Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin

Ethereum is a clear winner when it comes to earning fees. This second-largest network generated $22.6 million in transaction fee revenue in the past 24 hours and more than $45 million on a 7-day average.

When it comes to its competitors, Binance Smart Chain (BSC) made $1.68 million in 1-day fees but still comes at 3rd place while Avalanche is doing just under $268k, Cardano $49k, and Polkadot $253, according to CryptoFees.

It is the popular DEX Uniswap that is the second-highest fee earner at just over $3 million. As for other decentralized finance (DeFi) projects, Aave is recording $1.3 million, SushiSwap $1.2 million, Compound $996 million, MakerDAO $140k, and Polygon $33k in the past 24 hours.

In all of this, the largest network, Bitcoin, falls at 9th place by generating roughly $400k in 1-day fees. This low fee is resulting in a drop in revenue from fees as a percentage of total miner revenue to a mere 1.3%, the lowest since January 2020.

The use of Layer 2 solution Lightning Network could also be a reason for this, whose capacity has been increasing throughout the year, going from 1,050 BTC to a new ATH of 2,583 BTC now.

Even Arbitrum, Ethereum Layer 2 solution, generated more fees at over $613k than Bitcoin. Arbitrum’s competitor, meanwhile, comes just a step below Bitcoin at roughly $332k.

Arbitrum has been outshining the EVM-compatibility competitors despite a flurry of liquidity mining announcements coming from Avalanche, Fantom, and Harmony.

On Sept. 10 and 11, Arbitrum’s bridge contact recorded a sharp increase that sent its total value locked (TVL) to $2.1 billion, from $173 million.

However, most capital in Arbitrum right now is farming speculative projects. But with projects like Aave, Balancer, Chainlink, Coinbase Wallet, DAI, Curve, Cream Finance, Etherscan, Gnosis Safe, Infura, Metamask, OKEx, Nansen, perpetual protocol, Sushi, The Graph, Tether, USDC, Uniswap, WBTC, Zapper, and many others soon to be deployed on Arbitrum, this could change really quickly.

According to Dune Analytics, TVL on Arbitrum Bridge jumped another 25% in the past week to $2.7 billion, while a 51% increase was recorded on Optimism ERC20 Bridges, standing at $37.6 million.

Arbitrum Bridge currently accounts for 34.6% share of Ethereum bridges TVL followed by Polygon ETC20 Bridge at 30.4% share, Avalanche Bridge at 24.4%, and Fantom Anyswap Bridge at 6.3%.

When it comes to the breakdown of assets being bridged out of Ethereum, WETH/ETH, USDC, USDT, DAI, and WBTC account for nearly 90% of asset value.

Daily unique validators on Arbitrum are currently 81, down from the 588 peak from last week. Optimism saw a huge jump in deposits on Sept 11 as it went from 234 to 9828 in a day only to get more than halved in the next couple of days and currently at 446.

Arbitrum’s take-off in early September actually coincided with a sharp decrease in the daily median gas price on Ethereum mainnet. But it’s to be seen if it is just a coincidence or a causal relationship as NFTs also lost steam around this time, which has been the biggest contributor to the increase in gas prices.

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Author: AnTy

Grayscale Is Interested in Launching A US Bitcoin ETF and So Are Its Investors, says CEO

Michale Sonnenshein says it is a “matter of when not if” US regulators approve a Bitcoin ETF but waiting for a green signal from the regulators.

Grayscale Investments, the world’s largest digital asset manager, is betting on the approval of a US Bitcoin exchange-traded fund (ETF) in the near future.

The company is interested in launching a Bitcoin ETF, that is if the authorities give it the green light to do so. Chief executive Michael Sonnenshein told Insider,

“When we get the signal that perhaps they have greater comfort and have seen some of [the] elements in the market mature, we would continue to look to be engaged in those discussions.”

The asset manager has $43.55 billion in AUM, of which north of $37 billion is in Grayscale Bitcoin Trust (GBTC).

