Crypto prices steady, Arbitrum DAO drama and what’s coming down the line in markets

https://www.theblock.co/post/224434/crypto-prices-steady-arbirtrumdao-drama-whats-coming-markets?utm_source=rss&utm_medium=rss

Crypto prices shrugged off the Commodity Futures Trading Commission’s case against Binance early in the week as bitcoin clocked its best quarter since 2021.

Bitcoin was trading at $28,200, up about 2.6% over the past week, according to Coinbase data via TradingView. The first quarter of the year saw bitcoin jump more than 70% as risk assets rallied, leading to its best quarter since the first of 2021. 

Binance and CEO Changpeng Zhao are being sued by the CFTC for allegedly violating federal laws and not registering the exchange in the U.S. The regulator’s move caused crypto prices to dip at the top of the week before shrugging off the news. The BNB coin fell about 3% to $314 over the past week.

Ether was up about 3.2% over the past seven days, trading around $1,800. Ripple’s XRP added around 18% following news from its case with the SEC, although a verdict is still some time off. Cardano’s ADA added over 8%, and dogecoin jumped 7.5% in the same period.

DAO-rama

The price of ARB fell to $1.18, down 7.2% over the past 24 hours, according to data via CoinGecko.

The drop followed the news that the Arbitrum Foundation had begun selling ARB tokens for stablecoins before the community had formally ratified its budget. 

 
"The Arbitrum Foundation set aside nearly $1 billion worth of ARB tokens and utilized some of it before its governance proposal was ratified without disclosing how the tokens were utilized," Eden Au, a research director at The Block Research, said.
 
This left the community to speculate whether the foundation had sold some of its tokens before voting, he said.
 
Arbitrum’s long-awaited airdrop went live on March 23 with governance tokens given to users of the Ethereum Layer 2 scaling solution. Over one billion ARB tokens were allocated to nearly 300,000 wallets, creating a decentralized autonomous organization, the ArbitrumDAO. 

What’s coming up

With the first quarter of 2023 over and done with, several key economic indicators lie ahead in April for the U.S. Traders and the Fed will keenly watch next Friday’s U.S. jobs report. Any signs of a softening labor market could impact interest rate expectations. 

Inflation data for March on April 12 will also prove pivotal to any potential Fed pivots or pauses. An advanced estimate of first-quarter GDP will be released on April 27. 

There’s no Fed decision in April, with the next FOMC interest rate decision expected on May 3. The CME’s FedWatch tool shows markets are split on whether the Fed will pause or increase by 25 basis points again. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Arbitrum’s first governance proposal sparks controversy with $1B at stake

https://cointelegraph.com/news/arbitrum-s-first-governance-proposal-sparks-controversy-with-1b-at-stake

A proposal to fund the Arbitrum Foundation with 750 million ARB tokens — nearly $1 billion — raised controversy in the ARB community over the weekend, as the Foundation announced that it was only ratifying a decision that had already been made. 

The conflict comes after a few days the layer-2 protocol airdropped its governance token.

According to the AIP-1 proposal on Arbitrum’s DAO, the 750 million tokens would be used to cover “Special Grants, reimbursing applicable service providers […] and covering ongoing administrative and operational costs of The Arbitrum Foundation.”

Among tokens holders, over 70% are against the move at the time of writing.

Screenshot: AIP-1: Arbitrum Improvement Proposal Framework. Source: Arbitrum DAO. 

After facing backlash from community members, the Foundation said in a forum post on April 2 that AIP-1 was a ratification, not a proposal. It also noted that part of the tokens were already sold for stablecoins. In other words, its billionaire budget and allocations would not be subject to an on-chain governance process.

The Arbitrum Foundation claims the symbolic first governance attempt failed due to communication problems and decisions that were “clearly not articulated correctly”:

“One of the mistakes in the drafting of AIP-1 was a failure to note at the outset that this proposal was intended to act as a ratification of the initial setup of both the Arbitrum DAO and the Foundation that has been created to serve the DAO. […] the point of AIP-1 was to inform the community of all of the decisions that were made in advance.”

Commenting on the governance forum, members of the community pointed out that Arbitrum’s team “has been dumping tokens that were initially informed to the community as locked tokens,” claiming that “all tokenomics page shows only User airdrop + DAO airdrop tokens as unlocked” with remaining “tokens to unlock in March 2024.”

Others highlighted that under the United States securities laws, the anticipated sale would be considered fraud, and that U.S. citizens who have bought ARB tokens or claimed the airdrop “are eligible for legal remedies.”

“I will be pursuing this with my lawyers and expect to file a securities fraud lawsuit in the next few days. […] Immediately, the Arbitrum Foundation is advised to halt all illegal sales of the token that are being done without any authorization and against the provisions of the law,” said a community member.

Arbitrum’s blockchain holds 65% of the Ethereum layer 2 market share, shows data from the layer-2 analytics site L2Beat. The highly anticipated launch and airdrop of its native governance token took place on March 23, with hundreds of thousands of eligible users and DAOs claiming ARBs. Overwhelming user demand led the airdrop claim page to crash shortly after its launch, Cointelegraph reported. 

Arbitrum (ARB) Drops 11% as Foundation Dumps 50M Tokens For Stablecoins

https://beincrypto.com/arb-drops-11-foundation-dumps-50m-tokens/

Arbitrum’s decentralized governance plan is off to a rocky start after the Foundation started selling ARB tokens for stablecoins ahead of the community ratification.

The Arbitrum Foundation had sold 50 million tokens from the 750 million ARB tokens it allocated itself before requesting authorization from the community.

Arbitrum Foundation Sold ARB (Source: Etherscan)

In an April 2 blog post, an employee of the Foundation tried to clarify its actions.

AIP-1

In March, Arbitrum airdropped its users with its token and announced plans to switch to decentralized governance. Before the announcement, the Foundation had made some decisions, including allocating 7.5% of the total token supply to itself.

The Arbitrum Foundation launched the Arbitrum Improvement Proposal (AIP-1) to ratify these decisions. However, issues arose after it was revealed that the Foundation did not wait for the vote outcome before selling the tokens. The vote will end on April 3, but an overwhelming majority of the community, 70%, have voted against it.

Arbitrum’s Foundation Response

Patrick McCorry explained that the Foundation sees the AIP-1 proposal as mere ratification. According to him, this was why it started using the tokens in the interest of the DAO, including converting some ARB tokens into stablecoins.

McCorry said setting up a DAO creates a chicken and egg problem. In this case, certain parameters require a decision before the DAO is even formed.

Going by McCorry’s explanation, AIP-1 is not a vote but a way to inform the community about decisions already taken. He added that AIP-1 gives the Foundation some blank check powers because they’re fundamental for the network to retain its competitive edge.

Community Lashes Arbitrum

Meanwhile, several crypto community members have criticized the Foundation’s actions, with some suggesting they buy back the sold tokens.

Crypto investor Zaheer said the Foundation has only one way of repairing its reputation. According to Zaheer, the Foundation should submit a “proposal to rebuy the sold ARB and issue a new proposal for the DAO to determine how, when, and how much ARB will be sold for the foundation.”

Zaheer added:

“If they double down and continue selling after the community clearly voted against, all goodwill in the near term will be dead.”

Meanwhile, the Foundation’s action has negatively affected ARB’s price performance. The token has declined 10.79% in the last 24 hours to $1.17 as of press time, according to BeInCrypto data.

Arbitrum ARB Price Chart
ARB Price Performance (Source: BeInCrypto)

The post Arbitrum (ARB) Drops 11% as Foundation Dumps 50M Tokens For Stablecoins appeared first on BeInCrypto.

Top 3 Bullish Cryptocurrencies of the Week as per CoinMarketCap

https://thenewscrypto.com/top-3-bullish-cryptocurrencies-of-the-week-as-per-coinmarketcap/

  • Investors are betting that the XRP token’s developers can beat the SEC in court.
  • The Hedera community was also looking forward to the March 31 mainnet v0.35.2 update.

Major cryptocurrencies have fared very well over the last week despite significant crackdowns, indicating that the crypto market is now fairly steady. Here we cover the top bullish coins of the week.

XRP

XRP is one cryptocurrency that is on the rise. As per CMC, XRP the sixth largest cryptocurrency by market cap and presently selling at $0.54, is up over 20% in the previous week.

It’s not just this week, though; the first three months of 2023 have witnessed a 55% increase from January’s low. Investors are betting that the token’s developers can beat the SEC in court, which is contributing to the asset’s price increase. According to CMC, the XRP price today is $0.521545. XRP is up 2.11% in the last 24 hours.

Hedera (HBAR)

The Hedera coin’s price jumped from a local support zone of $0.057-0.056 on March 29 and has been climbing since. Fresh Supply Co. (FSCO), the biggest user of Mastercard Provenance, recently announced that it will be transitioning from Mastercard’s private blockchain to the public Hedera network, which may explain the unexpected rise.

The Hedera community was also looking forward to the March 31 mainnet v0.35.2 update. This positive price action has prompted buyers to break through a bullish pattern that has held for the last month. According to CMC, the Hedera price today is $0.072764. Hedera is up 3.56% in the last 24 hours.

Stellar (XLM)

Since mid-January, Stellar Lumens (XLM) has been trading inside a negative range, but it has now broken out. Because of this, XLM’s bias changed from being bearish at the range of highs to being quite positive. During the last 7 days, the price of XLM has increased by nearly 20%.

The Brazilian central bank began testing a new kind of digital money at the beginning of this month. Digital Real, a Brazilian CBDC, is putting the Stellar blockchain to the test.

Shortly after, Pendulum announced the public availability of the Spacewalk bridge, which links the Polkadot network to the Stellar blockchain, allowing the Polkadot ecosystem to use fiat and stablecoin currencies. Polkadot will be able to use Stellar’s cross-border payment infrastructure, as well as the rest of Stellar’s infrastructure, through the Spacewalk bridge. According to CMC, Stellar price today is $0.110710. Stellar is up 2.14% in the last 24 hours.

USDC’s Depeg Laid Bare the Risks Traditional Finance Poses to Stablecoins

https://www.coindesk.com/consensus-magazine/2023/04/02/usdcs-depeg-laid-bare-the-risks-traditional-finance-poses-to-stablecoins/

Other, smaller-circulation stablecoins lost their pegs, too, including BUSD, issued by Paxos, and crypto-backed stablecoin DAI, issued by MakerDAO. Only USDT seemed to benefit from the turmoil, briefly exceeding $1, most likely because of investors shifting out of the depegged stablecoins.

$779,000,000,000 Asset Manager Touts Bitcoin and Crypto, Says ‘Future of Banking Has No Banks’

https://dailyhodl.com/2023/04/02/779000000000-asset-manager-touts-bitcoin-and-crypto-says-future-of-banking-has-no-banks/

A financial giant with nearly $800 billion in assets under management is placing Bitcoin (BTC) and crypto in the spotlight amid the crisis in the US banking sector.

An AllianceBernstein report circulated by former Coinbase CTO Balaji Srinivasan says bank account holders of all sizes are now dealing with a novel risk after the high-profile collapse of Silicon Valley Bank (SVB).

The firm says people now realize the dangers of hyper-speed bank runs that can be magnified by social media and instant payment systems.

And even if the Federal Reserve is willing to step in and provide liquidity to troubled banks, the report says depositors have good reason to look for other options.

“The inconvenience of dealing with a bank failure and obtaining your funds with a lag just does not work for depositors, particularly business depositors.”

AllianceBernstein says Bitcoin and crypto could serve as alternatives to the traditional banking system, especially amid further banking crises and money printing from the Fed.

“We argue that smart contract based decentralized finance systems would suddenly appear as built for this world. Instant liquidation of positions without any lag, do-it-yourself (DIY) risk vaults on the blockchain, deposit stablecoins for revenue-based yields from financial protocols, in our view will become the new-age DIY bank accounts; way more customized, intelligent and real time, leading to more freedom and financial independence for the young users of tomorrow. 

The future of banking has no banks.” 

The firm notes that crypto’s price volatility is the largest obstacle toward its adoption as a viable long-term alternative to traditional banking.

“Bitcoin as digital bearer asset may not immediately appeal to customers who view stability in USD terms. But as we head towards another pivotal moment in monetary history, savers would also watch for not just stability in nominal value, but if any further accidents forces the Fed to breach again the ‘real value’ of the government currency, which many Bitcoin believers have suggested as the final path to hyper-Bitcoinization.”  

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The post $779,000,000,000 Asset Manager Touts Bitcoin and Crypto, Says ‘Future of Banking Has No Banks’ appeared first on The Daily Hodl.

Stress test? What Biden’s bank bailout means for stablecoins

https://cointelegraph.com/news/stress-test-what-biden-s-bank-bailout-means-for-stablecoins

The collapse of Silicon Valley Bank (SVB), which suffered a bank run after revealing a hole in its finances over the sale of part of its inflation-hit bond portfolio, led to a depegging event for major stablecoins in the crypto sector, leaving many to wonder whether it was a simple stress test or a sign of weakness in the system.

The second-largest stablecoin by market capitalization, the Centre Consortium’s USD Coin (USDC), saw its value plunge to $0.87 after it was revealed that $3.3 billion of its over $40 billion in reserves was held at SVB and was, as a result, possibly lost. Coinbase seemingly exacerbated the crisis when it, a member of the Consortium, announced it was halting USDC-to-dollar conversions over the weekend.

As USDC lost its peg, so did decentralized stablecoins using it as a reserve asset. The most notable of which is MakerDAO’s Dai (DAI), a cryptocurrency-backed stablecoin that has well over half of its reserves in USDC.

Stablecoins restored their peg after the United States government stepped in and ensured depositors at SVB and Signature Bank would be made whole, in a move meant to stop other entities from suffering irreparable damage. According to United States President Joe Biden, taxpayers did not feel the burn of the bailout, and the traditional finance system was safe after the intervention.

The crisis, however, did not end there. While the U.S. government stepping in helped stablecoins recover their peg, many quickly pointed out that taxpayers would ultimately suffer the depositors’ bailout.

The banking crisis’ effects on digital assets

Financial institutions have since banded together to protect other banks, with investors and depositors raising questions about the stability of a number of other institutions, including Deutsche Bank.

Credit Suisse collapsed after investments in different funds went south and an unsubstantiated rumor on its impending failure saw customers pull out over 110 billion Swiss francs of funds in a quarter from it, while it suffered a loss of over 7 billion CHF.

Recent: The secret of pitching to male VCs: Female crypto founders blast off

The collapse saw the Swiss government broker an “emergency rescue” deal where Credit Suisse was acquired by rival UBS at a steep discount. Speaking to Cointelegraph, Jason Allegrante, chief legal and compliance officer at blockchain infrastructure company Fireblocks, said that the banking crisis was partly caused by rising interest rates exposing banks with large portfolios of low-interest-rate bonds to risk.

Per Allegrante, the role of the liquidity coverage ratio, a regulatory requirement forcing banks to hold a certain amount of “high-quality liquid assets” to prevent these liquidity crunches, is not being openly discussed.

He said it’s “entirely possible we are in the early stages of a nationwide run on regional banks.” If this happens, he said, there will not only be widespread regional bank failure but there will “likely be further consolidation and concentration of deposits in a handful of large, systematically important banks.”

He added that such a crisis would put pressure on regional banks to sell assets to meet liquidity needs and could ultimately lead to more bank failures. Allegrante added that this would have “far-reaching consequences for the digital asset industry in the United States and abroad.”

Becky Sarwate, spokesperson and head of communications at cryptocurrency exchange CEX.io, told Cointelegraph that the crisis could be a boon for digital assets, saying:

“One thing is clear: Similar to how Bitcoin blossomed from the wreckage of the 2008 financial crisis, the failure of institutions like SVB and Signature Bank is compelling evidence for diversification across multiple investment verticals.”

Sarwate added that when “traditional pathways prove equally volatile from the perspective of a crypto curious participant, it throws the inherent risk of any market participation into relief.” She added that while digital assets lack some of the protections seen in traditional finance, they “offer an alternative set of benefits that, in our current climate, could be appealing to nervous investors.”

Investors holding onto stablecoins and earning yield through them, however, may have believed they were already diversifying and sidestepping the market rout that was occurring. Circle, the issuer of USDC, suggested the depeg event was a “stress test” that the system weathered.

Mitigating risk for stablecoins

If the Federal Deposit and Insurance Corporation (FDIC) were to extend insurance to crypto-related institutions, it could alleviate concerns about the security of digital assets under their custody. That same insurance helped USDC and other stablecoins recover their peg after the collapse of SVB, making a strong case for FDIC insurance to boost crypto adoption.

While that insurance typically only goes up to $250,000, the FDIC opted to make every depositor whole, essentially protecting Circle’s $3.3 billion in reserves held at the bank. Speaking to Cointelegraph, a spokesperson for the stablecoin issuer said that the events highlighted “how there’s a co-dependency — not a conflict — in banking and digital finance.”

The spokesperson added that just as the 2008 global financial crisis led to comprehensive banking reforms, it may be “well past time that the U.S. acts on federal payment stablecoin legislation and federal oversight of these innovations.” The spokesperson added:

“The emphasis here is the importance of shoring up markets and confidence, protecting consumers and ensuring that outcomes, in the long run, prove that the stress test could have been weathered by traditional financial firms and Circle.”

To Circle, a stable U.S. banking system that ensures deposits are safe and accessible is essential to the financial system, and the U.S. government’s actions to make depositors whole demonstrated their “recognition of this fact.” The safety and soundness of the banking system are critical to dollar-backed stablecoins, the firm added.

Circle has revealed that it has since moved the cash portion of USDC’s reserve to Bank of New York Mellon, the world’s largest custodian bank with over $44 trillion in assets under custody, with the exception of “limited funds held at transaction banking partners in support of USDC minting and redemption.”

The firm added it has “long advocated for regulation such that we can become a full reserve, federally supervised institution.” Such a move would insulate its “base layer of internet money and payment systems from fractional reserve banking risk,” the spokesperson said, adding:

“A federal pathway for legislation and regulatory oversight allows for the U.S. to be represented and have a seat at the table as the future of money is being discussed around the world. The time to act is now.”

Commenting on the depeg, Lucas Kiely, chief investment officer of Yield App, noted that what happened can be “largely attributed to fears around liquidity,” as most stablecoins are “essentially an IOU note backed by securities that holders don’t have a lien on.”

Per Kiely, stablecoins have “been sold as asset-backed instruments, which like any other asset carry investment risk.” Danny Talwar, head of tax at crypto tax calculator Koinly, said that USDC and Dai may “temporarily suffer from a lack of confidence over the short to medium term following the mini-bank run.”

CEX.io’s Sarwate, however, said the confidence in these stablecoins “has gone unchanged,” as both Dai and USDC “retreated back to their reflections of the U.S. dollar and resumed all prior uses they enjoyed before the depegging event.”

To members of the decentralized autonomous organization (DAO) that governs Dai, MakerDAO, confidence was seemingly unaffected. A recent vote has seen members of the DAO opt to keep USDC as the primary collateral for the stablecoin over diversifying with Gemini Dollar (GUSD) and Paxos Dollar (USDP) exposure.

Given USDC’s move of the cash portion of its reserves to a stronger custodian, the depegging event may have simply strengthened both stablecoins after a short period of panic.

Leveling the playing field

That strengthened position, according to Koinly’s Talwar, could also come as cryptocurrency startups and exchanges search for alternative banking providers, although the “de-banking of crypto businesses could seriously harm the sector and innovation in blockchain-based technologies” if they fail to find alternatives.

In the medium term, Talwar said, the collapse of cryptocurrency-friendly banks “will compound with the more crypto-native collapses from the past year, resulting in a challenging environment for blockchain innovation to thrive within the United States.”

Yield app’s Kiely said that the U.S. government’s recent bailout was different from the one seen in the global financial crisis, although it raises “questions over whether there needs to be an adjustment in the supervisory guidelines to address interest rate risk.”

The Fed’s bailout, he said, could be removing incentives for banks to manage business risks and send a message they can “lean on the government’s support if customer funds are mismanaged, all with no alleged cost to the taxpayer.”

Recent: How a TikTok ban in the US could affect the crypto industry

As for stablecoins, Talwar said he sees a need for more stablecoin options, even though the launch of euro-backed stablecoins helped in this regard. CEX.io’s Sarwate noted that the U.S. banking and stablecoin crisis helped “level the playing field between traditional finance and crypto.”

While crypto is still a nascent industry, she said, there’s “potential within the space for visionaries to lead by example and carve out an alternative to speculative investing. In the long term, this could help yield a more balanced system.”

In the typical crypto ethos, players in the space are already finding ways to mitigate risks associated with the traditional financial system. While U.S. regulators warn against crypto, the sector moves to strengthen its position in the financial world.

Shiba Inu (SHIB) Price Prediction 2025-2030: Did the burn spur SHIB prices

https://ambcrypto.com/shiba-inu-shib-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject. 

There is mild but consistent growth in the total number of Shiba Inu (SHIB) tokens being burnt as the price of the meme coin takes a breather. Over 5.2 million SHIB tokens have been burnt over the past 24 hours. Shiba Inu has been on a rampage for the better part of the week.

Despite the launch of the much-awaited Shibarium L2,  whale trading activity continues to decline.

SHIB Its price is now making a mild correction and currently trading at $0.00001061, down by 1.7% over the past 24 hours. Shiba Inu has continued to maintain its position as the second largest meme coin after Dogecoin (DOGE).

The lead Shiba Inu developer Shytoshi Kusama had earlier promised that Shibarium would not only serve as a Layer 2 platform for Shiba Inu ecosystem members, but would also attract members of the broader crypto community. Built on the Ethereum blockchain, Shibarium is expected to bring a lot of attention to meme coins. 

The Shiba Inu token took a massive hit in the wake of the Silicon Valley Bank collapse. The token tumbled down the price chart but has been trying to recover.


Read Price Prediction for Shiba Inu [SHIB] for 2023-24


That being said, the arrival of Shibarium might potentially mark a new era for Shiba Inu. One in which it moves from being just a meme cryptocurrency to being a platform that offered genuine utility. Just last week, the project announced the public beta launch of Shibarium, a launch that is expected to push SHIB’s price in the future.

Shiba Inu was founded in 2020 by an anonymous techpreneur. Elon Musk and Vitalik Buterin, both tech billionaires, have praised the project. Shiba Inu has been successful in attracting people who missed the Dogecoin craze previously.

Investors seeking to join the joke have increased the popularity of memecoins, which are not supposed to be taken seriously.

Shiba Inu has been known to be a disrupter when it comes to management and operations. The enterprise began with a supply of one quadrillion; its founder Ryoshi first locked 50% in Uniswap and then burned another 50% to Vitalik Buterin, the founder of Ethereum. We are yet to know why this step was taken.

Later in 2021, Buterin burned 90% of his Shiba Inu holdings and donate the rest to charities. He had earlier donated SHIB tokens worth $1 billion to a COVID-19 relief fund for India, CryptoRelief. He said that this was the only way he could avoid his transactions in Shiba Inu being read as actions.

Buterin’s decision to burn his holdings, nearly 50% of the Shiba Inu coins in circulation, effectively put them outside the purview of the market since these coins are now stored on an inaccessible public address. Ryoshi thanked Buterin for his contribution to creating a decentralized financial system.

Buterin has also praised the Shiba Inu community for supporting different initiatives such as the Fellows in AI Existential Safety.

The platform also supports the Shiba Inu Incubator, facilitating a large group of creative digital artists who bring forth an experience of what feels like a decentralized movement. The NFT project gives support to artists in the creation, exhibition, promotion and auction of their artworks, besides providing them with other streams of income.

In August 2022, the Shiba Inu Ecosystem announced on Twitter the name of the Shib CCG game, Shiba Eternity. It also revealed that the game would be available on both Google PlayStore and Apple AppStore. On 17 September, the game was launched in Australia and plans to venture into other countries. 

The community is also involved in rescuing real Shiba Inu dogs through its association with the NGO named Shiba Inu Rescue Association.

Skeptics are unsure of the future of cryptocurrency and memecoins in particular. While the mainstream cryptocurrencies projected themselves to be the alternatives to fiat currencies, memestream cryptocurrencies such as Shiba Inu were only poking fun at the former’s claims. 

But as these memecoins got popular, they didn’t go in the direction of developing use cases of the currency. That wasn’t the intention either, neither did the community expect such a popularity in the growth of memecoins. There are, however, a number of merchants today in the US accepting Shiba Inu as a payment method.

Another factor affecting the growth of the Shiba Inu currency is the huge number of crypto whales selling the memecoins. As per a report, whales at one point of time held $1 billion worth of SHIB coins. However, they keep selling and burning the currency from time to time, and now they hold barely a fraction of that amount. 

The second quarter of 2022 proved to be a bloodbath for the entire cryptocurrency industry as Terra Luna, FTX and several crypto projects failed in the year. The banking crisis following the collapse of the crypto-friendly Silicon Valley Bank (SVB) also impacted SHIB’s performance.

Why these projections matter 

As is evident, a sense of community is crucial to the growth of SHIB. Whether it is their demand to get it listed on Robinhood or asking McDonald’s to accept it as a mode of payment, the community has always rallied around the growth of SHIB.

It has also become home to a huge community of NFT artists who focus on the Shiba Inu breed of dogs in their artworks. 

“Rather than simply dismissing the hype outright, it’s important to realize that what we’re seeing is the mass movement of traders new to crypto moving into the space,” said Ben Caselin, Head of Research and Strategy at AAX. He added, “SHIB coin is a meme coin and embraces that.”

In this article, we will give an overview of the key performance indicators of SHIB such as price and market cap. We will then share with you what most popular crypto-analysts have to say about the future of this meme coin. This information will be complemented by data charts for a better understanding of the trajectory of SHIB so far and later. 

Shiba Inu’s Price, Market Cap, and everything in between

During the crypto-bloom of 2021, SHIB’s price continued to soar and hit 0.00003503 in mid-May. Its price further rose by over 34% when it got listed on the crypto-exchange Coinbase in September 2021. 

When the Shiba Inu community clamored to get the cryptocurrency listed on Robinhood Markets Inc., its price soared to an ATH of $0.00008845 in late October 2021. The altcoin, however, was not listed on the exchange before April 2022. At that point in time, it even dislodged Dogecoin to become the most-valued meme coin by market capitalization. The surge also led to its mass adoption by many cryptocurrency enthusiasts. 

As the cryptocurrency market crashed during Q2 of 2022, SHIB’s market price also continued to fall. From its April 2022 price of 0.000026, it fell to a little below $0.000008 by mid-June 2022. Since then, it hasn’t performed any better, sitting at $0.00001009 at press time. 

SHIB’s price has plunged again but has been trying to recover. At press time, the meme coin was trading at $0.00001124 with a market cap of $6,586,869,163 and a 24-hour trading volume of $383,740,846.

Source: SHIB/USD, TradingView

However, one cannot disregard the fact that along with DOGE, SHIB has been responsible for a flood of meme-coins in the cryptocurrency market such as Bit Shiba, King Shiba and Baby Doge. 

Shiba Inu Coin’s 2025 Predictions 

Before reading further, we must understand that market predictions of different analysts widely vary. A good number of times, these predictions will prove to be wrong as analysts cannot always foresee events such as political or environmental crises. It is wise that an investor conducts their own research before investing in a cryptocurrency, especially in something as volatile as SHIB. 

A Changelly blogpost says that after studying the SHIB prices and market fluctuations, experts predict that SHIB could hit as high as $0.0000440756 and as low as $0.0000366063 in 2025. Its average price is expected to remain at $0.0000376362.

Telegaon writes that according to some crypto experts, the Shiba Inu Coin price can hit a new ATH in 2025. They predict the minimum and maximum prices of SHIB this year to be $0.00009839 and $0.0001928, respectively. Its average price is predicted to be around $0.0001152.

As per DigitalCoinPrice, the minimum and maximum prices of SHIB in 2025 will be $0.0000312 and $0.0000381, with its average price remaining at $0.0000356.

Shiba Inu’s 2030 Predictions 

The aforementioned Chanelly blogpost writes that SHIB could hit as high as $0.0002908409 and as low as $0.0002463454 in 2030. Its average price is expected to remain at $0.0002532547

Telegaon writes that SHIB’s price can hit as high as $0.00112 and as low as $0.0009354 in 2030. Its average price in the said year however will be $0.0009915. 

The post adds that if users burn enough tokens, a cryptocurrency’s acceptance is bound to increase. But we should understand that for this purpose, it has to have different use cases. 

The aforementioned DigitalCoinPrice article predicts that SHIB’s average price in 2030 will be $0.000108. Its minimum and maximum prices for the year will be $0.000103 and $0.000111.


Are your SHIB holdings flashing green? Check the profit calculator


Fear & Greed Index

Source: CFGI.io

At the time of writing, SHIB’s Fear and Greed Index was in the ‘neutral’ position.

Conclusion 

Shiba Inu Coin has continued to grow, hand in hand with the token burns. However, as its supply decreases and demand increases, its price should rise. Ideally. In fact, many investors have become millionaires by investing in this meme coin. 

Shiba Inu has a lot of promising possibilities that will keep pushing the market. What also works in its favor is its extremely low price, which is why a lot of people keep buying it. 

Shibarium, the platform’s Layer 2 protocol, has been launched. It will allow users to move assets with minor gas fees, facilitating micro transactions over Shiba Inu-based dApps. The team has deployed a host of new and innovative developers to build the UX/UI of its platform and web portals as a part of the same process. 

