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Understanding Defi Flash Loans: Complex Attacks, Inflation and Composable Systems

22/02/2020 by Idelto Editor

Two recent flash loans on the defi platform Bzx have started a fierce debate about the subject of using uncollateralized loans in a quick trade. Essentially these flash loans are providing people with the ability to borrow crypto without relinquishing any collateral. The scheme was used to exploit funds from the Bzx platform twice, as an individual or group gathered around $954,000 in a matter of four days from well-executed flash loans.

Also Read: Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor

Flash Loans: Attack or Innovative Forms of Defi?

Decentralized finance (defi) flash loans is a hot topic right now, after the lending platform Bzx saw $954,000 siphoned from two flash loans. The first one took place on February 14 and then another Bzx ‘attack’ occurred on February 18. The method of execution called a “flash loan” has been a contentious subject because people don’t necessarily agree that flash loans are an “attack,” “hack,” or “exploit,” because the scheme merely follows the rules of the said contract and loan system. A number of Ethereum proponents believe flash loans are useful and open up new avenues of decentralized finance.

find the flash lenders:

👩🏻👩🏼👩🏽👩🏾👩🏿👩🏻👩🏼👩🏽👩🏾👩🏿
👨🏻👨🏼👨🏽👨🏾👨🏿👨🏻👨🏼👨🏽👨🏾👨🏿
👧🏻👧🏼👧🏽👧🏾👧🏿👧🏻👧🏼👧🏽👧🏾👧🏿
👦🏻👦🏼👦🏽👦🏾👦🏿👦🏻👦🏼👦🏽👦🏾👦🏿

can’t find them?

that’s because they live among us, looking like normal people. the only real difference is they now have the access to whale-like liquidity.

— stani.eth ’Flash Loans Maximalist’ Kulechov 👻 (@StaniKulechov) February 20, 2020

During the first big flash loan, the so-called hacker got 10,000 loaned ETH from the application Dydx and snagged 112 wrapped bitcoin (WBTC) from the defi protocol Compound. The individual then sent around 1,300 ETH to Bzx’s Fulcrum trading platform and then borrowed 5,637 ETH via Kyber’s Uniswap for around 51 WBTC. From here, that particular move caused significant slippage (the difference between the expected price of certain trades and the price of trade execution) within the market. After that, the individual made a profit from the 112 WBTC loan they first obtained from Compound and raked in roughly $318,000 in profit. This single transaction allowed the individual to easily pay back the 10,000 ETH from Dydx.

1/ WHAT WE KNOW SO FAR: There was a second attack. This attack was completely different from the first. This time it was an oracle manipulation attack, a modified version of the original exploit we worked closely with @samczsun to fix: https://t.co/lDcyDQf44i

— bZx (@bzxHQ) February 18, 2020

Now as confusing as all that sounds, basically a flash loan is the ability to leverage uncollateralized defi capital in order to profit from a well-executed dex trade. The process is done very quickly and efficiently in order to curb the risk of losing funds during execution. The person performing a flash loan can use their assets to drop the price across markets in order to trigger defi apps with oracles to sell at the desired spot price. Defi apps like Bzx, Dydx, and Compound use price oracles to determine the prices across various decentralized exchanges (DEX) like Kyber’s Uniswap.

Behind the scenes of a @MakerDAO collateral swap using @AaveAave Flash Loans, @UniswapExchange and @chainlink oracles 📸 @daveytea @RyanSAdams @econoar @nanexcool @EthereumMemes $LEND $LINK $ETH #Woah pic.twitter.com/NyKo1JHV6x

— Jordan LG 👻 (@JordanLzG) February 20, 2020

The pricing information often has large discrepancies across exchanges, which allow for market anomalies like slippage and arbitrage. The speed of a flash loan’s execution is so fast because the loan, trade, settlement, and profits are executed simultaneously in a single transaction. The individual who performed the first massively sized flash loan against Bzx simply borrowed funds from the defi platform’s smart contract without any collateral and they were able to pay the loan back in a single transaction.

Flash Loan Demos, Inflation and Deflation, and the Flavors of Flash Loans

Following the two massive flash loans that took place on Bzx’s Fulcrum trading platform, the crypto community continues to debate the topic on social media and forums with great fervor. There has been deep analysis and studies done on the subject of flash loans and people debating about whether the acts are malicious. Moreover, some individuals have shown the public how simple it is to execute a flash loan using a defi platform and DEX.

