Altcoin Roundup: 3 metrics that traders can use to effectively analyze DeFi tokens

DeFi presents a wealth of opportunity for investors, but there are also risks. Here are three metrics investors use to analyze decentralized finance tokens and their associated protocols.

Much to the chagrin of cryptocurrency proponents who call for the immediate mass adoption of blockchain technology, there are many “digital landmines” that exist in the crypto ecosystem such as rug pulls and protocol hacks that can give new users the experience of being lost at sea. 

There’s more to investing than just technical analysis and gut feelings. Over the past year, a handful of blockchain analysis platforms launched dashboards with metrics that help provide greater insight into the fundamentals supporting — or the lack thereof — a cryptocurrency project.

Here are three key factors to take into consideration when evaluating whether an altcoin or decentralized finance (DeFi) project is a sound investment.

Check the project’s community and developer activity

One of the basic ways to get a read on a project is to look at the statistics that show the level of activity from the platform’s user base and developer community.

Many of the top protocols in the space offer analytics that track the growth in active users over time. On-chain dashboards like Dune Analytics offer more granular insights into this metric such as the following chart showing the daily new users on the Olympus protocol.

Olympus daily new users. Source: Dune Analytics

Other pertinent data points to consider when it comes to evaluating community activity include the average number of active wallets on a daily, weekly and monthly basis. Investors should also look at the number of transactions and volumes transacted on the protocol, as well as social media metrics such as Twitter mentions that can help with gauging investors’ sentiment about a particular project.

Alert systems like Cointelegraph Markets Pro provide up-to-date notifications on a project’s Twitter mention volumes and unusual changes in trading volume that can be an early sign that a cryptocurrency is turning bullish or bearish.

CT Markets Pro twitter and trading volume dashboard. Source: Cointelegraph Markets Pro

Regarding project development and developer activity, GitHub has been the go-to place for learning about upcoming upgrades, integrations and where the project is in its roadmap.

If a protocol is boasting about “soon to be released” features but showing little ongoing development or commits being submitted, it might be a sign to steer clear until the activity is better aligned with the claims.

On the other hand, spotting an under-the-radar project with steady development activity and a committed user base could be a positive sign.

Look for steady increases in total value locked

A second metric to look at when assessing the overall strength of a project is the sum of all assets deposited on the protocol, otherwise known as the total value locked (TVL).

For example, data from Defi Llama shows that the total value locked on the DeFi protocol DeFiChain (DFI) has been rising lately following a major protocol upgrade, with the TVL hitting new all-time highs on several days so far in December. This signals that momentum and interest in the project are increasing.

Total value locked on DeFiChain. Source: Defi Llama

DeFi aggregators like Defi Llama and DappRadar allow users to dive deeper into the data and look at the statistics for different blockchain networks such as the TVL on the Ethereum Network or Binance Smart Chain, as well as by individual projects like Curve and Trader Joe.

Protocols with a higher TVL tend to be more secure and trusted by the community, while projects that rank lower on the list generally carry more risk and tend to have less active communities.

Related: Point of no return? Crypto investment products could be key to mass adoption

Identify who the majority token holders are

Other factors to take into consideration are the benefits that token hodlers receive for holding and being active in the community. Investors should also look into the manner in which the token was launched and who the dominant token holders currently are.

For example, SushiSwap allows users to stake the native token SUSHI on the platform to receive a portion of the exchange fees generated, whereas Uniswap, the top decentralized exchange (DEX) in DeFi, currently offers no such feature.

While other factors like trading volume and daily users have made Uniswap a legitimate investment for many holders, some traders prefer to hold SUSHI because of its revenue-sharing model and multichain trading capabilities.

On the flip side, caution is warranted when excessive yields are offered for low liquidity, anonymously-run protocols with little community activity because this can be the perfect setup for catastrophic losses. In DeFi, these are called rug pulls, and typically they occur after a large amount of money has been deposited onto smart contracts controlled by a single anonymous party.

Examining the token distribution for the protocol, as well as keeping an eye on the percentage of tokens allocated to the developers and founders vs. the tokens held by the community can give some useful signal on whether a platform could fall victim to a rug pull or the whimsy of mercenary capital.