The launch of Shibarium will be accompanied by the launch of the TREAT token. It will be used as a reward token on Shiba Inu-based metaverse and games such as the Shiba Collectible Card Game. A limited supply of these coins is reserved for its most loyal Breed members who have been working for years to build public confidence in the entity. The team has also been contemplating launching SHI, a stablecoin; but no concrete information about this coin is there so far.  

In January 2022, Shiba Inu Ecosystem announced the arrival of Shiberse, the native metaverse of the Shiba Inu community. As digital coins, games, virtual land and memes populate the Shiberse, it is bound to get popular among an audience that is keen to explore a brave new world beyond the confines of time and space. 

The same month, the group tweeted the news about Shiba Eternity, a collectible card game. The game has been developed in close collaboration with the legendary AAA game development studio PlaySide Studios. 

What the enterprise is certain to face is a challenge in this space from Big Tech metaverse ventures such as Yuga Labs’ Otherside and Zuckerberg’s Meta. It is difficult for an independent community such as the Shiba Inu Ecosystem to sustain the might of Big Money and Big Tech. The only way it can gain an edge in this segment is by introducing revolutionary ideas in the metaverse, gaming and NFT segments. So far, we haven’t seen anything new. 

In October 2022, Elon Musk announced the launch of a fragrance that can be bought with SHIB, besides PayPal, Google Pay, DOGE and regular bank cards. As cryptocurrency is accepted in collaboration with BitPay payment processor, payments in SHIB are also possible. 

The same month, Google Cloud and Coinbase made an announcement about their relationship for Web 3.0 development initiatives. A select group of clients will also be able to pay for these services using SHIB and other cryptocurrencies. We’ll have to wait and see if the decision is implemented and if other businesses decide to follow suit.

Shibarium’s imminent launch suggests that the Shiba Inu team looks serious about being more than another memecoin, something also indicated by its long-awaited metaverse. As such, SHIB really could be one of the major coins to watch this year, with significant rallies potentially in sight.

Furthermore, its upcoming Metaverse project improves this project’s allure from a tokenomics perspective. As a memecoin, the value of SHIB is driven by how bullish (and large) the Shiba Inu community is at a given point in time.

Analysts speculate that SHIB cryptocurrency might retrace its recovery path as soon as it gets support from the level. However, volume change can be seen declining and under the influence of sellers. Buyers need to come forward to rescue the SHIB token from the seller’s grip.

Early this month, Shib announced that it will debut its Wagmi Temple at the upcoming SXSW festival. Here, WAGMI stands for “We’re all gonna make it,” a popular phrase among fans of Shiba Inu. Meanwhile, the broader crypto community is representing their belief in the potential of Shiba Inu for growth and success.

Stellar (XLM) Price Prediction 2025-30: Will XLM shake off its bearish ways?

https://ambcrypto.com/stellar-xlm-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.  

Stellar Lumens (XLM) had been trading within a bearish range since mid-January, but has recently broken out of it. This shifted XLM’s bias from bearish at range highs to strongly bullish. In the event of a pullback, bulls will have a good buying opportunity in the $0.096-$0.099 range. This was the unbroken resistance that had lasted since November. If XLM’s pullback fell below $0.09, a drop below $0.096 would be required to shift the bias back towards bearish.

Early this month, Brazil’s central bank launched the pilot for its experimental central bank digital currency (CBDC). The test for Brazilian CBDC, Digital Real, is taking place on the Stellar blockchain network. 

Soon thereafter, Pendulum announced the release of the Spacewalk bridge that connects the Polkadot infrastructure to Stellar’s blockchain so Polkadot can access fiat and stablecoin currencies. The Spacewalk bridge will allow Polkadot to access the entire infrastructure created by Stellar, especially that related to cross-border payments.

The trust of large institutions in the Stellar network is a primary reason for its strong market presence.  


Read Price Prediction for Stellar (XLM) 2023-24


Stellar is today one of the best platforms for facilitating faster and easier international financial transactions. It is based on a decentralized on-chain protocol. Stellar users trade in Lumens (XLM) which is the platform’s native cryptocurrency.

Another important feature of Stellar is that individuals are more interested in Stellar than organizations, as it is a platform for small-amount payments. It is gaining popularity due to its simple user interface.

Stellar enables real-time transactions to occur anywhere in the world in as little as five seconds. A new smart contracts platform called Soroban has released its second preview. The upgrade intends to increase platform developer friendliness, scalability, and sensibility.

Last year, Ethereum transitioned from the proof-of-work (PoS) to proof-of-stake (PoS) consensus mechanism following the Merge. A major reason for this step was claimed to be the adoption of eco-friendly processes. In this regard, Stellar is very promising, as it has a smaller carbon footprint. Its authentication cycle is also fast, keeping energy use to a minimum. 

Acting as a decentralized currency exchange, Stellar helps you track all of your assets with an order book. You can sell, buy and manage all of your assets here, with XLM acting as an intermediate currency for paying transaction fees. The currency is very useful for the users because it helps you reduce transaction costs. 

Transactions on the Stellar platform are performed swiftly due to the ease of Lumens. The currency not only makes transactions seamless for the sender and the recipient but also ensures that transactions are secure. 

Jed McCaleb, Co-founder, and CTO of Stellar said in an interview with CoinMarketCap that XLM is used in a fundamental way for the network.

“Maybe that affects the price, maybe price is a secondary indicator of how useful the underlying protocol is in some way… But I think that the trend is there: that where price and utility can come into play.”

XLM is listed on a number of crypto exchanges including Binance, eToro, Huobi Global, CoinTiger, FTX, and OKEx. This shows that the currency is an increasingly accepted choice of investors now. 

A total of 100 billion XLMs were issued when the Stellar network was launched in 2015. In 2019, the group announced that it was burning over half of the cryptocurrency’s supply. Stellar mentions on its website that currently, there are around 50 billion XLMs in existence; 20 billion XLMs are in circulation and 30 billion XLMs are retained by the Stellar Development Foundation for project development. Nothing more will be created.

Why these projections matter

Where Stellar trumps other financial platforms is its low transaction fees, which have drawn a huge number of cryptocurrency users to it. It is one of the few blockchain networks that has been successful in collaborating with large tech corporations, such as Deloitte and IBM. Stellar, in partnership with IBM, launched a project that enables FinTech to engage in financial transactions using assets such as stablecoins.

It must be noted that Stellar is one of the large corporations that are operating in the cryptocurrency market. It is one of the most centralized cryptocurrency networks active on the internet. While the Stellar network uses decentralized nodes, it doesn’t have that many validators. Such an infrastructure gives the group a lot of control over the operations and price movement of XLM.

In 2016, Deloitte announced a partnership with Stellar, along with four other blockchain networks, to provide new technological capabilities to its global financial institution client base.

In June 2018, Fortune reported that New York financial regulators approved Stellar Lumens to trade on the Bit exchange, the first time the state’s authorities have given it the green light.

In October 2021, IBM partnered with Stellar to facilitate cross-border payments by banks. The system uses XLM as a bridge currency for transactions and it has been successful in the South Pacific region. 

The same year, Moneygram announced a partnership with Stellar. Its integration with Stellar facilitates the conversion of the USDC stablecoin into cash and vice versa. The facility aims to encourage the liquidity of cryptocurrencies and the integration of traditional and cryptocurrency markets.  

In October 2021,  Flutterwave, a global payments technology company, also announced two new remittance corridors between Europe and Africa on the Stellar network. The step is a major step in Stellar’s expansion in the global market. 

It also succeeded in receiving certification from the Islamic scholars of Bahrain in 2018, aiming to integrate the technology into the field of sharia-compliant financial products, reported Reuters. 

“We have been looking to work with companies that facilitate remittances, including in the United Arab Emirates, Saudi Arabia, and Bahrain. It’s a huge market,” said Lisa Nestor, the then-director of partnerships at Stellar. Since the Middle East and South Asian regions are key areas of growth for the group, where a lot of countries are run on a sharia-compliant system, this is a major success for Stellar.

Developing economies are the focus of the Stellar network in the areas of remittances and loans. It primarily aims to target those who are still not part of the traditional banking system. 

In June 2022, the global platform for modern money movement, Nium, and Stellar announced a partnership to enable payouts to 190 countries. “This integration truly drives home the value that blockchain-powered cross-border payment solutions bring to the current financial system,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. “At SDF, we are always working to fill up the map and connect the network to more of the globe. Together with Nium, we are thrilled to expand the reach of the Stellar network so significantly.”

Another prominent feature of Stellar is that it gives power to the community to decide what project(s) the blockchain should focus on. 

We will now briefly give an overview of the key performance indicators of XLM, such as price and market capitalization. We will then summarize what the world’s leading crypto-analysts have to say about the future of this currency, along with its Fear & Greed Index.

XLM’s Price, Market Cap, and everything in between

XLM’s price has hiked significantly over the last few years. Back in 2018-2019, it kept falling below its previous ATH of around $0.93 (recorded in early January 2018). It was only in 2021 that its price again rose, hitting a price level of over $0.7 around mid-May. However, as the cryptocurrency market collapsed in the second quarter of 2022, XLM went into a bearish dive.

At press time, XLM was changing hands at $0.1090, with a market cap of $2,933,706,618.

Source: XLM/USD, TradingView

The market capitalization of the cryptocurrency follows its price trends throughout. In early January 2018, it was nearly $9 billion, and it skyrocketed to as high as $16.5 billion (May 2021) during the crypto-boom of 2021. In fact, it was performing fairly well in 2022 too, until the market crashed during the year’s second quarter. 

Stellar has seen many growth spurts over the past few years, such as when Mercado Bitcoin announced its use of the platform. In less than a year, Stellar housed almost 3 million user accounts. Since that time, however, Stellar has built a network of partners that includes Flutterwave and MoneyGram.

Lumen’s 2025 Prediction

A Changelly blogpost says that many experts have observed the prices and fluctuations of Lumens over the years and concluded that the currency could hit as high as $0.309969 and as low as $0.259974 in 2025. Its average price will remain around $0.259974 in the said year.

Telegaon is very bullish in its assessment of XLM’s performance. It writes that the average price of XLM can be around $2.96 by 2025 if current growth continues. Its maximum price could be up to $3.53, while its minimum price can go down up to $1.32. 

As per DigitalCoinPrice, XLM’s price could reach as high as $0.36 and as low as $0.31 in 2025. Its average price in the year is going to be $0.38.

Lumens’ 2030 Predictions 

The aforementioned Changelly blogpost predicts the maximum and minimum prices of XLM in 2030 to be $2.12 and $1.74 respectively. Its average price in the year will be $1.79.

Telegaon remains very bullish in its assessment for 2030 as well. It writes that the currency could reach as high as $31.02 and as low as $23.31. It predicts XLM’s average price to be around $25.62.

As per DigitalCoinPrice, XLM’s average price in 2030 is going to be $1.1, with its maximum and minimum prices being $1.11 and $1.04.

Conclusion

Stellar has, time and again, stressed its role in increasing financial inclusion across the globe. In particular, it focuses on working towards better microfinance management. Today, it operates in association with a number of financial institutions across the globe, shaping the future of a financial system that is welcoming to cryptocurrency. 

Any financial institution can integrate with Stellar and avoid the hassle of building its own payment gateway. This integration connects these global players in such a way that interoperability and communication among different systems are seamless. 

A significant accomplishment of Stellar is the integration of the global financial system while cutting fees. Stellar has a sizable user base, which is not surprising given that it has become a crucial tool for enabling economic empowerment. 

The Stellar network is considered a rival to the Ripple network. While Ripple helps banks make fund transfers, Stellar helps individuals outside the banking system make fund transfers. Its simple, swift and economical process has made it very popular among users across several developed countries. 

These developments are certain to boost Stellar’s credibility among the users and raise the price of Lumens. Besides, XLM is one of the most eco-friendly cryptocurrencies. Its consensus model is faster than both PoS and PoW, making it the preferred choice of many investors. 

The unique features of Stellar such as strategic partnerships and convenience, make XLM one of the most reliable crypto investments. Its growth as a payments network will be the most important factor influencing the future of XLM. 

Despite being embroiled in a legal dispute with the Securities and Exchange Commission (SEC), Stellar’s Lumens coin is a major cryptocurrency to wager on.

In June 2022, the system upgraded Protocol 19, building payment channels and key recovery channels. Stellar is also working on the Project Jump Cannon to facilitate a robust execution environment for smart contracts. 

In 2022 itself, many crypto exchanges such as WhiteBIT, CoinMe, and Mercado Bitcoin enabled USD-backed stablecoin transactions, increasing the access to USDC on Stellar.  

Coinbase Wallet announced in November 2022 that it will no longer support the XLM token, along with BCH, ETC, XRP, effective 5 December. Coinbase cited “low usage” as a reason for delisting the four coins.

The SDF has also established a $100 million fund to encourage developers to create applications for the Soroban smart contract platform. Soroban adds Turing-complete smart contracts to the Stellar blockchain, allowing developers to create new financial services rails on the network.

The Stellar Community Fund (SCF) has announced that 21 projects will receive funds as part of its 11th round. The required funding for the winning projects will be given to them in XLM tokens. The grants total more than 13 million XLM for the entire round.

South Korea’s leading cryptocurrency exchange, Upbit, announced the temporary suspension of deposits and withdrawals of the Stellar network’s native token, XLM, and other assets on the network. Upbit stated that the event was caused by the need for maintenance of the Stellar network and the wallets in it.

In March 2022, Stellar stated in its blog that it will launch Project Jump Cannon, an E&D venture to introduce native smart contracts for its blockchain. The same month, it also introduced the Starbridge project that would create bridges between Stellar and other blockchains, enabling interoperability. 

Since December 2022, the Stellar network has been working with the United Nations High Commissioner for Refugees (UNHCR) to provide its blockchain payment solutions to those affected by the war in Ukraine. 

In January 2023, Stellar (XLM) announced its decision to join the U.S. Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee (GMAC). It is important to note that the committee is composed of a diverse group of members with backgrounds in both traditional finance and cryptocurrency. As a result, Stellar’s (XLM) unique perspective on Layer 1 protocols may not carry the same weight as that of more established players in the space.

If Stellar continues to adopt more of such innovations and succeeds in building a larger community, it can prove to be a significant player in the crypto market. 

The latest Fear & Greed Index projects a ‘neutral’ market sentiment for XLM.

Source: CFGI.io

Terra (LUNA) Price Prediction 2025-2030: LUNA faces the music as Do Kwon…

https://ambcrypto.com/terra-luna-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

 

As per a recent news report, the United States may have gained an advantage in a race with South Korea to extradite Terraform Labs CEO Kwon Do-hyung from Montenegro on fraud charges related to the $40 billion Terra (LUNA) cryptocurrency project’s collapse in May last year.


Read Price Prediction for Terra (LUNA) 2023-24


Terra Luna (LUNA) was trading at $1.28 at press time; its current market cap stands at $312 million. Its future remains bleak as per most market experts.

It has now been nearly ten months since the Terra Luna project experienced a catastrophic collapse in May 2022. Later, major crypto exchange FTX collapsed in November 2022 and recently, the crypto-friendly Silicon Valley Bank (SVB) also collapsed. 

Stablecoins, such as UST, were created to protect investors from the extreme price volatility of popular cryptocurrencies, such as Bitcoin (BTC).

As fiat currency is pegged to reserves such as gold, a stablecoin is pegged to either a fiat currency (e.g. USD) or a supporting cryptocurrency. In this case, TerraUSD was pegged to Luna. But herein lies the conflict. A cryptocurrency isn’t equivalent to gold reserves. As LUNA prices got destabilized, it had an impact on UST prices too, and the entire stablecoin system collapsed in the second quarter of 2022.

The stablecoin project was aimed at complementing the price stability and wide adoption of fiat currencies with the decentralized model of cryptocurrency.

Even those who are only vaguely familiar with the cryptocurrency industry know of the apocalyptic collapse of LUNA and UST in May 2022. This collapse was crucial in instigating the cryptocurrency crisis thereafter. 

LUNA was one of the market’s top performers once, with the altcoin once among the top 10 cryptocurrencies by market value towards the end of 2021.

A Bloomberg report from May 2022 sheds light on the further developments that transpired. It was in early May 2022 that the Terra system collapsed as large investors began selling their tokens. The move caused a huge drop in the price of the coins. While the price of UST fell to $0.10, LUNA’s price fell to almost zilch.

The cryptocurrency market lost around $45 billion within a week in the ensuing bloodbath, leading to a global crash in the market. The leadership of the Terra system hoped to buy Bitcoin reserves to buy more UST and LUNA coins so that their prices can be stabilized, but the plan didn’t work.

Thousands of investors across the globe lost significant amounts due to the mishap. In the immediate aftermath, the Korean National Tax Service imposed $78.4 million in corporate and income tax on Do Kwon and Terraform Labs after a Terra investor filed a police complaint against the co-founder.   

In fact, an affected investor even broke into Kwon’s house in South Korea. His wife then sought security from the police. 

In July 2022, News1 Korea reported that South Korean prosecutors raided 15 firms, including seven cryptocurrency exchanges in relation to the investigation around the Terraform collapse. More than 100 people who filed complaints with the prosecutors’ office reportedly had losses totaling roughly $8 million.

Many from the industry had been warning the cryptocurrency community about the upcoming doom. Kevin Zhou, CEO of Galois Capital, was one such individual. He said that the result was inevitable as the “mechanism was flawed, and it didn’t play out as expected” However, most people didn’t pay any heed. 

On May 25, Bloomberg reported that a new version of LUNA was launched following a hard fork, with the new LUNA coin no longer associated with the devalued UST coin. The older currency is called Luna Classic (LUNC) and the newer one is called Luna 2.0 (LUNA). Though the older cryptocurrency has not been entirely replaced, its community might slowly dissolve as more and more users move to LUNA 2.0.  

The new initiative included an AirDrop of new LUNA tokens to those who held Luna Classic (LUNC) and UST tokens and suffered. A significant portion of the minted currency is to be reserved for development and mining operations. Currently, there is a supply of 1 billion LUNA tokens.

The collapse of the twin coins proved to be a harbinger of increased government regulations, if not downright opposition, in the cryptocurrency industry. The anonymous model of the industry, much touted to be the foundation of the decentralized cryptocurrency market, was once embraced by all. However, the moment people lost their investments, they rushed to government authorities for redressal.  

This is when government financial authorities found the opportunity to push for implementing rules and regulations in the crypto industry to tackle price volatility, money laundering, etc. 

The entry of corporate institutions with government oversight into the industry had already set the tone for what was to come. But this collapse furthered this trend. Now, cryptocurrency entities, whether large or small, will likely be overseen by central banks across the globe. In such scenarios, it will be critical to observe how the industry manages to uphold its anonymous and decentralized nature.   

Why these projections matter

The future of LUNA is a very critical matter for the entire cryptocurrency industry. Launched as a part of the regeneration strategy, its performance so far has not exactly been celebratory.

Transactions on the Terra 2.0 blockchain are validated through the proof-of-stake (PoS) consensus mechanism. The network has 130 validators working at a given point of time. As a PoS platform, the power of the validator is linked to the number of tokens staked.

How LUNA trades will determine the course of not only this particular cryptocurrency, but a number of stablecoins in the market. If it succeeds in gaining the trust of investors, the venture will go a long way in furthering the cause of the asset class of stablecoins.  

In this article, we will lay down the key performance metrics of LUNA such as its price and market capitalization. We will then summarize what the most prominent crypto-influencers and analysts have to say about LUNA’s performance, along with its Fear & Greed Index. We will also briefly talk about whether you should invest in stablecoin or not.

LUNA’s price, volume, and everything in between

Beginning its journey at around $19 on 28 May 2022, LUNA quickly dropped below $5 the next day. By the end of May 2022, its value was just above $11, but it soon spiraled south as June began.

Over the next few months, the value of LUNA kept oscillating between $1.7 and $2.5. At press time, it was trading at $000.29, as bears took control of the market.

Source: LUNA/USDT, TradingView

Here, it’s worth noting that back in June 2022, its market cap was over $300 million, but it kept oscillating between $210 and $300 million during much of July. Right now, the market cap is still within that range. 

The crisis that unfolded following the collapse of the twin coins impacted the course of the entire market. LUNA has been particularly vulnerable to volatile market conditions. The Russia-Ukraine crisis and increasing crypto-regulations across the globe have also curtailed the movement of the market.  

LUNA’s 2025 Predictions

Before reading further, readers should understand that the market prediction of different cryptocurrency analysts can widely vary. And, a good number of times, these predictions have been proven wrong. Different analysts choose different sets of parameters to arrive at their forecasts. Also, nobody can foresee unpredictable socio-political events that ultimately end up affecting the market.

Let us now have a look at what different analysts have to say about the future of LUNA in 2025.

A Changelly blogpost says that experts have predicted that the price of LUNA will oscillate between $5.06 and $6.07. Its average trading cost during the said year will be around $5.20.

DigitalCoinPrice is similarly bullish in its assessment of the future of LUNA, predicting its minimum and maximum prices in 2025 to be $3.78 and $4.56. It predicts its average price in the said year to be $4.38.

LUNA’s 2030 Predictions

The aforementioned Changelly analysis predicts that the maximum and minimum prices of LUNA in 2030 will be $37.54 and $31.24. The average price of LUNA in the said year will be $32.11.

DigitalCoinPrice remains extremely enthusiastic about the future of LUNA. It predicts that it will be traded as high as $13.46 and as low as $12.51, with its average price being $12.99.

Disclaimer

Now, the aforementioned are more recent predictions. Before the events of the last few months, analysts were way more optimistic about the fortunes of LUNA.

Consider Finder’s panel of experts, for instance. In fact, they forecasted a price of $390 by 2025 and $997 by 2030.

“The likes of Digital Capital Management’s Ben Ritchie claimed, The LUNA token will continue to gain traction as long as there are no clear regulations in stablecoins. We believe that LUNA and UST will have an advantage and be adopted as a major stablecoin across the crypto space. LUNA is burnt to mint a UST, so if the adoption of UST grows, the LUNA will benefit greatly. Having Bitcoin as a reserve asset is a great decision by the Terra governance.”

There were contrary opinions too. According to Dimitrios Salampasis,

“Algorithmic stablecoins are considered as being inherently fragile and are not stable at all. In my opinion, LUNA will be existing in a state of perpetual vulnerability.”

That’s not all. In fact, at one point of time, there was also talk of Terra emerging as the most staked asset.

Source: Finder

Fear & Greed Index 

As the legal troubles for the Terra founders do not subside, there does not seem to be many possibilities of investors trusting the altcoin. Many exchanges continue to put warning tags along the listing of LUNA and investors remain highly cautious. However, at press the fear and greed index for the crypto market stood in the ‘Greed’ category.

News reports of Kwon’s arrest have completely changed the dynamics for the Luna coin as further revelations from him might make its price fall even lower. 

Many exchanges continue to put warning tags along the listing of LUNA and investors remain highly cautious. At press time, the fear and greed index for the token suggested a ‘neutral’ market sentiment.

Source: CFGI.io

We will also have to see how the community of LUNA developers and investors acts in the next few weeks. If they burn enough tokens so as to drive up its price, it can prove to be beneficial for its future. A sustained effort on the part of the cryptocurrency industry, in particular the LUNA community, can go a long way in restoring the trust of investors in the market.  

In an interview with Laura Shin on the “Unchained” podcast, Kwon said that he moved to Singapore from South Korea before the collapse of the Terra ecosystem. So, it should not be assumed that he ran away to escape the authorities. He denied claims that he is on the run from law enforcement. 

Kwon said, “Whatever issues existed in Terra’s design, its weakness [in responding] to the cruelty of the markets, it’s my responsibility and my responsibility alone.”

Recent news has now emerged that Kwon is also facing a class-action lawsuit filed on behalf of more than 350 international investors in a Singaporean court. They claim to have lost about $57 million in the collapse of the algorithmic stablecoin TerraUSD (UST) and its ecosystem

Well, last month, the New York Times interviewed Ethereum co-founder Vitalik Buterin who claimed that the Terra Luna team attempted to manipulate the market in order to prop up the value of the native cryptocurrency. He also recalled that plenty of “smart people” were saying that Terra was “fundamentally bad.”

As a massive market slump due to the FTX debacle is going on, we are witnessing massive withdrawals. LUNA remains among the worst-hit tokens in this ongoing crisis. It has fallen by around 30% over the last 2-3 days. The same has been made worse by Silvergate’s liquidity crisis and the crypto-market’s response to the same. 

We are witnessing the second crash in the crypto market this year following the FTX debacle. As the primary token responsible for the first crash in May, LUNA has been among the worst-hit tokens in the second crash too. Its price has fallen by 35% since FTX filed for bankruptcy.

Following FTX’s collapse, we are witnessing the global crypto market’s second crash this year. LUNA was the primary token responsible for the first crash in May, and it was also one of the tokens that suffered the most damage in the second crash. Its value has dropped by 30% since FTX declared bankruptcy, but it appears to be recovering.

As per a local media report from South Korea, prosecutors are freezing assets worth $92 million affiliated with Terra tokens as per the orders of a Seoul Southern District Court. The seized assets were taken from Kernel Labs, a tech firm closely related to Terraform Labs. It has been revealed that Kernel Labs CEO Kim Hyun-Joong served as Vice President of Engineering at Terraform Labs.

Furthermore, the Terra Classic community has decided to support two significant proposals in the coming days that will have an impact on the burn rate and financing for the community pool.

In addition, there have been a number of positive developments in the cryptocurrency sector, such as Dubai establishing federal legislation and FTX retrieving client funds, both of which are viewed as key drivers supporting cryptocurrencies such as Terra Luna Classic.

Terra Classic core developer Edward Kim warned the community that the proposals could severely impact funding for the community pool as data shared in the proposal has a miscalculation.

Singaporean authorities have launched a probe into Do Kwon’s Terraform Labs, as per a recent Bloomberg report. Singaporean police sent an emailed statement announcing that “investigations have commenced in relation to Terraform Labs.” It added that the inquiries are “ongoing,” and Kwon is not currently in the city-state.

The announcement comes less than a month after the US Securities and Exchange Commission (SEC) sued Terra founder Do Kwon and his organization Terraform Labs for securities fraud. 

We must again reiterate that market forecasts aren’t set in stone and can go wildly wrong, particularly in a market as volatile as that of cryptocurrencies. Investors should, therefore, take due caution before investing in LUNA.

Terra LUNA Classic [LUNC] Price Prediction 2025-2030: LUNC loses 26% of its value

https://ambcrypto.com/terra-luna-classic-lunc-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject. 

Luna Classic (LUNC), the cryptocurrency behind the now-defunct original Terra blockchain that was destroyed in May 2021, was last trading near $0.0001221, only slightly higher than the $0.000117 lows it hit earlier this month. LUNC has performed poorly, despite other major cryptocurrencies rallying in March. Since the beginning of March, the cryptocurrency has lost approximately 26% of its value.

Following the disasters in 2022, most of Terra’s blockchain development community left, and most analysts see a bleak future for the blockchain’s ecosystem.

It was only last week that the news of Terra co-founder Do Kwon’s arrest reached the crypto community; its price soon fell steeply to $0.0001221. Terra co-founder Do Kwon, who was on the run since the Terra-Luna crisis, was finally arrested in Montenegro on 23 March.

LUNC was at the center of the collapse of the Terra ecosystem in May 2022. The coin has also been severely affected by the collapse of the crypto exchange FTX in November last year. Its market capitalization has dropped from $1.5 billion to $1.0.4 billion since then.

Transactions on the Terra 2.0 blockchain are validated through the proof-of-stake (PoS) consensus mechanism.

The leading cryptocurrency, Ethereum (ETH), has also transitioned from a proof-of-work to a proof-of-stake mechanism. This has only made the competition among PoS blockchains tougher.

The network has 130 validators working at a given point of time. As a PoS platform, it is considered being a very eco-friendly token.

Why do these projections matter?

A stablecoin is intended to safeguard coin holders against the volatility of other cryptocurrencies. It is pegged to either a fiat currency such as USD or to a supporting cryptocurrency. Terra USD (UST) was pegged to Luna Classic (LUNC- then, only LUNA).

This is where the problem began. A cryptocurrency is in no way equivalent to gold reserves. As LUNA prices became destabilized, it adversely affected UST prices too, and the entire stablecoin system collapsed in May 2022.

For the initial few years, LUNC kept performing well. And, it was even among the top 10 cryptocurrencies by market value by the end of 2021.

But the Terra system collapsed in May 2022, leading to a fork. It basically launched a new version of Luna. The Terra Ecosystem Revival Plan 2 was implemented according to which both versions of the Luna token can exist.

Undoubtedly, the future of this cryptocurrency is crucial in determining if a failed crypto can make a comeback and grow.

Well, its performance after the May 2022 debacle has been, so far, less than celebratory.

But if LUNC trades well in the future, it will be a cause of celebration not only for this particular cryptocurrency, but for a lot of other cryptos.

LUNC’s price, volume, and everything in between

Since its launch in 2019, LUNC’s price kept floating around $0.2 and $1.3 until April 2021. When the crypto market boomed in mid-2021, its price increased and touched $100 by the end of the year.

Starting from 2022, it kept oscillating between $50 and $100 and reached an all-time high (ATH) of $119.18 on 5 April 2022. The next month, its price began to fall and the Terra system collapsed in mid-May.

At press time, the coin was trading at $0.000126, with a market cap of $740,110,030.

Source: TradingView

Bloomberg reported in May 2022 that the market lost approximately $45 billion within a week following the Terra collapse. Terraform Labs and its co-founder Do Kwon were fined $78.4 million in corporate and income tax by the Korean National Tax Service.