Flash loans are communism. Only rich ppl are allowed to manipulate markets

— Joseph Delong (@josephdelong) February 18, 2020

On Twitter, Fiona Kobayashi showed crypto enthusiasts how she executed a small flash loan. In a single transaction, Kobayashi got a loan of ETH from the platform Aave with no collateral. She then exchanged it for BAT tokens on Uniswap and moved the BAT to Makerdao platform as collateral and withdrew ETH collateral from Maker. After that, Kobayashi repaid her loan on Aave and used Rosco Kalis’ revoke.cash platform to “revoke the original vault’s ERC allowances.”

“Not sure why I ended up with an extra $4.70 worth of DAI, it was supposed to be a net neutral flash loan,” Kobayashi tweeted.

A few people think flash loans can cause inflation, similar to how central banks lower circulating supply and then they simply adjust rates. “Inflation happens, but so does deflation too, [the] Fed can lower circulating supply at any time and raise interest rates,” an individual remarked after the Bzx flash loan. “Flash loan exploit inflation is crazy,” another person tweeted on February 18. The reason people believe that flash loans could cause erratic inflation and deflation is because when a flash loan is executed, the profits are being taken from somewhere within the chain of events in the single transaction. Oracles are easily being gamed and developers may have to come up with new ideas to gather verifiable price data.

Can someone flash loan attack ProgPoW?

— eric.eth (@econoar) February 22, 2020

Emilio Frangella from the Aave Protocol wrote a blog post about the subject on February 12 and he said that flash loans were innovative. “Flash Loans have especially captured the attention of the defi crowd and we expect other defi protocols to follow our lead and implement their flavors of flash loans as well. Like any other building block of Ethereum composability, flash loans quickly allowed new creative ideas to become reality,” Frangella wrote. The Aave Protocol team member further added:

Prime examples of this are Arbitragedao (a DAO with the goal to market make arbitrage opportunities by leveraging the flash loans) and the Maker Vault collateral swapper (which allows you to swap your collateral from ETH to BAT in one transaction).

What do you think about flash loans in the crypto world? Let us know what you think about this topic in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock, Etherscan, Twitter, Fair Use, Bzx Fulcrum, and Pixabay.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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Market Update: Bitcoin Halving Hype, Golden Cross Signals, and GBTC’s 41% Premium

19/02/2020 by Idelto Editor

Cryptocurrency markets have seen fresh gains on Wednesday after the slight pullback that started two days prior. Most of the top 10 digital currencies by market cap have gained between 4-8% and the entire market valuation of all cryptos has hovered between $295-300 billion.

Also Read: Voluntary Financing: Bitcoin Cash Devs Reveal Noncustodial Funding App Flipstarter

Crypto Markets Shave Prior Losses and Show Daily Gains

On Wednesday, February 19, digital currency markets are in a sea of green again after a day or two of losses throughout Sunday and Monday’s trading sessions. Today most of the top 10 digital assets besides tether (USDT) are up between 4-8% but Tezos (XTZ) has captured the tenth position as XTZ is up 17.8% in the last 24 hours. BTC has once again surpassed the $10K zone and is currently meandering around $10,075-10,150 per coin. The digital asset is up over 4.7% today and has erased most of the losses from two days ago.

Ethereum is up 5.7% during the last 24 hours and has gained around 8.8% during the last seven days. Right now, ETH is swapping for $279 per coin and market aggregators show $3.8 billion in reported trade volume but Messari.io’s real volume for ETH today is only $646 million. XRP still commands the third-largest market cap and each coin is trading for $0.29. The currency has gained over 4% during the last 24 hours of trades.

Bitcoin Cash (BCH/USD) Market Action

Bitcoin cash (BCH) currently captures the fourth position on Wednesday as far as market valuation is concerned. At press time, BCH is trading for $413 per coin and the currency has gained 5% today. The top five pairs swapped with BCH today are USDT (67.07%), BTC (17.53%), USD (10.01%), KRW (2.07%), and ETH (1.50%). The reported volume on Wednesday for BCH is $750 million, but real volume data shows $37 million in 24-hour trades. During the last 30 days, BCH has gained 3.4% but 90-day data shows around 84% in gains. For the last year, bitcoin cash has done very well, gaining 193% during the last 12 months.

Fxstreet analyst John Isige explained on Wednesday that the BCH/USD market managed to hold the $400 threshold and is currently focused on $500. ”Bitcoin Cash bulls struggle to beat the seller congestion at $425 in readiness for gains aiming for $500,” Isige noted. “Development in terms of recovery has been very forthcoming in a couple of days after BCH downside took a breather at $375. Aiding in the support was the 200SMA in the 4-hour timeframe. BCH/USD is back in the limelight above $400 and focused on sustaining gains above $425,” the analyst added.

