Ethereum Price Analysis – DeFi apps continue to lock up the asset

The ETH project was proposed by Vitalik Buterin in 2013. Other co-founders include Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, …

Ethereum (ETH) is a distributed ledger and decentralized computing platform with smart contract capabilities. The crypto asset is currently second on the BraveNewCoin market cap table, with a market cap of US$41.12 billion and US$1.73 billion in trade volume over the past 24 hours.



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The ETH project was proposed by Vitalik Buterin in 2013. Other co-founders include Anthony Di Iorio, Charles Hoskinson, Mihai Alisie, Amir Chetrit, Joseph Lubin, Gavin Wood, and Jeffrey Wilcke. An Initial Coin Offering (ICO) followed in 2014. The ICO raised nearly US$16 million, with each token selling for US$0.31. The ETH ICO would eventually become one of the most profitable in history.

The network mainnet went live in July 2015 with 72 million pre-mined coins, which currently accounts for 65% of the circulating supply. On Christmas day 2019, Wilcke sent 92,000 ETH, US$11.5 million, to the Kraken exchange, presumably to sell. ETH was launched with no vesting schedule or lock-in period for the pre-mined coins.

Thus far, protocol upgrade milestones have included; Olympic in May 2015, Frontier in July 2015, Homestead in March 2016, Metropolis Part 1: Byzantium in October 2017, Metropolis Part 2: Constantinople in February 2019, Istanbul in December 2019, and Muir Glacier in January 2020.

Ethereum is upgraded through a series of Ethereum Improvement Protocols (EIPs), which are then bundled into each hard fork. The Github repository for EIPs has been extremely active since January 2019.

Ethereum Price Analysis 17 Sep 2020 (1)

Source: Github – EIPs

In total, almost 1,000 developers have contributed a cumulative 28,300 commits to the ETH project in the past year, across 241 Github repos. Most of the commits over the past year have occurred in the Solidity repo, the programming language used to write smart contracts on Ethereum.

Ethereum Price Analysis 17 Sep 2020 (2)

Source: Github – solidity

An adjacent protocol overhaul, Serenity, is currently in development and includes a full

rewrite and redesign, which will result in Ethereum 2.0. Phase zero of the herculean task could launch as early as November this year. Both versions of ETH will exist concurrently for some time before a migration is completed. Danny Ryan, Justin Drake, and Vitalik Buterin have the most commits in the ETH 2.0 repo.

Overall, ETH related repos have had more commits than any other crypto project over the past year. In December, Buterin released an alternative proposal for merging ETH 1.0 to ETH 2.0 on an accelerated schedule and less re-architecturing. Buterin also explained earlier this year that the “initial deployment of ethereum’s layer 2 scaling strategy has basically succeeded” and needs further refinement and deployment.

Ethereum Price Analysis 17 Sep 2020 (3)

Source: GitHub – eth2.0-specs

ETH 2.0 includes Sharding and Casper, which will drastically alter the network. Sharding refers to a scaling solution for horizontally partitioning data within a database. The full implementation of Casper, slated for release in 2022, will remove Proof of Work (PoW) from the network and replace it with Proof of Stake (PoS), with a block reward at 0.22 ETH/block. Currently, there are no plans to cap the total amount of ETH created.

Ethereum Price Analysis 17 Sep 2020 (4)

Source: Hsiao-Wei Wang

While the network is still PoW based, Programmatic PoW (EIP 1057) was also being discussed as a poison pill to reduce ASIC mining on a network by increasing the efficiency of GPU and FPGA mining. ProgPoW is only likely to be implemented if future hash rate increases are driven by ASICs. Bitmain, Innosilicon, and PandaMiner all have at least three ASIC miners available for the EtHash algorithm, while a new ASIC mining chip from a fourth mining company, Linzhi, was released in October 2019.

If implemented, EIP 1057 will make all current Ethash ASICs unable to mine the chain. Those using Ethash ASICs may choose to continue mining the pre-fork chain. Another possibility is that ASICs will be used to mine the Ethereum Classic (ETC) chain, which also uses the Ethash algorithm. In any case, the goal of decreasing ASIC use on the ETH chain will be successful, although likely temporary.

At US$0.04/KWh, all of the currently available Ethash ASICs are profitable. Mining profitability has increased dramatically since March, recently reaching a two-year high. However, if ETH prices fall, hash rate will likely decline.

