One possible drag on the Solana ecosystem is that it uses an alternative coding language to Ethereum and it is not EVM compatible. Unlike on bitcoin core rescanningthe Binance Smart Chain, where projects can essentially copy-paste what has already been built on Ethereum and use the same Solidity tooling, Solana developers need to start from scratch. Solana is written in Rust, which has far fewer Dapp building developers on it than Ethereum.
A new funnel for retail crypto users has opened in the UK with PayPal completing the rollout of its crypto service offering in the country. An announcement from PayPal on Twitter read, “We are delighted to share that all eligible customers in the UK can now buy, hold and sell #Cryptocurrencies #Bitcoin, #Ethereum, #BitcoinCash & #Litecoin from their PayPal account. Look out for it in the PayPal app.”bitcoin kurssi liveThis will mark PayPal’s first crypto service offering outside of the United States. Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto, and digital currencies, told CNBC in an interview last month that PayPal’s crypto service has been doing “really well in the USA” and PayPal expects similar results in the UK.
The Crypto Fear and Greed index measures sentiment and emotions in crypto markets using data like price volatility, social media mentions, and momentum (moving averages). The Fear and Greed index is currently neutral. The crypto markets have had a volatile September with the price of BTC ranging from highs of ~52,600 on September 7th to lows of around ~44,200 on September 13th. Traders and investors feeling a ‘neutral’ sentiment suggests they are unsure of which direction markets will move next.Trading set-ups for the weekPro trader Josh Olszewicz explores trading options and signals for BTC and ETH - and lays out the trading setups he's watching for the upcoming week. Start your week off right with Josh's thoughts on trading strategies on a weekly basis.Crypto news for the week aheadSeptember 25th-26th - Cardano Summit
Cardano (ADA), the third-largest asset in crypto, will host its annual conference this week. The event will be held online and in-person. Leading Cardano community members and engineers will be present physically at London, Miami, Berlin, Cape Town, Wyoming (the location of IOHK's headquarters), and New York for live events as part of the summit. There has been some buzz in the last week about Hydra, Cardano’s recently announced layer 2 scaling solution. ADA is down ~12% in the last week.September 24th - Binance officially delists COVERRobinhood first launched Bitcoin and Ethereum trading services in 2018 for customers in five U.S. states. Robinhood has since expanded its altcoin support and currently allows traders based in all but four U.S. states to access its crypto features.
Crypto services have become a significant part of Robinhood’s revenue in 2021, with its Q2 report showing that around 41% of its $565 million revenue was from crypto trading. By contrast, the firm generated $5 million from crypto trading for the entirety of 2020.Earlier this month, the firm expanded its crypto offerings by launching a recurring crypto investment feature allowing users to dollar cost average (DCA) into crypto positions.Robinhood is not alone in looking to expand its support for crypto, with an increasing number of mainstream firms announcing moves to enable digital asset payments.Cointelegraph reported on Sept. 16 that AMC Entertainment plans to accept movie ticket payments in Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) by 2022. The company already announced plans to support Bitcoin payments in August.
On Sept. 15 software giant Adobe also announced that merchants using its Adobe Commerce product will be able to accept cryptocurrency payments via Paypal from the fourth quarter of this year.DELIVERED EVERY MONDAY
Recent dialogue between MakerDAO developers and the office of anti-crypto Senator Elizabeth Warren’s has revealed a concerning lack of familiarity with the current decentralized finance (DeFi) ecosystem.On Sept. 20, a screenshot began circulating on social media appearing to show dialogue between members of the MakerDAO community discussing the conclusions from a recent meeting between representatives of the project and the office of Senator Warren.In the screenshot, pseudonymous MakerDAO Governance delegate “PaperImperium” claims to have spent much of the time convincing Warren that Maker is not the same project as The DAO — an infamous early experiment in decentralized autonomy organizations (DAOs) that suffered a major hack before failing in 2016.MakerDAO is currently sixth-largest DeFi protocol commanding a total value locked of more than $8.2 billion, according to DeFi Llama.
