The crypto market is holding most of the gains from yesterday’s run up.
Notable outperformer was EOS which stormed ahead 35% to $2.43, knocking Stellar out of fourth place in the market cap rankings.
There is no one reason to explain that rise but this tweet throws some light on the progress the project is making:
Excluding prices looking exclusively at active addresses & transaction counts.
ETH has greatly outperformed BTC last few years, while EOS is greatly outperforming both of them last year. Price correlates almost perfectly to these metrics. pic.twitter.com/IWZvkmt1mw
— Token State (Tokenize the World) (@tokenstate) December 17, 2018
EOS transactions are outstripping those on both bitcoin and Ethereum combined. EOS has also been making headway in the betting world with a number of projects – in particular EOSBet – getting traction.
It would appear that EOS has got out of the bog of governance issues that was weighing down after the end of its ICO.
Also the fear that Dan Larimer was about to leave the project for pastures new has proven unfounded. Larimer is working on a new coin but he ahas assures the EOS community that is is not moving on.
Larimer has past form, having abandoned Steem and BitShares after he presumably got bored.
A teleporting tool has also been recently launched to enable swapping of ERC-20 tokens for EOS, which will presumably help projects to migrate from Ethereum to EOS.
EOSUSD 1-hour chart, Kraken, courtesy of TradingView
The dire state of the bitcoin world is brought out in a report from JP Morgan, reported by Business Insider.
Bitcoin mining is now unprofitable and the least efficient miners are being driven out of the industry as a result.
The latest decline in prices towards $3,000 per bitcoin has also seen a sharp decline in the hash rate. This suggests that prices have declined to a point where mining is becoming uneconomical for some miners, who have responded by turning their mining rigs off. What had been striking with the Bitcoin hash rate was that it peaked only recently at the end of October i.e. much later than the peak in Bitcoin prices at the end of 2017. Combined with price declines, the surge in the mining activity in the first ten months of the year, partly driven by chip manufacturers deploying miners to test their products and partly by miners adopting more efficient operations, created a collapse in mining profitability from $4/Day for 1THash/s at the end of 2017 to $0.16 currently. Therefore in the absence of any stabilization in prices, the least efficient miners were forced to exit mining activity abruptly.
The hash rate lagged the crash in the price which means that the difficulty adjustment mechanism has had a hard time in keeping up in reducing difficulty enough to compensate for the shrinking block rewards.
Coinbase’s 8th day of Christmas…
Coinbase keeps surprising with in 12 days of Christmas promotion.
It’s latest gift to the industry, or rather to its customers, is the introduction of crypto trading pairs. You can read more here.
Ethereum-based stablecoin coming to Brazil
Ethereum has been lifted somewhat by the news out of Brazil that a state bank is building a stablecoin on Ethereum.
The Brazilian National Social Development Bank hopes the token, 1-to-1 backed with Brazilian real, will make corruption impossible as the funds will be traceable on an immutable blockchain.
The news is also a win for Ethereum ecosystem project accelerator Consensys, which recently laid off workers and is refocusing on consulting and token engineering. The Brazilian bank is one of its first wins for its new strategy. Coindesk has more background here.