Monat: Dezember 2022

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DeFi sees 31% jump in users despite 2022 market conditions

  • DeFi continues to attract more users with strong products and services across segments such as decentralised exchanges, lending protocols and staking.
  • Users across the sector increased by 31% quarter on quarter in 2022, although that pales compared with the 525% spike seen in 2021.
  • Latest estimates for total DeFi users suggest the number will surpass 5.5 million in Q4, 2022.

Decentralised finance, or DeFi, remains big, though not with the same numbers as seen a year ago. In 2021, user numbers skyrocketed 545% as cryptocurrencies boomed on the back of a staggering bull run.

While DeFi statistics for 2022 show a decline in user growth amid the year-long crypto winter, the sector still witnessed a 31% increase in users. The quarter on quarter increase in users was captured in the latest report on DeFi growth by HashKey Capital.

DeFi users have surpassed 5 million

As HashKey Capital analysts highlighted in their recent report, DeFi is not just eating into the traditional finance, or TradFi market, but it’s also curving its own new market. The trend relates to what is a “blue ocean market,” the report noted, with the DeFi sector’s new and innovative services capturing demand that’s adding to the steady growth in users.

A drop in total value locked (TVL) – it is now below $40 billion as per DeFiLlama, still doesn’t tell the whole story of decentralised finance in the past one year.

Overall, user wallets across DeFi segments such as decentralised exchanges (DEXs), lending, collateralized debt positions (CDPs), bridges, staking and yield, surpassed 5 million in the third quarter of 2022. It is estimated DeFi users will number more than 5.5 million by the end of Q4, 2022, with a growth projection of 8% during the quarter.

Projects use crypto winter to build and improve

A look at market prices shows that most assets in the space have plummeted in value and the DeFi index has shrunk by 76%, compared with a 65% decline for Ethereum. But despite this, projects have used the crypto winter to build and improve their products, attracting more users.

The sector has also seen continued investment from venture capitals. For example, the first half of 2022 saw VC invest more than $14 billion across 725 projects in the crypto space. Many of these were DeFi-focused.

The post DeFi sees 31% jump in users despite 2022 market conditions appeared first on CoinJournal.

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Learn about OKT, a Cosmos-based altcoin now defying a bear market

  • OKT token rose by double digits last week

  • The cryptocurrency has been boosted by new partnerships

  • OKT is correcting but remains on an uptrend

OKT, the cryptocurrency native to the OKX Chain, made headlines last week. The cryptocurrency rose by double digits to end the week at $27 after trading at just $17 seven days earlier. OKT has since cooled and traded at $22 as of press time. A spot technical check shows that the token has been on an uptrend for more than a month. What has been boosting the price?

OKX is a Cosmos IBC-linked blockchain. It is EVM-compatible and focuses on true interoperability for high performance. The blockchain dubs itself the next-gen platform for decentralised applications. OKX Chain’s Web3 wallet allows users to manage their portfolio of NFTs and tokens. 

OKT’s gains come on the back of positive cryptocurrency news of the OKX Chain. The blockchain announced partnerships with social gaming platform Candy Club, DEX network Lovely Swap, and meme asset Chihuahua Chain. The other firm in the latest wave of collaborations was market analytics firm Nansen. The collaborations increase the utility of OKT since the cryptocurrency will be employed in a number of related use cases. Investors have been taking note and buying the little-known token.

OKT corrects after meeting resistance at $27

OKT/USDT Chart by TradingView

A technical outlook shows OKT on a clear uptrend but currently correcting. The moving averages are bullish for the cryptocurrency and provide support. The RSI hit the overbought levels but shows a correction underway. The reading is still above the midpoint. 

Will OKT continue rising?

The future price action for OKT will depend on how the key collaborations will continue to drive it. It should be remembered that the broader market sentiment is bearish. So, OKT should be looked at with the bearish sentiment in mind. 

For investors looking to buy OKT, the level around $19 should be watched. The formation of bullish signals at the level could attract buyers and push the price higher again.

Where to buy OKT

Bitfinex

Bitfinex is a bitcoin exchange platform that provides advanced services for digital currency traders and liquidity providers.

Buy OKT with Bitfinex today

The post Learn about OKT, a Cosmos-based altcoin now defying a bear market appeared first on CoinJournal.

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Back to basics for Chainlink. Bulls have to defend $6 before a further crash happens

  • Chainlink traded at $6 on Monday, stabilising at the crucial support

  • LINK buyers have always defended $6 against the onslaught of bears

  • LINK could fall further if a break in the crucial support happens

The start of Chainlink staking ignited an interest in the native token LINK. The cryptocurrency was on an uptrend in the last two weeks of November, ahead of the crucial milestone in early December. But as the early access kicked off, LINK has failed to register gains. Instead, the token has succumbed to the bear market. Bulls are battling $6, as the price now faces a brutal collapse if bears win. But will this happen?

Chainlink price outlook and analysis

$6 is an important price level for Chainlink. Past price action shows that bulls have defended this crucial level since June. The level has been tested severally, offering clues that LINK could overcome a further slump.

Nonetheless, there is no price action signal to support a recovery up to this point. From the daily chart below, multiple inside bars are forming at the crucial level, underlying indecision in the market. Since this happens in a bear market, it signals the exit of sellers or the entry of buyers.

LINK/USD Chart by TradingView

From a technical outlook, LINK trades below the 20-day and 50-day moving averages. The moving averages have almost been flat, indicating that LINK is better considered to be in an extended consolidation. The cryptocurrency is recovering slightly, although the RSI signals that bears remain in control.

Will Chainlink recover?

The next price action will shape the direction of Chainlink. LINK price has stabilised at $6, but the bear pressure is still on. If the cryptocurrency loses this support, a lower price of around $5.4 will remain in sight.

Where to buy LINK

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy LINK with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients‘ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy LINK with OKX today

The post Back to basics for Chainlink. Bulls have to defend $6 before a further crash happens appeared first on CoinJournal.

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Binance coin stabilises, but this analyst thinks BNB is heading the LUNA way

  • Binance coin recovered slightly on Monday after a losing streak

  • Crypto analyst says Binance could collapse similarly to Terra Luna

  • The cryptocurrency is under pressure due to concerns about centralised exchanges

Binance (BNB/USD) traded up marginally on Monday, overcoming an accelerated selloff the past week. The selloff has been sparked by concerns of market turmoil for the world’s largest crypto exchange.

According to Delphi Digital, a crypto insights firm, Binance recorded over $5 billion in crypto outflows on December 13th and 14th. The outflows happened amid concerns about the insolvency of Binance following the collapse of FTX. Binance produced its proof of reserves to assure its stability, but this didn’t calm the markets. As CoinJournal reported, auditor Mazars faulted the reserves, and this caused a further confidence crisis. A crypto analyst now thinks Binance could head the LUNA direction.

Remember the famous Terra Luna crash? Perhaps it could sound too alarming to think Binance could have a similar fate. But pseudonymous crypto analyst Smart Contracter says the multi-year trend of BNB versus BTC mirrors that of Terra Luna. Using the Elliott Wave theory, the analyst says BNB/BTC has completed Elliot’s five-wave cycle. He says this is the same price action LUNA printed before crashing in May. Smart Contracter says BNB is set for a reversal at $0.007378 BTC, coinciding with the 61.8% Fib level. The analyst says BNB could fall to $80-$100 next.

BNB recovering above the 23.6% Fib level amid bear pressure

BNB/USD Chart by TradingView

We apply the Fibonacci retracement levels, with the June bottom as the swing low and the November top as the swing high. From the Fib levels, BNB lost dynamic support at 78.6%, 61.8%, 50%, 38.2%, and 23.6% Fib levels. The latest recoveries have pushed the price above the 23.6% Fib level.

However, BNB should be considered bearish as long as the price remains subdued by $266, support-turned-resistance.

What next for BNB?

BNB could remain under bear pressure as long as negative cryptocurrency news emerges. In a bear scenario, BNB stares at $200. The price has to move above $266 to consider the upsides possible.

Where to buy BNB

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BNB with eToro today

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Buy BNB with Binance today

The post Binance coin stabilises, but this analyst thinks BNB is heading the LUNA way appeared first on CoinJournal.