“Dark Horse”: BNT Burn Is Around the Corner As A Swiss Bank Embraces Bancor

Bancor, the automated market maker, accounting for 5% of the decentralized exchange (DEX) volume, saw its TVL (total value locked) doubling to $1.66 billion and breaking into the top 10.

Maker is at the top spot with more than $7 billion in TVL, followed by Compound and Aave at $6.7 billion and $5.17 billion, respectively, as per DeFi Pulse.

The DeFi project is now planning to have phase two of Vortex out by introducing a flat protocol fee that uses swap fees to buy and burn vBNT. Each vBNT represents a BNT token locked in the protocol forever, which will create upward pressure on price. 5% of swap fees will be used for this.

The token BNT is currently trading around $7.82, up more than 500% YTD.

The full Vortex roll-out is expected to be done in the next two weeks.

On Thursday, Bancor’s Twitter account posted another development, a Swiss private bank Maerki Baumann with over $9 billion in assets under management, is now accepting BNT along with other cryptocurrencies including BTC, LTC, ETH, BCH, XRP, and USDT.  And just recently listed a poll on their Twitter asking which crypto should be next, with options of Polkadot (DOT), Uniswap (UNI), Cardano (ADA), or Stellar Lumens (XLM). The bank offers both trading and custody services.

“The ability to participate in DeFi through a bank may be closer than we think,” read the tweet.

Give The Market Leaders A “Run For Their Money”

According to Deribit’s latest market research, Bancor is a “dark horse” which, despite Uniswap’s success and rise of similar competitors, continues to iterate on its original product.

“With the Bancor v2.1 release in Oct 2020, the combination of single-sided liquidity provision and IL insurance seemed to be the USP needed to make a breakthrough in the fiercely contested DEX arena,” it said.

Bancor’s new model is facilitated by a new elastic BNT supply mechanism d, which brings BNT burn into the picture. Elastic BNT supply also creates the possibility of protocol IL insurance.

Through its origin pools, shadow token stablecoin pools, Layer 2 scaling, cross-chain expansion along with UI overhauls and additional improvements in on-chain governance (gasless voting), Bancor can give the market leaders Uniswap & Sushiswap “a good run for their money.”

This research on Deribit came from members of DeFi investment fund DeFiance Capital, which took a position in BNT. They will be used to provide liquidity and earn yield from swap fees and liquidity mining.

“Extremely excited to support Bancor as one of the most interesting and innovative AMM liquidity protocols in this space,” said Arthur of DeFianceCapital.

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Author: AnTy

1inch Exchange Launches Second Liquidity Program; 1% Of Total Token Supply To Be Rewarded

1inch exchange set to reward 1% of total 1inch tokens to liquidity providers (LPs) on its platform over the course of the month. The exchange also announced new governance improvements with the launch of its upgraded Liquidity Protocol v.1.1.

Less than a month following the 1inch exchange airdrop, liquidity providers on the decentralized exchange (DEX) are set to be rewarded in the coming month in a “new liquidity mining program.” According to the exchange statement, liquidity providers from five pools, namely ETH-WBTC, ETH-1INCH, ETH-DAI, ETH-USDC, and ETH-USDT, will be rewarded 1% of the total 1inch token supply for supplying liquidity over the next month, starting January 9.

The rewards will be distributed equally to all the liquidity pools in equal shares; the statement further reads.

Back on Christmas Day 2020, every wallet that had interacted with 1inch till 24 December was awarded an airdrop of the 1inch tokens – the price rising close to 1500% once the token launched on Binance. The previous liquidity program, which ended on January 7, was a success with over 7.5 million 1inch tokens distributed to liquidity pools – realizing a 300% APY.

In the summer of 2020, the decentralized finance (DeFi) market exploded to a near parabolic state birthing along with governance tokens and yield farming. However, as Bitcoin took its strides towards setting new all-time highs, the DeFi ecosystem slowed down, but there is a recurring interest in the field as BTC and ETH prices stabilize.

