Autor Cointelegraph By Jordan Finneseth

Time to accumulate? 5 sectors to watch during crypto winter

Time to accumulate? 5 sectors to watch during crypto winter

Uverejnil používateľ | júl 15, 2022 |

It’s weird to think that anyone could look forward to downturns in the crypto market, but that is precisely the position held by many developers and project creators who enjoy the low-pressure environment that exists during a bear market. As the saying goes, bear markets are for building, and now is one of the best times to survey the landscape to see which sectors of the market are most active in designing the platforms that will soar to new heights in the next bull cycle. Here’s a look at five sectors of the blockchain ecosystem that may present some of the best opportunities for accumulation while prices are low and demand is non-existent. Layer-1 protocolsLayer-1 (L1) protocols like Bitcoin and Ethereum form the foundation that much of the cryptocurrency ecosystem is built upon and enable most of the other sectors of the market to exist. That being said, there are not currently many options available for launching other protocols on the Bitcoin network and Ethereum has well-known limitations in terms of scalability that can lead to high transaction costs and slow processing times. Due to these factors, there remains a significant opportunity for other L1 protocols to establish themselves and carve out a good slice of market share. The total revenue generated by a protocol is one metric that can be used to determine which networks see the most usage. Cumulative total revenue for the top L1 chains over the past 180 days. Source: Token TerminalAccording to data from Token Terminal, the top five L1 protocols in terms of total revenue over the past 180 days, excluding Bitcoin and Ethereum, are BNB Smart Chain (BNB), Avalanche (AVAX), Helium (HNT), Fantom (FTM) and Solana (SOL). Layer-2 protocolsAs mentioned above, the Ethereum network has limitations in terms of scalability that won’t be solved during the upcoming Merge, leaving an opening for layer-2 protocols to fill the need by helping to reduce the activity that occurs directly on the Ethereum blockchain. According to L2Beat, which tracks the stats on the top Ethereum L2s, Arbitrum is ranked number one in terms of total value locked (TVL), followed by Optimism and dYdX. Top 8 L2 networks by total value locked. Source: L2BeatOne network that was curiously left off the list provided by L2Beat, but remains the most highly adopted L2 in terms of active wallets and protocols launched is Polygon (MATIC), which currently has a TVL of $1.59 billion, according to data from DefiLlama. As for the Bitcoin network, the main L2 solution that is currently seeing increased inflows is the Lightning Network, but there is no token involved with the protocol. Instead, users can opt to run a node if they want to support the network and as well as earn passive income. GamingThe gaming sector of the cryptocurrency ecosystem has proven to be one of the more resilient in terms of keeping users engaged during the current crypto winter. The emergence of play-to-earn games like Axie Infinity (AXS) helped shine a spotlight on the possibilities of blockchain-based gaming during the bull cycle of 2021 and has led to an offshoot of numerous “-to-earn” type protocols such as move-to-earn and learn-to-earn.Data from DappRadar shows that some of the top games in terms of active users include Alien Worlds, Splinterlands and Farmers World, which all operate on the WAX network, while Axie Infinity is the top game in terms of the value of assets held in its smart contract. Top six games in terms of currently active users. Source: DappRadarThere are also a host of other games that are still in development but nevertheless attracting a lot of attention, including Illuvium and Aavegotchi, as well as tokens that represent gaming ecosystems such as Enjin Coin (ENJ), Gala (GALA) and Ultra (UOS). Social platformsOne sector of the cryptocurrency landscape that has yet to really get established in a notable way but represents a good opportunity to help increase adoption is social engagement platforms similar to Twitter, Facebook or Reddit. Previous front runners in the social media landscape include Steem and its community-driven offshoot Hive, but neither protocol has really achieved widespread adoption to date.While no other protocols currently in operation have managed to crack the code that attracts a lot of users who stay engaged long-term, events in the wider world including the ongoing drama around Elon Musk’s purchase of Twitter show that social media remains in need of an openly accessible community-focused platform. Related: 34% of gamers want to use crypto in the Metaverse, despite the backlashMetaverse and NFT launchpadsA final sector worth keeping an eye on due to its widespread appeal with mainstream society including efforts that are already underway to integrate it into daily life is the Metaverse. To help simplify matters, a basic definition of the Metaverse is a virtual reality representation of all the data and interactions that occur on the internet, built on top of blockchain technology. While the concept of the Metaverse is still in its infancy, it’s a popular topic of conversation around the crypto sphere and is already attracting large investments from some of the most well-known and recognizable brands in the world. 10 top companies investing/building in the Metaverse: 1. Microsoft 2. Meta3. Tencent4. Nike5. Alibaba6. Accenture7. Adidas8. JP. Morgan 9. NVIDIA10. Roblox See the future. Plan ahead.#Metaverse #web3 #blockchain pic.twitter.com/5JgOl1dlE4— Upenyu (@AskUpenyu) February 16, 2022In addition to the Metaverse, platforms that specialize in the creation and launch of nonfungible tokens (NFTs) are also worth paying attention to, as the NFT sector has been shown to be popular with the general public.Some of the most developed and adopted Metaverse and NFT platforms currently in operation include The Sandbox, which recently partnered with Playboy to launch a MetaMansion social game on the platform, as well as Decentraland and ApeCoin. Want more information about trading and investing in crypto markets?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.

