Bitcoin Average Transaction Fees Jump 188% to Above $10 Following Price Rally

Bitcoin’s price is experiencing a bullish month with over 25% gains and came very close to hitting 2019 high yesterday.

Currently, BTC is trading around $13,220, having dropped over 4% since rallying yesterday, on the back of the increased trading volume, which has climbed above $3 billion.

This latest bout of volatility is not only proving good for investors, traders, and speculators but also miners as the percentage of Bitcoin miner revenue from fees increased to 22.25% yesterday — the highest value since January 2018.

This is because the average Bitcoin transaction fee has spiked 188% to above $10, as per Bitinfocharts.

The total fees have also jumped to 2.67 million from $403k on Oct. 17.

Coin Metrics BTC Fees
Source: Coin Metrics

Just last week, the average fees were mere $1.4, and from there, as the price of bitcoin rallied and the market jumped in to participate in this euphoria, the activity increased, and so did the fees.

The last time we were at this level was in February 2018, while the all-time high was $55 at the top of the bull market in mid-December 2017.

A similar surge is not seen in transaction count, but a spike was recorded in transaction transfer value.

However, with the latest surge, Bitcoin’s average transaction fee is eclipsing ETH’s at $1.69. Ethereum’s average transaction fees were higher than BTC’s for most of September after it exploded over the summer due to the rapid rise of DeFi.

But the momentum has shifted back to BTC.

Read Original/a>
Author: AnTy

Trader Calls for an Extended DeFi Winter for the Best Performing Assets of 2020

The decentralized finance (DeFi) rage made many people in the crypto community very rich. With DeFi tokens surging by as much as 10,000% and more, they have become the best-performing assets of 2020, so far.

2020 saw everything from stocks, bonds, and commodities flying, hitting new all-time highs (ATH). But nothing compares to the success of DeFi.

In the macro, the YTD returns have been: gold 25% and S&P 500 2.62%.

In the crypto market, Bitcoin recorded 45.7% returns YTD. The center of the DeFi world, Ether, which according to Bloomberg strategist Mike McGlone, “appears to be maintaining its platform leadership status” meanwhile rallied 160%.

Now, in the DeFi market, the top year-to-date performers include Cream (+98,900%), Aave (+2,617%), YFI (+2,144%), Loopring (+953%), and Melon Protocol (+877%).

Crypto assets performed well during the Covid-19 crisis thanks to Bitcoin becoming a “refuge” like gold and offering a store of value amidst the concerns of fiat devaluation, weakening dollar, and inflation propelled by huge stimulus injections to counter the pandemic.

“A purely ethereal instrument performs well when the real economy is on pause,” said Marc Fleury, CEO of crypto asset management and fintech firm Two Prime.

As for DeFi solutions, they basically port financial functions like lending, borrowing, trading, earnings, and insuring on blockchains.

DeFi also led to a surge in interest in Ethereum contracts, with 5.2 million ETH now locked in the sector, as per DeFi Pulse.

“Retail cryptocurrency users have increasingly turned to derivatives to maximize their returns,” said Aziz Zainuddin, chief product officer of Fasset.

Time for a Break?

However, recently the growth of DeFi is slowing down. On Sept. 18, the DeFi collateral levels reached over $13.2 billion from less than $700 million at the start of the year.

This week, the losses recorded by DeFi tokens have the TVL of DeFi declining to $6.3 billion, currently around $8 billion.

While the deposits are struggling to get back up, the price of the tokens has been taking a hard beating for the past few days.

In the past seven days, DeFi projects have lost a considerable amount of their value, including Swerve (65%), Rune (59%), Balancer (32%), UMA (30%), YFI (30%), Bancor (25%), and Curve (20%) to name a few.

“Been expecting a DeFi mini-winter since two weeks ago, but the kind of obnoxious shit that happened last few days makes think we are headed for a much longer winter. Could easily be invalidated by price action but need to be mentally prepared whether you’re an investor or founder,” said entrepreneur and quant trader, Qiao Wang.

While the past week, the largest DEX by volume Uniswap launched its much anticipated token UNI, this week, a group of large accounts were caught dumping their coin.

This week, we also saw Curve fork Swerve’s TVL crashing from over a billion-dollar last week to a mere $44 million today.

