Layer 2 Scaling Solution Polygon (MATIC) Sees Nearly $4B in TVL as QuickSwap Gains Traction

Layer 2 Ethereum Scaling Solution Polygon (MATIC) Sees Nearly $4B in Value Locked as QuickSwap Gains Traction

Increasing use of Ethereum, leading to extremely high fees on the network, has been resulting in BSC and Solana (SOL) getting traction. But it is not only layer 1 chains that are gaining support, but layer 2 solutions are getting just as much usage.

Polygon, previously known as Matic, is one such project that is working on transforming Ethereum (ETH) into a multi-chain ecosystem with secured Layer 2 chains and standalone chains. ETH 15.91% Ethereum / USD ETHUSD $ 3,425.84
Volume 49.15 b Change $545.05 Open $3,425.84 Circulating 115.73 m Market Cap 396.46 b
4 h Canadian Fintech Firm Mogo Adds Another 146 Ethereum to Its Crypto Portfolio 5 h eBay CEO says Company Is Looking at Crypto as Payment Option & Selling NFT on the Platform 6 h Ethereum Co-Founder Vitalik Buterin is Now a Billionaire, Holding Over 333,520 ETH
BNB 8.83% Binance Coin / USD BNBUSD $ 676.92
Volume 5.28 b Change $59.77 Open $676.92 Circulating 153.43 m Market Cap 103.86 b
7 h Layer 2 Ethereum Scaling Solution Polygon (MATIC) Sees Nearly $4B in Value Locked as QuickSwap Gains Traction 9 h Another Binance Smart Chain (BSC)-based DeFi Protocol Gets Exploited for Over $30 Million 2 d Binance Smart Chain (BSC) TVL Reaches $45 Billion, Catching Up Fast to Ethereum
SOL -2.45% Solana / USD SOLUSD $ 45.71
Volume 609.8 m Change -$1.12 Open $45.71 Circulating 272.64 m Market Cap 12.46 b
7 h Layer 2 Ethereum Scaling Solution Polygon (MATIC) Sees Nearly $4B in Value Locked as QuickSwap Gains Traction 6 d BadgerDAO & RenVM Launch A ‘Bridge’ to Bring Bitcoin to Ethereum in ‘One Click’ 6 d USDT Supply on Tron Surpasses Ethereum as Tether Hits $50 Bln in Market Cap

Currently, the side chain has $3.88 billion of value locked in it, the highest among any other side chain. Next in line is ZKSwap, with under $600 million in value locked. Sidechain xDAi has under $200 million, while Optimism has just under $100 million locked on it.


Polygon’s Proof of Stake sidechain also sees a significant increase in its transaction volume, so much so that it is exceeding Ethereum’s transaction count by nearly 20%.

“Polygon is currently doing ~1M daily txs and has onboarded numerous DeFi blue chip projects, including AaveAave, which has >$2B in liquidity there — disproving the “Ethereum can’t scale” narrative,” noted Spencer Noon, general partner at Variant.

Compared to Ethereum’s 150 million unique addresses and BSC’s 61 million, Polygon still has only about 400k unique addresses. And top 3 addresses sent 573,000 transactions last week, with arbitrage trades making up a large majority of it, as per Nansen. Also, only 25% of all Polygon addresses ever sent transactions on Ethereum.

One of the primary reasons for the growth in transactions can be attributed to its native DEX Quickswap, which is accounting for half of those transactions.

A big increase was seen at the end of last month, seeing as much as $260 million in volume and over half a billion dollars in liquidity on QuickSwap.


As a result of this growth, the tokens are also enjoying an uptrend. Quick is currently trading at $1,053, near its all-time high of $1,590 hit on Friday, presenting a 500% gain in the last week.

The same day, Matic hit a new ATH of $0.937. Currently, at $0.8118, MATIC is up from $0.3 at the beginning of last month and $0.0176 at the start of the year.

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Author: AnTy

Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report

Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report

The company saw a “tremendous” amount of interest from treasury executives, taking positions in bitcoin for the first time.

Genesis, a wholly-owned subsidiary of Digital Currency Group (DCG) which is also the parent company of Grayscale, released its Q1 2021 report that shows that it facilitated over $60 billion in digital asset trades, loans, and transactions across the quarter.

The institutional digital asset lender and prime brokerage service provider reported an increase of over 25% of total activity in volume from corporates. There has been a tremendous amount of interest from treasury executives, which is expected to continue throughout the year. Matt Ballensweig, Head of Institutional Lending at Genesis said,

“If 2020 marked the beginning of the institutional epoch in crypto, the first quarter of 2021 was a Cambrian explosion of institutional inflows into crypto assets of all stripes.”

