OKEx Intelligence Bureau Industry Weekly Report takes you to quickly review industry trends and clarify industry trends.
table of Contents:
- Market overview
- Wall Street and Institutional Dynamics
- Cryptocurrency market
- Polkadot and DeFi dynamics
- Industry Voice
Market overview
According to CoinGecko data, as of 17:00 on November 13, 2020, the total market value of the cryptocurrency market was 472.7 billion US dollars, an increase of 6.15% in the past 7 days. The market panic and greed index is 89, the grade is extremely greedy; the USDT premium rate is -1.211782%, and the OTC average price is ¥6.53.
According to OKEx spot, as of 17:00 on November 13th, BTC temporarily reported $16,141 and OKB temporarily reported $4.917. The long-short position ratio of the OKEx BTC contract is 0.87, and the number of shorts is slightly dominant; the total contract position is 1.115 billion USDT.
1. Wall Street and Institutional Dynamics
1. Grayscale BTC Trust increased its holdings by 1439BTC, and Grayscale LTC Trust’s holdings increased by 7.2%
On November 11, Eastern Time, Grayscale Bitcoin Trust’s holdings increased by 1439 BTC, an increase of 0.29%, and the total holdings reached 499,205 BTC. Grayscale ETH trust holdings increased by 0.02% to 2552931 ETH. At the same time, Grayscale LTC Trust increased its holdings by 51689 LTC, an increase of 7.20%, and its total holdings reached 769,611 LTC. Grayscale BCH Trust’s total holdings amounted to 181,659 BCH, an increase of 0.14%. In addition, ETC Trust reduced its holdings by 0.02%, with a total holdings of 12,272,622 ETC.
[Interpretation] The continued growth of gray positions is a catalyst for a new round of bull market, which will only make the market stronger and longer. As of November 12, the total scale of Grayscale Asset Management reached US$9.4 billion.
2. JP Morgan Chase report: financial institutions abandon gold ETF and buy bitcoin
According to UToday on November 8th, JPMorgan Chase, the largest bank in the United States by total assets, pointed out in a report that Bitcoin is eroding the demand for gold etf. Today, institutional investors such as family offices regard Bitcoin as a digital alternative to gold, which was once a safe haven. The demand for Grayscale’s Bitcoin Trust also exceeds the combined demand for all gold ETFs.
[Interpretation] This shows that under the background of unlimited QE, traditional financial tools have failed, and Bitcoin is going mainstream. Just like Grayscale’s previous tweets, when we look back on the history of currency, printing unlimited banknotes is waving goodbye to value. But now value (cryptocurrency) can be transmitted to anywhere in the world at the same speed as information, and these values are stored in the form of cryptocurrency.
3. Mesari predicts that if the crypto venture capital fund DCG goes public, its valuation will exceed US$4 billion
On November 13, the cryptocurrency analysis company Mesari issued a forecast that if the US crypto venture capital fund Digital Currency Group (DCG) goes public, its valuation will exceed $4 billion. Mesari said that the forecast is a comprehensive DCG business consideration. DCG owns major brands related to cryptocurrency, such as Genesis and Grayscale. In addition, the DCG investment department also holds a portfolio of Bitcoin, Ethereum and more than a dozen cryptocurrencies.
[Interpretation] Digital Currency Group (DCG) is the parent company of Grayscale. It controls many cryptocurrency companies, such as Genesis and Grayscale, as well as leading blockchain companies in various fields such as Coindesk and Coinbase. Mesari analysts theoretically predicted what the DCG IPO would look like. The conclusion of the US$4 billion valuation is not only because of the encrypted layout of DCG, but also based on the latest quarterly update data, plus other publicly available information. The comparable average price-to-earnings ratio of fintech companies.
Second, the cryptocurrency market
1. OKLink: The balance of the Ethereum 2.0 deposit contract address exceeded 60,000 ETH
According to the latest data from OKLink of OKLink, as of 9:50 am on November 13, the Ethereum 2.0 deposit contract address has received 60321 ETH, and 2560 ETH has been newly mortgaged in the past 24 hours, which is 524,288 ETH to launch the Ethereum 2.0 Genesis Zone The minimum requirement of the block has been completed by 11.50%, and 463967ETH is still needed to start the Ethereum 2.0 mainnet.
[Interpretation] The prerequisite for the start of the ETH2.0 phase 0 network is that the number of validators participating in the pledge must reach 16,384, and each validator needs to pledge 32 Ethereum, that is, there must be 524288 ETH in the deposit contract. The current deposit contract address has been The receipt of 60,000 ETH means that phase 0 of ETH2.0 is one step closer to the launch.
