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Ethereum DeFi Is Kicking Into “High Gear”: Why This May Not Last for Long

Decentralized finance has been deemed one of Ethereum’s killer use cases over recent months. The concept of bringing financial applications into a blockchain format has been deemed innovative by many. Yet there are some that doubt that DeFi’s growth will last for long, especially without proper technological improvements. Ethereum DeFi Is “Kicking Into High Gear”: According to DTC Capital head Spencer Noon, there are five signs showing that “DeFi adoption is kicking into high gear.” […]

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Ethereum DeFi

Decentralized finance has been deemed one of Ethereum’s killer use cases over recent months. The concept of bringing financial applications into a blockchain format has been deemed innovative by many.
Yet there are some that doubt that DeFi’s growth will last for long, especially without proper technological improvements.
Ethereum DeFi Is “Kicking Into High Gear”:
According to DTC Capital head Spencer Noon, there are five signs showing that “DeFi adoption is kicking into high gear.” Noon conveyed those five trends and they are as follows: Decentralized finance “blows away” centralized finance crypto venues “on USD borrowing rates for BTC.”
The current supply of MakerDAO’s DAI stablecoin has reached an all-time high.
Rebalances on the TokenSets trading application has reached an all-time high, suggesting growing adoption.
The total locked value in the Synthetix application has “continued to rise.”
The liquidity on Balancer Labs has more than quintupled to $32 million since the start of the month. ” 5 pools have surpassed the $1M mark in liquidity and 30 pools hold at least $100k,” Noon added. 5 signs #DeFi adoption is kicking into high gear ⚙
— Spencer Noon (@spencernoon) June 12, 2020 A Plateauing Trend… At Least For Now
While there is this evidence, a top investor in the space thinks that Ethereum may “plateau” in the near term. He cites a confluence of factors like the slow block times and the relatively high cost of transactions:
“You just can’t build global scale trading systems for lots of users on POW chains. It just doesn’t work. High latency –> all kinds of negative second order effects. So I think for now we are near a plateau for DeFi – measured in ETH terms (not USD) – until the core latency problems are solved,” wrote Kyle Samani of Multicoin Capital. Multicoin Capital does have an interest in DeFi, making these comments more of a constructive criticism than a baseless attack.
DeFi could also begin to stall due to the financial facet of the crypto industry seemingly being focused on large holders, as opposed to the more common crypto “newb” or novice.
A prominent Ethereum commentator remarked that “DeFi is indeed a whale’s game,” referencing how it is only the large holders that have the potential to earn profits.
“$10 txs make no sense. $100 txs are quickly becoming silly. $1000 txs is becoming the new baseline. You probably need to be punching in the thousands for defi to be a somewhat logical playground,” he remarked. This was likely in reference to how DeFi transactions can cost in exccess of $5, making small transactions bascially illlogical.
There are technological improvements like Ethereum 2.0 and Optimistic Rollups that could amend these issues. Yet these improvements are still a while away from mainstream implementation in ETH infrastructure.
Featured Image from Shutterstock Price tags: ethusd Ethereum DeFi Is Kicking Into “High Gear”: Why This May Not Last for Long Source: https://bitcoinist.com/ethereum-defi-kicking-high-gear/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-defi-kicking-high-gear

Blockchain

Streamity: Leveraging Binance Smart Chain to Provide Myriad of Services

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DeFi has no doubt exploded in 2020 as the industry saw unprecedented growth all the way from March. In fact, data suggests that there’s currently around $11.2 billion locked in various lending protocols in the ecosystem.

While this may have somewhat surprised many, it does come as a natural and logical extension of the crypto field. After all, that’s the general purpose of cryptocurrencies – to separate state and money through an immutable and decentralized ledger.

Expectedly, though, many companies started popping up, providing various DeFi-based services in a range of fields.

Streamity is one of those projects. It leverages the blockchain of the world’s largest cryptocurrency exchange – Binance Smart Chain, to offer a myriad of financial, healthcare, sports, and science services.

What is Streamity?

As stated in the project’s official whitepaper, Streamity is an autonomous company with a community management system built on the Binance Smart Chain. It aims at providing services in the fields of science, healthcare, finance, education, and sports.

The team builds a range of different products that interact with the Binance Smart Chain and the protocol’s native token called STM.

As the interest in the entire field is only increasing, so should the demand for the STM token. The team holds that a community-led ecosystem with constant development and self-sufficiency would be very effective. Presently, the STM token is en route to this mission, and it’s created through a governance system that would actively guide Streamity forward.

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More About the STM Token

Apart from the above, Streamity’s native token, STM, enables its holders to have a direct impact on the development of the ecosystem through voting. Users can easily vote for each of the proposals. They can also delegate these rights by transferring the tokens to a third party.

The minimum amount of STM tokens needed to submit a protocol proposal is 1% of the total volume of all STM tokens.

In terms of distribution, 40% of the supply will go to the community members’ public reserve – this adds up to 39.6 million STM tokens. 40% will be in free circulation, which adds up to another 39.6 million, and, lastly, 20% is reserved for team members and employees – a total of 100 million STM.

When it comes to the profit distribution, 50% goes for replenishing the public reserve, 48% goes to team members and employees, and 2% goes to charity.