If most of the available supply is held by the creators and backers, there is always going to be a chance that these tokens will later be sold at market rate if or when early investors choose to exit their position.

Want more information about trading and investing in crypto markets?

  • TerraUSD (UST) adoption backs LUNA’s ascension to a new all-time high
  • Binance CEO reveals one key factor for token listings
  • DeFi: Who, what and how to regulate in a borderless, code-governed world?
  • Animoca Brands’ treasury increased in value by 5X over two months
  • 3 reasons why DeFiChain (DFI) price has gained 60% in December

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Analysts say Bitcoin’s open interest wipeout ‘will give way to further upside’

Bitcoin’s drop to $42,000 obliterated its open interest and liquidated a large swath of leveraged traders, but analysts say OI resets typically provide great buying opportunities.

The weekend is upon us and fear remains the dominant short-term sentiment in the cryptocurrency market. Earlier today Bitcoin (BTC) price dropped to $47,250 and investors are biting their nails after data from the U.S. consumer price index (CPI) shows inflation reaching a forty-year high at 6.8%.

Data from Cointelegraph Markets Pro and TradingView shows that a midday push by bulls to reclaim the $50,000 support level was handily defeated and sellers sent the price back below $48,000 which could possibly force another daily lower high for the top-ranked cryptocurrency. 

BTC/USDT 4-hour chart. Source: TradingView

With the prospect of a major run up in price to end the year all but dashed, traders have shifted their attention to managing risk and identifying the best levels to buy dips. Here’s a look at what analysts are saying about Bitcoin’s outlook heading into 2022.

Open interest wipeout “will give way to further upside”

As seen in previous instances where the price of BTC saw a rapid decline, there has been a significant decrease in the open interest (OI) for BTC on derivative exchanges as highlighted in a recent report from Delphi Digital. The report noted a 50% decrease in OI after this latest market downturn as over-leveraged longs positions were decimated.

BTC futures open interest vs. BTC price. Source: Delphi Digital

While the experience was likely an unpleasant one for traders who were overexposed, the analysts suggested that deleveraging events like this are beneficial over the long term and will often “give way to further upside” as the previous froth and over-exuberance are replaced with a more measured trading environment.

The sharp reduction in OI over the past month may also be signaling that the short-term bottom for BTC may be in according to Delphi Digital, and its possible that the current sell-off could be reaching the point of exhaustion.

Delphi Digital said,

“The 30-day % decline in OI for BTC has reached levels that previously signaled a bottom was forming (or wasn’t too far out).”

Range-bound trading for BTC until 2022

According to Ben Lilly, co-founder of Jarvis Labs, the price of Bitcoin is likely “to stay in this trading range until at least the end of the month,” mainly due to the fact that Dec. 31st marks “the largest open interest in terms of open contracts.”

Lilly highlighted previous instances of major drawdowns resulting in a high number of liquidations as part of the reasoning and he explained that the market has typically taken some time to build momentum after these pullbacks.

BTC futures open interest. Source: Espresso

Lilly said,

“Luckily, for anybody wanting to accumulate on a weekly basis or at the bottom portion of the current trading range, this is a great setup.”

Related: Trader who called 2017 Bitcoin price crash raises concerns over ‘double top’

Should traders look for continuation of the uptrend?

A final bit of insight was provided by analyst and pseudonymous Twitter analyst ‘Rekt Capital’, who posted the following chart of BTC price trading between two key exponential moving averages.

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

“Overall, BTC is consolidating inside the two key EMAs right now. Just like in May 2021. And just like in May… Continued price stability and consolidation in between these two EMAs will precede new macro uptrend continuation.”

The overall cryptocurrency market cap now stands at $2.238 trillion and Bitcoin’s dominance rate is 40.7%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

FLUX, SFP and Badger DAO surge even as Bitcoin price falls to $47K

BTC price continues to soften, but new exchange listings and protocol upgrades provided a much-needed boost for FLUX, SFP and BADGER.

