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Transparent stablecoins? Conclusion of Tether vs. NYAG raises new questions

February 28, 2021 by Blockchain Consultants

A long-standing legal drama finally found resolution on Feb. 23, with the New York Attorney General’s office announcing that it had come to a settlement with cryptocurrency exchange Bitfinex after a 22-month inquiry into whether the company had been trying to cover up its losses — touted to be worth $850 million — by misrepresenting the degree to which its Tether (USDT) reserves were backed by fiat collateral.

According to the terms of the announced settlement, which now marks an end to the inquiry that was initiated by the NYAG back in Q1 2019, Bitfinex and Tether will pay the government body a fixed sum of $18.5 million but will not be required to admit to any wrongdoing. That being said, the settlement clearly states that henceforth, Bitfinex and Tether can no longer service customers in the state of New York.

Furthermore, over the course of the next 24 months, Bitfinex and Tether will be required to provide the NYAG with quarterly reports of their current reserve status and duly account for any transactions taking place between the two companies. Not only that, but the firms will also be required to provide public reports for the specific composition of their cash and non-cash reserves.

On the subject, NY Attorney General Letitia James said that both Bitfinex and Tether had covered up their losses and deceived their customers by overstating their reserves. When asked about this most recent development, Stuart Hoegner, general counsel at Tether, replied to Cointelegraph with a non-committal answer, stating:

“We are pleased to have reached a settlement of legal proceedings with the New York Attorney General’s Office and to have put this matter behind us. We look forward to continuing to lead our industry and serve our customers.”

Does a New York exclusive ban even make sense?

To gain a better legal perspective of the situation, Cointelegraph spoke with Josh Lawler, partner at Zuber Lawler — a law firm with expertise in crypto and blockchain technology. In his view, the lawsuit, and particularly the nature of the settlement in which Tether and Bitfinex agreed to cease actions, underscore the confusion inherent in the regulation of digital assets in the United States.

Additionally, the agreement by Bitfinex and Tether to prohibit the use of its products and services by New York persons and entities seems on paper to be nearly impossible to accomplish, with Lawler opining:

“Are they saying that no one with a New York nexus can own or trade Tether? Tether is traded on virtually every cryptocurrency exchange in existence. Even if Tether could restrict the use of Tether tokens by New Yorkers, is that really a good idea? Do we now have a world in which every state can pick off particular distributed ledger projects from functioning within their jurisdiction?”

Lastly, even though the deal between Bitfinex/Tether and the NYAG has come in the form of a settlement — i.e., it is not subject to an appeal or federal scrutiny under the commerce clause — state-centric bans may further add to the existing regulatory uncertainty.

Added transparency is always a good thing

With regulators now asking Tether and Bitfinex to be more forthcoming about their monetary dealings and issuing an arguably small fine on them, it seems as though an increasing number of firms dealing with USDT will now have to pull up their socks and get their account books in order. Joel Edgerton, chief operating officer for cryptocurrency exchange bitFlyer USA, told Cointelegraph:

“The key point in this settlement is not the elimination of the lawsuit, but the increased commitment to transparency. The risk from USDT still exists, but increased transparency should cement its lead in transaction volumes.”

In a somewhat similar vein, Tim Byun, global government relations officer at OK Group — the parent company behind cryptocurrency exchange OKCoin — believes that the settlement can be looked at as a win-win scenario not only for NY OAG and Tether/Bitfinex but also for the cryptocurrency industry as a whole, alluding to the fact that that the 17-page settlement revealed no mention of Bitcoin (BTC) being manipulated via the use of USDT.

Lastly, Sam Bankman-Fried, chief executive officer for cryptocurrency exchange FTX, also believes that the settlement, by and large, has been a good development for the industry, especially from a transparency perspective, adding:

“Like many settlements, this one had a messy outcome, but the high-level takeaway here is that they found no evidence to support the heaviest accusations against Tether — no evidence of market manipulation or unbounded unbacked printing.”

Will scrutiny of stablecoins increase?

