Good morning. It’s the end of the work week. What are you going to do this weekend? If you are wondering why there are celestial bodies being alluded in the post title, read on.
Welcome to Friday Focus, part of our new series: BitPinas Daily. We will look at the price of Bitcoin, Ethereum and the major cryptocurrencies. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad.
Market Price as of January 15, 2021:
Bitcoin closed January 14, 2021, at $39,233 per BTC. We’re down 0.6% in the last 7 days and up 35% since the year began. This is 6.45% below the previous all-time high of $41,940, which was hit on Jan. 8, 2021.
Bitcoin’s market capitalization stands today at $730,651,308,099 which is 67.65% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,077,570,167,161.
On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.
Table of Contents.
Institutions buy while Bitcoin dipped this weekend
(By Colin Harper, Coindesk) Not headlines grabbing, but Colin Harper detailed out some of the improvements to the Bitcoin Network in his latest article.
First, Taproot, which will allow for more complex smart contracts, is now fully live on Bitcoin’s signet, a sandbox for testing before they get pushed to the mainnet.
Users can also now set manual fees denominated in satoshis. “Before, Bitcoin Core relied on a fee estimator for transactions, and these fees were set by specifying a bitcoin amount (say, 0.00001 BTC) instead of satoshis (1000 sats),” Harper explained.
Other changes or improvements include:
- Support for privacy browser Tor’s V3 address
- New block-filtering system for “light clients” — wallets that do not keep a full history of Bitcoin’s transaction ledger, only those that are needed.
- Signet – the new testing network
Read more here.
The planets can predict the price of Bitcoin according to this astrologer
Should we trade Bitcoin? When is the right time? According to astrologer Maren Altman, who has millions of followers on Tiktok, we should trade when Saturn crosses Mercury. I am not kidding. Altman predicted a price correction on January 11. It happened. Mercury, apparently, represents Bitcoin’s price while Saturn is the restricting indicator.
Altman does say she’s not a financial adviser so we should not misconstrue her celestial predictions as investment advice. But here’s what astrology said the future of Bitcoin will be.
“I see some favourable indicators at the end of the month and especially February and early March. However, getting into mid-March, I see a big correction. Mid-April is also really less optimistic. May is bullish,” Altman said. (Anna Irrera and Tom Wilson, Reuters)
Do give the article a read. It’s actually good. As always, price predictions are non-investment adcvise so always do your research.
Exchanges are running out of ETH
(By Samuel Haig, Cointelegraph) Data from Glassnode indicates that Ether reserves on centralized exchanges have not been this low since July 2018. As of this writing, only 7% of Ether’s circulating supply is held on exchanges.
Saunders interprets the data as suggesting an explosive bull-run into new all-time highs is imminent for Ether, stating “We all know what happened when demand outstripped supply of $BTC. It quadrupled in 90 days.”
Winklevoss Twins considering to take Gemini Exchange public
(By Olga Kharif, Bloomberg) “We are definitely considering it and making sure that we have that option,” Cameron Winklevoss, co-founder and president of the New York-based digital-asset firm, said in an interview. “We are watching the market and we are also having internal discussions on whether it makes sense for us at this point in time. We are certainly open to it.”
8 public companies with the biggest Bitcoin portfolios
(By Daniel Phillips, Decrypt)
Publicly traded companies
- MicroStrategy – 70,470 BTC
- It’s CEO Michael Saylor says he personally hols 17,732 BTC
- Galaxy Digital Holdings – 16,402 BTC
- Grayscale Bitcoin Trust – 572,644 BTC
- CoinShares – 69,730 BTC
- Ruffer Investment Company – 45,000 BTC
- 3iQ The Bitcoin Fund – 16,454 BTC
- CI Galaxy Bitcoin Fund – 15,570 BTC
- Galaxy Digital Large Cap Fund – 7,036 BTC
What else is happening
- Early innings of institutional adoption (Kevin Kang, Blockworks)
- (U.S.) Anchorage becomes the first federally-chartered Bitcoin bank (Nikhilesh De and Ian Allison, Coindesk)
- Fox Business host says all the Bitcoin in the world has been lost (Scott Chipolina, Decrypt)
- Ledger owners report chilling threats after 20K more records leaked (Turner Wright, Cointelegraph)
This article is published on BitPinas: Friday Focus: When Saturn Crosses Mercury
Kraken Daily Market Report for February 27 2021
- Total spot trading volume at $1.43 billion, down from the 30-day average of $2.1 billion.