Ethereum Price Analysis 17 Sep 2020 (5)

Source: asicminervalue

Hash rate (solid line, chart below) has steadily increased from January lows. Difficulty (dashed line, chart below) had risen steadily since April 2019, becoming disconnected from hash rate in October. This rise in difficulty despite a fall in hash rate is coded into Ethereum and known as an Ice Age, or difficulty bomb, which has activated twice before on Ethereum, once in 2017 and once in late 2018.

The most recent Ice Age was meant to serve as a transition from ETH 1.0 to ETH 2.0 and phase out PoW mining completely. However, because ETH 2.0 was not ready for deployment, the Ice Age was pushed back another four million blocks, to block 13.2 million, via a hard fork on January 2nd.

Ethereum Price Analysis 17 Sep 2020 (6)

Source: BitInfoCharts

Average block times are currently 13 seconds with blocks per day (line, chart below) currently at an all-time high. There are approximately 112.6 million ETH in circulation with inflation per annum currently at 4.40% (fill, chart below), which sits near an all-time low. Despite record fast block times, pending transactions have been ranging above 150,000 over the past few weeks, with only a few smart contracts accounting for most of the transactions.

Ethereum Price Analysis 17 Sep 2020 (7)

Source: CoinMetrics

Tether (USDT) was originally issued on the OMNI chain in 2015, but has been aggressively swapped to an ERC-20 token over the past year. In total, nearly 67% of all circulating USDT is now on the ETH chain. ERC-20 transfers are both cheaper and faster than OMNI transfers, thus many exchanges have added the option for ERC-20 USDT in recent months.

ERC-20 USDT transactions per day and average transaction values have quickly surpassed OMNI transactions per day and average transaction values. ERC-20 USDT transactions per day are now 33x OMNI USDT transactions per day. ERC-20 transfers also account for 18% of all daily transactions on ETH currently.

Ethereum Price Analysis 17 Sep 2020 (8)

Source: CoinMetrics

The Ethereum network currently has 8,900 active network nodes, 27% of which are located in the United States and nearly 68% of these nodes are running through Cloud hosting services. Due to the somewhat cumbersome hardware and time requirements of running a node, many of these nodes are run by Infura, or similar node servicers, who provide access to the network for developers. These services have become increasingly important as the blockchain continues to grow.

Nodes have several sync modes, with fast sync requiring approximately 460 GB of storage and a full archival node requiring over 5.17 TB of storage. A full node stores a snapshot of the entire network in every contract at every point in time. To contrast, a Bitcoin full node requires just over 349 GB of storage.

Ethereum Price Analysis 17 Sep 2020 (9)

Source: Etherscan

The average number of on-chain transactions per week (line, chart below) is currently 1.05 million, down from the mid-August high of 1.23 million. This remains up from a multi-year low of 430,000 in February 2019, but slightly down from the record high of 1.24 million on January 9th, 2018.

Average weekly transaction fees (fill, chart below) are now US$3.71, down from the US$4.44 all-time high. In June, fees were heavily skewed thanks to two transactions which sent $2.6 million each in fees, likely related to a gas extortion attempt or white hat hack of a Ponzi scheme. However, fees on ETH had been rising significantly over the past two months even before these two transactions were sent and have continued to rise since early June.

In September 2019 and June 2020, miners voted to increase gas limits by 25% (bottom chart, below), which has alleviated some fee pressure. Gas limits are once again near maximum capacity, increasing the possibility of further increases in the Gas ceiling.

Ethereum Price Analysis 17 Sep 2020 (10)

Source: CoinMetrics

Ethereum Price Analysis 17 Sep 2020 (11)

Source: Etherscan

The 30-day network value to estimated on-chain daily transactions (NVT) ratio (line, chart below) is currently 48 and falling. A clear uptrend in NVT suggests a coin is overvalued based on its economic activity and utility, which should be seen as a bearish price indicator, whereas a downtrend in NVT suggests the opposite. An NVT holding below 30 would likely signify bullish market conditions, as was the case from April 2017 to May 2018. NVT does not take factor in most DeFi-related transactions.

