- The Block took a look a Coinbase’s historical listings and bitcoin volume dominance
- While Coinbase has listed dozens of cryptocurrencies since 2018, a bitcoin is still the dominant asset by trading volume
Now you can make hedge fund strategies on interest rates of DeFi
A complete set of resources for tracking the latest in stablecoin analytics. Statistics and data visualization for Tether, USDC, and…
Continuous product innovation is integral to us (see the latest CEO letter). We listened carefully to the industry and user feedback collected over the past five months and have made several key changes listed in our updated methodology here.
The newly improved feature now is renamed the Liquidity Score by CoinMarketCap. With this change, we hope to enable all our users to quickly identify the best crypto exchange and markets to trade on, with the smallest execution costs.
If you plan to trade (i.e. buy or sell) any cryptocurrency, or are already doing so, you will want to get the best prices possible.
However, there is this thing in trading cryptocurrencies called slippage that can hold you back from getting the best prices and cause you to lose money. Slippage happens when the price you expected and the price you got are different.
If you know how to find the most liquid exchange or market, you can keep your losses (i.e. slippage) down, even if you are in a hurry to trade.
To take it back to basics, our team created an illustrated example using apples:
In an illiquid market, Alice the pie-maker, who needs apples urgently, receives offers from two sellers. One seller offers one apple for a low price of $1. The second seller has three apples to sell for $1.50 each. Because Alice needs a total of three apples, the best outcome for her is to get:
One $1 apple + Two $1.50 apples = $4.00.
Divided equally, this equates to $1.33 per apple, which is a slippage of $0.33 from the best price (i.e. $1 for an apple).
Now transport Alice to a liquid market, and she ends up with a slippage that can be many times cheaper! Here is why. In a liquid market, there are more sellers and that usually brings about more competitive offers.
In this scenario of a liquid market, Alice could get:
One $1 apple + One $1.01 apple + One $1.05 apple = $3.06
Divided equally, this equates to $1.02 per apple, which is a slippage of $0.02 from the best price (i.e. $1 for an apple).
Now compare the slippages in the two difference scenarios:
Illiquid market slippage versus liquid market slippage
$0.33 ÷ $0.02 = 16.5
Alice’s slippage losses in a liquid market is easily more than 10 times less!
The newly improved Liquidity Score by CoinMarketCap does that for you! There are two ways you can use our tool:
To quickly search for the most liquid exchanges, simply go to our Top 100 Exchanges by Liquidity page.
To quick search for the most liquid market pairs or trading pairs for a specific cryptocurrency, go to our home page:
Step 1: Search for your cryptocurrency or cryptoasset in the search bar located on the top right corner.
Step 2: You will be taken to the respective coin detail page. There, click on the second tab called “Market Pairs.”
Step 3: You will see a ranking table. Simply click on the column called “Liquidity” and sort by descending order. The higher the Liquidity Score, the more liquid the market pair is!
The post A Basic Guide to Using Liquidity to Find The Best Crypto Exchanges appeared first on CoinMarketCap Blog.
Stablecoins are widely used as a de facto form of cash in the cryptocurrency market. Since their market value is pegged to some external reference, they …
60% of the newly created Tether has been recently released on the TRON network.
This is what TRON founder Justin Sun points out, revealing that 58.76% of the new USDT tokens issued are on TRON, while 41.24% are on Ethereum.
— Justin Sun (@justinsuntron) May 5, 2020
Omni is the first blockchain on which USDT tokens were issued and is based on Bitcoin, while by now most USDT tokens run on Ethereum. Indeed, there are over 5.6 billion ERC-20 USDT tokens in circulation.
As a result, most of the 7.9 billion USDT tokens created are currently on Ethereum (more than 70%), while there are still 1.3 billion on Omni (16%). However, no new USDT are created on Omni, so the new issuances take place mainly on Ethereum and TRON.
The fact that more than 5.6 billion have already been issued on Ethereum explains why the majority of the last issuances have taken place on TRON.
