Bitcoin in Ethereum’s blockchain? wBTC to change the DeFi-Bitcoin game
MakerDAO was the most powerful player in DeFi space and last year’s Multi-Collateral Dai launched showed the purpose of the protocol. Currently, in order to continue the development of stablecoin DAI, according to Maker’s official blog, the company is conducting an executive poll to add WBTC as a collateral style asset to DAI.
Last year, Creator released its MCD back in November 2019, but the protocol backed only a bunch of new collateral assets in addition to Ethereum. In the beginning, the likes of BAT were added to the collateral bin. The USDC was recently introduced after the market collapse on 13 March, which was introduced in order to achieve some form of stability in the Maker system.
The addition of wBTC may seem shocking to a member of the group, but the wrapped asset has been on the sidelines, and many have suggested that it is one of the best ways to inject Bitcoin’s liquidity into the Ethereum network.
WBTC, or Wrapped Bitcoin, is an ERC20 token based on Ethereum that is 1:1 attached to Bitcoin. WBTC leverages a consortium model for Bitcoin’s custody, relying on a number of popular DeFi projects including Kyber Network, Ren Protocol, and BitGo to name a few to carry, mint, and burn the underlying assets.
The inclusion of wBTC now opens the door to the growing unity between Bitcoin and DeFi. It has been noted that over the last 6 months, more and more options have been put on the table to carry BTC to DeFi. One of the key reasons for this is the strong liquidity of Bitcoin.The Ethereum community believed that the financial functionality of DeFi and Ethereum would boost several folds if any bitcoin liquidity was present in the ETH blockchain.
According to DeFi Pulse, the wBTC is incurring an all-time high valuation of the overall value of the US dollar at the press time. At more than 10 million locked in TVL, its utility has seen a dramatic rise over the past month, even though the May depreciation took its TVL down to $4.31 million on May 13.
It is also important to note that wBTC has been leading Lightning Network Capacity over the past month as BTC locked in Lightning stayed relatively below wBTC’s capacity.
The rise in TVL in wBTC terms can also have an effect on the price of Bitcoin. By locking bitcoin on the network through wBTC, the amount of bitcoin in circulation is reduced indefinitely. This causes the supply chain of Bitcoin to become smaller and the shortage in circulation that unintentionally increase the value of the King’s coin.
Author: Utkarsh Gupta
- Ethereum Is Diving, But It’s Too Early to Say Bulls Have Given Up
- Options Market Shows Bearish Outlook on Ethereum Price
- Time to Buy ETH | Ethereum 2.0 Upgrade Can Trigger ETH Price Rally
- Marketing Ethereum 2.0 and Herding Cats With Hudson Jameson
- Ethereum shows strong outperformance of ERC-20 tokens as many fade to darkness
Ethereum Is Diving, But It’s Too Early to Say Bulls Have Given Up
Ethereum failed to continue above the $220 resistance and declined below $208 against the US Dollar. ETH price is currently testing $200 and remains at a risk of more losses.
- Ethereum topped near the $220 level and started a fresh decline.
- The price is down more than 5% and it is currently closing in towards the $200 support zone.
- There is a key bearish trend line forming with resistance near $208 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to decline toward the $192 support before it might start a strong increase.
After forming a support base above $202 and $200, Ethereum recovered above $210 against the US Dollar. ETH price traded above the $215 level and remained well above the 100 hourly simple moving average.
However, the bulls faced a strong resistance near the $220 level. The failed to push the price above $220, resulting in a fresh decline. There was a break below the $210 level and the 100 hourly simple moving average.
Ethereum is now trading near the key $202 and $200 support levels. An initial resistance on the upside is near the $207 level. It is close to the 23.6% Fib retracement level of the recent slide from the $220 high to $202 low.
There is also a key bearish trend line forming with resistance near $208 on the hourly chart of ETH/USD. The trend line coincides with the 50% Fib retracement level of the recent slide from the $220 high to $202 low.
The main resistance on the upside is now near $210 and the 100 hourly SMA. To move into a positive zone, the price must break the $208 and $210 resistance levels. The next key resistance is seen near the $220 level, above which Ether could rise towards the $230 level.
On the downside, there is a crucial support forming near the $202 and $200 levels. If Ethereum fails to stay above the key $200 support, it could slide towards the $192 support.
Any further losses below the $192 support might open the doors for a larger decline towards the $182 and $180 support levels in the next 2-3 days.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently well below the 40 level, with a bearish angle.
Major Support Level – $200
Major Resistance Level – $210
Author: Aayush Jindal
Options Market Shows Bearish Outlook on Ethereum Price
Despite the recent strong sentiment seen in the spot market, options traders appear to be skeptical about current ethereum (ETH) price, with contracts expiring in May, June, September, and December all showing higher than 50% probability that the price will fall.
Currently trading around the USD 200 mark in the spot market, ETH is now at a psychologically important make-or-break level for traders, after an impressive bull-run that has taken it from a low of USD 90 on March 13. Now, almost two months later and after a gain of more than 120% from the low, the price is down by about 7% over the past 24 hours to a price of USD 200 as of press time (11:27 UTC). It’s still up by almost 2% in a week.
Judging from data compiled by the crypto derivatives analytics provider Skew, however, options traders are not convinced that the ETH rally will continue from here. As of this morning, the probability curves for all the options contracts Skew monitors shows that more capital is betting on prices going lower from here, compared to the amount of capital that is betting on higher prices.
