Category: Cryptocurrency News

submitted by /u/Electrical_Potato_21 [link] [comments]

The recent cataclysmic crash of the Terra Classic (LUNC; formerly LUNA) left several people bankrupt. South Korean officials reported 8 confirmed suicides due to this blow. Stablecoins emerged as a way for cryptocurrency investors to park their funds to escape from volatility. USTC (formerly UST) was among the largest stablecoins by market cap and the single largest stablecoin on the Cosmos blockchain. This is not the first time an algorithmic stablecoin fell below the point of recovery. So much so that the head of the IMF even suggested that stablecoins that are not backed by physical assets are similar to pyramid schemes. However, a crash as biblical as that of UST was a first for a stablecoin. While history seemed to have indicated this to be an obvious outcome, the utility of UST and the communities around LUNC-UST indicated otherwise. The Death Spiral – Here’s What Went Wrong Stablecoins are digital assets whose value is pegged to a fiat currency or other asset. USTC is one such stablecoin, pegged to the US dollar by not backed by it. LUNC maintained USTC’s price algorithmically, using a mint and burn mechanism. When USTC’s demand-to-supply ratio was high, more LUNC was burnt. Contrariwise, more LUNC was minted when USTC’s supply-to-demand ratio was high. This created an arbitrage opportunity for traders which helped maintain USTC’s price at approximately $1. However, when the selling pressure became too high for the algorithm to keep up, LUNC began to hyperinflate. It thus sent the entire ecosystem into a death spiral, eventually leading to a point of no recovery. Today, USTC costs less than $0.01 while LUNC is over 99% down from its all-time high. Decentralized Alternatives – The Way Forward The failure of algorithmic stablecoins doesn’t mean the end of all possibilities. Instead, they provide us with crucial lessons. One of them is avoiding centralization at all costs. So, here’s a list of non-algorithmic, decentralized stablecoins for you to consider while entering the world of crypto. 1. USDr USDr is a collateralized, fiat-backed stable token receipt by METL, a first decentralized crypto on-ramp solution native to the Avalanche blockchain. Since METL’s USDr stable token receipt is collateralized with a 1:1 ratio using USD, it will not be affected by unexpected selling pressures like in the case of LUNC and other algorithmic stablecoins. The USDr token’s issuance mechanism is designed to have users be the actual issuers of the token, so that they interact with the DeFI ecosystem. This allowed METL to bypass any MTL (Money Transmitter Licensing) requirements and receive exemptions in all the states in the US except NY. METL does not host any wallets and therefore does not take user’s funds on their balance sheet, which again protects them from a bank run. METL is currently building an SDK to let any developer build a FIAT gateway using METL microservices and plug/play it into any DeFI platform that wants native gateway.  METL holds a 20 year patent for this technology issued by the USPTO office. 2. DAI DAI, a decentralized stablecoin, is a product of MakerDAO, an Ethereum-based peer-to-peer organization facilitating collateralized loans. Unlike USDC and USDT, DAI is an over-collateralized, crypto-backed stablecoin. This means that the collateral backing this stablecoin is other cryptocurrencies. Moreover, its “over collateralized” nature implies that the value of the collateral backing DAI is greater than DAI’s value. For instance, $1.5 worth of ETH-based (ERC-20) tokens back $1 worth of DAI. Instead of any centralized, corruptible entity, immutable and tamper-proof smart contracts maintain DAI’s peg to $1 by increasing or decreasing the amount of collateral based on market dynamics. 3. EOSDT EOSDT is an over-collateralized, decentralized crypto-backed stablecoin by Equilibrium, a cross-chain money market project in the Polkadot ecosystem. Users can borrow EOSDT by collateralizing their digital assets in a smart contract with a small interest rate of 1% APR. The stablecoin also has an insurance mechanism called the “Stability Fund” to shield EOSDT and its holders from extreme market volatility. Further, the price of EOSDT is maintained at $1 by incentivizing arbitrators. This is similar to USTC’s mechanism. However, unlike USTC, EOSDT is not algorithmic and currently has a collateralization ratio of 281%. 4. sUSD sUSD is a crypto-backed, overcollateralized stablecoin by Synthetix, an ETH-based protocol that facilitates DeFi derivatives trading. sUSD acts as the bridge to trade these on-chain synthetic assets on the Ethereum network. All synthetic assets on Synthetix are referred to as “Synths” and are denoted by an “s” at the prefix. sBTC, sETH, and sSOL are some examples. Similarly, sUSD is a synthetic stablecoin asset. 5. RSV RSV is a collateralized stablecoin. However, unlike other tokens mentioned here, RSV employs a hybrid collateralization method. Thus, a combination of fiat and cryptocurrencies back this stablecoin. RSV is a product of Reserve, a protocol working to offer citizens of countries with high inflation rates a robust inflationary hedge. The Reserve Dollar (RSV) is the stablecoin that facilitates this. Caution is Wisdom It’s abundantly clear that you have several alternatives to stablecoins like UST. They are more robust, more reliable, and above all, more decentralized. But despite everything, one can’t stress the importance of due diligence enough in these matters. You must do your research, thoroughly, before investing in any stablecoin whatsoever. Look closely at the project’s team, their track record, and most importantly, the protocol’s architecture. It’s difficult at times but utterly necessary. Particularly because the crypto domain is still nascent, with much volatility and uncertainty. New changes are happening every day and you must always be cautious about negative consequences. The storm will, however, be over soon, when the future of finance will shine bright. Stablecoins will define this future, and so can you.   Image by succo from Pixabay

