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Powering DeFi market: Overview of the top 5 DEXs by total trade volume

As trading volumes across many top DEXs continue to soar, 2020 is shaping to be the year of DeFi tech.

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One of the most groundbreaking advancements to come out from within the realm of blockchain technology is the concept of a decentralized exchange. In its most basic form, a DEX can be thought of as a cryptocurrency buy/sell platform that allows its users to facilitate monetary exchanges without the need of any assets having to make their way to the exchange itself, reducing the risk of thefts, hacks and other human-related errors. Furthermore, owing to their intrinsic design, DEXs are better equipped to prevent issues such as price manipulation, trade volume inflation, etc.

Similarly, from an operational standpoint, it’s important to understand that there are essentially two types of DEXs. The first one simply matches the orders of various buyers and sellers — with the entire process carried out on-chain. Examples of this type of DEX include EOS’ Dexeos and Newdex.

The other type of DEX makes use of funding pools rather than order books, whereby their operations closely mirror human-machine transactions. Uniswap is widely considered to be the flagbearer of this kind of decentralized exchange, especially since its launch has helped spur the emergence of this market as a whole.

DEXs gaining ground

To put the popularity aspect of decentralized exchanges into perspective, it is worth noting that the DEX sector as a whole raked in a combined trade volume of $2.4 billion in 2019, according to Dune Analytics. As a result, a number of the world’s top crypto exchanges such as Binance and OKEx also ended up launching their very own decentralized counterparts.

Data for August 2020 alone shows us that DEX platforms witnessed more than $11.6 billion in monthly trade volume. Not only that, the aforementioned numbers clearly showcase a 152% month-over-month increase when compared to July’s total trade volume of $4.4 billion.

Related: Uniswap and automated market makers, explained

In this regard, it is worth noting that Uniswap alone reported a 283% volume increase in August, hitting a total volume of $6.7 billion and breaking its previous record, set during July, in less than 14 days’ time. Not only that, thanks to the above-mentioned surge, on Aug. 30, Uniswap’s trade volume surpassed that of Coinbase Pro.

Most popular DEXs

Uniswap

Uniswap is a fully decentralized protocol that has been devised atop the Ethereum blockchain. It allows for automated liquidity and is currently the largest decentralized exchange by trade volume.

In terms of its operability, the platform is extremely easy to use. To start things off, users need to install a Metamask extension since all monetary transactions will occur via the decentralized wallet. Once done, users need to click the “Launch app” button and then they will be automatically guided to the “Swap/Pool” page.

Users are then required to connect their Metamask wallets to Uniswap and then facilitate their desired transactions. The entire process is streamlined and the output tokens are directly received in a soft wallet without the funds ever making their way through the exchange.

While the exchange is fairly simple to use, it might be a bit challenging for first-time users to find their way around the platform. Also, Uniswap’s general user interface and overall design leave room for improvement. That being said, most of the issues related to exchange are minor and should not cause users any major inconvenience.

According to data available online, Uniswap’s recorded transactions were worth $5.2 billion over the course of the past seven days. Additionally, during this time period, it was found that a whopping 72% of all DEX-based trade activity took place on the platform. At press time, Uniswap houses a total of 91,000+ active traders.

Lastly, it is worth noting that since Aug. 27, Uniswap’s daily trade volume has been on the rise, gaining ground from $181.9 million to a whopping $1.01 billion, thus showcasing a fivefold value increase.

Curve 

A relative newcomer to the DeFi space, Curve is basically an exchange liquidity pool built on the Ethereum blockchain and designed for fast, hassle-free stablecoin trading. The platform has made a name for itself over the last few months, thanks in part to the meteoric surge of the Compound governance token, COMP. In fact, as Cointelegraph reported earlier, the platform’s daily trade volume increased by 50 times between June and July.

To start using the platform, users are required to connect their wallets (Metamask, Ledger, Trezor, Dapper, etc.) to the app and facilitate their desired token swaps by using the “From/To” tabs on the home screen. However, Curve has an archaic interface, possibly on purpose, resembling a website from the early 90s. As a result, users may have to get familiar with the platform first before they can start swapping their tokens.

Furthermore, it’s worth noting that Curve is a liquidity aggregator, which means it seeks to increase the creation of its liquid assets by offering users a variety of incentives. In this regard, Curve employs a novel market-making algorithm that helps bolster the liquidity of its markets at all times, unlike traditional decentralized exchanges that are designed to essentially match buy/sell orders.

