A few outliers continue to break through the bearish attitudes looming over the crypto horizon of late. UNI is one of those tokens, with an impressive jump of over 12% in the past 24 hours, investors have flocked to this altcoin in search of a bullish continuation.
The first quarter of this year brings a lot to the table for investors. Just this month, Uniswap reported that its deployment on Arbitrum led to the swap volume on the latter to jump by a significant amount. The news is also coupled with exciting new info on Uniswap’s latest agenda: the launch of Uniswap v4.
After news that Ethereum, Uniswap’s L1, will have its Dencun upgrade in this year’s first quarter, Uniswap then announced that their latest iteration of the protocol would be launched sometime in Q3 2024.
Now that the launch of Dencun on Mainnet has been scheduled for March 2024, we’re excited to provide an update to the community! 🎉
Uniswap v4’s launch is tentatively set for Q3 2024.
In essence, Uniswap v4 is a more efficient and cost-effective brother of v3. According to Uniswap’s own website, it is a “non-custodial, non-upgradeable, and permissionless automated market maker protocol.”
In the announcement, v4 is currently in its first phase with the developers finalizing the core functionalities and features of the upgrade. The update would let the team createnew features on top of the current AMM design of the protocol. This eliminates the need for creating an entirely new design from the ground up.
UNI currently trading at $7.462 on the daily chart: TradingView.com
Leading The Innovation Charge
Uniswap is also ramping up its effort in providing funding for innovators in the Web 3 space. Last week, the Uniswap Foundation X account released a detailed look at the organization’s new granting strategy.
🦄 Introducing our Reimagined Grants Strategy
Our vision is simple: to make the @Uniswap Protocol the liquidity layer of the Internet.
As stewards of the Protocol and the Community, we have evolved our grants strategy to turn this vision into reality.
In short, the new strategy revolves around granting a minimum of $250,000 in four audience-specific categories: developers, researchers, delegates, and innovation (all stakeholders).
For now, no date of implementation has been announced for these new grants.
UNI: Challenging Week Ahead For Investors
The lead-up to the month of March has certainly brought a level of hype around the broader market, but thus hype has since died down and was replaced by profit-taking attitudes. UNI will inevitably experience this bearishness taking hold in the coming weeks as the market potentially dips.
If this happens, investors and traders have strong support on the 50% and 38.20% price levels. These supports will slow down any bearish advance, stabilizing UNI’s price at the $7.3 and $7 range.
Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Prices of some mega-cap altcoins, including Optimism (OP) and Kaspa (KAS), are on the verge of new all-time highs thanks to heightened institutional interest in the cryptocurrency sector.
Thanks to billions of dollars flowing into Bitcoin ETFs, crypto native investors appear to reinvest profits in altcoins.
After weeks of a relentless rally between Jan. 23 and Feb. 16, the global altcoin sector has grown by $108 billion as some mega-cap altcoins are close to hitting new all-time highs this month.
Kaspa (KAS) price: 7% away from all-time high
Kaspa (KAS) is a Layer-1 proof-of-work (PoW) cryptocurrency currently ranked 31st on the global crypto charts with a market capitalization of $3.2 billion. Through its GHOSTDAG protocol, Kaspa combines the security and decentralization of a PoW architecture with high block rates and minimal confirmation times of a Proof of Stake (PoS) network.
KAS has scored significant price gains in the last 3-weeks, outperforming not just the prominent PoW coins, including Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC), but also the overall altcoin market.
Kaspa (KAS) Price 7% Away from All-time High – Source: TradingView
Between Jan. 23 and Feb. 16, KAS’s price increased by 56%, adding $1.1 billion to its market capitalization. By scoring another 7% gain, KAS will surpass its previous global peak at $0.16, recorded on Nov. 19.
Compared to the $108 billion growth in Total Market Cap, excluding BTC and ETH, KAS has attracted about 1% of all capital inflows into the altcoin market in the last 3 weeks.
Why is Kaspa’s (KAS) price rising?
The upcoming Bitcoin halving is one dominant narrative behind Kaspa’s recent growth spurt. Industry experts expect over 20% of Bitcoin miners will go offline when block rewards are slashed from 6.25 BTC to 3.13 BTC in April 2024.
Kaspa (KAS) Price Breaking out ahead of Bitcoin (BTC) Halving | Source: Nicehash
Many miners could channel their resources towards alternative Proof of Work networks, like Kaspa, that offer more attractive returns.
Hence, investors appear to be piling funds in the KAS coin to front-run the potential upside from the fallout of the upcoming Bitcoin halving. This could effectively send KAS price racing towards a new all-time high in the coming weeks.
Optimism (OP) price: 9% away from all-time high
Optimism (OP) is a prominent layer-two blockchain built on Ethereum. Optimism benefits from the security of the Ethereum mainnet and provides enhanced scalability using its innovative, optimistic rollups.
Like other Layer-2 scaling solutions, the OP allows cryptocurrency investors to carry out faster and more cost-effective defi transactions without interacting primarily with the Ethereum mainnet.
OP token has drawn investors’ attention amid increased demand for defi transactions triggered by the crypto market rally.
Between Jan. 23 and Feb. 16, Optimism’s price beat the market average, gaining 53% and adding about $1 billion in market capitalization. On Feb. 15, the OP price peaked at just 10%, away from hitting its all-time high of $4.30, recorded on Jan. 12.
Why is Optimism’s (OP) price going up?
The ongoing OP price rally appears to be driven largely by industry-wide demand for defi services.
While Optimistic roll-ups were launched in 2019, the OP governance token was only launched in June 2022. But despite being relatively new on the market compared to Polygon (MATIC), Optimism has quickly grown to become one of Ethereum’s most in-demand scaling solutions over the past year.
Optimism (OP) TVL vs. Polygon (MATIC) TVL | Source: DeFiLlama
Furthermore, the chart shows that Optimsm briefly surpassed Polygon network when its TVL peaked at $927.6 million on Jan. 11, the same day OP price hit an all-time high.
This close correlation between OP price and TVL growth trends emphasizes that the fundamental demand for defi solutions is the main catalyst behind the ongoing rally.
Optimism is home to over 100 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, and Velodrome (VELO), an AMM.
With demand for these critical defi services still on the rise, OP looks set to close the 10% gap and reclaim a new all-time high in the coming weeks.
Ethereum (ETH) is about witnessing a potential sell-off worth $1 billion. This significant transaction is rooted in actions by Celsius, a bankrupt crypto lender. Reports from on-chain analyst Lookonchain indicate that Celsius initiated the transfer of 459,561 ETH, estimated to be worth around $1.014 billion, to various exchanges.
The breakdown of this large-scale distribution includes 297,454 ETH ($656.5 million) moved to Coinbase Prime, 146,507 ETH to Paxos Treasury, and smaller sums totaling 7,800 ETH ($17.2 million) sent to FalconX and Coinbase, respectively. Despite this transfer, Lookonchain disclosed that Celsius still maintains a reserve of 62,468 ETH, valued at roughly $139 million.
Celsius transferred 459,561 $ETH($1.014B) out 9 hrs ago.
This significant transfer carries significant weight in the Ethereum market. It poses a challenge as it exerts considerable pressure on Ethereum’s price, with potential implications for broader market sentiment. Ethereum could see a significant plunge if the $1.014 billion worth of ETH is sold simultaneously.
Celsius’ Previous Ethereum Transactions
Celsius’ latest Ethereum transactions aren’t isolated events. LookonChain has previously spotted significant transfers linked to Celsius, including a deposit of 13,000 ETH ($30 million) on Coinbase and 2,200 ETH ($5 million) to FalconX.
While these moves indicate Celsius’ proactive strategy in managing its financial challenges, they also signal potential volatility for Ethereum’s market value.
Furthermore, Arkham Intelligence reports that between January 8 and January 12, Celsius liquidated over $125 million worth of Ethereum. The primary objective of these sales is to fulfill obligations to creditors.
Dune Analytics also highlighted the pattern of large-scale Ethereum redemptions, noting redemptions exceeding $1.6 billion. Since last year’s Shanghai update, this figure represents the highest Ethereum redemptions recorded.
As part of its bankruptcy proceedings, Celsius continues liquidating Ethereum holdings to pay off debts.
Ethereum’s Market Reaction
In the aftermath of Celsius’s Ethereum transactions, the asset has seen a nearly 10% decline in value over the past week, dropping from a high above $2,600 to around $2,186 yesterday. However, Ethereum has slightly recovered, rising by 2.2% in the past 24 hours, with a trading price of $2,258 at the time of writing.
ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com
Amid these market developments, Michael van de Poppe, a renowned crypto analyst, has identified three key factors that could signal a bullish phase for ETH. A significant element is Bitcoin’s market behavior, often setting the tone for altcoins.
Van de Poppe notes that Bitcoin’s indications of bottoming out usually precede rallies in altcoins, suggesting a potential upturn for Ethereum. He also emphasizes the increasing excitement around spot Ethereum ETFs, which could catalyze Ethereum’s market value in the coming weeks.
Additionally, Ethereum’s impending network upgrades, which aim to reduce transaction costs significantly, are expected to enhance the network’s efficiency and scalability, potentially boosting its market appeal.
The momentum towards $ETH is probably going to come in the next few weeks.
Arguments: – #Bitcoin bottoming out is a trigger for altcoins to make a new run. – Ethereum Spot ETF hype. – Ethereum launching new upgrades to reduce 90% of the costs. pic.twitter.com/N8bDi52F8M
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Michael van de Poppe, a prominent crypto analyst, recently outlined three key factors that could herald a bullish phase for Ethereum, the second-largest crypto by market capitalization. One crucial factor he identifies is Bitcoin’s current behavior.
The analyst pointed out that as the market leader, Bitcoin’s recent signs of bottoming out tend to precede altcoin rallies, hinting at a potential upswing for Ethereum. Moreover, Van de Poppe highlights the growing anticipation surrounding spot Ethereum exchange-traded funds (ETFs).
According to Van de Poppe, the increasing buzz about these spot ETFs is a significant catalyst that could drive Ethereum’s value over the coming weeks.
Additionally, Ethereum is on the cusp of rolling out critical network upgrades. These updates, aimed at reducing transaction costs by up to 90%, are expected to improve the network’s efficiency and scalability significantly.
The momentum towards $ETH is probably going to come in the next few weeks.
Arguments: – #Bitcoin bottoming out is a trigger for altcoins to make a new run. – Ethereum Spot ETF hype. – Ethereum launching new upgrades to reduce 90% of the costs. pic.twitter.com/N8bDi52F8M
Regarding updates, Ethereum’s development team is making strides with the upcoming Dencun upgrade, a significant “hard fork” that aims to enhance the blockchain’s efficiency.
Tim Beiko, a core Ethereum developer, updated the community earlier today on the progress. Dencun, which incorporates “proto-danksharding,” is set to reduce transaction costs on layer 2 solutions, making Ethereum more accessible and affordable for users.
According to the developer, the upgrade is scheduled to activate on the Sepolia testnet on January 30 and the Holesky testnet on February 7, with mainnet implementation following if these tests succeed.
More testnet blobs on the way .oO
Dencun will activate on Sepolia Jan 30, and on Holesky Feb 7. If running a node on either network, now’s the time to update it!
Despite these positive developments, Ethereum’s market performance mirrors the overall bearish sentiment in the crypto market, led by Bitcoin. ETH has seen a 13.7% decline in the past week, currently trading at $2,216.
ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com
However, analysts like Van de Poppe urge caution, particularly regarding the impact of the Bitcoin spot ETF. While there may be short-term selling pressure, Van de Poppe remains optimistic about the long-term prospects.
The analyst suggests that the influx of new capital from diverse market participants could propel Bitcoin, and by extension, Ethereum, to new heights.
The markets need to be more accurate with the impact of the ETF.
There’s some selling pressure in the short term, but in the long term, a massive amount of new money flows into the markets from new participants.
As a result, #Bitcoin might push higher this cycle than we think.
Featured image from Unsplash, Chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The crypto community is currently embroiled in a debate over the right for Ripple to sell XRP tokens, sparked by a recent exchange between XRP advocate Bill Morgan and a crypto analyst known as “Darkhorse” on social media platform X.
This discussion delves into the legal complexities and market implications of Ripple’s actions concerning XRP sales.
There is nothing that prevents Ripple selling its XRP. Anyone can sell an asset it owns. The issue is whether in the US it needs to register its sales and offers of XRP with the SEC. If Ripple sells XRP programmatically as it has in the past it does not need to register the sales… https://t.co/vHbeCTpeP0
Bill Morgan, a staunch defender of XRP, argued that Ripple has no legal constraints on “selling its XRP tokens except in the context of institutional sales.”
This assertion was in response to a crypto analyst, Darkhorse’s reference to a ruling by Judge Analisa Torres in July 2023, which, according to the analyst, did not permit Ripple to sell XRP.
Morgan maintained that Ripple is legally allowed to sell its XRP holdings, clarifying that the company’s sales should not be viewed as investment contracts under the United States Securities law.
Morgan further noted that nothing is “stopping Ripple from selling its XRP.” “The issue is whether in the US it needs to register its sales and offers of XRP with the [Securities and Exchange Commission] SEC.”
After Judge Torres ‘ decision, another user on X highlighted a significant point regarding Ripple’s XRP sales. Based on the judge’s reasoning, these sales might “now be considered securities transactions.”
This change in classification, the user explained, is because Ripple’s involvement with XRP is now publicly acknowledged, which could lead to expectations of value increase due to the payment company’s activities.
Previously, such sales weren’t classified as securities transactions due to a “lack of evidence” that retail buyers knew about Ripple’s role with XRP. However, this has changed post-Judge Torres’ decision, making Ripple’s involvement a publicly recognized fact.
Responding to this, Morgan suggested that despite this public awareness, the past five years’ performance of XRP’s price indicates that expecting profits from Ripple’s efforts might not be “reasonable.” The XRP advocate further implied that those who bought XRP after the July 13th decision with such expectations might be “irrational or need help.”
Put on notice or not the price performance by XRP for the last 5 years suggests anyone who acquired XRP since the 13 July decision who thinks Ripple’s efforts are going to lead to profits from an increase in price of the asset does not have a ‘reasonable expectation’ and may be… https://t.co/WhKCyGWpA0
Notably, the debate comes on the heels of Ripple’s recent transfer of 80 million XRP tokens, valued at approximately $46.18 million, to an undisclosed wallet. This transaction, reported by blockchain tracking service Whale Alert, has ignited speculation in the XRP community.
Amid these developments, XRP’s market performance has seen fluctuations. The asset experienced a 1.5% decline in the past 24 hours, dropping its price to $0.566. However, over the past week, XRP has shown resilience, recording a 2.6% increase. The trading volume for XRP also saw a dip, falling from over $1 billion last Wednesday to $827 million in the last 24 hours.
XRP price is moving sideways on the 1-hour chart. Source: BTC/USDT on TradingView.com
Featured image from Unsplash, Chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Three altcoins, Chiliz, Klaytn, and Blur, boast more than 15% gains as the top gainers on Jan. 16, as reported by CoinMarketCap.
Offered by the Malta-based FinTech provider of the same name, Chiliz (CHZ) has gained popularity as the primary digital currency for sports and entertainment. Sitting in the top place, the asset’s price sits at $0.1053, with a 24-hour trading volume of $263 million, an increase of 18.1%.
More impactful than its daily gains is its weekly growth of 28.1% over the past week, in which the token was said to outperform the overall global cryptocurrency market, which has experienced a decline of 1.1%.
Without major announcements in the last 24 hours, the price increase will likely have come from a post on X made a few days earlier, which states that the nodes on the Chiliz chain had been upgraded on Jan. 12.
𝐍𝐨𝐝𝐞 𝐔𝐩𝐠𝐫𝐚𝐝𝐞 ✅
We recently have upgraded our Chiliz Chain nodes. Make sure you upgrade your Chiliz Chain nodes to the latest version.
A list of all the nodes and their upgrades can be found below 👇
— Chiliz ($CHZ) – The home of SportFi ⚽🏆 (@Chiliz) January 12, 2024
Using similar Layer 1 (L1) cryptocurrencies, which have decreased 3.8% in the last 24 hours, Klaytn (KLAY) takes the second spot on the Jan. 16 charts with 17.5% gains. The surge in Klaytn’s price performance can be attributed to the joint proposal submitted by Klaytn Foundation and Finschia Foundation to merge the two blockchains to establish Asia’s web3 technological and ecosystem powerhouse. Pending approval, the proposed merger combines South Korea’s foremost blockchain with Japan’s leading blockchain.
Rounding out the third spot, Blur (BLUR), the native token for the non-fungible token (NFT) marketplace and aggregator platform, emerges in the third spot with 15.3% returns.
According to data sourced from the crypto intelligence tracker Lookonchain, the NFT marketplace token BLUR underwent an unlocking of nearly 50 million tokens on Jan. 16 as part of a scheduled monthly occurrence, and it has happened eight times. Six of the eight instances have proven to be favorable for the asset.
CoinGecko’s most recent report details the failure rate of cryptocurrencies in the last 10 years. Exhibiting the increasing number of “dead” altcoins over the years as projects deactivate, rebrand, lose trading activity, or are revealed to be scams.
The first half of the ten-year period that CoinGecko studied showed 1,546 dead cryptocurrencies, 11.01%% of the total amount.
2014 saw the death of 37 cryptocurrencies, 2015 had a lower number with only 27, and 2016 closed this period with 32 dead coins. The 2014-2016 period saw the death of 96 cryptocurrencies in three years, accounting for less than 1% of the total of altcoins that have died over the last decade, as seen in the chart below.
The number of altcoins that failed since 2014. Source: CoinGecko
During the 2017-2018 Bull run, Almost 1,500 of the launched projects have since shut down, as CoinGecko explained:
In comparison, 1,450 projects launched during the 2017 – 2018 bull run have since shut down. This is on the back of over 3,000 cryptocurrencies listed, resulting in a similar failure rate of ~70%.
An Increase In Failed Projects Over The Last Five Years
The report shows that over 88% of the failed cryptocurrencies come from the second half of the period analyzed. Just 2019 increased 2018 year’s number by 50, reaching 1,150 failed cryptocurrencies and closely matching the total number of dead coins of the previous half.
However, most dead cryptocurrencies came from the 2020-2021 bull run. “Over 11,000 cryptocurrencies were listed on CoinGecko during the previous bull run, with ~70% having shut down since,” they detailed. 7,530 cryptocurrencies from launched projects during 2020-2021 have failed, accounting for 53,6% of all dead coins alone.
2021 is when cryptocurrencies suffered the most, with 5,724 dead coins—resulting in the worst year for projects launched, with over 70% of the cryptocurrencies listed having died as of January 2024.
The report attributes the high number of failures over 2020-2021 to the “ease of deploying tokens and the rise in popularity of meme coins.” They noted that many memecoin projects launch without a product, and most are “abandoned over a short period of time.”
In 2022, the number of failed projects declined from the previous year, with 3,520 dying. A 60% rate out of the total listed cryptocurrencies.
Ultimately, the number of failed projects declined further in 2023, as only 289 cryptocurrencies, out of the over 4,000 listed on CoinGecko, died. This represents a failure rate of <10%.
However, although the number of dead cryptocurrencies declined in the last two years, perhaps suggesting a more positive trend, the precise percentage of failed projects launched in 2023 stood at 289. It remains to be seen if the trend will be sustained over the coming months or if the rise of a new bull phase will push the nascent sector back into a spike in altcoin failures.
ETH is trading at $2,546.22 in the daily chart. Source: ETHUSDT on tradingview.com
Featured image from Unsplash.com, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Ethereum ecosystem cryptocurrencies continue to lead, with Blockchain Brawlers outperforming their 12.7% increase, according to CoinGecko data.
Blockchain Brawlers (BRWL), a web3 fighting game, tops the Jan. 10 trending report, exceeding its record all-time low of $0.001593 seven months earlier by 939%. The current market capitalization of BRWL stands at $21 million, securing position 1,003 on CoinGecko at the time of writing.
Delving further into its price performance, Blockchain Brawlers has exhibited a substantial increase of 427% over the past week. This growth positions the game ahead of the global cryptocurrency market, which has seen a 3.8% uptick and surpasses similar Ethereum ecosystem cryptocurrencies by outperforming their 12.7% increase.
The recent upswing in the value of Ether (ETH) and related projects are attributed to heightened trader optimism. This surge is particularly linked to expectations surrounding the possible approval of an Ether exchange-traded fund (ETF), with anticipation building on the heels of the expected approval of a Bitcoin ETF in the United States.
With the Bitcoin halving expected to happen today, crypto enthusiasts are already starting to take positions in various altcoins. Among these, there are a number of coins that have shown a lot of promise when it comes to reaching the $100 price mark and this report takes a look at three.
MoonRiver (MOVR) Tops Lists Of Altcoins To Reach $100
The MoonRiver (MOVR) token has been one that has flown under the radar for quite a while now. This has to do with the fact that the price of the altcoin fell from its all-time high of $485 to as low as $5 earlier in 2023. However, this has not eradicated the bullish narrative for the asset.
So far, as the crypto market has recovered, the MOVR token has seen one of the most significant rallies. In the days leading up to Christmas, the price would go from around $6 to as high as $44 in a couple of days, notching 700% gains during this time.
Since then, the price has since retraced and fallen around 50%. But with the price still holding above $20, it shows a lot of promise for the coin. Given its low supply of around 11 million coins and a tendency to rise quickly in a short time, MoonRiver is one of the coins poised to break the $100 mark.
The Litecoin price rallied tremendously in 2023 leading up to its halving and was among some of the best-performing altcoins. However, once the halving was completed, the LTC price would crumble and fall into a slow and steady decline. However, this has changed as the coin’s price has begun to pick up steam once again.
With the Bitcoin reversal, the Litecoin price is on the up once again, briefly crossing $75 in the early house of Tuesday. The altcoin, which is often referred to as the digital silver, could be poised to see firmer rallies, especially as the Bitcoin halving draws closer, which is often a catalyst for the bull market. If this continues, then LTC could easily cross $100.
Avalanche (AVAX) Sees An Awakening
Just like Solana (SOL), the Avalanche network has undergone an awakening that has brought investors back to the chain. As a result, the AVAX price has rallied, going from its 2023 low of around $9 to as high as $47 in December 2023.
As the new year rolled around, the Avalanche network has continued to enjoy attention from crypto investors and this has helped it maintain its bullish momentum. Just like MoonRiver (MOVR) and Litceoin (LTC), Avalanche (AVAX) is another token expected to cross the $100 mark.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Tellor (TRB) went on a rollercoaster in the past 24 hours, with its price experiencing a surge and a drop that is comparable to that of price manipulation. As a result, the crypto surged to over $600 in the late hours of 2023 before crashing down to $137.
According to data from CoinGlass, TRB witnessed more liquidated positions than any other crypto within this time period, with whales exiting both long and short positions amidst rumors of manipulation.
TRB has been on a steady price increase since the beginning of the month. This increase was particularly exacerbated on December 31, pushing the crypto to a new all-time high of $602, and a 1000% increase in trading volume, according to Coinmarketcap data. However, this price surge failed to last more than a few hours, as TRB plummeted to $139.
This price volatility saw TRB lead the market in liquidations on both long and short positions. According to CoinGlass, the crypto market saw a total of $227 million liquidated positions in the past 24 hours, with TRB leading with $73.93 million, quite unusual for such a low market cap altcoin. ETH and BTC followed with $24.7 million and $22.74 million worth of liquidated positions.
While the reason for the astounding price spike is unclear at the moment, the subsequent crash has been attributed to price manipulation from the Tellor team. According to a post on X (formerly Twitter) by Lookonchain, the Tellor team deposited 4,211 TRB worth approximately $2.4 million on Coinbase as the price skyrocketed.
In the past 24 hours, $TRB soared to $600 and then plummeted to $137, causing $68M of assets to be liquidated, making it the most liquidated token.
We noticed that the #Tellor team deposited 4,211 $TRB($2.4M) after the price of $TRB skyrocketed.
Price manipulation is certainly not a new phenomenon in the crypto industry, especially among low market-cap altcoins. The transfer into Coinbase has got investors wondering about a selloff from the team, as TRB crashed in the hours after. Nonetheless, this remains a speculation at this point.
TRB is the utility token for Tellor, a decentralized oracle network that provides real-world data to blockchain-based smart contracts. TRB mostly traded below $15 for the majority of the year. Things started to get hot in September as the cryptocurrency started to exhibit a very high level of volatility at this point. TRB kickstarted a sustained price surge in the middle of September that saw it reach $140 on November 9. After reaching this point, it went through a price dip throughout the month to the end of November at around $77.
December saw a change in momentum, with price action indicating a steady surge since the beginning of the month. At the time of writing, TRB is trading at $191, still up by 143% in a 30-day timeframe.
Featured image from Cryptimi, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Shibarium, the Layer-2 blockchain linked to the widely recognized meme coin Shiba Inu, is making notable strides. Recent data indicates a significant uptick in user engagement, marked by a substantial increase in both transactions and wallet growth.
The Shibariumscan explorer reveals that daily transaction volume on Shibarium has reached roughly 7.84 million, reflecting a steady climb since the beginning of the month.
Total number of transactions on Shibarium Blockchain. | Source: Shibariumscan
This uptrend in activity has propelled the total transactions on the platform to 212 million, accompanied by the connection of over 1.3 million Shibarium wallets, signifying a growing network of users.
Shibarium’s Dynamic December: Wallet Growth Meets Fluctuating User Activity
Despite the notable growth in wallets, there has been a contrasting trend in active user numbers. While the account numbers have swelled in December, active user engagement experienced a downturn during the same period.
However, a slight rebound in active users was observed on December 27, hinting at a potential revival in participation. Particularly, Shibarium’s active users surged from a low of 1,878 as of December 23 to an high of 2,802 on the 27th.
This pattern of fluctuating user activity, juxtaposed with the consistent increase in wallet numbers, paints a complex picture of Shibarium’s current ecosystem dynamics.
Alongside Shibarium’s transactional growth, the Shiba Inu community has intensified its efforts in token incineration, aiming to reduce the circulating supply of SHIB tokens and potentially boost their value.
The burn tracker Shibburn reports a 17.59% increase in the daily burn rate, with 13.7 million SHIB tokens recently burned. So far, December has witnessed the burning of roughly 24 billion Shiba Inu tokens, underscoring the community’s commitment to reducing SHIB’s supply.
Shiba Inu Burn Rate Surges Over The Past Day. | Source: Shibburn
This consistent burning strategy is central to the community’s long-term goal of fostering token value growth through supply reduction.
Meanwhile, Shiba Inu has thrived to continue its month-long bullishness. Despite a 1% decline in the past week, the asset currently shows an upward trajectory increasing by 0.8% in the past 24 hours, with a market price of $0.00001047, at the time of writing.
Shiba Inu (SHIB) price is moving sideways on the 4-hour chart. Source: SHIB/USDT on TradingView.com
In the midst of these developments, the ShibArmy Scam Alerts account on X has raised concerns about the prevalent issue of security in the crypto domain, particularly focusing on Shibarium. The account underscores the risks posed by fraudulent projects that exploit inexperienced investors through deceptive advertising.
Emphasizing the importance of being well-informed, the ShibArmy Scam Alerts advises thorough research, including scrutinizing white papers, understanding the fundamentals of the asset, and verifying the authenticity of the development team.
In #Shibarium, part of addressing the most significant issue in crypto right now—scams—means prioritizing safety in all aspects. If we put aside the obvious rugged pulls and phishing links, let’s talk about being deceived by false advertising.
The account also suggests examining media coverage and ensuring active, genuine community engagement on platforms like Discord and Telegram. This comprehensive approach to due diligence is crucial for navigating the crypto space safely and avoiding falling prey to sophisticated scams.
Featured image from Unspash, Chart from Tradingview
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
A Crypto Banter YouTube channel analyst sees the crypto market cycle accelerating into an intense altcoin season soon.
In a YouTube video posted on Dec. 28, the analyst laid out his perspective on where he sees the market heading in the near future.
“We are at the stage of a bull market party,” the analyst stated, referring to the gains seen across crypto assets over the past few months. However, he believes there will be two major legs to this bull run — the first taking us to new all-time highs for Bitcoin (BTC) and major altcoins, then a cooldown period, followed by a breakout above those all-time highs later this year.
The analyst sees “altcoin season” accelerating rapidly now, saying, “We’re getting to the point where things are speeding up fast.” He attributes this to the slowing momentum in Bitcoin, allowing altcoins to “catch up fast.”
With Bitcoin dominance dropping and money flowing out from Bitcoin into altcoins, the analyst thinks the market will see “the biggest alt surge to Bitcoin that we’ve seen in a very long time” coming. His target is for Bitcoin dominance to fall to the 48-49% level in the near future.
It’s a phase of when altcoins really rally up quickly, and then I do think there’s a cool down going into the possible halving.
Crypto Banter
Rather than exiting positions completely, the analyst advises rotating profits into Bitcoin and stablecoins to weather any potential market correction while remaining invested for continued upside.
“Don’t be afraid to bank a whole bunch of cash,” he suggests, noting there may be a four-to-six-week period of consolidation before the next leg higher.
Regarding key levels, the analyst is watching to see if Bitcoin can break through resistance around $46,000-$48,000. Meanwhile, he has a short-term target of $2,500 for Ethereum (ETH), beyond which he believes ETH could rapidly rally to $3,500.
The recent increase in value of PancakeSwap has captured the attention of the cryptocurrency community, as its token, CAKE, witnessed an extraordinary 54% surge in just the past seven days.
With a robust market capitalization of nearly $900 million and an impressive fully diluted valuation of $1.3 billion, PancakeSwap has solidified its position as a significant player in the decentralized finance (DeFi) space.
One of the key strategies contributing to PancakeSwap’s success lies in its proactive approach to managing token supply.
In a strategic move to boost scarcity and create a more attractive investment proposition, PancakeSwap executed a token burn, incinerating more than 10 million CAKE tokens, valued at approximately $34 million, on December 26.
This deliberate reduction in the total supply by 40% has not only impressed investors but also earned PancakeSwap the endearing title of “everyone’s favorite DEX” (Decentralized Exchange).
— PancakeSwap🥞Everyone’s Favorite DEX (@PancakeSwap) December 26, 2023
Despite prevailing market consolidation, the CAKE token has managed to defy the odds, maintaining a price above $2.1 and extending its recovery trend. Within just one week, the coin’s price soared to the current trading value of $3.37, breaking decisively from a falling wedge pattern.
This latest burn has resulted in a notable reduction in the circulating supply of CAKE tokens, decreasing from 275 million to 265 million. Consequently, this development propelled the CAKE price by 18%, pushing its market cap to $894 million.
CAKE market cap currently at $896.764 million. Chart: TradingView.com
Crypto burns play a pivotal role in the digital assets sector by reducing asset supply, thereby creating heightened demand and boosting the value and prices of cryptocurrencies.
Although a proposal to cap the maximum supply at 450 million was previously made by the network to recover losses suffered by CAKE crypto, it is yet to be implemented. Meanwhile, the team will continue with substantial burns to support price movement until an alternative decision is reached.
Weekly Token Burns Signal PanCakeSwap’s Commitment
The PancakeSwap team has further disclosed their intention to continue these token burns on a weekly basis, demonstrating a commitment to this approach until a decision is made to alter it.
This diminishing supply, coupled with the optimistic technical outlook, is anticipated to sustain a robust recovery trend in CAKE price.
CAKE seven-day price action. Source: Coingecko
Meanwhile, the coin’s 24-hour trade volume increased by 37% to $284 million, with one-month gains exceeding 50%. Moreover, the token reached a new 30-day peak of $3.65 on Tuesday.
As of the latest update, CAKE maintains a bullish stance, registering a 27% increase in the previous day’s trading and gaining over 6% within one hour of the most recent token burn.
The altcoin has also garnered increased crowd interest, with daily volume soaring by 75% to $330 million, although it remains 90% down from its April 2021 all-time high of $44.20.
Featured image from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Interest in altcoins, such as Polkadot, has significantly increased as the year draws to a close. After posting an impressive 47% gain in December, Polkadot (DOT) has become a standout performer in the cryptocurrency market.
Polkadot Surges 20%
In the latest development, the value of DOT has rapidly increased, rising by an impressive 20% in just the last two days.
With its breakthrough beyond the $7.9 barrier, the cryptocurrency set a new record for 2023 and demonstrated the growing interest and confidence of investors in Polkadot.
Notably, Polkadot’s price structure technical analysis points to a strong future. Even though there could be a slight reversal in the upcoming days, the general trend suggests that more price gains are likely.
This forecast strengthens the favorable perception of DOT and attracts traders and investors who pay close attention to technical indicators.
Polkadot currently trading at $8.42510000 territory. Chart: TradingView.com
In addition to its remarkable price success, Polkadot’s blockchain has seen a notable rise in revenue, indicating more platform utilization.
The increase in revenue highlights how developers and consumers are actively interacting with Polkadot’s ecosystem, which is seeing rapid acceptance.
The sudden spike in DOT prices is associated with a noticeable increase in activity on the Polkadot network. The Polkadot relay chain has recorded an incredible 1 million transactions as of the most recent update, which represents a record high in daily activity.
1 Million transactions today on the Polkadot relay chain.
This is the highest activity day on Polkadot in history, topping out the 941,000 transactions on May 5, 2021.
This exceeds the previous record of 941,000 transactions achieved on May 5, 2021. The main cause of the increased activity is inscriptions, which also add to the spike in interest and participation in the Polkadot ecosystem.
Increasing activity is a strong sign of increased use and interaction with the Polkadot platform. This heightened interest draws developers’ and users’ attention in addition to showcasing the platform’s possibilities.
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The spike in interest might spur additional adoption, which would promote ecosystem expansion and result in a notable rise in the value of the Polkadot network and its native token.
The more developers and consumers connect with the platform, the more momentum it creates, and this might have a significant impact on how Polkadot develops going forward in the cryptocurrency space.
With Polkadot making waves in the cryptocurrency world and surpassing all expectations by reaching a new high for 2023, the future of this active blockchain looks very bright.
Featured image from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
On-chain data has revealed more than 112 million Dogecoin tokens recently made their way out of Robinhood into an unknown wallet. DOGE transfers into crypto exchanges have seen an uptick in the past few days, as the crypto continues to struggle to keep up pace compared to other top cryptocurrencies. However, according to Whale Alerts, 112 million DOGE which was valued at roughly $10.4 million at the time of the transfer, was sent from Robinhood into a private wallet.
Massive Dogecoin Transfer Out Of Robinhood
According to Whale Alerts, the 112 million DOGE tokens were transferred from the Robinhood-linked address “DHQsfy” into the private address “DEndnp.” The tokens were then transferred to another private wallet address “DF8jRK” four hours later.
A further look through on-chain transaction data shows earlier large DOGE transactions between the Robinhood address and private wallet “DEndnp.” On Dec 21, 17.5 million DOGE tokens made their way from Robinhood into “DEndnp.”. At the time of the transaction, this tranche of coins was worth approximately $1.6 million. Again, the tokens were then transferred to “DF8jRK” four hours later. At the time of writing, “DF8jRK” holds 111 million DOGE tokens, and the pattern of transfers points to the transactions being made by the same entity.
On the other hand, various social media posts from Whale Alerts have shown large DOGE transfers from private addresses into Robinhood over the week. On December 18, a single transaction of over $7 million worth of DOGE was sent into Robinhood.
DOGE market cap currently at $13.189 billion. Chart: TradingView.com
Crypto whales, or investors holding very large amounts, are always worth keeping an eye on. When whales make big moves, it often means something. They also tend to show general sentiment among whales. However, in this case, $10 million worth of Dogecoin exiting Robinhood could signal that the whale is opting to keep the tokens in self-custody in anticipation of a long-awaited DOGE price surge.
Future Outlook For Dogecoin
Dogecoin is currently trading at $0.09312, over a newly found support at the $0.092 level. DOGE went on a run earlier in the month that saw its price reach a yearly high of $0.0151 on December 11. This growth has since slowed down, and DOGE is now down by %0.6 in a 7-day timeframe.
DOGE whales have increased their holdings by a substantial amount in the past month. According to IntoTheBlock’s Balance By Holdings metric, the balance of addresses holding between $100,000 to $1 million, $1 million to $10 million, and more than $10 million worth of DOGE has increased by 23.28%, 16.41%, and 27% in the past 30 days. Collectively, these large addresses have increased their holdings by $1.32 billion since December 1.
Dogecoin is currently trading 87% below its all-time high of $0.74. As a meme token, DOGE’s value is mostly tied to hype among traders, particularly retail investors. If the current bullish momentum among DOGE whales rolls over into retail investors, we could see the cryptocurrency’s strong bullish run in 2024. The first step in its journey to a new high is to find a strong footing over the $0.1 price level.
Featured images from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The pseudonymous crypto analyst Rekt Capital’s observations point to a promising future for the artificial intelligence (AI) cryptocurrency project, with a focus on Fetch.ai (FET).
Along with with a sizable 377,500 followers on the social media network X, the analyst offers a bullish prediction, stating that Fetch.ai is about to reach a new all-time high (ATH).
Rekt Capital’s investigation shows that the machine learning platform is presently experiencing a notable upswing following a successful retesting of a critical price level.
Technical Analysis Illuminates Fetch.ai Momentum
The spotlight placed on Fetch.ai’s retest points to a technical analysis viewpoint in which the price behavior of the project at this crucial level acts as a key predictor of potential future profits.
FET has increased over 300% since the cryptocurrency watchlist, claims Rekt. In terms of fluctuation in price, the AI cryptocurrency went up from $0.53 on December 9 to $0.67 on December 16.
Additionally, the technical analysis presents a positive picture for the cryptocurrency Fetch.ai, which has seen 60% of “green” trading days. Additionally, Fetch.ai is showing bullish indications from almost 30 technical indicators.
The rise in cryptocurrencies with an AI focus indicates a rising awareness of the possibilities at the nexus of blockchain technology and artificial intelligence.
An illustrative case in point is the significant increase in the value of Fetch.ai (FET) that followed its partnership with SingularityNET (AGIX).
FETUSD currently trading at $0.77175 on the daily chart: TradingView.com
The collaboration between Fetch.ai and SingularityNET most likely represents a strategic relationship with the goal of maximizing the technological synergies between the two enterprises.
SingularityNET is a platform that facilitates the production and trading of AI services. Fetch.ai could gain from SingularityNET’s experience and skills.
Earlier this week we announced we’ve strategically partnered with @SingularityNET to tackle some of #AI‘s biggest challenges! 🤖
This partnership focuses on overcoming #LLM hallucinations and enhancing multi-step reasoning 💡
This partnership is proof of the expanding fusion of blockchain and artificial intelligence (AI), which many investors think has the potential to usher in a new wave of innovation in the cryptocurrency space.
At the time of writing, FET was trading $0.76, up 7.5% in the last 24 hours, and sustaining a weekly gain of 10% in the last week, data from Coingecko shows.
There is a chance that FET would reach new all-time highs, which would be a challenge. According to Rekt, the crucial next step in realizing this potential is to successfully break through the red resistance and turn it into a level of support, which would represent a turning point in the price trend of FET.
All of this information was considered by industry experts when developing their Fetch.ai price forecasts. They anticipate that Fetch.ai’s value will reach $0.77 by the end of 2023, making it an intriguing DeFi coin to monitor.
Featured image from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The past two months have been a green flag for the broader crypto market in the run-up to the festive season. Although the hype has since cooled down, a few outliers continue to follow the upward trend. NEAR is one of those tokens that aren’t showing signs of cooling down.
According to Coingecko, the token is up nearly 8% in the daily, with the biggest jump being at 23% in the weekly timeframe. With this price ascent, NEAR just reached a new high of $2.81. The token hit its all-time high of $20.42 in January 2022.
The token’s market capitalization has likewise ballooned significantly, currently priced around $2.8 billion. Several on-chain integrations power this new wave of bullishness for NEAR.
NEAR: Monolithic And Modular?
Recently, eyes are on NEAR as it continues to improve its systems. According to a Medium article last week, the protocol is implementing more changes to become what they call “a monolithic going modular” blockchain.
“In a monolithic blockchain, all four functions are executed by the same set of nodes. This has some benefits, such as high security, easier deployment, and potentially improved utility for users thanks to the ability to specialize the entire network,” the Medium article said.
Although the NEAR team says that the token is a monolothic chain, its implementation of sharding do not overwhelm individual validators. However, this isn’t enough for users as both users and developers quickly realized that publishing on Ethereum becomes an expensive ordeal.
But NEAR DA aims to change that.
NEAR market cap currently at $2.839 billion. Chart: TradingView.com
NEAR DA (“DA” meaning data availability) will give rollup operators access to NEAR’s storage capacity.
“NEAR runs four shards with roughly 16MB throughput a second. Assuming 100 bytes per transaction, you can store quite a significant amount of your data on NEAR at a fraction of the cost of publishing to NEAR,” the article explained.
As of writing, only a handful of rollups are using NEAR DA; namely Caldera, Fluent, and Movement Labs. Once this capability is in the hands of commercial users and other rollup operators, NEAR will be able to increase exposure to other investors.
The data source claims that there has been a 975% increase in the daily count of unique wallet addresses sending on-chain transactions on the network.
Source: Artemis
How Does This Affect NEAR’s Price?
As of now, the token is on its way to break through $2.90 price ceiling. However, it seems that the January 2022 high of $20.42 will be a tough nut to crack as the bears mount a strong defense. But the advent of strong on-chain development along with good market conditions will bring more bullishness in the short to medium-term.
For now, investors and traders should brace for a possible correction towards $2.25 once the hype starts to settle down.
Featured images from Shutterstock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Chief analyst of Singaporean exchange Bitget, Ryan Lee, has laid out some interesting Bitcoin price predictions for 2024. This forecast comes after BTC’s negative performance in the last week, where the maiden cryptocurrency declined by 4%, falling below the $42,000 price mark.
Bitcoin To Trade At $120,000 In 2024 – Ryan Lee
In an X post on December 17, crypto data platform Brave New Coin shared Ryan Lee’s projections for Bitcoin in the new year, which were presented in three phases.
For the short term, Lee anticipates Bitcoin’s price to fluctuate between $32,000-$50,000 as determined by the outcome of the spot ETF approval saga in the US. Currently, many crypto enthusiasts are highly optimistic about the SEC finally granting a green light to the launch of a spot Bitcoin ETF, following multiple meetings between the regulator and several asset managers involved.
Bitcoin Predictions For 2024 – Bitget Chief Analyst Ryan Lee picks some price ranges for BTC and other winners next year 🚀 #Bitcoin2024pic.twitter.com/LPlhJwgm9w
According to Bloomberg analyst James Seyfarrt, there is a 90% chance that this potential approval order will come between January 8th and January 10th, 2024, meaning Bitcoin’s price may be set for a major movement in the coming weeks.
In regards to the mid-term phase, Ryan Lee predicts Bitcoin prices to range between $38,000 – $75,000 based on the effects of the halving event, which is historically known to cause a rise in BTC prices. This is because the halving event causes a reduced rate of new Bitcoin minting, which leads to scarcity, in turn boosting the token’s demand and price.
In the long term, Bitget chief analyst projects Bitcoin to trade between $40,000 and $120,000 in 2024. He believes the major determinant in BTC price at this time would be US policy and regulations guiding the use of cryptocurrency.
At the time of writing, Bitcoin trades at $41,874.33, with a decline of 0.12% in the last hour. Meanwhile, the token’s daily trading volume is down by 16.99% and valued at $14.85 billion.
Alongside Bitcoin, Lee has also given some interesting predictions on the top tokens in the altcoin market for 2024. The Bitget executive expects Ethereum (ETH) could outperform BTC and trade between $3,000 and $3,500. By the end of 2024, Lee predicts ETH could attain a historic price point of $4900.
Meanwhile, the analyst expects XRP to trend in a similar fashion as BTC, hitting a price range of $1-$1.5 in 2024. In addition, Lee also projects that ADA could reach $1.2-$1.8 pending a significant growth of the Cardano ecosystem.
Featured image from InfoWorld, chart from Tradingview
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The price of Arcblock increased over 80% in the last day, reaching a high of $0.31 before pulling back to $0.25.
The price of Arcblock (ABT) surged over 80% in just 24 hours earlier today, rising from $0.17 to an intraday high of $0.3133 before pulling back to $0.2527 as of press time. This marks a nearly 50% gain over the same period.
Trading volume for ABT also spiked by over 820%, reaching $12.8 million over the last 24 hours compared to just $1.39 million the day before. However, the project’s official X account and other communication channels have not announced any major news that would explain the recent rallies in price and trading volume.
General market momentum may be contributing, as the overall crypto market has seen gains over the last week. Bitcoin (BTC), the largest cryptocurrency by market capitalization, rose back above $43,300 earlier today after trading below $40,000 for most of the past month. Still, ABT’s daily trading volume is significantly higher than average, indicating this week’s price action is well beyond normal market behavior.
Arcblock is a blockchain development platform that aims to bring decentralized applications into the mainstream. The platform provides developers with an end-to-end environment for building and deploying blockchain apps, known as DApps (decentralized applications). Key aspects of the Arcblock platform include a modular architecture, support for multiple blockchains, use of ready-made components to accelerate development named “Blocklets” and integration of decentralized identity features.
At the core of the Arcblock platform is the Arcblock Public Chain, a high-performance blockchain optimized specifically for the DApp ecosystem. However, Arcblock also enables integration with other major blockchain protocols like Ethereum (ETH) and Bitcoin.
Developers can leverage Arcblock’s array of modular components and tools, including wallets, storage services, graphical interfaces, and application programming interfaces to quickly assemble custom DApps. The overarching goal is to make decentralized app development faster, easier, and scalable using Arcblock’s comprehensive approach.
Altcoins, or alternative cryptocurrencies, have become a buzzword in the digital currency landscape, offering a world beyond Bitcoin (BTC). This guide explores the essence of altcoins, answering the pivotal question: What are altcoins? From the historical rise of altcoins to the exciting phenomenon of altcoin season, we delve into the intricacies that define this dynamic market.
What Are Altcoins? Understanding The Basics
Altcoins, short for “alternative coins,” encompass a diverse range of cryptocurrencies that have emerged following the success of Bitcoin. They are not simply imitations of Bitcoin but represent a broad spectrum of digital currencies with unique attributes, purposes, and technological innovations.
Characteristics Of Altcoins
Each altcoin is distinguished by its unique blockchain technology and consensus mechanism. For instance, Ethereum, one of the most prominent altcoins, utilizes a Proof-of-Stake (PoS) consensus mechanism, which is less energy-intensive compared to Bitcoin’s Proof-of-Work (PoW) system.
XRP operates on a consensus protocol known as the Ripple Protocol Consensus Algorithm, designed for high-speed and energy-efficient transactions. Cardano employs the Ouroboros PoS algorithm, acclaimed for its security and scalability. These varying consensus mechanisms reflect the diverse goals and technological advancements of altcoins, ranging from enhancing transaction efficiency to ensuring greater security and sustainability.
Altcoins also vary significantly in their market capitalization, liquidity, community support, and real-world applications. For example, Litecoin, often referred to as the silver to Bitcoin’s gold, offers faster transaction confirmation times, making it suitable for smaller, everyday transactions. Meanwhile, Binance Coin (BNB) is intricately linked to the Binance exchange ecosystem, providing utility within that specific platform.
Differences Between Altcoins And Bitcoin
One of the stark contrasts between Bitcoin and many altcoins is their development and governance structure. Bitcoin, created by the pseudonymous Satoshi Nakamoto, who has since left the project in December 2010, operates in a decentralized and open-source manner without a central authority.
In contrast, many altcoins have identifiable founding teams or organizations overseeing their development. For example, Ethereum is backed by the Ethereum Foundation, Solana is developed by Solana Labs, and Cardano is spearheaded by IOG (Input Output Global).
Another key difference lies in their transaction speeds and capabilities. Bitcoin, primarily designed as a digital store of value and medium of exchange, processes transactions approximately every 10 minutes. In contrast, altcoins like Ripple’s XRP have a much-shorter block time and can process transactions in seconds, making it a preferred choice for cross-border money transfers. Ethereum, with its smart contract functionality, enables a wide range of decentralized applications (dapps) beyond simple monetary transactions.
Furthermore, while Bitcoin’s maximum supply is capped at 21 million coins, altcoins have varied approaches to supply. For example, Ethereum initially had no cap. With the introduction of EIP-1559, Ethereum developers have introduced a mechanism that burns a portion of the supply with each transaction, potentially making its supply deflationary over time. XRP – like many other altcoins – was premined and has a capped total supply of 100 billion XRP.
The Rise Of Altcoins: A History
The history of altcoins is a captivating narrative of innovation, market dynamics, and the continuous pursuit of refining digital currency technology. Since the inception of Bitcoin, the first decentralized cryptocurrency, there has been a surge in the creation of alternative cryptocurrencies, each seeking to address perceived limitations of Bitcoin or to introduce new features and use cases.
The First Altcoins Gaining Traction
The journey of altcoins began soon after the establishment of Bitcoin, with the creation of Namecoin in April 2011. Namecoin aimed to decentralize domain-name registration, making internet censorship more difficult. Following Namecoin, Litecoin was launched in October 2011, envisioned as the “silver” to Bitcoin’s “gold.” Litecoin offered faster transaction confirmation times and a different hashing algorithm (Scrypt).
Following these, another notable early altcoin included Peercoin, introduced in 2012, which was the first to implement a Proof-of-Stake/Proof-of-Work hybrid system. Another significant early player was XRP which was created in 2012. The XRP Ledger was launched in June 2012 by the founders of Ripple Labs, including Chris Larsen and Jed McCaleb. Shortly after that, Dogecoin was launched in December 2013, initially created as a light-hearted take on cryptocurrency.
Dogecoin | Image credit: iStock
Remarkably, not all early altcoins sustained their momentum. Many, like Feathercoin and Terracoin, which gained attention initially, saw their influence wane over the years. These coins, while innovative in their time, couldn’t keep up with the rapidly evolving cryptocurrency market or build a lasting community and development ecosystem.
Evolution Of The Altcoin Market
The altcoin market has evolved significantly over the years, expanding beyond simple variations of Bitcoin’s technology. The introduction of Ethereum in 2015 was a watershed moment. Ethereum’s innovation was not just in creating a new cryptocurrency but in introducing a platform for decentralized applications (dApps) through smart contracts.
This breakthrough opened the doors for a new era of blockchain technology, where altcoins could serve various purposes beyond mere currency, from powering decentralized finance (DeFi) to non-fungible tokens (NFTs). The market saw an influx of diverse altcoins based on Ethereum, each catering to specific niches and use cases.
Key Milestones In Altcoin History
Several key milestones mark the history of altcoins. The Initial Coin Offering (ICO) boom in 2017 was one such significant event. ICOs became a popular method for new cryptocurrency projects to raise funds, leading to the launch of thousands of new altcoins. However, this period also saw increased regulatory scrutiny and instances of fraud, leading to a more cautious market approach.
Another major development was the rise of DeFi in 2020, where altcoins played a central role in enabling decentralized lending, borrowing, and trading, independent of traditional financial institutions. This era also witnessed the surge in popularity of NFTs, with altcoins like Ethereum being at the forefront of this new digital asset class. These milestones highlight the dynamic nature of the altcoin market, continuously shaped by technological advancements and shifting market sentiments.
Top Altcoins To Watch
As the crypto market continues to evolve, a number of altcoins have risen to prominence, each offering unique advantages and innovations. This section highlights some of the top altcoins that have captured the market’s attention due to their technological advancements, community support, and potential for future growth.
Top altcoins | Image credit: Shutterstock
Overview of Top Altcoins
Ethereum (ETH): Often regarded as the leading altcoin, Ethereum is renowned for its smart contract functionality, which has paved the way for decentralized applications (dApps) and decentralized finance (DeFi) ecosystems.
Solana (SOL): Solana has gained popularity for its incredibly fast and low-cost transactions, leveraging a unique combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms.
XRP: Despite legal challenges in the United States, Ripple has established itself and the XRP token as a significant player, primarily for its use in fast and efficient cross-border money transfers.
Binance Coin (BNB): Originally created as a utility token for the Binance cryptocurrency exchange, BNB has expanded its use cases to include transaction fee discounts, token sales, and more within the Binance ecosystem.
Cardano (ADA): Known for its strong focus on sustainability and scientific philosophy, Cardano offers a third-generation blockchain that promises more scalability and security through its unique Ouroboros proof-of-stake algorithm.
Polkadot (DOT): Polkadot stands out for its interoperability, enabling different blockchains to transfer messages and value in a trust-free fashion; it’s also scalable and customizable.
These are just a few examples of the numerous altcoins in the market, each contributing to the diverse landscape of cryptocurrency in their unique ways.
Features That Make Altcoins Stand Out
Altcoins distinguish themselves through various features that cater to specific needs and use cases:
Smart Contract Capabilities: Ethereum’s introduction of smart contracts revolutionized the blockchain space, enabling the creation of complex, programmable transactions and applications.
Scalability And Speed: Altcoins like Solana and Cardano have focused on solving scalability issues, offering faster transaction speeds and lower fees compared to older blockchain networks like Bitcoin and Ethereum.
Interoperability: Projects like Polkadot and Cosmos address the issue of blockchain interoperability, allowing different networks to communicate and exchange information seamlessly.
Niche Applications: Some altcoins target specific sectors or use cases, such as Chainlink’s focus on providing real-world data to blockchain networks through oracles, or Monero’s emphasis on privacy and anonymity.
What Is Altcoin Season?
Altcoin season or “altseason” is a term that describes a period in the crypto market when altcoins significantly outperform Bitcoin. It’s a phase where investors’ appetite for riskier assets grows, and capital flows from Bitcoin into altcoins, often resulting in substantial price surges for these alternative coins. Understanding when an altcoin season is on the horizon can be crucial for cryptocurrency traders and investors looking to capitalize on market trends.
Indicators Of An Upcoming Altcoin Season
A key indicator of an impending altcoin season can be the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total cryptocurrency market capitalization contributed by Bitcoin. Technical analysts scrutinize this chart for signs of decreasing dominance, which may suggest that altcoins are starting to take up a larger share of the market.
Support and resistance levels on this chart can indicate potential shifts in market dynamics. For instance, a sustained fall below a major support level could signal the beginning of altcoin season.
Remarkably, the market often moves in cycles which can be broken down into four distinct phases, as illustrated in the image provided by crypto analyst Ted (@tedtalksmacro):
Phase 1: Bitcoin – The cycle often starts with Bitcoin’s price surging as money flows into Bitcoin, causing significant price increases.
Phase 2: Ethereum – Money begins to flow into Ethereum, which might struggle to keep up initially but then starts to outperform Bitcoin, leading to discussions about ‘the flippening’ (where Ethereum’s market cap could surpass Bitcoin’s).
Phase 3: Large Caps – As Ethereum starts outperforming Bitcoin, investors begin to venture into large-cap altcoins, which then start to see large buy-ups and price increases.
Phase 4: “Altseason” – In this final phase, enthusiasm spreads across the market; large caps have gone full vertical, and attention turns to mid and small-cap altcoins. All categories, regardless of fundamentals, tend to pump around the same time, leading to a parabolic increase in altcoin prices. This phase is marked by high levels of excitement and media attention.
Altcoin Season | Source: X @tedtalksmacro
How to Buy Altcoins: A Step-by-Step Guide
Purchasing altcoins can seem daunting for newcomers to the cryptocurrency space, but by following a clear step-by-step process, it can be straightforward and secure. Here’s a simplified guide to help you through the process: Research: Before anything else, conduct thorough research to determine which altcoins align with your investment goals and risk tolerance.
Choose A Wallet: Select a digital wallet that supports the altcoin you wish to purchase. Wallets can be software-based (like mobile or desktop applications) or hardware-based for added security.
Select A Cryptocurrency Exchange: Choose an altcoin exchange that lists the altcoin you’re interested in and is known for its reliability, security, and ease of use.
Register And Secure Your Account: Create an account on the chosen exchange and set up strong authentication measures, including two-factor authentication (2FA).
Fund Your Account: Deposit funds into your exchange account. This can often be done via bank transfer, credit card, or by depositing other cryptocurrencies.
Place An Order: Navigate to the market or trading pair for your chosen altcoin and place a buy order. You can opt for a market order for an immediate purchase at current prices or a limit order to specify a price at which you’re willing to buy.
Store Your Altcoins Securely: After the purchase, transfer your altcoins to your personal wallet for safekeeping, especially if you’re planning on holding them for the long term.
Where to Buy Altcoins
You can purchase altcoins on a variety of platforms, each offering its own set of features, fees, and security measures. Here are some of the most common places where you can buy altcoins:
Centralized Exchanges: These are the most common platforms for buying altcoins and include well-known exchanges like Binance, Coinbase, and Kraken. They offer a wide range of altcoins and are typically user-friendly.
Decentralized Exchanges (DEXs): DEXs like Uniswap and SushiSwap allow for peer-to-peer transactions without the need for an intermediary. They offer a higher degree of privacy and direct wallet-to-wallet trades.
Cryptocurrency Brokers: Platforms like eToro and Robinhood act as brokers, offering an easy entry point for buying cryptocurrencies. However, they may have a more limited selection of altcoins compared to dedicated exchanges.
Peer-to-Peer (P2P) Platforms: Websites like OKX P2P or Remitano connect buyers and sellers directly. While they offer flexibility in payment methods, they require a higher degree of trust between parties.
When choosing where to buy altcoins, consider factors such as security, fees, the variety of available altcoins, and the user experience of the platform. Always ensure that the platform you choose complies with the regulatory standards in your jurisdiction.
Are Altcoins A Good Investment?
The question of whether altcoins are a good investment depends on various factors, including market conditions, the specific altcoin’s potential for growth, and the investor’s risk tolerance and investment strategy.
Pros Of Investing In Altcoins:
High Growth Potential: Some altcoins have shown the capacity for high returns on investment, outperforming traditional assets in their best periods.
Diversification: Altcoins can diversify an investment portfolio, potentially reducing risk by spreading exposure across different asset classes.
Innovation: Investing in altcoins can be a way to support and be part of innovative blockchain projects that may transform various industries.
Cons Of Investing In Altcoins:
Volatility: Altcoins can be highly volatile, with the potential for significant price swings that can lead to substantial gains or losses.
Market Maturity: Compared to more established markets, the cryptocurrency market is relatively young and can be unpredictable.
Regulatory Uncertainty: Altcoins face regulatory challenges that can impact their value and legality. Investors considering altcoins should conduct thorough research, understand the risks involved, and consider speaking with a financial advisor. Investment decisions should be based on an individual’s financial situation, investment objectives, and risk tolerance.
Are Altcoins Dead Or Thriving?
The altcoin market is a diverse ecosystem with a wide range of projects boasting various levels of innovation, utility, and community support. Similar to the early days of the internet which led to the Dot-Com bubble, the cryptocurrency space is experiencing its own form of natural selection where not all projects will survive in the long term.
The Reality Of Altcoin Longevity:
Oversaturation: The market has seen an explosion of altcoins, with thousands currently in existence. Many of these coins serve similar functions or aim to solve the same problems, leading to an oversaturated market where only the strongest or most unique can survive.
User And Company Adoption: For an altcoin to thrive, it must gain widespread adoption among users and businesses. However, with so many options available, not every altcoin will achieve the necessary adoption rate to sustain its network.
Innovation And Continuous Development: The technology underlying altcoins is rapidly evolving. Projects that fail to innovate or adapt to new advancements are likely to fall behind and eventually become obsolete.
Survival Of The Fittest:
The ‘Amazon’ Of Altcoins: There will be altcoins that manage to carve out a niche for themselves and become integral to the crypto economy, much like Amazon did for e-commerce. These projects typically have strong fundamentals, clear use cases, active development teams, and robust community support.
The ‘Pets.com’ Of Altcoins: Conversely, some altcoins will fade into obscurity, similar to the fate of Pets.com and other failed Dot-Com ventures. Reasons for this include poor management, lack of clear use cases, failure to deliver on promises, or simply the inability to compete with more successful projects.
Market Dynamics And Speculation:
Speculative Bubbles: The altcoin market is not immune to hype and speculation, which can lead to bubbles. Projects that rise rapidly on speculation rather than solid fundamentals are at risk of crashing just as quickly.
Regulatory Challenges: Authorities are still defining the regulatory landscape for cryptocurrencies. Altcoins that fall foul of future regulations or fail to navigate the complex legal environment may face challenges that could impede their growth or lead to their demise.
In conclusion, while the altcoin market as a whole shows signs of thriving, with continuous innovation and increasing integration into the broader financial system, it’s clear that not every altcoin will survive the test of time. Investors should be discerning, focusing on projects with solid fundamentals, active development, and real-world utility to identify those with the potential to succeed in the long term.
FAQ
What Are Altcoins?
Altcoins, short for “alternative coins,” are cryptocurrencies other than Bitcoin.
Who Is Altcoin Daily?
Twin brothers Aaron and Austin Arnold founded Altcoin Daily, a prominent cryptocurrency YouTube channel. With over 1.34 million followers, it covers daily updates on Bitcoin, altcoins, NFTs, and more.
What Is Altcoin Alert?
Altcoin Alert refers to a software and service that tracks and analyzes sentiment on a large scale in the cryptocurrency market. It predicts coin prices based on extensive data.
How Many Altcoins Are There?
The number of altcoins constantly changes with the creation of new ones and the obsolescence of others. As of the last known count, there are ten thousands of altcoins, each with its own value proposition and community, but also a lot of scam projects.
Are Altcoins Worth Investing In?
Altcoins can be worth investing in, but they carry their own sets of risks and potential rewards. Their worth as an investment will depend on individual risk tolerance, market research, and investment goals.
Can You Short Altcoins?
Yes, it is possible to short altcoins on many cryptocurrency exchanges. In short selling, an investor borrows a cryptocurrency and sells it on the market, anticipating a decrease in its price.
How Do Altcoins Work?
Altcoins work using blockchain technology, which is a decentralized ledger that records all transactions across a network of computers. Many alternative cryptocurrencies have different features and operate on various consensus mechanisms, such as Proof of Work, Proof of Stake, or others.
How Are Altcoins Created?
Creating altcoins often involves forking from an existing blockchain or developing a new blockchain and its underlying technology from scratch. The process includes designing the coin’s protocol, creating its blockchain, and launching it for public use.
What Is An Altcoin?
An altcoin is any cryptocurrency other than Bitcoin. The term “altcoin” encompasses a broad range of cryptocurrencies with various functions and underlying technologies.
CAKE seven-day price action. Source: Coingecko
Source: Artemis