Even though stablecoins have been under the regulatory scanner for some time now — since they claimed to be pegged to various fiat assets in a 1-1 ratio — it stands to reason that added pressure from government agencies may be present when it comes to the transparency side of things from here on out.

Another line of thinking may be that governments all over the world will now look to curtail the use of stablecoins, such as USDT, especially as a number of central banks are coming around to the idea of creating their very own fiat-backed digital currencies. As a result, governments may want to push their citizens to use their centralized offerings instead of stablecoins.

Related: Many pieces of the Diem puzzle still missing as launch gets delayed

On the subject, Byun noted: “Stablecoin is just one type of cryptocurrency or ‘convertible virtual currency,’ and therefore, stablecoins and the stablecoin market will continue to attract scrutiny and mandated examinations from regulators.” That said, Byun believes that whether it’s Bitcoin, Ether (ETH) or Tether, crypto investors generally understand that investing in crypto remains a high-risk activity and that they “must practice caveat emptor” at all times.

Does Tether impact institutional adoption?

Another pertinent question worth exploring is whether or not the settlement may have an adverse impact on the institutional investment currently coming into this space. In Lawler’s opinion, the decision is not going to slow down adoption even in the slightest. “Institutions are not principally focused on Tether. There are other stable coins, and Bitfinex is all but irrelevant to them,” he added.

Similarly, it could even happen that the ongoing reporting requirements set by the NYAG for Bitfinex and Tether may end up bolstering institutional confidence in Tether — a sentiment that some of Tether’s most vocal and consistent critics also seem to agree with.

That being said, a lot of speculation around Tether’s fiat reserves continues to linger on; for example, Tether Ltd.’s finances are handled by Bahamas-based Deltec bank. In this regard, one anonymous report claimed that “from January 2020 to September 2020, the amount of all foreign currencies held by all domestic banks in the Bahamas increased by only $600 million,” up to $5.3 billion. Meanwhile, the total volume of issued USDT soared by a whopping $5.4 billion, up to around $10 billion.

As Tether states on its website USDT is covered by fiat and other assets, so such investigations cannot be conclusive. However, what both NYAG and the anonymous authors of the report agree upon is that Tether needs to be more forthcoming about its financial status. With that in mind, Tether’s commitment toward transparency and revealing its reserves to a regulator seems like a step in the right direction.

Transparent stablecoins? Conclusion of Tether vs. NYAG raises new questions

Source

Filed Under: blockchain technology Tagged With: Adoption, Bank, Banks, Better, Bitcoin, Bitfinex, blockchain, Books, Cash, chief, chief executive officer, Companies, crypto, cryptocurrency, cryptocurrency exchange, Currencies, Currency, Digital, ether, exchange, executive, fiat, government, Investing, investment, Law, lawsuit, Ledger, LINE, Market, New York, opinion, other, partner, printing, Regulation, Space, stablecoin, Stablecoins, Technology, Tether, Tokens, United States, us, USA, USDT, view, world

BNB price surges as Binance Smart Chain grows in popularity with DeFi

February 20, 2021 by Blockchain Consultants

Binance Coin (BNB) has been on an absolute tear in the month of February. It traded at $48.93 on Feb. 1 and grew to trade at $304 at the time of publication, amounting to a 521% month-to-date gain and 707% year-to-date gain.

This price rally has led BNB to become the third-largest cryptocurrency, with a $46.5 billion market capitalization. BNB achieved its all-time high of $342.88 on Feb. 19. This price rally and leap in market capitalization could be attributed to Binance Smart Chain gaining popularity within decentralized finance markets and other macroeconomic factors driving the growth of flagship assets like Bitcoin (BTC) and Ether (ETH) to new all-time highs this week.

While Ether price was rallying to it’s all time highs on Feb. 19, Binance announced on Twitter that they have “ temporarily suspended” withdrawals of Ether and all Ethereum based tokens due to a “congestion issue.” This led to the users not able to trade these tokens for around an hour and left the community speculating what actually happened. This pause led BNB to rise by another $60 in that time while Ether staggered around the same range.

Binance Smart Chain is the main driver?

