Tag: ETHER

Ether Surges to Over $1,900 Ahead of Staking Withdrawals

by Blockchain News

Ether, the second-largest cryptocurrency by market capitalization, has surged to over $1,900 for the first time in over seven months, according to CoinMarketCap data. This price increase comes ahead of the Ethereum Shanghai hard fork, scheduled for April 12, which will implement Ethereum Improvement Proposal (EIP)-4895, allowing validators and stakers to withdraw staked ETH from the Beacon Chain. The upgrade is also expected to help increase transaction speeds while reducing transaction costs through other EIPs.

The last time Ether was above $1,900 was on August 16, 2022, during a broader crypto sell-off when the United States Federal Reserve was hiking the federal funds rate at a record pace to combat inflation. The recent price increase could be driven by expectations that the Fed may ease up on its quantitative tightening efforts, causing cracks in the global banking industry, or by increased demand for Ether given that staking is slated to be more flexible.

Bitcoin has also recorded gains recently, but the trading pair ETH/BTC has increased by nearly 3% in the last week, suggesting that both factors may be contributing to Ether’s price jump. It is worth noting that the price of Ether dropped sharply following the execution of the Merge on September 15, 2022, where it lost just under a quarter of its value in one week.

The Ethereum Shanghai hard fork is named after the fork on the execution layer client side, while Capella is the upgrade name on the consensus layer client side that is set to be executed shortly after Shanghai on April 12. The execution layer is where all the smart contracts and protocol rules are, while the consensus layer ensures that all network validators follow these rules.

Despite some analysts and traders suggesting that unlocking staked Ether will create sell pressure, what will occur following the Shanghai and Capella updates is speculation. The recent price surge may be an indication that investors are optimistic about the future of Ether and the potential for the upcoming upgrades to increase its value.

In conclusion, Ether’s recent surge to over $1,900, a level not seen since August 2022, is likely due to several factors, including the upcoming Ethereum Shanghai hard fork that will enable stakers to withdraw their ETH and the potential easing of the Federal Reserve’s quantitative tightening efforts. While some investors may be concerned about sell pressure following the upgrade, others remain optimistic about the future of Ether and its potential for growth. The upcoming upgrades are set to increase transaction speeds while reducing transaction costs, and it remains to be seen how they will affect Ether’s value in the long term.

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Swiss Retail Bank to Offer Cryptocurrency Services

by Blockchain News

PostFinance, a retail bank owned by the Swiss government, has announced plans to offer its customers cryptocurrency trading and storage services. The bank has partnered with local cryptocurrency bank Sygnum to provide regulated digital asset banking services. Customers will be able to buy, store, and sell major cryptocurrencies such as Bitcoin and Ether.

The partnership with Sygnum enables PostFinance to offer these services through Sygnum’s institutional business-to-business platform. This platform provides banks with market entry to regulated and compliant digital products, including a range of cryptocurrencies. The B2B network includes more than 15 partner banks and supports revenue-generating services like staking.

PostFinance’s move into the cryptocurrency market comes amid growing interest and adoption of digital assets worldwide. With the rise of blockchain technology and the decentralization of finance, many traditional financial institutions are exploring ways to integrate cryptocurrencies into their offerings. PostFinance’s partnership with Sygnum positions the bank to provide its customers with access to the growing cryptocurrency market.

As a fully government-owned bank, PostFinance is subject to strict regulatory requirements. The partnership with Sygnum ensures that the bank’s cryptocurrency services are fully compliant with local regulations, providing customers with a secure and regulated platform for trading and storing digital assets.

The collaboration with Sygnum also provides PostFinance with access to the expertise and technology of a leading player in the cryptocurrency space. Sygnum is a licensed Swiss bank that offers a range of institutional-grade cryptocurrency services, including custody, trading, and tokenization. With its deep experience in the cryptocurrency market, Sygnum is well-positioned to provide PostFinance with the tools and support needed to offer its customers cutting-edge digital asset services.

