Crypto Guides, Knowledge & Insights

Second-Largest Stablecoin USDC Transitions to the Stellar Blockchain

The Stellar Development Foundation (SDF) and Circle have revealed that the US dollar coin (USDC) is live on the Stellar network.　　Circle, the principal financial technology firm behind USDC development, is often cited as a regulatory-friendly organization. In a Tuesday blog post, the SDF explained that users could access the USDC on Stellars decentralized exchange and five Stellar-integrated wallets.　　USDC can be traded with six stablecoin pairs across the whole of Stellars ecosystem of 9,000 assets. As for developers, they can accept payments at scale.　　They can also issue programmable payouts, build marketplaces, and later on, receive a yield on top of their balance through a special free API service provided by Circle.　　Credit Card Giant Accelerated the Launch of USDC　　The SDF and the Centre Consortium announced Stellar as an official chain of USDC in October 2020. This should reportedly lessen the dependence of the stablecoin on the Ethereum blockchain.　　The number of USDC tokens in circulation has doubled since credit card company Visa partnered with Circle to integrate USDC into its payment network of 60 million merchants.　　Notably, over the last year, the market capitalization of USDC has surged over 1,000%. This is a more than a ten-fold rise. Meanwhile, the total number of operations

2021-02-03Deep Dive

Circle’s USDC Stablecoin Market Cap Grows 50% Year to Date

The total market cap of USDC currently in circulation has made a record significant increase since the beginning of 2021.　　Data from market monitor Skew has shown that the market capitalization for USDC has significantly risen by 100%. Results also reflected a steady ascent since the beginning of August 2020.　　However, this steady growth accelerated at the beginning of 2021. This new momentum saw the market cap of USDC rise from over $3 billion to about $6 billion in January alone. However, there may be some inconsistency in the data. According to CoinGecko, USDCs market cap already stood at around $4 billion on Jan 1.　　USDC Shows Strong Growth　　Stablecoins like USDC and DAI have lately been positioning themselves with a growing market share. BUSD and MKR have also seen sginificant growth, each holding a market cap of $1.5 billion, This leaves the smaller stablecoins like GUSD, HUSD, TUSD, and PAX to compete for the remaining share.　　Data from CryptoQuant reinforces this narrative and shows that stablecoin holdings on exchanges are making simultaneous increases. Its often inferred that a spike in the inflow of stablecoins like USDC will cause an uptick in the price of Bitcoin and other major cryptocurrencies.　　Although USDC has proved a formidable

2021-02-02Deep Dive

XRP Records Highest Social Volume Gains Since 2018

Regardless of the high-profile SEC and class action lawsuits that have been thrown at Ripple Labs recently, its native XRP currency has continued to push forward.　　The traction seen on social media platforms has begun to record new highs as XRP trade volume surpasses even Bitcoins market.　　XRP Marches Forward　　XRP has made a significant recovery from the price drop that happened within the last few weeks. Statistics from data aggregator, Santiment, reveals that the price surge seen with XRP coincides with massive gains in social media engagements that havent been seen since 2018.　　The social volume metric records the number of mentions of a digital currency across different social media platforms. This can help indicate trending developments and increased investor engagement.　　On the weekly time frame, the spike seen on XRP towers far above previous records. Social volume records from Jan. 30, 2021, show that Ripples engagement level went as high as 1,350 mentions at the peak of the frenzy. According to Santiment, “This gain in interest was the highest since Sep. 21, 2018, when $XRP surged from $0.32 to $0.77 in a day.”　　XRP Social Mentions: Santiment　　Similarly, other metrics such as the number of active addresses and volume have accompanied these raging figures. The