Searches for the Term ‘Bitcoin Halving’ Surge

Every 210,000 blocks, the BTC block mining reward halves and the coin reward decreases for miners hunting for blocks. The same event will happen on the BCH and BSV networks one month prior to BTC’s change, as coin rewards will be reduced from 12.5 to 6.25 coins. Right now, conversations about the halving are trending on social media platforms and forums like Twitter and Reddit.

Alongside this, Google Trends reveals searches for the term “bitcoin halving” have been steadily gaining traction. BTC’s halving is estimated to take place on May 12, 2020, 82 days from now. Google Trends (GT) shows the term “bitcoin halving” has a 75 value and recently crossed a GT value of 50. It’s following a similar pattern to four years ago prior to the BTC halving in 2016.

The Confounded Golden Cross

This week traders have been talking about BTC charts showing a bullish indicator called the “golden cross” on social media and forums. Basically this means that the 50-day moving average crossed the 200-day moving average and this signal usually precedes a bull run. The golden cross is the opposite of a “death cross” which is a bearish signal. When the short-term moving average jumps above the long-term moving average, traders often believe a major rally will follow.

#BTC …. BTC will touch 9k than continue upside movement…and also golden cross coming..so still in bullish on BTC..Not panic selling 9k is buying opportunity#BTC #ETC #EOS #ETH #LTC #BTC #cryptocurrencies #crypto #bitcoin #Altcoins #Binance #LTC #EOS #trading #blockchains pic.twitter.com/sDZIaksIkG

— Kvcrypto (@Kvcrypto1) February 17, 2020

The popular bitcoin trader Cryptobull explained the golden cross move when it happened on February 17. “Ladies and gentlemen… let me present the golden cross — The last time this happened was April 24th, 2019 at $5,400 — Before that was October 28th, 2015 at $300,” Cryptobull tweeted. However, not all golden crosses and death crosses materialize into anything, as one Twitter personality recently pointed out. “1/3 bitcoin golden cross/death cross-analysis,” said Sh___coin Riddler. “Since 2014 there were 10 golden/death crosses (50MA crossing 200MA). In 3 of 5 death crosses cases BTC price didn’t dump after the event [and] in 2 of 4 golden crosses cases BTC price didn’t pump after the event.”

Grayscale’s GBTC Premium 41%

News.Bitcoin.com recently reported on Grayscale’s Bitcoin Trust (GBTC) seeing an uptick in demand and a 20-30% premium. This means investors are willing to pay more for GBTC than simply purchasing BTC on a traditional spot market. Investors who want to participate in a regulated environment have invested in Grayscale’s GBTC and this week the premium for the investment vehicle jumped to 41%. The CEO of Blockforce Capital, Eric Ervin, noticed this trend on February 18 and premiums have continued nearly every day since. “GBTC premium now up to 41%,” Ervin tweeted. “People want exposure to cryptocurrency and are willing to pay a significant premium to get it. Dear SEC, it is time for an ETF. Give investors the opportunity to make their own decisions.”

The Biggest Stablecoin Is Rumored to Be Coming to Bitcoin Cash

In a video posted to the Cryptofinder Youtube channel, the executive chairman of Bitcoin.com, Roger Ver, discussed the importance of the Simple Ledger Protocol (SLP) framework on the BCH network. Ver explained how anyone can issue tokens using BCH in a permissionless manner and he talked about stablecoins leveraging the SLP infrastructure.

During the video, Ver noted that “a little birdie told me the world’s biggest stablecoin, Tether, is about to launch on top of SLP as well.” Tether, the largest stablecoin by market cap and by transactions, is hosted on a variety of blockchains like Ethereum, Tron, and Algorand. News.Bitcoin.com reached out to members of the Tether team and our newsdesk will have more on this story soon.

Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and market updates are intended for informational purposes only and should not be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Cryptocurrency prices referenced in this article were recorded at 9:30 a.m. ET on February 19, 2020.

Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, Eric Ervin’s tweet, Fair Use, Wiki Commons, Twitter, and Google Trends.

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BTC’s Market Share Drops Consecutively for 14 Days – Dominance Ratio Slides to 60%

15/02/2020 by Idelto Editor

Cryptocurrency markets have been climbing higher in value as coins like BTC have gained over 19% during the last 90 days. However, many other digital assets have seen much larger gains and BTC dominance has been sliding downwards consecutively for the last 14 days.

