[ad_1]
Even after a sharp correction in decentralized finance (DeFi) currencies, it is clear that capital flows into this space. The total value locked in DeFi contracts recently hit $ 12 billion according to DeFi Pulse data. At the start of the year, this metric was closer to $ 400 million.
Interestingly, this rally has been largely attributed to retail investors and crypto-native “whales”.
Corresponding with the growth of the TVL of the DeFi space has been a parabolic surge in the number of Ethereum wallets that have interacted with top applications such as Uniswap, Compound and Aave.
Trends on the chain, however, show growing institutional and Silicon Valley influence in DeFi markets. Analysts believe this will be both beneficial and detrimental to DeFi in the long run.
Jump Trading Ethereum and DeFi holdings
The great thing about blockchain is that most of the time anyone can see anything. Any user has the opportunity to analyze the data to determine trends that would be impossible to achieve with a centralized system.
An Ethereum-focused data company called Nansen has capitalized on this, using proprietary data to link important identities and companies to addresses. Nansen recently raised $ 1.2 million in an initial round led by Mechanism Capital, founded by Andrew Kang.
According to Nansen data shared by Messari analyst Mason Nystrom, Jump Trading owns a large sum of Ethereum-based cryptocurrency.
Jump Trading is a massive proprietary trading firm that has over 700 employees based in offices in cities such as New York and London. In addition to algorithmic trading and creating markets, Jump Trading has an asset management arm, which presumably includes cryptocurrency investments. The company has been a key player in the cryptocurrency space, working behind the scenes where few peek.
According to the data, Jump Trading’s well-known Ethereum address holds at least $ 75 million worth of cryptocurrency, including millions of Compound’s COMP, Keep Network’s KEEP, HXRO, Numeraire (NMR), Orchid Protocol (OXT) and MakerDAO’s MKR. There appears to be a focus on DeFi with these investments.
Jump also invested in Serum and owns $ 32 million in SRM, Nystrom added.
The company is also believed to hold a significant amount of capital in Bitcoin.
Jump Trading holds at least $ 75 million in cryptocurrencies and is the eighth largest COMP token holder behind a16z and Polychain. Jump bought 47K COMP in the last 7 days!
Jump also contains KEEP, HXRO, NMR, OXT and MKR.
Jump has invested an undisclosed amount in Serum and owns 40 million SRM (~ $ 32 million) pic.twitter.com/wNML2DZJrW
– Mason Nystrom (@masonnystrom) November 4, 2020
It is unclear whether some of these tokens are used for market making, although tokens such as KEEP and HXRO appear to be longer-term positions than market making tools.
The downside of institutional money, explains the top trader
While the introduction of institutional money into DeFi is seen as bullish in the long run, it could have some negative effects.
As previously reported by CryptoSlate, analyst Qiao Wang thinks Silicon Valley will bubble with DeFi as they normally do with asset classes and paradigm-shifting technologies:
“It appears that Silicon Valley has finally discovered DeFi. Relative to cryptographic natives, they are typically lagging behind. They were late with BTC, ETH and this time DeFi. But if history is any indication, they will publicize it and create a huge bubble in the next few years. “
Do you like what you see? Sign up for daily updates.
[ad_2]Source link
