Kategorie: Crypto News

Daily crypto headlines and news about bitcoin, ether, ripple, solana, altcoins, nft, market, business, analysis, nft, metaverse, minting and mining.
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Demand-supply dynamics will send Bitcoin and Ethereum prices higher: Bloomberg analyst

  • Mike McGlone says Bitcoin and Ethereum prices could rally higher given their respective supply-demand dynamics.

  • Bitcoin price has bounced from weekly lows of $33K to trade around $38,700, while Ethereum looks to strengthen above $2,600 after bouncing off lows of $2,200.

  • Crypto has traded in lockstep with stocks amid headwinds associated with US Federal Reserve’s monetary tightening.

Bloomberg commodity strategist Mike McGlone believes the prices of Bitcoin (BTC) and Ethereum (ETH), the top two cryptocurrencies by market cap today, are yet to peak.

According to the analyst, the two cryptocurrencies are still in “early adoption days.” 

His suggestion? The potential for future price gains remains high as networks see more growth.  

He points to the increasing demand for the digital assets versus their respective declining supply and believes these could be key metrics in projections of further price implications.

Bitcoin has a fixed supply of 21 million while Ethereum’s recent upgrades have seen millions of dollars worth of ETH burned as the network looks to a supply cut.

“By the rules of economics, a market with rising demand and declining supply will go up over time, suggesting that Bitcoin may be forming a bottom again around $30,000 as $60,000 resistance ages,” McGlone said in an earlier comment.

As for Ethereum, he says bullish fundamentals remain intact even as price continued to fluctuate in the $2,000-$4,000 range. The price range, he notes, has bulls buying the dip while sellers try to defend the $4K barrier.

McGlone, however, says that “something unlikely [that] reverses the proliferation of the nascent [crypto] technology” would be bad for crypto markets.

Bitcoin’s lockstep trading with stocks

The analyst’s projections come at a time when crypto markets have traded more in lockstep with traditional financial markets.

Since the start of the year, Bitcoin price has fallen and bounced in tandem with returns on Wall Street, with sentiment seemingly hinged on the US Federal Reserve’s hawkish tilt amid rising inflation.

Bitcoin price has bounced from this week’s low of $33,000 to highs of $38,780 on 30 January, its weekly gains currently at 8%. Ether (ETH) has also rebounded from seven-day lows of $2,200 to trade around $2,600.

The weekend uptick comes after similar recoveries on Wall Street on Friday. The Nasdaq closed 3% higher and the S&P 500 edged +2.4% to claw back some of the weekly losses.

The post Demand-supply dynamics will send Bitcoin and Ethereum prices higher: Bloomberg analyst appeared first on Coin Journal.

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Terra Luna suffers an 18% loss in 24hours

  • Terra Luna was born out of the need for market stability in the crypto market.
  • Luna’s value has seen an 18% decrease during the last 24 hours, a 50% drop from the all time high of $103.3400 on December 27.
  • Price expected to bottom out at around $25, close the day at $33.

Terra platform was created in 2018 by Daniel Shin and Do Kwon. The pair’s motivation was a novel digital currency which would fit the current economy’s elasticity. Terra was conceived to be both stable-priced and driven by growth to attain price stability through a variable money supply, powered by unchanging mining enticements.

Terra is an algorithmic-based, decentralized, and investor profit sharing style stablecoin-generating system and platform comprising several stablecoins ($UST) and the native token Luna. Currently, Terra is among the top 10 cryptocurrencies with impressive numbers.

It has a market cap of $19,286,510,087 24, hourly trading volume of $3,007,537,766, fully diluted valuation of $48,152,817,826, circulating supply of 400,527,133, total supply of 818,249,192 and maximum supply of 1,000,000,000.

Source – TradingView

The utility coins mint UST token and staked on the Luna supply. When a lot of the tokens are staked and it offsets the token supply, it doesn’t take a lot of people unstaking the market and turning it fearful causing more people to unstake.

Secondly, it is their savings account protocol that is paying 19.5% APY interest. The high payout rate has seen deposit amounts to the Anchor protocol increasing exponentially quicker than the amount that is being borrowed. This broadening rift negatively affects the yield reserves.

After having gone through an impulsive move up until mid-December 2021, a massive sell off saw a price drop before overshooting to the all-time high of $103.3400 on December 27. Since then the coin has started a correction trend with a 50%+ drop in price, 30% down in the last week, and an 18% drop within the last 24 hours expected to end the day at around $33.

Renowned traders are expecting the low price to max out at around $25 before an upward trend resumes. Increased borrowing, an injection of capital into yield reserves, and a rise in Bitcoin price are expected to see the price of Luna among other coins rise fueled by investor confidence.

