Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report

Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report

After five weeks of consecutive outflows, digital asset investment products finally saw inflows last week totaling $63 million in the week ending July 2nd, according to CoinShares’ data.

It was also the first time in nine weeks that inflows were seen across all individual digital assets, “implying a turnaround in sentiment amongst investors.”

Bitcoin saw the most inflows at $39 million, a minor update to the previous weeks’ data highlighting a two-week run of inflows now.

Compared to Bitcoin’s (BTC) two consecutive weeks of inflows, Ethereum (ETH) had three weeks of inflows totaling $18 million. BTC -3.93% Bitcoin / USD BTCUSD $ 33,931.74
-$1,333.52-3.93%
Volume 26.85 b Change -$1,333.52 Open $33,931.74 Circulating 18.75 m Market Cap 636.18 b
6 h Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report 7 h Aave Pro for Institutional Investors Is Coming This Month ‘Due to Extensive Demand’ 8 h Grayscale Bitcoin Trust (GBTC) Unlocks Coming to an End, They Aren’t Bearish But Bullish for BTC Price
ETH -4.59% Ethereum / USD ETHUSD $ 2,217.74
-$101.79-4.59%
Volume 20.24 b Change -$101.79 Open $2,217.74 Circulating 116.57 m Market Cap 258.53 b
6 h Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report 7 h Aave Pro for Institutional Investors Is Coming This Month ‘Due to Extensive Demand’ 10 h Smart Money Is Becoming Bullish on Ether, Bitcoin, and Cryptocurrencies Again

image1

While inflows have finally come in, Bitcoin investment product trading turnover was the lowest since November 2020. According to CoinShares, a similar observation was seen more broadly across the whole of the Bitcoin ecosystem, with volumes down 38% relative to the average for 2021.

Among altcoins, Polkadot (DOT) had the highest inflows of $992.1 million followed by XRP and Cardano (ADA) at $512 million and $90.7 million respectively. DOT -4.11% Polkadot / USD DOTUSD $ 15.36
-$0.63-4.11%
Volume 844.83 m Change -$0.63 Open $15.36 Circulating 957.84 m Market Cap 14.71 b
6 h Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report 5 d After Compound Finance, Now Coinbase is Offering Users 4% APY on USDC 6 d Coinbase’s Goal is to List ‘Every’ Crypto Asset, says CEO Brian Armstrong
XRP -5.18% XRP / USD XRPUSD $ 0.66
-$0.03-5.18%
Volume 2.08 b Change -$0.03 Open $0.66 Circulating 46.15 b Market Cap 30.45 b
6 h Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report 3 d BIS: Crypto Investors’ Objectives Are Same as Other Asset Classes, “So Should Be The Regulation” 4 d Japan’s SBI Holdings Says XRP Ledger Can Be Used To Build NFT Markets
ADA -2.86% Cardano / USD ADAUSD $ 1.42
-$0.04-2.86%
Volume 1.78 b Change -$0.04 Open $1.42 Circulating 31.95 b Market Cap 45.22 b
6 h Inflows Recorded Across Digital Assets for the First Time in 9 Weeks: CoinShares Report 1 d Cardano (ADA) Gains 3rd Largest Weightage in Grayscale’s Rebalanced Large Cap Fund 1 w Three Consecutive Weeks of Bitcoin Outflows Mark the Longest Bear Run Since Feb 2018

Inflows of $0.6 million were seen into multi-digital asset investment products; however, this was much smaller than previous weeks suggesting investors were less interested in diversification.

When it comes to digital asset managers, the largest one in the world, Grayscale still hasn’t seen any while its AUM is currently at just above $30 billion. Meanwhile, the second-largest CoinShares had net outflows with its AUM now at almost $3.3 billion, with 3iQ also recording net outflows.

Read Original/a>
Author: AnTy

Crypto Derivatives Market Now Represents 53.3% of Total Cryptocurrency Space: CryptoCompare Report

Total spot volume in May surged 26.5% to $4.8tn, and $5.5tn was recorded in the derivatives market, an increase of 40.4%, with CME paving the way for the institutionalization. DEXs also had a record month with $172.8 billion in volume.

