Connect with us

Blockchain

Bitcoin is Nearing Key Resistance as Market Posts Massive Rebound

Bitcoin has seen some immense volatility as of late, with bulls reversing its recent losses entirely overnight as they regain control of the crypto This price action confirms that the latest selloff was one that is quite common during bull markets when the crypto retraces 30-40% before continuing its ascent BTC’s strength is creating tailwinds for the entire market, as ETH and most other major altcoins have also surged higher One trader is now noting […]

Republished by Plato

Published

on

Advertisement

  • Bitcoin has seen some immense volatility as of late, with bulls reversing its recent losses entirely overnight as they regain control of the crypto
  • This price action confirms that the latest selloff was one that is quite common during bull markets when the crypto retraces 30-40% before continuing its ascent
  • BTC’s strength is creating tailwinds for the entire market, as ETH and most other major altcoins have also surged higher
  • One trader is now noting that he is flat on Bitcoin, for the time being, cautioning that the resistance around $40,000 could be quite significant and cause it to see a notable pullback
  • Once it can break above this level, however, the crypto could see some massive upwards momentum that leads it to new highs

Bitcoin and the entire cryptocurrency market have exploded higher today, with bulls taking full control of the market as they look to reverse the recent downtrend.

This market-wide strength shows few signs of slowing despite the resistance that Bitcoin is facing within the lower-$40,000 region.

The longer it consolidated below this level, the better poised it may be to post a breakout rally that sends it flying past here.

One trader explained that he is now watching for a break above $40,000 before he flips long on the cryptocurrency. He notes that this is a crucial level, and any strong rejection could lead to significantly further downside.

Bitcoin Explodes to $40,000 as Uptrend Resumes

At the time of writing, Bitcoin is trading up just over 5% at its current price of $39,400. This marks a notable surge from its recent lows of $30,000 set just a few days ago during a market-wide selloff.

Where the entire market trends next will undoubtedly depend on whether or not bulls can maintain their present momentum, as use it to shatter the $40,000 resistance level.

Analyst Claims BTC Still at Risk of Seeing Downside Until $40,000 is Flipped to Support 

While sharing his thoughts on where Bitcoin might trend in the short-term, one analyst explained that he is closely watching to see its reaction to $40,000.

“Nice pop out of the ascending triangle for $BTC. I’m flat as we approach this horizontal resistance zone. I’d be surprised if we blow through to new highs on the first attempt, but BTC has surprised me plenty of times before.”

Bitcoin

Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.

The coming few days should provide insights into Bitcoin’s strength as it pushes against a crucial resistance level.

Featured image from Unsplash.
Charts from TradingView.

Source: https://bitcoinist.com/bitcoin-is-nearing-key-resistance-as-market-posts-massive-rebound/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-is-nearing-key-resistance-as-market-posts-massive-rebound

Blockchain

DeFi summer 2.0? ‘Gen 2’ tokens on a tear amid wider market slump

Republished by Plato

Published

on

As some brand-name decentralized finance (DeFi) tokens sputter, a crop of new projects have emerged that are catching strong bids on the back of aggressive yield farming programs, generous airdrops, and significant technical advances. 

It’s a set of outlier projects pushing forward on both price and fundamentals that has led one crypto analyst, eGirl Capital’s mewny, to brand them as DeFi’s “Gen 2.”

Mewny, who in an interview with Cointelegraph pitched eGirl Capital as “an org that takes itself as a very serious joke,” says that Gen 2 tokens have garnered attention due to their well-cultivated communities and clever token distribution models — both of which lead to a “recursive” price-and-sentiment loop. 

“I think in terms of market interest it’s more about seeking novelty and narrative at this stage in the cycle. Fundamental analysis will be more important when the market cools off and utility is the only backstop to valuations. Hot narratives tend to trend around grassroots projects that have carved out a category for themselves in the market,” they said.

While investors might be eager to ape into these fast-rising new tokens, it’s worth asking what the projects are doing, whether they’re sustainable, and if not how much farther they have to run.

Pumpamentals or fundamentals?

The Gen 2 phenomena echoes the “DeFi summer” of last year, filled with “DeFi stimulus check” airdrops, fat farming APYs, and soaring token prices — as well as a harrowing spate of hacks, heists, and rugpulls

However, mewny says that there’s a population of investors that emerged from that period continuously looking for technical progress as opposed to shooting stars. 