GBTC has been trading at a discount for over ten days now, currently at 7%, as per YCharts.

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As we reported, the company has posted a number of ETF-related jobs, which has been in response to “customer demand,” sparking the speculation that Grayscale is planning to file for an ETF. Zac Prince, co-founder and CEO of BlockFi, one of the largest holders of the Grayscale Bitcoin Trust (GBTC), called Grayscale’s ETF job postings’ “an interesting signal.”

“The race to launch the first Bitcoin ETF is heating up,” said Todd Rosenbluth, director of ETF research for CFRA Research.

As we saw in Canada, the first-mover advantage is “tremendous” in the ETF space, and “whichever comes out of the gate first will have a leg up,” Rosenbluth said.

While several such proposals have been filed in the past, the US Securities and Exchange Commission (SEC) has yet to approve one. Canada has already listed three Bitcoin ETFs. Jake Chervinksy, General Counsel at Compound Finance said,

“Although several proposals have been submitted, most are still incomplete & none have been published in the Federal Register yet. Publication is the event that triggers the SEC’s deadlines to evaluate a proposal (240 days maximum).”

And while Grayscale is interested in applying for approvals for an ETF, the company is waiting for a stronger signal from the regulators before taking action.

Still, it is a “matter of when, not if” US regulators approve a Bitcoin ETF, said Sonnenshein. But he doesn’t want to second-guess the SEC, as “ultimately those decisions are in the hands of regulators.”

Back in 2017, Grayscale made the push to convert its close-ended GBTC fund into an exchange-traded fund but pulled out of the process voluntarily. According to the CEO, a Bitcoin ETF would be “well-received by the investment community” because of the product structure, which is popular, and their familiarity with it.

“We’re certainly seeing positive receptivity from our investors… and as a result of that, we certainly want to make sure we can continue to stay in front of investor demand.”

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Author: AnTy

Bitcoin Seeing Strong Bullish Action But ‘Beware the Ides of March’

Any extreme March volatility, however, is temporary when it comes to $1 trillion cryptocurrency’s longer-term uptrend, says Delphi Digital.

The price of Bitcoin is enjoying an uptrend, marking a positive start to the week. Trading above $54,000, BTC price is just 8% away from its all-time high of $58,300.

While the leading digital currency has recovered from the losses, the market isn’t confident yet that it is all over for bears, given that it is March which has been a historically bearish month for Bitcoin’s price.

Also, 100k Bitcoin options are outstanding for the March expiry, which points to continued volatility.

As Delphi Digital says, “Beware the Ides of March,” which refers to Roman, who considered it to be a deadline for settling debts. The research firm notes how March has usually been a volatile time of year for bitcoin, which is no different this time.

Starting 2021 with its best performance since 2013, Bitcoin’s price nearly doubled in value over the first seven weeks of the calendar year. Even after the sell-off at the end of February, the crypto asset recorded its 5th consecutive month of gains.

But the price tends to struggle between mid-February and late March, just as we see a 21% correction over the last week of February, much like all the other times.

“BTC volatility tends to pick up in March, albeit from above-average levels when compared to traditional assets,” noted Delphi Digital.

Beware the Ides of March

Source: Delphi Digital

Bitcoin isn’t alone in this either, we have been seeing Ether struggling, falling under $1,300 during the sell-off, and it was on Monday that it finally went above $1,800 since that day.

However, 30% to 40% drawdowns in the crypto markets are commonplace and “do not change the current long term bull trends.”

“We have no reason to believe that the peak for BTC is behind us this cycle. Bitcoin is still outperforming every major asset class by 40-50 points YTD.”

Despite the heightened volatility, the end-of-year breakout was a strong confirmation of its uptrend. Not to mention, these past few months, Bitcoin has been “transitioning from taboo to accepted amongst institutions. This gives BTC a stronger floor in case of another violent selloff.”

