The Ethereum transaction fees reached a new all-time high following the latest DeFi craze YAM. A simple approval operation on some decentralized exchanges like Uniswap costs upwards of $13 on occasions.
ETH Gas Fees Through The Roof
The Ethereum blockchain is the underlying technology behind the majority of the DeFi-based projects. Investors wanting to allocate funds into such assets can do so by swapping ETH on platforms like Uniswap.
The multitude of emerging projects, as well as the increased usage of Ethereum, result in a clogged network. There are about 150,000 pending transactions at the time of this writing. Consequently, users who want their transactions to be prioritized are paying higher gas prices, driving the overall fees higher.
As per data from Glassnode, ETH fees have been surging continuously for the past several weeks. This resulted in miners receiving over 42% of their revenue from fees, which was another ATH.
Furthermore, information from Blockchair shows the rising fees as the average gas spent while transferring ETH tokens has just reached a fresh all-time high of over 0.02 ETH. This amount (worth about $8) has surpassed the previous record registered in December 2016 of 0.017 ETH.
Is It All Yam?
The most apparent reason for this particular surge could be attributed to the latest DeFi boom – Yam Finance. Marketed as an innovative experimental protocol with an elastic token (YAM) supply, it offered investors significant yields through a fair farming ecosystem.
The interest in farming YAM was so high that the total value locked reached over $500 million a day after launching. Moreover, the massive demand drove most prices within the DeFi sector higher yesterday.
Further data from Glassnode reveals that within the first two days of being live, over 8,600 unique addresses were holding the token.
The story of Yam Finance, however, had an unfortunate end. The financial experiment that started on August 11th crashed after an error in its rebasing mechanism that the team failed to address in time. The value of the token also tanked from over $100 yesterday to less than $1 today.
Although the situation appears gloomy, to say the least, the team has published a Medium post in which they outlined that YAM, despite its failure, has “brought together an immensely special community around YAM.” As such, they “plan to support the launch of YAM 2.0 via migration contract from YAM,” as long as they raise enough funds through a Gitcoin grant.
$205 Million ICO Project Filecoin Finally Sets a Launch Date
Filecoin was supposed to launch by the end of 2019. But delays—and a pandemic—pushed that back until next month.
- Filecoin is finally launching after several years of delay.
- It wants to be a “decentralized Dropbox”.
- But its creators, Protocol Labs, will have to fend off a miner mutiny and deal with competitors already on the market.
The distributed file hosting protocol, Filecoin, finally has a launch date for its mainnet. It’ll go live at block 148,888, which should be on October 15.
Filecoin works like this: instead of hosting your files on a cloud, which is essentially a warehouse full of computers owned by Amazon or Microsoft or Dropbox or whoever has the money to build a cloud-based file-hosting service, Filecoin’s protocol lets you host your files on other people’s computers.
Sometimes referred to as a “decentralized Dropbox,” users can end their reliance on third-party file-hosting services. This has perks: Dropbox, for instance, monitors the content on its platform; all of Filecoin’s information is encrypted and nobody can monitor it.
The launch would end several years of delay. In 2018, Filecoin estimated that its testnet (a test version of the blockchain) would go live at the end of 2018 and that the mainnet (the real deal) would go live by the spring of 2019. Much later, Filecoin said that the testnet would go live in spring, and that the mainnet (the real deal) would go live by the end of 2019.
It wasn’t until December 2019 that Filecoin launched its testnet. Then, it said that the mainnet would launch in March 2020. Now, a year later (almost to the day), Filecoin says its mainnet will go live next month.
There’s reason to believe that, this year, Filecoin will meet its expectations. It launched an incentivized testnet (a test version of the blockchain rewards users with real cryptocurrency), on August 24. This indicates that the network is at a late stage in its development.
But all could be for naught. In China, an angry group of miners and venture capitalists are threatening to fork Filecoin ahead of its launch. This is because they think they’ll be underpaid once the mainnet launches.