“There are less quick “me too” projects in defi. An investor may think that those projects never attracted much liquidity in the first place but they overestimate the wisdom of the market if that’s the case. They did and do pull liquidity, especially from participants who felt priced out or late to the first movers.This has given the floor to legitimate projects that have not stopped building despite the market’s shift in focus. ”

One such Gen 2 riser pulling liquidity is Inverse Finance. After the launch of a yield farming program for a forthcoming synthetic stablecoin protocol, the Inverse Finance DAO narrowly voted to make the INV governance token tradable. As a result, the formerly valueless token airdrop of 80 INV is now priced at over $100,000, likely the most lucrative airdrop in Defi history. 

Another Gen 2 star is Alchemix — one of eGirl Capital’s first announced investments. Alchemix’s protocol also centers on a synthetic stablecoin, alUSD, but generates the stablecoin via collateral deposited into Yearn.Finance’s yield-bearing vaults. The result is a token-based stablecoin loan that pays for itself — a new model that eGirl thinks could become a standard.

“eGirl thinks trading yield-bearing interest will be an important primitive in DeFi. Quantifying and valuing future yield unlocks a lot of usable value that can be reinvested in the market,” they said.

The wider markets appears to agree with eGirl’s thesis, as Alchemix recently announced that the protocol has eclipsed half a billion in total value locked:

Staying power?

By contrast, governance tokens for many of the top names in DeFi, such as Aave and Yearn.Finance, are in the red on a 30-day basis. But even with flagship names stalling out, DeFi’s closely-watched aggregate TVL figure is up on the month, rising over $8.4 billion to $56.8 billion per DeFi Llama — progress carried in part on the back of Gen 2 projects. 

The comparatively wrinkled, desiccated dinosaurs of DeFi may have some signs of life left in them, however. Multiple major projects have significant updates in the works, including Uniswap’s version 3, Sushiswap’s Bentobox lending platform, a liquidity mining proposal working through Aave’s governance process, and Balancer’s version 2.

These developments could mean that DeFi’s “Gen 2” phenomena is simply a temporary, intra-sector rotation, and that the “majors” are soon to roar back. It would be a predictable move in mewny’s view, who says “every defi protocol needs at least 1 bear market to prove technical soundness.”

What’s more, according to mewny some of the signs of market irrationality around both Gen 2 tokens as well as the wider DeFi space — such as triple and even quadruple-digit farming yields — may be gone sooner rather than later.

“I don’t think it’s sustainable for any project in regular market conditions. We are not in regular conditions at the moment. Speculators have propped up potentially unsustainable DeFi protocols for a while now.”

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://cointelegraph.com/news/defi-summer-2-0-gen-2-tokens-on-a-tear-amid-wider-market-slump

Continue Reading

Blockchain

Fetch.ai (FET) hits a 2-year high after DeFi integration and Bosch partnership

Republished by Plato

Published

on

Artificial intelligence and machine learning are changing the face of commerce, computing and other technologies on a daily basis.

In its most basic form, the information gathered by artificial intelligence is really just data that can be used to make interpretations and blockchains are built for the storage and transmission of data.

Fetch.ai (FET) is a “Cambridge-based artificial intelligence lab” that has the goal of using distributed ledger technology to build a decentralized machine learning platform capable of securely transacting any form of data globally.

FET/USDT 4-hour chart. Source: TradingView

Data from Cointelegraph Markets and TradingView shows that the price of FET has surged 720% since the start of 2021 and this week the altcoin hit a new yearly high at $0.40.

Partnership announcements and DeFi integrations drive adoption

A scroll through the project’s Twitter feed shows that excitement began building at the end of January when Fetch.ai started tweeting about its Mettalex (MTLX) project, which is a decentralized exchange (DEX) for the Fetch.ai ecosystem that specializes in bringing “autonomous and intelligent oracles” to DeFi.

Given that DeFi is another rapidly emerging sector, FET’s inclusion in it was followed by a notable increase in trading volume.

As part of the Mettalex launch, FET tokenholders were given the option to stake their tokens on the platform for 3 months and earn a 10% yield which will be paid in MTLX tokens.

Momentum for the project continued to build throughout February following several high-profile partnerships, most notably a deal with Bosch Group to help the platform launch a multi-purpose blockchain project designed to enable Web 3.0.

While the blockchain project has been in a testnet since October 2020, the upcoming mid-March release appears to be on track based on the following tweet from the Fetch.ai team:

The follow-up release of the project’s first native application in the App store indicates that the expansion of the Fetch.ai ecosystem is just beginning, and record transaction and trading volumes signal that there is growing interest in the AI-focused protocol.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://cointelegraph.com/news/fetch-ai-fet-hits-a-2-year-high-after-defi-integration-and-bosch-partnership

Continue Reading

Blockchain

What Ethereum killer? On-chain data shows competitor networks are still behind

Republished by Plato

Published

on

Ether (ETH) remains the second-largest cryptocurrency and it absolutely dominates the smart contract industry according to an array of network usage metrics. Even though the network has been overwhelmed by peak activity which is causing median fees to surpass $10, the network effect of its large user and developer base seems to be enough to sustain its position as the second ranked cryptocurrency by market capitalization.