2021-02-02Deep Dive

Publicly-Traded Kronos Accepts Dogecoin as Payment Method

Dogecoin might not be the most valuable cryptocurrency. Or even the most recognized. But that hasnt stopped it from growing in popularity.　　Doge will now become a payment option for a publicly-traded company. In a Feb 1 announcement by Kronos Advanced Technologies, the company said it would be accepting the Shiba Inu inspired meme coin as a form of payment.　　The company confirmed on Twitter that it would be accepting DOGE as payment for air purifiers and PPE supplies.　　Dogecoin Continues to Push Adoption　　The news comes as the meme coin experiences one of its busiest weeks in trading. The veteran crypto experienced a surge in price which has been linked to the Redditor group Wall Street Bets.　　DOGE spiked 250% in price following the success of the GameStop (GME) price surge. It essentially pulled a similar move to the stock, which saw massive growth over the past two weeks.　　Dogecoin soured to a staggering $0.08 days later. The all-time high for DOGE means the cryptocurrency saw a 800% move within two days of trading. The surge led stockbroker Robinhood to suspend trading of the cryptocurrency, citing overwhelming market conditions.　　Even though the worlds richest man (Elon Musk) has previously mentioned the project, other celebrities have also

2021-02-02Deep Dive

After $1 billion year, GSR looks to expand footprint in bespoke crypto options

After a landmark year for the digital asset derivatives space, one market-making firm is expanding its suite of bespoke options.　　GSR Trading—one of the longest operating liquidity providers in the space—told The Block that it is now offering bespoke options in Filecoin, Polkadot, and Algorand.　　Unlike vanilla options that trade on an exchange like Deribits order-book, GSRs bespoke options are custom-made for larger investors in the market, with GSR acting as the counter-party.　　The development of such structured products has taken place behind the scenes amid the growth of listed options markets run by the likes of CME Group and Deribit. At last check, the aggregate open interest across bitcoin options markets stood at $5.8 billion.　　Such a development speaks to the increased risk-management needs for market participants. GSR reported that it traded more than $1 billion worth of customer bitcoin and other crypto options in 2020.　　“After exponential growth for our bespoke options in 2020, we are excited to facilitate the growth of FIL, DOT and ALGO options markets in 2021, as there is already substantial interest, along with many others,” GSR co-founder and president Richard Rosenblum told The Block in a comment.　　In an overview of the firms 2020 activity, GSR said that project

2021-02-02Deep Dive

Kraken Introduces Spot Prices to DeFi Apps With New Chainlink Node

Kraken, the fourth-largest cryptocurrency exchange in terms of trading volume, will make its spot price data available to decentralized finance(DeFi) applications and developers.　　Kraken announced today that it already has its Chainlink node which can be used to send Oracle data to Ethereum and other blockchains.　　Improving Blockchain Security　　The node will allow exchanges to send oracle data to any blockchain moving forward. Users can use Chainlinks signature function to provide proof of data origin for security reasons.　　Kraken decided to launch the Chainlink node after a recent report published by Kraken Intelligence on price manipulation and other risks to the DeFi market. Chainlink significantly extends smart contracts capabilities by providing access to real data, events, payments and more without compromising the security and reliability of blockchain technology.　　The exchange said issuing spot prices via Oracle Rates is an important step towards increasing transparency and building trust in the digital asset industry. Oracle Rates data enhances dApps, derivative contracts, stablecoins, cross-border payments, and other financial protocols.　　Chainlink is the most widely used blockchain oracle, and Kraken says an in-depth audit process and asset allocation records were a factor in the decision to start a node.　　Capturing Growing UK, Australia Markets　　The cryptocurrency exchange Kraken added more than double

2021-02-02Deep Dive

National Digital Currencies Primed to ‘Flop’, Say Researchers

In brief　　Many countries are researching and experimenting with central bank digital currencies.　　Economists Peter Bofinger and Thomas Hass argue that CBDCs may fail as a medium of exchange because of competition with private banks.　　However, they say, CBDCs could succeed as a store of value for “firms and large investors.”　　China and the Bahamas are already piloting central bank digital currencies—digital versions of their national currencies. The European Central Bank is surveying the public about a digital euro. And most countries central banks are actively researching using digital currencies for payments.　　Maybe they should just stop, say a pair of researchers, who argue in a paper released today the whole enterprise of creating substitutes for digital cash is at risk of failing because it lacks an “obvious justification.”　　Writing for European policy analysis publication VoxEU, Peter Bofinger and Thomas Hass of the Economics department at University of Wuerzburg in Germany argue that central banks have been too focused on CBDCs as a medium of exchange, when private banks already offer benefits such as deposit insurance and a wide variety of products.　　Instead of CBDCs that act as a medium of exchange, they argue for supranational digital currencies that act as a store of value in