But while the Defi bull market might take a pause, the builders aren’t stopping

Read Original/a>
Author: AnTy

Altcoins Crash as Bitcoin Plummets Under $10,600; Overall Crypto Market Looks Pretty Bad

Bitcoin has been stuck around $11,000 since the middle of last week, very slowly moving upwards. Until today that is. The digital asset went down 3.7% to as low as $10,538 in a sudden move.

Trading around $10,600, BTC is in the red on the back of $1.2 billion ‘real’ volume. Top altcoins are also moving in tandem with the leading digital currency and recording losses between 5% to 16%.

Ether also dropped by more than 6% to nearly $355. According to trader Benjamin Blunts, the digital asset could further plunge to $320 level. “Eth is still very close to rolling over imo, the whole market looks pretty fucked tbh,” he said.

While CREAM (-35%), RUNE (-30%), and bzrx (-27%) are among the top losers, SASHIMI (+42%), Hakka (18%), and Orchid (+17%), are the biggest gainers.

Volatile Coming

Altcoins continue to react violently whenever bitcoin makes a downward move. And bitcoin itself remains vulnerable to equity market movements. When it comes to S&P 500, it can be a source of great price volatility with not only the most contested election in US history coming, but the passing of the Supreme Court Justice Ruth Bader Ginsburg over the weekend has only thickened the plot.

Besides the macro-environment this week, we will see more than 80k BTC option contracts expire, which could further open the doors to more volatility.

Over the weekend, Bitcoin dropped just under $10,800 only to move back up at the beginning of another week, much like other times, only to get dumped.

“We’re trading in the middle of nowhere ($11.5k resistance, $10.6k support),” said analyst DonAlt.

Meanwhile, Fundamentals Shoot Up

Analyst DonAlt also noted how the publicly traded MicroStrategy bought $425 million worth of BTC with no effect on the price of the digital asset.

“I’d honestly expect price to do anything but randomly drop/chop sideways after an event like that,” he said.

Before the weekend, MicroStrategy CEO Michael Saylor noted that the BTC purchase by the company was made in several off-chain transactions, which were then secured in a cold-storage with multiple off-chain transactions.

Source: @Woonomic

“If Bitcoin is treated as a treasury reserve asset, based on our model, 99.98% of all transactions will be off-chain, and assets-at-risk will be in cold storage 99.92% of the time,” said Saylor.

Over the weekend, Saylor further exhibited his BTC maximalism, stating, “When considering network dominance in the crypto industry, I find it clarifying to separate crypto-asset networks like Bitcoin from crypto-application networks like Ethereum & stablecoins.”

For now, the price of bitcoin might be taking its time to shoot off, but the fundamentals, the hash rate of the network, and difficulty continue to surge higher.

Miners are already contributing a record amount of hashes to generate the digital asset. With an 11.3% mining difficulty on the weekend, the third-largest positive adjustment in the past two years also made a new peak.

Read Original/a>
Author: AnTy

Tezos (XTZ) Launches Delegated, Pre-Funded, Self-Sustaining Harbinger Price Oracles

Tezos has announced Harbinger — it’s very own oracle to deliver signed price feeds based on market data from multiple crypto exchanges to its network.

With Harbinger, Tezos is expecting the algorithmic stablecoins, lending platforms, and insurance products to kick off the new use cases.

Initial versions of the contracts are already deployed on mainnet and CarthageNet.

It’s not surprising that the network is delving deep into oracle as oracle projects have been having a lot of attention and gains in the crypto market. The crazy growth of Chainlink (LINK) is evidence of how much traction the decentralized off-chain data feed providers are getting.

Other popular oracles in the market are Band Protocol (BAND) and Augur (REP).

Take on the DeFi World

Now, Tezos, a liquid-proof of stake crypto network, is ready to make the most of the decentralized finance (DeFi) world through its oracle.

Oracles are critical to the fast-growing DeFi space, which has a total value locked (TVL) surpassing $7 billion, in order to have trusted price feed.

In its official announcement, Tezos announced that in Harbinger, “an account that pays for fees to update the price oracle can be delegated and pre-funded with tez,” much like staking.

