Schlagwort: blockchain analysis

• AVAX is in recovery as the crypto market bounces back. 

• Avalanche has a major summit coming up in March that could help drive the price past $100.

• Avalanche is currently trading at a major resistance level.

Avalanche (AVAX) has been one of the best performing cryptocurrencies in the past week. While the broader market is in a sharp bullish reversal after a selloff earlier in the week, Avalanche is among those showing the most promise.

Avalanche has emerged as one of the platform blockchains best positioned to give Ethereum a run for its money. That’s because it has some of the lowest transaction fees in the platform blockchain space and is highly scalable. Avalanche has the capability to handle up to 4500 transactions per second.

Avalanche has also proven to be quite resilient, and so far has not experienced any network hacks that could destabilize it. Such performance capabilities and a good reputation make AVAX a potentially good cryptocurrency to buy in 2022.

The upcoming summit in Spain could uplift AVAX

While the broader crypto market is doing well at the moment, Avalanche has internal factors that could see it outperform the market in the coming month. One of these factors is the upcoming summit that will be held in Spain between March 22nd and March 27th, 2022.

The summit aims to bring together some of the most influential people in crypto and will discuss some of the hottest crypto topics today, including Web 3.0. Some of the key speakers that will make a speech at the summit include Emin Gun Sirer, the founder of Ava Labs, Harold Bosse, the Vice President of Innovation at MasterCard, Sergey Nazarov of Chainlink, and Monica Tather an El Salvador government official among many others. 

The anticipation of the announcements that could come out of this summit could help propel Avalanche (AVAX), especially if the broader market remains bullish in March.

Should you buy Avalanche?

Source: TradingView

Avalanche has been on an uptrend for the last 48-hours. However, it seems to have hit strong resistance at $80.17 on the 61.8% Fibonacci.

If Avalanche breaks the $80.17 resistance, then prices above $100 could be tested ahead of the summit in Spain.

However, if it fails, especially due to downside pressure from the broader market, then prices below $70 could be retested in the short term. 

The post Upcoming summit could push AVAX through $100 soon appeared first on Coin Journal.

• Shiba Inu is one of the best performing cryptos, up by 48,000,000% since its launch in 2020.
• Shiba Inu looking to sustain growth with the launch of a layer-2 scaling solution.
• SHIB is currently trading at a key resistance level and could sway any direction before the end of February.

Shiba Inu (SHIB) is one of the world’s most famous meme coins and one of the largest cryptocurrencies by market capitalization. Shiba Inu shot to prominence in 2021 and was able to effectively capitalize on the meme coin rally that Dogecoin had triggered in 2020.

Shiba Inu went on to become one of the best performing cryptos ever, recording gains of more than 48,000,000% in under a year. Essentially, if you had put just $10 in SHIB back in 2020, you would be a millionaire today.

Shiba Inu is working on a number of developments that could help increase its intrinsic value going into the future. One of the most anticipated is the launch of a Metaverse, which would give Shiba Inu entry into what a trillion-dollar market could potentially. 

Shibarium a potential growth driver for Shiba Inu

For the last two years, Shiba Inu has mainly been riding on the excitement around meme coins. However, it is currently in the process of moving away from this and adding actual utility to the token.

One of the moves that the Shiba Inu team has made is to come up with a layer-2 solution for Shiba Inu called Shibarium. This will help cut transaction costs and increase speeds. The result is that SHIB will become more useable as a currency, and will drive adoption.

This is a big deal considering that Shiba Inu is already recording significant growth in adoption, even by major corporations like AMC. With a layer-2 solution in the works, SHIB could be a great investment in 2022.

Should you buy Shiba Inu?

Source: TradingView

Shiba Inu has been on an uptrend for the last 48-hours. However, upside momentum seems to be slowing down around $0.00002534 on the 38.2% Fibonacci resistance.

If Shiba Inu breaks the 38.2% Fibonacci, then it could end the month on a high note and possibly test prices above $0.00002700 before the end of the month.

However, if broader market momentum drops, Shiba Inu could retest the 23.6% Fibonacci support at $0.00002357 before the end of February.

The post How could Shibarium Laer-2 solution unlock SHIB Value? appeared first on Coin Journal.

As the crypto market continues to report increased volatility, stablecoins could provide a good way to maintain your crypto wealth. These coins have become quite popular too and are expected to grow further. Here is why:

• Stablecoins are designed to guard against volatility in the market.

• It is likely that these coins will become more integrated into global payment systems.

• There is a growing list of suitable coins to buy in this category.

Well, if you are not sure which stablecoins will be perfect for your investment portfolio, here is the full list.

Terra (LUNA)

So, Terra (LUNA) is not a stablecoin per se. But it is the biggest stablecoin platform in the world. For folks who want some exposure to stablecoins, it will be wiser to buy LUNA.

