Ether Flippining Bitcoin a Real Possibility But What’s the Caveat

In less than a month, the price of ETH went from about $2,000 to $4,380.

This new ATH came while Bitcoin price chopped, which helped send ETH to nearly 0.081 BTC, a level not seen since May 2018.

ETH has been enjoying a massive run-up, finally catching up to Bitcoin’s late 2020 rally, and is currently moving towards becoming a half a trillion-dollar crypto asset.

In addition, it’s not just Bitcoin that has been seeing institutional adoption; Ethereum is attracting the attention just as much. Eth investment vehicles have been continuously seeing inflows, and several ETH ETFs are also trading on TSX. Reportedly, a good amount of institutional capital is sitting on the sidelines, waiting to enter ETH.

Furthermore, regular bitcoin futures on CME that were launched in Dec. 2017 have been lagging in volume over the past couple of months, only to hit $4 billion on Wednesday, for the first time since April 22nd, as per Skew. Ether futures, meanwhile, in a matter of three months, have exploded, with volume surpassing over $2 billion on May 13 on CME, up from just $200 million on April 15. Trader CL wrote,

“At the moment, CME participants want ETH, not BTC, it seems, BTC open interest has been stagnant, meanwhile ETH demand from CME has blown my expectation by magnitudes for some reason I thought it was gonna be a dead product.”

Tesla CEO Elon Musk citing environmental concern, which has been gaining a voice for some time, has also put forward a new hurdle in front of Bitcoin.

All of this, combined with the EIP 1559 that burns gas fees, effectively making ETH a deflationary asset, has people seeing Ethereum flipping Bitcoin as the number one crypto asset becoming a reality.

Su Zhu, the CEO of Three Arrows Capital, who believes we are in a supercycle, estimates that there is a 50% probability that the Ether market cap would surpass Bitcoin’s during this bull run.

While brief, it is entirely possible, given that Ether has always outperformed the leading trillion-dollar cryptocurrency, the long term is anyone’s guess.

Former BitMEX CEO Arthur Hayes, who, along with two other exchange executives, are set to appear for trial in the US next spring, sees this probability of the flippening occurring to 30%. This probability is revised from 0%, affected by a lengthy report by Nikhil Shamapant, who sees ETH reaching $150,000 by Jan. 2023.

While Hayes is bullish on Ethereum and sees a big number for the crypto asset himself, in his latest note, he points out the issues in both the cryptocurrencies that they need to overcome.

He pointed out that while the Bitcoin community fears that Ether will one day overtake their beloved currency, “mETH heads” believe Ether can be both the hardest form of crypto money and the world’s best-decentralized computer.

But “the best forms of money have no industrial use case. Fiat currencies are very useful for commerce because they are intrinsically worthless. The demand to use a particular fiat is completely tied to the usefulness of its network,” he wrote.

Ether’s case is not purely monetary, Hayes said, pointing to the DAO hack when the community chose to roll back the blockchain and giving confidence to investors to continue experimenting with DeFi applications rather than upholding the blockchain’s immutability by letting the funds be drained and be more akin to a hard monetary instrument. He said,

“When in doubt, the Ethereum community will always elevate the needs of the decentralized computer over the needs of being a true hard monetary instrument.”

As history presents, the current EIP-1559 inflation schedule will change too because as the platform becomes more useful, more gas is spent and more ETH burned, making it deflationary.

“If we are underestimating the impact of DeFi on human economic interactions, there is a future where there isn’t enough Ether supply to allow the system to function,” he said. And according to him, a high ETH price won’t solve the supply issue because there is “no magic ETH in the ground” to be exploited.

However, scaling, Rollups, L2, sidechains, and sharding, will lower the floor equilibrium. These scaling solutions that the community is currently working on and are increasingly gaining traction are meant to make the network fast and cheap.

The “shortcomings pointed out by Arthur are solved by scaling solutions and dynamic burn rates,” says Tetranode, an early investor in Ethereum.