Goldman Sachs Group Inc. revealed recently that it sees substantial demand for digital assets from institutions. In its survey of nearly 300 clients, 40% currently have exposure to crypto.

Besides the investment giants, insurance companies are also pouring in with more and more corporates wanting to add Bitcoin to their balance sheet. As we have been reporting, the Bitcoin fund AUM also continues to surge month over month.

And with the traditional safe haven struggling, gold and precious metal are down over 10% YTD, combined with Bitcoin getting more attention, Delphi Digital says, “we are seeing a greater divergence in fund flows between Bitcoin investment products and the world’s largest gold ETFs.”

As such, any extreme March volatility is transitory compared to the $1 trillion cryptocurrency’s longer-term uptrends, observes the firm.

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Author: AnTy

XRP Climbs to 24-Month High with Monster Green Candle; Now Everyone Wants a Piece of It

Finally!

This is what a bull market looks like… when everything explodes without reason but because it is a wild bull season.

Today, in a violent move, XRP moved and posted a giant green candle. Such a big move was last seen in mid-September 2018 when the digital asset went from about $0.26 to $0.78 before continuing its descent into the darkness.

Such giant monster candles were previously seen only during December at the peak of the 2017 bull market.

At the time, the first green candle took it from about $0.22 to $0.90, another one was seen from $0.9 to $0.245, and the last one took it to an all-time high of $3.3.

It just might be the time for the fourth-largest digital currency to make some moves.

Amidst all this also came the reports of Ripple officially adding Bank of America. It has a long history of partnership that was never confirmed but has been finally included in its official website.

Going to nearly $0.440 over the weekend, XRP recorded gains of 40% in just one day. Continuing this uptrend, XRP went up further as high as $0.554 — a last seen level in November 2018.

At the time of writing, XRP has been trading at $0.533 with $2.59 billion in volume, the fourth largest volume after BTC ($3.52 billion), ETH ($4.06 billion), and USDT ($9.45 billion).

The digital asset first started trending up on Thursday when trading was at $0.283, and in just four days, XRP price has surged more than 95%. This strong breakout means everyone wants a bite of XRP, with analyst Mati Greenspan saying,

“When I sold 1000 XRP in 2017 for $1.08 a piece, I never thought that I’d be buying back in at 52 cents in 2020.”

Altcoins have started to pop out because Bitcoin has been taking a breather around $18,000, just inches away from its all-time high of $20,000.

Besides XRP, other notable movers on the first day of the week included DXT (424%), ZEN (67%), OXT (23%), and VeChain (14%). In this month alone, the total market has added $143 billion.

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Author: AnTy

Bull Rally Restarting: DeFi Blue Chips Giddy with Massive Uptrend

Ever since this past weekend, when Bitcoin took a dive to about $14,500, the leading cryptocurrency has taken to relax around $15,000.

With Bitcoin calming down, altcoins are the ones popping. Ethereum is keeping above $445, and although top altcoins are in the green, they are not the ones leading the market.

2020 has been all about Decentralized Finance, and this time it is no different. As a matter of fact, after enjoying a rally in August and topping out in September, recording severe losses, looks like DeFi coins are back for another round.

While the likes of Maker, Loopring, HOT, Sushi, Melon Protocol, Terra, UMA, Wrapped nexus, Bancor, and Compound are up less than 5%, they made record gains in the past week, albeit of mediocre levels.

CoTrader, Balancer, Mainframe, Curve, Augur, bZx Network, and 0x are popping up nicely today, all up over 10%. This DeFi rally, however, is all about the blue chips.

But not all Blue chips are equal, and it is Aave, which is in the lead.

Currently trading at $63, Aave is up a whopping over 140% in just the last five days. It is basically a paradise for scalpers — short-term traders that execute dozens, in some cases hundreds of times, trades per day.

These gains also have heavy negative funding on Aave futures, which means shorts are paying the longs to keep the price of the perpetual swap contracts in line with the underlying asset.

