WBTC has Become the Second Most Popular MakerDAO Collateral Type

A huge spike in the bitcoin locked in DeFi has been seen, as it jumps to 4,800k BTC. This has been the result of WBTC, an ERC-20 token backed with bitcoin, making BTC available on the Ethereum network.

Up until May, the Bitcoin locked in DeFi was just around 1,000 BTC. In May, so far, the locked BTC has jumped 243% to 3.85k BTC, as per DeFi Pulse.

Source: DeFi Pulse

This growth is also the result of Maker enabling WBTC as collateral. Earlier last week, it was confirmed that the newly minted WBTC was being sent to Maker. In return, 4 million DAI got minted with WBTC, a new way for the lending platform NEXO to leverage DeFi in their business.

Last week, Nexo locked up the remaining nearly 1000 WBTC worth about $9.2 million in Maker and then beat their last record by minting another 1.5k WBTC. The latest minted coins also made it to Maker which resulted in a massive spike on the WBTC in Maker and BTC in DeFi.

Over the weekend, DAI from WBTC also surpassed DAI from USDC. By overtaking USDC, WBTC has become the second-largest collateral backing DAI, with Ether still dominating at 84%.

The DAI minted against WBTC has also maxed out the debt ceiling for WBTC, currently sitting at about 95%, noted Alex Svanevik, co-founder of Nansen.

However, Ethereum co-founder Vitalik Buterin has shown his concern about this growth as he said, “I’m worried about the trust models of some of these tokens. It would be sad if there ends up being $5b of BTC on ethereum and the keys are held by a single institution.”

WBTC is primarily held by DeFi-related contracts with 68% of its total supply 3,861 WBTC now locked in Maker.

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Author: AnTy

Is Goldman Sachs the Latest Bank to Jump on the Bitcoin Bandwagon?

Bitcoin is slowly permeating the institutional space as we saw this month the billionaire investor Paul Tudor Jones investing almost 2% of his assets in Bitcoin and called it an inflation hedge.

Just a few days before the bitcoin halving, he shared his belief that bitcoin will play a “growing role” in the “The Great Monetary Inflation,” which will be an “unprecedented” expansion of money, unlike anything the world has ever seen.

And, “It’s not a surprise large players are using the CME to get exposure. They’re not stacking sats on the cash app,” said analyst Ceteris Paribus.

This month, JP Morgan also started providing its banking services to two bitcoin exchanges Gemini and Coinbase, taking a U-turn from its CEO Jamie Dimon labeling bitcoin as “fraud.”

Implications of Current Govt. Policies on Bitcoin

The next bank to join the Bitcoin bandwagon looks to be the investment banking giant Goldman Sachs whose latest client conference call involves Bitcoin, a subject Wall Street has long been shrugging off.

As per the Goldman Sachs’ invitation to investors, the bank is having a client call on US Economic Outlook & “Implications of Current Policies for Inflation, Gold and Bitcoin.” Set for May 27 at 10:30 am EST, the conference call is its fifteenth in a series on macro-economic and financial trends.

us-economy-outlook

Goldman Chief Investment Officer, Sharmin Mossavar-Rhami who said Bitcoin has no value in 2018 will be hosting the event along with Jan Hatzius, a Chief Economist and Head of Global Research at Goldman Sachs and Jason Furman, an economics professor at the Harvard Kennedy Business school.

The invitation doesn’t reveal any other information about the event but the title conveys that the call is going to discuss how central banks’ policy and the risk of monetary inflation could impact gold and bitcoin.

In the first quarter of 2020 alone, the Federal Reserve printed more than $3 trillion, expanded its balance sheet to surpass $7 trillion, and cut down the interest rate to zero.

And although it is just a webinar, the big thing is people who have been shooting bitcoin down are now taking it seriously.

Analyst Paribus also noted that this week, the CFAinstitute’s annual conference also had Bitcoin come up on at least 3 separate occasions.

“This never would have happened before. It’s being discussed alongside gold now,” he said.

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Author: AnTy

Ethereum 2.0 Launch Date May Be Debatable, Topaz Testnet Now Has Over 1 Million Staked Ether

  • Topaz testnet for Ethereum 2.0 posted excellent results in its test run that commenced this April 14th.
  • Prysmatic Labs have recorded about 32,424 validators who staked over 1 Million ETH as the Ethereum 2.0 update is keen to shift towards Proof of Stake protocol.

Prysmatic Labs have been executing a testnet on its Topaz prototype. This is a fully scalable version of the Ethereum 2.0 launched April 14th, 2020, and has now posted excellent results in a recent testnet run.