On 25 May 2022, Bloomberg reported that the network launched a new version of the cryptocurrency, LUNA. The older crypto is now called Luna Classic (LUNC) and the newer one is called Luna 2.0 (LUNA).

Though LUNC, the older cryptocurrency, has not been entirely replaced, a lot of users are moving to LUNA. It should be noted here that LUNC so far has not been performing well at all.

The market capitalization of LUNC similarly reflects the market sentiment regarding crypto. Throughout 2019-20, it didn’t even reach up to $500 million, but began increasing in 2021.

Now, towards the beginning of February, it crossed the $1 billion mark. And, by the end of 2022, it was above $36 billion.

LUNC’s journey kept moving upward the next year too and in April 2022, it crossed $41 billion. But post the crash of May 2022, it oscillated between $300 million and $1.5 billion.

South Korea is now seeking to revoke Kwon’s passport, following which he might be forced to return to South Korea. A request has been passed to the nation’s Foreign Ministry to scrap the travel document, reported Bloomberg. An arrest warrant has already been issued against him and other members.

Recently, Financial Times reported that South Korean prosecutors have reportedly asked Interpol to issue a Red Notice against Kwon. Kwon, however, tweeted that he is not on the run from any interested government agency and added that the company is in full cooperation and doesn’t have anything to hide.

The crypto crisis that followed the collapse of the twin coins, Terra USD and Luna Classic, has adversely affected the entire crypto market. LUNC, in such circumstances, remains particularly vulnerable.

LUNC’s 2025 predictions

Before you read further, you should understand that predictions of different cryptocurrency platforms and analysts widely vary as different analysts rely on different sets of metrics to arrive at their conclusions.

A good number of times, these predictions can go wildly wrong. Besides, nobody can foresee events such as the Chinese crypto ban or the Russia-Ukraine crisis. Let us now have a look at what different analysts have to say about the future of LUNC in 2025.

Telegaon predicts that the minimum and maximum prices of LUNC in 2025 will be $0.0089 and $0.028, respectively.

Other experts, after analyzing the previous performance of LUNC, predict that its average price in the said year will be $0.015.

DigitalCoinPrice predicts that the minimum and maximum prices of LUNC in 2025 are going to be $0.000359 and $0.000444. Its average price in 2025 will be $0.000430.

LUNC’s 2030 predictions

DigitalCoinPrice predicts that the minimum and maximum prices of LUNC in 2030 are going to be $0.00118 and $0.00127. Its average price in 2030 will be $0.00126.

On the other hand, Bitcoin Wisdom predicted that LUNC’s price will keep oscillating between $0.002603 and $0.002834 in 2030. Its average price in the said year will be $0.002719 as per the prediction.

Disclaimer

Now, it’s worth addressing the elephant in the room too. Pre and post-crash projections and opinions on the project have changed significantly over the last few months. This means that there is a lot of uncertainty around. For instance, back in March, Professor Carol Alexander, a member of Finder’s panel of experts, claimed,

“… as its name implies, it could actually go to the moon (for a while).”

On the contrary, there are others who believe,

“There is a lot of uncertainty around LUNA right now –⁠ the project is really ambitious and the objective an admirable one but just what the effect on the LUNA token itself will be is unclear.”

Conclusion

So far, we have provided a succinct summary of LUNA Classic (LUNC). For those of you contemplating investing in cryptocurrency, we would like to reiterate that cryptocurrency predictions cannot be relied upon entirely. And, you should conduct your own research before making an investment in LUNC.

The only thing that can save the coin is token burning, which will raise prices by reducing market oversupply. It was already put to the test in September when Binance and other significant CEXs started burning LUNC tokens, sending the price of LUNC soaring by 60% in just a few hours.

The cryptocurrency market still remains very bearish and is likely to remain volatile for the next few months.

A recent Bloomberg report says that upcoming legislation would ban algorithmic stablecoins such as TerraUSD the collapse of which led to a global crypto crash. The said bill is currently being drafted in the U.S. House. The bill would make it illegal to develop or issue new “endogenously collateralized stablecoins.”

The New York Times interviewed Ethereum co-founder Vitalik Buterin last month who claimed that the Terra Luna team attempted market manipulation in order to boost the value of the native cryptocurrency. He also recalled that many “smart people” had stated that Terra was “fundamentally bad.”

In an interview with Laura Shin on the “Unchained” podcast on 28 October, Kwon claimed that he migrated from South Korea to Singapore before the demise of the Terra environment. He also refuted reports that he is eluding law authorities.

Kwon said,

“Whatever issues existed in Terra’s design, its weakness [in responding] to the cruelty of the markets, it’s my responsibility and my responsibility alone.”

On 5 November, Terra Rebels tweeted that the first round of its lottery game had finally ended, with the winner going away with over 24 million Terra Luna Classic (LUNC). More than 10.5 million LUNC were sent to the burn wallet. As we can see, such efforts are underway in one way or another.

According to a recent third-party audit by JS Held, a New York-based consultancy firm, Luna Foundation Guard (LFG), the entity behind the defunct Terra ecosystem, spent $2.8 billion in crypto trying to defend the peg of algorithmic stablecoin TerraUSD (UST) in May. The audit also claims that Terraform Labs (TFL), the Terra blockchain developer, spent $613 million defending the peg.

Luna Classic has announced that it will re-enable Inter Blockchain Communication (IBC), a protocol to allow the sharing of messages and trading assets with other blockchains. A member of the Terra Classic development team confirmed this on Twitter.

In terms of fundamentals, what may help such a break occur is progress on implementing a proposal that was recently passed by Terra Luna Classic validators. In particular, the community has adopted a plan to re-peg LUNC’s sister stablecoin, USTC.

As the broader cryptocurrency market stabilizes ahead of a busy week of macro events, including a barrage of key US jobs data and a testimony from Fed Chair Jerome Powell before the US Congress, LUNC bulls will be hoping the cryptocurrency can continue to find support above this level.

Industry experts remain apprehensive if LUNC’s price will even reach $1 in a few years. As the latest news of Kwon’s arrests appears, the market fears that more details about the programme may sink its performance further down.   

Dogecoin (DOGE) Price Prediction 2025-2030: DOGE sees 6% rise, extreme fear, and more

https://ambcrypto.com/dogecoin-doge-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.  

A few events over the last week helped Dogecoin (DOGE) rally, surging by 6% in value. 

Two days ago, the UK branch of global fast-food chain Burger King unexpectedly responded to a post about cryptocurrency payments at Burger King, “We need doge.”

Soon after, Asian stocks rallied after China’s central bank committed to providing more financial assistance to companies, triggering a massive bull wave in all risk assets. The Chinese central bank is once again opening its wallet in order to provide financial assistance to businesses.

Last week, tech billionaire Elon Musk mentioned a “fee for visiting Twitter headquarters,” which should be paid in DOGE, in a tweet. The Twitter boss was responding to user DogeDesigner (@cb_doge), who wanted to visit the head office of this social media platform. 

At the same time, the price of the largest meme token by market cap began rising, possibly as a result of Elon Musk giving it a mention. After this tweet, DOGE’s price rose over 4% to reach $0.0785. At the time of this writing, Dogecoin has dropped slightly, trading at $0.0769.

The crypto industry witnessed around $307 million in liquidations on 9 March within a day of the collapse of the crypto-friendly bank Silvergate Capital (SI). Dogecoin was among the coins, leading the price decline as it fell from $0.0715 to $0.0632. But its performance has recovered with time.

Previously, the whole FTX debacle had also been particularly bad for DOGE, as its price had reached around $0.15, the lowest since the first crypto crash in May 2022 following the Terra stablecoin debacle.

What started as a parody of mainstream cryptocurrency culture quickly gained currency among enthusiasts who had not taken the whole affair very seriously. Dogecoin is now as well-known as Bitcoin (BTC), even among the uninformed. As a result of meme culture, Dogecoin and other meme coins have become immensely powerful.


Read Price Prediction for Dogecoin [DOGE] for 2023-24


In fact, for the greater part of 2022, DOGE/USD performed poorly except for when Elon Musk acquired Twitter. The acquisition raised hopes in the Dogecoin community about increased cryptocurrency usage.

Being Elon Musk’s favorite memecoin at one point, it was counted among the most popular cryptocurrencies. However, the FTX saga was particularly bad for DOGE, as its price had reached around $0.15, the highest since the first crypto crash in May 2022 following the Terra stablecoin debacle.

Since its launch in around 2010, the cryptocurrency industry has come a long way. The vision of the cryptocurrency industry was an on-chain, financial order that would not invite governmental intervention. Needless to say, such a grand plan elicited suspicion and even invited smirks.

Billy Markus and Jackson Palmer, a pair of software engineers, had been observing this trend. who thought that this whole crypto affair was being taken far too seriously. In response, they created a memecoin named Dogecoin in December 2013 to mock crypto maximalists. The memecoin soon became popular across the globe, thanks to it going viral on social media sites such as Reddit.

The token featured an image of an adorable Shiba Inu dog, a rare breed of hunting dog from Japan. Dogecoin went viral on social media platforms such as Reddit, gaining instant popularity worldwide.

Dogecoin soon earned a devoted following. Those who were interested in cryptocurrency but were not too serious about its alleged revolutionary potential were the first to flock to this memecoin. People who liked this breed of Japanese dogs also bought this memecoin. Anyone willing to casually engage with cryptocurrency also participated in the Dogecoin culture.

However, as it gained more traction in the market and its value increased, people began to buy this joke of a cryptocurrency in earnest. Today, it is the 10th largest cryptocurrency by market capitalization, and post the Ethereum Merge, has emerged as the second-largest Proof-of-Work (PoS) cryptocurrency after Bitcoin. In fact, the value and popularity of this memecoin grew so popular that it was the sleeve sponsor for the English football club, Watford F.C. for the 2021-22 season, as reported by The Atlantic.

Thanks to the popularity of Dogecoin, a herd of meme-inspired cryptocurrencies have mushroomed across the globe- Shiba Inu being the most popular among them. Over the years, more than 200 meme coins have been created since the launch of Dogecoin.

Within a few days of its launch, it rose from $0.00026 to $0.00095 in value, recording a significant hike of around 300%. In doing so, it quickly established itself as one of the market’s top-10 cryptocurrencies. Between January and May 2021, DOGE surged by more than 8,600%.

One of the reasons behind such a surge was it being mentioned on social media by tech and entertainment giants such as Elon Musk, Snoop Dogg, and Mark Cuban. On 8 May 2021, it hit an ATH of $0.7376.

As per TradingView, DOGE, at press time, was trading at $0.08346, with a market cap of 11,466,050,585. The eighth-largest cryptocurrency at press time had a 24-hour trading volume of $1,046,729,497.

Source: DOGE/USD, TradingView

A long-term Dogecoin developer Sporklin, now no more, once remarked,

“Dogecoin can be a joke and still be functional… While the branding is frontal jokes and memes, everything under that has been solid from the start.”

What is peculiar to Dogecoin is it is a fascination of the business magnate Elon Musk. Musk even supported Dogecoin on Twitter and once called it a hustle on an SNL episode, significantly pushing its price both times.

However, when the crypto-market crashed in May 2022 and a lot of Dogecoin investors also lost money, an investor named Keith Johnson filed a $258 billion lawsuit against Elon Musk and his companies, SpaceX and Tesla, for allegedly running what he called a “Dogecoin Crypto Pyramid Scheme.” In early September, Reuters reported that the lawsuit now has seven new investor plaintiffs and six new defendants.

So far, DOGE has been used to reward creative users on Reddit, Twitter, and other such networks for good content. People can also get tipped with DOGE in the eponymous online communities where the currency is popular. Another new concept for our readers might be the existence of Dogecoin faucets. A Dogecoin faucet is a website that gives you a Dogecoin for free so that you get introduced to the world of Dogecoins and become an active member of this meme coin community.

Dogecoin has also been used to raise funds for a number of causes. In 2014, the community came together to raise $50,000 worth of Dogecoins to build water wells in Kenya. The same year, a group of enthusiasts raised over $25,000 worth of dogecoins to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi. In 2014 again, the community raised $55,000 worth of Dogecoins to sponsor the Nascar driver Josh Wise. “I can’t thank the dogecoin and Reddit community enough for the support… To the moon!” said Wise.

The growth of Dogecoin over these years has less to do with its infrastructure development and more to do with its strong mining community.

Only recently, Billy Markus, the co-founder of Dogecoin, rejected a $14 million offer to promote Dogechain, the unofficial layer-2 solution for the meme coin. Many believed that the decision reflected Billy’s loyalty to the Doge community. Decentralization is a central marker of this revolutionary financial system and forging an alliance with another group is a possible violation if the latter comes to dominate the system. Keeping the memecoin community fun and independent has been the cornerstone of the belief system underlying the growth of the community.

Today, Dogecoin is as mainstream as Bitcoin and is traded on all the major cryptocurrency exchanges such as Coinbase, Gemini and Binance.

Many prominent members of the blockchain and fintech communities are currently involved with Dogecoin. A foundation was formed in 2014 to support and govern the project but it dissolved over time. It was reinvigorated in 2021 by members of the original core team along with fresh faces and new seasoned advisors ready to grow Dogecoin for the decade ahead.

Its group of directors include Dogecoin founder Billy Markus, core developer Max Keller, Ethereum founder Vitalik Buterin, and Jared Birchall representing Tesla founder Elon Musk. Markus takes care of the community and memes, Keller handles technical aspects of the project, Buterin acts as the crypto-advisor for the foundation, and Birchall provides legal and financial advice.

We can see how a currency that began as a joke has come such a long way that the most prominent members of the crypto community are today leading, advising, and monitoring its development.

Let us explore how this fun cryptocurrency, one that claims to “Do Only Good Everyday,” will perform in the next few years.

Why these projections matter

Dogecoin is the pioneer among all the memecoins active in the market. It is only after the initial success of Dogecoin that other memecoins like Shiba Inu and Monacoin entered the market. In fact, at press time, it was among the market’s top 10 cryptocurrencies.

Dogecoin remains immensely popular among its core fanbase and other crypto-enthusiasts. Currently, its Twitter and Reddit communities have 3.7 million and 2.4 million members. A major reason behind its increasing value has been the support of these online communities.

In January 2021, its price saw a hike of 800% in just 24 hours when a subReddit named r/SatoshiStreetBets began pushing its price to make it the cryptocurrency equivalent of Gamestop. In early April 2021, it rose by 400% after popular crypto-exchange Coinbase went public and Elon Musk tweeted about Dogecoin.


How many DOGEs can you buy for $1?


Before investing in Dogecoin, it is wise that you should be aware of its previous performance, studies and market predictions. It is precisely for this reason that we are providing a summary of most reliable predictions regarding Dogecoin, in addition to the Fear & Greed Index.

Dogecoin’s price, market cap and everything else

The way Dogecoin began as a mockery of Bitcoin and other cryptocurrencies, its performance also broadly mimicked the performance of those currencies. Adverse market conditions towards the end of Q2 in 2022 completely ravished the crypto-market and Dogecoin couldn’t escape its brunt either.

In 2021, it remained one of the best-performing cryptocurrencies, peaking in May with an ATH of $0.7376 and a market cap of over $0.7 billion. Then it quickly began descending. 2022 began with a fairly decent start for the cryptocurrency, with a price of around $0.17 in early January. But since then, it has lost over 60% of its value.

It was in May 2017 that its market capitalization crossed $100 million and by the end of 2017; it crossed $1 billion. During 2018-20, the market cap of Dogecoin couldn’t cross the $1 billion mark. However, come 2021 and like its price, its market cap also kept soaring. In April, it hit $52.65 billion, before reaching the $88.68 billion mark in early May. It ended the year 2021 with a market cap of over $22 billion.

Early 2022 was also fairly blissful for Dogecoin, though not as good as the previous year. In early April 2022, its market cap was $19.84 billion. Alas, since May, the same has been falling from around $17 billion.

What is peculiar to Dogecoin is it being a subject of fascination for business magnate Elon Musk. Musk even supported Dogecoin on Twitter and once called it a hustle on an SNL episode, significantly pushing its price both times.

 

It has also won the support of other celebrities, such as Mark Cuban and Snoop Dogg too. While the former’s NBA team Dallas Mavericks has been accepting Dogecoin as a payment currency, the latter supported Musk in his support for the meme coin on Twitter.

Another distinction between Dogecoin and other cryptocurrencies is that there is absolutely no cap on the number of Dogecoins that can be issued. Its website claims that it “has a diminished inflation rate because it has a fixed yearly issuance of 5 billion coins.”

Dogecoin’s 2025 Predictions 

Investors should understand that different analysts look at different sets of parameters to forecast market metrics. Different analyses can therefore widely vary. We should also remember that unexpected macroeconomic forces such as government regulations and wars cannot be foreseen. Market changes its course wildly during such changes. No prediction is therefore set in stone.

Now, let us see how different analysts have predicted the future of Dogecoin in 2025.

Coin Journal is rather bullish about the future of Dogecoin as it predicts its wider utility as more and more merchants begin accepting it as a mode of payment, raising its price to $1.18. 

A Changelly blogpost mentions that the maximum and minimum prices of DOGE in 2025 will be 0.239 and 0.279. It predicts a potential ROI of 221.8% for DOGE in the said year. 

Benzinga also predicts that the end of 2025 could be the beginning of the next bear market, causing DOGE to consolidate around the $0.20 mark.

Dogecoin’s 2030 Predictions 

Even though predicting market metrics 8 years down the line is very speculative, it is nonetheless helpful to study the predictions of reliable crypto analysts regarding Dogecoin in 2030.

CoinJournal is quite hopeful in its assessment of Dogecoin, predicting that it will be trading at $2.59 in 2030.

A Changelly blogpost predicts that DOGE will be traded for at least $1.5 in 2030, with a possible peak price of $1.81. Its average price is expected to be around $1.55 in 2030.

According to Benzinga, Dogecoin could rise and take new ATHs of $1.30 if it builds a robust network effect and strong community.

Though we must understand that the further we look into the future, the harder it becomes to predict the prices of a currency. It becomes especially challenging in a market as volatile as cryptocurrency.

We must understand that the further we look into the future, the harder it becomes to predict the prices of a currency. It becomes especially challenging in a market as volatile as cryptocurrency.

Experts opine that influencer marketing and promotions will also heat up DOGE’s price. It will also grow at a substantial rate. Features such as zero staking rewards and lack of new use cases will also impact the market.

Here, it’s worth pointing out that perhaps, Dogecoin doesn’t follow the traditional rules of a regular asset since it is a memecoin. Just consider what Panxora Hedge Fund’s Gavin Smith has to say –

“Detractors of the token forget that community is at least as important as uniqueness in the crypto-space.”

There’s the matter of updates too. Ordinarily, people would associate new upgrades and updates with a hike in the crypto’s price. However, has that been the case for DOGE? Well, not quite. In fact, Musk has been more useful as a catalyst. In fact, Finder’s panel seemed to agree with the said proposition.

Source: Finder

Conclusion

The primary factors that affect the performance of Dogecoin are:

  • Impact of Bitcoin on the broader crypto market
  • Support of influential figures such as Elon Musk
  • DOGE’s comparatively lower price
  • Highly decentralized structure.

“Bitcoin Jesus” Roger Ver once famously said that the memecoin is superior and better than the pioneering cryptocurrency – Bitcoin. Now, whether the aforementioned predictions will come true or not depends on a lot of factors, some of which cannot be foreseen. Even so, for an altcoin that began as a joke, Dogecoin has certainly come a long way.

Morgan Creek Capital Management Chief Investment Officer Mark Yusko recently launched a stinging attack on Dogecoin, saying that meme coins don’t have any value. “The speculative nonsense like Dogecoin, why does it even exist,” Yusko asked during a YouTube show with crypto analyst Scott Melker.

Dogecoin was the first memecoin that successfully wedded the financial potential of cryptocurrency with the fandom of meme culture, making it accessible for new crypto users. In addition, celebrity endorsement also added immensely to its popularity. Today, it is counted among the most valued cryptocurrencies.

Elon Musk’s takeover of Twitter has certainly piqued an interest in Dogecoin. In October 2022, Musk introduced a Boring Company fragrance on Twitter, which could be bought with Dogecoin. The announcement had an instant impact as Dogecoin’s price quickly rose. In November 2022, Musk unpacked Twitter 2.0 and outlined several potential changes, including a blank space next to payments. This has led to many people to speculate that a cryptocurrency may be used but there is no certainty so far. 

In October 2022, Google Cloud and Coinbase announced a collaboration for Web 3.0 development projects. Certain customers will be able to pay for these services using cryptocurrencies, such as Dogecoin. We’ll have to wait and see if the decision is implemented and if other companies will follow suit.

Blockchain security firm Halborn released a report on 13 March that highlighted major vulnerabilities known as “Rab13s” plaguing more than 280 blockchains, including Dogecoin. According to Halborn, it was hired to inspect Dogecoin’s code in March 2022, with the project soon patching any vulnerabilities it discovered.

Dogecoin’s Fear and Greed Index stood at the ‘extreme fear’ mark at press time.

Source: CFGI.io

We have seen how the performance of memecoin gets affected by macroeconomic factors, besides the developments in the crypto industry. Investors looking to gain on funds invested in Dogecoin should keep looking for such factors.

USDC Market Cap Dips By $10 Billion In 2 Weeks – Here’s Why

https://www.newsbtc.com/news/usdc-market-cap-dips-by-10-billion-in-2-weeks-heres-why/

USDC has struggled to recover from the negative fallout a few weeks ago after Silicon Valley Bank’s (SVB) collapse. Investors have continued to withdraw their assets from the stablecoin despite assurances from issuer Circle about its reserves. 

USDC Market Cap Plummets By $10 Billion In Two Weeks 

According to data from crypto-data aggregator Coinmarketcap, USDC’s market cap has plummeted by more than 5% in the past month. In the past two weeks alone, more than $10 billion has been wiped out from its market cap. USDC’s troubles were exacerbated by the de-pegging that occurred after SVB’s downfall. Within hours the stablecoin was down 15%, leading to fears that it could follow a similar fate as that of TerraUSD, which collapsed in 2022. 

Related Reading: Crypto ATM Installations Decrease By Over 5,000 In 2023 – Here’s Why

Investors began to withdraw their assets into other cryptocurrencies leading to panic in the crypto market. Exchanges like Binance and Coinbase followed suit by suspending auto conversions of USDC on their platforms. These negative sentiments led to Circle issuing a series of tweets informing holders that their assets were safe. 

Thankfully, the Federal Reserve rescued SVB and provided a bailout fund, ensuring that Circle could access the $3 billion worth of reserves stuck in the defunct bank. Since then, USDC peg has gone back to 1$. Nonetheless, the damage has been done, and investors’ confidence is at an all-time low. 

Tether (USDT): Biggest Winner In The Stablecoin Wars 

Amid the troubles with USDC, the biggest gainer has been the rival stablecoin Tether (USDT). While the USDC market cap has plummeted, USDT has witnessed a massive increase in its market cap in recent weeks. 

The leading stablecoin has seen its market dominance surge above 60% for the first time since 2021, buoyed by the USDC problems. Unsurprisingly, most outflows from USDC were sent to USDT as investors looked to keep their assets safe from potential liquidation. 

USDT market cap has increased significantly in 2weeks. Source: USDT on TradingView.com

USDT has also benefited from the uncertainty behind the rival stablecoin BUSD. Earlier in February, the US Securities and Exchange Commission (SEC) ordered Paxos, the issuer of the Binance-backed stablecoin, to stop minting. This led to a significant decline in the market cap of BUSD, with USDT taking a lion’s share of the volume. 

Related Reading: Cardano Stands Out In Robinhood’s Top Movers List For The Week

Paolo Ardoino, the CTO of Tether, recently said that he expects $700 million in profits for the company for this first quarter. A staggering sum, bringing the USDT issuer’s excess reserves to over $1.6 billion.

Another significant winner is TrueUSD (TUSD), whose market capitalization has doubled since the beginning of the year. Despite these moves, USDC remains the second-largest stablecoin with a market cap of $32 billion at the time of writing. It will be interesting to see if the USDC will recover in the coming weeks and challenge USDT’s position as the top stablecoin. 

Featured Image from Unsplash.com, Charts from Tradingview.com.

Binance Coin (BNB) Price Prediction 2025-2030: Will FUD affect BNB?

https://ambcrypto.com/binance-coin-bnb-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

Binance Coin (BNB) is a cryptocurrency that was launched in 2017 by Binance, the world’s largest cryptocurrency exchanges. BNB was initially created as a utility token to be used on the Binance platform, but over the years, it has become a popular investment asset in its own right.


Read Price Prediction for Binance Coin (BNB) 2023-24


In the early days of BNB, its price was relatively stable and showed steady, gradual growth. However, in the past year or so, the price of BNB has seen some significant fluctuations.

In late 2020, BNB’s price experienced a significant bull run, reaching an all-time high of nearly $40 in December of that year. This was driven in part by the overall bull market in the cryptocurrency space, as well as a strong demand for BNB as a utility token on the Binance platform.

Binance is a well-established and respected exchange, and BNB is a key component of its ecosystem. BNB is also backed by a number of high-profile partnerships and collaborations, which added to its credibility and appeal. However, the developments of the past few days have tested the token’s resilience to withstand fluctuations in the market. Following the enforcement actions against Binance’s stablecoin partner Paxos earlier this week, BNB tanked more than 10% within 24 hours.

In 2021, Binance and its blockchain network gained popularity, causing the value of BNB to soar. Owning BNB on the Binance Chain grants users access to exclusive token sales and a reduction in trading costs. It can also be used as a community token for dApps on the Binance Chain.

Investors who bought BNB at the start of the year were rewarded with returns of over 1,200% by the end of the year. Binance Chain has since become the native blockchain of BNB, and Binance.US has adopted BNB as its official cryptocurrency.

The launch of the Binance Chain also marked a significant shift for Binance Coin, as all BNB holders were required to participate in a token swap in order to exchange their ERC-20 BNB tokens for the new Binance Chain BNB tokens.

On the other hand, it shouldn’t be forgotten that the exploit on BNB chain-based Ankr protocol on 1 December sent BNB’s price down by almost 5% within a matter of hours. As far as price action is concerned, the bulls attempted to break the key resistance zone at $300 back on 5 December. However, the bulls held their ground. $281 has emerged as a short-term support zone.

BNB has been in the news recently due to its involvement in the hack that was carried out on the bankrupt crypto exchange FTX. The perpetrator swapped thousands of BNB tokens for other cryptos but still holds an estimated $41 million worth of BNB.

The immense volatility in BNB prompted some strategic decisions from Binance CEO Changpeng Zhao, one of them being the top-up of the exchange’s Safe Asset Funds for Users or SAFU. The exchange announced that it will be replenishing this insurance fund, bringing its holdings up to $1 billion.

June 2022 had a yearly low of $183 as a result of this decline. However, it is important to note that on the daily chart, the RSI indicator has not yet risen beyond 50.

The nearest long-term resistance level, at $427, would be reached if the current trend continues.

Late in January 2021, Binance Coin joined the upswing in the cryptocurrency market, rising from $40 to $330 in a single month. BNB’s price dropped in March, trading for a while in the $250 to $300 region, but in April it rose again quickly, reaching an all-time high of $690.93 on May 10.

Consider this – In January 2021, the price of Binance Coin (BNB) was $40. However, 2021 also saw a significant incline in BNB’s price, one that allowed it to hit $690 on the price charts. In fact, this was its highest price level in 2021.

Worth noting, however, that soon after, the latter few months of 2021 saw the wider market fall across the board. Needless to say, the same had a ripple effect on BNB’s price charts as well, with the exchange token hitting new lows.

In the past, Binance Coin (BNB) rose subtly and gradually to rank among the most valuable cryptocurrencies by market cap. Above all, the growth of Binance, the biggest cryptocurrency trading platform, has caused the value of the BNB to rise significantly in recent years.

In recent months, the bear market has caused Binance Coin (BNB) to experience more severe losses. BNB surpassed its all-time high of $690 during the May 2021 bull market. However, the bear market soon began in November and the price plummeted.

When consumers use the BNB on the platform, Binance reimburses them for a large portion of the transaction expenses. BNB has grown in significance as a component of the platform over the past few years. The demand for Binance Coin rises as Binance expands and gains more users, which boosts the coin’s price and forecast.

Binance makes sure that the supply of BNB is routinely lowered as demand rises. Every three months, a specific portion of BNB is destroyed, making Binance Coin deflationary and improving the outlook for BNB going forward.

BNB also functions as a payment method and opens up more opportunities on the Binance platform, including savings, DeFi staking, and liquidity mining via the BNB vault.

It was initially used as an ERC-20 token on the Ethereum (ETH) network before being moved to the Binance network and changing its name to BEP-20.

As the Ethereum Merge has taken place, Binance has been able to manage the transition for its users in an efficient manner.

Binance Coin was initially created in 2017 as a utility token for discounted trading fees. Today, however, its use cases have grown on several cryptocurrency exchanges. BNB can be used to pay transaction fees on many Binance platforms such as Binance.com, Binance DEX, and Binance Chain, besides crypto.com and HTC. Hotel booking sites (e.g. TravelbyBit), SAAS platforms (e.g. Canva), DeFi apps (Moeda) and a large number of platforms accept BNB as a mode of payment.

BNB’s price has fallen as a result of the cryptocurrency market’s sharp bearish shift. One can also argue that the SEC’s issues with Binance took a heavy toll on the price of the altcoin. Even so, expectations remain high.

