Grayscale Crypto Assets Have Surged by $1 Billion

Grayscale, a crypto asset management firm, has attained a new ATH for its AUM. In the past couple of weeks, the Crypto fund manager has been able to grow its AUM by adding another $1 billion.

On July 28, Grayscale posted a tweet that showed the company held nearly $5.1 billion assets under management. The investment firm mostly allocates funds to Grayscale’s trusts for Bitcoin and Ethereum.

While disclosing an expansion of almost $1 billion in AUM, Grayscale’s July 17 update represented a dramatic increase in its BCH trust, from $6 million to $12.8 million. Whereas, the firm’s BTC trust holds $782 million, ETH trust carries $174 million, ETC trust and LTC trust carry $12.7 million and $6.7 million, respectively. 

Only Stellar Lumens Trust’s assets under management dropped: $500,000 from $600,000.

Grayscale Halts Bitcoin Acquisition

Grayscale has expanded its profile by aggressively acquiring Bitcoin since the third BTC halving. The firm had acquired over 33% of all newly mined bitcoin in 2020. However, according to the recent report, the pattern of acquiring BTC has grounded for more than 3 weeks. 

GBTC usually files a Form 8-K with the SEC, declaring its acquisitions. Last time the firm filed the report on June 25. 

The Grayscale spokesperson said:

“There was an administrative quiet period for the Grayscale Bitcoin Trust private placement. The Trust is now open for subscription as of Friday, July 10 at 4:00pm ET.”

Compound (COMP) Token Continues Outperforming The Market After a 300% Rally

DeFi platforms and products offering decentralized finance are rapidly growing as a new type of crypto asset. DeFi is an open-source protocol developed on top of blockchain technology, it allows users to control their assets without employing the services of traditional financial sectors.

On June 15, Compound finally issued COMP tokens for trading. The digital currency experienced a massive surge getting to the top of the crypto list within days, currently ranked 24th by market capitalization.

Compound includes an algorithmic protocol for self-governing interest generation on the Ethereum network. COMP is an ERC-20 token that empowers investors to vote or to propose a variation to the system code.

Coinbase Pro Lists COMP Almost Instantly

This is perhaps the fastest listing on Coinbase ever. The token started trading on Uniswap but was announced on Coinbase only hours later.

In the past, Coinbase announcements always sparked price rallies of crypto assets, and Compound aims to exhibit the same behavior.

Vitalik Buterin, CEO of Ethereum, tweeted, “Decentralized finance should not be about optimizing yield.”

Eric Conner, another Ethereum developer, said, “Yield farming will allow open source projects with a working, in-demand product to monetize via token incentives” and called it an “important funding experiment.” 

It seems that people do not agree on whether DeFi should focus on optimizing yield or not. According to DeFiMarketCap, DeFi tokens had recently crossed the $2 billion thresholds, and the recent launching of Comp token had propelled the total market cap of DeFi tokens over $3 billion.

Bitcoin’s Short-Lived Attempt To Break $10,000 Not Over Just Yet

Bitcoin has done it once again today after a violent move towards $10,000. The digital asset managed to hit $9,992 on Binance but broke $10,000 on many exchanges including infamous BitMEX.

BTCUSD

BTC was clearly rejected from $10,000 again but the bears got no real continuation and the price has already recovered slightly. Bitcoin is currently trading at around $9,863 looking for another attempt to crack the crucial $10,000 resistance level.

What Would A Successful Breakout Look Like?

This is not the first attempt by the bulls to break above $10,000. The most recent try was on June 1st and eventually turned into the infamous ‘Bart Simpson’ pattern.

The problem with that breakout was the speed and volume. It happened within 1 hour and there was no continuation. Bitcoin started trading sideways without any intention of creating another leg up.

The trading volume was also relatively low considering Bitcoin broke $10,000 and traded as high as $10,380 on Binance. Such an important breakout should be accompanied by an enormous amount of trading volume.

What Bitcoin is doing now is actually healthier. If BTC continues consolidating for the next 12-24 hours before another leg up, the breakout above $10,000 will be far better. RSI levels will not be as overextended and everything will look more organic.

A Mysterious Ethereum 2.0 Upgrade Was Released On Medium

The Ethereum community is primarily looking at Ethereum 2.0 upgrade that intended to bring scalability in the network.

The debate regarding the substitution of network POW with PoS has commenced within the Ethereum community, since the launch of the platform.  The Ethereum 2.0 is considered to be a significant upgrade that will reshape the network consensus protocol to proof-of-stake.