In summary, PostFinance’s partnership with Sygnum represents a significant step forward for the bank as it seeks to enter the cryptocurrency market. With the ability to offer customers regulated cryptocurrency trading and storage services, PostFinance is well-positioned to capture a share of the growing digital asset market. By leveraging the expertise and technology of Sygnum, PostFinance can provide its customers with a secure and compliant platform for buying, selling, and storing digital assets, including Bitcoin and Ether.

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Playboy loses $4.9 million on NFT holdings

by Blockchain News

Playboy, one of the most recognizable names in the adult entertainment industry, has disclosed a significant loss of $4.9 million on its Ether (ETH) holdings, which it earned from a non-fungible token (NFT) collection launched in late 2021. The disclosure came in a filing by the company’s parent, PLBY Group, on March 18, 2023.

The NFT collection, called Rabbitars, was launched in October 2021, just before the crypto market reached its peak. Ether’s price has since dropped around 60% in line with the broader market decline, and as of December 31, 2022, the value of Playboy’s crypto holdings stands at $327,000.

According to the filing, PLBY Group took an impairment loss of $4.9 million in 2022 as a result of the crypto prices downturn. Impairment losses are counted as unrecoverable, even if the fair value of digital asset holdings rises after recording the losses. The market price of Ether ranged from $964 to $3,813 during 2022. Still, the carrying value of each Ether that PLBY held at the end of the reporting period reflects the lowest price of one Ether quoted on the active exchange at any time since its receipt.

The company’s statement further explained that positive swings in the market price of Ether are not reflected in the carrying value of its digital assets and impact earnings only when the Ethereum is sold at a gain. PLBY’s NFT collection, Rabbitars, featured a variety of different types of NFTs, including an original art series, limited edition collectibles, and one-of-a-kind digital assets.

The Playboy brand is one of the most recognizable in the world, and its Rabbitars collection was highly anticipated by NFT collectors and Playboy enthusiasts alike. The collection was designed to be a unique and exciting way for fans to interact with Playboy’s iconic brand and its rich history.

The loss incurred by PLBY Group highlights the risks associated with investing in NFTs, which remain highly speculative despite their growing popularity. The NFT market is still in its early stages, and the future of the industry remains uncertain. However, it is clear that companies and investors alike need to be prepared for the potential risks associated with investing in NFTs.

Despite the loss, Playboy remains committed to the NFT market and is likely to continue to explore opportunities in the space. The NFT market has shown significant growth potential, and as the industry continues to mature, Playboy may find new ways to leverage its iconic brand to drive value and create unique experiences for its fans.

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Bitcoin Prices Hold Tight above $20K Level, But Downsides Still Imminent

by Blockchain News

Bitcoin and other cryptocurrencies have consolidated gains from a recent rally that catapulted most digital assets a notch higher than a month.

Over the last 24 hours, Bitcoin price has little changed, still moving at around $20,290, according to TradingView. Apart from the largest cryptocurrency, Ether rose 1% to $1,519.19, while altcoins such as Solana and Cardano were both just above flat. Meanwhile, meme coins are more buoyant, with Dogecoin jumping 13% and Shiba Inu 4% higher.

Although the short-term picture looks relatively solid, cryptos generally remain vulnerable to another swing lower.

Bitcoin reclaimed its key price point on Tuesday afternoon, which is $20,000, triggered by weaker US dollars and accelerated by a wave of short-sellers—traders who bet against the cryptocurrency—being forced to cover their losses and purchase the token.

Source: TradingView

The crypto has appeared to stay in the $19,000 range but occasionally moved above that threshold in recent weeks. Whether the token’s value will continue to increase is a matter of people’s guesses.

While most crypto users are optimistic that Bitcoin has established its bottom after this year’s brutal market downturn, digital assets are still vulnerable because of the Fed’s monetary policy decision and negative sentiment in broader markets.

A looming catalyst for markets is the Fed’s tightening of financial conditions, including what is expected to be the fourth largest interest-rate hike, next week. Analysts anticipate that the Fed’s announcement next week could send Bitcoin trade below the $18,000 level.

