admits to trading the country’s first crypto ETF…

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Bloomchain has prepared a cryptocurrency market review for October

SUMMARY

  • Cryptocurrency cap above $2.5 trillion, bitcoin close to $70k mark in October.

  • IPO month: Bakkt is listed on the NYSE and mining company Stronghold is listed on the NASDAQ. Mining equipment supplier Bitfury plans to go public in Europe.

  • America is the new leader in hash rates after increasing regulatory pressure on the industry in China, 35% of all computing power. Next in the rankings are Kazakhstan (18%) and Russia (11%).

  • The first Bitcoin futures ETF from Proshares is accepted for trading in the United States. Trading volume on the first day was nearly $1 billion.

  • The trading volume of NFT is growing rapidly (from 8 to 15 times according to various data sources), mostly provided by the OpenSea market. By the end of the year, Coinbase plans to launch a competitor site.

Market dynamics

During the month (09.25-25.10), the cryptocurrency capitalization increased by almost 40% and exceeded $2.5 trillion. Bitcoin in October hit an all-time high of $66.9K and by the end of the month had almost doubled in price. Ethereum was up slightly less during the same period, at 42%. Binance Coin, Cardano, and Tether also hit the top 5 cryptocurrencies at 25.10.

Cryptocurrency market cap. Source: CoinMarketCap

Against the backdrop of the growth of the cryptocurrency market, many companies from the industry are thinking of doing an IPO. The Bakkt platform began trading on the New York Stock Exchange (NYSE) on October 18. The initial trading price was $9.45, on the first day it fell to $8.76. The stock is currently worth $16.61 (76% more than its original value), according to Market Watch.

Bakkt stock price. Source: Market Watch

American mining company Stronghold Digital Mining went public on NASDAQ and raised $127 million. On the first day of trading, the stock price rose from $19 to $28.9, or 52%. The company’s uniqueness is “green”: it uses the energy obtained from the coal industry waste for mining, and the waste from Stronghold’s own activities can be used as fertilizer to stabilize the soil.

Mining company Bitfury plans to list shares on the London or Amsterdam Euronext exchanges. In August, its US subsidiary Cipher Mining began trading on the NASDAQ through a merger with SPAC. If the company’s plan is implemented, the valuation could reach US$ 1 billion.

Mining

After the introduction of new restrictions for the cryptocurrency industry in China, miners started looking for new locations. America has become a leader when it comes to hashrate. About 35% of the computing power is in the country. The second place or 18% of the hashrate is in Kazakhstan, the third (11%) is in Russia, according to a study by the University of Cambridge in August 2021.

However, New York businessmen did not agree with the increased presence of miners in their state, they sent a letter to the governor about this. According to them, the launch of an abandoned coal mine in the district will have a negative impact on the ecology of the area.

Also amid regulatory pressure, mining equipment supplier Bitmain pulled out of sales in China in October. Hong Kong and Taiwan remain in the company’s list of sales markets.

Largest mining hub by total hashrate, as of August 2021. Source: University of Cambridge Study, visualization – FT

Hashrate on the bitcoin network is recovering from a decline in June 2021. It is now around 150 million terahashes per second, according to Blockchain.com as of October 25.

Overall hash rate. Source: Blockchain.com

Institutional player

October saw the launch of the first bitcoin futures ETF in the United States. The new financial instrument is a product of ProShares and is traded on the NYSE under the ticker BITO. The trading volume of this instrument on the first day reached almost $ 1 billion, according to Bloomberg.

During the week, BITO’s trading volume gradually declined, and prices changed direction, according to yahoo finance.

BITO price and trading volume. Source: Yahoo Finance

The parent company of the Chicago Board of Options Exchange Cboe has signed an agreement to purchase the derivatives trading platform ErisX. As a result of the deal, Cboe will gain access to the spot market for digital assets and financial derivatives. The platform plans to create investment products, including those based on cryptocurrencies and their derivatives.

Neobank BVNK UK will offer business clients a service for working with cryptocurrencies. Among the options are the ability to maintain accounts in cryptocurrencies, earn money from holding stablecoins USDC, USDT, and BTC, and invest in digital assets. Meanwhile, payments startup Stripe will open a cryptocurrency division. The company already had experience with digital assets, but in 2018 it discontinued support for cryptocurrencies.

NFT and DeFi

According to DappRadar research, NFT trading volume in the third quarter of 2021 increased by more than eight times and reached $10.7 billion. At the same time, according to The Block, the same indicator increased 15 times from quarter to quarter and by $ 6.4 billion In less than October, the trading volume of NFT amounted to $ 2.2 billion, of which $ 2.1 billion was recorded by the OpenSea marketplace.

Cryptocurrency exchange Coinbase plans to launch its own NFT marketplace by the end of the year. The platform for placing non-exchangeable tokens will operate on the Ethereum blockchain and support the ERC-721 and ERC-1155 standards. The development of a blockchain bridge with other cryptocurrencies is also in the company’s plans. In addition, among the functionality, they announce the ability of participants to communicate with each other within the platform, by analogy with social networks.

NFT trading volume by month. Source: Blok

Decentralized financial markets also developed in October. Ethereum and Multichain-based DeFi blocked funds increased 32% month-on-month to $106 billion on October 27. The same indicator, but based on the Binance Smart Chain, had a more modest growth of just 13%.

Amount of Ethereum-based funds blocked on DeFi. Source: Defipulse

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