Industry Weekly | Goldman Sachs Launches New Bitcoin Derivatives, Institutions Hold Nearly $14 Billion in Ethereum

Ouyi OKEx Information Bureau Industry Weekly will take you to quickly review industry trends and clarify industry trends.

Table of contents:

Market overview

Institution and company dynamics

cryptocurrency market

Table of contents:

industry voice

Market overview

Institution and company dynamics

industry voice

1. Institutional and company dynamics

Market overview

According to CoinGecko data, as of 16:00 on May 7, 2021, the total market value of the cryptocurrency market was US$2,446.1 billion, an increase of 11.58% in the past 7 days. The USDT premium rate is 1.21%, and the average OTC price is ¥6.54. Market sentiment is at 64, with a rating of greed.

According to OKEx data, as of 16:00 on May 7, 2021, BTC temporarily reported at US$55,601.6, an increase of 3.6% in the past seven days, and OKB temporarily reported at US$32.605, an increase of 58.34% in the past seven days. The long-short position ratio of the OKEx BTC contract is 1.54, and the number of parties is dominant; the total position of the BTC contract is 2.254 billion US dollars, an increase of 3.78% from the same day last week.

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1. Institutional and company dynamics

1. The digital asset ETF launched by VanEck has been listed on London and Deutsche Stock Exchange

According to news from U.Today on May 6, the digital asset ETF launched by the investment management company VanEck has been listed on the London and Deutsche Stock Exchanges.

In previous news, VanEck launched a Digital Assets (Digital Assets) ETF to track the price and yield performance of the MVIS Global Digital Assets Stock Index as closely as possible. Nearly 30 companies working in the blockchain and cryptocurrency industry are included in the MVIS Global Digital Asset Stock Index.

[Interpretation] The fund will invest in companies that have at least 50% of their revenue from digital asset projects, or develop projects that may generate half of their revenue from the digital asset industry. The digital asset industry may include companies operating digital asset exchanges, payment gateways, mining operations, software services, equipment and technology. With the listing of more and more encrypted asset ETFs, it is possible to attract more funds into the encrypted field.

2. Goldman Sachs Launches New Bitcoin Derivatives to Wall Street Investors

Goldman Sachs is offering investors non-deliverable forward (NDF) services, a derivative product linked to the price of bitcoin that can be paid in cash, CoinDesk reported on May 7. The bank will use Cumberland DRW as its trading partner, buying and selling bitcoin futures on CME block trades to hedge against the digital currency's wild volatility. Max Minton, head of digital assets for Goldman Sachs Asia Pacific, said: "Institutional demand continues to grow significantly in this space, and being able to work with a partner like Cumberland will help us expand our product capabilities; Cryptocurrency product capabilities pave the way.”

[Interpretation] Customer interest and the rise in Bitcoin prices have changed the views of many traditional banks on encrypted assets. Goldman Sachs has continued to deploy Bitcoin-related businesses this year.

[Interpretation] The asset target of the fund inflow represents the investment trend of the investment fund.

2. Cryptocurrency market

4. Data: Institutional investment managers hold ETH worth $13.9 billion

According to Cointelegraph, the latest data from CoinShares shows that institutional investment managers bought $30.2 million worth of ETH last week, bringing the total value of their ETH holdings to $13.9 billion.

[Interpretation] ETH has become the new "darling" of institutional investors.

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2. Cryptocurrency market

1. The market value of Ethereum has surpassed all banks except JPMorgan Chase

Companiesmarketcap data shows that the Ethereum market capitalization (currently about $368 billion) is now higher than all banks in the world except JP Morgan Chase. JPMorgan Chase's market value is currently reported at 466.8 billion U.S. dollars, ranking first. Bank of America's market capitalization is now reported at $348.3 billion, ranking third.

[Interpretation] A new currency king is being born. It is generally believed that the market value of Ethereum in this round of bull market will most likely exceed that of Bitcoin. If this scene really happens, it will not only be as simple as surpassing a few banks, but More than Facebook, Apple.

2. OKLink: ETC's seven-day average computing power reached 15TH/s, a new high for the year

According to data from OKLink on May 6, the average computing power of the ETC network reached 15.01TH/s in the past week, and the network difficulty was 202.88T. The increases in the past 24 hours were 11.08% and 15.5%, respectively, both hitting new highs in the year.

The top three mining pools in the current ETC network computing power are etc.ethermine 9217 GH/s, accounting for 38.36%, Ethermine 8577 GH/s, accounting for 35.69% and BeePool 2458 GH/s, accounting for 10.24%.

[Interpretation] The miners have been frightened by "Ethereum is going to turn to PoS". How high the ETC price can rise shows how scared they are. Then the Ethereum mining machine market will be miserable in the future. Remember, don't go Pick up the throwing knife.

[Interpretation] This is the performance of miners optimistic about the future of encryption, but the problem is that miners are not selling, institutions are constantly recharging, and the future of BTC can be expected. But we still have to remember one thing, that is, "I am greedy when others are fearful, and I am fearful when others are greedy."