Despite the confusion, the delegate also concluded that the Senator is “not super interested in us,” adding that they “have a commitment for another meeting” that is expected to take place within roughly three weeks.While the screenshots shared to social media claim appear to be citing Senator Warren directly, a Sept. 17 thread posted to MakerDAO’s governance forum indicates the project’s delegates would be meeting with Warren's “economic and banking advisors.”The meeting comes after increasing efforts from MakerDAO to promote initiatives establishing dialogue between the crypto industry and lawmakers.Elizabeth Warren has recently become a pariah to the crypto industry, labeling crypto as "the new shadow bank" and a "lousy investment" in recent months.
Earlier this month she suggested it would be “worth considering” prohibiting U.S. banks from holding the reserves to back private stablecoins in a move that could “effectively end the surging market.”Related: Sen. Warren goes after Ethereum network fees in committee hearing
The DAO was one of the first major projects on Ethereum, launched in 2016 after raising $150 million USD worth of ETH through a token sale. The DAO was hacked due to code vulnerabilities and $60 million in ETH was stolen less than 3 months after it launched.It was one of the most heavily invested crypto projects to date, having attracted 14% of all circulating ETH at the time.
As a result of the incident, the Ethereum community opted to hard fork Ethereum to reverse the attack, with dissenting voices maintaining the old chain to spawn the Ethereum Classic classic chain.Despite Bitcoin (BTC) dropping below the $43,000 mark on Monday, the outflow of BTC from exchanges has continued in a multi-month trend, particularly on Coinbase Pro.Over the past month, the amount of Bitcoin held in Coinbase Pro’s vaults dropped by 28,843.87 BTC. Similarly, other crypto exchanges, including Kraken, OKEx, Bitfinex and Huobi, also experienced a drop in their Bitcoin holdings, with the withdrawn amount totaling 30,236 BTC across the board.On-chain analysts perceive falling Bitcoin reserves as a bullish signal.That is primarily because most traders move their BTC assets to exchanges only when they prefer to trade them for other assets — be it fiat currencies or altcoins. As a result, the exchange balance serves as a metric to gauge traders’ sentiments for the underlying asset.As a result, Coinbase Pro’s declining Bitcoin reserves hint at its traders’ intention to hold BTC instead of selling it. But, at the same time, its top rival, Binance, has been playing a spoilsport.
However, data also shows that the Bitcoin balance in Binance wallets has risen to 29,717 BTC in the last 30 days, which is more than the amount Coinbase Pro withdrew from its vaults.As the world’s leading crypto exchange by volume, Binance enjoys a certain influence on the market due to its global outreach. The exchange’s rising Bitcoin balances suggest that its users could sell an increasing amount of BTC, the opposite of the trend seen on Coinbase.
The increase in Bitcoin reserves on Binance also reached levels that followed up with the market sell-offs during the second quarter of 2021. Notably, the Bitcoin balance on the exchange spiked from 199,700 BTC on April 20 to 347,590 BTC on June 26.The same period saw BTC/USD drop from around $65,000 to below $30,000, including the notorious May 19 crash when Bitcoin plunged by more than 30%.
Bitcoin trading at $300 premium on BinanceThe massive spike in Bitcoin reserves on Binance also coincided with premium BTC/USD bids on the exchange, with the BTC spot price being almost $400 higher on Binance than on Coinbase.
The vast price difference created arbitrage trading opportunities, coinciding with Binance’s Bitcoin reserves adding 1,529 BTC in the previous 24 hours compared to Coinbase that processed withdrawals of 579 BTC.As a reminder, exchanges still processed more than 30,000 BTC in withdrawals in the past 30 days, signaling that traders overall wanted to hold their crypto rather than sell it for other assets.But given Binance’s trading volumes (~$24 billion) in the previous 24 hours were six times higher than Coinbase Pro’s (~$4.23 billion) at press time — as per data collected from CoinMarketCap — the probability of an interim Bitcoin price drop appeared high.Fall is traditionally the open season for United States financial regulators. The thicket of news coming out of Capitol Hill, federal courts and various regulatory agencies can feel overwhelming around this time, especially for those of us residing outside of these venerable institutions’ purview. It is also clear that the outcomes of these legal battles will have tremendous effects on crypto markets, adoption and, generally, the relationship between state power and the industry worldwide. But that is not the only reason for anyone interested in how the old world adapts to digital finance to follow U.S. developments closely.
