Iran Grants Bitcoin Miners Exclusive Access To Electricity at Three Power Plants
Iran has granted bitcoin miners exclusive access to electricity generated from three power plants for their mining activities, according to state power utility Thermal Power Plant Holding Company (TPPH).
Mohsen Tarztalab, managing director of TPPH, told a local news agency on Monday that the “necessary equipment has been installed in three power plants of Ramin, Neka and Shahid Montazeri.”
The government firm, which is responsible for the development and operation of thermal-based electric power plants, will now proceed to issue out tenders for the three projects, whose “documents will be uploaded on the SetadIran.ir website in the near future,” said Tarztalab.
It is important to note that crypto miners will only receive excess electricity from expansion turbines that are to be built at the target power plants for this specific purpose. Tarztalab explained this is because the turbines “do not consume liquid fuels like gas oil, and only natural gas”, which burns cleaner compared to coal.
“These turbines are not connected to the national grid and the electricity generated by them is only used by the power plant itself,” he stated.
However, it is not clear how much electricity will be produced or dedicated to crypto mining from the three facilities. As news.Bitcoin.com reported in the past, Iran issued permits to 14 crypto mining farms in July, each with a capacity of 300 megawatts. But it also recently shut down 1,100 illegal bitcoin miners. Some 1,000 miners had already been licensed in January.
Until now, no power plant, or a part of it, could exclusively extract digital assets, even though the country’s Ministry of Energy in July gave power plants the greenlight to mine. One of the biggest motivations for Iran’s continuing open-mindedness to virtual assets is the potential that the industry brings to boosting falling government revenues. Tarztalab, the TPPH head, detailed:
Unfortunately, constant price hikes and the obligation for supplying electricity with stable prices to subscribers have caused a large gap between revenues and expenditures in the country’s electricity industry, and we need new sources of income to fill this gap.
Bitcoin mining is cheap in Iran – something that has drawn scores of miners, both legit and shady, to the nation’s shores. According to official data, mining farms in Iran pay as little as 4,800 rials ($0.01) per kilowatt-hour (kWh) of electricity but rates increase four-fold to 19,300 rials ($0.05) during the peak summer season, from June to September.
What do you think about Iran allocating three power plants for exclusive bitcoin mining? Let us know in the comments section below.
Author: News Bureau
- Digital trends in the facilities management industry, IT News, ET CIO
- Weekly Recap: Bitcoin and Ethereum Provide Substantial Returns Despite Uncertainty the Market
- DeFi Carnage: Ethereum Coins Aave, Yearn.finance, Uniswap, Synthetix Dive 20%
- What you should know about Ethereum Classic (ETC)
- ETH price loses ground, but network metrics say DeFi season not over yet
Digital trends in the facilities management industry, IT News, ET CIO
By Anand Sinha
Technology continues to disrupt almost every sector with constant advancements that radically improve the performance of enterprises. For the facilities management industry too, service providers and clients are screening for better validation of productivity and performance; standardization of services & process improvement; and sustainability in terms of asset life cycle, carbon footprint etc. Digital transformation in the facilities management sector can be achieved by making people, process, and technology work together.
I will explore here the emerging areas and digital trends in FM industry that will impact innovation and investment in the future.
Data-driven decision making – Data from IoT devices and facility management software helps facilities managers understand more about how their workplace functions and what decisions will showcase their best work. They are taking data and breaking it down to recognize trends like turnaround time, inventory management and consumption patterns. Data can also be used to manage labour costs on specific tasks and increase efficiency through automation. From a client’s perspective, data-driven decision-making will help in optimizing available office space and changing the way a work environment is managed. The result is savings on overhead costs and smarter space utilization. We can learn more about it through some of the sample performance improvement indicators mentioned below.
Data enhances decision making through knowledge gathering about actual usage
Asset data maintenance –By analysing and maintaining the asset value at a facility, maintenance teams can better manage expenses and efforts taken to support the asset. Facility managers can quickly take repair or replace decisions as well as carry out budgeting analysis using the maintenance data. For the client, asset data maintenance provides accurate records of equipment under warranty allowing for alerts to be issued when a work order is created. This in turn helps them to keep costs in check, monitor machinery uptime/downtime, and increase the life cycle of equipment. Aside from maintenance, purchasing and procurement, FM managers and clients rely heavily on asset data for spend analysis, strategic sourcing, and inventory control. Asset data maintenance on a common enterprise platform enables visibility and communication across all business units for both end users and FM managers.
Framework depicting how asset data maintenance is used at different touchpoints in the FM ecosystem
COVID risk mitigation – In the context of the global pandemic, responsibility of FM companies in keeping people and assets safe is now more than ever. Several companies have come up with innovations that can help in COVID risk mitigation within a workplace. Companies are now using technology for ensuring social distancing using IoT and AI. Contact-free access, attendance trackers and automatically generated digital passes for visitors are some of the ways adopted by companies to minimise human intervention. Additionally, technologies like access control systems, automated thermal cameras for temperature screening, face mask detection using AI, room sensors to track human activity, mass compliance systems are also being widely used to ensure safety and security at the workplace.
Mechanization – Automation and mechanization are enhancing the operations and maintenance of all assets of a facility today. Facility managers are constantly finding the right combination of creative and technological tools that will best fit the needs for their systems. Drones and robotic cleaning systems are now being used to disinfect and sanitize the office premises. FM companies are also using robotics solutions that converts an ordinary floor scrubber machine into a next gen robot through modern AI based autonomous navigation systems integrating smart navigating features thereby resulting in increasing productivity and improved efficiency compared to traditional cleaning methods. Sensor fusion technologies like gyroscope- for measuring orientations, motion, vibration, and accelerometer- for rotation, acceleration and vibration are also placed in various facilities for motion-capture. And as more clients scout for mechanized FM solutions, facility managers are presented with a great opportunity to deliver reliable and hassle-free services than ever before.
Intelligent building system uses embedded technologies and sensors to measure occupancy analysis
Value creation–A good digital transformation strategy aims to create significant value for your facility. For FM companies, going digital and using real time data can help the property management team avoid risks but also make informed decisions in the field of staff allocation. It also allows energy saving, predictive maintenance and hence shows the building manager as a reliable and proactive business partner.
For clients, embracing technology not only improves efficiency and optimizes cost; but is also key for them to stay ahead in the fight against ever-more sophisticated criminal activity. The key on using digital solutions in a facility is to analyse how it can influence the business environment, changing a businesses’ agility to react, and significantly modifying its entire value proposition and overall operations.
For clients, digitization ensures healthy building and infrastructure operations while also reducing costs, improving productivity, and making the premises more sustainable. It also leads to better organization of departments, less unplanned downtime, and better overall business performance. For facilities management companies, integrating digital solutions into their delivery model is critical to differentiate, compete effectively, provide reliable and efficient service and key to ensure market success.
