Daily Crypto Update 10/22/21
Hello and welcome to your daily crypto update.
đ°Ethereum follows Bitcoin - hit a new ATH
Just a day ago Bitcoin set a new record at $66 930 so now itâs time for the second cryptocurrency by market cap. Ethereum followed BTC and reached $4 366, breaking its previous ATH of $4 357.
Even though both projects have different characteristics it seems that they are remarkably correlated. On a scale of -1 to 1, the leading cryptocurrencies have a correlation of 0.82 over the past 30 days. Yearly the number is 0.6 - 0.68 to be specific, which means that when Bitcoinâs price movements reflect positively on Ethereum and vice versa.
The last time both assets were uncorrelated was in November 2017.
Many facts caused the recent surge. The SEC approved Bitcoin futures ETF. When we talk about Ethereum we should bear in mind the so-called âDeFi summerâ, NFT craze, and Ethereum 2.0 which will move ETH from proof-of-stake algorithm to proof-of-work.
đ°Solanaâs TVL reached $12.46B
Solana, the latest âEthereum killerâ, saw a significant surge this fall. The price of the native token - SOL - hit an ATH of $214.96 compared to 2 where it was sitting at the beginning of 2021. Now Solana has $12.46B TVL (total value locked) according to data aggregator DeFiLlama.
TLV is a metric that shows how much money is locked in a certain protocol, in the form of collateral, deposits, and liquidity pools. Among hundreds of projects built atop Solanaâs network, Raydium is responsible for over $1.64B.
Raydium is a decentralized exchange (DEX) similar to Uniswap of Ethereumâs ecosystem. By contrast, Solana offers high-speed and low-cost transactions. The system could transfer 50 000 per second with current fees of 0.000005 SOL or $0.00095985.
Digital Currency Group to buy 1B of GBTCâs shares
Digital Currency Group (DCG) is authorized to upper its latest purchase of Grayscaleâs Bitcoin shares from 750M to 1B. The company is a parent company of Grayscale.
The move is forced because earlier this week GBTCâs shares hit a historical discount of 20.5%. This means that Trustâs shares are trading at a lower price than they should be. The shares trading on a discount and additional annual management fees of 2% made many investors unhappy. Most of them took a loan to invest in the Trust and their positions are losing capital.
đ°FTX with $25B valuation
FTX, the second crypto exchange by popularity after Binance, hit a valuation of $25B after raising an additional $420,690,000. 69 investors took part in the round, including the Ontario Teachers Pension Plan, BlackRock, and Tiger Global.
The latest funding round came just a few months after the company raised another $900M from Sequoia Capital, Paradigm, and Coinbase Ventures.
In July the crypto exchange was valued at $18B but it continues to grow - the average trading volume has increased by 75% and the user base by 48%.