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

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Mon, 06/08/2020 - 14:20
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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
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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'.

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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.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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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.)