bookmark_borderCointelegraph Consulting: Who is winning the battle of the DEXs?

Analysis of the user behaviors captured on DEXs across the various layer one and two networks.

Decentralized exchanges have continued to increase their market share, spurred on by high Ethereum gas prices, a rapid release of decentralized token sales, and layer two networks incentivizing developers to make their protocols accessible to users on different networks.

The latest findings by Covalent in Cointelegraph Consulting’s biweekly newsletter indicate that the top DEXs on Binance Smart Chain, Avalanche C-Chain, and Polygon (formerly Matic) began to rise in volume as Ethereum gas prices pushed higher.

PancakeSwap became the first DEX on BSC to breach the $1 billion mark in volume over a 24-hour period, despite entering February with only around $75 million per day. Pangolin on Avalanche C-Chain and Quickswap on Polygon also set new highs in 24-hour volume, with $35 million and $6 million respectively.

Taking a closer look at the state of gas fees on Ethereum, the average gas cost per transaction on Uniswap for the top 5 pairs throughout February was over $60. By comparison, Pancakeswap transactions averaged just $0.75. Looking at efficiency, the gas fee on Uniswap constituted an average of 0.52% of the transaction value, whereas Pancakeswap users only spent an average of 0.026%.

Still, the majority of large traders still prefer the established presence of Ethereum, with the average transaction-value across the month of February nearly $17,000 on Uniswap. The closest competitor in that category was Pangolin at $6,000 per transaction. Pancakeswap users were much more frequent with their transactions but at a much smaller value.

Switching to BTC, daily trading volume across all centralized and decentralized exchanges skyrocketed to an all-time high toward the end of February. On Feb. 26, the global volume hit $350 billion, a figure three times bigger than the previous all-time high set on Jan. 29, when global figures peaked at $110 billion.

Read the full newsletter edition here for more news and signals, complete with detailed charts and images.

Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers, Santiment, the newsletter dives into the latest data on social media sentiment, on-chain metrics, and derivatives.

We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.

bookmark_borderAlameda Research invests $20M in Reef Finance

The investment will reportedly allow Reef to implement more cross-chain integrations with Serum and Raydium on Solana.

After investing in travel app Maps.me and decentralized finance protocol Oxygen, Alameda Research will be putting $20 million into Reef Finance, the Polkadot-based DeFi platform.

According to Reef Finance, Alameda Research will be purchasing $20 million worth of the firm’s native tokens, REEF — roughly 528 million at the current price of $0.03787. The investment will reportedly allow the two companies to collaborate on technology and strategy “in the near future.” Reef CEO Denko Mancheski added the additional funds would help the firm develop DeFi applications for the Reef blockchain.

The $20 million in Reef comes after a $40 million investment in Solana-based lending platform Oxygen and $50 million in Maps.me, a travel and mapping application with more than 140 million users worldwide. With Reef, Alameda said it was aiming for more cross-chain integrations with Serum and Raydium on Solana.

Reef became the first Polkadot-based project to debut on the Binance Launchpool in December. Since the beginning of the year, the price of REEF has risen more than 150%  from $0.014954 to $0.037808 at the time of publication.

bookmark_borderBlack Thursday anniversary: Can crypto markets see another huge crash?

The market may witness flash crashes in the near term, and another March 12 drop is not completely off the map.

It is no secret that March 12, 2020, marked one of the darkest days in crypto history. This was the day when Bitcoin (BTC) witnessed one of the largest single-day price dips in its decade-long existence, swooping from $8,000 to a staggering low of $3,600, albeit briefly, just for a matter of minutes. 

To put things into perspective, within a span of just 24 hours, over $1 billion worth of BTC longs were liquidated, causing one of the most intense value drops witnessed by the digital market in its brief history. Another way to look at the crash is that during the above-stated time frame, BTC lost nearly 50% of its value, a statistic that is quite striking, to say the least.

Also worth noting is the fact that over the course of the same week, Bitcoin and many other cryptocurrencies exhibited an extremely high correlation with the United States stock market, which at the time was seen as a possibility due to the overall drop in investor appetite for high-risk assets, especially as the COVID-19 pandemic was just beginning to rear its ugly head.

The steep correction in the U.S. stock market — which saw the Dow Jones Industrial Average dip by 2,300 points — was its worst decline in over 30 years. This correction, coupled with a lack in demand for BTC, resulted in the cryptocurrency’s price first dropping first to around the $5,000 mark and then to around $3,600.

Is another crash incoming?

To explore the possibility of whether the crypto sector may be on the receiving end of another massive dip sometime this month, Cointelegraph reached out to CryptoYoda, an independent analyst and cryptocurrency expert. In his view, the triangular combination of finite supply, ever-growing demand and highly leveraged trading is a recipe for flash crashes and turbulent volatility, adding:

“We will continue to see many temporary crashes along the way, as markets have a way to regulate and balance the intense emotions in both retail and institutional investors and traders. It is just that we never witnessed an experiment on such a tremendous scale involving limited supply in combination with insane demand and explosive tools like leverage that will make this ride rather bumpy.”

