Author: dfmines

Ethereum completed one of its historic upgrades in mid-September. The Merge created the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Unfortunately, the post-Merge events brought deflationary situations for the blockchain. As predicted by some crypto experts, the price of Ethereum has dropped drastically following its transition to PoS. Also, the dynamics of ETH supply have changed after the upgrade. Related Reading: Crypto Market Shows No Signs Of Positive Movement, Is ‘Uptober’ A Myth? According to data from Ultrasound Money, there’s a reduction in the daily amount of ETH that hit the market. Furthermore, the data revealed that the declining record was about 90% after the Merge. This change could be because Ether is no longer mined since it’s now a PoS network. Burning Mechanism Reduces Ethereum Supply A careful study of Ethereum supply indicated a reduction over the past five days. With such a trend, the total supply for the second largest crypto asset plunged by about 5,500 ETHs since October 8. The decline is linked to the implication of EIP-1559 and the burning mechanism for the token. This ensures that a percentage of fees paid for ETH transactions is burned. Before the transition to PoS, miners receive about 13,000 ETH from the Ethereum network as rewards. The network makes payments daily to secure the ecosystem and for processing transactions. But the Merge changed the sequence for the network. The Ethereum network is now issuing a daily reward of about $1,600 ETH to validators. This is because the base fees for processing ETH transactions are burned. With such a practice, Ethereum will be deflationary, especially when the usage increases. Today, almost 7,525 ETH has hit the market as a new token supply after the Merge. But in comparison with its operation as a PoW blockchain, the value would have reached about 340,000 ETH. XEN Crypto Project Plays A Role The ETH burning mechanism must take more tokens out of circulation. The ETH Foundation calculated that ETH would be deflationary if the gas price reached 15 gwei. Related Reading: Bitcoin Boredom Causes Trading Volume To Dive 38% From September Highs On Sunday, XEN Crypto was launched on the Ethereum blockchain. Unfortunately, its project operates as a new Ethereum gas guzzler, and some users have already started minting the crypto XEN. The sudden activity spiked Ethereum gas fees over the weekend. Since every address on the Ethereum network could mint XEN, this accounts for increased Ethereum gas prices. Minting XEN to sell immediately has an incentive. Also, users receive more significant amounts just by locking the tokens. Hence, the scenario with the airdrop is that of the gold rush. It places XEN as the gold and Ether as the pickaxe for its mining. Etherscan revealed that it took about 1,470 ETH as gas fees to mint XEN in a day. This value represents up to 40% of the total gas expenditure on the Ethereum network. Hence, ETH supply is dropping as the amount of burned ETH is more significant than what stakers gain as a reward. Featured image from Pixabay and chart from TradingView.com

The CEO of Devere Group, a financial advisory and asset management firm, anticipates further volatility in the crypto market before year-end. However, he stressed that “for serious investors, this will not necessarily be seen as a bad thing,” noting that “Savvy, long-term crypto investors will be looking to benefit from panic sellers by buying their […]

The crypto market has been showing signs of decline recently as prices of Bitcoin and other crypto assets keep dropping. With the hikes in interest rates from most of the global central banks, the global economy is getting tighter. The impact on both the crypto and traditional markets is significantly devastating. Following the events, the International Monetary Fund (IMF) warned about economic decline. Furthermore, it speaks of a possible worse global recession in 2023. This means that financial markets will go risk-off, creating extreme fear for the markets. Related Reading: Here’s Why SUSHI Is Down More Than 10% In The Last 24 Hours Hence, there could be a drastic decline in the prices of crypto assets and conventional stocks. BTC Price Correlates With Stocks? The price of Bitcoin has depicted a strong correlation with equity assets for more than a year. This is seen with most of the trends for BTC and some stocks in most cases. Several factors and conditions have been highlighted as explanations for the correlation. One of the stocks with a solid link to Bitcoin is S&P 500. Bitcoin witnessed a price drop during the global pandemic recession in 2020. This was the same story for equity stocks. But as the economic conditions gradually progressed positively, the system transited accordingly. As a result, the crypto and equity markets sold off in December 2021 and May 2022. Most of the correlated trends could indicate the performance of markets for securities once they hit a certain liquidity threshold. But, conversely, it could suggest that institutional fund has reached a sizable portion of capital inflows. The price of Bitcoin could be tossed around firmly and fiercely despite the causative factors of a declining economy. However, the primary crypto asset could meet a drastic fall once there’s a global recession. This will propel investors to pull out their funds through massive sell-offs. BTC Could Offer Long-Term Bullish Overview The price of Bitcoin will boost in a situation with favorable intervention. For example, the US Federal Reserve and other central banks globally could take the IMF warnings and cut down rates to curb recession. Such a situation will create a price rally for Bitcoin and other crypto assets. Also, equity stocks will strive positively. Related Reading: Bitcoin Mining Difficulty Adjustment May Force Miners To Dump Their BTC However, there could still be hope even without the intervention of the central banks. This means that a recession will emerge and pull down the crypto market, with the price of BTC dropping. Such lower prices could become an attractive entry point for some investors of the crypto assets. Recall that the 2008 recession brought no prominence to Bitcoin. But following its collapse in March 2020, the primary cryptocurrency got a massive bull market that spiked its dominance in the crypto market. From then, Bitcoin rallied far above the equities and has been sustaining its stance. With the overall outplay of events, Bitcoin depicts a bullish outlook on a long-term basis. At press time, the BTC price is around $19,137, indicating a drop over the past 24 hours. Featured image from Pixabay and charts from TradingView.com

