(24-Jul-20) This Week in Crypto:
Lots of DeFi.
- Ethereum is beginning to rise in value and activity on the network continues to skyrocket as DeFi continues its parade. However, this has led to Ethereum posting record-high transaction fees (currently averaging $1.4 USD; 60 gwei median prices). Some warn that this proves Ethereum is still not ready for the mass adoption that hopeful users are speculating. With Vitalik confirming that we still have a minimum of 2 years before layer-2 scaling solutions are successfully implemented, this TX fee fiasco could soon get out of hand.
- The $YFI project launched a few days ago by independent developer Andre Cronje. This is a new governance token for Yearn.Finance, a site that performs a variety of functions for DeFi users. With 0 sale to investors, 0 held by (1-person) team, 100% farmed in 1 week, this freak project is certainly breaking the industry norms. The YFI project is appreciating at an incredible rate with as much as $300m locked up on its platform. Risks are high and returns are lucrative, but will this last, I guess we’ll see. For more info, Kerman Kohli of DeFi Weekly has an interesting take on the matter.
- Bitcoin’s 60-day rolling volatility has hit a 15-month low. The typically volatile and unpredictable asset seems to have hit a lull in activity. As we know all too well, active traders love volatility, even more so than a steady rise in prices. The volatility allows for profits to be made on price swings; with no price action, there is little need to buy or sell. It’s likely that Bitcoin will get moving again in the future, but for now, many are looking at the DeFi space and beyond to capture that all so enticing ROI.
This Week’s Top Crypto Conversations:
Da HongFei (NEO founder) on Ethereum’s TX fees:
DEX volume on Ethereum has reached a new all time high over the past 7 days:
Binance Lists Maker and DAI tokens amid the DeFi boom:
Dan Elitzer on YFI’s project launch: