Institutional investors have become important players in the cryptocurrency market, which is a testament to the growing mainstream acceptance of digital assets. Some of crypto’s biggest asset managerschainlink oracle list told Cointelegraph earlier this year that investing in digital assets no longer carries the same level of career risk as before, which means more financial advisers and wealth managers are likely to enter the market. This was corroborated by a recent poll by London-based crypto fund Nickel Digital Asset Management, which found that most hedge fund executives have already purchased cryptocurrency.
The blockchain has since evolved into a separate concept, and thousands of blockchains have been created using similar cryptographic techniques. This history can make the nomenclature confusing. Blockchain sometimes refers to the original Bitcoin blockchain. At other times, it refers to blockchain technology in general, or to any other specific blockchain, such as the one that powers Ethereum.bitcoin exchange disappearsThe basics of blockchain technology are mercifully straightforward. Any given blockchain consists of a single chain of discrete blocks of information, arranged chronologically. In principle, this information can be any string of 1s and 0s, meaning it could include emails, contracts, land titles, marriage certificates, or bond trades. In theory, any type of contract between two parties can be established on a blockchain as long as both parties agree on the contract. This takes away any need for a third party to be involved in any contract. This opens up a world of possibilities including peer-to-peer financial products, such as loans or decentralized savings and checking accounts, wherein banks or any intermediary is irrelevant.
Though Bitcoin's current goal is to be a store of value as well as a payment system, there is nothing to say that Bitcoin could not be used in such a way in the future, though consensus would need to be reached to add these systems to Bitcoin. The main goal of the Ethereum project is to have a platform where these "smart contracts" can occur, therefore creating a whole realm of decentralized financial products without any middlemen or the fees and potential data breaches that come along with them.This versatility has caught the eye of governments and private corporations; indeed, some analysts believe that blockchain technology will ultimately be the most impactful aspect of the cryptocurrency craze.In Bitcoin's case, though, the information on the blockchain is mostly transactions.Bitcoin is really just a list. Person A sent X bitcoin to person B, who sent Y bitcoin to person C, etc. By tallying these transactions up, everyone knows where individual users stand. It's important to note that these transactions do not necessarily need to take place between humans.Anything can access and use the Bitcoin network, and your ethnicity, gender, religion, species, or political leaning is completely irrelevant. This creates vast possibilities for the Internet of things. In the future, we could see systems in which self-driving taxis or Uber vehicles have their own blockchain wallets. The passenger would send cryptocurrency directly to the car, which would not move until the funds were received. The vehicle would be able to assess when it needs fuel and use its wallet to facilitate a refill.
Another name for a blockchain is a "distributed ledger," which emphasizes the key difference between this technology and a well-kept Word document. Bitcoin's blockchain is distributed, meaning that it is public. Anyone can download it in its entirety or go to any number of sites that parse it. This means that the record is publicly available, but it also means that there are complicated measures in place for updating the blockchain ledger. There is no central authority to keep tabs on all Bitcoin transactions, so the participants themselves do so by creating and verifying "blocks" of transaction data. See the section on mining below for more information.You can see, for example, that 15N3yGu3UFHeyUNdzQ5sS3aRFRzu5Ae7EZ sent 0.01718427 bitcoin to 1JHG2qjdk5Khiq7X5xQrr1wfigepJEK3t on Aug. 14, 2017, between 11:10 and 11:20 a.m. The long strings of numbers and letters are addresses, and if you were in law enforcement or just very well informed, you could probably figure out who controlled them. It is a misconception that Bitcoin's network is totally anonymous, although taking certain precautions can make it very hard to link individuals to transactions.According to data from Token Terminal, DeFi continues to be one of the fastest-growing sectors of the crypto economy as evidenced by increases in the total value locked (TVL) on protocols. Some of the biggest gains from last week occurred on cross-chain compatible networks and layer-two protocols that offer a lower fee environment.