Curve accounts for a formidable market share and boasts of a weekly trade volume of around $1.15 billion. Also, the total number of unique addresses that traded on the platform over the course of the last seven days currently stands at 1,424. Lastly, during the month of August, Curve posted an impressive trade volume of $1.86 billion.

Balancer

The Balancer protocol is designed to help users swap their ERC-20 tokens in a trustless way across all of the platform’s native liquidity pools. In terms of its operability, Balancer is also designed to work in a similar way to Curve. However, its overall user interface is arguably more sophisticated and aesthetically pleasing. To start with, users are required to connect their hard/soft wallets to the app, after which Balancer makes use of a smart order routing protocol to route users’ trades to the pools that provide the best rate possible.

In layman’s terms, one can think of Balancer’s native monetary pools as being self-balancing index funds, which incentivize users for increasing the platform’s liquidity instead of charging them a fee.

Since entering the DEX market, the platform has quickly garnered a following with its native associated token, BAL, even recording gains of 118% during the last 30-day stretch.

Additionally, over the course of the last seven days, the exchange has recorded a total trade volume of $384 million while displaying a market share of just over 7%. Lastly, during the month of August, Balancer recorded daily exchange totals ranging between $40 and $79. However, on Aug. 22, the platform hit its all-time high volume of $190 million.

0x

Much like many of the other entries on this list, 0x, too, is an open protocol that is designed to facilitate low friction peer-to-peer digital asset exchanges in a totally decentralized manner, running on the Ethereum blockchain. What distinguishes 0x from the rest is the fact that it allows users to save on peripheral gas fees (while reducing the network load) by making use of an off-chain ordering relay system. Additionally, 0x also requires users to connect their wallets to the app and then perform their desired token swaps.

That being said, 0x provides customer support in real-time in case users face any operational difficulties. All users have to do is simply drop the support team a message via the “Query” tab located at the bottom right side of the screen.

In terms of the platform’s recent monetary performance, 0x’s weekly trade volume currently stands at the $183-million mark. Similarly, the exchange currently has a market dominance ratio of 2.86%, as well as an active trader pool of over 500 individuals.

Kyber

The Kyber Network has been around since the advent of DeFi tech and can be thought of as a simple tool that enables users to facilitate instant token swaps without the need of any intermediaries. The platform allows vendors to receive various types of crypto while designed to be fully compatible with a vast array of smart contracts, even though the system is primarily Ethereum-based.

The platform is trustless because it does not require any monetary transactions going through its native interface. Instead, users can directly connect their wallets to the app and process token swaps in a totally decentralized fashion. In addition to various DApps, vendors and wallets, the Kyber protocol is also designed to readily integrate with other DeFi exchanges, such as Uniswap, allowing them to share their liquidity pools.

Kyber recently announced that it now allows users to buy/sell a cross-chain Ethereum-compatible token that can enable crypto enthusiasts to gain access to the burgeoning domain of cross-chain decentralized finance.

At press time, Kyber has a weekly trade volume of $113 million along with a solid active trader base consisting of over 2,000 people. Over the course of August, the platform’s daily exchange volume has consistently hovered around the $11-million mark. However, on Aug. 12, this number jumped to an all-time high of $24 million.

Source: https://cointelegraph.com/news/powering-defi-market-overview-of-the-top-5-dexs-by-total-trade-volume

Blockchain

What Coinbase Going Public Could Do For Crypto

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Messari Values Coinbase At Nearly $30 Billion As The Bitcoin Exchange Prepares To Officially Go Public

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Coinbase, the biggest US-based cryptocurrency exchange has disclosed its detailed plan for the upcoming direct listing on the stock market by Nasqad. Coinbase submitted an S-1 report to the US SEC outlining key information such as revenue and ownership structure for investors to carry out due diligence on the company.

According to the document, Coinbase has 43 million verified users and an average of 2.8 million transactions per month. In 2020, the company returned a net income of $322 million from total revenue of $3.4 billion, with transaction fees constituting 96% of the net revenue.

Coinbase which makes most of its profit from bitcoin and Ethereum transactions, also saw a 56% increment on its $1.1 billion direct revenue for 2020 compared to $482 million in 2019.

The company incurred a total of $880 million in expenses for 2020, most of which went to sales, general administrative expenses, and research and development. Transaction reversal costs miners fees, staking fees, and verification expenses constituted $135 million of the total expenses,

Coinbase also made $533 million in 2019, against $579 million in operational and development costs, leading to losses totaling $46 million.

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Coinbase to Usher Crypto’s Real Mainstream Adoption

The report indicates that much of the revenue for 2020 was generated from institutional investors’ activity in the crypto market but with higher retail activity in Q4 2020 than in previous quarters.