Finder.com surveyed 54 people recently, with the panel believing that the coin has promising long-term potential. The crypto’s price is expected to hit $781 in 2023. And, although BNB may not be receiving as much attention right now, it routinely ranks among the best-performing currencies in terms of ROI. It is also the fourth-largest crypto in the world.

Late in January 2021, Binance Coin joined the upswing in the cryptocurrency market, rising from $40 to $330 in a single month. BNB’s price dropped in March, trading for a while in the $250 to $300 region, but in April it started to rise again quickly, reaching an all-time high of $690.93 on May 10.

Binance Coin’s price fell as the entire cryptocurrency market collapsed in late May 2021. At about $200, it recovered and rose to about $430, but this upturn was fleeting. BNB fell to about $250 in late June and then fell once more in the middle of July. However, the market began to show signs of recovery later that month, and Binance Coin wasn’t an exception. BNB’s price increased dramatically once more, surpassing $350 in the first half of August.

However, like most cryptos in the market, 2022 wasn’t a good year for the exchange token, with BNB falling on the charts.

Given everything, buying BNB must be a wise decision in the long run, right? Most analysts have positive predictions for BNB. Additionally, the bulk of long-term BNB price projections are upbeat.

Why do these projections matter?

BNB is a cryptocurrency that is native to the world’s biggest cryptocurrency exchange. It is also crucial to the Binance Smart Chain ecosystem. The latter, in fact, is one of Ethereum’s competitors, and it offers substantially higher scalability and lower transaction costs.

The steady increase in the number of traders on Binance also has a positive impact on the price of BNB. The cost of this altcoin had increased, rising from $526.94 in October 2021 to $555.34 at the start of January 2022. It is anticipated to keep expanding as trade activity on the exchange rises as Binance establishes itself as a market leader in the cryptocurrency trading industry.

Its value reached a high point, in part due to the volume of BNB used for decentralized applications (DApps), DeFi, and smart contracts after the launch of Binance Smart Chain. With 44 exciting projects, BSC is the second-largest DeFi platform at the moment. Over 620,000% have been added to the value of Binance Coin between its 2017 introduction and its 2021 peak.

The fact that the exchange has maintained a burning program since the coin’s introduction is just another reason to trust BNB. On April 15, 2021, Binance burned more than 1,099,888 BNB, equal to $595,314,380 worth of tokens. This is Binance’s 15th quarterly BNB burn, and in terms of cash, it was the biggest one yet.

In this article, we’ll quickly review the current activity of the cryptocurrency with a focus on market cap and volume. In conclusion, predictions from the most well-known analysts and platforms will be summarized together with an analysis of the Fear & Greed Index to determine market mood.

BNB’s price, volume, and everything in between

At press time, BNB was trading at $315.6, rising 0.03% in 24 hours. The market cap of the token rose slightly by 0.05%, sitting at 49,755,735,287 at press time. The daily trading volume of the fourth-largest cryptocurrency was poised at $452,124,630.

Source: BNB/USD, TradingView

And as the numbers slowly go up, investors and experts have gone bullish on the token. The managing director of Digital Capital Management, Ben Ritchie, is positive about BNB and predicts that by the end of the year, the crypto will be worth $300. Ritchie also admitted that the viability of Binance’s exchange will determine the destiny of BNB. Going on to say that the asset has the potential to be a deflationary one, he added,

“The price of BNB also follows the demand and supply. BNB introduced a burn mechanism in every transaction fee and conducted quarterly burns, making it a deflationary asset. Since the BNB chain ecosystem continues to grow, the price may reach as high as $3,000 in 2030.”

At the time of writing, the price of Binance Coin was below the 200-day simple moving average (SMA). Since 20 January 2022, the 200-day SMA has been indicating SELL for the previous 212 days. Since 16 July 2022, when Binance Coin’s price fell below the 50-day SMA, this indicator has been indicating a SELL signal for the last 55 days.

Let’s now look at what well-known platforms and analysts have to say about where they believe BNB will be in 2025 and 2030.

BNB Coin Price Prediction 2025

Changelly, for its part, is very optimistic about the fortunes of Binance Coin. It predicted that the lowest BNB price in 2025 will be $1,122.96, while its highest price will be $1,270.31.

Technologist and futurist Joseph Raczynski too has a bullish outlook. He believes Binance to be the top worldwide exchange. He said,

“While BNB is not decentralized, it still can serve a purpose for fast and cheap transactions. That has a cost though. Binance could change parameters on the token without consensus and they are far more likely to be a single point of failure.”

Crypto-exchange CoinDCX predicts that if the end of the previous year was bullish, the beginning of 2025 might likewise be positive. Thus, the price could initially reclaim its position above $2000 and continue to maintain a strong advance. Consequently, one might try to reach $2500 by the end of 2025.

So, with all these positive predictions, is there a reason to not root for BNB? Well, remember that 2025 is still more than three years from now and Binance has a lot going on with the SEC. The SEC is after Binance, accusing it of issuing BNB as an unregistered security.

However, despite this, the market is quite optimistic. The Co-founder and Vice President of MetaTope, Walker Holmes, does not believe that the SEC will significantly harm the future of BNB. He said,

“We have seen this play out with XRP, ETH, and others. CZ can present a very compelling case. I think this is a question of potential monetary penalties. However, at the time of writing, I do not think Binance is at major risk of being taken down.”

BNB Coin Price Prediction 2030

CEO of Balthazar, John Stefanidis, expressed great optimism about BNB in a study. A BNB value of $3,000 by 2030, in his opinion, is entirely doable. Due to its cutting-edge technology and adherence to international rules, BNB is well-positioned for long-term success. He also emphasized that Binance’s great UX, strong venture team, and great brand are all factors in BNB’s success.

Although BNB is more affordable for many investors, Desmond Marshall, the Director of Rouge Ventures and Rouge International, thinks Binance Coin might overtake Ethereum. According to him, the implementation of the limits will have the greatest impact on the performance of the crypto. Additionally, the trust that the neighborhood has in BNB is a crucial factor in determining future growth.

Now, all these predictions are positive, but one has to be careful. We are talking about 8 years from now and it is worth taking into account the current status of the crypto industry. The prices of BNB and Bitcoin are closely correlated. Fortunately, BNB can be burned on the Binance market, which reduces the number of tokens in circulation and could raise the price of the coin.

The profitability of BNB will be significantly influenced by technological advancements. To enhance the functionality of the blockchain, Binance has several plans to invest in cutting-edge technologies.

Conclusion

Now, it is not that the prediction of the coin is always positive. In light of the coin’s volatility and the fact that it “primarily follows the price gyrations of Bitcoin and has no real-world use,” John Hawkins, a senior lecturer at the University of Canberra, has predicted that BNB’s price will fall to $180 by the end of 2023.

It’s critical to bear in mind that cryptocurrency markets are incredibly unpredictable, making it challenging to provide long-term projections. Worth noting, however, is that the F&G Index was in the ‘neutral’ zone at press time.

Source: CFGI.io

Polygon (MATIC) Price Prediction 2025-2030: Will hard fork spur MATIC’s fortunes

https://ambcrypto.com/polygon-matic-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject

Ethereum’s (ETH) popular scaling solution Polygon (MATIC) has seen a price appreciation of more than 42% since the beginning of 2023. The Polygon network recently underwent a key hard fork, an upgrade that its community had been anticipating. The hard fork addressed the spikes in the network’s gas feed and disruptive chain reorganizations.


Read Price Prediction for Polygon (MATIC) for 2023-24


MATIC’s popularity has been driven by its use case as a Layer 2 scaling solution for Ethereum, providing faster and cheaper transactions and increased scalability to the Ethereum network. This is especially useful for dApps, which often struggle with high transaction fees and slow transaction speeds on Ethereum. Additionally, MATIC has a strong community and developer base, which has helped to drive its adoption and usage.

Unlike other cryptocurrencies with unlimited supply, the supply of MATIC is limited, adding to its scarcity and value. The Polygon team is working towards bringing more users and developers onto the network, and with its focus on performance, user experience, and security, it is well-positioned to play a major role in the growth of the Ethereum ecosystem.

The increase in MATIC’s price can be attributed to the growing popularity of the Ethereum network and the enthusiasm that companies have shown in implementing their Ethereum-based dApps using Polygon. This has made Polygon an attractive investment opportunity for those looking to invest in blockchain technology.

The unique features of Polygon have made it a go-to solution for dApp developers looking to scale their projects, and its growing popularity and adoption are likely to drive the value of MATIC higher in the coming years.

MATIC has seen a price appreciation of more than 28% since the beginning of 2023. However, on the back of the Silvergate crisis and the Biden administration taking many steps to regulate the crypto-sector, MATIC, like the rest of the market, fell down the charts.

The Polygon network recently underwent a key hard fork, an upgrade that its community had been anticipating. The hard fork addressed the spikes in the network’s gas fees and disruptive chain reorganizations.

report published by Blockchain analytics firm Messari showed that the third quarter of 2022 saw a 180% increase in the number of MATIC’s active addresses Q0Q, with total transactions for the quarter coming in at 2 billion.

Additionally, Polygon’s partnership with Warren Buffet-backed Nubank, which was announced last week, is being seen as a positive development for the network.

Popular TV Network SHOWTIME recently announced a collaboration with Polygon and Spotify.

In other news, Polygon informed users that Ethereum’s Merge had dramatically reduced its carbon dioxide emissions.

Polygon Network reached a new milestone on 15 November after the number of unique addresses reached 191.2 million. Data from polygonscan shows that the daily transactions on the Polygon chain took a significant hit following the news of FTX’s bankruptcy. As of 15 November, the total transactions stood at 3.26 million.

Polygon announced a partnership with Nike earlier this week. This joint venture will see the sportswear apparel brand bild it’s web3 experiences exclusively on Polygon.

MATIC’s YTD chart may suggest a buy signal, given that the crypto is currently well above $1, compared to $2.58 towards the beginning of the year. While this may look like a ripe opportunity to beef up MATIC holdings at a discounted price, it is important to look at other factors while making an investment decision.

One possible reason for the decline in the daily volume of MATIC is the Ethereum Merge, which took place on 15 September. The crypto has taken a hit following the Merge event, with both market cap and daily volume on a downtrend.

Polygon recently published an analytical insight into its bridge flow between January and August 2022. A closer look at the numbers revealed that in these eight months, more than $11 billion entered the Polygon ecosystem from multiple chains. Ethereum and Fantom Opera contributed the most with an inflow of $8.2 billion and $1.06 billion, respectively, which also puts it at the top in terms of net volume.

As far as bridges are concerned, Ethereum’s PoS bridge and Plasma bridge accounted for a net volume of $1 billion and $250 million within this time period. Meanwhile, Ethereum’s PoS and Fantom Opera’s Multichain bridge accounted for a combined outflow volume of more than $7.2 billion. Considering all 43 bridge chain pairs, the average volume comes out to be $48 million.

Data from CoinMarketCap showed that at press time, MATIC was trading at $1.1105, up 0.72% in the past 24 hours. The token’s $10,162,803,194 market capitalization makes it the ninth largest crypto in the world. 

Source: MATIC/USD, TradingView

In 2021, MATIC’s price went soaring thanks to the increasing popularity of Ethereum and surging activity in NFTs and play-to-earn games like Axie Infinity. MATIC began the year at a humble $0.018 and a market cap of $81 million. By the end of the year, MATIC’s market cap hit a whopping $20 billion, with the altcoin touching its all-time high of $2.92 on 27 December.

On 12 May 2021, Ethereum co-founder Vitalik Buterin donated crypto worth $1 billion to India’s Covid-19 relief fund set up by Nailwal. This seemingly unrelated event caused MATIC to surge by 145% within the next 48 hours. By 18 May, the token had gone from $1.01 all the way up to $2.45, gaining 240%.

In May 2021, Polygon was in the news after it received backing from billionaire investor Mark Cuban, who revealed plans to integrate his NFT platform Lazy.com with Polygon. Following his investment in Polygon, Cuban claimed that the Polygon Network was “destroying everybody else” at the Defi Summit Virtual Conference in June 2021.

Since the beginning of 2022, Polygon has secured various partnerships, most notably with Adobe’s Behance, Draftkings, and billionaire hedge fund manager Alan Howard for the development of Web3 projects. Polygon boasts partnerships across various industries. Instagram and Polygon have collaborated on NFTs too.

Stripe has launched global crypto pay-outs with Polygon. Fashion brands like Adidas Originals and Prada have launched NFT collections on polygon

Based on gathered adoption metrics, Alchemy has described Polygon to be the best-positioned protocol to drive the booming Web3 ecosystem. Data from Alchemy also showed that at press time, Polygon hosted more than 19,000 decentralized applications (dApps) on its network.

On 27 May 2022, Tether (USDT), the largest stablecoin by market capitalization, announced that it was launching on the Polygon Network. MATIC rose by more than 10% following news of the launch.

Citigroup released a report in April 2022, one in which it described Polygon as the AWS of Web3. The report went on to claim that the Metaverse economy is estimated to be worth a whopping $13 trillion by 2030, with most of it being developed on the Polygon Network. Citigroup also believes that Polygon will see widespread adoption thanks to its low transaction fees and developer-friendly ecosystem.

The Terra network’s collapse in May 2022 triggered an exodus of developers and projects. Polygon soon announced a multi-million dollar, Terra Developers Fund, in a bid to help the migration of anyone looking to switch networks. On 8 July, Polygon Studios CEO Ryan Wyatt tweeted that over 48 Terra projects had migrated to Polygon.

Crypto exchange Coinbase published a report on 8 August 2022 that claimed that the future of Layer 2 scaling solutions could very well be a zero-sum game, hinting that layer 2 solutions like Polygon could overtake Ethereum in terms of economic activity.

On 8 August 2022, blockchain security firm PeckShield reported a rug pull by the Polygon-based play-to-earn game Dragoma, following a sharp decline in the value of its native token DMA. The same has been corroborated by data from Polygonscan which shows a clear surge in token transfers and transfer amount on the day of the alleged rug pull which led to a loss of over $1 million.

In the week following Polygon’s announcement of the Gnosis bridge, MATIC surged more than 18% breaking the crucial resistance at $1 for a brief period. This feature paves the way for Web3 teams like DeFi protocols and DAOs to transfer assets between Ethereum and Polygon, for considerably fewer gas fees without compromising on security.

Numbers from the 32nd edition of PolygonInsights, a weekly report published by Polygon outlining key network metrics, indicated that in spite of dropping down from the $1 mark that MATIC had reclaimed barely a week before, not all was lost. Weekly NFT volume stood at $902 million, a whopping 800% increase from the previous week. Meanwhile, active wallets grew by 75% to 280,000.

In an industry that is often blamed for being energy intensive and harmful to the environment, Polygon has distinguished itself by achieving network carbon neutrality after offloading $400,000 in carbon credits. This nullified the carbon debt accrued by the network. As per the ‘Green Manifesto’ published by Polygon, they now plan to achieve the status of being carbon-negative by the end of 2022. In fact, they have pledged $20 million towards that milestone.

Cercle X, the world’s first decentralized application for waste management solutions, announced on 15 August that it had integrated with Polygon to leverage Web3 to digitize the garbage disposal process by developing a waste management dashboard.

Whale Movement

Source: Santiment

Data from blockchain analytics firm Santiment showed that following the market-wide sell-off triggered by the collapse of Terra, almost 30% of the supply held by top exchange addresses (whales) was taken off of exchanges, the same is corroborated by the visible spike in supply held by non-exchange addresses which indicate that supply held by non-exchange addresses soared all the way to 806 million MATIC.

However, come mid-June, this transfer was reversed, with investors rushing their MATIC holdings into exchanges and non-exchange holdings dropping by 240 million MATIC.

It would be safe to assume that these holdings came from non-exchange addresses as a sharp decline in supply held by them is visible. For over a month the holdings were rather dormant in their respective places, but by the end of July, supply held by top exchange addresses was slashed again, this time by 120 million MATIC. At the same time, non-exchange addresses held a whopping 6.6 billion MATIC.

Latest Stats

On August 30, Polygon released the 34th edition of PolygonInsights, a weekly analytics report where key metrics about the network, dApps and NFTs are published.

With 817,000 weekly active users, the network registered a 14% growth, compared to the 805,000 active users in the previous week. While daily transactions fell by 3%, the overall transactions were 12% cheaper than the week before. The average daily revenue came out to be $45,100.

Numbers in the NFT department were a lot more optimistic. The weekly NFT grew by a whopping 400%, reaching $656 million. The number of new NFT wallets surged by almost 60% with 60,000 new users registering with the network. Mint events and total NFT transactions were the two areas that didn’t see growth, with both numbers declining by 12% and 9% respectively.

dApp stats revealed that Arc8 and SushiSwap were the top two movers in the top 25 protocols. Arc8 registered more than 30,000 new users, a 51% increase from the previous week. SushiSwap on the other hand registered 8200 new users, reflecting a massive 88% increase over the previous week.

Polygon Tokenomics

Polygon has a maximum total supply of 10 billion tokens, out of which 8 billion are currently in circulation. The remaining 2 billion tokens will be unlocked periodically over the next four years and will primarily be disbursed through staking rewards. The initial exchange offering was held on Binance through the Binance Launch Pad to facilitate the sale of 19% of the tokens.

Source: Polygon Forum

Following is the breakdown of the current supply –

  • Polygon Team – 1.6 billion
  • Polygon Foundation – 2.19 billion
  • Binance Launchpad – 1.9 billion
  • Advisors – 400 million
  • Private sale – 380 million
  • Ecosystem – 2.33 billion
  • Staking Rewards – 1.2 billion

Understandably, there are many who are very bullish on MATIC’s future. Some YouTubers, for instance, believe MATIC will soon be worth $10 on the charts. In fact, he claimed that a “glorious” double-digit valuation for the token is inevitable.

“We’ve seen Polygon really picking up in the number of NFTs sold. We can see from July, when we had 50,000 Polygon-based NFTs sold, to now where we have… 1.99 million NFTs sold in the month of December on Polygon on OpenSea. That’s absolutely massive, massive growth for the Polygon ecosystem.”

MATIC Price Prediction 2025

After analyzing the altcoin’s price action, crypto-experts at Changelly concluded that MATIC should be worth at least $3.39 in 2025. They forecasted a maximum price of $3.97 for that year.

According to Telegaon, MATIC should be worth at least $6.93 by 2025, with an average price of $7.18. The maximum price projected by the platform is $9.36.

MATIC Price Prediction for 2030

Changelly’s crypto-experts believe that by the year 2030, MATIC will be trading between $22.74 and $27.07, with an average price of $23.36.

Here, it’s worth pointing out that 2030 is still a long way away. 8 years down the line, the crypto market could be affected by a host of different events and updates, each of which is difficult to ascertain. Ergo, it’s best that predictions like these are taken with a pinch of salt.

On the bright side, however, MATIC’s technicals flashed a BUY signal at the time of writing. It is no wonder then that most are optimistic about the fortunes of the altcoin.

Conclusion

MATIC’s recovery since the market-wide sell-off in May has been impressive, but it is possible that the trend reverses if investors choose to book their profits. Especially given that a lot of them have seen their holdings diminish due to the ongoing crypto-winter and the prospect of living in the green will be tempting.

Speaking at the Korea Blockchain Week 2022, co-founder Sandeep Nailwal suggested that bearish conditions such as the ongoing crypto winter, provide a ‘noise-free’ environment suitable for talent acquisition and marketing. This could mean that Polygon comes out ahead once the trend reverses and the bulls are back in charge of the market.

Crypto experts seem to be divided over the aftermath of the much-anticipated Ethereum merge which is scheduled for next month. Some believe that when ETH 2.0 arrives, it may make scaling solutions redundant – or at least less important.

The other side of experts has argued that the merge will make Ethereum more eco-friendly by reducing energy consumption, and by extension will benefit layer 2 scaling solutions like Polygon by increasing its appeal to investors as environment-friendly crypto. In addition to this, MATIC would also be poised for a surge in value since Ethereum’s merge will have no effect on its controversially high gas fees, effectively advertising Polygon’s use case.

In a blog post on 23 August, The Polygon team addressed the community’s concerns regarding the merge and its impact on the network.

The team assured users that the merge is good news and nothing to worry about. The team went on to explain that while the merge will reduce Ethereum’s energy consumption significantly, it will not have any effect on the gas fees or transaction speed, which is a major problem for the network. “the network depends on Polygon and other Layer 2 solutions to solve for this.” the team added.

The team reiterated that the growth of Ethereum will lead to the growth of Polygon and that the future of both networks is symbiotic.

This statement from the Ethereum Foundation will come as a relief to those worried about the impact of the merge on the polygon network, “The Ethereum ecosystem is firmly aligned that layer 2 scaling is the only way to solve the scalability trilemma while remaining decentralized and secure.”

When ETH 2.0 comes, it may make scaling solutions redundant – or at least less important. The counter to that is Polygon plans to expand to other blockchains and the interoperability capabilities in the future will offset any threat that Ethereum’s Merge presents.

The major factors that will influence MATIC’s price in the coming years are –

  • Successful rollout of zero-knowledge EVMs
  • Expansion to new blockchains
  • Growth in dApps hosted on the network

Predictions are not immune to changing circumstances and will be updated with new developments. Do note, however, that predictions are not a substitute for research and due diligence.

It’s worth pointing out here that as far as social sentiment is concerned, all are on the positive side for Polygon.

Source: IntoTheBlock

The Fear and Greed Index remained steady in the ‘greed’ zone.

Source: CFGI.io

Algorand (ALGO) Price Prediction 2025-2030: Will ALGO continue coasting?

https://ambcrypto.com/algorand-algo-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

Algorand (ALGO) has been trading along the resistance level of $0.22 for the past three days, as we witnessed its market cap surpassing $1.6 billion. The move which drew the self-sustaining blockchain project close to reclaiming the $2 billion mark it lost since the market downturn in 2022 meant that the token now had an increased percentage of the circulating supply in the market. 


Read Price Prediction for Algorand (ALGO) for 2023-24


ALGO, whose network supports a wide range of blockchain-based applications, had struggled to remain in the limelight since its 75.91% drawdown from its ATH. But like other assets, the new year brought it some sort of respite.

Algorand’s performance as a project has engaged its first Chief Financial Officer (CFO) Mathew Commons, who was hired for the new position. This appointment takes place at a time when the Algorand ecosystem is expanding extremely quickly.

Since the beginning of the year, the total locked value (TVL) had been rising rapidly ($206 million on 21 February). But it quickly dissipated during March though it seems to be recovering now (119.75 million). At the end of 2022, it stood at a mere $75 million.

Although Algorand (ALGO) is intended to be a very effective proof-of-stake (PoS) blockchain, other networks like Ethereum (ETH)BNB Chain, and Solana (SOL) have been at the forefront of significant DeFi activity. The narrative surrounding the blockchain appears to be changing for the better based on the increase in Algorand’s DeFi TVL during the past week.

Algorand has created a mark in traditional institutional circles, in addition to numerous initiatives for retail clients. Algorand oddly distinguishes between “blockchain” and “crypto.”

The temporary CEO Sean Ford Sean says,

“Those are two very distinct things. The focus is on developing blockchain applications that have the potential to influence society and change the world as a whole.”

Compared to Ethereum, both systems employ proof-of-stake, smart contracts, and infrastructure to support the creation of other blockchain-based applications.

The two, however, use various staking and rewarding strategies. Many of the projects supported by the Algorand blockchain are centered on decentralized finance, such as decentralized lending and trade. The Algorand blockchain also supports stablecoins and other cryptocurrencies.

The Algorand Foundation is committed to ensuring that the open-source ecosystem, decentralized governance, and sound monetary supply economics of the Algorand blockchain contribute to realizing the worldwide potential of this technology.

The FIFA World Cup, held during 20 November- 18 December 2022, was expected to augment ALGO’s performance significantly as the blockchain was one of the key event sponsors. But its performance remained bearish throughout the season as the entire crypto industry was reeling under the pressure of FTX’s collapse. Its price fell from $0.3 to $0.19 during this entire football mania, a drop of more than 35%.

However, the increases in coin values appear to be waning as the adverse market sentiment overpowered all of the positive development and anticipation for the next FIFA World Cup.

Algorand (ALGO) is officially on the Cardano network, according to an announcement made by Cardano founder Charles Hoskinson in response to the Mikomedia A1 Rollup going live on Algorand.

Algorand is a non-EVM chain with numerous more distinctive features, making it the ideal choice for one of the first rollups outside the Ethereum (ETH) ecosystem, according to the statement. The Layer-2 A1 rollup’s launch is significant for Cardano and Algorand since it will enable network connectivity between the two projects. Due to the distinct topologies of the two blockchain networks, this would not have been possible without the rollup.

According to AlgoExplorer, there were 17.3 million accounts on Algorand as of the end of the previous year. The total number of accounts on the network climbed to 23.5 million by 10 March 2022. These figures have only risen over the last few months, and Algorand seems to be becoming more well-liked. Now, many people are wondering whether it is worthwhile to invest in ALGO.

In 2021, the entire crypto market exploded, and ALGO suffered a similar fate. However, after a little while, it immediately went back to $1. ALGO saw some early signs of a robust comeback in February, reaching $ 1.67 before dropping once more. From February to April 2021, ALGO’s price fluctuated and occasionally fell, but it consistently stayed above $1 to provide a support level.

ALGO’s price rose up until 2022, when it fell to $0.90 on 14 February. Then, it gradually grew once more, largely because of LimeWire, an NFT marketplace for music and entertainment. The token hit $0.80 on 21 March 2022, before skyrocketing to $0.97 on 2 April.

FIFA announced its cooperation with Algorand towards the beginning of May, designating the network as FIFA’s official blockchain platform and announcing the availability of an official blockchain-powered wallet solution. The Q2 bull run, however, was short-lived. And, by mid-May, the market had crashed and ALGO was trading at $0.36.

In 2021, ALGO hit a low of $1.269 in the middle of December before soaring to $1.645 towards the beginning of the year. The altcoin maintained its upward trajectory, hitting $1.851 on 5 January 2022, before falling as the market entered a bear market, sometimes known as the “crypto winter.” ALGO was in decline until the middle of May. Since then, it has remained rather stable.

Given everything, buying ALGO must be a wise decision in the long run, right? Most analysts have positive predictions for ALGO. Additionally, the bulk of long-term ALGO price projections are upbeat. However, some are still not convinced about ALGO.

Why do these projections matter?

Algorand’s mechanism is what makes it so powerful. And, because it uses an open-source blockchain network, the history of its ALGO tokens is visible to everyone. Glitter Finance will soon integrate the Algorand DeFi ecosystem with Solana to improve interoperability in the blockchain. This will guarantee that traders who use Glitter can transfer their digital tokens from Algorand to the Layer 1 blockchain.

To increase the effectiveness of blockchain transactions, Algorand was created. While adding a new block to the Bitcoin blockchain takes about 10 minutes, Algorand can process a stunning 1,000,000 transactions each day, or roughly 1,000 per second. Therefore, compared to other networks, it can offer significantly lower transaction fees.

The acceptance of the ALGO has increased significantly this year. The alliance between FIFA and Algorand is one of the best. FIFA will use the Algorand Network as its official blockchain.

That’s not all as Algorand and EI Salvador have teamed up to create blockchain infrastructure.

Algorand and ICON have participated in a significant collaboration. Algorand will have a security partner with BTP, thanks to this integration. The Algorand network will become more vibrant and diverse as a result of this.

However, with the decline in market capitalization, ALGO’s Year-to-Date (YTD) volume decreased by -88%. It’s interesting to note that after losing 37% of its value in July, it was unable to increase the average volume. In fact, the altcoin is still 94% behind its all-time high (ATH). The only thing positive about ALGO’s terrible July performance was a momentary 14% hike in transaction volume. The same can be said about its performances in later months.

In this article, we’ll quickly review the current activity of the cryptocurrency with a focus on market cap and volume. In conclusion, predictions from the most well-known analysts and platforms will be summarized together with an analysis of the Fear & Greed Index to determine market mood.

ALGO’s price, volume, and everything in between

Source: TradingView

Algorand was trading at $0.2217 at press time, reflecting an increase of over 0.30% in the last week. The coin’s market capitalization increased by 0.27% over the same period and stood at $1,591,102,361 at press time.

Source: ALGO/USDT on TradingView

As expected, it was still over 83% away from its former ATH on the price charts.

With the bulls returning, ALGO has got the attention of investors. Despite some optimistic predictions, however, it should be pointed out that the ecosystem is still developing. As more applications are developed on the Algorand platform, the value might only increase. Maybe double or triple.

Algorand also has benefits in terms of processing transactions. Users will profit from its scalable operation and extremely efficient operation. The network processed at 1,162 TPS and has a block finality of 4.36 seconds.

Although it is difficult to provide 100% accurate technical analysis for ALGO, you can view the aggregated ALGO buy-and-sell rating in real-time for the chosen time frame using TradingView’s advanced technical analysis tool. Moving averages, oscillators, and pivot points are the three most prominent technical indicators used to present a summary for ALGO/USD.

Interestingly, at press time, the same was flashing a NEUTRAL signal.

Source: TradingView

Let’s now look at what well-known platforms and analysts have to say about where they believe ALGO will be in 2025 and 2030.

Algorand [ALGO] Price Prediction 2025

According to Changelly, cryptocurrency professionals have researched the prices of Algorand and their movements over the previous years. It is predicted that the least ALGO price in 2025 will be $0.639936 and the maximum will be $0.789921. The cost of trading will typically be $0.659934.

