Kategorie: Crypto Analysis

Key Takeaways

• The total value locked in DeFi is close to levels last seen in March 2021 
• Ethereum is a commanding leader with 57% of the market share, but the overall market has shrunk drastically
• Sky-high yields proved unsustainable, while trad-fi interest rates have risen sharply, with investors reallocating capital as a result
• The reputational damage of crypto could also be hurting the sector

The total value locked in DeFi continues to sink, currently close to levels last seen in March 2021. From peaking in November 2021 at nearly $180 billion, it has fallen 80% to $37 billion. 

The stark dropoff last year comes as no surprise. Cryptocurrency as a whole was decimated – the Terra crisis alone in May 2022 is evident on the above chart as causing a massive drawdown. Beyond that, token prices collapsed, and hence TVL has come down drastically.

Yet, thus far in 2023, crypto prices have rebounded strongly. However, by repurposing the previous chart by now zooming on 2023, we can see that TVL has failed to rise.

Digging into the different blockchains, Ethereum remains the commanding market leader. It holds 57% of TVL across the space, with Tron a distant second with 13.9%. BNB Chain, launched by the embattled Binance, is third with 7.8%, with all other chains below 5%. 

Bearing in mind that Ethereum holds such a commanding lead in the space, we can dig into its TVL trend to see that the dropoff is not solely a result of falling token prices. 

For this, in the next chart we present the TVL both denominated in dollars and ETH. While dollar-denominated TVL is what we have focused on thus far in this piece, it is obviously affected by virtue of the fact that much of the TVL is held in crypto rather than fiat. Yet if we analyse the TVL in terms of ETH, which is down 55% since the start of 2022, we see that it is also down substantially. 

If we focus on 2023, we see that the TVL in terms of ETH has fallen less than in dollars, which makes sense given the converse has happened; the denominator has become larger (i.e. ETH has increased, up 35% this year). 

Therefore, the decline is not solely a result of falling prices. In reality, the entire crypto ecosystem is still seeing suppressed volume, liquidity and overall interest. DeFi’s momentum has also slowed, not helped by the fact that the sky-high yields which drew so many to the space during the pandemic have proved to be unsustainable (granted, this is mainly to do with elevated token prices).  

In conjunction with this last point, trad-fi yields have gone the opposite way – steeply up. T-bills are the safest investment in the world, guaranteed by the US government, and they now pay more than 5%. The decision about where to allocate one’s capital in this environment is vastly different to the same proposition when interest rates were at 0%. 

With a slew of ETF applications coming online in recent months, there is optimism that crypto could soon turn a corner. Exacerbating this is the expectation that, finally, we may be approaching the end of the tightening cycle. 

If/when the reversal comes, DeFi will be in a stronger position to persuade capital to return. The reality is that, right now, with interest rates above 5% and DeFi yields coming down so sharply, the risk-reward ratio is just not where it needs to be for prospective investors.

Moreover, the reputational damage sustained by crypto (even if that was unfair on DeFi, which some would even argue presented its true worth in comparison to CeFi firms like Celsius and BlockFi), may have dented its progress further again.

Times will change, but the capital outflow from DeFi is not surprising in this context. 

The post DeFi risk-reward remains out of whack, TVL continues to dip appeared first on CoinJournal.

• XRP Captain sees a massive rally in the altcoin ahead.
• The analyst explained why in a recent post on X.
• Ripple’s XRP is currently right below its 20-day MA.

XRP Captain – a notable crypto analyst and influencer sees a massive rally in the altcoin ahead even though it has been rather dull in recent weeks.

Why is he super bullish on Ripple’s XRP?

In July, a U.S. judge ruled in favour of Ripple in its lawsuit against the Securities & Exchange Commission (read more) – a huge win that has not been material in terms of price appreciation at least so far.