The total supply of 1inch tokens stands at 1.5 billion 1inch tokens, meaning 15 million tokens will be distributed across the five pools. This represents double the first amount disbursed to 1inch exchange users.

The DEX also announced the launch of its new 1inch Liquidity Protocol v.1.1 that includes several bug fixes and new liquidity products for users to participate in. While the older program is still effective, users will need to transfer their assets and incentives to the newly upgraded platform to participate in the new program.

Could this be the start of the second DeFi craze?

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Author: Lujan Odera

Dollar Hungover, BTC & ETH Give BTD Opportunity; Total Crypto Market Cap Poised to Hit $1T

Dollar Hungover, Bitcoin & Ethereum Give BTD Opportunity; Total Crypto Market Cap Poised to Hit $1 Trillion

While dollar is expected to see more weakness, after the retail buying over the holidays, institutional investors returning to their desks this week are expected to boost BTC prices further.

Over the weekend, Bitcoin hit a new all-time high at $34,865.

The breath BTC BTC -6.72% Bitcoin / USD BTCUSD $ 31,227.25
-$2,098.47 -6.72%
Volume 80.48 b Change -$2,098.47 Open $31,227.25 Circulating 18.59 m Market Cap 580.54 b
4 h Why Does Bitcoin (BTC) Continue to Tear Up Without Ever Stopping? 4 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 5 h Anthony Scaramucci’s SkyBridge Capital Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too
took here after hitting a new record had ETH flying, as well as major altcoins that have been waiting for their turn.

Bitcoin is now consolidating, going just under $28,000 today, as traders and investors take off profits here and rotate them into ETH ETH 5.65% Ethereum / USD ETHUSD $ 1,012.58
$57.21 5.65%
Volume 57.8 b Change $57.21 Open $1,012.58 Circulating 114.12 m Market Cap 115.55 b
4 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 6 h Too Afraid to Buy the Dips; Too Much FOMO to Resist Buying The All Time Highs 7 h ETH Rips to Jan 2018 High As The Market Rotates Bitcoin Profits into Ethereum
and altcoins.

The momentum over the weekend pushed the market cap of the entire cryptocurrency to over $900 billion. Another small push to the upside and we will hit the $1 trillion mark. Today’s correction meanwhile has it at around $840 billion.

After hitting these highs, the market saw red today, providing the ‘buy the dip’ opportunity the market has been looking for after such highs.

This resulted in $1 billion liquidated in just an hour with $190,000,000 in long positions on Binance within 10 minutes.

Not to mention, the funding has been going berserk, as per Viewbase.

image1

As the digital asset expands beyond speculators and makes its way into investment portfolios, crypto enthusiasts are looking for the next round number.

According to Antoni Trenchev, managing partner and co-founder of Nexo in London, BTC “will be on the road to $50,000 probably in the first quarter of 2021.”

After the retail buying over the holidays, Trenchev sees institutional investors returning to their desks this week and boost prices further.

The world’s largest cryptocurrency rallied strongly in December, eclipsing the 2017 high of $20k as people especially institutions continue to see BTC as a hedge against US dollar weakness and inflation risk.

“The drivers of the crypto rally, if anything, are strengthening amid still low interest rates, political uncertainty” and the prospect of more government stimulus, Julian Emanuel, chief equity and derivatives strategist at BTIG LLC told Bloomberg. But volatility can work both to the upside “as well as to the downside,” he added.

The expiry of $36k Bitcoin call options in over 2 weeks could bring some volatility as well.

After the 870% uptrend since March low, Bitcoin can take some rest. It is anyone’s guess if the Monday correction, which was about 18%, is all we will get or something more.

Unlike the crypto market’s strong 2021 opening, the dollar started the new year by slipping further broadly.

The greenback fell to another low of 89.4, a low not seen since April 2018 — a few inches more and the USD index will go to Dec. 2014 levels.