The year-long mantra that the crypto market would see a blow-off top in December has proven to be a dud thus far and for the last week, most cryptocurrencies have been under sell pressure and Bitcoin (BTC) is encountering difficulty in trading above $47,000. 

That said, it’s not all bad news for cryptocurrency holders on Dec. 10 because several altcoins have managed to post double-digit gains due to new exchange listings and protocol upgrades.

Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

Data from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24-hours were Flux (FLUX), SafePal (SFP) and Badger DAO (BADGER).

FLUX benefits from the “Binance bump”

Flux is a GPU mineable proof-of-work protocol aimed at creating a scalable decentralized cloud infrastructure for Web 3.0 applications.

VORTECSâ„¢ data and the NewsQuakesâ„¢ alerts from Cointelegraph Markets Pro began to detect a bullish outlook for FLUX on Dec. 9, prior to the recent price rise.

The VORTECSâ„¢ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECSâ„¢ Score (green) vs. FLUX price. Source: Cointelegraph Markets Pro

As seen in the chart above, the NewsQuakeâ„¢ system put out an alert for FLUX on Dec. 9, less than an hour before the price began to spike 150% over the next day.

The announcement that helped spark the rapid price rise in FLUX was a notification that Binance would be list FLUX token on its platform. Shortly after this announcement, FLUX price rallied to a new all-time high at $4.01.

SafePal adds support for nine new networks

The SafePal project is a cryptocurrency hardware and software wallet solution for investors who hold assets on the Ethereum, Binance Smart Chain and Tron networks.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $1.55 on Dec. 6, the price of SFP has climbed 45.84% to hit a daily high at $2.27 on Dec. 10 as its 24-hour trading volume spiked 50% to $158 million.

SFP/USDT 4-hour chart. Source: TradingView

The building strength for SFP comes as the project released an updated version of its wallet app and added support for Cardano, Nervos Network, Avalanche, Fantom, HECO Chain, Songbird, BOBA Network, Optimism and Arbitrum.

Related: Trader who called 2017 Bitcoin price crash raises concerns over ‘double top’

Badger DAO prepares to reactivate its smart contracts

Badger DAO is an open-source decentralized autonomous organization focused on building products and infrastructure that increase the utility of Bitcoin in the decentralized finance landscape.

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for BADGER on Dec. 9, prior to the recent price rise.

VORTECSâ„¢ Score (green) vs. BADGER price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for BADGER spiked into the green zone and hit a high of 75 on Dec. 9, around three hours before the price increased 48% over the day.

The positive price action for BADGER comes as the protocol tries to bounce back from a Dec. 2 exploit that resulted in the halting of the project’s smart contracts.

The overall cryptocurrency market cap now stands at $2.218 trillion and Bitcoin’s dominance rate is 40.7%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Why the world’s largest museum is embracing NFT technology

The head of the contemporary art department at the State Hermitage reveals his vision of the future of NFT art.

Eventually, all museums will build their digital copy in the metaverse, according to Dmitry Ozerkov, the head of the contemporary art department at the State Hermitage Museum. 

Ozerkov is currently developing the “Celestial Hermitage”, a digital version of the iconic Russian museum, which will be exhibiting nonfungible (NFT) art. 

“We are all moving into the digital era and our digital twin will be following us everywhere”, Ozerkov told Cointelegraph in an exclusive interview. 

The State Hermitage in Saint Peterburg, Russia, is the largest museum in the world by gallery space with around 3 million works of art.

In September 2021, the museum took its first steps in the NFT world by selling five digital reproductions of its most famous masterpieces in the form of NFTs raising almost $450,000.

In November, the Hermitage launched its first entirely digital exhibition, titled ‘The Ethereal Aether,” where 38 NFTs are showcased within a digital reconstruction of the museum.

Unlike the physical Hermitage, where visitors can only look at the works on display, the virtual exhibition allows visitors to interact with the NFTs on display. 

“You can pass through these doors without touching anything, while in the virtual world, you can do anything: you can play with artworks, you can make them interactive, you can add data to it”, explained Ozerkov. 

The exhibition can be visited online for free until December 10th.

As pointed out by Ozerkov, the interest of the Hermitage in NFTs transcend market dynamics and seeks to investigate the artistic value that NFT can bring into the contemporary art world.