The post Terra Luna suffers an 18% loss in 24hours appeared first on Coin Journal.

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Analysts point to concerns in DeFi as Bitcoin stalls below $40,000

  • S&P 500 has remained relatively unchanged.
  • Popsicle Finance’s ICE has plummeted 22% in the last 24 hours.

On Friday, Bitcoin (BTC) was trading at over $37,000, up around 3% in the previous 24 hours. In the meantime, after a tumultuous week, several alternative cryptocurrencies have begun to settle.

Analysts were also looking for signals of a probable stock market rebound, stimulating crypto purchases. Over the last week, the S&P 500 has remained relatively unchanged, contrasted to a 1% increase in BTC and a 3% loss in ETH.

Investors continue to retreat from US equities despite the predicted adjustment of the US Federal Reserve’s fiscal and monetary policy. More investors may begin to cut their risky asset holdings if the selling proceeds, with cryptocurrencies being the first to be impacted. As a result, a price comeback might be restricted in the near term.

Furthermore, given macroeconomic challenges, several experts are apprehensive about a repeat of 2017-2018.  However, it looks that winter has arrived, as seen by the over 40% dip in BTC from its all-time high of about $69,000 in November.

Is there a systemic danger in the crypto markets?

The current underperformance of various cryptocurrencies and decentralized finance (DeFi) tokens suggests that crypto markets are riskier. When there is a lot of volatility, some traders may switch to bitcoin, which is less dangerous in the crypto market.

Source – TradingView

The value of tokens linked to the Wonderland developer has plummeted

Popsicle Finance’s ICE has plummeted 22% in the last 24 hours, Wonderland’s TIME has down 15%, and Abracadabra’s SPELL has dropped 15%. Daniele Sestagalli’s coins have garnered a loyal following in previous months due to his community-focused orientation to crypto projects. At one point, his procedures were valued billions of dollars, but those riches have since evaporated.

The post Analysts point to concerns in DeFi as Bitcoin stalls below $40,000 appeared first on Coin Journal.

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Social Tokens: What are they & how to invest in them?

While social media allows creators, brands, and communities to set up space on various platforms, they are subjected to some form of control. However, this control can be eliminated using social tokens. Social tokens are cryptocurrencies created by individuals, brands, or communities to serve a relative purpose. Its issuer defines the uses and benefits of a social token.

 Although NFTs are non-fungible, they are in some ways social tokens. Personal token, social money, community coin, and creator coin are some of the names social token can be called. Unlike mainstream media, social tokens are built on the blockchain and are secure and decentralized.

 Most social tokens are launched on the Ethereum blockchain. The Solana blockchain is also witnessing some action however minute. Social tokens help creators develop symbiotic relationships with their fans. The fans contribute to their growth by investing in their works and supporting them while the creators know what their fans want and create it.

 The more popular an issuer is, the more valuable their token becomes. With social tokens, brands, communities, and individuals can monetize themselves without neglecting existing platforms. This would enable them to put their loyal fans in exclusive membership levels. While some social tokens come at a price, some issuers give them out for free.

 The number of community coins you hold will determine the kind of benefits you will enjoy. The contract that creates the social token allocates special access or royalties to holders depending on some conditions. As only a limited amount would be minted, the value of a social token will probably rise over time.

 There was a record of a kind of social tokens in 1997 when David Bowie created the Bowie Bonds. This served as securities for revenue from his earlier works. Today’s social tokens lack third-party involvement and exist on platforms where they can generate value. It is believed that social tokens have a place in the web 3.0 future, likewise in branding and marketing.

 Right now, there are three distinct types of social tokens, and they include:

1. Personal Tokens

 These are tokens that individuals like artists, athletes, content creators, and personalities issue to monetize themselves. If an artist like Beyonce created a personal token, it would be valuable instantly as her fans would drive the price up in an instant.

 Buying personal tokens allow fans to be eligible for unique benefits from creators. Examples of personal tokens are KSK, PLAY, TILT, CHOU, ALEX, ALLIE, and RAC. RAC is the personal token of André Allen Anjos, a Grammy-award-winning artiste launched on Zora. RAC can only be earned, and it is not for sale.

 KSK is Keisuke Honda’s personal token that gives fans access to his life on and off the pitch. Fans also enjoy private chats and social recognitions. Kevin Chou owns CHOU, ALLIE by Alliestrasza, TILT by Joe Pulizzi, and ALEX by Alex Masmej.

