Venture investor explains why Ethereum is poised to blow past its $1,450 high

Ethereum has been moving higher after flatlining in the $1,150-1,250 range over the past week.

Despite a local drop, the cryptocurrency remains up by over 12 percent in the past day and 25 percent in the past seven days, per market data from CryptoSlate.

The cryptocurrency set an all-time high, well at least it did according to some investors, who say $1,420 is the all-time high price for ETH prior to today. Whatever the case, a venture investor still expects significant growth ahead due to positive on-chain trends.

On-chain trends signal potentially strong growth for Ethereum

Spencer Noon, an investor at crypto-focused venture firm Variant and an on-chain analyst, says that there are a number of on-chain trends indicating Ethereum will “blow past its all-time high.”

These on-chain trends include but are not limited to:

  • Ethereum’s transaction fees are more than double of Bitcoin, indicating to some that it is one of the most useful, if not the most useful, crypto-asset and blockchain network.
  • The amount of value transferred on Ethereum via stablecoins, ETH itself, and other tokens is surpassing Bitcoin and is far above that of other blockchains. This is largely attributed to the strength in the DeFi space and the rise of stablecoins, of which there is now over $20 billion worth on the Ethereum network, discounting algorithmic stablecoins.
  • Ethereum has an all-time high of daily active addresses, at around 550,000 (90-day moving average).
  • There is now over $25 billion worth of capital locked in the DeFi space, which is far above the $100 million locked in the space at the start of 2018.

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  • Decentralized exchanges now process more than $30 billion worth of volume per month, which means they are starting to rival centralized platforms.

Noon thinks that these factors indicate Ethereum is primed to move past its previous all-time high.

This comes shortly after Raoul Pal, co-founder of Real Vision and a former Goldman Sachs head of hedge fund sales, said:

“By the way, ETH is up 60% in the first 14 days of the year. I think it outperforms all year but I still own much more BTC but have been adding to ETH. Next stop will be higher risk alts…. but much much smaller. More risk = smaller size.”

Disclaimer: This author is an analyst at ParaFi Capital. ParaFi Capital may hold positions in assets mentioned in this article. The views displayed in this article are opinions of the author—and the author only. 

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Wen DIGG? BadgerDAO’s Bitcoin rebasing token appears on chain

Badger DAO has been one of the most-talked-about DeFi protocols over the past few months.

The yield-farming protocol kicked off with a bang at the start of December when it distributed free BADGER tokens to thousands of DeFi users. Many sold it, though others held the airdrop.

Badger DAO, which was launched as a yield farming protocol to allow users to earn a yield on their tokenized Bitcoin, appears to be broadening its horizons, though.

The project launched with the premise that it would launch a secondary token called DIGG, which would be an Ampleforth-based token that rebases to the price of one Bitcoin. As the sub-site for DIGG reads:

“Digg’s rebase of supply is distributed on a 10 day rolling period, based on the direction Bitcoin price is moving, it can be used to hedge against a known increase or decrease in BTC price.”

After weeks of anticipation, it may finally be here.

Wen DIGG?

DIGG appears to be right around the corner.

On Sunday, Badger DAO released an extensive Twitter thread outlining this new segment of the protocol.

The thread indicated that there will be 600 DIGG airdropped from the get-go to users of the Badger DAO application. 3,400 DIGG, which is the remaining supply, will be distributed in the future through other mechanisms like liquidity mining.

Liquidity mining will take place through a new yield farming mechanism called bDIGG, pools with SushiSwap, amongst other mechanisms.

Further indicating that DIGG is right around the corner, investors noted that an address affiliated with the Badger DAO team published a smart contract creating a new token called DIGG.

Investors now think the launch is set to arrive in the coming two to three days.

What investors are also excited about is the introduction of a U.S. stablecoin that is collateralized solely by yield-bearing Bitcoin assets, such as the existing Badger DAO Vault tokens.

Should this system be implemented, users will be able to use a U.S. dollar-based stablecoin in the DeFi ecosystem but will still be able to maintain exposure to a yield-bearing derivative of Bitcoin.

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Thread calling Bitcoin a “giant smoldering Chernobyl” goes viral on Twitter

As Bitcoin’s price has grown, so has its energy consumption. To keep the network secure, miners are incentivized to run nodes, and are paid in BTC.

While there are many confused by Bitcoin mining as a concept, it is a massive industry, consuming the power of medium-sized countries such as Austria every year.

Many in the crypto space see this process as necessary. But recently, a thread calling Bitcoin a “giant smoldering Chernobyl” went semi-viral on Twitter.

Bitcoin mining bashed on Twitter

This past weekend, Stephen Diehl, a programmer, released an extensive thread discussing the environmental cost of Bitcoin.

Diehl headlined the thread by stating that he thinks the cryptocurrency is a “giant smoldering Chernobyl sitting at the heart of Silicon Valley which a lot of investors would prefer you remain quiet about.”

Diehl alleges in his thread that Bitcoin mining is effectively a waste of energy due to the fact that the BTC generated has no value and is used to launder money and buy drugs:

“Bitcoin mining is essentially a fucked up version of Candy Crush where you solve puzzles for coins, except the coins go to buy darknet fentanyl, launder money for warlords and provide gambling for hedge fund managers.”

He adds that Bitcoin does not produce any economic value:

“Unlike other economic activities, the bitcoin scheme produces absolutely nothing for all this waste. It is a pure speculative activity of people gambling on the random movements of prices and the only output is simply shuffling numbers around in a computer at insane cost.”

Beyond that, he added that Bitcoin remains a “pyramid-shaped investment scheme” that requires “greater fool” investors for the investment to actually succeed.

His thread garnered over 8,000 likes and 4,500 retweets, with many seemingly agreeing with his statements. Of note, Diehl disabled replies on his thread.

Many in the Bitcoin community have rebutted his comments, including early Bitcoin writer Kyle Torpey, who used Diehl’s thread as a framework for a similar critique of the U.S. dollar.

Square supports clean Bitcoin mining

It’s not like moves are not being made to amend the potentially harmful effects of Bitcoin mining.

Square, which runs the Bitcoin-friendly Cash App, announced in December that it will be investing money in the crypto mining space to achieve renewable usage:

“Square, Inc. (NYSE: SQ) announced today its plans to become net zero carbon for operations by 2030, including its primary Scope 3 emissions. Square also announced the launch of its Bitcoin Clean Energy Investment Initiative, where it has committed $10 million to support companies that help drive adoption and efficiency of renewables within the bitcoin ecosystem.”

There are also moves by other entities to capture unused renewable energy for BTC and other crypto-asset mining.

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Analyst on why Bitcoin and crypto may be in the midst of a “mini bear market”

If you look at Twitter, it may appear that the crypto market is anything but bearish.

Friday and Saturday were marked by extremely strong rallies in the prices of altcoins, despite consolidation in the two leading cryptocurrencies.

Many small caps, medium caps, and even large-cap altcoins enjoyed gains of 10-50 percent yesterday, resulting in a sharp decline in the Bitcoin dominance to 65 percent as of this article’s writing. Earlier this week, the metric was as high as 68.5 percent.

But this price action hasn’t convinced all analysts that Bitcoin, Ethereum, and the rest of the market are ready to move higher.

Bitcoin is in a bear market?

Qiao Wang, a crypto-asset investor formerly of Messari and Tower Research, recently postulated that Bitcoin and the crypto market may not be in a full-blown bull market as some have speculated.

He shared on Jan. 15 that he thinks we may be in a “mini bear market” due to the vast amount of speculators, which is evidenced by the funding rates of crypto futures markets:

“IMO we are in a mini-bear market. Not enough conviction to short, and certainly think we’ll be a lot higher 6-12 months from now. Want to see speculators go away and spot buyers step up as invalidation. No clue yet how low we’ll go, but 20k-25k would hurt both bulls and bears.”

For some brief context, the funding rate is the reoccurring fee that long positions pay short positions to keep the price of a futures market to the price of a spot market. High funding rates often indicate that there are a large amount of leveraged buyers that are speculating on an asset appreciating in a short time frame.

Wang added that there is a lot of fragilities in the market right now that leaves it vulnerable to a potential correction:

“I’m still long some high quality DeFi, which I think we’ll do very well if my BTC thesis is wrong. Either way there’s a lot of fragility in the system. Not the time to be a hero.”

