Crypto Guides, Knowledge & Insights

What is Crypto Lending?

Decentralized finance services have grown in importance in the blockchain universe. Their fundamental tenet is decentralization, the elimination of middlemen and gatekeepers, and the empowerment of ordinary people through peer-to-peer alternatives. From liquidity provider benefits, lending protocols, and algorithmic stablecoins to protocol rewards, decentralized exchanges (DEXes), and insurance, smart contract systems are improving many aspects of the traditional financial system in a more efficient, profitable, and transparent manner.　　Crypto lending is one of the most popular and widely used DeFi services; investors deposit cryptocurrency, which the platform lends to borrowers in exchange for interest payments.　　What is crypto lending, and how does it work？　　In essence, crypto lending works in the same way that traditional lending does: someone needs more money than they currently have, and someone else – usually a bank in traditional finance – lends them the money and charges interest.　　In cryptocurrency lending, one party lends cryptocurrency to another in exchange for interest payments. As a result, it enables instant loans, where the user can begin operating immediately by providing some collateral. This could happen via a lending dApp or a cryptocurrency exchange, for example.　　Cryptocurrency lending platforms act as middlemen, connecting lenders and borrowers. Lenders deposit cryptocurrency into high-interest lending accounts,

2022-09-14Deep Dive

Within 24 hours following the merge, Ethereum POW will implement a hard fork.

The proposal was made public by EthereumPoW, the Twitter account in charge of the next ETHW mainnet, in a post outlining the tactic. The Twitter thread stated that almost everything, such as the final program, binaries, configuration data, networks information, RPC, and explorers, would be publicly released after the clock elapsed. The precise period wouldve been announced with a countdown timer one hour before launch. The mainnet will begin at the block height of the Merge block “plus” 2048 EMPTY blocks as padding as a safety measure to ensure that the chainID shifts to 10001 properly. Additionally, based on the thread, the network is the longest network of ETHW. 　　The first block on ETHW that might include any transactions will be + 2049 after the change.　　As stated on the EthereumPoW forum, “Block rewards for the empty blocks will be directed to the 1559 multi-sig wallet. Therefore, the Merge block + 2049 will be the first block on ETHW that may contain any transactions.” 　　It further said that the initial mining difficulty would not fall below 220 T, or 15 TH/s in terms of hashrate. Everyone hasnt, however, understood the strategy. The Block reports that some programmers are confused by the

2022-09-13Deep Dive

BCG and ADDX report that asset tokenization will grow into a $16.1M business proposition by 2030

The growth projection, according to the paper, was established by looking at the prospect of the crypto winter, which has caused investment to concentrate on more cost effective blockchain applications. 　　The BCG and ADDX analysis, headlined “Relevance of on-chain asset tokenization in ”crypto winter“,” claims that the desire from a variety of stakeholders for increased access to the private markets is yet another factor influencing the predicted growth in asset tokenization. 　　The growth projection, according to the paper, was established by looking at the prospect of the crypto winter, which has caused investment to concentrate on more cost effective blockchain applications. 　　The BCG and ADDX analysis, headlined “Relevance of on-chain asset tokenization in ”crypto winter“,” claims that the desire from a variety of stakeholders for increased access to the private markets is yet another factor influencing the predicted growth in asset tokenization. 　　Asset tokenization is the method of establishing tokens on a chain to represent assets in transactions for improved productivity. By lowering minimum lot sizes, asset fractionalization and tokenization reduce transaction barriers in capital markets.　　“Assets being fractionalized and tokenized on platforms like ADDX can cut minimum investment levels from millions of dollars to only thousands of dollars,” the section

2022-09-13Deep Dive

Nigeria records an all-time-high in e-payments in August

By: Damian Okonkwo 　　Nigeria has recorded the highest rate of electronic payments (e-payments) so far in the country in August 2022.　　According to the report given by the Nigerian Inter-Bank Settlement Systems (NIBSS) last week, the countrys total transactions via e-payments rose to N33.2 trillion in August. This raises the total value of e-payments made through the NIBSS Instant Payment Platform (NIP) in Nigeria within the last eight months to N238.7 trillion marking its highest record so far since the creation of the e-Payment method.　　Judging from the previous months record, it could be said that the NIBSS transactions rose by 13.3% compared to the N29.3 trillion reached in July 2022.　　On a year-over-year basis, the e-payments transactions rose by 50% compared to the N22.1 trillion recorded in August 2021.　　Following the CBN remarks, the unprecedented surge in the e-payments transactions recorded in the completed month shows that Nigerians are currently embracing the cashless policy massively. This will further provide a fertile ground for the use of the eNaira to take strong roots within the country.　　Added to this, the volume of the NIP transactions increased to 448 million in August marking a 10.6% increase compared to the 405 million witnessed during July.　　Nevertheless, the yearly

2022-09-13Deep Dive

Bitcoin Drops to a Five-Month Low of $39,650, Causing Crypto Traders to Sell $323 Million Assets

Due to bitcoins devaluation as a popular currency during the previous 24 hours, across 103,839 traders have had their accounts frozen. Liquidation value reached $329.63 million, of which $118.04 million was tied to positions in the Bitcoin market. 　　The greatest single liquidation demand, worth $5.95 million, was placed on Bitmex. 　　Approximately $90.40 million worth of bitcoin was liquidated during the course of the previous 12 hours, and $2.20 million was liquidated over the course of the previous four hours, according to Coinglass data. Because of this years higher than usual inflation, the U.S. The Federal Reserve stated that it is highly likely to raise interest rates in March.　　　　However, the scenario for bitcoin miners recently was not promising. For example, Kazakhstan-based miners are presently undergoing an unparalleled state of ambiguity as a result of political factors. As protest marches against rising fuel prices broke out in western Kazakhstan, the nations quickly expanding cryptocurrency mining sector was impacted by a statewide internet blackout. 　　A decline was also observed in Ethereum, which touched 2928.63 on Monday morning after hovering above $4,000 for the majority of December 2021.　　　　Trading contracts involving ether (ETH) were closed out for $89 million. Bitcoin was selling at $41,946.45 intraday,

2022-09-13Deep Dive

Ethereum's Speculative Activity Increases as the Merge Approaches

Put options indicate selling, whilst call options indicate buying. The heavily hyped merge event scheduled for September 15 has prompted purchasing pressure to outweigh selling, as evidenced by the call options being displayed on the ETH network. 　　Despite being difficult for a few years, the merge is expected to be the largest software upgrade in the Ethereum ecosystem since it will shift the protocol from proof-of-work (PoW) to proof-of-stake (PoS). 　　Consequently, a number of experts and institutions think that this development may accelerate Ethereums efforts to become a deflationary asset. 　　For instance, the merger will reduce global Ether issuance by 4.2% annually, which would be deflationary, according to recent analysis from the American multinational investment firm Citigroup or Citi, as reported by Blockchain.News. 　　The number of addresses holding more than 100 ETH has reached an 18-month high, and Ethereum address activity has been hitting new heights. During intraday trade, ETH climbed by 6.7% over the previous 24 hours to reach $1,622, according to CoinMarketCap. It will be interesting to see how the second-largest cryptocurrency develops following the Bellatrix update, which has already started the process for the integration.　　As a reminder, WikiBit is ready to help you search the qualifications and

2022-09-12Deep Dive

Crypto advertising are illegal on F1 tracks in Singapore.

The Wall Street Journal reports that the Monetary Authority of Singapore (MAS), Singapores financial watchdog, informed F1 organizers that it would forbid Crypto.com advertisements from showing on the course.　　The banking system of Singapore is known as the Monetary Authority of Singapore (MAS). The MASs objective is to encourage solid and forward-thinking financial institutions as well as sustainable, non-inflationary economic growth. In order to implement Project Ubin, a central bank digital currency (CBDC) project, the MAS used blockchain technology. 　　For single-seater open-wheel formula racing cars, F1 is the highest level of worldwide competition. To sponsor Formula One, cryptocurrency exchange Crypto.com has paid big bucks. 　　80 percent of the F1 teams in 2022 have at least one cryptocurrency sponsor. 　　Singapore will host the seventeenth race of the 2022 season from September 30 to October 2.　　Although the on-track brand on its own is more specifically targeted at Singaporeans, the regulator noted that Crypto.com ads might appear on teams and apparel but were not allowed to sell cryptocurrency-related ads on the track directly to the general public. 　　The first cryptocurrency platform to collaborate with an F1 team, Aston Martin, is Crypto.com. Prior to the unveiling of the 2021 F1 car from British automaker Aston

