Značka: BSC

Here’s why Binance Coin is 33% down from its all-time high

Binance Coin (BNB) holders enjoyed a 1,760% rally from $37 to $692 between January and May 2021, but as is customary in crypto, this surge was followed by a 69% correction two weeks later. From there, it’s been a bit of a rough patch to regain investors’ confidence and BNB failed to produce another all-time high in November even though the aggregate cryptocurrency market capitalization peaked at $3 trillion.Binance Coin / USDT at Binance. Source: TradingViewIn addition to being 33% down from its all-time high, BNB investors have other reasons to question whether the current $465 price is sustainable. Especially since traders were recently paying up to 3% per week to keep futures’ short positions open, betting on the downside.Traders flipped bearish on January 10Unlike regular monthly contracts, perpetual futures prices are very similar to those at regular spot exchanges. This makes the process for retail traders a lot easier because they no longer need to calculate the futures premium or manually roll over positions near expiry.The funding rate allows this magic to occur, and it is charged from longs (buyers) when they demand more leverage. However, when the situation is reversed and shorts (sellers) are over-leveraged, the funding rate goes negative and they become the ones paying the fee.BNB 8-hour USDT/USD margin futures funding rate. Source: Coinglass.comNotice how the funding rate on BNB futures was mostly flat between Dec. 15 and Jan. 10, but then quickly shifted to negative 0.13%. This rate is equivalent to 2.8% per week, a relatively high cost for shorts (sellers) to keep their positions. The movement happened while BNB tested the $410 support, its lowest price in 90 days.Excessive premium versus competing blockchainsThe reason behind the Binance short could be the excessive premium versus competing smart-contract chains. For example, BNB’s $78.2 billion market capitalization is 80% higher than Solana’s (SOL) $43.3 billion. Moreover, the premium versus Terra’s (LUNA) $28.2 billion is 178%, and 275% compared to Avalanche’s (AVAX) $20.8 billion. Other factors are in play could also be Binance Smart Chain’s total value locked (TVL) stagnated at $15 billion.Binance Chain TVL in USD. Source: DefiLlama.comFor comparison, Terra’s TVL increased from $9 billion to $19 billion in three months, while Avalanche grew from $6.5 billion to $11.6 billion in the same period. The competition has vastly surpassed Binance Chain’s applications, except for the number of active users on PancakeSwap decentralized exchange.To correctly assess whether Binance Smart Chain use has topped, one must analyze the network’s activity. Some decentralized applications (dApps) like games, social, and NFT marketplaces require little total value locked (TVL) deposited on smart contracts.Binace Smart Chain daily transactions per day. Source: bscscan.comData shows that daily transactions on BSC peaked above 15 million on Nov. 25 and are recently averaging 6.5 million per day. One should also note that Binance Chain’s main competitor Ethereum has been struggling with $40 or higher average transaction fees, which creates the perfect scenario for competing chains. Despite this opportunity to seize market share, Binance Smart Chain seems to have flatlined in terms of daily transactions and TVL, both of which are signs of growth and adoption.Binance’s lead derivatives position could be challengedThe competition for Binance’s leading position might be challenged as Coinbase, America’s largest crypto exchange, plans to begin offering derivatives trading after the acquisition of FairX. Moreover, FTX exchange raised $1.32 billion from private investors and FTX US finalized its acquisition of crypto options exchange LedgerX on Oct. 25. This solidifies its plans to offer derivatives contracts for U.S. investors.There’s a good chance that Binance will keep its leadership versus Coinbase and FTX derivatives considering that it has the first-mover advantage. Furthermore, Binance launched a $1 billion development fund on Oct. 12 to expand the capabilities of the Binance Smart Chain ecosystem.Overvalued or not, solid fundamentals are backing the third-largest cryptocurrency and while the short-term price performance is not promising, there are still plenty of future catalysts for growth. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Ethereum dominates among developers but competitors growing faster