Bitcoin’s vulnerability comes from a series of bad economic news, such as inflation data, among others, which have been turning market sentiment to the downside over several months in the recent past.  Despite Bitcoin having clawed back its price since May this year, in recent the crypto has faired better than other assets, including stocks, gold, the European Euro, the Japanese Yen, the Chinese Yuan, and the British pound.

Over the previous month, Bitcoin’s recent resilience, compared to other assets, could be due to the crypto becoming a great conduit for U.S. dollars in nations that are struggling with their own currencies. Or Bitcoin’s resiliency could be anchored on long-term crypto investors who have remained unfazed amid recent plunges in the U.S. economy.

Bitcoin is holding steady, but it is not out of the woods yet. The end of the year is packed with macro events that could shift the tides downwards, including the midterm election, inflation reports, Federal Reserve meetings, the effects of Russia’s invasion of Ukraine, and a potential peak in U.S. dollar strength.

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Ethereum Slips Below $1,350 as Total Liquidation Hit $300 Million in 12 Hours

by Blockchain News

Ethereum (ETH) has not been able to get the right footing since the much-anticipated Merge went live on September 15.

The second-largest cryptocurrency was down by 10.40% in the last 24 hours to hit $1,305 during intraday trading, according to CoinMarketCap. 

This price action is being experienced amid high liquidation in the cryptocurrency market. Crypto Reporter Colin Wu or Wu Blockchain pointed out:

“Ethereum fell below $1,300, a 24-hour drop of 10%, and the total liquidation amount in 12 hours reached $300 million. On September 21, the Fed will announce its decision to raise interest rates, and the market is expected to raise interest rates by 75bps.”

Given that interest rate hikes usually have a bearish impact on cryptocurrencies, it remains to be seen how this month’s review by the Federal Reserve (Fed) transpires. 

A downward trend is already being experienced in the Ethereum network. Wu added:

“ETC hashrate is 211.11T, down 32.14% from its peak; price is $29.82, down 13% in 24h; ETHW hashrate is 35.48T, down 56.23%, price is $4.66, down 46% in 24h; ETF hashrate is 6.3 TH/s, down 82%, price is $1.22, down 19.8% in 24h.”

The merge changed the consensus mechanism on the ETH network from proof-of-work (PoW) to proof-of-stake (PoS), which is deemed more environmentally friendly and cost effective.

Despite the bearish momentum being experienced, more Ether continues to be staked in the ETH 2.0 deposit contract. Market insight provider Glassnode stated:

“Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 13,801,319 ETH. Previous ATH of 13,799,319 ETH was observed on 18 September 2022.”

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Source:Glassnode

Furthermore, transaction volume has been going through the roof after hitting a 4-month high of $264 million. 

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Source:Glassnode

Crypto analyst Rekt Capital believes that the bullish effects of the Merge will emerge in the long run. 

American multinational investment bank Citigroup or Citi had also stipulated that the Merge would slash the overall Ether issuance by 4.2% annually, making it deflationary,

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Active Addresses of Ethereum Hit Monthly High with $22B Being Staked before the Merge

by Blockchain News

Ethereum (ETH) continues to be at the centre stage after undergoing its biggest software upgrade called the Merge, which saw a transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. 

Active ETH addresses have skyrocketed after hitting a monthly high. Market insight provider Glassnode explained:

“The number of active ETH addresses (7d MA) just reached a 1-month high of 31,498.220. Previous 1-month high of 31,459.899 was observed on 17 August 2022.”

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Source: Glassnode

With weekly social engagement levels surging by 53%, active addresses were deemed to increase based on the speculation triggered by the much-anticipated Merge.

Nevertheless, Santinent acknowledged that there was heavy dominance of two addresses. The crypto analytic firm stated:

“According to our Ethereum Post Merge Inflation dashboard, 46.15% of the proof-of-stake nodes for storing data, processing transactions, and adding new #blockchain blocks can be attributed to just two addresses. This heavy dominance by these addresses is something to watch.”

On the other hand, hodlers had heavily staked in the Ethereum 2.0 deposit contract prior to this event. Crypto analyst Ali Martinez pointed out:

“ETH hodlers have staked more than 13.7 million ETH in the Eth2 Contract ahead of the Ethereum Merge, that’s more than $22 billion.”

