Schlagwort: blockchain analysis

• Avalanche’s token has been in a strong bearish trend in the past few months.

• The token will remain under pressure ahead and after the latest token unlock.

Avalanche price came under intense pressure ahead of the token unlock event scheduled for Friday. The AVAX token was trading at $10 on Friday, a few points above this week’s low of $9.78. It has dropped by more than 37% from the highest level in July.

AVAX token unlocks

Avalanche, the Ethereum alternative, will be in the spotlight on Friday as the developers are set to unlock millions of tokens to the market. Precisely, they are set to unlock more than 9.7 million tokens that are valued at over $95 million. These tokens represent about 2% of the network.

Token unlocks are popular features in the crypto industry. They happen in line with a network’s tokenomics, which set aside the vesting process. In Avalanche’s case, the vesting process will end in July 2030.

According to TokenUnlocks, there are 380 million tokens that are currently in circulation with 339 million being locked. As a result, the current market cap of all unlocked AVAX tokens stands at $3.45 billion while the diluted cap is over $7.2 billion. Therefore, AVAX holders can anticipate more dilutions in the coming years.

The challenge for Avalanche is that its ecosystem is not growing. For example, data compiled by DeFi Llama shows that the Avalanche ecosystem has over 151 million in total value locked (TVL). At its peak, it had over 362 million tokens in the market. 

In dollar terms, Avalanche has a TVL of about $1 billion, with the biggest dApps being Wonderland, AAVE, Benqi, GMX, and Trader Joe. 

Avalanche price forecast

The 4H chart shows that the AVAX crypto price has been in a strong bearish trend in the past few months. It recently moved below the important support level at $12.10, the lowest level on June 18th.

Avalanche price has dropped below the 50-day moving average. It is now hovering at the lowest swing on June 10th. The Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the oversold level.

Therefore, the outlook for the token is bearish, with the next psychological level to watch being $8. The stop-loss of this trade will be at $10.50.

How to buy Avalanche

The post Avalanche price prediction: Brace for more AVAX dilution appeared first on CoinJournal.

Kay Takeaways

• 1 in every 127 Bitcoins are owned by MicroStrategy
• The stock price tracks the price of Bitcoin remarkably well
• Despite price correlation, there are additional risks to the stock, while it violates the “not your keys, not your coins” mantra
• For investors unable to purchase Bitcoin directly, however, it does provide an alternative means of Bitcoin exposure
• With 0.79% of the circulating supply owned by the company, it also throws up concern about a centralisation of wealth

Google “MicroStrategy” and Wikipedia will tell you that it is “an American company that provides business intelligence, mobile software, and cloud-based services”.That may technically be true, but in reality it has become a Bitcoin investment vehicle. 

MicroStrategy, under the borderline-religious leadership of Michael Saylor, currently owns 152,800 Bitcoin. That is 0.79% of the circulating supply; in other words, 1 in every 127 Bitcoin is now owned by MicroStrategy. When omitting the portion of the Bitcoin supply which is lost (for which estimates generally come in at about 1.5 million), the company owns 1 in every 118 coins.

What’s more, since MicroStrategy’s first Bitcoin purchase on August 8th, 2020, there have been just over one million coins created. This means MicroStrategy’s stash equates to 15.3% of the total coins created since they started buying. 

Clearly, no matter what way you swing it, MicroStrategy own an enormous stash of Bitcoin. Here, we will assess how it affects their stock price.

https://twitter.com/saylor/status/1686468084574412800

Performance vs Bitcoin

The place to start is, unsurprisingly, MicroStrategy’s correlation with the Bitcoin price. On the next chart, we can see that the correlation has picked up markedly since the company began buying up the supply. Bar a brief dip in August last year, the relationship has been extremely strong since late 2021. 

This is not surprising when one looks at the numbers. MicroStrategy has averaged $497 million of revenue over the last three years, with an average EBITDA of $50 million. And yet these numbers are dwarfed by its Bitcoin supplies – it owns approximately $4 billion worth of Bitcoin at the time of writing, purchased for $4.53 billion.

The market cap of the company is only marginally more than the value of its Bitcoin, coming in at $4.7 billion. 

If we plot the performance of the company against the performance of Bitcoin since the first purchase in August 2020, both assets have trodden an extremely similar path.

