Crypto Highlights: DeFi and Ethereum high fees create a ‘perfect storm’, YFI DeFi token surges pass Bitcoin price, Ethereum miners kick against block rewards reduction, Grayscale’s Bitcoin bullish insight: These and more in this week’s market sentiment.
Headlines Of The Week
- The past week saw the native token for Omisego Network doubling as Ethereum fees led some investors to look to layer 2 solutions.
- Warren Buffett recently changed his mind about gold as an investment, prompting some people to think that he might do the same with Bitcoin.
- According to the Grayscale report, the currency Bitcoin Market ‘Looks Like 2016, Before Historic Bull Run’.
Top Stories Of The Week
Warren Buffett recently changed his mind about gold as an investment, prompting some people to think that he might do the same with bitcoin. In times past, the billionaire investor had been very expressive about his unwillingness to hedge his wealth with gold. He preferred to buy shares of good companies.
This is probably changing as Buffett’s company Berkshire Hathaway, revealed on Friday that it had dumped bank stocks and took a position in a gold miner; Bitcoin proponents are of the view that the Oracle of Omaha may consider investing in Bitcoin which he has made no secret of disliking.
Among other twitter speculators, Max Keiser sees Buffett’s gold investment as positive for Bitcoin. He maintained that Buffett will start panic-buying the cryptocurrency at $50,000.
Warren Buffett and cryptocurrenty; always a very interesting subject. This deserves a top spot in this crypto highlights.
Monthly Reports from Pantera Capital Indicates People Should Get Out of Fiat Money In Order To Protect Their Wealth
The basic highlight of Pantera capital’s most recently released monthly report is that fiat money is losing its value and people should get out of it. The report emphasizes the mass of debt in the United States given the pandemic of COVID-19 taking over the world and collapsing the world’s economies.
They also pointed out that “… the United States printed more money in June than in the first two centuries after its founding”. Last month, the US budget deficit-864 billion-was larger than the total debt incurred from 1776 through the end of 1979.”
But when it comes to Bitcoin and other cryptocurrencies, there is no inflation and with this, there is no need for inflation-adjusted numbers. Other than Bitcoin, gold appears to be another relatively reliable alternative store of value.
It appears that the explosive growth of decentralized finance along with the recent fallback in BTC has propelled the price of a single YFI to be passed that of Bitcoin. CoinGecko explained that YFI increased by 35% in the past 24 hours and is presently trading at nearly $13,500. Meanwhile, Bitcoin has fallen back below $11,800.
What is interesting is that YFI only launched four weeks ago – initially trading at just $32; it surged to $400. Note that it is the price of one YFI that is more than one BTC and the overall market value of Bitcoin continues to be vastly greater.
Also, CoinGecko’s comprehensive pricing data shows that YFI is the only token priced above BTC although generally there are other tokens priced above Bitcoin. Frankly, YFI is the only one with notable trading volume.
More from Top Stories
The past week saw the native token for OMG Network doubling as Ethereum fees led some investors to look to layer 2 solutions. CoinGecko data shows OMG tokens have increased by 115% from $1.70 to $3.65 in the past seven days – with the price surging by 30% in the past 24 hours.
The rally means OMG’s market cap has surged by approximately $275 million since this time last week. OMG’s price has increased by nearly 1,000%. Denis Vinokourov, research head at crypto exchange BeQuant, told CoinDesk that OMG Network was benefitting from a “perfect storm” of industry-wide developments.
The craze around DeFi – a subset that has exploded to well over $6 billion – has seen a surge in activity on Ethereum, leading to soaring fees. Consequently, investors are looking to layer 2 solutions.
Ethereum miners have slammed the new Ethereum improvement proposal (EIP)-2878 with sharp criticisms following the August 11 proposal. The developers of the EIP want to block rewards to be slashed by 75%, from 2 ETH per block down to 0.5 ETH. Rationale behind this EIP is to bring Ethereum’s inflation rate closer to that of Bitcoin’s, hence preserving ETH’s purchasing power.
Proponents of the EIP, ConsenSys Managing Director John Lilic, and Ledger’s Global Head of Client, Success Jerome de Tychey gave this proposal along with an explanation on the Ethereum Magicians forum.
Miners did not resist to air their opinions as they called out the proposal. This suggests that instead of the proponents of the proposal to be more interested in the network’s security, they are focused on investors’ interests.
Advertising is a front runner growth tool utilized by most companies and businesses to market their business products and increase their market share. SaTT combines the two basic types of advertising roles: traditional marketing and influencer marketing, then provides an attractive incentive model on the blockchain.
A key aspect of the SaTT advertising ecosystem is that advertisers are in charge of the metrics they want to see, for example, advertisers are at liberty to choose the price per clicks, views, shares, comments, etc.
More Interestingly, cryptocurrency SATT which powers the SaTT solution will be getting an exchange listing in a month’s time and will be freely traded. This move is in line with their core effort to make SaTT a globally accessible blockchain-based product.
This Week’s Market Sentiment
Crypto fund manager, Grayscale Investments reported that the current Bitcoin (BTC) market structure reflects that of early 2016 before it began its historic bull run. Grayscale also projected that the demand for Bitcoin will increase as inflation hits the roof. This emphasizes the need for a scarce monetary commodity, bolstering the use-case of the cryptocurrency.
The Report highlights a number of on-chain pointers showing a growing interest in crypto and noting an increase in long-term holding over short-term speculation, amid historic lows for the number of Bitcoin held on exchanges. The fund manager also noted that daily active addresses are at their highest level since 2017’s all-time highs
Crypto may be the way forward especially when considering the US’ addictive reliance on quantitative easing (money printing) to stay afloat.
Crypto Meme of the Week
We hope you enjoyed this week’s edition of crypto highlights . For a peek at our last edition of crypto highlights & blockchain news, click here.