1 Million Ether Feat

At the time of publishing, the testnet has gained 32,424 validators (another 5,206 pending) who have staked 1,036,450 Ethereum [see here]. This would have translated to a cool $205 million had it not been just a test-run. Although there are several similar ongoing test-runs for the Ethereum 2.0, Prysmatic Labs has received funding from both Vitalik Buterin and the Ethereum Fund Committee.

Massive Community Response

The CEO of Prysmatic Labs, Preston Van Loon was particularly impressed by the engagement from the community in the Topaz testnet. This was clear as most of the validators for the Testnet were from the Ethereum Community. He was confident that the 1 million Eth feat was evidence the Ethereum 2.0 would be capable of supporting heavy activity on its launch that is scheduled for later in 2020.

During the testnet towards the end of April, crypto exchange OKEx agreed to onboard as one of the validators being involved in the ETH staking process to ensure the smooth running of the testnet.

Currently, Ethereum is the second-largest Blockchain with a $22,024,569,269 market cap and trading at $198.35. It recorded $13,150,772,600 in trading volume with 111,022,864 in supply according to Coinmarketcap as per this writing.

From Proof of Work to Proof of Stake

They are currently undergoing major updates with the objective of mitigating the Blockchain’s scalability woes to extend support for more transactions. They also intend to move from Proof of Work (PoW) to the Proof of Stake (PoS) protocols whereby the users will be required to stake in Eth to keep the Network fully operational.

The Prysmatic labs have been crucial contributors to the project accounting for over 47% control. This, however, marks a 6% dip from the figures posted at the beginning of May.

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Author: Lujan Odera

Bitcoin Halving Effect: Miner Revenue Tanks 60% But Fees Compensating with 168% Spike

Bitcoin halving is past us and during this time there have been some changes in the network.

As expected, the hash rate of the network crashed 40% from the all-time high put on the halving day as smaller and less profitable miners turned off their machines after being unprofitable.

A decline in hash rate means reduced network security as well. But the long term trend is intact and we have started seeing recovery with the hash rate currently at 99.6 Eh/s.

Actually, bitcoin is still three times more secure than the Ethereum network, its closest runner up. Also, this falling hash rate is expected to be temporary.

Miner revenue takes a hit

In line with the 50% reduction in the bitcoin block reward, total miner revenue has also fallen.

According to the data provided by Blockchain, miners’ revenue crashed nearly 60% to just $7.63 million on the halving day, from two days back.

The violent sell-off in March caused the miner revenue to tank at $6.9 million which peaked on May 6th to $20.6 million only to be hit by halving.

As such, now the percentage of revenue from fees has hit a high of 17.25% that is not seen since January 2018, as per Medio Demarco, co-Founder of Delphi Digital.

Source: Coin Metrics

With block rewards set to halve every four years or 210,000 blocks, “PoW chains will be increasingly at the mercy of transaction fee revenue as the dominant source of funds for the SB (Security Budget).”

The recent reduction in miner reward pushed the BTC fees to revenue percentage higher, which instead of more transactions has been the result of a jump in the average cost of a transaction fee.

The average bitcoin transaction fee has climbed to $5.16, a spike of 1223% in the past month, which was last seen in June 2019, as per Bitinfocharts.

Mining bitcoin getting difficult

Meanwhile, the current average block time is 80% above the target level. This combination of high fees, reduction in mining power has led to longer wait times in between blocks, as such causing mempool to be more backed up.

As the waiting for the transactions to be confirmed by miners continues to add up, people pay higher fees to get their transaction confirmed faster.

Source: Mempool Transaction Count

But difficulty adjustment is there to make it all balance which takes place about every two weeks.

Early in the next week, the estimated negative difficulty adjustment of just under 1% will make it easier to mine bitcoin and bring back its current average time of 18 minutes to back at the target 10 minutes.

This would also result in more mining power coming back online.

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Author: AnTy

NYDIG Sold $140M in A Previously Unknown Bitcoin Fund Last Week, Just Ahead of BTC Halving

New York Digital Investment Group (NYDIG) revealed this week that it sold just shy of $140 million in a bitcoin fund, that was previously unknown.

It became public after the fund was revealed in a Form D filing for an exemption to the US SEC on Tuesday, reported Forbes.

Formerly named NYDIG Bitcoin Yield Enhancement Fund LP, this pooled investment fund started selling on May 5 with a number of investors contributing to the capital raise.

Back in November 2018, NYDIG’s subsidiary, NYDIG Execution received BitLicense allowing it to legally operate a crypto-related business — be a crypto custodian for five cryptos viz. Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC), and to conduct money transmissions.

