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3 reasons why Ethereum may underperform Bitcoin in the short-term

Ether (ETH) price outperformed Bitcoin (BTC) by 173% from March 28 to May 15. The incredible bull caused the token to reach a $4,380 all-time high. However, as cryptocurrency markets initiated a sharp drop on May 12, the trend started to reverse, and since then, Ether has underperformed by 25%.

Some might say it is a technical adjustment after a strong rally. While this partially explains the move, it excludes some critical factors, including the fast advance of smart-contract network competitors and Bitcoin being adopted as an official currency for the first time.

Ether / Bitcoin price at Binance. Source: TradingView

Notice how the ETH/BTC ratio rallied again on June 8, reaching 0.77 despite Ether’s price remaining 36% below its all-time high and ranging near $2,800. To understand what could have been driving the ratio, analysts need to analyze Ether and Bitcoin price drivers separately.

Mike Novogratz may have been misinterpreted in his interview

Ether’s bull run potentially got an extra leg due to intense praise from institutional investors. Traders could have picked up a sense of urgency, known as FOMO, and promptly shifted their Bitcoin exposure towards the leading altcoin.

On May 13, New Yorker magazine published an interview with Mike Novogratz, the founder, and CEO of Galaxy Digital. In the conversation, Novogratz said:

“All of a sudden, you have decentralized finance and NFTs both on Ethereum at the same time roughly, with wild accelerating growth.”

Novogratz was then questioned on how much higher Ether could reach, to which he answered:

“You know, it’s dangerous to give predictions on the highs. But could it get to $5,000? Of course it could.”

While an Ethereum holder might have interpreted it as a prediction, others could have understood it as a wild guess, likely depending on general crypto market conditions.

However, roughly a week later, a report from Goldman Sachs revealed the global investment bank believed that Ether had a “high chance of overtaking Bitcoin as a dominant store of value.” Interestingly, one of the main quotes in the report was directly from Novogratz’s interview with the New Yorker.

At its peak, Binance Chain controlled 40% of DEX volume

While Ethereum has kept its 80% dominance on net value locked in decentralized finance (DeFi) applications, Binance Smart Chain (BSC) has reached a 40% market share on DEX exchanges.

PancakeSwap DEX daily volume vs. top 10. Source: DeBank

The successful growth of the DeFi industry and non fungible token (NFT) markets caused intense congestion on the Ethereum network, raising median fees to $37 in mid-May. That bottleneck triggered an activity exodus to competing networks, and PancakeSwap was best positioned to capture that flow.

Related: Here’s why one analyst says Bitcoin will outperform Ethereum in the short term

To make things worse, important DeFi projects expanded to Binance Smart Chain, including yield aggregator Harvest Finance and decentralized exchange aggregator 1inch. Investors quickly realized that the trend could continue as the competing smart-contract network provided an easy solution for dApps looking for cheaper alternatives.

No country is adopting the ‘Ethereum standard’

Bitcoin might have had a subpar performance over the past 30 days because it has failed to break the $42,000 resistance multiple times. However, a major milestone was achieved when El Salvador became the first country to make Bitcoin legal tender on June 12.

After the Central American country made the decision law, a handful of other Central and South American countries began discussing the advantages of taking a similar path.

Ethereum is undertaking a redesign that will change the issuing rate and how entities get paid to secure the network by moving away from the Proof of Work model. Meanwhile, Bitcoin is making sure that every upgrade is backward-compatible and maintaining its strict monetary policy.

That is the main reason why Ether will not outperform Bitcoin over the next 12 months, or at least until there’s a better understanding of how Ethereum network dominance of smart contracts will be.

Professional investors avoid uncertainties at all costs, and cryptocurrency markets already present plenty of that. There’s just no reason for institutional investors to ignore the risks while competing networks eat Ethereum’s lunch.

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.

3 reasons why Ethereum may underperform Bitcoin in the short-term

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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

SNX Price Analysis 15 June
Source: TradingView

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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Cointelegraph Consulting: DeFi projects launch on Polygon, usage skyrockets

In the midst of the hectic crypto market, the gas fees in the decentralized finance (DeFi) sector have skyrocketed, once again highlighting the value of layer-two scaling solutions. Cointelegraph Consulting teamed up with Covalent to discover the numbers behind Polygon, the network that is onboarding an increasing number of decentralized applications, from SushiSwap to bZx.

Aave, DeFi’s lending giant, launched on Polygon this April and has already lured away about 66,000 unique users to the layer-two version. Nearly $12 billion has been deposited since the launch, and over $7 billion has been borrowed. Though what is important is that only $158 has been spent on gas across the entire Aave’s Polygon version.

