Categories
News

Dogecoin [DOGE] buyers can leverage this pattern’s break to their benefit (www.blockcast.cc)

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice. While defending the $0.07 baseline, Dogecoin formed a bearish pattern on its daily chart. DOGE’s Social volumes declined but its funding rate unveiled some hope. Dogecoin’s [DOGE] reversal from the $0.07 support finally broke the streak […]

Visit us at https://is.gd/dMEhjY

Categories
News

Aave’s TVL witnesses a rise, but can AAVE benefit from these recent updates (www.blockcast.cc)

As  of 31 October, Aave had been experiencing a surge in its Total Value Locked (TVL), according to statistics from DefiLlama. Following the initial release of the protocol, the team went on to develop versions 2 and 3. And each version was tailored to a particular lending business. The TVL observed was the combination of […]

Visit us at https://is.gd/7TU1pE

Categories
News

SEC Chair: ‘basic disclosures’ by crypto companies will benefit investors (www.blockcast.cc)

US Securities and Exchange Commission (SEC) Chair Gary Gensler says the public can benefit more if crypto platforms were able to offer even the most basic of disclosures. Gensler, who has reiterated severally that the crypto sector needs to do more to protect consumers, made the comments during an interview with Yahoo Finance. Are you […]

Visit us at https://is.gd/QHBc0P

Categories
News

Uniswap trading at a long term demand zone- Where can sellers benefit (www.blockcast.cc)

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice. Data on DeFi Pulse showed decentralized exchange Uniswap to have a Total Locked Value of $7.04 billion, making it the fifth-largest decentralized protocol by TVL. Metrics revealed more than a thousand GitHub submissions, but […]

Visit us at https://is.gd/slPI8x

Categories
News

How SundaeSwap’s community governance plans can benefit Cardano (www.blockcast.cc)

Visit us at https://is.gd/55MNcX

Categories
News

‘Ditching’ PoW will benefit miners per ‘least disruptive’ solution by Ripple’s Chris Larsen (www.blockcast.cc)

Visit us at https://is.gd/aSAy2y

Categories
News

How Bitcoin can benefit both, Republican and Democratic parties in the U.S. (www.blockcast.cc)

Visit us at https://is.gd/uMwAd0

Categories
News

Three minutes to understand ArcherDAO: MEV solution for arbitrageurs and miners to benefit together (www.blockcast.cc)

Visit us at https://is.gd/kZJZ3r

Categories
News

Could Bitcoin Benefit From Wall Street’s Quarter-End Rebalancing? (www.blockcast.cc)

A migration of billions of dollars is set to happen from stocks to bonds by the end of March as US-based asset management firms rebalance their portfolios. And it could have a direct or an indirect impact on the Bitcoin market.

Nikolaos Panigirtzoglou, a cross-asset research analyst at JPMorgan & Chase, noted that pension funds, insurers, and similarly large investment groups will sell their stock positions to seek exposure in the bond market. The move, according to Mr. Panigirtzoglou, would appear as investors seek to go back to the classic 60/40 mix, a portfolio strategy that prompts asset managers to keep 60 percent of their capital in stocks and 40 percent in government bonds.

“It should be happening as we speak,” Mr. Panigirtzoglou told the Financial Times. “The rebalancing could already help to explain the stronger bond market performance so far this week, as the transfers are typically concentrated in the last two weeks of the quarter.”

US bond prices declined of late, led by the fall in the US 10-year Treasury note, which sent its yields up from 0.917 percent at the start of 2021 to around 1.617 percent on March 25. Meanwhile, the MSCI index of developed market equities surged 2.63 percent in the same period.

MSCI, BitcoinMSCI, Bitcoin
MSCI index of developed countries. Source: MSCI

Given the divergence between equities and bonds, analysts expect the quarter-end rebalancing to be large as more capital moves into fixed-incomes.

Will Bitcoin Suffer?

According to Australia’s Future Fund and Singapore’s GIC Pte, two of the world’s biggest sovereign wealth funds, it is now tougher for investors to generate returns from bond markets as yields on them remain historically low.

Central banks in developed economies have created an artificial demand for government debts as a part of their strategy to safeguard their economies from the coronavirus pandemic’s aftermath.

As a result, the 60/40 strategy has lost its charm. More investor money now sits in riskier assets and even newbie financial assets like Bitcoin that the global financial experts once rejected as too fishy, or an outright scam.

Given the reallocation prospects by the end of this quarter, Bitcoin continues to flash itself as a viable alternative to gold. Its provably scarcer features attract investors who need a hedge against faster inflation rates. Billionaire investors Ray Dalio, Paul Tudor Jones, and Stan Druckenmiller are some of the topmost names that have taken positions in Bitcoin because other safe-havens like bonds do not offer higher returns.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin price corrects lower after forming a record high above $61,000. Source: BTCUSD on TradingView.com

Goldman Sachs said in its recent report that 40 percent of its almost 300 clients have gained exposure in Bitcoin, showing that the asset’s price volatility is now the least of their concerns. Of late, Morgan Stanley also started offering three Bitcoin funds to its wealthy clients, raising hopes that all the money that would flow out of the stock market won’t end up in bonds only.

Nonetheless, Bitcoin remains highly valued like stocks. It could lead the cryptocurrency lower in the short-term based on its technically overbought merits.

Cover Photo by Tech Daily on Unsplash 

Let’s block ads! (Why?)