His sentiment is similar to that shared by Guggeinheim’s Scott Minerd, who said in a recent interview with Bloomberg that Bitcoin is likely in the midst of a  short-term “speculative frenzy” or mania.

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Curve (CRV) erupts 50% higher in a day amid renewed DeFi interest

The majority of decentralized finance (DeFi) coins have seen extremely strong rallies since the start of 2021.

Analysis by crypto-asset analyst Ceteris Paribus found that since the start of the year, like literally two weeks ago, the average DeFi large-cap has seen 75 percent gains. This includes coins such as Aave (AAVE), Compound (COMP), SushiSwap (SUSHI), and more.

One crypto-asset has largely been kept out of this rally, though: Curve DAO Token (CRV).

The native token of the Curve decentralized exchange was, at least before this week, still barely above its late-2020 lows. The narrative was that because there were yield farmers actively farming and dumping CRV, the cryptocurrency would remain suppressed for an extended period of time.

But this past week, CRV has begun to surge.

Curve (CRV) surges higher

According to CryptoSlate market data, CRV has ripped in excess of 125 percent higher in the past seven days, as can be seen in the chart below.

In the past day alone, Curve’s native Ethereum-based token has enjoyed a 50 percent rally. This makes it easily the top-performing crypto-asset in the top 100 by market capitalization.

Chart of CRV’s price action over the past 10 days from TradingView.com

CRV has surged to a $300 million circulating market capitalization and a $6 billion fully-diluted market capitalization.

This rally for CRV comes amid a number of fundamental trends:

  • Curve has been releasing a number of new trading pairs to account for more esoteric assets that need markets. For instance, users can now trade stETH, Lido’s token represented Ethereum staked on ETH2, for ETH via Curve. The cryptocurrency was previously illiquid. Other markets include a swap market for Aave’s interest-bearing assets.
  • Curve just rolled out a collaboration with Yearn.finance that will allow any user to deploy trading pools for more esoteric and long-tail assets to allow for more utility in DeFi.
  • Trading volumes on the decentralized exchange have shot higher due to the introduction of new pools and as investors look to more easily trade between assets.

CRV’s move higher has meant that yield farmers have been able to earn more on the platform. As a result, there is now $2.15 billion worth of capital locked in Curve, far above where it was just months ago.

CRV’s rally underscores the ongoing repricing or re-rating taking place in the DeFi space.

As investor George Harrap noted, CRV joins 1INCH and SUSHI as top decentralized finance-focused assets that have doubled in the past week.

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Wall Street investor advises more investors to put a few percent into Bitcoin

A large narrative over the past few months is the introduction of institutional capital to the Bitcoin space.

It began in 2020 with Paul Tudor Jones, a billionaire Wall Street investor who put a few percent of his fund into BTC futures. He did this in preparation for the May halving, writing that Bitcoin’s scarcity will make it the “fastest horse in the race” in a world where there is rampant inflation.

Jones’ peers on Wall Street followed suit.

Many macro investors, who are known for making asymmetric bets like BTC and crypto is, have since bit the Bitcoin pill. Family offices, too, are starting to making allocations to Bitcoin as they look to diversify out of overvalued assets.

Yet not all of Wall Street is in on Bitcoin.

Case in point: Fidelity Investments alone has more than $3 trillion in assets under management, which is three times the market capitalization of the cryptocurrency space.

Guggenheim Investments CIO Scott Minerd, who recently caught the Bitcoin bug, said in a recent interview that more investors should allocate a small amount of their portfolio to this space.

Bitcoin should be bought by most investors

Speaking to Bloomberg in an interview published Friday, Minerd commented that most if not all investors should have a few percent of their portfolio in Bitcoin. He said:

“2% of your portfolio will be 20% of your portfolio before this is over. So, you don’t want to get too overweight, but certainly an allocation of a couple % of your portfolio seems to be a prudent play.”

The comment basically implies that BTC could appreciate 1,000 percent in the coming years to bolster small allocations to Bitcoin to larger ones.

This is similar to comments made by investors such as Tudor Jones. They say that having Bitcoin in your portfolio is a rational bet due to the extreme overpricing in other asset classes and the vast amount of inflation taking place in the economy and in financial markets.

Minerd caveated his interview, though, by stating that he thinks Bitcoin is currently in a short-term “speculative frenzy” or mania.

He specifically pointed to the fact that crypto exchanges such as Coinbase and others are being overloaded to the point where they seriously cannot operate and have had to limit some demand.

Bitcoin may not have topped yet, though. As reported by CryptoSlate previously, the cryptocurrency held a key technical support level during Monday’s correction.

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The future of finance: Synthetix just launched staking on Optimistic Ethereum

Congestion has been a theme for Ethereum over the past few months. Not to say that this is an explicitly bad thing but during times of volatility, it can cost over $50 to trade on Uniswap, and even more to complete more complex (and often pertinent) Ethereum transactions.

This comes in spite of the fact that if you think about it, Ethereum has yet to go mainstream.

Many investors have been asking how this can be solved, especially as ETH increases in value and as more users attempt to transact on Ethereum each day.

Synthetix has a solution or at least a preliminary one.

Synthetix and Optimistic Ethereum scaling solution

On Friday afternoon, Synthetix rolled out a scaling solution for its protocol in collaboration with Optimistic Ethereum.

Now, users can migrate SNX to Optimistic Ethereum, a second-layer scaling solution that uses a technology called Rollups to increase transaction speeds and reduce transaction costs.

It’s worth noting that not all of Synthetix is currently on this layer-two solution. As the team wrote in the blog post announcing this move:

“The migration process to OΞ has been designed to protect the core functionality of Synthetix, with multiple phases over several months to ensure the protocol is sufficiently robust by the time both staking and Synth exchanges are both fully live on L2.”

Right now, only staking is available and it’s a one-way bridge for SNX.

In the coming months, this support will be expanded to include the trading of sUSD into other Synthetix assets, support for Chainlink oracles, and eventually, a two-way bridge for SNX, amongst other characteristics native to Ethereum’s iteration of Synthetix.

Optimism, the team behind Optimistic Ethereum, simultaneously released its own blog highlighting its goals with the rollout.

The blog post had the image seen below as its cover, showing a pig with a unicorn’s horn. Many see this as a sign that Optimistic Ethereum will be working further with Uniswap, which by far one of the hardest platforms to use by smaller holders when the Ethereum network is congested.

A magical pig walking into the dark forest, protected by a rainbow horn.

ETH2?

While Optimistic Ethereum is now live, work continues on ETH2, a longer-term scaling solution that will effectively adopt the speed of layer-two scaling solutions without having the sacrifices that solutions such as Optimistic Ethereum have.

ETH2 staking appears to be working just fine, with over $2.5 billion worth of the cryptocurrency currently deposited on the chain.

This should be followed up by the integration of ETH transfers and eventually the introduction of smart contracts in the years ahead.

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Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop

Bitcoin faced a strong drop into Friday. The cryptocurrency, after peaking at $40,000, fell as low as $34,000 in a flash drop on Friday morning.

The drop was odd because the cryptocurrency was strongly underperforming altcoins. Normally, during Bitcoin corrections, altcoins fall against the U.S. dollar and against BTC, though this was not the case.

Bitcoin has since bounced back toward $36,500 since the daily lows.

An analyst is expecting some form of consolidation in the days ahead, which may result in strength in the altcoin market.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Bitcoin Could Enter Consolidation, Analyst Predicts

One crypto-asset analyst recently suggested that Bitcoin has a good likelihood of consolidating in the short term, which could end up resulting in an altcoin rally.

He shared the chart below on Friday, showing Bitcoin’s potential outlook ahead of the weekend. The chart shows that BTC is currently rubbing up against a key support level and against a number of key moving averages. This formation led him to suggest that the cryptocurrency will end up consolidating throughout the weekend.

As the trader explained:

“Here’s the possible outcome short term (12-24h) for #Bitcoin. 1) Consolidates while $ETH / $BTC is strong, 2) $ETH / $USDT takes the lead, 3) Slay altcoins over the weekend, 4) Pay yourself by Sunday 6pm, 5) Let Monday unfold.”

When Bitcoin consolidates in a bullish manner, it is argued that that is a prime time for altcoins to break out.