Monthly active addresses (MAAs) are currently 460,000, down from 525,000 in late August (fill, chart below). MAAs are up from a yearly low of 192,000 in February, but slightly down from an all-time high of nearly 610,000 in January 2018. Overall, MAAs remain above levels seen throughout 2017 and earlier. Unique addresses continue to grow at a rapid rate, and are just over 114 million (not shown). However, addresses can only be added to the network, and are never deleted.

Ethereum Price Analysis 17 Sep 2020 (12)

Source: CoinMetrics

The month of May 2019 marked an almost 12 month high for ICO funding, thanks to Bitfinex’s non-ETH token raise, LEO. At the same time, Initial Exchange Offerings (IEO), where crowdsales are facilitated by an exchange, are also increasing in popularity. However, these IEOs typically do not use ETH or have a native blockchain.

Globally, ICOs are increasingly moving away from public sales, likely due to fear of regulatory reproach and a shifting regulatory landscape. 2018 saw the highest number of ICOs, at 1,075, and the largest USD sum raised in one year, at US$21.48 billion. In 2019, over 120 token sales ended, raising a total of US$3.265 billion. In contrast, the total USD raise in January 2018 was US$2.81 billion.

Ethereum Price Analysis 17 Sep 2020 (13)

Transparent ICO treasury balances have reduced significantly from 2018 to present, both in USD value and in ETH quantity. May 2019 saw outflows totaling over 327,000 ETH, the largest of the entire year. In 2019, ICOs withdrew 1.24 million ETH and continued to hold just under one million ETH.

Since January 2020, ICOs have withdrawn nearly 960,000 ETH with Aragon, Kyber, Monetha, Mysterium, SingularDTV, Gnosis, and Status all withdrawing at least 10,000 ETH from their respective treasuries in January alone. Request (REQ) withdrew 15,000 ETH earlier this year. DigixDAO stakeholders also approved a measure to return all treasury funds to investors, which occurred in Q2 this year.

Over the past few months, Gnosis withdrew 98,000 ETH and Monolith withdrew 44,000 ETH. The three largest remaining treasuries are Golem, Polkadot, and iExec RLC at 333,000 ETH, 306,000 ETH, and 107,000 ETH, respectively. Polkadot’s funds were frozen in November 2017 when a bug was executed which deleted a code library for the Parity multi-sig wallet.

Ethereum Price Analysis 17 Sep 2020 (14)

The top Ethereum based dapps over the past month, ranked by volume, are led by DeFi and exchange dapps. These ETH dapps also dominate volume metrics when compared to other chains, including Tron and EOS. Uniswap also has the most reported users over the past month at 187,000.

Overall, ETH has a considerably lower number of users and transactions compared to other dapp platforms like EOS (EOS) and Tronix (TRX), both of which have no transaction fees. In February 2019, Twitter user Kevin Rooke pointed out that of the 1,375 ETH dapps, 86% had zero users and 93% had zero transaction volume. There are currently 1,997 dapps listed on dappradar, 90% of which have zero reported users or transaction volume in the past week.

Ethereum Price Analysis 17 Sep 2020 (15)

Source: DappRadar

The Decentralized Finance movement, or DeFi, has increasingly gained in popularity with the total ETH held in DeFi currently at 4.5 million ETH or US$6.38 billion. Lending and so-called “yield-farming” dapps, like Compound, have seen the biggest influx of money as their products began to provide a return for users. The Maker DAO, which uses collateralized debt positions to back the semi-stablecoin Dai and Sai, currently holds around 23% of all ETH in the DeFi ecosystem.

Several DeFi incidents this year highlight the need for robust DeFi infrastructure and testing. bZx, the fifteenth-largest DeFi protocol with over US$2.5 million worth of funds locked currently, lost US$350,000 and US$645,000 worth of ETH in two separate exploits related to flash loans and price oracle manipulation. To remedy the exploit, bZk absorbed the losses and directed future cash flows to an insurance fund until the outstanding debt is paid. The proctol had a similar incident earlier this month resulting in a US$1 million loss.

Maker DAO also experienced a US$4.5 million loss this year following a price feed delay. Maker DAO has since added USDC as collateral and MKR governance tokens were diluted and auctioned to raise funds to cover for the shortage. The loss has now been fully paid.