Blockchain.com becomes the second crypto exchange in two days to receive preliminary approval to provide crypto services within the growing crypto hub.

The First Information Report (FIR) launched on Polygon allows the citizens of Firozabad to register complaints against the police without worry of it being dismissed or manipulated.

Welcome to the Daily General Discussion thread. Please read the disclaimer and rules before participating.   Disclaimer: Consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading,…
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The Denver-based gas-to-bitcoin infrastructure company Crusoe Energy announced on Wednesday that it acquired the operating assets of Great American Mining (GAM). The acquisition gives Crusoe over 10 megawatts (MW) of mining capacity and 4,000 ASIC mining rigs. Digital Flare Mitigation Firm Crusoe Energy Acquires Great American Mining’s Assets, Acquisition Adds Approximately 9% to Company’s Capacity […]

[SERIOUS – LEVEL 1] First time using the serious tag from CCIP-033 lets see how it goes. Bitcoin development can often seem a bit of a black box. Without knowing where to look you would likely never know half the shit that is going on behind the scenes, that's not to say it's exclusive or…
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With the holidays coming, perhaps this will help explain some things. It's a long list, but scroll through and maybe you'll find something interesting! Cryptocurrency – what is it? Cryptocurrency is a currency similar to any other that you have used or heard of. Quite simply put; it’s a value associated with a digital coin,…
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The two largest cryptocurrencies by market cap, Bitcoin and Ethereum, have seen a significant rise in their open interest in the last couple of weeks. This comes even when the market is seeing struggling prices and investors have begun to take more conservative positions in the market. The drastic increase in the open interest across these two cryptocurrencies could have some significant implications for the crypto market as a whole. Ethereum Spikes With Bitcoin  Bitcoin open interest has been on the rise over the last couple of weeks, which has led to some interesting forecasts for the digital asset, and now, Ethereum has begun following the same trend. Over the last week, the Ethereum open interest relative to market cap had surged alongside that of bitcoin. Related Reading: Here’s Why SUSHI Is Down More Than 10% In The Last 24 Hours Both digital assets had actually hit new all-time highs in this regard, beating June 2022 levels. Bitcoin had risen to 3.21% while Ethereum had peaked at about 4.24% during the same time period. So ETH is seeing even more extreme figures compared to bitcoin.  To put this in perspective, the open interest to market cap ratio of ETH compared to BTC since 2019 has always sat at around 0.46%, representing a fairly small margin. However, this had changed in the last two years and the gap is ever-widening.  BTC and ETH open interest reach new ATH | Source: Arcane Research The Ethereum Merge had been the main reason behind this spike. Since interest in the second-largest cryptocurrency had peaked as the upgrade drew closer, institutional investors had begun to set up shop in Ethereum, leading to the wide gap that is now being observed. Short Squeeze Incoming? A spike in open interest, especially one that hits all-time high levels, has always had massive implications for the crypto market, even if just in the short term. The current levels suggest that derivatives in both digital assets are very high at the moment, leading to extreme leverage levels. BTC price settles above $19,000 | Source: BTCUSD on TradingView.com With such high levels, it is important to keep in mind that while a short squeeze is more likely, it could go either way. Eventually, the leverage levels will begin to wind down, which is when the squeezes are expected to happen. Whatever way they swing in the end, the implications will be just as brutal for the market. Related Reading: Bitcoin Mining Difficulty Adjustment May Force Miners To Dump Their BTC Large market volatility and instability will be the order of the day when this happens. For investors, this is a time to take fewer risks to avoid being caught in this meltdown. The established bear trends and such extreme levels of leverage can be a recipe for disaster.  Featured image from CoinDesk, charts from Arcane Research and TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…