Schlagwort: crypto business

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Chainlink – A highly undervalued cryptocurrency to buy in 2022

There is a mismatch between LINK’s price and its levels of adoption.

Key points:

  • Chainlink has dropped heavily in value and market cap rankings in 2022.

  • Nonetheless, it remains one of the most adopted cryptocurrencies for decentralized data.

  •  A combination of depressed prices and growing adoption makes LINK a value buy today. 

Chainlink (LINK) has been on a downtrend for most of 2022. While the broader market has primarily been bearish this year, LINK has particularly taken a big hit and even lost its position as a top 20 cryptocurrency by market capitalization.

However, these price dynamics don’t mean that LINK is a lousy investment. It remains solid crypto with good potential long term. For context, consider that LINK has Bitcoin-like dominance in its core markets.

Chainlink is a decentralized oracle cryptocurrency and controls over 60% of this market. This makes it more significant than all its competitors combined. Besides dominance, it is also noteworthy that the decentralized oracles market is growing fast. That’s because it entails supplying smart contracts with decentralized real-world data. Since the Dapps market is on a growth trajectory, the odds are that the demand for Chainlink will keep going up over time.

Is Chainlink a good buy?

From the above analysis, it is clear that Chainlink has a good future ahead of it. As long as the Dapps market is growing, so will the value of LINK. Besides the fundamentals, LINK’s price has dipped from highs of $52 to $7.16. That’s a drop of 86%. While there are no guarantees in crypto, the price drop makes LINK a highly undervalued cryptocurrency. Moreso, when you consider that Chainlink adoption is rising across the cryptocurrency ecosystem.

Conclusion

While Chainlink’s price has tanked and its position in market cap rankings dropped, it is still one of the best out there. Its levels of adoption remain high relative to many other cryptocurrencies in the market today. This makes LINK massively undervalued.

The post Chainlink – A highly undervalued cryptocurrency to buy in 2022 appeared first on CoinJournal.

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Is Binance Coin (BNB) worth buying today?

Growing adoption and deflationary tokenomics make BNB crypto worth buying

Key points:

  • BNB is used for paying fees at Binance, the largest exchange in the world. 

  • BNB is also deflationary, which means long-term demand will outpace supply.

  • BNB is currently trading at over 50% off its all-time highs, making it a perfect buy for long-term investors.

As the bear market rages on, it is only natural for investors to look for cryptocurrencies that offer safety and potential growth. While Bitcoin is the number one on this front, Binance Coin (BNB) is another cryptocurrency with good odds. Going by its price action all through 2022, BNB is among the cryptocurrencies that have held value better than most.

This has a lot to do with its strong use case. Unlike most cryptocurrencies only for speculative purposes, BNB has an actual use case for paying fees across the Binance ecosystem. The best part is that the Binance ecosystem is pretty huge and is continually growing in size, further adding to BNB’s strength. 

Binance launched in 2017 but has since grown to be the largest cryptocurrency exchange by volume. It is also continually adding its product offering, further adding to the use cases for BNB. For instance, the Binance ecosystem now includes the Binance Smart Chain, one of the most significant launch platforms for Dapps today. Essentially, BNB is one of those cryptocurrencies with a very low chance of crashing without warning, as happened to LUNA in May 2022.

Besides the use cases giving BNB some downside protection, there is every reason to believe that BNB could do well going into the future. That’s because its supply is always going down over time. This is all thanks to the Binance Coin burns that happen every quarter. With shrinking supply and growing demand, the odds are that BNB will keep going up over time.

Is Binance Coin a good buy today?

Binance coin is, without a doubt, an excellent cryptocurrency to buy now. For starters, it has solid fundamentals, as discussed above. Then there is the fact that the market is strongly bearish, and BNB prices are more than 50% off their all-time highs. This price correction presents an opportunity to buy BNB at discounted prices in anticipation of the next bull run and the quarterly BNB token burns. 

Conclusion

Binance Coin’s growing usage and shrinking supply play in its favor long term. Now that crypto prices are heavily depressed, BNB presents a buying opportunity for long-term investors.

The post Is Binance Coin (BNB) worth buying today? appeared first on CoinJournal.

