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DeFi indexes crash despite strong fundamentals

Published

3 Monaten ago

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On August 28, Binance Futures launched its DeFi Composite Index, a basket of DeFi tokens that initially comprised 27% Chainlink (LINK) and 11% Aave (LEND) alongside nine other prominent DeFi tokens that made up between 6% and 9.5% of the index each. Updated weekly, the index now tracks 19 different crypto assets.

However the Binance Futures’ DeFi index has dropped more than 50% from an all-time high of $1,189 on its first day of trading, with the basket now changing hands for just $507.

Indexes tracking decentralized finance (DeFi) tokens have taken a beating over recent weeks following the popping of August’s DeFi bubble. 

DeFi Composite Index/USDT: Binance Futures

On September 15, TokenSets launched its ‘DeFi Pulse Index Set’ (DPI) — which is composed of tokens from the ten-largest decentralized finance protocols by total value locked (TVL), according to DeFi Pulse. The basket is rebalanced on the first day of every month, with each token’s sizing adjusted according to “its relative circulating market cap to other positions in the index.”

Despite the TVL of the DeFi sector continuing to push higher, the DPI has shed nearly one-third of its value since launching — dropping from $130 in mid-September to test support at $90.

DPI/USD: CoinGecko

Other crypto market data aggregators are signaling that DeFi is down, with only 16 of the 100 tokens categorized as ‘DeFi’ on CoinMarketCap posting gains of more than 1% over the past seven days.

Messari’s screener tracking the performance of Ethereum (ETH)-based assets also suggests the DeFi sector is currently down, posting weekly and monthly losses of roughly 2%.

Despite the heavy price retracements produced by most DeFi tokens, the sector’s fundamentals continue to strengthen. DeFi’s TVL has increased by nearly 40% from $7.4 billion over the past 30 days, while decentralized exchange (DEX) Uniswap generated more than $15 billion in volume last month — more than top U.S.-based centralized crypto asset exchange, Coinbase.



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Ethereum

Crypto enthusiasts could make $122K per year mining Ethereum with this setup

Published

1 Stunde ago

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Dezember 29, 2020

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Simon Byrne has taken at-home crypto mining to a whole new level as he looks to capitalize on Ethereum’s (ETH) enormous price potential. 

As first reported by Anthony Garreffa, Byrne has set up an ETH mining rig consisting of 78 GeForce RTX 3080 graphics cards. Although the RTX 3080 is marketed toward high-end PC gamers, crypto miners are using these powerful specs to enhance their capabilities.

With each card using roughly 300W of power, Byrne’s setup uses 23.4KW of energy. And that doesn’t even factor in associated costs like AC. All said, his electricity bill is estimated to run up to around $2,166 per month.

The RTX 3080 launched in September at a price of $699, but supply shortages have caused the per-unit cost to swell to $1,199. At the shortage price, that’s a price tag of $93,522 for Byrne’s setup.

Still, these costs could be offset by the operation’s mining capability. One GeForce RTX 3080 graphic card has a hash rate of around 83MH/s using Ethash, which should generate roughly 0.22236870 ETH per month, according to Garreffa. All 78 cards would therefore generate 17.3 ETH per month, which is equivalent to around $12,352 at today’s prices.

Stripping away the electricity costs, that’s roughly $10,200 per month or $122,000 per year. And that’s not factoring in Ethereum’s price potential during the next bull market.

Ether’s price zipped past $700 over the weekend, the first such move since mid-2018. The return of altseason, as some have predicted, could send ETH’s price even higher over the medium term as investors cycle from Bitcoin to other large-cap cryptocurrencies.