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Chart of BTC's price action over the past few weeks with an analysis by crypto trader and chartiist Pierre (@Pierre_Crypt0 on Twitter).
Source: BTCUSD from TradingView.com
Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Altcoin Rally Begins

What the analyst predicted appears to be playing out in real time.

As of this article’s writing, leading altcoins are starting to break higher in a serious fashion, largely leaving Bitcoin in the dust. The BTC dominance metric has dropped from 67.5% to 66.5% over the past day, which is notable in a market worth over $1 trillion.

Altcoins such as Curve DAO Token (CRV), Aave (AAVE), Chainlink (LINK), and many more are surging higher as Bitcoin enters some form of consolidation.

This trend is likely to continue as long as BTC respects key support levels in the near term.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: BTCUSD, XBTUSD, BTCUSDT, ETHUSD, ETHBTC, ETHUSDT
Why This Analyst Expects Bitcoin Price Consolidation After the Recent 15% Drop

These cryptocurrencies are up over 10% today despite Ethereum’s sharp 8% drop

Both Bitcoin and Ethereum have faced sharp declines over the past few hours despite the move to $40,000 on Thursday.

BTC is down 10 percent in the past 24 hours while ETH has lost around eight percent over that same time frame.

This drop comes amid two events:

  • Developments indicate that Mt. Gox’s liquidators are close to distributing bitcoin to creditors.
  • Today is the day on which there are expected to be developments regarding Tether and the New York Attorney General.

Some cryptocurrencies are up over 10 percent in the past 24 hours despite the drop in the price of Bitcoin and Ethereum. Here are some of them.

SushiSwap

SushiSwap (SUSHI) is up fifteen percent in the past 24 hours, pushing to multi-month highs at $6.30 as of this article’s writing.

SUSHI is surging as the SushiSwap platform’s volumes have shot to new all-time highs, meaning that SUSHI stakers have been earning increased dividends.

SushiSwap is also expected to soon roll out a new product called BentoBox Lending, which will allow for an increase in fees that accrue to SUSHI holders. BentoBox Lending will be a money market for long-tail assets supported by SushiSwap, which will allow for margin trading of other assets, along with other use cases.

Cosmos

Cosmos’ ATOM token is one of the best-performing crypto-assets in the top 100 in the past 24 hours.

The cryptocurrency is up 17 percent in the past day as a narrative continues to develop over layer-one blockchains or networks aside from Ethereum, which has faced congestion issues over the past few weeks.

Polkadot

Similarly, Polkadot (DOT) has surged around eight percent in the past day.

DOT recently became the fourth-largest cryptocurrency, surpassing XRP after the latter cryptocurrency’s collapse after an SEC probe began.

DOT is seemingly appreciating ahead of the launch of its Parachains, which are a technology that will allow for the development of smart applications on the Polkadot network.

Voyager Token

Voyager Token, the native token of the Voyager exchange, is up 23 percent in the past 24 hours.

Voyager today announced that it will be raising $25 million via the Canadian Securities Exchange:

“Voyager Digital Ltd is pleased to announce that it has entered into an agreement with Stifel GMP to act as Agent pursuant to which it shall act as Agent in connection with a proposed best efforts overnight marketed offering of common shares of the Company (the “Shares”) for aggregate gross proceeds to the Company of approximately US$25,000,000 at a price determined in the context of market (the “Offering”).”

The company also recently announced that it manages $500 million worth of cryptocurrency for its customers.

The post These cryptocurrencies are up over 10% today despite Ethereum’s sharp 8% drop appeared first on CryptoSlate.

Singapore trading desk explains what is driving the ongoing Bitcoin bull market

Bitcoin has undergone an extremely strong rally over recent months, despite the ongoing drop.

The cryptocurrency, which trades for $36,000, is up around 100 percent in the past six weeks, and even more over the past six months. Other cryptocurrencies aside from BTC have also done well.

Chart of BTC’s price action over the past six weeks from TradingView.com

But what is behind the ongoing bull market? A Singapore-based trading desk suggests that the Bitcoin rally is largely a byproduct of institutional inflows entering the Bitcoin market via Grayscale. Grayscale Investments is a digital asset manager focused on institutions based in New York.

What’s driven Bitcoin higher?

Prop trading company and liquidity provider QCP Capital commented on Friday morning that Bitcoin’s recent rally has largely been a byproduct of Grayscale’s Bitcoin Trust, an institutional investment product for BTC.

Bitcoin began to show signs of weakness (spot buying pressure shifting to futures buying pressure) when Grayscale temporarily suspended inflows at the end of December.

The sell-off peaked early this week when the fund suspension came to an end, QCP explained:

“Previously we highlighted GBTC as too big to fail in our new year update, and the sell-off on Monday/Tuesday peaked at the end of their 2-week fund suspension to new investors. On Wednesday they reopened again and this stemmed the selloff, as ~5k of BTC was added to their fund in just the 2 days since.”

The firm believes that this is a sign that Grayscale’s inflows are actually a large amount of the demand for Bitcoin on the spot side:

“No doubt GBTC flows will remain the driving force for the market, at least until a US ETF is approved – something which we don’t yet foresee anytime soon.”

On the technical outlook for BTC, they seem to be certain that the overall macro trend remains bullish for the leading crypto asset.

Bitcoin held its parabolic uptrend this past week despite falling as low as $30,000, traders say.

They added that while the increased volatility has begun to be a worrying sign, it is thus far “perfectly consistent with an exponential trend at this stage.”

Earlier this past week, analysts noted that the extremely high volume seen in the Bitcoin market on Monday’s $30,000 correction was likely a sign that a reversal was near.

Volume spikes are often indicative of price reversals, as they mark an exhaustion of either a bull trend or a bear trend.

One reason that some are concerned is that there has been development in the Mt. Gox case that may result in an influx in the supply of Bitcoin to the market.

The post Singapore trading desk explains what is driving the ongoing Bitcoin bull market appeared first on CryptoSlate.

A $400m Ethereum address known as “0xb1” is doing a giveaway to boost DeFi

If you’ve been following DeFi on Twitter over the past few months, you likely know of the address with the prefix “0xb1.”

I’ve tweeted about the address a fair bit. To recap: 0xb1 is the largest yield farming Ethereum address, with around $400 million worth of net worth circulating around in the DeFi space’s top yield farms and protocols through dozens of transactions a day. (A fun fact is the address has spent over $150,000 worth of Ethereum in transaction fees.

What makes the address especially interesting is that the address literally has a Twitter address, whose name is the address. The Twitter account is verified to be the same group that runs the address.

0xb1 recently announced that they are going to be giving away some of their DeFi assets to boost the space.

The DeFi giveaway

On Jan. 13, 0xb1, who describes themselves as “champions of the people of DeFi,” announced that they will be “commemorating the true year of #DeFi, the year of the Ox, and the year of #0x_b1.”

To commemorate the year of DeFi, as they explain, they will be giving away some of their holdings to a number of protocols:

  • 50 percent of their BadgerDAO DIGG airdrop, expected to have a value of a few hundred thousand dollars, to developers of the BadgerDAO protocol. They are donating the funds to three specific developers.
  • 500 YF Link (YFL) to YF Link’s automated market maker, LInkSwap, for further liquidity mining incentives.
  • 5,000 Yaxis (YAX) to the project’s Metavault Strategies Hackathon to boost yields for users.
  • $150,000 prize for a “Commemorative NFT” celebrating the 0xb1 address and their involvement in a number of crypto-asset projects.

Many celebrated the collaborative effort, with the thread garnering over 600 likes and retweets from innovators such as Andre Cronje of Yearn.finance and Ameer Rosic, advisor of Badger DAO.

A yield farming beast

Aside from giveaways, 0xb1 is a yield farming beast.

More than 99% of their capital is active in yield farms. For instance, the address has $150 million worth of ETH and WBTC collateral deposited in Compound, which is being used to borrow $80 million worth of stablecoins.

The address generates around $200,000 to $400,000 a day in yield alone across the protocols that it has deposits in, meaning that as an address, it generates many dozens of millions of dollars in yield each year.

The post A $400m Ethereum address known as “0xb1” is doing a giveaway to boost DeFi appeared first on CryptoSlate.

DeFi project CREAM surges as Yearn.finance (YFI) announces integration

Decentralized finance project Cream has been the subject of much attention in the past few weeks. Its native token, fittingly named CREAM, is up 40 percent in the past 24 hours alone.

