Schlagwort: crypto analysis

• Gala crypto price is nearing its lowest level on record.

• It has plunged by more than 78% from the highest level.

• There are concerns about the platform and the ongoing lawsuit.

Gala token price continued its sell-off as demand for the coin crashed. The token plunged to a low of $0.013, meaning it has plunged by more than 78% from the highest level on record. Other top laggards on Thursday were coins like Optimism, eCash, Injective, and XDC Network.

Fed interest rates and ecosystem growth

There are three main reasons why Gala crypto price has been in a strong bearish trend for a while. First, like other cryptocurrencies, it is being affected by the rising interest rates by the Federal Reserve. 

The Fed has hiked rates from 0% during the pandemic to between 5.25% and 5.50%. In its monetary policy meeting on Wednesday, the bank warned that it will deliver one more 0.25% rate hike. 

High interest rates have an impact on all assets. For example, they lead to a higher US dollar index (DXY). The index, which measures the value of the USD against a basket of currencies, has jumped to a five-month high of $105.

Further, the dollar is having a higher yield than most cryptocurrencies. Money market fund yields have jumped to a multi-year high of almost 6%. Therefore, many investors have moved their funds from risky assets like crypto to cash.

Second, Gala price has plunged because of the lack of traction of games in its ecosystem. While developers have launched several games like Townstar, Dragon Strike, and PokerGo, data shows that they have not gone mainstream. Also, NFT sales in Gala have dropped. 

Finally, there is internal wrangling between Wright Thurston and Eric Schiermeyer, the co-founders of the platform. The two are battling over a $130 million theft in a court in Utah. Historically, investors tend to avoid assets with such issues.

Gala crypto price forecast

The daily chart shows that the Gala crypto price has been in a strong bearish trend in the past few months. It moved below the key support level at $0.018 and $0.015, the lowest levels in June this year and December last year. Gala has also remained below the 50-day and 100-day moving averages.

Therefore, Gala price will likely continue falling as demand for the coin wanes. This sell-off will likely continue falling as sellers target the key support at $0.010. The stop-loss of this trade is $0.02.

How to buy Gala

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

• There are concerns about the network’s ecosystem as activity slows.

• Circle has now integrated USDC into its ecosystem.

Polkadot price has been in a strong bearish trend in the past few months amid rising concerns about the ecosystem. DOT token plunged to a low of $3.90 last week, down by more than 50% below the highest level this year. It has underperformed other popular coins like Bitcoin, Tron, and Ethereum.

Polkadot ecosystem woes

Polkadot is one of the leading players in the blockchain industry. Developed by an Ethereum co-founder, the platform makes it possible for creators to build parachains that are interconnected with other chains. Parachains are independent layer-1 blockchains that transcend limitations of other chains.

Over the years, many developers have won parachain slots in Polkadot’s ecosystem. Some of the most popular Polkadot parachains are Moonbeam, Clover Finance, Efinity, Litentry, Astar, and Phala Network.

The challenge for Polkadot is that most of its successful parachains have struggled to gain traction in the past few months. A good way to look at this is its DeFi ecosystem. A look at DeFi Llama shows that Moonbeam is its biggest player in DeFi with a TVL of just $52.4 million. 

Moonriver is the 75th network with just $8 million. Other networks like Astar and Karura have $44 million and $8 million, respectively. Therefore, the network needs to see more activity in the ecosystem.

The most recent Polkadot news was that Circle decided to add USDC in Polkadot Asset Hub. This is an important move since USDC is the second-biggest stablecoin in the world with over $26 billion in market cap. The statement added:

“Polkadot USDC is the official form of USDC for the Polkadot ecosystem, providing developers and users with access to a fully reserved, dollar-backed stablecoin that’s always redeemable 1:1 for US dollars.”

Polkadot price forecast

The daily chart shows that the Polkadot price has been in a strong bearish trend in the past few months. This decline saw it drop below the important support at $4.21, the lowest level in June and December 2022. It has also retested this level, which is a sign of a bearish continuation

Polkadot has remained below the 50-day moving average. It has also formed an inverted cup and handle pattern. Therefore, there is a likelihood that the coin will continue falling as sellers target the key support at $3.70. A move above the key resistance at $4.50 will invalidate the bearish view.

How to buy Polkadot

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• Base is seeing strong inflows in its ecosystem as demand rises.

• The total value locked (TVL) has surged to over $420 million.

• Aerodrome has seen inflows in its ecosystem soar.

Base, the recently launched layer-2 network, is seeing strong traction even as the crypto winter continues. On-chain data shows that the amount of cash deposited in Base’s ecosystems has jumped.

Data by DeFi Llama shows that the total value locked (TVL) in its ecosystem surged to over $420 million, making it the 10th biggest chain in the world. It has become bigger than some of the oldest chains like Cronos, Kava, Klaytn, Cardano, Fantom, and Algorand.

Base has attracted over 100 DeFi applications. Aerodrome, the biggest dApp in its ecosystem, stands at over $121 million. The other important DeFi applications in the ecosystem are friend.tech, Compoind, Curve DEX, Stargate, and Beefy.

For starters, Base is a layer-2 network that makes it possible for developers to build decentralised applications (dApps). Developers are already building applications in all industries like gaming, social media, and infrastructure.

An Ethereum layer-2 network is one that supercharges the performance of applications. It is a sidechain that reduces transaction costs and boosts its speeds. Base is able to handle over 10,000 transactions per second (tps) at much lower costs. It competes with the likes of Optimism, Polygon, and Arbitrum.

The most recent Base news is that the developers launched Pessimism, an open-source monitoring system that enhances the security of Base by detecting and responding to threats.

Introducing Pessimism, an open source monitoring system designed to enhance security of Base (as well as the broader OP Stack and Ethereal ecosystem) by quickly detecting and responding to a myriad of protocol threatshttps://t.co/erocaQOkbz

— Base 🛡️ (@BuildOnBase) September 19, 2023

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Key takeaways

• Toncoin has overtaken Solana and Tron to become the 9th largest cryptocurrency by market cap.

• Toncoin began to rally following Telegram’s endorsement of the TON project.

Toncoin is now one of the top 10 cryptos by market cap

TON, the native coin of the Toncoin blockchain, has become one of the top 10 cryptocurrencies by market cap.

The coin has added 30% to its value over the past seven days, outperforming the other major cryptocurrencies in the process. At press time, the price of Toncoin stands at $2.53, up by more than 4% in the last 24 hours.

The sustained rally comes a few days after the messaging platform Telegram endorsed the Toncoin project. At the time, Telegram’s chief investment officer, John Hyman, said,

“We are putting digital ownership rights in the hands of our entire user base. While also giving TON projects the tools to reach our audience in the largest Web3/Web2 partnership there has ever been.”

Telegram is set to integrate the TON network into the app’s user interface. With the integration, the TON Web3 wallet would be available to over 800 million Telegram users via their settings.

BTC and others experience a positive performance

Bitcoin and the other major cryptocurrencies have also recorded positive performance in recent days. At press time, the price of Bitcoin stands at $27,111, up by more than 4% over the last seven days.

Other major cryptocurrencies, including XRP, Solana, Tron, Polygon, Litecoin, Bitcoin Cash, and Chainlink, have added more than 4% to their values over the last few days.

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