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3 key reasons why the DeFi sector is booming again

Republished by Plato

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Data from Messari shows that over the past 30-days the majority of tokens listed on the site’s DeFi Assets index have rallied by more than 20%. A few standouts like Maker (MKR) Synthetic (SNX) and SushiSwap (SUSHI) gained more than 100% during the same time frame. 

DeFi assets index. Source: Messari.io

From Jan. 1 to Jan. 9, the decentralized finance sector saw its total value locked (TVL) rise from $15.678 billion to a record-high $23.092 billion and this recovery to a new all-time high came about 4 months after the DeFi bull market abruptly came to an end.

Now that Bitcoin (BTC) and Ether (ETH) have rallied to multi-year highs, investors are again turning their attention to the DeFi sector and its likely that the start of a new bull market, soaring TVL at the top DeFi platforms and the steady integration of Ethereum alternatives are the primary reasons for the current surge.

Bitcoin and Ethereum carry the market higher

The last few months of bullish price action from Bitcoin and Ether are undoubtedly having a positive effect on the entire cryptocurrency market. Currently, the combined market cap of the top two digital assets is more than $850 billion, comprising 80% of the total value of the cryptocurrency market.

As the price of the top cryptocurrencies rise, some investors look for ways to maximize their profits and the high staking yields and four-digit investment returns offered by many of the small cap tokens have proven to be an irresistible lure to traders.

Historical data shows that when Bitcoin and Ethereum price are rallying, altcoins tend to follow and when Bitcoin consolidates in a ‘predicatable’ range, altcoins and DeFi tokens usually rally. This market dynamic could partially explain the recent surge in DeFi tokens.

Total value locked is on the rise

Data from DeFi Pulse shows that the total value locked across DeFi protocols increased from $15.36 billion to $22.74 billion over the past 10 days. This sharp increase in TVL coincides with Bitcoin’s rally from $29,000 to it’s $41,950 all-time high and during the same time Ether price also rose from $740 to $1,300.

The total value locked in DeFi. Source: Defipulse.com

A number of high profile partnerships and mergers between some of the top-ranked DeFi protocols is also attracting new funds to the DeFi sector. In early December, Yearn.finance and SushiSwap, two of the top DeFi projects, announced a merger that saw the protocols develop resources and integrate their liquidity pools to increase the total value locked.

Developments like this help to create a safer and more efficient user experience for members of the community and in this instance helped lead to a rise in the YFI price from $18,255 at the beginning of Nov. 26, 2020 to the Jan.9 swing high at $39,990, an increase of 118%

Increasing DEX volume

Volume and transactions are key metrics used when evaluating the value of a DeFi project and the strength of its community. One way to determine this is to look at the daily volume of a project’s Decentralized Exchange (DEX) to get a picture of how much value is transacted on the protocol during a particular time frame.

Daily DEX volume. Source: DuneAnalytics.com

Since the start of 2020, the daily DEX volume for the top-ranked DeFi projects has more than doubled from $900 million on Jan.1 to a peak of $2.4 billion on Jan. 4, indicating a significant increase in user activity. This suggests that traders took advantage of the bull market conditions that much of the cryptocurrency market was experiencing during that time.

With Eth2 still rolling out, a critical issue to monitor during any DeFi boom is Etheruem gas fees and transaction speeds. Messari data also shows that DeFi tokens focused onLayer 2 solutions rallied strongly as developers search for ways to successfuly integrate faster, lower fee off-chain options which can work as alternatives to Etheruem.

As reported by Cointelegraph, tokens like Solana (SOL), Loopring (LRC) and Matic and ThorChain (RUNE) have all rallied as developers continue to search for and experiment with layer 2 options.

Source: https://cointelegraph.com/news/3-key-reasons-why-the-defi-sector-is-booming-again

Blockchain

Kraken Daily Market Report for April 12 2021

Republished by Plato

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Overview


  • Total spot trading volume at $1.74 billion, up from the 30-day average of $1.34 billion.
  • Total futures notional at $555.7 million.
  • The top five traded coins were, respectively, Bitcoin, Tether, Ethereum, Ripple, and Cardano.
  • Strong returns from Uniswap (+25%) and Flow (+11%).

