Qume Market Mondays- 27 July 2020

Welcome to another edition of Qume Market Mondays!

Crypto markets rallied last week with Bitcoin and Ether up around 8% and 32% respectively while traditional markets closed on weekly losses. The gold market is also booming but we suspect it may not be good news for the world economy.

Crypto

However, as crypto markets rallied, the correlation between Bitcoin and S&P 500 weakened as the later closed on losses.

The sudden surges in Ether prices may not be that surprising at all. After all this year Defi industry has seen significant growth and all of it is built on Ethereum.

The total locked-in Defi value just hit an all-time high of $3.3 bn. It has increased more than 3x this year. Total value locked in Uniswap also crossed $100 M mark.

This has had a significant impact on the Ethereum network as well. Transaction activity picked up on Ethereum, raising transaction costs which are keeping out small players to get in on the Defi bandwagon. Vitalik — One of the founders of the Ethereum network said that this makes Ethereum less secure.

The total number of Ethereum addresses are growing faster than they have for a long time. Although, it is still below the growth rate seen during the 2017 boom.

Since the spot volumes of Ether have increased, the collateralization levels of Maker DAO have also been increasing since last week.

U.S.-China tensions escalate

China also retaliated by ordering the U.S. to close its Consulate in Chengdu, China.

The threat of a rising dispute between the U.S. and China has gold prices moving higher.

XAU-USD Gold spot reached an all-time high level of $1900 per troy ounce last week.

As uncertainty in the world markets grows investors worry about the sustainability of their investments in stocks and bonds. As the yield on government bonds continue to drop, Gold is supposed to rally further during the pandemic.

However, a spike in the trading prices of the yellow metal has a whole different meaning for the crypto community as it is generally seen as a bullish indicator.

AMD vs Intel

Coming up this week:

Trade on the world’s fastest crypto derivatives exchange — www.qume.io

Other data sourced from skew.com

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