Kusama is about to start the parachain auction, giant whales are increasing their holdings of Bitcoin and retail investors are selling | Industry Weekly

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

Polkadot/DeFi/Layer2 Dynamics

Table of contents:

Market overview

Institution and company dynamics

industry voice

1. Institutional and company dynamics

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Market overview

According to CoinGecko data, as of 11:00 on June 11, 2021, the total market value of the cryptocurrency market was US$1691.3916217 billion, a decrease of 4.12% in the past 7 days. The USDT premium rate is -0.26%, and the average OTC price is ¥6.37. The market sentiment index is at 21, with a rating of extreme panic.

According to OKEx data, as of 11:00 on June 11, 2021, BTC was temporarily quoted at US$36,693, which was basically the same as last week; OKB was temporarily reported at US$14.153, an increase of 13.42% in the past 7 days. The long-to-short position ratio of the OKEx BTC contract is 1.5, and the number of parties is dominant; the total position of the BTC contract is 1.345 billion US dollars, which is basically the same as the same day last week.

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1. Institutional and company dynamics

1. Texas approves state-chartered banks to host cryptocurrencies

According to news from theblock on June 11, Texas, the United States, approved state chartered banks to host cryptocurrencies. What virtual currency custody services a bank chooses to provide will depend on the bank's expertise, risk appetite and business model, the banking ministry wrote. For example, a bank may choose to allow customers to retain direct control over their own virtual currency, while only storing a copy of the customer's private key. Alternatively, the bank might prompt customers to transfer their virtual currency directly into the bank's control, creating new private keys that are then held by the bank on the customer's behalf.

[Interpretation] The state-chartered bank has custody of cryptocurrencies, which is another positive signal for the mainstream adoption of cryptocurrencies.

2. MicroStrategy Issues $1.6 Billion Junk Bond to Buy Bitcoin

According to cointelegraph, MicroStrategy raised $1.6 billion through the issuance of junk bonds, four times the initial amount. Earlier this week, the company announced it would issue $400 million worth of junk bonds through a private placement, with a view to using the proceeds to buy bitcoin. Junk bonds are bonds issued by companies without investment-grade credit ratings and typically offer investors higher returns while taking on higher risk. The bonds have a variable return of between 6.125% and 6.25%, which exceeds the rate of return offered by Treasuries. The current circulation has increased to 1.6 billion US dollars.

According to U.Today news, on June 9, El Salvador voted and officially passed the bill to make Bitcoin a legal tender. The Decree will enter into force within 90 days of publication in the Official Gazette. Earlier news, President Nayib Bukele of El Salvador has submitted a draft bill to the country's legislature that would make Bitcoin a legal tender in El Salvador.

2. Cryptocurrency market

[Interpretation] In addition, on the evening of June 9, President Nayib Bukele of El Salvador has approved the Bitcoin Law, and those who invest 3 BTC in El Salvador will be able to obtain permanent residency. The government will also release an official bitcoin wallet, intending to hold bitcoin on its balance sheet. El Salvador is on fire over the incident, while smaller countries such as Paraguay are already following in its footsteps. Bitcoin may be the last straw for these inflation-anxious and dollar-struck small countries.

4. Victory Capital plans to enter the crypto market

According to businesswire news, the well-known asset management company Victory Capital Holdings, Inc. announced on June 9 that it has reached an agreement with Nasdaq and the asset management company Hashdex to enter the encryption market together.

[Interpretation] Victory Capital is a diversified global asset management company with assets under management of US$157.1 billion as of April 30, 2021.

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2. Cryptocurrency market

1. The median price of Ethereum Gas fees dropped to 22.377GWEI, the lowest point in a year

On June 10, according to data from Glassnode, the median price of Ethereum’s gas fees dropped to 22.377GWEI, the lowest point in a year.

[Interpretation] In the past few weeks, the average transaction fee of Bitcoin has dropped by 93%, and the average transaction fee of Ethereum has dropped by 95%. The Ethereum gas fee has recently reached a new low this year, and the low gas fee is a positive factor for the Ethereum smart contract platform. But at the same time, it also reflects that the frequent economic activities on the Internet may be correspondingly reduced under the influence of market sentiment.

2. Since BTC fell below $40,000, Bitcoin whales have accumulated more than $2 billion in BTC

According to Cryptoglobe, since the price of Bitcoin fell below the $40,000 mark in May, Bitcoin whales have been buying Bitcoin and have accumulated nearly $2 billion so far. According to data from cryptocurrency analysis company Santiment, Bitcoin whales with 1 million to 10,000 BTC in their wallets began to accumulate after the price of BTC reached $37,000, bringing the price of Bitcoin back to $39,000. Santiment also pointed out that as BTC whales continued to accumulate, retail investors sold their Bitcoin holdings at low prices. According to the firm, whale addresses with more than 1,000 BTC now hold more than 7.88 million BTC, the largest amount held since March 14. Addresses holding less than 10 BTC held only 2.65 million BTC, the smallest amount in the past six months, in contrast to whales' buying.

[Interpretation] A simple understanding of this set of data shows that retail investors are selling Bitcoin, while giant whales and institutions are constantly buying, indicating that the "smart money" from institutions and giant whales is optimistic about the future of encryption.

3. Data: The net outflow of BTC exchanges exceeded 29,900 yesterday, a new high since November 2019

According to data from Glassnode, on June 8, 65,910 BTCs, worth about $2.22 billion, flowed into exchanges, and 95,812 BTCs, worth about $3.23 billion, flowed out of exchanges. A total of 29,902 BTCs were outflowed, a record high since November 2019, worth approximately US$1.01 billion.

