CBX Weekly Newsletter // 5 Aug 2020
- Bitcoin climbs to $12K and then crashes within seconds
- Ripple Snaps XRP Selling over $32M
- Ethereum is Leading DeFi
Bitcoin climbs to $12K and then crashes within seconds
Bitcoin as well as the whole crypto market had one of the best weeks so far in 2020. After crashing over 50% during the Covid-19 sell-off earlier this year in March, Bitcoin and the rest of ‘alt-coins’ have managed to not only recover but also make new highs for the year.
Bitcoin climbed to $12K last week before crashing over 12% in just 10 minutes. This move was possibly triggered by many stop loss orders set in place due to the massive rally that Bitcoin was having. However, the price is still above $11K as many participants are still interested in buying.
Bitcoin is not the only asset taking the lead, Ethereum also stood-out as a lead bull during this extensive run, due to its applications in the new Decentralized Finance (DeFi) space.
Bullish Scenario
For now there is a clear resistance at $12K anything above that can possibly push prices to last year’s high near $14K. The rest of the ‘alt-coins’ should follow as well.
Bearish Scenario
On the other hand, if prices drop below $10,500 which is a price that has been supported by bulls twice in this run, most likely can pull prices below 5 digits, although this might not be the most probable scenario it’s good to keep it in mind.
Ripple Snaps XRP Selling over $32M
Ripple said Monday that it sold $32.55 million of its XRP cryptocurrency during Q2 2020, a 1,760% jump over Q1’s abysmal sales figures and the first signs of XRP sales growth in nearly a year.
In its Q2 Markets Report released Monday, Ripple reported a surge in over-the-counter (OTC) XRP sales as it reaped the benefits of new liquidity-providing integrations with telco Swisscom Blockchain, swap execution facility Zero Hash and the crypto bank Sygnum.
The third-party trading practice whose mid-Q3 2019 halt contributed to three consecutive quarters of falling XRP sales — will remain paused as Ripple focuses on OTC markets, the issuer said.
XRP volume did not fare as well as sales figures in Q2. Average daily volume fell to 196 million from Q1’s 322 million. Total volume by dollar value nearly halved, to $17.86 billion, from Q1’s $29.68 billion.
Ethereum is Leading DeFi
Ethereum as well as other similar projects such as Kyber, Link, Dai. has raised a lot in both value and popularity this year, and the reason is because DeFi is starting to be accepted in the mainstream world as a way to generate better returns.
While the ICO mania showed Ethereum’s potential as a distributive technology that could emulate, improve upon and democratize the initial stock offering, what was missing then was a simple personal financial use case that could be demonstrated to a friend, such as a mobile app.
In late 2019, the DeFi community was still small compared to today, only a few thousand or possibly even a few hundred users. This term DeFi, the simplest term to describe any peer-to-peer finance app built on Ethereum, requiring a Web 3 wallet like MetaMask, that doesn’t need KYC and has no single point of failure. If ETH is money, DeFi is your bank.
Yield farming is the latest viral meme in Ethereum. DeFi is a larger all-encompassing category of p2p, self-custody, KYC-less, finance apps built on Ethereum, but yield farming describes a popular incentives program where you often provide liquidity to a DeFi application in exchange for a combination of rewards.
Today, the bold experiment of Ethereum is working. Alongside the $4 billion in assets deposited into DeFi, we’ve seen a 227% year-on-year increase in ETH locked in DeFi, and a 20X increase in tokenized BTC on Ethereum (equivalent to ~$220 million) since January 1.
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