post

DOGE Stays Strong As Leading Altcoins Collision Against Bitcoin Complying with Tesla’s BTC Purchase

Bitcoin’s price exploded to new highs following Tesla’s allocation of $1.5 billion in the cryptocurrency. BTC’s dominance also increased by about 1.5% as most altcoins crashed against their leader.

Bitcoin Paints A New ATH And Expands Dominance

News broke out earlier today that the electric vehicle giant Tesla had purchased a total of $1.5 billion in bitcoin. The price of the asset reacted with a sharp price increase, in which BTC added about $6,000 of value in merely minutes.

This resulted in breaking above the coveted $40,000 and conquering the previous all-time high of $42,000 registered in early January 2021. The cryptocurrency didn’t stop there and continued north to a new record just shy of $45,000.

The price surge came shortly after BTC was rejected at the $40,000 mark during the weekend, and it seemed that the asset was heading south.

Additionally, bitcoin’s inability to break out caused it some of its market dominance as the altcoins had added substantial chunks of value recently. As such, the metric comparing BTC’s market capitalization with the rest of the cryptocurrencies fell beneath 61%.

However, the Tesla-initiated price pump increased bitcoin’s dominance by 1.5% in a few hours to 62.4%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Crashing Alts Against BTC

Although the altcoins typically follow their leader in times of extreme volatility, this is not yet the case today. Most of the alternative coins have lost value compared to BTC, which resulted in the described above rising bitcoin dominance.

Ripple has lost the most from the top ten after an 11% drop against bitcoin. Bitcoin Cash (-8%), Litecoin (-6%), Binance Coin (-5%), and Cardano (5%) follow.

Cryptocurrency Market Overview. Source: coin360.com
Cryptocurrency Market Overview. Source: coin360.com

The situation with the lower and mid-cap altcoins is quite different, though. Most of them were skyrocketing earlier today, as reported, but the trend has reversed as BTC headed into uncharted territory.

OKB leads with a 17% decrease against BTC. Stellar (-13%), Energy Web Token (-13%), Stacks (-12%), SwissBorg (-12%), Fantom (-12%), EOS (-11%), Waves (-11%), and Huobi Token (11%) follow.

Title: DOGE Stays Strong As Leading Altcoins Crash Against Bitcoin Following Tesla’s BTC Purchase
Sourced From: cryptopotato.com/doge-stays-strong-as-leading-altcoins-crash-against-bitcoin-following-teslas-btc-purchase/
Published Date: Mon, 08 Feb 2021 17:57:52 +0000

Ethereum Sets New All-Time High, Is $2000 Incoming? (ETH Price Evaluation).

ETH/USD – Bulls Return To Previous Trend Line For Support

Key Support Levels: $1685, $1600, $1493.
Key Resistance Levels: $1764, $1784, $1800.

Etheruem had been trapped within an ascending price channel for the majority of January 2021. It finally broke above it last Wednesday. The coin climbed until meeting resistance at $1,764 (1.618 Fib Extension) on Friday – setting a new ATH.

Over the weekend, ETH dropped lower from here, spiking as low as $1476 (.236 Fib) yesterday. More specifically, it found support at $1600 (upper boundary of previous trend line) and managed to close the day here.

Today, the 13.6% price surge allowed ETH to spike higher above $1764 to reach a new ATH price at $1784.

ethusd-feb8-new
ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, the first resistance lies at $1764. This is followed by $1784 (ATH), $1800, and $1850 (1.618 Fib Extension). Beyond this, additional resistance lies at $1900, $1960, $2000, and $2060.

On the other side, the first support lies at $1686. This is followed by $1600, $1493 (.236 Fib), $1425 (previous ATH), $1392, and $1310 (.382 Fib).

The daily RSI has come down from near overbought conditions but still remains above 50, indicating the buyer are still in control over the market momentum.

ETH/BTC – Buyers Defend 0.04 BTC Support

Key Support Levels: 0.04 BTC, 0.038 BTC, 0.0377 BTC.
Key Resistance Levels: 0.0416 BTC, 0.044 BTC, 0.045 BTC.

Against Bitcoin, ETH also set a new 2021 high at 0.046 BTC last week. It had met resistance at a 1.272 Fib Extension and started to head lower from there.