These gains came soon after Aave made the transition from its LEND token to Aavenomics. Before the rebranding as LEND, Aave was pumping hard, and afterward, as AAVE, it is pumping just as hard. Quant trader Qiao Wang said,

“Aave’s token migration and ticker change from LEND to AAVE is the one of the most ingenious price discovery tactics in the history of DeFi.”

“Although the liquidity has deteriorated quite a bit. Doesn’t take a lot of money to move the market by 10%.”

Aave is currently the 5th largest project in the DeFi sector as per its $1.18 billion of total value locked in it, down from $1.67 billion on August 30, as per DeFi Pulse. Overall, the TVL has reached a new record of $12.75 billion.

“YFI & Aave volatility is a distraction to nuke your potential gains from riding out the trend instead of scalping,” noted trader Hsaka.

YFI is another project which is popping hard, about 90% this past week while trading around $17,800. Recently, YearnFinance joined hands with Hegic to introduce Options.

A very similar action can be seen in SNX, pushing for $5. This DeFi token has jumped 20% today and 85% in the last 7 days.

“The bull market is restarting,” said Wang, adding, “Largely depends on BTC/ETH of course. But I’m long, and a buyer of dips.”

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Author: AnTy

MimbleWimble Privacy Coin, GRIN, Becomes Latest Network to Be Hit With A 51% Attack

GRIN, a mimblewimble protocol-based privacy coin, had become the latest victim of a 51% attack when a group of unknown miners got control of more than 50% of the network’s hashing power.

On November 7th, the network came under attack by an unknown mining group, which was able to gain control of 57.4% of the hashing power.

A 51% attack occurs when more than 50% of the network’s hashing input is controlled by a single entity, which increases the risk of double-spending. As per on-chain data, the unknown miner group managed to reorganize one forked block at 23:17 UTC and since then increased their control on the network to 58.1% by Sunday. Currently, at 58.5%, according to Grinscan.

A tweet from 2Miners on Nov 8th revealed the 51% attack on the GRIN network, where they revealed that currently, they only have 19.1% of the hashing power of the network. The tweet read,

“Grin Network Is Under the 51% Attack! Payouts are stopped. Please mine at your own risk only because the new blocks could be rejected.”

GRIN Token Maintains Its Position in the Market

The news of the 51% attack didn’t really impact the token’s price as it remained a study showing a minimal drop of 1.4% over the past 24 hours.

The more diverse the mining input, the more secure the network, which is proven in the current case. The diverse mining input would ensure that a 51% attack would cost the miners more money than what he would gain in return. For example, the Ethereum Classic (ETC) network has the highest share of 51% attacks where the network experienced three 51% attack in August this year itself.

The miners needed $7,000 per hour to control more than 50% of the mining power; the cost is relatively low when compared to Bitcoin and Ethereum networks; however, it’s significantly higher than the GRIN network. The unknown miner group only required $25 per hour to control more than 50% of the platform’s hash input.

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Author: Hank Klinger

Risk Aversion in Effect: Losses Recorded Across Bitcoin, DeFi, Stock, & Gold Market

Bitcoin’s red hot rally came to stop on Wednesday when the price of the digital asset dropped just under $13,000. Today, the top digital currency is rebounding, currently at $13,450.

The sell-off, however, wasn’t confined to the crypto market alone and was seen in other markets as well. As a matter of fact, stock markets have been having a rough week as they continue to extend the losses.

Fueled by concerns over tougher coronavirus-related lockdowns and the upcoming US presidential election, stock markets had its worst decline in months. Since Monday, S&P 500 has fallen 5.6% and Dow Jones Industrial Average slid 6.4% with the tech-heavy Nasdaq only suffering 4.6% losses. Edward Moya, a senior market analyst at Oanda Corp said,

“This broad, risk-aversion-trading session is triggering widespread panic selling, which is seeing every risky asset, like gold and Bitcoin, really start to plummet.”