Moving into June, volume across cryptocurrency exchanges is taking a hit, which makes sense given that prices are subdued.

Daily exchange volume has gone down from the high of $90 billion on May 25th to now about $42 billion. But it’s to be expected given that May was a particularly wild month. As prices pulled back significantly last month, volumes soared across the board.

Following a stable April, volume in May surged 26.5% on the spot market and a whopping 40.4% on derivatives, as per CryptoCompare report.

Total spot volume crossed $4.8 trillion with Binance, Huobi Global, and OKEx leading monthly trading volumes with $1.5tn (up 63.0%), $271bn (down 6.0%) and $242bn (down 14.6%), respectively.

Reacting to higher volatility, leverage-loving crypto folks sent the derivatives volume to $5.5tn. Here, Binance, OKEx, and Bybit are leading with $2.5tn (up 48.9%), $999bn (up 50.8%), and $574bn (up 24.0%) in monthly trading volumes respectively.

The derivatives market now represents 53.3% of the total crypto market, up from 50.2% in April.

In the futures market, regulated exchange CME remains the largest for Bitcoin derivatives, with 29.8% of open interest occurring on the exchange. In May, CME launched Micro Bitcoin Futures to attract smaller traders.

Besides Bitcoin, CME is now also paving the way for the institutionalization of Ethereum as it becomes the largest exchange for ETH futures as well, with its OI surging by 66.2% to $489 million compared to a decrease in OI seen on other derivatives platforms, as per the report.

In the options market, Deribit leads with 581,578 BTC options contracts traded in May 2021, down 0.8% from April, while ETH options jumped 43% from the previous month to record 4,891,831 ETH options contracts.

In the decentralized space, May broke the record by having a total volume of $172.8 billion, a whopping 110% jump from April, as per Dune Analytics.

In the previous months of 2021, volume on decentralized exchanges surged by $5 to $10 billion, but this time, the increase was $90 billion.

Interestingly, in May, Uniswap alone almost did the entire DEX volume of April, and the market share of popular DEX has now soared to 62.2%, up from 43.6% from late February. SushiSwap has the second-largest share at just about 11% based on weekly volume, down from 22.7% in Feb., while other DEXs account for less than 5% market share.

Read Original/a>
Author: AnTy

Decentralized Exchange, Uniswap, Accounts for 80% of The Daily Active DeFi Users

Decentralized Finance (DeFi) recorded a marked year-over-year increase in adoption and usage across the board despite suboptimal user experiences such as UX and gas fees.

“Remember the Internet was slow, clunky & expensive once. L2s launching this year will make DeFi more accessible – faster, better, cheaper,” noted Santiago R Santos, partner at Parafi Capita.

Total value locked (TVL) in DeFi had a 75x growth to $43.5 billion. In terms of stablecoins, their supply grew ~7x to $43 billion YoY, while total borrowing volume across money markets has increased 100x to $9.9 billion.

As for the most popular DeFi protocol, decentralized exchanges (DEX) have seen a growth in their active users.

Over the past year, these active users have grown from a mere 3,000 to the current 67,000. Interestingly, Uniswap accounts for 80% of these daily users.

The popular DEX, which accounts for 60.4% of the total DEX weekly volume market share, recently announced that its much-anticipated V3 is coming in early May, with a special emphasis on increasing capital efficiency.

ThorChain (RUNE), a decentralized liquidity protocol, meanwhile, argues that with V3, Uniswap is making “LP’ing active” — “Active LPs are going to destroy the passive LPs. It’s going to return the edge to desks and bots.”

Another interesting facet of this upgrade is the use of Business Source License (BSL) 1.1, which restricts the use of V3 source code for two years. Another popular DEX SushiSwap, which is moving into lending, started as a fork of Uniswap.

While Uniswap (UNI) can really use the license against v3 forks, it comes “mostly, at a cost,” said Jake Chervinksy, General Counsel at Compound Finance.