While spot saw $31.5 billion in volume, a jump of 287% from the previous quarter, $10.5 billion were traded in its OTC market, which was a surge of 133% QoQ. Much of this growth, Ballensweig said, came from new market participants, “many of whom are corporates taking positions in bitcoin for the first time.”

The key drivers of growth were higher frequencies of trades and increased notional per trade from crypto-native hedge fund clients.

In Q1, the company recorded over $20 billion in new originations, increasing 163% from the previous quarter. Active loans outstanding meanwhile have gone up 136% to $9 billion.

Genesis saw growth for twelve straight quarters in cumulative originations, which increased 94% to bring the total originations since launch in March 2018 to $40 billion.

The company recorded a decline in bitcoin borrowing demand, which, as we reported, was also noted by BlockFi, which as a result decreased the interest rate on its crypto assets for the second time in just two months.

This drop in BTC yields is due to the supply side expanding while the demand side has fewer low-hanging opportunities.

“BTC basis and funding arb still very much present- turning a lot more institutional heads to seriously look at crypto yield opps,” noted Ballensweig.

BCH -3.26% Bitcoin Cash / USD BCHUSD $ 880.78
Volume 2.63 b Change -$28.71 Open $880.78 Circulating 18.72 m Market Cap 16.49 b
10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report 5 d Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions 1 w Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest
ETC -1.44% Ethereum Classic / USD ETCUSD $ 34.51
Volume 1.64 b Change -$0.50 Open $34.51 Circulating 116.31 m Market Cap 4.01 b
10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report 2 w Grayscale Bitcoin Trust (GBTC) Is Fast Approaching World’s Largest Commodity ETF, GLD with $57B AUM 2 w Robinhood Reports 50% More Active Crypto Users at 9.5 Million Than Coinbase
XRP 3.14% XRP / USD XRPUSD $ 1.40
Volume 7.63 b Change $0.04 Open $1.40 Circulating 45.4 b Market Cap 63.56 b
6 h Blockchain Company Paxos Closes New Funding Round Worth $300 Million 6 h SBI Group CEO Reveals Ripple IPO Plans After Settlement With SEC Over XRP Lawsuit 10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report
LTC -1.26% Litecoin / USD LTCUSD $ 255.46
Volume 3.55 b Change -$3.22 Open $255.46 Circulating 66.75 m Market Cap 17.05 b
10 h Demand to Borrow Bitcoin Declining While Ether sees Significant Increase: Genesis Q1 Report 2 d BlockFi Slashes Rates on BTC, Ether, LTC, LINK & PAXG for the Second Time This Year 5 d Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions

However, its loan portfolio increased substantially in value through a combination of new issuance across cash, ETH, and Decentralized Finance (DeFi) assets. The biggest increase was in ETH borrowing, from 15.5% in Q4 2020 to 27% in Q1 this year.

ETH and other altcoins now represent 35% of Genesis’s lending business. The report notes the institutional adoption of ETH, which became a major theme on the back of DeFi’s growth with EIP 1559 providing deflationary catalyst bolstering ETH’s monetary premium.

“With the rise of DeFi protocols, and yield opportunities on platforms including Compound, Uniswap, Sushiswap, Aave, and Maker, there are more openings for traders to arbitrage Centralized Finance (CeFi) lenders with DeFi.”

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Author: AnTy

Nasdaq listed Canaan Creative Sees A Boost in Demand for Bitcoin Miners As Crypto Prices Rise

Nasdaq listed Canaan Creative Sees A Boost in Demand for Bitcoin Miners As Crypto Prices Rise

Bitcoin Mining firms are struggling to meet the increased demand for mining machines despite the rising prices of cryptocurrencies.

According to Canaan Creative, a Nasdaq listed firm, crypto mining orders have been rising despite Bitcoin’s hitting new highs in the recent past. Over the weekend, Bitcoin’s price surged to a new level, trading at $60,000. The king coin has been bullish over the last year, with its value increasing by about 110 percent since January this year.

Buoyed by the rising price, Bitcoin mining equipment manufacturers have witnessed their businesses hitting the peak with some grappling to meet the soaring demand.

As one of the largest mining equipment manufacturers, Canaan Creative claims that its orders have been increasing since 2020. The firm stated that North America and Central Asia are the largest sources of the current surge in demand.

