Kategorie: Blog

• Cryptocurrency market cap stayed flat in the last 24 hours, with Bitcoin increasing by 1.65% and Ethereum decreasing by 0.50%.
• Tether (USDT) market cap increased to $74.47 billion while Binance USD (BUSD) remained flat at $8.34 billion and USD Coin (USDC) decreased to $37.49 billion.
• Prom was the top gainer with 35.28% increase, followed by Gains Network and Mask Network which rose 20.34% and 12.94%, respectively.

CryptoSlate wMarket Update

The wMarket Update condenses the most important price movements in the crypto markets over the reporting period, published 07:45 ET on weekdays.

Overall Market Performance

In the last 24 hours, the cryptocurrency market cap remained flat at 1.09 trillion despite declining by around 0.16% during the reporting period.

Bitcoin market cap increased by 1.65% to $482.10 billion, while Ethereum’s market cap decreased by 0.50% to $203.92 billion, respectively.

All top 10 cryptocurrencies recorded losses in the last 24 hours, except Bitcoin and BNB, which rose 1.59% and 2.8%, respectively.

Stablecoins

In the last 24 hours, the market cap of Tether (USDT) increased to $74

• Binance is the world’s largest centralized crypto exchange, increasing its share of the business from 59.4% to 61.8%.
• Zero fee Bitcoin trading has been a significant contributing factor for Binance’s success.
• Despite global expansion efforts, FUD still surrounds the exchange as regulators increase scrutiny.

Binance Dominates Crypto Exchange Market

According to new data, Binance is the world’s largest centralized crypto exchange, with its share of the business increasing from 59.4% in January to 61.8% in February. This surge in spot volumes was largely attributed to Binance introducing zero-fee Bitcoin trading on 13 spots pairs back in July 2022.

Competitors Struggle To Keep Up

Despite this impressive growth, competitors are struggling to keep up with Coinbase seeing a 29% decrease in traded volume ($39.9 billion) and Kraken experiencing an 11% drop ($19.3 billion). OKX and Bybit followed behind with 14% and 13.3% market share respectively.

Zero Fee Trading Impactful

The introduction of zero-fee Bitcoin trading no doubt had a major impact on Binance’s success; since BTC represents a substantial portion of the crypto market’s trade volume, removing fees has had a huge effect on their dominance of spot trading volume market share across derivative exchanges grew to 62.9%, which is their highest monthly market share ever recorded for them.

Binance Intensifies Global Expansion

In spite of bear markets, Binance is intensifying its global expansion efforts by registering as a Financial Service Provider in New Zealand and other countries like South Korea and Japan resulting in an influx of new traders for the exchange hence enhancing its dominance in trading volume among others .

Regulatory Scrutiny Growing However news that regulators are starting to intensify their scrutiny has created fear uncertainty and doubt surrounding Binance though Changpeng Zhao (Binace co-founder & CEO) said that focus shifts more towards product development , refinement & education as volumes rise .

Summary

• For the first time since May 5, 2019, the short-term holder realized price is above-realized price.
• This same event also occurred in the 2015 bear market on Nov. 3, 2015.
• The Bitcoin price must remain above $20,000 in the short term to increase the cost basis of the STH cohort.

Background

Bitcoin is currently going through a bear market cycle which has been seen previously. The metric used to measure this bear market is called Realized Price which reflects the average on-chain acquisition price for the entire coin supply. This can be subdivided into two more metrics: Short-Term Holder (STH) Realized Price and Long-Term Holder (LTH) Realized Price. STH Realized Price reflects coins held outside exchange reserves that were moved within last 155 days and LTH Realized Price reflects coins held outside exchange reserves that have not moved within last 155 days.

Significance

For the first time since May 5, 2019, this current bear market cycle has seen STH realized price exceed realized price. This same event also occurred in 2015’s bear market on Nov. 3, 2015 as well. At present, STH realized price is at $19,892 while realized price is at $19,850; thus it is important for Bitcoin’s price to stay above $20K in order for STH cost basis to increase. In addition, if STH realized price manages to get higher than LTH realized prices — which are currently a difference of $3K — then this could signal an end to this bear market cycle.