2. LongHash: Four factors have led to the recovery of Ethereum
LongHash released a report on November 07, stating that four factors have led to Ethereum’s recovery. 1) The launch of the Ethereum 2.0 deposit contract encourages users to buy more ETH for pledge. Many users invest in Ethereum to reduce selling pressure. 2) With people’s high expectations for ETH 2.0, people have a positive view of DeFi. Although the prices of major DeFi tokens have fallen, the total locked-in value in the DeFi agreement still exceeds $12 billion. 3) Ethereum’s monthly candlestick chart shows that November’s candlestick is just above the 5-day moving average. Consolidation above the key short-term moving average indicates a positive medium-term outlook for ETH. 4) DEX shows that ETH has room for growth: Compared with September and October, the average 7-day fee of DEX is still low. In a few days in October, the daily cost of Ethereum’s largest DEX, Uniswap, surpassed Bitcoin. This shows that the level of user activity across DEX and DeFi is very high.
[Interpretation] Obviously, the start of the Ethereum 2.0 deposit contract, DeFi may recover again, short-term pressure is reduced, and DEX fees are lower. These signs and trends may provide support for the next stage of ETH price increases.
3. Data: Bitcoin purchasing power is close to the highest level since the 2017 bull market
According to Cointelegraph on November 12, the purchasing power of Bitcoin is close to the highest level since the 2017 bull market. Data show that the global Bitcoin Purchasing Power Index (PPI) rose 0.2% to 6341.26.
[Interpretation] Bitcoin Purchasing Power Index is the Bitcoin Global Purchasing Power Index (PPI), which is an indicator to determine the purchasing power of Bitcoin by measuring how many “big Mac” burgers can be purchased by one Bitcoin (not related to monetary policy) . With the recent surge in the price of Bitcoin, it is reasonable for the PPI to rise to the previous high level.
4. Data: The number of wallets with more than 10,000 bitcoins hit a new high in 2020
On November 12, Santiment data showed that the number of wallets with more than 10,000 bitcoins hit a new high in 2020, reaching 111. This shows that crypto whale users have confidence in their bitcoin holdings. In addition, the current number of wallets holding 1,000 to 9999 bitcoins is slightly lower than the historical high (2135).
[Interpretation] Addresses holding more than 10,000 bitcoins are usually called “giant whale” addresses. As the price of bitcoin reaches the highest level since January 2018, the number of “giant whale” holdings is also increasing. In this case, data shows that more than 98% of Bitcoin addresses are currently profitable.
3. Polkadot and DeFi dynamics
1. Uniswap liquidity mining may end after 4 days, and the flow of over 2.4 billion US dollars of holding funds attracts attention
On November 13, according to the news from the world, the Uniswap liquidity mining plan will officially end in 4 days (20:00 on November 17). The official previously revealed that a community meeting will be held at 17:00 UTC on November 12th (1 am on November 13th, Beijing time) to discuss the plan. As of now, the specific content of the meeting has not been announced, and the current Uniswap over 2.4 billion US dollars in the four major liquidity pool holdings of funds aroused market attention. In this regard, Twitter netizens have said that if the UNI liquidity plan is terminated, it may mean that most of the liquidity will flow from the Uniswap agreement to other agreements in pursuit of higher yields. However, in view of the fact that the official has not yet stated whether it will expand the amendment or directly terminate the liquid mining plan, it is not clear how the market will react.
[Interpretation] Currently, the value of cryptocurrency assets locked in Uniswap is US$3 billion, including 3.2 million Ethereum, 30,000 Bitcoin, and 200 million DAI. If the liquidity mining ends, these assets will be unlocked and put into circulation. market.
2. Ontology will build the Polkadot parachain and integrate the DeID solution into the Polkadot network
According to CoinPost’s news on November 11, Ontology announced a collaboration with Polkadot to integrate its distributed ID solution DeID on Polkadot to strengthen the collaboration between the two ecosystems. At this point, Ontology will build a Polkadot parachain and provide a set of credit infrastructure services related to DeID and cross-chain collaboration.
[Interpretation] For many less popular blockchains, combining its own superior technology with Polkadot may be able to give off a second spring.
