Here is our first newsletter covering about latest Crypto FUD by China, Coinbase growth, BTC and ETH price action and Liquidity Mining Incentive.
Good Morning FinTech, 25 September
Here is the update of all the major news surrounding crypto last week:-
1.1 BTC Price action- Evergrande & China FUD
As most analyst suggested and with the news of Evegrande BTC price dipped below 40k$ region this week, with all the risk-on markets reacting to the issue it is normal to see a correction of this scale in the highly volatile space of crypto.
yet again towards the end of the week(sept 24th) social media picks up on a weeks old(sept 15th) Chinese regulatory ban on bitcoin and the price reacts.
China being against bitcoin is nothing new but as always the news manages to push the price of bitcoin down.
1.2 Whale "buys the dip"
Lets be real, we do know that Whales act with more information than we do
"Do Not Listen to What They Say, Look at What They Do"
with on-chain data looking at what the whales are doing is quite possible
The third largest bitcoin whale has bought the dip, buying 321 at an average of $40,500/BTC and another 408 BTC consecutively during this week amassing over 112,000 BTC (just short of $5B with todays BTC price)
reference wallet address:1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ https://www.blockchain.com/btc/address/1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ
Could this mean the dip is over? at least we know that the whales think so...
1.3 BTC ETF
The much awaited Bitcoin futures ETF might be finally on its way, according to Bloomberg’s Mike McGlone, the SEC could approve a Bitcoin futures ETF as early as this October. There has been several attempts over the years to get a Bitcoin ETF approved however has not been successful so far.
Why would it be approved?
Countries such as Canada amongst other nations have already approved a BTC ETF and has attracted investors such as Cathie Wood’s ARK Invest.
And why this would be great news for BTC?
This will pave the path for a lot of investors to get more exposure to Bitcoin.
Bloomberg’s Mike McGlone also suggest that this could pave the path for BTC to Reach the Predicted price of a $100K/BTC
2-Ethereum
With $BTC dipping below $40K we were able to see $ETH drop below $2700 before recovering to $3K+
Will this be the last time we see ETH under $3000?
Quite probably...
What is next for Ethereum?
At the moment ETH is having high and unpredictable gas fees
While we wait for ETH 2.0 to solve this issue, The layer 2 scaling solution Arbitrum with its optimistic rollup launches its mainnet (Arbitrum one) and attracts $2B in TVL within weeks.
This is also the scaling solution selected by reddit for their Ethereum-based community point system over many other options. What is Arbitrum? read more on:https://coinmarketcap.com/alexandria/article/what-is-arbitrum
3-Liquidity Mining Incentives
The new trend for attracting crypto users into an ecosystem is no longer the fastest network, the lowest fees or the most decentralized network, it is how much the users are incentivized to use the ecosystem. The trend setter being polygon which announced a liquidity mining event of a $100M in April with the DeFi giants Aave and curve.
This made it even profitable to borrow assets with a net profitable rate (getting paid to borrow),sending the total value Locked (TVL) on polygon to $10B and $MATIC soaring 500%+ within a span of a month.
The space was quick to adapt and we are seeing Avalanche following this trend and announcing #avalanceRush program a 180m$ DeFi incentives (including for Aave and curve) program which also sent the price of $AVAX soar 300%+ in a span of a month even before Aave or curve adds support to Avalanche
For more about avalanche rush: https://medium.com/avalancheavax/avalanche-foundation-announces-180m-defi-incentive-program-d320fdfafff7
On-chain data clearly shows that people are migrating their assets over from other networks to networks which are incentivizing the users
Fantom and Celo announces 370M FTM and $100M incentive programs and joins the trend.
the final question is, will the users leave the network when the incentive schemes runs out or will they choose to stay in the network after trying out ?
4-Coinbase for Institutions
Coinbase launches its institutional grade trading platform Coinbase prime which was in its beta stage since may
This will allow institutions better access to features including but not limiting to;
easy transfers between cold storage and trading balance.
better liquidity with access to more than 10 different venues.
Smart order routing to get the best price
minimum slippage and price impact for large scale investments
and also access to crypto-native features such as staking and governance.
for more detailed information about Coinbase prime:https://blog.coinbase.com/coinbase-prime-is-launching-with-updated-capabilities-5b1f6e7b620a
Please do share your valuable feedback about this newsletter in comments below:-
Very useful. Helping to understand market even better. Thanks for sharing. ☺️
Very informative news letter. I can see you have been putting a lot of time and effort in it. I hope your readers can understand how hard you are trying to basically spoon feed them. Lots of love and respect.