Cointelegraph.com News Cointelegraph covers fintech, blockchain and Bitcoin bringing you the latest news and analyses on the future of money.
Polygon-based QuickSwap's TVL grows by $75M in two weeks
by Cyrus McNally on March 4, 2021 at 3:58 am
QuickSwap is quickly become the go-to DEX for trading Ethereum tokens off-chain, with its liquidity quadrupling since late February. Polygon-based DEX QuickSwap has attracted more than $105 million in worth of liquidity since the start of 2021.The Uniswap clone began the year with only $300,000 worth of assets locked in its protocol, with more than three quarters of the exchange’s total value locked being added in the past fortnight.QuickSwap is currently the leading second-layer decentralized exchange by daily volume with $38.5 million worth of trades over the past 24 hours. The second-largest L2 DEX by volume is Loopring with $8.4 million, followed by ZKSwap with $2.5 million.L2 DEX trading volume in the last 24hrs: 1 @QuickswapDEX $38,503,800 (>30% own token❗) 2 @loopringorg $8,429,098 3 @ZKSwapOfficial $2,530,652 (>50% own token❗) 4 @Leverj_io $1,339,688 5 @nashsocial $913,475 6 @deversifi $805,710 Powered by @coingecko API— L2_Dex_Wars (@L2Wars) March 2, 2021 QuickSwap’s governance token, QUICK, surged from under $1 per token to $557 in three months, and currently represents nearly 20% of the protocol's total liquidity. Other popular tokens on the exchange include Wrapped Ether, USD Coin, maUSDC, and Wrapped Matic.Speaking to Cointelegraph, QuickSwap founder Nick Mudge attributed the exchange’s recent success to the user’s that Aavegotchi brought to Polygon after launching its NFT staking game on Jan. 21. With more than 80 tokens driving more than $23 million in daily trade volume, Mudge believes QuickSwap is a cornerstone of Polygon’s nascent DeFi ecosystem, predicting the two will grow symbiotically:“QuickSwap is the center of the Polygon DeFi ecosystem and will grow as the ecosystem grows. QuickSwap and its liquidity mining incentives were a solution to move the users to Polygon and give them a Uniswap experience with very low gas fees.”Polygon, a scaling solution allowing projects to create Ethereum-compatible blockchains, has benefited from the crippling gas fees that have recently made many Ethereum-powered DeFi protocols too expensive for casual users.MATIC, the native crypto of Polygon, has posted meteoric gains this year, rising 1,135% from $0.0182 to $0.2249 over 2021 so far.
Compound to offer cross-chain borrowing via Gateway
by Martin Young on March 4, 2021 at 2:14 am
Cross-chain collateral will soon be available with Compound Finance. Decentralized finance lending protocol Compound has unveiled a new blockchain that will enable cross-chain collateral.It is the latest move to mitigate expensive operations on the Ethereum network and enable more interoperability in the DeFi ecosystem.The new Gateway chain, announced on Mar. 2, has been described as a cross-chain interest rate market that allows users to borrow assets that are native to one chain, such as Ethereum, with collateral from another chain, such as Polkadot or Celo. Compound Finance originally announced the platform in December 2020 when it was called ‘Compound Chain’.Compound aims to alleviate current fragmentation in the DeFi industry across different blockchains with Gateway and has chosen the next-generation blockchain architecture, Substrate, to do so.Substrate, which also powers the Polkadot network, is a modular framework that enables developers to create purpose-built high-throughput blockchains. Compound founder Robert Leshner explained the choice of blplatform in the blog post:“We chose Substrate so that we could focus on building application code, instead of inventing consensus algorithms; it’s a modern framework built on a modern language, Rust.”To complement Gateway, Compound is planning to build ‘Starports’ which would function as on, and off-ramps, to the new blockchain for users to borrow or deposit an asset as collateral. Leshner elaborated that Starports are the "glue" that connects a blockchain to Gateway, and they can be mixed and matched in various combinations for different networks.Gateway will also have a native unit of value called CASH which will standardized value across various disparate assets and be used to pay transaction fees. CASH will also be earned by liquidity provision and network validators.Gateway is currently running on Ethereum’s Ropsten network as a testnet, and audits will be carried out before the mainnet launch, though no date was specified for this.