While Ether can’t be both, the hardest form of crypto money and power the world’s decentralized computer, Hayes said, it doesn’t mean Ether’s market cap cannot eclipse Bitcoin’s.

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Author: AnTy

More Than $284 Million In DeFi Lost Through Hacks And Exploits Since 2019: Messari Research

More Than $284 Million In DeFi Lost Through Hacks And Exploits Since 2019: Messari Research

  • About $284 million in Decentralized Finance (DeFi) outfits based on Ethereum have been lost through hacks and exploits since 2019.
  • The popularity and unprecedented growth of decentralized finance (DeFi) have seen the sector become a soft target for exploiters and hackers.

In a report released by crypto data research firm Messari, DeFi platforms have so far lost more than $284.9 million to unscrupulous exploiters and hackers. The firm analyzed DeFi data from 2019. The report states that the lost figure represents about 0.65% of the entire amount currently in DeFi platforms within the Ethereum network.

Through their official Twitter account, Messari provided a breakdown of the findings.

image1

The research outfit stated that only a fraction of the lost fund is covered by the DeFi insurance, emphasizing the importance of insurance growth in the sector. Although $284 million is a large amount of money, it is important to note that at the moment, about $117.6 billion is locked in different DeFi platforms.

The report shows that flash loan attacks account for about 50 percent of all the hacks. This offers extra evidence that this is the most common exploitation method in the DeFi segment. It is no doubt that the majority of DeFi hacks have been in the form of flash loan attacks which in most cases capitalize on temporary price flaws.

Although there was a notable decline in crypto hacks last year, DeFi heists and attacks accounted for over half of the total attacks in the crypto sector during the year. This year, Cream Finance and Alpha Homora have fallen victims to unscrupulous attacks leading to the loss of huge amounts of funds. In February, Alpha Homora suffered the worst single attack in the DeFi sector, losing about $37.5 million.

DeFi hacks and exploits are not only found in the Ethereum chain since the Binance Smart Chain (BSC) has also suffered attacks in the recent past. A BSC-hosted platform, Uranium Finance, suffered a $50 million heist. The platform realized that the attacker took advantage of bugs within the platform’s smart contract siphoning the money during the expected token migration occasion.

Messari’s report explains that the time is ripe to embrace insurance protocols currently on the rise. Protocols such as Etherisc and Nexus Mutual can offer valuable cover to such hacks and exploits. These protocols can ensure investors do not lose their money when an attack occurs.

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Author: Joseph Kibe

Olives Are A Better Inflation Hedge Than Bitcoin, says “Black Swan” Author

Olives Are A Better Inflation Hedge Than Bitcoin, says “Black Swan” Author

Olives are a shitty monetary asset, contrary to what bitter nocoiners may claim, counters Saifedean Ammous, author of The Bitcoin Standard.

Once a Bitcoin enthusiast, “Black Swan” author Nassim Nicholas Taleb has become a critic, calling it a “gimmick” and “Ponzi” now.

In an interview with CNBC on Friday, Taleb said the trillion-dollar cryptocurrency is also too volatile to be an effective hedge against inflation.

“Basically, there’s no connection between inflation and bitcoin. None. I mean, you can have hyperinflation and bitcoin going to zero. There’s no link between them.”

“It’s a beautifully set up cryptographic system. It’s well made, but there’s absolutely no reason it should be linked to anything economic.”

To fight this inflation, investors would be far off purchasing property than buying bitcoin. Even olives would be better, he said, “You’ll have olive oil. If the price collapses, you’ll have something.”

In counter-argument, Saifedean Ammous, author of The Bitcoin Standard, said,

“Olive oil isn’t just glorified lubricant, it’s also a shitty monetary asset, contrary to what bitter nocoiners inflamed from the lack of proper Mediterranean meat nutrition may claim.”

“Not only is olive oil a terrible money, it is also very difficult to verify, unlike bitcoin. It doesn’t have full nodes, and even sophisticated scientific testing isn’t enough to determine if it’s been mixed with rapeseed & canola industrial waste.”

