Daily Market Update - August 21, 2020- yEARN project audits: No Guarantee Safe

$BTC 24 Hour High $11,900.41 $BTC 24 Hour Low $11,710.06 $BTC +0.39%

$YFI breaking all sorts of milestones, reaching places that $BTC took almost four years to achieve, all in the span of 9 days (Beware). The most recent pump can be attributed to its yInsure alongside FOMO panic buying. yEarn’s creator says that recent audits don't necessarily indicate that the project is 100% safe as seen with the YAMs situation last week. As demand increases for yFi, with supply capped at 30,000 coins and 29,962 in circulation, some analysts expect prices to continue to climb whilst supply remains constrained. YFI/BTC at 1.23 currently and trading at 14,500 levels, gaining 181% over the past seven days.

  • Overall digital asset market cap increasing by 1.2% to $3.74B,

  • $BTC markets stagnant, with physical moving slightly at +0.39% overnight and just +0.8% over the week in comparison to the action over in the DeFi sector. Physical volumes at $43.7B, down 7.5% overnight. Trading range between 200, trading at neutral RSI levels right now on the middle Bollinger bands with psychological resistance at $12,000.

  • $BTC futures didn’t fare any better with aggregated volumes falling back below $10B, a -50% decrease compared to the past 3 days. No major liquidations to note. OI plateauing around 5B aggregated across top exchanges.

  • $ETH down 8% after going down 4 out of the past five days, trading at 411 levels right now after failing to break 450 resistance set on the 17th as Vitalik mentioned openly that ETH 2.0 deployment is more challenging than expected. Next support levels at 408 and 403, ETHBTC declining 7% from 0.037 highs to 0.034 this week. Mining fees at 107 Gwei.

  • Desk seeing overall volumes decrease on the $BTC and $ETH, consistent with current market trends.

  • USDT markets saw its arb disappear in Asia; payment provider flows at 40% of observed capacity. Just yesterday we saw 1B USDT burned at the Tether Treasury as reported by Whale Alert

Alts and DeFi watch:

  • DeFi market cap at $14.4b @ 3.8% of global digital asset market cap

  • $LINK continued to slide for the 6th consecutive day, currently at 15 after topping at 20 before $YFI took off and pushed volumes towards that direction. Next support level at 14.63 levels. Expecting $LINK to drop a bit further down until $YFI cools off with its DeFi dominance sliding 3% to 40.4%.

  • $XTZ also unable to withstand the YFI DeFi selling pressure after dropping 17% from month highs of 4.50. Still trying to regain volumes to push it above 4 on the next move up. Currently still trading at neutral RSI levels and in the middle of Bollinger bands.

Around the World in Crypto:

Following the historic CNY settlement of iron ore with Australia back in May, there have been a plethora of rumblings about test launches of payment rails, trades, system enhancements being powered by blockchains, crypto assets and smart contracts. It should not be a surprise to anyone if the uptake on the to-be-launched Chinese DCEP is smooth sailing. And while Americans remain busy with the upcoming presidential election, hopefully moving forward digital asset policies do not slip down lawmakers’ agenda amidst all of the other grievances and fixes the nation needs. However, that's not to say nothing is being done, Walmart has inked a deal with StormX launching a crypto-back rewards service because everyone loves collecting them stamps. Cryptomom had a more serious proposition as she revealed collaborations between the Fed and MIT just weeks into her second term. Additionally, Congressman Tom Emmer worked with the Chamber of Digital Commerce PAC to host a cryptocurrency townhall. Still, there is much catchup to be done as China expands pilot programs to Tianjin, Hebei and its capital, Beijing. And given the hostility that the rest of the world faces being at the whims of the American correspondent banks in the SWIFT network, it might not be too far-fetched a possibility that much of the clearing moves to European fiat rails given they’ve been pumping out much more level-headed reactions to the events of late. The European Council has also continued with their research in stablecoins and CBDCs and while the ECB tends to shadow the Fed’s policy actions the rate of inflation has been much tamer. 

More luminaries have joined the choir.  The latest to sing the hymns of digital assets are former Prudential Securities CEO George Ball advocating the “safe haven” while Jim Rogers laments  not having picked up on bitcoin earlier.  Money speaks louder than all, and one of the OGs Pantera’s discloses a $165M raise, 3x the amount they clocked with their previous fund last year. 

Some scathing accusations surfaced against mining company Layer1. First with a lawsuit claiming patent infringement and now accusations of falsely representing team members that were actually not part of the team... that’s a bit awkward.  

Also a sobering reminder from the UK as the NCSC reveals having removed over 300K spam URLs that we have a long way to go. And while Goldman Sachs has many baffled as to what the intention is in hiring a Head and VP of digital assets, after comparing $BTC to tulips, they might want to have a look at $YFI which after having launched their insurance platform, powered on to surpass $BTC in price…

Other news:

  • Litecoin ($LTC) tacks +10.4% for the week after pulling back from highs ahead of mimblewimble testnet launch guided Sept. 

  • Chainlink ($LINK) fades from ATHs despite uptake in oracle contributors

  • Grayscale reports $217M inbound following ingenious TV campaign  

  • Bitcoin network hashrate dips 15% on speculation of impact from floods 

  • Algorand ($ALGO) joins the DeFi bandwagon as they roll out “stateful” smart contracts.

  • Retail investors contribute additional $200M into Yam Finance after a fatal error was discovered. 

  • Binance USD ($BUS) received approved for listing by the DFS

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