Schlagwort: crypto business

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Litecoin price prediction: LTC could crash to $40 in September

Litecoin price was in a tight range on Thursday as investors started to reposition their assets for September. The LTC coin rose slightly to a high of $55.80, which was slightly above this week’s low of $52.36. Its market cap stands at over $3.2 billion.

Hawkish Federal Reserve

Litecoin price has been under pressure as investors focus on the hawkish tone by the Federal Reserve. In a statement at the Jackson Hole Symposium at Wyoming, Jerome Powell insisted that the bank will continue hiking interest rates in the coming months.

His sentiment was shared by other Federal Reserve officials like Charles Evans and Neel Kashkari. In a statement on Wednesday this week, Cleveland Fed’s Loretta Mester said that the bank will continue hiking and also maintain high interest rates until inflation moves to 2%.

Historically, cryptocurrencies like Bitcoin and LTC tends to underperform in periods of a hawkish Federal Reserve. This also explains why cryptocurrencies and stocks have continued their bearish trend in the past few months. Indeed. American stocks have fallen in the past five straight days.

Litecoin price has also underperformed because of the sluggish demand for the coin. With cryptocurrencies down by more than 50% this year, many users of LTC have stayed away. This is evidenced by on-chain data that show weak demand in the ecosystem.

Meanwhile, the coin has lagged because of the significantly strong US dollar. The US dollar index has jumped to the highest level in over 20 years. Litecoin and other cryptocurrencies have an inverse correlation with the US dollar.

Litecoin price prediction

The daily chart shows that the LTC price has been under pressure in the past few months. It has fallen by 86% from the highest level in 2021. A closer look shows that the coin has formed a bearish flag pattern, which is usually a bearish sign. 

It has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the neutral point at 50. Therefore, there is a likelihood that the coin will have a bearish breakout in September. If this happens, the next key support level to watch will be at $40.

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Mirror Protocol price is in a recovery mode. Is MIR a good buy?

Mirror Protocol price bounced back on Thursday as cryptocurrencies in the Terra ecosystem jumped. The MIR token rose to a high of $0.20, which was about 32% above the lowest level this year. Its market cap jumped to about $15 million, which is lower than the all-time high of over $700 million.

What is Mirror Protocol and why is it rising?

Mirror Protocol was once one of the leading platforms in the blockchain industry in the Terra ecosystem. It is a platform decentralized finance (DeFi) that allowed people to trade financial derivatives in all assets like currencies, stocks, and commodities.

Therefore, instead of using a regulated broker like Robinhood, users can easily buy these financial assets in Mirror Protocol. It used Band Protocol’s oracle system to provide these price feeds.

On August 15, Band Protocol announced that it will cease providing price feeds for Terra Protocol and its products like Mirror Protocol. It attributed this situation to the collapse of UST, the heart of the Terra Chain. 

In addition, Band Protocol noted that Mirror Protocol’s team had failed to respond to its queries about its future. The statement added that:

“Users’ safety is the top priority for Band as an infra developer and we cannot support protocols if we’re unsure. Community members are encouraged to contact the Mirror team directly for any enquiry.”

Therefore, without these price feeds, and without any communication from Mirror, it means that the project is no longer running. In the past, Mirror was actually accused of being a pyramid scheme.

MIR price is bouncing back as investors cheer the strong performance of both Terra Luna Classic and Terra Classic USD. LUNC has jumped by more than 80% in the past 24 hours while USTC has soared by 51% in the same period. Similarly, Anchor Protocol and LUNA prices have jumped by more than 25%. 

Is Mirror Protocol a good buy?

In my view, I believe that MIR is one of the worst cryptocurrencies to buy. For one, its ecosystem has almost died now that Band Protocol is no longer providing price feeds. In addition, it is tied to Terra Classic and USTC, coins that are no longer valuable. As you recall, Terra USD was the heart of Terra’s ecosystem because it was pegged at $1.

Therefore, the current Mirror Protocol price rally is likely because of a pump and dump that is common in the crypto market.

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Chiliz is up by 3.5% on Thursday: Here is why

Chiliz is one of the best-performing cryptos amongst the top 50 cryptocurrencies in the market today.

CHZ, the native token of the Chiliz network, is one of the top performers amongst the leading 50 cryptocurrencies by market cap. CHZ has added more than 3.5% to its value over the last 24 hours. 

The positive performance comes as the broader crypto market underperforms. The broader crypto market has lost more than 2% of its value over the past few hours. As a result, the total crypto market cap is now around $975 billion.

Bitcoin, the world’s leading cryptocurrency, is down by 1.7% so far today and risks dropping below the $20k psychological level if the trend continues. Ether is down by 3% and is currently trading at $1,551 per coin.

CHZ’s positive rally comes after the Chiliz exchange announced its support for the upcoming Ethereum Merge. 