Currently, 15% of the USDT tokens issued are now on TRON, while the remaining ones are on Liquid (0.2%), on EOS (0.06%) and on Algorand (0.01%).
USDT is also establishing itself as a reference stablecoin in dApps, partly also in the DeFi world, and this is probably why there is a demand for USDT tokens in TRC-20 format.
USDT is by far the most used stablecoin in the world, so much so that its market capitalization has exceeded by a factor of 10 times that of the second most popular stablecoin anchored to the US dollar, USDC, created and managed in collaboration with Coinbase. Moreover, compared to DAI, the reference stablecoin for the DeFi world, USDT has a market capitalization of almost eighty times higher, which gives USDT a distinctly dominant role in the stablecoin market.
There are no other TRC-20 stablecoins that can really compete with USDT, which is thus establishing itself as the reference stablecoin on TRON. This justifies the significant growth in the spread of its TRC-20 token.
After noticing a constant rise in Bitcoin locked in Decentralized Finance [DeFi], the total BTC on the platform stood at 2.1k. Despite the tremendous losses noted by the DeFi in March, the value of BT
The post Bitcoin backed WBTC may be the need of the hour on DeFi appeared first on AMBCrypto.
Bitcoin or Ether or Ripple or whatever — if they switch their entire economy to Bitcoin, it’d be way better. 14. So that’s why people should just keep it …
MakerDAO has published a report providing a detailed look at the events surrounding its ‘Black Thursday’ disaster — and how to prevent it from happening again.
MakerDao (MKR) has published a new report that attempts to put the events of ‘Black Thursday’ into context — and recommends safeguards to ensure it can never happen again.
The document, which was authored by ‘MakerMan’, said the crash drove liquidations that “effectively swamped” the system’s liquidators.
With the ETH network suffering from congestion, users were unable to participate in auctions, resulting in a single bidder winning nearly 62,843 ETH for virtually zero DAI across 1,461 auctions.
In total, the author estimates that the auctions resulted in the Maker system becoming undercollateralized by 6.65 million DAI. The document said there were intangible costs too:
“This event was not only costly to vault holders, but was to the Maker system as well, in capital costs, system confidence and Maker reputation generally.”
The report notes that when additional keepers were able to participate in bids, prices offered between 10% and 14% collateral returns.
MakerDAO is the decentralized finance (DeFi) protocol that creates the stablecoin DAI.
Dai are created when users take on collateralized debt positions — where collateral (often Ether) is deposited in an Ethereum smart-contract, and a portion of the locked assets’ value is represented by newly created DAI.
The collateral is also used to drive the stabilization of Dai’s value, with the system incentivizing the creation or destruction of Dai depending on whether DAI’s price is above or below $1. Loans that can no longer be supported by their collateral enter into liquidation proceedings — where the loan’s collateral is auctioned in exchange for Dai.
In response to the crisis, MakerDAO entered into a new series of debt auctions — where new MKR tokens are created and auctioned for DAI in order to recapitalize the system.
Over 5 million DAI were raised in the auctions, with venture fund Paradigm Capital winning 68% of auctioned MKR
Maker’s report identifies several key changes that have been made to the Maker system in order to prevent comparable crises for the protocol in the future.
MakerDAO’s governance now has the ability to “instantly halt the auction system and hence liquidations” to prevent the sale of collateralized debt positions for 0 DAI.
Additional changes have also been made to the auction system’s parameters, including the addition of stablecoin USD Coin (USDC). The Maker community has also created web interfaces to increase participation in auctions.
The report also recommends introducing safeguards to restart auctions that have less than three bids and two unique bidders, placing a limit of no more than 50 ETH batches per auction lot, and the creation of a Maker liquidation dashboard.
The European Central Bank (ECB) is exploring options to develop its payments infrastructure and is studying solutions both with blockchain and without.
The main cause of this exploration has been the COVID-19 outbreak, which has caused the ECB to worry about its stimulus cash. The ECB is looking for a solution that can ensure that the cash reaches citizens quickly.
