Bitcoin remains in focus as it continues to make runs the key $10k level and, given the renewed contango widening, even with only 2 weeks until the CME contract expiry, surpassing 10k looks to be a matter of when and not if.
While market attention may be on Bitcoin and its psychologically/technically important price levels, much more interesting developments are taking place with Ethereum. Specifically, phase zero of Ethereum 2.0, which enables Proof of Stake (PoS), is set to launch on Jan. 3, 2020, seven months from now. The deposit contract is scheduled to launch ahead of the genesis block to allow validators to make deposits in advance. With an expected minimum of 2 million ETH incoming, a deposit contract ceremony has been organized to take place at Devcon in Japan.
Separately, Tether's supply is steadily moving from Omni to Ethereum. On Mar. 13, USDT had close to 100% of usage of all Tether transactions. As of Jun. 9, that number had shrunk to 82.74%, while 17.26% were sent on USDT-ETH. As a guide, ETH based USDT has access to any and all smart contracts, including decentralized exchanges (dex) as well as other open finance dapps.
Looking at the recent cryptocurrency market price action, ETH continues to trade cheap on a relative value basis vs Bitcoin, good size interest has been noted in higher call option strikes and contango delta is widening again. As it stands, ETH’s September-perpetual rate is about $8 vs as wide as $15 earlier this spring. The decoupling in correlation between ETH and BTC also seems to have abated, currently at 0.76 vs 0.9 in April. Also, year-to-date, Ethereum is up 102% vs Bitcoin which is up 148%. Overall, short-term indicators are bullish and point to ETH outperforming BTC.
Something else worth highlighting is that according to CoinMetrics, there are now over a million daily active addresses (Bitcoin), a number defined as the amount of unique “from” or “to” addresses used per day. It is worth pointing out that when Bitcoin first broke 1 million active addresses (Nov. 27, 2017), 1 BTC was $9,352 and the median tx fee was $3.23. This time, 1 BTC was $8,230 and the median tx fee was $1.33.
In other news, the social media giant Facebook will unveil the Libra Association, which will operate its bespoke cryptocurrency Libra, on Jun. 18. Per the report, Facebook and dozens of its partners will unveil the Libra Association — which will be based out of Geneva — as an autonomous entity that will oversee the company’s Libra cryptocurrency project. During the event, the company is also expected to launch the testnet of its blockchain.
Elsewhere, as reported by Cointelegraph, the vice chairman of South Korean consumer electronics giant Samsung says the firm will seek to collaborate with platform companies on the development of blockchain, artificial intelligence, and sixth-generation mobile networks.
Thank you for reading,
The BeQuant’s Analytics team