Profit Taking to be Expected

Bitcoin was inches away from hitting the 2019 high of $13,900 when the losses came but interestingly BTC is right where it was the day before the fall.

According to Bloomberg, Bitcoin’s 14-day strength index reading jumped above 70, signifying it to be overbought.

“I think that $14,000 is a very key threshold,” said Moya. “Once that level is taken out, there is going to be a lot more upside here.”

But the crypto community is not concerned about the decline, it is natural after the more than 21% rally. Also, with $14k being the big resistance before hitting an all-time high, people are seeing it as an opportunity to just buy the dips before we moon. As Mike McGlone, a strategist at Bloomberg Intelligence has been saying,

“Something unexpected has to reverse increasing adoption of Bitcoin as digital store-of-value such as gold, or the price has few options but to rise.”

In Capitulation, Still More Pain Ahead

Besides Bitcoin and the stock market, gold also went down to the $1,870 level while the US Dollar took this opportunity to strengthen above 93.5.

However, according to one trader, USD remains “macro bearish” which “in the big scheme of things this is good for BTC however we will have dips along the way.”

Altcoins also went down hard, following the leading digital currency and according to analyst DonAlt is in “capitulation.” He said,

“If this move down on all altcoins keeps going for a couple weeks and starts getting ridiculous I think we might be able to finally find some sort of medium-term bottom.”

As for DeFi, they have been experiencing correction since last month and continued their descent. Even the popular ones, YFI and Aave that looked to capitulate are making new lows. Now SNX has also joined the falling tokens where UNI continues to bleed due to its supply issuance. Quant trader Qiao Wang said,

“I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see a 80-90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”

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Author: AnTy

OpenBazaar Saved, For Now, Sizable Donation Still Needed for Next Year

Decentralized marketplace OpenBazaar was saved over the weekend from becoming a ClosedBazaar when an anonymous donor agreed to “cover the costs to run OpenBazaar infrastructure through at least the end of the year.”

But 2021 will come soon enough, so the platform wants people to donate while it works to “find ways to lower costs and decentralize more of the infrastructure.”

It first announced its shutdown on Friday unless reportedly a sizable donation of $100k is made to the platform that provides seed nodes, API wallet, and exchange rate API. The marketplace has been reportedly seeing a lack of adoption and user growth.

Some crypto community members took a jab at the employees of the project for attacking bitcoin and supporting SegWit2X – they were one of the signatories of the 2017 New York Agreement.

Call for Help

OpenBazaar launched in 2014 at a hackathon in Toronto as “Dark Market,” it allows people to buy and sell goods online in a peer-to-peer network, without a single entity to oversee or control the process.

Its app Haven will also be removed from the iOS App Store, and Google Play Store on October 1st as such, users are recommended to immediately remove funds from their wallet.

“We wanted to bring the full power of decentralized marketplaces to a global audience,” but failed to achieve the level of user growth and adoption that is required to sustain their business.

Now, to maintain support costs and execute the next phase of the protocol that they “believe can unlock explosive user adoption,” community support, aka funds are needed.

At the time of writing, OpenBazaar has received less than $15k in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Zcash combined.

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Author: AnTy

Indian Government Looks to Ban Cryptocurrency Trading With New Law

India is not new when it comes to harsh and unfriendly cryptocurrency laws. Now, Bloomberg reports that the country is set to introduce a new law which will ban cryptocurrency trading within its borders.

Citing anonymous sources, the report states that India’s federal cabinet is set to discuss the bill prior to being sent to the parliament.

The report states that the Indian government will continue encouraging and supporting the growth of blockchain technology but will discourage crypto trading.

In 2018, Indian central bank instituted a ban on all crypto transactions following numerous cases of frauds prior to the sudden decision to ban about 80% of the country’s currency by Prime Minister Narendra Modi. However, the decision was rescinded in March this year after a successful filing of a suit in the Supreme Court by various crypto-based firms operating in the country.