A Game of “Pure Speculation”

To Taleb, bitcoin has characteristics of a Ponzi scheme that’s right out in the open.

His initial support to the cryptocurrency, apparently, Taleb was “fooled by it” because he thought it could develop into a currency.

“Something that moves 5% a day, 20% in a month — up or down — cannot be a currency. It’s something else,” said Taleb. But as legendary value investor Bill Miller said, “volatility is the price you pay for performance.”

Currently trading just under $50k, down from last week ATH of $65k, BTC price is still up over 1,215% from March low.

“I bought into it … not willing to have capital appreciation, so much as wanting to have an alternative to the fiat currency issued by central banks: A currency without a government.”

“I realized it was not a currency without a government. It was just pure speculation. It’s just like a game … I mean, you can create another game and call it a currency.”

Nassim Nicholas Taleb “Black Swan” Author

Given that Bitcoin is the best performing asset of 2021 and was also of the last decade, in spite of the fact that Tesla and other companies accept it as a form of payment, it makes complete sense people are more interested in it as a store of value than spending it on a daily basis.

In the light of growing demand and designed supply cap, the price target for Bitcoin is anywhere between $100k to $1 million in the future.

But for Taleb, that doesn’t matter, as “bitcoin could go to $1 million,” and it wouldn’t change his argument.

“These gimmicks, you have bitcoin today. You may have another one tomorrow. They come and go, and there’s no systematic link between them and the claims they make.”

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Author: AnTy

Riot Blockchain Now Holds 1,565 BTC on Balance Sheet After Mining 104 BTC in March

The bitcoin mining company generated 75% more BTC in Q1 of 2021 than in 1Q20. Meanwhile, mining machine maker Canaan is reporting supply chain disruptions impacting its revenue.

Nasdaq listed Bitcoin mining company Riot Blockchain has released its Q1 2021 results that reveal that it recorded an 80% increase in its BTC production from the same month last year, pre-halving.

Last month, Riot mined 187 BTC, up from 104 BTC in March 2020, bridging the total BTC produced in Q1 of 2021 to 491, a 75% increase over its pre-halving 1Q20 281 BTC.

As of March 31st, 2021, Riot holds 1,565 BTC on its balance sheet, reported the company.

In this new quarter, the company made some new hires in the top management and signed a definitive agreement to acquire Whinstone US, Inc. (“Whinstone”), creating a US-based industry leader in Bitcoin mining, for $80 million cash plus a fixed 11.8 million shares of Riot common stock, having an implied total transaction value of about $651 million.

Based in Texas, Whitstone is located on a 100-acre site with a total power capacity of 750 MW. Upon the closing of this acquisition, which is expected in Q2 of 2021,

“Riot is expected to be the largest publicly traded Bitcoin mining and hosting company in North America.”

Getting More Hash Power

Riot has also signed a large-scale contract with Bitmain for 42,000 S19j Antminers this month to increase its Bitcoin mining hash rate to an estimated 5 exahash per second (EH/s) by the end of 2021.

While preparing for the future, the company received previously ordered 2,400 S19 Pro Antminers shipped in late March and early April this year.

These new machines will be sent to Coinmint, a facility in Massena, NY, which will be installed by late April. Upon deployment, Riot will have a total of 16,146 Antminers in operation utilizing approximately 51 megawatts (“MW”) of energy, with an estimated hash rate capacity of 1.6 EH/s.

By the end of 2022, the company expects a total hash rate capacity of 7.7 EH/s with a fleet of approximately 81,146 Antminers — consuming about 257.6 MW of energy with an overall hash rate efficiency of 33 joules per terahash (J/TH).

This would mark a 92.5% jump over their previously estimated hash rate capacity of 4.0 EH/s by October 2021.

Significant Increase in Demand

On the other hand, crypto mining machine maker Canaan Inc is reporting supply chain disruptions caused by pandemic to impact its Q4 2020 revenue. The revenues fell to RMB 38.2 million ($5.9 million) from RMB 463.2 million ($70.72 million) a year ago and RMB 163 million ($24.9 million) in the preceding quarter.