2. Community Token

 This is created by an organization or a group of people for their community of followers. This token grants holders access to the community, which may be on Slack, Telegram, or Discord. It is often governed by a decentralized autonomous organization (DAO). These communities are made private using tools like Mintgate, Unlock, or CollabLand.

 Community tokens can be used as incentives for members for activities. It can also be used to aid identity and cohesion. WHALE, FWB, CHERRY, and DONUT are popular examples of this token.

 WHALE is one of the biggest community tokens right now. WhaleShark created it on TryRoll. It is backed by a vault of unique NFT collections owned by WhaleShark. The WHALE community, which is on Discord, is the most active.

 Members have access to renting and purchasing selected NFTs from The Vault. They also participate in the governance of the community and DAO’s projects. FWB was one of the first community tokens. The community consists of people who are enthusiastic about the web 3.0 future.

 To join the FWB community on Discord, you need 400 FWB. DONUT is the token of an Ethereum-based subreddit.

3. Social Platform Tokens

 The token is issued by social platforms that support the creation and trading of social tokens. They allow holders to buy the social tokens created on their platforms. Examples include Rally, BitClout, Coinvise, and TryRoll.

 Rally tops the list of social tokens, having raised over $22 million in April 2021. It allows members to have their social tokens. It has low transaction fees and is easy to use. However, tokens created on it can only exist on it because it is a sidechain of the Ethereum network.

 TryRoll allows users social tokens on the ERC-20 standard. Although it is one of the most popular, it is not easy to use and has high transaction fees. BitClout resembles Twitter and the likes where users can react on tokens linked to celebrities. Users can also create their tokens.

 Socios.com is a platform that has enabled the creation of fan tokens by football clubs. This has been embraced by football clubs across Europe, including FC Barcelona, PSG, Juventus, SS Lazio, Manchester City, AS Roma, and many more.

 Of the three types, social platform tokens have great potential for long-term growth. However, community tokens will go a long way with a loyal community and a great model. Most issuers use social platforms to create their tokens. This helps them streamline their fanbase and create in a way that promotes connection and community development.

 Social tokens can be used to monetize a brand, individual, or community as they can be requested in exchange for merch, accessories, and so on. It can be used to grant fans access to exclusive benefits, including events, sales, content, and the likes. It can give fans governance rights and as a symbol of membership. Fans can even hold it as a form of investment.

 In creating a social token, some vest a part of the supply, peg it to an asset or create a liquidity mining program. As a fan who is looking to get your favorites token, there are some steps to take, including:

1. Do research on where the token is listed by checking it in Coingecko or CoinMarketCap.

2. Register on an exchange like Binance, KuCoin, and the likes.

3. Buy a relative cryptocurrency that you may need in performing the exchange using your fiat.

4. Transfer it to the exchange where the token is listed and perform the trade. Most social tokens are listed on the Uniswap exchange.

5. You can either store it on a software or hardware wallet after buying.

 You can get some social tokens using your card; it depends on where it is listed.

Ending Note

 As it is pegged to an individual, brand, or community, it poses a very high financial risk. There is also this risk of regulations being a new venture. However, this shouldn’t stop you from investing in your favorite artiste, brand, or community. You have to do proper research and deal wisely.

The post Social Tokens: What are they & how to invest in them? appeared first on Coin Journal.

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Top 10 Cryptocurrencies to Watch in 2022

The trend is your friend, but while you can ride it for so long, it’s often safe to know when to climb off the surfboard and get on another wave. This is the same for cryptocurrencies. 2021’s top rewarding cryptocurrencies might not make the best investments in 2022. And so, to avoid capsizing under the reverse currents of a cryptocurrency, we bring you the top 10 cryptocurrencies to watch in 2022.

Solana

Competitive Edge: Solid framework and build (faster transactions and minimal fees)

Solana is one of those altcoins that has continued to grow steadily through the years after its launch in April 2009. At inception, the project’s main focus was to leverage bitcoin’s permissionless nature to provide DeFi solutions like smart contracts, payment processing, peer-to-peer lending, and stable coins. Solana’s framework allows up to 710,000 transactions per second on a 1GB network without data partitioning. The proof-of-scale also allows users a high level of scalability and economies of scale with very high speed and very low transactional cost.

What does this mean for the investor? What does it mean for you? For one, Cryptocurrencies with solid builds have more usage and functionality among users, as such, the market cap will continue to grow as more investors turn to Solana. A growing market cap and steady rise in usage and adaptation mean more value to the network, and an appreciation in price based on functionality rather than random volatility spikes.

Solana may not be one to make a spectacular bull-run right now, but it’s definitely a cryptocurrency to keep your eyes on in 2022.