According to Global Times, the firm’s presale mining hardware to the North American region were about 120,000 units which is a 17% surge from mid-Feb.

In the wake of the global shortage of mining chips, Canaan entered into agreements with various fabrication plants in advance, giving the company leeway to manufacture mining hardware as per the market demand.

To take advantage of the soaring Bitcoin prices, the firm intends to kick-off its own mining business later in the year rather than just providing mining machines.

The firm stated that Bitcoin’s price is likely to be bullish following the recent plans by the US government to inject about $1.9 trillion into the economy following the sluggish growth and collapse due to the Covid-19 pandemic.

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Author: Joseph Kibe

Austrian Financial Market Authority (FMA) Sees A Sharp Rise in Crypto-Related Fraud

Austrian Financial Market Authority (FMA) Sees A Sharp Rise in Cryptocurrency Related Fraud

The Austrian regulator reported a record amount of potential frauds in 2020. And cryptocurrencies are at its center, with two-thirds of investment fraud reports related to digital assets trading products.

Besides cryptocurrencies, the frauds were related to gold and stocks, Financial Market Authority said in a statement.

A rise in scam offerings for digital assets was seen on “dubious” platforms that were often advertised on social media like WhatsApp, Telegram, Facebook, or TikTok, the regulator said.

“We see a great need for stricter regulation,” FMA spokesman Klaus Grubelnik said on Friday.

He further said the prosecution of these cryptocurrency-related frauds was even more difficult because investigations have to be conducted across borders. While fake offerings for bullion and stocks have been around forever, the shaft has now been seen towards the digital assets “because of the hype,” Grubelnik said.

In 2021, so far, the price of Bitcoin has surged past $57,000, hitting a trillion-dollar market cap. The entire cryptocurrency has been enjoying a bull run, with the overall market capitalization going past $1.75 trillion.

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Author: AnTy

“Everything Going Up” Season Sees Cardano (ADA) Trumping Polkadot (DOT)

“Everything Going Up” Season Sees Cardano (ADA) Trumping Polkadot (DOT)

A new macro trend has begun for Cardano (ADA) after the network adds the ability to build decentralized applications (DApps) on it and teases “Ouroboros Omega.”

In the ongoing raging bull market, we are experiencing everything going up, which has been going on with the stock market, but in the cryptocurrency market, it is a lot more heightened.

Bitcoin has already gone past $48,000 BTC 9.58% Bitcoin / USD BTCUSD $ 47,030.03
Volume 100.01 b Change $4,505.48 Open $47,030.03 Circulating 18.62 m Market Cap 875.9 b
2 h BlockFi Officially Launches the Bitcoin Trust with Fidelity Digital Assets as Custodian 3 h It’s Not a Top, Bitcoin in a “Rational Bubble” says Allianz Economic Advisor 4 h “Everything Going Up” Season Sees Cardano (ADA) Trumping Polkadot (DOT)
, and Ether is trading well past $1,800 ETH 4.41% Ethereum / USD ETHUSD $ 1,773.18
Volume 46.29 b Change $78.20 Open $1,773.18 Circulating 114.6 m Market Cap 203.21 b
2 h Binance Backs Parachain Candidate, Plasm Network; Making First Investment in Polkadot Ecosystem 2 h BlockFi Officially Launches the Bitcoin Trust with Fidelity Digital Assets as Custodian 4 h “Everything Going Up” Season Sees Cardano (ADA) Trumping Polkadot (DOT)
, with altcoins experiencing even wilder price movement.

In 2021, so far, the notable leading cryptos include COVER (8,800%), BAO (2,972%), DOGE (1,290%), BADGER (1,272%), ALPHA (1,000%), LUNA (730%), ROOK (613%), AAVE (438%), CRV (386%), 1inch (354%), SOL (328%), SUSHI (313%), UNI (302%), and Cardano (300%).

The majority of these top gainers are DeFi tokens, which have been exploding into popularity and value.

Among the top altcoins, Cardano (ADA) is actually turning out to be an outlier for the past few days as its price started uptrending just this month. ADA started the year at around $0.175 and this month at just under $0.340, only to jump above $0.753 in the past 24-hours. ADA -0.22% Cardano / USD ADAUSD $ 0.70
Volume 6.42 b Change $0.00 Open $0.70 Circulating 31.11 b Market Cap 21.9 b
3 h Bitwise Files Application to Launch Exchange Traded Fund (ETF) for ‘Crypto Innovators’ 4 h “Everything Going Up” Season Sees Cardano (ADA) Trumping Polkadot (DOT) 1 d Cardano’s ADA Overtakes XRP to Become Fourth-Largest Cryptocurrency After ‘Mary’ Hard Fork

“ADA has confirmed the breakout from its multi-year triangle. After over 670 days of consolidation inside this pattern… A new macro trend has begun,” noted trader Rekt Analyst.