“The global economy is closer to a more sustainable growth recovery amid unprecedented fiscal and monetary support,” Maybank currency analysts said in a note adding, “On net…the dollar can see its weakness stay further entrenched.”

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Author: AnTy

DeFi ‘Monster’ Aave is Ready for the Next Phase of Adoption

DeFi assets are back to uptrending as Bitcoin and ETH continue to explode higher. The total value locked in decentralized finance is also rising, reaching $14.2 billion.

Market participants are excited by the latest developments put out by DeFi heartthrob Andre Cronje, the creator of Yearn.Finance who is constantly putting out collaborations with more and more DeFi projects. Cronje shared,

“I have so much more planned for when v2 launches, custom money markets (yield & insurance), Cream will be a lending reserve into Aave, agnostic Cover for all aTokens, and we can finally put ytrade, yleverage, and leveraged stable coins into production.”

This has been in response to Aave founder and CEO Stani Kulechov’s tweet where he shared that the popular DeFi project has already been working with Cronje since the beginning of this year. Kulechov added,

“The recent collaborations with @iearnfinance are IMO positive sign for DeFi. All DeFi protocols should work towards cross composability.”

Not just this, the project has also achieved a big milestone in the form of processing over $1 billion in flash loans since launching in January.

All of this certainly got the community excited, and AAVE jumped over $76.5, up nearly 170% from about $28 earlier this month.

To trader @SmartContracter, AAVE is a “monster,” which he believes is “going to blow BTC out of the water in terms of performance in 2021.”

Next Phase for DeFi

Another news came in the form of Copper, an institutional custody provider announcing the launch of CopperConnect, the first-ever DeFi tool for crypto institutions.

With this service’s help, an institution can effectively contribute to a decentralized pool of assets and earn passive income on that.

With unaudited DeFi projects decreasing, the fluctuation in the value of the market has been less dramatic, making the risk now more manageable for sensations, which as a result has “led to high demand from institutional crypto investors for secure ways to gain exposure to the DeFi marketplace.”

“In recent months, we have seen a significant increase in the number of institutions looking to deposit liquidity onto our project. However, to date, institutions have not had the tools available to comply with their exacting risk management rules,” said Kulechov.

To satisfy this demand, Copper provides the safety of assets throughout the DeFi lifecycle, which will help the AAVE project gain institutional adoption.

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Author: AnTy

Cardano Hits Decentralization Milestone; 50% Of Blocks Come from Community Stake Pools

  • Cardano blockchain is in the final half of its journey to total decentralization.
  • Over 1,210 staking pools are live – surpassing the targeted 1,000 marks.

The lead development organization of Cardano, Input Output Hong Kong (IOHK), announced public staking pools are now validating over 50% of the blocks. The statement on Twitter shows that the blockchain is gradually moving towards total decentralization following the launch of the long-awaited Shelley mainnet earlier this year.

Cardano, a brainchild of Ethereum’s co-founder, Charles Hoskinson, is transitioning from a federated system operated by the IOG, the creators, to a fully decentralized blockchain controlled and operated by the public stake pools.

Following Shelley’s launch, Cardano began its journey to total decentralization with “the percentage of blocks produced by public stake pools increasing at every epoch until block production on Cardano becomes fully decentralized.” The statement reads,

“Currently, 50% of the blocks are [validated] and produced by the stake pools.”

At the Shelley mainnet network launch in late July this year, ADA (Cardano’s native token) holders can now delegate their tokens to community-run stake pools and earn rewards. Before, in the earlier centralized era of Byron, the IOG produced the blocks and earned rewards to ensure the continuous development of the blockchain.

At epoch 3, the Cardano blockchain introduced the first decentralized stake pools minting ADA token. Currently, at epoch 227, a total of 1212 public stake pools have joined the minting process, as of writing – surpassing the targeted 1,000 stake pools.

