2021 was a breakout year for the cryptocurrency market in many respects and most investors are absolutely thrilled that Bitcoin (BTC) price established a new all-time high of $68,789. In the same timeframe, Ether (ETH) went on a parabolic rally which saw its price gain 565% from Jan. 1 to hit a record high at $4,859 on Nov. 10. While it was a banner year for large cap cryptocurrencies, some of the biggest gains and most impactful developments came from the altcoin market where decentralized finance (DeFi) and nonfungible tokens (NFTs) rallied by thousands of percent and helped to usher …

The Uniswap community has approved the governance proposal that sought deployment of Uniswap v3 contracts over the Polygon PoS Chain. The approval comes in the form of an on-chain vote that saw the participation of over 72.6 million users from the community. Uniswap Labs announced to deploy Uniswap v3 contracts based on the votes that reflected over 99.3% approval consensus and will be supported by a $20 million fund — $15 million for long-term liquidity mining campaign and $5 million for the overall adoption of Uniswap on Polygon (MATIC). The Uniswap community has voted to deploy v3 on @0xPolygon through …

Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter. Read on to discover why almost half of the liquidity providers on Uniswap v3 are losing capital due to impermanent loss. What you’re about to read is the smaller version of this newsletter. For the full breakdown of DeFi’s developments over the last week, subscribe below. Acala wins Polkadot’s debut parachain auction Decentralized finance protocol Acala was announced as the winning project in Polkadot’s inaugural parachain auction this week, beating fellow competitor Moonbeam to the finish line with a seismic total of 32.5 million DOT ($1.28 billion) raised from 24,934 …

Recent research shows that impermanent losses have become an increasing issue for liquidity providers on Uniswap v3. A Nov. 17 report by Topaz Blue and the Bancor Protocol found that 49.5% of liquidity providers on Uniswap v3 have incurred negative returns from impermanent loss (IL). The report highlighted that Uniswap v3 generates the highest fees of any automated market maker (AMM) today, but IL surpasses those earned fees. The research surmised that hodling may have been a better option for liquidity providers. “The average liquidity provider (LP) in the Uniswap V3 ecosystem has been financially harmed by their choice of …

High transaction fees have been a persistent thorn in the side of investors and blockchain projects since at least 2014 when Ethereum Network co-creator Vitalik Buterin stated in reference to Bitcoin, “The ‘Internet of Money’ should not cost $0.05 per transaction. It's kind of absurd.” Fast forward to November 2021 and the simple act of approving a token so that it can be transacted on Uniswap can cost as much as $50 worth in Ether (ETH) depending on the time of day. Even layer-2 solutions, which were billed as the protocols that would help solve the fee issue, have been …

As decentralized finance (DeFi) has matured into an industry with over $200 billion locked in protocols, so has the risk appetite across the spectrum of investors. These varying risk tolerance levels call for a more diversified range of asset management products to meet investors’ demands. Bella Protocol is a DeFi asset management platform that claims to have found a solution to this issue. The platform aims to be the “BlackRock of crypto wealth management” with a suite of products that seek to simplify the yield farming process and eliminate gas fees. Bella Virtuoso – the next phase of the Bella …

Valour, a Zurich-based exchange-traded products (ETP) issuer, announced the launch of a fully-backed investment product to increase exposure to Uniswap decentralized exchange’s native token, UNI. The UNI token serves as the underlying asset within the Valour Uniswap ETP offering available as a fully-backed passive investment product. The Uniswap ETP was launched on a European stock exchange named Boerse Frankfurt Zertifikate AG, the Frankfurt Stock Exchange co-owner. Valour CEO Diana Biggs highlighted the inaccessibility of blockchain-based investment products on traditional markets and stock exchanges. Speaking about Valour Uniswap ETP’s position in making DeFi investments available via mainstream investment channels, he said: …

Bitcoin (BTC) has recovered from the dip below $60,000, indicating strong buying at lower levels. CryptoQuant CEO Ki Young Ju said that investors used market orders to buy $840 million worth of Bitcoin futures on dips to $60,000. This suggests that analysts are positive for the rest of the year and anticipate the bull run to continue. Analyst TechDev believes that Bitcoin’s price action in 2021 is following the same trajectory as in 2017. If that were to happen, Bitcoin could be getting ready for a sharp move higher in the remainder of the year. In a step that could …

Bitcoin (BTC) and Ether (ETH) have both witnessed aggressive profit-booking after hitting their respective new all-time high. This suggests that traders who had bought on rumors of a Bitcoin exchange-traded fund booked profits following the successful launch of the ProShares’ Bitcoin Strategy exchange-traded fund (ETF) (BITO). The bulls tried to stage a recovery in Bitcoin after the launch of the second BTC futures-linked ETF by digital asset manager Valkyrie on Oct. 22 but met with strong selling pressure at higher levels. The selling has pulled the greed level on the Crypto Fear and Greed Index from 84 on Oct. 21 …

Bitcoin (BTC) surged to a new all-time high on Oct. 20, hitting close to $67,000. Ether (ETH) also broke above its immediate resistance and has started its march toward the all-time high. This pushed the total market capitalization of the crypto sector to a new all-time high above $2.64 trillion. The successful debut of the ProShares’ Bitcoin Strategy exchange-traded fund (BITO) acted as the trigger to boost sentiment in the crypto space. The ProShares’ ETF trading volume on the first day of the launch exceeded $1 billion, making it the second-most successful ETF debut based on the trading volume on …

The world’s most popular decentralized exchange, Uniswap, is seeing layer-two volumes surge as Ethereum transaction fees surge once again. On Tuesday, Uniswap founder Hayden Adams tweeted that daily volume across v3 deployments of the decentralized exchange on layer-two networks has pushed into record levels. Adams estimated that Uniswap v3 processed an unprecedented $115 million in combined daily volume across the Arbitrum and Optimism networks without providing a source. Uniswap v3 on layer 2 (arb + OE) doing an all time-time high of $115m volume!! 2⃣ L2 season is here :) — hayden.eth (@haydenzadams) October 18, 2021 While Adams’ post was …

ProShares Bitcoin Strategy exchange-traded fund (ETF) will enter the history books on Oct. 19 when it starts trading on the New York Stock Exchange under the ticker BITO. Market participants are likely to watch the volumes on the ETF closely to gauge the amount of participation from institutional investors. If the response is tepid for a few days, short-term traders may be tempted to book profits, but the bullish momentum may pick up further if demand remains strong. The latest CoinShares report for the week ending Oct. 17 shows that institutional inflows into crypto products have pushed the total assets …