There are currently 11.834 million shares of MicroStrategy outstanding. With the company holding 152,800 Bitcoin, that implies that each share equates to owning 0.0129 Bitcoin. With the current share price of $329, this means that a $1000 investment in MicroStrategy nets you 0.0392 Bitcoin. 

In contrast, a $1000 investment in Bitcoin directly at the market price of $26,100 would net you 0.0383 Bitcoin.

Obviously, this is simplistic and looks beyond a whole host of variables on the MicroStrategy side (not to mention the extreme volatility of both assets). Bitcoin enthusiasts will also decry the fact that purchasing MicroStrategy stock is nowhere near the same thing as buying and holding your own Bitcoin – “not your keys, not your coins”.  

And they would be absolutely correct. These are completely different investment vehicles. However, with no spot Bitcoin ETF currently approved in the US, many institutions and other large entities have difficulty investing in the cryptocurrency for regulatory and compliance reasons. If an institution seeks exposure to Bitcoin, therefore, it is often required to pursue alternative options.

MicroStrategy may not be the real thing, and carries plenty of risks which direct purchases of Bitcoin do not. However, in terms of price exposure alone, it is a viable backup option.

Companies that are locked out of purchasing Bitcoin for the aforementioned reasons, but gained exposure through MicroStrategy, have benefitted well. The next chart plots its performance against the Nasdaq – it displays similar outperformance to what we have seen from Bitcoin over the time period. 

Centralisation

While this is all well and good, it would be remiss not to mention the fact that there do exist downsides here for the Bitcoin ecosystem. Sure, offering exposure to investors who, at least over the last couple of years, have not been in a position to purchase Bitcoin directly is a good thing. 

On the flipside, however, this is an asset built upon the principles of decentralisation. We are now in a position where one company owns an enormous chink of the supply, and does not seem as if it will curtail its buying anytime soon, as its stash creeps close and closer to 1%. 

Speaking of 1%, most of the world’s wealth is already in the hands of the top 1%. While Bitcoin often paints a romantic image of a democratisation of wealth, and a means of pulling oneself out of financial tyranny, the reality is that there will also be a 1% who own a massive slice of the pie. It will be no different to any other asset in this regard. 

We put out a piece in March assessing the wealth breakdown of Bitcoin, mentioning a study by the National Bureau of Economic Research outlining that the top 10,000 Bitcoin investors control one-third of the total supply. 

The anonymous Satoshi Nakamoto owns an estimated 1 million coins alone (or as a group, depending on what you believe regarding his/her/their identity), equivalent to over 5% of the supply. Nakamoto’s large holdings were even mentioned in Coinbase’s S-1 filing when it went public in 2021 as a source of risk to the business. 

“The identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi’s Bitcoins” was outlined as a risk to Bitcoin and, by extension, Coinbase’s business. 

While speculating on Nakamoto’s identity is a fool’s game, and these coins could easily be lost forever, it is easy to see how Coinbase listed this as a risk in its filing. The fact is that one entity or person holds 5.2% of the supply, and nobody has any idea who. 

We know who MicroStrategy are, and Michael Saylor is often lauded in the space for being a visionary (not to mention the fact the tidal wave of buying pressure serves to help boost the price now and again). But for an asset built upon the concept of decentralisation, it does provide pause for thought. 

Having said that, Bitcoin does remain the closest thing to decentralisation that the world has right now in the monetary sphere, even if it is not perfect. There will always be a 1%, because that is how life works – and Bitcoin is no different in this regard. 

The post How correlated is MicroStrategy stock to the Bitcoin price? appeared first on CoinJournal.

• Maker’s MKR price has staged a strong recovery in the past few days.

• Spark Protocol is seeing strong inflows because of its higher rates.

Maker (MKR) crypto price jumped on Thursday as investors cheered the rising demand for the Dai stablecoin. The coin jumped to a high of $1,100, which was much higher than last Friday’s low of $978. Its recovery also coincided with the strong comeback of tech stocks following Nvidia’s earnings.

Dai demand jumps

MakerDAO is one of the biggest players in the blockchain industry. Data compiled by DeFi Llama lists its total value locked (TVL) at over $5.12 billion, making it the third DeFi player after Lido DAO and AAVE.

