Top Institutions: Ethereum Will Surpass Bitcoin｜Snap Fingers Institute Weekly #02
Highlights of this issue:
Follow Medium @snapfingers for English version
Highlights of this issue:
The price of ETH returned to the level at the beginning of April, reviewing the views and logic of top institutions since April on "the value of Ethereum will exceed Bitcoin".
Messari Q2 Crypto Market Summary.
Curve's lock-up volume has risen to the first place, which is inseparable from the success of Convex. Here is an analysis article related to Convex.
No.1 Which institutions are bullish on Ethereum
The current price of Ethereum has dropped 50% from its peak and returned to the level at the beginning of April. It was from April that top institutions began to build the Ethereum narrative, expressing the view that "the value of Ethereum will exceed Bitcoin." The reports issued by large institutions are often highly related to the follow-up business layout. At the same time, their speeches will be disseminated and interpreted by the media to affect the market. Snap Fingers Weekly compiled important reports/articles published by top institutions since April:
-01
Goldman Sachs valued Ethereum in its April Global Encryption Report, which predicted that ETH could reach $150,000 by January 2023. According to Goldman Sachs, considering the
Real usage: DeFi and NFT;
User base: has reached 80% of the scale of Bitcoin;
Technology iteration speed: Layer 2 and PoS;
Ethereum is very likely to replace Bitcoin as the mainstream cryptocurrency.
Chinese source: Wall Street Journal
https://wallstreetcn.com/articles/3631012
Subsequent release information:
On June 15, Mathew McDermott, head of digital assets at Goldman Sachs, said that it plans to offer Ethereum options and futures trading in the coming months.
On July 7, Goldman Sachs once again mentioned in a report to clients that Ethereum is the blockchain with the highest "practical use potential". In the next few years, the total market value of ETH may exceed that of Bitcoin.
-02
Two analysts at JPMorgan Chase issued a report at the end of April, bullish on Ethereum and explained their logic. The report notes that both retail and institutional demand indicators are accelerating:
In terms of institutional adoption, the European Investment Bank (EIB) issued bonds using the Ethereum blockchain, and 4 Ethereum ETFs have launched.
Ethereum's own advantages: the EIP 1559 protocol may reduce the annual change of Ethereum circulation to 1-2%; Ethereum 2.0 will become more energy-efficient by the end of 2022; the sharp growth of NFT and stable coins has increased the use of ETH, while ETH dominates the DeFi ecosystem.
ETH is not affected by the macro economy of the entity, and it obtains value from the application ecology.
Source: Wall Street Journal
https://wallstreetcn.com/articles/3629841
On July 1, the CEO of JPMorgan Chase stated in a report that Ethereum will lead the $40 billion Staking industry (PoS revenue scale in 2025). Currently, the staking mechanism brings about $9 billion in revenue to the encryption industry every year, and after Ethereum turns to PoS, this figure may increase to $20 billion.
On July 1, the CEO of JPMorgan Chase stated in a report that Ethereum will lead the $40 billion Staking industry (PoS revenue scale in 2025). Currently, the staking mechanism brings about $9 billion in revenue to the encryption industry every year, and after Ethereum turns to PoS, this figure may increase to $20 billion.
Translation source: Public account Unitimes
-03
Arthur Hayes, founder of BitMEX, wrote "How to Valuate the Future of Ethereum" in April. Arthur estimates the value of the Ethereum network ecosystem by estimating the total fees charged to users by traditional financial services and the market share that Ethereum DeFi may grab from CeFi.
Data related to the scale of traditional financial income:
In 2020, taxes paid by users worldwide to these institutions totaled $2.68 trillion, which is 2% to 3% of global GDP.
In 2020, users paid $87.09 billion in audit fees to the Big Four accounting firms.
Assuming 0.5% of the transaction volume is transferred to the Ethereum ecosystem, the price of ETH will appreciate 10 times from the current level ($14 billion for 0.50% of CeFi revenue); assuming a transfer ratio of 0.1%, the price of ETH will double. Arthur said: Very sure that DeFi can take at least 0.50% of the transaction volume from CeFi.
