Kategorie: Crypto Analysis

VeChain announced today that its long-awaited VIP-220 feature has finally gone live. The feature is seen as a huge step in VeChain’s effort to achieve the Proof of Authority 2.0 consensus. It is a step closer to making the chain more efficient and less costly compared to other competitors. Here are some of the highlights:

• VIP-220 began testing on a private test net today

• The news did not have any big impact on the price, with VET seeing a modest 5% rise.

• But VIP-220 is huge for the long-term success of VeChain.

Data Source: TradingView 

What will VIP-220 do for VeChain?

VIP-220 is the last part of VeChain’s proof of Authority 2.0 consensus. So far, the first two components which include verified randomness or VRF have already been launched. VeChain is simply getting closer to deploying an elaborate PoA with a small number of validators. 

PoA is seen as an innovative way to scale blockchains, reduce fees, and create a green and energy-efficient decentralized future. Also, VeChain is expected to integrate advanced data security tools to ensure user info is protected. With PoA, the mass adoption of blockchain technology could finally become a reality. 

This will put the chain and its native token VET on the cusp of great success. For now, this news hasn’t really moved VET’s price that much. The coin was in fact up by just 5% at press time. But from a long-term point of view, it’s definitely worth noting.

Why VeChain is not surging

The on-chain news we have seen today should be enough to get VeChain to surge by at least 10%. However, this has not happened and is largely down to the uncertainty in the market. 

For now, many investors are just watching to see how the market will play out. Underlying fundamentals are taking a back seat in favor of overall sentiment.

The post VeChain surges modestly despite major chain update appeared first on CoinJournal.

Compound price jumped sharply on Tuesday as demand for DeFi tokens bounce back. The COMP token is trading at $42.75, which is about 65% above the lowest level during the weekend. Its market cap has risen to more than $290 million.

Why is Compound rising?

Compound is one of the biggest decentralized finance (DeFi) platforms in the world. According to DeFi Llama, the platform has a total value locked (TVL) of more than $2.87 billion, making it the 8th biggest platform in the industry.

Compound is primarily a lending protocol. People deposit their cryptocurrencies in the network and then earn interest from them. This interest comes from its lending services, meaning that it uses the same model as a bank.

Some of the most popular supply tokens in Compound are Aave, Basic Attention Token, Dai, Ether, and Compound Governance token. 

COMP is the governance token for the ecosystem. It simply allows people to take part in the platform’s governance by making decisions. For example, they can vote on whether to join another chain like Solana or how to adjust risk in the network. According to its platform, the top addresses in its governance platform are Polychain Capital, Bain Capital Ventures, a16z, and Gauntlet. 

Learn more on how to trade crypto.

The most recent approved vote was on new collateral assets lik cUSDC, cLINK, cSUSHI, cAAVE, and cYFI. The goal was to adjust the weighting and set parameters to maintain the overall risk of the protocol during the current market sell-off.

The Compound price is rising after Celsius wired $10 million to the platform. The company, which is now going through an existential crisis, made the payment as it tries to stage a comeback. It has already suspended payments to its customers as it works with restructuring experts.

Compound price prediction

The daily chart shows that the COMP price has been in a strong bullish trend in the past three straight days as its demand rises. It is now trading at $43.8, which is much higher than its lowest level last week. It remains below the 25-day and 50-day moving averages while the MACD is below the neutral point.

Therefore, at this stage, the Compound price is still bearish. This rebound could be part of a dead cat bounce, which is usually a temporary rebound after a strong decline. As such, the coin will likely move below $35 in the coming days.

The post Compound Price is in Recovery Mode. Is it a Buy? appeared first on CoinJournal.

Solana price has rallied in the past five days straight as investors continue buying the coin’s dip. The rally accelerated after a major news in its ecosystem. It is trading at $37, which is about 40% above its lowest level last week.

Magic Eden now valued at $1.6 billion

Solana is a leading blockchain project that is well-known for its speed and regular outages. In the past few months, the number of well-known applications in its network has risen. Some of the most popular projects in its ecosystem are Solend, Brave, StepN, and Audius.

Solana price is rising as investors cheer news that Magic Eden has raised $130 million even as the NFT winter continues. The company raised funds at a $1.6 billion valuation, tenfold from where it was in March this year. 

The raise comes at a time when there are worries about the NFT industry. Some analysts believe that they are a bubble that is slowly bursting. Besides, the total volume of all NFTs traded on a daily basis has declined sharply. Also, most people who bought NFTs are now sitting on large paper losses.