Also Read: Craig Wright’s $100B Theft Claim – BTC and BCH Used His Database Without Permission

BTC’s Ratio of Market Dominance Sinks to 60%

During the last few weeks, BTC dominance has dropped from a high of 70% to a low of 60%. The term and metric BTC dominance is the ratio of BTC’s market capitalization versus all the other coin market caps. So the current market valuation of the entire cryptoconomy is around $305 billion and BTC captures 61% of that today with a market valuation of around $186 billion. BTC has always been the world’s largest cryptocurrency by market capitalization and prior to February 2017, the asset captured more than 80% of the entire cryptoconomy for eight years straight. However, the video tweet below shared in 2018 shows how crypto dominance metrics can change drastically over time.

The evolution of the altcoin market share and BTC dominance #cryptocurrency #cryptosec #Crypto #cryptotwitter #altcoins #cryptotrader #cryptotrading #blockchain #btc #eth #bch #eos #ltc #xrp #bitfinex #cryptoexchange #binance #bitmex #crypto #cryptocurrencynews#cryptotrading pic.twitter.com/1IcerX7BHC

— Cryptosec (@vivasatori) September 15, 2018

After February 26, 2017, BTC dominance slid from 85% to a low of 40% one month later. At the same time, Ethereum (ETH) spiked to an all-time high of 31% of the cryptoconomy’s overall valuation and XRP was at 17%. A number of people believe that BTC’s rising network fees and clogged backlog (mempool) of transactions in 2017 and 2018 attributed to the decline. Alongside this, many crypto proponents and traders referred to the time as “alt season,” in which a variety of alternative digital assets reduce BTC’s share of the entire coin market cap.

After BTC dropped to a low of 40%, the dominance metric slid even lower in January 2018 as BTC dominance was around 33%. Since then, the digital currency has regained a lot of market cap dominance and BTC had risen to close to 70% on September 8, 2019. However, after the jump to 70%, BTC’s share of the cryptoconomy has been sliding once again. From September’s high of 70%, BTC dominance has dropped down to 60% on February 15, 2020, losing roughly 10%. The sliding metric has been due to other digital assets that have done far better percentage-wise as far as gains are concerned. For instance, during the last 90 days, BTC has gained 19%, but ETH jumped 52%, XRP 26%, BCH 82%, and BSV rose by 185% in that time period. BTC dominance has slid consecutively for the last 14 days straight to its current low and only today has it started to rise again slightly. It’s been one of the longest downward slides for BTC dominance since September 2018.

Are Market Valuations and Dominance Important Metrics?

Even though BTC dominance is a metric used by crypto market price aggregation websites, many proponents do not believe the data reflects any real value. Market caps only reflect the current worth of every coin circulating in real-time and some people think the data can be skewed. Despite the fact that a number of crypto proponents believe market caps and dominance are inadequate value metrics and do not necessarily reflect the project’s real worth, these metrics are used by the majority of crypto enthusiasts. In the early days, after assets like namecoin, ripple, litecoin, and mastercoin appeared, the website coinmarketcap.com was developed and the public were able to compare coins based on market valuations. There’s now a great variety of coin market cap aggregation websites that show similar data and provide other statistics too like trade volumes.

Despite some believing that market cap lists are not a good reflection of real value, individuals find the data very important. As mentioned above, investors believe there are significant reasons for BTC dominance declines, whether it was the network stress or alt season that prompted the decline from 85% to 33%. Market caps and dominance metrics show investors the level of risk involved as small-caps, mid-caps, and large-caps see different types of movements.

Traditionally, mid to small market caps are far more volatile than larger-cap cryptocurrencies and they can spike in price and drop in value very quickly. People view market valuation and dominance as a reliability metric because large caps usually present less risk to investors. Smaller crypto market caps provide investors with high-risk trading situations which can be good or bad depending on how the individual is trading.

The fact that BTC lost 61% of the dominance it commanded over the entire cryptoconomy between February 2017 and January 2018 is a metric of great importance to a lot of crypto enthusiasts. When BTC’s dominance climbed from 33% back to 70%, some maximalists and hardcore BTC supporters said that “altcoins were dying.” Although ever since this, altcoin values have been outperforming BTC by a long shot. Lesser known coins are also outpacing many coins in the top 20. BCH and ETH’s rise during the last 90 days did outperform BTC, but coins like presearch (PRE 2,641%), cryptaur (CPT 1,351%), htmlcoin (HTML 333%), vetri (VLD 322%), and Digixdao (DGD 308%) did even better.