Translation source: Official account chain catcher
https://mp.weixin.qq.com/s/67KBen8Q3M0iY9yja7a7jg
Follow-up articles:
On May 14th, BitMEX founder Arthur Hayes once again wrote "Will the market value of Ethereum surpass Bitcoin". The core logic of the article is that the market value of the companies behind the dollar-denominated products is higher than the underlying dollar amount (for example, the US dollar M0 is 5.8 trillion, and the total market value of FAANG is 6.36 trillion US dollars). Bitcoin is the foundation of the encryption pyramid, which is equivalent to M0. The market value of the economy based on Bitcoin will be larger than the market value of Bitcoin, and the largest economy is Ethereum.
Translation source: Official account chain catcher
https://mp.weixin.qq.com/s/V7WgRkI1lRalZ2fbH2YKZQ
-04
Articles published by other institutions and media
Bloomberg said in its June Encryption Outlook Report that the market value of Ethereum is expected to surpass that of Bitcoin. 10,000 Altcoins solidify the foundation of Ethereum, whose foundation and use cases are a strong complement to Bitcoin's store-of-value properties.
Translation source: Bitui
At the beginning of July, DragonFly, an encryption investment institution, adopted a combination of qualitative and quantitative valuation methods, and believed that the potential value of ETH was estimated at 3.7 to 4.7 trillion US dollars.
Translation source: Lianwen
Last week, the encrypted media Bankless published an article "ETH is the most capital-efficient asset in the world": ETH is the native asset of DeFi. When DeFi becomes more capital-efficient, ETH will become a more effective asset. The article reviews the history of DeFi's march toward efficiency, a process that is turning ETH into the best store of value in the DeFi ecosystem.
Translation source: public account Encryption Valley live
https://mp.weixin.qq.com/s/nLMRlf5IIEIAY20fCJAh1w
No.2 What happened to the cryptocurrency market in Q2
The "Q2 Cryptocurrency Report" released by Messari summarizes the important dynamics of major cryptocurrencies other than tokens in the second quarter.
The first is Bitcoin, and the summary includes:
Price trend;
The whole society’s attention to Bitcoin’s energy consumption triggered by Musk in May;
May U.S. macro market data and policies, and their impact on Bitcoin prices;
China's crackdown on bitcoin mining, and regulation of exchanges;
El Salvador becomes the first country in the world to adopt Bitcoin as legal tender;
Bitcoin transaction data: Derivatives data, liquidations caused by the 2 crashes on April 18 and May 19, transactions by big players and traders during the sell-off.
Then sort out the assets that performed well in Q2 and the assets that performed poorly:
Dogecoin (+325%), ETC (+268%), XRP (+12%) and ETH (+3%);
Bitcoin (-39%), Dash (-44%), Stellar (-31%) and Bitcoin SV (-30%).
Finally, it summarizes the regulatory actions, institutional adoption and high-profile transactions that occurred in Q2, which are very valuable information to understand the overall market conditions.
Translation source: Public account Unitimes
https://mp.weixin.qq.com/s/yibv-_xdeFdXINyL18ACXw
Other Q2 reports:
https://www.coindesk.com/research/reports/coindesk-quarterly-review-2021-q2
https://dappradar.com/blog/dapp-industry-report-q2-2021-overview
No.3 Curve-based protocol Convex
This week's project Convex is a DeFi protocol built on top of Curve, which aims to provide higher returns for liquidity providers (LP) and CRV stakers. According to Debank data, Curve is currently the AMM DEX with the highest lock-up volume, about $8.6 billion. This is not unrelated to the success of Convex. On June 21, the CRV lock-up volume on Convex Finance has reached 40 million.
Convex is a protocol with a similar positioning to Yearn. The two protocols compete to obtain as many CRVs as possible in order to lock CRV for veCRV, thereby winning the largest possible promotion multiple (meaning higher revenue) for storage users, which drives There has been a sudden and massive increase in CRV locked, with over 63% of the CRV supply currently out of circulation.