Magic Eden is disrupting the NFT industry by making it easy and cheap to buy various collections. Some of the most popular Solana NFTs in its ecosystem are Primates, Okay Bears, Yeah Tigers, and Udder Chaos among others. 

According to its website, the total volume of NFTs traded in its ecosystem were worth over 116k SOL, which is equivalent to ove $4.3 million. Magic Eden, which is already profitable, is expected to generate over $100 million in revenue this year.

Solana price is also rising after Solend DAO voted to liquidate some of the funds that are owned by a large whale. The concern is that the whale has deposited a small amount and takes millions more in loans. The protocol would have liquidated 20% of these funds if SOL price dropped to $22.30.

Solana price prediction

The daily chart shows that the Solana price has been crawling back in the past few days. It has managed to jump by more than 40%. The coin remains below the 25-day and 50-day moving averages while the MACD is slightly below the neutral level.

Therefore, while this recovery is welcome, there is a likelihood that the SOL price will resume the downward trend and retest last week’s low.

The post Solana Price Prediction as Magic Eden Valuation Soars to $1.6B appeared first on CoinJournal.

For a long time, Tether has been the biggest stablecoin in the market. Its market cap has sent it among the top 10 crypto assets. The importance of Tether also became even more underscored with the fall of Terra’s UST. But USDC, another major stablecoin is starting to make some progress. In fact, data shows that it could replace Tether despite growing skepticism about it. Here are some important points:

• The total supply of USDC has been growing month after month

• USDC has also seen a 1000% jump in its market cap since January

• USDT on the other hand saw the largest number of redemptions in May

Data Source: TradingView 

Is USDC taking over?

Well, so far, USDC has not yet reached the same level as Tether. But it seems the fall of UST has accelerated the adoption of USDC in a huge way. Take this for example. At the start of the year, USDC had a market cap of around $4.1 billion. Today, the stablecoin has a market cap of above $55 billion. It’s almost 10 times higher than it was. 

Also, as USDC reported this growth, USDT on the other hand saw record numbers of redemptions over the past few weeks. In fact, redemptions for USDT hit -$13 billion in May alone. Now, these signs indicate that investor appetite for USDC is rising. If this trend continues, the coin will be much closer to USDT by the end of the year.

Are there risks of USDC de-pegging?

When Terra’s UST de-pegged from the dollar, it was largely the beginning of the end for the stablecoin. There are also fears that other dollar-pegged coins including USDC could follow the same fate. 

However, right now we do not see any immediate risks of USDC de-pegging. As a matter of fact, even during the most difficult months in crypto, USDC has maintained its peg quite impressively.

The post USDC could replace Tether despite skeptics appeared first on CoinJournal.

Synthetix (SNX) is now the top-performing cryptocurrency over the past 254 hours. While some of these gains are largely linked to a broader recovery in the market, there is also some outstanding platform news. Synthetix is a major DeFi platform that brings traditional financial assets into the blockchain. Here are some highlights.

• SNX haD gained over 100% at some point in 24-hour intraday trading.

• The token did however pull back slightly but was still above 60% in the green.

• The surge came as news broke of massive growth in Synthetix’s daily trade volume.

Data Source: TradingView 

Synthetix: Why the surge will continue

As noted above, Synthetix reported some exciting on-chain news. Just recently, the platform introduced a new feature called ‘Atomic Swaps’. The feature helps to support derivative liquidity on Synthetix. Today, it was announced that Atomic Swap had seen a surge in trade volume. In fact, the platform is now able to process $200 million per day. 

This is one of the highest in the market. It beats other competitors like 1Inch and Curver by huge margins. It also seems that investors were quite upbeat about the news. SNX saw daily trade volume surge by nearly 1200%, suggesting that people are buying it in huge numbers.

The price also went up massively. At one point, SNX was higher by 100% before it retreated slightly. As the success of Atomic Swap continues, more investors will buy into SNX. The coin could see a bullish rally over the next 7 days, taking the price closer to $5.

Should you buy SNX

Well, the most important thing for any investor out there is the underlying fundamentals of a project. SNX has everything you would look for in a DeFi protocol, and it’s actually growing faster.

This is a good time to buy for a long-term investor. Also, short-term traders can still ride the Atomic Swap success this week and exit at around $5.

The post Synthetix has surged 100% in 24 hours – Here is why appeared first on CoinJournal.