This, it says, will enable the development of “self-sustaining” price oracles where the block rewards for participating in PoS consensus offset the fees required to keep the oracle data current.

“Having a reliable feed for on-chain price data is critical for DeFi lending platforms. Harbinger is an important building block for the decentralized finance ecosystem on Tezos,” said Robert Leshner, founder of Compound.

After taking inspiration from MakerDAO in StakerDAO, this latest one is based upon Compound’s Open Price Feed.

Harbinger is a set of tools and reference contracts, allowing anyone to become a ‘poster’ who retrieves prices from ‘signers,’ which are crypto exchanges to deploy a price oracle on the Tezos network, which then publishes cryptographically signed prices.

Moreover, Tezos smart contracts use callbacks to receive data to avoid reentrancy attacks.

In the meantime, the 13th largest crypto by market cap of $2.5 billion, XTZ is falling alongside the broad crypto market, trading at $3.43.

Also Read: Is the DeFi Craze Killing Tezos? XTZ’s Main Selling Point “Staking” Is Losing Appeal

Read Original/a>
Author: AnTy

‘Ops’ Curve Finance ‘Overreacted’ & Seized Nearly 80% Voting Power for First Proposal

Curve Finance, the decentralized exchange liquidity pool on Ethereum, is currently voting for its very first proposal. As per this proposal, the project is looking to introduce a new Compound COMP-enabled pool to Curve Finance with DAI and USDC. It also proposes to boost incentives for liquidity providers of COMP.

Additionally, the proposal further involves a suggestion to introduce a withdrawal fee of 0.02%, which would be used to burn CRV, governance token of Curve, for this pool.

To vote, users have to obtain a separate voting token veCRV. Those who want to vote through the Curve DAO have to lock their tokens and vote with veCRV. Having large amounts of veCRV means, one can submit their own proposals as well.

Interestingly, the voting power is affected by the length of the period, a maximum of four years, the token is locked. As such, the longer the CRV tokens are locked, the higher the voting power.

Launched less than ten days ago, only a small portion of CRV tokens has been locked up, just 6.7% of the 10 million CRV tokens, which has been because of the gas prices, making it difficult for smaller liquidity providers to claim and lock their CRV.

According to the Curve Finance team, the goal of its CRV token is to “incentivise liquidity providers,” and get the users involved in its governance.

CRV meanwhile is struggling as it currently trades 94.4% lower than its all-time high, hit the day of the launch. Unlike the token price, Curve Finance enjoyed a growth of 338% during the same period to surpass $1 billion in total value locked in its protocol. The project has also crossed $2.5 billion in cumulative volume.

Concentration of Power

The voting process for the proposal saw the founder of Curve Finance take over 79.8% of the voting power, noted yEarn Finance founder Andre Cronje. He added,

“Since founder rewards are significantly higher than LPs and other voters, pretty much locked everyone else out. So guess voting is pointless now.”

Cronje further shared that he doesn’t mind any of this and thinks it’s “good the founder has arguably the most control, and there is nothing wrong with that.”

Curve reacted to this with, “Ops. Too bad,” adding,

“That was a reaction to 0x431 taking 50%, but the founder overreacted. The founder will abstain from voting now until more people votelock.”

The community has until August 28th before the governance system is up. To decrease the founder’s power to 50%, they only need to lock up to 150 million CRV.

Currently, in limbo, the project is waiting for a quorum to pass it, which is expected to be fixed in the coming days as voting power balances.

The decentralized nature of DeFi governance systems has been coming into question lately. The concentration of tokens in these systems is actually not better than the ownership structure in JP Morgan Chase or Bank of America, said TokenDaily in its report.

For instance, over 13% of voting power for Compound is controlled by the top 10 addresses.

This is because DeFi governance tokens offer a “unique opportunity to influence the direction of open protocols that are otherwise nearly impossible to control,” a power not unlike what is allotted to shareholders.

Read Original/a>
Author: AnTy

Hunt for Yield Drives a Record Q2 for Genesis Lending

Genesis released its Q2 2020 report where it revealed a “very strong growth” in direct lending and liquidity mining or “yield farming” and believes this growth will continue into Q3.