Apart from macroeconomic factors such as the price of BTC and ETH reaching all-time highs this week, spilling over to drive up the price of BNB, Binance Smart Chain also has been gaining significant traction among the crypto community. BSC was launched in September 2020 and acts as a parallel blockchain to Binance Chain while enabling smart contract functionality and the staking mechanism of BNB, which powers Binance Chain as its native token.

Cointelegraph discussed this further with a spokesperson from Binance, who elaborated on the unique benefits that BSC offers users, saying:

“BSC offers a high-performance and low-fee blockchain network that’s compatible with the Ethereum Virtual Machine. Developers can worry less about transaction fees and focus more on innovating, while using all of the existing developer tooling they are familiar with in the Ethereum ecosystem.”

The entire Binance ecosystem is powered by BSC. Being a global cryptocurrency exchange with extremely high user traffic, it’s highly essential for scalability and low transaction fees to go hand in hand with the BSC ecosystem. BSC is now being used extensively by various DeFi protocols, with the latest to leave Ethereum for the blockchain being multiservice platform Value DeFi and yield aggregator Harvest Finance, which cited cross-chain yield farming as the prime reason for the shift.

The influence of BSC has extended to various DeFi protocols. Venus, an algorithmic money market and synthetic stablecoin protocol designed specifically for BSC, saw the price of its Venus Token (XVS) surge over 750% after it was launched on Binance Smart Chain, from a low of $10.04 on Feb. 2 to an all-time high of $95.90 on Feb. 20. 

Another prominent DeFi protocol on BSC is PancakeSwap, which went on to become the first billion-dollar project on the blockchain. It quickly doubled that to pass $2 billion in market capitalization, owing to the growth of its food-themed token, CAKE. Data from Cointelegraph Markets indicates that the price of the CAKE has surged 973% from a low of $1.89 on Feb. 3 to its all-time high of $20.33 on Feb. 19.

Speaking with Cointelegraph, Ilia Maksimenka, CEO of PlasmaPay — a DeFi investment platform — indicated that PancakeSwap could be one of the main reasons for BNB’s price rally:

“PancakeSwap traded over $400 million in daily volume and briefly became the world’s second-largest DEX. Its [BSC’s] unique propositions of a lottery service and a non-fungible token art platform have furthered PancakeSwap’s use cases.”

BSC gaining amid high Ethereum fees

Another reason for the popularity of BSC is the lower transaction fees when compared with Ethereum, which in its state of high demand sidelines retail investors in the DeFi markets, tailoring it more for whales. While Eth2 proposes to sort the transaction fees issue through its scalability solutions, currently there is a lot of congestion on the network due to the increasing popularity of DeFi protocols, leading to high gas fees for all transactions on the Ethereum network.

William Quigley, cryptocurrency fund manager at Magnetic Capital — a crypto-focused investment firm — told Cointelegraph that BNB’s rise comes down to the congestion on the Ethereum blockchain, adding: “Ethereum has an Uber-like surge pricing mechanism. When demand on the chain is high, the price to quickly process a transaction goes up.”

On Feb. 18, BSC recorded 2.5 million transactions on its network, compared with 1.3 million transactions on Ethereum. The Binance spokesperson explained to Cointelegraph why this might be the case:

“BSC daily transaction volume is up by 300% from YTD and bolsters an ecosystem of 100+ DeFi projects. Furthermore, the platform has succeeded in maintaining GAS costs as low as $0.04. Compared to Ethereum’s $5.53, BSC is 135 times less expensive!”

While Eth2’s phased launch promises speed in its proposed roadmap, history suggests that these launches often miss the deadline, with no clarity of when the actual updates will be done. Since Ethereum will take time to implement its scaling solutions, which should eventually reduce the gas fees on the network, until that point, blockchains like BSC stand to benefit the most from its delays.

The network speed of Ethereum compared with BSC could also be one of the reasons that DeFi protocols are migrating to BSC, as it is comparatively faster. BSC allows 300 transactions per second, while Ethereum, despite its higher transaction fees, can only process 15 transactions per second.