Cream is a money market project forked from Compound. The project garnered traction during DeFi summer after it released a yield farming system for its native token CREAM. It quickly became subject to some backlash, though, as there were investors that were criticizing the project’s addition of questionable cryptocurrencies.

The project has since been absorbed into the Yearn.finance (YFI) ecosystem, which has given it renewed buying pressure and renewed development activity.

Cream Introduces the Iron Bank

Cream has been in somewhat of a lull since the summer. The protocol’s total locked value dropped after CREAM incentives ended to some extent and as the fears spread about the project’s involvement of questionable cryptocurrencies.

Yet this is changing as Cream developers have introduced a new product called The Iron Bank.

According to a blog post announcing this new update, The Iron Bank is a segment of the Cream protocol that will basically lend capital to protocols on a whitelist basis. What makes this different than normal lending protocols is that loans can be taken without directly putting up capital, allowing for more capital efficiency.

“As protocols replace enterprises, the new face of corporate credit will be protocol-to-protocol lending, which could one day far oustrip DeFi peer-to-peer lending just as corporate lending markets far surpass peer-to-peer markets. This is why we launched the Iron Bank: we believe protocol-to-protocol lending will one day be a multi-trillion dollar market.”

Cream is currently working with Yearn.finance’s Vault system to use The Iron Bank to boost yields and the overall user experience.

The Iron Bank will allow Yearn to “develop leveraged yield-farming strategies and cross-asset strategies.”

According to Andre Cronje, the founder of Yearn.finance, and the Cream team, this system will allow for up to “90x leverage on stablecoins or 80x leverage on ETH to farm SUSHI, CRV, ALPHA.”

Cream will also be working with Alpha Homora, a DeFi lending tool by Alpha Finance Lab that allows users to obtain leverage on their Uniswap and SushiSwap liquidity provider positions.

DeFi analysts say that this development is extremely positive for the cryptocurrency, as it will drive more value to CREAM holders and to the overall Cream and Yearn ecosystem.

“DeFi Ted” commented on the news:

“Iron Bank will position itself outside of $CREAM V1 which is the retail focused, long tailed assets that the platform is known for. This is institutional grade credit. Exactly that credit. Which comes at a premium.”

Per CryptoSlate market data, CREAM is up 40 percent in the past day due to this news as investors have embraced the news.

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Bitcoin Just Passed $40,000: Here’s What Investors Are Saying

Bitcoin just passed $40,000 after falling to $30,000 earlier this week. The cryptocurrency rocketed past this key support level in a rally on Thursday morning, eclipsing short-term price targets by many analysts.

Bitcoin is up over 14% in the past 24 hours, having bottomed at $30,000 earlier this week to rebound to $33,000, then now to $40,000.

The cryptocurrency is outperforming altcoins from the lows as capital once again focuses on BTC.

The rally in the BTC price comes after Grayscale Investments, the New York-based digital asset fund manager for institutional players, has reopened its institutional trusts for the crypto markets. Many believe that this has resulted in fresh inflows into the Bitcoin market, hence the ongoing recovery.

Related Reading: Wall Street Veteran Kickstarts Own BTC Fund With $25m Investment

Bitcoin Not Out of the Woods Just Yet?

Analysts say that Bitcoin could face a correction from here. The trader that predicted 2018’s Bitcoin bottom price to 1.5% accuracy nearly six months in advance recently told his followers that the ongoing rally seems corrective:

“ok, im out of #btc longs here now aswell, this move up feels corrective, whether it be part of a larger consolidation or a B wave up before another nuke down to 28k im not sure, but im happy to take profit here and watch from the sides for a little while.”

Analysts are overall confident, though, that the macro trend remains bullish for Bitcoin.

Related Reading: 3 BTC On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: xbtusd, btcusd, btcusdt
Bitcoin Just Passed $40,000: Here's What Investors Are Saying

On-chain data: Institutional players likely bought Bitcoin’s weekend dip to $30k

Bitcoin faced a strong dip last weekend and early this week. The cryptocurrency fell from the $42,000 highs set late last week to lows at $30,000 on some spot exchanges.

During the move lower, there was a large ejection of leveraged traders. As CryptoSlate reported previously, in excess of $2.8 billion worth of cryptocurrency market futures positions were liquidated. This was the biggest liquidation event for the Bitcoin market since the Mar. 13 “Black Thursday” blowup of 2020.

Bitcoin has since recovered to $35,000 as of this article’s writing, per CryptoSlate market data.

The market may have bottomed, according to analysts looking at on-chain and overall exchange trends.

Institutions bought the Bitcoin dip, says CryptoQuant CEO

According to Ki Young Ju of CryptoQuant, a crypto analytics startup, there were many institutional players that bought the Bitcoin dip when it dropped into the $30,000 range.

Commenting on on-chain trends that indicate that Coinbase, an exchange often used by institutional players and over-the-counter desks, has seen strong Bitcoin outflows, he wrote:

“There are many institutional investors who bought $BTC at the 30-32k level. The Coinbase outflow on Jan 2nd was a three-year high.”

He suggested that this means that there are institutional players ready to buy any dip into the $30,000 region, which is where there is technical and on-chain support for Bitcoin:

“Speculative guess, but if these guys are behind this bull-run, they’ll protect the 30k level. Even if we have a dip, it wouldn’t go down below 28k.”

There also appears to be an exchange data-based case that the Bitcoin price bottom is in.

A trader commented that Bitcoin’s correction this past week was marked by extremely high volume across all trading platforms.

In fact, per his data, the drop actually marked the highest amount of Bitcoin traded in history. Extremely high volume spikes are historically indicative of a reversal point for the cryptocurrency markets.

Bitcoin market reversal points that were marked by extremely high or even all-time high volumes include the “Black Thursday” crash, the $20,000 all-time high, and the peak since in 2019 at around $14,000.

To coincide with this positive expectation of a reversal, Grayscale Investments, the Wall Street digital asset manager, just reopened deposits for accredited investors into its Bitcoin, Ethereum, and altcoin Trusts. These Trusts were closed throughout the past few weeks, which many say is what contributed to the sometimes uneasy price action in these markets.

The reopening of deposits is likely to drive further capital into crypto.

The post On-chain data: Institutional players likely bought Bitcoin’s weekend dip to $30k appeared first on CryptoSlate.

Yearn.finance Founder Andre Cronje Drops Hints About v2 Vaults

Yearn.finance (YFI), a leading decentralized finance protocol, has been hyping up the launch of its v2 Vaults.

While Yearn.finance is an umbrella DeFi ecosystem, it is currently best known for its Vaults product. Vaults are contracts where users can deposit cryptocurrencies such as Ethereum, USDC, YFI, and others to earn a regular yield paid in the coin they deposit. Vaults allow holders of cryptocurrency to earn passive income on their holdings. The v2 iteration of these Vaults are expected to boost returns, and as a result, drive more capital to YFI holders and more value to the overall Yearn ecosystem.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

YFI Could Soon See New Vaults

Yearn.finance’s (YFI) v2 Vaults have long been rumored. Details about them have been somewhat scarce but they are expected to drive more yields to Vault depositors through more advanced smart contracts and more moving parts to increase capital efficiency.

Project founder Andre Cronje recently shared the tweet below, seemingly showing the potential yields for new v2 Vault strategies.

As can be seen, the yields offered are much higher than those seen in traditional finance, along with a fair bit higher than those seen on most DeFi applications.

For instance, the USDC v2 Vault reports having a 55.7% APY, which is a few orders of magnitude above what is offered in traditional finance today.

Yields are expected to boost YFI’s value proposition as it will drive more capital into these Vaults, which will increase the dividends that YFI stakers earn.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Cross-Protocol Integrations

The yields offered on Yearn.finance Vaults (and the dividends accrued to YFI by extension) will likely be boosted by cross-protocol integrations.

Cronje commented last week on these integrations:

“With Cream v2 (Iron Bank), Alpha Homora v2, and Yearn v2, all vaults become leveraged vaults, and cross asset strategies become viable. Deposit 1k DAI can deposit 1k DAI and 1k USDC into Alpha Curve or 1k DAI and 1 ETH into Alpha Sushiswap borrowed indirectly via Iron Bank. These cross platform strategies allow up to 90x leverage on stable coins and 80x leverage on ETH and allows users to either sell and compound or accumulate the asset. As more collateral is introduced into Iron Bank and Alpha v2 yield becomes agnostic.”

