing Number of British Investors Believe Crypto is as Safe as the Stock Market

A recent poll suggests that Brits are getting more comfortable with cryptocurrencies. American investors also appear to be warming up more to crypto as their appetite for risk grows.

  • Despite their growing maturity over the past few years, cryptocurrencies have continued to face criticism over their perceived volatility and susceptibility to massive price swings.
  • However, the tide appears to be turning in Britain, as investors are getting more comfortable with the fledgling asset class.

Crypto on the Same Pedestal as Stocks

This week, market research and consumer insights provider, Piplsay, shared the results of a survey conducted on British investors about cryptocurrency. The survey consisted of 6,070 British investors above the age of 18, showing that a growing number of them now view cryptocurrencies as safe investments.

As the survey showed, over 40 percent of respondents described cryptocurrencies as safe, compared to 31 percent who viewed them as dangerous. Another 27 percent responded neutrally. Comparing cryptocurrencies to stocks, 41 percent claimed that both asset classes are on equal risk footing, while 45 percent believe that stocks are still safer than cryptocurrencies.

Of those who expressed concern about cryptocurrencies, almost 30 percent cited the potential for fraud and hacks as their primary concern. 26 percent also expressed concern over regulatory uncertainty, while only 19 percent pointed to the issue of price volatility.

Despite the growing sentiment over cryptocurrencies’ safety, 57 percent of respondents claimed that they didn’t have any desire to own digital assets. Of these, 46 percent claimed that they stayed away from cryptocurrencies because they had little to no knowledge of the asset class.

At the same time, 46 percent of all respondents also opined that large brands in the country should accept crypto payments. Most of these people cited the recent increased demand for crypto as payment methods as their reason.

American Investors Beef Up Risk Appetite

Investors’ growing desire to trade in cryptocurrencies isn’t native to Britain alone. Across the pond, professional investors are also trooping into the crypto space, encouraged by the market’s growth over the past year.

Last month, a fund manager survey from Bank of America showed that Bitcoin had become the most crowded trade in the country. Per a Reuters report, 36 percent of respondents in the survey identified the “long Bitcoin” bet as the most crowded trade, beating out “long tech.”

The Bank of America report marked the first time that “long tech” will be knocked from atop its perch since October 2019. It also marks a growing positive investor sentiment for Bitcoin, which was only third on the list in December 2020.

Several fund managers have also been hyping Bitcoin as a safe asset to invest in. Last month, Anthony Scaramucci and Brett Messing of New York hedge fund SkyBridge Capital wrote in an op-ed that Bitcoin is just as safe an investment as stocks or government bonds. The hedge fund managers wrote,

“[…] increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

With the cryptocurrency market delivering steady returns over other investment classes, investor sentiment remains strong.

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Author: Jimmy Aki

Growing Number of Women Are Now Trading Bitcoin; Average Age of Investors Is Falling

Growing Number of Women Are Now Trading Bitcoin; Average Age of Investors Is Falling

Only 15% of Bitcoin traders are women, according to a survey by the brokerage service provider eToro.

While this shows a gender disparity in the world of cryptocurrencies, the number of women investing in the crypto is increasing. Women investing in Bitcoin (BTC) and Ethereum (ETH) made up 10% and 11% respectively in early 2020, but it increased to 15% and 12% over the past year, respectively.

A poll run by a trader on Crypto Twitter (CT) also reveals that just over 8% of the traders are female.

Amidst the ongoing bull mania, the subscriber number on the platform has also skyrocketed. eToro users more than doubled over the past year while their average age is falling.

For Bitcoin, the average age of investors has dropped from 37 in 2017 to now 35. As for average Ethereum investors, it has dropped from 35 to 32 over the same period.

“The great attractiveness of the cryptocurrency sector is increasingly reflected in the diversification of the investor base,” said Simon Peters, market analyst, and cryptocurrency expert at eToro.

Diversification is also increasingly seen in crypto assets. While trading activity jumped 167% in Bitcoin to become the most popular cryptocurrency among eToro clients, Ether is at 2nd spot but with a 313% change in its trade activity.

XRP is the only one with a -53% change. Cardano’s (ADA) jump in prices has made the digital asset the 3rd most popular crypto and seeing an increase of 252% in its trading activity.

Other popular cryptos on the platform are Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH), Dash, MIOTA, and Tron (TRX).

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Author: AnTy

Brave Crosses 25M Monthly Active Users; Privacy Browser Continues Growth Trajectory

The number of active monthly users on Brave Browser has surged over the past year. The service is also seeing significant gains with its Brave Ads program.

Brave Browser enjoyed significant growth in 2020, capitalizing on the increasing focus on privacy to hit new milestones. The privacy-centric browser doubled its user base in 2020, setting itself up for possibly more gains in 2021.

