cryptocurrency exchange

Jun 25 2021

Altcoin Roundup: Stablecoin pools could be the next frontier for DeFi

In times like these, when the entire cryptocurrency market is down and there is nary a sector-wide runup to be found, traders have to dig into data to see how the market dynamics may have changed to pinpoint signs of new growth.

Stablecoins are the newest trend to emerge in the decentralized finance (DeFi) arena due to the resiliency they bring to the sector, especially since protocols that are more reliant on the dollar-pegged assets continue to offer token holders low-risk yield opportunities in turbulent market conditions.

Possible evidence of stablecoins rising influence can be found in the difference between the decline in Ether’s (ETH) price and the total value locked in smart contracts. The price of Ether declined by 20% more from its peak than the decline in the total TVL of the DeFi sector.

*TVL in smart contracts vs. Ether price decline. Source:* *Glassnode*

When one takes into account that most of the crypto market saw price declines on par with what Ether experienced, the fact that the DeFi TVL fell less percentage-wise than the price of Ether points to the stability offered by stablecoins.

Stablecoin marketcap increases tenfold

The total amount of stablecoins available in the market has skyrocketed from under $15 billion to more than $113 billion over the past year, led by Tether (USDT) and USD Coin (USDC), bringing an increased level of liquidity to DeFi protocols.

*Top seven stablecoins by market capitalization. Source:* *CoinGecko*

The top stablecoins are included in a large percentage of the liquidity pool (LP) pairs available on DeFi platforms, as well as being included as a standalone token that users can deposit on protocols, such as Aave, to earn a yield. This further makes them an integral part of the burgeoning DeFi ecosystem.

Stablecoins have, in fact, led to the creation of a specialized subset of DeFi protocols, which focus on yield farming stablecoins and provide a safer way for investors to earn a yield while minimizing risk.

Early on in the DeFi craze, protocols attracted new users and deposits by offering high yields that were typically paid out in the native token of the protocol.

With a majority of DeFi tokens now down at least 75% from their all-time highs, according to data from Messari, many of the gains that users thought they made through staking and providing liquidity have evaporated, leaving little to show for the risks taken on these experimental platforms.

The battle for stablecoin liquidity

The rise of successful stablecoin-focused protocols such as Curve Finance, which is a decentralized exchange for stablecoins that uses an automated market maker to manage liquidity, platforms such as Yearn.finance, Convex Finance and Stake DAO battle to offer the best incentives that will attract a larger share of the Curve ecosystem.

Supplying stablecoins to Curve, or as a stablecoin LP like as a USDC/USDT pair, amounts to the blockchain version of a savings account. Many of the top protocols, including the three listed above, offer between 10% and 30% yields on average for stablecoins deposits.

Thanks to smart contracts, users can make deposits to automated, compounding stablecoin liquidy protocols, reducing the stress of the daily market gyrations.

*Total market capitalization of the top 100 DeFi tokens. Source:* *CoinGecko*

The aftermath of the May 19 sell-off is still impacting investors, and in times like these, the yield opportunities provided by supplying stablecoins to DeFi protocols is an attractive way to diversify a crypto portfolio and hedge against market downturns.

Want more information about diversification into the above-mentioned projects?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Altcoin Roundup: Stablecoin pools could be the next frontier for DeFi

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Jun 16 2021

5 Industries That Blockchain Will Disrupt in Future

Nowadays, upheaving technologies in various industries have become fascinating. These techniques are bringing up new opportunities for enterprises and businesses in the worldwide spectrum. They improve our life by amending the way we work on a daily basis. As we know, Blockchain technology is already coming to be popular. But it has also starting to challenge procedures carried out in business sectors. Many industries are finding blockchain platforms better than existing measures for attaining essential elements of the task. Let us look into the five leading industries the blockchain platform is affecting.

Table of content:

The Banking Industry
The Real Estate Industry
The Health Care Industry
The Legal Industry
The Cryptocurrency Exchange Industry
Closing Thoughts

The Banking Industry

Blockchain technology can take care of a few significant issues faced by the banking industries at present. Currently, banks store money for their clients, and they likewise handle the exchange of that money.