Nevertheless, some key on-chain metrics are beginning to show a potential change in Etheruem’s supremacy, which raises the age old question of whether an “Ethereum killer” will be able to dethrone the top network?

Smart contracts Total Value Locked (TVL) ranking. Source: defillama.com

As shown above, the Ethereum network vastly dominates decentralized applications (dApps). Due to its high gas fees for transactions, when analyzing the number of active addresses, the Ethereum newtork appears to be at a disadvantage to its competitors.

Over the past week, FLOW blockchain’s NBA Top Shot had almost 80,000 active addresses which is five times larger than Ethereum’s Rarible NFT marketplace or even SushiSwap. Thus, the first data to analyze is the daily active addresses number across each blockchain.

Daily active addresses. Source: coinmetrics.io

The chart above shows that Tron (TRX) has recently surpassed Ethereum in daily active addresses, although this metric can be easily inflated. The Tron network has virtually zero fees for simple transactions which creates an unfair comparison.

By measuring effective transactions and transfers,it’s easier to exclude the addresses that are not contributing to the network.

Transactions and transfers, adjusted, USD. Source: coinmetrics.io

By doing this we can see that Tron doesn’t come even close to Ethereum’s numbers, although Cardano’s (ADA) recent price growth has led to a virtual tie between the two.

Oddly enough, the Tron network holds over 14.5 billion of the Tether (USDT) in circulation, which by itself should boost network usage metrics. Meanwhile, Cardano has 90% fewer daily active addresses than Ethereum, yet, both networks handle the same amount of transfers and transactions.

This is especially problematic as Ethereum handles 20 billion Tether tokens and also manages all the transactions of Chainlink (LINK), USD Coin (USDC), Wrapped ETH (WETH), and many others.

ETH, ADA, NEM, NEO, TRX market cap, USD million. Source: cointrader.pro

This data should, at least theoretically, be reflected in the market capitalization. Thus, it makes sense for Ethereum to dominate the ranking as no other network is even close to its decentralized applications.

Moreover, when analyzing the transfer and transactions’ value, Ethereum leads by 50 times if we exclude Cardano’s questionable figures discussed earlier.

For the time being, the data suggest that the four “Ethereum killers” analyzed above are unlikely to “flippen” the Ethereum network anytime soon.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://cointelegraph.com/news/what-ethereum-killer-on-chain-data-shows-competitor-networks-are-still-behind

Continue Reading
Blockchain4 days ago

Amplifying Her Voice

Blockchain4 days ago

Bitcoin Halving: Definitive Guide (In Just 5 Minutes)

Blockchain4 days ago

Blockchain in Sports Betting

Blockchain2 days ago

How to Protect Yourself from the Cryptojacking Threat

Blockchain4 days ago

Libra Coin – A New Digital Currency Developed by FACEBOOK

Blockchain4 days ago

DeFi token CRV spikes after reports PayPal acquired unrelated custody firm Curv

Blockchain3 days ago

Will Netflix soon buy bitcoin?

Blockchain2 days ago

BitGo To Introduce Crypto Custodial Services To New York Clients

Blockchain2 days ago

Experts divided on BTC predictions: Bullish or super bullish?

Blockchain4 days ago

DEX aggregator 1inch integrates Bitquery’s API-powered crypto trading data

Blockchain2 days ago

Bitcoin “Cheat Sheet” Calls For Next Leg Up To $77K

Blockchain2 days ago

Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

Blockchain2 days ago

Mark Cuban’s Dallas Mavericks to Accept Dogecoin Payments

Blockchain2 days ago

Ethereum gas fees drop as daily DEX and DeFi volumes decline

Blockchain3 days ago

3 key Ethereum price metrics show pro traders are aiming for $2K ETH

Blockchain2 days ago

Thailand’s largest movie theater chain accepts Bitcoin

Blockchain2 days ago

TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

Blockchain2 days ago

Decentralized Companies Are the New Norm and It’s the DAO Revolution That’s Making It Possible

Blockchain2 days ago

XRP Price Analysis: 04 March

Blockchain2 days ago

Blockchain Association meeting with key Biden staff about regulations

Trending