Autor Cointelegraph By Yashu Gola

YFI price gains 46% in just four days after Yearn Finance's $7.5M buyback

YFI price gains 46% in just four days after Yearn Finance's $7.5M buyback

Uverejnil používateľ | dec 17, 2021 |

Yearn Finance (YFI) emerged as one of the best performers in the crypto market this week, rallying by over 46% in just four days to reach a two-week high above $29,100.YFI/USD daily price chart featuring its four-day bull run. Source: TradingViewThe gains surfaced primarily as Yearn Finance revealed that it has been buying back YFI en masse since November in response to a community vote to improve the YFI token’s economics. The decentralized asset management platform purchased 282.40 YFI at an average price of $26,651 per token — a total of over $7.50 million.Furthermore, Yearn Finance noted that it has more than $45 million saved in its Treasury and has “stronger than ever” earnings. As a result, it would — in the future — could deploy its income to buy back more YFI tokens.Now that the Treasury has more than $45 million saved up and with earnings stronger than ever, expect much more aggressive buybacks. What will you do anon?2/— yearn.finance (@iearnfinance) December 16, 2021Adam Cochran, partner with activist venture fund Cinneamhain Ventures, noted that Yearn Finance makes about $100 million per year in just fees collected from Vaults, its flagship smart savings account service that maximizes the value accrual of deposited digital assets.The analyst further highlighted that Yearn had attracted more than $5 billion in total value locked (TVL) against a market capitalization of $781 million. That being said, the Yearn Finance protocol earns one of the highest fees per TVL, giving it enough liquidity to sustain its token buyback strategy in the future.The total value locked inside Yearn Finance vaults. Source: DeFi LlamaYFI undervaluedCochran further compared Yearn Finance’s profit-to-sales (P/S) and profit-to-earnings (P/E) ratios with another “payout-based” protocol Curve, highlighting that YFI remained undervalued compared to Curve’s staking token, CRV.In detail, the P/S ratio indicates that how much investors are willing to pay for a company’s stock based on its sales per share. The P/E ratio shows investors’ decision to buy a stock based on the company’s past or future earnings. In both cases, a lower reading indicates an undervalued stock.”Their P/S ratio is 3.6x and their P/E is 7.9x,” wrote Cochran about Yearn Finance, adding: “Those numbers for other payout-based protocols like Curve are 71.9x and 143x, respectively. So around times the multiple valuations for someone who has fees on.”7/8Outside of holding $ETH, $YFI is actually my top pick for all of 2022.I’m stupidly long on Yearn both in terms of my capital but also investing my time as I expect to spend a lot of time building here.— Adam Cochran (@adamscochran) December 16, 2021

YFI to $40K next?While Yearn Finance’s decision to buy back over $7.50 million worth of YFI helped boost its prices, the cryptocurrency also received an additional upside boost from a historical accumulation range.The area between $18,500 and $20,000 has been attracting buyers on each YFI price dip since November 2020. It also held up against bears in September 2020, leading to a price rebound toward $40,000.YFI/USD three-day price chart featuring Fakeout range. Source: TradingViewIf YFI holds the $18,500-$20,000 range as support, and further rises above $24,580, or the 0.786 Fib line of the Fibonacci retracement graph in the chart above, its next upside target will be $40,000, a level coinciding with the 0.618 Fib line.Related: As Yearn.Finance’s yield vaults grow, ‘crop’ projects define boundariesPopular crypto trader Cuban noted that YFI’s fully-diluted valuation (FDV) is under $1 billion, which is “criminal considering the potential and the team behind.” He added:”Macro crypto wise, I believe we have a big Q1 coming up fundamentally and a lot of people gonna be left on the sidelines after de-risking EOY.”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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Fish food? Data shows retail investors are buying Bitcoin, whales are selling

Fish food? Data shows retail investors are buying Bitcoin, whales are selling

Uverejnil používateľ | dec 16, 2021 |

Bitcoin (BTC) staged an impressive recovery after dropping to its three-month low of $42,333 on Dec. 4, rising to as high as $51,000 since. The BTC price retracement primarily surfaced due to increased buying activity among addresses that hold less than 1 BTC. In contrast, the Bitcoin wallets with balances between 1,000 BTC  and 10,000 BTC did little in supporting the upside move, data collected by Ecoinometrics showed.”Bitcoin is still stuck in a situation where small addresses are willing to stack sats [the smallest unit account of Bitcoin], while the whale addresses aren’t really accumulating,” the crypto-focused newsletter noted after assessing the change in Bitcoin amounts across small and rich wallet groups, as shown in the graph below.Bitcoin on-chain data featuring fish and whale BTC wallet clusters. Source: Ecoinometrics Ecoinometrics further asserted that the situation for Bitcoin is “not ideal,” suggesting that the BTC price may end up resuming its decline in the absence of influential buyers.Bitcoin’s downside target sits near $42KEcoinometrics’ bearish outlook appeared as Bitcoin grappled with the Federal Reserve’s policy decision on Wednesday to reduce its bond purchases by $30 billion every month to unwind them down by April next year entirely.The $120 billion a month stimulus program was instrumental in sending the BTC price from below $4,000 in March 2020 to $69,000 in Nov 2021. And now that the liquidity threatens to go away, with lending to become costlier as the Fed prepares for three rate hikes next year, many fear that it would hurt investors’ appetite for risk assets like Bitcoin.Bitcoin price briefly popped above $49,000 after the Fed FOMC meeting confirmed at least three interest rate hikes and some adjustments to the current market supporting practices in 2022. https://t.co/TpTX7tGmYL pic.twitter.com/lXw47icZmB— Cointelegraph Markets (@CointelegraphMT) December 15, 2021Mike Novogratz, chief executive officer of Galaxy Digital Holdings, admitted that Bitcoin might feel “pain ahead” but anticipated that its price would not fall anywhere beyond the $42,000-support.“$42,000 is at a pretty important level, and low 40s should hold,” the crypto billionaire told Bloomberg TV in an interview Tuesday, adding:”So much money is pouring into the space, it would make no sense that the crypto prices would go much below that. If you’re long, it feels painful, but it’s probably healthy.”BTC/USD daily price chart showing $40K-42K support. Source: TradingViewBitcoin accumulation stronger among retailIn reality, unique wallets holding more than or equal to 1,000 BTC have been declining all across 2021, with data from Glassnode showing its number dropping to 2,147 from 2,475 since Feb. 9.The total number of Bitcoin addresses with at least 1,000 BTC balance. Source: GlassnodeIn contrast, the number of unique wallets holding at least 0.01 BTC (around $485 at current exchange rates) rose in 2021, from 8.46 million to 9.39 million year-to-date. Meanwhile, addresses holding at least 0.1 BTC (~$4,855) surged from 3.12 million to 3.30 million in the same period, indicating that “fishes” played a key role in pumping the Bitcoin price from around $30,000 to as high as $69,000 this year.The total number of Bitcoin addresses with at least 0.01 BTC and 0.1 BTC balance. Source: GlassnodeOne more piece of evidence showing that retail investors have been bullish on Bitcoin, came from addresses that hold at least 1 BTC. Related: Analysts expect Bitcoin trend change after Fed lays out its 2022 roadmapThese wallets decreased in quantity in the first half of 2021 as the BTC market grappled with the China ban and other negative news, but started increasing the second half as El Salvador adopted Bitcoin as its legal tender.The total number of Bitcoin addresses with at least 1 BTC balance. Source: GlassnodeThe number of Bitcoin wallets with at least 1 BTC also kept rising during the BTC price correction from $69,000 to $42,333 in the November-December session, signaling accumulation. It reached a seven-month high on Wednesday just as Bitcoin underwent a rebound to $50,000 from its weekly low near $46,000.On-chain analyst Willy Woo also spotted retail accumulation rising to levels seen after the March 2020 crash, which led to Bitcoin’s two-year-long bull run.Accumulation among wallets holding less than 1 BTC. Source: WIlly WooAdditionally, Bitcoin’s momentum indicator that preceeded its price breakout to $69,000 earlier this year is also hinting at a potential BTC price breakout ahead.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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Crypto Santa: Trader nets $34K shorting AVAX and LUNA, buy toys for kids

Crypto Santa: Trader nets $34K shorting AVAX and LUNA, buy toys for kids

Uverejnil používateľ | dec 15, 2021 |

A popular cryptocurrency trader under the Twitter pseudonym “Sicarious” donated a portion of its crypto profits to buy Christmas presents and other utilities for underprivileged children.The donations included $7,250 worth of livestock, clean water, Bibles, emergency food for Compassion International, a child sponsorship nonprofit, and another $1,500 to purchase and donate toys for kids — who would otherwise do without at Christmas — via Toys for Tots Foundation.Shorting the crypto price declinesSicarious also shared the screenshot of its profits and loss statements that showed that it had made nearly $6,500 and $27,500 in gains by shorting Terra (LUNA) and Avalanche (AVAX) recent price drops, respectively. That left the trader with enough leftover profits to continue its donation spree until the end of this year.Walmart is going to need more LEGOs… pic.twitter.com/k5X19VxOZo— Sicarious (@Sicarious_) December 13, 2021In detail, Sicarious announced on Dec. 5 that it would donate any profits made until the end of 2021 for children-related causes as a part of a so-called “Christmas challenge.” In announcing so, the anonymous trader put $100,000 into its FTX account, adding that if it nukes the amount, it would still donate whatever it can afford.A screenshot taken on Dec. 5 from Sicarious’s account. Source: TwitterOn Dec. 15, Sicarious closed another AVAX short in profits and used about $2,000 worth of proceeds to benefit a local food pantry.The trader’s initiative also inspired others to commit their realized crypto profits to causes. For instance, another Twitter user “Aeroplaine” claims to have deposited $50,000 into a dYdX perpetual exchange account, stating that it would donate all the gains to charitable causes in Malaysia.A good-hearted crypto tax strategy, meanwhileWhile Sicarious’s citizenship remains unclear, the copies of the traders’ bills and mention of the retail store Walmart in its tweets indicate that it lives in the U.S., a country with one of the most stringent crypto tax laws.The U.S. Internal Revenue Services (IRS) classifies cryptocurrencies as property. Meaning, if one’s crypto investments increase in value, s/he would need to pay a capital gain tax when they spend it. That also means keeping a tax record in check on a $2 coffee bill if paid via crypto.But donating crypto to charity somewhat allows taxpayers to brush off IRS’s tax-filing process. And since donations, on the whole, are not taxable events, one can offload their crypto profits as donations and deduct the same amount from their net tax liabilities in the financial year.But there remains a big takeaway: whether to first secure the crypto profits in cash and then donate or to pledge the money in crypto. The Giving Block, a crypto donation service, provided an answer back in 2020. The firm noted that cashing out crypto first would leave traders with a higher capital tax liabilities while donating directly via crypto would mean no tax responsibilities for the donor. Comparing crypto tax methods. Source: The Giving BlockThe direct-crypto-donation strategy seems to have worked well so far. For instance, Fidelity Charitable, the U.S.’s largest grantmaker, received over $274 million in cryptocurrencies this year, according to a company’s spokesperson quoted in the Los Angeles Times. Related: The Giving Block raises $2.4M for charity on ‘CryptoGivingTuesday’The amount came out to be almost four times higher than 2017’s peak of $69 million.Engiven, a crypto-enabled donation platform, also reported last month that it processed a $10 million Bitcoin donation to a faith-based organization.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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Cardano: ADA price eyes 30% rally with a potential 'triple bottom' setup

Cardano: ADA price eyes 30% rally with a potential 'triple bottom' setup

Uverejnil používateľ | dec 14, 2021 |

Cardano (ADA) may rally by nearly 30% in the coming days as it hints at forming a classic bullish reversal pattern.Sharp ADA rebound underwayDubbed “triple bottom,” the pattern typically occurs at the end of a downtrend and consists of three consecutive lows printed roughly atop the same level. Meaning, triple bottoms indicate sellers’ inability to break below a specific support level on three back-to-back attempts, which ultimately paves the way for buyers to take over.In a perfect scenario, the return of buyers to the market allows the instrument to retrace sharply towards a higher level, called “neckline,” that connects the highs of the previous two rebounds. The move follows up with another breakout, this time taking the price higher by as much as the distance between the pattern’s bottom and neckline.So far, the ADA price has been able to paint the triple bottom halfway, now rebounding after forming the third low, as shown in the chart below.ADA/USD four-hour price chart featuring triple bottom setup. Source: TradingViewThe point at which the ADA price reversed accompanied a rise in trading volume, suggesting that the rebound had enough backing from the buyers. Therefore, the Cardano token looks poised to at least pursue a run-up towards $1.40.Moreover, if the price further breaks above the neckline level decisively, it would likely continue to rally until it hits $1.63 — as per the triple bottom scenario.Accumulation areaThe potential triple bottom scenario emerged after ADA’s price plunged by more than 60% from its record high of $3.16 achieved on Sept. 2 earlier this year. It also surfaced as the Cardano token became one of the worst performers quarter-to-date, dropping nearly 45.50% compared to its top rival Ether’s (ETH) 15% gains.ADA’s multi-month selloff pushed its daily relative strength index (RSI), a momentum indicator, into oversold territory. In addition, Cardano token’s price drop also led it to what appears like a dependable “accumulation area,” as shown in the chart below. ADA/USD daily price chart featuring accumulation area and oversold RSI. Source: TradingViewBoth RSI and the accumulation area also point to a buying scenario in the ADA market, thus supporting the triple bottom scenario on the four-hour chart.Risks remain for ADA priceIt is important to notice that ADA dropped by more than 5.50% in the past 24 hours, much in sync with other top crypto assets in the space, with Bitcoin (BTC) sinking by over 3% and Ether by almost 5% in the same period.At the core of the crypto market’s uniformed decline was the Federal Reserve’s two-day policy meeting starting Tuesday. In the meetup, the U.S. central bank would likely decide to accelerate the tapering of its $120 billion a month asset purchasing program, one of the key catalysts behind the crypto and stock market rally since March 2020.Other parts of the Fed meeting would see the officials discussing the prospects of rate increases next year from its current near-zero levels. Cheaper lending had also played an important role in pushing the Bitcoin and altcoin market prices higher across 2020 and 2021, including ADA.Related: Bitcoin price dip may end Wednesday as Bitfinex bids hint at Fed ‘buy the news’ plansAs Fed officials initiate their policy meeting, the Cardano token would be testing $1.18 as its weekly support for a potential price rebound. The $1.18-level is the 0.618 Fib line of what appears to be an accurate Fibonacci retracement graph in predicting ADA’s support and resistance levels. ADA/USD weekly price chart. Source: TradingView.comShould ADA fail to rebound and close below $1.18, its next Fib support may come at 0.786 Fib line near $0.674, around 42% below. Nonetheless, ADA/USD may also test $1 as psychological support for an early upside retracement, similar to its multiple rebounds between February and July 2021.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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Small Ethereum investors increase exposure as ETH loses $4K level

Small Ethereum investors increase exposure as ETH loses $4K level

Uverejnil používateľ | dec 13, 2021 |

Ethereum’s native token Ether (ETH) has dropped by over 18% after establishing an all-time high around $4,867 on Nov. 10, now trading near $3,900. Nonetheless, the plunge has not deterred retail investors from buying the token in small quantities.According to data gathered by Glassnode — a blockchain analytics platform, the number of Ether addresses holding less than or equal to 0.01 ETH reached a record high level of 19.95 million on Dec. 4, the day ETH dropped to as low as $3,575 (data from Coinbase).Ethereum addresses with balances less than or equal to 0.01. Source: GlassnodeMeanwhile, the number of Ethereum wallets with balances of at least 0.1 ETH also kept climbing despite Ether’s correction from $4,867 to $3,575, eventually hitting a new all-time high of 6.37 million on Dec. 12. As a result, the number of Ether addresses with a non-zero balance also reached a new record high of nearly 70 million on Dec. 12. In contrast, addresses holding less than or equal to 1 ETH dropped alongside prices, indicating that they were less interested in buying Ether’s sessional dips.  Ethereum addresses with balances less than or equal to 1 ETH. Source: GlassnodeBounce ahead?The army of retail investors buying Ether in small quantities marches ahead as the ETH price drops toward a support confluence.Notably, Ether plunged Monday by over 5% to near $3,900 in a selloff inspired by similar corrections across the cryptocurrency space. Nonetheless, ETH price reached an area that has been lately attracting buyers.ETH/USD daily price chart featuring Support Confluence. Source: TradingViewThe first support came from the lower trendline of the descending channel pattern — the blacked range shown in the chart above. Meanwhile, the purpled 100-day simple moving average (100-day SMA) and the red pullback area — as it has been since Oct. 20 — raised Ether’s potential to retrace upward in the near term.While smaller retail investors seem to have been accumulating Ether, their larger counterparts look conflicted.Ethereum addresses with balances less than or equal to 1,000 ETH. Source: GlassnodeFor instance, Glassnode data shows a marginal recovery in the buying interest by the Ethereum wallets with balances of at least 1,000 ETH. Still, overall, their numbers have gone down from near 7,200 to below 6,350 in 2021.Exchanges’ Ether balancesMore upside cues come from Ether’s declining balances across all the crypto exchanges. The number of coins held by exchanges recovered from nearly 14 million ETH to 14.13 million ETH since Dec. 9 — which coincided with an almost 10.50% price drop — but its long-term trend remains skewed to the downside.Ethereum balance on all exchanges versus ETH price. Source: GlassnodeA lower ETH balance across exchanges hints at traders’ intention to hold their coins or stake them in the pools of decentralized finance (DeFi) projects to earn yields instead of trading them for other assets.Related: Data shows pro traders are currently more bullish on Ethereum than BitcoinDeFi’s total value locked (TVL) sits at a new all-time high above $250 billion, according to data provided by Defi Llama, out of which Ethereum’s TVL came out to be over $180 billion.Total capital locked across the Ethereum ecosystem. Source: Defi Llama”However, Ethereum’s dominance over DeFi activity has taken a big hit in H2 2021,” reminded Delphi Digital, a crypto-focused investment firm, adding that: “As the multi-chain narrative plays out, capital has moved to ecosystems like Solana, Terra and Avalanche.”High gas fees have been the main reason behind investors seeking potential “Ethereum killers.”For instance, a decentralized exchange swap costs $70 on Ethereum but $1 on Terra and Solana, although some analysts anticipate that Ethereum’s full transition from proof-of-work to proof-of-stake next year would solve the high gas problem.”Ethereum’s price will rise at a much faster rate than Bitcoin, due to the move to proof-of-stake,” noted Tom Higgins, CEO at asset management platform Gold-i.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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