Yesterday, ETH spiked as low as 0.04 BTC, where it found support at an ascending trend line. It quickly rebounded and closed the daily candle at around 0.041 BTC.

Today, ETH spiked further lower, reaching as low as 0.038 BTC but has since rebounded above 0.04 BTC.

ethbtc-feb8-new
ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, the first resistance lies a 0.0416 BTC (2019 High). This is followed by 0.044 BTC, 0.045 BTC, 0.046 BTC (1.272 Fib Extension), and 0.0483 BTC (1.414 Fib Extension). Additional resistance lies at 0.049 BTC and 0.05 BTC.

On the other side, the first support lies at 0.040 BTC. This is followed by0.038BTC BTC, 0.0377 BTC (.5 Fib), and 0.0361 BTC (March 2019 High).

The daily RSI rebounded from the midline over the weekend, indicating that the bullish momentum has dropped, but the sellers are unable to take control of the market momentum. If it starts to rise further beyond 50 again, the bullish momentum will increase and push ETH higher.

 

Title: Ethereum Sets New All-Time High, Is $2000 Incoming? (ETH Price Analysis)
Sourced From: cryptopotato.com/ethereum-sets-new-all-time-high-is-2000-incoming-eth-price-analysis/
Published Date: Mon, 08 Feb 2021 17:57:49 +0000

post

7 points the DeFi suite can do for you in 2021

DeFi was the hottest topic of the year in the 2020 crypto realm. It has ruffled feathers and disrupted the financial world as blockchain technology transcends simple value transfer to include other financial services.

DeFi is a game-changer, innovation at the forefront, a promise, the next step to a global financial ecosystem where anyone, anywhere, at any time can access a variety of financial services. This goes beyond being able to transfer bitcoin or other cryptocurrencies across the world instantly and seamlessly. DeFi makes savings, loans, trading, insurance, and more accessible to anyone around the world with a smartphone (or supported wallet) and internet connection.

Short for decentralized finance, DeFi revolves around an ecosystem of decentralized applications (dApps) built on top of a blockchain network. Almost all DeFi applications are built on the Ethereum blockchain, which is primarily designed to create and execute smart contracts. These smart contracts are programs running on the blockchain that deploy automatically when specific conditions written into the contract are met.

As a simple example, a smart contract can be programmed to release funds to another user for Christmas each year. But smart contracts can also enable developers to build sophisticated dApps that provide functions beyond sending and receiving cryptocurrency. DeFi dApps can create stablecoins, lend out money and earn interest, take out a loan, exchange one asset for another, or even implement advanced automated investment strategies.

Here is a list of seven of the most popular types of applications in the DeFi suite and what they can do for you:

1. Decentralized exchanges (DEXes) where you own your keys

A DEX allows users to buy and sell their crypto with one another directly through a smart contract on the Ethereum blockchain, without a central authority. It effectively cuts out any middlemen (especially centralized crypto exchanges) so users can regain control of their finances and no longer need to entrust their money with governments, financial institutions or central banks.

Decentralized exchange platforms (DEXes) such as AirSwap Team, Bancor, IDEX, paraswap, and SushiSwap all have slightly different architectures.

One of the most popular DEXes at the moment is the decentralized trading protocol UniSwap. Uniswap is a fully decentralized cryptocurrency exchange that uses Automated Market Making to automatically settle trades and lets users trade popular tokens directly from their wallets.

Uniswap
Since its inception, the Uniswap Protocol (”Uniswap”) has served as trustless and highly decentralized financial infrastructure.

In an unprecedented move to show gratitude to their early community members, Uniswap conducted an airdrop in October, giving away 400 UNI to each address created before September 1, 2020, that conducted at least one transaction on Uniswap v1 or v2. At the time, 400 UNI was worth between 1,600 and 3,200USD, and currently hovers under 1,000USD.

Users with multiple addresses have really benefited from this unexpected gift. Furthermore, in the latest version of Uniswap (launch yet to be announced), UNI token holders will receive a percentage of each transaction that goes through the platform.

Uniswap
Uniswap conducted an airdrop in October 2020, giving away 400 UNI to each address created before September 1, 2020, that conducted at least one transaction on Uniswap v1 or v2. At the time, 400 UNI was worth between 1,600 and 3,200USD, and currently hovers around 3.7 USD.

2. Borrowing and lending — Higher yields, lower cost

Arguably the fastest-growing sector of DeFi, borrowing and lending platforms connect parties through smart contracts rather than leaving the management up to banks. Lenders can provide loans to businesses or deposit money and earn interest as others borrow their assets. Since middlemen are cut out of the exchange, lenders are able to earn higher returns.

Compound is an example of a popular blockchain-based borrowing and lending dApp. Users can lend out their crypto and earn interest on them, or deposit cryptocurrencies to the Compound smart contract as collateral in order to borrow funds. Due to its decentralized nature, users don’t have to specify their personal details (name, financial history, etc.) and their collateral is enough to get a loan. The borrowing/lending rates are algorithmically adjusted based on supply and demand.

Source: Compound.finance website.
Source: Compound.finance website.

3. Stablecoins — Instant processing, lower volatility

Stablecoins are less volatile cryptocurrencies as their price is pegged to a reserve asset such as the US Dollar or commodities like gold. Combining this elimination of doubt over value volatility with instant processing, and the security and privacy of crypto payments, they offer a strong value proposition.

Wrapped Bitcoin (WBTC) is one of the top DeFi tokens by market capitalization, in second rank with a market cap of approximately 1.6 billion USD at the time of writing. WBTCs are a method of sending bitcoin to the Ethereum network so they can be used directly in Ethereum’s DeFi system. It allows users to earn interest on the bitcoin they lend out via decentralized lending platforms. Other popular DeFi stablecoin projects include MakerDAO (DAI) and USD Coin (USDC).

4. Prediction markets — Bet with lower fees and better odds

Decentralized prediction market protocols allow users to bet on the outcome of future events, such as elections, without intermediaries. Traditional betting platforms tend to maximize the amount of value they extract from customers with high fees, low odds and all sorts of limitations.

Blockchain-based prediction markets like Augur and Guesser are changing this by providing a decentralized, peer-to-peer exchange that enables global and transparent access to its markets.

Users keep more of their winnings due to low fees and better odds (thanks to the wisdom of the crowd). An observation from CoinDesk points out that:

“DeFi has the potential to boost interest in prediction markets, since they are traditionally frowned upon by governments and often shut down when run in a centralized manner.”

5. No-loss lotteries — Play the lottery without losing your money

Another DeFi service includes participating in a no-loss lottery. PoolTogether is a no-loss game where participants deposit DAI stablecoins into a common pot. At the end of each month, a lucky participant wins all the interest earned and everyone else gets their initial deposits back.

PoolTogether is a protocol for no-loss money games powered by Ethereum.
PoolTogether is a protocol for no-loss money games powered by Ethereum.

6. Synthetic assets — Bet on real-world assets without holding them

Synthetix is a token trading platform built on Ethereum that allows users to create and exchange synthetic versions of real-world assets. It allows users to bet on crypto assets, stocks, currencies, precious metals and other assets in the form of ERC-20 tokens, without holding the actual asset. The synthetic assets are backed by excess collateral locked into the Synthetix contracts.

Synthetix rose to the top of the DeFi dApp charts in 2019 and has focused on transitioning to a decentralized governance structure in 2020. The big Synthetix feature that many are anticipating is when it attains the “ability to trade stocks like Tesla and Apple on top of Ethereum”.

Synthetix
Synthetix is the backbone for derivatives trading in DeFi, allowing anyone, anywhere to gain on-chain exposure to a vast range of assets.

Trade stocks like Tesla and Apple on top of Ethereum, without ever holding the actual shares.

7. Robo-advisors — Automated smart contract-based investment portfolios

Although relatively nascent to the DeFi scene, investors in DeFi can generate the highest possible yields with the help of robo-advisors. Investors would normally need to keep a constant eye on contracts and quickly reallocate in order to get the best yields. But now a robo-advisor (designed and set through a smart contract) can conduct the monitoring and allocating for investors. For example, an investment pool with five million worth of ETH in it will automatically be moved to a platform that offers the highest percent for collateral on ETH-based derivatives.

Staked’s Robo-Advisor for Yield (RAY) and Rari Capital are two popular robo-advisors that automate the process of finding high-yielding opportunities. RAY targets investors holding ETH, USDC or DAI, who can put their assets into a pool and let the smart contract automatically invest the pool (or part of it) into contracts with the best yield. Rari Capital operates on the same principles, but takes things a step further by offering three separate pools for users with different risk appetites.

