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Crypto Investors are Not Profiting

On-chain data shows that crypto investors are not taking profit, however, they are still holding on even in the face of economic uncertainty and the strong performance of bitcoin. It may come quite shocking but by the data on the 15th of June, 60.63% of all of the bitcoin has not moved an inch for … Continue reading Crypto Investors are Not Profiting

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On-chain data shows that crypto investors are not taking profit, however, they are still holding on even in the face of economic uncertainty and the strong performance of bitcoin.

It may come quite shocking but by the data on the 15th of June, 60.63% of all of the bitcoin has not moved an inch for over a year even though it peaked a couple of months ago and reached its highest in the last 2 years. This information comes from Glassnode, which is a blockchain data and intelligence provider which develops applications that provide new ways to gain insight into blockchains and cryptocurrencies. The data suggests that the bitcoin (BT) owners are consolidating and investors who have acquired the crypto in 2018 are not willing to sell their investments. This is the largest supply sitting inactive for almost 4 years now.

Lots of cryptocurrencies and bitcoin, in particular, are affected by loads of different aspects. For instance, the socio-economic problems in the United States of America have shifted the pricing for the bitcoin a couple of times during the last months. The protests caused by the death of George Floyd fueled the long-brewing emotional response from the people and black minorities in particular to systemic racism. With the President of the United States, Donald Trump, being actively involved in the dissolution of the situation as he commanded the national guard to move in and assist the police with some of the more aggressive parts of the protests have shifted the price of bitcoin to $10,500, which is the peak price since its last jump couple of years back.

The way active bitcoin traders have been dealing with trading bitcoin has been the use of stop loss and take profit orders, which gives them the ability to close the trade as soon as the price hits bare minimum for them to make a profit. This means that the traders are staying on the safer side while still maintaining their financial stability and avoiding big losses. The matter of fact is that the market may start shifting at any time. This may happen when the trader is sleeping or out on their business. One cannot sit next to the computer 24 hours 7 days a week watching the charts. Thus the tools at hand have come in extremely handy.

The ongoing issues with the novel coronavirus pandemic, which rocked the world and resulted in the massive lockdown of borders unseen before have also disrupted all of the markets making trading that much more dangerous. However, for a vigilant trader, it still leaves the opportunity to make huge gains. This is exactly what has caused the shocking bearish tendencies on the market with bitcoin that Glassnode has uncovered.

One of the methods used to analyze inactive bitcoins is to group them using the length of time they’ve been inactive. This method was pioneered by the Austin, Texas-based Unchained Capital. The method has been named “HODL Waves.” It is a visualization that shows the cross-section of the wallets where bitcoins are held and groups them by the amount of time since they have been moved.

The term “HODL” stands for “Hodled” and represents the behavior of people who are just sitting on bitcoin with no intention of using them. The co-founder and the CSO of the Unchained Capital, Dhruv Bansal, has stated that the HODL wave represents the people “who bought bitcoin on the way down from $6,000 to $3,000 in 2018 are still holding it despite the tremendous gains since then and the recent economic turbulence.”

The two segments that have grown during the last couple of years are the bitcoins held for more than 10 and the ones that have been locked up for 2-3 years. The increase has happened by 31% and 26% respectively. The 2-3 year one represents the coins held from the 2017 market all-time high to present.

There are numerous reasons why the “hodling” can happen though. It may not even be due to the fact that someone just wants to sit on a bitcoin but rather maybe they have bought it up way back in the day and have forgotten all about it, or maybe they cannot log back into their Coinbase or have lost Trezor (wallet). It is also, sadly, true that some of these people may just be deceased without their family or friends ever knowing about them owning the bitcoins in the first place. Back in 2010, no one knew bitcoin would be hitting such highs. There was even a time when Laszlo Hanyecz bought 2 pizzas with 10,000 bitcoins back in May, 2010. The media was all lit up with the first official sale made with cryptocurrencies. This was the time when bitcoin was a little over 1 year old. Most of the people back in the day just bought it for the laughs. Some have kept on them and accumulated immense amounts of riches, while others, unfortunately, have lost their lifetime opportunity to strike the jackpot. However, when it comes to Laszlo, he states that there are no regrets from his side.

The first quarter of 2020 has been extremely volatile. Ongoing macroeconomic uncertainty and the increase in the amount of bitcoin just being stashed away in traders’ wallets just gives the incentive that a lot of people still believe in their purchase. One thing is for certain though, the bullish pattern is quite apparent in traders all over the world right now. And as Bansal has also stated: “If you believe bitcoin’s price history repeats or at least rhymes, then this may be a bullish sign, the market consolidating into strong hands as macro trends highlight bitcoin’s value proposition.”

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Source: https://blog.coinspectator.com/2020/06/25/crypto-investors-are-not-profiting/

Blockchain

How NFTs, DeFi and Web 3.0 are intertwined

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While blockchain itself provides the technology constructs to facilitate exchange, ownership and trust in the network, it is in the digitization of value elements where asset tokenization is essential. Tokenization is the process of converting the assets and rights to a property into a digital representation, or token, on a blockchain network. 

Distinguishing between cryptocurrency and tokenized assets is important in understanding exchange vehicles, valuation models and fungibility across the various value networks that are emerging and posing interoperability challenges. These are not just technical challenges, but also business challenges around equitable swaps.

Asset tokenization can lead to the creation of a business model that fuels fractional ownership, the ability to own an instance of a large asset. While discussing asset tokenization in a previous article, I also mentioned the value of an instance economy in democratizing finance, commerce and global access, as well as in creating a broader global marketplace at a scale never before seen.

With digital assets and their fungibility in a blockchain ecosystem, there are various drivers of valuation. These include: 1) tokens based on crypto economic models that are driven by supply and demand, and the utility of the network; 2) nonfungible tokens, or NFTs, which have an intrinsic value such as identification, diplomas and healthcare records — essentially, tokens that are simple proof validations of the existence, authenticity and ownership of digital assets; and 3) fungible tokens that are valued on various bases, such as the sum total of economic activity in the network (cryptocurrency), its utility (smart contracts and transaction network processing), assigned values (stable coins and security tokens), and so on.

In this article, I address the complex issue of the hyperbolic and rapid rise of NFTs, after a similarly meteoric rise of decentralized finance, or DeFi, creating amazing innovations — with immense promise of democratization, new business models and global marketplaces with global access — all fueled by the basic premise of decentralization and fundamental constructs of tokenization and wallets. While NFTs may be characterized as one-of-a-kind cryptographic tokens with some intrinsic value to a holder or to a market (art, collectibles), the NFT movement is indicative of a larger token revolution that will not only fuel massive innovation and growth in Web 3.0 protocols but also test the resolve of the DeFi movement, along with its ability to intersect and provide platforms and an exchange vehicle for all token types.

Growth in Web 3.0 protocols

The first two generations of web protocols were largely about disseminating information and connecting people. They fueled a massive growth in information and collaboration, and did wonders for connecting the world. However, those web protocols were never designed to move things of value. Also, as the Web 2.0 era reached its fullest potential, vulnerabilities such as “fake news” and the “batched relay” of the movement of assets via a series of intermediaries emerged. Threats to the commerce and financial infrastructure of the system risk destabilizing it.

Web 3.0 promises to safeguard all things we value: information, truth and digital assets — both fungible and nonfungible. Whereas Web 2.0 was driven by the advent of social, mobile and the cloud, Web 3.0 is largely built on three new layers of technological innovation: edge computing, decentralized data networks and artificial intelligence.

The growth of NFTs has not only empowered the ability for artists, skilled professionals and entrepreneurs to encapsulate innovation in a tokenized form but has also fueled the democratization of the platform as one of the promises of blockchain technology. The underlying infrastructure includes decentralized storage technologies, efficient consensus protocols, off-chain computing, and oracle networks to provide connectivity and validation to existing systems.

Collectively, the Web 3.0 set of technologies envisions a connected, trustless, accountable network for efficiently delivering value, thus crafting an infrastructure for things of worth. NFTs represent both transferable entities and nontransferable tokens that we value. The latter include things such as our identification, healthcare records and passports, things that represent us and allow us to participate in the digital economy with our own unique, digital identities.

As we dare to envision a shift toward a world with decentralized control, governance based on distributed technology that challenges every business model, and governance structure built upon centralized business frameworks, we do have to ponder some things. Not only the shift itself, but the motivation, incentive and monetization elements that fuel and power the economic infrastructure to move things that have value — thereby keeping up with our changing perception and subsequent realization of that value.

Intersecting with finance — DeFi

DeFi is the movement in the blockchain applications space that leverages decentralized network technology to disrupt and force a transformation of old financial products into trustless, transparent protocols, facilitating digital value creation and dissemination with few to no intermediaries. It is widely understood and accepted that — due to new synergies and co-creation via new digital interactions and value-exchange mechanisms — blockchain technology lays the foundation for a trusted digital transactional network that, as a disintermediated platform, fuels the growth of marketplaces and secondary markets.

While DeFi aims to deliver the promise of finance democratization, NFTs test the resolve of DeFi by delivering a competitive yet inclusive asset class, plus avenues to provide a medium of exchange, fungibility by other fungible asset classes, and liquidity to a traditionally illiquid market.

Asset classes resulting from DeFi protocols and NFTs avail themselves of the advantages of fractional ownership of the assets, blurring the lines between asset classes and using constructs like digital wallets as a receptacle for them. This is all supported by underlying layers of Web 3.0 that provide security and availability via decentralization, as well as trust and immutability via consensus, extending these principles to basic computer infrastructure like storage and interconnect.

Commercialization of Web 3.0 protocols, which manifest as fungible utility tokens, further blurs the lines with diverse financial innovation products introduced by DeFi (such as base assets and derivatives), products that are also tokenized. So, while decentralization is the underlying theme — and the wallet and the token are fundamental constructs — these blurring lines are quite profound.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Nitin Gaur is the founder and director of IBM Digital Asset Labs, where he devises industry standards and use cases and works toward making blockchain for the enterprise a reality. He previously served as chief technology officer of IBM World Wire and of IBM Mobile Payments and Enterprise Mobile Solutions, and he founded IBM Blockchain Labs where he led the effort in establishing the blockchain practice for the enterprise. Nitin is also an IBM Distinguished Engineer and an IBM Master Inventor with a rich patent portfolio. Additionally, he serves as research and portfolio manager for Portal Asset Management, a multi-manager fund specializing in digital assets and DeFi investment strategies.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/how-nfts-defi-and-web-3-0-are-intertwined

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Has the rally ended for altcoins like LINK, ADA, and NPXS?

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With most altcoins rallying at the current point in the market cycle where Bitcoin is making a comeback, there are a few altcoins that may have ended their price rally. Among these, LINK ranks in the top 10 cryptocurrencies based on market capitalization.

LINK’s oracles may have filled the void left from the removal of XRP from Grayscale’s fund. However, that does not seem to have had an impact that would last long enough to boost the price on spot exchanges. The asset is currently trading at the $32 level, down from its ATH. Though there is anticipation that the price will rally to its ATH, the dropping trade volume across exchanges signals otherwise.

After being added to Grayscale’s fund, LINK’s price went up steadily, however, a boost from institutional demand may not be enough to boost the asset’s price. 93% HODLers are profitable before the asset takes a dip in the current cycle

The altcoin rally may have ended for LINK, ADA and NPXS

Grayscale LINK Holdings || Source: Bybt

LINK’s institutional demand has had only a partial impact on price, and the trend reversal depends on the HODLers profitability at the current price level and the rally of altcoins led by ETH. Historically, Bitcoin’s rally has had a negative impact on LINK’s price and that remains to be seen as Bitcoin traders above $60000 once again this weekend.

Another top altcoin, Cardano has offered HODLers an ROI of over 440% in 2020. This altcoin has been considered to be the one to HODL in the long term based on on-chain analysis and trader sentiments. In the current cycle, 65% HODLers are profitable at the price level of $1.23. This is one of the top altcoins in which the concentration by large holders is low, below 50%, currently at 24%.

Additionally, at this point in the rally, there is a significant drop in ADA’s trade volume across exchanges. This drop in liquidity may lead to a drop in price over the following week. Though large transactions in the past week have been above $30 Billion, the volume is dropping consistently.

The altcoin rally may have ended for LINK, ADA and NPXS

ADA price chart || Source: Messari

Unlike ADA and LINK, in the case of NPXS, the price is back to the same level as a month ago. The 24-hour trade volume has taken a plunge with a near 100% drop in 24 hours, and this is a unique position in NPXS’s price cycle. Moreover, the on-chain sentiment is bearish and this may be the ideal time to buy altcoins like these that are consolidating. The confidence is consistently high in top markets on spot exchanges, and the dropping trade volume is a sign of consolidation.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/has-the-rally-ended-for-altcoins-like-link-ada-and-npxs

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Kraken Daily Market Report for April 09 2021

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Overview


  • Total spot trading volume at $1.02 billion, down from the 30-day average of $1.34 billion.
  • Total futures notional at $417.0 million.
  • The top five traded coins were, respectively, Bitcoin, Tether, Ethereum, Ripple, and Polkadot.
  • Strong returns from Waves (+23%), Basic Attention Token (+17%), Keep (+13%), and Filecoin (+12%).

April 09, 2021 
 $1.02B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$57928. 
↓0.21% 
$379.8M
USDT 
$0.9996 
↓0.02% 
$197.7M
ETH 
$2060.0 
↓1.0% 
$115.3M
XRP 
$1.0285 
↓2.9% 
$70.9M
DOT 
$40.512 
↓2.1% 
$27.6M
ADA 
$1.2002 
↓1.6% 
$24.8M
WAVES 
$16.972 
↑23% 
$20.9M
USDC 
$1.0000 
↑0.02% 
$20.8M
FIL 
$173.42 
↑12% 
$20.7M
LTC 
$219.62 
↓3.0% 
$16.3M
XTZ 
$6.6226 
↑7.5% 
$13.4M
LINK 
$31.279 
↓4.6% 
$12.5M
BAT 
$1.5112 
↑17% 
$11.8M
TRX 
$0.1153 
↓6.5% 
$11.7M
SC 
$0.0296 
↑0.6% 
$10.9M
MANA 
$1.0222 
↑2.9% 
$10.6M
XMR 
$275.91 
↑2.1% 
$9.67M
BCH 
$630.11 
↓2.1% 
$7.69M
XDG 
$0.0611 
↓1.1% 
$7.48M
XLM 
$0.4833 
↓4.4% 
$7.44M
OMG 
$10.224 
↑0.04% 
$7.33M
KSM 
$448.87 
↓2.6% 
$7.11M
EOS 
$6.1909 
↓4.1% 
$6.45M
ALGO 
$1.3699 
↑1.3% 
$6.04M
STORJ 
$2.5171 
↓3.8% 
$5.37M
ATOM 
$20.952 
↑2.0% 
$4.96M
FLOW 
$35.168 
↓0.5% 
$4.69M
UNI 
$29.463 
↓2.5% 
$4.36M
NANO 
$5.6553 
↓0.07% 
$3.24M
QTUM 
$15.518 
↓7.3% 
$3.24M
KEEP 
$0.7752 
↑13% 
$3.09M
ZEC 
$192.44 
↑4.2% 
$2.58M
OCEAN 
$1.7433 
↓4.4% 
$2.54M
ICX 
$2.6261 
↑5.7% 
$2.36M
LSK 
$7.0662 
↑2.8% 
$2.36M
KAVA 
$6.9189 
↓4.9% 
$2.33M
OXT 
$0.8013 
↑1.0% 
$2.17M
DASH 
$264.69 
↓1.1% 
$2.14M
CRV 
$2.9409 
↓4.2% 
$1.96M
DAI 
$1.0001 
↓0.01% 
$1.95M
COMP 
$451.87 
↓0.8% 
$1.89M
YFI 
$45278. 
↓4.2% 
$1.66M
GRT 
$1.7240 
↓1.7% 
$1.64M
REP 
$55.361 
↑9.9% 
$1.56M
ANT 
$12.048 
↓0.6% 
$1.5M
AAVE 
$358.40 
↓3.3% 
$1.47M
REPV2 
$55.869 
↑9.2% 
$1.19M
KNC 
$3.3166 
↓0.15% 
$1.15M
SNX 
$19.258 
↓3.3% 
$1.1M
ETC 
$18.662 
↓4.8% 
$875K
EWT 
$17.223 
↓4.9% 
$867K
MLN 
$96.553 
↑5.3% 
$704K
PAXG 
$1747.8 
↓0.9% 
$655K
BAL 
$51.559 
↓4.0% 
$387K
GNO 
$169.66 
↑1.3% 
$134K
TBTC 
$60244. 
↑1.2% 
$26.7K



#####################. 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 10 2021)



Figure 2: Mid-size trading assets: (measured in USD) (April 10 2021)



Figure 3: Smallest trading assets: (measured in USD) (April 10 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 10 2021)



.


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

Returns and Volume


Figure 5: Returns of the four highest volume pairs (April 10 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 10 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 10 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/8593/kraken-daily-market-report-for-april-09-2021/

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