The author is Chief Information Officer and Director-IT of OCS Group India
Author: News Bureau
Weekly Recap: Bitcoin and Ethereum Provide Substantial Returns Despite Uncertainty the Market
Is it time for the bears to break out the champagne glasses? Not so fast, says Goldman Sachs. Volatility has ruled the Street for the last few weeks, leading some to conclude that those with a more pessimistic outlook had been vindicated, but the firm believes stocks can still climb higher.According to Goldman Sachs’ head of U.S. equity strategy, David Kostin, the S&P 500 could still hit 3,600 by the end of the year, and 3,800 by mid-2021, on the back of vaccine-related optimism and progress with the economic reopening. This would reflect gains of 10% and 16%, respectively, should the index ultimately reach these targets.“Despite the sharp sell-off in the past week, we remain optimistic about the path of the U.S. equity market in coming months. The Superforecaster probability of a mass-distributed vaccine by Q1 2021 has surged to nearly 70% and economic data show a continuing recovery,” Kostin wrote in a recent note. On top of this, the strategist argues the vaccine’s arrival will push U.S. GDP growth to 6%, compared to the 3.9% consensus estimate.Given Kostin’s outlook, we wanted to check out three stocks scoring major praise from Goldman Sachs. Not only have they been given a Buy rating, but the firm’s analysts also see at least 50% upside potential on tap for each. Using TipRanks’ database, we found out that all three tickers have gotten a thumbs up from analysts at other firms as well. Let’s take a closer look.Intellia Therapeutics (NTLA)Focused on utilizing gene editing to develop cell therapies, Intellia Therapeutics wants to stomp out cancer and other immunological diseases for good. Based on its innovative technology, Goldman Sachs recommends that investors pull the trigger.Representing the firm, 5-star analyst Salveen Richter believes that what makes NTLA a stand-out is its “use of an adaptive gene editing system based on a proprietary lipid nanoparticle (LNP) delivery method of CRISPR/Cas9 to leverage multiple gene editing strategies.” These include the generation of knock-outs (KO) for toxic genes, restoring functional genes by inserting new DNA sequences and the use of consecutive editing combining KO and insertion approaches.“We are positive on NTLA’s in vivo gene editing approach as it offers a modular system with CRISPR/Cas9 gene editing for functionally curative outcomes. While we note the initial focus is on delivery to the liver, extrahepatic tissue targeting (i.e. CNS) could expand the breadth of NTLA’s platform. NTLA is also leveraging its CRISPR/Cas9 editing tools ex vivo to create next-generation engineered cells that can treat oncological and immunological diseases,” Richter explained.To this end, the analyst sees several potential catalysts on tap for the next year. Proof-of-concept data for lead program NTLA-2001, its therapy targeting transthyretin amyloidosis (ATTR), a slowly progressive condition characterized by the buildup of abnormal deposits of a protein called amyloid (amyloidosis) in the body’s organs and tissues, could come by mid-2021. This data stands to “inform the drug’s clinical profile (safety/tolerability and early signs of sustained TTR knockdown),” which would de-risk NTLA’s in vivo editing platform, in Richter’s opinion.On top of this, IND-enabling studies for NTLA-2002, its therapy designed for hereditary angioedema (HAE), and NTLA-5001, its therapy for WT1+ acute myeloid leukemia (AML), are set to kick off in 2021. Richter estimates that peak sales for both candidates could reach $895 million and $806 million, respectively, with data from both also validating “the breadth of editing approaches (knockouts and/or insertions).”If that wasn’t enough, Richter cites the ongoing NVS-led Phase 1/2 OTQ923 sickle cell disease (SCD) trial as a possible upside driver. “While we note the limited economics to NTLA from this program and competitor dynamics with bluebird bio’s (BLUE) LentiGlobin and CRISPR Therapeutics’ (CRSP) CTX001 that are ahead in clinical development, the study should serve as proof-of-concept for the platform. First data could be presented in 2021,” the analyst commented.All of this prompted Richer to initiate coverage with a Buy rating and $33 price target. This target conveys her confidence in NTLA’s ability to climb 50% higher in the next year. (To watch Richter’s track record, click here)Looking at the consensus breakdown, 3 Buys and 2 Holds have been published in the last three months. Therefore, NTLA gets a Moderate Buy consensus rating. Based on the $37.13 average price target, shares could rise 67% in the next year. (See NTLA stock analysis on TipRanks)Vir Biotechnology (VIR)Moving on to another healthcare company, Vir Biotechnology is developing a broad portfolio of product candidates that are designed to combat serious, global infectious diseases in new ways. With it standing at the front of the pack in the COVID-19 monoclonal antibody (mAb) race, it’s no wonder Goldman Sachs likes what it’s seeing.Firm analyst Paul Choi cites a recent data readout from one of VIR’s competitors as reaffirming his confidence. On September 16, Eli Lilly reported interim data from the Phase 2 BLAZE-1 trial evaluating its mAb therapies, LY-CoV555 and LY-CoV016, in mild or moderate COVID-19 patients. The data revealed that treatment with LY-CoV555 led to a roughly 72% reduction in the need for hospitalization, with