A curated weekly summary of forward-focused crypto news that matters
It was a positive week in the crypto markets with many large-cap assets enjoying healthy gains. The Bitcoin price rose by ~2%, while the Ethereum Price and XRP Price both moved up at 10% and ~4% respectively. The overall crypto market cap for all coins was up ~5%.
Major crypto news this week was fees on the Ethereum network skyrocketing – with daily fees hitting an all-time high of ~USD 6.8 million on August 13th. Data from Glassnode suggests that stablecoin transfers, increasing demand to use decentralized finance and exchange applications, and the use of smart contract-based arbitrage bots are contributing factors to the surge in demand for transactions on the Ethereum platform. The congestion led to higher than average fees and long wait times for users over the last week.
Last week the Nasdaq publicly traded business intelligence firm Microstrategy Incorporated (MSTR) announced it had purchased 21,454 bitcoins at an aggregate purchase price of $250 million, inclusive of fees and expenses. “Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” explained company CEO Michael Saylor.. “This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.” The investment makes Bitcoin the main reserve asset in its treasury. Microstrategy currently has a listed market capitalization of USD1.42 Billion.
Saylor said the firm’s decision to invest in Bitcoin was driven by several factors including economic and health concerns driven by the spread of the COVID19 virus, unprecedented global political and economic uncertainty, and emerging government financial stimulus measures such as quantitative easing. He suggests that these factors have the potential to have a significant depreciating effect on the long term value of fiat currencies and many other conventional asset types.
The growth in institutional investment interest in Bitcoin as a hedge during times of economic uncertainty has been a narrative throughout the year. In May, Wall Street hedge fund manager Paul Tudor Jones revealed that the Tudor group investment corporation holds a Bitcoin (BTC) futures contract position.
Jones commented, “I’m not a millennial investing in cryptocurrency, which is very popular in that generation, but a baby boomer who wants to capture the opportunity set while protecting my capital in ever-changing environments.”
Crypto news for the week ahead
August 17th – Numeraire (NMR) token begins trading on Coinbase Pro. Numeraire is the token that powers Numerai, a hedge fund that crowdsources machine learning to make investments in stock markets around the world. On Monday, August 17th, Coinbase Pro will begin accepting inbound transfers of NMR. Once a sufficient supply of NMR has been reached, trading on the NMR-USD, NMR-BTC, NMR-EUR, and NMR-GBP order books will launch in four phases, transfer-only, post-only, limit-only and full trading. The value of the NMR token has surged by ~167% in the last week.
August 17th – SXP airdrop to BNB holders. On Monday, a program will begin airdropping Swipe (SXP) tokens to BNB holders on Binance. A total of 4,000,000 SXP tokens will be airdropped to BNB holders over a 12 week period. The tokens will be allocated weekly based on each users’ average daily BNB holdings in each respective week. Users must hold a weekly average of at least 0.1 BNB or more in order to qualify for these rewards. The value of SXP tokens has risen by 42% in the last year. More Swipe news here.
Top 10 Crypto Summary
It was a strong week for large-cap assets in the Brave New Coin market cap top 10 with many assets enjoying healthy gains. Platform token EOS was one of the week’s largest gainers as EOS creators Block.one officially launched the Voice Social platform for public posting. The application pitches itself as a decentralized, anti-censorship alternative to Facebook, Twitter, and Medium, and it rewards users for posting stories with crypto. Users included in the site’s beta launch have been able to invite friends to join the app, while public posts are now available for anyone to see.
Bitcoin Price Chart
It was an up and down week in the BTC markets with the Bitcoin price recovering after falling to near the US$11,200 on Wednesday. Brave New Coin lead analyst Josh Olszewicz suggested in a recent twitter post that the asset currently holds a bullish bias with price above its 20-day moving average.