The top 10 DeFi projects in market cap. Source: CoinMarketCap.com
The top 10 DeFi projects in market cap. Source: CoinMarketCap.com

Conclusion

With today’s DeFi suite, users can exchange cryptocurrencies through a decentralized platform, obtain a loan through a borrowing and lending platform, earn interest on their cryptocurrencies, bet in decentralized prediction markets with lower fees and better odds, enter no-loss lotteries, bet on synthetic real-world assets without holding them, invest strategically with the help of robo-advisors, and more. This is what DeFi can do now, and this article only highlights seven of the most popular use cases.

As an evolving and developing field, DeFi has yet to unleash its full potential. Its talents, its strengths, its risks, its possibilities, we’re still in the process of discovering them all. DeFi will continue to push boundaries, break down walls, and create havoc (regulators, I’m looking at you) in the financial industry. It’s the next step in a movement that aims to create an open-source, permissionless, and transparent financial service ecosystem available to anyone, anywhere, without the involvement of a central authority.

The post Seven things the DeFi suite can do for you in 2021 appeared first on CryptoSlate.

Title: Seven things the DeFi suite can do for you in 2021
Sourced From: cryptoslate.com/seven-things-the-defi-suite-can-do-for-you-in-2021/
Published Date: Tue, 05 Jan 2021 14:53:15 +0000

post

Is Grayscale Introducing A Chainlink Depend On?

A Twitter user going by “ChainLinkGod.eth” recently discovered a document that hinted at crypto asset management Grayscale launching a Chainlink trust.

“Grayscale Chainlink Trust (LINK) Filed on December 18th, 2020 as a Delaware Domestic Statutory Trust Is it real or just an elaborate larp? Only time will tell”

Along with the tweet, the user also shared the following image:

Neither Grayscale nor Chainlink commented, but a ‘Grayscale Chainlink Trust’ product doesn’t really sound that far-fetched either.

Along with Chainlink, a quick search on Delaware’s Division of Corporations website also shows the “Grayscale Decentraland Trust (MANA)” and the “Grayscale Basic Attention Token Trust (BAT).” As of now, we don’t know the validity of these companies.

What Is Chainlink?

Chainlink is a decentralized oracle service with a market cap of $9.8 billion and is the 7th largest coin in the market. Oracles are third-party tools that fetch data from outside a blockchain to within it. As a result, this allows blockchains to gain better interoperability with the outside world, plus all the data it is working with can be kept up-to-date.

How Can Chainlink and Grayscale Work With Each Other?

Grayscale products are some of the only regulated crypto-offerings to trade on public markets in the US. They have partnered up with different custodians (like Coinbase) to hold a certain amount of cryptocurrency tied to a “trust” share. Investors can either subscribe or purchase those shares on the open market. The subscription has a six-month lock-in. As the value of the tied up crypto rises, the value of the trust share rises as well. 

More on Grayscale

Grayscale manages $25.5 billion in crypto, and its official line of products offers clients exposure to Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), and Zcash. Clients can also use the Grayscale Digital Large Cap Fund to gain exposure to a basket of cryptocurrencies. Unsurprisingly, the Bitcoin Trust is their most popular product with $21 billion AUM, while Ethereum comes in a distant runner-up at $3.6 billion.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Title: Is Grayscale Launching A Chainlink Trust?
Sourced From: cryptodaily.co.uk/2021/01/grayscale-chainlink-trust
Published Date: Mon, 25 Jan 2021 09:40:03 +0000

Beijing and Shanghai Formally Signs Up With The Digital Yuan Project

As per Global Times, the two largest cities in China – Beijing and Shanghai – will be joining the Digital Yuan project. The capital city’s mayor said that they would be hastening the development of “demonstration zones” for fintech and professional services over 2021. This effort will include promoting a pilot application for the Chinese CBDC, officially called Digital Currency Electronic Payment (DCEP). Shanghai’s mayor also made a similar pledge.

What Is The Digital Yuan?

The DCEP or digital Yuan is the Chinese CBDC overseen by the People’s Bank of China (PBOC). The initial tests had been carried out in Shenzhen, Suzhou, Xiongan new area, and Chengdu. The circulation of the DCEP goes from the PBOC to the public via local banks or financial institutions.

What is DCEP’s Technical Design?