Interestingly, BitLicense was created by Ben Lawsky who had ties with Stone Ridge Asset Management, an advisor to NYDIG’s Bitcoin Strategy Fund. Lawsky also sits on the Board of Directors of Ripple, San Francisco-based fintech company.

In December, Bitcoin Strategy Fund received a green light from the SEC to offer the shares of its new bitcoin fund to institutional investors. This was a portfolio fund in the Stone Ridge Trust VI for cash-settled futures contracts.

Lawsky, the “Sheriff of Wall Street,” as he has been referred too after he issued close to $6 billion in fines to institutions while he was New York State’s Superintendent of Financial Services from May 2011 to June 2015.

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Author: AnTy

Gold in the Early Days of a Bull Market; Is Bitcoin Currently in a Downtrend in One Too?

Last week, the price of bitcoin climbed to $10,000 but yet again we couldn’t sustain this level and over the weekend dropped to as low as $8,200.

This drop came on the back of the “highest hourly volume candle” since Black Thursday. Interestingly, it also had Bitcoin trending on Chinese Twitter.

“Almost 9 months since higher lows on Cycles, so technically still downtrend, until >10.5k,” said analyst Bob Loukas.

This crash yet again caused Coinbase outage resulting in $275 million sells liquidated, the third-largest liquidation in the past six months. BitMEX XBTUSD open interest also sold off $100mln.

OI got wiped out across the board, with Binance “absolutely nuked.”

Now, BTC/USD is back to trading above $8900.

Getting Worse Before it Gets Better

Bitcoin might be up 20% YTD but its correlation with stocks remains near its all-time high still.

The US stock market is moving higher despite a record number of Americans losing their jobs. The unemployment surged to 14.7% in April, shattering the post-WWII’s record of 10.8% in Nov. 1982.

But on Sunday, Treasury Secretary Steven Mnuchin said this figure could get “worse before they get better.” He also indicated the White House was talking about more fiscal measures, payroll tax cut, to ease the economic pain from the coronavirus pandemic.

But the fact that stocks are still moving higher, could mean they have rebounded and can continue to move higher.

“We’ve seen the lows in March and we will never see those lows again,” said Wharton professor Jeremy Siegel who called Dow 20,000 in 2015. “I think 2021 could be a boom year.”

Last week, JPMorgan also listed six reasons why they are bullish on stocks including rapid healing of credit markets and relaxation of lockdowns. The “signs of bottoming out in economic expectations” and the “presence of an equity short base and equity underweights among investors,” are other reasons.

Besides the rally in the risky market, massive liquidity injections and zero cash rates and low bond yields are why stocks and risk-on securities are in a bullish environment.

But not all!

Although economist and trader Alex Kruger says JPMorgan’s 3400 target for the S&P 500 in H1’2021 is “reasonable,” it ignores potential bearish factors like demand not coming back in full on contagion fears, Trump going all out at China, Presidential elections, a wave of defaults, no buybacks, dividend cuts, worldwide social unrest, an EM collapse, and broken supply chains.

Most Likely to Appreciate in 2020

Amidst the current unstable economic backdrop, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence says both bitcoin and gold are the assets that they believe will jump this year.

Gold bullion is in the early days of a bull market just like the one sparked by the financial crisis, with “greater potential for acceleration in the metal’s price.” Quantitative easing with rising equity volatility solidifies the precious metal’s foundation, he said.

Bitcoin, the result of the 2008 financial crisis, also has a long road ahead with a new rally.

“As central banks flood the financial system with trillions of dollars of stimulus, investors today have a strong reason to invest in alternative assets like Bitcoin,” states Binance in its latest report.

In the short term, however, it depends if Bitcoin holds $8,550 level. The breakdown from $8,550 could have us revisit the high of $7000s and if it holds, we can get a relief rally to the low of $9,000s, said analyst Rekt Capital.

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Author: AnTy

5 Bullish Bitcoin Charts, Three Patterns Not Seen Since the Parabolic Run of 2017

Earlier this week, bitcoin broke the important psychological level, $10,000 and hovered around this level for two days only to make a retreat today.

Currently, we are trading around $9,500 while managing the daily trading volume of just $2 billion, yet again slowing down on the weekend.

The good thing is bitcoin is leaving the exchanges, moving in the opposite direction to the bitcoin price, which means instead of selling, investors have taken to HODL their BTC.