no safety signals observed.Choi also points out that the results were more “pronounced” in high risk patients (age or BMI) as most study hospitalizations across both groups occurred in patients with these underlying risk factors.While resistant viral variants did appear in 8% of LY-CoV555-treated patients and 6% of patients on placebo, management has stated that competing single or multiple mAb “cocktail” approaches might not be optimized, with viral escape mutants potentially emerging. VIR argues its approach is differentiated given the high barrier to resistance, potent effector function, potential for increased lung tissue concentration and extended half-life.Even though VIR is behind its peers in terms of development timelines, Choi thinks that the company is making substantial progress. VIR recently initiated the Phase 2/3 COMET-ICE study of VIR-7831, its mAb for COVID-19, as a monotherapy (versus a combination approach) in patients with mild or moderate COVID-19. Initial data is set to be released by the end of 2020, with top-line data expected in January. Weighing in on the above, Choi commented, “In the absence of preclinical binding affinity data from LY-CoV555, it is premature to hypothesize on the potential for VIR-7831 to demonstrate improved efficacy vs. the competing antibodies; however, we see the LLY data as establishing proof-of-concept for antibodies in COVID-19 while also setting an attainable bar for future antibody monotherapy/cocktail treatments. Moreover, we view the addressable market for COVID-19 antibodies as significant enough to support several approved therapies in the indication in the near-term.”In line with his optimistic approach, Choi reiterated his Buy rating and $54 price target. Should the 5-star analyst’s thesis play out, a twelve-month gain of 69% could potentially be in the cards. (To watch Choi’s track record, click here)Is the rest of the Street in agreement? The majority of other analysts are. 4 Buys, 1 Hold and 1 Sell have been issued in the last three months, so the word on the Street is that VIR is a Moderate Buy. With the average price target clocking in at $51.67, shares could jump 61% in the next year. (See VIR stock analysis on TipRanks)Peloton Interactive (PTON)Switching gears now, we move on to Peloton Interactive. The company, which offers exercise bikes and remote workout classes, rose to fame at the start of the COVID-19 pandemic. After its fiscal Q4 earnings results blew estimates out of the water, Goldman Sachs believes this stock has more room to run.In the most recent quarter, PTON posted revenue of $607.1 million, beating the $586.2 million consensus estimate and reflecting a 172% year-over-year increase. This is up from growth of 65.6% in the previous quarter. Adjusted EBITDA came in at $143.6 million, ahead of the Street’s $73.5 million call. Management pointed to heightened demand during the COVID-19 crisis and significantly lower marketing spend as the drivers of this strong showing.Goldman Sachs’ Heath Terry tells clients he was especially excited about the Connected Fitness segment’s performance. Connected Fitness product revenue landed at $486 million, up 199% year-over-year, while customer deposits and deferred revenue grew 300% year-over-year. The five-star analyst also highlights the fact that subscriber net adds were 205,000, versus 174,100 net adds in fiscal Q3 2020 and guidance of 154-164,000.As for PTON’s forward-looking guidance, Terry was also impressed. “While the company guided fiscal Q1 2021 and FY21 revenue and adjusted EBITDA well above consensus, given the backlog of demand exiting the June quarter and the 6-8 weeks of deliveries already on order by consumers, we expect this guidance will again prove overly conservative,” he explained.This performance prompted Terry to state, “We continue to believe that Peloton represents a significant long-term opportunity as the company is in the earliest stages of creating new and expanding existing categories of connected fitness products, an opportunity that we believe has been permanently accelerated by the current COVID-19 crisis.”It should be noted that the company faces significant risks going forward. These include new entrants, evolving consumer tastes as well as execution challenges. That being said, Terry’s bullish thesis remains very much intact.Expounding on this, the analyst said, “… we believe that the window of opportunity for any meaningful competitor is rapidly closing, something that, along with the large and expanding addressable market for Peloton’s high ARPU, high margin, extremely low churn subscription business, remains underappreciated by the market, even with the stock’s recent outperformance.”It should come as no surprise, then, that Terry stayed with the bulls. To this end, he kept a Buy rating and $138 price target on the stock. Investors could be pocketing a gain of 53%, should this target be met in the twelve months ahead. (To watch Terry’s track record, click here)In general, other analysts are on the same page. PTON’s Strong Buy consensus rating breaks down into 20 Buys, 2 Holds and 1 Sell. The $112.05 average price target brings the upside potential to 23%. (See PTON stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
DeFi Carnage: Ethereum Coins Aave, Yearn.finance, Uniswap, Synthetix Dive 20%
Ethereum-based Aave’s LEND, Yearn.finance (YFI), Uniswap’s UNI, and Synthetix Network Token are among the top DeFi tokens that have retraced by over 20% in the past 24 hours amid Bitcoin weakness.