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2018 Ethereum price fractal suggests a $400 bottom, but analysts say the merge is a ‘wildcard’

2018 Ethereum price fractal suggests a $400 bottom, but analysts say the merge is a ‘wildcard’

Uverejnil používateľ | júl 15, 2022 |

There’s no rest for the weary during a bear market, and the Crypto Fear and Greed index shows that investor sentiment has been stuck in a state of “extreme fear” for a record 70 consecutive days.As the market looks for a catalyst to reverse the trend, there is little on the horizon besides the Ethereum (ETH) Merge that seems capable of sparking a rally. If that is indeed the case, the market could continue to trend down or sideways until the tentative Merge date of September 19. Data from Cointelegraph Markets Pro and TradingView shows that Ether price remains sandwiched in the trading zone it has been trading in since June 13 and it is currently running into the upper resistance near $1,240. ETH/USDT 1-day chart. Source: TradingViewWith the Merge still a couple of months away and little else on the roadmap for Ethereum in the near term, here’s what analysts are saying to watch out for.Ether now trades above its moving averagesA short message of hope at this significant level of resistance was provided by futures trader Peter Brandt, who posted the following chart and simply stated “Maybe baby $ETH.”ETH/USD 1-day chart. Source: TwitterAdditional context to go along with Brandt’s observation was provided by crypto trader Albert III, who posted the following chart highlighting the fact that Ether is now trading above several key moving averages. ETH/USD 4-hour chart. Source: Twitter.The analyst said, “We got a bullish cross between 200 & 50 moving averages on 4h. Looking for more upside locally.”Ethereum’s Merge is the “wildcard”A more in-depth perspective for Ether moving forward was offered in the recent “ETH 30d returns outlook” report released by cryptocurrency research firm Jarvis Labs, which used the 30-day returns metric to “measure the short-term profit and loss of the aggregated market at a given time.”30-day returns for Ethereum. Source: Jarvis LabsAs shown on the chart above, the 30-day returns for Ether are now “moving towards 0% after being deeply negative since April,” which suggests that the market is getting more bullish as the Merge approaches. According to Jarvis Labs, instances when the 30-da returns dip below 0% during bull markets, indicate “prime buying opportunities,” while “flips above 0% are ideal selling opportunities” during bear markets. When compared to the Ether price action during Q4 of 2018 where it consolidated in the low $200 range before dipping to $82 in December, “a repeat of this fractal now would bring Ether to the $400 range by December 2022.”30-day returns for Ethereum. Source: Jarvis LabsAccording to Jarvis Labs, if this fractal does indeed replay itself, “all pumps up to the $1,700 level will trigger sell-offs for the next 1 year.”Jarvis Labs said, “Conversely, a flip of $1,700 from resistance back to support would be equal to summer 2020’s flip of ~$350 and could signal the start of a brand new bull run.”As a final word of caution, Jarvis Labs warned that while “short-term rallies to the $1,400–$1,700 range are possible,” traders should be careful as “they’re likely to be met by strong selling.”Related: ECB report likens PoW to fossil fuel cars, PoS to electric vehiclesEyeing the supply zone at $1,420The outlook for Ether in the near term was covered by analyst and pseudonymous Twitter user Crypto Tony, who referenced the following chart, outlining the next level of resistance to keep an eye on. ETH/USDT 4-hour chart. Source: TwitterCrypto Tony said, “I am looking for the gap to be filled above as [we] make our way to the next supply zone at $1,420.”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.

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DeFi’s downturn deepens, but protocols with revenue and fee sharing could thrive

