Tether, the world’s most valuable stablecoin by market capitalisation, has been gaining a lot of traction lately. The latest development is that Tether whales moved 110 million USDT from different crypto exchanges to different wallets in less than an hour between 3.35am GMT and 4.25am GMT on Monday morning.
These massive transactions were captured by Whale Alert, an advanced blockchain tracker and analytics system.
— Whale Alert (@whale_alert) July 20, 2020
Tether is ranked the 3rd largest cryptocurrency by market cap of $9.169 billion, with a daily volume of $16.4 billion.
Data from a crypto analytic firm Coinmarketcap reveal that its total supply presently stands at about 9,479,177,442 USDT, with the number of its present circulating supply standing at 9,187,991,663 USDT, when this report was drafted.
Quick fact: Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol USDT.
Stablecoins are used as quote currencies in crypto-asset trading pairs, far more than fiat currencies on most exchanges. Unsurprisingly, a large majority of stablecoin trading volume is dominated by Tether.
There are more USDT (Tether) quote pairs in our coverage (out of the exchanges in our sample) than all other stablecoin trading pairs combined.
The “Tether Treasury’s” USDT wallet has grown in recent times to become the top holder of the stablecoin, meaning that some crypto traders, and investors may have managed to successfully withdraw their stakes from circulation. The removal of about 29% of the total volume of Tether in circulation has recently coincided with a huge depletion in the amount of Tether held in 2 USDT wallets separately owned by Huobi and Binance.
Bitcoin could potentially become superior to cash
BTC holds a maximum supply of about 21 million digital coins.
MicroStrategy, a publicly traded company in the US valued at over $1.2 billion, disclosed via an official statement that it would be adopting the world’s most valuable crypto as a “primary treasury reserve asset”.
“Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy,” MicroStrategy CEO, Michael J. Saylor said. He also acknowledged that Bitcoin could potentially become superior to cash.
Data from Coin360 showed the flagship crypto-asset was trading above $11,700 with a market valuation above $216 billion and a daily trading volume of about $9.6 billion. This was as at the time this report was being drafted.
Why Bitcoin might be rising
What’s driving the most valuable crypto and its usage as an investment asset lately?
Well, many financial experts believe the sudden rise of crypto assets’ value might be due to the weakness in the US dollar.
The American dollar has fallen in recent months, on expectations that the Federal Reserve will keep interest rates near zero for the long term as a result of the financial disruption caused by the deadly COVID-19 pandemic.
Quick fact: BTC holds a maximum supply of about 21 million digital coins of which there are about 18.5 million in circulation, while over 4 million BTCs have already been lost forever. These show that its definite supply protects it asset against value dilution.
Recall that Nairametrics earlier gave valuable insights into why Bitcoin is now the most preferred asset to own among institutional investors.
Changpeng Zhao, the CEO of Binance, on his Twitter feed commented on the reasons companies are investing in cryptos. He said:
“Smart publicly listed company buys $250,000,000 worth of bitcoin, as a safe haven asset. Stimulus money flowing from Wall Street into bitcoin. Are you in front of or behind them?”
Smart publicly listed company buys $250,000,000 worth of #bitcoin, as a safe heaven asset.
Stimulus money flowing from Wall Street into #bitcoin.
Are you in front or behind them? https://t.co/1FYLZERjkS
— CZ Binance (@cz_binance) August 11, 2020
Ethereum on rampage, surges to a 2-year high of $430
ETH breaking the strong resistance level of $450, in the nearest future.
The second most valuable crypto surged past its two-year high. Just a day after reaching a two-month low in address activity amid fears of soaring fees, ETH has defied short-term fundamental concerns and soared to a 2-year high of $430.
According to Santiment Research Company’s Twitter feed, Ethereum traders were also elated about sky-high social volume levels.
🚀 Just a day after making a two-month low in address activity and fears of soaring fees, $ETH has defied the short-term fundamental concerns and soared to a 2-year high of $430! #Ethereum traders are rejoicing on sky-high social volume levels as well. 🎉 https://t.co/cRgCgaw4it pic.twitter.com/mndWglPl0T
— Santiment (@santimentfeed) August 13, 2020
The two-year high record band is now the new barrier to overcome as ETH sits above $400 per token. If Ethereum manages to stay above $425, Nairametrics could soon see ETH breaking the strong resistance level of $450, in the nearest future.
But not everything is all smooth in the second most valuable crypto market. The growing popularity of Ethereum-based networks and the use of DeFi protocols are both a blessing and a curse.
The Ethereum network is presently close to reaching its technical limits, as DeFi and Tether are essentially responsible for as many transactions as the network can handle at the moment.
Quick fact: Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without fraud, interruption, control, or interference from a third party.
Like with many other crypto assets, speculating with Ethereum can be highly profitable and has had a good history of giving its investors huge returns. However, there are also many other options to make income from Ethereum. These include Ethereum mining, Ethereum faucets, and Ethereum staking.
Two day old crypto, YAM’s market value drops from $60 million to $0 in 35mins
Given YAM’s governance module, this bug would render it impossible to reach quorum.
Two-day-old crypto asset, YAM has seen its market capitalization vanish in less than 60 minutes. This happened after developers of the once-promising defi project attempted to fix a bug in the code, but weren’t successful.
Data from BKCoincapital, a crypto hedge fund, revealed how YAM, a liquidity mining protocol which attracted >$400mm in just its first 2 days of trading, had a bug discovered in its code. The bug caused the unaudited defi platform’s Market Capitalization to go from $60 million to $0 in approx. 35 minutes.
YAM, a liquidity mining protocol which attracted >$400mm in just its first 2 days of trading, had a bug discovered in its code, which caused the unaudited DeFi platform’s Market Capitalization to go from $60mm to $0 in approx. 35 minutes. #cryptocurrencies #YAM #Bitcoin pic.twitter.com/qBf07IzgVe
— BKCoinCapital (@BKCoinCapital) August 13, 2020
YAM is an experimental protocol mashing up some of the most exciting innovations in programmable money and governance.
YAM project developers, discovered a bug in the YAM rebasing contract that would mint far more YAM than intended to sell to the Uniswap YAM/yCRV pool, sending a large amount of excess YAM to the protocol reserve. Given YAM’s governance module, this bug would render it impossible to reach quorum, meaning no governance action would be possible and funds in the treasury would be locked.
At its core, YAM is an elastic supply cryptocurrency, which expands and contracts supply in response to market conditions, initially targeting 1 USD per YAM.