Not surprisingly, the contract with the nearest expiry date – the May contract – is also showing the most optimism about the price, indicating a probability of 46% that the ethereum price will be above USD 200 by expiry. And from there, it goes down further, with the June contract showing a 43% probability of higher prices, September with 39%, and December with only a 35% probability the price will be higher than today by then.
Although the available data speaks for itself regarding the sentiment among players in the options market, it should also be noted that the market for ethereum options is quite limited, with only a few major exchanges offering it. Among them is crypto derivatives exchange Deribit, which offers futures and options on both bitcoin and ethereum.
By comparison, the bitcoin (BTC) options market is showing a slightly more optimistic outlook for the price, although the overall sentiment is bearish here too, with the May contract indicating a 49% probability that bitcoin will be above USD 8,500 by expiry.
As of press time, bitcoin is trading at USD 8,698, after having rallied almost 95% from the crash on Black Thursday on March 12.
Options are derivatives contracts give traders the right, but not the obligation, to buy or sell an asset at a given price on or before the date when the contract expires. Although futures trading has taken the world of crypto by storm, with companies like BitMEX, Binance, and CME all offering it on bitcoin, options are still lagging behind in terms of popularity.
Author: By Fredrik Vold
Time to Buy ETH | Ethereum 2.0 Upgrade Can Trigger ETH Price Rally
Опубликовано: 3 мая 2020 г.
The cryptocurrency market skyrocketed recently and offset all loses from this recent outbreak. In this video I will specifically focus on second biggest cryptocurrency Ethereum and we will look at the ETH price outlook
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➤Energi Gen 3 Wiki: https://docs.energi.software/en/home
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Marketing Ethereum 2.0 and Herding Cats With Hudson Jameson
Photo by Richard Ciraulo on Unsplash
CoinDesk’s Nolan Baurle speaks with the Ethereum Foundation’s Hudson Jameson about private transactions, client improvements, dealing with FUD on Ethereum and more.
Listen in to hear more about:
- Community coordination in crypto means translating developers for users and users for developers.
- Cat herders? It’s as challenging as it sounds.
- Ethereum culture revolves around travel and in-person events. How is the community adapting with pandemic-imposed lockdowns?
- The decentralized nature of the Ethereum – and broadly – crypto work force.
- Possible pandemic-related use cases for blockchain?
- Marketing ETH 2.0 – before or after full development of the protocol?
- The “show, don’t tell” ethereum application
- Cross-trading assets between blockchains
- Everyone’s favorite topic: SCALING
- Transparency within the Ethereum Foundation
- The attributes you need to be a great community manager!
- Blockchains, at least right now, shouldn’t be used for voting.
- Hudson’s Hot Take: DeFi sometimes feels like it’s being held up by toothpicks.
- Competition between Ethereum use cases.
CoinDesk Live: Lockdown Edition continues its popular twice-weekly virtual chats with Consensus speakers via Zoom and Twitter, giving you a preview of what’s to come at Consensus: Distributed, our first fully virtual – and fully free – big-tent conference May 11-15.
Tuesday, May 5: Is crypto ready for the travel rule? With Amy Davine Kim from the Chamber of Digital Commerce, hosted by Consensus organizer Aaron Stanley. Register
Author: Christine Kim
Ethereum shows strong outperformance of ERC-20 tokens as many fade to darkness
ERC-20 tokens have become a large component of the Ethereum ecosystem, but many of them have seen unprecedented losses throughout the past year, with only a handful being able to outperform ETH.
Recently released data from a popular analyst highlights the mixed performance seen by this digital asset class, showing that the vast majority of them have seen losses totaling at between 50 and 100 percent.
There are, however, a handful of these tokens – including Chainlink – that have seen insane gains over the past year.
Ethereum has seen some incredibly bullish price action throughout the past year, clocking the majority of its gains in 2020.
Earlier this year, ETH found itself caught within the throes of a parabolic rally that allowed it to climb to highs of $290 before it lost its momentum and ultimately declined all the way to yearly lows that were set within the sub-$100 region.
This decline was short-lived, as it quickly saw a sharp rebound that has since led it back into the $200 region, and the crypto is now showing some tempered signs of being on the cusp of further gains as the aggregated market grows increasingly bullish.
Most of the ERC-20 tokens that were built upon the Ethereum network, however, have not been so fortunate.
According to data from Ceteris Paribus – a popular analyst – out of 180 ERC-20 tokens, 107 of them have seen one-year returns of between negative 50 and 100 percent, while 43 have declined between zero and 50 percent.
Only 30 of them have outperformed Ethereum’s 30 percent climb seen throughout the past year.
“ETH vs ERC 20’s: 1 Year Returns – 30 outperformed ETH’s 30% – 43 returned between 0 and -50% – 107 returned between -50% and -100%”
There are some major high market cap ERC-20 tokens that offer liquidity – including Chainlink – but the vast majority have limited liquidity, and thus have price action that is largely controlled by market-making algorithms implemented by the company’s running the projects.
Spencer Noon, head of crypto investments at DTC Capital, noted that Ethereum has seen “impressive performance” for a $20B network as compared to the thinly traded ERC-20 tokens.
“Impressive performance for a $20B network vs. what are mostly a bunch of thinly-traded startups.”
The death of the vast majority of smaller tokens may be a trend that continues strong throughout 2020 as investors flee to more liquid and stable assets like Ethereum.
Cover Photo by Jonatan Pie on Unsplash
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Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.
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