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Crypto DEX Market Maker Profits Revealed by Analysts

News
Fri, 05/29/2020 - 12:25
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.

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.)