ETH2.0 will be officially launched, Polkadot developers will increase significantly, DEX trading volume will drop by 70%
The OKEx Intelligence Bureau Industry Weekly Report will take you to quickly review industry trends and clarify industry trends.
Table of contents:
Market overview
cryptocurrency market
Polkadot ecology
Table of contents:
industry voice
cryptocurrency market
Market overview
Polkadot ecology
Industry Empowerment
1. Cryptocurrency market
Market overview
According to CoinGecko data, as of 14:00 on October 23, 2020, the total market value of the cryptocurrency market was 400.2 billion US dollars, an increase of 10.5% in the past 7 days. The market panic and greed index is 74, and the grade is greedy; the USDT premium rate is -1.435836%, and the average OTC price is ¥6.59.
According to OKEx spot data, as of 14:00 on October 23, BTC temporarily reported $12907.4, an increase of 13.9% on the 7th, and OKB temporarily reported $4.594, a decrease of 10% on the 7th. The long-to-short position ratio of the OKEx BTC contract is 0.79, and the short side is dominant in the market; the total contract position is 986 million USDT.
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1. Cryptocurrency market
1. Data: Grayscale increased its assets under management by US$300 million in one day, and US$1 billion this week
According to official sources, as of October 22, the total asset management scale of Grayscale reached 7.3 billion US dollars. The figure was up $1 billion from the $6.3 billion reported on Oct. 15. The Bitcoin Trust (GBTC) traded at $14.63 per share, up 2.31% from the previous day; the Ethereum Trust (ETHE) traded at $67 per share, up 16.10% from the previous day.
[Interpretation] Grayscale’s asset management scale soared by US$1 billion in a week, and the transaction prices of Bitcoin and Ethereum trust funds rose. The main reason is that the price of mainstream currencies in the encryption market has soared this week. Recently, the payment giant Paypal announced that it will provide cryptocurrency payments from 2021, and mainstream currencies such as Bitcoin have risen day by day, making Grayscale increase its asset management scale by US$300 million in one day.
2. ETH 2.0 project leader: Genesis block is expected to be launched in November
According to news from Trust Nodes on October 22, Danny Ryan (Danny Ryan), the head of the Ethereum 2.0 project, said that the Ethereum 2.0 deposit contract is imminent. Danny Ryan suggested that nodes continue to run the Medalla testnet. At the same time, he said, a blocker is deciding on a "MIN_GENESIS_TIME," which is the date when the genesis block cannot be rolled out. If the minimum deposit requirement of 500,000 ETH is met, then the genesis block can start once the time of the genesis block is met, and it is unclear if there are any other significant deterrents. But either way, in less than two weeks, the Genesis block is expected to launch in November.
[Interpretation] On October 13, as the last "rehearsal" before the creation of Ethereum 2.0, the Zinken test network was successfully released, and the first block was created in the new chain. After the "rehearsal" is successful, the Ethereum client team is completing the review and making final preparations for the launch of the mainnet. The launch of the Genesis block will mean the official opening of the Ethereum 2.0 era. ETH was also stimulated by the news, breaking through $420.
According to Reuters news on October 21, the payment giant PayPal announced that in the next few weeks, U.S. account holders will be able to buy, sell and hold cryptocurrencies in their PayPal wallets. Starting in early 2021, the company's users will also be able to use cryptocurrencies to shop at 26 million merchants on its network, the company said in a statement. PayPal CEO Dan Schulman said in an interview that PayPal hopes the service will encourage global use of virtual currencies and prepare its network for new digital currencies that may be developed by central banks and corporations.
[Interpretation] PayPal is a payment company in the United States, located in San Jose, California, with 346 million active accounts worldwide (including more than 26 million merchant accounts), and processed $222 billion in payments in the second quarter of this year. The launch of cryptocurrency trading services is of great significance, not only will it increase awareness and adoption of cryptocurrencies, but will also affect the size and coverage of the crypto market in the future.
4. Data: 40 encryption and blockchain bills have been introduced in the U.S. Congress between 2019 and 2020
According to Forbes on October 18, the 116th Congress of the United States was held on January 3, 2019 and will end on January 3, 2021. During this period, Congress has proposed 40 items on cryptocurrency and blockchain issues. bill. Of the 40 proposed bills, 11 have been passed by the House of Representatives and two have become law, one of which requires Congress to be notified of how cryptocurrencies affect economic sanctions, and the other requires a review of how the Department of Defense uses blockchain technology. briefing.
[Interpretation] It can be seen that the United States is paying more and more attention to cryptocurrencies and blockchains at the legal level. Among the 40 bills, the types of legislation include four categories, "Use of Cryptocurrencies by Terrorists, Money Launderers, Human and Sex Traffickers" accounted for 30%, "Regulatory Transparency for Encryption and Blockchain Companies" accounted for 40%, "Blockchain "Use of blockchain technology in government and business" accounted for 22%, and "digital dollar" legislation accounted for 8%.
