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ETH plunged but 7 of Ethereum supply in DeFi is a mid-term bull sign

ETH plunged, but 7% of Ethereum supply in DeFi is a mid-term bull sign

ETH plunged, but 7% of Ethereum supply in DeFi is a mid-term bull sign
The price of Ether (ETH), the native currency of the Ethereum blockchain network, sharply dropped by 27% in five days.

Why it is optimistic for Ethereum in the longer term

Since July 1, the total value locked in DeFi protocols rose from less than $2 billion to $8.42 billion. The sharp increase in DeFi activity coincided with an ETH rally, causing the cryptocurrency to surge. 6.888 million ETH locked in DeFi. Source: Ryan Sean Adams, Defipulse.comOn the Ethereum blockchain network, users rely on ETH to process transactions or smart contracts. The fees on Ethereum, often called “gas” have spiked after the DeFi market started to become more crowded. The confluence of the growing demand for gas and the clogging Ethereum network likely fueled the upsurge of ETH. In the months ahead, Adams said he is “waiting for a spark.” When “fresh blood” enters the market, it could further buoy ETH.

He stated:

“Almost 7% of ETH supply is locked in DeFi But ETH price isn’t rising… why? My theory: this lockup, all the recent DeFi activity, it’s all crypto natives, ppl already long ETH, no fresh blood We haven’t seen the wave of new entrants yet. This is kindling. Waiting for a spark.”

There are two roadblocks to the mainstream adoption of DeFi.
First, the high fees make it difficult for new users to navigate. Users would have to calculate gas costs, raise to premium rates on non-custodial wallets like Metamask, which complicates the process.
Second, DeFi protocols are challenging to use for new users, as there are no third parties users could depend on. Over time, analysts expect the user experience of DeFi to become simpler, enabling an increase in new users.

Supply crisis

When the number of ETH on DeFi surpassed 5 million, Ethereumprice.org founder “0xNick” said a supply crisis is forming.

He said:

“ETH leveraged in #DeFi has passed 5,000,000 or ~4.50% of total circulating supply. It’s quite clear there’s a supply-side liquidity crisis forming here. yETH and Phase 0 will compound this.”

Whether the heightened level of selling pressure on both Ethereum and Bitcoin would hinder the momentum of DeFi remains uncertain. The majority of yield on DeFi protocols came from new governance tokens. In a steep ETH sell-off, the possibility of a governance token dump intensifies, which could reduce yield in the near term.

Article Produced By
Joseph Young

Joseph Young is a finance and tech journalist. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

Heiko Closhen, Entrepreneur

Here’s Where the Earliest ETH Ever Mined Ended Up 5 Years Later

Here’s Where the Earliest ETH Ever Mined Ended Up 5 Years Later
Coinfirm details what happened to the first mined Ethereum after the asset's launch in 2015.










Ethereum, a household name in the crypto industry, fired up its network on July 30, 2015,

ut what happened to the first ETH coin ever mined all those years ago? Blockchain analytics and Anti-Money Laundering company Coinfirm found out. “Another great example of the many benefits of blockchains such as Ethereum compared to the traditional space, we can see and understand the literal creation of value and how it moves," Coinfirm co-founder and CMO Grant Blaisdell told Cointelegraph, adding, "In a time where fiat printing by central banks and other major elements are absolutely unknown to the people and businesses effected by it.” *Image courtesy of Coinfirm.

The fist mined ETH coin came into existence five years back  

Ethereum's inaugural mined block attributed to the following address: 0x05a56e2d52c817161883f50c441c3228cfe54d9f, Coinfirm data showed. The address received a 5 ETH payout.  The noted address racked up 265.63 ETH in mining rewards over time, responsible for a total mining career of 53 blocks. A Kraken crypto exchange address received the first 5 ETH rewarded as payout for mining the inaugural block, Coinfirm data showed. One Wei of ETH, however, went to the address — 0xc130afe98f8c42e19bdacf8c6e63e48a44a26ca8. Wei hold as Ethereum's version of Satoshis, denominating the smallest divisible fraction of a 1 ETH. In total, the address sent ETH to three different locations on four separate occasions. 

Ethereum has come a long way

Ethereum has changed significantly since its first mined block, not only regarding its network, but also in its asset's price. Long-term hodlers likely reaped the benefits of the project, seeing the asset take its place among the largest assets in the industry.Data from ICODrops shows ETH priced at $0.31 per coin during its initial coin offering, or ICO — a hefty profit potential if owners held the asset until its 2018 peak near $1,400 per coin. Ethereum's network has also shown no shortage of changes over the years as it still wages toward a transition to proof-of-stake, or PoS, as part of Ethereum 2.0. 

Article Produced By
Benjamin Pirus

  • Benjamin (BJ) is a full-time writer and trader in the crypto space. A former college hockey player, BJ loves a good burger, volatile Bitcoin charts and chatting about crypto.


Heiko Closhen, Entrepreneur