“My idea was to take a selection of existing works out of the market and to put them into the museum and to have a look: what remains in them as art? Is there any art there or we like, what we value in them is only money?”.

Watch the full interview on our YouTube channel and don’t forget to subscribe!

Bitcoin jumps past $50K as US CPI data shows highest inflation in nearly 40 years

CPI data is in line with forecasts but still shows a huge spike, while the long-term consequences for Bitcoin are far from universally positive.

Bitcoin (BTC) surged over $1,000 in seconds on Dec. 10 as the United States Consumer Price Index (CPI) data showed inflation in November was worse than anticipated. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

November CPI conforms to expectations

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD running to $50,132 on Bitstamp as the data became public Friday.

An hour before the Wall Street open, the pair had already hit its highest level in over 24 hours.

CPI had been hotly awaited by both crypto and traditional finance analysts alike, with opinions favoring at least a 6.7% year-on-year increase for November, and even over 7%. In the event, the numbers broadly conformed to conservative guesses, reaching 6.8%.

The results nonetheless mean that inflation on CPI is at its highest in almost 40 years.

U.S. CPI data chart. Source: U.S. Bureau of Labor Statistics

Still rangebound

Bitcoin’s short-term successes did not last long, with BTC/USD back under $50,000 at the time of writing.

Related: Bitcoin could hit $100K, gold $2K in 2022 thanks to ‘deflationary forces’ — Bloomberg analyst

The largest cryptocurrency remained trapped in a range with no visible upside bias, this requiring a break above $53,600 to change, analysts previously argued. 

Altcoins were unmoved by the CPI event, with Ether (ETH) still down 1.3% over the past 24 hours.

Out of the top 10 cryptocurrencies by market capitalization, only Terra (LUNA) managed to eke out a small gain on the day.

Bitcoin hovers near $48K ahead of fresh key US inflation data

Inflation marks just the start of some key macro decisions that could keep Bitcoin down for months, warnings indicate.

Bitcoin (BTC) recovered above $48,000 on Dec. 10 after another fall took BTC/USD to lows of $47,350 overnight.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Taper tantrums

Data from Cointelegraph Markets Pro and TradingView showed the pair orbiting $48,300 at the time of writing as markets braced for November’s Consumer Price Index (CPI) readout.

As Cointelegraph reported, economists tip this month’s year-on-year inflation data to beat October at 6.7%.

While last month’s shock CPI news fuelled an uptick across Bitcoin and crypto assets, caution among analysts prevailed ahead of Friday’s figures.

“At this point I think the CPI data is moot. Markets have priced it in unless it’s to the extreme end,” popular trader Pentoshi argued on Twitter.

He added that the “real” potential market mover from the macro side should be next week when the United States Federal Reserve’s Federal Open Market Committee gives indications over the central bank’s asset purchase taper policy.

Increasing the rate of tapering — decreasing asset purchases — would pressure risk assets, commentators say, leading to reduced performance for Bitcoin. For Arthur Hayes, former CEO of derivatives platform BitMEX, this would only reverse once the Fed returns to “business as usual.”

“For those who are deciding whether to allocate more fiat into crypto, it pays to wait. I don’t see money getting any free-er or easier. Therefore, it pays to sit on the sidelines until the dust settles after a March 2022 or June 2022 Fed rate hike,” he wrote in his latest blog post on Thursday.

“Watch out for a puke fest in risk asset prices should the Fed hike, followed by a quick resumption of zero interest rate policy and aggressive bond purchases. When the Fed signals a return to business as usual, then it’s time to back up the truck.”

U.S. inflation chart. Source: Trading Economics

“Bottoms take time”

Such a prognosis ties in with existing medium-term forecasts for Bitcoin putting its cycle top further on in 2022 — not this month, as previously slated.

“Bottoms take time. Unfortunately, they do. And we’re getting close to it with Bitcoin,” he advised Twitter followers.

“After that, we’ll get another big cycle in 2022. All good.”

He added that compared to 2017, the last post-halving bull run year, Bitcoin was “probably” more toward the beginning of its peak phase than the end of it.