One main reason: On August 27, Protocol Labs published a paper stating that the mainnet launch could render up to 80% of miners unprofitable, since the protocol requests far more capital and opportunity costs than are available to most miners.
Judge rules in favor of Bithumb, crypto investor’s claims dismissed
Legal authorities in South Korea have ruled in favor of the crypto exchange, Bithumb, ruling that it need not compensate a crypto investor who filed a lawsuit against the exchange who claimed to have lost 470 million won (approximately $ 402,000), during the 2017 Bithumb hack, according to local news source, Yonhap.
The legal community, who did not disclose the name of the investor, said that since the user was unable to prove that his data was compromised during the hack, Bithumb would not be held liable for the investor’s lost funds. A basic translation of the ruling stated:
There is no evidence to admit that Mr. A’s [the crypto investor’s] personal information was included in Bithumb’s data that was allegedly stolen as a result of the attack [the 2017 hack].
The user, though, said in the complaint that he was holding Korean won funds on the Bithumb exchange and that the hackers behind the data breach accessed his personal information, and allegedly used his funds to buy ethereum (ETH). He further claimed that the hackers also converted the ETH into fiat via four separate transactions, according to the report.
AMBCrypto reported earlier on 4 September, three other crypto investors had also claimed that the hackers behind Bithumb’s data breach stole their funds in the 2017 incident. These users who filed a lawsuit against Bithumb expected the exchange to compensate them for their lost funds. The court, however, ruled in favor of Bithumb but held the exchange partially responsible in the September 4 hearing.
So far, the legal battles with Bithumb make this is the first case in Korea that a virtual currency exchange has been sanctioned.
Grayscale Buys Another $186 Million in Bitcoin: Approaching $6B Crypto Assets Under Management
Grayscale has enlarged its Bitcoin Trust, as 17,100 BTC were added to Grayscale’s funds at current prices, as the investment is worth approximately $186 million.
Crypto AUM Approaches $6 Billion
The total assets under management (AUM) for all Grayscale Investments crypto funds totaled $5.8 billion according to its last market report for the week ending September 25.
09/25/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) September 25, 2020
The Bitcoin Trust, or GBTC, is by far the largest fund, containing 82.75% of the total investment, or $4.8 billion. Following that is the Ethereum Trust, which has almost $784 million invested, or 13.5% of the total.
The rest is divided into smaller funds for Bitcoin Cash, Ethereum Classic, Litecoin, XRP, Zcash, and a couple more.
Grayscale buys shares for its investors so that they do not have any direct exposure to the underlying asset. Its BTC shares are currently trading at $11.23, and the Bitcoin holdings per share are up almost 46% so far this year.
The move signifies continued institutional interest in Bitcoin and crypto assets despite having corrected almost 20% since its peak this year. Grayscale also stated that there would be a huge wealth transfer over the next quarter-century, and the younger generation is interested in Bitcoin and crypto;
“$68 trillion will be transferred from older generations to younger generations over the next 25 years. It’s time to pay attention to the behaviors of the next generation of investors.”
Bitcoin Closes Bullish on The Weekly Candle
The weekend has seen Bitcoin grind slowly higher again in an attempt to reclaim the psychological $11K price level.
Analyst Josh Rager has observed the weekly candle close, adding that Bitcoin has up-trended for the third week in a row and remains bullish.
Weekly close looks good and don’t know why people continue to be overly bearish
Bitcoin got a short term pullback and -20% is nothing unusual
Bitcoin continues to uptrend and for the third week in a row has closed above the support zone of $9900 to $10,175
$11ks next pic.twitter.com/5YFwtEX4Nd
— Josh Rager 📈 (@Josh_Rager) September 28, 2020
A retest of the monthly high is also a sign that there are more buyers than sellers at the moment though the next level is critical, and BTC must hold the $11k zone to register further gains.
The $150 million KuCoin hack did not cause any significant sell-off over the weekend, which is a testament to how resilient cryptocurrency markets have become to such incidents.
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