This move was predicted by a crypto trader multiple days ago.
As reported by Bitcoinist previously, one prominent Bitcoin analyst commented that if Ethereum slipped under $250, DeFi altcoins could drop over 20% in a day:
“Super important Level for $ETH: Currently $ETH and it’s ERC20 minions seem to be leading the market, would not be surprised to see another -25% day across the board for #DeFi tokens if $ETH trades under 350.”
The weakness in DeFi is being caused by a number of bearish fundamental trends that are likely to suppress this Ethereum-centric sector in the medium term.
One crypto analyst known as “Theta Seek” outlined these trends in a recent extensive Twitter thread. Some of these trends are as follows:
DeFi thread – Why I am calling the top (At least for now)
1/ DeFi is too difficult to use.
While traction for DeFi (AMM + deposits/yield) has grown tremendously over the past few months, DeFi is difficult to use, the ability to lose funds scares most new users away.
— Theta Seek (@thetaseek) September 18, 2020
Others analysts thinking that Ethereum DeFi could be in a medium-term bear trend includes Qiao Wang, a prominent analyst and trader. Wang said a number of weeks ago that the exit by SushiSwap’s founder may have put a bitter taste in the mouths of DeFi investors in the near term.
Author: Posted By: Nick Chong
What you should know about Ethereum Classic (ETC)
Can you guess which one of the following is the original blockchain? Is it Ethereum (ETH) or Ethereum Classic (ETC)?
Judging from the name, “classic” must be the correct answer, and it is true! ETC is the original version of the Ethereum blockchain, and the original code is retained after community discussions.
A brief history of Ethereum Classic (ETC), the Ethereum Classic began with an unfortunate event.
In May 2016, the Decentralized Autonomous Organization (DAO) held a token sale with the goal of establishing a blockchain-based venture capital to fund future decentralized applications (DApps) in the Ethereum ecosystem.
Basically, DAO is a complex smart contract that operates in a decentralized manner-computer code that automatically performs tasks between multiple parties when conditions are met.
Despite its ambitious goals and successful token sales, DAO’s code has a major vulnerability that allows attackers to steal ETH from decentralized organizations.
Attackers used this vulnerability in June 2016 to trigger the infamous DAO hacking incident, maliciously stealing approximately US$50 million worth of ETH.
Undoubtedly, the DAO hacking incident shocked the Ethereum community and caused the price of ETH to drop from $20 to $13.
After the DAO hacking incident, the Ethereum community had to choose from three options.
Both soft forks and hard forks are major network upgrades. However, soft forks allow users who have not upgraded and upgraded users to communicate with each other, while hard forks are not backward compatible with previous versions.
As developers realized that deploying a soft fork would expose the network to a distributed denial of service (DDoS) attack, the Ethereum community decided to initiate a hard fork to recover the funds lost in the DAO hack.
Although this plan is supported by the majority of people, a small part of the Ethereum community opposes it. They believe that “code is the law” and the blockchain network should be immutable.
The failure of the two parties to reach an agreement on a solution eventually led to the split of the Ethereum blockchain.
Those who tried to retrieve the lost ETH chose the hard fork, which opened the Ethereum (ETH) blockchain as we know it today, while another group of people stayed on the original Ethereum Classic (ETC) chain.
What problems does Ethereum Classic solve?
Ethereum Classic (ETC) is a blockchain platform that allows developers to deploy smart contracts and DApps.
