Blockchain

Multiple DeFi mainstays crack top 20 in long-awaited ‘Great Repricing’

Published

1 month ago

January 16, 2021

Hardcore decentralized finance (DeFi) adherents woke up today to a long-awaited sight on Coingecko’s top 100 rankings by marketcap: native tokens for popular DeFi platforms Synthetix and Aave have cracked into the top 20, an event DeFi observers have heralded as “The Great Repricing.”

DeFi investors, users, and builders have long argued that the sector writ large is wildly undervalued relative to other cryptocurrency projects given DeFi’s growing userbases, cash flows from protocol fees, and soaring levels of activity compared to “zombie chain” layer-1 networks scattered throughout the top of the marketcap rankings.

Aave and Synthetix have broken the top 20 and passed Tezos and Tron in marketcap.

Remember “The Great DeFi Repricing” I’ve been ranting about for months? Ya, it’s happening.

Soon the top 10 will be ETH, BTC and DeFi.

— eric.eth (@econoar) January 16, 2021

If the past week is any indication, the wider market appears to have finally woken up to the incongruities. SNX and AAVE are up 40% and 74% on the week, both topping $2.3 billion by marketcap and eclipsing layer-1s such as Tezos and Tron.

$AAVE have a higher market cap than $TRX and $XTZ now according to @coingecko .

I’ve maintained this view since late 2019 that top DeFi crypto will gradually overtake these old layer 1 coin in the top 20 spot by mcap.

— Arthur on Tech (@Arthur_0x) January 16, 2021

The moves follow promising developments for both projects. Aave has a proposal in the works that, if approved by governance, will alter the $370 million Safety Module to potentially create a whole new insurance product line, while Synthetix has been buoyed by the launch of a layer-2 scaling solution.

What’s more, some think this could be just the start for DeFi assets as a new “alt szn” dawns.

(17/27) Indeed, even if no new money enters the space, we see this repricing being corrected by the market as money flows towards the only vertical in crypto showing signs of product market fit

However, it will be a bumpy ride as you can’t have massive upside without volatility

— José Maria Macedo (@ZeMariaMacedo) September 9, 2020

“While this is an important milestone, it is only the beginning of a trend we’ve been talking about for a while,” said Delphi Digital partner José Macedo in an interview with Cointelegraph. “[…] In terms of where this is going, the TAM for consumer finance is $3.2T. We see the value prop for DeFi as doing to finance what the internet did to data; transforming financial primitives into “Money Legos” and creating an open ecosystem that enables permissionless innovation across the stack.”

It’s a long-term view that could have accomplishments like reaching the top 20 by cryptocurrency rankings seem like a pittance, but Macedo warns that the road to reaching such lofty goals won’t necessarily be a smooth one:

While the general direction is clear, it’s worth remembering that you cannot have massive upside without volatility. We are undoubtedly in for a bumpy ride, with regulation looming large and DeFi being declared dead many times over.

Source: https://cointelegraph.com/news/multiple-defi-mainstays-crack-top-20-in-long-awaited-great-repricing

Up Next

SIL Finance Ushers In The New Era of DeFi

Don't Miss

Pantera Capital reveals it is ‘overweight’ on ‘undervalued’ ETH

Blockchain

CoinShares Launches a $75 Million Physically-Backed Ethereum (ETH) ETP

Published

49 mins ago

February 27, 2021

Republished by Plato

A month after launching a Bitcoin ETP on Switzerland’s SIX Exchange, CoinShares has released a physically-backed exchange-traded product following the performance of the second-largest cryptocurrency – Ethereum.

Describing itself as “Europe’s largest digital asset investment house,” CoinShares is a cryptocurrency-oriented manager with over $4 billion in AUM. The company, headquartered in London, announced the launch of its latest crypto product – a new physically-backed ETP tracking the performance of Ethereum.
Called CoinShares Physical Ethereum, the product is already listed on the regulated SIX Swiss Exchange under the ticker ETHE and has a base fee of 1.25%. According to the company, the cost is “lower than the industry standard” of 2%.
The statement explained that each unit of ETHE is backed with 0.03 Ether tokens at launch. Thus, it provides investors with “passive exposure to Ethereum’s native asset with the convenience of an ETP.”
“In the early days of 2021, we have seen a continuation of last year’s demand in digital assets from institutions. We have also seen an increase in investor interest in Ethereum. We are encouraged by our client’s trust in our team to guide them in their journey through the digital asset ecosystem, and for many, Ethereum is an important part of that journey.” – commented Chief Revenue Officer Frank Spiteri.
It’s worth noting that this is the company’s second similar product tracking the performance of a crypto asset launched this year. Somewhat expectedly, the first one, released in mid-January, follows the largest digital asset by market cap – Bitcoin.
CryptoPotato reported upon its launch that it started with AUM of $200 million, and each unit is backed by 0.001 BTC.