The bank published a blog post discussing the importance of a reliable payment system. The report focuses on solutions such as legacy systems. It also mentions blockchain-based technologies such as the digital euro.
The report was authored by a member of the bank’s executive board Fabio Panetta and highlights that the central banks need to ensure continuity of payment mechanisms, especially during periods of crisis.
The report praised the Target Instant Payment System (TIPS) that was launched in November 2018 by the ECB as a settlement layer for commercial banks. The report noted that the system could handle 2,000 transactions each second and was designed to settle over 43 million payments each day.
If the system is adopted at a large-scale, it can allow people and institutional entities to interact and trade with each other instantly. Furthermore, the platform will not have any business hour limitations nor any downtime during the weekend.
The report also stated that even prior to the pandemic outbreak, the ECB stressed that Europe should be “able to supply fundamental services such as electronic payments autonomously.”
As such, the ECB is studying solutions that can create systems catering to both e-commerce platforms, as well as brick-and-mortar stores. The digital euro is also being explored as part of this initiative, and Panetta noted that the COVID-19 experience would be considered while researching its viability.
Crypto exchange Binance has partnered with BitPay, a provider of blockchain payment services, to “drive adoption of Binance’s stablecoin, BUSD. According to a note from Binance, BitPay will enable merchants to accept BUSD around the world. Support for BUSD in the BitPay wallet goes live… Read More
The post BUSD: Binance Partners with BitPay on Stablecoin Payments appeared first on Crowdfund Insider.
Charles Edwards, a digital asset manager, remarked in January that “major changes in Tether’s market capitalization have led Bitcoin’s price over the last 1.5 years.”
Bitfinex is planning to list its first cross-chain DeFi token pBTC to further push DeFi adoption and liquidity.
Major crypto exchange, Bitfinex, continues to drive decentralized finance, or DeFI, adoption by announcing support for a new cross-chain DeFi solution.
Bitfinex exchange plans to list pTokens (pBTC) — a new token that aims to unlock cross-chain DeFi liquidity by connecting Bitcoin (BTC) to any blockchain. The token is pegged 1:1 to Bitcoin and is compatible with the Ethereum (ETH) and EOS DeFi ecosystems to date.
Bitfinex CTO, Paolo Ardoino, told Cointelegraph that the platform expects to add support for pBTC deposits and withdrawals by the end of May 2020. Ardoino elaborated that pBTC will become the first DeFi interoperability-focused token supported on Bitfinex.
“At the moment we are supporting only pTokens but we welcome more projects to work with us to make it easier for our users to obtain access to cross-chain liquidity.”
Thomas Bertani, founder of Provable Things, the main development team behind the pTokens project, said that pTokens’ integration with Bitfinex streamlines the flow of liquidity between centralized and decentralized exchanges. Bertani added that the listing facilitates an easy token switch and creates a new gateway for BTC liquidity to stream into the DeFi ecosystem. As of press time, pBTC is only trading on two markets — Kyber Network and Bancor Network — according to data from Coingecko.
Listing pBTC on Bitfinex comes in conjunction with pTokens launching an interoperability solution. This solution will make Bitcoin compatible with the EOS DeFi ecosystem. pBTC was brought onto the Ethereum network back in March 2020, enabling Bitcoin users to use pBTC in both the Ethereum and EOS ecosystems. Bertani pointed out that DeFi applications have to be interconnected to contribute to the entire DeFi industry growth:
“Decentralized applications today must interoperate and complement each other like lego blocks in order for the entire DeFi industry to scale. This interoperability is vital for the movement, as liquidity is the catalyst which will help DeFi reach its true potential.”
Bertani also added that the firm is actively working on other pTokens, including pETH, pEOS, pLTC and pDAI:
“New pTokens such as pEOS and pLTC have already been deployed in a test environment and will also soon be available on Ethereum mainnet. The same will apply to other assets, bringing pETH and pDAI to EOS.”