“It’s crucial for DeFi protocols to be free & open-source software,” said Chervinsky noting that that is why most DeFi protocols are launched with fully open-source licenses like MIT, BSD, & GPL.

He explained how while people might think enforcing copyright rules against anonymous developers won’t be possible, making the licenses useless, that is not true.

Not only most dev teams aren’t fully anonymous, especially as a project succeeds, but developers aren’t the only viable target, Chervinsky said.

“US law also allows copyright holders to sue third parties for “contributory” copyright infringement even if they didn’t commit any infringing acts directly. Other theories of secondary liability may apply to third parties too,” including those who adopt, support, or use it such as exchanges, DEX aggregators, investors, LPs, and MMs.

Also, enforcement is not the only way; the threat alone is enough at times.

image1

This may come at a cost, though, as “it’s crucial for DeFi protocols to be free & open-source,” and many people in the sector also feel strongly about it, he said.

Still, “BSL 1.1’s two-year delayed conversion to GPL seems to strike a fair balance between creating a copyright moat & open-sourcing the protocol. Personally, I like it a lot, especially since UNI holders can accelerate the conversion at any time. Governance decides,” Chervinsky said, adding, “it’s an elegant bit of legal innovation for DeFi.”

Read Original/a>
Author: AnTy

“DeFi is Inevitable,” 4Q20 Recorded 100k New Addresses Daily: ConsenSys Report

“DeFi is Inevitable,” 4Q20 Recorded 100k New Addresses Daily: ConsenSys Report

“This year Ethereum proved that an entire decentralized financial (DeFi) ecosystem is inevitable,” reads ConsenSys’ DeFi 4Q20 report.

While this gained momentum last year, with all the drama surrounding the retail traders pumping up the prices of heavily shorted stock prices and now being suspended from trading them on Robinhood, a popular trading venue among retailers and other platforms are working on taking this moment forward in speed this year.

After the DeFi sector heated up in Q2 and cooled down in the subsequent quarter, Q4 saw its rise yet again. By the end of this quarter, 1,195,000 unique Ethereum addresses interacted with DeFi protocols, more than doubling in the quarter. Moreover, on average, 100k new addresses were created daily in Q4 2020. Custody providers and professional traders are also increasingly seeking exposure to the sector. The report states,

“With interest rates on trading pairs or lending protocols in the range of 5-12% APY compared to US treasuries at 0.92% yield, it’s easy to see the appeal.”

So much activity had an obvious effect on the fees, which saw “tremendous growth.” Besides the team, these fees also go to the uses of the applications.

image1

During this period, stablecoins, which are essential to the rise of DeFi, also continued their success. 70% of all the stablecoins worth $20 ln as of Jan. 1, 2021, are issued on Ethereum only.

Interestingly, “stablecoins are now responsible for more trade volume on Ethereum than the asset that pays for computation — ether (ETH) — itself,” at almost $1.6 trillion, notes the report.

image2

DeFi is also attracting other blockchains, and by the start of 2021, more than 138,774 BTC (about $3.9 billion) has been converted to ERC-20s.

The report also covered the growing trend of NFTs, whose marketplace value is estimated to be $52,293,650.

Despite all this growth, “DeFi is still in its infancy as an industry” and has a huge room for growth with “many new innovations just on the horizon that will further increase the accessibility and variability of DeFi.”

Read Original/a>
Author: AnTy

OKEx Record Outflow of 29,300 BTC Since Resuming Withdrawals, Following a Five-Week-Long Suspension

Cryptocurrency exchange OKEx recorded a significant bitcoin outflow right after the full range of five-week-long withdrawal suspension was lifted on Thursday at 08:00 UTC.

About 2,822 BTC was moved from the Asian exchange in block number 658,728 mined at 08:12 UTC — this was the most significant single-block outflow since May 2019.

In total, 24,631 BTC were moved out of OKEx yesterday, which is an 8-month high since March 13 this year, according to blockchain analytics firm CryptoQuant. The same day, Binance saw an inflow of 28.2k BTC.

image1

Combining today’s outflows, so far, with yesterday’s results in 29,300 BTC, which have been cleaned out of OKEx. During the same time period, 21,600 BTC has also been deposited.