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Tether treasury: Celsius’ crisis won’t impact USDT reserves

Tether has announced that the USDT reserves “hold strongly” even as cryptocurrency lending provider Celsius (CEL) feels the heat of crypto volatility.

The stablecoin issuer, in a statement to this effect released on Monday, said the events wont have an impact on the stablecoin’s reserves.  

And going by events of not so long ago involving the collapse of TerraUSD (USD), Tether must have felt the need to issue a clarifying note.

“The recent events impacting the Celsius lending platform and its native token CEL are an unfortunate result of market volatility and extreme market conditions,” Tether noted. 

No correlation with USDT

According to the company, while its portfolio holds an investment in Celsius, it is but a “minimal part” of its shareholders equity. Notably, Tether said its investment in the crypto lender has no correlation to its USDT reserves.

Additionally, the lending activity between Tether and Celsius “has always been overcollateralized,” adding to the overall assertion that none of what’s happened with Celsius has an impact on the stablecoin issuer’s reserves. 

On Monday, Celsius announced a pause to all withdrawals, transfers and swaps as it tried to navigate massive volatility.

“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” Celsius said in a message to the community.

The platform has not resumed the operations as at the time of writing. Meanwhile, the native CEL token is down 21% in the past 24 hours and nearly 96% down since its all-time high reached in January last year.

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Crypto news: BlockFi cuts headcount by 20% amid price meltdown

BlockFi says its intention is to remain profitable amid the tough market conditions.

Crypto platform BlockFi has announced that it is cutting its employee numbers by 20%, following in the footsteps of other major companies in the industry.

The platform, which has seen significant growth over the past four+ years following the debut of its crypto-backed loan feature, says the job cuts will impact “every team at the company.”

According to a blog announcement from founders Zac Prince and Flori Marquez, the decision to let go of so  many of the platform’s staff is down to prevailing  macroeconomic conditions. The company says the move will be followed by a review of its strategic priorities. 

Cutting jobs to ensure company remains profitable

BlockFi’s employee count jumped from 150 at the end of 2020 to over 850 in 2022, with the massive increase coming on the back of greater growth underpinned by cryptocurrency’s incredible growth in 2021. It will now have 600+ employees.

The company, like most others in the crypto sector, experienced the pain of the ongoing bear market.

According to Zac and Flori, the staff reduction is part of wider measures undertaken over the past several months as they seek to remain profitable. The firm has reduced marketing spend, eliminated non-critical vendors and cut executive compensation. It also slowed down its hiring.

The company expects no material disruption to its services or products or services, the co-founders said in the blog post.

Other major companies to announce job cuts are crypto exchanges Coinbase and Gemini. Bitcoin and the broader crypto market has been in a downward trend since last November.

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Bank of America: 90% of survey respondents plan to purchase crypto in next 6 months

Despite the bear market sentiment, most crypto holders have plans to purchase “some amount of crypto” before the end of the year.

A new survey by the Bank of America shows interest in cryptocurrencies remains high among Americans, with over 90% of respondents saying they planned to buy crypto over the next six months.

According to Jason Kupferberg, an analyst at Bank of America, the survey was conducted on 1 June, coming in the aftermath of the Terra Luna collapse. The sample size was 1,000 US adults.

In an interview with CNBC’s ‘TechCheck’, Kupferberg added that the percentage of respondents looking to buy crypto was similar to the number that said they bought during the first six months of 2022.

Bitcoin adoption and payments

On the use of Bitcoin and other cryptocurrencies, the bank says adoption is not very much pronounced.

However, with increased movement towards crypto-linked payment like Coinbase’ Visa card, the connection to merchants and users is much seamless and helpful towards new momentum in the sector.

Bank of America also says the crypto market is likely not seeing a major shift in global adoption to too many cryptocurrencies and crypto exchanges. Likening it to the dotcom era, Kupferberg says some of the projects are most likely going to fade away, before those that survive see greater adoption.

BTC and stocks price correlation

The BofA analyst also noted that Bitcoin continues to correlate highly with stocks, especially high growth tech stocks. This lockstep trading has a BTC price tank alongside downturns in the market, trending in a bear market as major stocks sold-off.

On Monday, Bitcoin price fell nearly 18% as negative headlines around Celsius Network compounded the downside pressure. BTC/USD fell to a 24-hour low of $22,725. 

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