With the rise of community stake pools, IOG (federated IOHK nodes) will delegate a substantial stake to other community pools. This is an effort not to increase “D” and avoid the re-centralization of Cardano block production, Kevin Hammond, IOHK’s software engineer, stated in a blog post in August.

As of Friday this week, Cardano expects the d-parameter (decentralization parameter, whereby d=1 is completely centralized and d=0 is fully decentralized) to drop to 0.48 – showing the Cardano community will be running most of the block production.

Interesting times ahead for Cardano ahead!

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Author: Lujan Odera

Apple Can Buy 145k Bitcoin With Just 1% Of Its $191 Billion of Dollars Held in Cash

Apple has a total of $191.83 billion cash on hand, down from quarter third of 2020, when it was $193.8 billion. Apple is known for having one of the largest cash piles among the companies.

At Bitcoin’s current price of $13,300, if the tech giant Apple, hypothetically, decides to buy as much BTC as it can with the cash on hand, it can gobble up 14,423,308 BTC.

Currently, 18,529,856 BTC is circulating in the cryptocurrency market.

This represents 88.24% of Bitcoin’s total 21 million supply but doesn’t include millions of coins lost forever.

Apple is the biggest asset by market cap of $1.9 trillion, while Bitcoin is just 13% of this with a $246 billion market cap at 21st place.

Follow in the footsteps of MicroStrategy

When it comes to other tech giants, Microsoft had $137.98 billion at the end of its fiscal first-quarter. In comparison, Google and Amazon had $121.08 billion and $71.77 billion, respectively, at the end of the second quarter.

With so much money sitting in cash and short-term investments at these big companies, it has captured the crypto community’s attention, especially following publicly listed MicroStrategy and Square replacing a portion of that with Bitcoin.

“Apple’s cash is decreasing in value. Perhaps they should follow in the footsteps of MicroStrategy and test the waters with even 1% percent in BTC,” wrote one trader.

Even with just 1% of its investment, Apple can buy 144,233 BTC.

MicroStrategy was the first one, and since then, others have come forward to announce Bitcoin as a reserve asset as a hedge against the debasing US dollar. MicroStrategy CEO Micahel Saylor actually revealed this week that he personally owns 17,732 BTC and has been running a full node of Bitcoin Core version 0.20.1 for over a month now.

Bitcoin is at the early stages still, and in 2020 it sees increasing adoption with PayPal, JPMorgan, and billionaire investor Paul Tudor Jones all feeling its effect.

Compared to gold’s trillion market cap, this digital gold is just starting and has a long way to go.

“We’ve talked about $5T of cash sitting in public company corporate treasuries. What hasn’t been talked about is the $8.5T sitting in sovereign wealth funds, i.e., ‘the wealth of nations’ Their exposure to bitcoin is zero, their optimal portfolio will require it,” said on-chain analyst Willy Woo adding to the hopium.

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Author: AnTy

Interest in DeFi Falls to Pre-Mania Level, Uniswap Volume on a Decline Despite CEX’s Issue

The DeFi market continues to see strong growth, with the total value locked (TVL) in the sector above $11 billion. While a record of almost 160k BTC is locked in DeFi, the locked Ether is also approaching the peak at 8.7 million ETH.

The mid of June was the “turning point” for DeFi finance, as per LunarCRUSH’s report confirmed by Google Trends when a steady upward trend in the US searches for the term DeFi was seen, which peaked in August only to fall sharply in September.

image2
Interest in term DeFi over time, Source: GoogleTrends

But the current scenario could further accelerate this growth.

The ongoing investigation into popular crypto derivatives platform BitMEX, and now issues at OKEx is likely to spur on further flow out of CEX and into DEX venues.

Already, as we reported, the trading volume on decentralized exchanges has rushed to new high thanks to DeFi and yield farming hype in Q3.

Monthly trading volumes for top 10 DEX increased 700% from July to $30.4 billion in Sept. while CEXs recorded $300 billion, the same as the previous month. The market share of DEXs that continues to increase is expected to grow further, that too, at the expense of CEXs.