Blockchain disruption

Lower transaction fees and network speed might not be the only reasons that some DeFi protocols are migrating to BSC. The fact that BSC is 100% compatible with DeFi’s flagship blockchain, Ethereum — which allows protocols to deploy their application on top of BSC with no additional changes — is a design victory for Binance. The Binance spokesperson further spoke on some of the other reasons:

“Feedback we have heard is the DeFi protocols are increasingly chain agnostic. The rapid growth of BSC shows the users prefer lower transaction fees. BSC also provides a variety of assets, many of which are not available on DeFi protocols on Ethereum.”

Although various other blockchains like Cardano and Polkadot are trying to break Ethereum’s hegemony in the DeFi and NFT markets, none have quite achieved success at the rapid rate Binance Smart Chain is now witnessing. Disruptive blockchain innovation is bound to push the industry forward by challenging the status quo and pushing blockchain developers to focus on building universal, well-connected blockchains.

Related: DEXs becoming unusable? How to navigate record gas fees ahead of Eth2

Billy Adams, head of ecosystem development at XinFin — an open-source hybrid blockchain platform — told Cointelegraph that he believes blockchains like BSC are beneficial for the entire ecosystem:

“The market is demonstrating an appetite for emerging DeFi solutions, which can provide investor protection, sufficient liquidity for MSMEs and support interoperability between both other blockchains and legacy systems.”

BNB price surges as Binance Smart Chain grows in popularity with DeFi

Source

Filed Under: blockchain technology Tagged With: art, Binance, Bitcoin, blockchain, blockchains, btc, cardano, ceo, crypto, cryptocurrency, cryptocurrency exchange, data, decentralized, Decentralized Finance, DeFi, design, developers, DEX, driver, ETH, ether, Ether Price, ethereum, Ethereum Blockchain, Ethereum network, exchange, finance, Fund Manager, Go, head, investment, Market, market capitalization, Markets, money, other, Polkadot, smart contract, stablecoin, Tether, Tokens, transaction fees, twitter

Bitfinex Finally Completes Loan Repayment To Sister Firm Tether

February 6, 2021 by Blockchain Consultants

Crypto exchange Bitfinex said it has finally repaid the $550 million loan to Tether, the issuer of the Tether (USDT) stablecoin.

In 2018, Tether lent the exchange over $600 million, both of which have the same ownership and executives. However, the transaction wasn’t made public until a year later after the report by New York Attorney General’s Office (NYAG). The report alleged that Bitfinex is secretly using Tether’s reserve to cover the $850 million loss suffered from a deal with Crypto Capital Corp.

But Bitfinex came out to clear the air and stated an initial payment has already been made to clear the loan.

According to Bitfinex’s website, the line of credit opened by Tether has been canceled after Bitfinex met the remaining loan payment requirement. The final repayment was made last month, according to the official statement.

Repayment has added more weight to Tether

According to Stuart Hoegner, Tether’s general counsel, Tether’s USDT’s stablecoin was 74% backed by fiat currencies as of April 2019.  He said this was due to the loan given to Bitfinex to cover lost funds. However, Deltec, Tether’s Bahamas-based bank, stated that the Tether (USDT) stablecoin is fully supported by reserve, which is what is in circulation.

Coinbase Looking To Land Killing Blow on Tether USDT
Source: Coin Review

Presently, Tether’s market capitalization is about $28.31 billion. But five months ago, the market cap was less than half the present value. As of the time of writing, Deltec has not responded to emails sent for more information regarding the loan repayment.

Bitfinex said the previous payment made to Tether was made in entirely fiat currency, which has added more backing to USDT tokens. “Bitfinex made this payment in fiat currency wired to Tether’s bank account,” the official statement from Bitfinex reads.

Bitfinex still facing legal issues

While the loan repayment is a good thing for Bitfinex, the crypto exchange is still the target of several lawsuits. The accusation by NYAG is still standing, although Bitfinex has defended itself on several occasions.

According to the crypto exchange, the said fund was deposited to Crypto Capital, a Panamanian-Company. However, it was not the fault of the exchange that it was seized and safeguarded in several jurisdictions in UK, Portugal, the US, and Poland.