Now, it’s worth noting that the public reserve will be regularly distributed by voting for grants, new liquidity pools, management incentives, and whatnot.

To incentivize early liquidity providers, 10 million STM will be allocated as a liquidity replenishment program launched on October 12th, 2020. It consists of 5 pools, namely:

  • BNB/BTC
  • ETH/DAI
  • BNB/USDT
  • BUSDT/STM
  • BNB/STM

Various Services on Streamity

Tokenomics aside, Streamity is aimed at providing a range of different services, as mentioned above. With this said, here are a few of the projects that are planned and launched.

Right off the bat, the platform has seen a P2P cryptocurrency exchange called Streamdesk that guarantees the success of the transaction through the integration of smart-contract architecture and an APY of payment systems. It’s already launched, and a transition to BSC is also in plans.

Project Health is another platform created for online training and exercises of different types with a system for sports achievements and rankings. It should be launched in the third quarter of 2021.

Duel Control is an app oriented toward entrepreneurs, middle managers, and managers. It aims at improving the development of managerial competencies, the psychology of influence, strategic thinking, and so forth. The platform should be launched this month.

The Talent Exchange Network is a platform that’s already launched, and it represents a social network with ranking systems of organizations and users, the values of which are increased through proper education.

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Source: https://cryptopotato.com/streamity-leveraging-binance-smart-chain-to-provide-myriad-of-services/

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Bitcoin Could Register Second Highest Monthly Close in History: Peter Brandt

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Bitcoin has been on fire during the past 48 hours, thanks to the ‘PayPal crypto on-ramp launch news.’  What is even more interesting to note is BTC’s future market outlook.

Veteran trader and analyst Peter Brandt said that the cryptocurrency is about to log its second-highest monthly close since it started trading first. Brandt says this is a direct result of institutional involvement.

Bitcoin Poised To Log Second Highest Monthly Close

An accomplished forex and stocks trader with more than 40 years of experience under his belt, Brandt always delivers unbiased trading insights for bitcoin and other cryptocurrencies. And the community greatly respects him for the same.

The latest BTC rally made him evince another trend that will significantly boost the confidence of bitcoin bulls. According to Peter, bitcoin will successfully register its second-highest monthly close if it maintains its momentum through October.

BTC Rallying On The Back Of Institutional Involvement

Also, the veteran trader attributed this rally to the increasing involvement of institutions. What he meant is that in 2017, institutional investment in the bitcoin market was not significant. But this year, it’s different. Market analysis firm Skew’s latest update on surging open interest in the bitcoin options space corroborates this claim.

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Although there is $1.8 billion worth of unsettled BTC options contracts on Deribit, CME options traders have exchanged contracts worth $441 million. Given the sheer high number of hedge funds and institutional investors that the platform serves, this is pretty much a decent testimony of the degree of bitcoin’s maturity as an asset.

A Brief Pullback Is On The Cards However

Peter Brandt’s bullish outlook for Bitcoin may foment some serious buying. Still, a reputed TradingView analyst named ‘Wyckoffmode'(WM) observed that BTC would undergo a brief pullback before rallying up higher.

Backing his claim through technicals, WM said that on a 12-hour timeframe BTCUSD chart, the Relative Strength Indicator (RSI) ‘White Energy’ line after touching 56, is heading for levels near 50.

This might cause the cryptocurrency to log a brief pullback after such a face-melting rally to $13,000. According to WM, ‘a look at the current levels of the Red RSI and White Energy in the 24h, 2-Day, 3-Day, and 4-Day time frames’ further reinforces the ‘pullback scenario.’

The trader says that bitcoin will experience sustained ‘upward pressure’ before the White Energy line travels to the aforementioned 50 level. This is a historical trend that is observable across the entire bitcoin price chart over multiple time frames.

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Source: https://cryptopotato.com/bitcoin-could-register-second-highest-monthly-close-in-history-peter-brandt/

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Not Wasting Time: PayPal Reportedly Considering to Buy Crypto Companies, Including BitGo

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  • PayPal, the world’s largest online payment processor, is reportedly exploring acquisitions of cryptocurrency-oriented companies.
  • Citing sources familiar with the matter, Bloomberg reports that this includes the popular Bitcoin custodian BitGo.
  • The sources also revealed that PayPal has been in talks with BitGo, and it could potentially reach a deal “within weeks.”
  • However, the negotiations could still “fall apart,” and, in this case, PayPal could choose to buy other companies.
  • At the time of this writing, PayPal and BitGo haven’t provided official statements on the matter, and it’s not clear how much would the payment processing giant pay for the acquisition of BitGo, should the deal move forward.
  • This comes a day after PayPal announced that it would enable its customers to buy, sell, and hold Bitcoin and other cryptocurrencies on its platform.
  • As CryptoPotato reported, the company is “working with central banks and thinking of all forms of digital currencies.”
  • It’s worth noting that PayPal will initially allow US-based customers to opt in to buy and sell crypto within the “coming weeks.” Accounts registered in other countries should be able to do so in the first quarter of 2021.

Featured image courtesy of PYMNTS

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Source: https://cryptopotato.com/not-wasting-time-paypal-reportedly-considering-to-buy-crypto-companies-including-bitgo/

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