The Hangzhou, China-based company said although the market demand for high-quality machines both in and outside of China “increased significantly,” in Q4 2020 along with the rising Bitcoin price, “they did not have sufficient inventory to deliver to its customers.”

But CEO and Chairman Nangeng Zhang said they mass-produced its next-generation A12 series of bitcoin mining machines in quarter fourth and delivered them at a large scale in Q1 of 2021.

Canaan (CAN) stocks dropped to $13.14, down about 65% from March high, despite the price of Bitcoin surging about 9% during the same period, hitting a new ATH at $63,200 today.

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Author: AnTy

Bitcoin (BTC) Price May Peak at $400,000 This Cycle: Bloomberg Report

Bitcoin is also “replacing old-guard” gold, that too more sudden than gradual as it fulfills the need for a digital reserve asset in a low-yield environment.

The bitcoin price target has been increased to $400,000 by analyst Mike McGlone in the April edition of Bloomberg’s Crypto Outlook 2021 report.

While BTC price continues to consolidate under $60k, its support has risen toward $50k, with $40k representing more extreme downside risk and resistance around $60k eroding with volatility, reads the report.

With little change with the price, Bitcoin “appears to be a bull market resting for the next leg of its stair-step rally.”

McGlone wrote that a backup to $40k is less likely and a more likely Q2 scenario is to breach $60k resistance and head toward $80k. Overall, the technical outlook for the year, if past patterns repeat, remains “strongly upward.”

Compared to 55x gains in 2013 and 15x in 2017, similar price extremes would take the largest crypto to $400,000 this time, based on the regression since 2011 high.

image1

Source: Bloomberg

The bullish factor is that there are few signs of BTC holders looking to sell as coins continue to leave exchanges indicating signs of demand.

According to the Commodity Strategist at Bloomberg, Bitcoin’s adoption has been rather sudden than gradual, which is only expected to accelerate with a “rising tide from institutions and individual investors.”

This has the narrative shifting to a small crypto allocation from the risks of missing out on the potential for Bitcoin.

Bitcoin is actually fulfilling the need for a digital reserve asset in a low-yield environment as gold, a traditional safe-haven asset, which has been rather lackluster in its performance, said McGlone.

The largest cryptocurrency is actually “replacing old-guard,” which again is more sudden than gradual.

“The adage that money flows to where it’s treated best describes what we see as firming underpinnings for the price of Bitcoin,” states the report. While not bearish for the precious metal, which continues to back into $1,700 support an ounce, most indicators show

“a shifting global tide that favors the nascent digital currency as a reserve asset.”

The report also mentions the dollar’s digital dominance eclipsing China’s yuan’s global adoption. The same is happening in the crypto world, where Tether (USDT), defined as “currency to bitcoin’s digital gold,” is trading more than the cryptocurrency itself.

As for the much-talked-about discount on Grayscale Bitcoin Trust (GBTC), it could be just a normal dip in a strong bull market with appreciation expected to be the most likely outcome.

“The increasing probability for Bitcoin ETFs in the U.S. is supporting the price but contributed to a shift to discount in GBTC.”

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Author: AnTy

South Koreans Are Trading XRP & BTT More than BTC and Ether

South Koreans Are Trading XRP & BTT More than BTC and Ether

Bitcoin kimchi premium is also taking a drop after surging to 22% as Upbit temporarily suspends fiat (KRW) deposits and withdrawals, and Bithumb sees an “increasing” inflow of BTC.

Kimchi premium has been flying high until it wasn’t.

Bitcoin prices on South Korean exchanges at one point today were as much as over 22% higher than other cryptocurrency exchanges. But soon it took a big hit and dropped to about 13%. Ki-Young Ju of data provider Crypto Quant noted,

“It seems someone finally figured out how to arbitrage this Kimchi premium opportunity. The trading volume in 30min time frame on Upbit, the largest Korean exchange, was bigger than Binance’s. This drop seems related to Kimchi pullback.”