April 12, 2021 
 $1.74B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$59918. 
↓0.3% 
$641.7M
USDT 
$0.9994 
↑0.03% 
$317.0M
ETH 
$2135.2 
↓0.9% 
$216.1M
XRP 
$1.3753 
↑1.9% 
$126.6M
ADA 
$1.2994 
↑2.6% 
$84.1M
USDC 
$0.9999 
↑0.0% 
$46.7M
DOT 
$40.310 
↓2.6% 
$39.1M
LTC 
$245.33 
↓2.9% 
$34.7M
TRX 
$0.1331 
↑8.9% 
$33.3M
FLOW 
$37.468 
↑11% 
$30.6M
UNI 
$37.402 
↑25% 
$23.6M
FIL 
$166.62 
↓7.0% 
$18.9M
XLM 
$0.5751 
↓1.0% 
$18.6M
XDG 
$0.0712 
↓3.4% 
$17.9M
XMR 
$321.10 
↓2.8% 
$17.9M
LINK 
$32.707 
↓3.9% 
$12.3M
MANA 
$1.0822 
↑1.0% 
$11.5M
BCH 
$669.88 
↓3.0% 
$11.0M
SC 
$0.0266 
↓3.5% 
$9.87M
ALGO 
$1.4637 
↓4.1% 
$9.85M
GRT 
$2.0962 
↑9.6% 
$9.61M
AAVE 
$403.67 
↑8.4% 
$9.51M
ATOM 
$22.173 
↓5.6% 
$9.42M
KSM 
$428.66 
↓2.4% 
$9.33M
EOS 
$6.4521 
↓4.5% 
$7.34M
XTZ 
$6.2194 
↓3.5% 
$6.97M
ZEC 
$218.94 
↓1.5% 
$5.36M
DASH 
$277.71 
↓3.4% 
$4.59M
STORJ 
$2.4142 
↓0.7% 
$4.51M
DAI 
$0.9994 
↓0.03% 
$4.08M
COMP 
$446.04 
↓3.0% 
$3.75M
SNX 
$19.596 
↑3.0% 
$3.13M
ICX 
$2.6855 
↑4.2% 
$3.06M
OMG 
$9.6585 
↑0.3% 
$2.8M
BAT 
$1.4119 
↓2.1% 
$2.57M
KAVA 
$6.5938 
↓5.9% 
$2.53M
OCEAN 
$1.6560 
↓3.6% 
$2.42M
QTUM 
$14.663 
↓1.9% 
$2.27M
CRV 
$3.0164 
↓3.2% 
$2.18M
ANT 
$10.697 
↓4.6% 
$1.93M
NANO 
$5.6921 
↑1.4% 
$1.91M
KNC 
$3.5034 
↓4.6% 
$1.86M
YFI 
$42840. 
↓5.2% 
$1.68M
ETC 
$19.193 
↓5.8% 
$1.44M
OXT 
$0.7723 
↓3.9% 
$1.43M
WAVES 
$15.288 
↓2.2% 
$1.35M
REP 
$47.281 
↓4.1% 
$1.27M
LSK 
$6.4095 
↓6.1% 
$1.09M
KEEP 
$0.7189 
↓4.0% 
$1.07M
EWT 
$16.354 
↓4.3% 
$768K
MLN 
$85.518 
↓4.3% 
$674K
PAXG 
$1741.0 
↓1.0% 
$663K
BAL 
$51.182 
↓1.2% 
$600K
REPV2 
$46.957 
↓4.2% 
$367K
GNO 
$172.93 
↓0.03% 
$292K
TBTC 
$60697. 
↓0.8% 
$50.2K



#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (April 12 2021)



Figure 2: Mid-size trading assets: (measured in USD) (April 12 2021)



Figure 3: Smallest trading assets: (measured in USD) (April 12 2021)



#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (April 12 2021)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (April 12 2021)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (April 12 2021)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (April 12 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://blog.kraken.com/post/8612/kraken-daily-market-report-for-april-12-2021/

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Blockchain

Bitcoin Prepares For its Next Move: Where is the 100 SMA, the Key BTC Level?