Coinbase’s debut as the first publicly listed crypto-exchange in the US is estimated to be one of 2021’s largest new listings of the tech industry. This will have a huge positive impact on the crypto market investors and blockchain technology backers.

According to the crypto trader and analyst Rekt Capital, the public listing will officially open up cryptocurrencies to the public.

“Coinbase going public is another way of saying crypto is going public.”

Coinbase Becomes Decentralized

The update comes a month after Coinbase chose Nasdaq as its direct listing avenue on February 1, following a secondary Coinbase stock launch by Nasdaq Private Market on January 25.

Now that Coinbase has moved to a remote-first environment without headquarters in any city, the company is referring to itself as a decentralized company. Up to 95% of Coinbase employees have the option to work at home, in a post-office world setting, or a mix of both.

“since we’ve made the decision to go remote-first we’ve decentralized ourselves; even after people can safely return to offices, the executive team has no plans to be “in-office” on a regular basis,  and none of them currently live in San Francisco.”


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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/what-coinbase-going-public-could-do-for-crypto/

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3 types of bitcoin investors that ‘should be concerning to central banks’

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With 106 million global crypto users as of January 2021 and a crypto population that has now surpassed 100 million, a financial expert noted that central banks must now be wary of certain crypto investors. In a new seminar held by the University of Pennsylvania’s Wharton School, part-time professor, Mohamed El-Erian, who is also Chief Economic Adviser at Allianz said that Central Banks should be careful about three specific groups of Bitcoin investors. 

He explained that while the first group of people is investing for positive reasons, the second is motivated by negative factors to adopt Bitcoin. The positive investors “truly believe Bitcoins will become money ”or “a currency as opposed to a commodity.” 

However, El-Erian cautioned that central bank authorities must keep watch on those “being pushed out of everything else and pushed into Bitcoin”, forming the second group that the expert earlier mentioned. 

They look to Bitcoin in order to protect themselves from government investment options, which some investors believe has been “artificially jacked up.” Interestingly, a recent survey found that people aged over 55 opted for Bitcoin due to a fear of currency devaluation – as central banks have historically printed more money to boost economies. The expert said that such people are forced to invest in the asset because “they don’t know how else to mitigate risk.” 

Do you really want to invest in a government bond whose price has been? So ‘let’s diversify, let’s put 2% into Bitcoins.’

El-Erian further categorized “speculators” as the third type of investors, who face profits and losses albeit “in a single day.” According to him, all three types of investors “should be concerning to central banks.”

When it’s trading above $50,000, all three messages are problematic for central banks. So, we are going to see central banks look increasingly at cryptocurrencies as something they should be involved in, and not just stand on the sidelines.


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Source: https://ambcrypto.com/3-types-of-bitcoin-investors-that-should-be-concerning-to-central-banks

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Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high

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Non-fungible tokens (NFT) are rapidly becoming a focal point of the cryptocurrency market as evidenced by stories of millions of dollars being raised in minutes for one-of-a-kind tokenized art pieces and rare collectibles that traders rush to get their hands on. 

One project that has been benefiting greatly from the resurgence of NFTs is Enjin Coin (ENJ), which broke out to a new all-time high of $0.67 on Feb. 25 following its listing on the Crypto.com exchange as well as the launch of spot and perpetual futures trading on FTX.

Data from Cointelegraph Markets and TradingView shows that ENJ rose 52% from a low of $0.438 on Feb. 24 to a new high of $0.67 before experiencing a pullback to its current price of $0.611.

ENJ/USDT 4-hour chart. Source: TradingView

A scroll through the project’s Twitter feed details numerous recent partnerships and integrations that have helped fuel Enjin’s price rise.

Minecraft is one of the most notable integrations for the Enjin ecosystem and users are able to earn special NFTs that unlock secret games inside the video game series.

The platform has also benefited from joining forces with the growing ecosystem of the Binance Smart Chain (BSC), which has launched an NFT educational campaign that Enjin will be part of.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for ENJ on Feb. 24, several hours before today’s price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of the historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. ENJ price. Source: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ score for ENJ reached a high of 70 on Feb. 24, shortly before the price began to spike to a new all-time high on Feb. 25.

The growing popularity of the NFT space, along with numerous big-name partnerships has Enjin well-positioned as the current bull market cycle progresses into 2021.

Its recent integration with the BSC provides a way to escape high fees on the Ethereum (ETH) network and could bring a new wave of activity to the Enjin ecosystem.

Source: https://cointelegraph.com/news/exchange-listings-and-nft-boom-back-enjin-s-enj-52-rally-to-a-new-high

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