Blockchain intrinsically has a secure and reliable system that would give enduring records of the tons of exchanges that happen in the banking business every day. This record system could essentially bring down the risk by providing secure records. Moreover, money could be moved less expensively and quicker by the decentralization lent by blockchain.

The Real Estate Industry

Any individual who has at any point bought or sold a home precisely understands how much desk work is associated with a real estate business. Blockchain technology can totally change the headache that these paper works cause. By utilizing blockchain, the entirety of the reports and trade records can be kept safely with relatively more minor work and less expense. As per Piper Moretti, CEO of the Crypto Realty Group and an authorized realtor, the utilization of blockchain can possibly wipe out third-party interactions.

This system can generate smart contracts that provide financing only when the terms and conditions are fulfilled. Moreover, numerous individuals who have spent time working with a real estate agent understand how baffling the commission rates can get, with some even charging around 6 %.

The cryptocurrency-powered setting is looking forward to changing this situation.

Blockchain’s disseminated design gives power back to property holders and purchasers by tokenizing the procedure and removing brokers, mediators, or negotiators that block direct communications among agents and clients.

The Healthcare Industry

The healthcare industry has been facing a vast disturbance regarding sharing and putting away medical information and records. The potential for blunder, extortion and missed records has made skepticism among customers and healthcare suppliers.

Blockchain can rebuild trust by safely storing medical records that can be precisely and securely moved to and used by specialists and individuals who are in a position of authority.

Blockchain will help in the approval and identification of individuals. Truth to be told, many startup businesses are now attempting to make precise, multi-source people identification a reality across all ventures utilizing blockchain technology.

The Legal Industry

Blockchain will disturb a few areas of the legal industry by possessing the option to store and authenticate reports and information. For instance, litigation dealing with settling issues regarding the wills of the deceased or some other documentation can be abolished.

Records (entailing wills) kept on the blockchain will be shortly and safely ascertained. Any progressions to the reports will be verified and stored. Blockchain technology can likewise remove legal issues related to estate, even including cryptocurrency possessions. This system will offer clients the chance to secure digital possessions so the investor’s inheritance can be passed down to his kids or appointee securely and safely. This technology eradicates prolonged court disputes pleading over the digital inheritance.

The Cryptocurrency Exchange Industry

Digital money is the path to the future financial industry, and fortunately, due to the blockchain system, this digital currency can be securely disseminated and documented. However, the “mining” needed to confirm and validate each digital money exchange requires a considerable measure of processing power.

Lately, this has given rise to a ton of issues on a few platforms when certain exchanges die off because of the sheer measure of calculation required. This issue was costing clients a considerable amount of time and money. New improvements in blockchain space are remaking the manner the cryptocurrency trade industry regulates. The development of alternative platforms has unraveled the extensively crucial problems in the cryptocurrency territory. These platforms utilize smart contracts that analyze in advance the number of calculations that each contract needs. That means that tracking records would be easier and faster.

Closing Thoughts

The blockchain-distributed roster technique empowers a stable and auditable means to transports data. It has the power to transform the way we live, our regular lives, and disrupt those industries that regulate data or transactions. The good thing is all of these disruptions are actually beneficial. Whether or not you prefer to bring up modern technology into your life, it is evident that strengthened safety to our financial database would grant everybody better peace of mind.

Learn more about blockchain technology from the certified blockchain expert. Get to know about many more courses on blockchain and receive certifications for respective courses at the BLOCKCHAIN COUNCIL.

5 Industries That Blockchain Will Disrupt in Future

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Jun 15 2021

Ethereum price bounce to $2.6K fails to excite neutral-to-bearish pro traders

While speaking at the Virtual Fintech Forum in Hong Kong on May 27, Ethereum co-founder Vitalik Buterin commented on obstacles related to the Ethereum 2.0 rollout. Buterin said that there had been several internal team conflicts in the past five years and as a result, he confirmed that Ethereum 2.0 launch is unlikely to occur before late 2022.

In a May 22 report from Goldman Sachs, analysts said that Ether has a “high chance of overtaking Bitcoin as a dominant store of value.” Furthermore, the report noted the growth of the decentralized finance (DeFi) sector and the nonfungible token (NFT) ecosystems being built on Ethereum. Coincidentally, on the very next day, Ether’s price bottomed at $1,750.

On June 14, CoinShares released its weekly fund flows report and Ether investment products had the largest outflows, totaling $12.7 million.

However, the upcoming $1.5 billion options expiry on June 25 could be a turning point for Ether, according to Cointelegraph. This figure is 30% larger than the March 26 expiry, which took place as Ether’s price plunged 17% in five days and bottomed near $1,550.

Despite flirting with $2,600 after a 12% rally over the past week, top Ether traders seem unable to change their neutral-to-bearish positioning according to derivatives data.

The 3-month futures premium is neutral-to-bearish

Normally, Tte 3-month futures will usually trade at a premium to regular spot exchanges. In addition to the exchange liquidity risk, the seller is postponing settlement and usually charges more.

The 6% to 17% annualized return on stablecoin lending indicates bullishness whenever the 3-month premium trades above that range. On the other hand, when futures are trading below the stablecoin lending rate, it is a signal of short-term bearish sentiment.

Huobi ETH Sept. futures premium vs. spot market. Source: TradingView

As shown above, the 8% premium — 26% annualized — vanished on May 13, indicating extreme optimism. Since then, it has been ranging near 2.8%, which is equivalent to 10% annualized. Thus, top traders are neutral-to-bearish according to this indicator as it nears the lower level of the expected range.

The options skew shows moderate signs of fear

The 25% delta skew compares similar call (buy) and put (sell) options and will turn positive when the protective put options premium is trading higher. Whenever this metric surpasses 10%, it is considered a “fear” indicator.

The opposite holds when market makers are bullish and this causes the 25% delta skew indicator to enter the negative range

Deribit Ethereum options 25% delta skew. Source: laevitas.ch

From May 20 to June 8, the indicator stood near 10%, indicating a higher protective put premium, which is usually a ‘fear’ indicator. However, over the last week, it has slightly improved to 7%, within the “neutral” range, but still close to bearish sentiment.

There is no evidence of bullish growth in top traders’ confidence as Ether tests the $2,600 resistance. So until those indicators flip to neutral-to-bullish, traders should act with extreme care before concluding that a bull run is in place.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Ethereum price bounce to $2.6K fails to excite neutral-to-bearish pro traders

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Jun 15 2021

Synthetix Price Reaches $10.28 after 1% Uptrend – Where to Buy SNX

Synthetix is a protocol that allows the trading and issuing of synthetic assets on the Ethereum network. The Synthetic protocol is powered by the SNX token, which has created a space for itself in the rapidly growing crypto market. At the moment, SNX is stabilizing in its value. At the time of writing, the SNX token is trading at $10.28, a 1% gain in value.

SNX Price Analysis

Looking at the chart above about SNX, it is clear that the token has not been doing well since May. The May crash led to a decreased token value, and SNX has since been unable to recover. However, the coin may soon push past the bears, and it may increase to higher values.

SNX still needs overwhelming support from the broader cryptocurrency market because it is one of the factors that will boost its value. Following the recovery of bitcoin, altcoins seem to be recovering, and it remains to be seen whether SNX will pick up the trend. DeFi projects have been shaping the crypto market, and with Synthetix venturing into the sector, it may create a strong future for the token.

The candlestick chart above shows that in the past 24 hours, the token has created an inverted hammer, which indicates that the coin will create a bearish trend in the coming days. For the token to resume a bull trend, it needs to push past higher resistance levels. If it manages to reach $15, it will create a buy from retail investors who want to leverage profits. However, the coin will need overwhelming support for it to reach $15.

Synthetix gained popularity in April this year when the platform allowed its users to trade leading stocks belonging to tech companies. The news was received gladly by traders who wanted to gain exposure to crypto trading when they were at a lower risk of enjoying returns.