Analysis

In order to accurately assess what effect this could have on Bitcoin’s future performance it will be important to closely monitor both STH and LTH realized prices over upcoming weeks and see if any further developments occur or whether there will simply be no change in momentum due to different factors such as increased selling pressure or increased buying pressure from institutional investors etc. It should also be noted that even though these metrics can provide some insight into how certain parts of crypto markets work they do not tell us anything about how general sentiment surrounding cryptocurrencies may or may not be changing over time as those changes are much harder to accurately measure without additional data sources being taken into account such as investor sentiment surveys etc.

>
It appears that for now at least we have seen STH realize prices exceed current realize prices which could signal a potential end for this bear market cycle but only time will tell if that prediction turns out correct or incorrect based on further developments over upcoming weeks and months. In addition it should also be kept in mind that these metrics merely represent one small part of broader cryptocurrency markets so their relevance might become limited depending upon what else happens around them in terms of investors sentiment etcetera

• The International Monetary Fund (IMF) has warned against giving cryptocurrencies the status of legal tender or official currency as it could lead to adverse effects on a nation’s monetary sovereignty and stability.
• The agency proposed nine elements in order to create effective policies for crypto assets, including minimizing its use for official payments and avoiding guaranteeing crypto to fiat conversions.
• The IMF also suggested that governments build stronger institutions and create transparent, coherent and consistent policies in order to reduce the substitution of fiat into cryptocurrencies.

IMF Warns Against Giving Crypto Official Currency Status

The International Monetary Fund (IMF) has warned against granting cryptocurrencies the status of legal tender or official currency as it can cause significant problems with regards to monetary, sovereign and financial stability. To combat this, the agency has proposed nine elements which should be taken into account when creating effective policies for crypto assets.

Minimizing Use For Official Payments

One element suggested by the IMF is that governments should minimize its use for official payments in order to safeguard against volatility issues. It also suggested avoiding guaranteeing crypto-fiat conversions so as not to expose traditional financial institutions too much risk from these volatile assets.

Building Stronger Institutions And Policies

The IMF believes that building stronger domestic institutions and creating solid policies are key to reducing people’s inclination to convert their fiat into cryptocurrencies instead of other foreign currencies. The agency recommends creating a transparent, coherent and consistent Monetary Policy Framework (MPF) in order to ensure credibility and trust in the traditional system.

Adverse Effects On Monetary Sovereignty

According to the UN financial agency, granting crypto official currency or legal tender status can lead to negative impacts on a nation’s monetary sovereignty and stability due to its potential exposure of traditional financial systems to these volatile assets. Therefore, it is important for governments take proper precautions when considering such moves as they could have far reaching implications on their economy if not done correctly.

Conclusion

To sum up, the IMF’s position on giving cryptocurrencies legal tender status or official currency is clear: doing so can cause serious problems with regards to monetary sovereignty and stability that must be addressed before any such move is made. Governments should therefore take great care when crafting their cryptocurrency policy frameworks if they want avoid any potential pitfalls associated with such an action

Overview

• Binance.US sent $404 million to a firm managed by Binance CEO Changpeng Zhao.
• This transfer implies that Zhao has a possibly inappropriate financial connection to Binance.US.
• The SEC is investigating Binance.US and its partners for possible conflict of interest.

Details of the Transfer

In late 2020 and early 2021, Binance.US, under the name BAM Trading, sent millions of dollars from an account at Silvergate Bank to trading firm Merit Peak Ltd., which is managed by Binance CEO Changpeng Zhao. This could suggest that Zhao has a financial connection to Binance.US, raising questions about potential conflicts of interest between the two entities. It is unknown why these funds were transferred or if they belonged to exchange customers.

Catherine Coley’s Departure

Around the same time as the transfers took place, Catherine Coley—formerly the CEO of Binance US—suddenly left her role and went dark on social media. Reuters reports that Coley noticed these unusual transactions and questioned other staff members before leaving her position with the company.