1 in 5 investors at firms that don't trade in crypto say they are 'likely' to in future
by Brian Quarmby on March 4, 2021 at 2:10 am
A poll has found 22% of institutional investors are likely to buy cryptocurrency in the future. A survey carried out by JPMorgan found that one in five institutional investors at firms that don't currently trade in cryptocurrency believe their companies are likely to do so in future.The survey of more than 3,400 investors representing 1,500 institutions, found that 11% of respondents work at firms that trade or invest in crypto, while 89% do not.Promisingly however, twice as many institutions appear likely to invest into crypto ashan those who have already taken the plunge, signalling institutional money may continue to flow into the markets over the near-term. Out of respondents from firms that do not trade or invest in crypto, 22% sa stated they believe their companies are likely to invest in digital currencies in the future.While some analysts argue that sustained institutional buying will now keep the price of Bitcoin up $50,000 — a significant number of institutional investors survestill lack faith in cryptocurrency. Asked for their opinion on crypto, 14% answered that it’s "probably rat position squared" and something to avoid, while 21% believe crypto is just a temporary fad. Just 7% of investors think it "will become one of the most important assets." The poll found that most institutions have security concerns, with 98% of respondents stating they believe fraud in the crypto world is "somewhat" or "very much prevalent." This appears to be major hurdle for institutional investors at the moment, with Damien Vanderwilt, co-president of Galaxy Digital, telling Bloomberg last month:"When we think about the conversations we have with corporates and institutional clients and any part of those constituencies considering investing in the sector, the first order problem is safety and are the assets that they're buying going to be safe and available and secure,”However, these concerns aren't worrying big players like Tesla and MicroStrategy, with both parties investing billions into crypto in 2021. MicroStrategy recent increased its BTC holdings by 27% in February, upping the number of it Bitcoin held in its treasury reserve to 90,531 BTC.
100-artist NFT collaboration sells out in minutes, increases 7X in price in 24 hours
by Joshua Mapperson on March 4, 2021 at 1:47 am
The limited-edition NFT artworks are already selling for thousands more than the original price. They combine work from 100 unique artists who might not have entered the space on their own. An NFT made up of 100 individual pieces from 100 different artists has sold out within minutes on the Rarible platform, raising almost $89,000.The Ultimate Artist Collaboration...crashed Rarible and then sold out in minutes — Loopify ♂️ (@Loopifyyy) March 3, 2021 Although the sale amount is far from record-breaking, the project is noteworthy in that it is a mass collaboration th has taken shape through an individual non-fungible token, or NFT. NFT curator “Loopify” told Cointelegraph the work had been inspired by the current limitations for lesser-known artists to mint and sell their own NFTs such as high gas fees, limited understanding of the tech, and little visibility.“The main idea behind it was that I chose a lot of artists and they had a huge barrier [minting fees] — this allows them to pursue creating NFTs.”Minted on NFT platform Rarible, Loopify originally listed 150 editions for 0.3 ETH (approximately $475) each on March 3. Less than 24 hours later the editions have already risen in value by almost 7X, and are changing hands for 2 ETH, with the most expensive edition currently listed at 4 ETH by “Artist.” That’s more than 13 times the original price.While the identities of all 100 artists are yet to be revealed, Loopify told Cointelegraph that the compilation includes work from Vexx, whose YouTube channel has almost three million subscribers and a quarter of a billion views, adding:“We do have a couple of big artists and one that is new to NFTs”The funds raised will be transferred into stablecoin USDC before being distributed equally to the artists. This process allows artists to enter the space and reap the rewards without having to pay gas fees or understand the technology behind NFTs Loopify explained.Enjin running fasterEnjin, whose team created the ERC-1155 token, or semi-fungible token, is also tackling the gas fee barrier for incoming NFT artists. The project has just announced plans to release a new scaling solution dubbed JumpNet that will use the ERC-1155 token to allow users to mint and port tokens on multiple chains without gas fees. Enjin CTO Witek Rodmoski explained that, “These technologies will enable developers to reach mainstream users and provide modern experiences without worrying about unpredictable business overhead caused by gas fees,” adding:“JumpNet is our high-speed bridge network that will allow creators to mass-distribute thousands of NFTs at no cost. Tokens on JumpNet can jump between the Ethereum network or Efinity (our upcoming NFT highway) when it launches later this year.”Although phase one is due to launch on April 6 and will support the free minting and trading of NFTs on Ethereum, it will not be until the second phase Efinity before the solution will support “assets from *any* blockchain.” Interest in NFTs has snowballed this week, with Banksy, Grimes, Paris Hilton, and Deadmau5 getting in on the act.