Notably, the major fraction of borrows involves stablecoins, with USD Coin (USDC), Dai and Tether (USDT) making up roughly 60% of borrowings on Aave’s Polygon version. In fact, the breakdown of the borrowings reveals that Aave managed to execute its strategy that prevents users from risky borrowing against volatile assets, which in turn usually leads to liquidations.

Hot off the heels of 1inch Network’s launch on Polygon on May 12, we take a look at its usage as well. 1inch on Polygon has reached almost $18 million in daily swaps by dollar value, with the most swaps denominated in USDT, Wrapped Ether (WETH), USDC or DAI. 

There have been nearly 10,000 swaps facilitated thus far. The platform has already facilitated $43 million in swaps, but only $25 of gas was used to swap this amount.

Amid Ethereum network congestion and rising costs, Polygon is gaining momentum due to its astonishingly low transaction fees. With more DeFi projects pursuing multichain strategies, Polygon could onboard more projects in the near future.

For more charts, market signals and carefully curated news analysis, download the full edition of this issue.

Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers, Covalent, the newsletter dives into the latest data on social media sentiment, on-chain metrics and derivatives.

We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.

Cointelegraph Consulting: DeFi projects launch on Polygon, usage skyrockets

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What is SHIB (Shiba Inu) Coin? Why it is called as ‘Dogecoin Killer’ cryptocurrency?

What is SHIB (Shiba Inu) Coin Why it is called as ‘Dogecoin Killer’ cryptocurrency

Just when you think, okay things can’t get any ridiculous, Shibe Inu ($SHIB) comes wagging its tale in the scene of cryptocurrency. Although Bitcoin, Ethereum, and a few other cryptocurrencies have a plausible use case, the meme-worthy nonsense around crypto’s altcoins is hitting epic new heights.

Last week, as Elon Musk prepared to host Saturday Night Live, the Dogecoin ($DOGE) hysteria resulted in a massive price increase. In a skit with his mother, he discussed his favorite dog-themed cryptocurrency. 

But can you remember the iconic Shibu Inu meme? The dog who was the face of Dogecoin. Well now, its own cryptocurrency and is still acing the internet game. Dogecoin does not seem to be the only meme cryptocurrency anymore. Shiba Inu coin is based on Ethereum and is the fastest-growing cryptocurrency in the top 100 by market capitalization. Shiba Inu coin, positioned as a Dogecoin replacement, has returned 1,970.57% in the last seven days.

Dogecoin’s mascot is a Shiba Inu dog, so the current crypto SHIB has shamelessly plagiarised the meme currency in order to soar on its bandwagon.

Since exponential growth is popular among newly launched cryptocurrencies, the surge should not come as a surprise and should be the only reason to invest in this coin. This is because they have a lower monetary worth. According to CoinMarketCap, the value of Shiba Inu is currently $0.00000163, relative to $0.0000006 in mid-April.

One significant distinction between the two currencies is that Dogecoin is a coin, while Shiba Inu is a token. Cryptocurrencies have their own blockchains, while crypto tokens are designed on top of an established network. SHIB tokens are used to purchase Shiba Inu coins.

Shiba Inu dubbed the “Dogecoin Killer,” is quickly gaining popularity among Chinese cryptocurrency traders.

SHIB, according to its creators, will develop its own ecosystem. ShibaSwap, a decentralized exchange on the Ethereum network where group members can trade, purchase, sell, and HODL for prizes, can bring this to reality. It’s also billed as an artist incubator, implying that non-fungible tokens (NFTs) can play a major role in the ecosystem.

Apart from that, there isn’t much more about SHIB. They’re cryptocurrency tokens, according to the company’s website, and they enable users to carry trillions of them.

Shiba Inu’s reputation has been soaring as a result of the recent notoriety and excitement around Dogecoin. It totally ripped off from Dogecoin’s popularity.  It’s been so famous that it’s now listed on Binance and FTX, as well as OKEx, KuCoin, and Poloniex.

What is SHIB (Shiba Inu) Coin? Why it is called as ‘Dogecoin Killer’ cryptocurrency?

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What is NFT? What does NFT Stand for?

What’s hot? NFT, what else? The world is going bananas over this new term for over a year now. From art to music, to NFT of famous tweets, yes you heard it right, these digital assets are being bought like a 14th-century Roman artifact.
But are NFTs worth all the hype and well, money? Many analysts believe they won’t last long. But many others claim that NFTs are here to stay and will forever transform investing. But first, what in the world is NFT?

Table of Contents 

  • What Is an NFT? What does it mean?
  • Understanding NFTs
  • How do NFTs work?
  • So why is everyone going gaga over Non-Fungible Tokens?
  • Wrapping up

What Is an NFT? What does it mean?

NFT stands for Non-fungible token. 

Okay that just complicated it further, didn’t it? No worries, keep reading.
A digital artifact that reflects real-world assets such as art, music, in-game goods, and videos is known as an NFT. They’re purchased and sold digitally, sometimes with cryptocurrency, and they’re mostly encoded with the same program as many other cryptos.

Even though they’ve been around since 2014, NFTs are gaining in popularity as a more common way to purchase and sell digital art. After November 2017, a staggering amount has been invested in NFTs.

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Understanding NFTs

Cryptocurrencies, like real currency, are fungible, meaning they can be sold or exchanged for one another. One Bitcoin, for example, is still worth the same as another Bitcoin. Similarly one Ether is equal to another unit of Ether. Cryptocurrencies are ideal for use as a stable means of exchange in the digital era because of their fungibility.

NFTs change the crypto model by making each token one-of-a-kind and irreplaceable, making it difficult to compare two non-fungible tokens. They are digital representations of properties that have been compared to digital passports and each token has its own special, non-transferable identification that allows it to be distinguished from others. They’re also extensible, which means you can “breed” a third, special NFT by combining two NFTs.

NFTs, like Bitcoin, have ownership specifics that make it easy to identify and pass tokens between holders. In NFTs, owners have the amenity to add metadata or facets related to the asset. Fair exchange tokens, for example, may be used to represent coffee beans. Artists may also sign their multimedia artwork in the metadata with their own name.

How do NFTs work?

The bulk of NFTs are stored on the Ethereum network.. Certain NFTs, which store additional information that allows them to function differently are also supported by the blockchain. Ethereum, like bitcoin and dogecoin, is a cryptocurrency, but the blockchain frequently accepts such non-fungible tokens (NFTs), which store additional information that enables them to function differently 

Person tokens that are part of the Ethereum network that have extra information are known as NFTs. The extra content is the most important feature, as it allows them to be displayed as art, music, video (and so on) in JPGs, MP3s, photographs, GIFs, and other formats. They can be bought and sold like any other medium of art because they have value – and their value is largely dictated by supply and demand, much like physical art.

But that doesn’t suggest, in any way, that there is just one digital version of NFT art available to purchase. One can obviously replicate them, much like the art prints of originals are used, bought and sold, but they won’t be of the same value as the original one. Duplicates of NFT are still blockchain artifacts.

So why is everyone going gaga over Non-Fungible Tokens?

Non-fungible tokens are a step further from the comparatively straightforward definition of cryptocurrencies. Modern finance systems provide complex trading and leasing systems for a variety of asset categories, including real estate, lending contracts, and artwork. Since they make digital representations of physical assets, NFTs are a move forward in the reimagining of this infrastructure.

To be sure, neither the concept of digital representations of tangible assets nor the use of unique identity is new. Such ideas, when combined with the advantages of a tamper-resistant blockchain of smart contracts, become a powerful force for transformation.

Business efficiency is perhaps the most apparent advantage of NFTs. Converting a tangible asset to a digital asset streamlines operations and eliminates middlemen. NFTs represent digital or physical artwork on a blockchain, eliminating the involvement of any agents and enabling artists to engage directly with their viewers. They will also assist companies in expanding their activities. For example, an NFT for a designer purse will make it easier for different supply chain players to connect with it and track its provenance, production, and delivery.

Non-fungible tokens for identity management? Yes an absolute match made in heaven. Consider the example of physical ID cards for workers in a firm, which must be shown at any point of entry and departure. It is possible to streamline the entry and exit processes for the officials by translating individual ID cards into NFTs, each with its own distinct distinguishing characteristics. NFTs may also be used for identity protection in the digital world, expanding on this usage case.

Wrapping up

NFTs have the potential to alter digital exclusivity and redefine digital property rights. Celebrities have started to partner with NFT ventures, and others have broken records in terms of sales. As a result, we anticipate continued NFT growth in 2021 and beyond, as well as greater integration between DeFi and NFTs, making them more liquid and valuable. To summarise, combining art and collectible attributes seems to be one of the most effective ways to draw new buyers.

Whatever anyone says, NFT is totally here to stay. They have become a new trinket for the uber-rich. And the fact that you can actually make some real money if you can successfully pull it off is a cherry on cake. NFTs have completely revolutionised the meaning of digital art, and the way they are selling out for outstanding amounts in auctions clearly signal they will soon become a part of the art and collectibles.

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What is NFT? What does NFT Stand for?

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