Recently, Vitalik Buterin, CEO of Ethereum, has announced the thriving development and launch of multiple solutions Layer 2 on the network, stating that “the initial deployment of Ethereum’s layer two scaling strategy has *basically* succeeded.”

Ethereum 2.0 Launch is Very Close

As the crypto sphere is precisely anticipating the implementation of the Ethereum 2.0 upgrade, the person calling himself as “heyheeyheeey” has published a blog on a Medium that demonstrates the Ethereum 2.0 protocol solution.

The writer mentioned, the idea is a “design for an ETH2 staking solution on top of Argent, that is fast and simple to use so that users with less time, knowledge or skills can join from the beginning.” According to the blog, argent is a crypto wallet designed to manage solutions related to the DeFi network. 

heyheeyheeey also said,

“Staking is coming to Ethereum soon but it’s only for technical users and requires a large amount of Ether.” 

Although January 2020 was a formal launching date for the Ethereum 2.0 upgrade, it was shifted to the second quarter, and later repeatedly to the third quarter of 2020. For developers, July has been a spot date since the start of 2020. Crypto analysts are anticipating the launch of upgrades on the network’s fifth anniversary, a debut for July 30.

Coinbase Currently Holds Almost 1 Million Bitcoins

Coinbase, the US-based cryptocurrency exchange, is trying to drive the market as it holds a large amount of bitcoin.

According to the most recent analysis conducted by the Block’s Larry Cermak, approximately 3.08 million worth of bitcoin is currently held by the crypto exchanges on behalf of their users. This figure makes up almost 16.5% of the entire supply of 21 million.

The report also showed that on 9 February 2020, 3.43 million worth of bitcoin was held by exchanges, representing nearly 19% of the total supply of bitcoin. A lot of people have moved their Bitcoins out of exchanges, indicating that traders are more willing to hold now.

The report disclosed that Coinbase stands at the top as it holds almost 984,300 BTC in its wallets. Notably, followed closely by Huobi, Binance, OKEx, and BitMEX.

The figure comes from a mix of reliable sources including Glassnode, Peckshield, and BitFury.

Coinbase has recently announced the listing of MakerDAO (MKR), the second attempt to list the digital asset in the past year. Coinbase even launched an official campaign back in April 2019 for MKR but eventually pulled out of the deal.

Ethereum Serious Gas Cost Increase As The Network Is Expanding

The second-largest cryptocurrency by market capitalization has experienced a massive bull break in the past week, climbing from $204 to a peak of $247 in less than a week.

Ethereum is now under healthy consolidation approaching $240 again while its trading volume continues dropping waiting for the next big move.

ETH’s price surge has been followed by the expansion of its network through more addresses holding higher amounts of Ethereum coins.

Ethereum Transactions Cost More Than Ever

Ethereum fees are usually less costly than Bitcoin fees; however, in the past few weeks, Ethereum has seen a significant rise in its gas price reaching an all-time high.

The network’s overall gas has been rising since the start of 2020. The average transaction fee has surged from $0.08 to $0.41, according to an analysis from glassnode.

More than $1.6 million has been paid in ETH gas fees while most of the volume has been thanks to USDT.

A lot more Tether has been minted in 2020 and USDT has passed a 4$ billion market capitalization already. According to Coinmarketcap, around 40% of all USDT transactions are happening in the Ethereum network.

Unfortunately, volatility can also cause an abnormal increase in gas costs. On March 12, Ethereum had a massive crash and its gas cost went from $0.16 to $1.04 on the same day.

Most experts believe that Ethereum’s network usage is directly correlated with the gas price. Ethereum’s price itself doesn’t necessarily influence the cost of gas.

 

Maker Sees a 40% Price Increase Within Hours After Coinbase Announcement

MakerDAO (MKR) has experienced a huge surge 2 days ago after Coinbase Pro announced the listing of the coin again. The digital asset blasted through several resistances and traded above $500 and peaked at $550.

It is currently trading at around $460, a level that was not seen since the crash back on March 12 due to the coronavirus pandemic.

Coinbase Pro Second Attempt to Roll Out MKR

According to Coinbase, traders can deposit MKR on June 8.

Trading on our MKR-USD and MKR-BTC order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met.

According to ‘Pulse’, MakerDAO is currently driving the decentralization of finance and has revealed that the project holds over $480 million in locked funds.

Back in April 2019, Coinbase was trying to list MKR and even launched an official campaign stating that it would support the digital asset.

It seems that after traders didn’t deposit enough MKR to the exchange, Coinbase was forced to stop the listing procedure.

MKR is now finally in a weekly uptrend after trading sideways for the majority of 2018 and 2019. The digital asset has been trading between $350 and $800 for more than 2 years and it’s now in between this range again.

