This Crypto Asset Class Becomes Popular While Ethereum (ETH) Suffers Unrealized Losses: Glassnode Analysis

Glassnode, a market intelligence firm, reveals that despite the bloodbath in the crypto industry one particular niche within DeFi continues to be robust. 

Glassnote conducted the latest analysis and concluded that stablecoins are still experiencing capital inflow while several Ethereum holders stay underwater.

The combined capitalization of the top four stablecoins (USDT, USDC, BUSD, and DAI) too has surpassed the market cap of Ethereum by $3.0 billion. 

Throughout 2020-22, the aggregate market cap of the above-mentioned stablecoin in many instances has peaked at 50% of Ethereum’s market cap. However, in May and June this year, it experienced a dramatic break higher. Such an event has happened for the first time.

The report also mentions the new development of such stablecoin interest on ETH demonstrates:

• As the unit of account and quote asset, the dramatic increase of USD stablecoins. 
• The strength of demand for dollar-denominated liquidity over the recent years. The firm also noted that stablecoins now account for three of the top six digital assets by market cap.
• Over the course of 2020, the sheer magnitude of depreciation of the Ethereum ecosystem valuation.

Further, Glassnode notes that even though not every stablecoin is deployed on Ethereum, the data reveals that the participants in the market are taking a risk-off approach. 

As the disparity between the unit of account for margin debt (USD stablecoins) and the value of crypto collateral, this event points out the reason behind the occurrence of present deleveraging.

Moreover, the company assesses how the latest dip in the prices of Ethereum gas points toward the fact that a notable percentage of token holders are experiencing a significant unrealized amount of losses that have not been witnessed in around four years.

The current profitability of this cohort has dropped past break-even, to now having unrealized losses worth around 23% of the market cap, according to the Long-Term Holder Net Unrealized Profit/Loss (LTH-NUPL) metric.

ALSO READ – From bitcoin and Ethereum crashing upto 30% to Celsius halting withdrawals, hadn’t this week too much? 

This translates to the fact that on average, the strongest, and longest duration ETH investors are now underwater on their positions. September 2018 was the last instance of this, as a result, it went into even deeper capitulation as prices reached $84 from $230, experiencing a decrease of 64%.”

In concluding its analysis, Glassnode referred to historical cryptocurrency cycles, where it is seen that both price increases and leverage are bought through early innovation.

Liar Liar - Neil's June 2022 Investor Update

In stark contrast to Mike G's June 17th 2022 Update seen here. Neil Chandran is painting a vastly different picture of how the recent crash of NFT's and Crypto effects ViRSE and the subsequent "making whole" of his investors. If you recall Neil laid out his plans for issuing ViRSELands to the three rounds of investors one of them bing the GD (Garry Davidson) round in the May 2022 ViRSE Investor update seen here.

Mike attempts to calm the nerves of any of his Mike G Loan partners who have been worried about the deal due to the crypto market crash of late by issuing this statement:

The declining markets are having a very positive impact on the deal all of a sudden?

Dear ViRSE Stakeholder,

Mike must have amnesia because he has been drilling it into our heads for years that the Mike G Deal is definitely tied into the crypto market. He even makes the wild claim that the Chinese are manipulating the price of Bitcoin driving up in the days or weeks before past guaranteed closing dates that have come and gone.

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03.06.2021 

Elon Musk is the guy who bought 1.3B of bitcoin for 2 reasons I'm sure... 1: Sees ultimate escalation of BTC price. 2: The deal is structured via contract and final price point based upon the price of BTC the day it closes. ..

October 24 2020

Every time we get close to a closing, you can watch the price of BTC going up, cuz the Chinese are doing their part. They know when things are shaping up and happening in Hawaii.. and this is when the jump took place this week

February 6 2021

Bitcoin is 40k... Some ppl don’t think it can be manipulated, but small caps can be moved! So there’s a lot of talk about what this little company is doing….

May 4 2020

Everybody wants this deal, buyers, seller, attorneys, bank in Seoul, gov of Seoul, gov Japan, this thing is going to happen

Chinese are doing their part! BTC is up over 1000 points since last Tuesday, a major clue that they know about the incoming close!

November 14 2020

The exec VP said it would be the best time to be closing because the price of BTC is high

December 5 2020

What does 19k price of BTC do to the deal? Significant impact, it makes the value of the crypto currency being used in this transaction with the Asian communities, and as collateral offered by the seller, worth more money!

MARCH 28, 2020

2:45 Mega market crash 2 weeks ago, bigwigs have deep pockets and added more collateral to cover the lowering equities and cover the shortages in BTC

4:30 Deal was scheduled to close safely with BTC between the 8000$ and 10000$ levels range, last week BTC was down to 4200 and didn't expect this to keep going

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Finally below is Neil's latest ViRSE investor update for June 2022. It doesn't appear Neil is as optimistic regarding the crypto decline having a positive impact on the deal like Mike claims:

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We are sending a written update further to our video update at the beginning of the month to share progress on the status of the important month of June relating to activities as we continue to plan for repay.

The financial and particularly cryptocurrency markets have experienced a substantial downturn and correction in the past week which has undoubtedly affected financing activities. We do expect to continue with the plans for repayment as things stabilize but must assess the timeline and report back in terms of schedule for next steps.

https://www.bloomberg.com/news/articles/2022-06-15/crypto-altcoins-pop-in-post-fed-rally-that-swept-up-risk-assets

Notwithstanding market conditions the company has been promoting its launch at major industry events and Tracy Hutson recently have a Keynote address in Austin. We invite you to view the recording of the talk and also the short recap by the event emcee who independently verified the potential value of Metaverse “Land” citing a sale in the range of $400k for a plot.