The crypto lending service provider added more than $2.2 billion in new originations last quarter marking it the “largest quarter ever,” with a 324% increase from the same quarter last year. Active loans outstanding also surged past $1 billion, representing a 118% increase QoQ.

After decreasing in the previous three quarters, its BTC loan composition increased in this quarter, which came mostly from due to a decrease in USD loan composition over the same period. Combined, BTC and cash dominates the loan portfolio at 83.2%.

“The infrastructure, maturity, and general interest in BTC/USD markets relative to altcoin/USD markets is much greater, and we don’t see that trend redirecting any time soon.”

Since its launch, Genesis has originated over $8.4 billion in cryptocurrency loans.

In Q2 2020, Genesis traded $5.25 billion in spot trading, up from $4 billion in Q1, the majority of which traded on an OTC basis. In its first full month of derivatives trading, it recorded $400 million in notional value, with 80% concentrated in BTC/USD.

Insatiable Appetite

The Genesis report notes the major theme in Q2 was the demand for yield on digital assets, which continues to drive markets with the last quarter being ‘yield-centric.’ The most prevalent forms of yield generation are spot lending, call overwriting, and, most recently, liquidity mining with “an insatiable appetite for all of them.”

This hunt for yield in Q2 led to tremendous growth, especially in June, in the total interest paid to that pool of lenders and the number of unique institutional lenders on its platform, up 24% from previous months and 187% from last year and. The report reads,

“It’s not surprising DeFi yield farming has impacted our lending business, particularly on the demand side. The demand to borrow assets which have the most advantageous fee structures increases when the market is hot and rapidly decreases once the market is onto the next asset.”

Moreover, a jump was seen in call option overwriting,

“as an alternative to spot lending, many of our counterparties are selling out-of-the-money call options to generate yield via premiums.”

Read Original/a>
Author: AnTy

Green Day: Market Enjoys BTC Waking Up from the Slumber as EU Approves $2T Stimulus Package

After a very long time, bitcoin moved today. It is just a 3% spike that saw the world’s leading cryptocurrency going from about $9,150 to $9,442 on Bitstamp. However, we have started to slide down, currently trading around $9,330 with $1.47 billion in ‘real’ trading volume.

By crypto market standard, it is a tiny move, but given that bitcoin has been acting like a stablecoin lately, this upwards move brought back the enthusiasm in the market and community.

“Bitcoin awaken from thee slumber. I’m getting fucking bored,” tweeted BitMEX co-founder and CEO Arthur Hayes.

As we reported, Bitcoin has been trading in a tight range for the past few months, which continues to keep on getting tighter. One month bitcoin price range in July actually has been to its historic low of 6%.

Today, bitcoin’s move came as EU leaders reached a €1.82 trillion (over USD $2 trillion) COVID-19 recovery package earlier this morning.

“It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU,” the EU leaders said in a joint declaration.

“Exceptional situations require exceptional efforts,” said German Chancellor Angela Merkel, who said the financial foundations for the next seven years had been laid out.

The small spike in Bitcoin price has OKEx BTC futures open interest surging 7.5% and trading volume increasing 14.5 times within an hour on the platform.

The market is excited but still waiting for the digital asset to break the recent high of $9,500 to “make the reversal a legit signal long.”

“About time we get some price action around here. Meme trendline broke. A daily close above $9,443 would be a higher close on the trend. Close above $9,700, and I’ll feel bullish. Close above $10k, and I’ll market buy in this corn,” said trader Josh Rager.

Green Markets

Today, everything is green.

Nasdaq rose to yet another all-time high to 10,837 only to slide to 10,731. Dow Jones jumped 0.98% to 26,943.

S&P 500 started by recording gains to 3,276 but is currently at 3,268 — the highest level since February and not far from its all-time high of 3,386. And Bitcoin’s correlation with the S&P 500 is still high at 64.6%, as per Skew.

“S&P500 and Bitcoin have been correlated and co-integrated last 10 years. S&P implied BTC price: $25K .. interesting times ahead!” said PlanB.

Precious metals are shining with both gold and silver hitting multi-year highs on stimulus and concern over the coronavirus.

Gold jumped 1.23% to $1,840 per ounce. But it is Silver, which is leading the charge with Citigroup seeing its prices rising to $25 in the next six-to 12 months.