Bitfinex has also questioned the accusations meted against it by NYAG, stating that the presentation against the exchange is misleading. The legal battle is still ongoing and Bitfinex would hope to gain more grounds in the lawsuit following the loan repayment.

Bitfinex Finally Completes Loan Repayment To Sister Firm Tether

Source

Filed Under: blockchain, cryptocurrency Tagged With: Bank, Bitfinex, coinbase, crypto, crypto exchange, cryptocurrency, Currencies, Currency, data, exchange, fiat, information, lawsuit, LINE, Market, New York, poland, stablecoin, Tether, Trading, uk, us, USDT

Analysts warn of ‘institutional exhaustion’ with Bitcoin price back below $32K

January 23, 2021 by Blockchain Consultants

The price of Bitcoin (BTC) recovered in the past two days after dropping to as low as $28,850. Following the swift rebound, however, BTC has been unable to break past heavy resistance at $33,000 on Jan. 23, pulling back below $32,000 at the time of writing.

BTC/USD 1-hour price chart (Coinbase). Source: TradingView.com

Coinbase premium returning is bullish, but what now?

Earlier, when the price of Bitcoin started to drop below $32,000, BTC traded much lower on Coinbase than on Binance.

The lack of premium on Coinbase was worrying for two key reasons. First, Bitcoin naturally trades higher on Coinbase due to the minor premium of Tether.

Second, when Coinbase sees a lower price than other exchanges, it shows that there is high selling pressure in the U.S. market.

As the selling pressure on Bitcoin began to increase in the U.S. market, the price of BTC feel steeply in a short period.

BTC/USD (white) vs. Coinbase premium Index (blue). Source: CryptoQuant

But, almost immediately after BTC rebounded from $30,000, the Coinbase premium reappeared. At the time of writing, BTC is around $40 higher on Coinbase than on Binance.

The Coinbase premium re-emerging after nearly 12 hours is a positive sign of a potential trend reversal.

Signs of “institutional exhaustion”

But everyone is far from bullish in the near term, however. Analysts at QCP Capital, a team of traders in Asia, see several signs of “institutional exhaustion.”

Considering that the main narrative around the recent has been the institutional demand for Bitcoin coming from the U.S., the rally may be in danger if the institutional appetite for BTC slows down. They said:

“Signs of institutional exhaustion: We’ve done a timezone analysis which breaks down BTC moves into Asia hours vs. US hours (12 hours each). Since March last year, the clear pattern has been relentless US buying while Asian whales and miners have been on the offer.”

Bitcoin loses strength in U.S. period. Source: QCP Capital

The traders empahsized that the strength in the U.S. trading session lost momentum for the first time.

In fact, throughout the past week, most of the BTC selling pressure came from Asia. This marks a key shift in market sentiment. They added:

“However after the BTC top 2 weeks ago, the strength in US hours has lost momentum for the first time. This is a clear sign of exhaustion in demand from the US institutions and corporates who have been the primary drivers of this bull run.”

What comes next for Bitcoin?

Bitcoin is at risk of a corrective phase throughout the first quarter of 2021 if institutional demand for BTC subsides.

Various institution-focused platforms and vehicles, like Grayscale, are still seeing large inflows, which is indicative of solid institutional demand. At the same time, MicroStrategy continues its policy of buying Bitcoin on each dip with the latest purchase on Friday totaling $10 million. 

“Today, $31,000 was a pocket of strong support, so at least not everyone is selling,” said Chad Steinglass, head of trading at Crosstower, a digital assets capital markets firm.

“We’ll have to wait and see if that wall remains, or if institutions continue to accumulate. If they do, it’s likely that the trend will re-establish itself and continue. If they move to the sidelines waiting for more regulatory guidance, then their lack of buy flows will be acutely felt.”

At the same time, the likelihood of a wider correction remains if the U.S. market continues to see an overall decline in the appetite to accumulate BTC, particularly if the dollar continues to recover in 2021.