While the majority of the DeFi lending solutions integrate Bitcoin via Ethereum, pBTC’s launch on the EOS DeFi introduces Bitcoin as collateral for EOS stablecoins. As part of the initiative, pBTC will integrate with major decentralized EOS stablecoin, EOSDT. Developed by multi-chain DeFi framework Equilibrium, EOSDT will become one of the few Bitcoin-integrated EOS DeFi solutions. It will act as a new DeFi tool to provide the stable collateralization of pBTC.
Equilibrium is not the only firm that brings Bitcoin to EOS DeFi lending, however. By launching Bitcoin collateralization against an EOS DeFi, Equilibrium’s CEO and co-founder, Alex Melikhov, said they are joining major DeFi projects like dForce network. Melikhov added that the pBTC integration with EOSDT is scheduled for next week.
When a technical issue triggered millions of dollars-worth loan failures in March, pTokens’ Bertani opposed EOSDT to major decentralized stablecoin project, MakerDAO. Bertani said:
“The crypto industry has learned some hard lessons from the latest market falls. We can all agree that stablecoins have proved to be far less “stable” than we first imagined, with recent events like the MakerDAO debt auction exposing some hidden architectural flaws. New solutions are needed to guarantee the stable collateralization of these digital assets like DAI and EOSDT.”
The news comes after Chinese lending platform, Lendf.me, part of the dForce network, suffered a $25 million hack on April 19. The hacker subsequently returned the stolen money as of April 22 after potentially exposing their own identity data.
RIF on Chain (ROC) offers a fast and secure platform for transacting RIF-backed products, as well as an opportunity for RIF token holders to generate passive income.
The RIF on Chain Defi platform will principally consist of three main assets that interact with each other, which have been developed to serve different purposes depending on users’ needs. These include: (i) the RIF Dollar (RDOC), an asset-backed stablecoin pegged to the US Dollar and fully collateralized with RIF tokens; (ii) the RIFpro (RIFP) token, the cornerstone of the ecosystem enabling the minting of RDOC and RIFX through a token staking model; and (iii) RIFX, a leveraged trading asset with exposure to movements in the RIF token price.
The RIF Dollar stablecoin (RDOC) would constitute a crypto-collateralized stablecoin on the basis that it uses the RIF token as collateral. What makes this stablecoin different from other crypto-collateralized stablecoins, is the mechanism through which RDOC is issued. RDOC stablecoins will be minted whenever there is a certain amount of RIFpro (RIFP) staked in the platform. The essence of RIFP is to allow RIF token holders to generate a passive income, principally from fees generated by users interacting with the platform, rather than as a result of RIFP being a leveraged product by design.
Here is a brief overview of the main characteristics for each of these tokens:
RIF DOLLAR (RDOC)
The RDOC is a stablecoin pegged 1:1 to the US Dollar and guaranteed by a smart contract. Users will be able to redeem their full RDOC position at contract expiration or partially during the lifespan of the contract depending on the availability of redeemable RDOC stablecoins.
Another important feature about RDOC is that it is fully collateralized by RIF tokens, and users can acquire them directly in the platform without needing to provide any collateral or CDP like other DeFi platforms.
The RDOC token can be transferred among users and can be used for purchasing services and products, specifically dApps blockchain products that will be released on the Rif Marketplace. Another characteristic of the token is that it can be stored in any compatible hardware wallet.
RIFP is a token that mirrors the RIF volatility, plus a small amount of leverage that it receives from the RDOC stablecoins. The RIFP token will benefit from a percentage of the transaction fees charged by the ROC platform to the users of RDOC and to the traders of RIFX. This is why the RIFP is a suitable token for RIF holders who want to earn a passive income with a minimum leverage on its RIF token position.
RIFX is a RIF leverage decentralized long position. Based on an automated smart contract that renews every 30 days, the product has a leverage factor of 2X at the very beginning of its lifespan and a variable leverage afterwards based upon certain variables such as the price of RIF token and the amount of RDOC stablecoins in the ROC platform. Users must be aware of the risks associated with trading a leverage asset and should understand that their positions might be liquidated. The ROC platform, in this current version, does not have a Margin Call notification. The RIFX product can be sold at any time without needing to wait until expiration like in the RDOC stablecoins.