According to economist and trader Alex Kruger, soon, most of the assets will look like silver even though “people will fight it, and the word “bubble” will be used with increased frequency.”

This is because of negative real rates, continued monetary & fiscal stimuli, coronavirus overrated (market over-reacted), and economic recovery.

And the US Federal Reserve has plenty of room yet, with its balance sheet as a percentage of GDP currently standing at 35% compared to the ECB’s 57% and the BoJ’s 118%.

“We moved to the “Fear is Good” stage, the more fear about coronavirus resurgence, the more fear among policy makers. And what do fearful policy makers do? They provide stimulus,” he said.

Read Original/a>
Author: AnTy

Bitcoin Can ‘Definitely’ Become the World’s Main Currency; It’s Poetry: Jack Dorsey

  • “A global currency which is a native currency for the Internet is a very powerful concept” – Twitter co-founder and CEO
  • Bitcoin is “poetry” and the pseudo-anonymous launch of its whitepaper was a very “powerful statement,” he said

“I believe that the Internet deserves and requires a native currency and that’s why I’m such a huge believer in Bitcoin,” said the co-founder and CEO of Twitter Jack Dorsey.

Dorsey appeared on the AI Podcast with Lex Fridman, a research scientist at MIT working on human-centered artificial intelligence where he talks about the biggest problem they are facing as a company — which is not to be able to act as an Internet company.

The founder and CEO of Square said to enter a new market, they have to have a partnership with a local bank and pay attention to different regulatory onboarding environments.

“But a digital currency like Bitcoin takes that away and we can potentially launch a product in every single market around the world because they’re all using the same currency and we have a consistent understanding of regulation and onboarding.”

A Powerful Concept

Further talking about his interest in bitcoin, he shared,

“I think the most beautiful thing about it is there’s no one person setting the direction and there’s no one person on the other side that can stop. So, we have something that is pretty organic in nature and very principled in its original design.”

“The white paper of Bitcoin is one of the most seminal works of computer science in the last 20-30 years. It’s poetry.”

Also, the underlying principles behind it and releasing it under a pseudonym, according to him, was a very powerful statement. Its pseudo-anonymous launch was “profound” as there could be one person or multiple people representing Satoshi Nakamoto, which builds tangibility and empathy.

The timing of Bitcoin’s release was just as important, which was in the aftermath of the 2008 financial recession, “a total activist move.”

As for what it looks like in the next 10 or 20 year, “no one knows,” but what it means is every person that enters the ecosystem in any capacity “changes its direction in small and large ways.”

Just like the Internet, Bitcoin enables “everyone to be part of the story which is also really cool.”

“A global currency which is a native currency for the Internet is a very powerful concept and I don’t think any one person on this planet truly understands the ramifications of that. I think there’s a lot of positives to it and there are some negatives as well.”

Not Just Money

This kind of digital currency Jack Dorsey said could “definitely” become the main currency of the world to push the decentralization of control of money. But the bigger ramification is how it affects how society works and “there are many positive ramifications outside just money.”

Money is a foundational layer that enables much more. Talking about his recent trip to Africa, he shares how moving money across borders between nations on the continents remains a problem to be solved. He said,

“I think as we get a more durable resilient and global standard we see a lot more innovation everywhere and I think there’s no better case study for this than the various countries with and within Africa.”

Here is the full interview:

Read Original/a>
Author: AnTy

EOS Block Producers Reach ‘Strongest Consensus’ In Approval Of Worker Proposal

The EOS Worker Proposal, which is famous for being very controversial, was announced by the most important EOS block producers that it went into its first execution stage and is supported by many participants to the network.

One of the leading EOS block producers, EOS Nation, reported that many Eosians agreed to support the new proposal and nothing could have changed their mind. On March 24, it also announced that a number of 34 both active and standby producers approved the EOS Worker proposal. It seems that until now, this is the strongest consensus achieved by any proposal in the EOS Mainnet.

The Eosio.wps System Launched

The March 24 first multi-signature approval launched the eosio.wps account that stores funds needed for new operations on the system. After this approval and the MSIG execution, eosio.wps will receive 50,000 EOS tokens in transfers from eosio.names, while the 3rd MSIG is going to deploy the Worker proposal smart contract to the same account, namely eosio.wps. After the 4th approval, the new proposal will have the whole network’s voting system reconsidered.

