Analysis: Crypto finally saw some bullish upward movement after weeks of stagnation. Altcoins led the way with Ethereum up 12.62% over the 7 day period. Many DeFi also saw large gains.
After A Period Of The Low Volatility, Crypto May Have Recently Awakened With Bullish Fundamental Arguments Continuing To Stack Up
Takeaway: In spite of the flat price action for many coins, the crypto ecosystem continues to develop and mature. A couple items we would point out:
Improvements In Banking: Banking for crypto on/off-ramps has been a challenge since crypto’s inception. Over the last two years that situation has improved drastically. Crypto-friendly banks such as Deltec and Silvergate provide reliable, professional backstops for the ecosystem while new large players such as JP Morgan announce initial forays into the space. Just yesterday, it was announced that the Office of the Comptroller of the Currency (OCC) is letting all nationally chartered banks in the U.S. provide custody services for cryptocurrencies. This is considered big news, as it opens the door for banks to get much more integrated into crypto then they were before.
The Rise Of DeFi: A new movement is building into the cryptocurrency industry that has many enthusiasts and analysts alike excited. It’s called DeFi, short for decentralized finance, and it’s the idea that crypto builders can recreate traditional financial products in a decentralized way, outside of centralized companies and governments’ control. With the world rapidly changing due to COVID, and central banks printing money at record speeds, DeFi seems to have found it’s moment. Some DeFi tokens have completely exploded in terms of value in recent months adding to the excitement.
Growing Avenues For Procurement / Spending: The ecosystem allowing crypto owners to use their currency as a form of payment has continued to mature. Mainstream payments firm Square was one of the key additions to the crypto infrastructure in 2019. Now it is reported that Paypal, which owns the popular Venmo app, will also follow suit. Beyond such channels the amount of major firms accepting crypto as payment in some capacity continues to grow.
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PODCAST OF THE WEEK
Camila Russo On The Most Pivotal Moments In Ethereum’s History, Unchained Podcast, July 21, 2020