Category: Cryptocurrency News

Decentralized social networks have always faced significant challenges to gain mainstream adoption. Such is the apparent case of Friend.tech, a new decentralized app that enjoyed explosive growth earlier this month.  Just barely two weeks after its launch, Friend.tech saw its trading fees grow to rival top cryptocurrencies like Bitcoin and Tron. However, the euphoria is starting to subside, as activity and trading fees on the social media app have crashed by 94%.  Friend.tech Records Massive Fall In Trading Activity Friend.tech’s model had raised concerns from some crypto investors, with some arguing about its long-term viability. Their criticism has been proven to be accurate as the situation at Friend.tech has started to deteriorate.  Related Reading: Shibarium Launch Proves Positive As Shiba Inu-Based BONE Celebrates New Milestone Friend.tech allows users to buy and sell shares of influential accounts and social media profiles, and the platform reportedly registered over 35,000 and 4,400 ETH ($8.1 million) in trading volume in its first 24 hours.  However, data from Dune Analytics show that trading volume has fallen since then, with less than $200,000 in fees generated in the past 24 hours. Trading activity has also been down from over 35,000 to less than 6,000 users. This has been reflected in trading costs, as revenue has decreased by more than 94% since the exchange first opened its doors. Friendtech buyers and sellers tanking to 0 GG Friendtech? pic.twitter.com/jmXKu41KDd — Boxmining (@boxmining) August 28, 2023 Friend.tech’s business model relied heavily on charging users a 10% fee for every buy and sell of shares. Friend.tech surpassed Bitcoin in terms of trading fees, recording almost $1.4 million in revenue during the height of the platform’s trading activity. However, data from DeFiLlama shows that trading fees are now at $160,000 in the past 24 hours. Friend tech is dead because of greed and poor execution. We can see that after the initial influencer pump volume has fallen off a cliff. Let’s dig into how this failure came to be 👇🏾 pic.twitter.com/WDQncTQJ21 — Lisandro (@TheRealLisandro) August 27, 2023 Friend.tech also incorporates Maximal Extractable Value (MEV) bots, which are automated trading bots designed to exploit rapid price movements. Although these bots have generated over $2 million in profits, they have been credited with discouraging content creators and users. Related Reading: Base Chain TVL Surpasses Cardano As Interest Swells The Plight Of Decentralized Social Media Platforms Decentralized social media have been touted to be the future of the internet. However, platforms have been faced with many challenges and have struggled to gain a firm footing in the market. One of the challenges is the expansion of the user base. Overcoming these challenges will be key to disrupting the status quo and achieving the promise of decentralized social media.  At the time of writing, Friend.tech has a TVL of $6.4 million and has generated fees of over $7.8 million to date. But while Friend.tech is still operating, critics have likened its imminent failure to the fall of BitClout, another decentralized social media app. Total market cap struggles at $1.026 trillion | Source: Crypto Total Market Cap on Tradingview.com Featured image from BeInCrypto, chart from Tradingview.com

The crypto wallet wallet linked to 1inch Investment Fund currently holds around $80 million in various digital assets.