Data Source: Tradingview 

This is a growth asset, and while it has faced major challenges in recent weeks, the long-term potential is still huge. At the time of writing this post, the coin was trading at $75.

Tether (USDT)

Tether (USDT) is the biggest stablecoin in the market and will remain so for years to come. It is also one of the largest crypto assets with a market cap of around $80 billion. In most cases, stablecoins will normally trade close or nearly the same as the US dollar. If you are worried a lot about volatility, then this will be one coin worth having.

Binance Coin (BNB)

Binance Coin (BNB) is the main coin for the Binance exchange. It is one of the more stable coins out there and also one of the biggest in the crypto industry. As of now, the coin is trading at around $373 and has a market cap of $62 billion. BNB offers real growth value, and for investors who want something they can actually hold for long, this would be it.

The post Stablecoin shopping: 3 coins to consider for long-term holding appeared first on Coin Journal.

Given the jarring news overnight that Russia have invaded Ukraine, it feels a little trivial writing about finance this afternoon. I really hope the people of Ukraine will be OK and, on a personal level, I just can’t believe in 2022 that we are on the brink of war in Europe. It’s sad.

But in looking at financial markets, volatility has understandably spiked in the last 24 hours. In this piece, I want to focus on something I have found particularly interesting: Bitcoin’s price movement compared to other major asset classes. Because one of the most seductive narratives in crypto is that of the hedge theory:

•    Bitcoin offers an effective inflation hedge, a method of avoiding fiat debasement (prominent in the recent climate of money printer goes brrrr).

 •    It is digital gold – accordingly, it improves risk-return characteristics of a portfolio containing stocks.

Specifically the latter point is one I want to address, in the context of the last 24 hours.

Market Fallout

So, Putin declares war. How did markets react? 

•    Stocks: S&P 500 fell circa 2.8%, Europe’s Stoxx 600 share index dropped 3.5% and Nasdaq was close to 3% down. This is to be expected – no surprises here. 

•    Gold: The commodity hit a 17 month high, rising circa 1.5% and therefore making good on its hedge promise. Gold bugs rejoice, but nothing too out of the ordinary here either. 

•    Bitcoin: The self-proclaimed digital gold has talked itself up as a hedge for a while now. Well, we have our crisis and we have our stock market plunge – so time for Bitcoin to put its money where its mouth is. The result? A 7% nosedive.  

Returns of Gold (Black), S&P 500 (Blue) and Bitcoin (Orange) in the last 24 hours, via BarChart.com

Correlation -> 1

In crises, correlations go to 1. There’s a flight to quality; investors de-risk and prefer to hold safe-haven assets, of which cash is the most obvious. Gold, for its part, has long had a reputation as a safer store of value. The events of the last 24 hours have shown us that Bitcoin does not yet qualify as such a safe-haven asset. Volatility and crypto go hand in hand like peanut butter and jam; until that standard deviation comes down, Bitcoin’s aim to establish itself as a store of value won’t be achieved.

So, Bitcoin is still the apprentice to the master that is gold.  With latest 30-day estimates on Bitcoin’s volatility sitting at 3.36%, it’s hardly surprising that investors are shedding exposure in turbulent times. For avoidance of doubt, this is not to say gold is a better investment than Bitcoin (I use the “master” term very loosely above). Personally, I can’t convince myself to hold gold given the return characteristics that it has displayed over the last decade (less than a 5% return since 2011, a time period when every other asset has rocketed upwards). The opportunity cost of holding gold has been catastrophic in recent times. But this piece is about hedging properties, not expected return – and right now Bitcoin hasn’t been able to hold up in times of market downturns.

Gold is only just above 2011 highs, via BullionVault.

Maturity

What we need not overlook here (and I will say it time and time again) is the infancy of Bitcoin. Created only in 2009, its growth into the mainstream has been beyond even the wildest crypto fanatic’s dreams. Still, people are impatient with the volatility – but what do you expect? A reputable store of value, fully established after scarcely a decade? Cultures first discovered the shiny beauty of gold back in 4000 BC – that’s thousands of years for it to work on its store of value properties. Do you think the pharaohs in Egypt in 1200 BC were making jewellery out of Bitcoin? Was Spanish conquistador Hernán Cortes’ eye drawn by the sparkling quality of blockchain technology in the 16th century? 

So, while Russia’s march into Ukraine shows us that Bitcoin is not yet a reputable store of value, this should not come as a surprise. Right now, of course you would rather be in cash or gold than crypto when a war is announced. You don’t need to dig into the numbers for that to be obvious.

Precedent

Let’s rewind the clock to March 2020, when our friendly neighbourhood pandemic first exploded onto the scene, sending seismic waves throughout markets. Granted, it was a bigger shock than Putin’s aggression last night, with S&P 500 having two of its worst six days ever in the space of a week (-12.0% and -9.5%), but it’s the most recent crisis we can point to. Bitcoin, on the other hand, shed half its value in the blink of an eye, plummeting from $7,900 to $4,100. Like my roommate used to say, once you get into crypto, stocks feel…boring.  

Bitcoin chart amid onset of COVID, March 11th-13th 2020

Progress

Since March 2020, we have seen Bitcoin added to Tesla’s balance sheet, become legal tender in El Salvador, enter mainstream media coverage and march beyond a $1T market cap (before falling back this year). The vicious dips, however, have still appeared:

•    May 2021: $58,000 to $33,000

•    Sep 2021: $53,000 to $41,000

•    Nov/Dec 2021: $68,000 to $33,000 

So today’s pullback barely even scratches the surface, and that’s with real-world events causing them. The May 2021 crash in particular was seemingly random, with crypto just….being crypto. 

Future

Let me be clear: I’m bullish long-term on Bitcoin. I think the progress made on the institutional side, the brilliant minds who have crossed over from trad-fi and the mainstream acceptance are all incredibly positive developments over the last two years. I think there’s a very important role for Bitcoin to play in our society’s future. However, there is no getting around the fact that all this volatility still makes it a nervous short-term hold, and right now it certainly has not achieved store-of-value status. For curiosity, I ran the numbers on the monthly returns of the S&P 500 against Bitcoin going back to 2013, to see how the correlation has moved. You can see that since COVID it has been relatively strong (2020 in particular has a very high correlation, with the Up Only environment caused by Fed printing). Prior to 2019, it’s a bit all over the place, as Bitcoin had yet to find mainstream traction. Not much of a pattern either way.

There may be a day when such negative macro events, like the last 24 hours, will cause Bitcoin to tick up 1% or 2%. Bitcoin could be steady, a safe-haven asset and it will be less fun to talk about. I certainly won’t have to be writing articles on a daily basis about it, so perhaps it will even put me out of a job. But that decoupling with other risky assets has not occurred yet, and the last 24 hours are further proof of that. Bitcoin needs to become more…boring.

In signing off, perhaps Plan B (creator of the Bitcoin Stock to Flow model) says it more succintly in a tweet:

The post Bitcoin hedge argument falls short amid Russian invasion appeared first on Coin Journal.

Binance makes it easy to stake and offers some of the highest yields on the market, meaning there are plenty of passive income opportunities available on the platform. 

We’ve compiled the best coins to stake on Binance right now, as well as a quick guide on how to start earning interest on your coins.

How to Stake on Binance in 3 Simple Steps

Staking on Binance is simple, meaning you can put your crypto to work and start earning passive income in just a few minutes. Here are the steps you need to take.

1. Sign up and fund your account. Register for a Binance account and verify your identity by uploading some photo ID and proof of address. Next, make a deposit using your preferred payment method.

2. Buy the coin you want to stake. Search for your chosen coin in the ‘Markets’ section. Enter the amount you wish to buy and complete the trade. 

3. Stake your tokens. In the ‘Earn’ section of the site, select ‘Staking’. Search for your chosen coin and select a staking period—the longer you stake, the higher the returns. 

Now you know how to get started, take a look at our top picks for staking on Binance.

1. Solana (SOL)

Binance currently offers yields way above the market rate for Solana stakers. Locking up SOL for 30 days will give you an annualised return of 9.28%, and stakers can get as much as 13.21% with a 90-day lock up period. 

Solana has often outshone Bitcoin and Ethereum in this bull run, and with SOL currently in a dip, investors who buy now could benefit from both staking yields and further price surges. 

You can buy and stake Solana on Binance now, or alternatively, check out our in-depth Solana buying guide.

2. Terra (LUNA)

Terra stakers can earn an APY of 18.29% if they lock up their LUNA for 90 days. This makes LUNA staking on Binance one of the most lucrative passive income options across all mainstream coins.

Annualised returns of nearly 20% are extremely rare for a coin in the top ten, so passive income hunters will want to consider this staking opportunity. 

Start now by buying and staking Terra on Binance. Alternatively, you can read our Terra buying guide for more info.

3. Avalanche (AVAX)

Buy and stake AVAX on Binance to earn up to 21.2% annualised yield (90-day lock up). Even the shortest staking period (30 days) gives stakers an APY of 12.3%. 

These interest rates dwarf those offered by traditional savings accounts. Given that AVAX is also an increasingly popular token, it could also increase in price on top of these impressive rates.

Sign up with Binance to start staking today. If you want more information, you can read our guide on how to buy Avalanche before making a purchase.

All price data and yields correct at the time of writing, as per Binance.

The post Top 3 Coins to Stake on Binance appeared first on Coin Journal.