Privacy Focus Benefits Brave

According to a press release, Brave explained that its monthly active users jumped from 11.6 million to 25.4 million last year, per its press release. Daily active users jumped similarly, moving by 126 percent from 3.8 million to 8.6 million. The number of verified content creators on the platform passed one million for the first time.

Brendan Eich, the company’s co-founder and chief executive, explained that the increase in its user base represented the increased desire for people to escape the “surveillance economy.” He explained in the release,

“25 million people have made the switch to Brave in order to protect their privacy and to regain control of their browsing experience. Users are realizing that a new way to browse the Web is just one click away with a seamless Brave download and that they can opt-out of the surveillance economy and instead get rewarded for browsing.”

Eich believes the company’s growth would continue, citing the increased influence of Big Tech companies on the internet landscape. With these firms showing a propensity for collecting user data, Brave will be there to provide a viable alternative.

Building Its Ecosystem

Brave has been doing a great deal of work to improve user security. In July, it partnered with Guardian, a VPN, and firewall service provider, to improve its iOS customers’ security.

The partnership saw the two companies capitalize on their strengths, Brave’s privacy-focused browser, and Guardian’s firewall and VPN offering. Brave’s iOS users can now turn on the Brave Firewall + VPN service in one click, protecting their devices from trackers.

However, the company has also been able to make significant strides in its Brave Ads program. The program allows users to opt-in to watch ads in exchange for the company’s native token Basic Attention Token (BAT).

Last year, Brave pointed out that several top crypto firms had signed up for its ads program. These included stock trading app eToro and crypto lending firm BlockFi.

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Author: Jimmy Aki

One River Receiving An ‘Astounding’ Number of Inquiries for Bitcoin from ‘Big Credible Institutions’

One River Receiving An ‘Astounding’ Number of Inquiries for Bitcoin from ‘Big Credible Institutions’

The hedge fund with $1 billion in digital assets is “overwhelmed” with the response from “huge institutions.”

A storm of investors is coming, and it is coming in full swing, especially now that Bridgewater Associates founder, Ray Dalio, has made his positive case for Bitcoin.

This is evident from the “astounding” number of inquiries the firms that provide digital asset services are getting.

The cavalry of institutional investors is coming, and it is happening “enormously,” according to One River Asset Management chief executive officer Eric Peters. Peter bought over $600 million of cryptocurrencies last year. The hedge fund now has more than $1 billion in digital assets.

“What’s happening is, almost every big credible institution in the U.S. is having discussions about this,” Peters added these are “huge institutions” where you have 10 to 15 people in discussion – the entire investment committee.

“They’re fascinated by this thing,” he said, which they should be, “because this is the first and last asset class that will appear in our lifetime. And so if you’re a large institutional investor, the first natural place to get exposure is the beta.”

All of this crazy amount of activity happening right now means the digital asset class will mature in a decade from now, said Peters. “The number of institutions that have been filling my day with calls and inquiries about this is astounding,” he said in an interview with Bloomberg.

But this is just the beginning because there are all kinds of opportunities in this asset class, said Peters. As they start learning, they would allocate some portion of their portfolio to these assets, but “they’re literally going to take years, and they’ll start small, and they’ll increase in size over the next decade.”

Overall, One River is “overwhelmed” with the response right now, which makes it “virtually impossible to imagine that you have this level of interest and you don’t have allocations.”

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Author: AnTy

Growing Number of Clients Bought ETH, But Only A Select Group Is Investing in DeFi: Coinbase

Growing Number of Clients Bought ETH, But Only A Select Group of VC Funds & Family Offices Investing in DeFi: Coinbase

DeFi remains retail-driven just like the early days of Bitcoin adoption, says Coinbase whose clients are interested in Ethereum’s evolving potential as a store of value and its status as a digital commodity.

2020 brought “traditional hedge funds to the forefront of participation,” states Coinbase in its 2020 in the Review report.

Covering the year “crypto cemented its status as an institutional asset class,” said the largest cryptocurrency exchange in the US, which is planning to launch its IPO, noting that macro funds are the earlier adopters with several large funds now begun trading Bitcoin and Ethereum directly with investor capital as well.

The company’s clients invested in Bitcoin for a range of reasons, including as a store of value, as an inflation hedge and/or insurance against new potential monetary policy risks, as a portfolio diversification tool, and as a treasury reserve asset.

Coinbase is particularly expanding its business in Europe and Asia, with Singapore as the staging post for Asia expansion because of its regulatory clarity. After opening its third office in Europe, Coinbase now has 120 full-time employees in the region.

