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DeFi Has Huge Potential despite Signs of Bubble

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However, Changpeng Zhao warned that some Defi projects will not last long and possibly never recover from the bubble.

Speaking to a Russian media outlet RBC, Binance CEO Changpeng Zhao (CZ) said that the decentralized finance alias DeFi is here to stay despite showing signs of a market bubble.

“A lot of DeFi projects are already in a bubble, and I also believe that there are some signs of a bubble in the DeFi industry, but this does not mean that DeFi will eventually disappear entirely,” CZ highlighted.

The Defi ecosystem has boomed in the past few months with most of the native respective tokens experiencing heightened volatility.

According to Zhao, the DeFi industry has a significant potential for market growth in the future based on the booming demand. He further noted that the DeFi tokens are still very popular amid the ongoing Bitcoin rally.

However, Zhao warned that some DeFi projects will not last long and possibly never recover from the bubble.

DeFi Ecosystem in Relation to Highlights Made by CZ

According to the metrics provided by Coinmarketcap, the DeFi crypto market cap stands at $16.04 billion. In addition, Defi Pulse market analysis shows that the total value locked in the DeFi ecosystem as of November 17 stands at $12.909 billion.

Leading the list is the MakerDAO Maker with approximately $2.34 billion locked assets in its ecosystem, thus a dominance of 18.16% of the total Defi ecosystem. Followed closely by WBTC with approximately $2.11 billion locked assets in its ecosystem after it added around 4.3% in the past 24 hours. Compound closes the top three Defi projects with $1.47 billion locked assets in its ecosystem having added approximately 3% in the past 24 hours.

The ecosystem is poised to further explode once Ethereum 2.0 is fully implemented and more projects get built on the Binance Smart Chain that offers more scalable services than those in Ethereum blockchain.

The DeFi industry is facing immense challenges that put it at risk of lagging behind in the near future. Among the challenges is the increased level of scams especially from project managers who vanished with users’ locked assets.

Besides, there has been an increase in DeFi attacks that have left most users stranded in the market.

Earlier today Origin Protocol reported that attackers had compromised its system and made away with $7 million of customers’ funds. With no refund policies, most projects are left bankrupt after such an attack and users counting immense losses of capital.

However, there are insurance companies that are developing crypto covers that details the DeFi world. One such company is the decentralized Bridge Mutual insurance provider that announced an insurance policy for the stablecoin industry.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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Insider Protocol Is Going to Start Working with Institutional Funds

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While the Insider Protocol is built for a diverse class of users, the platform has created its tested Option X algorithm that is best suited for institutional clients.

Innovation in the blockchain and cryptocurrency ecosystem is still in its infancy and any innovation such as that from the Insider Protocol is quick to be spotted and celebrated. The Insider Protocol is a relatively new multi-faceted blockchain and cryptocurrency ecosystem that is building by the Mechanics of the Future team.

With a profound emphasis on privacy, the Mechanics of the Future Team created the Insider Protocol as well as its accompanying products and services to model a high level of anonymity, such as is aimed at combating the dominance of the Monero (XMR) and Dash networks respectively.

Of the flagship products emanating from the Insider Protocol is the Automated Trading Bot algorithms that help users make intelligent automated trading decisions to help return ample profits back to the users. The trading bots also have infused in them a great level of anonymity and they currently support the BTC/USDT trading pair. While users can take advantage of this active trading pair, the team is determined to roll out support for additional trading pairs to support other altcoins including Ethereum (ETH), Litecoin (LTC), and Monero (XMR) in the not too distant future.

The Insider Protocol is trailing the blaze in the very nascent niche of automated bitcoin trading bot and with determination to take its services mainstream, the team behind the project is committed to constant platform development

Insider Protocol’s HFT Trading Algorithm: The Real Game Changer

The earlier noted auto trading bots works with the High-Frequency Trading (HFT) algorithm, a highly scalable algorithm that is implemented using the layering technique. Article on Bloomberg explained in detail how the HTF Layering method works. HFTs are not uncommon in the world of finance as they are highly used by big financial institutions. While these big corporates utilize this layering technique in their trading, they tend to tag it illegal amongst retail traders. With the ingenuity of the Mechanics of the Future Team, however, algorithms to counter the Financial institution’s HFT trading bots have been developed.

While trading using the layering technique, a trader can place as many trades and at varying prices as possible which can also be canceled at will. Using the HFT algorithm, the user can place many different orders for assets traded on an exchange without the plans to purchase the asset. These multiple orders created alerts other users who can thus place higher bids on the assets. The bot utilizes this algorithm to maximize returns taking note of the price differences in the buy orders.

The entire Insider Protocol ecosystem is still under development and with the plans to utilize the scalable and highly secured Mimblewimble (MW) Protocol, the platform is set to be positioned to process high throughput and fast transactions in a bid to rival existing blockchain protocols. A highlight of the Mimblewimble Protocol was described by Cointelegraph to utilize the technology of confidential transactions, encrypting all inputs and outputs, as well as their public and private keys. This enables the senders and recipients of transactions to be thoroughly masked and away from prying authorities

Embrace of Institutional Clients and Funding

While the Insider Protocol is built for a diverse class of users, the platform has created its tested Option X algorithm that is best suited for institutional clients. The company’s propulsion of custom made offerings is positioning it aright to begin trading with the inflow of institutional funds.

