Ethereum and Bitcoin lick the wounds, Tether goes „brrr“
Bitcoin and Ethereum are battling with psychologically significant brands and records are falling at Tether. The market update.
After the Bitcoin price had set a new all-time high on some crypto stock exchanges, there was profit-taking, which pushed BTC temporarily below $18,200. However, it took less than 2 hours for the crypto reserve by Bitcoin System currency to regain the $19,000 mark – by noon today. At the time of going to press, the Bitcoin exchange rate was 18,933, just under one percent below the previous day’s level.
The crypto currency with the second largest market capitalisation also had to give up its feathers on 1 December. After the long-awaited start of the proof-of-work based Beacon Chain had not only heralded Phase 0 of Ethereum 2.0, but also a small ETH rally, the Ether course also sold off. The 600-US dollar mark, which had been taken by storm, was broken downwards. At the time of going to press, the ether exchange rate recovered slightly, but was unable to overcome the 600 US dollar hurdle on a sustained basis.
DeFi at record level despite sales
Meanwhile, the decentralised financial services sector (DeFi) has also recovered from its nosedive in the last week of November. According to the DeFi portal DeFi Pulse, crypto-currencies with a value of 14.5 billion US dollars are stored in the DeFi ecosystem. As of the editorial deadline, TVL (Total Value Locked) is well on its way to catching up on the all-time high of 14.73 billion US dollars which was only set on 1 December.
While the top 5 have consistently suffered losses in the single-digit percentage range, the daily winners include DDEX (+70 percent), Kyber (+40 percent) and SushiSwap (+10 percent).
Tether prints USDT in record time
Bitcoin, Ethereum and the DeFi sector remain volatile, while the Stablecoin Tether sector is showing increasingly rapid growth. Since the end of September, demand for USDT appears to have risen sharply; so much so that its issuers have increased the timing for „embossing“ new coins. The market capitalisation of USDT is now almost 20 billion US dollars – in January it was less than five billion.
While the growing demand for „price-stable“ USDT tokens can be seen as an indication of increased capital inflow into the crypto sector, the rapid pace at which new tether units are being flushed into the market is also raising concerns. For example, parts of the crypto community have doubts that the tether reserve is large enough to cover all USDT tokens. Tether CTO Paolo Ardoino’s tweet on the recent growth spurt of the stable coin has also provided answers that are otherwise only available to politically legitimate money printers (aka central banks):
– Crypto 8008 (@crypto8008) November 26, 2020
The mistrust of Tether is mainly based on the fact that the company has to this day carried out a comprehensive audit of its finances.