Digital asset markets were on a wave of parity until investor confidence hit hard on the week’s close with a bearish bias from a storm of negativity.
Before reading the review, you can get the most read stories about bitcoin price, macroeconomic picture, and the DeFi phenomenon.
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Bitcoin reverses the profits of the previous two halves, showing a price of $ 41,000 in 2020.
Ethereum gas fees hit $ 500,000 and ETH hit a 2020 high of $ 486.
The biggest drop in the stock markets was due to the shares of “blue chips”. When this happened, many of the tokens associated with DeFi platforms were drastically rectified, especially SushiSwap (SUSHI), which lost almost 40 percent of its value.
A correction in traditional markets appears to have affected bitcoin (BTC) by more than 10 percent before it returned to the $ 10.3K to $ 10.4K range.
Much is not always good
Tech stocks, which pushed U.S. stocks to record highs this summer, turned sharply this week, causing the Nasdaq Composite to plunge nearly 5 percent, the biggest drop since June.
Apple shares fell eight percent, cutting the iPhone maker’s value by more than $ 150 billion, while Amazon, Alphabet and Microsoft fell more than four percent.
As a result, the VIX jumped above 30 points for the first time since mid-July, and the volatility index, corresponding to the Nasdaq, rose to over 40 points – almost double compared to mid-August.
Historically, the VIX only hit a few times in the 1930s, and this almost always results in a lot of payoff.
This is a reminder that busy trades provide more volatility when someone starts to relax. Digital asset retailers are aware of this dynamic, and while bulls can feel particularly uncomfortable when it comes to transforming wealth, withdrawal offers an opportunity to recover.
The futures curve has also flattened significantly as leveraged buyers were the first to seek coverage, and in the options market, there are many opportunities to take advantage of the wrong price in the market.
Are DeFi Tokens the New Pink Paper?
Ethereum transactions have grown to several new full-time points for the second time in three weeks, according to Etherscan, and Uniswap V2: Router 2 is now the main source of gas consumption. This is followed by a decentralized modem (USDT); Another DeFi friend is SushiSwap: MasterChef LP Staking Pool.
After all, Tether was harassed from the highest position as the most important contributor to the use of gas.
The fact that it has been supplanted by the DeFi platform speaks volumes about the industry’s recent growth, with over $ 9.34 billion currently locked on various platforms. Currently, Aave, Maker, and Uniswap make about $ 1.5 billion in TVL each.
On the one hand, DeFi is a high-risk, high-reward market, but there is also small equity trading. Both clearly have a market and will always be among the risk-averse.
Are you exempt from high gasoline taxes on the road?
The constant focus on DeFi and the recent hyperactivity of Ethereum have resulted in serious congestion and gas charges. This led Ethereum founder Vitalik Buterin to offer various solutions by building clusters and blocks.
ZK-Rollups is a knowledge-based technology that helps to aggregate or combine multiple transactions into a single transaction, thereby helping to reduce congestion on the Ethereum blockchain. Less congestion means less cost.
Optimistic and ZK build can increase throughput from ~ 15 tx / sec to ~ 3000 tx / sec, doing most of the transaction processing at level 2. On the other hand, sharing increases the throughput of the base level by about 100 times.
This could reduce commissions by a factor of 100, but in reality it will not decrease much in the long run, because the demand for Ethereum is also likely to grow.
The only solution to the problem of high transaction fees is scaling, and Tether, Gitcoin and other apps are doing the right thing by moving to generic ZK upgrades. On a positive note, Tether is now planning to add support for its ZK-Rollups.