YFI is up a few percent on the recent announcements and tweets.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price Tags: YFIUSD, YFIBTC
Yearn.finance Founder Andre Cronje Drops Hints About v2 Vaults

DeFi coin THORChain (RUNE) surges 30% following SushiSwap listing

THORChain (RUNE) is surging higher today after the cryptocurrency joined hands with SushiSwap.

THORChain is a cross-chain liquidity protocol that allows investors to trade cryptocurrencies across chains. RUNE is the protocol’s native token.

RUNE surges after SushiSwap listing

RUNE has surged 35 percent in the past 24 hours in spite of the fact that Bitcoin and Ethereum remain in consolidation. The cryptocurrency currently changes hands for $1.81 on Binance, though has traded higher on other venues due to a lack of arbitrage.

The cryptocurrency is up 15 percent in the past week and over 75 percent in the 30 days, per CryptoSlate market data. 

Chart of THOR’s price action over the past 36 hours from TradingView.com

This rally comes after THORChain listed an Ethereum-based version of RUNE on SushiSwap to “make inroads into the Ethereum Defi community.” This system will allow THORChain to build liquidity, a community, and other networks within the Ethereum blockchain prior to the launch of the Ethereum Bifrost system.

“ETH.RUNE is a transitionary asset to grow liquidity ahead of the launch of THOR.RUNE and the Ethereum Bifröst.”

The price of RUNE on SushiSwap has surged past $2.30 as a result of a lack of a two-way bridge to arbitrage the price differences. A bridge will be announced shortly:

“Sushiswap pools will be incentivised from next week to grow liquidity. A two-way bridge between BNB.RUNE and ETH.RUNE will be launched within 72hours to help arbitrage and move the supply.”

The volume of RUNE is surging with this news, reaching all-time highs per data source CoinGecko.

DeFi recovery

RUNE’s rally underscores the ongoing decentralized finance recovery in spite of the fact that Ethereum is around 20 percent below its recent highs of $1,350.

The decentralized finance market is outperforming today despite further consolidation in the top players.

According to CryptoSlate market data, coins such as Compound (COMP), Ren Network (REN), Aave (AAVE), Uniswap (UNI), and many others are up 5-10 percent in the past 24 hours.

This rally comes shortly after Brian Brooks, the acting Comptroller of the Currency, said that banking is being driven forward by DeFi, in a similar manner to how autonomous tech is driving forward transportation:

“Other DeFi projects include decentralised exchanges that allow users to trade without brokers, and protocols for lending that do not involve loan officers or credit committees. Although these ‘self-driving banks’ are new, they are not small. They are likely to be mainstream before self-driving cars start to fly.”

Many think that this comment from the top Treasury official is a long-term validation of this space.

The post DeFi coin THORChain (RUNE) surges 30% following SushiSwap listing appeared first on CryptoSlate.

Bitcoin Just Passed $37k—and Analysts Say the Bottom May Be In

Bitcoin has undergone an extreme rally over the past day, surging from the $33,000 region past $37,000 as of this article’s writing. The cryptocurrency now sits above $37,000 for the first time since the weekend and is up 10% in the past day’s trading session.

The cryptocurrency is outperforming altcoins in this move higher. While Bitcoin has gained 10% in the past day’s trading session, altcoins such as Ethereum and XRP are only up 3-5%.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

The Bitcoin Bottom Is In? 

Analysts think that the Bitcoin price bottom may be in after the correction to $30,000 earlier this week, which caught many traders off guard.

Ki Young Ju, the chief executive of CryptoQuant, commented that there was a large amount of buying pressure on spot exchanges at the $30,000-32,000 range. This is evidenced by the fact that there was a large amount of capital outflows from centralized exchanges on the date of the drop, suggesting accumulation by large players:

“There are many institutional investors who bought $BTC at the 30-32k level. The Coinbase outflow on Jan 2nd was a three-year high.”

Ki Young Ju suggests that if these “guys are behind this bull run, they’ll protect the $30,000 level.”

Another reason why analysts think that the Bitcoin price has bottomed is due to the extremely high amount of liquidations seen on Sunday and Monday.

More than $2.5 billion worth of crypto-asset futures positions were wiped out on that day due to the massive volatility downward. Many think that this spike in liquidations, which corresponded with a spike in volume, is a likely sign that Bitcoin and the rest of the crypto-asset market are at a turning point.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price Tags: xbtusd, btcusd, btcusdt
Bitcoin Passes $37,000 Amid Massive Recovery Rally

Ethereum Just Hit a Key Support Level: Here’s the Next Level to Watch

Ethereum has faced a strong correction after peaking near $1,350 last week. The cryptocurrency currently trades for $1,050, though fell as low as $950 on Monday due to an influx of selling pressure.

During the drop, the funding rates of the ETH futures markets were extremely overleveraged. In some cases, there were long positions holders paying in excess of 0.15% every eight hours to keep their positions open. This extremely high funding rate in the Ethereum futures market indicated that buyers were overleveraged.

The cryptocurrency has since bounced, returning to $1,050, though moved as high as $1,130 on Tuesday.

Here’s what analysts think comes next for Ethereum after this volatility.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Ethereum Must Hold $700

Crypto-asset analyst Michael Van De Poppe says that Ethereum has touched a level of key interest during the recent correction, holding $900. While the cryptocurrency remains above that support level, Van De Poppe says that all eyes should be on $700, which is where Ethereum could catch a bid next after the crushing correction:

“#Ethereum has hit the first level of interest here around $900. It’s looking for a new higher low after this higher high, which is natural. Also eyes on the $700 region. If that correction is over, $ETH is ready for $2,000+.”

If Ethereum manages to hold these key levels, he explained, the cryptocurrency is likely to rocket to new all-time highs past $2,000.

Ethereum’s previous all-time high is $1,450, set in early January 2018 after the Bitcoin correction seen into the end of 2017

Image

Chart of ETH's price action over the past few years with an analysis by crypto trader Michael Van de Poppe (@CryptoMichNL on Twitter). Source: ETHUSD from TradingView.com
Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Macro Trend Still Bullish

Despite short-term trends, other analysts also remain bullish on Ethereum from a macro standpoint.

One trader noted that the cryptocurrency is reaching a key level of support from a medium to long-term perspective and thus will likely maintain its uptrend:

“Macro structure is looking good and nice recovery so far from this key support region. Now its time to see if this level of previously support will now be flipped into resistance. Pretty vital here that both pairings move higher on LTF.”

There are expectations that Ethereum catches a bid in the days ahead due to the vast amount of retail interest in the cryptocurrency.

Just yesterday, it was noted by analysts on Twitter that the search interest in the search term “Ethereum” has hit a new all-time high. Simultaneously, a PayPal-affiliated exchange has seen an influx in demand for the second-largest cryptocurrency.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Chart from TradingView.com
Price Tags: ethusd, ethbtc
Ethereum Just Hit a Key Support Level: Here's the Next Level to Watch

What is Avalanche (AVAX) and why is it up 125% this past week?

Both Bitcoin and Ethereum have seen large retracements since their recent highs of $42,000 and $1,350, respectively. BTC currently trades for $35,000 while ETH has settled in the $1,075 range.

Some cryptocurrencies have been largely unfazed by this drop, though.

One such coin is Avalanche (AVAX). The cryptocurrency has gained 130 percent in the past seven days per CryptoSlate data and is one of the top-performing crypto assets of the past 24 hours.

Chart of AVAX’s price action over the past week from TradingView.com

While the cryptocurrency is outpacing many other digital assets, not many may know what Avalanche is.

What is Avalanche?

Avalanche is a decentralized application network that operates similarly to Polkadot. The technology allows developers to deploy blockchains that fit certain needs and that can interoperate with other blockchains to create a comprehensive ecosystem.

Ava Labs, which is the main developer behind the protocol, is backed by Andreessen Horowitz (a16z), Initialized Capital, Polychain Capital, amongst other investment firms.

The project was founded in part by Emin Gun Sirer, an on-leave Cornell University professor that has long followed Bitcoin and the rest of the crypto-asset space.