Categories
News

Exchange tokens benefit as centralized exchanges battle with DeFi platforms (www.blockcast.cc)

Fresh institutional and retail investor inflows into the cryptocurrency market have led to bull market conditions for many top tokens from blue-chips like Bitcoin (BTC) and Ether (ETH) to more recently established DeFi projects like AAVE and Synthetix (SNX).

Exchange tokens are another easily overlooked sub-sector of the market but they have been performing exceptionally well in 2021 as increases in trading volumes results in a larger pool of fees to collect when the exchange’s native token is used for settlement. Native exchange tokens are also typically used as the base pair for funding new listings and token buybacks.

Here are three of the top-performing exchange tokens in 2021 that continue to see upside potential as new investors flood into the market.

Similar to the experience of CryptoKitty users in 2017, the decentralized finance community has discovered that the main drawback of increased usage of the Ethereum network is high gas fees and long transaction times.

As a result, centralized exchanges and their associated native tokens have seen renewed interest as new features like staking, yield farming and collateralization allow investors to profit from holding their investments. These new offerings also allow investors to participate in DeFi-like offerings without worrying about impermanent loss and they also receive access to the latest coin listings.

BNB/USDT

Binance Coin (BNB) recently experienced a price breakout to a new high of $349.13 on Feb.19 as the top exchange by volume evolves both its centralized and decentralized exchange capabilities alongside further upgrades to the Binance Smart Chain.

BNB/USDT 4-hour chart. Source: TradingView

Several DeFi-related projects, including Venus (VNS) and Linear Finance (LINA) launched on the BSC in recent weeks which utilizes the BNB token to pay transaction fees on the network.

Binance also offers a continually expanding list of “investment products” that allow users to lend their tokens to the exchange pools in return for varying degrees of yield opportunities depending on lock-up periods and token demand.

Popular coins are quickly added to the growing list of tokens with options or futures trading capabilities, offering something for both devoted community members as well as pessimists who would rather take their chance at shorting newly listed assets.

Trading volume dominance and the benefits of having the first-mover advantage point to further upside potential for the Binance ecosystem and BNB.

Binance’s steady expansion and its active project incubator and Binance Smart Chain are designed to challenge Ethereum’s dominance in the sector, thus there remains a strong possibility that BNB could see an extension of recent gains.

FTT/USDT

The traditional finance and cryptocurrency markets are slowly beginning to merge and developing products for all types of traders. In 2020, derivatives exchanges also increased in popularity and their trading volumes steadily rose to new highs on a weekly basis.

Following the U.S. government crackdown on controversial derivatives exchange BitMEX, the door was opened for a newer, more community focused option to fill the gap.

FTX Token (FTT) is the exchange token for the FTX cryptocurrency exchange which got its start in the summer of 2019. For much of that first year, FTT traded below $2 with an average trading volume of $2 million as the exchange worked on establishing itself and attracting new users.

The exchange began to see an uptick in activity in 2020 which coincided with an increase in trading volume for FTT as well as its price.

As the platform expanded, additional functionality was added to the token which now includes fee rebates, staking and a ‘Buy & Burn’ mechanism that helps decrease FTT’s circulating supply to increase token value.

FTT/USDT 4-hour chart. Source: TradingView

Since Dec.11 when FTT was trading at $4.12, a surge in buying volume which reached a peak of $270 million on Feb.19 has propelled FTT to a new record high of $35.01 as the exchange is rapidly becoming the go-to derivatives exchange for the cryptocurrency community.

KCS/USDT

KuCoin Shares (KCS) has been a late bloomer in this bull market, maintaining a relatively flat token value until the beginning of February when a sudden uptick in trading volume helped elevate KCS price from $1.19 on Feb.2 to a recent high of $3.99 on Feb.19.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for KCS on Feb. 18 when it reached a high of 66, less than 24-hours before the price breakout.

Cointelegraph Markets Pro – VORTECS™ Score (green) vs. KCS price

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

A scroll through the project’s Twitter feed shows that on Feb.4 the biggest announcement coming out of the exchange was the listing of the popular blockchain-based video streaming platform Theta, which had previously been difficult to obtain for U.S. residents.

KuCoin also offers a growing list of tokens available for derivatives trading along with various ways to earn through staking or providing liquidity, with fees generated by the platform distributed to token holders who keep their KCS staked on the exchange.

DeFi hype overshadows exchange token gains

DeFi may be dominating the conversation in the cryptocurrency sector right now, but major issues including gas fees remain a barrier to widespread adoption.

While the roll out of layer two solutions may offer some relief to this problem, concerns about liquidity across separate blockchains continue to pose significant barriers to a smooth, low-cost trading experience.

Many who are chasing the DeFi hype fail to realize that popular token listings and lower trading fees have led to a resurgence in the use of centralized exchanges.

This translates into a larger user base that conducts more transactions, leading to an increase in trading volumes and healthy price appreciation for underlying exchange tokens like BNB, FTT and KCS.

Centralized exchanges still capture the majority of trading volume and this does not appear to be changing anytime soon. While decentralized exchanges like Uniswap and SushiSwap are growing in prominence and beginning to eat into the market share of centralized exchanges, they still comprise only a small portion of total trading volume seen in the cryptocurrency market.

The battle between exchanges is continuing to heat up and as long as this is the case, the increased inflow to exchange tokens could lead to future upside.

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.

Go to Source

Image Credit: Refer to Source
Author: Refer to Source Cointelegraph By Jordan Finneseth