2021-02-02Deep Dive

Ireland Central Bank governor says Bitcoin investors are going to lose ‘all their money’

Bitcoin investors be wary　　A European Central Bank governing council member said in a conference over the weekend that cryptocurrency investors were likely to head towards zero, as per a report on Bloomberg.　　Gabriel Makhlouf, the ECB governing council member, said his comments came on the back of the UK government‘s recent advisory on Bitcoin and other crypto-assets. “As the UK authority said a few weeks ago, if people want to invest in bitcoin, they have to be prepared to lose all their money – that’s certainly my view,” he said in the interview.　　Makhlouf has served as the governor of the Central Bank of Ireland since 2019. He was previously Secretary to the New Zealand Treasury and has worked on macroeconomic structures, monetary policies, and economic outlooks.　　But hes not upbeat about the Bitcoin space. On Friday, Makhlouf said that central bank administrators should be required to closely monitor developments in the cryptocurrency space, especially “in their regulatory role.”　　He said:　　“Im not sure why people invest in those sorts of assets, but they see them as assets clearly, and they see them as investments. Our role is to make sure that consumers are protected.”　　Such comments are a self-fulfilling prophecy. The government doesnt recognize the

2021-02-02Deep Dive

Senator to launch Financial Innovation Caucus to educate lawmakers on crypto

Senator Cynthia Lummis, the first senator in the history of the United States to own Bitcoin, has revealed plans to launch a Financial Innovation Caucus to educate her fellow senators on cryptocurrency and digital assets.　　Appearing on Anthony Pomplianos podcast on Feb. 2, Lummis announced her intention to establish the caucus, stating:　　“We hope to use it as a springboard to educate members of the U.S. Senate and their staff about Bitcoin specifically, but about other opportunities for cryptocurrency and financial innovation and blockchain.”　　Lummis stated the caucus will first work to fight the false narrative about digital assets and crypto being used for money laundering, noting that research from blockchain forensics firm Chainalysis indicates “cryptocurrency-related crime is smaller than criminal activity with cash.”　　Lummis noted she recently spoke with treasury secretary Janet Yellen — whose recent comments regarding the use of crypto in illicit financing caused concerns regarding an incoming regulatory crackdown to reverberate across the crypto-sphere.　　Lummis sought to quell the crypto communitys concerns about Yellen, describing the treasury secretary as having “an open mind” about crypto. However, the senator stated: “Its going to take a lot of work to get to where we can have an open dialogue that is free from

2021-02-02Deep Dive

CryptoQuant CEO says Coinbase Bitcoin outflows are a ‘bullish signal’

The CEO of CryptoQuant says a recent 15,200 BTC outflow at Coinbase is a sign that institutions are accumulating for the next Bitcoin bull break.　　Recent Bitcoin (BTC) outflows from Coinbase are reminiscent of the “proof-of-keys” days and could be a sign of a bullish future, according to CryptoQuant CEO Ki Young Ju.　　Data from the cryptocurrency analysis firm shows that more than 15,200 BTC, currently worth over $515 million, were withdrawn from Coinbase on Jan. 31.　　According to Ki Young Ju, the withdrawal “went to custody wallets that only have in-going transactions,” and was likely an “OTC deal from institutional investors” based on several identifiers.　　He also pointed to the fact that the split of a 15,000 BTC wallet into wallets containing 1,000-5,000 BTC increases security costs. Furthermore, most of the internal transfers are done with round amounts, like 1,000 to 5,000 Bitcoin, while this transfer included odd groupings of 1,265, 2,391, and 1,957 BTC.　　As to why Coinbase outflows are a bullish sign for the top cryptocurrency, Ki Young Ju linked to a previous tweet from Dec. 18 which states that “if Coinbase moves a significant amount of Bitcoins to other cold wallets, it indicates OTC deals” which are non-exchange transactions.　　He said:　　“Since the

2021-02-02Deep Dive

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