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Is Bitcoin (BTC) a buy after its stable position in 2021?

  • The massive BTC adoption helped it to correlate with the global financial market.

  • BTC had a stable year with a 138% price change from yearly highest and lowest points.

  • Several technical indicators project that this flagship coin’s price may exceed $100k soon.

Bitcoin (BTC/USD) is the king of cryptocurrencies that made a new all-time high at the $69,000.00 level on 10 November 2021. Later on, the price showed a corrective momentum where the current price stands at $50,775.26.

Bitcoin became a less volatile asset than before

Bitcoin passed a less volatile year where investors had a lot of opportunities to open or exit their positions throughout the year. In the last 52 weeks, the price rose more than 70% and had a stable position after breaching 2017’s all-time high of $20,000.

The reason behind the price stability in Bitcoin is El Salvators’ acceptance as a payment method besides Elon Musk’s positive sentiment. Moreover, the Bitcoin ETFs grabbed institutional investors’ attention, increasing the price volatility after a 25% loss after El Salvator’s acceptance.

Should you buy Bitcoin (BTC)?

Besides making multiple swing highs, Bitcoin bulls had a strong position above the $30,000 level. However, after reaching the all-time high level, the price crashed lower with a 37% loss and formed an exhaustion candle in the daily chart. Still, the year gain to date is above 80%, where the current price moved above the dynamic 20 EMA on the daily chart.

Source – TradingView

The price held its momentum for multiple days above the dynamic 20 EMA while the MACD Histogram turned bullish. In this context, we expect the price to move higher where the primary target would be the $53,628.80 level. Conversely, a decisive break below the $59,500 intraday event-level would lower the price towards the $45,419.00 area.

The post Is Bitcoin (BTC) a buy after its stable position in 2021? appeared first on Coin Journal.

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Is Ethereum (ETH) a buy after the gas fees are down?

  • Ethereum gas fees are 62% lower than the previous month

  • Web3 and NFTs drive Ethereum Outperformance

  • Ethereum “Protocol 2.0” is in focus

Ethereum (ETH/USD) is the native token of the Ethereum blockchain that has reached an all-time high at the $4868.00 level in November 2021. Since then, the price showed a corrective momentum where the current price stands at $4060.38.

Ethereum bullish factors: what investors should know

Ethereum transfer was more expensive a month ago, where users had to pay $22.80 or 0.0056 ETH per transaction. However, things have changed now, and the current transaction fee is $23.34, which is more than 62% lower than a month ago.

Ethereum investors passed a profitable year in 2021 that came from the massive surge in Web3 and NFTs. According to some crypto enthusiasts, Ethereum is a technology that has a more stable database than Bitcoin. The current key price driver for Ethereum is the upcoming “Protocol 2.0,” where the current energy-intensive “proof of word” will be shifted to the Proof of stake method. As a result, the Ethereum mining energy consumption might fall by 99% that would massively adopt users with a future price appreciation.

Should you buy Ethereum (ETH)?

Ethereum showed a decent return in 2021, where the price displayed a 400% gain compared to its rival Bitcoin, which barely provided an 80% YTD return. Moreover, the most recent price swing has a bullish break of structure at the 4060.00 level, a significant buying factor of the ETH/USDT price.

Source – TradingView

Although the current price is facing a dynamic resistance from the 20 EMA, we expect intense buying pressure in the coming days. In that case, any bullish rejection in the daily chart from 3662.52 support of 2927.68- 2646.52 demand zone has a higher possibility of extending the current bullish vibe above the 5000.00 psychological level.

The post Is Ethereum (ETH) a buy after the gas fees are down? appeared first on Coin Journal.

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Polygon co-founder on DeFi applications, NFTs on the Ethereum layer 2 solution

  • All the popular dApps on Ethereum are now using Polygon, says co-founder Sandeep Nailwal

  • The latest Ethereum-based dApp to look to the layer-2 solution is the leading decentralised exchange platform Uniswap

  • He says sharding when it finally happens, might not help Ethereum scale “enough” to navigate the current challenges of a slow network and high gas prices.

Polygon co-founder Sandeep Nailwal has said that all the major decentralised finance (DeFi) applications built on the Ethereum network now use the layer two protocol, with Uniswap the latest to signal that move.

Nailwal made the comments during a recent interview, noting that the Polygon network offers the scalability and low gas fees that developers and users are after as Ethereum continues to see network limitations related to congestion and high gas fees.

Asked to comment about some of the DeFi projects currently using the Polygon network, Nailwal noted that “all” the Ethereum-based DeFi protocols were using Polygon. He said that even Uniswap, the leading decentralised exchange built on Ethereum has its community looking to launch on Polygon blockchain.

He pointed out that as for the popular dApps; the major ones currently using the layer-two solution are Uniswap (UNI), Aave (AAVE), and Decentraland (MANA).  According to him, about $5 billion to $6 billion is currently the total value locked (TVL) across all the bridges using the blockchain.