This has reduced OKExs balance to ~212k BTC, as per crypto data provider Glassnode.

Meanwhile, the price of Bitcoin continues to oscillate between $16k and $17k following the big crash the night before Thanksgiving when the price was trading at the highs of $19,600.

This price drop started as soon as BTC whales began depositing their crypto assets to exchanges. As per IntoTheBlock, more than 93,000 Bitcoin were deposited into centralized exchanges.

If these whales continue to do so, the flagship cryptocurrency price is likely to go either sideways or drop.

Read Original/a>
Author: AnTy

Bitcoin Wrap Up: 4 Big Things that Happened This Week

This week started around $10,350 and recorded an increase of 13.5% to now trade around $11,500 while keeping the ‘real’ volume stable around $2 billion.

However, there were much more exciting things than the price that happened in the bitcoin market this week.

For starters, JPMorgan strategies revealed that while older investors go for gold, younger ones prefer bitcoin. Also, over the past five months, both gold and bitcoin ETFs saw strong inflows as old and young both see the case for an “alternative” currency.

Institutional Investors are Back

It’s not just the retail investors that all up in bitcoin’s business, institutional investors have also entered the market. After a long time, Bakkt finally made progress and set new records twice in a row that eclipsed the previous ATH.

“The trading activity on Bakkt has exploded after bitcoin crossed $10,000 again. Both open interest and volume saw new all-time highs last week,” noted Norwegian cryptocurrency analysis firm Arcane Research.

In the first half of July, trading volume on the ICE-backed exchange remained around $30 million which has since surged to $80 million in August. Open Interest on Bakkt contracts saw even more explosive growth of 575% from mid-July level.

Bakkt Bitcion Futures
Source: Arcane Research

Similarly, volume on CME has spiked from around $100 million to now over $650 million. OI on CME bitcoin contracts meanwhile is slowly making its way to $1 billion, with 120% jump from last month, as per Skew.

San Francisco-based crypto exchange Coinbase, which has been recording trading volume between $30 to $100 million up until July 27 the day bitcoin broke the key levels of $10,000 and $10,500, has now made its way to $275 million.

Explosive Q2 Reports

Square all but gobbled all the BTC mined in Q2 as it reported a revenue of $875 million from bitcoin, up 600% year over year, accounting for a big chunk of the company’s $1.92 billion in revenue.

What’s interesting is that much of this revenue is the Square burning the BTC for its customers as only a “small margin” is charged from the users on each sale. The company recorded $17 million gross profit, less than 3% of total gross profit, from trading bitcoin last quarter.

Another bullish Q2 report came from Genesis Lending, which saw $2.3 billion loans in the origination, hitting new all-time highs.

“BTC loans increased as a result of the flattened futures curve enticing traders to long basis by borrowing BTC, selling it spot while buying short-dated futures,” noted Jack Purdy of Messari.

With crypto getting more institutionalized, prime brokers like Genesis have a “pivotal” role to play by providing a full suite of products just like in the traditional financial world.

Bitcoin is the Choice

Wolfe Research wrote a technical analysis of the largest digital asset titled “Bitcoin — More than just a bit,” where it talks about bitcoin chart set-up looking “pretty darn good.” Not only is it above upward-sloping moving averages, but it also has “positive momentum readings across all periodicities.”

As per the research, the first reasonable target for BTC is $13,850 from June 2019 and is expected to make a new all-time high in this cycle.

As we reported, $1.2 billion publicly-traded company MicroStrategy also disclosed in its Q2 2020 earnings call that it is diversifying its cash holdings to include bitcoin. This movie has been made in the company’s search for yield, as it expects yields on government bonds to turn negative all over the world thanks to all the money printing by the central banks.

The Fed Tailwind

The biggest driver of all the bullishness in the markets will continue to push them higher as already, another fiscal stimulus is on the way, which would be a trend changer because “nobody is expecting it despite the negative headlines,” said economist and trader Alex Kruger.