A Proposal Surrounded by Controversy

According to the new scheme and outlines, anyone can make a proposal on how the EOS blockchain should work, in exchange for a small EOS fee. After that, the block producers, regardless if they’re active or standby, need to vote on the proposal with +1, -1, or 0. In order to pass, a proposal has to gather 20 points. Here’s what the co-founder and CEO at Block.one, Brendan Blumer, had to say about the strategy employed by EOS:

“Socially authorising the BP’s to direct token-holder funds into projects without a clear or measurable return of value is risky, and may open the door to corruption and external scrutiny.”

Many voices don’t agree with him, but it remains to be seen how things are going to work for the EOS Worker Proposal in the future.

Read Original/a>
Author: Oana Ularu

Money Is At Risk In Banks, Bitcoin Is Probably The Most Secure Currency Right Now: Tim Draper

  • “If we’re able to hold above $7,800, it will be a very good sign,” – Mati Greenspan
  • Venture Capitalist advises millennial’s to start building their empire by investing in bitcoin that doesn’t cost them 2.5 to 4% every time they swap their credit card
  • Unchained Capital’s Parker Lewis says bitcoin obsoletes all other money because it is “the most credible monetary properties”

Bitcoin price has come down to $8,300 level from last week’s $9,200 level. Despite bouncing off the support yesterday, it was unable to reclaim the level and made its way back toward support.

We have come to some serious resistance at the 200-day moving average, a line that Mati Greenspan, founder of Quantum Economics says played a “significant role in bitcoin’s graph over the last few years.”

According to Greenspan, “if we’re able to hold above $7,800, it will be a very good sign.”

The fact that Chinese New Year, it is possible we could finally move even lower. Currently, BTC/USD is trading at 8,314 with 24 hours loss of 1.28% while managing the daily trading volume of $631 million, as per Messari.

Tim Draper Advises Millennial’s to Invest in Bitcoin

Bitcoin price might be looking uncertain right now but billionaire Tim Draper who has predicted BTC price at $250,000 by 2022, and even called it a conservative number last year, is advising millennials to put their money in Bitcoin.

The venture capitalist said that the financial system is not working anymore for millennials which have made them more renters than buyers. Draper said:

“Things aren’t quite working for millennials. They owe a lot, and with the current salaries, they can’t pay it off. It’s a challenging moment for them, and they’ve become renters rather than buyers because they have to.”

He reiterated his views that Bitcoin is an alternative to banks and would save the investors from them. Draper is advising millennials to

“start building their empire by investing in a model that doesn’t cost them 2.5 to 4% every time they swap their credit card.”

“My money is at risk in banks. They’re hacked all the time. Bitcoin is probably the most secure of currencies right now,” Draper told FOX Business.

Bitcoin has the most credible monetary properties

Parker Lewis, an author at Unchained Capital, a Bitcoin native financial services company also feels that “Bitcoin Obsoletes All Other Money.”

In his write-up, he explains how it sounds crazy to believe that Bitcoin, a $150 billion purchasing power which is a drop in the bucket compared to $250 trillion of debt market and $8 trillion purchasing power of gold will be the dominant global currency. But he argues,

“all fiat systems is nothing more than the manifestation of gold’s failure as a monetary medium.”

And after abandoning the gold standard in 1971, the modern fiat system has only managed to survive as long they have because a solution to the problem that fiat itself created did not exist yet.

But Bitcoin he said is that solution.

Bitcoin is global and permissionless in which the more the trading partners, the greater the value each BTC provides to those holding the currency.

“New adopters of a monetary network both contribute value and realize value as a function of adoption, which is why it is not possible to be late to bitcoin, nor will bitcoin ever be too expensive.”

Bitcoin’s 21 million hard cap means no other currency can ever be as scarce as the leading digital currency and scarcity drives adoption and community of value.

Bitcoin he said “is an equal opportunity mind-bender” which obsoletes all other money because “economic systems converge on a single currency, and bitcoin has the most credible monetary properties.”

Read Original/a>
Author: AnTy