Will 2020 be the year for DeFi? Looks like it is going to happen and RSK, the smart contract platform on top of Bitcoin, is making a great contribution to the ecosystem.
The on-chain activity for stablecoins has increased 800% in the last 12 months.
The on-chain activity for stablecoins has increased 800% in the last 12 months according to market intelligence firm TokenAnalyst.
This growth is not surprising considering the overall growth of the stablecoin niche. The combined market cap for all stablecoins ranks third in size behind Bitcoin (BTC) and Ether (ETH) and ahead of XRP (XRP).
Over the past year, $290 billion of stablecoins were moved on-chain — in March alone $50.9 billion in value was transferred versus $6.2 billion in April 2019.
Despite the growth of the DeFi industry, more than half of the on-chain activity involves centralized exchanges. In fact, exchange-related activity outranks DeFi five to one.
Of the three stablecoins analyzed Tether (USDT), USDC (USDC) and Dai (Dai), the latter is by far the most “decentralized” with 88% of its on-chain activity qualifying as DeFi. This is because Dai itself is built on a DeFi protocol. On the other hand, 62% of Tether’s activity involves centralized exchanges.
The availability of a variety of stablecoins is useful for crypto investors as it provides a “parking” mechanism to shield their wealth from market volatility. Cashing out is an alternative strategy, but with stablecoins, the investor does not need to exit and re-enter the crypto world which can be inconvenient and incur additional costs.
With both the Dai stablecoin and the DeFi space, lately, exhibiting fragility, some degree of centralization may not prove to be such a bad thing after all.
The post Ethereum is enjoying high stablecoin issuance, but for how long? appeared on BitcoinEthereumNews.com.
After a cruel Black Thursday, Ethereum is finally enjoying a period of sustained performance in the cryptocurrency charts. Over the past week, Ethereum’s valuation had improved steadily as the 2nd…
The uncertain market situation seems to strengthen the stablecoins market cap.
After the tensions on Monday, which saw the US WTI oil price close in negative, even yesterday, after the closing of the May contract, tensions shifted towards the June futures which in a few hours fell below $13.
The tensions are increasing more and more and, if they continue as feared in the coming weeks, this will affect other financial market assets and could also involve other commodities.
These tensions have also put the stock markets in the US and Europe under further pressure yesterday, not only because of what is happening with US crude oil but also because of the problems that persist in the management of the economy.
The Covid crisis seems to have been almost a pretext to blow up what had been boiling for several months, if not years.
In such a tense period, people and even non-professional investors are resorting to stability of their capital, so much so that gold has reached the highest in the last 8 years, rising last week to 1,780 dollars recorded on April 14th.
Gold has also seen a decline in recent days with returns below $1,700, but it remains the main safe-haven asset.
In addition to gold, investors are also looking for protection in fiat currencies, which seems to be the fastest method in these cases. This is why the strongest currency in the world is used.
As a result, the dollar strengthens but at the same time its liquidity decreases. Other assets may find a reason to grow stronger within such a context. Stablecoins, for example, in the last 2-3 weeks see the total market cap in their sector exceed $9 billion, an absolute record.
The ease of moving fiat currencies in the form of stablecoins in this period of high tensions finds more and more application and this makes them exceed the 9 billion capitalization, with Tether that considering yesterday’s record, holds 84% of the market cap with its 7 billion dollars.
Today, after the declines of the last few days, sees the green signs return again. The positive signs prevail with 70% of cryptocurrencies in green, not real rises but a reaction from yesterday’s setbacks.
Among the top 10, the red and green signs are balancing out. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are in negative territory, with moderate declines that do not go beyond 0.5%, while in positive territory there’s Tezos (XTZ) which rises above 1%.
Enjin Coin (ENJ) continues to perform well and today continues to climb with a jump of over 4%. Among the top three of the top 100 there are also DigiByte (DGB) with +8% and Status (SNT) with an increase of about 5%.