Also, the Guppy indicator which identifies changing trends and breakouts in the price of an asset has flipped green on the bitcoin daily. Historically, these green flips have led to higher prices every single time. Stackin’ Bits said, Though it is likely we will be going higher,

“One thing that probably needs to be taken into consideration on this move is the extreme volatility. Price leads MA’s, and in such extreme volatility it wouldn’t surprise me to see some aggressive deviation over the next couple of moves as the volatility cools down.”

The realcap-weighted HOLD wave is yet another chart dominating similar setup patterns that were last seen in the past bull markets.

A bitcoin enthusiast notes that for a third time it occurred this spring. Currently, we are in the blow-off period with halving next week which if leads to another accumulation it could indicate a new bull market.

Yet another bullish chart that reflects the previous bull market is the number of active bitcoin addresses. These addresses have reached 1 million, last time hit in November 2017. Glassnode noted,

“The number of active addresses (and entities) has increased to levels not seen since the 2017 bull market – as has the number of new addresses – suggesting an increase not just in activity, but also in adoption.”

The market is ripe with bullish charts and the market sentiment has also finally turned into “greed” after over two months of “extreme fear.” The rising price of bitcoin is also backed by the solid volume with open interest on CME hitting a new all-time high.

The interest in “bitcoin halving” has also skyrocketed with searches on Google now 4x the 2016 halving.

Meanwhile, long term bitcoin investors continue to accumulate bitcoin, despite the prices rising up to the early highs from February.

Amidst this trader Galaxy has shared a chart, yet another dose of hopium for people, stating the flagship cryptocurrency could very well make its way to a new all-time high of $20,000 from here in another pattern not seen since the parabolic run of 2017.

In response to this chart, trader Crypto King wrote,

“I’m waiting for that green dildo to the moon. Liquidation dip occurred, volume dropped. Consolidating, spring coiling….”

Not to mention, high net worth individuals (HNW) and family officers are also getting in bitcoin.

When bitcoin rallies to the high of $20k, retail will start paying attention once again just like in 2013, when “the early rally was driven by Silicon Valley angels (smart money), by the end of the year retail piled in,” said Tuur Demeester.

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Author: AnTy

CryptoSlots Donates New Slot Proceeds to the Fight Against Coronavirus (COVID-19)

Gamble to fight the Coronavirus! At least this is what CryptoSlots proposes with the donations it makes for the fight against COVID-19, donations it makes from its new slot proceeds’ gains.

Micro Monsters is the latest slot released by CryptoSlots and a game that offers bonus extras for beating viral critters. However, the real bonus here is that all the gains made from bets made at the slot are going to end up being donations made by the crypto casino for the charity supporting Coronavirus patients and health workers Direct Relief.

There’s a BONUS Code!

Those who want to get involved until May 15 can spin with the 100% BONUS offered with their first deposit. The code for the bonus is FIGHTCOVID100. As one of Mega Matrix’s slots, Micro Monsters is part of a games group considered unconventional and wacky.

It’s, in fact, a circular game that has wins starting anywhere on the payline, not to mention it also features the expanded Double Wild version on the middle reel, and the Mystery Multipliers version. Bets for spinning are anywhere between $0.60 and $4.80. The bets minus their wins are being donated to Direct Relief. Here’s what CryptoSlots’ manager, Michael Hillary had to say about this:

“Hopefully this contribution will make a difference to those on the front line […] as well as providing entertainment to those doing their part by staying at home.”

More on Direct Relief and CryptoSlots

Direct Relief is a charity organization trying to provide personal protective equipment to people who are more at risk to contact COVID-19. It’s coordinating its efforts with the ones of businesses and health organizations in order to deliver critical medications and medical items all over the world.

CryptoSlots was launched back in 2018. It gained tremendous success for being the first destination of crypto online players. Most games at this crypto casino are slots, but keno and video poker can be played too, not to mention all games are mobile-friendly. As payment methods, Bitcoin (BTC), Litecoin (LTC), Monero (XMR) and Bitcoin Cash (BCH) are accepted, whereas deposits can be anywhere between $25 and $250.

Disclaimer: This is a paid press release from CryptoSlots. BitcoinExchangeGuide does not endorse nor are we responsible for the content included in this paid release. We encourage all of our readers to do their own research before interacting with the company.

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Author: Bitcoin Exchange Guide News Team

Analyst says Another Altcoin Drop will be a Buy the Dip Opportunity

In April, the world’s leading cryptocurrency jumped over 40% but so did altcoins. Though this time they didn’t outperform BTC’s spike by a wide margin, there was still a substantial uptrend.

“Alts not only held up well, but have bounced back stronger in many cases,” noted analyst Ceteris Paribus.

Ethereum rebounded well with a spike of 61%. The network also recorded more than one million smart contracts since March 12th.