Although this function is the same as that of Ethereum (ETH), the ETC blockchain has two main differences.
First of all, the Ethereum Classic community opposes tampering with distributed ledgers and supports the view that “blockchain networks cannot and should not be modified”.
Secondly, although there is no hard cap on the total supply of ETH, Ethereum Classic adopts a monetary policy of constant supply, allowing up to 230 million ETCs to be created.
As a bonus item, Ethereum Classic launched the Atlantis hard fork last year to increase the interaction with Ethereum and improve the privacy protection of transactions through zk-SNARKS.
Ethereum Classic (ETC) price performance, now let’s briefly understand the price of ETC.
After experiencing some ups and downs after the DAO hard fork, Ethereum Classic started to make big moves in March 2017.
Between March 2 and June 18, the ETC price has increased from 1.37 US dollars to 22.42 US dollars, a surge of more than 1500%.
With the development of the cryptocurrency bull market, after a short correction period, the value of Ethereum Classic continued to soar in late October, with the price rising from $10.57 to $45.25 on December 21.
However, due to the sudden long-term bear market, the price of ETC began to fall throughout 2018, and the transaction price was $5.23 by the end of the year.
Although ETC experienced a small loss (-17%) in 2019, it performed well in early 2020, with its value rising from $4.55 on January 1 to $11.82 on February 15.
The COVID-19 pandemic has had an impact on the broader market and also has a negative impact on ETC prices (and most cryptocurrencies).
After reaching the 2018 lowest point of $3.77 on March 13, the ETC price has since been in a moderate upward trend, trading at $7.03 at the time of writing.
ETH price loses ground, but network metrics say DeFi season not over yet
Ether has dropped around 30% from its 2020 high of $482 on Sept. 1 to $340 in five days. The drop in the price of Ether (ETH) and Bitcoin (BTC) was largely due to the rising dollar, which has stopped Bitcoin’s bull run in its tracks. Ether is still sitting at around $340, failing to recover its price ranges of August.
As the price of Ether dropped significantly from the start of the month, several fundamental factors on the Ethereum network itself have changed. These include the movements and positions of key figures in the ecosystem, such as traders, whales, miners and DApp users, as well as the activity on the network, especially when it comes to DeFi and stablecoins. In addition, ECR-20 tokens have now overtaken Ethereum’s market capitalization.
Given that DeFi tokens form the backbone of the Ethereum network, they will largely influence the upcoming price movements of Ether itself. Understanding Ether’s movements will give traders a better idea of where money is going, and understanding such activity within the network will provide a sense of how popular the actual network is compared to trading.
With Ether losing almost 30% of its value in five days at the start of the month, the dynamics of who’s holding, using and trading the cryptocurrency have changed. According to data from CryptoCompare, a market data resource, the number of active addresses has been dropping. James Li, a research analyst at CryptoCompare, told Cointelegraph:
“The active address is related to the number of users, and the drop in active addresses may suggest that some users were put off by the price crash and even that DeFi may be beginning to cool off. However, it can also be due to users holding and not moving their holdings after swapping to DeFi tokens.”
As for traders, CryptoQuant, an on-chain analytics firm, saw a huge uptick following the market crash. According to Ki Young Ju, the CEO of CryptoQuant, Ether inflows into exchanges hit a six-month high on Sept. 1 and decreased shortly after. More recently, inflows have started to increase again since Sept. 14, which means more sell pressure for Ether.
While a price drop would suggest that the number of whales has gone down, the opposite has actually happened. There are now more “wealthy” players on the network, which may mean that more people have been able to accumulate Ether and/or that new players have entered the market.
Given the price crash on Sept. 1, miner earnings were expected to be reduced. Despite this, the network hash rate has continued to increase, which means miners still consider Ether mining profitable. In the last three weeks, the hash rate has increased by 15.5% from 218 to 252 terahashes per second, which shows that Ether is still profitable to mine.