Where to Buy SNX tokens

To buy SNX tokens, create an account on any of these exchanges:

eToro makes it possible for you to buy tokens that you can easily sell. The exchange is highly reputable because of its unique set of features. Furthermore, it also allows copy trading so that new traders can copy the trading strategies of seasoned traders in the crypto market.

The other cryptocurrency exchange that supports SNX is OKEx. The exchange offers competitive trading fees that make it easy for new traders to maximize profits. The exchange is also supported in many countries.

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Synthetix Price Reaches $10.28 after 1% Uptrend – Where to Buy SNX

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Jun 14 2021

Bitcoin derivatives data shows pro traders ignored today’s $41K pump

Sometimes all Bitcoin (BTC) needs to pump 10% is a positive remark from someone like Elon Musk.

The Tesla CEO has been pointed to as the culprit for the recent downturn after the company’s May 12 announcement explaining that it would no longer accept Bitcoin payments due to environmental concerns. Musk followed up by saying that he was looking into other cryptocurrencies that required 99% less energy consumption.

However, on June 13, the situation reversed as Musk reassured the public that Tesla did not sell any additional Bitcoin. The post also said that the electric-car producer would resume taking BTC payments as soon as its Bitcoin mining relied on a minimum of 50% clean energy.

In bear markets, top traders act with caution

While retail investors and algorithmic trading bots jump into action as soon as bullish or bearish signals and news flash, top traders tend to act more with more caution. Those who have been around the crypto markets long enough know that positive news might end up being ignored or severely downplayed in bear markets.

On the other hand, even potentially negative news seems to have little to no impact during bull runs. For example, on Sept. 26, 2020, Kucoin was hacked for $150 million. The following week, on Oct. 1, the United States Commodity Futures Trading Commission charged BitMEX for operating an unregistered trading platform and violating Anti-Money Laundering regulations.

Two weeks later, police reportedly questioned the founder of OKEx, forcing the exchange to suspend crypto withdrawals. Had this series of negative news happened while Bitcoin was flat or in a bearish phase, the price would have undoubtedly have stalled during a bear market.

*Bitcoin price at Coinbase in USD, Sept. 2020. Source: TradingView*

As shown above, Bitcoin barely had any negative impact in late September and October 2020. In fact, by the end of November 2020, Bitcoin was up 74% in two months. This is the main reason why top traders tend to ignore positive news during bear markets and vice-versa.

The 3-month futures premium is neutral

A futures contract seller will usually demand a price premium to regular spot exchanges. This situation is not exclusive to crypto markets and happens in every derivatives market because in addition to the exchange liquidity risk, the seller is postponing settlement and this results in a higher price.

The 3-month futures premium (basis rate) usually trades at a 5% to 15% annualized premium in healthy markets. When futures are trading below the regular spot exchange price, it signals a short-term bearish sentiment.

*Huobi 3-month Bitcoin futures basis. Source: Skew*

As shown above, the future basis has been below 11% since May 20 and flirting with bearish territory on multiple occasions as it tested 5%. The current level indicates a neutral position from top traders.

The options skew is no longer signaling fear

The 25% delta skew compares similar call (buy) and put (sell) options side-by-side. It will turn positive when the protective put options premium is higher than similar risk call options.

The opposite holds when market makers are bullish and this causes the 25% delta skew indicator to enter the negative range.

*Deribit Bitcoin options 25% delta skew. Source: laevitas.ch*

The above chart confirms that top traders, including arbitrage desks and market markers, are currently uncomfortable with Bitcoin price as the neutral-to-bearish put options premium is higher. However, the current 7% positive skew is far from the 20% exaggerated fear seen in late May.

Derivatives markets show no evidence of top traders getting excited about the recent $40,000 hike. On the bright side, there is room for leverage buyers to mount positions. Stronger upswings usually occur when investors are least expecting, and the current scenario seems to be a perfect example.

Bitcoin derivatives data shows pro traders ignored today’s $41K pump

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