Chainlink

Competitive Edge: Most popular oracle on the market

Chainlink is an Ethereum token that powers the Chainlink decentralized oracle network. Unlike Ethereum and Bitcoin that runs completely on blockchain technology, Chainlink adopts oracles to help connect blockchain to external data sources, APIs, and payment systems, hence they gain access to different types of data that aren’t available on the blockchain.

App developers use Chainlink to make sure their apps work well. This only means that demand for Chainlink will continue to increase through the years as well as its LINK tokens. There is a bright future for Chainlink because more companies will continue to adapt Chainlink in their operation. Good news for investors as well. Since Chainlink has major industrial applications, it means that the growth of this cryptocurrency will be more organic and sustained than the rest of the more volatile cryptocurrencies.

Ripple (XRP)

Competitive Edge: Strong despite the crisis

You might not want to buy Ripple right now, but it’s definitely one to watch. Ripple all so recently lost its place as the third most valuable cryptocurrency, but that’s only because of the case with the SEC. Regardless of the suit that lasted all through 2021, Ripple still went on to gain 346% through the year.

If the coin can still manage to deliver such huge returns despite an ongoing court case, then imagine how well it can fair when the suit is over?

Ripple Labs believe the case will be resolved in 2022, so you might want to keep your eyes out for when this ends.

Binance Coin (BNB)

Competitive Edge: Coin of the largest exchange platform

Binance is by far the world’s largest crypto exchange platform, and its native coin BNB is one every investor must keep on their shortlist.

Binance users who hold BNB enjoy access to discounted trading fees and quick transactions. As Binance continues to grow, BNB will also continue to gain more popularity and increase in market cap.

Just in 2021, Binance coin, BNB, delivered more than 1300% returns to investors. There have been many conversations surrounding the fact that Binance could go public within the next year or two. Imagine how positively that would affect BNB.

If you don’t already own BNB, this might be the perfect time to consider adding it to your crypto investment portfolio.

Dogecoin (DOGE) 

Competitive Edge: Notorious Bull Run & Underdog of the Year

When it comes to cryptocurrency bubbles on a long streak, Dogecoin can be tagged as one of the world’s most successful cryptocurrencies. We all know how it started. Dogecoin was a meme coin that would come to yield more than 4050% in returns for believing investors.

Its rise began with influential celebrities like Elon Musk endorsing the asset on social media. Other celebrities that influenced the price include Snoop Dogg and Miley Cyrus. But can the meme coin forever last on vibes and cruise?

Rumor has it that DOGE is about to take a more serious twist in its use case. Yes, many investors use it for payment as of now, while others invest in it simply because of its reputation for remarkable growth potential. But one thing is certain: as its applications in payments and corporations increase, so will its value and your returns as an investor.

Bitcoin (BTC)

Competitive Edge: First and most valuable cryptocurrency

There’s no need to say too much about bitcoin. Its reputation precedes it. The first of its kind. King by value and market cap, you definitely want to put your eyes on the charts in 2022. Yes, there may be some dips and dips within those dips, but smart investors know that these falls provide huge potential for even greater rewards.

Ethereum

Competitive Edge: Use Case and 2.0 Upgrade

When it comes to value, Ethereum is unarguably the first runner-up. Its smart contract use case even makes it an indispensable asset among serious business-minded investors.

The Ethereum blockchain is currently in the middle of a huge upgrade that will make it faster and cheaper to use if successful. Ultimately, this means that even more investors will be attracted to Ethereum, and the value will increase.

Polygon

Competitive Edge: Integrating Ethereum Systems

Much like Ethereum, Polygon attempts to deal with many technical issues with Ethereum. By connecting Ethereum-compatible blockchain networks, the platform attempts to create Ethereum’s blockchain network while providing DeFi solutions. Definitely, one to watch in 2022.

Hedera (HBAR)

Competitive Edge: Application with Top Gun Institutions

Hedera is most renowned for its fast transaction and low cost. It is the most-used enterprise-grade public network powering the decentralized economy. The owners of Hedera are some of the biggest institutions in the world. This includes Alphabet (GOOGL), LG, Deutsche Telekom (DTEGY), and TATA Communications. If these massive institutions can find applications for Hedera, it shows that it’s here to stay, and many more organizations will be adopting HBAR over time.

Cardano (ADA)

Competitive Edge: Pioneer Ouroboros Concensus Algorithm

Cardano allows users to perform transactions and govern the Cardano blockchain network. Investors always appreciate a great degree of participation. With Cardano’s ledger and smart contracts use cases, you can expect that the influx of investors will continue to rise over the years, hence the value of ADA.

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