Silvergate Exchange Network (SEN) Crosses $100B in Transfer Volume; An Increase of 252% PoP

Silvergate, the California based crypto-friendly bank, announced that the cumulative transactional volume within its payment solution, Silvergate Exchange Network (SEN), has hit $100 billion. This year has been bullish for SEN, a trend that the firm attributes to the growing interest in crypto markets. In Q2 alone, SEN scaled its transfer volumes by 30%; the year-on-year (YoY) is also positive 250%, with transactions totaling to $76 billion this year.

SEN, which is barely 3 years old, began as a dollar on-ramping solution, targeting institutional investors who sent money around the clock. Its most recent financial product enables the processing of payments and funding loans. The project has also been integrating digital asset tailored services given the growing demand and shifts towards virtual ecosystems. On this front, Silvergate appears to have made a killing; in fact, the firm’s CEO Alan Lane was quite bullish during the Q2 earnings call.

Lane remains bullish according to this latest SEN milestone update,

“When we created the SEN, we couldn’t have anticipated its rapid, broad adoption across the digital currency industry … This milestone and broad adoption of the SEN further validates the platform’s competitive advantage and its growing network effects.”

It is quite noteworthy that Stablecoins like PAX and USDC has played a big role in SEN’s growth, especially with the DeFi mania, which picked up in May. Silvergate is one of the few banks in America that offers API transaction services through its payments network ‘SEN.’ The bank carries out the due diligence process and boards white-labeled investors into ecosystems such as Ethereum, making it seamless to interact with DeFi markets. Lane said,

“They’re coding our APIs right into their technology stack … It is secure, and 24/7 and you don’t need human intervention when they have coded in the API.”

However, he was also keen to highlight that Silvergate’s role is only to approve prospects on SEN; they can then initiate underlying functions such as loan processing and digital asset services.

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Author: Edwin Munyui

UNI on the Move, Is Uniswap’s Governance Token Outside the Realm of US Securities Law?

Last week, the largest decentralized exchange (DEX) by trading volume, Uniswap, launched UNI as part of Uniswap V3. 400 UNI tokens were airdropped to every customer who used the platform before Sept.1st, 2020.

While some called this a “groundbreaking” token launch where customers were made the investors, some accused the project of catering to whales. Currently, UNI tokens are being held by more than 50,000 Ethereum addresses/wallets.

The token hit the peak above $8 last week only to lose more than 50% of its value during this week’s retracement. Today, UNI is back on the move, up about 25% at $4.81.

The liquidity on the popular DEX has also hit a new record this past weekend and continues to trade around $2 billion, since crashing following its copycat SushiSwap, sucking the liquidity. The volume on the exchange also sees growth, keeping above $400 million for the most part.

The community is now waiting for Uniswap V3, which will improve capital efficiency and tackle slippage. Project creator Hayden Adams has already raised the expectations of the community saying, it will be “sooo much better than all the things people are hoping it will be” and that Uniswap V3 “destroys every other AMM I’ve seen to date and it’s not even close.”

“We’re full steam ahead on V3, which is going to eat V2’s lunch,” said Haydens a few months back.

Meanwhile, what’s the legal nature?

Right at the genesis, 1 billion UNI tokens were minted, 60% of which will go to community members, 15% is already distributed through the airdrop. 21.51% will go to team members with a four-year vesting period the same as 0.69% to advisors, and the 17.80% share that goes to equity investors — Uniswap raised $11 million in June this year.

Being a governance token means, holders have control over company decisions. But with the launch also came the question if it is a security.

“There was no public solicitation for investment; it was a private offering to a few people,” is what Ethereum co-founder Vitalik Buterin has to say about this.

“If one were to also consider that the Uniswap team is well funded, backed by seasoned VCs who have most likely lent their legal, regulatory, technical and other expertise, one might also take a more careful consideration of the facts and circumstances of this particular offering and why Uni tokens may very well be outside the enforcement framework of U.S. securities laws,” wrote Phil Liu, the Chief Legal Officer at Arca.

Liu, who believes UNI tokens isn’t a security, in his argument that UNI tokens fall outside the US Securities Enforcement Framework, said the team didn’t raise money through a token offering and neither it is controlled by a central entity.

As a matter of fact, Uniswap is an open-source and fork-able network that puts the power directly into the holders’ hands.

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Author: AnTy

Binance Lists Wrapped-BItcoin (WBTC) Amid the Rapidly Growing DeFi Hype

Binance, one of the most recognizable crypto exchanges, with the highest share of the trading volume, is chasing the ongoing DeFi hype. Binance has recently announced the listing of another Defi token, used for collateral, called Wrapped-Bitcoin (WBTC). This listing is seen as Binance capitalizing on the rising demand for the token as well as for DeFi tokens.

