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DeFi Demand Contributing Significantly to Stablecoins’ Dominance

Decentralized finance (DeFi) has been the talk of the cryptocurrency industry in recent times. It goes beyond talk, with growth recorded in the industry as Aave (LEND) recently became the first DeFi token to reach a market cap of $1 billion. The growth of DeFi has a greater impact, though not obviously noticeable to many. […]

The post DeFi Demand Contributing Significantly to Stablecoins’ Dominance appeared first on The Daily Hodl.

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Decentralized finance (DeFi) has been the talk of the cryptocurrency industry in recent times. It goes beyond talk, with growth recorded in the industry as Aave (LEND) recently became the first DeFi token to reach a market cap of $1 billion. The growth of DeFi has a greater impact, though not obviously noticeable to many.

Data recently released by on-chain data analytics platform Coin Metrics reveals that the demand for DeFi has increased demand for stablecoins significantly. This has led to a daily increase in the combined market cap of stablecoins by $100 million over the last two months.

via Twitter

Co-founder of Coin Metrics Nic Carter said,

“Everyone got so excited about DeFi no one pointed out that stablecoins have been adding $100m/day since mid-July. DeFi yields/interest rates are clearly a vacuum sucking in a lot of stablecoins.”

Even though categorized as cryptocurrencies, stablecoins possess the characteristics of fiat money, which is lower volatility. This may explain why they have become so popular in the space for payments, and even holding money, as value remains relatively stable. Even before the DeFi boom, they have been in high demand, especially in China, where there are strict restrictions on cryptocurrencies but not on stablecoins, especially USDT.

At this rate, stablecoins are rapidly gaining dominance on the cryptocurrency landscape due to this growing adoption. The most in-demand, USDT, has been moving up the ladder rather fast. It has knocked XRP out of the third position a number of times and though temporarily, it seems it has come to stay as the third-largest cryptocurrency by market cap.

At time of writing, USDT has a market cap of roughly $14.1 billion while XRP is at $11.5 billion, a difference of well over $2 billion. As the demand for DeFi continues to rise, this difference may only get bigger over time, and stablecoin adoption may still go up, thus reinforcing their dominance.

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Source: https://dailyhodl.com/2020/09/05/defi-demand-contributing-significantly-to-stablecoins-dominance/

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‘Every asset manager must understand Bitcoin’

American entrepreneur Erik Voorhees who founded ShapeShift said that any asset manager today who remains ignorant of Bitcoin “needs to seriously check their premises.” He took to Twitter to mak

The post ‘Every asset manager must understand Bitcoin’ appeared first on AMBCrypto.

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American entrepreneur Erik Voorhees who founded ShapeShift said that any asset manager today who remains ignorant of Bitcoin “needs to seriously check their premises.”

He took to Twitter to make this remark after retweeting data shared by analytics platform Messari co-founder Dan McArdle that showed how Bitcoin has outperformed everything over the last ten years. Bitcoin has had 7,837,884% gain in the last decade, while gold has returned a 32% profit and S&P 500 ROI came up to 201%.

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Voorhees further believed that across a 10-year span Bitcoin is “vastly superior to any other investment” and added:  

Across 10 years and 3 hype cycles, Bitcoin is empirically ‘so vastly superior’ to any other investment. One could be forgiven for not understanding it eight years ago… but any asset manager today who remains ignorant of this phenomenon needs to seriously check their premises.

In the last couple of weeks, Bitcoin has been rallying to the $19,000 range. Many in the industry think that institutional investors have been the reason behind this rally. Overall Bitcoin has been up over 160% this year and has attracted several investors, such as Paul Tudor Jones and Stanley Druckenmiller as well as fintech giants Square and PayPal. 

Crypto exchange Gemini’s co-founders, the Winklevoss twins even said that Bitcoin could one day be worth $500,000. They think BTC will be gaining 25 times its current value as more global investors adopt the leading crypto as a hedge against inflation.

Other entities made bullish statements about Bitcoin such as the former JP Morgan commodity trader Danny Masters who told CNBC that soon it will be a “career-risk for not having Bitcoin in your portfolio.”

CEO Michael Moro of crypto trading firm Genesis predicted that 250 publicly traded companies will invest in Bitcoin by the end of 2021. 

However, Gold advocate Peter Schiff remains unconvinced. He recently called Bitcoin a bubble and said that “real fools” will be exposed when such “bubbles start popping. According to the American stockbroker, in the event of inflation, when “institutions finally start to worry,” they would rather invest in gold instead of Bitcoin. 

Source: https://eng.ambcrypto.com/every-asset-manager-must-understand-bitcoin

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Community Could Force Ripple To Burn Its Huge XRP Stash, CTO David Schwartz Confirms

Community Could Force Ripple To Burn Its Huge XRP Stash, CTO David Schwartz Confirms

The chief technology officer (CTO) at Ripple, David Schwartz, has indicated that the community could force the San Francisco-based blockchain payments firm to burn its entire XRP cache. Ripple currently owns over 50% of the total XRP supply and releases one billion tokens every month in an attempt to expand the utility of the cryptocurrency. […]

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Community Could Force Ripple To Burn Its Huge XRP Stash, CTO David Schwartz Confirms

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The chief technology officer (CTO) at Ripple, David Schwartz, has indicated that the community could force the San Francisco-based blockchain payments firm to burn its entire XRP cache.

