In the last week, 23 cryptocurrencies experienced notable gains against the U.S. dollar, with flare (FLR) and uniswap (UNI) leading the charge. Concurrently, dymension (DYM) and helium (HNT) saw significant declines over the same period. FLR and UNI Lead Gains in a Diverse Week for Cryptos, Despite DYM and HNT Setbacks As of now, the […]
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PRESS RELEASE. In an electrifying surge that has captured the attention of the cryptocurrency world, CardanoGPT (CGI) witnessed a remarkable 40% increase in value within just 24 hours, following the unveiling of OpenAI’s groundbreaking Sora and a significant profit jump for Nvidia, a company that produces chips that most AI companies use. This surge positions […]
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The price of Avalanche’s AVAX token has dipped by 11% in the past week, bucking the bullish trend in the broader cryptocurrency market. This comes amidst a $365 million unlocking event that increased the token’s circulating supply by 2.6%. Experts suggest both short-term challenges and long-term opportunities for AVAX.
Source: Token.Unlocks
Token.Unlocks data indicates that on Thursday, locked-up tokens valued at approximately $303 million will be released from vesting and put into circulation.
On February 15th, a significant unlocking event saw 9.5 million AVAX tokens, worth roughly $365 million, released from a vesting period. This influx of previously locked-up tokens coincided with a price decline for AVAX, which fell from $40.32 to its current price or nearly $37.
This aligns with historical trends, as a 2023 report by The Tie found that large unlocking events often lead to price drops within two weeks due to supply outpacing demand.
AVAX price in the red. Source: Coingecko
Despite the recent dip, some analysts remain optimistic about AVAX’s future. The Tie’s report, while acknowledging the short-term price pressure, highlights the Avalanche network’s growing activity, fueled by popular NFT collections like Dreamheadz and Dokyoworld. The increased engagement within the NFT space is seen as a positive indicator for long-term adoption and potential price appreciation.
TSM’s @theblitzapp Subnet launched, where all premium subscriptions on the platform now flow on-chain, with more features to come later in Q1
— Avalanche 🔺 (@avax) February 5, 2024
Furthermore, analysts point to AVAX’s outperformance compared to specific peers like Celestia and Solana in recent days. This suggests some resilience in the face of the unlocking event and potential buying pressure despite the overall price dip. Some analysts even predict a possible climb to the $40 mark by the end of February, although this remains speculative.
Avalanche (AVAX) is currently trading at $36.95. Chart: TradingView.com
It’s important to remember that the cryptocurrency market is inherently volatile, and AVAX’s price will be influenced by various factors beyond the unlocking event.
The overall market sentiment, regulatory changes, and broader economic trends can all play a significant role. Investors should conduct thorough research and consider their own risk tolerance before making any investment decisions.
AVAX price retreating today. Source: Coingecko
The recent unlocking event has undoubtedly impacted AVAX’s price in the short term. However, analysts remain divided on the token’s future trajectory. While some anticipate further price declines due to the increased supply, others highlight positive developments like the network’s growing NFT activity and potential for a rebound.
Featured image from Pixabay, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
This week, WLD token from the Worldcoin project soared by 142.7% against the U.S. dollar, topping the chart as the week’s most significant gainer. Hot on its heels was the digital currency bitget token (BGB), which saw an increase of just over 58% in the past week. Conversely, Astar (ASTR) experienced a decline of 6.4%, […]
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Uniswap, one of the world’s largest decentralized exchanges (DEX), is poised for significant growth with the upcoming launch of its V4 upgrade. This anticipated update will introduce custom Automated Market Maker (AMM) functionality directly on top of Uniswap, eliminating the need for separate AMM designs.
In addition, Uniswap’s governance token, UNI, has seen notable growth, with a 6.8% increase in the last 24 hours and an 8% increase in the previous 30 days, bringing the UNI token to $7.318.
However, while these developments favor the exchange and investors, decentralized finance (DeFi) researcher DeFi Ignas has raised concerns regarding the launch and its potential impact on critical features.
According to DeFi Ignas’ latest analysis on X (formerly Twitter), Uniswap V4 represents a significant transformation from a protocol to a platform. Like the Apple Store’s impact on the iPhone, Uniswap V4 will consolidate all pools into a single framework, reducing creation costs by 99% and enabling more cost-effective multi-pool swaps.
The introduction of the “Hooks” system is particularly noteworthy. These hooks act as plugins or extensions, allowing for customized code execution during crucial events within a pool.
The 13 available hooks enable various functionalities, including on-chain limit orders, time-weighted average market making, liquidity depositing into lending protocols, auto compound liquidity provider (LP) fees, and know-your-customer (KYC) integration.
Introducing hooks leads DeFi Ignas to believe that the launch of Uniswap V4 will allow developers to experiment and launch their protocols while leveraging Uniswap’s liquidity.
According to the researcher, this has the potential to attract even more liquidity from other decentralized exchanges and establish Uniswap as the dominant liquidity layer for all DeFi activities, from trading to lending.
Yet, while unified liquidity may benefit users by increasing market efficiency, it raises concerns about potential market concentration and stifling of competition.
Uniswap’s V4 liquidity sourcing could concentrate liquidity within the platform, potentially making it the go-to liquidity layer for DeFi. According to DeFi Ignas, this dominance, coupled with Uniswap’s operating license that prohibits forking until 2027, raises questions about market competition and the potential impact on decentralized finance.
In addition, reports suggest that Uniswap Labs has sent takedown notices to gateways of the InterPlanetary File System (IPFS) – a decentralized and distributed protocol designed to facilitate the storage and sharing of files on a peer-to-peer network – adding another layer of concern about decentralized access and censorship resistance.
Regarding the potential upside of Uniswap V4 acting as a catalyst for the exchange’s token, the research went on to suggest that while UNI’s value “accrual” for retail investors has been relatively modest, the introduction of Uniswap V4 and its hooks opens up new possibilities.
In this sense, DeFi Ignas believes the UNI token could function as a platform/ecosystem token, benefiting from third-party decentralized applications (dApps) developed using Uniswap’s hooks, expanding the token’s use cases and potentially attracting more investors.
Additionally, there is speculation that Uniswap may solidify its dominance and liquidity by launching its chain, potentially as a layer-two (L2) solution, which could further boost the valuation of the UNI token.
As the upgrade deadline for Uniswap approaches, the impact of the exchange’s upgrade on the UNI token remains uncertain. However, there has been a noticeable growth in the token’s value over the past few weeks.
After reaching a 17-month high of $8.260 in January, the token experienced a correction but has since broken out of that pattern. As the upgrade deadline draws near, it is yet to be determined whether the token can consolidate its gains and regain previous levels.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
A recent report by Messari sheds light on the state of the XRP Ledger (XRPL) and its notable performance during the fourth quarter (Q4) of 2023.
The report highlights significant milestones, including its native token market capitalization, distribution, burning mechanism, price movement, legal battle, and network activity.
As of Q4 2023, XRP, the native token of the XRPL, emerged as the sixth-largest cryptocurrency by market capitalization, reaching $33.7 billion. The token’s circulating market cap witnessed a substantial 21.2% increase quarter-over-quarter (QoQ) and an impressive 93.6% growth year-over-year (YoY).
According to Messari, the increase in market capitalization was primarily due to the distribution of 4 billion XRP and a significant price spike on November 13, when the token reached as high as $0.7503.
Throughout 2023, 4 billion tokens were distributed, accounting for 8% of the XRP supply from the end of 2022. While this distribution contributed to the increase in market cap, it was overshadowed by the impact of the price spike.
Additionally, the XRPL employs a transaction fee-burning mechanism, applying deflationary pressure to the total supply of 100 billion XRP. However, the low transaction fees on the network have resulted in a relatively low burn rate of approximately 12 million XRP since the inception of the XRP Ledger.
Q4 2023 marked a significant turning point for XRP, concluding a multi-year legal battle with the US Securities and Exchange Commission (SEC). In July 2023, the district court ruled that XRP is not considered an investment contract or a security, distinguishing it from many other blockchain assets.
This ruling triggered a surge in XRP’s price, with an increase of over 70% on July 14 and a peak of $0.82 on July 20. The subsequent relisting of XRP on major cryptocurrency exchanges further bolstered its position.
Network activity on the XRPLedger displayed mixed trends in Q4. While active addresses decreased by 31.3% QoQ, transactions increased by 22.7% QoQ.