3. Analyst: “Polka may become an Ethereum killer” remains to be seen
According to CryptoSlate on November 10, Delphi Digital analyst Ashwath Balakrishnan said that if ETH 2.0 is released, developers will be in a dilemma. They will have to choose to stay in Ethereum 2.0 or migrate to a brand new protocol-Polkadot. Balakrishnan said: “The design of DOT is elegant and solves the scalability problem very well. But there are still some problems. First of all, on-chain governance has not been proven and has insufficient experience. Decred and Tezos have been promoting on-chain governance for some time. But it was not as successful as the supporters thought. Second, the application layer of Polkadot is a re-creation of Ethereum. As Ethereum has achieved scalability improvements through L2 and ETH 2.0, is there a real catalyst for builders It remains to be seen to fully migrate and even create mirrored instances of its protocol on Polkadot.”
[Interpretation] One more choice is actually a good thing for developers, and another feature of Polkadot is that cross-chain Ethereum-based projects can also interact with Polkadot through a bridge.
4. The asset cross-chain agreement Ren plans to cross-chain 4 types of assets such as Filecoin to Ethereum
News on November 7th, the icon information of four new cross-chain assets appeared in the developer document of the asset cross-chain protocol Ren Protocol, including Dogecoin (DOGE), DGB, Filecoin (FIL) and Terra (LUNA), which may mean Ren will then give priority to cross-chain support for these four types of assets. Earlier, Ren officially announced on Twitter that he was planning to cross-chain FIL to the Ethereum network.
[Interpretation] Cross-chain to Ethereum means that these assets will participate in the DeFi ecosystem, which is good for Ethereum, but not necessarily conducive to the development of these projects.
4. Industry Voice
1. V God predicts rewards for miners at all stages of ETH2.0: miners will no longer receive most of the TX fee income in 2021
On November 11th, Twitter netizen tomo asked V God, I want to know what happened to PoW miner rewards after (ETH2.0) phases 0, 1, and 2. I know they will be reduced, but what exactly is it? What? In response, V God just replied that the forecast for miner rewards is as follows, now: remain the same; by mid-2021: due to EIP 1559 (most of the fees are burned), miners no longer receive most of the TX fee (txfee) income; when When the merger occurs: PoW no longer exists.
[Interpretation] Ethereum ecological PoW miners involve tens of billions of dollars in mining. If they are eliminated in this way, it is difficult to guarantee that a hard fork will not occur.
2. CEO of Messari: The value of ETH is mainly reflected in the application layer, and the dominant position is far from being determined
On November 11, Messari CEO Ryan Selkis just retweeted a tweet from Blockchair chief developer Nikita Zhavoronkov and said that this is why the main beneficiaries of ETH 2.0 are Polkadot, Cosmos, Cardano, Algorand, etc. The value of ETH has now been reflected in the application layer (stable currency, DeFi), and the continued dominance of ETH is far from certain. Nikita Zhavoronkov analyzed in the evening that Ethereum caused a downtime due to an undisclosed hard fork that caused Infura to fail to upgrade in time.
[Interpretation] The value of ETH is mainly reflected in the application layer, and the dominant position is far from being determined, that is, the pattern of the blockchain industry is far from being determined.
3. The Internal Revenue Service: The conviction of a former Microsoft employee proves that Bitcoin cannot cover up criminal behavior
According to TheDailyHODL on November 11, the Internal Revenue Service (IRS) stated that the conviction of a former Microsoft engineer who tried to use Bitcoin to hide evil activities showed that crypto assets cannot hide criminal behavior. U.S. District Judge James L. Robart sentenced olodymyr Kvashuk, a Ukrainian citizen living in Renton, Washington, to nine years in prison on Monday. When Kvashuk was testing Microsoft’s online retail sales platform from 2016 to 2018, he stole millions of dollars in online gift cards and other forms of currency stored value, and used the bitcoin mixing service to finally transfer the funds into his bank account .
[Interpretation] Although Bitcoin has anonymity, once the data is on the chain, it can never be tampered with, which means that criminal evidence is permanently retained. Therefore, Bitcoin is definitely not a money laundering tool for criminals.
4. Doctor Doom: The CBDC revolution will come within three years
According to Cointelegraph, Dr. Doomsday Nouriel Roubini predicts that a revolution driven by CBDC will arrive within three years at the earliest. He said, “Not only do you don’t need cryptocurrency, you don’t even need bank accounts and checks. The major changes we see in the next three years will be driven by the central bank’s digital currency.”
[Interpretation] Blockchain empowers the financial industry. In addition to DeFi, CBDC will undoubtedly be the largest potential application.