The lifting of the ban saw almost a 450% increase in crypto trading in just two months from March. Paxful, a Bitcoin marketplace, registered a staggering 883% growth from January to May this year representing a growth from $2.2 million to about $22.1 million in revenues. Similarly, India’s largest crypto exchange WazirX registered a growth of 400% and 270% in March and April respectively.

The renewed effort to ban crypto trading comes at a time when the Indian Parliament has reopened following a prolonged break due to COVID-19 pandemic. The bill is likely to be introduced to parliament in this monsoon session which kicked off yesterday and is set to affect over 1.7 million Indians who actively trade in digital assets as well as institutions coming up with platforms to ease crypto trading.

Today’s report appears to be in tandem with June’s news where the nation’s finance ministry was reportedly urging for inter-ministerial consultations on how to ban crypto.

In the recent past, India’s federal government has been exploring possible ways of using blockchain technology to enhance service delivery in different sectors like management of land records, enhancement of pharmaceutical drugs supply chains, management of educational certificates, among others but remains adamant against crypto trading.

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Author: Joseph Kibe

SushiSwap Creator Makes a U-Turn; Returns $14 Million Worth of Ether

In the latest turn of events, just when you think the drama is coming to an end, comes a tweet from Chef Nomi.

It was on the last weekend that the anonymous creator of DEX SushiSwap cashed out his share of the development fund; now, just before this weekend, Chef Nomi apologized to the crypto community for their greed.

The creator also returned all of their $14 million worth of Ether to the treasury and “will let the community decide how much I deserve as the original creator of SushiSwap.”

Now, Adam Cochran, a co-signer of the multi-sig, is proposing to use some of these returned funds to re-buy SUSHI token, which is trading at $2.33.

Currently, the SushiSwap community is working on bringing the policy changes they have voted for to the protocol, including reducing its token reward schedule and introducing fee staking and a lock-up period for newly minted SUSHI.

The Apologies Round

This week, the control of the Uniswap clone was handed over to FTX CEO Sam Bankman-Fried, and the subsequent successful migration of SushiSwap happened. Already it is recording $200 million in daily volume and $1.54 billion of liquidity. The community also voted for ten people as the multi-sig signers for the treasury.

Chef Nomi apologized to all the people involved in the project and “for bringing a bad reputation to the DeFi movement.” At the time of selling his SUSHI tokens, the pseudo-anonymous creator said they deserved the funds for doing all the work.

Synthetix founder is in favor of “powerful incentives” to “attract all the amazing founders languishing in Fintech building shitty TradFi overlays” in crypto, much like Chef Nomi.

But yEarn founder Andre Cronje argued that incentives should be aligned and “earning a casual $1.5m for < 2 weeks worth of work, off of cloning someone else’s work, hardly seems aligned.”

The creator also directed their apologies towards Uniswap creator Hayden Adams, of which it is a copycat.

“I hope that SushiSwap continues to evolve. Don’t let my mistake deter it from being a 100% community-run AMM. The success of SushiSwap will set a precedent for many more community-run projects,” said Chef Nomi. “It has a lot of potential, don’t let my action alone fuck it up.”

Chaos has a way of sorting itself

While those who lost their money during the SUSHI’s 80% price dump following Chef Nomi’s “exit scam” berated him still in the comments section of Twitter, some speculated this move was because he was doxxed.

Others complimented the creator for owning up to their mistakes and correcting them. Cronje said,

“Less apology, more coding. Sushiswap needs you. Get back to work and build something that leaves a legacy. You chose Sushiswap over yourself, now just keep building.”

Amidst this, popular trader Loomdart shared his two bits on the Sushi saga, saying the project is not a conspiracy because “$14m is pennies when you attribute the stress/fear that comes with “doing” what ChefNomi did.” He said,

“Crypto is chaos. chaos just has a way of managing to sort itself out when peoples incentives align.”

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Author: AnTy