Crypto DEX Market Maker Profits Revealed by Analysts

News
Fri, 05/29/2020 - 12:25
article image
Vladislav Sopov
Investor and advisor Qiao Wang from Messari, a top-level crypto analytical team, has revealed his estimate of the profits for market makers on decentralized exchanges
Crypto DEX Market Maker Profits Revealed by Analysts
Cover image via stock.adobe.com
Contents

Qiao Wang, Head of Product of the Messari analytical group, doubts the institutional interest in market making on decentralized exchanges

Too early for institutions

According to Mr. Wang, the yearly profit of market makers who work on decentralized exchanges (DEX) is estimated at $1M.

This sum is definitely not of much interest to institutional traders. However, there’s a segment of the crypto community that might find this opportunity to be a very lucrative one.

Mr. Wang highlighted that there’s room for progress for small teams. It takes only a couple of ‘guys who know how to code’ to grab these millions, the analyst concluded.

Messari’s Head of Product foresees a bright future for automated market making executed through trading bots. Alongside that, institutional adoption of decentralized market making won’t come soon.

Broken dreams of DEXs

In the discussion below the tweet, some traders admitted that market making on DEXs still faces many challenges, i.e. high gas fees, network congestion and tread cancellations.

API and liquidity issues are also mentioned as an obstacle for decentralized trading. This complex of demerits makes overall interest in trading on DEXs insignificant.

For example. The world-leading exchange ecosystem Binance, which also offers a decentralized trading service, Binance DEX, repeatedly reports the collapse of decentralized trading volume.

According to one of the latest Binance Global Markets reports, Binance DEX is 476 times less popular than its centralized brother.

article image
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

News
Fri, 01/15/2021 - 18:02
article image
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
Cover image via stock.adobe.com
Contents

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.

article image
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.)