Moreover, the US Federal Reserve is also expected to make a harder commitment to ramp up the inflation soon, until it hits at least 2%. Markets are already betting on higher inflation as seen in the falling dollar, surging gold prices, and people looking at bitcoin as an alternative currency.

Such a case would be “widely bullish” for alternative asset classes, said Ed Yardeni, head of Yardeni Research.

“This is the scenario bitcoiners have waited for,” said trader Scott Melker.

Read Original/a>
Author: AnTy

PayPal: Society has Reached an Inflection Point, Moving From Physical Cash to Digital

Paypal, the payment processing giant, has recorded another strong quarter with $5.26 billion in the second quarter of 2020 and added 1.7 million merchants to its ecosystem. Paypal executives got on a call recently to discuss the future of cash, and during their discussion, they noted that society had reached an “inflection point” post COVID-19 outbreak.

The executives on the call claimed that almost 70% of their customer base now fears for their health when it comes to paying in cash as it requires physical contact. This is understandable given the coronavirus pandemic has not only brought businesses to a halt, but it has also created a sense of fear among common masses over physical contact.

John Rainey, CFO of Paypal, believes the fear of physical contact has accelerated e-commerce and contactless payment by many years in just one quarter.

PayPal owned Venmo has also seen explosive growth as the total number of users reaching 60 million users. The increase in the use of Venmo is a big boost for PayPal’s plan to become the leader in the digital payment arena. Venmo was earlier used just for splitting bills, but in recent times the use case has expanded to a broader domain.

Paypal to Invest Heavily to Improve its Digital Wallet

Paypal being the payment and remittance giant does not want to miss out on the changing times and the changing dynamics in the payment arena. This is the reason they have decided to invest in their digital wallet service to ensure it is the go-to digital wallet for consumers. Paypal is also promoting the use of a QR code-based payment option through its merchants and Venmo app.

Paypal revealed that they are expecting to grow their revenue by 25% for the rest of the year.

They have also decided to finally venture into the digital asset offering through its platform, which the company has sidelined for quite some time. The payment giant has partnered with Paxos to avail of the purchase of digital assets from within the app.

Read Original/a>
Author: James W

Bitcoin Tokenized on Ethereum ‘Dominates the Off-Chain Space,’ Pushing ETH’s Fees Higher

In 2020 so far, Ethereum made 80% gains, more than 3x the gains recorded by Bitcoin. However, ETH moves compared to bitcoin have been tighter over the years.

During 2015-17, the price of ETH appreciated 6% to 8% versus bitcoin when the leading digital asset went up and a 4% to 6% fall on days BTC was down. Now in 2020, when Ether has seen a rebound, these moves continue to get smaller.

Analyst Ceteris Paribus believes these ranges will widen once again in a bull market but says, “ETH won’t make a significant run until BTC moves higher… Once BTC breaks $13K or so, I do expect ETH to become more interesting.”

Unlike Ether’s price, the gas prices continue to be on an uptrend. “The daily median gas price has increased by more than 5x since April, surpassing 50 Gwei yesterday for the first time in almost 2 years,” noted Glassnode.

Ethereum Median Gas Price
Source: Glassnode

While Ethereum network usage continues to rise, Phase 0 of ETH 2.0 is still not here. As we reported, it might not come until next year, on January 3, 2021 (Bitcoin’s 12th anniversary).

However, Ethereum co-founder Vitalik Buterin says, “FWIW I personally quite disagree with this, and I would favor launching phase 0 significantly before that date regardless of level of readiness :D.”

The final testnet, however, could be here soon.

Ethereum fees are also surging, “being larger than Bitcoin fees in periods,” because of the tokenized bitcoin on the Ethereum blockchain, which is currently heavily in use.

Fees: BTC vs ETH
Source: Arcane Research

Tokenization of bitcoin as an ERC-20 token is gaining a lot of traction, which enables functionality that is not natively supported on the bitcoin blockchain.

Bitcoin tokenized on Ethereum “dominates the off-chain space,” accounting for 82% of all the BTC supply locked off-chain. But it is still in its infancy as only 0.1% of BTC supply is locked into off-chain solutions.