As of writing, Bitcoin is trading at $56,740 on Coinbase Pro, $56,824 on Binance, $64,247 on Upbit, $64,469 on Bithumb, and $64,494 on Coinone.

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Bithumb, according to CryptoQuant, is seeing an “increasing” inflow of BTC, unlike all the other exchanges which have been seeing a decrease.

A possible reason for the drop could be Upbit announcing a temporary suspension of fiat (Korean Won) deposit and withdrawals and KRW account registration services.

The suspension has been due to an urgent inspection by the KRW deposit and withdrawal service provider. Once this maintenance is completed, the exchange will resume the services. The translated notice reads,

“After the urgent inspection of the KRW deposit and withdrawal service provider has been completed, the KRW deposit and withdrawal and KRW account registration services will be resumed.”

However, on South Korean exchanges, the biggest trading assets by volume are a bunch of altcoins, with XRP and BitTorrent (BTT) taking the top place BTT 5.17% Blocktrade Token / USD BTTUSD $ 0.00
$0.005.17%
Volume 0 Change $0.00 Open $0.00 Circulating 55.75 m Market Cap 231.49 K
8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 9 h Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’ 1 mon Why Are Celebrities Exclusively Endorsing Tron, “Is TRX Mass Adoption On The Horizon?”
. XRP is trading nearly 16% higher at $1.10 on South Korean crypto exchanges than about $0.95 on Bitfinex. XRP -13.13% XRP / USD XRPUSD $ 0.92
-$0.12-13.13%
Volume 21.61 b Change -$0.12 Open $0.92 Circulating 45.4 b Market Cap 41.74 b
8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 9 h Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’ 9 h Ripple Wins Access to SEC Internal Crypto Discussions Regarding Bitcoin & Ether’s Non-Security Status

XRP on these platforms is actually pulling in more than double the volume of Bitcoin BTC -3.52% Bitcoin / USD BTCUSD $ 56,041.45
-$1,972.66-3.52%
Volume 74.98 b Change -$1,972.66 Open $56,041.45 Circulating 18.68 m Market Cap 1.05 t
6 h Hindenburg Research Shorts Chinese Bitcoin Mining Maker; Ebang Continues its Fundraising Spree 8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 8 h Grayscale Adds Chainlink (LINK) to its Digital Large Cap Fund
and Ether ETH -7.09% Ethereum / USD ETHUSD $ 1,968.30
-$139.55-7.09%
Volume 35.9 b Change -$139.55 Open $1,968.30 Circulating 115.38 m Market Cap 227.09 b
7 h Seven-Time Superbowl Champ, Tom Brady, Is Launching an NFT Platform Called Autograph 8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 8 h Grayscale Adds Chainlink (LINK) to its Digital Large Cap Fund
.

For instance, on Upbit, XRP and BTT are the two most traded crypto assets at $2.9 billion and $2.3 billion volume, respectively, versus $1.2 billion on BTC/KRW pair and a mere $428 million for ETH/KRW.

Korean investors are also piling into the nation’s crypto stocks, driven by Coinbase’s upcoming public listing.

Hanwha Investment & Securities Co., which owns a 6.15% stake in Dunamu, is the best performer among Kospi stocks this year, as it uptrends over 210% YTD.

Dunamu actually operates Upbit, which local media reported last week has also explored a possible listing on the Nasdaq.

Other shareholders in the company are also enjoying an increase in their value. Woori Technology Investment Co. and Kakao Corp., both of which have about 8% stake in Dunamu, saw their share prices increasing by 140% and 38% respectively so far this year.

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Author: AnTy

Filecoin (FIL) Recording More Volume than BTC and ETH Combined on China’s Largest Exchange

Filecoin (FIL) Recording More Volume than Bitcoin and Ether Combined on China’s Largest Exchange

While Huobi is seeing immense demand from users for FIL, Grayscale also added 29.55k FIL today. Unlike Grayscale’s four other new investment products, FIL is the only one with explosive returns.

In terms of price performance, the star of this week is Filecoin which rallied more than 90% during this time to hit an all-time high of nearly $237 today.