Wrapped-Bitcoin is an ERC-20 based token device to be used as a form of collateral in the defi ecosystem. As per the announcement made by the exchange, the WBTC token would be available for treading on the exchange from August 31st. The value of WBTC is pegged against the value of one bitcoin.

The WBTC token was a collaborative effort by major defi players in the space, including the likes of BitGo, Ren, Dharma, Kyber Network, Compound, MakerDAO, and the Set Protocol. The aim behind creating the WBTC token was to offer more liquidity in the defi ecosystem.

The WBTC token has been listed against Ethereum and Bitcoin for trade, and users on the platform can start investing and trading immediately.

How Will the WBTC Function?

Decentralized Finance (Defi) has become the talk of the crypto world in 2020 as the market grew exponentially over the first half of 2020. Defi protocols use Collateral Debt Position (CDP), where users can put Ether or ERC-20 based tokens as collateral and withdraw loan in a stablecoin.

When the popularity of the defi ecosystem grew, and more number of investors started venturing into the ecosystem, liquidity became an issue. As a result, the major players began looking for different ways to offer liquidity, and the ERC-20 token arose as the best bet.

WBTC soon became quite popular among investors, and at one point, the amount of wrapped bitcoin locked in defi protocols was significantly more than the amount of bitcoin in the lightning network.

Binance has been known to conquer all aspects of the crypto ecosystem and has proven its mettle in both the spot trading market and futures trading market. Given the growing interest of exchange in the defi, it would not be a big surprise if Binance emerges as one of the key players in the near future for the defi ecosystem.

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Author: James W

Coin Metrics’ Trusted Volume Framework Reveals Only 14 Exchanges Are Reporting Real Trading Data

Coin Metrics, a crypto analyst firm, has released a new framework called ‘Trusted Volume Framework’ to evaluate how trustworthy is the trading volume clams made by various exchanges every year.

The analysts at Coin Metrics found that only a handful of exchanges, among hundreds, managed to cut when it comes to offering trading volume data. The study also found that a majority of the exchanges have been showing 10x the actual volume. Exchanges dwell into wash trading, and many other unethical means to show an inflated number to attract more customers.

Key Takeaways of the study revealed:

  • Fake trading volumes have been a black mark on the industry – it is difficult to find a single metric to easily sift through the reported numbers.
  • We’ve taken a data-driven approach to the problem and are excited to introduce a “trusted volume” metric to help identify the legitimate trading volume.
  • Our framework for measuring the reporting quality of exchange is broken down into three broad categories: volume correlation, web traffic analytics, and qualitative features.

As of June 2020, the passing exchanges for ‘trusted’ spot volume include Binance (and Binance US), Bitbank, Bitfinex, bitFlyer, Bitstamp, Bittrex, CEX.IO, Coinbase, Gate.io, Gemini, itBit, Kraken, and Poloniex.

Jon Geenty, a data scientist at Coin Metrics, commented on the growing trend of showing inflated numbers and said:

“Exchanges are especially notorious for boosting volume numbers to game ranking sites or other nefarious reasons. The industry is full of technical information that can be difficult to understand and, at times, misleading. We are working to create a more transparent environment for those within it and a safer, more trustworthy source for those hoping to learn more.”

How did Coin Metrics Evaluate Fake Volume?

Coin Metrics’ Trusted Volume Framework
Source: Coin Metrics

Analysts at Coin metrics did not collect data from top exchanges; instead, they collected trading volume data from trusted spot exchanges which included:

The Coin Metrics subjected these exchanges to three litmus tests, which included comparing the price feed for the exchange against the trusted exchanges. Any exchange with a 60% correlation with the trusted exchange ‘passed’ the test.

The second test assesses the exchange’s volume against the web traffic of the platform, so if an exchange is inflating its volume, then the ratio will be higher as well.

And for the third test, Coin Metrics checks qualitative measures taken by the exchange, like whether the exchange is un/regulated, whether the platform boasts KYC features and others.

Among the most popular exchanges which could not pass the test had only one contender in OKEx, which failed on all the tests.

It was revealed that, in the last 24 hours, the overall volume of the crypto market was $13.25 billion, while the exchanges combined showed a total trading volume of $113 billion.

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Author: James W

Bitcoin Futures OI Surpasses $4B, BitMEX Regains its Dominance While Bakkt is A Ghost Town

The Bitcoin market is back to seeing some action.