AVAX is the network’s native token. AVAX is used to pay for transactions on the Avalanche network. It has a hard-cap and is a scarce asset as it is burned when used.

AVAX may be benefiting from the ongoing Ethereum network congestion, which has disallowed many users from using the network. In fact, billionaire investor Mark Cuban said today that he thinks Aave and other DeFi platforms are hard to use due to the high gas fees.

Coins of Ethereum alternatives and scaling networks, such as Polkadot (DOT) and Loopring (LRC), have surged over the past week alongside AVAX, discounting the crypto market correction.

DeFi on Avalanche

While Avalanche is a multi-purpose blockchain, it appears that decentralized finance is and will be a focus for developers.

Developers announced a Uniswap-based automated market maker for Avalanche in December:

“Pangolin is a decentralized exchange (DEX) which runs on Avalanche, uses the same automated market-making (AMM) model as Uniswap… In a crowded marketplace with multiple contenders, Pangolin offers three critically important benefits: fast and cheap trades, community-driven development, and a fair and open token distribution.”

This announcement was shared by the Avalanche team and Emin Gun Sirer.

Other projects that are launching DeFi-focused applications on Avalanche include Reef Finance, which is a liquidity aggregator protocol and a DeFi investment platform.

The post What is Avalanche (AVAX) and why is it up 125% this past week? appeared first on CryptoSlate.

What is Avalanche (AVAX) and why is it up 125% this past week?

Both Bitcoin and Ethereum have seen large retracements since their recent highs of $42,000 and $1,350, respectively. BTC currently trades for $35,000 while ETH has settled in the $1,075 range.

Some cryptocurrencies have been largely unfazed by this drop, though.

One such coin is Avalanche (AVAX). The cryptocurrency has gained 130 percent in the past seven days per CryptoSlate data and is one of the top-performing crypto assets of the past 24 hours.

Chart of AVAX’s price action over the past week from TradingView.com

While the cryptocurrency is outpacing many other digital assets, not many may know what Avalanche is.

What is Avalanche?

Avalanche is a decentralized application network that operates similarly to Polkadot. The technology allows developers to deploy blockchains that fit certain needs and that can interoperate with other blockchains to create a comprehensive ecosystem.

Ava Labs, which is the main developer behind the protocol, is backed by Andreessen Horowitz (a16z), Initialized Capital, Polychain Capital, amongst other investment firms.

The project was founded in part by Emin Gun Sirer, an on-leave Cornell University professor that has long followed Bitcoin and the rest of the crypto-asset space.

AVAX is the network’s native token. AVAX is used to pay for transactions on the Avalanche network. It has a hard-cap and is a scarce asset as it is burned when used.

AVAX may be benefiting from the ongoing Ethereum network congestion, which has disallowed many users from using the network. In fact, billionaire investor Mark Cuban said today that he thinks Aave and other DeFi platforms are hard to use due to the high gas fees.

Coins of Ethereum alternatives and scaling networks, such as Polkadot (DOT) and Loopring (LRC), have surged over the past week alongside AVAX, discounting the crypto market correction.

DeFi on Avalanche

While Avalanche is a multi-purpose blockchain, it appears that decentralized finance is and will be a focus for developers.

Developers announced a Uniswap-based automated market maker for Avalanche in December:

“Pangolin is a decentralized exchange (DEX) which runs on Avalanche, uses the same automated market-making (AMM) model as Uniswap… In a crowded marketplace with multiple contenders, Pangolin offers three critically important benefits: fast and cheap trades, community-driven development, and a fair and open token distribution.”

This announcement was shared by the Avalanche team and Emin Gun Sirer.

Other projects that are launching DeFi-focused applications on Avalanche include Reef Finance, which is a liquidity aggregator protocol and a DeFi investment platform.

The post What is Avalanche (AVAX) and why is it up 125% this past week? appeared first on CryptoSlate.

Bitcoin Just Dropped Below $33,000: What Analysts Are Saying

Bitcoin has begun to drop lower once again despite the flush on Monday to $30,000. The leading cryptocurrency currently trades for $32,500, below the $36,000 highs the cryptocurrency saw during a bounce earlier today.

Bitcoin’s drop comes in spite of the fact that the funding rates on leading crypto-asset futures platforms have reset. The funding rate is the reoccurring fee that long positions pay short positions to maintain the price of the future to the spot price. High funding rates, such as those seen on Saturday, are what signaled a correction to many on the weekend.

The cryptocurrency could see further losses, some analysts say.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Bitcoin Set to Drop Lower?

Not all analysts are convinced that the Bitcoin shakeout is done despite the cryptocurrency losing nearly 30% in the span of 48 hours.

Commenting on the recent price action and what is likely to come next, one crypto-asset analyst recently remarked:

“Still think we could use another drop lower to really take out some liquidity to fuel the next leg up to $50k+”

Image

Chart of BTC's price action over the past few months with an analysis by crypto-asset naalyst HornHairs (@CryptoHornHairs on Twitter).
Source: BTCUSD from TradingView.com
Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

On-Chain Trends Remain Bullish

Despite Bitcoin’s drop, on-chain trends for this market remain bullish. Aleks Larsen, a venture investor at Blockchain Capital, said on HODLer trends for Bitcoin:

“6/ Looking pretty good for growth rates in the HODLer segment! Nice and steady growth for BTC through the bear market. Retail is starting to pop in but for most of 2020 this was institutionally driven – less additional holders, but much larger position sizes.”

Another positive sign to look forward to is Grayscale Investments re-opening private placements for its cryptocurrency investment trusts.

Analysts found in December that whenever private placements were closed, Bitcoin underperformed. The reopening of these trusts to institutional and accredited players may drive prices higher as capital floods into the space.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price Tags: xbtusd, btcusd, btcusdt 
Bitcoin Just Dropped Below $33,000 Despite Recovery to $36,000

Pro-Bitcoin U.S. Treasury official calls DeFi the future in op-ed

The Ethereum decentralized finance (DeFi) space saw a renaissance in 2020 led by the release of new platforms such as Aave and iEarn (now Yearn), along with the rise of liquidity mining schemes that managed to draw hundreds of thousands into this space.

Yet the growth of the DeFi space may not be done yet as a U.S. Treasury official — and a senior official at that — has indicated that he thinks this crypto-based technology has a bright future ahead of itself.

DeFi discussed by U.S. Treasury official Brian Brooks

In an op-ed for the Financial Times published on Tuesday morning, Brian Brooks, the acting Comptroller of the Currency, said that banking is being driven forward by DeFi, similarly to how cars are being driven forward by automated technology.

The Comptroller of the Currency is responsible for regulating banks that operate in the U.S. Brooks is an interesting official as he was formerly the Chief Legal Officer of Coinbase.

On DeFi, he said that he expects the technology to go mainstream due to the automated and efficient nature of the tech:

“Other DeFi projects include decentralised exchanges that allow users to trade without brokers, and protocols for lending that do not involve loan officers or credit committees. Although these ‘self-driving banks’ are new, they are not small. They are likely to be mainstream before self-driving cars start to fly.”

Brooks elaborated that while a promising technology, it still presents some risks to the regulatory framework in the U.S. due to its liquidity risk and asset volatility, which may harm depositors or users.

He caveated that by stating that if there is too stringent and heavy regulation, other jurisdictions will fill the gap that the U.S. opens.

The DeFi market is surging on his comments.

Since the op-ed was released, coins such as Maker (MKR), Synthetix Network Token (SNX), and Compound (COMP) have gained 3-5 percent.

Billionaire Mark Cuban talks Aave

In similarly positive news, Mark Cuban, a billionaire known for his involvement in “Shark Tank” and in the NBA team the Dallas Mavericks, said that he is dabbling in decentralized finance.

Cuban, seemingly indicating that he uses DeFi, wrote on Tuesday morning that the cost of using Aave is extremely high:

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive and the number of non crypto options will increase.”

Aave is an Ethereum-based lending protocol. It can cost anywhere from $20 to $100 to take a loan on the platform due to high Ethereum network congestion during times of demand.

Cuban doesn’t seem to be entirely interested in DeFi right now due to the high gas fees, though many expect this issue to improve in the near future.

This comment from the American billionaire comes shortly after he said that the Bitcoin and crypto market looks extremely similar to the Dotcom bubble, which is where he began as an entrepreneur:

“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t.”