Ethereum Price Analysis 17 Sep 2020 (16)

Source: DefiPulse

Worldwide Google Trends data for the term “Ethereum” spiked in July 2019 and February 2020, which matched a swift increase in price. Worldwide Google Trends data for the terms “ Defi Crypto” and “Yield Farming” have increased massively in recent weeks.

Overall, searches for “Ethereum” remain down significantly from early 2018. A slow rise in searches for “Ethereum” preceded both highs in June 2017 and January 2018, likely signaling interest from new market participants at that time.

A 2015 study found a strong correlation between the Google Trends data and BTC price, while a May 2017 study concluded that when the U.S. Google “Bitcoin” searches increased dramatically, BTC price dropped.

Ethereum Price Analysis 17 Sep 2020 (17)

Source: Google Trends – “Ethereum”

Ethereum Price Analysis 17 Sep 2020 (18)

Source: Google Trends – “Defi Crypto”

Ethereum Price Analysis 17 Sep 2020 (19)

Source: Google Trends – “Yield Farming”

Technical Analysis

The current ETH/USD spot price is down 74% from the all-time high set in January 2018 and up 238% from the March 2020 lows. Most crypto assets have held an 80%+ correlation with one another from Q4 2019 to Q2 2020. Over the past few months, these correlations have decreased significantly with ETH outperforming most other assets, except for ADA and LINK. These correlations tend to decrease in a bullish market and increase in a bearish market.

Ethereum Price Analysis 17 Sep 2020 (20)

As a potential bullish trend resumes, roadmaps for future market movements can be found on high timeframes using Exponential Moving Averages, Volume Profile Visible Range, Pitchforks, Ichimoku Cloud, and divergences. Further background information on the technical analysis discussed below can be found here.

On the daily chart for the ETH/USD pair, the 50-day Exponential Moving Average (EMA) and 200-day EMA Golden Cross on February 11th was quickly followed by a bearish Death Cross on March 19th. On May 6th, these key EMAs re-crossed bullish, suggesting the 200-day EMA at US$284 will now act as support.

Based on the Volume Profile Visible Range (VPVR – horizontal bars, chart below), the current spot price now sits just above the US$300 volume node and below the US$467 volume node. Yearly Pivots, or mathematical support and resistance based on the highs and lows of the previous year, also sit at US$290 and US$460. Additionally, there are no bullish or bearish divergences on volume or RSI at this time.

The long/short open interest on Bitfinex (top panel, chart below) is currently 95% long with long positions continuing to push new all-time highs over the past few weeks. A significant price movement downwards will result in an exaggerated move further, as the long positions will continue to unwind. This is known as a “long squeeze.” However, Bitfinex long/short ratios have historically had little bearing on Ethereum price action.

Ethereum Price Analysis 17 Sep 2020 (21)

This market has also potentially established a new bullish Pitchfork (PF). Once the trend is defined, the spot price will continually attempt to return to the median line (yellow), currently at US$319. A bullish PF is invalidated once the spot price falls below the lowest support, currently at US$131. The uppermost resistance currently sits at US$777.

Ethereum Price Analysis 17 Sep 2020 (22)

Turning to the Ichimoku Cloud, four metrics are used to indicate if a trend exists; the current price in relation to the Cloud, the color of the Cloud (red for bearish, green for bullish), the Tenkan (T) and Kijun (K) cross, and the Lagging Span. The best entry always occurs when most of the signals flip from bearish to bullish, or vice versa.

The status of the current Cloud metrics on the daily time frame with doubled settings (20/60/120/30), for more accurate signals, are bullish; the spot price is above the Cloud, the Cloud is bullish, the TK cross is bullish, and the Lagging Span above the Cloud and above the current spot price. Kijun support currently sits at US$361. The trend will remain bullish so long as price remains above the Cloud.

Ethereum Price Analysis 17 Sep 2020 (23)

Lastly, on the two-day ETH/BTC chart, trend indicators are bullish with price above the 50-period and 200-period EMAs, as well as above the Cloud. The spot price is now holding near the 0.034 BTC yearly pivot with a resolved bearish divergence on volume and RSI. Strong VPVR support sits in the 0.03 BTC zone. Further upside will likely find resistance at the VPVR and psychological level of 0.05 BTC. ETH/BTC open interest on Bitfinex is 99% long (not shown).