On the contrary, Telegaon predicts that Algorand may touch new highs in 2025. As per its price analysis, the maximum price of ALGO can reach $10.34 while its minimum price can go down to $4.98. The average price level of ALGO in 2025 can be around $6.17.

Even if there are 10 billion ALGO coins in circulation altogether, these assumptions appear excessive. To make Algorand more scalable, the issuance of these tokens has been spread out across ten years, with an end date of 2030.

The regulated nature of ALGO’s issuance is meant to protect it against excessive swings, dramatic (and unsustainable) bull runs, and collapses. This, even if it is anticipated that the aggregate supply of numerous cryptocurrencies would see high levels of volatility.

Now, because it does offer a useful service, it has already established a reputation in its market and has not reported any security breaches or other forms of compromises (economic, reputational, etc). Unlike many other projects of a similar nature, the token itself has utility and makes sense.


Is your portfolio green? Check out the ALGO profit calculator


Algorand [ALGO] Price Prediction 2030

Changelly predicts its maximum and minimum prices in 2030 to be $4.87 and $3.98. Its average trading price is expected to be $4.13.

As per Telegaon, Algorand can be among the top 10 projects by the market cap by 2030. Its average price can be around $71.50. Its price may oscillate between $69.02 and $83.62.

In the first quarter of 2022 alone, Algorand received investments from Genesis-Capital, Coinbase Ventures, Borderless Capital, ParaFi Capital, The Algorand Foundation, OKEx Blockdream Ventures, and Jump Crypto.

With more of these updates lined up going forward, one can only imagine what its impact will be on the wider ecosystem and ALGO’s value.

Conclusion

As a result of a short-term ascending parallel channel, a horizontal resistance zone, and a long-term descending resistance line, there is a convergence of resistance levels between $0.23 and $0.24. The price’s ability to move above or below this area could influence the direction of the trend going forward.

Silvio Micali, a professor at MIT and a cryptographer, invented Algorand, a proof-of-stake layer 1 blockchain, in 2017. The protocol is created as a network that focuses on payments, with an emphasis on scalability and transaction speed.

State-of-proof, a new interoperability standard, was recently incorporated into the protocol to facilitate cross-chain communication and boost transaction speed from 1,200 to 6,000 per second.

Algorand also has benefits in terms of processing transactions. Users will profit from its scalable operation and extremely efficient operation. The network is processing at 1,162 TPS and has a block finality of 4.36 seconds, according to the most recent information on the Nasdaq page. Stellar and this talent are practically the same.

Market experts had predicted that if the price of ALGO were to break down below the $0.27 area, it would also break down from an ascending support line in place since the beginning of the year. Therefore, it seemed that the upward movement has ended for some time now.

Indeed, a variety of elements, including announcements, new technological advancements made by Algorand projects, the larger crypto-ecosystem, legal status, and others, will influence potential growth in the future. For what it’s worth, the Fear & Greed Index was in the ‘neutral’ zone at press time.

Source: CFGI.io

Apart from this, if we want to talk about innovation, John Woods, CTO of the Algorand Foundation, provided an update on the project’s efforts to lead the development of quantum countermeasures for more secure cryptographic technology.

Woods focused in particular on the Falcon algorithm, which provides a means of avoiding the possible risk posed by quantum computers.

The top specialists in the field were invited by the American National Institute of Standards and Technology (NIST) in August 2016 to create cryptography algorithms resistant to quantum attacks. Falcon, created by Algorand developers Craig Gentry, Chris Peikert, and Vinod Vaikuntanathan, was one of the chosen algorithms. Trapdoors for Hard Lattices and New Cryptographic Constructions is the methodology on which it is built.

The blockchain will experience a 5x performance boost to 6,000 TPS and a 10% decrease in round times to 4s as a result of Algorand’s most recent significant protocol upgrade. The team intends to keep ahead of the adoption curve as demand for Algorand block space rises so that end users may concentrate on the UX of dApps rather than the underlying blockchains. As always, the underlying technology for Algorand ecosystem apps “simply works.”

Algorand has now decided to enter the world’s most populous country, India, with a project that aims to support the nation’s transformation from Web2 to Web3. AlgoBharat won’t have a registered entity in India but will see a dedicated team focus on real world utility for blockchain in India with relevance for the rest of the world.

Cardano (ADA) Price Prediction 2025-2030: Can long-term holders propel ADA

https://ambcrypto.com/cardano-ada-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

At press time, Cardano (ADA) was displaying indications of independence from the larger cryptocurrency market, underscoring its strength as a stand-alone commodity. This distance from other well-known cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) is evidence of ADA’s distinct price trajectory and long-lasting rise, which has lasted for more than a month.


Read Cardano’s (ADA) Price Prediction 2023-24


Notably, Cardano’s price has increased by over 10% in the last two days alone, further establishing it as a standout commodity in the cryptocurrency sector. This decoupling marks an important turning point in the development of the Cardano ecosystem and the increasing investor trust in its utility and long-term potential.

Cardano’s decoupling is not a transient occurrence, according to data from Santiment. In the last five months, large ADA holders with 10,000 or more coins have accumulated a total of 1.03 billion coins, representing a 3.3% increase in their holdings.

Source: TradingView

Cardano is betting on increased network development to overtake entities such as Ethereum. The Valentine (SECP) improvement, which promised to strengthen security and interoperability features on the blockchain, is one of the most recent upgrades predicted to trigger a price surge.

Other significant network operations include the continued expansion of the smart contracts’ capability, with the number of Plutus scripts approaching the 6,000 mark. Cardano blockchain transactions have also crossed the 61.4 million milestone.

Previously, the Vasil update was released, named after a notable Cardano community member. was designed to improve the ecosystem’s efficiency and block delay speeds. In terms of node compliance and exchange preparedness, the parent company’s website, Input Output Global, reported that over 75% of staking pool operators are running the required node versions.

Cardano developers will benefit from additional Plutus decentralized application (dApp) development support. The developers also stated in a blog that the majority of projects will be unaffected by the change.

The debut of Djed, the network’s stablecoin, is possibly the main factor driving Cardano’s ascent this month. Djed is an algorithmic stablecoin that is overcollateralized and pegged to the US Dollar. Additionally, it employs a rigorous verification procedure, making it one of the first stablecoins in the market. This indicates that it can be verified quantitatively and does not cause a bank’s audit of its collateral reserves.

Djed’s project’s creators disclosed that traders and investors will get extra benefits when they stake ADA to get Djed. This might drive up demand for ADA, which has led to advances over the previous several weeks.

Despite a challenging year for prices, Cardano has succeeded significantly in growing the number of new cryptocurrency wallets, adding more than 22,000 new staking addresses each month for 13 months.

Although the one-week gauges’ technical outlook is gloomy, traders may be more upbeat in the long run if they consider how the network is developing. In fact, over 20,000 new staking addresses have been added to Cardano on average monthly for more than a year.

Additionally, despite the collapse of FTX, Cardano’s wallet growth accelerated and added 30,000 wallets in a week. Additionally, over 300% growth was seen in the number of Cardano-based smart contracts, which for the first time topped 4,000.

According to CryptoCompare, the action increased the platform’s average daily active user base. The total number of Cardano’s daily active users increased by 15.6% last month to 75,800, the highest figure since May.

After multiple delays, Cardano’s Vasil mainnet upgrade, which promised to raise the network’s capacity and enhance the scalability of the blockchain, was released on 22 September. The same was first announced via a tweet by the Cardano Foundation.

On 27 September, Vasil’s full capabilities became available. Additionally, the Plutus V2 cost model was enabled by the Cardano blockchain, resulting in lower transaction costs for smart contracts.

It is anticipated that these modifications would increase ADA’s value. As of press time, however, this hasn’t happened. This is mostly because of the financial unpredictability around the world, according to Andy Lian, Chief Digital Advisor at the Mongolian Productivity Organization.

Interestingly, ADA has outperformed Bitcoin and Ethereum in terms of performance, having appreciated by 1100%. Cardano (ADA) is a relatively new coin. It is still a network with a lot of potential, though. Due to its modifications, the money transfer system is expanding without any problems in 2022, despite the crypto world crisis.

Cardano’s ADA reached its peak in the bull market in 2021. ADA’s price rose to a value of above $3 in September 2021. The price was forced to take losses once more. Before the significant bear market began, these losses occurred between September and November 2021.

The past few months have seen enormous losses for Cardano. Starting in September 2021, ADA lost a lot of its value. Prior to the same, the price had greatly increased as a result of the creation of smart contracts on the Cardano blockchain at the time. As a result, ADA’s price was able to rise significantly to $3.

Long favoured by long-term investors, ADA has suffered during much of 2022 and is down more than 80% from the year’s beginning when it traded at $2.28.

Even though ADA, along with the majority of the other crypto markets, had a gloomy September, important updates and strong token fundamentals suggest that it may be poised for a breakthrough in October. Historically, this has been a typically positive month for cryptocurrencies.

However, considering that important technical indicators like the RSI and MACD continue to be below 50, suggesting a bearish trend, it seems difficult for Cardano to hit $1 in the upcoming four weeks. Popular analyst Peter Brandt even asserted that ADA could decline to less than $0.25 in the near future.

There has been buzz surrounding contemporary blockchains like Solana and Avalanche. These pose a direct threat to Cardano and can be distinguished by extremely fast transaction speeds. Owing to the same, one can argue that Cardano needs to look over its shoulder.

Cardano’s Charles Hoskinson was recently in the news too, with the exec taking a shot at his favorite target – BTC maximalists.

Bitcoin [BTC] maximalist Bryan (@btc_bryan_21) took to Twitter to claim that Hoskinson could alter the number of ADA tokens as a result of purported centralization. Cardano’s maximum supply is set at 45 million ADA tokens.

However, the Twitter user claimed that since blockchain’s monetary policy is relatively changeable, nothing would stop the crypto-tycoon from modifying it.

Hoskinson outright denied the credibility of these allegations. He further called the Twitter user “stupid”. This is not the first time the Cardano founder has commented on BTC maximalists. In July 2022, he stated that BTC maximalists are “toxic” and “useless” people to engage with.

The aforementioned statement was made in response to the MicroStrategy CEO’s claims that ADA is unregistered security.

Since all ADA tokens now exist in the possession of their rightful owners, Cardano has consistently resisted the idea of destroying them. Hoskinson claims that this would be equivalent to stealing from the neighborhood.

Eight of the biggest cryptocurrency exchanges have modified their infrastructure, according to IOHK. Furthermore, the Cardano network’s development team is now prepared for the much-anticipated Vasil hard fork.

Furthermore, three of the top twelve exchanges for Cardano liquidity are ready for the upgrade. Several exchanges, including Gate.io, MEXC, Bitrue, OKx, Whitebit, BtcTurk, AscendEX, and Revuto, have improved their platforms.

Despite losses in recent months, Cardano’s price prediction should be fairly optimistic. Cardano should eventually become one of the most technologically advanced blockchains on the market thanks to its long-term, scientifically directed development. In the near future, Cardano might outperform Ethereum and other blockchains in every respect. What is the outlook for Cardano going forward?

Given everything, purchasing ADA must ultimately be prudent, right? The majority of analysts have optimistic forecasts for ADA. Furthermore, the majority of long-term ADA price forecasts are confident.

Why do these projections matter?

Cardano saw a substantial decline in 2022, falling from a high of $3.10 in September 2021 to a little over $0.47 in July 2022. However, only 75% of the total number of coins are now in use, thus there is still room for investors to amass coins.

Also, it seems like the conflict between Ethereum and Cardano may come down to an upgrade war. With the Goguen “Mary” update behind the latter and Vasil done too, it will be interesting to see what the impact of the same will be on the network and on ADA.

Over the past year, Cardano has established itself as one of the most active crypto-assets. As expected, it appears that cryptocurrency investors are optimistic as there has been an increase in the number of Cardano wallets. According to AdaStar, 121 new wallets have been created on average every hour since ADA’s record-breaking price run – A 98% hike.

Also, addresses holding between 10,000 and 10,000,000 ADAs have built on their accumulation tendencies, according to Santiment.

Since 27 July, these addresses have increased their portfolios by a total of 0.46% of ADA’s current supply. In just over 10 days, this amounts to an accumulation of ADA worth approximately $138 million.

3,105 Plutus-based smart contracts were implemented on the network, according to Cardano Blockchain Insights. Indeed, there has been an increase. In fact, in July, this number was 2,900. This demonstrates Cardano’s capability of enabling customers to create blockchain-related applications.

The bullish forecasts are in line with the generally bullish outlook on ADA that comes from network initiatives intended to make the asset more beneficial. The much-awaited Vasil hard fork is finally prepared for launch, according to Cardano’s Charles Hoskinson.

Supporters of the token are obsessed with price movement as it starts to recover. Despite slight gains, ADA is yet to meaningfully react to the upgrade. The coin has, however, profited from the recent two-month surge in the wider cryptocurrency market.

In this article, we’ll quickly review the current activity of the cryptocurrency with a focus on market cap and volume. In conclusion, predictions from the most well-known analysts and platforms will be summarized together.

ADA’s price, volume, and everything in between

The press time of ADA stood at $0.3878, with a market capitalization of $13,391,832,562. The price decreased by 1.63% last 24 hours, and was the seventh-largest cryptocurrency at the time of writing.

Source: ADA/USD, TradingView

The growth rate of FluidTokens, a DeFi lending platform that enables users to lend or borrow using CNFTs as collateral, was 54,000% over the previous month. However, the network did experience a considerable decline from its all-time high TVL of $326 million on 24 March.

By the end of the year, according to PLAYN creator Matt Lobel, ADA is likely to hike to $1.50. The management team’s quality-first philosophy, he claimed, will enable ADA “continue to develop and not encounter some of the quality challenges that other projects have,” although the rate at which it is expanding may be discouraging.

Martin Froehler, CEO of Morpher, concurred with this statement. He predicted that the value of ADA will reach $1 by the end of 2022 and stated simply that “slow and steady wins the race.” The CEO and Xo-founder of Router Protocol, Ramani Ramachandran, was not as convinced about the future applications of ADA, however.

The estimate for September was set by the community at $0.5891. A curious prediction made by the algorithm was that by the end of September, ADA will trade at $1.77. Needless to say, that didn’t happen.

And, if these predictions seem too much to you, then you must know that there are reasons why the sentiments are so bullish. According to the same Finder research stated earlier, one in five (20%) panelists believed that the Cardano hard fork, which aims to further decentralize the network and boost throughput, will have a favorable long-term effect on the altcoin’s price. Another 17% believed it will at least have a favorable effect shortly.

With Vasil past us now, it is safe to say that ADA is more likely to move at the behest of Bitcoin or other regulatory or macro-economic headwinds.

Source: Finder

The real value of the blockchain will increase as it becomes faster and more effective, and ADA’s value should increase along with it. Cardano may once again reach $1, according to the Motley Fool’s analysts, making it a solid investment at the moment.

The most cautious Cardano price forecasts anticipate roughly linear growth for ADA over the next five years. According to the Cardano projection, ADA will conclude 2022 at $2.74.

There’s good reason for the optimism behind Vasil too. In fact, according to developers,

“Vasil is the most significant Cardano update to date, bringing increased network capacity and lower cost transactions.”

Let’s now look at what well-known platforms and analysts have to say about where they believe ADA will be in 2025 and 2030.

Cardano ADA Price Prediction 2025

Now, even though most predictions are positive, some reasons force us to believe otherwise. Even though the much-awaited update of the blockchain is expected to take the price high, what if the update does not reach its promises and becomes a failure?

According to Changelly, the minimum ADA price is predicted to fall to $1.87 in 2025, while its maximum price will be $2.19. The cost of trading will typically be $1.93.

Cardano is forecasted by Finder’s team of FinTech experts to soar to $2.93 by 2025.

A cryptocurrency’s price typically reacts favourably to upgrades, as it did when Ethereum’s EIP-1559 was pushed and the asset’s value once again soared beyond the $ 3,000 mark. However, in the instance of Cardano, the assets’ value fell dramatically, by nearly 50% within one month of the launch of Alonzo.

However, even in a down market, Cardano strives to consistently improve its products. Investors should feel confident as a result because the project’s utility keeps growing. This distinguishes Cardano from several other “meme currencies.”

This seems to support a bullish Cardano prediction, which is why many analysts believe that ADA will be valuable in the long run. Building the utility now might serve as a launchpad for when the cryptocurrency markets heat up again, which would cause the price of ADA to soar dramatically, that it would even top its all-time high.


Are your ADA holdings flashing green? Check the profit calculator


And you have reasons to believe that. Until 2026, the Cardano blockchain project hopes to sign up as many as 50 banks and 10 Fortune 500 businesses, according to Frederik Gregaard, CEO of the Cardano Foundation.

Gregaard also discussed how he hopes to make it possible for banking institutions to use Cardano’s utility token in a formal presentation.

Cardano ADA Price Prediction 2030

Experts frequently advise to educate the public about cryptocurrencies before broad adoption takes place. And, the recent frenzy has probably done just that for many. As a result, many believe that ADA has a strong possibility of continuing to rise through 2030 and beyond.

It’s not “out of reach” for Cardano to surpass the “double-digit threshold,” according to Josh Enomoto, a former senior business analyst for Sony Electronics who has experience working with Fortune 500 businesses, who wrote about it in Nasdaq.com.

He first presented that argument in May 2021 and even forecast that the ADA price would reach $22 by the end of 2022 and perhaps $100 by the end of 2027. Both up and negative trends in altcoin prices are fairly powerful.

Finder’s panel has considered Cardano’s future, placing it in a good position. It believes ADA will hit $6.53 by 2030.

Furthermore, according to cryptocurrency exchange Kraken, the debut of the Minswap decentralized exchange (DEX) and growth in the SundaeSwap and MuesliSwap DEXs allowed Cardano’s total locked value (TVL) in decentralized finance (DeFi) apps to increase by more than 130% in March this year.

Eight years, though, are not without their ups and downs and rough patches. Inflation, recession, conflict, and the fear of an economic collapse are just a few of the hiccups.

Many in the cryptocurrency community are still optimistic about the chances of Cardano’s acceptance in the future.

In January, Ethereum’s Vitalik Buterin asked the community on Twitter which crypto, outside of ETH, they would prefer to see dominate transactions in 2035. ADA received 42% of the more than 600,000 votes, while Bitcoin received 38.4%.

 

Conclusion

A strong bullish sentiment among investors is also reflected in Cardano’s steady upward trajectory over the past month, which validates the project’s long-term goals and supports its ability to deliver on its promises.

The upward trend of ADA corresponds with the launch of Cardano’s latest network update on 17 March. The new node version, which supports bidirectional usage of block-producing nodes and relay nodes and may protect against errors or malicious behavior, is known as dynamic peer-to-peer (P2P) networking.

A more hawkish Fed tightening its views for the year has caused traders to price in an aggressive decline in the cryptocurrency’s price over the past few weeks. This coincides with broader crypto-market weakness as a result of strength in the US dollar, US rates, and weakness in equities.

Market anxieties about regulatory crackdowns in the U.S. and the recent collapse of crypto-friendly Silvergate Bank are just two examples of concerns related to cryptocurrencies

Whale transactions on Cardano (ADA) dramatically rose in February 2023. This is in stark contrast to the 300 daily transactions recorded in January 2023, with an average of 1,700 transactions per day valued at $100,000 or more. This increase in whale activity is good news for the cryptocurrency asset.

Until the ADA price moves over the long- and short-term barrier at $0.405, Cardano’s price will remain bearish. The RSI is leaning towards a negative trend because it is slightly below 50.

After a significant decline in 2022, analysts predict that ADA might eventually provide value and a strong return on investment. The volatility of cryptocurrencies, though, makes everything possible. Never put more money at risk than you can afford to lose.

Remember that within three months of its release, ADA surged to over $1 during the 2017 crypto bull run, which saw retail investor FOMO (fear of missing out) drive the price of Bitcoin to $20,000. The entire advance was subsequently totally retraced down to $0.02 during the 2018 bear market.

The number of purchasers on the one-day chart has increased as a result of the altcoin’s demand showing significant appreciation.

To reduce the likelihood of price volatility, the Cardano price must continue to rise. However, it is emphasized that there is always a potential for a price decline following a surge.

The price of Cardano is currently 88% lower than the record high it reached in September 2021. For the altcoin, a rise above its immediate resistance point will open a clean route.

Fundamental analysis (FA), such as a growth in network addresses and TVL, which indicate the growing mainstream adoption of a crypto-project, should be of greater concern to long-term investors.

In addition, MuesliSwap, the first Cardano-based decentralized exchange, announced the successful integration of Plutus V2, making it more effective and less expensive to operate. Another upgrade to Cardano is expected to be issued shortly, according to a cryptic tweet earlier this week from the project’s founder Charles Hoskinson.

Moreover, network activity increased to 97,959 because of the rush to purchase Cardano NFTs, a 75% month-over-month rise. Despite the fact that interest in the project has decreased by about 90% from its peak in 2021, the founder, Charles Hoskinson, has portrayed an unconcerned picture. By the time dApps created on the blockchain create their own value, he said, “2023, 2024,” billions in venture money will enter the economy.

Recently, Charles Hoskinson came under fire for saying that switching to contingent staking would help the cryptocurrency industry comply with regulatory requirements. This was in response to a crackdown on staking activities by American regulators.

The Fear and Greed Index of ADA stood at ‘neutral’ at press time.

Source: CFGI.io

Expect to see a break to the upside above $0.324 if markets attempt to force price action back up into a squeeze against any negative level in an effort to shake off the bearish attitude once more. If Jerome Powell and Christine Lagarde provide the markets with some encouraging messages before the year is over, look for $0.400 perhaps.

With the introduction of its first stablecoin, the Cardano network just accomplished a new feat. On the Cardano network, new stablecoins are being developed. The commercial division of Cardano, EMURGO, revealed earlier this month that its new USD-backed stablecoin USDA would be “the first completely fiat-backed, regulatory compliant stablecoin in the Cardano ecosystem.”

Ethereum (ETH) Price Prediction 2025-2030: ETH balances between bulls and bears

https://ambcrypto.com/ethereum-eth-price-prediction-27/

Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.

Ethereum (ETH), the token that powers the world’s leading smart contracts platform, is balancing precariously $1,800. Ethereum’s price rose dramatically in March, replicating Bitcoin’s performance, before hitting resistance at $1,850.


Read Price Prediction for Ethereum (ETH) 2023-24


ETH, the market’s second-largest token, has been trading between $1,766 and $1,844, indicating an overall bullish trend in the crypto market. The ETH token has recently seen a significant increase in demand as investors flock to the cryptocurrency due to its impressive returns and solid project fundamentals. If $1,800 support holds, ETH’s price could strengthen its bullish outlook over the weekend and move closer to the $2,000 mark.

As we approach the launch of the Shanghai update, this speculation is not improbable. The initial cost of Ethereum in 2022 was $3,722.59. At press time, ETH was trading at $1,827.92.

Source: TradingView

The unpredictability has also been caused by Ethereum’s long-awaited Shanghai upgrade, which is expected to become operational in a few weeks. A short-term sell-off event is expected to follow the update, which will allow stakers to withdraw their vested tokens from Ethereum’s proof-of-stake (PoS) smart contract.

The Ethereum community seems to be supportive of Coinbase’s recently revealed layer-2 network, Base, which has been called a “watershed moment” and a “huge confidence vote” for the blockchain network.

Base, a layer-2 network driven by Optimism and secured on Ethereum, seeks to eventually develop into a network for creating decentralized applications (dApps) on the blockchain. According to Brian Armstrong, CEO of Coinbase, the layer-2 network is now in its testnet phase.

The move is “a massive vote of confidence for Ethereum,” according to Ryan Sean Adams, host of the Bankless Show. This could set a precedent for cryptocurrency businesses and financial institutions to use Ethereum as their preferred settlement layer.

Recently, Vitalik Buterin, the creator of Ethereum, donated $150,000 in ETH to Syrian and Turkish victims. Additionally, the native coin of the Ethereum blockchain, ETH, experienced a significant price drop after whales sold 350,000 ETH tokens.

Parithosh Jayanthi, a developer for the Ethereum Foundation, declared that the “Zhejiang” public testnet will debut on 1 February. In order for validators to prepare for the anticipated modifications for the Shanghai hard fork, the implementation will permit staked Ether withdrawal in a test environment.

According to Diogo Mónica, co-founder and president of Anchorage Digital, a cryptocurrency bank with a market cap of over $3 billion, the Merge’s success transformed Ethereum from “a smart contract platform lagging behind” into “something that was doing things properly.” This is accurate: After the Merge, institutional interest in ETH staking rose, according to Matt Hougan, CIO at Bitwise Asset Management.

As ETH dominance has increased compared to other cryptocurrencies over the past few years, Ether’s bullish setup vs Bitcoin is apparent. Both Bitcoin and Ethereum have consolidated over the week as the broader crypto market continues to enjoy a bullish spell.

The price of Ethereum has lately undergone a significant correction, yet the whales have been purchasing at every decline. The fifth-largest accumulation day in a year was recorded last week as ETH whale activity reached a new level. As the FTX problem developed over this month of November, Ethereum whales have been building up. According to a Santiment report,

“Ethereum’s large key addresses have been growing in number since the #FTX debacle in early November. Pictured are the key moments where shark & whale addresses have accumulated & dumped. The number of 100 to 100k $ETH addresses is at a 20-month high.”

It almost reached the lows during the FTX collapse-driven meltdown of the cryptocurrency market, but it rapidly bounced back and was able to maintain above those levels as well. This strengthens the argument since Ethereum has typically outperformed Bitcoin.

Given everything, buying Ethereum must be a sound investment in the long term, right? Most experts have positive predictions for ETH. Furthermore, the bulk of long-term Ethereum price projections are upbeat.

Why are projections important?

Since Ethereum has seen phenomenal growth in recent years, it is not surprising that investors are placing significant bets on this cryptocurrency. Ethereum gained traction after the price of Bitcoin dropped in 2020, following a protracted period of stagnation in 2018 and 2019.

Interestingly, much of the altcoin market remained idle even after the halving. One of the few that picked up the momentum quickly is Ethereum. Ethereum had increased by 200% from its 2017 highs by the end of 2021.

Ethereum may experience such a spike thanks to several crucial factors. One of these is an upgrade to the Ethereum network, specifically a move to Ethereum 2.0. Another reason is the Ethereum tokenomics debate. With the switch to Ethereum 2.0, ether tokenomics will become even more deflationary. As a result, there won’t be as many tokens on the market to meet increasing demand. The outcome might increase Ethereum’s rising momentum in the future.

In this article, we’ll take a quick look at the cryptocurrency market’s recent performance, paying particular attention to market cap and volume. The most well-known analysts’ and platforms’ predictions will be summarized at the end, along with a look at the Fear & Greed Index to gauge market sentiment.

Ethereum’s price, volume, and everything in between

At press time, ETH was trading at $1819.41, with a market capitalization of $219,362,139,206.

Source: ETH/USD on TradingView

Even though it’s difficult to forecast the price of a volatile cryptocurrency, most experts concur that ETH may once again cross the $4,000 barrier in 2023. And, according to a recent forecast by Bloomberg intelligence analyst Mike McGlone, the price of Ethereum will conclude the year between $4,000 and $4,500.

Additionally, according to a report by Kaiko last year, ETH’s market share of trading volume will reach 50% parity with Bitcoin’s for the first time in 2023.

According to Kaiko, ETH outpaced Bitcoin in July last year as a result of significant inflows into the spot and derivative markets. Most exchanges have seen this surge, which can be an indication of returning investors. Additionally, a rise in average trade size is the exact reverse of what has been seen so far in 2022’s downturn.

In fact, a majority of cryptocurrency influencers are bullish on Ethereum and anticipate it to reach incredible highs.

While the broader Ethereum community was looking forward to the environment-friendly PoS update, a faction emerged in favor of a fork that will retain the energy-intensive PoW model.

The faction was mostly made up of miners who risk losing their investment in expensive mining equipment since the update would render their business model useless. Prominent Chinese miner Chandler Guo stated on Twitter that an ETHPoW is “coming soon”.

At the time, Binance clarified that in the event of a fork which creates a new token, the ETH ticker will be reserved for the Ethereum PoS chain, adding that “withdrawals for the forked token will be supported”. Stablecoin projects Tether and Circle both reiterated their exclusive support for the Ethereum PoS chain after the Merge.

TradingView expressed the same opinion at the time this article was written, and their technical analysis of the Ethereum price indicated that it was a “Buy” signal for ETH.

In fact, PwC’s Crypto-head Henri Arslanian claimed in an edition of First Mover that “Ethereum is the only show in town.” However, investors will need to witness increased demand and functioning for Ether’s price to keep climbing.

According to investor and creator of the cryptocurrency research and media organization Token Metrics Ian Balina, “I think Ethereum can go to $8,000.”

ETH Whale Activity

On 27 March, blockchain analytics firm Santiment revealed that almost 90% of Ethereum’s supply was stored in self-custody addresses. The last time the figure was so high was nearly eight years ago in 2015, shortly after the protocol’s native token saw the light of day. This was happening as users are withdrawing their assets from Binance that is facing CFTC’s investigation. 

This essential all-time low ratio of ETH on exchanges (10.31%) indicated confidence from hodlers.

Data from blockchain analytics firm Santiment shows ETH supply held by the top addresses on crypto exchanges has been on the rise since early June. On the other hand, ETH supply held by the top non-exchange addresses i.e. ETH held in hardware wallets, digital wallets etc. has been declining since early June. But why June? Because it was around that time that a tentative timeline for the Merge was disclosed to the community.