MakerDAO is known for the Dai stablecoin, the 12th-biggest cryptocurrency and the third-biggest stablecoin in the world.  Dai’s market cap has jumped by more than $1 billion in the past few weeks, giving support to MKR’s token.

Dai is thriving thanks to Spark Protocol, a rival to AAVE that was launched by MakerDAO a few months ago. Spark is a DeFi protocol that makes it possible for people to earn returns by simply depositing cryptocurrencies like ETH and Dai.

Spark also allows people to borrow Dai against their collateral and swap other coins without slippage. Data shows that depositors are earning a return of as much as 8%. Like AAVE, it generates these funds by lending in the platform. Spark has grown so much such that its total value locked has jumped to over $578 million.

MakerDAO and other DeFi protocols are facing the challenge of high-interest rates since money market funds are now generating a higher rate, thanks to the relatively higher interest rates by the Federal Reserve. Some funds are returning as high as 6%.

Maker price forecast

The 4H chart shows that the MKR price dropped sharply last week as cryptocurrencies plunged. It dropped to the important support level at $978. The coin still remains below the 50-day moving average and is slightly below the 50% Fibonacci Retracement level.

Therefore, there is a likelihood that the MKR price will likely continue rising as buyers target the key resistance level at $1,150. A drop below the support at $1,050 will invalidate the bullish view.

How to buy Maker

The post Maker (MKR) price regains momentum as Spark Protocol inflows rise appeared first on CoinJournal.

Key takeaways

• The broader crypto market rallied over the last 24 hours, but Shiba Inu continues to underperform.

• Shiba Memu’s stage two presale has now topped the $2.2 million mark.

The cryptocurrency market experienced a price cash last week that saw Bitcoin drop to the sub $25k level. Since then, the market has been underperforming.

However, the market slightly recovered yesterday, with Bitcoin currently trading just around $26,500 per coin. Despite the market’s bearish trend, Shiba Memu’s presale continues to progress excellently. 

Shiba Inu stays around $0.000008

SHIB, the native token of the Shiba Inu ecosystem, has been one of the worst performers so far this week. While the crypto market rallied on Wednesday, SHIB continued its downward trend.

SHIB has lost less than 1% of its value in the last 24 hours and is currently trading at $0.00000827 per coin. The bearish trend came following Shiba Inu’s botched launch of Shibarium last week. 

The team said they would be reopening the Shibarium network to the public soon. If that happens and there are no issues, SHIB could rally higher and reach the $0.000009 level in the near term. 

What is Shiba Memu?

Shiba Memu is a cryptocurrency project that is currently in its presale stage. The project wants to combine the powers of AI and blockchain technology to positively impact the marketing industry. 

With Shiba Memu, it would become easier for people and organisations to create content and roll out marketing campaigns. 

According to their whitepaper, Shiba Memu would be designed to handle the tasks of several marketing agencies. Shiba Memu will always be active and will be available to consume content and generate better content marketing strategies and campaigns for companies. 

Shiba Memu is launching as a meme token thanks to the recent surge in the status of meme projects. Within the space of two years, the market cap of meme coins grew from practically $0 in 2020 to $20 billion in 2022. 

What makes Shiba Memu different from other meme projects is that it has a real-world utility. Shiba Memu can be considered a self-sufficient marketing tool powered by AI technology.

Shiba Memu’s stage two presale hits $2.2M

The recent market turbulence didn’t affect Shiba Memu as its stage two presale continues to hit new highs. The presale has been around for nearly two months now, and the team has raised more than $2.2 million in the second stage. 

With more than 70 million tokens sold, the second presale stage could be concluded in the coming days. The team intends to use the funds generated from the presale to develop some of its products and services. 

Most of the funds would be pushed towards developing the Shiba Memu AI technology. Shiba Memu will use AI technology to provide exciting marketing services to its users. 

Shiba Memu users will also be able to interact with the AI, provide feedback, make suggestions, and ask questions. Hence making it an exciting AI-powered marketing platform. 

Click here to find out more about Shiba Memu’s presale event.

Shiba Memu price prediction

Shiba Memu is still in its presale stage, and we can’t accurately predict its price movement in the short term. At the moment, 1 SHMU = 0.022375 USDT.