The post Pro-Bitcoin U.S. Treasury official calls DeFi the future in op-ed appeared first on CryptoSlate.

Pro-Bitcoin U.S. Treasury official calls DeFi the future in op-ed

The Ethereum decentralized finance (DeFi) space saw a renaissance in 2020 led by the release of new platforms such as Aave and iEarn (now Yearn), along with the rise of liquidity mining schemes that managed to draw hundreds of thousands into this space.

Yet the growth of the DeFi space may not be done yet as a U.S. Treasury official — and a senior official at that — has indicated that he thinks this crypto-based technology has a bright future ahead of itself.

DeFi discussed by U.S. Treasury official Brian Brooks

In an op-ed for the Financial Times published on Tuesday morning, Brian Brooks, the acting Comptroller of the Currency, said that banking is being driven forward by DeFi, similarly to how cars are being driven forward by automated technology.

The Comptroller of the Currency is responsible for regulating banks that operate in the U.S. Brooks is an interesting official as he was formerly the Chief Legal Officer of Coinbase.

On DeFi, he said that he expects the technology to go mainstream due to the automated and efficient nature of the tech:

“Other DeFi projects include decentralised exchanges that allow users to trade without brokers, and protocols for lending that do not involve loan officers or credit committees. Although these ‘self-driving banks’ are new, they are not small. They are likely to be mainstream before self-driving cars start to fly.”

Brooks elaborated that while a promising technology, it still presents some risks to the regulatory framework in the U.S. due to its liquidity risk and asset volatility, which may harm depositors or users.

He caveated that by stating that if there is too stringent and heavy regulation, other jurisdictions will fill the gap that the U.S. opens.

The DeFi market is surging on his comments.

Since the op-ed was released, coins such as Maker (MKR), Synthetix Network Token (SNX), and Compound (COMP) have gained 3-5 percent.

Billionaire Mark Cuban talks Aave

In similarly positive news, Mark Cuban, a billionaire known for his involvement in “Shark Tank” and in the NBA team the Dallas Mavericks, said that he is dabbling in decentralized finance.

Cuban, seemingly indicating that he uses DeFi, wrote on Tuesday morning that the cost of using Aave is extremely high:

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive and the number of non crypto options will increase.”

Aave is an Ethereum-based lending protocol. It can cost anywhere from $20 to $100 to take a loan on the platform due to high Ethereum network congestion during times of demand.

Cuban doesn’t seem to be entirely interested in DeFi right now due to the high gas fees, though many expect this issue to improve in the near future.

This comment from the American billionaire comes shortly after he said that the Bitcoin and crypto market looks extremely similar to the Dotcom bubble, which is where he began as an entrepreneur:

“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth, a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t.”

The post Pro-Bitcoin U.S. Treasury official calls DeFi the future in op-ed appeared first on CryptoSlate.

Bitcoin Just Recovered to $35,000 After Yesterday’s 25% Crash

Bitcoin is ripping higher despite yesterday’s correction.

The cryptocurrency plunged as low as $30,000 yesterday as buying selling rapidly picked up on platforms such as Coinbase, analysts said. This came after Bitcoin peaked at $42,000 late last week. While Bitcoin is not yet in the clear on a short-term time frame, analysts are starting to think that the bottom is in after key technical signs appear.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

On-Chain Trends Still Bullish for Bitcoin

Aleks Larsen, a venture investor at Blockchain Capital, noted recently in an extensive Twitter thread that the on-chain fundamentals for Bitcoin are still strong.

Commenting on Bitcoin’s on-chain trends, the investor wrote:

“6/ Looking pretty good for growth rates in the HODLer segment! Nice and steady growth for BTC through the bear market. Retail is starting to pop in but for most of 2020 this was institutionally driven – less additional holders, but much larger position sizes.”

He elaborated that Bitcoin is currently moving $7 billion a day, which shows the value of the network. Ethereum, too, is still seeing strong usage:

“14/ BTC is moving $7B per day on-chain; ETH almost $4B. This doesn’t include tokens or stablecoins.. and stablecoins alone accounted for over $15B of on-chain transfer volume in the last 24 hours. Ethereum is moving over $20B of assets per day, most of which is digital USD!”

Analysts say that on-chain trends show the true nature of the Bitcoin market, as opposed to short-term price trends.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Overall Trends Positive

Touching on the market trends aside from on-chain data, economist and crypto analyst Alex Krüger says that Bitcoin remains bullish to the most extent:

“Raw demand. Worthy of note was Grayscale reopening private placements late PM. Open interest dropped ~20% and funding rates are now flat to negative. Bullish. This is still a bull market. Bitcoin heats up very easily, and needs to wash up excesses before continuation.”

The investor did note, though, that there are a number of factors that have driven BTC lower in the near term.

These include but are not limited to:

  • A bounce in the U.S. dollar against foreign currencies
  • Extremely high market funding meant the market was overextended
  • Heavy selling pressure by miners, some long-term holdings, and others
  • Guggenheim Investments CIO Scott Minerd announcing a short-term bearish view
  • Tether fears
  • And renewed regulatory fears

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price Tags: xbtusd, btcusd, btcusdt
Bitcoin Just Recovered to $35,000 After Yesterday's 25% Crash

Billionaire Investor Mark Cuban: Bitcoin Market Looks Like Dotcom Bubble

Bitcoin has seen immense volatility over the past few weeks, slingshotting between key support and resistance levels on a daily basis. Monday’s price candle alone had an $8,000 range, which is the largest ever.

The cryptocurrency currently trades for $35,000, though fell as low as $30,000 just hours ago. Bitcoin also traded as high as $42,000 late last week, which was a new all-time high for the asset.

This volatility and growth have led some to liken Bitcoin to the Dotcom Boom and Bust.

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Bitcoin and Crypto Is Just Like the Stock Bubble of 2000-2002?

Mark Cuban, billionaire investor, a Shark Tank “Shark,” and the owner of National Basketball Association’s (NBA) Dallas Mavericks, says that Bitcoin’s ongoing bull run looks similar to the Dotcom Bubble:

“Watching the cryptos trade, it’s EXACTLY like the internet stock bubble. EXACTLY. I think btc, eth , a few others will be analogous to those that were built during the dot-com era, survived the bubble bursting and thrived, like AMZN, EBay, and Priceline. Many won’t.”

He added that many Bitcoin and crypto investors will lose their capital, similarly to what happened back in the day with the internet stocks.

“Along the way MANY fortunes will be made and LOST and we find out who has the stomach to HODL and who doesn’t. My advice ? Learn how to hedge.”

Cuban has long talked about Bitcoin, having said in the past that it may be wise for investors to keep a fixed percentage of their investments in the cryptocurrency. On other occasions, though, he likened the leading cryptocurrency to bananas.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Lots of Growth to Come

Cuban is not making a price prediction, though analysts say that the market has room to grow.

Chamath Palihapitiya, a Canadian-American venture capitalist known for buying a large amount of the Bitcoin supply, says that BTC could hit $100,000-200,000 in the future due to the macroeconomic and geopolitical trends taking place today.

Other prominent investors in the space have made similar predictions, noting that the macro trends for Bitcoin are still skewed bullish.

Joe Biden, the incoming President of the United States, is expected to call for a trillion-dollar stimulus plan that may end up pushing the U.S. dollar lower.

Bitcoin stands to benefit from this as a hedge against the devaluation of the U.S. dollar. Just yesterday, BTC crashed as the U.S. dollar bounced, and today, the cryptocurrency has begun to recover as the U.S. dollar falls once again.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Billionaire Investor Mark Cuban: Bitcoin Market Looks Like Dotcom Bubble

EOS Co-Founder Dan Larimer Resigns From Post as CTO of Block.one

Dan Larimer is resigning from his post as the chief technology officer of the development company Block.one.

Block.one made history when it raised $4 billion worth of cryptocurrency for the initial coin offering of EOS, a blockchain that was built to compete with Ethereum and other smart contract networks. Block.one’s main project is EOS.

Prior to Block.one and EOS, Larimer was involved in blockchain-based social media publishing service Steem and Bitshares.

He made the announcement in a short post published to Voice, a social media initiative founded by Block.one. The EOS pioneer wrote on the matter:

“I have worked with Brendan and block.one for the past 4 years and am proud of the EOSIO software I was able to create and launch with the help of an extremely talented group of engineers. Alas, all good things must come to an end. As of December 31, 2020 I have resigned my position as CTO of block.one.”