Also, Santiment had tweeted that over the past 3 months, whales had beefed up their exchange holdings by 78%.

So what does this mean? It means that Ethereum whales are moving their ETH onto exchanges. Top ETH hodlers are taking their supply out of cold storage and moving it to exchanges, most likely to facilitate a quick transaction if needed.

In the run up to the merge, a number of exchanges like Coinbase and Binance announced that they will be suspending all ETH and ERC-20 token deposits and withdrawals, in order to ensure a seamless transition.

It is possible that the whales moved their holdings onto exchanges to either preemptively dump their holdings in anticipation of a price slump after the Merge. The other possibility is them waiting till well after the Merge to act on ETH’s price action.

Let’s now look at what well-known platforms and analysts have to say about where they believe Ethereum will be in 2025 and 2030.

Ethereum Price Prediction 2025

According to Changelly, the least expected price of ETH in 2025 is $4,204.12, while the maximum possible price is $5,063.95. The average expected trading cost is $4,355.45.

DigitalCoinPrice is even more bullish in its assessment of ETH’s future performance. It predicts that ETH will trade as low as $5,380.03 and as high as $6,601.51, with its average price being $5,918.92.

However, you have to remember that the year is 2025, and a lot of these projections are based on Ethereum 2.0 launching and performing successfully. And by that, it means Ethereum has to solve its high-cost gas fees issues as well. Also, global regulatory and legislative frameworks have not yet consistently backed cryptocurrencies.

However, even though newer and more environmentally friendly technologies have been developed, analysts frequently claim that Ethereum’s “first mover advantage” has positioned it for long-term success, despite new competition. The price predictions seem conceivable because, in addition to its projected update, Ethereum is anticipated to be used more frequently than ever before in the development of DApps.


How many ETHs can you buy for $1?


Ethereum Price Prediction 2030

Changelly also argued that the price of ETH in 2030 has been estimated by cryptocurrency specialists after years of price monitoring. It will be traded for a minimum of $24,867.82 and a maximum of $30,483.23. So, on average, you can anticipate that in 2030, the price of ETH will be roughly $25,593.23.

DigitalCoinPrice is, however, not as bullish in its 2030 prediction for ETH. It predicts that the minimum and maximum prices of ETH in 2030 will be $17,805.72 and $19,116.90. On average, it will be traded at $18,729.30.

Long-term Ethereum price estimates can be a useful tool for analyzing the market and learning how key platforms anticipate that future developments like the Ethereum 2.0 upgrade will affect pricing.

Crypto-Rating, for instance, predicts that by 2030, Ethereum’s value will likely exceed $100,000.

Both Pantera Capital CEO Dan Morehead and deVEre Group founder Nigel Green also predict that during the next ten years, the price of ETH will hit $100,000.

Sounds like too much? Well, the functional capabilities of the network, such as interoperability, security, and transaction speed, will radically change as a result of Ethereum 2.0. Should these and other related reforms be successfully implemented, opinion on ETH will change from being slightly favorable to strongly bullish. This will provide Ethereum the chance to entirely rewrite the rules of the cryptocurrency game.

Conclusion

Another potential worry on investors’ concerns is the prospect of a price impact when validators are finally free to return their 32 ETH deposits following the conclusion of the Shapella hard fork. How many of the 16 million ETH that is currently staked on the Beacon Chain will be sold on the open market is unknown.

A compelling argument in favor of transitioning to liquid staking platforms is the capability to use liquid staking derivatives on other decentralized finance networks without sacrificing staking reward.

While some of these investors have invested in rival tokens in order to profit, others are doing it out of precaution in order to hedge their portfolios. This has been corroborated by the volatility witnessed in metrics like daily active users and price action of so-called Ethereum killers like Avalanche, Solana, Cardano etc. in the run up to the merge event which is less than a month away.

The majority of investors anticipated that Ethereum would bottom out at $3500 early this year, but the currency moved lower to show them incorrect. In fact, ETH briefly fell below the terrifying $1000 threshold.

However, the coin has always rebounded when it appeared that it was poised to strike the target once more, restoring confidence in its future. This includes the incident in November 2022 when an FTX hacker allegedly dumped over 30,000 ETH. Hope is offered by the token’s persistence in the wake of the FTX bankruptcy and the protracted crypto cold.

There is broad hope that the first smart contract blockchain will survive this period of trials, despite Ethereum’s rivalries and other factors contributing to its continuous instability.

As far as the Merge is concerned, it is being hailed as a major success story by the Ethereum community. Buterin cited a research study by an Ethereum researcher, Justin Drake, that suggests that the “merge will reduce worldwide electricity consumption by 0.2%.”

It also reduces the time to mine one block of ETH from 13 seconds to 12 seconds. The Merge marks 55% completion of Ethereum’s journey toward greater scalability and sustainability.

The likelihood that Ether will experience a price surge of 50% in the future is increased by its superior interim fundamentals to those of Bitcoin. To begin with, Ether’s annual supply rate plummeted in October 2022, in part because of a fee-burning mechanism known as EIP-1559 that takes a certain amount of ETH out of perpetual circulation anytime an on-chain transaction takes place.

Concerns about censorship on the Ethereum ecosystem have also emerged post the Merge. Around half of the Ethereum blocks are Office of Foreign Assets Control (OFAC)-compliant as MEV-Boost got implemented. As Ethereum has upgraded to a PoS consensus, MEV-Boost has been enabled to a more representative distribution of block proposers, rather than a small group of miners under PoW. This development raises a concern about censorship under the force of OFAC.

It is interesting to note that while many eagerly waited for Ethereum’s Merge and beefed up their holdings in anticipation of a price surge, there was a group of investors who weren’t confident in the Merge’s successful rollout. These investors were betting on a glitch in the rollout process, hoping that the update runs into trouble. While some of these investors have started investing in rival tokens in order to profit, others are doing it out of precaution in order to hedge their portfolios. This was corroborated by the volatility witnessed in metrics like daily active users and price action of so-called Ethereum killers like Avalanche, Solana, Cardano etc. in the run up to the Merge.

The majority of Ethereum price forecasts indicate that ETH can anticipate tremendous growth over the ensuing years.

As per Santiment, Ethereum’s active addresses have sunk to 4-month lows with weak hands continuing to drop post-Merge and disinterest at a high as prices have stagnated.

What about the flippening then? Is it possible that the altcoin might pass Bitcoin on the charts in the future? Well, that is possible. In fact, according to BlockchainCenter, ETH has already surpassed BTC on a few key metrics.

Consider Transaction Counts and Total Transaction Fees, for instance. On both counts, ETH is ahead of BTC.

Source: Blockchain Center

On the contrary, the traditional definition of a ‘flippening’ relates to the market cap of cryptos flipping.

However, remember that a lot can change over these years, especially in a highly volatile market like cryptocurrency. Leading analysts’ projections may vary, but even the most conservative one’s might cause respectable profits for anyone choosing to invest in Ethereum. As far as the F&G Index is concerned, ETH shows ‘neutral’ market sentiment for the moment.

Source: CFGI.io

Here’s What Could Signal the Next Bitcoin Leg up Amid ‘Massive’ BTC Transactions, According to Crypto Analytics Firm

https://dailyhodl.com/2023/04/02/heres-what-could-signal-the-next-bitcoin-leg-up-amid-massive-btc-transactions-according-to-crypto-analytics-firm/

A prominent crypto analytics platform says one metric could signal the next big rally for Bitcoin (BTC) amid a flurry of massive whale transactions involving the king crypto.

According to market intelligence firm Santiment, traders should keep a close watch on the market caps of stablecoins such as Tether (USDT), USD Coin (USD Coin), Binance USD (BUSD), Pax Dollar (USPD), and Dai (DAI).

Santiment says that the combined buying power of the top five stablecoins stands at $126.31 billion, which is more than double its value in March 2021. Per the analytics firm, Bitcoin’s sustained ascent could hinge on the growth of the top five stablecoins by market cap.

“As a great Q1 comes to an end for the recovering crypto markets, the combined buying power for USDT, USDC, BUSD, DAI, and USDP is $126.3 billion. The decline has tapered off this week. A rise would signal a major increased probability of Bitcoin rising.”

Source: Santiment/Twitter

Santiment’s insights on the stablecoin market comes as the analytics firm recently issued an alert to Bitcoin holders. Last week, the analytics firm revealed that the five largest Bitcoin transactions in 2023 all happened in March, suggesting that large BTC entities may be starting to take profits.

“Based on the very large transactions going on in March, as well as the 10 – 10,000 BTC address tier continuing to slide down (by percentage) and taper off (by total addresses), it does look like there are some legitimate caution flags to be wary of if you’re hoping to see Bitcoin surge to $35,000 and beyond…

The five largest transactions of 2023 thus far have all happened in March, and this seems to be a result of profit taking and fears of a top after the ~+70% rebound for BTC.”

Bitcoin is trading for $28,502 at time of writing.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Here’s What Could Signal the Next Bitcoin Leg up Amid ‘Massive’ BTC Transactions, According to Crypto Analytics Firm appeared first on The Daily Hodl.

Court Yet Again Rejects Arrest Warrant For Terraform Co-founder Daniel Shin

https://thenewscrypto.com/court-yet-again-rejects-arrest-warrant-for-terraform-co-founder-daniel-shin/

  • Shin had his arrest warrant dismissed for a second time.
  • South Korean authorities have accused Daniel Shin of defrauding investors.

The Prosecutor’s Office had asked the Seoul Southern District Court to detain Shin Hyun-seung, a co-founder of the defunct firm Terraform Labs, in pre-trial custody, but the court denied the motion. According to reports, he was instrumental in the downfall of the firm’s crypto assets, including Luna and the stablecoin TerraUSD.

The court first denied the prosecution’s request for an arrest warrant against Shin back in November. With the arrest of Do Kwon (Kwon Do-Hyung), another Terraform founder, last week, the warrant was resubmitted.

No Flight Risk or Evidence Destroyer

Local media agencies said on Thursday that Shin had his arrest warrant dismissed for a second time. This is because he is not considered a flight risk or evidence destroyer. Shin is being looked into for allegedly unlawful earnings earned just before the market fell last year.

Kwon was stopped in Montenegro on his way to Dubai airport. The process of obtaining his extradition by South Korean authorities is anticipated to be lengthy. The justice minister of Montenegro and his counsel have confirmed that he will be tried there for using a fraudulent Costa Rican passport.

South Korean authorities have accused Daniel Shin of defrauding investors and breaking information and capital market regulations. He is accused of hoarding pre-issued Luna tokens. Making 140 billion won (almost $108 million) from the token sales. And neglecting to warn investors about the potential for a collapse in the value of both cryptocurrencies.

Shin is also accused of exploiting the resources of Chai Corp., the financial company he founded and led, to spread the Luna token. He claims he had nothing to do with Terraform Labs after departing in March 2020 and starting Chai Company, which he says he did.

Binance, ennemi public n°1 aux USA ? – Crypto Focus

https://journalducoin.com/exchanges/binance-ennemi-public-numero-1-usa-crypto-focus/

Binance attaqué de toutes parts ? – Pas le temps de souffler pour Changpeng Zhao (CZ), patron du premier exchange crypto mondial dont nous avons réalisé le Crypto Portrait, l’année dernière. Pris en étau entre les deux régulateurs US, la SEC (Securities Exchange Commission) et la CFTC (Commodity Futures Trading Commission), il se pourrait que Binance finisse par ne plus savoir où donner de la tête. Analyse en détail de l’affaire !

>> 10% de réduction sur vos frais de trading ? Inscrivez-vous sur Binance (lien commercial) <<

Binance pris dans l’étau de la régulation

Le roi des cryptos attaqué de toutes parts par le régulateur US

Par conviction profonde ou simple motivation pécuniaire, une chose est sûre. Depuis ce début d’année, le régulateur américain s’en donne à cœur joie. Il semblerait qu’il n’ait désormais qu’un seul objectif en tête : mitrailler le secteur crypto à grand renfort de sanctions réglementaires.

La SEC a commencé les hostilités en février dernier, en s’attaquant au BUSD, un stablecoin émis par l’entreprise Paxos dans le cadre d’un partenariat avec Binance. De fait, l’interdiction pure et simple de son émission a condamné à la disparition ledit stablecoin. Seul cause du litige ou non, Binance a depuis pris ses distances avec Paxos. Et cette dernière est désormais prête à s’engager dans un combat vigoureux contre la SEC afin de faire valoir ses droits.

Régulation, quand la CFTC s’y met à son tour…

Comme si cela ne suffisait pas, voici désormais que la CFTC met son grain de sel dans l’histoire, et pas qu’un peu. Tout a commencé ce début de semaine après que la CFTC ait engagé des poursuites judiciaires à l’encontre de Binance et de son CEO, CZ, selon un rapport de Bloomberg. Cette poursuite est le dénouement d’une enquête commencée en 2021 par le régulateur. Les faits reprochés sont multiples :

  1. Binance ne se serait pas convenablement enregistré auprès de la CFTC avant de proposer à l’achat des cryptos aux citoyens américains, notamment du Bitcoin (BTC), de l’Ether (ETH) et du Litecoin (LTC), et ce, depuis 2019 ;
  2. Binance aurait également dissimulé la localisation exacte de son ou ses sièges sociaux afin de se préserver le plus longtemps possible de la loi US, et ce, malgré le lancement de Binance US dès 2019 ;
  3. Binance aurait également violé les exigences réglementaires du Commodities Exchange Act (CEA) et n’aurait pas implémenté les exigences de contrôle AML (Anti Money Laundering) et de KYC (Know Your Customer) nécessaires ;
  4. L’exchange aurait également tradé sur sa propre plateforme avec près de 300 adresses détenues de manière directe ou indirecte par CZ.

En tout, ce ne sont pas moins de sept chefs d’accusation qui se sont donc abattus ce début de semaine sur CZ et son exchange.

Binance sous le feu nourri de la CFTC

… Binance réplique au quart de tour

La riposte de CZ n’a pas tardé à venir. Le patron de Binance a nié en bloc les faits reprochés. Il faut dire que depuis deux ans, Binance redouble d’efforts pour collaborer avec les autorités, CFTC incluse. CZ voit donc cette nouvelle attaque comme un couteau planté dans le dos. Changpeng Zhao explique que plus de 750 personnes chez Binance travaillent chaque jour au respect des réglementations des divers pays au sein desquels la plateforme offre ses services. D’ailleurs, Binance n’hésite pas à accéder à chacune des requêtes de la justice américaine. Celle-ci a de cette manière pu récupérer 285 millions de dollars de fonds liées à des activités illicites.

CZ martèle qu’en aucun cas son entreprise ne manipule le marché. Des mouvements en cryptos ont bien lieu en effet. Toutefois, il ne s’agirait que de simples conversions de cryptos en monnaies fiat (euro, dollar, …) afin de couvrir les frais de fonctionnement quotidiens de la plateforme ; les cryptos étant la principale source de revenus. Bref, selon lui, Binance serait blanc comme neige dans cette histoire.

Le flou sur les débuts de Binance…

Il est vrai que le développement de l’exchange Binance, fulgurant et mondial, s’est fait à l’époque en profitant de l’absence de réglementation. Cela lui a permis de prendre une avance considérable sur sa concurrence. Une concurrence s’astreignant alors de manière plus poussée aux règles de conformité. Une stratégie gagnante, étant donné la position dominante que l’exchange détient aujourd’hui. Sauf que le retour de bâton de la régulation est désormais bien présent.

Toutefois, Binance devrait désormais avoir les épaules assez larges pour encaisser le choc. Mais ce n’est pas obligatoirement le cas de nos petites startups européennes et françaises en direction desquelles la vague réglementaire MiCA (Market in Crypto Assets) approche à grands pas. Toutefois, ceci est un autre sujet.

… en écho à celui qui règne du côté des régulateurs US

Le hic, c’est que l’on en revient toujours au même problème de flou juridique aux USA. La CFTC ne peut sanctionner Binance que si les cryptos sont bel et bien catégorisées comme des matières premières. Tout comme la SEC n’a de prise que sur les actifs classés comme actions. Or, pour le moment, les cryptos ne sont ni l’une ni l’autre. Elle ne peut donc répondre en même temps aux exigences des deux réglementations.

Alors, les cryptos, ça se mange à quelle sauce ? Actions ou matières premières ? Car le moins que l’on puisse dire, c’est qu’aux USA, ce n’est ni la SEC ni la CFTC qui règne en maître sur les cryptos, mais bel et bien la mésentente et le flou. Un flou juridique qui fait tourner en bourrique les entreprises cryptos qui tente de se conformer à la réglementation. D’un côté, Binance se fait attaquer par la SEC qui qualifie les crypto de securities (actions). De l’autre, la CFTC double la mise en maintenant mordicus que celles sont des commodities (matières premières). Et les deux corps réglementaires se tirent la bourre pour savoir lequel d’entre eux a raison. Difficile d’y voir clair dans une telle situation.

Binance n’est pas le bienvenu aux US

Binance US n’a pas Voyager bien loin

Vous pensiez que c’était tout ? Oh que non ! Les ennuis s’additionnent pour Binance, car le régulateur US est loin d’en avoir fini. En février dernier, le rachat pour 1 milliard de dollars de Voyager par Binance US a été bloqué par la SEC. Cette dernière avait avancé l’absence d’enregistrement de l’exchange et des enquêtes judiciaires en cours concernant chacune des deux entités concernées comme cause. En cette fin de mois de mars, le non catégorique de la SEC est désormais acté par le Département de Justice (DoJ) américain. Le rachat est donc reporté aux calendes grecques. Et le sentiment du régulateur américain vis-à-vis de Binance est on ne peut plus clair : il s’en méfie comme de la peste.

Est-ce que ces réticences sont seulement le fait de l’absence d’enregistrement de Binance auprès de la SEC à ses débuts ? Un enregistrement pour des cryptos qui, comme précisé un peu plus tôt, ne sont pourtant pas encore légalement considérées comme des actions et errent dans un flou artistique réglementaire. Ou est-ce que le mal est plus profond ? Le régulateur US soupçonnerait-il Binance d’être de connivence avec l’ennemi numéro 1 des USA, la Chine ?

Binance est suspecté d'entretenir des connexions avec la Chine, ennemi numéro 1 des USA. Ce qui pourrait expliquer la virulence des attaques réglementaires à son encontre.
Binance, un espion à la solde de la République Populaire de Chine ?

Binance 007, l’espion chinois ?

De nos jours, le monde tend à se diviser en deux : un bloc de l’Ouest (les USA et l’Europe) et un bloc de l’Est (les BRICS). Dans cette nouvelle Guerre Froide, les nations vont probablement être obligées, un jour ou l’autre, de choisir un camp. Les pays tout comme les sociétés. Sauf que dans le cas de Binance, il semblerait bien que l’entreprise se trouve une position d’entre-deux qui ne convienne à personne. Quel camp choisira-t-elle ? Le camp des profits, selon toute vraisemblance. Mais y a-t-il plus à creuser que ce que l’entreprise veut bien nous montrer en façade ?

Bien que le minage de Bitcoin et le trading de cryptos soient interdits en Chine, la population chinoise reste intéressée par le domaine, et des liens persistent. Des employés de Binance sont même accusés d’avoir aidé certains d’entre eux à s’enregistrer sur la plateforme à l’aide de faux KYC. Mais ce n’est pas tout. Selon le Financial Times, Binance continuerait d’entretenir des liens avec la Chine, pays que l’exchange a pourtant quitté en 2017. Or, s’il y a bien un adversaire duquel les USA se méfient, c’est le gouvernement chinois. L’idée qu’il puisse, à travers Binance, acquérir des informations cruciales sur les USA les rebute au plus haut point.

Et c’est peut-être l’une des motivations qui a conduit les régulateurs à mettre un grand stop au rachat de Voyager par Binance US. Cette même raison pour laquelle la SEC et la CFTC déversent leur flot ininterrompu de sanctions à l’encontre de l’exchange.

C’est un chemin semé d’embûches qui se dressent face à l’adoption crypto, aux Etats-Unis comme en Europe et en France. Une situation de plus en plus complexe à l’heure où les influenceurs et médias cryptos sont matraqués par une régulation aussi excessive qu’injuste. Binance en fait clairement les frais, pris entre le marteau et l’enclume : la SEC et la CFTC. Espérons que Binance ne se révèle pas être un géant au pied d’argile et que son talon d’Achille ne soit pas justement cette puissante et oppressante réglementation.

Binance a désormais atteint une taille critique suffisante pour être en mesure de rendre coup sur coup dans ce genre d’escarmouche sur fonds de conquête de Bitcoin à l’échelle internationale. Pour vous inscrire sur l’exchange et vous faire votre propre opinion, c’est par ici. Vous économiserez 10 % sur vos frais de trading en suivant ce lien (lien commercial).

L’article Binance, ennemi public n°1 aux USA ? – Crypto Focus est apparu en premier sur Journal du Coin.

Weekly Virtual Currency News | Micro Strategy buys more BTC, etc., attracting attention to public comment responses from the Financial Services Agency

https://ourbitcoinnews.com/weekly-virtual-currency-news-micro-strategy-buys-more-btc-etc-attracting-attention-to-public-comment-responses-from-the-financial-services-agency/

news of the week

We will deliver the news mainly for one week (3/25-3/31).

This week, the most widely read news was that the Financial Services Agency responded to public comments asking whether NFTs (non-fungible tokens) are eligible for crypto assets (virtual currencies).

Regarding the market, the report on the 28th, which summarizes the impact of the US Commodity Futures Trading Commission (CFTC)’s lawsuit on Binance and the reversal of XRP, is attracting attention.

In addition, an article that reported that the US business intelligence company “MicroStrategy” increased its purchase of Bitcoin (BTC) also attracted a lot of attention.


table of contents
  1. This week’s news ranking
  2. Market news ranking
  3. Virtual Currency/Blockchain Industry News

This week’s news ranking

1st place: Financial Services Agency responds to public comments asking whether NFTs are eligible for crypto assets (3/25)

On the 24th, the Financial Services Agency (FSA) released responses to the public comments it solicited in December last year regarding its views on the eligibility of various tokens as crypto assets and how to supervise acquired crypto asset exchange companies. (the article ishere)

2nd place: US Micro Strategy, additional purchase of about 20 billion yen worth of Bitcoin (3/28)

MicroStrategy announced on the 27th that it had purchased $150 million worth of Bitcoin. The company’s holdings of Bitcoin increased to 138,955 BTC. (the article ishere)

3rd place: US CFTC sues Binance and Mr. CZ for alleged violation of US law (3/28)

The US CFTC announced on the 27th that it has filed a lawsuit against Binance and its CEO Changpong Zhao (CZ). The company has taken issue with the provision of derivative trading services in the United States without intentionally registering with the CFTC. (the article ishere)

Market news ranking

1st place: CFTC’s Binance lawsuit dominates cryptocurrency selling, Ripple trial speculation XRP goes backwards (3/28)

BNB fell 5.1% from the previous day as selling dominated the cryptocurrency market after the CFTC filed a lawsuit against Binance. Due to the speculation of the Ripple trial, XRP rose by 7.5% from the previous day (26.9% from the previous month), a retrograde high. (the article ishere)

2nd place: Professional analysis of Bitcoin derivatives market before major SQ | Contribution: Virtual NISHI (3/30)

A financial professional analyzes the Bitcoin derivatives market, which plunged temporarily in response to the CFTC lawsuit against Binance before the major SQ. “Virtual NISHI”, a crypto analyst at the crypto asset exchange SBI VC Trade, explained the market trends. (the article ishere)

3rd place: The monthly trading volume of Ethereum futures is at the highest level since May last year as Bitcoin struggles in the latest high price range (3/31)

Investor sentiment improved on the day, as the financial instability surrounding the bank failures that had shaken the market receded thanks to prompt responses by the financial authorities in Europe and the United States. Since the beginning of the year, bitcoin has been trending at the latest highs while increasing its upper price. (the article ishere)

Virtual Currency/Blockchain Industry News

Disney dismantles Metaverse division as part of business restructuring = report (3/29)

It turned out that Walt Disney in the United States dismantled the department promoting the Metaverse (virtual space) concept. We are dismantling the Metaverse division as part of a broader restructuring. (the article ishere)

Mitsubishi UFJ Trust and Banking Co., Ltd. started technical collaboration in preparation for interoperability of domestically issued stablecoins (March 28)

Mitsubishi UFJ Trust and Banking Corporation has started a technical partnership with Datachain Co., Ltd. and Soramitsu Co., Ltd. on the 28th to realize smooth mutual transfers and exchanges between various stablecoins scheduled to be issued in Japan. announced. (the article ishere)

Elon Musk and AI researchers request a temporary suspension of next-generation AI model development (3/30)

On the 29th, an online signature campaign was launched asking all research institutes to suspend the development of a next-generation AI system that is more powerful than the AI ​​language model “GPT-4” released by OpenAI in March. More than 1,300 signatures have been collected, including Tesla founder Elon Musk and Apple co-founder Steve Wozniak (at the time of writing). (the article ishere)

Bank of Japan Governor Kuroda mentions a payment system for “Shin individuals” in his speech at Finsome 2023 (March 29)

In a speech on the 28th, Bank of Japan Governor Haruhiko Kuroda referred to a central bank-issued digital currency (CBDC), saying, “We have to realize it in the future, and I think it will.” He expressed his opinion. (the article ishere)

U.S. SEC Chairman Gensler mentions virtual currency in congressional testimony and also answers questions on securities law (3/30)

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testified before the U.S. House Appropriations Subcommittee on the 29th, and also mentioned cryptocurrencies. He also spoke about the application of securities laws. (the article ishere)

Yuzo Kano to return to president of virtual currency exchange bitFlyer (3/31)

bitFlyer Holdings, which operates a major crypto asset exchange company in Japan, announced that its founder and major shareholder, Yuzo Kano, will return to the post of CEO. The election of a new director was resolved at the shareholders’ meeting on the 30th. (the article ishere)

Binance may have misrepresented China base = report (3/30)

For several years, Binance has reportedly been more active in China than the public has reported. CZ and other company executives instructed employees to hide the existence of some of the company’s offices in China, according to internal documents. (the article ishere)

The post Weekly Virtual Currency News | Micro Strategy buys more BTC, etc., attracting attention to public comment responses from the Financial Services Agency appeared first on Our Bitcoin News.

Hyperinflation, then Bitcoin? / How badly will the Binance lawsuit affect crypto assets?[10 carefully selected books you want to read on Sunday]| coindesk JAPAN | coin desk Japan

https://ourbitcoinnews.com/hyperinflation-then-bitcoin-how-badly-will-the-binance-lawsuit-affect-crypto-assets10-carefully-selected-books-you-want-to-read-on-sunday-coindesk-japan-coin-desk-japan/

It’s surprising that the CFTC was the first U.S. regulator to sue Binance — picking 10 books to read on Sunday from columns and interviews published this week.

Hyperinflation, then Bitcoin?

Twitter recently announced that 1 Bitcoin (BTC) could reach 100 in just 90 days (by June 15, 2023) due to inflation in the United States, according to former Coinbase Chief Technology Officer Balaji Srinivasan. It was excited to accept a bet from James Medlock that it would be worth $1.3 million. …read more

“Crypto asset winter” ends long-term ownership of mining companies

Since the bull market, Hut 8 Mining, which has taken a long-term holding strategy, finally changed its strategy on March 7th and invested 188 bitcoins in February to use as daily working capital. BTC) has been sold. The company was the last fully owned mining company to go public. …read more

Binance Lawsuit, How Harmful Will It Hurt Crypto Assets?

Cryptocurrency exchange Binance and CEO Changpeng Zhao were caught off-guard by a civil lawsuit decision by the U.S. Commodity Futures Trading Commission (CFTC) on Wednesday.

After avoiding the establishment of a permanent headquarters for many years, Binance has worked with regulators in the United States and other countries and regions to operate in a compliant manner in the more than 100 countries and territories it serves. I’ve been having conversations. …read more

US Banks Leave Crypto Assets, Opportunity for Europe

Europe may be able to turn this crisis into an opportunity as American crypto firms desperately seek alternatives to Silvergate and Signature banks.

There was a time when Europe struggled to catch up to the US in cryptocurrency innovation. Since the birth of crypto assets, stablecoins, trading volume and adoption, the United States has been considered the center. …read more

Cega, which deals with structured bonds in DeFi, has raised a total of 1.3 billion yen ──Future developments and the future of DeFi from the CEO

Cega Genesis Corporation (Cega), which develops structured bonds for crypto assets in DeFi (decentralized finance), has announced that it has raised additional funds of approximately 700 million yen with Dragonfly Capital Partners as underwriters. The cumulative amount raised in the seed round has reached about 1.3 billion yen.

As a pioneer of crypto-asset structured bonds in DeFi, Cega launched services on the Solana blockchain in June 2022. …read more

SEC’s ad hoc approach exposes its weaknesses

The US Securities and Exchange Commission (SEC) launched a triple attack on March 22nd. Coinbase, America’s largest cryptocurrency exchange, said it has received a warning from the SEC that it intends to sue for violations related to its staking service and possibly its token listing.

Separately, the SEC has sued Justin Sun, one of the richest and most influential entrepreneurs in the cryptocurrency industry. …read more

Bitcoin wins banking crisis, but illiquidity blocks path for USD hedging

If Bitcoin (BTC) had a marketing team, the last month could not have been better. Confidence in Western banks has been devastated and people are frantically looking for alternatives to protect their assets. It’s time for Bitcoin.