Ethereum Price Analysis 17 Sep 2020 (24)

Conclusion

On-chain fundamentals including hash rate, transactions per day, and daily active addresses, have increased since January, and are now up significantly from year-end 2019 lows. The ProgPoW consensus algorithm change is not likely coming this year, a change that would drastically alter the current Ethash mining landscape. Although ETH 2.0 is still in the early stages of development, the new protocol is actively being discussed, debated, and coded, with a phase zero release slated for as early as November this year.

The amount of ETH locked in DeFi apps has increased significantly over the past year as ETH held by ICO treasuries continued to decrease, potentially providing a new avenue to decrease the circulating ETH supply. New ICOs on the ETH chain have trended toward zero throughout 2019 and early 2020. As DeFi usage increases, on-chain metrics need to be retooled to better represent and include smart contract activity, such as Dai and Sai transfers. NVT, an inverse metric of economic utility, is currently decreasing slightly, despite significant DeFi activity.

Technicals are bullish for the ETH/USD pair based on current trend metrics, as the spot price is currently above both the 200-day EMA and the daily Cloud. Over the next few months, a target of US$750 is likely based on VPVR, yearly pivots, and a newly established bullish pitchfork.

Technicals for the ETH/BTC pair are neutral to bullish based on trend metrics, as the spot price is currently above the 400-day EMA and above the two-day Cloud. In the near term, the spot price will need to cleanly breach resistance and consolidate near the 0.03 BTC level. Overall, this may lead to the first sign of bullish continuation for the pair since ICOs peaked in mid 2018.

Tezos Blockchain Tipped to Help Develop France-Backed Digital Euro

The Tezos blockchain has been chosen by the French investment bank Societe Generale, one of the eight partners chosen by Banque De France for its …

With the Bank of France making its intentions to test out its digital currency in 2020, the selection of Tezos is one of the bank’s proactive measures in this regard.

The Tezos blockchain has been chosen by the French investment bank Societe Generale, one of the eight partners chosen by Banque De France for its Central Bank Digital Currency drive, as the favorite to help power the proposed digital Euro.

Per the press release from Nomadic Labs, a functional research and development center in the Tezos ecosystem, the Societe Generale-Forge chose Tezos to be part of the preliminary experiments towards the launch of the digital Euro drawing from the blockchain’s functionalities as well as the strong technical fundamentals of the Tezos blockchain.

President of Nomadic Labs, Michel Mauny noted that:

“The Tezos project, strengthened by its technical capabilities, its adaptability, and its strong community, is already present in various projects, both in France and abroad. We are especially pleased to see this technology selected by Societe Generale – Forge, and to reaffirm, once again, that the quality and expertise of our engineering is rewarded.”

As detailed in the press release, the digital Euro experiment which is expected to draw from the technological capabilities of the Tezos blockchain team will explore the feasibility of financial securities being digitally settled and delivered in Central Bank Digital Currency. Per the report from Blockchain.news, the official release from the Bank of France stated that:

“These experiments also illustrate Banque de France’s commitment to innovation, which was recently chosen to host, with the Deutsche Bundesbank and the European Central Bank, a new joint innovation center in Europe within the framework of the Innovation Hub of the Bank for International Settlements.”

Why the Tezos Blockchain Was Favored

The Tezos blockchain is renowned for deploying smart contracts capable of modifying its own set of rules with minimal disruption to the network through an on-chain governance model. Unlike Bitcoin, Tezos does not rely on mining (Proof of Work) but instead utilizes a (delegated) Proof-of-Stake based consensus model.

Tezos’ on-chain governance prevents unnecessary splits by allowing token holders to vote for the developer’s proposal after an initial testing period during which the Tezos community examines and comments on the suggested upgrade. Tezos also uses a unique proof-of-stake model based on “liquid democracy,” a fluid cross-over between direct and representative democracy.

A subtle reason why the Banque de France backed Societe Generale must have considered the Tezos network may also lie on the fact that the Nomadic Labs has a French base which will make future collaborations easy.

With the Bank of France making its intentions to test out its digital currency in 2020 in a bid to debut a well-acclaimed digital euro, the selection of Tezos remains one of the apex bank’s proactive measures in this regard.