Meanwhile, separate data, which has shown Bitcoin copying price action from 2017 almost to the day, faces a key test this month.

Data shows pro traders are currently more bullish on Ethereum than Bitcoin

ETH has outperformed BTC by more than 230% this year and derivatives data suggests traders believe the altcoin has a lot more upside.

Most traders have noticed that Ether (ETH) price has seriously outperformed Bitcoin (BTC) for months now and the ETH/BTC ratio has rallied more than 230% in 2021 and recently hit a new high at 0.089 BTC on Dec. 9. 

ETH/BTC pair at Coinbase. Source: TradingView

To put things in perspective, Ether’s $490 billion market capitalization currently represents 54% of Bitcoin’s $903 billion. This ratio finished 2020 at a mere 15%, so it is safe to conclude that some ‘flippening’ has occurred. It might still be far from what Ethereum-maximalists imagined, but it is still quite a respectable run.

Instead of analyzing the rationale for the move or, even worse, predicting the outcome based on some loose expectations, analysts should explore the market structure of each coin individually.

For example, is the futures’ market premium facing a similar trend on both coins and how does the pro traders’ long-to-short ratio compare? These are the most relevant metrics to determine whether a movement has the strength to continue.

The futures premium favors Ether

Quarterly futures are the whales and arbitrage desks’ preferred instruments but because of their settlement date and the price difference from spot markets, they might seem complicated for retail traders. However, these quarterly contracts’ most notable advantage is the lack of a fluctuating funding rate.

These fixed-month instruments usually trade slightly above spot market prices, indicating that sellers are requesting more money to withhold settlement longer. Consequently, futures should trade at a 5% to 15% annualized premium in healthy markets. This situation is known as “contango” and is not exclusive to crypto markets.

Bitcoin and Ether futures basis. Source: Laevitas.ch

After comparing both charts, we can see that Bitcoin futures trade at an average 2.6% annualized premium for March 2022 and 4.4% for June 2022. This compares to Ether’s 2.9% and 5%, respectively. As a result, it becomes clear that whales and arbitrage desks are demanding a larger premium on Ether and this is a bullish indicator.

Bitcoin’s long-to-short ratio declined

To effectively measure how professional traders are positioned, investors should monitor the top traders’ long-to-short ratio at leading crypto exchanges. This metric provides a broader view of traders’ effective net position by gathering data from multiple markets.

It is worth noting that exchanges gather data on top traders differently because there are multiple ways to measure clients’ net exposure. Therefore, any comparison between different providers should be made on percentage changes instead of absolute numbers.

Bitcoin top traders long-to-short ratio. Source: Coinglass

The long-to-short ratio for top Bitcoin traders currently stands at a 1.21 ratio average, down from the 1.39 on Dec. 5. Compared to the 1.59 figure from two weeks ago, this signals that buyers (longs) reduced their exposure by 24%. Once again, the absolute number has less importance than the overall change in the time frame.

Ether top traders long-to-short ratio. Source: Coinglass

Meanwhile, Ether whales and arbitrage desks showed a positive sentiment change from Dec. 5 after the long-to-short moved to 1.16 from 1.0. When comparing the average data from Nov. 25, top Ether traders’ long-to-short have been cut by 20% from 1.43.

Data shows Ether traders are more confident than Bitcoin traders

Current derivatives data favors Ether because the asset currently shows a higher futures basis rate. Furthermore, the improvement on the top traders’ long-to-short since Oct. 5 signals confidence at a delicate period when ETH price is down 16% from its $4,870 all-time high.

Bitcoin investors may be lacking confidence as its price stands 31% below the $69,000 all-time high on Nov. 10. There’s no way to know whether this is a cause or consequence. Still, judging by the futures premium and long-to-short data Ether seems to have enough momentum to keep outperforming.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Analysts say Bitcoin’s behavior at $47.5K mirrors the pre-breakout 2017 market

Bitcoin price succumbed to another wave of selling, but analysts say the current market structure at $47,500 mirrors the early bull-market from 2017.

