At least 68 new Ethereum “whales” are said to have joined the network during a 30 percent price drop at the beginning of this month, according to data from crypto analytics firm Santiment.
Indeed, “Santiment’s holder distribution chart shows that as #Ethereum was falling, there was a spike in the number of addresses with millions of dollars in #ETH, colloquially known as whales,” Martinez wrote, cited by CoinTelegraph. “Roughly 68 new whales holding 1K to 10K $ETH have joined the network in the past 3 days.”
— Ali Martinez (@satoshilatino) September 6, 2020
And indeed, the price of Ether has dropped significantly over the course of the last week. After peaking at $486 last Wednesday, ETH dropped as low as $320 before recovering to roughly $346, where it sat at press time.
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Why is the price of ETH dropping?
The reason behind the drop has been cited as the increased level of network congestion that has increased gas prices and slowed transaction times.
Last week, Finance Magnates reported that increased levels of congestion on the Ethereum network have called the network’s future viability as the backbone of the DeFi ecosystem into question.
Indeed, Dave Parkinson, the Chief Operating Officer of Lamourie Public Relations, told Finance Magnates that “the number of DeFi projects attempting to run simultaneously on the Ethereum network has inevitably exposed the problems with scalability, the way CryptoKitties did a few years ago.”
At the same time, however, Ethereum founder Vitalik Buterin has said that the solutions to Ethereum’s scalability problems do exist–it’s just that people aren’t using them. “To those [saying that] ‘gas fees are too high’, my answer to that is ‘well then more people should be accepting payments directly through zksync/loopring/OMG’,” Vitalik wrote on Twitter.
“Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it.”
However, Vitalik has also previously said that up to a certain point, Ethereum users and developers will simply have to adjust to the fact that gas prices may be higher from now on.
“I do think that contract devs will have to change to adjust to the new reality; the things that you optimize for will be different than they were in the last few years,” he wrote on reddit.
“Particularly, minimizing the amount of state that any single transaction needs to read or access is going to become extremely important, but minimizing eg. the amount of computation or the amount of transaction data used (especially the data) will continue becoming less and less important.”
Bitcoin Price Analysis: BTC Breaks Long Term Trend As Tesla Ditches It
Bitcoin has broken out of a long 3 month range of $10,000. After Elon Musk announced Tesla will no longer be accepting BTC due to environmental reasons, BTC broke its major support of $55,000 and quickly fell over 15%. BTC is now is now in scary waters.
While looking at the chart, BTC has broken a long term trend that has been held for nearly 6 months. This is not a good sign as there is much FUD spreading about Bitcoins environmental impact. BTC must hold major support range of $46,500-$48,000 or we can experience a large fall to $40,000. As of now, the 150MA has held the price of BTC as it touched this moving average for the first time in 6 months.
Bitcoin Price Analysis: BTC/USDT 1 Day Chart
If BTC can break above $48,000 and hold, there will be a decent revival to $51,400. In the case that BTC holds this resistance, next up is $54,400. BTC has grown over 1000% in a year. With this being said, there is a good chance more downside might occur before BTC resumes a bullish uptrend.
While looking at the Stochastic RSI, we can see that strength has reset to oversold levels. If the strength can bound above 30, expect a revival to minimum $51,400. The regular RSI also confirms a small bullish upswing as it has printed a bullish divergence. This occurs when price makes a Lowe low but RSI makes a higher low.
BTC intraday levels
- Spot rate: $48,100
- Trend: Bearish
- Volatility: High
- Support: $46,400
- Resistance: $48,000
Standard Custody takes new route to ‘qualified custodian’ status
It’s the first digital asset firm to receive approval on a de novo application for a New York trust license.
The post Standard Custody takes new route to ‘qualified custodian’ status appeared first on The Block.
Standard Custody received its license to operate as a New York state-chartered trust on May 4, and it’s already making a play to gate-crash the institutional custody space.
Just days after its licensing, the firm announced the close of a $53 million Series B round for its parent firm, PolySign.
Cowen Digital Asset Investment Company led the round with a $25 million strategic investment. The two will also partner, with PolySign providing digital asset custody solutions for Cowen clients through its newly licensed trust arm, Standard Custody. Blockchain.com and Race Capital also participated in the round.