Messari's Convex research report introduces the principles of Convex, token economics, and comparison with Yearn.
Translation source: Official Account Babbitt Information
https://mp.weixin.qq.com/s/25pfec786XnPIy5Rs9oWgQ
No.1 Market Data
https://mp.weixin.qq.com/s/5-SWmgPXSNXGBvcCXCevKg
No.1 Market Data
#Bitcoin #Ethereum #Altcoin
Glassnode data: The current SSR indicator is at a low of 10.6.
SSR is the ratio of the market value of Bitcoin to the market value of stablecoins. The lower the value, the stronger the purchasing power of stablecoins to Bitcoin.
Bitcoin volatility is at its lowest level since November 2020. (7/7)
JPMorgan Chase once pointed out that volatility is a key indicator for institutional risk management to consider an asset, and the decline in Bitcoin volatility will attract more institutional investors to enter the market.
NewsBTC: From June 6 to July 6, more than 5 million new addresses were added to Ethereum, which directly led to an increase in demand for ETH.
Crypto analytics firm CryptoQuant: Ethereum reserves across all exchanges hit 2.5-year low.
CoinShares: Encrypted funds ended 4 consecutive weeks of outflows and turned into inflows for the first time, with a total of $63 million, and institutional investors are bullish again. (7/5)
Santiment: The ratio of the currency holdings of Chainlink’s top 10 giant whale addresses to the total supply has dropped to a new low (63.3%), which was 67.5% in January this year and about 69% in the fourth quarter of last year.
ADA overtook BTC to become the most-held cryptocurrency among eToro customers last quarter.
eToro is a multi-asset trading platform that has launched 22 tokens. The total number of registered users will exceed 14 million in 2020. It plans to conduct an IPO in Q2 of 2021 with a valuation of US$5 billion.
Lido Finance pledged 596,224 ETH in ETH 2, becoming the largest depositor of ETH2.0. (Governance token $LDO)
On May 6, Lido completed a financing of US$73 million, led by Paradigm.
#NFT
Reuters: In the first half of this year, NFT sales rose to US$2.5 billion, a nearly 20-fold increase from US$13.7 million in the same period last year.
The cumulative transaction volume of the top 5 projects in the NFT market is nearly 1.5 billion US dollars, and the top three are NBA Top Shot, CryptoPunks and Axie Infinity.
The NFT game Axie Infinity earned US$12.52 million in the past 7 days, exceeding the monthly income of US$12.22 million in June. (7/7)
#Exchange #ETF #Liquidity
The Osprey Bitcoin Trust (OBTC) is applying to become an SEC reporting company.
Grayscale Bitcoin Trust became the first cryptocurrency investment vehicle to report to the SEC last January. Becoming an SEC reporting company means that large compliance agency funds can be brought in, and liquidity will also be enhanced.
CNBC: FTX has become a new member of the Visa Fintech Fast Track card issuance plan. FTX has used the stable currency USDC to pay more than 50% of its employees' salaries.
No.2 Project progress
No.2 Project progress
#Ethereum #Expansion
The Ethereum London upgrade may be on August 4th, as suggested by Tim Beiko, the developer responsible for the Ethereum network upgrade, on GitHub.
Ethereum expansion program Polygon announced that it will integrate the Layer 0 expansion project bloXroute. DApps on Polygon can increase transaction speed by adding nodes to bloXroute's blockchain distribution network (BDN).
Uniswap launched an alpha version on Optimism, the second-layer scaling solution of Ethereum.
The stablecoin DAI contract has been deployed to the Ethereum scaling solution Optimism.
#New public chain
#New public chain
Avalanche is about to launch a new generation of cross-chain bridge "Avalanche Bridge", which will be nearly 10 times faster and nearly 5 times cheaper than the existing cross-chain bridge AEB.
#stablecoin
#stablecoin
The payment arm of Facebook's stablecoin Diem has launched a digital wallet and opened registration.
