Monat: Juni 2022

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Tron Price is at a Major Risk of USDD De-Pegging

The Tron price crashed hard as investors reacted to the rising risks of its stablecoin that is known as USDD. The TRX token crashed to a low of $0.055, which was the lowest level since January this year. It has crashed by more than 32% from its lowest level in May this year.

USDD de-pegging

Tron is one of the best-known blockchain projects globally. It is a platform that was started by Justin Sun, a computer programmer who paid millions to have lunch with Warren Buffett.

Today, Tron has become a leading blockchain operating system that powers stablecoins worth billions every day. It is also a key player in the Decentralized Finance (DeFi) as the total value locked (TVL) in its ecosystem has surged. It is now the third-biggest player in the sector after Ethereum and BNB Chain.

Tron also recently became a big player in the stablecoins industry as the developers launched a new coin known as USDD. It is an algorithmic coin that has a close resemblance to the now-dead Terra USD. 

USDD saw a lot of growth as its total market cap jumped from zero to over $750 billion in less than two months. Investors bought the coin even as risks of de-pegging remained since it is not backed by anything. 

Learn more about how to trade Tron.

Now, it seems like these risks are coming to life as the price of the USDD stablecoin moved below $1 for the first time on record. At the time of writing, the coin is trading at $0.98, giving it a market cap of $711 million. 

Therefore, in my view, I believe that USDD is the biggest risk that Tron’s TRX faces. Since it is not backed by anything, there is no reason to believe that its price will not de-peg as happened with Terra.

Tron price prediction

The daily chart shows that the TRX price has been in a strong bullish trend in the past few months. It even defied gravity as other coins crashed. The coin found a lot of resistance at $0.092, which was along the upper line of the ascending channel.

A closer look at the chart shows that the coin has now moved below the lower side of the channel and crossed the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has also crashed below the oversold level.

Therefore, there is a likelihood that the Tron price will continue falling as bears target the next key support at $0.05.

The post Tron Price is at a Major Risk of USDD De-Pegging appeared first on CoinJournal.

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The crypto market is closer to the bottom than stocks, says Mike Novogratz

The cryptocurrency market has lost over $200 billion in the last few days, with the market cap now below $1 trillion.

Mike Novogratz, the founder and chief executive officer of Galaxy Digital Holdings Ltd., believes that the cryptocurrency market is closer to the bottom than stocks. He made this statement during a recent interview with Bloomberg.

Cryptocurrencies and stocks have been underperforming since the start of the year. Most cryptocurrencies have erased the gains they accumulated in 2021 and are trading at their 2020 levels.

Bitcoin is trading around $22k after losing more than 22% of its value in the last 24 hours. If the bearish trend continues, Bitcoin could trade around the $20k mark for the first time in more than a year.

Ether dropped as much as 21% to $1,165 on Monday. Bitcoin has lost 67% of its value while Ether is down by 74% since hitting record highs in early November.

However, Novogratz said cryptocurrencies are closer to the bottom than stocks. He said;

“Ethereum should hold around $1,000, and it’s $1,200 right now. Bitcoin is around $20,000, $21,000, and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20%. “Until I see the Fed flinch, until I really think, OK the economy is so bad, and the Fed is going to have to stop hiking and even think about cutting, I don’t think it is time to really deploy lots of capital.”

Some market experts attributed the recent market crash to Celsius’s withdrawal pausing policy issued on Monday. However, the cryptocurrency market began to record losses since Friday.

The rising inflation levels continue to affect the cryptocurrency and stock markets. The total cryptocurrency market cap has dropped below $1 trillion, down from the all-time high of $3 trillion recorded in November 2021. 

The post The crypto market is closer to the bottom than stocks, says Mike Novogratz appeared first on CoinJournal.

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Chainlink – A highly undervalued cryptocurrency to buy in 2022

There is a mismatch between LINK’s price and its levels of adoption.

Key points:

  • Chainlink has dropped heavily in value and market cap rankings in 2022.

  • Nonetheless, it remains one of the most adopted cryptocurrencies for decentralized data.

  •  A combination of depressed prices and growing adoption makes LINK a value buy today. 

Chainlink (LINK) has been on a downtrend for most of 2022. While the broader market has primarily been bearish this year, LINK has particularly taken a big hit and even lost its position as a top 20 cryptocurrency by market capitalization.

However, these price dynamics don’t mean that LINK is a lousy investment. It remains solid crypto with good potential long term. For context, consider that LINK has Bitcoin-like dominance in its core markets.

Chainlink is a decentralized oracle cryptocurrency and controls over 60% of this market. This makes it more significant than all its competitors combined. Besides dominance, it is also noteworthy that the decentralized oracles market is growing fast. That’s because it entails supplying smart contracts with decentralized real-world data. Since the Dapps market is on a growth trajectory, the odds are that the demand for Chainlink will keep going up over time.

Is Chainlink a good buy?

From the above analysis, it is clear that Chainlink has a good future ahead of it. As long as the Dapps market is growing, so will the value of LINK. Besides the fundamentals, LINK’s price has dipped from highs of $52 to $7.16. That’s a drop of 86%. While there are no guarantees in crypto, the price drop makes LINK a highly undervalued cryptocurrency. Moreso, when you consider that Chainlink adoption is rising across the cryptocurrency ecosystem.

Conclusion

While Chainlink’s price has tanked and its position in market cap rankings dropped, it is still one of the best out there. Its levels of adoption remain high relative to many other cryptocurrencies in the market today. This makes LINK massively undervalued.

The post Chainlink – A highly undervalued cryptocurrency to buy in 2022 appeared first on CoinJournal.