As the price of the BTC moves, so does the volume and open interest. Open interest for bitcoin futures on crypto derivatives exchange BitMEX has yet again exceeded $1 billion, back to the pre-March crash level.

The sell-off on March 12th hit BitMEX the hardest as it’s bitcoin balance dropped substantially. But now the total open interest on the exchange has returned to its levels of January.

Interestingly, before the March crash, BitMEX accounted for 36% of the total OI in the bitcoin futures market only to lose its market share to OKEx, which became the leading bitcoin futures platform in terms of OI.

But BitMEX took its top spot back recently and is now accounting for 23% of the total OI, as per Arcane Research.

Not just on BitMEX, but the total open interest in the bitcoin futures market has recovered to the pre-crash levels, currently at $4.362 billion, and is now on its way to February high.

This time, however, the OI is more evenly distributed among the participants that it was before the sell-off.

Huobi, Binance, and CME all hold more than 10% of total OI share while Bakkt has a mere 0.20%.

Total Open Interest Futures Market
Source: Arcane Research

Bakkt is not only performing badly in terms of OI, but pretty much nothing is going on the ICE-baked platform, whose launch was once highly coveted by the market.

Bitcoin futures volume on the exchange remained below $30 million, which has grown to $48 million this week. The only exchange on par with Bakkt is Kraken. As for the open interest in Bitcoin futures, Bakkt holds the lowest place at just $7 million, followed by CoinFlex at $8 million.

When it comes to its bitcoin options product, Bakkt has nothing to showcase because absolutely $0 has been traded in volume and recorded in OI for over a month now. The Bitcoin options market remains under the dominance of Derbit, which controls 92% of volume recording $161 million in volume and $1.3 billion in OI on July 23rd, as per Skew.

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Author: AnTy

Altcoins’ Under Heavy Losses, BTC Bias in Favor of Bears as Stock Market Fears Another Sell-Off

Bitcoin’s price remains flat, with volume dying despite the stablecoin supply explosion in 2020. It just took four months for the stablecoin supply to double to reach 12 billion while it took five years to reach the initial 6 billion.

In the past few weeks, bitcoin’s correlation with the S&P 500 is also surging, and it is struggling to outperform the gold.

However, as we reported declining volatility is indicating we may be about to see some action.

“The Bitcoin market continues to trade within range. Caution is advised as long as price remains in this range,” said trader CryptoYoda.

Although the weekly candles are giving a short-term bullish outlook as they slowly trend upwards, the trader says, “Unless $10,500 is taken out, the bias remains in favor of the Bears and further consolidation.”

Retail Activity Pushing Prices Higher

Bitcoin trading sideways, however, has been suitable for altcoins, which have been rallying, most notably Dogecoin. This “joke cryptocurrency” had a volatile last week driven by Tik Tok zoomers.

Retail trading has the equity markets ballooning with the millennial and Gen Z using commission-free apps like Robinhood, which saw a record 3 million new accounts in Q1, to invest in cheap assets. This retail activity also spilled into the digital asset market.

While Dogecoin never reached $1 as the viral challenge went on Tik Tok, on July 8th, over 1 billion units of supply that haven’t moved for two years was suddenly transferred.

Cardano was another one that saw its market reaching new 2020 highs on July 8th, which saw it passing LTC’s market cap after ADA prices rose in anticipation of the Shelley mainnet release.

Meanwhile, LINK jumped to a new ATH and captured the 10th spot, VeChainThor also exploded higher with DeFi tokens using this rally to push even further.

Red or Green?

Amidst the greens, yesterday, bitcoin slid slightly after the stock market dropped, which resulted in Altcoins falling as well. On Monday, Nasdaq rallied to set an all-time high only to close down by over 1%. The last time this happened was in early March 2020, which had traders fearing another March sell-off like situation.

But that time, the Fed wasn’t printing money like crazy.

For now, among the top cryptos, ADA is down the most by 6.50%, followed by Chainlink’s (LINK) about 5%.

Other losers include Ampleforth (37.4%), Loopring (10.89%), Synthetix (10.60%), Theta Token (9.46%), REN (9.28%), Balancer (7.17%), Tezos (7%), Kyber Network (7.96%), Ravencoin (7.96%), Algorand (6.85%), Compound (6.52%), Stellar (6.12%), Ziliqa (5.90%), Elrond (5.5.61), Matic Network (5.09%), VeChian (4.73%), BNB (4.33%), BitTorrent (4.18%), and Tron (3.97%),

In the past hour, however, things have started to turn green.

It all depends on how bitcoin behaves now. If the world’s leading cryptocurrency continues to trade sideways, altcoins will rally. Even a slight uptrend could help these cryptocurrencies, but a drop in Bitcoin price will mean only more losses for the altcoins.