The Ethereum ecosystem still has far more developers than rival networks, but they are catching up with a faster rate of growth.Ethereum competitors such as Polkadot, Solana, and Binance Smart Chain are growing faster in terms of development activity according to crypto research firm Electric Capital which released its findings on the blockchain development ecosystem in a new report on Jan. 6. It revealed that more than 4,000 monthly active open-source developers work on Ethereum — considerably more than the 680 who work on the Bitcoin network. Across all chains, the total monthly active developers measured was more than 18,400 and the record was broken for the number of code commits by new developers in 2021 with more than 34,000.The measurements were gleaned by analyzing around 500,000 code repositories and 160 million code commits, which are changes or updates to the code. The report noted that Ethereum, Polkadot, Cosmos, Solana, and Bitcoin are the five largest developer ecosystems overall.According to the report, Polkadot has around 1,500 developers in total, while Cosmos and Solana are around a thousand each. Other active ecosystems in terms of monthly developers were Cosmos, NEAR which launched an $800 million developer fund in October, Tezos, Polygon, and Cardano each with more than 250 active monthly developers.While Ethereum is still dominant — more than 20% of new Web3 developers joined its ecosystem — rival networks have seen greater growth.“Polkadot, Solana, NEAR, BSC, Avalanche, and Terra are growing faster than Ethereum did at similar points in its history.”Ecosystem dev growth since first commit – Electric CapitalThe report compared the average monthly active developers between Dec. 2020 and Dec. 2021, noting that Solana grew by 4.9 times, NEAR had a 4X growth rate, and Polygon’s monthly developers more than doubled. Cosmos had a 70% increase in average monthly active developers and BSC 80% over the course of 2021.While the development growth figures are impressive for more early-stage projects, Ethereum is still the king. The ecosystem continues to retain the largest network of tools, dapps, and protocols and is 2.8 times larger than its closest rival, Polkadot.Related: ‘We are 50% of the way there,’ says Vitalik on Ethereum’s developmentSolana, Avalanche, BSC, NEAR, and Terra have emerged as DeFi hubs over the past year or so, attracting more developers as adoption increases. DeFi full-time monthly active contributors grew by 64%, and more than 500 new developers contributed code to a DeFi project every month last year aside from January, it reported.

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Binance Labs leads $12M round for DeFi platform WOO Network

Decentralized finance (DeFi) liquidity provider WOO Network has secured additional funds in a Series A funding round.Incubated by quantitative trading heavyweight Kronos Research, WOO Network has pocketed an additional $12 million strategic investment in a a Series A+ funding round led by Binance Labs. The fresh funding, announced by Binance Labs on Tuesday, builds upon WOO Network’s $30 million Series A funding round.WOO Network is known for adding liquidity to tens of institutions, exchanges, trading teams, wallets and decentralized applications. DYDX, Matcha, ParaSwap, 1inch and DODO are the primary protocols supported by the DeFi platform. WOO claims to provide cheap liquidity thanks to algorithmic aggregation and trading techniques. Clients who want to facilitate the liquidity can use the API or the network’s own trading interface, WOO X.The announcement highlights that WOO Network started providing liquidity on the Binance Smart Chain (BSC) last year. WOO Network chief of ecosystem development Ran Yi pointed out that Binance has the highest concentration of volume and users. “Getting the opportunity to formalize our relationship with Binance will allow us to rapidly accelerate our growth by working closer with Binance across all their industry verticals,” he added.Related: Binance Smart Chain hits record-high daily transactionsBinance Labs investment director Peter Huo said that the new partnership would expand future collaborations on BSC.Binance Labs, the venture capital and incubation arm of the largest crypto exchange by volume, led a number of investment deals in the DeFi ecosystem in 2021, including a $2.4 million funding round for Polkadot-based smart contract platform Plasm Network and $60 million in financing for cross-chain protocol Multichain.

