Dex-Trade News Digest: Elastos Partners for Bitcoin P2P Loans and Ether Spot ETFs' Massive Inflows
Elastos Partners With BEVM to Launch Bitcoin P2P Loans, Unlocking $1.3 Trillion in Dormant Value
In a groundbreaking move, Elastos, the SmartWeb ecosystem provider, has announced a partnership with Layer 2 provider BEVM to develop peer-to-peer (P2P) loans denominated in Bitcoin. This collaboration aims to unlock an estimated $1.3 trillion in dormant Layer 1 value, heralding what they describe as the “Third Age of Bitcoin.”
This innovative loan product will allow users to collateralize up to 80% of their Bitcoin assets, receiving Layer 2 credit, such as stablecoins, through Bitcoin-assured smart contracts. Central to this partnership is the Bitcoin Elastos Layer 2 (BeL2) protocol, launched in December 2023, which enhances Bitcoin’s capabilities by introducing staking and smart contracts directly within the Bitcoin network.
The collaboration also features the development of a BTC Oracle, which will provide real-time monitoring and analysis of Bitcoin-based activities. This Oracle, powered by BeL2, will offer valuable insights into Bitcoin usage patterns, empowering users to manage relationships through the currency. By avoiding network congestion and eliminating unnecessary fees, Elastos and BEVM aim to deliver a truly peer-to-peer loan product characterized by disintermediation and anonymity.
Hakan Sezikli, Co-founder of the BEVM Foundation, emphasized the transformative potential of this partnership, stating that the loan offering could revolutionize the finance sector.
US Tech-Savvy Consumers Show Increased Trust in Bitcoin
This partnership coincides with findings from Elastos' BIT (Bitcoin; Innovation & Trust) Index, revealing a surge in excitement for Bitcoin among US tech-savvy consumers. The index indicates that 63% of tech-savvy consumers are either “perfectly comfortable” or “excited” about transacting in Bitcoin, with many using it for storing savings and hedging against inflation. Over half of US respondents engage in Bitcoin transactions at least monthly, and 24% trust Bitcoin more than traditional methods like online banking or cash for safeguarding their savings.
Chen from Elastos envisions a future where users control their data, free from the influence of Web 2 giants. He emphasized the importance of developing technologies that simplify Bitcoin interaction and transactions.
Steno Research Predicts $15-20 Billion Inflows into Ether Spot ETFs, Targeting $6,500 Price
Steno Research forecasts that net inflows into spot Ether exchange-traded funds (ETFs) could reach an impressive $20 billion within the first year. According to senior analyst Mads Eberhardt, these substantial inflows could drive Ether’s value up to $6,500 by the end of the year. The launch of spot Ether ETFs in the US is imminent, following the recent approval of filings by the Securities and Exchange Commission (SEC).
The expected inflows into these ETFs are projected to significantly impact Ether’s value due to its lower market capitalization and liquidity compared to Bitcoin. If the projected inflows materialize, the ether/bitcoin ratio could strengthen to 0.065 by the end of the year.
Mixed Predictions for Ether's Future Price
While Steno Research is optimistic about the outlook for spot Ether ETF flows, other entities offer varied predictions. Galaxy Research estimates $5 billion of net inflows into spot Ether ETFs within the first five months, while Bitwise Asset Manager anticipates $15 billion in net inflows within the initial 18 months.
Conversely, Andrew Kang of Mechanism Capital predicts that Ether’s price could drop to as low as $2,400 following the launch of spot ETFs. He suggests that Ether attracts less institutional interest compared to Bitcoin, and there are limited incentives for converting spot Ether into ETF form.
The Bottom Line
These developments highlight significant advancements in the cryptocurrency market, from innovative Bitcoin P2P loans targeting dormant value to substantial expected inflows into Ether spot ETFs. Elastos’ partnership with BEVM and the growing trust in Bitcoin among US tech-savvy consumers underscore the evolving landscape of digital finance. Meanwhile, the varied predictions for Ether’s future price reflect the market's dynamic nature as it anticipates the launch of new financial products.