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

Larimer’s Future Ambitions

While the EOS co-founder is resigning from his post at Block.one, his intent is to continue to work on decentralized technology:

“I will continue on my mission to create free market, voluntary solutions for securing life, liberty, property, and justice for all. I do not know exactly what is next, but I am leaning toward building more censorship resistant technologies. I have come to believe that you cannot provide “liberty as a service” and therefore I will focus my attention on creating tools that people can use to secure their own freedom.”

Larmier did not mention if he will stop working on EOS as a whole.

Many in the crypto space speculate that he will focus his efforts on decentralized finance next, which would be in line with his ambitions to cultivate censorship-resistant technology.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

EOS Price Drops

EOS’ price dropped in response to this news, seeing that Larimer is a well-known figure and was sometimes seen as the face of the project.

EOS is currently the worst-performing crypto-asset in the top 100 by market capitalization, according to CoinGecko. The cryptocurrency is down 15% in the past 24 hours, underperforming Bitcoin’s 5% drop and Ethereum’s 1.5% drop.

Over the past seven days, the cryptocurrency has gained 18% against the U.S. dollar.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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EOS Co-Founder Larimer Resigns From Post as CTO of Block.one

Bitcoin Explodes Past $37,500 Amid Rapid Recovery

Bitcoin plunged as low as $34,500 on top spot exchanges last hour as selling pressure picked up ahead of the weekly close. The cryptocurrency fell as low as $35,000 on futures exchanges as well, though spot sellers were leading the correction.

While some began to fear that a deeper correction was in store, buyers stepped in at key technical levels.

The cryptocurrency has since bounced to $38,000 as of this article’s writing.

A crypto-asset analyst shared the chart seen below in the wake of the bounce, noting how Bitcoin held key technical levels during the drop. The chart shows that Bitcoin’s BitMEX market maintained the $35,000 support, along with a number of other moving averages that have held quite well over the past few weeks.

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Chart of BTC's price action over the past two weeks from crypto-asset analyst "Edward Morra". Chart from TradingView.com
Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

High Funding Rates Still of Concern

While Bitcoin held the drop well, analysts still note that a cause for concern is the extremely high funding rates seen in the crypto-asset futures markets.

The funding rate is the reoccurring fee that long positions pay short positions. This system ensures that the price of the future naturally gravitates to the price of the spot market over time.

The funding rates in the Bitcoin and Ethereum futures markets are skewed to the positive right now.

On Binance, it costs users 0.1% every ten hours to long BTC, while it costs even more on other derivatives platforms.

It costs even more to long Ethereum on those same platforms.

Even still, the recent bounce has analysts convinced that the overall bull trend remains intact. One trader noted that the recent bounce looks extremely similar to the bounce BTC experienced early this week, when it similarly plunged to the $34,000-35,000 region before returning higher.

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Chart of BTC's price action over the past week from crypto trader Pierre (@Pierre_Crypt0 on Twitter). Chart from TradingView.com
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Bitcoin Explodes Past $38,000 Amid Rapid Recovery

Bitcoin Plunges As Low as $34,500: What Are Analysts Saying?

Bitcoin plunged as low as $34,500 on Bitstamp just minutes ago as buying pressure finally began to subside heading into the weekend.

After peaking at $42,000 late last week, the cryptocurrency’s price action began to taper off heading into the weekend. This culminated in a strong flush lower over the past few hours that brought the leading cryptocurrency from the $40,000 region to lows at around $34,500 on some exchanges.

Chart of BTC's price action over the past few hours from TradingView.com

There appears to have been a large divergence between the price of Bitcoin on spot exchanges versus the price of Bitcoin on futures exchanges. It appears that there were spot sellers leading the dip, resulting in this divergence, as those on the futures market began to bet on a rebound.

This is made apparent by the high futures funding rate. The funding rate is the fee that long positions pay short positions on a recurring basis to ensure the price of the future is around that of the spot market.

Related Reading: Wall Street Veteran Kickstarts Own BTC Fund With $25m Investment

Too Much Panic Over the Bitcoin Drop?

Crypto-asset analysts argue that there is too much panic over this one move. One noted that the cryptocurrency is now only trading at prices seen 4-5 days ago.

Others note that the ongoing bounce seen in the Bitcoin price is a sign that there remains buying pressure on the sidelines that should maintain current price levels.

Related Reading: 3 BTC On-Chain Trends Show a Macro Bull Market Is Brewing
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Bitcoin Plunges As Low as $34,500: What Are Analysts Saying?

Popular Youtuber KSI Tweets “Ethereum” Amid Fresh Rally

Ethereum pushed higher on Saturday despite Bitcoin flatlining. The cryptocurrency is up 7.5% in the past 24 hours and has moved past $1,300 for the first time since January of 2018.

The cryptocurrency remains below the all-time high price of $1,450 despite the recent push higher and the recent Bitcoin rally to $42,000. ETH is the best-performing crypto asset in the top 10 by market capitalization except for Bitcoin Cash (BCH).

Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment

KSI Name Drops Ethereum

Popular Youtuber “KSI,” also known as Olajide Olayinka Williams “JJ” Olatunji, recently tweeted out “Ethereum” on Twitter. The tweet from the influencer can be seen below.

The tweet went crypto-viral, garnering tens of thousands of likes and thousands of replies.

Many in the cryptocurrency space responded to KSI’s tweet, telling him about Ethereum and joking about it being the future of finance.

This appears to be the first time the Youtuber has mentioned Ethereum or other cryptocurrencies. A search on Google for “KSI Youtuber Bitcoin” results in nothing relevant to the Youtuber or his interactions with cryptocurrency.

Of note, it is unclear whether or not the celebrity actually owns ETH or was just commenting on it to capitalize on the ongoing attention given to the cryptocurrency.

KSI is the latest celebrity to have dabbled in Bitcoin, Ethereum, and cryptocurrency amid the recent price rally.

Previously, rapper Sir Robert Bryson Hall II, also known as “Logic,” put a material amount of his net worth into Bitcoin late last year. Assuming he hasn’t sold (which is something he hasn’t announced), he should be up over 150% on his investment in the leading cryptocurrency.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Little Resistance Ahead of ETH, Per Order Book Data

Data shows that Ethereum may be ready to surge even higher in the weeks and months ahead, which may validate KSI’s tweet about the cryptocurrency.

A crypto-asset trader recently shared the chart seen below, which shows that there is little overhead resistance for Ethereum past $1,400. This means that like Bitcoin, once the previous all-time high region breaks, there may be little resistance as the cryptocurrency enters a phase of a market known as price discovery.

The trader says that Ethereum could face some resistance in the $1,350 range, though, which is just a few percent above the current price.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price Tags: ethusd, ethbtc, eth
Popular Youtuber KSI Tweets "Ethereum" Amid Fresh Rally

Elon Musk Jokes He Is Never Turning Down Getting Paid In Bitcoin

For years, Bitcoin investors have been asking Elon Musk, CEO of Tesla and SpaceX, if they can buy cars or tickets to Mars with the leading cryptocurrency. It’s become somewhat of a recurring meme, where whenever Musk mentions Bitcoin or cryptocurrency, those with BTC would ask if they can use it as a means of payment.

Responding to author Ben Mezrich’s comment that he’s “never turning down getting paid in bitcoin again, Musk said, “me neither.” Mezrich is the author of the Bitcoin-themed book Accidental Billionaires, which tells the story of the Winklevoss Twins and their rise to billionaire status via cryptocurrency.

While it is unclear if Musk is joking or not, in reply to his tweet, many asked if they could buy Tesla Model 3s with BTC.

Related Reading: Wall Street Veteran Kickstarts Own BTC Fund With $25m Investment

Musk Talks Bitcoin, Dogecoin

Over the past few months, Musk has mentioned Bitcoin, Dogecoin, and other cryptocurrencies on Twitter on multiple occasions.

Responding to a comment on BTC from JK Rowling, author of the Harry Potter series, Musk said that internet money is more viable than fiat money, which is being inflated away.

Related Reading: 3 BTC On-Chain Trends Show a Macro Bull Market Is Brewing
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Elon Musk Jokes He Is Never Turning Down Getting Paid In Bitcoin