Monat: Februar 2023

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This crypto stock could nearly triple from here: H.C. Wainwright

  • H.C. Wainwright reiterates its buy rating on DMG Blockchain.
  • The crypto company had its revenue quadruple in fiscal 2022.
  • DMG stock has already gained 100% since the start of the year.

Shares of DMG Blockchain Solutions Inc (CVE: DMGI) have already more than doubled this year but an H.C. Wainwright analyst is convinced the stock still has massive room to the upside.

DMG stock has upside to C$1.0 a share

On Thursday, Kevin Dede reiterated his “buy” rating on the blockchain firm. His C$1.0 price objective suggests another 200% upside from here.

The bullish call arrives only days after DMG Blockchain Solutions said a sharp increase in bitcoin mining saw its revenue more than quadruple in fiscal 2022 to C$43.2 million.

DMG closed out the fiscal year at 700 Ph/s up from 15 Ph/s at the end of fiscal 2021, while ending CY22 at 900 PH/s.

DMG Blockchain Solutions is currently pending delivery of Bitmain XP machines that, the analyst noted, will improve its hash rate by another 42 Ph/s.

DMG is well-positioned for greater regulation

Dede likes DMG also for its healthy profit margins. The cryptocurrency company mined 200 bitcoins in its fourth financial quarter at an average cost of about $10,000. The research note reads:

[DMG] is holding approximately C$10.3 million of cash and digital currencies, and little debt, but adding C$1M in December quarter, FY1Q23, merely testing the waters in consideration of funding its 2 Eh/s CY23 mining target.

Other reasons cited for reinforcing the bullish view included its commitment to significantly expanding its footprint in software and services that currently make up only 5.0% of its annual sales.

DMG’s Core+, the analyst concluded, positions it to easily navigate the growing regulations as well.

The post This crypto stock could nearly triple from here: H.C. Wainwright appeared first on CoinJournal.

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Solana-based crypto lender Everlend Finance shuts down app

  • Everlend Finance has closed down its lending app.
  • Users have been advised to withdraw their assets.
  • The crypto lender has blamed the current liquidity crunch in the market for the shutdown.

Everlend Finance a DeFi lending protocol built on Solana (SOL/USD) has announced the closure of its lending platform citing a liquidity crunch.

In a tweet late February 1, Everlend Finance said that it will not continue with the development of the platform after shutting it down.

Withdraw-only mode

Since making the announcement, the Everlend team has switched the platform to withdraw-only mode and users have been asked to withdraw their funds. According to the announcement, the up will remain open for withdrawals until all the withdrawals are processed. All raised and unused funds will also be covered within the next two weeks.

According to Everlend, leaving the platform to continue operating in the current conditions would be a gamble because of the liquidity crunch facing the DeFi lending industry. At the time of its closure, the platform controlled a total value locked of about $400,000 according to data from DeFiLlama. Its business had drastically declined after the collapse of FTX.

The team went ahead to say that the shutdown will only affect the Everlend app front end and the codebase will be made open-source for users to continue building solutions using its technology.

Everlend Finance is now the second Solana-based DeFi lender to shut down in 2023. Friktion, a Solana-based DeFi yield platform, closed down its lending app in January due to the challenges facing the crypto industry.

The post Solana-based crypto lender Everlend Finance shuts down app appeared first on CoinJournal.

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Aptos price forms a bullish flag amid on-chain activity woes

  • Aptos price has been in a strong bullish trend in 2023.

  • Its DeFi TVL has plunged in APT terms.

  • The number of users in its ecosystem has been falling.

Aptos (APT/USD) price has done spectacularly well in 2023, making it one of the top-performing coins in the industry. The coin peaked at $20.44 in January, which was about 448% above the lowest point this year, as we wrote here. However, a closer look at its network shows that things are not going on well.

Aptos on-chain metrics concerns

Aptos, formerly known as Diem, is a relatively new blockchain that acts as a good alternative to Ethereum, BNB, and other smart contract platforms. The network has been growing rapidly in the past few months. 

However, a closer look at its on-chain and ecosystem numbers paint the opposite picture. For example, Aptos total value locked (TVL) in DeFi has been in a strong growth in dollar terms in the past few months. It stands at an all-time high of $76 million.

At face value, this trend seems good. However, when you switch to the TVL in Aptos terms, which is the one that matters, shows that it has been falling. Aptos now has a TVL of 4.26 million APT, which is lower than its all-time high of over 17.6 million APT.

Other Aptos metrics also send a disturbing picture of the network. For example, according to AptosScan, the number of transactions in the network has been in a strong downward trend and is now hovering near its all-time low. Aptos handled 612,715 transactions on January 17, lower than its all-time high of over 2 million.

Address growth in the ecosystem has also been falling after it peaked at over 800k last year. On January 17, Aptos had about 9.500 addresses. The number of transaction fees and address growth have also lagged. 

Couple all this with the network’s poor tokenomics. Its documents showed that most of these tokens are held by insiders. As such, there are significant concerns about the network.

Aptos price prediction

APT/USD chart by TradingView

The simple reason why Aptos price has been rising is simply that it has been rising. When a coin is rising, it leads to FOMO among traders. Turning to the daily chart, we see that the APT price has been in a strong bullish trend in the past few months. 

Most recently, it has formed a descending channel that is shown in black. This price is at the upper side of this descending channel. This channel has a close resemblance to a bullish flag pattern. It is also being supported by the 25-day and 50-day MA. Therefore, Aptos will likely have a bullish breakout in the coming weeks.

How to buy Aptos

The post Aptos price forms a bullish flag amid on-chain activity woes appeared first on CoinJournal.