XRP, the cryptocurrency tied to Ripple, found itself entangled in a familiar tussle with the $0.55 resistance level as bearish forces thwarted its early attempts at a rebound. While last month’s pivotal summary judgment offered a glimmer of regulatory clarity for XRP, the ongoing specter of the SEC appeal and an impending trial slated for the first half of 2024 are fostering an air of skepticism among the investor community. Despite the much-needed legal clarity provided by the recent summary judgment, a cloud of uncertainty still hangs over XRP’s trajectory. The forthcoming SEC appeal and the looming trial timeline have combined to cast doubt on the cryptocurrency’s immediate future. The ripple effect of these uncertainties is palpable as investors remain cautious about diving back into the XRP market. Related Reading: Worldcoin Meltdown: 50% Crash Caused By Mounting Data Privacy Paranoia XRP Bearish Sentiment Prevails Price analysis indicates that the prevailing bearish sentiment pervading the broader cryptocurrency market is acting as a significant impediment to XRP’s upward breakout. Santiment’s Network Value to Transaction Volume (NVT) ratio, which gauges the relationship between a blockchain network’s transactional activity and its recent price performance, reveals the extent to which bearish undercurrents are hampering XRP’s ascent. XRP price action in the daily chart. Source: Coingecko As of now, XRP’s price hovers around $0.513, marking a decline of 2.8% over the last 24 hours. The past week has seen the cryptocurrency grappling with losses amounting to 1.6%, CoinGecko data shows. The struggle to break through the $0.55 resistance level seems to mirror the broader market sentiment, reflecting the challenges that lie ahead. XRP market cap currently at $27.1 billion. Chart: TradingView.com A Glimmer Of Positivity Coinalyze’s data presents a somewhat brighter aspect. XRP’s funding rates turned green on August 25, signifying an improved stance. Moreover, the Open Interest (OI) rates, which indicate the total number of outstanding derivative contracts, have risen from approximately $340 million to surpass $360 million. This increase could signal growing interest among traders and investors, adding a dash of optimism to the otherwise cautious outlook. Source: Coinalyze In addition, seasoned crypto investor Austin Hilton offers a contrarian view, suggesting that XRP is poised for a significant 20% breakout in the short term. Hilton points to various indicators and fundamental factors underpinning his projection. Related Reading: The Great Bitcoin Comeback: Will Alpha Coin Retake $28,000 Before August Ends? Notably, his argument centers around a Tradingview indicator that tracks momentum shifts on the daily timeframe, helping traders determine optimal entry and exit points. XRP’s journey forward remains intricate, marked by legal battles, market sentiment, and technical indicators. As the cryptocurrency navigates these multifaceted challenges, investors and enthusiasts alike eagerly await the next chapter in XRP’s tumultuous saga. (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk). Featured image from LinkedIn

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Bitcoin (BTC) is currently marked by cautious sentiments as the Crypto Fear and Greed Index holds steady within the fear zone, scoring 39 out of 100 and showing a slight increase from the previous day. This sentiment reflects the prevailing uncertainty in the cryptocurrency realm. Amidst this backdrop, Bitcoin’s price trend takes center stage, influenced by the evolving dynamics of the market. Related Reading: Shiba Inu Nears Make-Or-Break Resistance Barrier – What Awaits Traders? Zooming in on the price action reveals a distinct pattern on the 4-hour timeframe. Bitcoin’s price, guided by a falling channel pattern, traces a consistent downtrend, oscillating between two parallel trendlines. This price movement hints at the formation of a well-recognized bullish reversal pattern, known as the falling parallel channel. At its current valuation of $25,877 according to CoinGecko, Bitcoin experienced a minor 0.6% dip in the last 24 hours and a marginal 0.3% decline over the past week. Despite these fluctuations, the price behavior strikingly emulates the falling parallel channel, suggesting the potential for a shift in momentum. Deciphering Bitcoin Falling Parallel Channel The falling parallel channel is a technical pattern often observed during a downtrend. It features two parallel trendlines encompassing the price action within a defined range. The lower trendline provides a support level, while the upper trendline acts as resistance. This pattern typically indicates a possible trend reversal, with a breakout above the upper trendline indicating an imminent bullish recovery. For Bitcoin, a significant breakout involving a 4-hour candle closure above the upper trendline could trigger the anticipated bullish bounce. This potential surge, according to price analysis, has the capacity to propel prices upwards by approximately 8%, leading to a retest of the $28,500 resistance.  However, prudence remains paramount as the overarching trend still displays negative undertones. Traders and cryptocurrency holders are urged to proceed cautiously at this resistance point, as the potential for sellers to regain bearish momentum persists, possibly resulting in an extended corrective phase. Bitcoin (BTC) is currently trading at $25.928. Chart by TradingView.com Understanding The Fear And Greed Index’s Significance In a sentiment-driven market, the Crypto Fear and Greed Index holds substantial importance. It offers valuable insights into the collective psychological state of investors and traders, shedding light on their overall outlook. A prolonged presence within the lower spectrum, exemplified by the current fear score of 39/100, underscores the prevailing apprehension and uncertainty among market participants. This underscores the need for judicious decision-making amidst the interplay of technical patterns and market sentiment. Related Reading: Worldcoin Meltdown: 50% Crash Caused By Mounting Data Privacy Paranoia The sustained position of the Crypto Fear and Greed Index within the fear zone, coupled with Bitcoin’s price dynamics marked by the falling parallel channel, underscores the intricate interplay of forces within the cryptocurrency market. As traders closely monitor the potential breakout and its potential repercussions, exercising caution remains pivotal in navigating this intricate landscape. (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk). Featured image from Makersplace

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