Crypto Highlights Week #38 – Over 15% ETH Supply locked in smart contracts BTC dominance declining

Crypto Highlights: Crypto is replication the 2017 bull run, FED cuts interest rate near zero, 15% of ETH supply now locked in DeFi, India’s Crypto bill, Kraken now a chartered bank: these and more in this week’s crypto highlights.

Top Headlines Of The Week

• Taking into consideration the current crypto market rally, the DeFi craze, and the renewed interest in ICO, the current crypto market seems to mirror the 2017 bull run.
• As Bitcoin dominance goes south, a staggering 15% of ETH supply has been locked in smart contracts as DeFi continues to blow hot.
• Whales and institutions continue to accumulate Bitcoin as key metrics show that a new Bitcoin bull run is imminent.

Top Stories Of The Week

Fed Experts near 0% interest rates for years potentially boosting BTC’s value proposition

Bitcoin has continued to maintain an inverse relationship with the U.S dollar and has appreciated significantly as the dollar plunged. The U.S Federal Reserve’s decision to maintain short term interest rates between 0% and 0.25 percent may augur well for Bitcoin as more people look to hedge against inflation.

As debates for interest rates continue, the majority of Feds committee members propose rates close to 0% will possibly last for another three years. This effort which is geared towards alleviating the impact of the Covid-19 pandemic on the nation’s economy could resort to another plunge in the value of the US dollar.

Though mainstream and institutional adoption will be a thing to look forward to, however, Bitcoin has over the years proven to be a true store of value and its prices continue to rise even after many falls.

Kraken, first Crypto Exchange turn Chartered Bank

Securing the spotlight in this week’s crypto highlights is Kraken, the first crypto exchange to become a bank. The Wednesday poll by the Wyoming banking board empowered Kraken, a San Francisco based Crypto Exchange giant with rights to operate a special purpose depository institution (SPDI) via a Charter. By this Charter, Kraken could access the federal payment framework in the United States.

David Kinitsky, CEO of Kraken Financials stated that “We can more seamlessly integrate Banking and funding options for customers”. This comes after the United States Office of the Comptroller of currency gave National Banks the permission to proceed in crypto custody sometime in July.

CEO Kinitsky is keen about Kraken’s position as the first Crypto Exchange turned State’s Chartered Bank, he reveals what services should be expected. We would expect to offer a host of new products as we get established. Kinitsky plans on going big on Kraken Financials having the ability to operate in more jurisdictions.

Furthermore to get a crypto-friendly banking charter in Wyoming, a statement by Caitlin Long, a Wyoming blockchain Pioneer shows that if an SPDI bank goes bankrupt the assets remain the customer’s properties and have to be returned. This unarguably sounds good for investors and a step further in mainstream crypto adoption.

Leaked EU draft proposes all-encompassing laws For crypto assets

European Commission’s MiCA and MiFID has set forth a legal framework for Securities markets, investment intermediaries, and trading venues targeted at regulating digital assets. It is however unclear the impact this would have on Crypto.

MiCA’s manifesto broadly defines and lays down crypto assets issuers’ requirements in line with the definition of the virtual assets service provider VASP by Financial Action Task Force(FATF). There is a particular focus on stablecoins in Europe, which are defined as either asset-referenced tokens or e-money tokens.

With global Mass adoption in view, the need for regulatory obligations, especially for crypto assets issuers and service providers become expedient. Brussels will release a set of 168-page drafts of regulatory guidelines in September which when signed to the law will be applicable throughout the EEA.

More Updates From Last Week

Over 15% ETH Supply locked in smart contracts BTC dominance declining

The rapid growth experienced by decentralized finance protocol (DeFi) in recent times contributes to an increase in assets locked in Smart contracts. A report shows that over 15% of ETH is locked up in smart contracts, with about 5% in wrapped ether (ETH). A greater portion of smart contract balances is for exchange multisigs. This growth led to the inevitable decline of BTC dominance.

In spite of the declining dominance, the underlying structure of Bitcoin remains bullish.  BTC still showed “bullish fundamentals, both in terms of on-chain activity and price trends.” Also, taking note of the interesting similarities between what happened during the 2017 ICO boom and the current DeFi craze, we can argue that the bullish sentiment remains intact.

This suggests that BTC’s waning market dominance might be permanent this time around, as far as retail crypto investors are concerned. However, given the growing interest in BTC by institutional investors, the digital currency stands a “better chance of attracting investment from traditional hedge funds than the DeFi community.”

Indians Crypto Bill Omitted from Parliament’s agenda while new ban report appears.

Exponential growth rates and mass adoption of cryptocurrencies isn’t enough, countries like India are still skeptical and are not yet ready to take a stance.

India’s parliament dodges the crypto bill for the second time in a row. Reports from various sources indicate that the Indian government frowns at cryptocurrencies. The recent Crypto draft bill still suggests it’s ban in India. However, blockchain technology is allowed.

Mohammed Danish Indian co-founder of Crypto Kanoon posits that “this law can be challenged by crypto business, traders, or enthusiasts based on various rights available to them under the Constitution.”

Exclusive From SaTT

The crypto Market is replicating the 2017 Bull Run

Even though the third quarter of every year has been historically bearish for Bitcoin, the entire cryptocurrency market seems to be replicating the same bullish momentum witnessed in 2017. This trend has had a snowball effect on the entire cryptocurrency market, rubbing off on the altcoin rally, the DeFi boom, and ICO renewed interest. We have had a remarkable experience in our token sale which ends in a few days.

We are proud to announce to the community that we have reached our ICO has reached its soft cap with a big bang, having sold over $1 million within 48 hours. At the time of writing, we have already completed over $4.3m in our ICO.

Following this massive success, we will be getting listed on Kucoin and Uniswap, and a couple of other exchanges will be revealed in the coming days. More exciting for the community, we will also be burning any token left unsold prior to the listing date, September 24.

This Week’s Market Sentiment

Bitcoin price volatility expected as 47% of BTC options expire next Friday

As Bitcoin hovers around the $11k mark, traders will be on the outlook for trend definition as 47% of Bitcoin Options expire next Friday, meaning BTC could be on the verge of a trend defining move. The open interest on Bitcoin (BTC) Options is just 5% short of their all-time high, but nearly half of this amount will be terminated in the upcoming September expiry.

BTC’s open interest has crossed the $2 billion barriers, a number that looks highly desirable for Bitcoin. Coincidentally that’s the same level that was achieved at the past two expiries. It is normal that this number will decrease after each calendar month settlement.

However, there’s an unusual concentration of short-term options. This strategy consists of buying BTC either via spot (regular) or futures markets and simultaneously selling call options. At expiry, this trader will be liquidating both his positions on spot, futures, and options markets. As long as Bitcoin options don’t fall below $1.5 billion, everything still looks desirable for Bitcoin.

This Week’s Crypto Meme

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.