Bitcoin Tokens on Ethereum
Source: Arcane Research

Wrapped BTC (wBTC) is the largest bitcoin token on Ethereum, with 11,136 BTC locked into the protocol. In 2020, wBTC supply has increased a massive 1887% as “investors seek to gain bitcoin exposure in the DeFi ecosystem.”

In total, 15,236 BTC are locked into the tokenized bitcoin protocols on the Ethereum network, which is 4x the size of Liquid and Lightning Network.

But “tokenized BTC on the Ethereum Network carries similar scaling issues as Bitcoin,” which might be reduced if Ethereum successfully switches from PoW to PoS, states Arcane Research in its report.

Elsewhere, ETH hodlers are also on the rise, with the number of addresses holding 1+ coins reaching an all-time high of 1,082,158, hitting a new peak in less than a week.

The flagship cryptocurrency, which has been silent for the past several weeks now, meanwhile has the percent of BTC supply that is active for over three years, reaching a 19-month high of 28.8%.

Read Original/a>
Author: AnTy

Crypto’s that are Seeing Heightened Interest & The Ones Not Popping

This week, several digital assets recorded substantial gains. It all started with Dogecoin when zoomers went on Tik Tok to pump this “joke cryptocurrency.” DOGE went up 150%, and the Google Search interest also jumped to a top score of 100, a massive uptrend from the usual reading that remained below 10.

However, Dogecoin has since retraced all of its gains and is currently in the red.

Another coin that has been a hit on the popular video-sharing platform is Zilliqa. However, the greens recorded by this crypto have been completely lacking.

A positive development has been Binance-backed BUSD coming to Zilliqa blockchain, which, along with Switcheo, is building a bridge between Ethereum and Zilliqa to bring the ERC20 stablecoin to it.

On Google trends, the search interest for Cardano and VeChain is still strong, to the full 100 on a scale of 0 to 100. Both the coins made sizable gains this week.

Cardano’s gains have been on the back of several announcements made during the Virtual meetup. In a blog post on Friday, IOHK’s Tim Harrison further shared that they have “effectively recreated the steps that we’ll go through later in July to activate Shelley functionality on the mainnet. A ‘dress rehearsal,’ if you like. And so far, it’s looking good.”

While ADA has calmed down, VeChain is still recording 10% gains but has slipped from $0.20.

Stellar started popping up later in the week to surge over 50%, with its competitor XRP also slowly moving up, now barely in the greens. However, this week, XRP tweets reached an all-time high as per Bitinfocharts only to tumble back down.

Elorand’s impressive feat of over 100% gains is slowly winding down the same as Ampleforth, whose “whole use case is around having stable purchasing power.” In the past month, both these digital assets recorded gains of more than 250%.

Because these cryptocurrencies are slowly giving up their gains, this looks like an “altweek” instead of an alt season, says analyst Mati Greenspan.

Although there are still “many projects that still have promise and lots of money available for investments,” Greenspan says, “the digital asset space is plagued with a lack of metrics to measure absolute value and instead must defer to relative value, or more often … momentum, which is what got us to the situation this week.”

When it comes to YTD changes, Aave is up a whopping 2,300%, Unibright 1,460%, Kyber Network 810%, Band Protocol 643%, Elrond Network 540%, and Bancor 500%.

Today, IOV Blockchain 80%, Kava is up 26%, Aave 18%, Algorand 17%, Bytom 15%, Hyperion 13.75%, and Balancer 11%.

According to trader Crypto Michaël, until bitcoin breaks out of its range, altcoins will continue to outperform bitcoin.

“Essentially, anything between $8,500 and $10,500 is playground time for altcoins, and that could last a few months longer,” he said.

But there are still some coins that are not rallying during this frenzy. Bitcoin hard fork Bitcoin Cash (BCH) and BCH’s hard fork BSV; both have been struggling in this rally. Litecoin is another top coin that is not giving any signs that it will lift off.

Although EOS’s YTD performance remains the worst with 1.41% losses, it has started stirring, but it remains to be seen if it will be able to wake up.