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Binance VC arm leads $60M round in cross-chain protocol Multichain

Binance Labs, the venture capital and incubation arm of Binance cryptocurrency exchange, has led a financing round for the cross-chain protocol Multichain, previously known as Anyswap.Shortly after rebranding from Anyswap last week, Multichain has raised $60 million in a seed funding round led by Binance Labs, the firm officially announced on Dec. 21.Other participants in the raise included major VC firms and industry investors like Sequoia China, IDG Capital, Three Arrows Capital, Primitive Ventures, DeFiance Capital, Circle Ventures, Hypersphere Ventures, HashKey and Magic Ventures.Apart from providing capital investment for Multichain, Binance is also building a stronger relationship with the cross-chain protocol. On Dec. 20, Multichain announced that it is now officially recommended as a tool to bridge bToken across chains through Binance’s smart contract platform, the Binance Smart Chain (BSC).BSC said that Multichain is “one of the biggest routers on BSC,” providing “non-custodial plus multi-party computation model to guarantee the security of on-chain assets.”Thanks Binance Smart Chain @BinanceChain for promoting #Multichain as officially recommended bridge#Multichain’s top priority is to guarantee the security of on-chain assets https://t.co/CEocRygXzq— Multichain (Previously Anyswap) (@AnyswapNetwork) December 20, 2021Founded in July 2020, Anyswap was originally positioned as a cross-chain decentralized exchange. The platform gradually evolved into Multichain, a cross-chain router protocol (CRP) providing a mature real-time CRP system, enabling interoperability on multiple networks including Ethereum, Binance Smart Chain, Avalanche, Moonriver and others.According to the announcement, the total value locked on Multichain now amounts to more than $5 billion, with the number of users exceeding 300,000. Multichain co-founder Zhaojun said that the protocol connects “more public blockchains and crypto assets than anyone else, with lower transaction fees, shorter bridging time and higher security levels.”The funds raised in the seed round will be used in the growth of the team and ecosystem, including the research and development teams focused on crypto algorithms, audits and security, the firm said.Related: Binance to launch $1B fund to develop BSC ecosystemOfficially launched in September 2020, BSC is a decentralized finance solution to bring programmability and interoperability to the Binance Chain, relying on a system of 21 validators with Proof of Staked Authority consensus. BSC has been growing increasingly popular this year, with the network hitting a historical high of over 16 million daily transactions on Nov. 25.

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AscendEX loses $80M following ERC-20, BSC, Polygon hot wallet compromise

Crypto trading platform AscendEX suffered a loss of $77.7 million in a hot wallet compromise that allowed hackers to access and transfer tokens hosted over the Ethereum (ETH), Binance Smart Chain (BSC) and Polygon (POLY) blockchains.Soon after realization, AscendEX proactively warned its users about the stolen funds, confirming that the hackers were not able to access the company’s cold wallet reserves.22:00 UTC 12/11, We have detected a number of ERC-20, BSC, and Polygon tokens transferred from our hot wallet. Cold Wallet is NOT affected. Investigation underway. If any user’s funds are affected by the incident, they will be covered completely by AscendEX.— AscendEX (@AscendEX_Global) December 12, 2021According to PeckShield, a blockchain security and data analytics company, around $60 million worth of tokens were transferred over the Ethereum blockchain. Tokens stolen from the Binance Smart Chain and Polygon are worth $9.2 million and $8.5 million respectively, as evidenced by EtherScan data.Estimated loss @AscendEX_Global: $77.7M in total ($60M on @ethereum $9.2M @BinanceChain $8.5M @0xPolygon). Here is the list of the transferred-out assets and their amounts on @ethereum pic.twitter.com/VC4DKOwu4f— PeckShield Inc. (@peckshield) December 12, 2021

Some of the popular tokens stolen in this hack include USD Coin (USDC), Tether (USDT), and Shiba Inu (SHIB). However, AscendEX is yet to officially confirm the exact worth of the tokens taken away by the hackers. The company also announced to help the affected users by covering up their losses due to this attack. Related: Bitmart hacked for $200M following Ethereum, Binance Smart Chain exploitJust last week on Dec. 05, a similar attack on crypto exchange BitMart resulted in a loss of nearly $200 million due to a hot wallet compromise hosted over the Ethereum and Binance Smart Chain blockchains. As reported by Cointelegraph, the hack was a straightforward case of transfer-out, swap, and wash:Transfer of stolen tokens on Bitmart. Source: PeckShieldWhile BitMart CEO Sheldon Xia confirmed the losses over Twitter, he announced a temporary stop on all withdrawals and deposits while further investigations were underway.The deposit and withdrawal function of all tokens will be resumed step by step, along with the recovery progress of security testing and public chain development. No worries, we are marching forward, security will be always the first priority.— Sheldon Xia (@sheldonbitmart) December 8, 2021