- Total futures notional at $388.7 million.
- The top five traded coins were, respectively, Bitcoin, Cardano, Ethereum, Tether, and Polkadot.
- Strong returns from Cardano (+12%), Algorand (+12%), and Polkadot (+11%).
|February 27, 2021
$1.43B traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD
#####################. Trading Volume by Asset. ##########################################
Trading Volume by Asset
The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.
Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (February 27 2021)
Figure 2: Mid-size trading assets: (measured in USD) (February 27 2021)
Figure 3: Smallest trading assets: (measured in USD) (February 27 2021)
#####################. Spread %. ##########################################
Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.
Figure 4: Average spread % by pair (February 27 2021)
#########. Returns and Volume ############################################
Returns and Volume
Figure 5: Returns of the four highest volume pairs (February 27 2021)
Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (February 27 2021)
###########. Daily Returns. #################################################
Daily Returns %
Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (February 27 2021)
###########. Disclaimer #################################################
The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.
Inverse Finance seizes tokens, ships code: Launches stablecoin lending protocol
Shortly after culling its community of inactive members, one of decentralized finance’s (DeFi) strangest experiments is launching a new stablecoin lending product.
On Wednesday Inverse Finance revealed the Anchor Protocol, a money market built around DOLA, a protocol-native synthetic stablecoin. Based on “a modified fork of Compound,” in a blog post Inverse Finance founder Nour Haridy compares Anchor to Synthetix, which issues credit in the form of synthetic assets back by overleveraged collateral, and Compound, which issues credit in the form of crypto asset loans also backed by overleveraged collateral.
Ultimately, Haridy sees these models as providing the same utility.
“Lending and synthetic protocols both offer the same service: credit. Anchor brings the gap between them by combining them into a unified borrowing protocol.”
Anchor aims to accomplish this with a unique architecture that always treats the DOLA token as “$1 collateral that can be used to borrow other assets regardless of DOLA’s market conditions or peg.” Users deposit collateral, mint DOLA, and then can use DOLA to take out loans in other crypto assets or simply earn yield on DOLA.
Introducing Anchor & DOLA: Capital efficient lending, borrowing and synthetic assets (and much more)
Brought to you by Inverse DAOhttps://t.co/pOOkp8ECsR
Summary thread below ⬇️
— Inverse.Finance (@InverseFinance) February 25, 2021
“For over-collateralized borrowers and leveraged traders, we offer them a one stop shop where they can share their collaterals across their synthetic and token borrowing positions, allowing higher capital efficiency and higher leverage,” says Haridy.
Haridy envisions Anchor will use DOLA for protocol-to-protocol lending similar to Cream’s Iron Bank, for undercollateralized lending (long a prize in DeFi), and for the protocol to “lend itself” credit to pursue yield farming opportunities.
No dead weight
Perhaps more interesting than Inverse’s development at the protocol layer are the moves they made earlier in the week at the governance layer.
In what may be a DeFi governance first, On Saturday Feb. 20, Inverse community members put forth two governance proposals to seize INV — Inverse’s currently non-transferrable governance token — from inactive community members. On Thursday Feb. 25, the proposals passed, and not everyone was happy with the result.
— Knockerton (@knockerton) February 24, 2021
Haridy says that the timing was intentional — right as Anchor, a protocol that might generate revenue for the DAO, prepares to launch, the community sheds freeloaders.
“We needed to weed out our dead weight to reclaim some tokens for re-distribution to new active members soon. We also created an INV grants committee with the power to reward contributors and add new members to the DAO. Additionally, when free riders are removed, active members become more incentivized to contribute because they get a larger piece of the pie.”
While the unprecedented move may seem harsh, it’s also simply applying to governance the kind of aggressive style that put Inverse Finance on the map in the first place. By forcing token holders to participate under the threat of seized tokens, it’s helped with the development of Anchor as well.
“This is a collaborative effort among many DAO members starting from ideation to development to internal reviews and testing,” says Haridy.
The next step for Inverse will be getting Anchor off the ground, and preparing for a world in which INV becomes tradable. Haridy says there’s a growing consensus in the community for tradability. This would mean that the DAO would give up the power to seize tokens, which could alter Inverse’s community landscape.
Haridy, however, seems unfazed by the looming shifts, already preparing the next innovation.
“This will significantly change the existing incentives and may reduce participation. Fortunately, there’s some work on a new alternative governance model that’s been happening internally to address this problem.”
3 reasons why Reef Finance, Bridge Mutual and Morpheus Network are rallying
As new institutional and retail investors enter the cryptocurrency space on a daily basis, large-cap top performers like Bitcoin (BTC) and Ether (ETH) attract the lion’s share of investor’s attention as they are the well-known ‘secure’ blockchain projects.
Once these new investors get a taste of the mainstay cryptocurrencies and how to navigate the volatile markets, their attention soon turns to smaller cap coins as they search for the up-and-coming projects that could be the next big thing.
Currently, CoinMarketCap shows that there are 8,475 tokens and more are added daily. This makes it difficult to keep up with the latest developments and find solid projects with real-world potential.
With that in mind, here are some interesting projects that have been gaining strength over the past few weeks.
Morpheus Network (MRPH) is a blockchain platform focused on logistics and supply chain optimization through the use of its SaaS middleware platform which is integrated with emerging technologies.
Supply chain managers are able to use the platform to create a digital representation of their network as information collected is transformed into actionable data, with all steps in the supply chain being notarized on the Morpheus blockchain.
MRPH was trading at a price of $0.412 on Jan.15 before an influx of trading activity lifted the token more than 920% to a high of $4.44 on Feb.8.
The rapid rise in price was due in part to the fresh attention the project received from several well-known YouTube influencers and recent verifiable MRPH partnerships, such as China’s Qingdao Maple Leaf International Trading Co. and the possibility of a partnership with Coca-Cola in Latin America.
Speculations aside, the Morpheus platform currently has more than 100 integrations with industry-leading service providers including DHL, FedEx, SWIFT, Oracle, and Salesforce. With significant real-world partnerships and the attention of cryptocurrency influencers, MRPH has strong fundamentals and is likely to gain more attention from investors.
Bridge Mutual (BMI) is a more recent arrival to the decentralized insurance space but it has quickly garnered the attention of investors.
The insurance platform offers coverage for stablecoins, centralized exchanges and smart contracts. It also allows users to provide insurance coverage, determine insurance payouts, and recie compensated for taking part in the ecosystem.
BMI’s initial decentralized exchange offering (IDO) was conducted on Jan. 30 with a token price of $0.125 and it was first listed on Uniswap for $1.03. Since listing, BMI has rallied by 540% to a high of $5.46 on Feb. 3. Currently, BMI trades at $3.24 following the downturn in the market that began on Feb. 21.
Decentralized insurance has thus far been dominated by Nexus Mutual (NXM), but BMI’s arrival offers a fresh challenger to a field with growing demand due to the risky nature of investing in DeFi platforms.
Reef (REEF) is a Polkadot-based DeFi platform that aims to offer cross-chain trading powered by a yield engine and smart liquidity aggregator that enables automation of the exchange process.
One issue Reef developers hope to provide a solution for is high gas fees on the Ethereum blockchain that are currently making DeFi unusable for many community participants. The team also hopes to help connect liquidity pools from separate networks, avoiding the need for multiple accounts which can be difficult to keep track of.
Work on the project began in the second half of 2020 with the completion of its IDO on Sep.30. Following its listing on Binance and Uniswap in late December of 2020, REEF price bottomed out at $0.0067 on Jan.13 and has since increased more than 750% to a high of $0.054 on Feb.11.
DeFi remains one of the hottest growth areas in the cryptocurrency sector and Reef is well-positioned to capitalize on its continued growth. As the Polkadot ecosystem grows its user base and provides solutions that provide relief from high Ethereum transaction costs, cross-chain functionality projects like Reef stand ready to benefit as decentralized finance goes mainstream.
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