The team said in the event of a new chain fork/token, they will evaluate whether to support the distribution and withdrawal of the forked tokens if they meet the exchange’s requirements. 

The Chiliz team will announce the timeline for such supported tokens if required in a separate announcement.

Key levels to watch

The CHZ/USD 4-hour chart remains bearish despite Chiliz performing positively over the last 24 hours. CHZ has been underperforming in recent days, but its technical chart is now improving.

The MACD line remains below the neutral zone, indicating that the bears are still in control. However, it could enter the positive region if the positive momentum is sustained. 

The 14-day RSI of 49 shows that CHZ is no longer in the oversold territory. At press time, CHZ is trading at $0.2092 per coin. If the rally continues, CHZ could surge past the first major resistance level at $0.2343 today.

However, it would need the support of the broader crypto market to surpass last week’s high of $0.2625.

The broader market remains bearish, and this could affect CHZ’s performance in the near term. CHZ could lose the $0.1954 support level before the end of the day if the bearish sentiment thickens in the broader crypto market. 

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Bybit partners with Circle to promote USDC access and adoption

Bybit plans to add USDC spot pairs and other products to its retail and institutional clients.

Crypto derivatives exchange Bybit has partnered with digital financial technology firm Circle Internet Financial, the issuer of stablecoins USD Coin (USDC) and Euro Coin (EUROC), in a collaborative effort that will see Bybit launch USDC spot pairs.

The partnership will also see the integration of other USDC-settled products to help accelerate Bybit’s growth as a leading gateway for both institutional and retail traders, the two companies said in a press release.

“We have been building throughout the bear market, and have found USDC to be an excellent fit for our operations,” said Ben Zhou, co-founder and CEO of Bybit.

The initiative comes months after Bybit added support for USDC options, which was the crypto market’s pioneering “stablecoin-margined options contract”. The exchange plans to add Ether and Solana options. 

“After the success of our USDC options, it was opportune to further develop our working relationship with Circle, which has a reputation for openness and integrity in their services and development of cutting-edge financial technology,” Zhou added.

Apart from spot trading and options, ByBit plans to offer other products such as perpetual contracts to further the growth and adoption of USDC. 

The exchange will also leverage its technology to enable instant, automated conversions between the US dollar (USD) and USDC. This will also apply to other Circle-issued stablecoins, Bybit noted.

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USD isn’t Maker’s only problem: DAOs are broken

  • Laguna Labs CEO Stefan Rust says MakerDAO’s quest to free float DAI is a great move.
  • However, he says the whole idea of DAOs isn’t the utopian democracy people think they are.

Stefan Rust, CEO of blockchain innovation hub Laguna Labs, says proposals to have Maker DAO’s native token fully depegged from the US dollar might not be the only problem out there for the crypto platform.

According to Rust, even more pressing could be the structure of decentralised autonomous organisations (DAOs). He says this is what Maker and the broader crypto industry needs to focus on even as events elsewhere inform the desire to depeg Dai.

The Laguna Labs CEO’s comments, shared with CoinJournal on Wednesday, come a few days after MakerDAO co-founder Rune Christensen discussed why depegging the native token DAI from USD Coin (USDC) might be Maker’s way forward.

The Maker co-founder’s advice to the community was tempered with what he summed as concerns over a “physical crackdown against crypto” by an authoritarian system. The views followed the US Treasury’s sanctions on crypto mixing service Tornado Cash.

Rust says DAOs are broken

According to Rune, and in reference to Maker’s DAI plans, the whole DAO ecosystem is “broken” and needs fixing if the crypto industry is to see even more growth.

“This is a great idea and one I’m excited to watch Maker DAO explore,” Rust said referring to the DAI depeg discussion. “[But] the US dollar is not, however, Maker’s only problem: the governance model of all decentralised autonomous organisations (DAOs), needs serious attention if the cryptocurrency industry is to thrive,” he added.

The problems bedevilling the decentralised finance (DeFi) ecosystem as seen over the past few years, with hacks and Ponzi scheme-like projects seeing many people lose huge amounts of money adds to the whole outlook of the DAO ecosystem being broken.

Not the utopian democracy you think

Rust also notes that, even though most users find DeFi an “intimidating space,” the DAOs governing many of the protocols within the industry simply do not work. 

He believes DAOs do not run on the kind of utopian democracy that most within the crypto space would like to think they are.

“Indeed, as we saw recently with Maker DAO and its “community” vote to allow US banks to borrow DAI while adding US Treasuries to the portfolio, like all democracies, DAOs are open to outsized influence from those with the largest share of tokens, or the ability to sway opinion.”

In his opinion, Rust sees the best path forward for crypto following the recent booms and busts would be for the sector to pivot to its original mission of a “decentralised, censorship-resistant financial ecosystem.”

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