“Alts will likely take a hit once Bitcoin shows its true face in the form of turbulent moves in either direction; thus, more patience is needed,” said CryptoYoda.

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Author: AnTy

DeFi App Growth Boosts Total Transactions On DApp Blockchains By $4.5B In Q2 2020: DAppRadar

In a report by DApp Radar, the total transactional volume on DApps touched the $12 billion mark in Q2 2020, representing a $4.5 billion increase from Q1 2020. Ethereum (ETH) continues to dominate the decentralized application (DApp) industry attracting a value of $11 billion across Q2 2020.

The growth is majorly impacted by the growth of decentralized finance platforms such as Balancer (BAL) and Compound (COMP) over the past month. EOS and TRON still lag in the DApp ecosystem despite interest in gaming and betting applications on the blockchains increasing substantially in the previous quarter.

Ethereum’s strengthening claim to the first spot

DApp Radar, a DApp aggregating platform, released its Q2 2020 DApp Report on July 2nd, showing the immense growth of Ethereum’s value in the DApp ecosystem. 2020 began as an exciting time for both the DeFi and decentralized exchange (DEX) markets.

DeFi on Ethereums substantial growth with the number of active wallets in the space experiencing a 500% year on year growth, at about 200 at the start of 2019 to over 4000 active wallets at the end of Q2 2020.

The massive growth contributed mainly to Compound’s growth into a crypto unicorn, set DeFi applications as the third largest category on Ethereum, contributing 24% of the total activity. However, DeFi remains the most crucial contributor to ETH growth and value the report states:

“DeFi already holds $11 billion in 2020. This is 2.5 times higher than it was within all of 2019. This metric shows the growth of the DeFi category by 1,410% year-on-year and 150% quarter-on-quarter.”

DEXes growth prospects

The growth of DeFi products, in turn, caused an increase in volumes on DEXes, a report from Our Network states. Curve, a market marker for stablecoins, was one of the biggest beneficiaries of the “yield farming” process on Compound and Balancer, offering competitive slippage to Uniswap and Kyber Network as well as low fees.

The DEX witnessed a 30x growth on its average trading volumes in June following the launch of Compound token, registering a daily volume peak of $60 million in mid-June.

EOS and TRON rise to challenge ETH dominance

The DApp industry is heavily dominated by Ethereum, Eos, and Tron, the latter two aiming at dethroning the king platform shortly. With DeFi cracking up an imbalance in the value stored on each blockchain, TRON sought to add its DeFi assets mirroring COMP and BAL.

While the DAppRadar report states, TRON is still early in the DeFi space, the transaction volume on the blockchain increased by 17,210% in Q2 2020 when compared to Q1 2020 when only $78,000 in size was registered.

TRON’s diversification to DeFi still has some way to go as the gambling and high-risk DApp transaction volumes dominate the blockchain activity. This section and games on the blockchain contribute to 80% of daily activity on the chain.

In a similar breath, the EOS gaming market is the only sector that has grown since the highs in daily activity on EOS back in Q2 2019. The games and marketplace category accounts for half of the total activity on EOS with two apps – the Crypto Dynasty and Upland – leading the charge.

The report also mentioned the growth of the Hive platform over STEEM since the Justin Sun takeover, as well as other DApp projects such as IOST, Thundercore, WAX, Ontology, and Waves.

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Author: Lujan Odera

Binance’s BNB Gets A Branded Twitter Emoji As the Exchange Celebrates Turning 3

The largest crypto exchange in the world in terms of trading volume, Binance, becomes the third crypto-based firm to get a branded emoji on Twitter. Binance joins Bitcoin (BTC) and Crypto.com (CRO), which also have branded emojis.

Anybody that tweets using the hashtag: #BNB or #Binance will get to see the signature Binance logo. Binance CEO revealed the new branded emoji by tweeting #BNB to his over 500k followers on Twitter. CZ, as he is usually referred to, was thrilled by the new emoji saying that he could just sit there and randomly start retweeting other people using the new emoji.

Branded Twitter hashtags are a lesser-known form of advertisement service offered by Twitter to renowned brands. However, Binance did not reveal the amount it paid for the emoji. Although billion-dollar brands such as Pepsi, Anheuser-Busch, and IBM have, in the past, paid about $1 million to get branded emojis, the amount for crypto-based firms is believed to be much lesser. Larry Cermak, a researcher, working for TheBlock, recently revealed that a company that uses about $50,000 in Twitter ads qualifies to get a branded emoji.

