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Cardano tops $3

Cardano’s ADA token rose more than 7% on Thursday, hitting a high of over $ 3 when the project’s lead developer announced that smart contracts would be enabled on the test network and blockchain would approach competition with Ethereum. became.
The price of ADA rose to $ 3.09 and then fell to about $ 2.97 at the time of the press.
The latest meeting was when chief developer IOHK, led by Charles Hoskinson, tweeted that Cardano’s test network had successfully implemented smart contract capabilities and will focus on the ongoing upgrade of the “Alonzo” main network. It was done in. September 12. “”

Cardano is currently the third largest cryptocurrency by market capitalization ($ 93.7 billion), second only to competitors Bitcoin ($ 934 billion) and Ethereum Ether ($ 439 billion). ADA tokens rose 1.583% this year, compared to 69% for Bitcoin and 417% for Ether.

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Bitcoin dominance declines

Bitcoin’s market share of cryptocurrency’s total market capitalization (domain index) has dropped to 40%. The world’s largest cryptocurrency in terms of market value has lost its position as altcoin in the last two months in terms of market share and returns.

The graph below shows the BTC dominance ratio approaching the level last seen in May. This coincided with the peak ETH / BTC ratio near the resistance level of 0.08. The altcoin season seems to be taking a break soon.

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Historically weak September

Fund Strat, a global investment adviser, wrote in a newsletter on Thursday.
September seems to be the only month in which BTC experienced negative average performance. “The graph below shows that the pattern of monthly returns closely matches the seasonality of the last 12 months, with prices rising from late fall to early winter and then peaking in April.” FundStrat has been written.
In addition, the September BTC reduction, the peak-to-low rate of decline, was extended for a series of four years.
Better yet, Bitcoin yields are usually stronger after September, especially in November. “Even though Bitcoin reflects its historic season, October-December may offer better performance opportunities,” writes Fund Strat.

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Market Wrap: Bitcoin Enters September Slowdown; Cardano’s ADA at New High

Bitcoin withdrew from the $ 50,000 resistance level when the buyout signal appeared on Thursday’s day chart. BTC traded at around $ 49,200 at the time of the press, rising about 2% in the last 24 hours, compared to a 4% increase in Cardano’s ADA, which previously peaked at $ 3.09.
Analysts expect Bitcoin’s rise to be limited as Bitcoin enters a seasonally weak period. On average, Bitcoin returns are usually negative in September. However, the yield in November is relatively high. “Bitcoin is still higher than the 50- and 200-day moving averages, showing that positive trends are still valid, but moving slowly,” said Lukas Enzersdorfer-Konrad, chief product officer at Bitpanda. Stated in an email to CoinDesk.
Instead, traders turned their attention to altcoin, which has surpassed Bitcoin in the past month. However, some technical measures suggest that the relative performance of these altcoins could deteriorate later this month.

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stETH’s DeFi foray

Some analysts say the collateral boosted Lido’s growth, carrying on the recent decision by the anchor protocol to adopt BETH, a version of the stETH token suitable for use on the Terra blockchain.
Denis Vinokourov, Head of Research at Synergia Capital, said: In contrast, “BETH allows you to rent and rent ETH on the Terra network, which is literally the dynamics that opened the lock.”

According to Messari research analyst Jack Anderson, bETH provided STETH holders with a cross-chain opportunity to earn fixed ETH returns.
“Previously, I was able to get STETH and deposit it in the curve pool to earn additional revenue (in addition to the ETH 2 participation reward), but now I can use BETH to convert STETH to BETH. You can rent Terra USD or UST at. ”Other Sun. Said. UST is a stablecoin based on the Terra blockchain algorithm. Anderson added that Lido’s efforts to disperse and maintain transparency give people a great deal of confidence.
According to Bankless, Curve Finance’s stETH-ETH group, launched earlier this year, is the most prominent stETH integration to date. The pool allows STETH token holders to trade between equity derivatives and “regular” ETH. Anyone can provide liquidity to the STETH Group in exchange for bets paid on LDOs and transaction fees. At the time of the press, the group has $ 4.8 billion in deposits and over 700,000 STETH. This is more than 50% of the total cyclic supply of the differential symbol.
Therefore, stETH holders can easily stop betting by selling tokens acquired by ether through Curve Finance. However, in that case, the seller STETH loses the betting reward to the buyer.
Lido and decentralized bets generally have an advantage over central exchanges, but at least in theory they are not without risk. As Terra Money pointed out last year, liquid bets are similar to asset-backed bonds in the sense that they both create a new layer of abstraction that makes people less likely to worry about the health of the underlying asset. It looks like there is a transition from physical delivery to paper delivery in the future market. ”

In addition, validators have the advantage of lowering the price of tokens, as they can short the shares they acquire if they are found to be malicious. “It’s theoretically possible,” Lido said, adding that his validator set contains only reliable validators.