These gains helped the open-source, smart-contract platform become the 4th largest network with a market cap of $22.36 billion, as per Messari, a step above Polkadot (DOT), a blockchain network designed to support various interconnected, application-specific sub-chains called parachains, whose market capitalization is $21.64 billion. DOT 1.20% Polkadot / USD DOTUSD $ 23.01
Volume 3.8 b Change $0.28 Open $23.01 Circulating 908.48 m Market Cap 20.9 b
2 h Binance Backs Parachain Candidate, Plasm Network; Making First Investment in Polkadot Ecosystem 3 h Bitwise Files Application to Launch Exchange Traded Fund (ETF) for ‘Crypto Innovators’ 4 h “Everything Going Up” Season Sees Cardano (ADA) Trumping Polkadot (DOT)

As the price of ADA continues to increase, so does the number of traders for ADA, addresses that have held a crypto-asset for less than 30 days, which reached a multi-year high. In February, this value has increased to over 11.82b ADA, 33.8% of the circulating supply, as per IntoTheBlock.

The network has also been seeing regulator updates with its third phase, “Goguen,” focused on integrating smart contracts into the blockchain, launching in December.

While the Shelley era decentralizes the system, Goguen adds the ability to build decentralized applications (DApps) on Cardano, as per its roadmap.

Amidst all this, Cardano creator Charles Hoskinson, who also co-founded the second largest network Ethereum, announced “Ouroboros Omega.”

“If you think that we are rocking it now, just you wait until we talk about Ouroboros Omega…..” tweeted Hoskinson last week.

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Author: AnTy

Cryptocurrency Market Sees $1 Billion USD of Real Capital Flowing Out of Altcoins

Cryptocurrency Market Sees $1 Billion USD of Real Capital Flowing Out of Altcoins

For most of the altcoins, the deep losses have already been reverted in this week of Pump-Dump-Pump.

XRP has taken the entire crypto market down with it.

The cryptocurrency carnage that occurred on late Wednesday night wiped out about $62 billion from the market.

XRP has lost 63.5% of its value since Monday when Ripple CEO Brad Garlinghouse tweeted that SEC is going to sue them for selling unregistered securities in 2013.

XRP/USD went as low as $0.212 before recovering to the $0.263 level.

Still, shorting XRP won’t be as fun here as “Funding rate is absolutely insane. Similar to the funding rate for BTC during the March capitulation. This can short squeeze so hard,” noted trader CryptoSqueeze.

While the world’s largest cryptocurrency, Bitcoin barely felt the effect, as it only dropped to $22,600 and is already back above $23,000, the second-largest cryptocurrency wasn’t this lucky.

ETH went down hard, losing nearly 12% of its value as it crashed to $550, currently working on getting back to the $600 level.

When it comes to the DeFi market, the total value locked (TVL) in the space hasn’t seen much change from last weekend’s ATH of $14 billion, currently standing at $13.3 billion.

As for tokens, SUSHI nuked only to get back to the previous level soon after. Much like SUSHI, several altcoins fell hard. LINK is another example of losing easily 30% of their value only to move back halfway up.

Over the past week, the notable losers include HAKKA (51%), SWRV (35%), CRV (31%), bzrx (28%), COVER (26%), COMP (25%), YFI (18%), AAVE (9%), and UNI (8.40%).

This week, SNX was the outlier as it diverged from the rest of the DeFi world. SNX surged more than 42% in the first three days of the week only to feel the pressure and losing 24% of its value since then.

This altcoin carnage resulted in their collective market capitalization down approximately $31 billion. This amounts to about “$1b USD of real capital flows out of alt-coins using FundStrat estimations of crypto cap change per dollar invested,” noted on-chain analyst Willy Woo.

Altcoins’ loss has been Bitcoin’s gain as its dominance surpassed 70%, to reach a one-year high.

Overall, markets remain in the red going into the weekend ahead of the Christmas celebration.

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Author: AnTy

Thailand Excise Dept to Adopt Blockchain In 2021; Boosting Collection Efficiency

Blockchain technology sees significant increases in adoption, particularly from companies looking to leverage it and streamline their operations. Beyond companies, there has also been an increase in government blockchain applications. In Thailand, the official tax agency is hopping on the trend.

Streamlined Operations to Benefit the Bottom Line

The Thai Excise Department plans to use the blockchain to improve its revenue collection capabilities, the Bangkok Post reports.

Per the report, the move became necessary following the agency’s resolve to work on its tax collection modalities rather than increase taxes in a downturn.

Lavaron Sangsnit, the agency’s Director-General, says the agency could use the technology to assess tax liability for imported products and assess other government agencies’ revenue collection. Like other countries in Asia, Thailand is expecting a drop in income due to the impact of COVID-19.

The government projects a drop in tax revenues for 2020, with 530billion baht ($17.5 billion) expected to come in for the fiscal year. This marks a 3.3 percent reduction from the 548 billion baht ($18 billion) that it got last year. Looking to streamline operations and improve collection efficiency, the Department will now move into blockchain.

This isn’t the agency’s first foray into blockchain. Last year, the department developed a new, blockchain-based tax refund method for oil exporters. At the time, former Director-General Patchara Anuntasilpa said the system was one of the three changes that the agency planned to incorporate in the near future.

Patchara highlighted that the future tax refund system would require oil exporters to pay excise taxes and only claim refunds after they had shipped their products. With blockchain, the Excise Department would be better suited to inspect tax payments and shipping processes.

The Director-General added at the time that the Department was also working on using blockchain for the distribution of playing card licenses and annual fee payments for liquor and tobacco.

Collaborating With Other Departments

Now, with countries looking to get back on their feet following the coronavirus, Thailand is also making changes to its entire tax system. Going into the 2021 fiscal year, the Revenue and Customs departments are also expected to incorporate blockchain for their operations. The Director-General added that the technology could help thoroughly assess each government department’s revenue collection, integrating all that data into a single database.

Thailand is one of the most blockchain-friendly countries globally, with the technology seeing rapid adoption in both the private and public sectors. With banks focusing on improving cross-border payments and the government using the technology to streamline revenue collection, the Southeast Asian country is taking payment efficiency more seriously.

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Author: Jimmy Aki

Reserve Bank of Australia Is ‘Closely Watching’ CBDC Research, Despite A ‘No Rush’ Attitude

Barely a month after saying it sees no rush in launching a central bank digital currency (CBDC), the Reserve Bank of Australia (RBA) has confirmed that it is still following closely on the developments in this space. RBA’s head of policy payments, Tony Richards, said that the monetary authority is also considering going the ‘wholesale’ way where the CDBC would be limited to particular financial institutions.

Richards spoke at a Blockchain, Crypto, and FinTech conference held at the University of Western Australia. He highlighted some of the considerations that RBA will focus on as it continues to deliberate on the CBDC proposition,

“We will be continuing to consider the case for a CBDC, including how it might be designed, the potential benefits and policy implications, and the conditions in which significant demand for a CBDC might emerge.”

While RBA’s mid-September report was skeptical about issuing a CBDC, Richards noted that a public policy case for its issuance is yet to be made. He went on to add that the bank is currently looking at the design options that it could take if it eventually launches a CBDC. Unlike Bitcoin, whose foundation is on the blockchain, Richards anticipates that an Aussie CBDC will take the form of a centralized & permissioned digital ledger.

Other consideration factors include whether to develop the CBDC as a token-based or account-based ecosystem. The RBA is also looking at the retail case as part of its ongoing research on the policy and technological effects of launching a CBDC. Richards confirmed that they would continue to follow closely what CBDC advanced jurisdictions are doing,

“If some jurisdictions do move towards full implementations of CBDC, there will be many central banks like us who will be closely watching.”

With the current CBDC developments, it appears that these digital assets may soon become part of legal backed tenders in global circulation. The Bank of International Settlements (BIS) recently released a CBDC report in collaboration with seven major central banks. Russia has also issued a consultative paper on CBDCs, while Japan’s central bank is set to pilot its digital yen in 2021.

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Author: Edwin Munyui

Ripple (XRP) Price Analysis (May 1)

Key Highlights

  •  XRP/USD market still sees a continual process of price retracements.
  •  The US dollar is now a bit pressing harder against the crypto under a high value of $0.24.
  •  Traders should be cautious of keeping too long on shorting positions of this trade.