Analysts warn of \’institutional exhaustion\’ with Bitcoin price back below $32K

Source

Filed Under: blockchain technology Tagged With: analysis, Asia, Binance, Bitcoin, Bitcoin Price, btc, btc price, Capital Markets, coinbase, correction, Digital, Exchanges, grayscale, head, index, Market, Market Sentiment, Markets, other, Tether, Trading, tradingview, u.s., us

Paxful To Provide Fiat On-Ramps to Singaporean Crypto Exchange Bityard

October 15, 2020 by Blockchain Consultants

P2P trading platform Paxful recently partnered with cryptocurrency exchange Bityard to provide fiat on-ramp services in Singapore. It will provide users access to more than 300 different payment options.

Kiosk available on Bityard

Paxful’s web-based Virtual Bitcoin called Kiosk will be available immediately to Bityard users. It will be accessible to all new and existing customers of the platform. Paxful’s peer-to-peer trading network can be used to buy Bitcoin with 160 different fiat currencies. With this integration, Paxful will act as a fiat-to-crypto on-ramp for Bityard customers. It provides access to more than 300 different payment methods for cryptocurrency purchases.

Paxful To Provide Fiat On-Ramps to Singaporean Crypto Exchange Bityard

Paxful To Provide Fiat On-Ramps to Singaporean Crypto Exchange Bityard

The feature will help cryptocurrency exchanges in onboarding people who are new to digital currencies by enabling the purchase of supported coins using local currency. The platform will support domestic wire transfers, bank transfers, online wallets, gift cards, etc. The platform will support various fiat currencies like Canadian Dollar (CAD), Euro (EUR), British Pound (GBP), Russian Ruble (RUB), Mexican Peso (MXN), and Argentine Peso (ARS).

Paxful existed in the Venezuela market

Though Bityard has other fiat-to-crypto on-ramps, it provides one of the most diverse ranges of payment methods, even in countries that follow restrictive banking rules. In such countries, people can use gift cards to buy Bitcoins using Paxful. Bityard also comes with an additional capability of allowing users to buy and sell crypto using Tether via a number of currencies like Bitcoin, Ethereum, and Litecoin.

The Virtual Bitcoin Kiosk from Paxful lets users match with sellers instantly if they meet the criteria of the trading needs like payment method and currency. After its launch in 2015, the company has expanded its reach from Bitcoin and now comes with Tether (USDT) support as well. Despite its expansion plans, Paxful recently stopped servicing the Venezuela market, which is the largest in the Latin American region in terms of volumes. The company apparently decided to pull off the market because of US sanctions on Venezuela.

Paxful To Provide Fiat On-Ramps to Singaporean Crypto Exchange Bityard

Source

Filed Under: blockchain, cryptocurrency Tagged With: Bank, Banking, Bitcoin, bitcoins, Bityard, crypto, crypto exchange, cryptocurrency, cryptocurrency exchange, Cryptoexchange, Currencies, Currency, digital currencies, ethereum, exchange, Exchanges, fiat, Litecoin, Market, other, p2p, Paxful, russian, Singapore, Tether, Trading, us, Venezuela

Ethereum Blockchain Hits New Momentum: ERC-20 and its Market Capitalization

October 7, 2020 by Blockchain Consultants

Wondering what are ERC-20 tokens? What are the benefits of using such tokens? How is the market capitalization of these tokens gaining momentum? What about the market cap of Ethereum itself? Well, this article has got you covered. 

So let’s get started!

Table of Contents

  • What is ERC-20?
  • Benefits of Using ERC-20 Tokens 
  • Market Capitalization: ERC-20 Vs. Ethereum
  • Concluding Lines 

What is ERC-20?

One of the popular Cryptocurrency and Blockchain, Ethereum, is based on the concept of tokens, which can be bought, sold, or traded. It is a standard which monitors the creation of Token based on Ethereum Blockchain. These tokens have similar functionality to other coins developed on different Blockchain such as Bitcoin, Ether, and Bitcoin Cash.ERC-20 stands for Ethereum Request for Comments and 20 denotes proposal identifier.