Still, XRP Captain is convinced that the altcoin could be worth as much as $130 by the end of 2024. Pointing to a symmetrical triangle pattern on its chart, the analyst recently wrote on X (formerly known as Twitter):

Can you imagine the magnitude when this breakout happens? I won’t be surprised if XRP hits $100 to $130 in next bull run.

XRP could soon break above its 20-day MA

Note that XRP broke out of an identical symmetrical triangle pattern in 2017 – the year in which it eventually printed an all-time high.

The altcoin is currently trading right below its 20-day MA at about $0.51. Breaking above that moving average may also deliver a near-term bullish signal and see capital flowing into the cryptocurrency.

The last time it reclaimed its 20- and 50-day MAs was in 2017 which, again, was a very strong year for XRP overall. SBI Remit also recently announced plans of expanding in South East Asia in collaboration with Ripple (find out more).

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• Edelman says Bitcoin could rise to $150,000 after the 2024 halving event.

• A strong Bitcoin could boost the sentiment for other cryptocurrencies like Chancer.

• Analysts expect up to a 1,000% price increase for Chancer.

After a prolonged bear crypto market, Bitcoin is expected to look up to the stars again. The upcoming halving event somewhere in April 2024 is expected to boost prices. Edelman Financial Services, which manages over $291 billion in assets, expects a fixed-figure price for BTC. The halving event could also be decisive for other cryptos like Chancer. 

Bitcoin could surpass $150,000 after 2024 halving

The prediction is according to Edelman founder Ric Edelman. The analyst expects the milestone to be reached a few months after the halving event. This is not the first time Bitcoin has seen such huge predictions from analysts.

Edelman believes the crypto sector is in a transformative phase. The stage is characterised by increasing maturity and behavioural shifts. According to Edelman, these market dynamics and regulatory actions are cleansing the sector. The cleansing will make digital assets more attractive to individual and institutional investors. 

Recent developments will also boost crypto. Edelman references Ripple’s win against SEC as a critical development that will boost crypto adoption. Also recently, Grayscale won a case against SEC, providing a further greenlight to the sector. Analysts led by JPMorgan believe the victory paves the way for the approval of the first spot Bitcoin ETF. 

But the 2024 halving event will be a bull catalyst for Bitcoin, per Edelman’s predictions. Edelman notes that Bitcoin’s halving is historically a bullish catalyst. He says the halving could unlock Bitcoin’s value, helping it to reach $150,000 by the summer of 2025.

Role of Chancer and how it benefits from a bullish Bitcoin

Chancer is a new blockchain platform that powers peer-to-peer betting. Investors can create a Chancer market and bet on any event they feel like on a secure blockchain platform. The users bet under their own rules and odds.

The proliferation of Chancer challenges traditional betting, where markets are established by bookmakers. By allowing investors to create P2P markets, Chancer enables more people to get involved in betting. There are rewards for creating Chancer markets and sharing the platform. 

Chancer will be the token investors can use to claim winnings on successful bets. They will also get paid using the token for creating the P2P markets or spreading Chancer news. The token will also be available for staking to investors seeking passive incomes. 

Initially, Chancer could benefit from speculation around its novel betting platform. As the token lists in Q3 2023, the price could start to gain value. 

Conversely, a bullish Bitcoin is always a positive catalyst for the rest of the crypto sector. As the world’s biggest cryptocurrency, Bitcoin demand boosts the sentiment for risky assets. Thus, the projected bull market by Edelman could help Chancer and increase the token’s value.

 Is Chancer a sustainable blockchain?

The prolonged bear market taught that only the strongest blockchains and projects survive. Once the bull market returns, investors could focus on valuable projects with solid use cases.

Betting is among the strongest and fastest-growing sectors. Online sports betting alone is expected to grow by 9.94% CAGR between 2023 and 2027. The growth rate will take the total market volume to $63.62 billion by 2027.

Chancer will capitalise on the strengths of the entire betting sector to grow. It will also introduce new betting events that will see it capture a considerable market. This means it could be a sustainable project to deliver consistently to investors.

What is the 2023 price potential of Chancer?

Chancer will be listed in Q3 2023 amid huge expectations. 2023 might be a volatile year for the token due to intense speculations. 

Analysts have earmarked a 1,000% price increase, although this could prove overambitious in the short term. A triple-digit price increase in 2023 could be more realistic, with more than 10x in the future.

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• JPMorgan is said to be launching a blockchain-powered token to revolutionise its global payments.

• Shiba Memu takes on meme tokens with an AI application amid the hunt for new crypto use cases.

• Shiba Memu could increase by up to 50x, given the historic price moves of meme cryptocurrencies.

The hunt for new solutions in a blockchain-based economy is on. JPMorgan is the latest to consider a blockchain-based deposit token for global payments. Meanwhile, Shiba Memu is bringing a new marketing perspective through blockchain. Investors have bought over $2.58 million worth of Shiba Memu in a fast-occurring presale. 

JPMorgan to launch a payments token

Big banks are never shy of opportunities when they knock. In its latest indication of blockchain and cryptocurrency forays, JPMorgan seeks a payment token. The latest reports indicate that the banking giant has laid the infrastructure for the new payment token. 

The bank expects to accelerate international settlements and payments with the blockchain solution. This is not the first time JPMorgan has let its blockchain and cryptocurrency pursuits known.

In June, the company said it had processed about $300 billion via JPM Coin launched in 2019. With the new token, JPMorgan expects to process instant transactions, leveraging blockchain technology. The token is also expected to reduce transaction costs by eliminating clearinghouses and counterpart banks.

JPMorgan’s continued push in crypto underlines a sector with immense and unexploited opportunities. Big banks are entering the space, which is expected to dominate future payments. Shiba Memu comes into the scene with an innovative use case that fills another unexploited opportunity.

Shiba Memu AI marketing angle

Shiba Memu enters the meme token space with its own vibe – an AI application. To put it better, Shiba Memu will leverage artificial intelligence to self-market and fight off rivals. 

AI is taking a more critical role now than ever, making Shiba Memu unique. AI lets Shiba Memu research and find the most creative ideas in marketing. Interestingly, AI can work all the time and source information far and beyond. With this capability, the team expects Shiba Memu to achieve more than 100 marketing agencies combined. 

Shiba Memu won’t keep all the marketing information to itself. Its community can interact with the AI. Users can ask the AI questions, give feedback, and get informed on marketing strategies. The engagement is one of its kind, making Shiba Memu a truly user-led platform. That means Shiba Memu won’t crave attention like its meme peers, which rely on influencers.

Is Shiba Memu a good investment?

What investors consider a good investment is quite a subjective topic. However, Shiba Memu could be suitable for investors looking for tokens that can quickly gain value. 

From past price action, meme cryptocurrencies have been the biggest earners, with split-second gains. Shiba Memu carries a similar potential when listed. It means by capitalising on initial price movements, investors can return big. 

A potential worry for most investors is the high volatility of meme cryptocurrencies. Sharp drawdowns accompany huge price gains. Although such a risk cannot be wished away for Shiba Memu, its AI angle makes it a sustainable project. Over time, the value of Shiba Memu could stabilise and deliver consistent gains to long-term investors. 

Shiba Memu presale and price prediction

Shiba Memu launched with a unique presale. The token’s price increases every day at 6 PM GMT. It means the investment increases every 24 hours for early investors. 

On price prediction, meme cryptocurrencies always surprise markets. These cryptocurrencies attract a lot of online chatter, which drives demand, suddenly pushing prices higher. Over the past months, new meme tokens have risen by up to 10,000%. This doesn’t mean that Shiba Memu will see such margins. It just shows how much potential the token carries once listed. 

Given the above, Shiba Memu could rise 10x, 20x, or even 50x when listed. The overwhelming presale suggests the likely price surge.

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