Crypto markets tanked again after Bitcoin (BTC) price slipped to $47,500 on Dec. 9, but most analysts agree that the price is destined to remain in the $40,000 to $55,000 range until the holiday season has passed.

BTC/USDT 4-hour chart. Source: TradingView

Data from Cointelegraph Markets Pro and TradingView shows that the early morning defense of the $50,000 support level was overwhelmed by sellers and according to independent market analyst Ben Lilly, bids at underlying support levels are not inspiring much confidence from bulls.

Here’s a look at what analysts and traders are saying about the recent price action and whether BTC’s current downside is a signal that a bear market is in the making.

Bulls aim to hold the $47,000 support

Insight into the weekly price action was provided by analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart, which outlines the levels of support and resistance that are currently relevant to the price action for BTC.

BTC/USDT 1-week chart. Source: Twitter

Rekt Capital said,

“BTC is threatening to lose this red support but no confirmed breakdown. Below red is the orange area, a strong support which ended two -25% corrections in February and September. Generally red needs to hold to avoid a drop to orange. Still holding here until further notice.”

Full-time trader and Cointelegraph contributor Michaël van de Poppe is also keeping an eye on the price action around these important support levels and posted the following chart outlining the “make it or break it” support level in the low $40,000s.

BTC/USD 1-day chart. Source Twitter

Poppe said,

“Chop, chop, chop it is for Bitcoin. A crucial area to hold is that region we’ve touched already at $42K. The close was above $46K–47K and I’d prefer not to lose that at all.”

Pennant formation hints at an eventual bounce

Further analysis of the weekly price action for BTC was provided by analyst and pseudonymous Twitter user TechDev, who posted the following tweet outlining the formation of pennants, which have proven to be followed by bullish breakouts in the past, on the Bitcoin chart.

As expressed by TechDev at the end of his tweet, nobody ever said that making money and holding firm on the long-term outlook for BTC was easy, and the biggest rewards are reserved for those that can persevere during times of struggle like that which the market is currently facing.

Related: Bitcoin could hit $100K, gold $2K in 2022 thanks to ‘deflationary forces’ — Bloomberg analyst

Bitcoin price action resembles the 2017 market

A final bit of insight was offered by the crypto trader and pseudonymous Twitter user Nunya Bizniz, who posted the following chart comparing the price action for BTC during the 2017 bull market cycle to the current chart and hinted at a possible breakout approaching for Bitcoin in the near future.

2017 BTC/USD price action vs. present-day BTC/USD price action. Source: Twitter

Nunya Bizniz said,

“Price action at a prior ATH that has been most similar to now was in 2017. Maybe?”

While what happens with Bitcoin price in the near future remains to be seen, it’s looking as if the handful of $100,000 predictions by the end of 2021 will fall short and possibly not occur until sometime in 2022, if at all.

The overall cryptocurrency market cap now stands at $2.25 trillion and Bitcoin’s dominance rate is 40.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin, Ethereum Mount Restoration as Crypto Markets Rebound

The main cryptocurrency by market capitalization, Bitcoin, is mounting a tentative recovery which is seen it climb by 4% around the previous 24 hrs. Ethereum, the 2nd-most significant cryptocurrency, has mounted a much more impressive 6.5% rally about the exact same time period. 

This bullish motion will come just days just after the business confronted a flash crash around the weekend, shaving around $400 billion of the complete market, in accordance to CoinGecko. 

On Friday, Bitcoin fell from much more than $57,000 to near the $46,000 level the up coming day. Likewise, Ethereum $4,600 to $3,800. Neither cryptocurrency has recouped all of its losses, but the broader current market has rebounded some on Tuesday.

Bitcoin is again investing around $51,000 and Ethereum is holding continual at about $4,350.

Together with the two foremost cryptocurrencies, Solana, Cardano, Polkadot, and Terra have also recovered some of the floor dropped in the crypto crash. Terra’s native LUNA token even managed to hit an all-time superior on Sunday even though the rest of the sector slumped.

Lots of industry watchers cited renewed coronavirus fears, amid the ongoing spread of the Omicron variant all over the globe. Standard markets ended up also deeply afflicted, with the S&P 500 also dropping by just beneath 2%. 