Republished by Plato

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Bitcoin price is consolidating above the $59,500 support zone against the US Dollar. BTC is now showing a few positive signs, but it must clear $61,200 for a fresh rally in the near term.

  • Bitcoin is holding gains above the $60,000 and $59,500 support levels.
  • The price is now trading well above the $59,500 level and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $59,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to start a sharp upward move once it clears the $60,800 and $61,200 levels.

Bitcoin Price is Showing Positive Signs

Bitcoin remained in a range above the $59,000 level and it is showing a few positive signs. Recently, BTC made another attempt to clear the $61,200 resistance, but it failed.

It corrected lower and retested the $59,500 support level. A low is formed near $59,432 and the price is now moving higher. It is also trading well above the $59,500 level and the 100 hourly simple moving average.

There was a break above the 50% Fib retracement level of the recent decline from the $61,212 high to $59,432 low. There is also a key bullish trend line forming with support near $59,400 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

Bitcoin is now trading above $60,400, but it is facing resistance near $60,800. It is close to the 76.4% Fib retracement level of the recent decline from the $61,212 high to $59,432 low.

A successful break above the $60,800 level could open the doors for a move above $61,200. If the bulls succeed in clearing $61,200, the price could rally in the coming sessions.

Dips Limited in BTC?

If bitcoin fails to climb above $60,800 and $61,200, there could be a short-term downside correction. An initial support on the downside is near the $60,000 level.

The main support is now forming near the trend line, $59,500 and the 100 hourly simple moving average. If the bulls fail to protect the 100 hourly SMA, there could be a major decline. In this case, the price might decline towards the $58,000 level.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

Major Support Levels – $59,500, followed by $59,000.

Major Resistance Levels – $60,800, $61,200 and $62,000.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/analysis/btc/bitcoin-prepares-for-next-move-61k/

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Blockchain

USDT, USDC, and BUSD represent 93% of stablecoin market cap

Republished by Plato

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Research from on-chain analytics provider Glassnode has revealed that the top three stablecoins represent more than 90% of the sector’s entire market cap.

Glassnode’s April 13 “Week On-chain” report found that the top three stablecoins — Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) — have seen significant growth over the past six months to represent a combined capitalization of more than $60 billion, equal to 92.75% of the stablecoin market.

By contrast, six months ago the combined stablecoin capitalization for those three was less than one-third of its current levels at $19.2 billion. This time last year, stablecoins were worth just $7 billion combined.

The analysis compared the growth of stablecoins with Bitcoin’s market cap, identifying a clear correlation between the two. The report also found that USDT’s supply has continued to increase during recent weeks despite BTC trending sideways, whereas growth for USDC and BUSD has slowed.

BTC market cap vs stablecoin supply: Glassnode

The report notes historic lows for its Stablecoin Supply Ratio (SSR) metric, which measures Bitcoin’s market cap relative to the total stablecoin supply to estimate the global “buying power” of the stablecoin sector.

When BTC prices are low, the supply of stablecoins can buy a larger portion of it to push prices up. Conversely, as prices increase the available stablecoins can purchase less which reduces the influence on prices. Glassnode concluded:

“The growth of stablecoin supplies throughout 2020-21 has held the SSR metric near historical lows suggesting a relatively high buying power of digitally native dollars. The demand for digital dollars appears to be keeping pace with demand for Bitcoin and cryptocurrencies as a whole.”

Tether’s market cap has over doubled since the beginning of 2021 to currently sit at a record $45.6 billion, according to the Tether transparency report. Circle’s website reported an all-time high of $11.5 billion USDC on April 9, while Goingecko estimated BUSD’s supply to be $5.1 billion on April 13.

On April 7, Circle CEO Jeremy Allaire predicted its USDC stablecoin could soon surpass PayPal by settlement value.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/usdt-usdc-and-busd-represent-93-of-stablecoin-market-cap

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