According to data from CryptoCompare, the latest Nvidia GeForce RTX 2070 Super graphics card and the average electricity cost of $0.08 per kilowatt/hour allows Ether miners to extract a monthly profit of $37.96 per card at the current ETH price. It’s worth noting that professional operations may see prices of $0.05 or less, especially in counties with subsidized electricity. Mike Manson, a co-founder of Blockware — a U.S.-based mining and hosting company — told Cointelegraph:
“Our belief is that Ethereum miners have not been heavily affected by the decline in the price of Ethereum. Transaction fees, hash rate, gas usage and mining rewards have been stably increasing. There is currently heavy demand for Ethereum mining rigs, with the price of GPU rigs and ASIC’s at an all-time high. It seems like the market is pricing in a longer transition to the proof-of-stake model.”
The figure mentioned also doesn’t take into account the profit made from fees, which increased during the first three days of the week, likely due to an uptick in transactions caused by Ether’s price volatility. Since then, the total daily fees on the network have dropped from 37,967 to 10,157 Ether per day.
While miners have seen their profits slashed with the recent drop in Ether’s price and an increasing hash rate, other sectors on the Ethereum blockchain have been able to keep up the pace despite the price drop, including decentralized exchanges that had previously reached an all-time record of over $11 billion in monthly volume during August.
At the time of writing, global DEX trading volume for the last 30 days has reached more than $22.92 billion. Uniswap, which had previously surpassed Coinbase and hit $1 billion in volume in just one day, continues to lead with a 59% share of DEX all trading volume. Transaction volume itself has also continued to grow, despite the crash, with daily Ether transactions hitting a new historical high last week.
Not only has volume for decentralized exchanges been able to continue on this track but the overall engagement with yield generating DeFi protocols is also roughly the same as it was before the market crash at the start of the month. In the last 20 days, the total value locked in DeFi has increased from $8.40 billion to $9.76 billion at the time of writing.
DeFi token prices themselves have also recovered to a degree and the declining price of Ether along with growth of the DeFi sector has led to the collective market capitalization of ERC-20 tokens to overtake that of Ether. Ilya Abugov, an open data lead at DappRadar — a analytics resource for decentralized apps — told Cointelegraph:
“Short term price moves are often speculative and won’t have much of an effect on the ecosystem. Some have mentioned a fall and recovery of TVL, but if you look at 30-day TVL you will see that there was actually growth. Ethereum prices are still significantly up relatively to the beginning of the summer, so this retreat shouldn’t be affecting development either.”
The crash also seems to have had a small impact on stablecoins, which have continued to grow throughout September. Exchange stablecoin inflows have also been increasing according to CryptoQuant, with the majority going to Binance. One billion U.S. dollars’ worth of Tether (USDT) was sent to Binance on Sept. 12, which can be taken as a bullish sign for Ether and other tokens, but this also shows that stablecoins continue to be a huge part of the Ethereum ecosystem.
While the fundamentals for Ethereum show that, despite the crash, activity has continued on all fronts, both in regular use, mining and in the growth of DeFi. There are other obstacles in the way that may soon prove troublesome for Ethereum despite the advances made around Ethereum 2.0, an upgrade, which experts believe is unlikely to speed up enterprise adoption.
Related: Ethereum enterprise adoption wins Accenture’s support with Baseline Protocol
Scalability is the main issue in this regard, with congestion and high fees becoming a common occurrence in the network. Experts believe that in order for decentralized exchanges and DeFi itself to reach mainstream use, scalability solutions like layer two integrations are required.
Moreover, DeFi may soon face a hurdle of regulatory issues, and stablecoins may also see high-profile competitors like top-tier institutions and companies move into the space with their own offerings. Nevertheless, it’s likely that if DeFi continues to grow, Ether’s price will grow alongside it. Abugov told Cointelegraph that it’s not investment advice:
“With Binance now showing significant interest in DeFi, Polkadot showing a lot of activity, and a number of others as well, the DeFi sector looks set up for continued growth. As far as price is concerned, prices respond more to sentiment in the short term than actual development and activity, so the sector’s growth may not go hand-in-hand with ETH prices. A lot may depend on the sentiment around Ethereum 2.0.”