SEC Investigation

The connections between Binance US and Merit Peak have been observed since February 2022, when it was reported that the U.S Securities & Exchange Commission (SEC) were investigating various partners associated with the exchange. The SEC had already issued subpoenas in 2020 regarding this matter and are continuing their investigation into possible conflicts of interest surrounding this case.

Binance’s Response

Binance US declined to comment on the transfers but told Reuters that they had accessed “outdated information” about them; furthermore, they stated that Merit Peak isn’t using their trading services anymore — though it is unclear when this ceased being true .

• Paxos denies rumors of OCC bank charter rejection.
• The OCC granted preliminary approval for the charter in April 2021, which is now over due.
• Separate rumors state that Paxos faces a probe from the New York Department of Financial Services (NYDFS).

Paxos Denies Bank Charter Rejection Rumors

Stablecoin issuer Paxos has denied rumors that it has been denied a national bank charter from the Office of the Comptroller of the Currency (OCC). According to Paxos, the OCC has not rejected its application for the charter, nor has it asked them to withdraw their application.

Preliminary Approval From OCC

In April 2021, the OCC granted preliminary approval to Paxos and gave it 18 months to open its chartered bank. It has now been 22 months since that date, making it four months overdue. If approved, Paxos would operate as a federally regulated digital asset bank alongside competitors Anchorage and Protego across all U.S. states without needing individual licenses.

Rumors Of NYDFS Investigation

Separate rumors emerged on Feb 9th suggesting that Paxos faces an investigation from the New York Department of Financial Services (NYDFS). No reasons have been disclosed and neither party has publicly confirmed any probes yet.

Responsible For Binance USD & PAX Dollar

Paxos is responsible for two popular stablecoins: Binance USD (BUSD) and PAX Dollar (USDP). In addition to this, they are also responsible for operating a crypto brokerage as well as powering PayPal’s crypto trading capabilities.

Continuing To Work Constructively With The OCC

Despite all these rumors, Paxos reassured its customers that they are continuing to work constructively with the OCC in order to obtain their national bank charter if possible.

• The Bitcoin Fear and Greed Index (FGI) has moved back into the “greed” zone for the first time since March 30, 2022.
• The index uses a combination of technical and fundamental analysis to measure market sentiment, and is based on metrics including volatility, market momentum/trend, trading volume, social media sentiment, and surveys.
• Bitcoin remains stable at around $23,000 as the index signals a bullish sentiment.

The Bitcoin Fear and Greed Index (FGI) has moved back into the “greed” zone for the first time since March 30, 2022. This is a significant milestone, as it indicates that the sentiment of the market is bullish and that the original cryptocurrency is making significant strides after plummeting to below $16,000 and a two-year low in 2022.

The FGI is published by alternative.me, a website that tracks alternative investments, including Bitcoin. The index uses a combination of technical and fundamental analysis to measure market sentiment and ranges from 0 to 100, with a higher score indicating a higher level of fear and a lower score indicating a higher level of greed.

The various metrics that make up the FGI include volatility, market momentum/trend, trading volume, social media sentiment, and surveys. Volatility is measured by the daily standard deviation of returns and market momentum/trend looks at the direction of the moving averages and the gap between them. Trading volume analyzes the buying and selling pressure of BTC and social media sentiment looks for positive and negative mentions of BTC in social media. Lastly, surveys of investors and traders are used to gauge sentiment towards BTC and the cryptocurrency market as a whole.

The news comes as BTC remains stable at around $23,000 going into the weekend. This is also a bullish signal, as BTC is up nearly 40% year-to-date. With the FGI now firmly in the “greed” zone, the sentiment of the market is looking positive and investors are feeling confident that the original cryptocurrency will continue to make gains.

• Bitcoin dominance has hit 41.5% as of Jan. 20 — the highest level over six months.
• Ethereum dominance is also up and currently stands at 19.4%.
• The market cap for the entire crypto space sits at just under $1 trillion.

The crypto world is abuzz with the news that Bitcoin’s dominance has hit 41.5% as of Jan. 20, the highest level it has been since July of 2022. This metric measures Bitcoin’s current share of the global crypto market cap versus other cryptocurrencies. The news of Bitcoin’s increased dominance is also accompanied by an increase in Ethereum’s dominance, currently standing at 19.4%.

