Bitcoin rallied all the way to $5,500 after brief setbacks following the previous high of $5,350. Ethereum got to $185, but notably failed to reach previous highs around the $187 mark. Interestingly, Ethereum Sep futures also topped out a few dollars under the key $200 level, giving it more substance as a barrier. The contango has tightened, with spot ETH vs Sep contracts at around $10 vs $15 yesterday. In short, the trend remains bullish, especially given the apparent indication of demand from China where buyers are paying premiums over the official USD/CNY rate.
The amount of ETH locked in the MakerDAO credit ecosystem rose to 2.1146% yesterday. The last time the stability fee was hiked, the % of ETH locked in the system was 2.10%. Demand for DeFi is on the rise and there are plenty of real life user cases where the tech can be utilised. The European Central Bank (ECB) and the University College London Centre (UCL) for Blockchain Technologies are hosting a workshop on peer-to-peer (P2P) financial systems. This event will bring together market participants, policymakers, regulators and academics interested in P2P financial systems to share their experiences, research, and policy analyses on the topic of decentralised finance (DeFi). This workshop seeks to focus the strategic debate on the opportunities provided by DeFi, and on its impact on the financial ecosystem in the context of the broader transformation that is under way. For reference, earlier this week the ECB elected to not change its policy, as expected, maintaining interest rates at record lows and staying the course of steady interest rates this year.
In other news, CEOs of leading banks testified before the United States House of Representatives Financial Services Committee on how the banking industry has transformed since the 2008 financial crisis. Among many topics, the CEOs and lawmakers discussed blockchain technology and cryptocurrencies. Rep. Warren Davidson argued that the industry is entering into a new era of innovation, wherein blockchain technology is transforming existing financial systems, as well as cybersecurity. Davidson also noted that the U.S. is currently staggering behind due to issues of regulatory certainty.
Finally, blockchain-powered event betting platform Augur has launched a token denominated in MakerDAO’s Dai (DAI) stablecoin as part of a major upgrade to its platform. Augur has pointed out that introducing DAI-denominated markets will make trading less volatile as compared with Ethereum (ETH), which has been the exclusive coin used for trading on the platform thus far.
Thank you for reading,
The BeQuant’s Analytics team