On Feb. 12, the crypto market achieved a new milestone by climbing above the $300 billion market capitalization mark for the first time in 6-months. This shows interest in the sector continues to grow as a steady flow of funds enter the space. Since the start of 2020, the crypto market cap has increased from $218.4 billion to $303.1 billion, a 65.92% increase. At the same time, Bitcoin’s (BTC) dominance rate dropped from 68% to 62%, which has allowed altcoins to pull off some amazing triple-digit rallies over the last 2 months.
Even now as Bitcoin price struggles to overcome the $10,500 resistance, several altcoins are continuing to rally in their BTC and USD pairs. Let’s take a look at some of the big performers of the day.
XRP price finally broke above the resistance at $0.30 and $0.31 and has since rallied more than 14%. The strong upside move was propelled by the highest surge in volume seen since May 13, 2019, when XRP price rocketed 56.25% as it climbed from $0.30 to $0.47 in one day. XRP has now set a higher high above the previous high at $0.3145 set on Nov. 6 as part of a tweezer top that saw the price sharply reverse to a two-year low at $0.175. Now that the key overhead resistances have been cleared, traders will likely set their short-term targets at $0.38 and $0.41
Tezos (XTZ) has been on a tear since Jan. 15 when the altcoin broke from its bottom in the $1.20-$1.30 range and started what has become a 183% parabolic rally to a new all-time high at $3.61. Currently, the XTZ rally has become over-extended after such a rapid move to a new high and at the time of publishing the altcoin has corrected 7.25% and is down 14.79% from its all-time high. As XTZ price bounced right at the 23.6% Fibonacci retracement level ($3.072) and traders will observe to see if the altcoin finds support and consolidates at the current level. It is worth mentioning that parabolic moves tend to forgo establishing strong support levels as the price swiftly surges significantly higher each day. This means that if traders book profits and shift their attention to other cryptos, or if Bitcoin sharply corrects, XTZ could quickly reverse course and retrace the entire up move.
Since bottoming at 0.00000400 satoshis on Jan. 14, Cardano (ADA) has performed excellently. The altcoin is up 71% off its 2019 and 2020 bottom and since crossing above the 200-day moving average on Jan. 12, the altcoin has rallied 37.09%. Traders will notice that above 0.00000682 satoshis there is limited pressure from sellers. This means all that is required is a heavy influx of volume to push the price higher in one massive candlestick. There is also a sizable gap in the volume profile visible range indicator (VPVR). If a high volume breakout occurs, ADA price could rally 53.47% to 0.000001041 satoshis.
Ether (ETH) continues to show that its price action is hinged to Bitcoin’s hip and rallied to a new 2020 high at $275 on Feb. 13. As discussed in a previous analysis, the price easily pushed through the take profit zones at $240 and $260. As Bitcoin traders work to push the digital asset to $10,500 and above, Ether price continues to climb and appears set to reach $300 over the coming hours. Traders will note the VPVR gap from $270 to $300. If bulls can push the price above $276 then a shot at $300 is on the cards.
After forming a double bottom at $7.73 on December 18, 2019, NEO has doubled its price to reach a 2020 high at $15.85. Since Jan. 1, the altcoin has rallied 88.37% and traders will now target $17.44 and $19.60. If NEO pushes above $20, $25 and $40 are on the next zones traders will look to. In the event of a pullback, traders will look for a bounce at the 21.6% Fibonacci retracement ($13.95) and below this $12.93. Generally, the support levels for NEO are closely aligned with the Fibonacci retracement levels so traders could follow the indicator if the altcoin’s price corrects.
Rumor That Russia Will Investigate an Allegedly Fraudulent TON Offering in UK
Shortly after lifting the country’s Telegram ban, Russian authorities began investigating potentially fraudulent offerings involving the company’s unlaunched token, Gram. The token was at one time meant to serve a new blockchain ecosystem known as the Telegram Open Network, or TON. Reports indicate that Russian prosecutors are set to investigate a British firm that allegedly sold fraudulent tokens related to Telegram’s terminated blockchain project. The news was reported on July 3 by the local news agency, Baza.io.
