Monat: Juni 2022

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DEX protocol dYdX to build its own blockchain

Decentralized exchange platform dYdX has announced plans to build a standalone blockchain, according to details the Ethereum Layer-2 protocol shared on Wednesday.

dYdX, one of the largest crypto derivatives platforms in the market today, says it intends to build the new chain based on the Cosmos SDK (software development toolkit). 

For transaction processing, the dYdX V4 will utilize the Tendermint proof-of-stake (PoS) consensus protocol.

A ‘fully decentralized orderbook’ and higher throughput

“dYdX V4 will feature a fully decentralized, off-chain, orderbook and matching engine capable of scaling to orders of magnitude more throughput than any blockchain can support,” the platform noted in a blog post.

While the team at dYdX plans to transition the DEX protocol into one of crypto’s biggest exchanges, they acknoelwdge the enormity of that ambition and the magnitude of how difficult it could be. However, led by co-founder Antonio Juliano, they are confident of successs.

“Developing a decentralized off-chain orderbook and moving from Ethereum to a dYdX-specific chain as a major DeFi protocol is very much untested, but we believe this gives dYdX the best shot at offering a competitive product experience with centralized exchanges,” the team said in a Twitter thread.

dYdX V4 will have a Layer1 token native to the chain, though the team says it hasn’t settled on the DYDX token as the community will need to have an input on that.

According to the platform, the plan is to build dYdX and open source it by the end of 2022.

The post DEX protocol dYdX to build its own blockchain appeared first on CoinJournal.

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Altcoin correction: Why could Solana be a good buy?

Altcoins are having one of the most difficult years in 2022. The major altcoins have all dropped massively since the turn of the calendar, and with sentiment in the market slowing, the worse is yet to come. But despite this, some investors see the correction as the perfect chance to buy coins at fair value. Solana could be a good bargain, and here is why:

  • SOL is backed by a robust blockchain project that will offer utility for years

  • Some of the biggest institutional investors in the world are buying SOL

  • The coin has dipped massively and has never been this cheap

Data Source: TradingView 

Solana price analysis and future

There is always this fear that during a major downturn in the market, a majority of altcoins will quite frankly cease to exist. In fact, some projects have already gone under, and we are not even done with the bear market. But Solana is just a different ball game. With a market cap of $12 billion, SOL is just too big to go down for now.

But the price action is also quite interesting. After tanking to around $25, the coin was threatening to fall below $20 for the first time in months. But as the crypto market saw some recovery, SOL led other major altcoins in fully outperforming the entire market.

For now, the coin sits pretty above $35. But we don’t think this is the final price. In fact, the June crypto fallout will likely continue for a few weeks. If SOL drops below $25, buy it.

Why it makes sense to load up on Solana

Every market has ups and downs. Crypto is not any different. Right now, investors are feeling the pain.

But the underlying factors that have made crypto attractive over the years have not changed. Even as the outlook turns dull, crypto will recover, and coins like SOL will lead the way.

The post Altcoin correction: Why could Solana be a good buy? appeared first on CoinJournal.

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Ethereum returns above $1000 – Should you buy

For so many years, many fence-sitters in the crypto industry have waited in bated breath for the prices to crash so that they can buy in. After all, in 2021 crypto was just hot. Coins hit record-breaking highs, and Ethereum was predicted to hit $10,000 this year. But things haven’t really turned out that way. Here are some facts:

  • ETH fell below $1000 for the first time in months.

  • However, the coin has managed to regain the four-digit price.

  • An upward trend reversal is not likely at the moment.

Data Source: TradingView 

Ethereum: Where will it go?

Now, when ETH fell below $1000, most analysts saw a deeper fall. But the crypto market just surprised us. Prices recovered, and ETH was once again above $1000. This may seem like a good sign. But it’s actually not. The driving economic and financial risks that have put so much pressure on crypto have not yet eased.

Yes, there are growing efforts to deal with inflation and reduce its impact on the economy. But the success of these efforts will come in the long term. So, even though ETH is now above $1000, the coin is still exposed to further downside.

We in fact think that another major sell-off is coming in crypto. This will likely be the last blow that finally sends ETH and most coins firmly into the bear market. As such, it may not be the most ideal time to buy.

When to buy Ethereum?

There are two support levels for ETH after $1000. The most immediate one is around the $800 mark, and the second one is at about $550. ETH will likely bottom at either of these two.

The best strategy would be to use dollar-cost averaging and buy the moment ETH hits $800. Continue buying even if it dips towards $500. After that, give it a few months and just wait.

The post Ethereum returns above $1000 – Should you buy appeared first on CoinJournal.

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Cardano fails to hold $0.5 – What next?

Cardano was up for a few days of recovery after the crypto market rebounded over the last weekend. At one point, ADA in fact managed to surge past the crucial $0.5 price. Many analysts expected the coin to consolidate above this but it has since pulled back below. So, what happens next for ADA? Here are some notable highlights first:

  • ADA has retreated slightly but could still retest $0.5 with improved sentiment

  • The coin will however need to see a surge in trade volume for this to happen

  • Failure to reclaim $0.5 could push ADA back to the $0.380 support in the short term

Data Source: TradingView 

Cardano price analysis and prediction

After a major sell-off in crypto over the past week, the market began to recover this weekend. ADA in fact went above $0.5, a crucial support zone that it had managed to hold for a few weeks. However, the altcoin failed to keep the price there. 

Instead, ADA retreated and is now trading at around $0.48. However, there is still an opportunity for the coin to jump above $0.5. But based on relatively lower trade volume, ADA may struggle to get there. Nonetheless, if bulls can somehow regain $0.5, ADA will need to surge past $0.55 to have any chance of staying above.

In fact, a sustained accumulation here could trigger a run towards $0.63 in the near term. But if weakness persists, ADA may see a major cliff dive that will push it towards its monthly support of around $0.380.

Will ADA rebound?

Well, ADA has actually been rebounding over the past few days. The pullback seen over the last 24 hours could be a bleep in an otherwise decent run. 

But since sentiment in the market is yet to fully recover, it is likely ADA has faced a major loss of momentum. As such, a steadier decline could come in the days ahead.

The post Cardano fails to hold $0.5 – What next? appeared first on CoinJournal.