Where do you see the cryptocurrency markets heading from here? Let us know what you think about this subject in the comments section below.

Images via Shutterstock, Trading View, Bitcoin.com Markets, Twitter, coinmarketcap.com, Fair Use, Pixabay, and Wiki Commons.

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Bitpay Enables Bitcoin Cash Payments at 100,000 Point-of-Sale Devices

13/02/2020 by Idelto Editor

Bitpay Partnership With Poynt Enables Crypto Payments at 100,000 Point-of-Sale Devices

On February 11, the Atlanta-based payment processor Bitpay announced the firm’s recent partnership with the company Poynt. Now retailers will be able to support cryptocurrency payments using point-of-sale devices and crypto users will be able to pay with digital currencies at more than 100,000 Poynt retailers worldwide.

Also Read: Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet

Crypto Payments Available at 100,000 Poynt Retailers

Bitpay has revealed the company is collaborating with the open commerce platform Poynt in order to bolster crypto payments worldwide. On Tuesday, Bitpay announced the integration of Bitpay’s cryptocurrency payments service with Poynt’s Smart Terminal point-of-sale (PoS) devices. “With just the scan of a QR code at checkout, consumers can now pay merchants using Poynt’s devices with the currency of their choice, including bitcoin, bitcoin cash, ethereum, and three dollar-pegged stablecoins,” the firm disclosed. Bitpay already processes over a billion dollars in crypto payments every year and the firm’s CEO and cofounder Stephen Pair is excited about expanding with the new partnership.

“We’re thrilled to team up with Poynt, who’s proven to be a real driver of point of sale innovation,” Pair noted during the announcement. “It’s a massive growth opportunity for Bitpay and an important milestone in our now nine-year mission to make payments faster, more secure and less expensive for people and businesses.”

The Poynt point-of-sale (PoS) smart terminal.

Poynt Believes Crypto Will Help Expand the Firm’s Growth

Poynt is known for building it’s Smart Terminal PoS device that works with an app and can “easily email receipts, refund transactions, and settle with the tap of a button.” Devices have a hybrid MSR/chip reader and the machine supports major NFC/contactless schemes. It also has a front and back camera like a smartphone and connects to WiFi, with optional features like LTE/3G cellular modem support as well. Poynt PoS devices further support audio and they come with a stereo speaker and built-in microphone. The firm thinks expanding payment options to include digital currencies is simply a natural progression.

“Poynt was built on the idea of open commerce,” the company’s founder and CEO Osama Bedier said. “Poynt OS lays the foundation for developers and merchants to collaborate and drive limitless growth. The addition of open-source, decentralized currencies like Bitcoin is a natural fit in our open-commerce environment.”

Bitpay and Poynt’s partnership enables cryptocurrency payments at point-of-sale at 100,000 locations worldwide.

According to Bedier, Poynt recently touched a milestone of nine billion dollars in gross payment volume in a twelve-month period. The open commerce firm believes expanding to crypto payments will keep that trend going forward.

What do you think about Bitpay partnering with Poynt’s open commerce infrastructure? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Image credits: Shutterstock, Poynt, Bitpay, Fair Use, Wiki Commons, and Pixabay.

Did you know Bitcoin.com offers a slew of merchant solutions for online retailers to brick-and-mortar shops? Check out the web portal bitcoin.com/merchant-solutions and start accepting bitcoin cash (BCH) today.

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Ethereum vs Tron: Comparing Data, Defi and Stablecoins from Both Chains After Viral Tweet

10/02/2020 by Idelto Editor

Ethereum vs Tron: Comparing Data from Both Networks After Viral Tweet

On February 7, Cold Card and Opendime creator, Rodolfo Novak (also known as NVK), tweeted a picture of himself with Tron founder Justin Sun and Blockstream’s CEO Adam Back. Novak said “Ethereum was over” and the three had a plan to move Tron to Liquid, a network that leverages the BTC chain. Whether the tweet was a joke or not, the picture got the crypto community fired up and it initiated heated debates about the legitimacy of both Tron and Ethereum.

Also Read: IOTA, EOS, XLM, ADA – 4 ‘Bitcoin Contenders’ With Zero Use Cases and Barely Any Infrastructure

ETH and TRX Community Debate After Viral Tweet

One could consider the crypto networks Tron (TRX) and Ethereum (ETH) competitors within the cryptoconomy. While the ETH network is older than TRX, they both have similar goals and do similar things. As Ethereum strives to be a “world computer,” Tron aims to accomplish this feat as well, but with more of a focus on entertainment. They both leverage concepts like decentralized finance (defi), decentralized apps (dapps) and permissionless systems for token creation (ERC20 & TRC20).

When Novak tweeted about moving TRX to the Liquid network, lots of people considered it a joke, while others took the tweet very seriously. Despite what people think about Tron or Ethereum, news.Bitcoin.com decided to look at the two networks to see how they both compare as far as onchain data, market statistics, development, funds locked in defi, and both project’s social media ratings. We want to let our readers decide which project is better by weighing the pros and cons of each crypto without all the opinions.

We have a plan. #Ethereum is over. Tron moving to #liquidnetwork on #bitcoin. Cc @udiWertheimer pic.twitter.com/XEuw11PQKX

— NVK (@nvk) February 8, 2020

Tron vs. Ethereum: Stacking Up the Data

On February 7, 2020, Coin Metrics data shows the BTC chain processed roughly 333,000 onchain transactions. ETH saw a total of 626,000 transactions in the 24 hour period while TRX did around 816,000 on Friday. While ETH has been consistently above BTC transactions per day, TRX has also been consistently above ETH’s daily average.

Both Ethereum and Tron have tokens that represent the stablecoin tether (USDT), but the ETH chain has a whole lot more. Statistics from Tronscan on Saturday show that there’s 814 million USDT held on the Tron network. Today’s data stemming from Etherscan indicates there’s a whopping 2.2 billion USDT leveraging the ETH chain.

As far as stablecoin usage is concerned, Ethereum outpaces Tron by a long shot, as the chain also has other stablecoin tokens like PAX, USDC, and TUSD. But it’s true that both networks have seen more tethers migrate to each blockchain during certain periods of 2019. In fact, as far as funds locked into defi, Ethereum takes the cake when it comes to decentralized finance and centralized finance (cefi) applications as well, with projects like Maker, Compound, and Instadapp. Defi applications on ETH touched a milestone on February 6, when the total value locked (TVL) surpassed $1 billion.

Where market action and fiat value are the focus, tron (TRX) is trading for $0.02 per coin and the cryptocurrency is still down 92% from its all-time high (ATH) of $0.30. Ethereum (ETH) is swapping for $224 per coin at the time of publication, which is 84% down from its ATH of $1,431. Against USD over the last 12 months, TRX is down 18% and against BTC the crypto is down 69%. With ETH the crypto has gained 86% against the U.S. dollar in a year but against BTC it is still down 30%.

Trade volume data from Messari shows the reported volume for TRX is around $203 million in the last 24 hours, but Messari’s “real volume” index indicates there’s only been $49 million in TRX trades. As far as ETH is concerned, reported trade volume on Saturday is roughly $3.5 billion, but again Messari’s “real volume” index shows less at $349 million. Tallying up the aforementioned statistics shows that ETH was a better investment over the last year, it has more liquidity, and trade volume as well.

As far as yearly Github activity, coincheckup.com data shows that Tron has outpaced ETH development during the last 12 months in regard to tallied commits. The Coindesk social media benchmark shows ETH has around 451,000 Reddit subscribers and the same number of Twitter followers giving the project a 23% social rating.

Tron’s Reddit community has about 71,000 subscribers and Tron has around 497,000 Twitter followers giving the project a 9.7% social rating. ETH has around 2,000 Github watchers and roughly 445 developers contributing to the ETH codebase. Tron has about 309 Github watchers and 118 developers that have contributed to the TRX Github repository. While there are 9,200 forks of Ethereum, there are only 673 Tron forks.

The Ethereum project got a head start and Tron is not as old of a blockchain in comparison. They both have influential leaders at the helm with Justin Sun and Vitalik Buterin who are both still around to weigh in with opinions, unlike Satoshi. Both projects have a lot of investors who believe that either ETH or TRX will be dominant and there are definitely those that think both will serve a purpose. Either way, both exist in prominent market positions today as ETH and TRX are in the top 15 largest market capitalization list and might be for quite some time.

What do you think about these two cryptocurrencies? Do you think Tron is better than Ethereum or vice versa? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, Coin Metrics, Markets.Bitcoin.com, coincheckup.com, Coindesk’s social media benchmark, defipulse.com, Etherscan, Tronscan, Fair Use, and Pixabay.

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