The most popular DEX, which accounts for more than 60% of the volume, is Uniswap. The hottest trading platform was launched less than two years back and raised millions from venture capitalists, including Paradigm, Andreessen Horowitz, and Union Square Ventures LLC.

In the overall crypto space, it is the fourth-biggest exchange after Binance, OKEx, and Huobi. Paul Veradittakit, a partner at California-based Pantera Capital Management LP, which is considering investing in Uniswap’s governance tokens UNI said,

”It’s just phenomenal. We can really see decentralized exchanges make a huge dent in the market and potentially overtake centralized exchanges.”

Since dropping to half a billion dollars after its clone SushiSwap sucked the liquidity, the liquidity on Uniswap has been surging, surpassing $3 billion on Thursday. However, it is currently averaging a daily trading volume of $220 million, on a constant decline from Sept. 1st’s ATH of nearly a billion dollars.

Uniswap Volume
Source: Uniswap Info

It is rather a blessing for crypto projects as Uniswap, which generates revenue through transaction fees, doesn’t charge the issuers to list new tokens. Users don’t have to provide documents for KYC or AML measures as required by traditional crypto exchanges because of regulatory pressure.

Trading on Uniswap also means a bigger market to trade as it currently has 845 tokens listed while the leading spot exchange Binance only has 820 coins.

However, while Binance had over 15 million users at the end of last year, Uniswap is used by only 50k to 100k people, Kyle Samani, co-founder of crypto hedge fund Austin, Texas-based Multicoin Capital Management told Bloomberg. He said,

“This competition is just getting started. We are in the first inning.”

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Author: AnTy

PwC: “Large Crypto Unicorns to Become Increasingly like ‘Crypto Octopuses'”

The value of the M&A’s in the cryptocurrency world saw strong growth this year as it exceeded the total of 2019 just in the first six months of 2020, according to PwC’s latest report on the crypto merger, acquisition, and fundraising landscape.

Compared to last year’s $481 million, the first half of this year recorded $597 million in global deal value as tie-ups became less frequent but bigger.

In the first half of 2020, there were 60 tie-ups versus 125 in the whole of 2019, said PwC.

However, activity continues to shift away from the US as the volume in Asia-Pacific and Europe, the Middle East, and Africa was 57% compared to 51% last year.

The biggest deal of 2020 was made by Binance Holdings, which purchased CoinMarketCap for $400 million. PwC Crypto Leader Henri Arslanian said,

“We expect crypto M&A activity to remain strong for the coming months particularly with some of the larger or more profitable players acquiring firms that offer ancillary services to their current offerings.”

“We should expect the large crypto unicorns to become increasingly like ‘crypto octopuses’ by acquiring or investing in various ancillary businesses in order to remain dominant.”

Digital asset manager CoinShares also anticipates the materialization of a “more robust M&A market” but says significant industry consolidation is likely to come first to clean up the market fragmentation.

According to them, crypto companies need to demonstrate the ability to generate recurring revenue and stable cash flow, consistent delivery on growth metrics, low margin volatility and above-average margins, low revenue concentrations, and low founder involvement.

According to PwC, the first of the year also saw a spike in fundraising involving trading companies or cryptocurrency exchanges, which has been attributed to the rising digital asset prices, greater regulatory clarity, and increased institutional interest.

2020 saw legendary investor Paul Tudor Jones putting money in crypto, boosting demand from bigger players and MicroStrategy and Square making bitcoin a part of their Treasury.

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Author: AnTy

Russian Central Bank to Curb Total Digital Assets An ‘Unqualified’ Investor Can Acquire

The Bank of Russia seeks to regulate the total amount of digital assets that individual investors can buy. The central bank has published a draft of regulatory proposals highlighting how they will regulate the nation’s digital assets space.

The Russian central bank is now proposing a bill that will limit the number of digital assets held by non-qualified individual investors annually.