From its all-time low of $20 just three months back on Dec. 29, this coin has pumped 1,057%. FIL also soared 415% against BTC during this time, despite the largest crypto pumping to $62k and became a trillion-dollar asset.

With these gains, Filecoin jumped past Litecoin LTC 3.72% Litecoin / USD LTCUSD $ 203.96
$7.593.72%
Volume 3.82 b Change $7.59 Open $203.96 Circulating 66.75 m Market Cap 13.61 b
5 h Filecoin (FIL) Recording More Volume than Bitcoin and Ether Combined on China’s Largest Exchange 2 d PayPal Now Allows US Customers to Pay with Crypto at its 29 Million Merchants 1 w Free Crypto Trading App Robinhood Files S-1 Paperwork With SEC to Go Public
and Chainlink LINK 5.26% Chainlink / USD LINKUSD $ 30.22
$1.595.26%
Volume 1.75 b Change $1.59 Open $30.22 Circulating 416.01 m Market Cap 12.57 b
5 h Filecoin (FIL) Recording More Volume than Bitcoin and Ether Combined on China’s Largest Exchange 1 d Teeka Tiwari Presents Crypto’s Next Trillion Dollar Coin Event Today 6 d SushiSwap Launches A ‘Game-Changer;’ BentoBox’s 1st DApp Is Kashi Lending & Margin Trading
to capture the 9th spot with a market cap of $8.67 billion.

“China is crazy for Filecoin,” noted Wu Blockchain as FIL records more volume in the country than the combined volume of the top cryptocurrencies BTC and Ether.

The project, which raised more than $200 million in just thirty minutes in 2017, also received investment from the Shenzhen-based computer hardware giant Xinyuan Technology Co.

Xinyuan invested 580 million yuan (just under $90 million) in Filecoin miners, which could have stemmed from its partnership with a Jiangxi-based electronic company called Sesumg which will “ship 500 units of computing and 100 units of storage equipment to the company.”

This week, The9 Limited (Nasdaq: NCTY) signed a Filecoin mining machine purchase and hosting agreement of $2 million following the $10 million agreement in Feb.

Currently, The9 owns an independent node on its blockchain. It has 8 Pebibytes of effective storage mining power in the Filecoin network, which will be increased to over 80 Pebibytes once the two agreements are fully implemented.

Filecoin is an open-source, distributed storage, and digital payment system.

Though Filecoin acquiring Amazon Web Services is nothing but an April Fool’s joke, another reason for the jump in its prices is Grayscale. The world’s largest digital asset manager bought a bunch of coins.

It started on March 19 with just 700 FIL which increased by 14.8k FIL the next day only to add a whopping 29.55k FIL today. Grayscale’s institutional and accredited investors have bought a total of 45.55k FIL.

It was just last month that Grayscale announced the addition of Basic Attention Token (BAT), Chainlink (LINK), Decentraland (MANA), Filecoin (FIL), and Livepeer (LPT) to its investment products.

Much like FIL, Grayscale also bought a ton of the other altcoins today and now holds 115.57k LINK, 3.2 million BAT, 414.4k LPT, and 17.16 million MANA.

However, unlike Filecoin’s explosive returns, the same performance wasn’t recorded by other coins. In the past 7-days, LINK prices have increased by 24%, BAT 17.4%, LPT 50%, and MANA 20%.

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Author: AnTy

More Bitcoin Supply Ready to be Sucked Out of the Market

With more than $1 billion tied up in hedge fund arbitrage-shorts, they need long-spot positions to hedge further, driving the supply shortage, notes Charles Edwards of Capriole Investments.

Bitcoin currently trades around the all-time high, coinciding with a weekly resistance level. On the lower timeframe, as the downward trend pattern breaks, we could see the continuation to new highs.

The $6 billion Bitcoin futures and options expiry last Friday also suggests that downward pressure on the price has eased. “In the past months, Bitcoin has set local bottoms around important option expiration dates,” noted Charles Edwards of Capriole Investments.

The growing interest in these products means they can have a significant impact on BTC price.

In the futures market, contracts are trading at significantly higher prices than the underlying asset. And by buying spot Bitcoin and shorting the futures, the delta between the two can be locked in as a risk-free trade.

This is exactly what hedge funds are doing, as evident from their massive short position in Bitcoin in the recent month, which

“is a big endorsement for Bitcoin, as it shows that Bitcoin is becoming a serious asset class.”

Currently, there are more than $1 billion tied-up in hedge fund arbitrage shorts, which is growing fast. This means, “all these shorts require long-spot positions to hedge risk, so more and more Bitcoin supply is being sucked out of the market just to maintain these short positions.”

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Overall, Bitcoin is “skewed bullish” in all timeframes, but still, it will be a daily close above $60k that will provide a good technical breakout buy signal for the short term, said Edwards.

“Historically, April is the second-best month for Bitcoin returns. With an average return of over 20%, the 70Ks are on the cards.”

While Bitcoin’s exponential rally is showing some healthy signs of consolidation over the last few months, the underlying network is strong as ever. Addresses with non-zero balance are hitting new all-time highs, and the number of active addresses is also near its ATH.

The fact that in recent weeks, over 3-year-old coins have started moving indicates that we are about halfway through this bull market.

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Author: AnTy

Bitcoin Miners Are Now Busy Accumulating After Selling the Inventory Earlier This Year

Bitcoin mining stocks enjoy far greater returns than the cryptocurrency itself, 2.5% for every 1% move in BTC, becoming a “high beta play” on bitcoin.

Bitcoin price made its way above $57k today after falling under $53k on Tuesday.

This uptrend came following Elon Musk tweeting about Tesla now accepting Bitcoin and that any payment received will be held instead of converting into fiat currency. Trader and economist Alex Kruger noted,

“Nothing like good old-fashioned bullish news to reverse a short-term downtrend. Yes, Tesla accepting Bitcoin payments and running its own Bitcoin nodes is massively bullish. Others will follow.”

However, the option expiry this Friday looms over the price. Because the Bitcoin options market, both volume and open interest (OI), has been rising steadily since 2019, these expiries hold meaning for the price.

The maximum pain shows at which strike price the lowest amount would be owed to option buys by sellers if price expires there, for this expiry is $44k. However, Deribit clarifies that “it does not mean the market will move to this level, but it does imply that after Friday, this potential downward pressure is gone.”

Interestingly, Bitcoin miners have also stopped selling after unloading a good amount of their mined BTC earlier this year.

“It is rational for publicly traded Bitcoin miners to become net purchasers of BTC rather than sellers,” commented bitcoin bull Michael Saylor, CEO of MicroStrategy.

Stocks of Bitcoin mining have actually been enjoying far greater returns than the cryptocurrency itself.

According to an analysis from Fundstrat Global Advisors, the mining companies that are fairly new and young have reached over $1 billion in market cap after investing heavily during the downturn in the hardware and facilities to “strike it big” in the bull cycle.

Leeor Shimron, vice president of digital-asset strategy at Fundstrat, described miners as a “high beta play” on bitcoin in a note last week.

During this bull run, the biggest publicly traded miners recorded an average return of 5,000% compared to Bitcoin’s over 900%. These companies generate a return of 2.5% for every 1% move in the crypto asset.

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Meanwhile, FT reports Bitcoin mining is impacting the costs of chips, which are used in smartphones, TVs, and cars. As we reported, already the semiconductor industry is struggling with a global shortage, and the growing demand from crypto miners is adding to the issue. CW Chung, head of research at Nomura in Seoul says,

“Added demand from cryptocurrency miners is coming when the chip industry is dealing with simultaneous crises — from supply constraints to a structural shortage of high-end chips.”

“The squeeze should last through the end of the year.”

Nvidia has already halved the Ethereum mining efficiency on its latest RTX 2060 software, while AMD recently confirmed that it is not blocking any mining operations on its graphics cards. Chung said,

“Cryptocurrency industry demand can have a significant influence on the chip market — during the last bitcoin rally, they were a tenth of TSMC’s entire sales.”