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Using Lido

Centralized participation promotes rapid access and high liquidity, but carries the risk of strict “fine caps” and reduced overall compensation. Ethereum empowerment engaged in malicious behavior receives heavy fines and loses a significant amount of excited ether. You can also force the offender to be removed from the network.
Using Lido with some validators reduces the risk. “Nine active node operators [validators] have bet on ETH on behalf of Lido, and five more have recently joined,” protocol technology leader Vasiliy Shapovalov told CoinDesk last week. Even if the validator is identified as malicious, the loss from the fine is much less than on a centralized exchange.
This protocol provides users with the underlying ether liquidity through stake derivative tokens called stETH. When a user deposits 1 ETH on the Lido protocol, they get 1 STETH in return.
‘STETH rewards will be collected automatically. “Every day, we increase the STETH balance in our wallet,” said Lido Finance. As Ben Giove, a contributor to the crypto newsletter Bankless, points out, Lido users can earn participation revenue, maintain network share through derivative signs, and use it like any other DeFi protocol promotional material. increase.
Kraken offers equity derivatives. However, according to Konstantin Lomashuk, a member of Lido DAO, it cannot be used outside the fair. Many of these centralized strike services require the user to lock the token. “Note that unqualified ETH may remain unimportant,” Kraken warned on its website in January. With Lido, the technical risks associated with validation of validity are transferred to industry experts. “Lido is unmanned, but verification is handled by some of the best professional services, giving confidence that even large funds trust their services,” said Choi of Spartan Capital.

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Booming Market for Ethereum 2.0

Most stakeholders, with the exception of SharedStake and Stakewise, have grown, but Lido dominates the sector, according to Delphi Digital. Jason Choi, general partner and principal investigator at Spartan Capital, said the protocol received more than half of the recent new influx.
A proof of importance consensus mechanism protects blocks by selecting transaction validators based on the number of coins they have. To become a Beacon Chain Generator, an entity needs at least 32 ETHs and is worth about $ 120,960 at the current Ethereum price of $ 3,780. (The transition from Ethereum’s Proof of Work to Proof of Game mechanics will take place early next year.)

Like Lido, centralized exchanges such as Kraken and Binance will also consolidate user funds to enable investors under 32 ETH to contribute to Eth 2.0 and earn rewards. These exchanges make up a significant portion of the coins in the Ethereum 2.0 Beacon Chain Deposit Agreement, according to a report by blockchain analytics firm Nansen, which was emailed to CoinDesk on August 17. According to blockchain analytics firm Glassnode, deposit contracts currently contain more than 7 million coins.
However, according to Nansen, Kraken and Binance are losing share on distributed sharing protocols like Lido.

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Lido Dominates Booming Market for Ethereum 2.0 Staking Derivatives

One of the new ways to invest in Ethereum is to secure money to a future improvement of the Ethereum blockchain, which is already running in parallel, known as the Beaconchain. This process is called “pile driving”. Investors can place Ethereum (ETH) in the Beacon chain and earn over 5% annual returns.
This is significantly higher than most traditional bank accounts and the returns offered by the US Treasury, but the problem is that investors may not be able to “remove” your signs for more than a year. .. .. For example, the Beacon chain will only allow withdrawals after the most power-consuming Proof of Work has been completed and the transition from Ethereum to the game-proof blockchain has been completed.
To address this issue, crypto entrepreneurs have created a new market called “Ethereum 2.0 Equity Derivatives.” This is an essentially special derivative token that represents participating ETH. These markers can be used as additional performance collateral in decentralized finance applications (DeFi). The goal is to provide liquidity to ether investors. Even if their signs are tied to the beacon chain, until next year’s update is scheduled. Take your cake and eat it, so to speak.
And one Decentralized Autonomous Organization (DAO), especially Lido, has achieved a dominant market share of 80% in this fast-growing area. Recently, the amount of ether, the native Ethereum blockchain sign that Lido has walked on, has surpassed a million milestones ($ 3.7 billion worth), a 45-fold increase over the past year. This is equivalent to 15% of the total. ETH Ethereum. Beacon chain, according to Dune Analytics. “With the progress towards Eth 2.0, there is growing interest in betting on ETH, and Lido is one of the best decentralized places to do so,” said Jeff Dorman, Chief Investment Officer at Arca Funds. Told CoinDesk in a Telegram chat. ..