Ethereum overtakes Bitcoin in options market, prompting suggestion the flippening is imminent.

Flippening heck. Nah. Sorry. That's a bit rubbish, isn't it? I can do better. I can do better. Flippening… Flippening… Oh, it's just an awkward word, isn't it? It is an important one, though, and it's everywhere
at the moment. We're going to tell you why in just a second. There's also a lot of chat today about forks
on the Ethereum blockchain as well as price post-merge. Binance is unhappy too about a CoinDesk claim
it lost 90% of its customers. Do stay tuned for that one. Sales of NFTs, meanwhile, have slipped below
US$1 billion for the second month in a row. Is it the new normal for tokens? We're going to be asking that question. This is what's happening from Asia to the
world. Join thousands of NFT traders who already
start their day on CryptoSlam. Well, Ethereum is the big theme right now
in crypto markets.

There are obviously big questions about what's
going to happen after the merge, whenever the merge actually goes ahead. Ether has overtaken Bitcoin in the options
market for the first time on the Deribit exchange. Let's waste no time in figuring out what's
going on, what it all means. We're going to talk to Igneous Terrenus in
just a second. He's head of communications at Bybit. First, though, let's check in with the Chief
Marketing Officer at Bitcoin, Toya Zhang, who joins us. Toya, are you surprised at all by what we've
seen in the options market and tell us what exactly it means? It's not surprised to see that the open interest
of random options is overtaking Bitcoin because judging from the data that Bitcoin is actually
decreasing from early this year, the whole market conditions evolves and Ethereum is
the only cryptocurrency that has option product that has some market movement recently, the
price volatility recently and ahead of Ethereum merge the 2.0 coming people.

Also traders are starting to protect their
positions by adopting options trading. So that's what we see nowadays. Bitcoin is still dominant in terms of market
share, but considering the market volatility is even lower or the expected mark, a price
movement is lower than Ethereum's. So we have seen a surge of trading interest
of Ethereum. Toya, look, some have even suggested this
could potentially be a precursor to the flippening – a very awkward word, as I said, but a very
important moment, a long anticipated moment potentially when we see the market cap of
ether overtake that of Bitcoin, we are some way off that, of course, Ether's market cap
around US$196 billion compared to Bitcoin's US$440 billion as of 10 a.m.

Hong Kong time. Can you see it happening at all, let alone
soon? What does it mean? It's highly unlikely, I would say. But in this way it's highly unlikely that
Ethereum's price is going to overtake Bitcoin. Maybe the the trading volume and trading open
interest, but not the front price, short term wise, is really hinging on whether this merger
is going to be successful. Like another example is if Elon Musk has a
rocket launch that failed, I think the stock price will be heavily impacted as well. It's just an incident. It's an event. It's going to short term impact the the price. But longer term, I think it is going to be
highly correlated with the whole market.

All right, Ignenous, let's turn to you. At Bank of America has, meanwhile, been talking
about scalability. It said that Ethereum's needs to improve. Obviously, that is going to be a key reason
for the merge and this move to a proof of stake. Does it promise enough of an upgrade, though,
or could potentially other chains – Tron, Avalanche, Solana, steal Ethereum's Thunder? According to Vitalik Buterin, by the time
that Ethereum roadmap is completed, Ethereum can handle, you know, I think 100,000 transactions
per second.

That is a much larger than its current number. And then on top of those layer two solutions,
you can even do more than that. And I think kind of it's people tend to criticize,
say, oh, bitcoin is bad because P.O.W. and Ethereum is bad because it doesn't allow for
enough scalability. But the thing is like just because you have
scalability doesn't mean that your chain is perfect. You can have all the scalability, but if no
one comes to use it, then there's still it's still a moot point. The fact that Ethereum has the largest number
of developers, the largest number of investment and the largest number of just like happening
around it is just like a shorter cost than, say, like another alternative layer, one claiming
that they can have more throughput, but then maybe sometimes they break down seven times
in the first quarter of the year or, you know, maybe it's a ghost chain and no one uses. And another spanner in the works could be
forks. Chinese Miner Chandler Guo's proposal of a
fork spinoff of a proof of work for Ethereum has been mooted.

Why has it been suggested, do you think? What could it mean and how could it impact
the merge? The impetus is pretty simple. Like at the moment the miners like especially
in the past year, they are actually seeing record income revenue from those mining activities. And once you truly move to these light posts,
proof of stake, basically the miners are. Are going to be. They basically have no income. They are basically they are basically shouldering
the largest life loss in terms of both revenue and power. So they obviously are not going to just roll
over. But at the same time, is it going to be like
a long term viable, smart contract, alternative, smart contract platform? It's very, very unlikely. A lot of it will just really depend on the
consensus and who is building on it.

All right, thanks. Igneous Terrenus, head of comms at Bybit,
and Toya Zhang, chief marketing officer at Finance boss Changpeng Zhao has hit out at
CoinDesk over its reporting the crypto news outlet claimed on Monday Binance had lost
over 90% of its customers. That was after implementing Know Your Customer
Requirements. CoinDesk later corrected its claim. It said it was actually from anti-money laundering
requirements, not from know your customer wants, but CZ said the figure was ultimately
false anyway and that Binance market share has been increasing with more than US$1 billion
spent on compliance.

A Binance spokesperson actually confirmed
that to Forkast. They said the 90% figure actually related
to users of one specific entity, and that entity was off boarded as a result of violating
the platform's terms of use. Quote, Those users represented less than one
thousandths of a percent of our daily trading volume, according to the spokesperson who
added, believing that the largest exchange on the globe lost 90% of its user base is
frankly silly and can be verified on the blockchain. Meanwhile, Vauld has been given a three month
lifeline. The Singapore based exchange filed for creditor
protection recently.

It's now been extended until November 7th. It could be, though, extended further. Vauld has asked for six months grace and claims
it will get that as long as they keep authorities in the loop about what's going on. The company says talks are ongoing with Nexo
over a potential buyout deal. There is a 60-day exclusivity period on that
next offering that in September 4th. Vauld of course halted customer withdrawals
on July 4th. Funds will remain stuck until a deal is reached. Now NFTs are still struggling. They are certainly a long way from the giddy
heights that we saw them reach last year. According to CryptoSlam. The total value of secondary sales of NFTS
has just fallen under US$1 billion for the second month in a row. They were down to just US$650 million in July,
25% lower than in June. So what's causing the downturn? Well, Forkast's Lachlan Keller is here to
tell you. The chill of the crypto winter is deepening
in the NFT space. According to data from the NFT aggregation
site CryptoSlam, sales limped into July with a 25% drop from June.

Sales peaked in January at US$4.7 billion,
with more than 1 million unique buyers in the market. Blockchain author Anndy Lian told Forkast
that sales reflect very much how the markets are reacting. As for Yehuda Petscher of CryptoSlam, he thinks
the market is yet to find the bottom. However, he did find a bright spot in the
number of unique buyers in the market. Buyers fell just 7% month on month in July,
which remains higher than the same month last year. NFTs They're in a rough place right now, but
I still think in a very healthy place as far as the growth, as far as the kind of the number
of transactions. So is the downturn caused by a growing correlation
between the crypto and NFT markets?Petscher thinks so. There is definitely a correlation, yet points
early on when when NFTs started to boom, there was a lot of thought that NFTs were either
resilient to whichever way crypto was going or there were thoughts that if crypto was
really high, well, NFTs would maybe go the other way. And if crypto was low, well then these NFTs
were on discount. But they seem to be in lockstep when crypto
was down, NFTs seem to be down now.

I don't know exactly why it's playing out
that way and why it doesn't mirror what we thought, but they're attached at the hip. Despite this, Petscher is still expecting
growth in the market. Projects from Yugalabs continue to dominate
the top of the bestsellers list for the month, with Bored Ape Yacht Club, Mutant Ape Yacht
Club and Cryptopunks all in the top five. One growth area is art. Petscher said he sees attention beginning
to move away from NFTs as simply profile pictures to more fully flinch pieces of art as more
creators move into the space. Art has really kind of come to the forefront
that, again, while the profile pictures aren't so hot right now, the art is.

It just keeps growing. The number of artists entering the space just
keeps growing and the number of collectors seems to as well. Meanwhile, Petscher also told Forkast that
he expects sports to be another real growth area going forward, saying these tokens typically
involve increased utility, which is beginning to excite the market. They include Wagmi United, released by English
Minor Division Soccer Club Crawley Town FC. Fans gain the opportunity to vote and participate
in team decisions through the ownership of NFTs. I'm Lachlan Keller, Forkast. All right, that's it from us like and subscribe
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