Digital asset markets rallied parabolically until investor confidence was hit hard, ending the week with a bearish bias due to a completely negative hurricane.
Before reading the overview, keep an eye on the most read stories about Bitcoin’s price, as well as the macroeconomic picture and the DeFi phenomenon.
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Bitcoin reflects growth in the first half, pointing to a price of $ 41,000 by 2020.
Ethereum gas taxes hit $ 500,000, and the Ethereum price peaked in 2020 at $ 486.
Blue chips, which reached their full-time high, were the leaders in the sharp fall in the stock markets. When this happened, many of the tokens associated with DeFi platforms were drastically recovered, especially SushiSwap (SUSHI), which lost almost 40 percent of its value.
A correction in traditional markets seems to have affected Bitcoin (BTC) by more than 10 percent before jumping slightly to the $ 10.3-10.4k range.
Bigger is not always better
Technical stocks, which pushed U.S. stocks to record highs this summer, plunged this week, causing the Nasdaq Composite to plunge nearly 5 percent, the biggest drop since June.
Apple shares lost eight percent, cutting the iPhone maker’s value by more than $ 150 billion dollars, while shares in Amazon, Alphabet and Microsoft fell more than four percent.
As a result, VIX jumped above the 30-point mark for the first time since mid-July, and the Nasdaq’s corresponding volatility index rose to more than 40 points – almost half the low in mid-August.
Historically, VIX has climbed several times in the 1930s before and almost always resulted in a big jump.
This is a reminder that loaded trades cause a lot of volatility when a person starts to roll back their positions. Cryptoactive traders are aware of such dynamics, and while bulls are particularly concerned about the reversal of the state, the withdrawal provides an opportunity for recovery.
The futures curve has also flattened out since loan buyers were the first to seek coverage, and the options market has many opportunities to take advantage of the wrong price in the market.
Are DeFi tokens the new pink paper?
Ethereum transactions rose to record highs for the second time in three weeks, according to Etherscan, and Uniswap V2: Router 2 is now the main source of gas consumption. This is followed by a decentralized modem (USDT); Another DeFi lover is SushiSwap: MasterChef LP Staking Pool.
Thus, Tether was finally eliminated from the top of its position as the main source of gas use.
The fact that it was hit by the DeFi platform says little about the industry’s recent growth, with over $ 9.34 billion reserved when it comes across different platforms. Currently, Aave, Maker and Uniswap each earn around $ 1.5 billion in TVL.
On the other hand, DeFi is a high-risk market with a high return, and that is why it trades in small shares (pink paper). Both obviously have a market and will always be among the risk-takers.
Are there exceptions to high gas taxes on the road?
The constant focus on DeFi and the recent hyperactivity of Ethereum has resulted in severe congestion and gas. This prompted Ethereum founder Vitalik Buterin to point to different solutions through clustering and segmentation.
ZK-Rollups is a testament to ignorance technology that helps package or merge multiple transactions into one transaction, thus helping to reduce congestion on the Ethereum blockchain. Less congestion means less cost.
Optimistic rotations and ZK can increase the throughput from ~ 15 tx / sec to ~ 3000 tx / sec, and do most of the transaction processing at layer 2. On the other hand, division increases the throughput to the base layer by about 100 times.
This could lead to a 100-fold reduction in taxes, although in reality it will not be much reduced in the long run, because demand for Ethereum is also likely to grow.
The only solution to the problem of high transaction fees is scaling, and Tether, Gitcoin and other apps do the right thing by going to ZK Groups. With positive attention, Tether now plans to add support for its tier 2 scaling solution (ZK-Rollups).