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Crypto Biz: Smart money ignores BTC price correction as $800M set to flow into blockchain startups, Dec. 9

Bitcoin’s (BTC) return to sub-$50,000 levels has many market participants fretting over the legitimacy of their favorite price models. For venture capitalists and other smart money investors, the latest decline is nothing but noise. Instead, they see the emergence of an entirely new economy that is transforming business, redefining monetary value and pushing the internet to a new frontier. This week’s Crypto Biz newsletter highlights four major funding deals from the world of blockchain. Below is a concise version of the Thursday edition of our newsletter.10T Holdings plans $500M crypto fundEarlier this week, equity fund 10T Holdings filed a notice with the United States Securities and Exchange Commission to launch a new $500 million crypto-focused investment fund. The 10T DAE Fund 3.0 has been designed to support mid-to-late-stage companies in the digital asset space. 10T has an excellent track record identifying promising crypto plays, with the likes of Kraken, eToro, Huobi and Ledger already a part of its portfolio.Binance Smart Chain and Animoca Brands launch $200M GameFi fundBinance Smart Chain and Animoca Brands have each allocated $100 million to a new development fund focused on the fast-growing GameFi ecosystem. GameFi, which refers to the financialization of gaming, is expected to be one of the biggest trends in crypto in 2022 and beyond. The new fund will focus specifically on projects building on the Binance Smart Chain. Former Facebook engineers at Mysten Labs raise $36M Mysten Labs, the research and development firm founded by former Facebook engineers, has raised $36 million from some of crypto’s biggest venture funds, including Andreessen Horowitz, Lightspeed, Coinbase Ventures and Samsung NEXT. If you haven’t heard of Mysten Labs, the infrastructure developer is working on building a Web 3.0 interface, which includes a “next-generation NFT platform for the Metaverse.” Related: Hong Kong-based Chiron Partners launches $50M Terra fundFintech startup Lydia raises $100 million in Series CSpeaking of major funding news, crypto-friendly fintech startup Lydia has concluded a $100-million funding round, bringing its total valuation to over $1 billion. You can think of Lydia as an alternative to the popular Cash App and Venmo peer-to-peer payment services. And much like those platforms, Lydia provides another mobile payment gateway to the cryptocurrency market. Crypto Biz is a weekly newsletter that provides readers with the latest scoop on the business behind crypto and blockchain. The newsletter is delivered to your inbox every Thursday. Stay informed by subscribing below.

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Binance Smart Chain and Animoca Brands form $200M fund for GameFi projects

Binance Smart Chain (BSC) and Animoca Brands are launching a $200 million investment program to incubate early cryptocurrency-focused gaming projects building on BSC.BSC and Animonica announced Dec. 6 that they are co-investing up to $100 million each to support game projects in the GameFi sector.One of the largest blockchain ecosystems, BSC will be investing from its $1 billion accelerator arm for decentralized finance (DeFi), nonfungible tokens (NFT) and GameFi. The fund was set up earlier this year to extend BSC ecosystem services and drive mainstream adoption across the fintech sector.Animoca Brands is a major player in blockchain gaming and the open metaverse, working on providing property rights via NFTs and gaming. The firm has invested in major NFT-related projects including Axie Infinity, OpenSea, Bitski, Harmony and others.“With this co-investment, projects building on BSC will get the opportunity to gain insights and expertise from leading gaming giants such as Animoca Brands, along with collaboration opportunities with blockchain experts from the BSC Community,” BSC investment director Gwendolyn Regina said.Related: Animoca Brands raises $5M for NFT marketplace, QuiddGameFi, a mix of gaming and DeFi, has been one of the biggest buzzwords in the cryptocurrency industry recently alongside the concept of the metaverse. GameFi refers to the financialization of video gaming and operates under a play-to-earn model instead of play-to-win. A number of major crypto companies and investment firms have been investing in GameFi over the past couple of months, including Huobi crypto exchange, Solana Ventures, FTX, Sanctor Capital, and others.

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