Ethereum is struggling below the $1,100 zone against the US Dollar. ETH could gain bearish momentum if it breaks the $1,030 support zone. Ethereum is facing resistance near the $1,100 and $1,120 levels. The price is now trading below $1,150 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $1,080 on the hourly chart of ETH/USD (data feed via Kraken). The pair could decline heavily if there is a clear move below the $1,030 and $1,000 levels. Ethereum Price Faces Hurdles Ethereum started a downside correction after it failed near $1,190 and $1,200. ETH corrected lower and traded below the $1,120 support zone. There was a clear move below the 23.6% Fib retracement level of the upward wave from the $880 swing low to $1,192 high. Ether price even settled below the $1,150 zone and the 100 hourly simple moving average. However, the bulls were active above the $1,030 support. Ether price stayed above the 50% Fib retracement level of the upward wave from the $880 swing low to $1,192 high. An immediate resistance on the upside is near the $1,080 level. There is also a key bearish trend line forming with resistance near $1,080 on the hourly chart of ETH/USD. The next major resistance is near the $1,120 zone. The main resistance sits near the $1,150 level. A clear move above the $1,150 resistance zone could start a steady increase. Source: ETHUSD on TradingView.com The next major resistance is near the $1,200 level or the $1,192 high. Any more gains could start a move towards the $1,280 resistance in the near term. More Losses in ETH? If ethereum fails to rise above the $1,120 resistance, it could continue to move down. An initial support on the downside is near the $1,040 zone. The next major support is near the $1,030 zone. A close below the $1,030 level might push the price below $1,000. In the stated case, ether price may perhaps decline towards the $950 level. Any more losses might call for a move towards the $880 support zone in the coming sessions. Technical Indicators Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone. Hourly RSI – The RSI for ETH/USD is now below the 50 level. Major Support Level – $1,030 Major Resistance Level – $1,120

PRESS RELEASE. Cryptocurrency exchange LBank has continued to hire more crypto and blockchain talents as well as interns for its global offices. Against the backdrop of extreme volatility in the crypto market and investors dumping risky assets, as well as certain crypto firms laying off employees and freezing withdrawals, LBank makes a move in the […]

Brian Shroder, CEO of Binance.US said the zero-trading fees would generate positive user sentiment and said there are plans to expand the list of tokens that will offer zero-fee trading in the future.