Ripple currently owns over 50% of the total XRP supply and releases one billion tokens every month in an attempt to expand the utility of the cryptocurrency. While the company has long maintained that these monthly sales cannot negatively affect the price of XRP, most people have called out Ripple for supposedly suppressing the price of the crypto-asset.

A Twitter user asked the Ripple CTO whether nodes, validators, and the XRP community could decide on burning the 50 billion XRP that the firm has put away in escrow wallets. In response, Schwartz noted that the blockchain is “democratic” and this could be done, regardless of if Ripple agrees with the decision or not.

Yes. There would be nothing Ripple could do to stop that from happening. Public blockchains are very democratic. If the majority wants a rules change, there is nothing the minority can do to stop them.”

Amendments on the XRP Ledger require an 80% approval rating from the ledger’s validators. Moreover, this supermajority needs to be retained for at least two weeks in order for the proposed amendment to be activated. 

Notably, in June this year, XRPL validators voted to introduce a new update known as “Checks amendment”, sans support from the payments firm.

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David Schwartz’s remarks come as somewhat an afterthought of a debate back in November 2019 in which observers argued that Ripple could decide to destroy the billions of excess XRP if it wanted to. This was around the time when the Stellar Development Foundation (SDF) burned 55 billion of its XLM tokens.

While the news was greeted warmly by the markets as XLM price surged, Schwartz criticized the move, stating: “Too bad XRP is decentralized or someone could just burn half the supply and raise the price to 29 cents.” 

Stellar co-founder and CTO Jed McCaleb contested those claims, arguing that Ripple could easily burn just as many tokens. Schwartz later admitted that Ripple could, in effect, burn XRP tokens either by paying them as fees or by sending them to an account that can never be accessed by any one.

For the longest time, Ripple has faced criticism for holding a massive trove of XRP tokens. The company halted programmatic sales to exchanges last year and began buying back XRP from the open markets in a bid to bolster the asset’s prices. Well, XRP has been performing well of late: the cryptocurrency’s prices rose 168% last month while bitcoin jumped by just 40% over the same period. 


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/community-could-force-ripple-to-burn-its-huge-xrp-stash-cto-david-schwartz-confirms/

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You Could Soon Pay for Spotify’s Audio Streaming Subscription with Bitcoin

You Could Soon Pay for Spotify’s Audio Streaming Subscription with Bitcoin

Bitcoin is still gaining more popularity, and the crypto industry at large is winning hearts and minds. Spotify is the latest conquest of the crypto empire. Apparently, the audio streaming service is currently mulling over a plan to start accepting Bitcoin payments from subscribers. Spotify’s plan would introduce a whole 320 million strong customer base […]

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You Could Soon Pay for Spotify’s Audio Streaming Subscription with Bitcoin

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Bitcoin is still gaining more popularity, and the crypto industry at large is winning hearts and minds. Spotify is the latest conquest of the crypto empire. Apparently, the audio streaming service is currently mulling over a plan to start accepting Bitcoin payments from subscribers.

Spotify’s plan would introduce a whole 320 million strong customer base to cryptocurrencies, something that would mean a lot for the industry. At the moment, reports have it that the company’s Payments and Innovation team is looking for an Associate Director to lead the development of a new framework for crypto payments. The company threw lots of hints to that effect. 

New Opportunities And Innovation

According to Spotify, the new team member will be tasked with looking for new payment opportunities and provide innovative solutions in that sense. Basically, it’s safe to say that the most recent innovation in the payment industry is all about cryptos and blockchain technology.

Based on that, the Director will help develop opportunities and innovations in the use of blockchains, CBDCs, cryptos, stablecoins, among other digital assets. With that requirement, it’s clear that Spotify is going all-in with cryptos. 

Experience In Blockchain And Digital Assets

Also, the expected Associate Director needs to have good experience in blockchain technology as well as digital assets (like cryptos).

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With this, the company wants the new team member to help it roll out a crypto payment solution on a global scale. Notably, Bitcoin is currently the most popular crypto that has reached all corners of the world. There are now BTC ATMs on almost every continent. That’s why Bitcoin would be most suited for this role.

Engagement With The Libra Association

Spotify is also joining up with Facebook’s Diem, a developer team that’s now planning to create a payment system to host various stablecoins.

It’s fair to opine that besides accepting Bitcoin payments, Spotify could be teaming up with the Libra Association to give its subscribers more payment options. Either way, it’s a good deal for BTC.


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/you-could-soon-pay-for-spotifys-audio-streaming-subscription-with-bitcoin/

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