DeFi’s downturn deepens, but protocols with revenue and fee sharing could thrive

Uverejnil používateľ | júl 15, 2022 |

At the moment, liquidity is hard to come by, but crypto traders and protocols still need inflow and revenue to remain functional.As the crypto winter drags on, savvy crypto investors have realized that one of the reliable sources of passive income that still exists can be found on protocols that generate revenue and share some of it with their respective communities. Platforms that earn real yield through useage fees are the obvious winner in the bear market, That mean perpetuals and options as they are profitable bear or bull. Thats why #GMX is hot, #snx fees up massively and #eth is just a no brainer.— Collingwood.lens (@Fraxima1ist) July 13, 2022Let’s take a look at some of the protocols that continue to thrive in the current down market. DeFi might be dead, but platforms with revenue will thriveData from Token Terminal shows revenue positive platforms are primarily the nonfungible token (NFT) marketplaces like LooksRare and OpenSea. Top dapps based on cumulative protocol revenue in the past 180 days. Source: Token TerminalAside from a few select protocols including MetaMask, Decentral Games, Axie Infinity and Ethereum Name Service, the majority of the remaining protocols with the highest revenue are decentralized finance platforms, showing that while DeFi is down, it’s not out of the game. Fee sharing helps to lure liquidityDeFi protocols and decentralized applications (DApps) that offer fee sharing to token holders and liquidity providers are also revenue positive.Historical view of crypto/web3 projects that generate fee revenue to their token holders.Protocol revenue market share leaders in ’21:Q1: MakerDAO Q2: PancakeSwapQ3: Axie InfinityQ4: Ethereum pic.twitter.com/zNRFnss7c4— Token Terminal (@tokenterminal) January 29, 2022

As the bear market continues to batter prices and eliminate unprofitable and poorly managed platforms, protocols that offer token holders passive income streams have a higher chance of enduring until the next bull market begins.Related: DeFi Summer 3.0? Uniswap overtakes Ethereum on fees, DeFi outperformsSynthetix (SNX) makes a comebackA good example of how fee sharing can help boost a token and DeFi protocol was recently seen with Synthetix (SNX), which made waves when it partnered with Curve Finance to create Curve pools for several of its Synths assets. Since the cross-chain collaboration was established, the protocol revenue for Synthetix has seen a tremendous increase that coincided with a rise in the price of SNX from $1.56 to its current price at $2.59. SNX daily price vs. protocol revenue in the past 180 days. Source: Token TerminalThe increase in revenue did not go unnoticed by crypto Twitter, which was quick to point out the rapid turnaround for the platform.$SNX @synthetix_io bypassed @AaveAave in daily fees Also, @SushiSwap @CurveFinance @MakerDAO combined. pic.twitter.com/w1dBVHL2YD— Wega (@William24931283) July 7, 2022

How it all plays out for Synthetix in the long run, is anyone’s guess. For now, the platform is demonstrating that generating revenue and sharing some of that revenue with token holders is one way to retain market share during a market downturn. 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.

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UNI, MATIC and AAVE surge after Bitcoin price bounces back above $20K

UNI, MATIC and AAVE surge after Bitcoin price bounces back above $20K

Uverejnil používateľ | júl 15, 2022 |

Crypto investors found cause for celebration on July 14 as the market experienced a positive trading session just one day after the Consumer Price Index (CPI) posted a June print of 9.1%, its highest level since 1981. Daily cryptocurrency market performance. Source: Coin360The move higher in the market wasn’t entirely unexpected for seasoned traders who have become familiar with a one to two-day bounce in asset prices following the most recent CPI prints. These traders also know there’s nothing to get too excited about as the bounces have typically been followed by more downside once people realize that the high inflation print is a negative development. Nevertheless, the green in the market is a welcome sight after the rough start to 2022. Top 5 coins with the highest 24-hour price change. Source: CoinMarketCapAccording to data from Cointelegraph Markets Pro and TradingView, the biggest gainers over the past 24-hours were Uniswap (UNI), Polygon (MATIC) and Aave (AAVE). Robinhood lists UNIUniswap, the top decentralized exchange by volume, saw its token price head higher on July 13 after hitting a low of $5.23. The token has since climbed 36% to hit a daily high of $7.11 on July 14 amid a 104% spike in its 24-hour trading volume to $449 million. UNI/USDT 4-hour chart. Source: TradingViewThe sharp turnaround in UNI price and trading volume comes as the popular brokerage firm Robinhood announced that the UNI token is now available to trade on the platform, exposing the asset to a large cohort of new buyers who don’t have accounts on other cryptocurrency exchanges. Disney news provides a boost for MATICPolygon is one of the top layer-two scaling solutions for the Ethereum network that offers a faster, lower-fee transaction experience for users and protocols. Data from Cointelegraph Markets Pro and TradingView shows that after briefly dipping to a low of $0.52 on July 13, the price of MATIC spiked 36% to hit a daily high at $0.707 on July 14 on the back of a 120% spike in its 24-hour trading volume. MATIC/USDT 4-hour chart. Source: TradingViewMATIC’s price increase follows an announcement that the protocol was the only blockchain selected by Disney to be part of its 2022 Accelerator Program. Interrupting the #GreenBlockchainSummit for some breaking news!We’re excited to be the only blockchain chosen to be a part of the Disney Accelerator program. https://t.co/LaGU4bhidi— Polygon – MATIC (@0xPolygon) July 13, 2022Related: Bitcoin analysts weigh sub-$17.5K dip after ‘weak’ BTC price bounceAave rallies on stablecoin developmentsAave, a populardecentralized finance platform, is a lending and borrowing protocol that currently holds $5.63 billion in total value locked (TVL), making it the second-ranked DeFi platform by TVL behind MakerDAO. Data from Cointelegraph Markets Pro and TradingView shows that over the past 24-hours, the price of AAVE has rallied 38.5% from a low of $67.10 to hit a daily high of $93 in the afternoon hours on July 14.AAVE/USDT 4-hour chart. Source: TradingViewAave sparked excitement within its community on July 7 when it revealed plans to release its own GHO stablecoin, which will be a collateral-backed stablecoin that is native to the AAVE ecosystem. 1/ Calling all GHOsts  We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.Read more below and discuss your thoughts for the snapshot (coming soon)!https://t.co/P7tHl9LbBe— Aave (@AaveAave) July 7, 2022