2022-09-12Deep Dive

Top 2 Alternative Coins to Keep an Eye on This Week

The overall market value of virtual assets is currently up 0.96% to $1.06 trillion. Controversy surrounding whether this market value will sink below the $1 trillion level, however the underlisted three tokens should be observed as the Ethereum platform shifts from Proof-of-Work (PoW) to Proof-of-Stake (PoS) mode.　　CARDANO 　　If Ethereums The Merge is a triumph, Cardano will indeed be linked to several other cryptocurrencies in the upcoming week. It is among the oldest and has fewer stable ecosystems than Ethereum, but it is not the sole rival blockchain technology that will be kept under the spotlight. 　　Investors will add Cardano to their radar once Ethereums PoS upgrade becomes operational because it has experienced a reasonably strong growth run over the previous week. At the time of writing, it was up 0.35% and trading at $0.5125.　　ETHEREUM　　Currently selling at $1,740.40, Ethereum has risen 1.73% in price during the last 24 hours, according data from CoinMarketCap. The price of Ethereum is much above its worst point for the year, which is at $896.11, despite the fact that it is now trading below its monthly high of $2,022.79 at the time of writing. 　　In the current crypto economy, Ethereum is a key player. The PoS

2022-09-12Deep Dive

Late Queen Elizabeth II Sparks Influx of Meme Coins and NFTs

The death of Elizabeth II, Queen of the United Kingdom and Commonwealth countries, on Thursday hit Britain hard, as the pound fell, inflation rose, and a new prime minister was elected.　　Despite this, crypto degens continue to create NFT pictures, caricatures, artwork, and meme coins of the late king.　　Over the last 24 hours, more than 40 crypto coins have appeared on decentralized exchanges on the BNB Smart Chain (BSC) and Ethereum, with names like “RIP Queen Elizabeth,” “Queen Elizabeth Inu,” “God Save The Queen,” “Queen Doge,” “Elizabeth II,” and “London Bridge Is Down.”　　The “Rise Of The King” token, named after the Queens successor King Charles, has risen about 2,000% since its inception on Friday and is presently trending on Dex Screener, which maps prominent digital assets on Ethereum-powered Uniswap.　　Over the last 24 hours, the Elizabeth token has witnessed $6.1 million in transaction volume on BSC-based PancakeSwap.　　The majority of the projects have negligible liquidity, which may imply the possibility of short-term pump and dumps – thus would-be traders should exercise cautious.　　NFT communities pay respects — in their own way　　The RIP Queen Elizabeth II “memorial” collection debuted on OpenSea with 522 items and has had the highest activity among Queen-related NFTs on the

2022-09-12Deep Dive

The Flippening: Will Ether Flip Bitcoin in the Next Year?

For years, supporters of Ethereum have yearned for “The Flippening,” the hypothetical (as of today) time when ether surpasses bitcoins market valuation.　　When else than during Ethereums Merge？ It is one of the most important improvements in the history of cryptocurrencies since it replaces the energy-intensive, proof-of-work-based consensus with a proof-of-stake system.　　In six days, Ethereums Beacon Chain and its established mainnet are anticipated to merge.　　But whether its sufficient for ether to supplant bitcoin is a different matter. Given that both equities and cryptoassets have fallen by around 70% from their respective high in November, bullish sentiment would suggest that June is the bottom for both.　　At slightly under $368 billion in market value, Bitcoin, which is currently trading at $19,000, accounts for 39% of the whole market for digital assets.　　Ether trades for $1,600, and its nominal worth, at $196.4 billion, or little over one-fifth of the total market capitalization of all cryptocurrencies, is slightly more than half that of bitcoin.　　Back of the napkin calculations reveal If ether reaches about $3,050, The Flippening would happen. However, this is only possible in the extremely unusual scenario that bitcoins price doesnt change.　　“The flippening is merely a symbolic triumph for ETH maximalists, and may not be

2022-09-12Deep Dive

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