Today’s increases allow the total capitalization to return to close to 200 billion dollars.
The dominance of Bitcoin, Ethereum and Ripple remain unchanged from the levels of the last 48 hours.
Bitcoin returns to react to the bearish movement that has characterized the prices of the last 3 days and today tries to recover the $7,000. For Bitcoin, from a bullish point of view, it is necessary to go beyond the $7,150 as soon as possible.
In the case of a violation of yesterday’s lows and specifically of the 6,750 dollars, there would be room to revise the 6,500 and then in the event of a further sinking begin to evaluate the possibility of closing the current monthly cycle with a greater degree of depth than assumed and with a maximum extension that must not go beyond $5,900, otherwise, it would open a delicate and dangerous phase a few days after the halving.
Ethereum remains within the bullish channel that started with the lows of March 16th and that so far draws higher lows and highs in a monthly context.
Ethereum today tries to recover the $175 threshold, former resistance area until last week. For ETH, it is necessary in the coming days to consider closing the monthly cycle around $155-160.
In case this level of support for ETH is held, it will be a positive and upward signal. A possible breakage will have to hold the breakage of the next support identified in the $145 area.
Below this level, the current bullish structure present since mid-March would begin to give a bearish signal of the possibility of a new trend change in the medium term.
The post Stablecoins: rising market cap for Tether and others appeared first on The Cryptonomist.
Stablecoin balances on various crypto exchanges have surpassed all-time highs, while Bitcoin volume has dipped—suggesting that crypto investors are biding their time and waiting for the right moment to resume buying crypto.
At the same time, following a small uptick two weeks ago, Bitcoin trading volume has dropped to its lowest level in over a month—returning to levels seen before the market crash in March.
The Bitcoin market’s 30-day volatility has dropped to around 4.3%; prior to the market crash, it ranged around 2-3%. With only half of Bitcoin holders thinking that the cryptocurrency’s price will go up, it appears that traders are biding their time and waiting for the price to dip before buying in.
There’s been an influx of new money into the market in recent days, with Coinbase CEO Brian Armstrong pointing to a sharp spike in deposits that amounted to exactly $1,200 each—the same amount that Americans recently received in the form of coronavirus stimulus checks from the US government.
— Brian Armstrong (@brian_armstrong) April 16, 2020
While it’s not clear what those Coinbase users have bought on the exchange, it’s clear they’re looking to purchase some form of cryptocurrency. With crypto prices dipping alongside oil, they may have found that buy signal they’re looking for.
The performance of the cryptocurrency market in 2020 has been very erratic, with the global crypto market cap moving by 4% since the beginning of the year from $191.87 billion to $199.74 billion. Howe
The post Stablecoins’ rising market cap can be preventive measure against future instability appeared first on AMBCrypto.
Interest rates on dai deposits have spiked on DeFi platform Compound, another ripple effect of the global financial crisis.
Huobi’s HUSD minting amount of $4.2 million coincides with April 20 day.
Today, April 20, Huobi has reportedly minted some 4,200,000 HUSD worth $4.2 million.
According to data published by Whale Alert, this minting occurred around 7:30 GMT. Social media reactions saw users note this number’s similarities to today’s date — the 20th day of the fourth month.
The stablecoin has not seen much trading volume since its launch in 2018, but it was reactivated on February 7 of this year, and we’ve seen some minting movements from Huobi since then.
As of press time, Huobi’s stablecoin has a reported market cap of $148 million, with a daily trading volume of approximately $20 million. This is well below Binance’s BUSD market cap of $203 million, which also sees twice the trading volume of HUSD.
The HUSD project was announced at the end of 2018 as Huobi’s attempt to win a piece of the stablecoin cake. But sometime in 2019, Huobi’s stablecoin stopped minting it.
This latest minting might be a promotional move, but we can’t officially confirm this speculation. Cointelegraph contacted a Huobi representative for details and this article will be updated accordingly should a response come in.