The overall cryptocurrency market cap now stands at $927 billion and Bitcoin’s dominance rate is 42.6%.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.

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3 reasons why Polygon (MATIC) is up 100%+ during a bear market

3 reasons why Polygon (MATIC) is up 100%+ during a bear market

Uverejnil používateľ | júl 14, 2022 |

Unlike bull markets where traders can basically throw a dart at a list of coins to pick one that will go up, bear markets require much more effort to find projects that could perform well over the long-run.One project that has continued to show signs of mainstream adoption despite the onset of a crypto winter is Polygon (MATIC), a layer-two scaling solution for the Ethereum (ETH) network that is looking to build a sustainable Web3 infrastructure on the top smart contract platform. Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.316 on June 18 during the worst of the crypto market sell-off, MATIC has climbed 118% to $0.70 where the price now sits at a major support and resistance level that first appeared in March 2021. MATIC/USDT 1-day chart. Source: TradingViewThree reasons why the long-term outlook for Polygon remains positive include its continued adoption by mainstream entities, the migration of multiple projects to the Polygon network and an increase in the platforms offering liquid staking services for MATIC. Major adoption announcementsAdoption by influential mainstream companies is one of the best forms of marketing that a blockchain platform can receive as it exposes them to a large pool of potential users. In the past few months, Polygon has established partnerships with Coca-Cola, which released a pride series NFT collection on the network and Reddit, which announced that it was launching an NFT marketplace on the Polygon network on July 7.Most recently, it was announced that Polygon has been selected by Disney to be the only blockchain included in the 2022 Disney Accelerator program, a “business development program designed to accelerate the growth of innovative companies from around the world.” Interrupting the #GreenBlockchainSummit for some breaking news!We’re excited to be the only blockchain chosen to be a part of the Disney Accelerator program. https://t.co/LaGU4bhidi— Polygon – MATIC (@0xPolygon) July 13, 2022Protocols launch on PolygonFurther evidence of the rising popularity of Polygon as a go-to scaling solution for Ethereum has been the steady migration and integration of projects with the L2 network. 48 Projects are landing on @0xPolygon with OnePlanetThanks to all the Ark*One partner projects and @polygonstudios, we are all moving together to rebuild and grow the NFT ecosystem #onPolygon Read the full recap on Ark*One: https://t.co/lxTh6WVRJB pic.twitter.com/hnDtzmSA9S— OnePlanet ˡᵃⁿᵈⁱⁿᵍ ᵒⁿ ᴾᵒˡʸᵍᵒⁿ (@OnePlanet_NFT) July 8, 2022

Aside from the recent NFT projects that have migrated to Polygon, other new additions include the permissionless, credit protocol RociFi, and WOO network’s multi-chain decentralized exchange. MATIC has also seen a growing number of platforms that offer liquid staking for the token which enables holders to earn staking rewards. 2/3 Farming opportunities:@LidoFinance & @BalancerLabs – 12% APY@Stader_Polygon & @Meshswap_Fi – 13% APY@Claystack_HQ – 9% APY@ankrstaking – 9% APY— DeFi Pulse (@defipulse) July 12, 2022

Related: Terra projects band together in migration to Polygon ecosystemTraders expect resistance at $0.75As for what comes next for MATIC price, market analyst and pseudonymous Twitter user Crypto Tony posted the following chart suggesting that the token could head higher toward resistance at the $0.75 level. MATIC/USDT 4-hour chart. Source: TwitterCrypto Tony said, “Looking for a flip of the EQ up to the range high. Would love to see us consolidate a bit longer underneath this area.”This outlook was further reinforced by Trader McGavin, who posted the following chart noting that MATIC is “Filling out the ascending triangle and looks ready to breakout in the coming days.”MATIC/USDT 1-day chart. Source: TwitterTrader McGavin said, “A breakout would open up a move to $0.80 and then $1. Ton of positive catalysts over the last few weeks driving this big move off the lows.”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.

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