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Tether [USDT] registers all-time high daily transaction count despite transaction volume stagnating

Biraajmaan Tamuly



Tether [USDT] registers all-time high daily transaction count despite transaction volume stagnating
Source: Pixabay

The cryptocurrency market witnessed a major market surge recently which rapidly improved the market capitalization of virtual assets, taking the collective market cap to $200 billion for the first time since November 2018.

On the back of Bitcoin [BTC] breaching the $7,000 dollar mark, several coins in the market surged. In light of the situation, Mati Greenspan, lead analyst at eToro, brought the attention of the crypto community to some very intriguing statistics.

Mati Greenspan tweeted that Tether, the world’s largest stablecoin, witnessed an average of 50,000 transactions, now an all-time high.

Tether’s Transaction Count | Source: Twitter

Recently, Tether was put in a tight spot after the New York State Attorney General filed a lawsuit against Tether and Bitfinex over an alleged “fraud” involving the cover-up of $851 million in losses.

This caused a dip in the stablecoin’s valuation, since it was no longer pegged one-to-one with the US Dollar for the time period. Many analysts have also predicted that the situation could possibly be the end of stablecoins as the “security” attached to Tether’s name was under question.

However, at press time, Tether remained prominently relevant in the market with a record transaction count. Tether had also recovered quickly after the initial fall as various cryptocurrency exchanges continued to peg the stablecoin with virtual assets on their platform, despite the availability of arguably better alternatives which complied with US regulations.

Source: Tether’s Transaction Volume | Source: Twitter

Additionally, Greenspan tweeted that the transaction volume of the stablecoin did not change significantly, despite the record transaction count. He stated that the current volume was around $500 million per day.

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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.


JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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