Two of the top-6 projects on the list above, Trader Joe and Pangolin, are found in the Avalanche network which has seen significant inflows and an increase in TVL since the launch of an upgraded cross-chain bridge that allows Ethereum-based tokens and applications to migrate to the Avalanche ecosystem.Governance features have also been a positive factor in helping spark new growth for projects as both Alchemix Finance and Rari Capital have ongoing, or recently completed votes designed to improve their ecosystems and increase community involvement.Another emerging trend shown in the data from Token Terminal is the growing strength of derivatives and options trading protocols as regulators increasingly crack down on centralized exchanges that offer derivatives services and have loose KYC and AML requirements.As shown on the chart above, two of the biggest gainers in terms of protocol revenue over the past week were dYdX and Hegic, a pair of protocols that offer decentralized derivatives and on-chain options trading to investors.
Global regulators have increased their scrutiny on leveraged and derivatives trading platforms in recent months, while at the same time, established exchanges like Coinbase have applied to offer futures trading services, indicating that this is one sector poised for continued growth as cryptocurrencies become more mainstream.dYdX has also benefited from the fact that it operates on a layer-two solution developed in conjunction with StarkWare that enables cross-margined perpetual's with zero gas costs and minimal trading fees.
Data shows that Ethereum-competitors such as Tezos (XTZ) and Cosmos (ATOM) have al seen an increase in revenue over the past week, suggesting that the layer-1 battle is heating up as high fees on the Ethereum network continue to motivate users to explore other options.FTX, one of the world’s largest cryptocurrency exchanges, continues expanding operations by inking major regulatory approval in The Bahamas.The Securities Commission of The Bahamas has registered FTX Digital Markets, the Bahamian subsidiary of the global FTX crypto exchange, as an official digital asset business, the firm announced Sept. 20.The regulatory approval is granted under the Digital Asset Registered Bill of The Bahamas, the country’s new digital asset-related legislation that came into force in late 2020. Also known as the DARE Act, the legislation establishes a comprehensive regulatory framework for digital asset operations in The Bahamas, regulating and supervising virtual asset service providers.
The regulatory approval will help FTX establish a “substantial presence” in The Bahamas as the exchange continues to expand its global presence. Ryan Salame, former head of over-the-counter trading at Alameda Research, has already joined FTX Digital Markets as CEO, and will be responsible for managing FTX’s local initiatives.“The relationship we have fostered with local regulators culminating with us being authorized under the framework offered through the DARE Act, gives me confidence that we’ll be able to work closely with regulators to make sure our offerings are compliant in multiple jurisdictions,” Salame said.FTX did not specify what crypto services it’s planning to roll out in The Bahamas as part of its new expansion. Cointelegraph reached out to FTX and will update the story pending new information.FTX is one of the largest crypto exchanges in the world, operating more than $3.5 billion in daily trading volumes at the time of writing, according to data from CoinMarketCap. The company has been actively expanding its operations and acquiring major industry players after closing a $900 million funding round in July. In late August, the company announced the acquisition of LedgerX, a licensed options and futures trading platform in the United States.
Cryptocurrency assets held by institutional managers rose for a fifth consecutive week, a sign that market participants had once again flipped bullish on Bitcoin (BTC) and the leading altcoins.Investment flows into crypto products totaled $42 million in the week ending on Sept. 19, with Bitcoin funds seeing inflows of $15 million, according to digital asset manager CoinShares. That’s only the third time in 16 weeks that BTC investment products saw positive inflows.
All major assets registered a weekly increase, with investors buying up $6.6 million worth of Ether (ETH) products and $3.7 million worth of multi-asset funds. Investors also allocated $4.8 million towards Solana (SOL), disregarding a denial-of-service disruption earlier this week as a result of network congestion.In terms of actual products, 21Shares registered the largest weekly inflows at $28 million. The physically-backed crypto exchange-traded product provider now has $1.87 billion in assets under management. Grayscale remains the single largest crypto asset manager, with $43.177 billion in total assets.
Fund managers have been buying up crypto in lockstep with a broad market recovery that began in late July. Crypto markets peaked above $2.2 trillion last week after plunging to around half that amount earlier in mid-July. However, by Monday, all major crypto assets had printed heavy losses as Chinese Evergrande news walloped risk sentiment.Related: Bitcoin bounce levels extend to $36K with bulls unmoved by 8% BTC price dipInstitutional investors have become important players in the cryptocurrency market, which is a testament to the growing mainstream acceptance of digital assets. Some of crypto’s biggest asset managers told Cointelegraph earlier this year that investing in digital assets no longer carries the same level of career risk as before, which means more financial advisers and wealth managers are likely to enter the market. This was corroborated by a recent poll by London-based crypto fund Nickel Digital Asset Management, which found that most hedge fund executives have already purchased cryptocurrency.DELIVERED EVERY MONDAYSolana has attributed the 17-hour outage it suffered last week to a denial-of-service attack aimed at Grape Protocol’s Sept. 14 initial DEX offering (IDO).In a Sept. 21 blog post, the Solana Foundation stated that bots spammed the network as Grape launched its IDO on the Solana-based decentralized exchange (DEX) Raydium at 12:00 UTC last Tuesday.