Grayscale $3.8 Billion Investment In Crypto Keeps Growing

Grayscale, a trust fund, has attained a new all-time height to its AUM. The firm now holds a total of $3.8 billion worth of cryptos under management in BTC, ETH, and numerous other cryptocurrencies.

It seems that Grayscale has actually bought around 33% of all Bitcoin mined between February 7 and May 17. The Bitcoin fund is now worth more than $3 billion at current market prices. Grayscale has been ‘aggressively’ buying Bitcoin and Ethereum in 2020 despite the recent crash on March 12.

Grayscale Clearly Looking To Diversify Its Portfolio

While the Grayscale Bitcoin Trust continues to obtain an enormous amount of Bitcoin, the report revealed that Grayscale’s Bitcoin trust has amassed other cryptocurrencies while maintaining more than $3.36 billion worth of BTC.

Moreover, Ethereum Trust Fund also has seen significant growth, as the firm finally decided to diversify its portfolio by adding several major cryptos. A major portion of the firm’s prevailing funds rests in the Grayscale Ethereum Trust, with around $289 million worth of ETH. Compared to the past few years the figures are quite impressive, Grayscale Ethereum Trust highlighted this surge, as Ethereum’s institutional demand continues to rise.

OKEx Accuses CMC of Ranking Binance Higher After Its Recent Acquisition

Earlier in April 2020, Binance CEO Changpeng Zhao showed the crypto community how to spend millions of dollars by acquiring crypto data aggregation website CoinMarketCap rumored to have cost $400 million. Currently, this is the most expensive acquisition within the crypto space.

CoinMarketCap recently launched new metrics to rank crypto exchanges on the basis of Web traffic rather than crypto volume or liquidity. According to these new metrics, Binance is now always ranked number 1.

In November 2019, Carylyne Chan, CEO of CMC, stated she did not support the ranking of crypto exchanges by web traffic.

Changpeng Zhao recently tweeted:

This ranking is currently heavily biased towards web traffic, not 100% accurate, but better than before. Will continue to iterate.

OKEx Considers CMC Ranking Biased

Alysa Xu, chief strategy officer of OKEx, called out CMC for its new ranking metrics, stating that they are heavily inaccurate. In a blog post, Xu said, “Fairness and justice are the basis of all rankings. CMC is dead, and we mourn together tonight.”

She additionally referenced consumer experience, administrations, in different capacities. 

Xu further states, “In the era of mobile internet in 2020, ranking with web parameters the list is either ignorant or shameless.”

CMC’s recent update made it clear that Binance is using CMC acquisition to squeeze out its competition. Some individuals believe that the exchange has acquired the market’s most used data site to help not only Binance but also the tokens of projects held by CZ’s friends.

All-Time High for CME Bitcoin Futures: $500 Million in Interest

The crypto community is excited about the most anticipated event in its history, the third Bitcoin Halving. Hours before the event, Bitcoin is trading at around $8,800 after the March meltdown. It seems that Bitcoin futures markets have seen similar excitement.

CME’s bitcoin futures market open interest has grown far quicker compared to other futures markets.

The Arcane Research, a cryptoanalysis firm, reported on May 7 that CME Group’s open interest for Bitcoin futures reached a new all-time high. According to the reports, the firm has hit more than $399 million in interest, surpassing the prior figure of $392 million in June 2019.

CME has recently seen a lot of interest from investors as the leading firms, Renaissance Technology’s flagship Medallion fund and US hedge funds, are intending to invest in bitcoin futures. Paul Tudor Jones, CEO of the Tudor Investment Corp. also highlighted interest in bitcoin futures.

The recent massive growth in regulated futures markets suggests growing institutional interest in bitcoin as an emerging macro hedge against money printing and geopolitical uncertainties,” said Qiao Wang, director of product at Messari and former quantitative trader at Tower Research. 

Rivals Leave the Bitcoin Future Market Open for CME 

In the U.S, CME rivals are facing a cold wind. For instance, the CBOE ceased its bitcoin futures service in June 2019 in the wake of low trading volume over more than a couple of years. Another competitor, Bakkt, is also facing similar issues and currently only covers around 5% of the U.S. bitcoin futures market.

As most competitors are facing issues in keeping the pace CME continues to accelerate faster than other exchanges.

The recent growth of open interest in our bitcoin futures contract demonstrates market participants are increasingly turning to CME Group to express views and manage their risk amid ongoing global uncertainty,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “We are committed to continuing to provide our customers with the risk management tools and robust liquidity they need to navigate this challenging environment.”