The crypto business was hit particularly challenging, in accordance to Sam Trabucco, CEO and trader at Alameda Research, due to the reduced liquidity in the current market at the time of the crash. 

“Part of the purpose [the crash] was however substantial was the very low liquidity,” he tweeted on Saturday. “On many exchanges, [Bitcoin] acquired sub-$30k for a moment! And that was mainly because of how minor liquidity sits on the ebook through tremendous-off-several hours.”

A number of attributes of this transfer ended up vital:
– the cost of BTC, for occasion, was nearing in on a longtime local minimum — sub-$53k hadn’t transpired due to the fact early October, the similar day it crossed $50k
– it was late Friday U.S. / early weekend Asia, among the the least expensive-liquidity situations pic.twitter.com/UaGTDqHdC1

— Sam Trabucco (@AlamedaTrabucco) December 4, 2021

Low liquidity, additionally tremendous leverage that has develop into a hallmark of crypto, led to the weekend’s double-digit tumble. 

Due to the fact then, nonetheless, the complete capitalization of all crypto has bounced back more than 7%, hovering all-around $2.5 trillion. 

This is nevertheless all-around $500 billion limited of the industry’s all-time higher. 

The post Bitcoin, Ethereum Mount Restoration as Crypto Markets Rebound appeared first on Soltimes.

3 reasons why DeFiChain (DFI) price has gained 60% in December

In the last two weeks, DFI price bounced off its swing low and a number of data points suggest the project’s fundamentals will continue to improve.

Decentralized finance (DeFi) offers one of the most widely applicable use-cases for distributed ledger technology and today it is one of the main avenues for the wider adoption of blockchain technology.

Last week, as the wider crypto market corrected and Bitcoin (BTC) dropped by 22%, DeFiChain (DFI) bucked the trend and rallied 76% to establish a new high at $5.70 on Dec. 6 as its 24-hour trading volume surged from an average of $3.6 million to $24.3 million.

DFI/USDT 4-hour chart. Source: TradingView

Three reasons for the price breakout for DFI include the launch of decentralized assets on the DFI mainnet, a surge in transactions and users on the network and an increase in the total value locked on the protocol.

Traders pile into decentralized stocks and cryptocurrencies

The biggest source of momentum for DFI in recent weeks has been the launch of decentralized assets on the DeFiChain network and staking options for holders.

Users of the platform now have access to multiple pools that include large-cap cryptocurrencies like Bitcoin and Ether, as well as synthetic versions of popular stocks and indices, including pairs for Tesla (TSLA), Apple (APPL) and the S&P 500 (SPY). In addition to having exposure to these assets, stakers also benefit from the higher-than-average yields available on the platform.

DeFiChain DEX pool pairs. Source: DeFi Scan

Other d-asset options available to users include Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK) and the iShares 20+ Year Treasury Bond ETF (TLT).

Transaction volumes surge

Another reason for the strong performance seen from DFI has been an increase in transactions on the network following the release of decentralized assets.

Daily DeFiChain transaction count. Source: DeFiChain Analytics

The surge in network activity is largely the result of the new use cases made possible by the launch of decentralized assets, including the creation of assets, liquidity mining and arbitrage trading.

The added features have also helped to attract new users to the DFiChain ecosystem, with the number of unique wallets holding DFI reaching a new record high of 42,555 on Dec. 8.

Unique addresses holding DFI. Source: DeFiChain Analytics

Related: Nasdaq to provide price feeds for tokenized stock trades on DeFiChain

Total value locked hits a new all-time high

DFI has also seen a steady increase in total value locked on the DeFiChain protocol, which is now at an all-time high of $1.83 billion according to data from Defi Llama.

Total value locked on DeFiChain. Source: Defi Llama

The spike in value locked coincides with the launch of decentralized assets on the network and it’s claer that users rushed to deposit funds to gain access to the high yield opportunities available to liquidity providers.

Aside from the staking features offered on the DeFiChain DEX, larger DFI holders with at least 20,000 DFI also have the option of locking their DFI tokens up in order to run a masternode on the network and earn rewards in return for helping to verify transactions and secure the blockchain.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.