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2. Polkadot Ecology
1. Report: Polkadot developer activity has increased significantly in the past year
According to NewsBTC news on October 19, a report released by cryptocurrency venture capital firm Outlier Ventures showed that in the past year, in the blockchain field, the activity of Polkadot developers has increased significantly, with an increase of 44%. Business activity has dropped significantly, with a drop of 86%, followed by BCH with a 63% drop, and Tron developer activity with a 51% drop.
[Interpretation] The number of developers and the number of projects are growing rapidly at the same time. This is the current development status of the Polkadot ecosystem. The following picture best illustrates the problem.
2. Polkadot launched a reward mechanism to improve the efficiency of treasury fund utilization
On the evening of October 16, PolkaWorld officially issued a document announcing the launch of the Treasury Bounty mechanism to improve the efficiency of treasury fund utilization. This scheme is implemented by delegating the curation of proposals to a curator called a curator. The mechanism has now been added to the treasury module and is already available to KSM and DOT holders. The program has a two-step approval mechanism.
First, the council approves the bounty distribution; second, the council decides that a steward will take over the task: once the steward accepts the position, they make a deposit. Deposits can be used to punish managers if their actions are malicious, but managers will receive the deposit along with a portion of the bounty as a reward if they successfully complete the task of getting the proposer to complete the bounty work.
The official pointed out that the Polkadot and Kusama networks launched a new bonus extension program (Bounty Extension) to support managers to automatically allocate funds to projects that bring value. Since everything happens on the chain, it will be able to effectively manage treasury funds, promote the development of the Polkadot ecosystem, and give more autonomy to those who manage its development. Officials say the new extension procedure is a budgetary mechanism designed to help councils increase the size of their approval tasks.
[Interpretation] The reward and punishment mechanism of Polkadot ecology is clear, which fundamentally curbs evil motives. In the treasury reward mechanism, the fund manager (curator) is responsible for the entire project. Once the project cannot be completed or does nothing, the funds pledged by the curator in the treasury will be confiscated. In other words, you can be given funding support for development, but you cannot abuse it.
On October 19, Polkadot announced on its official blog that the Zinc Framework developed by Matter Labs, an Ethereum layer-2 expansion solution development team, will provide a programming environment for Polkadot and the implementation of zero-knowledge proofs based on the Substrate chain. According to previous news, in June this year, Matter Labs deployed zkSync, a Layer 2 expansion solution based on ZK Rollup, on the Ethereum mainnet.
[Interpretation] Polkadot and Ethereum are not a competitive relationship, but a win-win relationship. In fact, many important members of the Polkadot ecosystem come from Ethereum, such as Polkadot founder Gavin Wood, Parity CEO Dr. Jutta Steiner, and Polkadot ecologically active science writer Bruno Škvorc, etc., all from Ethereum ecology.
4. Polkadot’s Layer 2 expansion protocol Plasm Network has deployed the main network
Plasm Network, the Polkadot layer-2 expansion protocol, tweeted that it now supports EVM, Ethereum RPC and ECDSA. Furthermore, the mainnet has been successfully deployed.
[Interpretation] Plasm Network is a scalable dApps platform based on Substrate. It is one of many projects in the Polkadot ecosystem. It may become a parallel chain in the future. Developers can build any application on the Plasm network without having to consider scalability sexual issues. In other words, each parachain is an independent blockchain on which developers can build their own applications.secondary title
3. DeFi dynamics
1. OKLink: The trading volume of Uniswap has dropped by about 75% from the high in early September
According to data from OKLink, Uniswap’s trading volume has shown a gradual decline since September 1. The trading volume of Uniswap continued to fall after reaching a historical high of 950 million US dollars on September 1, and the average daily trading volume in the past seven days was about 237 million US dollars. During the same period, the lock-up volume of Uniswap still maintained growth. The current lock-up volume of Uniswap is about 3 billion U.S. dollars, an increase of 53.8% from the 1.95 billion U.S. dollars on September 1. The total amount of Ethereum and WBTC locked in Uniswap has reached 1.75 billion U.S. dollars, occupying the top two positions in Uniswap's locked positions.
[Interpretation] The DeFi boom has passed, and Uniswap's trading volume has declined. For DeFi, this is just the beginning, not the end.
2. In the third quarter, the outstanding debt of Aave and MakerDAO increased by 1309% and 529% respectively
According to the Messari data chart, as of the end of the third quarter, MakerDAO’s outstanding debt increased from US$140 million in the second quarter to US$850 million, an increase of 529%. And Aave is even more eye-catching, with outstanding debts increasing from $20 million to $250 million, an increase of 1309%. And these two platforms do not have any incentives for liquidity mining. Notably, in the third quarter, Aave's yield increased by 197.4%.