As per the proposal, the Bank of Russia states that non-qualified investors will not be permitted to acquire digital assets above 600,000 rubles or about $7,800. However, qualified investors will not have to adhere to this limit.

According to the regulator, the new limit will help in the recently approved crypto law’s operationalization, specifically on the digital financial assets.

To be deemed as a qualified investor, one must meet 1 of the following five criteria:

  • Hold an economics degree.
  • Own securities totaling more than $74,400
  • A net worth of 6 million rubles (~$74,400)
  • Have over two years of experience working for a financial organization
  • Trade significant amounts of securities regularly.

According to the publication, the curbing will apply to both digital financial assets and various digital rights. The statement reads:

“Individuals representing unqualified investors will have a limit on the amount of digital financial assets for annual purchase at a total of 600 thousand rubles.

The limit for the acquisition of digital rights for unqualified investors who hold both digital financial assets and other digital rights is set at 600 thousand rubles for digital financial assets and 600 thousand rubles for other digital rights.”

The Russian central bank is asking for feedback and opinions about the proposal from the public. Those willing to provide their input have until Oct. 27. The restriction is set to be enforced from Jan.1, 2021.

The Russian central bank also released a distinct proposal touching on how those willing to issue digital assets should register.

Notably, the new restrictions will apply to digital assets, which will be offered when the new digital assets law is enforced. Lawyer Mikhail Uspensky, who spoke to CoinDesk, stated, “Such tokens don’t exist yet, so the document is written for the future. The law will only come into force in January [2021], and cryptocurrencies are not mentioned in it at all.”

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Author: Joseph Kibe

DeFi Has Grown 993% YTD, But it is a Modest Beginning for What’s to Come – Trillions!

Decentralized Finance (DeFi) is growing like crazy — the total value locked in the sector has reached a record of $7.38 billion, and the market cap of the top 100 DeFi projects has climbed to almost $15 billion.

The project dominance in the space is also changing as new projects gain traction. For a long time, Maker (MKR) was ruling the market, but in the past few months, the likes of Compound (COMP), Curve Finance, Yearn Finance, and Synthetix have been rapidly approaching the top.

For now, Aave (LEND), which is seeing institutional interest picking up as large transaction volume hit an ATH of $148 million, is leading with 20.50% dominance.

However, this could be just a humble beginning, as per Techemy Capital, a boutique investment management company who foresees a road to $5 trillion locked in DeFi.

According to them, putting the data on a log scale overlaying it with major protocol developments provides a “clear S-curve.”

Techemy TVL in Defi
Source: Techemy

A part of the crypto world since 2012, Techemy Capital has been building and investing in DeFi since 2017. In its initial thesis in 2016, it talked about the first wave of capital inflow with ERC20 standard and that “We’re at the cusp of a multi-decade wave of ‘digitising value.’”

Last year, their updated thesis saw actual utility evident in DeFi to break the classic bitcoin four-year cycles with a projection of $5 billion TVL by the end of 2020, which has already been achieved a couple of weeks back.

As it turns out, their original DeFi thesis wasn’t bullish enough given the exponential growth the sector is seeing as DeFi’s usefulness breaks out.

According to their latest thesis, it is the “infrastructure” that grows DeFi, and its usefulness has emerged in the order of stablecoins, DEXs, lending, automated money markets (AMM), derivatives, and Layer2 scaling. The last two have been maturing now. It says,

“As new infrastructure & DeFi protocols take hold, they replicate segments of traditional finance, and the value locked in DeFi grows.”

The global derivatives are valued at $1 quadrillion in notional value; they can crossover from traditional markets along with tokenized real-world assets.

But there are tech contractions in the path and “nature doesn’t tolerate bottlenecks,” so, layer2 and scalability solutions are just a matter of time, for which pressure and incentives both are too high.

“DeFi is on a path to consume all assets, financial or otherwise, both inside and outside of crypt.”

And this sector will grow to trillions because “it is acting like a vortex, sucking in anything that enters its gravitational field.”

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Author: AnTy