Other European nations including Italy, Lithuania, the Netherlands amongst others are also in the race to pioneer the debut of a functional digital Euro. The activities of most of these European countries however have not yet advanced to the testing phase as seen in the DCEP project of the People’s Bank of China.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Elrond (ERD) Trading and Staking to Go Live on Bitfinex

ERD deposits on Bitfinex to launch on August 17, 2020. According to an official statement by the project team, the native asset of the Elrond blockchain, …

Elrond (ERD), the high-scalable blockchain architecture, announced that its token will be listed on Bitfinex, the leading cryptocurrency exchange. Why is this novelty important?

ERD deposits on Bitfinex to launch on August 17, 2020

According to an official statement by the project team, the native asset of the Elrond blockchain, ERD, will be available on Bitfinex starting from August 17. Moreover, the staking environment for ERD will be added soon after.

Beniamin Mincu, CEO and founder of the Elrond network (ERD), emphasized the crucial importance of this listing for his product in terms of its further marketing and technical development:

We are excited to unveil this listing as part of a strategic plan to expand our ecosystem, which brings significant exposure and opportunities for Elrond. Enabling additional products in collaboration with Bitfinex, such as staking, will strengthen Elrond, and position it for accelerated growth after the mainnet launch.

The Elrond (ERD) team has also stressed that Bitfinex rarely enriches its toolkit of assets, since ERD is only the second token to be added on Bitfinex in 2018. That said, listing on such an exchange means that the product has reached sufficient maturity and credibility.

The upcoming ERD staking opportunity on Bitfinex looks very attractive for the PoS community. According to leading cryptocurrencies staking explorer Staking Rewards, Elrond (ERD) is among the Top 5 assets with the highest annual rewards.

ERD is top-five PoS asset by staking rewards

Image by Staking Rewards

Among the Top 5 assets, ERD has the highest market capitalization and the lowest share of tokens already frozen in staking environments.

Innovative approach to scalability

It is worth noting that the Elrond (ERD) blockchain is well known due to its excellent level of scalability and the very low latency of its operations. These are achieved by two important characteristics: Elrond (ERD) has an Adaptive State Sharding mechanism and Secure Proof-of-Stake (SPoS) algorithm consensus.

As a result, Elrond (ERD) can process up to 10,000 transactions per second with an average latency of five seconds and negligible transaction costs.

The creators of Elrond assure the community that it will be a reliable backbone for the permissionless internet economy.

Elrond’s Growth Continues as its Mainnet Launch Gets Closer

Elrond also uses a dedicated smart contract execution engine known as Elrond Virtual Machine (Elrond VM). Build on WebAssembly (WASM), …

Now that the Bull run appears to have started and the crypto world is looking at higher prices, there is a project that has shown incredible resilience to the downward trend of other DeFi projects: Elrond.

To learn more about the different reasons behind the current bull run, what to expect in the next days, Elrond, and Bitboy’s predictions for all of these, make sure to watch the latest youtube video:

The Bull run May be Here!

Bitcoin’s value skyrocketed on July the 26th by surpassing the $10k while Ether did the same with the $300 mark, which seems to indicate the start of the bull race that the crypto community has been expecting for a while.

With Bitcoin going further than expected and surpassing the $11k mark briefly and still being pretty close to it, most Decentralized Finance (DeFi) projects took a hard hit as a result of BTC’s pump with MakerDao being the most notable exception.

One of the DeFi projects who did not experience such a hit but thrived under the turmoil caused by the current conditions was Elrond.

Elrond is Aiming to Bring Scalability on Blockchain to a Whole New Level

The incredible growth and adoption this altcoin has experienced is the result of the massive potential and variety of uses cases the blockchain has to offer the crypto ecosystem.

Launched in July of 2019, Elrond was conceived as a public blockchain focused on providing great scalability, interoperability, and high throughput to create an alternative to centralized networks with better performance and privacy.

Elrond operates by using a combination of Shards, MetaChains, and Nodes, all of the components of the network’s structures that provide versatility and advantages at different levels.

In combination with the 3 different roles existing within the network (Validator, Observer, and Fisherman), the network provides a solution that eliminates energy and computational waste, scaling limitations, and security vulnerabilities.

Elrond’s Most Important Milestone Yet is Almost Here

As the launch of its mainnet approaches after 2.5 years of hard work from its development team, Elrond has been gaining increasing attention and support from investors which have reflected in its value ad market capitalization gains.