ERC-20 acts as a technical standard, as most of the  tokens follow this standard for the development of tokens using smart contracts. In comparison to other cryptocurrencies, ERC20 tokens are hosted on the Ethereum blockchain and are stored and sent using ethereum addresses, whereas other cryptocurrencies like Bitcoin and Bitcoin Cash are the native currencies of their respective blockchains.

In most simple words, ERC-20 is a protocol for introducing enhancements to the Ethereum network.

Want to gain an in-depth understanding of Ethereum Blockchain and become a Certified Ethereum Expert? You are just a click away!

Benefits of Using ERC-20 Tokens 

The ERC-20 token helps developers of all kinds to reliably predict how new tokens in the wider Ethereum framework will operate. This simplifies the task set out for developers; they can continue knowing that any new project will not have to be redone each time a new token is issued, as long as the Token follows the rules.

ERC20 regulations define a well-defined blueprint for developers to learn. Thus, instead of working from scratch, it becomes convenient for developers to come up with tokens.

There are various digital currencies that are issued as an ERC-20 token. All you need is a wallet that is compatible with these tokens. Since such tokens are well-recognized, there are several options for wallets as well. There are a number of popular digital currencies that use the ERC-20 standard, such as Maker, Basic Attention Token, Augur, etc.  

The liquidity of these ERC20 tokens is an essential factor for the overall valuation of the Ethereum network. If the projects on top of Ethereum Blockchain are active and interact with each other, more projects and users can constantly use the network of Ethereum.

Want to investigate more about Ethereum? Check out Ethereum Certifications now!

Market Capitalization: ERC-20 Vs. Ethereum

According to the latest news, Ethereum’s economy hits new milestones in transfer value and ERC-20 market cap as compared to Ethereum. 

A platform Santiment that helps in exploring behavioral analytics for the crypto market found that the market cap for all ERC-20 based tokens has flipped even that of Ethereum Blockchain itself. In September 2020, the Ethereum Foundation announced that teams working on the Ethereum blockchain would be awarded over $3.8 million in grants.

As of September 11, 2020, the total market cap for all current ERC-20 assets was $46.7 billion, whereas that for Ethereum was just over $41 billion.

Santiment platform mentioned that since Black Thursday, the ERC-20 market capitalization had flipped the Ethereum itself. ERC-20 tokens after first crossing in mid-march again showed the rise on September 3. It was reported that “this is the highest market cap differential of ERC-20 coins over $ETH.”

According to the Tether Transparency Survey, Tether estimates for a notable share of the ERC-20 capitalization, with around $8.9 billion, or 60% of the entire USDT supply, currently on the Ethereum Blockchain network.

CoinMetrics analytics reported that the 7-day average adjusted transfer value of ETH hit $3.08B on September 5, compared with $3.01B for BTC.

Concluding Lines

From the above discussion, it is clear that Ethereum’s economic metrics are strengthening in terms of the transfer value and ERC-20 market capitalization. The spike in the Ethereum ecosystem is because of several reasons. Yearn Finance’s yETH vault is one of the potential factors for passive earning opportunities for Ethereum holders. Please note that Yearn.finance is a yield aggregating platform built on Ethereum Blockchain that utilizes decentralized finance protocols such as Compound, Aave, and others for optimizing token lending. In addition to this, SushiSwap, a completely decentralized on-chain token exchange protocol, is responsible for increasing both the value of Ethereum transfer and its network fees.

Curious to learn more about blockchain technology? Sign up to Blockchain Council today and become a Certified Blockchain professional.

 To get instant updates about Blockchain Technology and to learn more about online Blockchain Certifications, check out Blockchain Council.

Ethereum Blockchain Hits New Momentum: ERC-20 and its Market Capitalization

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Filed Under: blockchain, blockchain technology Tagged With: article, Bitcoin, bitcoin cash, blockchain, blockchain certification, blockchain council, blockchain courses, blockchain developer, blockchain expert, blockchains, btc, Cash, Compound, crypto, Cryptocurrencies, cryptocurrency, Currencies, decentralized, Decentralized Finance, developers, digital currencies, economy, erc20, ether, ethereum, Ethereum Blockchain, ethereum foundation, exchange, finance, maker, Market, news, other, Technology, Tether, Tokens

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