Autor Cointelegraph By Martin Young

Green shoots? Institutional crypto funds see first inflows in 5 weeks

Green shoots? Institutional crypto funds see first inflows in 5 weeks

Uverejnil používateľ | jan 25, 2022 |

After five weeks of constant outflows, institutional investment is finally trickling back into crypto funds with BTC the asset of choice and ETH falling out of favor.In its weekly Digital Asset Fund Flows report published on Jan. 24, crypto investment firm CoinShares observed inflows for some institutional products.It is the first time in five weeks that there has been a net positive inflow as $14.4 million re-entered the space with investors buying the dip.The researchers reported that these inflows came during a period of significant price weakness, adding that this suggests investors “are seeing this as a buying opportunity” at current price levels. Capital continued to flow out from CoinShares own BTC fund, however, 21Shares and ProShares registered minor gains. Most of the inflows were for Bitcoin which had $13.8 million for the week. Ethereum was the biggest loser over the period with an outflow of $15.6 million, but the multi-asset products made up the balance resulting in a net overall inflow.CoinShares observed that the current seven-week run of ETH outflows now total $245 million “highlighting much of the recent bearishness amongst investors has been focused on Ethereum rather than Bitcoin.”Analyst Willy Woo also suggested it was early signs that institutional funds are starting to return:Early signs that institutional money is starting to come back in. pic.twitter.com/4P7d3Fmq4I— Willy Woo (@woonomic) January 24, 2022However, the total assets under management for the funds included in the report was $51 billion, its lowest level since early August 2021. The AUM has been depressed due to the falling value of the underlying assets over the past couple of months. There was no change in the world’s largest fund, Grayscale, which has $30.6 billion in AUM according to its latest update on Jan. 25, however, the fund was trading at a record discount of around 30%. Related: Bearish sentiment may soon abate according to Coinshares and Bitcoin metricsAnalysts and traders were looking for entry points following Bitcoin’s bounce and reclamation of $36K as reported by Cointelegraph.The asset plunged to a six-month low of $33K during late Monday trading according to Tradingview but has since recovered solidly with a 10% return to $36,276 at the time of writing. Should spot market momentum continue in this direction, weekly institutional inflows are likely to follow.

Čítaj viac
Ethereum EIP-1559 upgrade launches on Polygon to burn MATIC

Ethereum EIP-1559 upgrade launches on Polygon to burn MATIC

Uverejnil používateľ | jan 18, 2022 |

The Ethereum upgrade that introduced a partial network fee burning mechanism in August last year has launched on the layer-two scaling network Polygon. Ethereum’s EIP-1559 upgrade shipped with its London hard fork last summer and has been a success in terms of gas price predictability and network fee burning. The upgrade has now launched on the layer-two scaling network Polygon in an effort to improve “fee visibility”. It went live about an hour ago at block 23850000.The Polygon team announced the upgrade date on Jan. 17, following its successful deployment on the Mumbai testnet. The EIP-1559 upgrade introduces the same fee-burning mechanism to Polygon resulting in the destruction of MATIC tokens. It also removes the first-price auction method for calculating network fees which leads to better cost estimations but goes not reduce gas prices.“The burning is a two-step affair that starts on the Polygon network and completes on the Ethereum network.”The team stated that, just like Ethereum, the supply of MATIC is likely to become deflationary with 0.27% of the total supply being burnt every year according to estimations. There is a fixed supply of 10 billion MATIC tokens with 6.8 billion currently in circulation.“Deflationary pressure will benefit both validators and delegators because their rewards for processing transactions are denominated in MATIC,” it added before stating that the upgrade would also reduce spam and network congestion.Despite being a layer-two network, Polygon has suffered from its own gas crisis recently. Earlier this month, Polygon gas fees skyrocketed according to Dune Analytics resulting in some validators failing to submit blocks. The surge in demand was due to a DeFi yield farming game called Sunflower Land which rewarded early adopters before the degens lost interest. Related: Here’s how Polygon is challenging the limitations of EthereumSince going live on Ethereum around six months ago, the upgrade has resulted in the burning of 1.54 million ETH to date according to the burn tracker. At current ETH prices, this works out at around $5 billion. The tracker also predicts that Ethereum issuance will become deflationary by -2.5% per year once “the merge” happens and proof-of-stake becomes the primary consensus mechanism for the network.MATIC prices have dumped 9% on the day in a fall to $2.22 at the time of writing according to CoinGecko.