CLICK HERE FOR THE VIDEO

Followers of our previous investor update videos should be reminded of stories from previous updates that have now come together to create this incomparable platform ViRSE.

Next week ViRSE will be continuing with its marketing plan with participation in the major conference of the industry; NFT.NYC 2022. Although the market may be subdued currently, our long awaited product has reached an important milestone in terms of completion and we can begin its roll out as well as the associated positive cash flow to commence for sharing with all stakeholders.

We will update again after NYC!

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PS. Neil has now released two promotional ViRSE videos and a few Investors updates and has yet to release the promised Mike G Deal video Mikey has been claiming is coming "next week" since early March 2022.

Mike G's Pants

Jun 13 - Jun 20 Good Crypto Weekly Market Summary

Quick weekly news:

• Blockchain's potential: How AI can change the decentralized ledger: Read more here
• 72 of the top 100 coins have fallen 90% or more: Here are the holdouts: Read more here
• Elon Musk gets hit with ‘ridiculous’ $258B Dogecoin lawsuit: Read more here

Other notable events include:

• Hester Peirce questions the lack of legal certainty around Bitcoin ETFs
• As part of its foray into the Canadian market, FTX intends to buy crypto exchange Bitvo

Hester Peirce questions the lack of legal certainty around Bitcoin ETFs
Although the crypto industry is expanding, legislative certainty around the handling of digital assets remains elusive.

Commissioner Hester Peirce, dubbed the "crypto mom" by the US Securities and Exchange Commission (SEC), recently emphasized this in remarks at "The Regulatory Transparency Project Conference on Regulating the New Crypto Ecosystem: Necessary Regulation or Crippling Future Innovation?"

Peirce began her lecture by highlighting the need to "regulating the new crypto ecosystem." While this is true, Peirce also stated that the crypto business is still looking for a regulator. She stated:

“A bipartisan bill announced last week attempts to answer that question. Some people in the crypto industry are celebrating the allocation of certain authorities to the Commodity Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission. This view is likely rooted in a disappointment that the SEC has not used more proactively the authorities it already has to sensibly regulate crypto.”

As part of its foray into the Canadian market, FTX intends to buy crypto exchange Bitvo

FTX Trading Limited said on Friday that it would buy Bitvo as part of the crypto exchange's drive to bring its products and services to Canadian users. The purchase is "subject to regulatory approval and customary closing conditions," according to the business, and is scheduled to conclude in the third quarter of 2022.

"We are delighted to enter the Canadian marketplace and continue to expand FTX's global reach,” said Sam Bankman-Fried, or SBF, the CEO of FTX. “Our expansion into Canada is another step in proactively working with cryptocurrency regulators in different geographies across the globe."

Also, make sure to check out the top altcoin gainers and losers of the week 👇🏼

https://preview.redd.it/8c5mv0r7or691.jpg?width=1200&format=pjpg&auto=webp&s=ed8ff8e6b16a72cdd3c38963cdfb7ba6622370c8

McKinsey: The Metaverse Could Generate $5 Trillion by 2030 — 'Simply Too Big to Be Ignored'

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https://preview.redd.it/4fcftt0zdq691.jpg?width=1280&format=pjpg&auto=webp&s=820c60f75874f926b2b624d31e3fb4c84ca0f745

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Global consulting firm McKinsey & Company has forecasted that the metaverse may generate up to $5 trillion by 2030. In addition, more than 80% of commerce could be impacted by activities in the metaverse.

Metaverse Could Generate $5 Trillion by 2030

Global management consulting firm McKinsey & Company published a report last week titled “Value creation in the metaverse.”

The report details: “Our work began by surveying more than 3,400 consumers and executives on metaverse adoption, its potential, and how it may shift behaviors. We also interviewed 13 senior leaders and metaverse experts.”

According to McKinsey:

By 2030, it is entirely plausible that more than 50 percent of live events could be held in the metaverse.

In addition, more than 80% of commerce could be impacted by activities in the metaverse, the firm described, adding that most learning, development, and collaboration could happen in the metaverse. Furthermore, McKinsey said, “We expect the average internet user to spend up to six hours a day in metaverse experiences by 2030.”

More than $120 billion has already flowed into the metaverse space in 2022 — more than double the $57 million in 2021, the report notes.

“While estimates vary widely, we forecast it [the metaverse] may generate up to $5 trillion by 2030,” the firm described. “Our estimate of the metaverse’s potential impact by 2030 is based on a bottom-up view of consumer and enterprise use cases, derived from discussions with around 20 internal and external experts … In short, our forecast is our best estimate given the very high levels of technical, regulatory, and societal uncertainty.”

Noting that the metaverse “will have a major impact” on people’s commercial and personal lives, the report concludes:

With its potential to generate up to $5 trillion in value by 2030, the metaverse is simply too big to be ignored.

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Several major banks and investment houses now have a presence in the metaverse, including JPMorgan, HSBC, Standard Chartered Bank, and Fidelity Investments.

In addition, a survey conducted in April showed that the metaverse will be the most popular place for crypto, with 70% of respondents agreeing that “cryptocurrency and blockchain technology advancements will be critical to shaping the future of the metaverse.”

Besides McKinsey, there are other estimates of the size of the metaverse. Citigroup predicted that the metaverse could be a $13 trillion opportunity with 5 billion users by 2030. Goldman Sachs sees the metaverse as an $8 trillion opportunity.

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Mckinsey, mckinsey metaverse, metaverse prediction, metaverse size

What do you think about the metaverse? Let us know in the comments section below.

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news source:https://news.bitcoin.com/mckinsey-the-metaverse-could-generate-5-trillion-by-2030-simply-too-big-to-be-ignored/