A Trend Occurring out of View for Most of Wall Street

“While our institutional clients predominantly bought Bitcoin in 2020, a growing number also took positions in Ethereum,” reads the report.

The second-largest cryptocurrency, which has been more volatile than Bitcoin, is seen by Coinbase’s institutional clients as a “decentralized computing network that shares Bitcoin’s properties of trustless store and transmission of value, along with more flexible programmability via smart contracts.”

Ethereum’s evolving potential as a store of value and its status as a digital commodity required to power transactions on its network are the clients’ reasons for owning the digital asset. However, the community needs to settle on a clearer and simpler narrative, which Coinbase says is both a challenge and an opportunity for Ethereum.

Decentralized Finance (DeFi) is also seen as one of the most important growth developments for the Ethereum network as Coinbase clients believe this sector has “potential to reinvent financial products and services.”

Coinbase hasn’t yet seen significant investment in DeFi assets from institutional clients, except for “a select group of venture capital funds and family offices.”

DeFi remains retail-driven; just like the early days of Bitcoin adoption, Coinbase added maturity would take time.

“We can imagine a future in which institutional investors can access both traditional and decentralized financial services through trusted, regulated onramps,” which may be difficult to imagine today given the relatively small size of the DeFi market, a bottom-up trend that is occurring out of view for most of Wall Street.

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Author: AnTy

Bitcoin Millionaire Addresses Reaches Highest Level Since January 2018

As Bitcoin’s price holds strong at $13,000, the number of Bitcoin millionaire addresses are also hitting levels not seen since the last bull run.

Those addresses that have been holding more than $1 million worth of BTC have surpassed 20,000, the highest level since January 2018, as per Glassnode.

These numbers have been increasing since March when the sell-off pushed these addresses from about 17,500 to nearly 7,500.

In August, these numbers took a big leap when it added about 5,000 new addresses. Now, it has reached levels that we came close to in the middle of last year.

The number of addresses with more than $1 million of Bitcoin reached its all-time high at just above 28,000 at the top of the market in December 2017 when BTC price hit $20,000.

According to Bitinfocharts, while 20,554 addresses are richer than $1 million, only 2,754 addresses have $10 million worth of BTC.

Meanwhile, more than 25 million addresses have $1 worth of BTC, close to 9.7 million addresses have more than $100 of BTC and 3.64 million has $1,000 worth of Bitcoin.

The number of addresses richer than $10k worth of BTC is moving to 990k, and 182,414 addresses have $100k BTC.

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This has been as Bitcoin works towards solidifying its role as digital gold, a store of value. Recently, a team of analysts at JP Morgan also touted the leading digital currency to be in “intensive” competition with gold, suggesting a “doubling or tripling” in its price if this trend continues.

“The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” read the research note.

The analysts also added that Bitcoin’s long-term prospects could further improve because of its utility as a payment mechanism.

In that regard, just yesterday, a BTC wallet holder moved over 88,857 BTC, worth about $1.15 billion for a fee of mere 0.00027847 BTC, worth less than $4.

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Author: AnTy

Over 100k Bitcoin Worth Nearly $1.2 Billion Tokenized on Ethereum; WBTC & RenBTC Leading

The number of Bitcoins locked on Ethereum continues to hit new records. It has already surpassed $1 billion.

Currently, nearly $1.2 billion worth of Bitcoin has been tokenized on the second-largest platform. At the beginning of 2020, only 1,110 BTC worth less than $7 million were tokenized.

Now, 108,240 BTC are tokenized on Ethereum, representing 0.51% of fully diluted BTC supply, as per Dune Analytics.

The biggest contributor to this is Wrapped Bitcoin (WBTC) that has minted 77,586 tokenized BTC since the project’s launch in early 2019. The largest tokenized bitcoin project represents over 71% of the total tokenized BTC supply at $825 million.

The second-largest tokenized bitcoin project, with dominance, is RenBTC, which has issued 20,766 BTC, worth $224 million, since May.

Other projects contributing to this success include HBTC (4,810 BTC), sBTC (3533 BTC), imBTC (1,408 BTC), and pBTC (136 BTC).

In the growing DeFi sector, which has yet again surged to $9.77 billion (TVL), WBTC is the 6th largest protocol with $827 million in deposits, grown from just $175 million at the beginning of August.

The yield framing mania in the decentralized finance world is driving this demand, and the same is the case for BTC, for which much of the demand is from over the counter. Interestingly, a whopping 70% of WBTC is being minted by FTX CEO Sam Bankman-Fried’s Alameda Research. The firm also lobbied for increasing the amount of collateral, from 0% to 40%, placed on WBTC to earn interest on the DeFi project Compound in July.

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Author: AnTy