Crypto Portal

2023-07-08 17:30:10 Cosmos’ Interchain embraces this token’s issuance through KAVA

Cosmos is one of the blockchain networks that have held strong to the idea of an internet of blockchains. However, that vision has been met with challenges regarding interconnectedness. The network’s latest announcement underscores a move aimed at overcoming one of those challenges.

According to the announcement, the Kava blockchain will facilitate USDT’s launch on interchain. This development will not only make it easier for DeFi users to transfer funds from one chain to another but also make it more cost-efficient.

What does this mean for USDT? From a utility point of view, having USDT easily available and transferable in the interchain ecosystem might have some advantages. For example, it translates to easier access to liquidity on more DeFi platforms. Users may also find it easier to use DeFi with native USDT easily transferable within the interchain ecosystem.

Assessing KAVA’s performance
As noted earlier, the Kava blockhain which is a Cosmos SDK chain will facilitate the USDT rollout on the interchain. But what does this mean for the Kava network and its native cryptocurrency? Perhaps this major development may unlock more visibility for the network.

So far Kava has seen a significant surge in market cap in the last 30 days. Kava’s marketcap bottomed out at slightly over $421 million in mid-June but peaked above $704 million on 25 June. It hovered around $578.7 million in the last 24 hours. Open / Comment

2023-07-05 18:30:00 Denmark regulator asks Saxo Bank to dispose of its crypto holdings

The Danish Financial Supervisory Authority has ordered Saxo Bank to dispose of its crypto holdings.

The DFSA released a statement on July, condemning Saxo Bank’s crypto activities. The Danish regulator added that under current rules, it was not legal for banking institutions to perform crypto trading as an additional bank activity for concerns of financial stability.

The statement read as follows,

“Unregulated trading in crypto-assets can create distrust in the financial system, and the Danish FSA considers that it would be unfounded to legitimize trading in crypto-assets.”

How Denmark is regulating crypto
Like a lot of countries, the authorities in Denmark are also dealing with crypto-related activities on a case-by-case basis.

In April, the DFSA granted permission to a local crypto firm Januar to operate in 30 European Economic Area markets.

In March, the Supreme Court of Denmark passed two rulings regarding the status of Bitcoin as a taxable asset. It ruled in the first case that a party gaining profits from selling Bitcoin acquired through several purchases and donations needs to report the sale as a taxable event.

In the second case, it ruled that a user who mined their own Bitcoin and later sold the coins would be subject to the same tax norms. Open / Comment

2023-07-02 22:15:04 Here’s why $0.3 is ADA’s recovery pain point

Buyers’ exhaustion at 0.3?
The H4 market structure, like the D1 price chart, was bearish at the time of writing unless ADA zoomed past $0.3. Nevertheless, a candlestick session close above $0.3 will only be a bullish intent and not a guaranteed rally.

Most importantly, the $0.3 is a March low and a bearish market structure breaker. That makes it a crucial resistance level for near-term bulls. So far, the recovery from 10 June hasn’t broken the bearish market structure. Notably, ADA has been rejected four times at $0.3, further highlighting buyer exhaustion at the level.

The funding rate fluctuated
From June, ADA’s funding rates wavered in Binance Exchange, which could limit a strong recovery capable of bypassing the $0.3 hurdle.

However, the negative sentiment waned, as shown by the rising weighted sentiment (blue). Also, the 90-day Mean Coin Age rose, denoting network-wide accumulation of ADA. These could be a boon for bulls, but traders should track BTC price action for optimized setups. Open / Comment

2023-06-29 18:45:05 Germany rejects Binance’s request for crypto license: Report

No respite in Europe either
After the U.S. Securities and Exchange Commission filed a lawsuit against Binance, the world’s leading crypto exchange is facing trouble across several countries in Europe.

Germany has rejected Binance’s license request. Binance had withdrawn its request for regulatory crypto approval in Austria. It has also given up its registration with regulatory bodies in the United Kingdom and Cyprus.

Binance declared its focus on the European market and to become compliant with the Market’s Crypto Assets (MiCA) regulations. The new regulation will allow crypto firms to operate throughout the single European market by winning regulatory approval in one of those markets.

Binance’s spot trading market share hit near a one-year low in June 2023, as per data from research firm Kaiko. Binance’s market share stood at 55.9 in June. The figure was nearly the same as the last two months. But the slight dip this month made it hit the lowest point since August 2022, when it was at 53.7 . Open / Comment

2023-06-26 18:30:28 Bitcoin: Short-term holders see profit

In a thrilling turn of events, Bitcoin [BTC] shattered a significant price barrier and surged past the $30,000 mark. This paved the way for numerous investors to rejoice in their financial gains. But what does the profitability of these fortunate holders imply for the future path of Bitcoin’s trend?

Bitcoin short-term holders cruise into profit
New data from Glassnode revealed that the recent surge in Bitcoin’s price has brought about a wave of triumph for short-term holders. The leap from approximately $25,000 to beyond $30,000 has pushed many of these holders into a profitable position.

To be precise, over 66.4% of short-term holder coins, amounting to a staggering 1.8 million, have now found themselves in profit. This surge has elevated the profitable short-term holder supply percentage to 96.9%, equivalent to roughly 2.6 million BTC.

Furthermore, historical patterns indicated that such periods of profitability often led to price increases. This means that we could see the price of BTC rise more if more STH is pushed into profit.

Comparing 30-day and 180-day Bitcoin MVRV
An examination of the Bitcoin 30-day Market Value to Realized Value Ratio (MVRV) on Santiment showed the profitability of STH. As of this writing, the 30-day MVRV stood above 0, signaling a favorable state of profitability for BTC held by STH.

The metric surpassed 10% at press time, though there were indications of a slight decline. Open / Comment

2023-06-23 23:15:02 BTC vs XRP : Examining the correlation and clash of opinions

As two of the most prominent cryptocurrencies that have garnered significant attention and interest, Ripple and Bitcoin ignited an ongoing debate about the correlation between both assets.

In the past, some have argued that Ripple’s use cases set it apart from Bitcoin. Others, on the opposing side, believe that the fate of XRP is intricately tied to the performance of BTC.

BTC and XRP diverged
The conversation arose again when John. E. Deaton weighed in on XRP’s reaction to the recent Singapore expansion. The lawyer, who openly supports XRP, explained that the token followed BTC’s direction despite the positive development. Deaton mentioned,

If all XRP holders in are in a common enterprise with Ripple and relying on the successful efforts of Ripple, you would expect XRP to react. Yet, it does what it always does – follows Bitcoin and the macro environment.

Dispute along the same lines
In response to Deaton’s comments, the Ripple community house was divided. While some supported the take, others pointed to the token’s suppression amid Bitcoin’s recent rise, implying that the CryptoLaw founder’s opinion was not accurate. Open / Comment

2023-06-20 22:30:18 Uniswap’s recovery falters near post-FTX levels

Uniswap’s extended drop in the first half of June smashed January lows and the post-FTX level of 4.710. But the DEX token eased at 3.633 and inflicted a strong rebound, hiking 14 to around 4.43 at the time of writing.

UNI’s price action retraced slightly after rejection, just below the post-FTX level of 4.710. In the meantime, Bitcoin temporarily crossed the 26.6k mark but was yet to flip bullish on the higher timeframe.

Will the 50 Fib level rescue bulls
A Fibonacci retracement tool was placed between the swing high at the end of May and the June low on the 4-hour chart. The 61.8 Fib level of 4.61, below the post-FTX level, was a key resistance for the past few days.

The futures market is bearish
The open interest (OI) rates and the number of futures contracts linked to UNI declined massively between 10-12 June. It dropped from > 43 million on 10 June to about 31 million by 12 June. Moreover, it peaked at 39 million on 15 June before dropping again.

Additionally, Uniswap’s Exchange Long/Short ratio corroborated the above inference, with shorts commanding dominance at 53.95% in the 4-hour timeframe. The negative derivative metrics could delay the prospects of the H4 structure flipping bullish. Open / Comment

2023-06-17 19:00:05 Burning questions emerge as Shiba Inu’s burn rate declines

Shiba Inu has been experiencing notable progress in various important areas, especially its price. As the price of SHIB has been on the rise, it reflected positive movement in several key metrics. However, amidst these upward trends, one particular metric has witnessed negative returns over the past few days. A cause for worry?

Shiba Inu’s burn rate declines
Recent data revealed a noticeable decline in the burn rate of Shiba Inu. Information shared by Shibburn, a SHIB burn rate tracker, indicated that the burn rate decreased by more than 85% within the past seven days.

Additionally, according to the Shibburn site, only 360,222 SHIB tokens were burned in the past 24 hours, resulting in an almost -84% burn rate. Also, over 22 hours have lapsed since the last burn. This current burn rate departs from the consistent millions of SHIB tokens burned in previous instances.

Furthermore, a closer examination of the volume metric on Santiment sheds light on a potential cause of the burn rate decline. Analysis of the volume chart indicated a decline in SHIB trading volume.

As of this writing, the volume stood at approximately 64.6 million. It represented a significant decrease from the over 100 million volumes recorded around 11 June. This decline in volume implied a decrease in the number of SHIB transactions, thus contributing to the decrease in the burn rate.

Active addresses surge
Despite the decline in burn rate and trading volume, Shiba Inu experienced a notable increase in active addresses. According to the seven-day active addresses metric, SHIB active addresses began trending upward around 6 June, reaching the highest level in the past two months. As of this writing, there were over 77,000 active addresses. Open / Comment

2023-06-14 21:01:01 TRON faces a massive price slump: The beginning of a downtrend?

The US CPI rose 4% in May year-on-year, lower than April’s 4.9%. This boosted investor confidence that the Federal Reserve could pause its rate hikes. Experts suggested that the Fed could opt to stay put on the interest rates this month and keep the option of raising rates in June.

The Dow Jones Index climbed 0.6% on Tuesday, 13 June, and the S&P 500 also posted gains. This could translate into gains for the crypto market, but Bitcoin was stuck beneath the $26.4k resistance. TRON also showed a bearish market structure on the higher timeframes.

Indicators showed a downtrend was initiated- should short sellers enter the market?
The RSI on the 1-day timeframe fell below neutral 50 to signal momentum had shifted in favor of the bears. The CMF was also below -0.05 to highlight significant capital flow out of the market. Together they showed a rise in bearish pressure in the market. Moreover, the Directional Movement Index also showed a strong downtrend in progress, with both the -DI (red) and ADX (yellow) above 20.

The price action on the daily timeframe showed bearish bias as well. The move below the recent higher low at $0.074 signified a break in the previously bullish market structure. What was more, TRX sellers were able to force prices beneath the $0.0668 mark as well. In doing so they brought the bearish intention of the market to the forefront.

It remains to be seen if this move downward is the beginning of a downtrend or only a particularly sharp correction. The evidence at hand pointed toward further downside. A revisit to the $0.074-$0.078 region can be used to short TRX

The spot CVD suggested selling pressure has been intense for a while now

On May, both the spot CVD and the Open Interest registered their highs for the month of May. Since then, both metrics have been falling. The CVD in particular was in a persistent downtrend, even though TRX pushed to the higher high at $0.085. Open / Comment

2023-06-11 17:30:07 How Ethereum has put the DeFi market at risk

Ethereum and assets linked to the Decentralized Finance (DeFi) sector are experiencing a wave of uncertainty in the market. Although ETH’s dominance in the smart contract space has been unwavering, liquidation in the crypto market arm reached $11 million.

According to Parsec Finance’s data, this liquidation was the highest recorded since 12 May. However, market participants might need to exercise more caution as DefiLlama data shed light on potential threats.

DeFi: Wary of the possibilities
At the time of writing, the multi-chain DeFi aggregator showed that the total liquidatable assets amounted to $1.7 billion. This metric describes the overall worth of DeFi assets with open futures or contract positions which could suffer losses depending on the market direction.

Based on DefiLlamas’ data, most of the liquidation in the last 24 hours occurred via the MakerDAO protocol. However, there were several open staked Ether and Wrapped Bitcoin positions at risk of suffering the same fate.

So, this could prompt market participants to carefully evaluate the risks involved with their sentiment.
Over the last 24 hours, it has not been rosy for the broader crypto market. For instance, ETH’s value decreased by 5.93%. DeFi tokens like Arbitrum and Lido Finance lost 12.49% and 18.16% respectively.

With the falling prices, DefiLlama revealed that another 20% aggregate decrease in value could take another $161 million out of the market.

Although 20% might seem like a lot, the press time market state does not take away the possibility. This is because more than half of the cryptocurrencies in the top 50 by market capitalization have experienced double-digit decreases in the last 24 hours.

TVL in the drain
Interestingly, the Total Value Locked (TVL) has not been exempt from the widespread gloomy picture of the market. Out of almost 200 chains in the sector, only one—zkSync Era—recorded growth in the last 24 hours. Open / Comment