Through Standard Custody, PolySign is looking to fill a gap in the custody space. While many crypto firms are attempting to build all-in-one services, with exchange, brokerage and custody housed under the same roof, CEO Jack McDonald says Standard Custody plans to differentiate itself by focusing solely on custody-based services for institutions.
Though Standard Custody plans to expand its range of services, McDonald says it will stop short of being an exchange unlike others in the custody space.
“We think that ultimately the institutions that are wading into the space, more and more of the traditional institutional asset managers, are going to want to see a segregation of duties there between exchange activity and custody activity,” he said.
That could mean hedge funds, family offices, endowments and exchanges could make up its client base going forward, but not retail-facing activities. Others serving the retail market have expressed interest in Standard Custody’s services, mostly due to its recent licensure. It’s the first to get approval for a de novo trust application in New York, and that’s positioning it to emerge as a favorable partner for a variety of clients, according to McDonald.
To build out custody and escrow services, Standard Custody needed to be a qualified custodian. There’s more than one way to gain the distinction, but some fit better than others. To be a qualified custodian, firms can either become a registered broker-dealer with the Financial Industry Regulatory Authority (FINRA), a futures commodities merchant regulated by the Commodities Futures Trading Commission (CFTC) or you can be a federally or state-licensed trust bank.
For firms mainly looking to custody, it makes the most sense to become a trust but it’s recently become unclear how far a trust license extends outside state borders. The Securities and Exchange Commission (SEC) is currently seeking comment on how it should view state-licensed qualified custodians in the wake of a letter from Wyoming’s regulators. On the national level, Congress is still debating how much power the Office of the Comptroller of the Currency (OCC) should have to designate digital asset firms as national trusts and therefore qualified custodians.
Still, a New York trust license from the New York Start Department of Financial Service is the gold standard of state licenses. It’s the highest barrier of the state licensure frameworks, and also has more reciprocity than other states, meaning some other states recognize the New York trust charter and don’t require an additional license. Standard Custody is the first to receive a de novo approval, meaning it’s operating a new business as opposed to converting a previous entity like Gemini and Coinbase. That’s made it more attractive to businesses looking to set up shop in the U.S. without going through onerous regulatory frameworks.
“We do have a lot of interest in our technology from some of the more retail-oriented strategics out there and specifically wanting to tap our capabilities to business in New York and more broadly in the U.S.,” said McDonald.
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
How will ‘Ethereum killers’ affect the ETH rally?
Many in the crypto community didn’t anticipate this altcoin’s rally. Several questioned Ethereum’s move comparing it to its biggest competitor, Bitcoin. Looks like the evergreen debate of ETH vs BTC is going to resurface again. Can Ethereum actually flip Bitcoin anytime soon? This is the latest hot topic.
ETH, the world’s largest altcoin, has had an amazing start to this year. It commenced its journey at $720 on the charts to just under the $4000 mark at press time.
Ethereum’s market cap is now half the size of Bitcoin’s. The ratio between the assets is 0.08. Here’s a glimpse of the Flippening index.
The premier altcoin was the topic of discussion during a recent interview hosted by Unchained podcast with Jeff Dorman, the chief investment officer at Arca. The investor stated:
“With ETH almost hitting the $4k mark, other ‘Ethereum killers’ can’t just take its throne.”
He reiterated that the $4k mark directly pointed at the increasing institutional interest from different firms which were once only devoted to Bitcoin. He added:
“We are witnessing the early innings of institutional adoption beyond Bitcoin with Ethereum.”
In a note titled “The Rise of The Institutional Adoption of Ethereum,” Eliézer Ndinga, a senior research associate at 21Shares expressed his optimism towards the surge in the Ethereum market. Furthermore, a recent discussion, by Su Zhu and Hasu with CryptoCobain too portrayed a prevalent bullish ETH mindset, indicating that the bull case for Ethereum is stronger than ever.
With respect to the upcoming Ethereum developments, the CIO remained critical of some of them. According to him ETH was still in ‘the event and catalyst-driven bucket’ stage. Talking about the EIP-1559 proposal, he stated:
“…..speaking about the transition, it actually hasn’t happened yet. things can go wrong, can be bugged. It’s too early to say about its effects, but ETH will still rise even if there are issues with this transition.”
However, Dorman also stated that:
“A lot of applications that are built on ETH are seen by traditional investors as better places to put their money than Ethereum itself, it made more sense.”
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