This milestone will mark the platform’s transition from experimental technology to a revolutionary and iconic technological advancement that Elrond’s team describes as “from Zero to One”.

The mainnet will be ready for launch on July 30th of 2020, with the last 4 weeks seeing the announcement of important partnerships that have boosted the platform’s exposure and growth.

The Elrond team announced the launch of the Genesis event in preparation for the mainnet release, which aims to attract validators by offering them rewards in by reopening the stacking program.

True Innovation Requires Creation

Elrond developed its own technology with this purpose in mind and called it Adaptive State Sharding, which in combination with a Secure Proof of Stake consensus algorithm provides users with the speed necessary to execute transactions efficiently.

Adaptive State Sharding takes into consideration the advantages of different sharding types: State, Transactions & Network. By combining these 3 types of sharding in an intelligent and adaptable manner, Elrond can improve communication between shards and increase performance by using parallel processing.

Secure Proof of Stake removes the necessity of using miners as in the case of Proof of Work algorithms, reducing the waste of computational power and increasing security by reshuffling nodes into other shards randomly.

Elrond also uses a dedicated smart contract execution engine known as Elrond Virtual Machine (Elrond VM). Build on WebAssembly (WASM), it allows developers to interact with it by using different languages such as Rust, C/C++, C#, and Typescript, providing ease of adoption and integration with other projects.

One Token to Rule the Network

Elrond is a project that has obliterated charts over the last month with the incredible growth of its native token: ERD.

The token goes beyond a mere medium of exchange between users and developers by allowing holders to participate in the governance of the network, staking, completing transactions, creating smart contracts, and receiving validator rewards.

ERD’s value experienced a massive increase in value with a gain of 1773% and a market cap gain of 2250% in the last 3 months.

The coin is currently in rank #37 by market capitalization according to CoinGecko just 180 days after being in the top 200, a climb backed by multiple events such as the Initial Exchange Offering in Binance and its listing in Crypto.com.

With ERD being listed in major exchanges and enabling users to trade, buy, and sell the native token in them, the ease of acquisition Elrond has been trying to provide users with was successfully achieved.

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Qiming Venture leads Series A in staking service startup

Chinese venture capital firm Qiming Venture Partners led a Series A in Hashquark, a Hong Kong-based staking service startup. Why it matters: The …

Chinese venture capital firm Qiming Venture Partners led a Series A in Hashquark, a Hong Kong-based staking service startup.

Why it matters: The investment signals that cryptocurrencies are increasingly becoming a viable sector for Chinese investors after years of mistrust.

  • The investment comes at the right time, as staking services are expected to boom with the launch of Ethereum 2.0 later this summer.
  • The world’s second most-popular blockchain network will be switching to a Proof-of-stake (POS) model. This will substitute mining for staking, expanding the market for staking providers.

Details: Hashquark is one of a few staking startups to receive funding from a traditional tech fund, Qiming said in a statement sent to TechNode on Wednesday.

  • Fenbushi Capital, Hashkey Capital, Hash Global, Imtokenventures, and SNZ also participated in the round. The total funding amount was not disclosed.
  • Hashquark is one of the top four staking providers in the world, offering services for 30 of the most popular Proof-of-stake tokens, including Cosmos, Tezos, Dash, and IRIS.
  • “The proceeds of the round will be used to strengthen our team and expand globally. This year is a critical time for the large-scale application of blockchain and digital finance,” said Leo Li, Hashquark’s founder and CEO.

Context: Qiming is an early-stage investor in Chinese tech companies. Some of its notable initial public offering (IPO) exits include Meituan Dianping, Xiaomi, and Bilibili.

  • As a staking-as-a-service infrastructure startup, Hashquark takes care of the technical aspect of staking for a fee. It collects POS tokens from its clients and stake them to become a validator on the corresponding POS chain. With every successful validation, Hashquark earns a reward from the chain, most of which it passes on to its clients.
  • Hashquark’s commission, at 10% to 30%, is far higher many of its competitors, according to staking data provider Stakingrewards.com.
  • Hashquark is a subsidiary of Hashkey Capital, one of Asia’s top blockchain and fintech investors.
  • It is one of the earliest partners of Polkadot, an inter-chain communication protocol that raised $43.3 million in a token sale on Tuesday and is a competitor to the Blockchain Services Network, an “internet of blockchains” project backed by the Chinese government.