In March overall, the smart contacts deployed on the network were an all-time high, 75% higher than the previous record set in October 2019.

However, a large amount of these contacts were either empty or related to GasToken, reported Arcane Research. These could be used to deploy contacts when gas prices are low only to destroy and get refunds when gas prices are high.

Even filtering these contacts out, March was still a record-breaking month, only beaten by November/December 2018.

Altcoins starting to look good

“Alts starting to drift off while BTC shows strength. Alts not recovering on BTC pullbacks. Alts starting to drift off while BTC shows strength & not recovering on pullbacks,” said analyst DonAlt.

Altcoins are only a good buy for either short-term trades or during mass panic and according to him, panic hasn’t hit yet.

“If BTC fuckery (be it up or down) leads to an altcoin drop in the next weeks to months I think that altcoin dip is one to buy. I’m patient but some of this stuff is starting to actually look good on a large timeframe for the first time in ages,” added the analyst.

Among the top 25 cryptos, Stellar (81%), Tezos (79%), Chainlink (76%), Cardano (69%), Cosmos (45%), Tron (41%), and ETCETC (40%) led the rally this month.

Interestingly, this week, two hottest altcoins, Chainlink and Tezos came together. Chainlink’s decentralized pricing oracle will be providing the Tezos community projects with real-time data.

With this integration, Tezos projects can pull from active pricing feeds for different assets to build projects.

“I think it’s going to be used a lot for DeFi, maybe some decentralized insurance. But from what I can tell, there’s a lot of interest in having DeFi on Tezos. And having a good oracle mechanism is basically now a prerequisite for having a well functioning DeFi application,” said Chainlink CEO Sergey Nazarov.

All indexes ended April with gains of over 30% but small caps increase the most with a 335% gain. In the past month, the market cap excluding bitcoin rose by $22 billion.

Down the line, other big performers include Hyperion (423%), Digibyte (23%), Hive Token (99%), Zilliqa (65%), Kyber Network (58%), Enjin Coin (56%), Zcash (49%), and Matic (47%).

Kyber Network particularly is getting attention as the network’s planned upgrade will allow KNC token holders to earn staking income. As such, the number of addresses with KNC has increased by 15% since early January, as per IntoTheBlock.

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Author: AnTy

Bitcoin Market Update: Confidence is Returning, Bulls are Pushing Hard

Around last weekend, the price of bitcoin started moving up, and then this week, charts exploded as we made our way to nearly $9,500 on April 30.

This sudden and sharp movement resulted in the digital asset seeing first signs of decoupling from the equities market after being almost identical throughout April.

But correlations rely on long term data and now that we are back on the weekend, prices are seeing a lot of volatility. Currently, BTC/USD is trading above $8,850.

“Nice run we had on bitcoin… but then it all reversed. ppl will tell it’s because ‘halving is priced’ and all that. But the truth is because the stocks dropped a lot in the last two days and bitcoin follows stocks momentum like its bitch,” said trader BitBit. “It happens in times of uncertainty.”

Lots of Activity

Bitcoin had a good rally in April and closed the month with massive returns that have the market turning confident again. Bitcoin specifically is showing true strength by increasing its market share while most large caps lost.

Amidst rising BTC price, the USDT market cap grew 25% this month to nearly $8bln, and “its price is trading structurally at a premium to US dollars indicating strong demand,” shared Arcane Research.

Just like Tether, USDC is marching towards a $1bln market cap as the world gets forced to accelerate digital adoption in the COVID crisis.

An increase in trading volumes across spot and derivatives is also recorded which means money is definitely flowing in the market. However, market participants are still withdrawing their BTC from exchanges. After the market crash, the number of BTC exchanges addresses declined by 10% and is trending downwards.

The total futures market crossed nearly $40 billion. However, open interest remains significantly lower than before the sell-off.

“A majority of longs were forced to exit on the 40%+ down day and can’t come back as fast,” noted Skew Markets.

CME traders are back again as the open interest on the platform goes back to 2020 highs, surpassing $300 million this week.

While Deribit completely dominates the options market, BitMEX continues to struggle, recording a historical low open interest this week.

This reduction indicates that traders were forced out of their positions before they initiated new positions as on Wednesday, BitMEX had the 8th largest short squeeze over the past year. Additionally, this could be because of the recent flight from BitMEX to other platforms.

Meanwhile, it’s daily volume was 10 times the open interest.

Additionally, crypto twitter is also doing the “heavy lifting” and seeing more activity than at the peak of the sell-off. “The bulls are pushing hard!”

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Author: AnTy