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Patientory Stiftung Joins The Enterprise Ethereum Alliance

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This Bitcoin metric is reaching its historical reversal levels

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Bitcoin and Ethereum have shared the center stage at regular intervals this year. In fact, some would argue that Ethereum has run more miles and gotten more attention than BTC this year. Such a scenario was playing out in the markets as well. Over the course of certain bullish spells in 2020, most particularly during July-end, Ethereum led the market with its rally before Bitcoin joined in 48 hours later. Such a brief spell was also observed during the last week of May.

However, at the time of writing, the going was getting tough, and the collective market was expecting ‘tough’ Bitcoin to lead them out of this drawdown period. Such expectations can be highlighted by observing the charts below.

Source: Skew

As can be observed from the chart, the 3-month Ethereum-Bitcoin Implied Vol Spread was dropping after peaking in mid-August. It means that the market is currently expecting Bitcoin to bring back the volatility, rather than keeping their hopes on Ethereum. This is interesting since, for most of 2020, the ETH-BTC Implied Volatility had witnessed a lead from Ethereum’s end, especially with respect to bringing price action to the market.

However, with the market reaching a probable local bottom, all eyes are now set on Bitcoin, with most expecting BTC to drive the market’s valuation.

Source: Skew

The Realized Volatility charts suggested a similar narrative. With the 3-month ETH-BTC realized spread on an incline, it is clear that BTC is already becoming more authoritative in the digital market space. Such a situation will definitely allow market correlation to climb over the next few months, with BTC possibly calling the shots in Q4 of 2020.

Bitcoin ATM Implied Volatility reaching historical reversal levels

Source: Skew

With the limelight firmly placed on BTC, the market might not have to wait long before BTC starts pulling the strings again. The market narrative is supported by the fact that BTC’s 1-month ATM Implied Volatility was at 49%. For Bitcoin, the IV going below 50% has always been a sign of a reversal in the market. In light of its present levels, the stage is seemingly set for Bitcoin to project strong movements any time now.

However, it would be better if the Implied Volatility drops further over the next few weeks to attain a strong bottom, one that will eventually lead to a stronger rally. Altcoins can do a lot when it comes to bringing new users into the space, but at the end of the day, the market will always look up to BTC to solve its bearish dilemma.

Source: https://eng.ambcrypto.com/this-bitcoin-metric-is-reaching-its-historical-reversal-levels

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Crypto ETP Trading Volumes Plunged 74% Over the Last Month

Cryptocurrency exchange-traded product (ETP) trading volumes have plunged over 74% in the last month, as the prices of these products have also been dropping. According to cryptoasset data aggregator CryptoCompare, in its newly launched The Digital Asset Management Review, exchange-traded products dropped 74% over the last month from $186.5 million in mid-August to an average […]

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Cryptocurrency exchange-traded product (ETP) trading volumes have plunged over 74% in the last month, as the prices of these products have also been dropping.

According to cryptoasset data aggregator CryptoCompare, in its newly launched The Digital Asset Management Review, exchange-traded products dropped 74% over the last month from $186.5 million in mid-August to an average of $48 million in mid-September.

An exchange-traded product, it’s worth noting, is a type of security that tracks other underlying securities or an index. The document notes that Grayscale’s Bitcoin Trust product, GBTC, represented the “vast majority” of ETP volume and as such accounts for most of the decrease in trading activity.

The top three ETPs were Grayscale’s Bitcoin product, and its Ethereum Trust (ETHE and Ethereum Classic Trust (ETCG), and traded a combined $180 million per day in mid-August, and just over $40 million per day in mid-September.

Throughout the last 30 days, CryptoCompare adds, crypto ETP trading activity generally declined. If we exclude over-the-counter products – like GBTC, ETHE, and ETCG – the largest product was ETCGroup’s Bitcoin ETP (BTCE), which traded o Deutsche Boerse XETRA. Other large cryptocurrency ETPs include 3IQ’s QBTC product which trades on the Toronto Stock Exchange and BTCW by WisdomTree which trades on Six Swiss Exchange.

Over the last 30 days, Grayscale’s BTC and ETH products represented the largest average daily trading volumes at $49 million and $7.4 million respectively. These experienced significant losses over said period, dropping 20.4% and 43.4% respectively.

After Grayscale’s products, which often trade at a premium compared to their underlying assets, BTCE saw average trading volumes of $864,000 and experienced a near 9% drop over the last month.

It’s worth noting that the price of most top cryptocurrencies, including bitcoin and ether, dropped significantly over the last 30 days after BTC saw a breakout above $12,000 get rejected.

Featured image via Pixabay.

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ConsenSys-Incubated Startup Releases In-Browser Atomic Swap Wallet for DeFi

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On Thursday, ConsenSys-incubated startup Liquality released a new wallet that lets you atomically swap digital assets directly from your browser.

The Liquality Atomic Swap Wallet can act as a trustless alternative to current methods of porting cryptocurrencies into the decentralized finance (DeFi) space due to the peer-to-peer (P2P) nature of atomic swaps, Liquality co-founder Thessy Mehrain told CoinDesk in a phone interview.

The wallet interacts similarly to cryptocurrency wallet MetaMask, but with an entirely different end-game: swapping assets trustlessly.

“It’s called a chain abstraction layer, which basically is a way of making different blockchains talk the same language and interact,” Liquality co-founder Simon Lapscher said.

Liquality’s wallet leans on atomic swaps and hashed time locked contracts (HTLC), a cryptographic escrow scheme that allows two parties to swap assets without trusting the other party. HTLCs are also the foundation of Bitcoin’s second-layer payment scheme, the Lighting Network. 

Notably, atomic swaps let investors hold onto their private keys throughout the entire exchanging process.

Mehrain and Lapscher believe these swaps can act as a trustless alternative for DeFi investors looking to bring value from one blockchain to another. To date, over $1.1 billion worth of bitcoin has been tokenized on Ethereum.

Yet, investors have increasingly relied on private firms to bring value from other blockchains to Ethereum’s DeFi markets. 

Current methods of transferring value from Bitcoin to Ethereum, such as BitGo’s wrapped bitcoin (WBTC), require third-party custodianship. P2P atomic swaps, on the other hand, do not.

Liquality itself currently acts as the counterparty to all wallet swaps, with advanced users having the ability to choose other counterparties. The startup makes revenue acting as market maker for swaps, Lapscher said.

Enough adoption should create sufficient network liquidity within the wallet to allow Liquality to disinvolve itself entirely from the process, he added.

Source: https://www.coindesk.com/consensys-liquality-atomic-swap-wallet-defi

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