Crypto Daily News from ZBG Exchange
1. Market Wrap: Yearn, EOS Rise Over 30% While Ether and Bitcoin Eke Out Small Gains
The DeFi-related assets have grown by double digits so far this year.
Decentralized finance (DeFi) tokens yearn.finance and eos climbed by over a third in spot price Tuesday. Ether and bitcoin were in slightly higher.
Yearn.finance (YFI) trading around $78,849 as of 21:00 UTC (4 p.m. ET). Gaining 48% over the previous 24 hours.
Eos (EOS) trading around $12.82 as of 21:00 UTC (4 p.m. ET). Gaining 36.6% over the previous 24 hours.
Ether (ETH) trading around $4,068 as of 21:00 UTC (4 p.m. ET). Gaining 0.66% over the previous 24 hours.
Ether’s 24-hour range: $3,810-$4,074
Bitcoin (BTC) trading around $56,724 as of 21:00 UTC (4 p.m. ET). Gaining 1.3% over the previous 24 hours.
Bitcoin’s 24-hour range: $54,657-$56,855
The biggest CoinDesk 20 gainers Tuesday were yearn.finance (YFI), up 48%, and eos (EOS), jumping 36.6% as of 21:00 UTC
Rich Rosenblum, co-founder of crypto market maker GSR, told CoinDesk the jump in YFI, which is a lending and yield service where users can park crypto to make gains, comes from its ease of use.
2. Ether’s Run Takes 2021 to the Known Edges of Altcoin Season
Ether is outpacing bitcoin by more than it did in 2017.
Cryptocurrency markets tend to vacillate between bitcoin-led regimes and altcoin-led regimes. In this view of the category, bitcoin is the original currency and everything else, including ethereum, is an alternative, based on the same principles but with tweaks or additions.
The altcoin-led regimes are called “alt seasons.” Ether’s rapid rise since the start of the year (it passed $4,000 over the weekend) has put 2021 so far firmly into alt season, following a the fourth quarter of last year that was led by bitcoin. Timing shifts in momentum between cycles such as these is important for investors seeking to maximize their returns in a crypto bull market.
3. SEC Staff Calls Bitcoin ‘Highly Speculative,’ Hints at ETF Skepticism
SEC staff intend to determine whether the “Bitcoin futures market could accommodate ETFs,” the note said.
The U.S. Securities and Exchange Commission (SEC) hinted that the bitcoin (BTC, +3.25%) market’s volatility may mean it’s not yet ready to support an exchange-traded fund (ETF), though it’s monitoring the digital asset sector and is seeking input.
Bitcoin is a “highly speculative” asset, the staff statement, published Tuesday by the Division of Investment Management, said. The note warned that investors in mutual funds that trade bitcoin futures may be taking on more risk than they’re aware of.
The warning comes as high profile funds from Morgan Stanley and BlackRock begin to diversify into bitcoin through adjacent products like cash-settled bitcoin futures and Grayscale’s Bitcoin Trust. Those bets represent major steps in the institutional adoption trend of the last 12 months.
4. What Stanley Druckenmiller’s Inflation Warning Means for Crypto
One of the greatest forex traders in history believes a cryptocurrency is the “most likely” global reserve currency to replace the dollar.
Hedge fund and forex titan Stanley Druckenmiller believes current Federal Reserve policy and U.S. deficit spending are setting the U.S. dollar on a path to collapse. This morning he told CNBC’s Joe Kernen that it’s “more likely than not” the U.S. dollar will lose its status as the global reserve currency within 15 years. Druckenmiller’s comments were focused on the Fed’s commitment to low interest rates and U.S. debt bond buybacks, moves that ultimately support U.S. deficit spending on coronavirus pandemic relief.
Druckenmiller’s comments were positive for one group already effectively shorting the dollar: cryptocurrency advocates. With the euro a basket case and the Chinese Communist Party-backed yuan still viewed with suspicion, Druckenmiller doesn’t see another fiat currency that can play the universal mediation role of the dollar anytime soon. Instead, he thinks “the most likely replacement” for the dollar would be a “crypto-derived ledger system.”
This is a remarkable set of statements from Druckenmiller, considered by some to be the greatest foreign exchange trader in history: He was the architect, among other big trades, of George Soros’ legendary shorting of the British pound in 1992. Now he’s echoing one of the most fundamental talking points of bitcoin advocates, who have for a decade contrasted the orange coin’s immutably fixed issuance with the propensity of states to let the money printer go brrr.
5. DOGE Imitators Help Send Ethereum Transaction Fees to All-Time Highs
As SHIB and others doggedly chase DOGE’s success, Ethereum transaction fees are running away with them.
The Doge effect is sending Ethereum transactions fees up the proverbial tree.
Per data from BitInfoCharts and Blockchair, the average cost of an Ethereum transaction is currently $64, partly driven by demand for the Ethereum token (and Dogecoin doppelganger) Shiba Inu (SHIB) — and its own copycats. Binance exchange CEO Changpeng Zhao tweeted that the platform “ran out of ETH (+11.18%) deposit addresses due to SHIB,” which “has never happened before for any ERC20 token.”
Ethereum’s fees, called gas, are priced in ETH and vary depending on the type of transactions; for example, a simple transfer costs less gas because it is less computationally intensive, while a transaction to swap, say, ETH for WBTC (+3.58%) would cost more.
Founded in July 2018, ZBG is a Hong Kong-based cryptocurrency exchange, a global platform of ZB.COM.
ZBG.com has quickly become one of the top 10 exchanges in the world with its innovative, efficient and global operations, and is known as a “New First-Tier” exchange.
Currently, ZBG supports 11 languages, with an average daily activity of more than 160,000, providing over 3 million users around the world with trustworthy cryptocurrency trading, contract trading and other crypto asset investment services.
In the future, ZBG will continue to expand its global market and provide stable, safe and fast blockchain project listing, diversified crypto assets and blockchain derivatives investment services to more blockchain enthusiasts around the world.
ZBG Official English (Telegram): https://t.me/ZBG_Exchange
ZBG Official Chinese(Telegram): https://t.me/ZBG_ChineseOfficial
ZBG Official Bangladesh (Telegram): https://t.me/zbgbangladesh
ZBG, World’s top 10 crypto currency exchange.
Link to future value!
May 12, 2021