Polygon fees is “a fraction of a penny”

Nailwal also compared gas fees and network transaction speeds between Polygon and Ethereum. Users pay 0.001 MATIC in gas fees on Polygon, a “fraction of a penny” compared to the huge gas prices that users often have to bear while using the Ethereum network, he explained.

Of the issue of network speed, he noted that Polygon’s block time is around 2.3 seconds, compared to Ethereum’s 15 seconds. In his view, even ETH 2.0 might not immediately help solve the problem of scalability.

He believes that Ethereum’s switch to a proof-of-stake (PoS) network will not change much in the way of transactions per second (TPS). He sees the leading smart contract’s speed probably go from 13 to 20 TPS.

Will sharding scale Ethereum “enough”

According to the Polygon co-founder, that’s unlikely. He notes that ETH 2.0 might succeed in increasing throughput to 20 transactions per second, still too low and that wouldn’t change that much even when sharding finally happens in three to five years.

A quick calculation of a projected 64 shards and 20 TPS for each would only bring the speed to 1,280 transactions per second, he opined.

“That’s still not enough for the entire world,” he added during the interview.

Dolce and Gabbana, Elon Musk and Jack Dorsey minted NFTs on Polygon

Nailwal also talked about non-fungible tokens (NFTs), saying that six to seven out of 10 gaming companies are building NFTs on the network. So far, the most notable drop being that of Dolce and Gabbana, which minted and sold one for $7 million.

Other recognisable NFTs minted on the blockchain include those by Tesla CEO Elon Musk, Block’s Jack Dorsey (the former Twitter CEO minted an NFT of his very first tweet) and billionaire investor Mark Cuban.

The post Polygon co-founder on DeFi applications, NFTs on the Ethereum layer 2 solution appeared first on Coin Journal.

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Matrixport co-founder says crypto has potential to grow to a $10+ trillion market

  • Jihan Wu says the future of crypto could include exponential growth to a market worth over $10 trillion.

  • Bitcoin’s rally to an all-time high above $69,000 led the crypto market to a landmark breakout to $3 trillion in market cap in November.

  • Wu says even if 95% of projects fail, the 5% that thrive will have the potential to hit a valuation in the tens of trillions of dollars.

A decade of growth since the launch of Bitcoin has seen many market observers say that broader acceptance and wider institutional adoption means cryptocurrencies are here to stay.

This is also the view of Jihan Wu, a former CEO of Bitcoin mining company Bitmain, and currently the co-founder and chairman of Singapore-based financial services firm Matrixport. He is also the co-founder of Bitdeer Technologies, a crypto mining firm also based in Singapore.

Wu lays bare his long-term assessment of the market in a recent interview with Forbes, stating that even if most of the digital assets were to crash and disappear, those that survive will likely experience massive growth.

Crypto’s volatile yes, but…

The global cryptocurrency market capitalisation recently topped the $3 trillion mark as Bitcoin and other digital assets rallied to new all-time highs. However, the total market cap has since dipped, with Bitcoin losing over 30% of its value in a month as it dropped from highs of $69,000 to test support below $45,000.

Despite the price collapse, Wu is optimistic long term and sees the trajectory continues to be that of growth. He notes in the interview that volatility is part of the crypto market today, but as the market matures, long-term gains will dwarf any of the wild price fluctuations seen over the years.

“Even if 95% of today’s coins lose all their value and disappear, the remaining 5% will grow massively,” the crypto billionaire told Forbes during the interview.

He says the belief that cryptocurrency and blockchain technology have an enormous potential for growth saw him and Matrixport’s other co-founder John Ge Yuesheng launch the company in early 2019.

He and Ge Yuesheng were at the time convinced that despite the bearish outlook for Bitcoin and other digital assets, the industry would see “rapid growth in the future.” 

The two think it’s possible for the industry to grow to “tens of trillions of dollars.”

Wu calls DeFi a “breathtaking” innovation

Among sectors Wu is bullish about is the decentralised finance (DeFi) space, which he says is a “breathtaking” innovation.

In 2021, you could also add non-fungible tokens (NFTs) to that list of crypto innovations to spike interest across the market. And Wu believes that such growth points to the direction crypto is taking. He sees most crypto users being ‘here to stay’.

In his opinion, what crypto investors need most now are “advanced products” tailored towards meeting investment and wealth management goals. 

On regulatory uncertainty

Over the years, regulatory uncertainty has been, and remains, one of the biggest issues in the crypto market. Various crypto market executives and experts have called on authorities to seek regulations that support, not kill innovation.

Wu holds a similar view, but the former Bitmain chief says cryptocurrencies are unlike traditional finance systems and that the limitations that weigh down the legacy systems are unlikely to hamper crypto’s development.

The post Matrixport co-founder says crypto has potential to grow to a $10+ trillion market appeared first on Coin Journal.