ETH Loans Fell From 42% to 4%: 'No One Is Short Any More'

Genesis Global Trading, one of the largest OTC cryptocurrency dealers, has loaned $553 million to institutional borrowers since March. They said that some of the largest loans were made in Ethereum (ETH) to hedge funds which are typically using the borrowed assets for short positions

At the end of Q1 ETH loans made up of 42% of outstanding balances, but theu fell to 4% as of the end of Q3 following an 80% decline in ETH prices.


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Multi-Collateral Dai Takes MakerDAO Beyond Ethereum

MakerDAO users can finally stake multiple cryptocurrencies to back the Dai stablecoin. Multi-Collateral Dai went live with support for Brave’s Basic Attention Token. Additionally, the upgrade continues support for Ethereum-based collateral. Other tokens, including Augur and 0x, may be on the way as well. Multi-Collateral Dai also has a few secondary features. Most notably, it coincides with the Dai Savings Rate, which draws funds from the project’s stability fee in order to pay returns to users. Today’s upgrade also allows users to pay their stability fee with Dai rather than the less commonly held MKR governance token. Unlike Tether and most other stablecoins, Dai is not backed by a central reserve of fiat currency. Instead, individual users lock up their crypto holdings in a blockchain smart contract, allowing them to issue their own Dai. It’s an original model, and with any luck, these new features will attract more users to the platform. MakerDAO Gets a Makeover To coincide with the upgrade, MakerDAO has undergone a rebranding. Dai has been given a new logo that resembles a standard currency sign, much like the dollar sign, the Euro sign, or Stellar’s updated logo. This change reflects MakerDAO’s ambitions of becoming a cryptocurrency with commercial uses — not just a stablecoin. Maker’s new Dai logo The upgrade also introduces a simpler naming scheme. Multi-Collateral Dai has done away with the term Collateralized Debt Positions in favor of “vaults.” Though the two features are more or less the same, the latter term is self-explanatory. “The Maker Vault in MCD is where a user deposits collateral and generates Dai,” MakerDAO elaborates. Finally, Single Collateral Dai has been renamed “Sai,” while Multi-Collateral Dai has taken on the existing name “Dai.” This reflects the fact that Multi-Collateral Dai will render the old system obsolete when the community chooses to do so. “The opportunity to migrate is not open-ended,” MakerDAO states, urging users to migrate soon. Operational Challenges Ahead MakerDAO’s announcement indicates that the transition to Multi-Collateral Dai will introduce challenges. “Careful scaling remains crucial as Maker Governance becomes increasingly more sophisticated,” today’s announcement reads. Decisions on matters such as fees, features, and changes can be seen in real time on this page. Historically, changes to MakerDAO’s stability fee have been a controversial issue. This fee incentivizes users to create and destroy Dai, ensuring that the coin maintains a $1.00 price peg. However, the fee has been trending upward, provoking plenty of debate — though more recent trends have brought the fee down slightly. Stability fee chart by Fortunately, these matters mainly concern users who issue their own Dai through the collateralization process. Investors who buy existing Dai on an exchange won’t notice much of a difference. In fact, Coinbase is planning to migrate on its users’ behalf, so the transition should go smoothly for many Dai holders. The post Multi-Collateral Dai Takes MakerDAO Beyond Ethereum appeared first on Crypto Briefing.

Ethereum Price Analysis: ETH Breakdown Looks Real

Ethereum price is trading with a bearish bias below the $180 support against the US Dollar. ETH price is now facing a lot of hurdles on the upside near $180 and $182. There is a major declining channel forming with resistance near $182 on the 4-hours chart (data feed from Coinbase). The price remains at a risk of more losses below the $174 and $170 levels in the near term. Ethereum price is declining below key supports near $180 against the US Dollar. ETH price is likely to struggle near $182 if there is an upside correction. Ethereum Price Analysis This month was mostly bearish for Ethereum price from the $195 resistance area against the US Dollar. There were steady losses in ETH price below the $190 and $186 support levels. Moreover, there was a break below the $182 support and the 55 simple moving average (4-hours). It opened the doors for more losses below the $180 support area. Similarly, there were sharp losses in bitcoin below $8,400 and $8,200. Ethereum gained bearish momentum below $180 and traded as low as $173.59. It is currently correcting higher above the $175 level. Besides, it traded above the 23.6% Fib retracement level of the recent drop from the $186 high to $173 low. On the upside, there is a strong resistance forming near the $180 level (the recent breakdown support). Additionally, the 50% Fib retracement level of the recent drop from the $186 high to $173 low is near the $180 level. More importantly, there is a major declining channel forming with resistance near $182 on the 4-hours chart. The channel resistance is near the 76.4% Fib retracement level of the recent drop from the $186 high to $173 low. Therefore, Ethereum is likely to face a strong selling interest near the $180 and $182 levels. To move into a positive zone, the price must settle above $182 and 55 simple moving average (4-hours). On the downside, an initial support is near the $174 level. The next key support is near the $170 level, below which there is a risk of a drop towards the $160 zone in the coming days. Ethereum Price Looking at the chart, Ethereum price is facing an increase in selling interest below $182 and $185. Therefore, ETH bears could aim the $160 support area if the bulls continue to struggle near $182 in the near term. Technical indicators 4 hours MACD – The MACD for ETH/USD is currently moving heavily in the bearish zone. 4 hours RSI (Relative Strength Index) – The RSI for ETH/USD is currently recovering from the 30 level. Key Support Levels – $174, followed by the $160 zone. Key Resistance Levels – $182 and $185. The post Ethereum Price Analysis: ETH Breakdown Looks Real appeared first on Live Bitcoin News.
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