The Twitter emoji comes just days before Binance prepares to celebrate its third anniversary, on July 14. The emoji speculated to be part of the anniversary celebrations. The firm has since started a new hashtag dubbed #BinanceTurns3 that also comes with an emoji.

As part of the celebrations, the firm is giving out Binance non-fungible tokens (NFT). To receive the tokens, one must follow the exchange on all of the social media platforms as well as share various content using the anniversary hashtag. The campaign is set to run until July 7. The Binance team believes that the emoji will help in creating a bigger and more visual buzz that will also lead to more mass adoption of the Binance Coin (BNB).

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Author: Joseph Kibe

Banco Rendimento Becomes First Bank To Run Entirely on RippleNet Cloud

Banco Rendimento, one of the top volume producing banks in Brazil, has become the first RippleNet member to shift its RippleNet operations to the Ripplenet Cloud completely. Cloud technology has found a lot of relevance recently as it offers uninterrupted connectivity between the service provider and the customer no matter irrespective of their geographical location.

Financial institutions see great potential in cloud technology in these changing times, as it allows them to attend to customer issues and queries rapidly and resolves them almost instantly.

Ripple has made a name for itself among the cross-border remittance technology providers. Its RippleNet solutions are being adopted all across the globe by various banks and financial institutions to offer instant cross-border transactions at low cost to their customers.

The traditional remittance system is quite complicated and hasn’t seen much advancement in terms of core technology, which makes cross-border transactions a tiresome task.

While Banco Rendimento is the first bank to shift its operation on the cloud completely, many other RippleNet clients such as Azimo, MoneyGram, Pontual, and Viamericas have also been utilizing the benefits of the RippleNet cloud.

80% of New RippleNet Clients Prefer Cloud Deployment

In an official announcement blog published by Ripple, the firm mentioned that its clients are highly bullish on cloud deployment, and a majority of them have already opted for the same.

In the past 6-months, 80% of all the new clients of RippleNet have opted for a cloud deployment while 30% of all forms of the transaction on the RippleNet platform is being carried via RippleNet Cloud.

Adrian Yap, CEO and co-founder at MoneyMatch explained how RippleNet Cloud has helped them connect with multiple financial institutions needed for the business and how this technology could be the way most of the banks function in the future. He said:

“Being hosted on RippleNet’s Cloud allowed us to connect with financial institutions around the world that would have otherwise been more challenging to connect to from Malaysia. Using one API set for all of our RippleNet connections allowed us to cut our costs and speed up the integration process, which otherwise would have taken days or weeks longer.”

Banco Rendimento expects to see a significant change in its transaction volumes by the first quarter of 2021 and offer a much more efficient and cost-effective set of services to their customer base.

Jacques Zylbergeld, FX Superintendent at Banco Rendimento, commented on their decision for a complete cloud deployment saying:

“We migrated to RippleNet Cloud to give our customers the chance to connect with global partners easily, faster, and with more transparency. We see cloud services as a way to allow them to navigate easily, while they can submit and trade payments in the same environment with clients from all over the world, and Ripple is helping us with that.”

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Author: Silvia A

CoinMarketCap Finds the Solution to “Fake/Suspicious” Volume

In 2019, it was reported that 95% of the bitcoin trading volume is fake.

About a month after that, CoinMarketCap said they are “working hard to build constructive solutions to address volume concerns.”

Now, a year since the report came, CoinMarketCap has found the solution to tackle this issue.

Over a month after the leading spot exchange Binance acquired CMC in a $400 million deal, the crypto data tracker has exchanged the “volume” criteria for ranking cryptocurrency exchanges with the web traffic category.

à la ‘If you don’t have a solution, change the question!’

Real Volume? Remove suspicious volume!

Interestingly, the day Binance acquired CMC, the exchange was ranked 15th with a reported volume of $6.7 billion. However, the adjusted volume, a metric to exclude data that is “skewed or potentially suspicious,” reported just over $2 billion.

But this metric is now removed from the site.

And based on the new metric, Binance got the top spot!

“What did you think was gonna happen? Six weeks in and binance acquisition of CoinMarketCap already being abused to manipulate the rankings,” called out analyst Mati Greenspan.

Greenspan has been against Binance’s decision to acquire CMC from the start which he said is “buying out the ranking site in order to manipulate your way to the top.”

Source: CoinMarketCap

According to Binance founder and CEO Changepeng “CZ” Zhao, the new rankings are “better than before,” and he finds it useful as “I can finally have a clear view of the field and see who the real upcoming exchanges are.”

With the new metrics, “We strive to maintain a high standard for data transparency and integrity in our industry,” he said.

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Author: AnTy