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Source: Glassnode

After the Merge went live, it did not trigger a bullish momentum in the Ethereum network as anticipated. The second-largest cryptocurrency was down by 9.69% in the last 24 hours to hit $1,458 during intraday trading, according to CoinMarketCap.

Therefore, Ethereum needs to hold the current level to avoid a slip to $1,000. Market analyst Matthew Hyland stated:

“Ethereum is currently sitting on the neckline of the Head and Shoulders pattern Breakdown Target: $1000.”

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Source: TradingView/MatthewHyland

Therefore, time will tell how Ethereum plays out in the post-Merge era.

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The Merge Begins, ETH’s Weekly Social Engagements Increase by 53%

by Blockchain News

The much-anticipated Ethereum merge is set to see the light of day is about to begin, according to a Google countdown. 

With the crypto community waiting with bated breath to see how this event transpires, given that it’s the biggest software upgrade on the Ethereum network, the second-largest crypto was hovering around $1,603 during intraday trading. 

The merge is significant because it will transition the current proof-of-work (PoW) infrastructure to a proof-of-stake (PoS) consensus mechanism, deemed more environmentally friendly and cost-effective. 

Social engagements on the Ethereum network have also been going through the roof, with the weekly surge being 53.3%, according to market insight provider LunarCrush. 

Furthermore, ETH’s speculative activity has increased. Crypto insight provider Glassnode pointed out:

“Ethereum speculative action continues, with over $6.12B in outstanding Open Interest for Call Options. Put options account for a much smaller $1.5B, making for a Put/Call Ratio of 0.25.”

American multinational investment bank Citigroup or Citi recently pointed out that the Merge would slash the overall Ether issuance by 4.2% annually, making it deflationary, Blockchain.News reported. 

Meanwhile, crypto traders have been significantly shorting Ethereum relative to Bitcoin (BTC) in anticipation of the Merge. Glassnode explained:

“The spread between BTC and ETH perpetual futures funding rates is pushing to a new ATH of 77% annualized. This indicates traders are heavily short ETH relative to BTC, likely speculating/hedging for the upcoming Merge.”

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Source: Glassnode

Therefore, time will tell how Ethereum plays out in the post-merge era, with stakes high that it will become a deflationary asset.

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The Merge Begins as ETH’s Weekly Social Engagements Jump by 53%

by Blockchain News

The much-anticipated Ethereum merge is set to see the light of day is about to begin, according to a Google countdown. 

With the crypto community waiting with bated breath to see how this event transpires, given that it’s the biggest software upgrade on the Ethereum network, the second-largest crypto was hovering around $1,603 during intraday trading. 

The merge is significant because it will transition the current proof-of-work (PoW) infrastructure to a proof-of-stake (PoS) consensus mechanism, deemed more environmentally friendly and cost-effective. 

Social engagements on the Ethereum network have also been going through the roof, with the weekly surge being 53.3%, according to market insight provider LunarCrush. 

Furthermore, ETH’s speculative activity has increased. Crypto insight provider Glassnode pointed out:

“Ethereum speculative action continues, with over $6.12B in outstanding Open Interest for Call Options. Put options account for a much smaller $1.5B, making for a Put/Call Ratio of 0.25.”

American multinational investment bank Citigroup or Citi recently pointed out that the Merge would slash the overall Ether issuance by 4.2% annually, making it deflationary, Blockchain.News reported. 

Meanwhile, crypto traders have been significantly shorting Ethereum relative to Bitcoin (BTC) in anticipation of the Merge. Glassnode explained:

“The spread between BTC and ETH perpetual futures funding rates is pushing to a new ATH of 77% annualized. This indicates traders are heavily short ETH relative to BTC, likely speculating/hedging for the upcoming Merge.”

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Source: Glassnode

Therefore, time will tell how Ethereum plays out in the post-merge era, with stakes high that it will become a deflationary asset.