Čítaj viac
Thailand government to clear up crypto tax confusion

Thailand government to clear up crypto tax confusion

Uverejnil používateľ | jan 11, 2022 |

Thailand is fast-tracking its crypto tax plans as it readies regulations for digital asset traders this month in an effort to provide further clarity on crypto-related activities.The Thai revenue department’s director-general has stated that clear criteria for calculating taxes on crypto trading profits will be finalized this month.The statement comes less than a week after the Southeast Asian country’s government unveiled plans to levy cryptocurrency traders and miners with a 15% capital gains tax.Thai Prime Minister Prayut Chan-o-cha had instructed the revenue department to brainstorm the issue and provide clarification for investors and the public according to a Jan. 11 Bangkok Post article.The department has already been in discussion with the Bank of Thailand, the Securities and Exchange Commission, and the Stock Exchange of Thailand.On Jan. 9 the Thai Digital Asset Association contacted the revenue department seeking clarity on capital gains and withholding taxes according to local media. Association President Suppakrit Boonsat said:“Most cryptocurrency investors are ready to pay tax but are concerned whether their move will violate the Revenue Code,”The concern among some traders is that back taxes or penalties may be applied to profits and trades conducted in previous years. A government spokeswoman said there was no intention to hinder innovation and development in any industry, including fintech but warned that “If we rush to support [crypto trading] without a thorough understanding, there may be a crypto crisis, similar to a financial crisis.”The new tax would only be applicable to profits from traders and miners, not Thai digital asset exchanges, the largest of which are affiliated with commercial banks and billionaire business moguls. Heavy penalties could be imposed on those failing to comply with the new filing requirements. Related: Central bank tells Thai banks not to offer crypto tradingThe move follows a number of Thai central bank warnings to commercial banks and businesses regarding the acceptance of digital assets as payment methods.In December, the Bank of Thailand stated that it would draw up new measures to regulate crypto-related activities for individuals and businesses in what it termed “red lines” for the industry.However, the increased regulatory pressure on the industry goes against the Kingdom’s tourism ministry which aims to attract crypto whales and digital nomads to the country to help revive its pandemic battered tourism sector.

Čítaj viac
Arbitrum network suffers minor outage due to hardware failure

Arbitrum network suffers minor outage due to hardware failure

Uverejnil používateľ | jan 10, 2022 |

The Ethereum layer 2 network Arbitrum has suffered its second outage in less than five months following a hardware failure.Arbitrum is back online at the time of writing but the team did report some downtime during the late hours of Jan. 9. The timing of the tweets suggests that the network was down for around seven hours.At the time, the Offchain Labs platform reported that it was experiencing some issues with the sequencer which prevented transactions from being processed for the period. We are currently experiencing Sequencer downtime. Thank you for your patience as we work to restore it. All funds in the system are safe, and we will post updates here.— Arbitrum (@arbitrum) January 9, 2022On Jan. 10, Arbitrum released a post mortem explaining what had occurred to cause the brief outage. “The core issue was a hardware failure in our main Sequencer node,” it revealed, adding that backup Sequencer redundancies that would normally take control also failed due to an ongoing software update.The network is designed to fall back to layer 1 Ethereum to process transactions when it has its own Sequencer issues. However, it stated that efforts were made to make sure all transactions were confirmed by the Sequencer before going offline. A total of 284 transactions captured by the Sequencer were prevented from being posted to the Ethereum chain.This was a very minor outage in the grand scheme of things but the team did remind users that the network is still essentially in beta.“The Arbitrum network is still in beta, and we will keep this moniker as long as there are points of centralization that still exist in the system.”The team concluded that it was working on further decentralizing the network with a “twofold path of minimizing Sequencer downtime” that will be deployed in the coming weeks and months.In mid-September, Arbitrum suffered a similar Sequencer outage when a bug caused the system to get stuck after a large batch of transactions was executed over a short time frame.Related: Ethereum layer-two TVL reaches all-time highArbitrum is an Ethereum layer 2 network using Optimistic rollups to batch transactions for faster and cheaper processing. It was launched as Arbitrum One in early September following a massive $120 million funding round.According to layer 2 data platform L2beat, Arbitrum is the most popular layer 2 network at the moment with a total value locked of $2.57 billion giving it a L2 market share of 47%.

Čítaj viac
Vitalik proposes new ‘multidimensional’ Ethereum fee structure

Vitalik proposes new ‘multidimensional’ Ethereum fee structure

Uverejnil používateľ | jan 7, 2022 |

Ethereum co-founder Vitalik Buterin has put his thinking cap on again in an attempt to improve the current fee structure for the network.The proposal titled “Multidimensional EIP-1559” was laid out in a blog post on Jan. 5 in which Buterin noted that different resources in the Ethereum Virtual Machine (EVM) have different demands in terms of gas usage.He added that there are different limits for short-term “burst” capacity as opposed to “sustained” capacity within the EVM citing examples of block data storage, witness data storage, and block state size changes.“The scheme we have today, where all resources are combined together into a single multidimensional resource (‘gas’), does a poor job at handling these differences.”The problem is that channeling all the different resources into a single one leads to “very sub-optimal gas costs” when these limits are misaligned, he added.Buterin outlined his fairly complicated proposed changes with a lot of technical math, but in a nutshell, the proposal offered two potential solutions using “multidimensional” pricing.The first option would calculate the gas cost for resources such as call data and storage by dividing the base fee for each unit of resource by the total base fee. The base fee is a fixed-per-block network fee included in the EIP-1559 algorithm.The second more complex option sets a base fee for using resources but includes burst limits on each resource. There would also be “priority fees” which are set as a percentage and calculated by multiplying the percentage by the base fee.He stated that the drawback to the multidimensional fee structure is that “block builders would not be able to simply accept transactions in high-to-low order of fee-per-gas.” They would have to balance the dimensions and solve additional mathematical problems.Related: Ethereum supply flips briefly into deflation as gas fees spikeIt remains to be seen whether the proposal will be passed since the priority at the moment is the next big upgrade. The Ethereum network is currently gearing up for “the merge” which will dock the Ethereum blockchain with the Beacon Chain and effectively end Proof-of-Work. Testing is already occurring on the Kintsugi testnet and full deployment is expected in the first quarter of this year.EIP-1559 was deployed in August as part of the London upgrade to burn a portion of the transaction fees in order to make gas pricing more predictable. Since it went live, 1.36 million ETH worth approximately $4.7 billion at current prices has been destroyed according to the burn tracker.

Čítaj viac

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy