Bitcoin remains tantalizingly close to the key $10k level, while Ethereum keeps oscillating around the $268 level. The BTC futures curve continues to stretch out the widening contango, with the Ethereum contango delta close to $11. At the same time, the funding rates have been creeping higher, putting further pressure on outright longs.
The last time Ethereum and Bitcoin skyrocketed was during the ICO boom. This time, while the ICO market for new issuance is nowhere near as active, the Ethereum blockchain has found a new source of life and that is Tether. Specifically, there has been a notable pick up in USDT supply flow from Omni to the Ethereum blockchain. As of June 9, 82.74% of all Tether transactions were sent in USDT, while 17.26% were sent in USDT-ETH.
However, what if the growing supply pressure on ETH from Tether will be such that it outweighs the benefits, especially if the end game is to trade into Bitcoin or other digital assets?
More press reports surfaced regarding the first stage of the Ethereum network’s transition to Ethereum 2.0 which is expected to take place on January 3, 2020. Phase zero is the name of the first transition stage of the Ethereum network from a proof-of-work to a proof-of-stake consensus algorithm, which would transfer the block validation function from miners to special network validators.
MarketWatch reported that the Banking Committee of the United States Senate will hear testimony on Facebook’s Libra cryptocurrency project on July 16. Following its whitepaper release, U.S. regulators expressed their concern about the project’s possible effects on financial stability. Rep. Maxine Waters, chairwoman of the United States House of Representatives Financial Services Committee, demanded that Facebook halt development while regulators investigate the project.
As reported by Forbes, LumenLab, MetLife’s Singapore-based incubator, is collaborating with media group Singapore Press Holdings and insurance cooperative NTUC Income to release “Lifechain,” a smart contract platform built on Ethereum. Lifechain programmatically determines if the deceased are protected by a policy and automatically files a claim on their behalf. MetLife is the globe’s sixth-largest insurance provider and the mutual company has 90 million customers in over 60 countries. The firm also is ranked 44th on the Fortune 500 list.
In other news, “Big Four” professional consulting firm PwC has launched an updated auditing solution for clients who hold cryptocurrencies. The auditing solution, called Halo, offers a full breakdown of clients’ crypto treasury. The solution currently supports Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, Litecoin, Ethereum, ERC20 – OAX token and XRP cryptocurrencies, according to the announcement.
Thank you for reading,
The BeQuant’s Analytics team