In this video below you can see the Trading Statement of the Option X algorithm which was mainly built for Institutional Traders.

Despite there being existing platforms offering similar services as the Insider Protocol’s, the creativity and futuristic approach of the Mechanics of the Future Team is set to position the platform at the top of the food chain in no time.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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Ethereum (ETH) Price Pops Over 13% in Past 24 Hours to Hit ATH

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The Ethereum ecosystem has significantly benefited from the booming decentralized finance industry.

Ethereum (ETH) market price has jumped over 13% in the past 24 hours to hit its all-time high (ATH) set back during the 2017/2018 bull run. Ethereum market price rallied to slightly above $1435 but had retraced to trade around $1,406.55 at the time of writing according to metrics provided by CoinGecko.

Consequently, Ethereum’s market capitalization had topped $161.57 billion with a trading volume of approximately $44.79 billion. The second crypto asset by market capitalization and largest altcoin now has officially made a new all-time high and awaits to make it support instead of a resistance level.

A Closer Look at Ethereum and Its Ecosystem amid New ATH

The asset is closely following the footsteps previously made by bitcoin before surpassing its all-time high. The Ethereum ecosystem has experienced a sharp uptick in blockchain activity, bolstered by the huge institutional and retail demand. Apparently, the Ethereum ecosystem settles 28% more transactions daily than the Bitcoin ecosystem.

“Ethereum’s daily transaction volume is going parabolic. It now settles $12 billion in transactions daily – $3 billion more than Bitcoin. Imagine not being bullish,” asserted Ryan Watkins, a researcher at Messari, a data aggregation portal.

However, the high transaction fees have choked a significant amount of volume from small retail traders.

Ethereum developers are working on implementing Eth 2.0 that supports proof of stake away from the energy-consuming proof of work. With phase 0 already up and running, investors are optimistic the high transaction issue will be solved and allow the scalability of the system.

Notably, the Ethereum ecosystem has significantly benefited from the booming decentralized finance industry. Most of the Defi projects are supported by the Ethereum blockchain despite of the growing competition from the Binance Smart Chain. Metrics provided by Defi pulse indicate the DeFi ecosystem has surged tremendously since January 2020. The total value locked in the entire defi ecosystem stands at approximately $25.2 billion.

Ethereum market price continues benefiting from the depreciating supply and increasing demand. Notably, with the introduction of staking, a significant amount of Ethereum units have been locked to facilitate the system. At the time of writing, there are approximately 114,315,516 in circulating supply.

Similar volatility has been experienced in other top-ranked altcoins including Litecoin and Bitcoin Cash. However, Bitcoin remains trapped in a consolidation mode, whereby its down approximately 1% in the past 24-hours.

Ethereum market price remains highly undervalued, whereby both analysts and investors remain optimistic the rally will be enormous by the end of the year.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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CoinShares to Float Bitcoin-backed ETP on SIX Swiss Exchange

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The ETP product is set to complement CoinShares’ strategy in pushing Bitcoin into the mainstream cycle of adoption.

CoinShares, the world’s first digital asset investor to launch a regulated Bitcoin investment fund and the world’s first bitcoin-based securities on a regulated exchange is set to expand its tentacles by launching a Bitcoin-backed Exchange Traded Product (ETP) on Switzerland’s SIX Exchange. According to Bloomberg which first broke the news, the CoinShares ETP is billed to start trading on the exchange today, the 19th of January under the ticker symbol BITC.

The massive entry of Institutional investors into the Bitcoin investment world has necessitated the need for digital asset service providers to churn out enticing products and services that will endear the more conservative investors to the highly volatile crypto ecosystem. The rollout of Exchange Traded Products is one great way to achieve this and CoinShares is leveraging the receptiveness of European bourses to do this.

The ETP will be physically backed by Bitcoin at a rate of 0.001 Bitcoin which is about $37.4 at the time of writing. The ETP will charge an expense ratio of 0.98% and custody for the assets will be provided by Komainu, a venture that sprung up a mutual alliance by Ledger, Nomura Holdings Inc, and CoinShares.

“A lot of institutional clients have a very strong due-diligence process, and we wanted to bring to market a best-in-class product to embrace that demand,” said Frank Spiteri, chief revenue officer at CoinShares. “We are ready, as of January, to embrace the forthcoming demand from institutional clients.”

CoinShares ETP Launching with $200M AUM

The CoinShares ETP was off to a great start as the entity was floated with about $200 million assets under management and this kick-off figure was confirmed by CoinShares Chief Strategy Officer, Meltem Demirors.

The ETP product is set to complement CoinShares’ strategy in pushing Bitcoin into the mainstream cycle of adoption. With the price of Bitcoin winking at corporate entities, the forecast to see many more institutional investors take a position with Bitcoin this year is more likely than ever. The coin whose surge in value topped $42,000 in the past days has been favored to soar as high as $146,000 by analysts from JPMorgan Chase & Co (NYSE: JPM).

In readiness to take advantage of the avalanche of inflows from more investors across all divide, the CoinShares ETP will serve as a viable reference and goto product, both in Europe and beyond for every investor who wishes not just to gain exposure to Bitcoin, but to also benefit from the increase in the coin’s valuation over time. 

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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