Bitcoin hash rate is near its ATH at 150 Th/s, difficulty at its peak of 20 trillion, and mining profitability at $0.35 per 1 THash/s last seen in June 2019, as per Bitinfocharts.

With the bull market not yet nearing its end, this might make things worse before they better.

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Author: AnTy

Uniswap Creator Teases about V3 as 1Inch Protocol Launches Faster and Cheaper Version 3

As DEX aggregation protocol makes it cheaper to swap tokens on 1inch than on Uniswap, Hayden Adams says Uniswap seeing “real use and adoption.”

Decentralized finance (DeFi) application 1inch has released its version 3 with some new features, promising to offer its users the fastest trades at best rates.

The DEX aggregation protocol is targeting the pulse of the problem, high transaction fees on Ethereum that is making it difficult for smaller users to utilize different applications on the second largest network.

“We are thrilled to unveil version 3 of the 1inch Aggregation Protocol, which facilitates lower gas fees,” noted the team in its official announcement.

Reducing gas fees is actually the main improvement in V3, which is made possible through assembly code optimization.

This reduction in the transaction cost applies to swaps using DEX Uniswap V2 and its forks like SushiSwap and LuaSwap, among others.

The team shared how now swapping ETH for DAI on 1inch will be a lot less, over 10% less gas, than trading the same on Uniswap and nearly 5% less than on 0x. “It is now cheaper to swap tokens on 1inch than on Uniswap, as well as other popular protocols,” points out the team.

In reaction to this, Uniswap creator Hayden Adams tweeted out how the popular decentralized exchange is still dominating at 60% of DEX trading volume, which is close to its all-time high.

And that is three months since the end of UNI liquidity mining, “so this is from real use and adoption,” said Adams.

He then teased the community about how Uniswap will soon be launching its V3 as well, which has been a lot in the news but is yet to be released.

“I’ve heard a new and improved version of the Uniswap protocol is being announced soon.”

Already, the UNI token became the first DeFi coin to enter the top 10 crypto list, currently trading just under $30, up 560% YTD. UNI 1.43% Universe / USD UNIUSD $ 0.00
$0.001.43%
Volume 0 Change $0.00 Open $0.00 Circulating 88.03 m Market Cap 67.02 K
4 h Alpha Begins its “Multi-Chain Ecosystem” with the Launch on Binance Smart Chain (BSC) 6 h Uniswap Creator Teases about V3 as 1Inch Protocol Launches Faster and Cheaper Version 3 1 d Aave Releases AMM Liquidity Pool, Uniswap and Balancer LPs Can Use their LP Tokens as Collateral in Protocol

While Uniswap has yet to release its much-anticipated V3, 1inch is bringing more liquidity to its users through cheaper swapping token features on the platform. As of mid-March 2021, the total value of liquidity available on 1inch 1INCH 14.64% 1inch / USD 1INCHUSD $ 5.03
$0.7414.64%
Volume 241.56 m Change $0.74 Open $5.03 Circulating 148.89 m Market Cap 748.28 m
6 h Uniswap Creator Teases about V3 as 1Inch Protocol Launches Faster and Cheaper Version 3 1 w Rug Pulled on Users as DeFi Project Meerkat Finance Disappears Along with $31 Million 2 w 1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins
was $16.5 billion for Ethereum ETH 2.13% Ethereum / USD ETHUSD $ 1,827.25
$38.922.13%
Volume 24.4 b Change $38.92 Open $1,827.25 Circulating 115.09 m Market Cap 210.3 b
3 h Ethereum Wallet, Gnosis Safe Launches SafeSnap to Enhance Decentralized Governance in DeFi 4 h TRON Takes Aim at Ethereum’s NFT Market with the Launch of its TRC-721 Standard 4 h Alpha Begins its “Multi-Chain Ecosystem” with the Launch on Binance Smart Chain (BSC)
and another $2.3 billion for Binance Smart Chain (BSC).

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Author: AnTy