Monero did move, but the gains have been comparatively of small size, the same as Tron (TRX), NEO, Hedera Hashgraph, and Lisk. Maker’s value dropped this week.

Bitcoin and Ethereum meanwhile remained stable this week around $9,200 and $240, respectively.

Read Original/a>
Author: AnTy

So Many Catalysts Calling for a Remarkable Bull Rally of Ethereum

The second-largest cryptocurrency network Ethereum has recorded 85% gains in 2020 so far as it trades at $243.

However, this might not be it for Ether and we may record more gains ahead given the number of factors fueling Ethereum growth.

“If ETH doesn’t go on a significant & idiosyncratic run over the next 6 months then I don’t see how it ever will,” said analyst Ceteris Paribus.

Increasing Gas Usage & Skyrocketing Fees

The network usage is already hitting new highs with blocks getting increasingly full over the last full weeks. To address this increase in block fullness, Ethereum miners have voted to increase the network’s gas limit by 25%.

Source: CoinMetrics

Network fees are also skyrocketing, in 2020 so far, the total network fees have jumped 848%.

Over the last two weeks, ETH actually flipped BTC in terms of daily transaction fees, the last time ETH fees topped BTC fees for at least 14 consecutive days was in July 2018. But ETH median fees between $0.47 and $0.65 are still lower than BTC’s which remains between $1 and $1.50.

Moreover, stablecoins are exploding and the majority of them are launched on Ethereum blockchain. Stablecoin issuance which is plugged to consumer demand has grown immensely in 2020 during the coronavirus pandemic just as the demand for USD has risen globally.

The total market cap of stablecoin has surpassed $11 billion while Tether is close to shooting past $10 billion. USDT is also one of the highest gas-consuming applications on Ethereum today.

DeFi Boon

The growing DeFi space is one of the bullish catalysts for Ether. Just recently, the total value locked in DeFi space jumped to a new high of $1.50 billion. The amount of ETH locked in DeFi has also jumped back to 3 million.

“As that outstanding ether supply comes down and demand from DeFi platforms hits escape velocity, ETH will rally hard,” is what John Todaro, head of research at TradeBlock believes.

Just last week COMP token prices skyrocketed which pushed the market cap of DeFi past $6 billion. When these tokens start crashing down, Ether and BTC are expected to pump.

DeFi boon is expected by many experts to result in profits to Ethereum.

The One Way Street of ETHE

Another immediate bullish catalyst is ETHE shares unlocking. The lockup period for the first batch of Grayscale ETHE shares has ended, with sellers bringing the premium down. Already it has declined by 44%. This is pushing some investors to buy spots to reissue shares.

“Float unlocking will depress premium, but if premium stays high, arb funds will dump ETHE on secondary and re-enter at NAV with new spot ETH,” Paribus said.

The reason why ETHE is a “meaningful driver” for Ethereum is that most deposits to this Grayscale product are borrows.

Avi Felman, head of trading at BlockTower explained that funds are borrowers of ETH placing the crypto asset into ETHE to create ETHE shares while lenders are long-term trying to get yield.

“Normally borrows are “created supply” as people borrowing usually short. In this case, there is no created supply as it gets locked in the trust instead of sold on the market,” he said.

Borrowers are still short ETH, a risk which gets shifted to ETHE products but they were locked down so when a sizable amount of ETH unlocked, it resulted in ETH prices shooting up.

The consistent spot demand and the arbitrage on ETHE will lead ETH further higher.

All the Bullishness

ETH 2.0 Staking is already garnering much attention with wallets with the required Ether for staking, 32 ETH, growing, and ready for staking.

Big names among the crypto exchanges, Binance and Huobi are already backing Consensys to test its new staking as a service offering for Ethereum 2.0.

The layer 2 scaling solutions also add to all the Ethereum bullishness with the fundamental structural shifts in the form of ETH 2.0 and EIP 1559 further creating “a strong bid” for Ethereum and a nice bonus down the line for Ethere prices.

As analyst Paribus said, “Everything is lining up. If it doesn’t happen now, when?”

Read Original/a>
Author: AnTy