4. Data: Bitcoin active addresses hit a new low this year

According to a Twitter post by CIO Lex Moskovski of Moskovski Capital, the glassnode chart shows that as of June 8, Bitcoin active addresses hit a new low this year.

[Interpretation] Extremes must be reversed is the underlying logic of the development of this world. To put it bluntly, the data on the Bitcoin chain is so bad, how bad can it be?

5. Data: 99.3% of mining pool computing power supports the activation of Taproot

According to Taproot.watch data, 99.3% of the Bitcoin mining pool computing power supports the activation of Taproot. Judging from the support rate of block generation, there is a high probability that this difficulty cycle will activate the Taproot upgrade of Bitcoin.

[Interpretation] Taproot is a soft fork to improve the function of Bitcoin script. If it is deployed and upgraded, the performance of the Bitcoin network will be greatly improved. Not only privacy, scalability, and speed are improved. At the same time, it can support transactions with various complex functions on the Bitcoin network, including time-locked issuance, multi-signature requirements, etc.

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3. Polkadot/DeFi/Layer2 Dynamics

1. Kusama plans to start the first parachain card slot auction at 20:00 on June 15

On June 8, Gavin Woods, the founder of Polkadot, issued a post stating that he suggested to the Kusama Council that the auction time for the first parachain card slot: 20:00 on June 15, 2021, Beijing time; the auction time for the second card slot: Opening at 20:00, June 22, 2021, Beijing time; auction time for the third card slot: 20:00, June 29, 2021, Beijing time; auction time for the fourth card slot: July 6, 2021, Beijing time Open at 20:00; auction time for the fifth card slot: 20:00 on July 13, 2021 Beijing time. Kusama officially stated that the plan has been submitted to the council for review.

[Interpretation] With the launch of the Kusama parachain, Polkadot will truly have its own "ecology" and inject new "blood" into the blockchain industry. Welcome to the blockchain world. Ouyi OKEx has launched a channel that supports slot auctions and exclusively launched the early bird auction event. You can enjoy DOT rewards of 30% of the expected annualized income provided by Ouyi OKEx and double gifts from the project party. For details, please log on to the official website or APP Check.

2. The Ethereum 2.0 client Lighthouse released v1.4.0 version to reduce the impact of the beacon chain node Eth1 node, etc.

Official news, Ethereum 2.0 client Lighthouse released v1.4.0 version, this is a low-priority update, mainly contains some optimizations, these optimizations can reduce the RAM, CPU, disk I/O and Eth1 nodes of the beacon chain node. Influence. Notable features in this release include: reduced memory footprint, on mainnet this reduced memory usage from ~6 GB to ~1.5 GB; improvements to avoid disk and memory intensive operations; 80% reduction in Eth1 queries; Beta Windows supported and currently not recommended for production use.

According to the latest data from DeBank, the total circulation of Bitcoin-anchored coins exceeded 250,000 for the first time, hitting a record high, and currently stands at 251,050. Bitcoin-anchored coins are a special type of tokens issued on non-Bitcoin networks whose prices are anchored to native Bitcoins. Currently, the top three Bitcoin-anchored coins in terms of circulation are: WBTC (187,610 pieces, locked 6,321,800,219 US dollars), HBTC (37,906 coins, 1,277,313,089 US dollars locked), renBTC (10,321 coins, 347,782,992 US dollars locked).

4. Industry voice

[Interpretation] In the future, as the market value of Bitcoin continues to grow and its price gradually stabilizes, Bitcoin will become the gold in the decentralized world, and DeFi will become the Wall Street in the decentralized world, and the two will complement each other.

4. Ethereum DeFi activity has slowed to 2020 levels

According to decrypt news, according to a recent report by Glassnode Insights, the amount of Ethereum transfers in USD terms has dropped by 60% in two weeks. DeFi trading volume and number of transactions have declined this month, and transaction fees are back below $5 for the first time since Jan. 1. Ethereum DeFi activity has slowed to 2020 levels.

[Interpretation] The slowdown of DeFi activities has also caused the price trend of ETH to be quite weak, and there is the most direct relationship between the two.

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4. Industry voice

1. President of El Salvador: El Salvador has become one of the 14 most important events in the 12,000-year monetary history

On June 10, Agence France-Presse tweeted with a picture saying that after El Salvador passed a law accepting Bitcoin as legal tender, the picture below is a chronology of major events in currency history. El Salvador's President Nayib Bukele retweeted the tweet and commented that El Salvador (accepting Bitcoin as legal tender) became one of the 14 most important events in the 12,000-year "monetary history".

[Interpretation] One small step for Bitcoin, one giant leap for human society.

2. Osprey Funds founder: Bitcoin ETF is more likely to be approved in 2022

According to CNBC, Greg King, founder and CEO of Osprey Funds, said that he plans to convert Osprey's Bitcoin Trust (OBTC) into an ETF in due course. A Bitcoin ETF is more likely to be approved in 2022.

[Interpretation] The full name of Bitcoin ETF is Bitcoin Exchange Traded Fund (ETF). This financial instrument enables traders to gain exposure to BTC through the traditional stock market without directly buying and selling digital assets on cryptocurrency exchanges. ETFs are regulated traditional financial products that can be purchased through a number of retail-friendly mobile trading apps, including Robinhood, Trading212.TD Ameritrade and Fidelity. The most popular stocks track major stock indexes, such as the S&P 500, or other traditional assets and commodities, such as oil and gold. Bitcoin ETF is considered to be the most surging driving force in the crypto bull market.