Security and Exchange Commission Chair Gary Gensler appeared in front of the Senate Committee on Banking, Housing, and Urban Affairs last week. During the hearing, we didn’t get much clarity on how Gensler wants to handle stablecoins beyond his opinion that many of them “might well be securities.”It was good to at least see some senators, such as Pat Toomey, willing to call Gensler out for inconsistencies and omissions in his argumentation. What was worrisome was seeing mostly Republicans on the stop-stifling-innovation side and mostly Democrats on the stricter-investor-protection side (despite all the laughs and memes that Senator Warren’s Ethereum fees spiel produced). Crypto becoming yet another partisan issue is a nightmare scenario — luckily, it does not seem to be that way outside of this particular Senate hearing yet.
The Commodity Futures Trading Commission, which has historically been more lenient toward the corner of the crypto space that falls under its jurisdiction, will soon have a permanent chairman and two new commissioners. All three nominees — the acting chairman who spoke amply in favor of innovation, a legal scholar specializing in digital finance, and another with a strong enforcement background — seem to have the potential to be a force for good for crypto, but let’s not get too excited just yet.The rest of the world keeps supplying major policy developments for digital assets. Cuba recognized cryptocurrency and now allows its use as a remittance and investment vehicle. Over in El Salvador, President Nayib Bukele’s opponents made a political statement by setting a crypto kiosk ablaze. In South Korea, the majority party clashed with the finance minister over a controversial crypto tax code, attempting to postpone its implementation. Notice a common theme? All over the world, cryptocurrency-related issues are part of political agendas.
In the increasingly competitive landscape of blockchain technology and cryptocurrencies, protocol innovation and the ability to solve the biggest problems facing the crypto community are necessary for any project that looks to have long-term success in the ecosystem.Recently, the emergence of layer-2 technology like Arbitrum, Optimism and a bridge to the Avalanche ecosystem is revolutionizing the way investors, builders and developers interact with various protocols because each facilitates fast, low-cost transactions that improve the fundamentals of the decentralized finance (DeFi) ecosystem while also making it easier for retail-sized investors to capitalize on opportunities.
According to data from Token Terminal, DeFi continues to be one of the fastest-growing sectors of the crypto economy as evidenced by increases in the total value locked (TVL) on protocols. Some of the biggest gains from last week occurred on cross-chain compatible networks and layer-two protocols that offer a lower fee environment.Two of the top-6 projects on the list above, Trader Joe and Pangolin, are found in the Avalanche network which has seen significant inflows and an increase in TVL since the launch of an upgraded cross-chain bridge that allows Ethereum-based tokens and applications to migrate to the Avalanche ecosystem.Governance features have also been a positive factor in helping spark new growth for projects as both Alchemix Finance and Rari Capital have ongoing, or recently completed votes designed to improve their ecosystems and increase community involvement.Another emerging trend shown in the data from Token Terminal is the growing strength of derivatives and options trading protocols as regulators increasingly crack down on centralized exchanges that offer derivatives services and have loose KYC and AML requirements.
As shown on the chart above, two of the biggest gainers in terms of protocol revenue over the past week were dYdX and Hegic, a pair of protocols that offer decentralized derivatives and on-chain options trading to investors.Global regulators have increased their scrutiny on leveraged and derivatives trading platforms in recent months, while at the same time, established exchanges like Coinbase have applied to offer futures trading services, indicating that this is one sector poised for continued growth as cryptocurrencies become more mainstream.
dYdX has also benefited from the fact that it operates on a layer-two solution developed in conjunction with StarkWare that enables cross-margined perpetual's with zero gas costs and minimal trading fees.Data shows that Ethereum-competitors such as Tezos (XTZ) and Cosmos (ATOM) have al seen an increase in revenue over the past week, suggesting that the layer-1 battle is heating up as high fees on the Ethereum network continue to motivate users to explore other options.
FTX, one of the world’s largest cryptocurrency exchanges, continues expanding operations by inking major regulatory approval in The Bahamas.The Securities Commission of The Bahamas has registered FTX Digital Markets, the Bahamian subsidiary of the global FTX crypto exchange, as an official digital asset business, the firm announced Sept. 20.