Ethereum has once again hit new all-time highs since our last piece which dealt with upcoming network developments and booming NFT sales. The cryptocurrency has since pulled back whilst fundamentals stay as strong as ever. This week, we’ll focus on the wider crypto market activity driving the price of Ethereum and other cryptocurrencies.
Binance Launches Tesla Stock
Binance announced that it was selling zero-fee Tesla stock derivatives last week, offering low-cost exposure to TSL in a way that wasn’t possible for many users previously.
As the largest exchange in the world, the announcement was a high-profile event that highlighted the use case of crypto in the financial sector.
Users can buy one stock token representing a single share of Tesla stock, or fractions of a token as low as one hundredth of a share, all with none of the trading commissions associated with actual stock trading. The tokens offer exposure to the same dividends and stock splits that holders of the actual shares would receive.
Binance decided to follow traditional stock market trading hours, unlike FTX and Bittrex Global which offer 24/7 tokenized stock trading. Binance has recently been scrutinized for potentially allowing illegal trades for U.S. customers, and is now being investigated by the U.S. CFTC.
The Coinbase IPO on April 14 saw the crypto asset exchange list its stock on the Nasdaq for $75 billion, opening at $250 and spiking to $429 before closing lower. The stock price now stands at $329.
The event was a significant moment for the crypto community as the first real stock listing of a cryptocurrency company, helping to bring mainstream attention to crypto and to legitimize the space in general.
Funding for DeFi
ConsenSys closed $65 million in funding from JP Morgan, Mastercard, and other investors last week. The Brooklyn-based Ethereum development company
Sorvyn, a Bitcoin-based DeFi trading protocol, also raised $9 million and began trading over the weekend. Investor Anthony Pompliano stated that Pomp Investments got involved with Sorvyn to help bring DeFi to Bitcoin and ensure the “continued sovereignty of Bitcoin.”
A UK startup called Gro, led by a former Revolut and Spotify executive, raised $7.1 million last week from Galaxy Digital and Framework Ventures. The project aims to simplify the DeFi experience for end-users, with stablecoins based on fiat currencies like the GBP among other products.
Unslashed raised $2 million over the week for its decentralized insurance project through which investors can underwrite insurance policies on the network. Unslashed has reportedly sold $400 million worth of cover to date and collected $90 million in capital projects.
DeFi’s TVL hit a new record of $59.27 billion recently, spurred on by growing interest in DeFi and higher highs made by BTC and ETH.
New All-Time Highs, But Rocky Trading
Ethereum and Bitcoin both hit new all-time highs on April 13, directly before the Coinbase IPO. Ethereum has since reached $2,550, now trading at $2,222. Bitcoin hit $63,661 before correcting all the way back to around $56,000 at the time of writing.
The heightened interest around the IPO may have contributed to more speculation on crypto in general, and it’s thought that flooding throughout China’s Bitcoin mining hub regions may have led to a shutdown of mining facilities and a lower hashrate, negatively impacting Bitcoin price and sentiment in the near-term.
U.S. bond yields and the dollar both declined over the course of the week, and this likely caused investors to seek out crypto as a haven against volatility.
A flash crash on Sunday saw $300 billion wiped from the market, although the DOGE meme coin is still trading steadily higher, now up 5,100% since January. TA shows that ETH could drop as low as $1,880 before consolidating to reach new highs.
The Blockchain Life 2021 event is taking place in Moscow on April 21. 4,000 attendees are expected with speakers including representatives from Binance Russia, Web3 Foundation, TradingView, Russia’s Ministry for Economic Development, and more.
Miami Crypto Exp is being held in downtown Miami on April 21, with interactive crypto workshops being held on the gamification of NFTs, trading basics, and more.
Finally, the Blockchain in Finance virtual conference will be held online on April 22 with 1,000 attendees expected. Speakers include the World Trade Organization’s Blockchain Lead and Senior Analyst Emmanuelle Ganne along with representatives from Lloyds Bank and other organizations.