The botting activity overwhelmed the network with a transaction load of 400,000 per second, with Solana noting that “unbounded growth of the forwarder queues and resource-heavy blocks” resulted in a number of forks being automatically proposed to the network.The attack caused Solana’s network’s validators to crash after running out of memory. As a result the network went offline for roughly 17 hours during Sept. 14 and Sept. 15.
The recovery was led in collaboration between Solana engineers and more than 1,000 validators, with a hard fork being passed after receiving support from 80% of the network’s active stakers.The foundation estimates that the network was patched, upgraded, and restored to full functionality within 18 hours of Solana going offline.
The post added that the community is still working on providing a detailed “technical post-mortem and root cause analysis report” that will be released in the coming weeksRelated: Smashing crypto adoption barrier? Solana aims to do its own ‘thing’
The price of Solana (SOL) has performed bearishly since posting an all-time high of $213 on Sept. 9. Since then, SOL has pulled back by 39% to change hands for $129 at the time of writing.The retracement followed a meteoric couple of months for SOL, with the token surging 565% since trading for $32 on July 31.Bitcoin (BTC) kept blowing through support levels during trading on Sept. 20 ahead of what promised to be a "very interesting" U.S. stock market open.Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD. It dipped briefly to near $42,500 before returning to hover near $44,000 in volatile conditions.
Monday's low was beneath that seen earlier in the month during the leverage cascade, with Bitcoin testing both its weekly higher low and 21-week exponential moving average (EMA) as support.As Cointelegraph reported, a plethora of factors combined to produce sell pressure for BTC markets. These were led by concerns over Evergrande defaulting on hundreds of millions of dollars in debt, in turn pressuring stocks and strengthening the United States dollar. Rising Bitcoin exchange balances provided an additional catalyst from within the market, itself.
Traders, nonetheless, kept their cool."Why are you surprised today? Don’t be so emotional," popular Twitter account Anbessa told followers at the height of the rout.
Anbessa espied levels in the mid-$30,000 range as being the only definitive area of concern, with Bitcoin still well above $40,000 and a Fibonacci retracement level at $38,000.For analyst and statistician Willy Woo, however, the stock market open should provide a debate in itself.
"SPX teetering, threatening a large sell-off," he warned in advance of Wall Street's return.Woo added that should stocks face a deeper crash, the situation may mimic 2020 when Bitcoin's supply squeeze ultimately sent it from $3,000 lows to new all-time highs in spite of initial misgivings.Bulls' conviction proves hard to shakeOthers were even less fazed by the events of Sept. 20, including popular trader Pentoshi, who revealed record BTC exposure at current levels.
Related: ‘Best bear market ever’ — 5 things to watch in Bitcoin this week"Do I think 41k is possible? Yes. But I think we see 56k–58k within three weeks. I’m macro bullish," he said as part of comments on the day.
Meanwhile, data from monitoring resource Material Indicators captured the rapidly-changing picture on spot exchanges, where liquidity was being taken incrementally.India’s state-owned telecom Bharat Sanchar Nigam Limited (BSNL) has registered 7,477 businesses on its blockchain-based communication platform after authorities imposed new regulations to protect consumers from spam and fraud.
The Telecom Regulatory Authority of India (TRAI) established messaging regulations that require scrubbing consumer communication messages to ensure that the receiver of the message has opted in for such interactions. The drive is supported by BSNL DLT, a content verification platform built on ledger-based blockchain protocols.As the SMS regulation is applicable for all industry verticals, the list of 7,477 registrations includes banks, educational institutions and private businesses. TRAI had reportedly warned about blocking communications of non-compliant entities, as an official said:“The Telecom Regulatory Authority of India will accept no reason, give no consideration and no extension to all those who have not streamlined their SMS process. Let their businesses suffer 100%.”