Bitcoin is truly decentralized money that is not controlled by anyone and was created for times like these. …read more

To make use of movements of large investors in investment decisions

Who is the smartest in the cryptocurrency industry? How are those people spending their capital?

“Smart money”, though not a precise definition, is a term that describes a class of investors and traders, often those who have an advantage in trading for the simple reason that they have access to abundant capital. Point. …read more

Crypto Assets, The Solution, Not The Cause Of Bank Runs

The US Federal Deposit Insurance Corporation (FDIC) announced late on March 26 that the failed Silicon Valley Bank was to be acquired by First Citizens Bank.

Bank runs and bankruptcies occurred not only at Silicon Valley Bank, but also at Silvergate Bank and Signature Bank, and concerns about bank runs at First Republic Bank spread. …read more

Crypto Assets Rise Significantly in 1st Quarter – Impact of Tighter Regulation and Damaged Reputation?

The start of 2023 has been an eventful one, with a year’s worth of news packed into just three months. Year-to-date returns for crypto assets were likewise much larger than in a typical quarter. …read more

|Text and editing: coindesk JAPAN editorial department
|Image: Shutterstock

The post Hyperinflation, then Bitcoin? / How badly will the Binance lawsuit affect crypto assets?[10 carefully selected books you want to read on Sunday]| coindesk JAPAN | coin desk Japan appeared first on Our Bitcoin News.

Terra co-founder arrested, 4 questions that still remain[Column]| coindesk JAPAN | Coindesk Japan

https://ourbitcoinnews.com/terra-co-founder-arrested-4-questions-that-still-remaincolumn-coindesk-japan-coindesk-japan/

The hardest thing about writing about cryptocurrencies is that everything happens all the time, and it’s a mixture of importance, interest, and drama. As evidence of this, the past two weeks have been dominated by news of banking crises and tightening regulations, and there was no time to savor the big news that Terra blockchain co-founder Do Kwon was arrested in Montenegro.

The collapse of Terra in May was a direct catalyst for the crypto slump in 2022. In particular, it forced cryptocurrency lending firm Celsius Network and hedge fund Three Arrows Capital into bankruptcy.

The US Securities and Exchange Commission (SEC) complaint contained a startling revelation about Kwon’s conduct. It is hoped that this arrest will bring more facts to light.

There are still many questions about Mr. Kwon that need answers.

Why are you in Serbia?

This is what is currently most interesting about Mr. Kwon’s arrest. South Korean police reported in December that Kwon had fled to Serbia. He was finally arrested in neighboring Montenegro. Both are very beautiful countries and are high on my personal list of places to visit, but I suspect Kwon had deeper motives.

The choice of location may have been partly due to geography. Kwon and Terraform Labs chief financial officer Han Chang-Joon were reportedly arrested as they boarded a private jet to travel to Dubai. Dubai is a popular retreat for wealthy fugitives, and the Balkans can be said to be on the route from Singapore to Dubai.

But there is one more thing that I can guess as a reason. In a civil complaint in February, the SEC said Kwon was able to use a Swiss bank to sell about $100 million worth of bitcoin he allegedly stole from his own project. It is said that Kwon may have turned to criminal gangs for that reason, or to evade police, making the Balkans a hotbed of mafia-linked cryptocurrency fraud. This may also be one of the reasons Kwon fled to Serbia.

who will sue?

Hours after Kwon was arrested in Montenegro, US prosecutors filed criminal charges against him. This means that preparations were made for it. It is now possible to demand the repatriation of Mr. Kwon to the United States.

According to former SEC official Lisa Brancaga, Kwon targeted American investors, so the United States can claim legal authority. Meanwhile, Kwon has also been accused of fraud in his home country of South Korea.

In other words, the US and South Korea will have to negotiate or compete with each other over who can pursue Mr. Kwon first. But first, he’ll have to wait for a trial in Montenegro for using a fake passport.

From a moral standpoint alone, South Korea may be right. While Terra was targeting Americans, the victims appear to be far more Korean.

Given that Kwon had connections to the South Korean elite through Terra co-founder Daniel Shin, who is also a South Korean, a more thorough pursuit could be made in South Korea. much more sexual. But US prosecutors may use that as a reason to do so in the US. It can be argued that Kwon’s connections with South Korean elites could allow such people to interfere in the trial.

Why were investors so easily duped?

This question may not be answered in Kwon’s trial, but it is a particularly frustrating one. Were the investors who praised Kwon really stupid enough to believe him? Or was there something else?

Terra’s algorithmic stablecoin, terraUSD, made no theoretical sense, even setting aside the fraud that was later revealed. So don’t wonder if investors, including those with cryptocurrency and financial savvy, made a very bad investment in Terra, or if there were other ulterior motives. I can’t stay.

But what the SEC’s complaint reveals is that one counterparty is at risk for more than just embarrassment. The SEC alleges that a US-based investment firm was involved in a covert bailout in May 2021 when terraUSD lost its dollar peg.

The incident was later used to support false claims that terraUSD was safe, the SEC said. In other words, it may be seen as an act that encourages fraud rather than just an investment.

CoinDesk has confirmed that the company is Chicago-based Jump Crypto. It is unclear why Jump has not received legal retribution for what prosecutors could easily see as aiding fraud. Especially considering that Jump reportedly made as much as $1.28 billion from it.

what about terra? What about Terra 2.0?

Everything Kwon touches is fundamentally worthless. I urge you to sever any financial or professional involvement with any project Mr. Kwon has worked on.

I’m sorry if you can’t believe or understand what I’m saying. I’ve been trying to convince you for over a year now.

|Translation and editing: Akiko Yamaguchi, Takayuki Masuda
| Image: Terra co-founder Do Kwon (Terra, edited by CoinDesk)
|Original: The Questions That Linger After Do Kwon’s Arrest

The post Terra co-founder arrested, 4 questions that still remain[Column]| coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.

The steady decline of stablecoins: Regulatory roadblocks and volatile markets

https://ambcrypto.com/the-steady-decline-of-stablecoins-regulatory-roadblocks-and-volatile-markets/

  • Top stablecoins declined in market capitalization by over 21% compared to the same period in 2022.
  • However, an increasing Stablecoin Supply Ratio (SSR) could indicate a bullish signal for Bitcoin.

While stablecoins were designed to maintain a stable value, recent months have demonstrated that they are not impervious to the volatile swings in the cryptocurrency market. Furthermore, their close association with the fluctuations in Bitcoin’s [BTC] value has become increasingly evident over time.

Steady decline of the stablecoins

According to data from Santiment, the five largest stablecoins by market capitalization, namely Tether [USDT], USD Coin [USDC], Binance USD [BUSD], DAI, and Pax Dollar [USDP], have experienced a fall in their purchasing power over recent months. As of writing, the combined purchasing power of these stablecoins was about $125.9 billion, with a noticeable downward trend evident in the chart.

At press time, this figure was over 21% lower than what it was during the same period in 2022. However, it remained over 100% higher than its levels in 2021.

Stablecoins market cap

Source: Santiment

Stablecoins are typically the preferred option for cryptocurrency investors, as they provide a means to transition from volatile coins, such as Bitcoin, to a more stable asset. However, a decrease in the market capitalization of stablecoins could reduce liquidity.

It could also impede the upward momentum of other cryptocurrency assets. Conversely, an increase in the market capitalization of stablecoins may increase the likelihood of a positive trend for Bitcoin.

Santiment’s chart also revealed that the stablecoin buying power decline has slowed over the past week. The pause could be attributed to the slight volatility that Bitcoin and the wider cryptocurrency market experienced during this period.

Possible reasons for the decline

USDT faced persistent FUD over the years, particularly with regulatory concerns and the transparency of its reserves. More recently, BUSD encountered a regulatory obstacle when it was classified as a security, leading Paxos to temporarily halt the minting of BUSD until the regulatory issues are resolved.

USDC also faced some FUD after the collapse of Silicon Valley Bank and the exposure of Circle to over $3 billion, which sparked concerns about the stability of the coin.

The regulatory issues and resulting FUD surrounding stablecoins have caused them to de-peg over time, although they have reclaimed their pegs. However, the reserve of BUSD has continued to decline due to the uncertainty surrounding its regulatory status.

These events, combined with other factors, have contributed to reducing the market capitalization of stablecoins.

The BTC Stablecoin Supply Ratio

Although the market capitalization of top stablecoins declined, data from CryptoQuant indicated that the Stable Coin Supply Ratio (SSR) has been on the rise. As of the time of writing, the SSR was approximately 7.6, an improvement from around four earlier in March.

Stablecoin Supply RatioStablecoin Supply Ratio

Source: CryptoQuant

An increase in the Stablecoin Supply Ratio (SSR) could suggest a potential bullish signal for Bitcoin (BTC). It indicates a rise in capital available to flow from stablecoins into BTC. It could lead to a potential increase in demand for BTC, which could drive up its price.

As of this writing, Bitcoin was trading at approximately $28,490, representing a loss of less than 1%. Furthermore, the long and short moving averages (yellow and blue lines) were trending below the press time price movement.

BTC/USD price moveBTC/USD price move

Source: TradingView

Balaji Srinivasan’s $1M Bitcoin Bet Could Be Right, but I Hope He’s Wrong

https://www.coindesk.com/consensus-magazine/2023/04/01/balaji-srinivasans-1m-bitcoin-bet-could-be-right-but-i-hope-hes-wrong/

“Deutsche Bank share slide reignites worries among investors” – was the BBC headline when everything clicked. It added to the increasingly worrying set of events that have affected the global banking system over the past few weeks: another sign that we may be at the dawn of the Great Financial Crisis 2.0. Except this time we know the playbook, because the major commercial banks are too big to fail and governments will bail them out.

Peter McCormack is the creator and host of the What Bitcoin Did podcast and chairman of the Real Bedford football club.

That the U.S. government’s debt is at unsustainable levels is neither here nor there, we know that this type of problem is one that politicians are willing to kick down the road. For politicians the present objective is always to maintain voter confidence and, thus, power. The yo-yoing between rate hikes to protect against inflation and the Federal Reserve’s quantitative easing program to protect the banks isn’t designed to resolve the United State’s primary, systemic issue: expenditure significantly exceeding income. Instead, it seems the Fed and U.S. Treasury are working overtime to protect the dollar’s position as the global world reserve currency.

These bandages aren’t sterile and carry a threat of hyperinflation. As a result, the global economic system looks set for a historic correction at some indeterminate point in the near future.

A common question within the Bitcoin community is whether the fear of imminent hyperinflation is drawing investment back into bitcoin. Is bitcoin’s recent price rise confirmation that the inflation hedge thesis, which many commentators have dismissed, is back in play?

Linking cause and effect in markets is a fool’s errand, particularly for someone who interviews experts but doesn’t profess to be one. But heck, let’s give it a go.

First, why did the inflation hedge thesis lose credibility? Well, people saw inflation rising rapidly in late 2021 and early 2022, just as bitcoin’s price quickly fell. Ergo, bitcoin wasn’t an inflation hedge. Many critics of Bitcoin enjoyed carping about this, and the tl;dr of all of their articles and interviews was “I told you so.” But some bitcoiners, such as Steven Lubka, held to their conviction. We were experiencing price inflation due to systemic supply chain shocks caused by various factors, particularly the world reopening following COVID-19. There was no monetary inflation, and so, the idea that bitcoin could act as a lifeboat amid the devaluing of the U.S. dollar could still hold true.

Further, bitcoin’s price declined partly because of the unwinding of fraud and leverage from the likes of FTX, Celsius, Luna and others. Bitcoin took a hit as the world lost faith in cryptocurrencies, but perhaps only temporarily before we relearn the value of, and differences between, a hard money asset like bitcoin and other investments.

So, what about bitcoin’s recent price rise, is that linked to monetary inflation? Bitcoin’s valuation rebounded sharply around Jan. 9. At the time, the Federal Reserve was planning another interest rate hike. There was talk of cooling inflation, continued “quantitative tightening” and bitcoin’s rise being a dead cat bounce.

While various experts on my show have set out the significant systemic risks to the financial system, I don’t think people investing in bitcoin at the beginning of the year were predicting an imminent economic slump requiring a new round of money printing. Maybe it was a January mirage, but while the economy displayed signs of distress, the worst case analysts predicted was a short recession.

My view at the time was bitcoin’s new year price appreciation was a recoil from the maddening drama of 2022. Many believed bitcoin’s price had found a bottom, and it was a good time to invest.

In contrast, the rise in bitcoin’s price beginning early March feels different. Among the largest banking failures in U.S. history, Silicon Valley Bank may require $2 trillion of new money from the Fed. Add to that the demise of Credit Suisse, one of the world’s oldest banks centered in the nexus of the world’s banking system, and the recipe was there for people to seek an exit from the U.S. dollar.

The current banking crisis has those without their heads in the sand trying to understand it all.

Take the two former significant political figures who front one of the UK’s most popular podcasts (The Rest is Politics). One of the hosts, who had previously run to become prime minister, relayed a discussion he’d had with a senior banker, who admitted that “these banks are so big, so complicated that nobody understands them. Literally nobody.”

Then there’s the Biden administration’s recent Economic Report of the President, which stated: “sovereign money does not have a fundamental or intrinsic value.” That’s a hell of an admission. In other words, the U.S. dollar is based on confidence, and when confidence starts to ebb, as we’ve seen in previous crises, this can quickly turn into a flood.

Famous stock market crashes are just that – a sudden and abrupt crash from a high to a low. As investment analyst Lyn Alden stated in her recent newsletter, “$17.6 trillion in deposits are backed up by just $3 trillion in cash, of which perhaps $0.1 trillion is physical cash.” That touch paper just needs to be lit.

I don’t buy Bitcoin today for what might happen tomorrow, I buy Bitcoin today for what might happen in 2033.

In a press conference last week, Fed Chair Jerome Powell suggested the merger between UBS and Credit Suisse had seemed to have gone down well with the markets, but ominously qualified his statement by adding “so far.” When people like Powell, who are supposed to exude confidence and not mince words, express uncertainty about the current banking turmoil, it’s reasonable to suggest that savvy investors also see the danger and seek safe havens.

As we write this, the tables have turned slightly: bank shares have rebounded, and bitcoin’s price climb has stalled. But this seems like a temporary short-term adjustment in the context of a longer-term trend: fiat currencies are inflating away, and bitcoin, subject to state acceptance, is a viable alternative. That won’t stop haters from commentating on the sidelines, but bitcoiners are well-versed in blocking out such noise.

Bitcoin’s base characteristics

Those aware of bitcoin’s properties – like its limited supply and resistance against being seized – before the banking crisis were ahead of the curve. You can argue about what causes market movements, but in the two weeks since Silicon Valley Bank failed, bitcoin rose 37%. Such a rise in value of a scarce asset as quantitative tightening was being brought to an abrupt end, tells an obvious story.

None of this should be a surprise. Being a reliable store of value is one of the primary value propositions of Bitcoin. As Satoshi stated: “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”

But even Satoshi was no Nostradamus; he was an economic historian and inventor. He understood the root issues within a fractional reserve system and built a tool to protect those furthest from the spigot. His bitcoin design was based on simple core principles – scarcity, a fixed monetary policy and auditability. And these simple core principles brought trust back into the realm of money, in a trustless system, with fair, transparent rules everyone has to follow.

Bitcoin has never been a real-time solution to the problem of inflation. Like Michael Burry’s famous bet on the housing market, it has rewarded those who prepare early for financial chaos. Time the market right, and you will perfectly hedge inflation, but if you ignore the warning signs and wait too long, then unlucky sucker.

As an inelastic monetary asset, bitcoin goes through its own cycles of fear and greed. Therefore those who did not listen to the warnings from their weird bitcoin friends but instead FOMOd in as BTC sets new highs have found themselves underwater when the asset became overbought. Those who sensibly invested in bitcoin during periods of calm while the financial system overextended itself have found themselves protected when the money printer goes brrrr.

Are you too late for bitcoin? Unlikely. Will there be further problems in the economy? No doubt. Will this lead to further bailouts? You bet. Will bitcoin benefit? Highly likely. In fact, bitcoin’s store-of-value properties are resonating again with investors considering how to navigate these troubled times. Could the economic situation get bad very quickly? Quite possibly, but who knows; the financial system is chaos theory writ large. Predictions fail, repeatedly.

We all sense that the system will hit the wall at some point. However, as Custodia bank founder Caitlin Long said to me recently: “We just don’t know when it is.” It could be today, next week, next year or in 2033. I don’t buy bitcoin today for what might happen tomorrow. I buy bitcoin today for what might happen in 2033.

When the economic situation does deteriorate quickly, what will the impact on bitcoin be? Balaji Srinivasan recently wagered that bitcoin would reach $1 million by June 17. That’s June 17 this year. I’ll be honest, I’m not sure of the actual trading mechanics required to enable a sudden massive increase in valuation, but it would require significant capital inflows into bitcoin at a time when the institutions are choking the onramps.

It is evident, however, more people are being drawn in by bitcoin’s gravity as they grow increasingly tired of fiat’s fragility. Further, the people who need bitcoin are accessing bitcoin. There is adoption by communities in the developing world and on the periphery of the developed world, those suffering most from failing or collapsed currencies. While the use of stablecoins is also increasingly widespread in these locations, the populations seem to be rapidly developing the necessary technical skills to shift to bitcoin as and when required. Bitcoin, for many, is already a hedge against fiat currencies, including U.S. dollar proxies.

Either way, my concern, like many bitcoiners is that we’re still not ready for a world where Balaji’s prediction is proven correct, and if he is right, we have much bigger problems to worry about. Bitcoin’s adoption is still not wide enough to protect enough of those who most need it, or protect the Bitcoin network itself from government attack (assuming it becomes a target because of capital flight). Yes, the network will keep producing blocks, but choking the network feels like a more predictable attack now than accumulating hashrate.

The idea that bitcoin is an inflation hedge is ridiculed in the West; this includes my home country of the U.K., where people are still generally ignorant of bitcoin. They either know very little or have a tainted impression, so they view it with suspicion or dismiss it as money for criminals. To know and understand bitcoin is to gain new awareness that there is an alternative version of money. Nocoiners must cross a chasm of knowledge accumulation that we should not underestimate.

It’s not hyperbolic to state that many people can clearly distinguish their life before and after understanding Bitcoin. However, trying to explain how profound this realization is to others in developed countries runs the risk of sounding like someone who’s been drawn into a cult! People respond with raised eyebrows and dismissive gestures.

Many people seem as ignorant of the serious risks to the economic system as they are of bitcoin. Few are willing to put their wealth in a scarce asset, even if they can see what type of economic catastrophe lies ahead. None of this invalidates the thesis that bitcoin is an inflationary hedge, it just reflects that changing a paradigm – particularly one protected by a strong self-interested centralizing force – takes time.

Bitcoin has a growing range of societal roles: freedom money, internet money, money for enemies and energy buyer of first and last resort

A change in inertia requires a dramatic force from the outside, something that shocks the mainstream narratives. Bitcoin was born in a crisis, and it may take another crisis, or many more, to get most people to understand why they need a store of value and why they should consider bitcoin. Whether by design of accident, the four-year halving cycle might be bitcoin’s inbuilt marketing device. When these halving cycles align with an economic crisis, we build “adoption by a thousand cuts.”

Therefore, my primary concern is whether bitcoin will be used as an inflation hedge by those most in need of it in the world. A hedge requires understanding, forethought and planning, and, in my opinion, too many people are missing the warning signs, like the frog chilling in his lovely warm pan of water.

Sadly, those who benefited most from the Cantillon effect may be better placed to benefit from exploiting Bitcoin’s store of value utility than those who, time and again, bear the brunt of financial mismanagement. A large proportion of people Bitcoin is supposed to protect will be cast adrift.

Further education is required, and I am excited to be part of that process. However, as Bitrefill’s Sergej Kotliar said to me recently, it is highly unlikely that we’re going to Orange Pill everyone. His thoughts on growing adoption are much more pragmatic: appeal to people’s needs and market the Bitcoin network’s technical utility. “Bitcoin is both a tool and a movement,” he said.

Like the internet before, widespread tech adoption occurs due to the practical benefits provided to users. People have prosaic day-to-day concerns, and we have to appeal to their current needs, not just the fear of unknown forces. For example, selling bitcoin’s use as a faster and cheaper payments rail (aka internet money). Given time, this can be another way to get people to adopt bitcoin, and where its sound money functions come as a bonus.

But it’s much more than that. The beauty of bitcoin is that it has a growing range of societal roles: freedom money, internet money, money for enemies and energy buyer of first and last resort. All of these have massive positive societal ramifications. The role of educators is to understand the concerns of different audiences and market the heck out of bitcoin using selective arguments that resonate best with each. Sometimes this will be ideological, and sometimes this will be technical, and sometimes both.

Or to put it as succinctly as Margot Paez: “Bitcoin adoption is going to struggle if we don’t have the right ambassadors.” If Bitcoin is for everyone, we need a range of people representing wider society to advocate for Bitcoin.

So, the question in my mind is not whether bitcoin and the inflation hedge thesis can be linked; they obviously are. In a world increasingly beset by trust issues, the best asset is one predicated on known and immutable scarcity, validated by a trustless, decentralized system.

No, the main question in my mind is how can we facilitate the transition to as broad a level of adoption as possible.

Slow and steady adoption would be better than a short sharp shock. The latter has significant risks: widespread value destruction, people embittered by those who hold bitcoin and the risk of government forfeiture. And obviously, it is better to keep bitcoin ahead of a crisis than to learn about it amid a crisis.

Therefore, let’s hope that bitcoin’s value doesn’t reach $1 million in the next few months and that growth continues at a steady rate.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Peter McCormack is the creator and host of the What Bitcoin Did podcast.

Binance.US Volume Rises to New All-Time High, Plans Transition to New Banking Partners

https://beincrypto.com/binance-us-banking-partners-ath-volume/

Binance.US users would experience issues depositing and withdrawing US dollars (USD) on the platform because of the recent banking crisis bedeviling the crypto industry, according to the exchange’s status page.

According to the page, users cannot withdraw or deposit USD using Apple Pay, Google Pay, and Wire transfers. The exchange added that debit card deposits would also be unavailable for around 5% of its users.

The exchange explained that it was transitioning to new banking and payment service providers due to the recent developments in the US banking industry.

Per the status page, the exchange has temporarily suspended trading pairs involving the BUSD stablecoin.

Binance.US Status Page (Source: Binance.US)

Binance.US did not give a definite timeline for these services to resume. It only gave a vague timing of “several weeks” and added that it was “working to restore all services as soon as possible.”

Signature Bridge Bank ACH Deposits and Withdrawals “Temporarily Unavailable”

The status page further showed that ACH deposits and withdrawals from Signature Bridge Bank were unavailable for users. The FDIC created Signature Bridge bank after being appointed as the receiver of the failed Signature Bank in March.

At the time, Signature board member Barney Frank suggested that the authorities close down the bank because of its crypto affiliations. However, New York financial regulators denied this claim.

Since then, Flagstar acquired Signature without $4 billion of its digital banking deposits.

Binance.US Reaches 41% of Coinbase Volume

Meanwhile, the issues appear not to have any effect on Binance.US’ trading volume. According to Binance CEO Changpeng ‘CZ’ Zhao, the US subsidiary’s volume reached 41% of Coinbase ― a new all-time high.

Binance.US volume
Binance.US Volume (Source: CZ)

The increase is coming amid the legal trouble facing its parent company. The US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CZ, alleging that they violated commodity law. While the exchange said it would cooperate with the regulator, the community has rallied behind the exchange.

Meanwhile, Binance.US remains one of the largest crypto exchanges in the United States. Crypto data aggregator CoinGecko pointed out that the exchange users increased 16% in 2023 to 678,000 as of March 29.

In the last 24 hours, the exchange had a trading volume of $479.78 million, according to BeInCrypto data.

The post Binance.US Volume Rises to New All-Time High, Plans Transition to New Banking Partners appeared first on BeInCrypto.

How Cryptocurrency is Funding Ukraine’s Battle for Itself and the Soul of Democracy

https://blockchainjournal.com/interview/how-cryptocurrency-is-funding-ukraines-battle-itself-and-soul-democracy/

Audio-Only Podcast

David Berlind: I’m David Berlind with the Blockchain Journal podcast. I’m coming to you from the DC Blockchain Summit 2023 taking place in Washington, D.C., of course. We’re surrounded by lawmakers, regulators, lobbyists, [and] people who are really looking into the idea of where cryptocurrency and blockchain regulation is going in the future, because until some decisions are made, a lot of organizations are kind of stuck. They don’t know what to do, they don’t know how to anticipate which direction the regulations will head, and how to respond to that with their strategies. Now, this event draws people from all over the world, and standing with me is Lyudmyla Kozlovska.

And Lyudmyla, you are not a lobbyist, you’re not a regulator or a lawmaker, but you’re from somewhere else. Where else are you from?

Lyudmyla Kozlovska: I’m [a] human right[s] defender from Ukraine, and I actually deliver humanitarian aid and protect human rights with the use of crypto assets like Bitcoin and stablecoins. I’m the leader and founder of Open Dialog Foundation, and since the first hours of [the] Russian invasion to Ukraine, we were capable to fundraise and then, [on] the second day of the war, deliver humanitarian aid, together with [the] Minister of Defense and Embassy of Ukraine in Poland, to [the] Ukrainian Minister of Defense in Ukraine, with hundreds of sets of medical equipment, hundreds of protective equipment, like bulletproof vests, helmets, just because of [the] speed of Bitcoin and crypto assets.

Well, you cannot use traditional financial instruments in even fundraising campaigns because it’s considered by anti-money laundering and counter-terrorism regulation as a[n] activity associated with the military zone. So you basically deprive the right to fundraise to support Ukraine at the early stage, and even now, a lot of Ukrainian organization volunteers, they, unfortunately, deprive [of] the right to have this kind of fundraising campaigns, and thanks to Bitcoin and stablecoins, we’re capable to do so, we’re capable to save lives. And this is also the reason why [the] Ukrainian government actually also using crypto assets, particularly Bitcoin and sell Bitcoins, to basically buy or to basically transfer as fast as possible the important protective equipment and even weapon[s] to Ukraine thanks to these payment instruments.

Berlind: Now, what surprises me about the people of Ukraine, people like yourself, people like Yulia Parkhomenko, who I interviewed in Davos, Max Lurya. These folks, they live in Ukraine, but they find a way to get out to the world, [and] show the world that they’re still doing what they do, whatever it is they may be doing. Yulia, for example, works in the Ministry of Digital Transformation there, continues to do her job, fly around the world, and go to the most important events. Here you are, you’re from Ukraine, it’s probably not the safest thing to travel out of Ukraine to get here, but you and your fellow country people are out and about in the world telling the Ukraine story. That’s almost as important as any sort of fundraising or cryptocurrency that you might be taking, just getting this message out, being an ambassador for the country.

Kozlovska: Yes, exactly. So you need to understand that while we, from one side, [are] extremely, extremely grateful particularly for Bitcoin and crypto, basically, holders because they helped us and came immediately the first hours of Russian invasion to Ukraine, while the traditional financial institutions and basically traditional fiat money came to us into months later. So these first months were crucial for Ukrainians, and this is the reason why a lot of Ukrainians and also [the] Ukrainian government is really, really grateful, grateful for everyone from [the] crypto community. This is the first point.

The second point, we as Ukrainians, we’re not defending only our land. We defend the general democracy in the world, because if Putin’s allowed to commit war crimes in Ukraine, and he’s before committed war crimes in Moldova, in Georgia, in Kazakhstan, they will do it on Europe [as a] whole and not only in Europe. So in fact, we defend the whole principles of democracy. And of course, for us, [it is] extremely important that we, as Ukrainian voices, whenever we are in Brussels, in Washington, in Kiyv, or whenever we are, we’re defending all of our principles. And of course, solidarity, it means a lot for us. It’s not just words, it’s our lives.

Berlind: Yeah. Well, that’s amazing that you guys get out. Now, do you know, by any chance, since the beginning of the war, how much in cryptocurrency has been raised? Maybe you can translate it into US dollars? What’s the total amount raised since the beginning?

Kozlovska: Over 170 million of dollars were at least transferred. I mean, it was donated first to Ukraine and then used also to buy protective equipment. We don’t know how much use the government itself for transaction[s], but officially, information in donations, it was actually over 170 million of dollars.

Berlind: And what specific role does your organization, the Open Dialogue Foundation play? Because I just love the name, Open Dialogue Foundation. It sounds like it’s not just about supporting Ukraine and maybe it sounds more like it’s about the dialogue of democracy.

Kozlovska: Yes, exactly. So as a human rights organization, we work with [the] post-Soviet region. It’s Russia, Ukraine, Kazakhstan, [and] Moldova. It’s our particular focus, but we also work with instruments, international instruments, which, unfortunately, [are] abused as a transnational tool for repression, like principle, like mutual legal assistant request, and also anti-money laundering regulations. And what we basically discovered, that in [the] case of Ukraine, we see this kind of abuses for so-called false-positive, which was discussed here also in the house during this conference. When clients of [the] traditional financial system, they refuse to have a bank account of financial services just because they fundraise, for example, for so-called unsafe territories like Ukraine. So our role, it’s to highlight these kind[s] of questions with regulators and to find remedies [for] how the people who use [the] traditional financial system and crypto assets can be back not to be in a gray zone. This is the first thing.