The CBDC uses a two-layer architecture and a two-tier delivery system. This dual offline technology ensures that the transaction will get processed even if China’s online banking and other virtual payment platforms go offline. The DCEP will also not be tied or dependant on the users’ bank accounts, and they will work independently from China’s existing banking system. They will also be backed by the nation’s credit to ensure price stability.

Shenzhen To Do Their Third DCEP Trial

Shenzhen has announced its third trial of DCEP, allowing the public to get their hands on the national digital currency via lottery-like giveaways. Many industry observers believe that these announcements mark a more significant push to promote the digital currency before launching in the “near future.” 

The registration for this event opened up on Wednesday for businesses and employees of enterprises staying in Shenzhen’s Longhua district during the Spring Festival. The previous lotteries were strictly for the city’s residents. The winners have to download an app to transact the digital coins.

This pilot aims to test China’s in-development central bank digital currency in the hands of the public. The lottery winners can spend these coins at 3,500 stores equipped with the appropriate point-of-sale technology.

Authorities in the Guangdong Province also said that they would be supporting Shenzhen’s overall development as an “innovative pilot zone” for the digital yuan. The city of Suzhou held a similar trial in December, also handing out 20 million DCEP.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Title: Beijing and Shanghai Officially Joins The Digital Yuan Project
Sourced From: cryptodaily.co.uk/2021/01/beijing-shanghai-digital-yuan-project
Published Date: Mon, 25 Jan 2021 09:40:00 +0000

Whales very own 40% of all Bitcoin– are they adjusting the marketplace?

Nearly half of the Bitcoin market is controlled by only 2500 accounts. Were there any collaboration between some of these ‘whales’, then given the relatively thin volume on trading Bitcoin, these whales would be able to have a huge amount of sway over the rise and fall in the Bitcoin price.

Bitcoin is still a very young asset, only having come into existence 12 years ago in 2009. Earlier this month the number one Cryptocurrency posted a new all-time-high of around $42,000 per Bitcoin, helping the combined Cryptocurrency market cap to surpass 1 trillion dollars.

It is said that single trades by one of the big whales can lead to a swing in the market, either up or down. 

A collaborative report between OKEX and data firm Kaiko looked at how retail investors, professional investors and whales were buying and selling. In the last week of November, the report concluded that as retail investors continued adding to their positions, whales were selling, leading to those small-time investors being trapped in their positions in the short to mid-term as the price fell.

In all likelihood, many of the retail investors would have then sold, leaving the whales to hoover up this Bitcoin as the price went down. The report finished by stating:

“large traders, whales and institutions are in the business of buying low and selling high. It is not in their interest to continue buying coins at new highs and making them even more expensive.”

With regard to the whales, it also said:

“they seek to drive the market, shake out retail traders in panic and capitalize on opportunities to buy relatively cheap coins.”

Bitcoin whales are individuals or companies that have extremely large Bitcoin holdings. Some reference the amount of 1000 Bitcoins as being the quantity of Bitcoin needed to be a whale. However, with prices generally rising that figure is changing.

The fact that 18 million of the entire 21 million Bitcoin supply has already been mined, adds to the value of what is already in circulation. When you also factor in estimates that as much as 5 million Bitcoin have been lost forever, then those who have large holdings of Bitcoin are wielding an ever more powerful influence over the market should they choose to use it.

The creator of Bitcoin, Satoshi Nakamoto, is rumoured to have about 1 million Bitcoin. Since his disappearance after Bitcoin was launched, his Bitcoin wallet has remained untouched, leading to further speculation on what would happen should this wallet become active once more.

Some of the other top whales include in second place, Micree Zhan, joint founder of Bitmain, which controls two of the largest Bitcoin mining pools. In third position is surprisingly the Government of Bulgaria. Bulgaria’s Bitcoin value holding surpassed the value of its gold reserves when it seized massive amounts of Bitcoin after raids on Cyber criminals operating in the country.

One other extremely large holder of Bitcoin is the FBI. Its holding was obtained back in 2013 when it closed down the online illicit market place known as ‘The Silk Road’. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Title: Whales own 40% of all Bitcoin – are they manipulating the market?
Sourced From: cryptodaily.co.uk/2021/01/Whales-own-40-percent-of-all-Bitcoin-are-they-manipulation-market
Published Date: Mon, 25 Jan 2021 09:39:57 +0000