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Bitcoin (BTC) Dominance Crucial For Ethereum-Based Products, Says DeFi Founder

News
Mon, 06/08/2020 - 14:20
Vladislav Sopov
Bitcoin (BTC) dominance figures show how much of the total crypto market cap is comprised of Bitcoin (BTC). But this metric is of importance for more than BTC holders
Bitcoin (BTC) Dominance Crucial For Ethereum-Based Products, Says DeFi Founder
Cover image via stock.adobe.com
Contents

Kain Warwick is a founder of Synthetix, a multi-asset platform that provides cryptocurrency exposure for real-world goods. He gives an explanation of the role of Bitcoin (BTC) dominance cycles in the progress of decentralized finances.

Searching for the money flow

Mr. Warwick supposes that Bitcoin (BTC) dominance moves can indicate an inflow of money into DeFi products. According to him, such processes demonstrate 'cycles and epicycles'.

Bitcoin (BTC) dominance is crucial for DeFi
Image via Twitter

When BTC dominance shrinks, the profits flow into altcoins. It occurred for the first time in 2017 when the money came from Bitcoin (BTC) to Ethereum-based ICO products.

These gains were erased during the tremendous crypto winter in 2018, but in mid-2019 liquidity returned from ETH/BTC into emerging DeFi tokens. During Q4, 2019 and in early 2020, money from these projects passed to another wave of low-cap DeFi products.

Mr. Warwick named Maker (MKR), Chainlink (LINK), Augur (REP) and Synthetix Network Token (SNX) among the beneficiaries of this process.

On the verge of the third cycle

He believes that these cycles will repeat. The last upmove in the Ethereum (ETH) price made many large-cap DeFis perform very well, but a significant amount of money is going to low-caps in this segment. So, this may bootstrap interest in Loopring (LRC), Aave Protocol (LEND), Gnosis (GNO), Ren (REN) and others.

Then, this stream of money can return to Ethereum (ETH) directly or be disseminated between tokens like MKR.

Mr. Warwick also mentioned two groups of solutions that are the most prospective of all of the blockchain-based products: 

What is pretty clear is that outside of the macro market insanity the only real things going on in the space are happening on Ethereum in both DeFi and scaling. And people are finally noticing

Along with that, he warned that the modern crypto market is much more complicated than in 2017 so those who use old patterns may be 'steamrolled by the wave of DeFi enthusiasts'.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)