83% of Bitcoin Addresses Currently Profitable, Says Glassnode

83% of Bitcoin Addresses Currently Profitable, Says GlassnodeAt least 83% of existing Bitcoin addresses are currently in a state of profit, according to Glassnode. That’s a 43% increase since bitcoin’s precipitous crash on March 12, now known as the ‘Black Thursday.’ At the time, only 45% of all the BTC addresses were profitable – a low for 2020. Per the new data, […]

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DeFi Boom: Balancer Echoes Compound With 235% Spike on First Day

DeFi tokens like LEND — the price of which has increased by 3900% since 2019 — rallied further this week, some to new all-time highs.

Decentralized finance (DeFi) tokens from Balancer, Ben, Aave and Swissborg have all made huge gains, in the wake of excitement generated by the distribution of Compound’s governance token.

Less than twelve hours after Balancer announced its protocol governance token BAL was live on the Ethereum mainnet, and the price jumped from $6.65 to $22.28. At the time of writing, the DeFi token was trading at $15.60, with a little over 6 million BAL tokens in the circulating supply.

It’s following in the footsteps of COMP which more than tripled in value this week. Even after today’s price crash, it’s still up by 135%.


Souce: CoinGecko

LEND skyrockets, REN and SNX reach ATH

According to data from CoinMarketCap, altcoins Aave (LEND), Ren (REN), and Synthetix (SNX) also had strong rallies this week. 

LEND, a token from London-based DeFi lending platform Aave, has seen a 3,900% increase in price since trading under $0.01 for almost a year from November 2018 onwards. The token first rallied to $0.05 in May, then surged to $0.16 on June 21. 

Synthetix, a Australian leader in DeFi derivatives, and the newly launched REN, saw new all-time highs today. The price of SNX rose 40% this week continuing its bullish trend of a 100% increase over the last 30 days to reach an ATH of $1.61. 

Both tokens have been looking bullish since late March following the crypto bloodbath. On June 23, the price of REN reached $0.16, respectively, an increase of more than 400%.  


Source: CoinMarketCap

SwissBorg looking at all-time highs

Decentralized wealth management platform Swissborg’s CHSB token is currently trading at $0.14, having reached a new all-time high of just over $0.16 on June 17. For much of 2020, the price of the DeFi token was hovering around $0.02.  


Source: Coin360

Why are DeFi tokens doing better?

Cointelegraph has reported many DeFi tokens have consistently been outperforming Bitcoin (BTC) in 2020. Interest in these coins has been given a major boost by the launch of COMP, which has just started trading on Coinbase, and saw a meteoric price rise in its first week.

There is also considerable excitement around the concept of ‘yield farming’ which some publications including Forbes have promoted as a means to get a 100% return on an annualized basis.

As these tokens operate on the Ethereum mainnet, the expected introduction of Ethereum 2.0 later this year may fuel the bullish sentiment as it will enable DeFi projects to scale up properly. Some believe DeFi could rival the ICO boom in 2017 while others think it’s another overhyped bubble waiting to pop.

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Surge in Stablecoin and DeFi Growth Bring Ethereum Fees to 2-Year High

Fees for Ethereum transactions are at an all-time high but what does this mean for the network and ETH price?

The median transaction fees on the Ethereum network are the highest they have been in two years and have risen above Bitcoin fee for the second time in the last three months. 

Recently, Coinbase researcher Max Bronstein tweeted the chart below and suggested that the most recent surge seems to be due in largely in part to increased interaction with stablecoins on the Ethereum network.

Tx. fee earnings of Bitcoin and Ethereum

Tx. fee earnings of Bitcoin and Ethereum. Source: Twitter

As previously reported by Cointelegraph, Tether’s USDT stablecoin is the biggest user of gas in the network, with around $2.56 million spent in Ether gas fees in the last month according to ETH Gas Station. While stablecoin activity is certainly one the main reasons for the sharp increase in the median fees for Ether transactions, it is certainly not the only one. 

USDT, DeFi and Ether are pushing fees higher

Data from ETH Gas Station shows that USDT is the biggest spender of gas on the network, followed by popular DeFi dapps like Uniswap and Kyber Network. This shows that DeFi is also an extremely important factor to consider when analyzing the surge in gas fees. 

As reported by Cointelegraph, gas usage rose to an all-time high in May but the sheer number of transactions is not at an all-time high. This shows that the current activity comes not just from simple transactions like USDT transfers but also from complex smart contracts. 

While the number of daily transactions are far from the January 2018 all-time high of 1,349,890 transactions, other metrics point to growing interest or at least movement of Ether (ETH) itself. 

ETH Active Supply 3y-5y

ETH Active Supply 3y-5y. Source: glassnode

As shown on the chart above, the active supply of Ether is at an all-time high relative to the Ether units that have been moved in the last 3 to 5 year period.

Other signs of growing interest in the altcoin can be seen in the derivatives market where Ether open interest on options has grown at a phenomenal rate. Deribit open interest has surged 315% to $158 million over the last two months, temporarily outpacing the interest shown in Bitcoin (BTC) options.

What do rising fees mean for Ethereum?

The growing interest and activity in the Ethereum network might bring about a bitter-sweet taste for blockchain fanatics. While this growth reveals a rise in interactions with Ether and dapps running on the Ethereum network, it also brings to light the network’s growing technical debt.

Ethereum 2.0 is set to be released this summer and it promises to solve the current scalability issues with its sharding technology. However, it will take more than a year for the new iteration of the blockchain to be complete and for the current blockchain to migrate to the new staking and sharding system.

As Joseph Todaro, managing partner at Blocktown Capital noted in a recent tweet, these scalability issues can drive potential users and enterprises away from the Ethereum network and into other smart contract platforms with better scalability solutions and less congestion. 

If investment continues to pour into Ethereum dapps, pressure for an effective and easily-implementable solution will continue to mount. Solutions like increasing the total gas allowed per block may help avoid congestion but it only kicks the problem down the line and exacerbates some of the network’s other challenges like the growing blockchain size.

Ethereum daily gas used

Ethereum daily gas used. Source: Etherscan

Ironically, there is a remote possibility that Ethereum’s growing popularity could be its Achilles’ heel and a large number of Ethereum supporters are looking at Ethereum 2.0 as the solution that will solve all the network’s problems. 

There is also the possibility that third-party layer 2 solutions like Matic, Skale Labs, or other scaling solutions like Plasma could address these issues but at this stage only time and the success or failure of Ethereum 2.0 will tell.

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