Autor Cointelegraph By Yashu Gola

DEX token GMX rallies 35% after beating Uniswap on trading fees for the first time

The price of GMX rallied to its second-highest level in history on Dec. 1 as traders assessed the decentralized exchange’s ability to evolve as a serious competitor to its top rival Uniswap (UNI).GMX established an intraday high of $54.50 in a recovery that started on Nov. 29 from $40.50. Its rally’s beginning coincided with crypto research firm Delphi Digital’s tweet on the GMX decentralized exchange, as shown below.  GMX/USD four-hour price chart. Source: TradingViewGMX beats Uniswap in fees for the first timeNotably, GMX had earned about $1.15 million in daily trading fees on Nov. 28, which surpassed Uniswap’s $1.06 million trading fees on the same day.GMX Flipped Uniswap in Daily Fees on Nov. 28. Source: Delphi DigitalThis seemingly renewed buying sentiment in the GMX market, helping its price rally 35% to $54.50 afterward.Moreover, GMX also benefited from the growing discontent against centralized exchanges in the wake of the FTX collapse. The decentralized exchange’s revenue rose by 107% to $5 million in November, boosted by a 128% increase in annualized trading volume and a 31% rise in daily active users.GMX exchange’s financial data. Source: Token TerminalIn comparison, Uniswap’s annualized revenue increased by about 75% and daily active users by 8%. Independent market analyst Zen noted that GMX’s outperformance could have stemmed from its token holders receiving a good portion of all trading fees — about 30%, according to GMX’s official declaration. On the other hand, the holders of Uniswap’s native token UNI do not receive shares from the platform’s trading fees.”[GMX is] an obvious buy and hold during this bear market,” Zen added, saying that it is “consistently the second highest earning protocol after Uniswap.” Excerpts: “Leverage trading becomes dominant during bear markets. FTX and Bybit grew a lot last time. Expecting [a] similar story here. No big FDV overhang.”GMX price technicals tilt bearishFrom a technical analysis perspective, GMX’s ongoing bull run risks exhaustion in the coming days. Related: FTX’s collapse could change crypto industry governance standards for goodOn the daily chart, GMX’s price tests its multi-month ascending trendline resistance for a potential pullback, based on its previous corrections after testing the same trendline. In doing so, the token eyes a decline toward the ascending trendline support. GMX/USD daily price chart. Source: TradingViewAs of Dec. 1, GMX faced an increase in selling pressure near the trendline resistance at around $53. The GMX/USD pair could drop to the current trendline support near $42, which coincides with its 50-day exponential moving average (50-day EMA; the red wave) and its 0.618 Fib line.In other words, GMX could drop by nearly 20% from its current price levels by the end of 2022.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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FTM price rebounds 50% as Fantom reveals 30 years runway (without having to sell its token)

Fantom (FTM) continued its upward momentum on Nov. 30 amid reports that the Fantom Foundation generates consistent profits and has 30 years of runway without having to sell any FTM tokens. Fantom’s FTM holdings up from 3% to 14%FTM price gained nearly 13.5% to reach $0.24, its highest level in three weeks. The rally came as a part of a broader rebound trend that started when it bottomed out at around $0.17 on Nov. 22. This amounts to a 50% price rebound in the last eight days. Interestingly, the rally picked up momentum after the Fantom Foundation’s “Architect,” Andre Cronje, released the firm’s financial records on Nov. 28, revealing that it had $340 million worth of digital assets and had been earning over $10 million annually. Notably: Nov 2022 — Over 450,000,000 FTM, > $100,000,000 in stables, > $100,000,000 in crypto assets, $50,000,000 in non-crypto assets. Salary burn rate $7,000,000 / year. We have ~30 years left (without having to touch FTM)FTM/USD daily price chart. Source: TradingViewCertain crypto and blockchain projects have suffered due to their potential exposure to failing companies. For instance, the collapse of the FTX crypto exchange triggered major price declines in Solana (SOL) and its associated project tokens, such as Serum (SRM). FTX and its sister firm Alameda Research were Solana ecosystem’s major supporters.Solana ecosystem performance in different timeframes. Source: MessariIn February 2021, Alameda also purchased $35 million worth of FTM tokens to become a validator on the Fantom blockchain. This exposure may have been a key factor behind FTM’s underperformance in the early days of November, wherein its price declined by as much as 35%.Cronje downplayed any connection with FTX/Alameda, explaining that being a validator does not make one part of the foundation.”Unlike most of our competitors, the foundation owns a relatively small amount of FTM,” he wrote, adding: “Most comparable L1s own between 50% — 80% of their token supply. At launch, Fantom owned less than 3%. Today, we own more than 14%. We prefer buying our tokens; we don’t ‘sell’ our tokens for ‘partnerships.’Cronje also revealed that Fantom passed on further cooperation with Alameda in January 2022. FTM whales and fishes accumulateFantom’s on-chain data reveals that addresses holding more than 1 million FTM have been distributing the tokens during the FTX-led crypto market decline.On the other hand, the supply of Fantom tokens held by addresses with a balance between 1 and 1 million FTM increased in November, suggesting strong accumulation among the network’s richest (whales) and poorest (fishes) investors.Fantom supply distribution among addresses with a 1-infinity FTM balance. Source: Santiment In other words, these investors anticipate FTM to undergo a strong price recovery in the future.Related: Learn from FTX and stop investing in speculationTechnicals support the bullish outlook to a certain degree. FTM price now eyes a nearly 20% rally toward $0.30, which coincides with the token’s prevailing descending channel’s upper trendline and its 50-3D exponential moving average (50-3D EMA; the red wave), as shown below.FTM/USD three-day price chart. Source: TradingViewConversely, testing $0.30 as resistance could have FTM eye a strong pullback toward the descending channel’s lower trendline near $0.16, which has also served as support in July 2021, or a 30% price decline from today’s levels.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Chainlink eyes 25% rally ahead of LINK staking launch in December

Chainlink (LINK) looks poised for 25% price rally in the days leading up to its staking protocol launch, based on several fundamental and technical facto.Chainlink price rallies ahead of staking launchThe staking feature, which will go live as v0.1 in beta mode on Dec. 6, comes as a part of the so-called “Chainlink Economics 2.0” that focuses on boosting LINK holders’ reward-earning opportunities for “helping increase the crypto economic security” of Chainlink’s oracle services.Earlier, Chainlink users had to launch their own nodes to receive rewards in LINK tokens. The staking feature effectively opens new avenues for them to earn LINK rewards that could, in theory, boost demand for the token.Additionally, demand for LINK’s parent platform Chainlink, as an oracle service provider, should also increase. David Gokhshtein, the founder of blockchain-focused media company Gokhshtein Media, believes it could happen in the wake of the recent FTX collapse.The analyst highlighted how traders have been seeking more clarity on exchanges’ reserves after the FTX fiasco, which can boost demand for oracle services like Chainlink and, in turn, push LINK’s price higher.$LINK is definitely being overlooked. With everything that’s happened and with the new “Proof of Reserves” being pushed out there, ChainLink will be used to push that data out there.— David Gokhshtein (@davidgokhshtein) November 26, 2022Chainlink Labs launched its PoR auditing services to exchanges on Nov. 10.The speculations have helped LINK price rally in recent days. Notably, Chainlink price gained 35.50% eight days after bottoming out locally at around $5.50 — trading for as much as $7.50 on Nov. 29, its highest level in two weeks. The LINK/USD pair now eyes further upside in the near term, price technicals suggest. A failed LINK price breakdownLINK reclaimed its multi-week rising support trendline on Nov. 29, three weeks after losing it in the wake of the FTX-led market selloff.In doing so, the Chainlink token also invalidated its prevailing ascending triangle breakdown setup toward $4. It now trades inside the pattern’s range, eyeing a rally toward the upper trendline near $9.40, up 25% from the current price levels, by the second week of December, as shown below.LINK/USD three-day price chart. Source: TradingViewMichaël van de Poppe, market analyst and founder of Eight Global, also anticipates LINK to hit or cross above $9#Chainlink showing a ton of strength, also expecting continuation there to happen.If I didn’t have a long yet (but I do), then I’d be targeting for something like this in which I’d be looking at $9 area for a TP.— Michaël van de Poppe (@CryptoMichNL) November 29, 2022

Moreover, a bullish continuation move above the $9.40 resistance could have LINK eye $16 next, the ascending triangle breakout target. Related: Binance publishes official Merkle Tree-based proof of reservesConversely, slipping below the triangle’s lower trendline again risks bringing the breakdown setup toward $4 back in play, down about 45% from current prices.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Tether vs. USD Coin on-chain data reveals two very different stablecoins

USD Coin (USDC), a stablecoin issued by the U.S.-based Circle Financials Ltd, is taking the lead over its top rival, Tether (USDT), when it comes to institutional adoption, according to on-chain data.USDC daily transfer volumes are higherThe market capitalization of USDC tokens in circulation comes to be around $44 billion versus USDT’s $65.42 billion. However, USDC’s daily transfer value on the Ethereum blockchain has been consistently higher than USDT throughout 2022, data from Glassnode shows.For instance, as of Nov. 22, the USDC daily transfer was around $14 billion compared to USDT’s $5 billion.USDC vs. USDT daily transfer volume. Source: GlassnodeIn other words, USDC users engage in relatively higher capital transfers compared to USDT users, suggesting that USDC is increasingly the stablecoin of choice among high net-worth entities including institutional whales, hedge funds, family offices, crypto exchanges, etc.Related: 82% of Tether reserves held in ‘extremely liquid’ assets, according to attestationFurthermore, USDC leads USDT in terms of its supply weight across smart contracts as of Nov. 22. Notably, the former made up 33.75% of the total stablecoin supply locked across staking pools. In comparison, USDT’s supply is around 12.50%.USDC vs. USDC supply in smart contracts. Source: GlassnodeBut the higher daily transaction count versus USDC suggests that Tether is more likely used for retail trading and transfers such as remittances.USDC vs. USDT daily transaction count. Source: Glassnode On the other hand, USDC appears like a top stablecoin choice for tech-savvy institutional traders that lock their funds in staking contracts to earn yield. This is further reflected in USDC’s lower daily active addresses count of 40,245 versus USDT’s 73,000, as recorded on Nov. 21.USDC vs. USDT daily active addresses. Source: GlassnodeAdditionally, crypto trading platforms implementing so-called “proof-of-reserves” after the FTX collapse appear to hold more Tether over the USD Coin, further signaling that USDT is likely more popular among retail traders.These exchanges include Binance, KuCoin, BitFinex, ByBit, OKEx, and Huobi.’s reserves are the exception with more USDC than’s proof of reserves. Source: CoinMarketCap.comTether market cap dips after FTX collapseThe market capitalization of USDT dropped by nearly $4 billion after the FTX exchange collapse nearly two weeks ago.The reason may be due to Tether briefly veering off from its $1 valuation, hitting 96 cents on Nov. 10, after it froze $46 million worth of USDT tokens associated with FTX. Interestingly, the USDC market cap rose by nearly $2 billion after Nov. 10 when the FTX fiasco began.USDT vs. USDC market cap performance in the last six months. Source: MessariTether has a history of breaking its dollar peg during extreme market stress albeit to a lesser degree in recent years. For instance, the token dropped below 95 cents during the crypto market selloff in May, coinciding with a spike in USDC’s market cap. This suggests that some investors moved their capital from Tether to USD Coin as the former lost its dollar peg, as shown below.USDT/USDC three-day price chart. Source: TradingViewHowever, Tether returned to dollar parity within a few days, asserting that the tokens in circulation are backed 100% by reserves and pegged 1-to-1 with dollars. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Litecoin hits fresh 2022 high versus Bitcoin — But will LTC price 'halve' before the halving?

Litecoin (LTC) has emerged as one of the rare winners in the ongoing cryptocurrency market meltdown led by the FTX exchange’s collapse.LTC price outperforms BTC, ETThe 2011-born altcoin rallied nearly 16% month-to-date (MTD) to reach $62.75 on Nov. 22, outperforming its top rivals, Bitcoin (BTC) and Ether (ETH), which lo approximately 25% and 30%, respectively, in the same period.LTC/USD daily price chart. Source: TradingViewFurthermore, the LTC/BTC price also rallied to new heights, gaining 50% in November to establish a new yearly high of 0.003970 BTC on Nov. 22. As Cointelegraph reported, Litecoin diverged from the broader cryptocurrency market downtrend earlier this month with its halving slated for August 2023. LTC has also received an endorsement from none other than Michael Saylor for being a Bitcoin-like “digital commodity.” Michael Saylor says #Litecoin is also likely a digital commodity like Bitcoin:— Altcoin Daily (@AltcoinDailyio) November 18, 2022Nonetheless, signs of bullish exhaustion are emerging.Litecoin price fractal hints at 50% correctionLitecoin’s rally versus Bitcoin has made the LTC/BTC pai overvalued, according to its weekly relative strength index (RSI) reading.Notably, LTC/BTC’s weekly RSI, which measures the pair’s speed and change of price movements, surged above 70 on Nov. 22. An RSI reading above 70 is considered overbought, which many traditional analysts see as a sign of an impending bearish reversal.Historically, Litecoin’s overbought RSI readings versus Bitcoin have been followed by major price corrections. For instance, in April 2021, the LTC/BTC RSI’s climb above 70 met with a strong selloff reaction, eventually pushing the pair down by 75% to 0.001716 BTC by June 2022.Similarly, an overbought RSI in April 2019 led to a 70% LTC/BTC price correction by December 2019. The same RSI fractal now hints at Litecoin’s possibility of undergoing a 50% wipeout versus Bitcoin if coupled with LTC/BTC’s multi-year descending channel pattern, as shown below.LTC/BTC weekly price chart. Source: TradingViewTypicalLTC/BTC turns overbought after hitting the channel’s upper trendline, which follows up with a correction toward the lower trendline. As a result, the pair risks a drop to or below 0.001797 BTC by December 2022 if the fractal repeats, down more than 50% from the current price levels. Conversely, a decisive breakout above the upper trendline could have LTC/BTC test its 200-week exponential moving average (200-week EMA; the blue wave) at 0.005319 BTC, up 30% from current price levels, as the next upside target.LTC/USD pair “bear flag” Litecoin eyes a similar price crash versus the U.S. dollar as it paints a bear flag pattern on the weekly charts.Related: Cathie Wood’s ARK Invest adds more Bitcoin exposure as GBTC, Coinbase stock hit new lowsBear flags are bearish continuation patterns that appear when the price consolidates higher inside a parallel, ascending channel range after a strong move lower (called flagpole). They resolve after the price breaks below the lower trendline and falls by as much as the flagpole’s height.LTC/USD weekly price chart. Source: TradingViewLTC has been trading inside the bear flag range, eyeing a breakdown below its lower trendline support of around $55. The bear flag downside target is around $32.40 if it breaks decisively below the said support.In other words, a 50% decline by December 2022.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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