3. Polkadot/DeFi dynamics

4. Ethereum 2.0 successfully completed the PoS merger in the developer test network

According to TrustNodes, on May 3, Ethereum 2.0 clients Teku, Lighthouse, Nimbus, and Prysm, and Ethereum 1.0 clients Geth, Besu, and Nethermind successfully completed the PoS merger in the developer test network (devnet). The test lasted for one day, and the test network was called Steklo. Diederik Loerakker, developer of Ethereum 2.0, said that the test network is now in a rather unstable state, and it is more of a tool for developers to debug clients. We will be running more user-focused testnets in the coming weeks.

[Interpretation] Ethereum is making great strides towards PoS, and the market outlook is promising.

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3. Polkadot/DeFi dynamics

1. Polkadot released Polkadot v0.9.0 to deploy the parachain on Kusama

According to PolkaWorld news, in the early morning of May 6, Polkadot released a new version of Polkadot v0.9.0. This release includes client-side changes to allow parachains to function correctly. This means that when all nodes are successfully upgraded to this version, the parachain function will be officially deployed on the Kusama chain. At the same time, this version also integrates Beefy and MMR (Merkle Mountain Range) for the Polkadot-Ethereum bridge, as well as the Polkadot-Kusama bridge mentioned by Gavin (once connected, 1% of DOT can be transferred to Kusama network) and other cross-chain bridges.

[Interpretation] The Polkadot parachain auction will be launched soon, so wait and see.

2. More than 210,000 bitcoins are locked on other blockchains, equivalent to 1% of the BTC supply limit

According to Forbes on May 5, "Bitcoins at work," or Bitcoin's "total value locked" (a measure of the amount of BTC locked in DeFi), has surged in the past year. DEFIPULSE data shows that currently, more than 210,000 BTC (1% of the BTC supply cap) are locked in various forms on other blockchains such as Ethereum, worth more than $11.5 billion at current prices.

[Interpretation] DeFi is self-contained. It can generate wealth by itself, distribute income by itself, guarantee security by itself (the more BTC/ETH pledged, the safer it will be), and it can also repair itself. Take the revenue of top DeFi protocols as an example. According to news from The Block on May 4, top DeFi protocols generated $252 million in revenue for token holders in April. Among them, DEX protocol Uniswap generated $136.6 million. In comparison, Compound, SushiSwap, and Ave’s protocols generated $46.08 million, $35.23 million, and $24.72 million, respectively.

3. Federal Reserve paper: DeFi may help build a more transparent financial infrastructure

According to Cointelegraph, on May 5, a paper published by the Federal Reserve Bank of St. Louis in the United States delved into the expansion of DeFi and its role in Ethereum. The article believes: "DeFi may lead to a paradigm shift in the financial industry and may help to establish a more robust, open and transparent financial infrastructure."

[Interpretation] As the central bank of the global central bank, central banks all over the world need to learn from the Fed's inclusiveness and openness of "willing to accept new things".

[Interpretation] Uniswap won the throne of the king of DEX not by talking about it. This refined governance and improvement strategy will make DEX more and more useful.

4. Industry voice

5. Three institutions initiated a proposal to add new supply chain financial assets as collateral assets in MakerDAO

Centrifuge, PandaCredit and NAOS Finance submitted a community proposal (MIP6) for a new mortgage asset type in MakerDAO, hoping to add supply chain finance assets to MCD as real-world assets (RWA). PandaCredit uses Centrifuge's model and Tinlake protocol to initiate and manage Asset collateral, NAOS Finance provides funds for the TIN part from its liquidity pool. PandaCredit is a financial technology company and is the asset sponsor in this scheme; Centrifuge, a supply chain finance project, provides technology and framework for this scheme; NAOS Finance, a DeFi lending agreement, is an investor in TIN and is also the one that introduces other TIN investors into the liquidity pool. asset manager.

[Interpretation] DeFi is going mainstream, or has already gone mainstream.

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4. Industry voice

1. Billionaire Mark Cuban: ETH is fast becoming a deflationary asset

According to news from Decrypt on May 6, Dallas Mavericks owner and billionaire Mark Cuban said at the Ethereum Global Summit that ETH is rapidly becoming a deflationary asset, which is one of the reasons for the surge of ETH. I think there is no upper limit for the rise of ETH.

[Interpretation] I fully agree with Mark Cuban. After ETH becomes a deflationary asset, what the blockchain industry needs to focus on is when the market value of ETH will surpass BTC, and what changes will happen to the encryption industry, especially after the mining industry transforms into PoS , What kind of value undertaking should the huge amount of Ethereum mining industry seek.

2. Federal Reserve Kaplan: Global interest rates are falling because global growth prospects are declining

According to news from Jinshi, on May 5, Federal Reserve Kaplan stated that the primary determinant of global interest rates is the outlook for future economic growth. Slightly higher interest rates due to a more positive outlook for economic growth could be a good thing. The decline in global interest rates is due to lower global growth prospects.

[Interpretation] The decline in global growth is because the Internet dividend is coming to an end, and a new technological explosion is needed to stimulate productivity. Blockchain will be one of the key factors to optimize production relations and liberate productivity.

3. U.S. Treasury Secretary Yellen: The United States lacks an appropriate regulatory framework to deal with cryptocurrency issues