Solana over the last 24 hours registered a loss of 7% and fell below the $35.50 price mark. The bears have mauled the cryptocurrency market and overall altcoins have fallen on their charts. Solana also is under the bearish price action despite registering minor gains on the hourly chart. Despite the gain, bears will try to hinder the price movement as technical outlook painted a negative picture. Bitcoin continues to remain close to the $20,000 mark while other market movers also keep struggling at the time of writing. The altcoin is dangerously close to the support line of $35. The bulls however have continued to defend the next support line of $30. Buying strength also remains low in the market, with increased selling pressure SOL could again dip and trade near the $30 price level. The global cryptocurrency market cap today is $941 Billion with a fall of 2.6% in the last 24 hours. Solana Price Analysis: Four Hour Chart SOL has been optimistic over the past week with double digit gain of 20%. SOL has remained one of the altcoins that have recovered considerably over the week. Despite the recovery, the bulls are tired of pushing the price up. As the chart flashed a descending triangle which is tied to fall in the price, SOL followed through and declined on the chart. At the time of writing, Solana was trading at $35.65. The coin might witness stiff resistance at the $38 price level. A fall from the current price level will drag price of SOL to $30 and then to $26. The volume of SOL traded in the last trading session fell signifying that buying strength hasn’t fully picked up. Technical Analysis SOL flashed an increase in buying strength but there is a chance that buying strength might dip over the immediate trading session. The Relative Strength Index noted an uptick and was seen above the half-line indicating that buyers outnumbered sellers on the four hour chart. It is however too soon to conclude if the coin will continue to maintain this price momentum. The coin barely managed to move over the 20-SMA line which indicated that selling strength was still present in the market. At press time however, buyers were driving the price momentum in the market. Suggested Reading | Bitcoin Steady Above $20K After Drop To $17K – A Slow Climb To Green? Moving Average Convergence Divergence depict the price momentum and trend reversals. The indicator went through a bearish crossover and formed red histograms. The onset of these histograms were a sell signal for the coin. This can be tied to incoming price decline for SOL. Average Directional Trend is responsible for registering the strength of the current trend. ADX was moving close to the 20-mark with a downtick, this signals that the trend was losing strength which again pointed towards continued bearishness in the market. Related Reading | Cardano (ADA) Moved Upwards After Consolidation, What To Expect Next? Featured image from UnSplash, chart from TradingView.com

submitted by /u/Acceptable-Sort-8429 [link] [comments]

submitted by /u/Odlavso [link] [comments]

Fees spiked to a high of $8.36 million for Uniswap on June 15, beating out Ethereum on the same day at $7.99 million, and coincided with an 8.7% pump for UNI.

Bitcoin is consolidating above the $20,000 zone against the US Dollar. BTC must clear the $20,800 resistance to restart increase in the near term. Bitcoin corrected gains and tested the $19,800 support zone. The price is now above the $20,000 level and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $20,550 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could gain bullish momentum if it clears the $20,550 and $20,800 resistance levels. Bitcoin Price Faces Resistance Bitcoin price failed to gain pace above $21,700 and corrected gains. There was a downside correction below the $21,000 support zone. The price declined below the 23.6% Fib retracement level of the upward move from the $17,600 swing low to $21,700 swing high. The bears even pushed the price below the $20,500 support zone and the 100 hourly simple moving average. However, the bulls were active above the $19,650 and $19,800 support levels. Bitcoin also stayed above the 50% Fib retracement level of the upward move from the $17,600 swing low to $21,700 swing high. It is now above the $20,000 level and the 100 hourly simple moving average. An immediate resistance on the upside is near the $20,550 level. There is also a key bearish trend line forming with resistance near $20,550 on the hourly chart of the BTC/USD pair. Source: BTCUSD on TradingView.com The first major resistance is near the $20,800 level. A clear move above the $20,800 level might start a decent increase. The next major resistance sits near the $21,220 level, above which the bulls might gain strength for a steady increase. More Losses in BTC? If bitcoin fails to clear the $20,800 resistance zone, it could start another decline. An immediate support on the downside is near the $20,200 level and the 100 hourly SMA. The first major support is near the $20,000 level. The main support is now near the $19,650 level. A downside break below the $19,650 support could restart decline in the near term. In the stated case, the price might slide towards the $18,800 level. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $20,000, followed by $19,650. Major Resistance Levels – $20,800, $21,220 and $21,700.