According to the report, the action was brought to a local investigative committee by “several Russian entrepreneurs” that claimed to have purchased $11.7 million in Gram tokens. Telegram CEO Pavel Durov officially announced closure of the TON project on May 12. At that time, the Russian investors reportedly attempted to terminate their contract with the British company. Allegedly having Russian roots itself, the unnamed British firm reportedly wrote off $1.5 million in commissions, having returned just $10.2 million to investors, according to Baza.
This news comes soon after Telegram apparently settled its long-running legal battle with American authorities over the company’s $1.7 billion initial coin offering, or ICO. The ICO involved roughly $400 million in investments from United States citizens. On June 26, the U.S. court’s final judgment required Telegram to return $1.2 billion to investors. Telegram purportedly has already repaid the amount, with some U.S. investors confirming that they received a 72% refund. This amount is in line with Telegram’s original reimbursement scheme.
Russia’s interest in Gram comes against the backdrop of some meaningful regulatory changes. After two years of unsuccessful efforts to block Telegram messenger in the country, Russian authorities suddenly decided to lift the ban on June 18. The decision came just a few weeks before Russia conducted a seven-day long constitutional vote — the results of which could potentially allow President Vladimir Putin to extend his 20-year rule until 2036.
Ethereum DeFi Breaks Records in June, However, Other Categories Are Suffering
Results for the second quarter of 2020 show tremendous growth for decentralized applications across all ecosystems, primarily spearheaded by Ethereum (ETH) decentralized finance, or DeFi. Decentralized exchanges were at the frontlines of the rise as Compound token mining activity trickled down to on-chain swapping solutions. According to Our Network, Curve was one of the biggest beneficiaries of yield farming as it helped users switch between different stablecoins to maximize yield.
Curve is an automated money market that only supports swaps between different types of stablecoins and wrapped tokens. This limitation allows Curve to provide competitive slippage and fees for exchanging assets. Deposits on Curve rose almost three-fold in June, while daily volume reached peaks of $60 million — 30 times more than its previous average. Demand for USDT pairs was the highest, capturing more than 58.5% of the total volume. This is due to USDT having one of the most significant COMP yields for an extended period of time. Uniswap also benefited from the COMP craze, with monthly volume doubling in June. Kyber and 0x had more modest performances: despite posting fresh monthly highs, the project’s growth was in line with the rest of the year.
According to DappRadar’s Q2 report, the dominance of DeFi indirectly led to the decline of gaming activity. Over $8 billion was transacted on DeFi platforms in Q2, which led to gas prices soaring exponentially. Ethereum’s vibrant gaming DApp ecosystem suffered as fees came to represent a significant portion of each transaction. DappRadar reported a staggering 79% decline of gaming-related activity on-chain over the previous quarter.
EOS appears to be the main recipient of Ethereum’s loss as its gaming transaction volume rose by about 80% since the previous quarter. While this is positive news for the platform, it still hasn’t fully recovered from the damage caused by the EIDOS airdrop in late 2019. Volumes remain well below the highs of Q2 2019. Finally, Tron (TRX) saw growth in its DeFi ecosystem after porting several Ethereum projects on its chain. In addition to the previously-launched clone of Single Collateral Dai, a platform named Oikos.cash recreated both Synthetix and Uniswap on Tron. Nevertheless, total volume for all Q2 is just $15 million. The majority of Tron’s activity remains in the gambling and “high-risk” categories.
EOSIO-Based Social Media Platform Voice Launches Ahead of Schedule
Voice, a blockchain-based social media project developed by EOS creator Block.One, briefly went live one day before its scheduled launch. Based on the open source EOSIO protocol, Voice aims to use Blockchain technology to create a trusted social experience, free from bots and fake accounts. Revealed in June 2019, the project uses biometric authentication technology to verify every account, limiting accounts to one-per-person and promising to protect user data.
Voice’s main page temporarily displayed several posts from different accounts which featured multiple likes and comments. As of press time, the website is no longer available. It now displays “Error 1020” instead, which specifies that the website is “using a security service to protect itself from online attacks.”. In early June, Zalatimo announced that the platform is set to roll out on U.S. Independence Day. He noted that only registered users would be able to publish content or engage online.
After revealing their plans for Voice in June 2019, EOS’ parent firm, Block.One, invested $150 million in Voice during March 2020. The investment was said to provide Voice with resources to operate independently from Block.One. Numerous blockchain-related social media projects have been released to date.
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