[Interpretation] Every penny lent from MakerDAO is a debt. The larger the outstanding debt, the stronger the foundation of this application. This is the case in the DeFi world, and the same is true in the CeFi world. We often see a giant real estate company with trillions in debt. As long as the cash flow is healthy, it can continue to operate.
[Interpretation] BTC locked in various forms in the DeFi ecosystem has reached 1.5 billion US dollars. This is actually DeFi's "blood transfusion" for Ethereum. This blood transfusion has achieved three purposes, namely value capture, traffic capture and credit endorsement.
4. Industry voice
4. Research shows that 86% of financial companies are already using DeFi
According to a report by Cryptopolitan on October 21, Crypto.com and BCG Platinion conducted a study involving more than 400 financial organizations from banking, insurance, trading and other industries, aiming to study the possibility and difficulty of DeFi adoption and use . The research results show that financial institutions are more interested in DeFi. 86% of the respondents revealed that they are already using cryptocurrency technology or are considering it, but 70% of the respondents have concerns about financial security and compliance issues .
[Interpretation] In addition, this study by Crypto.com and BCG Platinion also found that people are increasingly interested in the DeFi field, with 86% of respondents revealing that they are already implementing or considering implementing DeFi technology to improve their services. Kris Marszalek, co-founder and CEO of Crypto.com, said that research shows that the adoption of DeFi is not limited to the blockchain industry; traditional financial institutions of all sizes no longer see DeFi as a competitive threat, but as a A valuable tool for providing more centralized and efficient financial services.
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4. Industry voice
1. OKEx CEO: All the news of BTC transfers before the official announcement of the opening of withdrawals are rumorsOKEx CEO Jay posted on Weibo on October 20, saying: After the 16th, the transfer record on the OKEx BTC chain is 0, and the balance has steadily increased. Before the official announcement of the opening of withdrawals, such BTC transfer news Jay will no longer refute the rumors alone, they are all rumors!
[Interpretation] All unofficial news are rumors, please be sure to screen them out.
2. French Economy Minister Denounces Illegal Use of Cryptocurrencies
On October 19, French Economy Minister Bruno Le Maire tweeted that in addition to being used for money laundering, some cryptocurrencies are also related to the purchase of drugs and weapons. However, he wrote in a tweet that he does not question the reliability and traceability of all blockchain technology.
[Interpretation] Condemn all money laundering, everyone is responsible for maintaining national financial security!
According to CoinDesk on October 20, a lawyer from Schnapper-Casteras PLLC law firm and a digital currency project consultant jointly issued a document saying that other countries that adopted CBDC earlier may benefit from the first-mover advantage. In the US, going too slowly and maintaining the status quo risks depriving the US of important new fiscal and monetary tools. In a worst-case scenario, the U.S. will be stuck with the best of both worlds for years to come: neither substantial progress in the nation's financial infrastructure nor greater regulatory transparency or open standards to private providers. The U.S. faces an urgent decision about whether to join other countries and begin the public, urgent development of a digital currency that would complement paper money. While there may be tough decisions to make, nothing is worse than waiting and falling behind.
[Interpretation] It is not that the United States is backward. At least in the next 20 years, no one can use "backward" to describe the development of the United States in the field of science and technology. The real reason is that China has been fully researching and developing CBDC since 2013, and only then has today's Shenzhen pilot. Therefore, it is not that the United States is lagging behind, but that China is developing too fast.
4. Analyst Willy Woo: BTC will soon decouple from stocks due to adoption growth
Currently, 2.4% of the world's population are bitcoin hoarders, according to crypto market analyst Willy Woo. We are now entering the early adopter stage. According to the curve, user adoption will grow exponentially. This is why BTC will be decoupled from stocks, and it will happen soon.
[Interpretation] There are about 7.5 billion people in the world in 2020, and 18 million people account for 2.4% of the population. According to the latest data from the encryption analysis website Glassnode, the number of Bitcoin HODLers is increasing. The number of addresses holding more than 1,000 bitcoins has reached 2,220, the number of addresses holding more than 100 bitcoins is 16,159, and the number of addresses holding more than 0.1 bitcoins is 3,160,057.
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5. Industrial Empowerment
1. Liu He: Blockchain and other technologies are profoundly changing the future financial ecology
According to news from the Financial Associated Press on October 21, Liu He, Vice Premier of the State Council, delivered a keynote speech at the opening ceremony of the 2020 Financial Street Forum Annual Conference. The following works. The first is to adhere to a prudent monetary policy that is flexible and moderate, the second is to vigorously develop a multi-level capital market, the third is to build a multi-level banking institution system, the fourth is to focus on the role of financial technology, and the fifth is to continue to promote comprehensive opening up. He said that big data, cloud computing, blockchain, artificial intelligence and other technologies are profoundly changing the future financial ecology, and it is necessary to seek advantages and avoid disadvantages to promote the healthy development of financial technology.
2. Mu Changchun, the central bank: The number of red envelope recipients in the Shenzhen digital renminbi pilot accounted for 95.15% of the total lottery winners
