Dear EEA Community:
I’m writing to let you know about an upcoming change in the organization. Ron Resnick will be stepping down at the end of May as EEA Executive Director. Ron has been instrumental in many of EEA’s recent accomplishments that have set EEA on a positive course for the future. We appreciate his many contributions to the EEA and his continued involvement in our community.
The EEA Board has met to determine the next steps in our search for a new Executive Director. In the meantime, Ron will continue to lead the organization in collaboration with the EEA Board of Directors and our management firm, Virtual, Inc.
Ron asked me to convey to you that it has been a privilege and honor for him to have served as Executive Director of the EEA and that he’s immensely proud of the EEA’s growth and the impact it has had on members and the industry. He has enjoyed every minute and challenge along the way, and greatly appreciates all of the support the EEA community has given him. During the past two years with support from the entire EEA team, the EEA has established itself as a highly credible industry association chartered to support the demand for enterprise-class implementations of Ethereum technology.
With the continuing commitment of the EEA to support enterprise-class implementations of Ethereum and the upcoming launch of the EEA certification program, it makes sense to recruit a highly technical expert in Ethereum technology to drive the enterprise Ethereum roadmap towards global adoption. Ron will continue in his role as Executive Director until a new replacement is selected and will support the transition to ensure a seamless leadership transition.
I’m excited about the future of the EEA and the impact we will have on the broader Ethereum community, as we execute against our 2020 initiatives and will work closely with Ron and the EEA Board to ensure a smooth transition as the organization moves forward.
With sincere appreciation,
Chairman of the EEA Board
Profit taking Bitcoin miners won’t stop the next bull run: On-chain analyst
Historical data shows that some miners began to sell Bitcoin (BTC) at the end of July, leading to increased selling pressure in the cryptocurrency market.
Eventually, the dominant cryptocurrency fell steeply from mid-August, recording a 13% fall and since then BTC has struggled to retake the $12K mark.
Bitcoin selling by miners from 2017-2020. Source: CryptoQuant
According to CryptoQuant CEO Ki Young Ju, continued selling by miners might not be enough to prevent a bull run. On-chain data analysis firms closely observe the movements of miners and whales because they hold significant amounts of BTC.
Willy Woo, an on-chain analyst, explained that miners represent one of the two external sources of selling pressure for Bitcoin. He previously said:
“There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.”
When miners start selling their Bitcoin holdings, typically to cover expenses, it could trigger a correction in the cryptocurrency market.
For instance, From Aug. 17 to Sept. 5, the price of Bitcoin dropped from $12,486 to $9,813. During that time, several whales sold Bitcoin right at $12,000 and the same behaviour was observed amongst miners.
The selling pressure coming from miners and whales noticeably has been attributed to the current crypto market slump but in the longer term, Ki explained it is not enough to stop a prolonged bull run.
If miners abruptly sell a significant amount of BTC, it could cause a severe correction as a small price movement could trigger liquidations from heavily-leveraged traders. Hence, even a relatively small sell-off by miners could theoretically cause massive price swings.
Ki says the intensity of the sell-off from miners was not strong enough to halt future bull runs. He said:
“Miner Update: Some miners began selling at the end of July, but I think in the long-run, miners didn’t sell BTC large enough to stop the next bull-run.”
According to ByteTree, the net inventory of Bitcoin miners declined by 125 BTC per week in the last 12 weeks. The data indicates that miners sold approximately $1.362 million BTC per week week atop the BTC that they mined and sold.
Amount of BTC mined and sold in the last 12 weeks. Source: ByteTree
As Ki emphasized, the data shows that miners sold substantial amounts of BTC, but not in amounts that were irregular to normal behaviour.
Post-halving bull cycle remains a possibility
Bitcoin is still hovering above the critical $10,000 technical support level despite multiple attempts by bears to drop the price below the key level.
The resilience of Bitcoin amidst a heightened level of selling pressure suggests a cautiously bullish trend in the long term.
The Bitcoin short-term holder NUPL. Source: Glassnode
“Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) with a #bullish signal here imo. That bounce of the 0-line was important, is very characteristic for previous bull markets, and historically a good buying opportunity.”
Crypto exchange bitFlyer Europe links up with PayPal, enabling account deposits with euros
Crypto exchange bitFlyer Europe has announced integration with PayPal, allowing users to deposit funds using their PayPal accounts to buy cryptocurrencies.
The post Crypto exchange bitFlyer Europe links up with PayPal, enabling account deposits with euros appeared first on The Block.
Even after parabolic rally, top crypto VC thinks Ethereum DeFi isn’t overvalued
It’s clear excess and euphoria is starting to seep into Ethereum’s DeFi space. Uniswap nearly reached a $1 billion circulating market capitalization just two days after its launch, a food coin called Pickle surged 1,000 percent in a day, and Yearn.finance (YFI) has gained over 1,000,000 percent since its July launch, to name just a few trends.
To put this into more broad and absolute terms, there is now $10 billion locked in mainstream DeFi contracts according to DeFi Pulse. At the start of the year, this single metric was extremely close to $500 million.
Even after all this, there may be reasons to believe that decentralized finance is not yet overvalued on a longer-term time frame.
Is Ethereum’s DeFi space really overvalued yet? A top investor is not too sure it is
After DeFi coins doubled and tripled within the span of a few weeks in June, Mechanism Capital founder Andrew Kang came out with a Twitter thread outlining his thoughts on DeFi’s trend of growth.
As this outlet covered at the time, he was not then convinced that this crypto market segment had reached a top, going as far as to say that it was in the early stages of a parabolic growth cycle.
Kang was proven correct in the two months that followed, as coins in the space continued to double and triple and rally higher on even bigger multiples.
He is now back again, having been proved correct, and he’s saying that there is still space for DeFi to grow.
On Sep. 19, he wrote:
“TVL in DeFi is up ~20x since 2019 and DeFi market cap is up a similar amount. I don’t think price has seriously outpaced fundamentals yet. Seems low EV to cashout for a short trade and potentially miss out on parabolic growth.”
TVL in DeFi is up ~20x since 2019 and DeFi market cap is up a similar amount
I don’t think price has seriously outpaced fundamentals yet
Seems low EV to cashout for a short trade and potentially miss out on parabolic growth pic.twitter.com/xWo2oCXZg3
— Andrew Kang (@Rewkang) September 19, 2020
Kang added that realistically, it may only take $50 million worth of new capital to drive this space up by 10% or even more.
With much capital entering the DeFi space as institutional investors get excited, growth may continue in the medium to long term.
Certain factors could drive this market lower
While DeFi may not be overvalued, there may be some trends that can trigger a further short-term correction after the already 10-30 percent drop that has transpired in this segment of the crypto market.
As reported by CryptoSlate, crypto analyst “Theta Seek” commented that there are three crucial reasons why DeFi’s growth may be reaching a plateau for the time being. These include but are not limited to:
- Risk of funds caused by poor user experiences and tools
- A slowdown in the value of capital and interest entering the space
- Regulatory pressure as regulators eye the vast amounts of capital sloshing around in DeFi, along with the hacks.
It may just be that investors are sitting on the sidelines and are not advancing into this space due to the aforementioned risks and issues such as poor user experiences and potential regulatory pressure.
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