Category: Cryptocurrency News

New York State moratorium on PoW mining reinvigorates the conversation around crypto industry’s sustainability.

Hello r/cryptocurrency Garlicoin is hot out of the oven and ready to serve you with its buttery goodness. Forked from LTC, this decentralized cryptocurrency with almost no new technology will help you through the darkest times in your life. This is the coin you never thought you needed, and you probably don't. The world is…
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On-chain data shows while the price of Bitcoin has continued to struggle recently, miners have shown diamond hands. Bitcoin Miner Reserve Holds Still Amid The Recent Price Consolidation As pointed out by an analyst in a CrypoQuant post, BTC miners have been accumulating for some time now, and the dwindling price hasn’t scared them. The “Bitcoin miner reserve” is an indicator that measures the total amount of coins present in wallets of all miners. When the value of this indicator observes a decrease, it means the supply held by miners is going down. Such a trend may be a sign that miners are dumping right now as they usually withdraw coins from their reserve for selling them on an exchange. And therefore, this can be bearish for the price of the coin. On the other hand, an uptrend in the indicator, when prolonged, can prove to be bullish for the value of Bitcoin as it may show miners are accumulating at the moment. Related Reading | Quant Explains Similarities Between Current And Summer 2020 Bitcoin Markets Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past couple of years: Looks like the value of the metric has been trending sideways in recent months | Source: CryptoQuant As you can see in the above graph, the Bitcoin miner reserve was at a very high value before the start of the 2021 bull run, but as soon as it kicked off a lot of miners harvested profits. Following the crash in May of the same year, miners held on for a while, but it wasn’t too long until they the metric saw a plunge as they dumped. Related Reading | Bitcoin Perfectly Follows Market Cycle Comparison, What Comes Next For Crypto? Active miners have running costs like electricity so in times of low profitability, they have to sell their coins to pay off these bills. These holders started accumulating again in July as a new rally kicked off. This time, however, they didn’t sell off when the ATH was hit and a crash occurred. Though, miners have also not been adding further to their Bitcoin reserves in recent months either. But nonetheless, they have held strong through the seemingly endless sideways movement the price of the crypto has shown lately. BTC Price At the time of writing, Bitcoin’s price floats around $38.4k, down 1% in the past week. Over the last month, the crypto has lost 17% in value. The below chart shows the trend in the price of the coin over the last five days. The value of the crypto seems to have slid down over the last few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Shaun Maguire, a crypto partner of Sequoia Capital, one of the venture capital firms most active when it comes to investments in the cryptocurrency space, issued its opinion on the future of many VCs investing in crypto. To him, many of the companies that are now experimenting with crypto investments will “pull back” due to […]

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In a note authored by Michael Saylor, Nic Carter and Darin Feinstein, the Bitcoin Mining Council alleges that lawmakers can’t tell the difference between a data center and a power plant.

BTC and altcoins are holding at their current support levels, but this week’s comments from the Federal Reserve could be a determining factor in short-term price action.

I don’t know when this started happening but a considerable number of users on this sub have turned discussion and discourse into something VERY toxic and honestly its slowly ruining this sub. What is the use of a crypto subreddit IF YOU CANT TALK FREELY ABOUR CRYPTOS??!! Why the toxicity? I’m not obligated to justify…
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Anchor Protocol, one of the most popular platforms in the Terra ecosystem, rolled out a change in its Earn Rate. The latter will begin to operate in a semi-dynamic fashion rather than the previously fixed 20% annual percentage yield (APY). Related Reading | Terra Price Continues Moving North; How Soon Will It Cross $100?  With a massive shift in the protocol’s reward mechanism, the new models aim at making Anchor “more sustainable”. As a result, users started earning an 18% APY as of yesterday, May 1. The earn rate will be modified each month for the foreseeable future. The team behind this Terra project said the following via their official Twitter account: The Anchor Earn rate adjusts dynamically by up to 1.5% each month based on if the yield reserve appreciated or depreciated. The floor is 15% APY & the ceiling is 20% APY. The changes in Anchor’s earn rate are triggered by the protocol’s yield reserve. A .25% modification in this element will be followed by an adjustment in the Earn Rate. This shift in the Terra protocol was approved, via Proposition 20, on March 24 this year. At the time, Anchor Protocol said: The addition of a semi-dynamic Earn rate will contribute to the long-term sustainability of Anchor & will benefit users of the protocol by enabling yield reserve growth while continuing to provide an attractive yield on UST. As seen below, the total borrowed versus total deposits on Anchor shows significant divergence. This is why the yield reserves on the protocol trend to the downside, especially in times of bearish price action on larger cryptocurrencies. Some of the users believe that this trend could trigger a deppeging event for UST which could jeopardize the entire Terra ecosystem. The introduction of a semi-dynamic rate is the first step to avoiding this possibility. Terra Is Not The Most Attractive Venue For Stablecoin Yield? Some users believe that the new earn rate might not be enough and have been suggesting the implementation of investment strategies that can contribute to the yield reserves. Another part of the community seems focused on increasing the borrowing rate at Anchor. However, as the chart above shows, deposits on the Terra protocol have been trending to the upside at a fast pace. In the meantime, the number of borrows has been moving sideways with a slight uptick in recent months. Over the same period, other network launched their own stablecoins with alternatives to Anchor. NEAR and TRON stand out because of the hype and the APY that they are offering to their users. TRON seems to have the largest incentives as it provides depositors with a 30% APY. Like Terra users with Anchor, many wonder if those rewards will be sustainable. Related Reading | Terra Users Heads Up, Why NEAR May Launch Native Stablecoin With A 20% APR At the time of writing, Terra (LUNA) trades at $83 with a 6% profit in 24-hours.