Hunter Merghart, head of U.S. operations for cryptocurrency exchange Bitstamp, pointed out that even though the structure of the crypto market has evolved dramatically since last March, the possibility of another crash cannot be ruled out entirely. That being said, he stated that the crypto industry is now full of regulated spot trading avenues, derivatives platforms that ensure a high level of liquidity.

Furthermore, Merghart believes that when compared to previous years, there are now many more active participants within the global crypto landscape who can help ease out any imbalances if volatility were to suddenly increase overnight for some unforeseen reasons.

Anshul Dhir, co-founder and chief operating officer for EasyFi Network — a layer-two DeFi lending protocol for digital assets — pointed out to Cointelegraph that currently, an immense amount of capital has been locked in decentralized finance, and the overall market cap of the crypto industry is more than $1.5 trillion. However, of this figure, Dhir pointed out that the majority of positions are over-leveraged even to the tune of 50x.

Things are different this time around, really different

While some fears of a possible crypto crash do exist, by and large, the sentiment surrounding the crypto space seems to be much calmer this time around. For example, Chad Steinglass, head of trading for U.S.-based crypto trading platform CrossTower, believes that even though the one-year anniversary of the much dreaded “bottom” is coming up, there is nothing to worry about in regard to such a scenario repeating itself again:

“While March of 2020 was a dark time for crypto as it was for all global markets in all assets, it is what came right after that has come to define digital assets. The swift and massive Fed intervention to support liquidity in financial markets was exactly the activity that Nakomoto saw as the writing on the wall after the Great Financial Crisis of 2008 that prompted him (or her) to create Bitcoin in the first place.”

He further opined that the Federal Reserve’s response to COVID-19 was the confirmation of the original thesis behind Bitcoin, and it kicked off the bull run that has been ongoing for the last 11 months. Steinglass said that the Fed has shown no signs of tightening its monetary policy, and even Congress, despite partisan gridlock, has shown that it will continue to inject stimulus into the economy until the recession brought on by the coronavirus is fully in the rear-view mirror.

Furthermore, with the steady flow of institutional adoption — with a new major traditional asset player announcing its support for digital assets seemingly every other week — it appears as though there will be no serious correction for any reason other than some surprise prohibitive regulations coming from the Treasury or the Securities and Exchange Commission, which, at this point, seems highly unlikely.

The only caveat that Steinglass has in relation to his otherwise bullish stance is the possibility of some profit-taking from the U.S.-based investors who may have bought BTC at the bottom and have been waiting to sell until the calendar rolls over for tax purposes. “However, I expect that the volume of BTC that these sellers will look to unload is relatively small in the grand scheme of things,” he added.

Daniele Bernardi, founder of PHI Token and Diaman Group, believes that last year’s Bitcoin price drop and the collapse of financial markets all over the world were totally related to the onset of the pandemic. In this regard, he told Cointelegraph that it’s unlikely that such an event will happen again:

“Any asset, even gold and commodities, suffered a big drop due to the uncertainty in the development and spread of the pandemic. So, in my view, the movement of Bitcoin was more related to irrational and emotional selling of everything by investors, an effect well known as ‘systematic risk’ rather than Bitcoin itself.”

Safe to hold?

Though the events of March 12 are etched in everyone’s memory at this point, most technical indicators seem to suggest that the possibility of such a scenario playing out once again seems improbable.

In this vein, it is also worth mentioning that many of the coronavirus fears that were running rampant this time last year — and appear to be the primary drivers of the crash — have now largely died out, especially with vaccinations starting to be rolled out on a global scale.

If there is one thing that the crypto market has taught its participants over the years, then anything is possible when it comes to this niche. Therefore, any prediction of future price action is nothing more than a very well-educated guess and that any unforeseen global event may reshuffle Bitcoin’s deck to form a completely different narrative.

bookmark_borderMicroStrategy 再次购买了 262 枚比特币,单个成本 57146 美元

链闻消息,美国上市公司、商业智能软件提供商 MicroStrategy 首席执行官 Michael Saylor 在推特上宣布,公司再次以 1500 万美元的现金再次购买了 262 枚比特币,单价为 57146 美元。截至 2021 年 3 月 12 日,MicroStrategy 以 22.11 亿美元的价格共计购买了 91326 枚比特币,平均价格为每枚比特币 24214 美元。

原文链接:MicroStrategy 再次购买了 262 枚比特币,单个成本 57146 美元

bookmark_borderDeFi 智能理财平台 SIL.Finance 完成 130 万美元私募轮融资

链闻消息,DeFi 智能理财平台 SIL.Finance (Sister in Law)宣布完成私募轮融资,共筹集 130 万美元资金,本轮融资由 Axia8 Ventures 及金氪资本联合领投,Genesis Block Ventures、Everest Venture Group、Lotus Capital、Cabin VC、AU21 等参投,其他投资者包含 Boxmining、CryptoDaku、Lil Lambo、Garlam、Crypto Dorm 等未公开早期海内外支持者。

SIL.Finance 是一个基于智能合约的去中心化多元理财平台,针对 DeFi 用户理财需求将持续优化痛点问题、提高效率。

原文链接:DeFi 智能理财平台 SIL.Finance 完成 130 万美元私募轮融资

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