The second thing, we as Open Dialogue Foundation work extensively since the first hours of [the] Russian invasion to Ukraine to provide relocation rescue support for refugees from Ukraine, [and] also from Belarus. In Poland, we have a biggest hub to support militaries and also individuals with the humanitarian aid, and all we [are] doing in fundraising is basically cryptocurrencies. Why? Because at some point, our foundation, because of our human rights activities in the past, [inaudible 00:06:47] attack[ed] at least three states, and we were deprived to have [the] right for traditional banking. This is the reason why we were so aware [of] how you can use crypto assets. This is a reason why we also advised for Ukrainian government representatives [on] how they can use also crypto assets for fundraising, especially in this kind of emergency situation.

And now, we created a coalition of NGOs who, unfortunately, became a victim of this transnational tools of repression, like anti-money laundering, [and] counter-terrorism regulation. We’re doing advocacy. We explain it, as end users, how we use Bitcoin and stablecoins to deliver humanitarian aid, protect human rights, and why we want to be back to [the] traditional financial system, benefit from its all services, and not be deprived also the right to use crypto assets where, for example, you cannot use this traditional financial system. For example, in Russia, in Belarus, or, for example, in Kazakhstan, Uzbekistan, if you just try to fundraise in [the] traditional financial system, you would be assumed as extremists if you protect human rights, if you criticize the government, if you go to, for example, support Ukraine.

But at the same time, you can, for example, in Russia, of course, and in Kazakhstan and Uzbekistan, recruit people to fight against Ukraine, for Wagner and no one is going to prosecute you. So we expose these kind[s] of illicit activities. We expose how third countries like Kazakhstan, Uzbekistan, [and] Turkey help Russia to evade, [and] circumvent sanctions, regime, and we want to make it more effective but not try to kind of easy explanation that it’s, “Oh, Russia is using crypto assets to evade sanctions.” It’s not true. They use central banks… It’s like state agencies of third countries, [and] partner countries to avoid for billions of euros and dollars sanctions, and we, of course, expose all these illicit activities.

Berlind: Now, here in the US, things are kind of at loggerheads in terms of regulations. Regulations are very slow to come out and it is slowing down the adoption of cryptocurrencies, Bitcoin, et cetera. Is that a problem in terms of raising money? If there’s a lot of regulation and there’s an obstacle to people working with cryptocurrency, does that become an obstacle to you to raise the money?

Kozlovska: Yes, of course. So no one wants to be associated with something which is forbidden. So our role, because we know the value, we know how really these important instruments, like crypto assets, can save lives, especially with authoritarian regimes. For you maybe, I mean for many European[s], for many American[s], you have a privilege to live in a secure world where you use crypto assets for speculation. For us, it’s saving lives. It’s the only tool how you can safely defending [the] privacy of donors, defending [the] privacy of those who are recipients to deliver humanitarian aid. It’s the only hope for [the] family of political prisoners how they can securely receive some small aid. It’s not about big money, it’s about 50 sometimes dollars, but for them, it’s like life—

Berlind: Or death?

Lyudmyla Kozlovska: Exactly. Life or death.

Berlind: Okay. Now, it sounds like you’re doing a world of good. You’re roaming around the world, you’re raising money, you’re telling people about the importance of cryptocurrency in the role of preserving democracy, let alone Ukraine’s sovereignty, but you also have been stopped and prevented from traveling yourself, haven’t you?

Lyudmyla Kozlovska: Exactly, exactly. This is story what I said to you, that I was persecuted harshly. I’m still being persecuted, but I won [a] historical court decision against Deputy Minister of Special Services of Poland, who used all fake news produced by Kazakhstani, Moldovan, I mean Plahotniuc regimes, and others, dictators against me because… I mean, Poland, unfortunately, we have at this stage that the Polish government violates rule of law, human rights, women[‘s] rights, and we, as [an] organization, were the first who exposed it on [an] international platform. So to seize of activity, human rights activity, [the] Polish government used me as a[n] easy target, as Ukrainian, and they thought that if they place me politically-motivated in a Schengen Information System list like a threat to national security, it would solve for them problems. But it was not easy. I know how to protect hundreds of political prisoners and those who are politically prosecuted, and of course I was capable to protect myself. So I initiated the reform of Schengen Information System. I initiated again this reform of anti-money laundering regulation abuses, when it’s abused by such people, like dictators or authoritarian regimes, like in Poland.

And now we have, for example, special… I mean, special because it’s first time when [a] foreigner win[s] the decision of the court against [the] Deputy Minister of Special Services when you accuse in money laundering, in threat to national security, being a Russian spy, all possible fake news. But normally, judges are afraid to take decision, especially on a course of foreigners, but we were so vocal, we were so exposing all of these irregularities that we won. And of course, it’s really important because it gives remedy for other foreigners who was the same like me, deprived [of] their right, but they didn’t have the courage, they didn’t know how to defend their rights.

And I’m really proud to say that for now, we have a special also motion for resolution and, afterwards, report of Parliamentary Assembly of the Council of Europe, which explicitly writes how you have rights to, with remedies, with compensation, access to information for foreigners. You don’t have it in US, you don’t have it in UK, in Canada, in any democratic countries, but you have it already in 27 countries of European Union and everyone who is supporting Schengen Information System, and I think it’s revolutionary.

So we’re here to show [an] example that you can support, you can defend your rights even if you are a victim of repression, and I think it’s an important example.

Berlind: Okay, well, Lyudmyla, amazing story. I can’t imagine what it must be like to live a day in your life when you’re there in the Ukraine, and I know I’m speaking for everybody who’s watching this. We wish you all of the best in terms of your health and your safety, and we certainly look forward to Ukraine, one day, declaring freedom from Russia.

Kozlovska: Absolutely. Thank you so much, and thank you, everyone, who supports Ukraine. We need your help. We always thank you for saving our lives. Thank you. Thank you.

The Role Of Credit In Cryptocurrency

https://www.cameronhuff.com/blog/the-role-of-credit-in-crypto

Credit is the lifeblood of economies. Since ancient times, borrowing has been subject to regulation. The image above is from section 48 of Hammurabi’s Code, written 3700 years ago, and it concerns the delay of payment of debt due to crop failure. Debt and credit are two sides of the same coin, since a problem with the repayment of debt is a problem for the person who provided it. This has recently been a problem in the US banking sector, the cryptocurrency lending sector, and the subject of a number of recent Canadian legal changes.

This article discusses credit and debt in the context of cryptocurrency, with a particular focus on recent Canadian and American legal developments.

Credit In Crypto

There are a few different types of players in the cryptocurrency credit system, for example:

1. Companies that borrow from the public (many of which have gone bankrupt in recent years), e.g. BlockFi

2. Companies that lend to the public, e.g. Canada’s Ledn

3. Banks that provide traditional credit to large companies that are active in cryptocurrency, but where the loan is not relevant to crypto

4. Companies that lend to other companies in the cryptocurrency space, e.g. Coinbase’s emergency offer of $3 billion credit to Circle

5. Decentralized credit as part of algorithmic stablecoins, e.g. DAI

6. Decentralized credit through lending protocols, e.g. Aave

7. Trade credit from vendors, e.g. invoicing customers net 30

8. Quasi-decentralized borrowing systems for accredited investors, e.g. Tinlake

The above systems are discussed below, but first a bit of background on laws about credit.

Modern Laws Of Credit And Debt

In modern Canada, it is more often the debtor who’s cause is aided by law, since creditors are often considered to be able to fend for themselves more easily than debtors. Think payday loans, which are quite strongly regulated in Canada. The trend in recent years has been to restrict the provision of certain kinds of credit, while expanding others. For example, the Canadian government actively intervenes in the market for home mortgages to decrease the cost of borrowing, while attempting to reduce loans for other kinds of transactions (rather than global laws for all credit and debt). People in modern times have a complicated relationship with debt and credit.

Canada has a complicated legal system with regard to debt. There’s federal banking regulation, provincial securities regulation, provincial financial institution laws, provincial consumer debt regulation (e.g. payday loans), special laws for home mortgage debt, government credit of various kinds set out in many laws, criminal regulation of interest federally, and then a various of administrative rules with respect to credit. There’s also a wide variety of common law rules that have emerged from courts over the centuries. Canada has moved far beyond Hammurabi’s Code.

A 2023 Snapshot of Debt In Canada

The 2023 federal budget proposes to reduce the rate of criminal interest (i.e. usury) from the current 60% per year to 35% (which matches the rate in Quebec but not the rest of Canada, where the Criminal Code rate of 60% prevails). The government describes this as predatory lending, but the businesses that provide these kinds of loans are almost always lending to people who have a desperate need for money, but not the means available to pay (like wealthier people). The result of these sorts of restrictions is less debt offered to people who have limited means. That may sound like a win, but it’s ignoring that these people have a strong need for money right now, and no one else is willing to provide that money.

Loans to marginalized people are not the norm in Canada. By far the largest sources of credit involve banks, mortgage lenders, the government itself, and other large institutions. Debt markets are worth trillions in Canada, with the federal government owing $1.15 trillion dollars to creditors. No agency properly tracks residential mortgages outstanding in Canada, but this likely exceeds $1.7 trillion dollars today (up from $500 billion 20 years ago).

Canada’s debt market is huge, and expands every year. To some, this is a sign of an advanced, modern economy in which stability assures lenders that they can safely lend out their money. To others, this is a sign of people living beyond their means. The government’s preferred number is the ratio of debt to total economic activity in Canada. Mortgage lenders look at the percentage of someone’s income than is, or can go to, servicing their debt. Business lenders typically look at cash flow and other measures to decide whether or not to lend.

On-Chain Credit

What does Canada’s debt situation have to do with cryptocurrency? For many people, cryptocurrency is the antithesis of the debt system that is considered the lifeblood of the economy. That’s even a reason that economists have cited in criticizing cryptocurrency. The reason why cryptocurrency is the opposite of the debt system is that cryptocurrency transactions are irreversible and difficult to recovery legally, which makes it very difficult for a lender to assess and recover against in the case of non-payment. And yet, creative solutions have emerged.

The DAI System In Ethereum

There are a number of successful on-chain credit products, that work entirely (or almost entirely) in a decentralized manner: DAI is a great example. DAI works by having a user send their ether (ETH) to a smart contract that then issues a quantity of DAI (where each DAI is equal to $1 USD) that is significantly less than the value of the ether. In other words, the loan of DAI is over-collateralized. An over-collateralized loan is quite rare outside of crypto, but essential in a world where someone could simply not pay back the loan (because they’re anonymous and on the Internet). So, for example, a user deposits $100 of ether and receives $50 of DAI. Then, if the price of ether plummets, their DAI is liquidated. If the price of ether goes up, there’s no effect. At a later date, the person with the DAI can return it to the smart contract and receive back the collateral they pledged, but with an interest rate charged according to the time that they had the DAI. This system produces two things that users want: a stablecoin (worth $1) that is not dependent on bank accounts (re: Silicon Valley Bank and USDC) and loans on-chain.

Why would someone want a loan of $50 in exchange for $100? One reason is that they believe that ether will increase in value, so they can take $100 of ether, get $50 of DAI, then purchase $50 of ether, resulting in a leveraged bet on the price of ether. This can be done entirely in the computer code of Ethereum and people have used it to create around $5 billion of over-collateralized DAI tokens.

Failures Of Lenders In The Crypto Space

The Canadian Securities Administrators (the association of provincial securities regulators) recently issued a staff notice that pointed out the failures of a number of lenders that were not on-chain systems like DAI. The staff notice mentions Voyager Digital (Canadian publicly-traded company that operated only in the US market), Celsius Network (American company), BlockFi (American company) and Genesis Global (American/offshore company). Voyager, Celsius, and BlockFi were all engaged in the business of borrowing from the public. Genesis was engaged in the B2B business of borrowing and lending. All of these companies have failed and/or been the subject of securities legal action by regulators in the United States. None of them were banks and users have suffered billions in losses due to their failures. What binds all of these companies together thematically is that they were receiving loans from the public.

The typical business model of lenders is to lend to the public, rather than borrowing from the public, and borrowing from the public is generally riskier for the public. The reason for this is that regular people are often not good at evaluating credit risk, and lack the professional understanding that lenders at banks and other traditional lenders have. Even payday lenders, which lend to the marginalized public, have a great understanding of the risks involved (because if they didn’t, they would go bankrupt quickly and replaced with another lender with a better grasp on their clientele’s ability to pay). Unfortunately, the failures of these companies is a great example of why borrowing from the public is a risky activity (for the public).

The Canadian Securities Administrators uses these recent failures as evidence that new investor protections are warranted. And yet all of these platforms were actually not operating in Canada, and all of them were in a different market than cryptocurrency dealing (which is what the new rules are aimed at). This is probably just an opportunistic moment for regulators, rather than a real misunderstanding of what these companies were up to before the failed.

The new rules proposed by the CSA focus on lending to the public, rather than borrowing from the public. But lending to customers is a long-standing model for businessses, whereas borrowing from customers is not (in part because it’s more heavily regulated – think banks). None of these failed businesses had much to do with cryptocurrency, since their business model was about borrowing from the public, not about crypto. In fact, their models would have worked even better with regular money, because they would have had a much wider potential customer base. But it also would have been more obvious that their activities are generally prohibited by laws against borrowing from the public.

Why Are Loans From The Public Treated More Seriously Than Loans To The Public?

There’s an old joke that if you borrow $1000 from the bank that’s your problem, but if you borrow a million dollars from the bank that’s the bank’s problem. When a loan is extended to the public, it is primarily at the risk of the lender. Lenders are often large companies, which can fend for themselves. Despite the talk by government of predatory lending, the risk in lending to customers is primarmily borne by the lender, who may lose all of their money. The person who receives the loan has the money! They got what they wanted. But the lender may not get the money. When the public engages in lending to companies, they are the ones who might lose all of their money, and that’s exactly what happened with the companies mentioned above. This difference in risk profile is why laws are generally concerned more with ensuring that the public doesn’t engage in the business of lending out their money, as a consumer protection measure. There are people who view this as a problem for the public, because they should be able to engage in the profitable business of lending, but the failures of these companies show the obvious danger in permitting that. Governments throughout the world have typically enacted laws to restrict or eliminate this sort of business. Last year’s settlement of the securities violation offences alleged against BlockFi (one of the failed companies) for $100 million dollars is a good illustration of what these laws are and how securities regulators enforce them. It’s important to note that these laws are of general application and don’t depend on the nature of what is being loaned, whether dollars, bitcoin, ether, or wheat.

Credit In Context

Despite regulators claiming great concern over cryptocurrency-related lending, the reality is that this is a tiny industry relative to overall credit. Canadian regulators cite the failures of the key borrow-from-the-public American businesses, but these failures are tiny relative to the recent failure of Silicon Valley Bank. Canadian crypto-related lending has likely never exceeded a billion dollars, in a market worth several trillion. Most of the platforms cited by the recent CSA staff notice were foreign companies that either never served Canadians, or barred them well before failure. Is this a serious concern? Probably not. That’s not to downplay the magnitude of some Canadians losses (since some certainly used VPNs and other means to gain access to these platforms and the attractive rates they offered), but it seems cynical for securities regulators to discuss a foreign problem as if it’s a domestic one. The failure of Silicon Valley Bank, an active lender to Canadian tech businesses (and registered foreign bank branch in Canada) may very well have a bigger impact.

What Is The Role Of Credit In Cryptocurrency?

To recap, credit is not native to crypto. But there are on-chain credit systems like DAI, though these are not at all like traditional loans because they require the user to place more than the value of the loan with the smart contract system (typically quite a bit more). Then there is the world of traditional borrowers and lenders, some of which migrated into the cryptocurrency world in the guise of new technology, but was in fact a medieval-era model of banking, much of which operated outside of the law (and then failed).

The role of credit crypto is relatively limited. In Canada, it’s especially limited due to the recent staff notice warning platforms that buy and sell crypto to not engage in either lending to or borrowing from their users. Securities laws prevent many other kinds of credit to the public (i.e. people who are not rich, because people who are rich qualify as accredited investors and are permitted to engage in loans that others aren’t). Restrictions on loan interest rates also prevent at least some loans, and with the lowering of the maximum interest rate to 35% by way of the announced budget measures, this may become a larger factor. Undoubtedly, many people use access to traditional credit, like mortgages or home equity lines of credit, or even credit cards, to make purchases of cryptocurrency. No one knows how large a role that kind of borrowing plays in crypto.

Outside of national laws, new blockchain systems are being built to enable credit in ways that sidestep defaults by relying on collateral. This has its limits, as the most useful kinds of loans for businesses are certainly not the kind that require collateral, and most members of the public will not have much collateral. But perhaps that’s a good outcome for the crypto space, because loans can create instability. But, overcollateralized loans through sytems like DAI are probably primarily used for speculation on prices, which can cause an increase in instability.

It’s probably not laws or regulatory guidance that stops more lending involving cryptocurrency. It’s the difficulty of recovering against the assets of the borrower – the same issue that ancient laws concerned themselves with. But considering that all of the on-chain lending systems (like DAI and Aave) have sprung up within the last ten years, it’s likely that there will be future innovations in this space to help people gain access to more money than they have, at the price of paying money to those who have more of it. Whether in ancient Mesopatamia under Hammurabi or Canada under Justin Trudeau, the business of borrowing goes on.

Quadratic Funding Hits the Mark | BanklessDAO Weekly Rollup

https://banklessdao.substack.com/p/quadratic-funding-hits-the-mark-banklessdao

Dear Bankless Nation 🏴,

One constant at BanklessDAO is the unity among members. Our shared values make us close-knit regardless of where we live in the world, as we help each other progress the Bankless Nation. To that end, DAO organizational units are encouraged to post their Season 8 funding proposals to the Forum before April 7 for review by the Grants Committee.

In this week’s editorial, Lucent presents a review of the proposed pilot of a Gitcoin Grants Stack, whereby BanklessDAO will run our own Quadratic Funding round. The idea is to test the new Gitcoin Grants interface while also ascertaining market fit for some of our established projects.

Speaking of retroactive funding, in Optimism’s recent RetroPGF2, 27.5K OP tokens were awarded to our Newsletter, Bankless Publishing, IMN, and ‘The Rug’ projects. A further 58K landed on Bankless Academy! Congratulations on impressive efforts all round, and well deserved success.

This week’s Community Call concluded with an open roundtable discussion where members expressed praise and gratitude for their peers’ sustained hard work within the DAO. By the way, if you haven’t used the Praise bot in the bDAO server yet, now’s the time to share some gratitude of your own.

It’s with such gratitude that we thank you for reading this week’s Black Flag Rollup edition and wish you a great weekend!

Contributors: Lucent, Dippudo, links, Allyn Bryce, WinVerse, theconfusedcoin, anointingthompson1, Boluwatife, Warrior, KingIBK, siddhearta, Trewkat, HiroKennelly



This is an official newsletter of BanklessDAO. To unsubscribe, edit your settings.

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✅ Action Items

📖 Vote: Review, comment, and vote on the various Season 8 funding proposals.

🏫 Learn something new in the Education Department knowledge sessions.

🎙 Listen: Tune in to our various podcasts and stay on top of all things crypto.

🏃‍♀️ Catch up: Review this week’s Community Call notes or view to the recording.


🏛 Governance

Snapshot Votes

BanklessDAO Governance Department Instantiation

Following the previous discussion on Establish and fund a Governance Department, the proposal passed the soft consensus check by achieving 36 votes in favor and 9 against. If successful on Snapshot, the mandate of this department will be to:

  1. Steward the governance conversation in BanklessDAO

  2. Update and maintain governance docs and constitution

The initial budget for this Department will be 800K BANK.


We Are the Black Flag 🏴

To be bankless is to seek freedom.

Freedom to do what you want to do — to be who you want to be.

Throughout history, people have hoisted the black flag in the face of authoritarian rule.

The black flag is a declaration of our intent to be free.

It is a symbol of our resolve.

BanklessDAO was created to steward the bankless movement.

We fly the black flag as a beacon for all freedom seekers; to create a space for us to gather and grow.

We welcome all.  Country, creed, age, language, race, religion, gender, and everything else are secondary to our purpose.  As long as you seek freedom, BanklessDAO welcomes you.

We teach our ways.  With every person taught, we swell our ranks.  Our members are a rising tide, and a rising tide lifts all ships.

We are relentless.  Step by step, we pursue our mission.  Brick by brick, we build the means for others to follow.  When we fail, we take stock, make adjustments, and keep moving forward.

We value contribution.  Large or small, each contribution is a step closer to freedom.  Contribution is BanklessDAO’s true currency.

We are strong together.  Even when we can stand alone, we stand together.  When one of us falls, another steps up to carry the banner. When one of us flies, we all soar.

To be bankless isn’t a goal, it’s a way of life.  It is the decisions you make every day towards self-sovereignty.  Slow or fast, as long as you move towards freedom, you are bankless.

And if you are bankless, you fly the black flag.  As a beacon.  As a symbol.  As a reminder.

The black flag is the pursuit of freedom, and the bankless always seek to live free.

We are the black flag.  Let’s fly! 🏴

Links, one of the great connectors in the DAO, and someone who lives both to inspire and be inspired, was inspired to write this inspirational piece. Well done links, and thank you for continuing to inspire us on our bankless journey!


Quadratic Funding Hits the Mark

Author: Lucent

Image credit: Dippudo

Communities are built upon participation. One way to participate in the larger web3 community is through the Gitcoin Grants program, which pioneered an allocation system known as Quadratic Funding. This recent bDAO Forum post seeks to trial Quadratic Funding for our projects. If approved and launched, the plan is to study the outcome, analyze the feedback, and with the right improvements and community support, perhaps implement the system as part of our seasonal funding process. For that reason, it’s a good idea to learn some more about Quadratic Funding.

How Quadratic Funding Works

Quadratic Funding is a mechanism that involves prioritizing the number of people who vote over the value of a single vote. As Kevin Owocki puts it: “I imagine moving from a web that is one-token-one-vote… to one-person-one-vote, and I think that’s fundamentally more democratic”. With Quadratic Funding, the aim is to fund projects that appeal to the majority, rather than leaving the decision to a ‘whale’ (someone with a disproportionately large amount of tokens).

Quadratic Funding works by matching the funds allocated by individual supporters to a larger pool provided by an investor.

The Quadratic Funding mechanism is calculated with a formula created by Vitalik Buterin, Zoë Hitzig, and E. Glen Weyl in their paper titled A Flexible Design for Funding Public Goods. This formula is expressed in the paper as follows:

The authors explain further:

In a standard linear private market, the funding received by a provider is the sum of the contributions made by the funders. In our “Quadratic Finance” (QF) mechanism, the funding received by a provider is the square of the sum of the square roots of the contributions made by the funders. Holding fixed contribution amounts, funding thus grows with the square of the number of members.

The elements of the formula are included in the paper, but for those of us not hanging out in Genius Club with Vitalik, the following image from a blog post by Ishita Srivastava gives an example of its application, as does the video at wtfisqf.com.

Image credit: Ishita Srivastava

To understand the technical view of Quadratic Funding and voting, read Vitalik’s paper on the subject in his blog.

Introducing the Gitcoin Grants Stack

Gitcoin launched the first Quadratic Funding mechanism in early 2019 with the Gitcoin Grants program, which according to the Gitcoin website has since “generated $50+ million of funding”. Gitcoin’s latest initiative is the Gitcoin Grants Stack, which replaces the centrally run grant rounds and paves the way for other communities in the ecosystem to begin trying out the quadratic matching mechanism.

The new direction appears to have support from many communities in the web3 ecosystem as Gitcoin Grants is acknowledged as a strong driver of funding for projects with good market fit.

BanklessDAO Pilot Program

As detailed in the Forum post, the idea is to pilot “a gated BanklessDAO quadratic matching round in S7 with the intentions of testing the process, evaluating the results and presenting the analysis to the DAO for next steps in decentralised project funding.”

Part of the Grants Committee’s remit is seasonal project funding. Although project teams must first post on the Forum to ask the community’s feedback and achieve a level of consensus, it falls upon Grants Committee members to decide whether the amount of BANK requested is appropriate for the project’s anticipated market fit. It’s noted in the Forum post that while Grants Committee members are trusted members in the community, they are seldom investment experts.

According to the proposal, by running its own QF round the DAO will be able to “generate a strong signal on which of our projects have an early product market fit” reducing reliance on the Grants Committee and shifting the decision-making power to the Bankless community.

In the selection of which projects should be funded by the DAO for the pilot round, the proposal squad believes that limiting eligibility to projects previously funded by the DAO, which have run for more than two seasons, will enable us to establish which of these existing projects have good market fit. The idea is that the community can provide a strong signal of support to the projects they want to see continue through this retroactive donation of funds. It will be possible to donate with the BANK token.

Everything in Moderation

Running our own grants round will require that we nominate moderators to manage the configuration, administration, and distribution of the donations and matching funds. The suggestion from proposal authors is that “one or two members from governance and one or two members from Grants Committee be selected…to run the pilot on behalf of the DAO.”

One of the most important features of the Gitcoin Grants program is the ability to build in Sybil resistance via the Gitcoin Passport. The passport enables an individual to amass a collection of ‘stamps’ or verified credentials from various web2 and web3 ‘identity providers’. For this pilot, it’s suggested that anyone with a passport score of at least 21 is eligible to donate.

Prepare for Take Off

The Forum proposal is a request for 1.1 million BANK. The bulk of this (1 million BANK) will be used to create the matching pool, with the remainder to be distributed via Coordinape to those involved in administering the pilot. As one of the early adopters of the Gitcoin Grants Stack, it is anticipated that bDAO will receive a good amount of social media attention as well as being in a position to test and provide feedback on the user interface.

The poll associated with this proposal received 47 votes with 89% in favor. That means that the next step is review by the Grants Committee; if the BANK funding is approved, the pilot program will commence one week later.

This program has the potential to usher in a new era for BanklessDAO, altering the way in which new and existing projects are supported. Project teams who can develop ideas with mass-market appeal will be the big winners here, but we must be careful to consider the implications for teams designing projects on the cutting edge too. Stand by, passports ready, and let’s fly.


👀 In Case You Missed It

📺 Weekly Rollup Recap With Allyn Bryce

Allyn Bryce brings the magic, and this most recent recap is no exception. Catch up with last week’s Rollup and hear about BanklessDAO’s involvement with the new Collab.Land DAO.

You can find all the previous episodes on the BanklessDAO YouTube Channel. If you enjoy these videos please vote in support of the Weekly Rollup Recap S8 Funding Proposal.

📚 Bringing Crypto Education to the Masses

Bankless Africa teamed up with Bankless Academy to discuss the state of crypto education in Africa and to share details on how they are integrating Bankless Academy’s content on their website. Listen to this informative discussion, here.

📈 Season 7 Project KPI Measurements

All Project Champions with projects that were part of the seasonal funding program must report their mid-season KPIs to qualify for and receive the next tranche of funding. If you still need to submit your KPIs, you can do so in your project thread in the #grants-committee channel and tag your Grants Committee reviewer. If you don’t know who your reviewer is, please refer this document.


🍔 Grab It While It’s Hot

🏃🏽 BanklessDAO x Gritti Metathon

BanklessDAO has collaborated with Gritti for the upcoming Gritti Metathon in Paris. This Metathon aims to bring runners from around the world together using Gritti’s social fitness dApp. Sign up here to take part in this global running revolution!

👩‍🎨 d’Art Drops

Title: Greedy Paws
Artist: Dark World Arts
Description: Despite an abundance of resources available to sustain human growth and potential, all it takes is a few greedy hands to introduce scarcity and inequality into a system. We are fully experiencing this in the current financial system; unless we are diligent in our work, we will see this come to fruition on the blockchain as well. We have an opportunity for abundance in crypto; will we capitalize on that opportunity, or squander it?
Cost: 0.02 ETH
Editions: 100

🎙 BanklessDAO Podcasts

💰 Making Bank

🧠 Crypto Sapiens

🌍 Bankless Africa Podcasts

✍️ Bankless Publishing

🌏 Bankless Africa Newsletter

🗞 The Rug Newsletter

👩🏼‍💼 Bankless Consulting Newsletter

🗓 Set A Reminder

🏦 CopperX Demo — Blockchain Payment APIs for Businesses

CopperX offers blockchain payment APIs for businesses. To learn more about CopperX, join this demo in the Amphitheater on Wednesday, April 5 at 18:30 UTC. Learn how to start accepting crypto payments, recurring billing, invoices, and more with just seven lines of code.

👏 How To Coordinape

Coordinape is a platform that enables peers in the DAO to reward each other for their contributions. Join the Education Department on Tuesday, April 4 at 14:00 UTC in the watercooler voice channel to learn the basics of Coordinape. To set a reminder, RSVP to the event. Hop in 15 minutes before the event start to be onboarded to the Zep platform. Check the async learning resource here.

🛡️ Wallet/Security Knowledge Session

Understanding wallet mechanics and safety are fundamental in the web3 ecosystem to ensure your funds don’t get into the wrong hands. If you want to learn how to be safe regarding your web3 wallets, join the Education Department on Wednesday, April 5 at 14:00 UTC. Remember to hop in 15 minutes before the event start to be onboarded to the Zep platform. Check the async learning resource here.

🎇 How To Sobol

Sobol is a web-based platform that allows teams to govern themselves and run their organization according to their unique culture. If you want to know the organization of the DAO and how to find different information about roles, guilds, Notion pages, multi-sigs, and members of our community, RSVP to this Education Department event on Thursday, April 6 at 14:00 UTC in the watercooler voice channel. Hop in 15 minutes before the event start to be onboarded to the Zep platform. Also, check out the Ops Department’s Sobol Workstream for further training.


🤣 Meme of the Week