#DeFi
Aave founder: is testing the use of NFT as collateral for lending.
The DeFi fixed rate generation protocol 88mph has been launched on the test network and will be launched on the main network soon. (Token $MPH)
Notional Finance, a fixed-rate lending agreement, released the V2 version, which will be launched in September. (voucher token $fCash)
No.3 Large Company/Investment Fund/Traditional Finance
#listing #acquisition
Circle, the stablecoin USDC issuer, is about to go public through a SPAC with a valuation of $4.5 billion.
Robinhood submitted a prospectus to raise up to $100 million, and cryptocurrency-related revenue has grown significantly.
CoinShares will acquire Elwood's ETF business for $17 million.
#channel #service
BlockFi will launch its Bitcoin rewards credit card.
Visa plans to build out its crypto ecosystem to increase the usability of cryptocurrencies.
Digital payments provider Allied has partnered with NYDIG to integrate bitcoin services into its financial institution bill payment platform.
#asset management
#asset management
Israel Investment Fund Group: We have invested $2.3 billion in Bitcoin. (Officially promoted by Israel Investment Fund Group)
Marshall Wace, a large hedge fund firm with $55 billion in management, plans to invest in digital assets.
#Blockchain+
#Blockchain+
The world-renowned hotel chain Pavilions announced that it will accept Bitcoin payments.
#fundraising
Crypto fund Acrylic Ventures raises $55 million to invest in early-stage crypto projects.
The venture capital firm Borderless has launched a $10 million fund, which will be used for HNT staking and mining.
SkyBridge Capital's Ethereum fund has officially launched, with an investor committing $5.7 million.
No.4 Policy
#Supervision
Democratic Senator Warren set July 28 as the deadline for the US SEC to determine encryption regulation. (Reuters)
No.5 Voice · Viewpoint
#organization #report
Goldman Sachs report to clients: Ethereum is the blockchain with the highest "practical use potential". In the next few years, the total market value of ETH may surpass Bitcoin and become the main value storage method. Bitcoin has grown by 261% over the past year, while ETH has grown by 856% over the same period.
Bankless: ETH is the most capital-efficient asset in the world.
Kraken: The unlocking of GBTC shares impacts the secondary market, which may be beneficial to the price of Bitcoin. (CoinDesk)
#big company executives
Circle CEO: Promise to make USDC the most transparent stable currency.
Celsius CEO, an encryption lending platform: Next year or the year after, the market value of Ethereum will completely exceed that of Bitcoin. (Cointelegraph)
Tianqiao Capital CEO: China's withdrawal from BTC mining is conducive to the long-term development of BTC.
#KOL #Market Forecast
Encryption analyst Nicholas Merten: Bitcoin's current bull market cycle has not yet peaked, and it is expected to be in November 2022. (The Daily Hodl)
#asset management
#asset management
The cryptocurrency index community Index Cooperative completed a financing of US$7.75 million, led by Galaxy Digital and 1kx.
Solrise Finance, a Solana-based Fund Management and Investment Protocol, Closes $3.4M Funding
#DeFi
#infrastructure
#infrastructure
Cryptocurrency security protection service provider Coincover has completed a $9.2 million Series A round led by Element Ventures.
No.7 Burst and progress
#hacker attack
(7/4) Hacker organization REvil attacked more than 200 American companies and demanded payment of ransom in Monero. The White House is finalizing a strategy to combat REvil, banning companies involved from paying ransoms in cryptocurrencies.
#Regulatory risk
#Regulatory risk
Polish financial watchdog issues public warning about Binance. Additionally, banking giant Santander UK banned payments to Binance. Italian law firm and Swiss Blockchain Alliance have filed a class action lawsuit against Binance.
About SNAPFINGERS
Snap Finger Research Institute is committed to finding potential projects at home and abroad. We have close cooperation with investment institutions, media, KOL, and communities with rich industry knowledge and insights in the blockchain world. Here you can see the first-hand information of high-quality projects, project analysis, interviews with founders and opinions of big Vs in different industries.