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CME Group Rolls Out Ether Options for Upcoming Merge

by Blockchain News

CME Group, a leading derivatives marketplace, has launched the options of Ether futures, given that the much-anticipated merge has been pushing demand.

Tim McCourt, the global head of Equity and FX products at CME Group, pointed out:

“As market participants anticipate the upcoming Ethereum Merge, a potentially game-changing update of one of the largest cryptocurrency networks, interest in Ether derivatives is surging.”

Since the merge is slated for September 15, CME Group intends to offer more flexibility with the Ether options. Leon Marshall, the global head of sales at Genesis, stated:

“The launch of the new Ether options contract ahead of the highly anticipated Ethereum Merge provides our clients with greater flexibility to trade and hedge their Ether price risk.”

The merge is anticipated to be the largest software upgrade in the Ethereum ecosystem because it will change the consensus mechanism from proof-of-work (PoW) to proof-of-stake (PoS).

Therefore, the new options will complement CME Group’s Ether futures, which have recorded a 43% surge in average daily volume year-over-year. 

Rob Strebel, the head of relationship management for DRW, said:

“As ether transitions through the anticipated merge this week, we expect we’ll continue to see strong demand for this Ether options contract.”

Since the Ethereum merge has been awaited with bated breath by the crypto community, the network’s speculative action has skyrocketed, Blockchain.News. The open interest shown in the ETH network highlighted that buying pressure outweighed selling. 

On the other hand, a hard-fork mechanism is expected to be deployed within 24 hours after the merge. 

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CME Group to Launch Options on Ether Futures

by Blockchain News

CME Group, a derivatives marketplace based in Chicago, announced on Thursday that it will launch options on Ether futures on September 12 amid pending regulatory review.

CME said such new contracts will deliver one Ether futures, sized at 50 Ether per contract, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether.

The Ether options offerings will expand CME Group’s existing suite of crypto options contracts, including Bitcoin options and micro-sized Bitcoin and Ether options.

Tim McCourt, Global Head of Equity and FX Products, CME Group, commented about the development: “The launch of these new options contracts builds on the significant growth and deep liquidity we have seen in our existing Ether futures, which have traded more than 1.8 million contracts to date.”

McCourt said as the crypto market approaches the highly awaited Ethereum Merge next month, CME continues to see market players turning to the company to manage Ether price risk.

The launch of the new options is supported by market participants who are seeking to provide their customers with wider hedging options within the crypto landscape.

Sam Newman, Digital Assets Head of Brokering at TP ICAP, said: “With the upcoming Ethereum protocol merge, we expect this new contract to see significant interest from both our traditional customers as well as crypto native clients.”

Ryan Duckworth, head of trading at US-based Akuna Capital Head of Trading, also commented: “As the demand for crypto derivatives increases, we look forward to providing liquidity to allow customers to hedge risk and manage exposure to Ether.”

CME disclosed that its standard- and micro-sized Ether futures contracts have witnessed tremendous growth and continue offering consistent customer liquidity, volume, and open interest.

The firm experienced record daily volumes of Ether futures trading in July, with trading volumes in the second quarter surging 27% over the first quarter.

 Responding to Needs of New Customers

The latest launch aims further to expand CME Group’s suite of cryptocurrency derivatives offerings.

Early this month, CME launched Bitcoin Euro and Ether Euro futures. In March, the firm launched Micro Bitcoin and Micro Ether futures options.

Such product launches are parts of efforts by CME to provide a broad range of market players – from institutions to sophisticated, active, individual traders – with greater flexibility and precision to manage their exposure to the two major cryptocurrencies by market cap.

Such a wide variety of global products are an important step in the growth of a thriving marketplace for institutions and sophisticated investors who want crypto exposure in a regulated environment.

The smaller contract sizes give investors and traders greater flexibility in participating in crypto markets with less upfront cost while opening the market up to new participants.

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Bitcoin (BTC) $ 38,802.40 0.11%
Ethereum (ETH) $ 2,106.07 0.72%
Litecoin (LTC) $ 71.72 0.27%
Bitcoin Cash (BCH) $ 225.63 0.45%