Ripple (XRP) Price Analysis

• Major distribution territories: $0.26, $0.28, $0.30
• Major accumulation territories: $0.20, $0.18, $0.16

There is still a continual process of price retracements in the valuation of XRP/USD market. The base-instrument had once prevailed over the worth-value of its counter currency during the yesterday’s day trading operations while a high mark at $0.24 was touched.

The buyers have to put all strength together from around a low price value at $0.22 territory. Meanwhile, a breakdown at a $0.20 accumulation territory may result in revisiting a lower point at $0.18.

Ripple Technical Indicators Reading

The 50-day SMA indicator with the Middle and Lower Bollinger Bands are bent pointing towards the north. The Upper Bollinger Band has a curved towards the south-east direction above the current market line. That suggests that the bears are slightly putting the crypto-trade under a small pressure. The Stochastic Oscillators are within ranges 0f 40 and 20. And, they now briefly point to the south-east direction. That signifies the possibility of seeing a line of choppy price movements in a near trading session.


$0.20 price territory, has now come to serve as the key point that its breaking down will cause serious sell-offs. Nevertheless, there’ll still be a need to be cautious of keeping long on short-trading positions at a downward break of the market line mentioned earlier.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication ( holds any responsibility for your financial loss.

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Author: Ben Jordan

Ethereum Price Crash Causes ‘Extreme’ Network Congestion; Gas & DeFi Shot Up


  • Ethereum price sees its biggest percentage drop ever
  • Borrowing demand for DAI is currently at record levels
  • ETH median gas price just spiked to the highest level it’s been in over 1 year
  • Ethereum network clogged while unconfirmed transactions rose because of this Binance increased ETH withdrawal fees by 100% and ERC20’s by 66%

Today’s crypto carnage saw the second-largest cryptocurrency losing 33 percent of its value and is currently trading at $141.44.

The price of Ether fell from about $200 to as low as $129, making it the biggest percentage drop in the digital asset’s price. Ever. And this has been on the back of substantial volume as currently, over a billion dollars worth of Ether are exchanging hands-on top ten exchanges with real volume.

This drop came amidst the broader market turmoil. For the first time since May, Bitcoin dropped to $5,700 level and the US stock market extended its losses on Thursday triggering yet again a trading halt within 10 minutes of the market opening.

The global markets are suffering because of the continued uncertainty and fear about the coronavirus (Covid-19) which has been declared a pandemic by the World Health Organization (WHO).

This black swan event, however, had a lot more complications for Ether besides just price.

Massive network congestion

The crash in Ether price resulted in the price of Gas, the computation power on the Ethereum network to shoot up. Measured in gwei, Gas prices went to 100, making the cost of sending basic transactions in the next block north of $0.30.

“Ethereum’s price drop has lead to massive network congestion. ETH median gas price just spiked to 29 gwei – the highest it’s been in over 1 year,” noted crypto analysis company Glassnode.

Source: @glassnode

Similar spikes in gas prices have been seen during bouts of volatility in the past as well.

Apart from the gas price, the Ethereum Network is also having a considerable backlog, clogging transactions for as much as an hour and more. As per Etherscan, unconfirmed transactions on the Ethereum network jumped to 120k today, for which reportedly ERC20-based Tether (USDT), which crypto exchange Binance disabled for a short amount of time and DAI liquidations are responsible.

To run things faster, Binance increased the ETH withdrawal fees by 100% and ERC20 withdrawal fee by 66%.

“To better facilitate ERC20 and ETH withdrawals during this period of high congestion on the ETH network, we are making the following temporary adjustments: ETH withdrawal 0.003 ETH is now 0.006 ETH. ERC20 withdrawal 0.006 ETH is now 0.01 ETH. Withdrawals will re-open shortly,” announced the exchange.

Liquidation issues

Another impact of this price crash has been on the Decentralized Finance products (DeFi). The decline in Ether price caused liquidations of DeFi derivatives trading and collateralized debt.

As the network is congested, it means it is taking time for the collateral to get liquidated. With a dominance of 58% in DeFi, it affected the Maker users. MakerDAO participants are advised to repay, pay back debt, or add more collateral to increase their ratio.

For automation users, DeFi Saver, a management solution for decentralized finance protocols said they “cannot provide any guarantees regarding outcomes” in a scenario where the price in a user’s MakerDao drops below their liquidation price.

Not just in bear markets but in booming periods as well, Ethereum Network has gotten congested.

One positive thing that happened during today’s bloodbath is an increment of 6.7% in the ETH locked in DeFi. It yet again jumped above 3 million, according to DeFi Pulse.

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Author: AnTy