According to the team, SHMU’s price increases every day at 6 pm GMT. In a few hours, the token will go for 0.022600 USDT. The token began trading at $0.011125 when the presale began and will trade at $0.0244 when the presale ends. Investors can purchase SHMU tokens using Ethereum, USDT, BNB and BUSD

Should you buy Shiba Memu now?

Investing in a project during its presale is usually the best decision as it allows you to get into projects earlier than other investors. The ROI generated during that period usually exceeds what other investors make. 

Shiba Memu is an exciting project that will use AI technology and blockchain. If the project gains the necessary adoption, SHMU’s price could rally higher over the next few months and years. 

The performance of the broader cryptocurrency market could also determine SHMU’s price. A bullish run in the medium term could see SHMU’s price soar higher. 

The post Shiba Inu price outlook as Shiba Memu’s presale tops $2.2M appeared first on CoinJournal.

• Chancer introduces blockchain-based betting based on the P2P model

• Chancer could benefit from a strong and growing betting market, valued at 81B in 2022

• The price potential for Chancer is huge and could surpass 1,000% in 2024 and beyond

Have you ever thought of how much potential blockchain-based betting has? Well, the traditional global sports betting market alone was valued at $81.03 billion in 2022. The sector growth is estimated at 9.50% up to 2030. This projection has inspired blockchain-based betting, with Chancer being its firstcomer. Essentially, blockchain is one of the most rapidly growing sectors. Chancer has the potential to beat the growth rate in traditional betting under its novel model.

Chancer’s presale and what it means for investors

Ahead of the launch of its decentralised betting platform, Chancer is welcoming investors. The project launched a presale of the token, $CHANCER, which has seen huge demand. Over $1.65 million has been raised in two months as investors bet big on blockchain betting. 

Investors see the Chancer token as an opportunity for 2023 and beyond. CHANCER will be used to transfer value through the betting platform. Should Chancer become mainstream in betting, the demand and use of the token will increase. This could see the token skyrocket in value and generate sustainable gains in the long term.

Chancer also carries a rare opportunity for creators. Users can create and customise their own betting games and be rewarded. The attribute embodies a peer-to-peer model, where users build Chancer markets on predictive events. This gives Chancer more than a betting use case and makes the platform attractive to investors. Besides, the token can be staked for investors to earn passive income.

How does Chancer work?

Chancer functions as a P2P model, where users relate directly to each other. In P2P betting, users come up with betting events and invite others (peers) to bet for and against them. Users can create a Chancer market for any event, expanding the scope of betting. For example, you can bet about an upcoming marathon, election, or even weather conditions.

Next, users set rules for their betting market. They also decide on the odds of successful winning in the betting event. The flexibility means users are open to what they can do, overcoming restrictions in traditional betting. 

Based on the outcomes of the betting event, users can claim winnings using the Chancer token. The P2P relationship is secured via a decentralised Chancer ecosystem. The system guarantees transparency and trust for bettors and investors.

Besides, Chancer features live streaming using Google-powered WebRTC capabilities. The features allow the community to engage, communicate, and watch live gameplay activities.

Chancer prediction and market potential

It might be too early to judge about the future potential of Chancer. However, being the world’s first blockchain betting platform, the potential is huge. The platform changes how betting is done and gives investors more value and income opportunities. That makes Chancer an attractive investment now and in the future. 

Predicting the Chancer token, sustainable gains could be realised in 2024. Analysts have predicted up to 1,000% increase in price. In the future, the value could rise by bigger margins as the Chancer platform witnesses organic use. 

The price of Chancer could be a bit volatile in 2023 due to high speculation. The volatility allows early investors to cash in on strong price moves when the token is listed in Q3 2023. A price increase of up to three-digit percentages should be considered realistic in 2023. 

Should you invest in Chancer this week?

Chancer’s presale has happened fast, and the listing is drawing closer. Investors that buy the token on presale are more advantaged as they can ride the price momentum after listing. As such, the presale presents an opportunity for investors looking to maximise returns. Investors can buy the token via ETH, USDT, BNB, and BUSD.

The post Inspired by blockchain betting, Chancer seeks to leave a mark in 2023 and beyond appeared first on CoinJournal.