The current market cap for the entire crypto space sits at just under $1 trillion, making it one of the largest asset classes in the world. The BTC-ETH Dominance metric is an oscillator that tracks the macro outperformance trends between the top two crypto-assets. The lower values and downtrends of the metric indicate an outperformance of ETH over Bitcoin, meaning that Ethereum has been outperforming Bitcoin since early 2021.

Investors have been watching the crypto space closely as Bitcoin’s dominance reaches new highs. Many are speculating as to what will happen next and if Bitcoin’s dominance will continue to grow. With the continued growth of the crypto space and the increasing awareness of its potential, it is likely that Bitcoin will remain a key player in the market. Even though Ethereum has been outperforming Bitcoin in recent months, it is still far behind Bitcoin in terms of market cap.

However, one thing is certain, the crypto market is a highly volatile one and anything can happen at any moment. As more people become aware of the potential of crypto assets, it is highly likely that the market will continue to grow and become more stable. As more people invest in crypto assets, the market cap will continue to rise and the crypto space will become more mature.

•FTX’s collapse led to market uncertainty and low trust in centralized exchanges, resulting in 3.93 billion stablecoins leaving exchanges since then.
•USDt remains the largest stablecoin by market cap, with the big four stablecoins contributing more than $130 billion to the sector’s total market cap of $138 billion.
•At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges, with Binance holding the highest amount at $24 billion.

The cryptocurrency industry has been gradually growing in strength and popularity, and along with it, its associated stablecoins have been gaining traction too. Stablecoins offer stability against cryptocurrency volatility, and as such, they have become an integral part of the industry. USDT remains the largest stablecoin by market cap, with USDC, Binance USD, and DAI making up the top 4. The entire stablecoin sector has a market cap of $138 billion, with the big four stablecoins contributing more than $130 billion to the figure.

At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges. Binance is the highest contributor to this figure, with about $24 billion in stablecoins in its reserve. Coinbase has more than $973 million, Huobi $709 million, Bitfinex $145 million, Gemini 98 million, and Gate.io $78 million.

However, the collapse of FTX has lead to market uncertainty and low trust in centralized exchanges, resulting in 3.93 billion stablecoins leaving exchanges in the last 30 days. This has been a major blow to the confidence of the market, as investors are now forced to keep their holdings on decentralized exchanges or in cold storage to ensure their assets are safe.

In light of this, the crypto industry is now looking for ways to ensure the safety of assets, and to increase the trust of investors in centralized exchanges. Whether or not these issues can be resolved in the near future remains to be seen, but it is clear that the industry is working towards a more secure future.

• Meld, a “DeFi, non-custodial, banking protocol”, has denied accusations of insider trading.
• The accusations came from on-chain analysis conducted by TapTools, which highlighted a series of large token sales from a single address.
• Meld stated that the address belongs to a private sale token holder and that they have no control over the actions of such holders.

Meld, a decentralized finance (DeFi) and non-custodial banking protocol, has denied allegations of insider trading. The accusations surfaced after on-chain analysis conducted by TapTools identified a series of large token sales from a single address. The address had sold tokens worth 1.24 million ADA, or about $405,000 at today’s price. TapTools also identified two associated addresses that had sold but never bought MELD tokens, worth a combined 1.04M $ADA, or approximately $340,000. TapTools asked, „where did the tokens come from?“ while speculating the address is controlled by an insider.

In response, Meld denied any involvement and stated the address belongs to a private sale token holder and they have no control over the actions of such holders. The company further clarified that no staff members were involved or benefited from the token sales. Meld also confirmed it has no control over the actions of private sale token holders and that no insider trading had taken place on its platform.

The news is likely to further bolster confidence in the Cardano (ADA) protocol, as it has been gaining ground in the DeFi space. The protocol has seen positive adoption in recent months, and its native token, ADA, is up over 300% in the past year. With the allegations now denied, the protocol is expected to continue its growth. As such, Cardano is likely to remain one of the leading DeFi protocols for the foreseeable future.