Bull flag breakout sets a $55,000 target for Bitcoin price
by Jordan Finneseth on March 4, 2021 at 1:33 am
Bitcoin bulls are looking to eliminate a key overhead resistance level in order to create a path to $55,000. Bitcoin (BTC) price sliced through the $50,000 resistance level during the early trading hours on March 3 as bulls found their momentum and the majority of altcoins joined in on the rally as the day progressed. Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin was trading at $48,500 in the early hours on March 3 before surging 8.6% to an intraday high of $52,631. Currently, BTC price trades slightly below $51,000, and while $50,000 may have become a soft support, a daily close above the 23.6% Fibonacci retracement ($52,000) is needed to confirm that a bullish reversal has taken place.BTC/USDT 4-hour chart. Source: TradingViewOn-chain analysis from CryptoQuant indicates that Bitcoin whales have been consistently buying the dips below $50,000 and according to CryptoQuant CEO Ki Young Ju, institutional buying is taking place at the $48,000 support, as seen by the highlighted orange line on the chart above.Bitcoin's mainstream adoption continues to take place in Canada as Ninepoint Partners announced that it plans to change its Bitcoin trust offering to an exchange-traded fund on the Toronto Stock Exchange in an effort to increase trading liquidity and provide a better trading price. Rising yields put pressure on traditional marketsBitcoin’s surge above $50,000 and increasing integration into mainstream financial markets has prompted some analysts to speculate on when a new all-time high will occur. For the time being, bearish macroeconomic factors are weighing on global markets and this could dampen growth in the short-term. The S&P 500, Dow and NASDAQ faced selling pressure throughout the trading day and closed down 1.31%, 0.39% and 2.7% after a spike in the 10-year U.S. Treasury yield renewed concerns about the health of the U.S. and global markets.According to Chad Steinglass, Head of Trading at CrossTower, Wednesday’s action in the market is a “revisit of the rates-based selloff” from Feb. 25, with tech equities and ARK funds facing increased pressure. Steinglass said that headwinds being faced by BTC at the U.S. market open were the result of “being dragged down by GBTC as the GBTC discount has crept back up to about 4.5%.” Despite these challenges, Steinglass sees the recent favorable Bitcoin comments by Citigroup and Fidelity as strong support for the narrative of increasing institutional adoption.Steinglass said: The fact that Bitcoin continues to show strength even with GBTC acting like a resistance band holding it back is very encouraging and shows to me that the overall story, that of accelerating adoption, is still intact.”Small and large-cap altcoins move higherBitcoin’s pop above $50,000 also helped ignite a rally in altcoins as the majority of the top 100 coins moved higher on Wednesday. Daily cryptocurrency market performance. Source: Coin360Ether (ETH) gained 8% to set an intraday high at $1,610, while Cosmos (ATOM) rallied 15.7% to a daily high at $21.18. Enjin Coin (ENJ) was the breakout star of the day as it surged more than 50% to make a new all-time high at $1.32. The sharp double-digit rally appears to be the result of the growing popularity of NFTs and Enjin’s transition into the growing NFT marketplace. BTC/USD daily chart. Source: Coin360The overall cryptocurrency market cap now stands at $1.55 trillion and Bitcoin’s dominance rate is 61%.