SPECIAL OFFER (Sponsored) Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

Source: https://cryptopotato.com/coinshares-launches-a-75-million-physically-backed-ethereum-etp/

Blockchain

Chainlink Price Analysis: 27 February

Published

1 hour ago

February 27, 2021

Republished by Plato

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice

Bearish sentiment has been the norm over the past few days, with the same being the case at press time for altcoins such as Chainlink. LINK has seen its price hike by around 164 percent since the start of the year. Over the last 7 days, however, with sellers dominating the market, LINK lost close to 28 percent of its value. While there have been some signs of recovery on the price charts, traders cannot discount the possibility of a further dip soon.

At the time of writing, LINK was trading at $25.5 with a market cap of close to $10.5 billion, making it the ninth-largest cryptocurrency according to CoinMarketCap’s list.

Chainlink 1-day Chart

Source: LINK/USD, TradingView

Chainlink’s price surged within an ascending channel formation over the last two months and as expected, the breakout was bearish for the coin. Additionally, Bitcoin also fell over the past week, adding to LINK’s price woes.

At press time, while LINK had strong resistance around the $35.1-price range, it was testing the support at $23.9, just like it has over the past few days. If this support level fails, it is quite likely that LINK will head towards the next support at $19, creating an opportunity for traders to open short positions.

Rationale

The technical indicators for LINK were quite bearish at press time and one can expect a further price drop for the coin in the coming days. At the time, the RSI indicator was quite far away from the overbought zone and was close to the oversold zone, indicating the absence of a buyer-dominated market.

If the RSI drops even further, LINK’s downtrend will continue. The MACD indicator also painted a similar picture after having seen the Signal line go past the MACD line, resulting in a bearish crossover.

Important levels to watch out for

Resistance: $35.1

Support: $23.9, $19

Entry: $24.7

Take Profit: $19.4

Stop Loss: $34.4

Risk/Reward: 0.56

Conclusion

Chainlink saw its price surge on the charts over the past two months. However, the sentiment has since changed quite significantly and the coin seemed to be firmly in the grip of the bears. The altcoin may see a further price drop in the coming week if the press time support level fails. Such a scenario will result in LINK’s price going below the $20-mark, presenting an opportunity for short positions in the market.

Sign Up For Our Newsletter

Source: https://ambcrypto.com/chainlink-price-analysis-27-february

Blockchain

Bitcoin Cash, Huobi Token, Zcash Price Analysis: 27 February

Published

2 hours ago

February 27, 2021

Republished by Plato

Bitcoin Cash retained the 10th spot on the crypto-rankings, despite being severely impacted by the recent correction in the broader market. Huobi Token flashed bullish signals, but a break above its press time resistance was unlikely. Finally, Zcash was projected to trade within a fixed channel since volatility was low in the market.

Bitcoin Cash [BCH]

Source: BCH/USD, TradingView

Weekly losses on Bitcoin Cash‘s charts amounted to 34% as a correction in the broader market had a negative effect on the crypto-asset. This period also saw $3 billion erode from BCH’s total value as it held on to the number 10th spot in the crypto-rankings by a bare margin, with a market cap of $9.18 billion. At the time of writing, BCH’s price was floating just above its $464-support, while the indicators gave mixed signals on BCH’s future trajectory.

The RSI pointed lower from under the 40-mark and reflected the weakness in price. On the other hand, the MACD moved above the Signal line while the histogram registered rising bullish momentum. With the crypto-market awaiting strong cues, we can expect BCH to remain above its press time support level. If the aforementioned level fails, the next line of defense would be at $421.5.

Huobi Token [HT]

Source: HT/USD, TradingView

The ADX indicator showed that Huobi Token’s uptrend was weakening after the price snapped an all-time high exactly a week ago. In fact, the losses amounted to over 30% following the broader sell-off in the crypto-market. At the time of writing, the altcoin’s price had bounced back from the $15.4-support after the bulls stepped in.

The MACD closed in on a bullish crossover, while the red bars on the histogram moved towards the half-line on the histogram. Either way, its gains would be capped at the immediate resistance and a hike to record levels seemed unlikely over the coming trading sessions.

Zcash [ZEC]

Source: ZEC/USD, TradingView

The Bollinger Bands on Zcash’s hourly charts were compressed as volatility remained low after the price bounced back from its $114.7-support. Weak trading volumes and buying pressure worked against a bullish outcome even though the price looked to breach the $124.75-resistance.

The Awesome Oscillator switched to red from green as momentum moved back and forth over the last few sessions. Moving forward, expect Zcash to remain within its current channel as it awaits stronger signals from the broader market for a definitive move on the charts.

Sign Up For Our Newsletter

Source: https://ambcrypto.com/bitcoin-cash-huobi-token-zcash-price-analysis-27-february