Bitcoin managed to hold onto the $8,000 level and while another run on the level should not come as a surprise, the amount of BTC locked in DeFi/Lightning Network (LN) continues to increase and now stands at its highest since late September. In addition to that, the amount of DAI locked in the credit ecosystem is also staging a recovery, after an aggressive unwind last week which saw the total amount locked decrease from 30 million to 15 million. As a guide, Multi-Collateral Dai was activated on the MakerDAO system after MKR token stakeholders made an executive vote last Friday to give it the go-ahead. Dai will now be backed by multiple assets instead of just Ethereum. This in turn augmented the selling pressure that Ethereum would have otherwise experienced.
Since June, when Maker made a big step towards implementing MCD as it released its first collateral types, Ethereum is down 25%, while Bitcoin is up 11%. Going forward, the next key event is Ethereum’s planned network upgrade on December 4, which is intended to optimize and lower gas costs, increase compatibility with Zcash and address scalability as well as allow contracts to introduce more creative functions. This busy schedule of events has been detrimental to market stability, even if the aforementioned upgrades are likely to prove positive in the long-term. Nevertheless, the futures curve remains steep and the options skew points to pick up in sentiment heading into year-end, especially into March 2020 strikes and thereafter.
Aside from the Ethereum hard fork and Bitcoin block reward halving next year, it is worth remembering that Ethereum Classic will also undergo its own hard fork in January 2020. As the community prepares for the Agharta hard fork which is expected to take place on January 15 2020, the testnets before the launch of the mainnet have been rolling out on the network. On November 14, ETC Cooperative revealed that the latest testnet, Morden, was activated on the network. More recently, ETC Cooperative’s executive director, Bob Summerwill stated that the Mordor testnet which was scheduled for 20 November was already activated. With the activation of the Morden and Mordor testnets, the community is one testnet closer to the launch of the mainnet. The next testnet, Kotti is scheduled for December 11.
Elsewhere, Louisiana-based Whinstone US Inc. is merging with Northern Bitcoin with plans to develop what it says will be the world’s largest and most powerful Bitcoin mining facility. The new joint company will build a center that is slated to have an energy capacity of one gigawatt and cover approximately 100 acres of the Lone Star State, which the company claims will make up “the largest data center in North America and the largest Bitcoin mining facility in the world.” Construction on the facility will occur in three phases, with the first set to begin during the first quarter of 2020, and the last scheduled to be completed by the end of next year.
Thank you for reading,
The BeQuant’s Analytics team