Notably, a significant portion of transaction activity originated from a group of accounts sending transactions to a single account for inscription-related activity. The number of accounts on the XRPL increased by 188,000, reaching 5.00 million in Q4.
Overall, the Q4 2023 report on the XRP Ledger showcases its growth, driven by various factors such as price spikes, legal victories, and network activity. With its expanding market capitalization and increasing adoption, XRP continues to solidify its position in the cryptocurrency market.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Chainlink’s LINK token has surged to a five-month high in exchange balance, marking a notable uptick in inflows for the first time this year.
The Glassnode charts below show that approximately $75 million worth of LINK has flooded onto cryptocurrency trading platforms since Feb. 1. Consequently, its exchange balance has surged to around 120 million tokens.
A rising exchange balance traditionally signals investors gearing up to offload their crypto holdings. Such inflows typically indicate selling pressure, a bearish sign of potential price declines.
However, this recent surge in balance might be attributed to investors seizing opportunities amidst the recent price surge in the Oracle network. According to CryptoSlate’s data, LINK’s price jumped by more than 23% over the past week, peaking at a two-year high of $19.75.
Nonetheless, amid a broader market downturn, its value has seen a slight dip of around 4% to $18.68 as of press time.
Meanwhile, this slight price correction has proven attractive for a whale address aggressively acquiring the LINK token. Blockchain analyst Lookonchain noted that an unnamed institution, using 47 fresh wallets, withdrew more than 2.2 million LINK units worth approximately $42 million from Binance in the past two days.
Chainlink RWA tokenization venture
Meanwhile, this market dynamic is occurring amid a notable uptick in Chainlink’s Cross-Chain Interoperability Protocol (CCIP) technology adoption for real-world asset (RWA) tokenization.
Last December, the blockchain network revealed that it would look to bridge the gap between traditional finance and blockchain technology through RWA, pointing out that the sector is estimated to be a $16 trillion business opportunity by 2030.
As a result, the network has pushed for partnerships with several traditional firms, including the Society for Worldwide Interbank Transfers (SWIFT), South Korean gaming giant Wemade, and the New Zealand Banking Group. The network has also scored significant integrations with blockchain projects like Base and Circle’s USDC stablecoin.
The Solana Foundation, a non-profit organization dedicated to decentralization, adoption, and security on the Solana network, has launched token extensions.
According to a January 24 announcement, token extensions provide developers, enterprises, financial institutions, and Solana-native development teams with a comprehensive suite of turnkey solutions for advanced token functionality. Anatoly Yakovenko, co-founder of Solana and CEO of Solana Labs, commented on the launch, stating:
Token extensions build on the characteristics that make Solana the ideal destination for developers. Solana is the first network to offer this level of integrated developer and user experience in a single token program. We’re already seeing the potential to build using token extensions via deployments from some of the most recognizable names in crypto.
Industry giants Paxos and GMO-Z.com Trust Company Inc. (GMO Trust) are leading the way in adopting token extensions. As announced by the Solana Foundation, these companies are “leveraging the benefits” of token extensions to issue stablecoins on the Solana blockchain.
As previously reported, Paxos, a regulated blockchain and tokenization infrastructure platform, expanded its stablecoin issuance to the network in December. Similarly, GMO Trust announced the launch of the first regulated Japanese yen stablecoin and their own US dollar stablecoin on the Solana network.
Sheraz Shere, Head of Payments at the Solana Foundation, emphasized the appeal of the Solana network for enterprise-grade companies entering the web3 space. Shere stated:
Companies like Visa, Worldpay, Stripe, Google, and Shopify have already seen the performance advantages inherent to the Solana network and have launched solutions and applications that are only possible on Solana. With token extensions, we are expanding what is possible for enterprise adoption of blockchain by natively enabling features that matter to large regulated enterprises.
Token extensions, designed to cater to builders across diverse industries such as stablecoins, real-world assets (RWA), and payments, offer a range of interesting features:
Ultimately, with the launch of token extensions, Solana aims to position itself as a force in blockchain development, offering builders the tools to create new applications across various industries.
The SOL token experienced a sharp drop of over 28% in the past 30 days, leading to a decline to the $79 level. However, the token has recovered in the past 24 hours with a 5% bounce, leading to a current trading price of $87.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The DYDX token, the native token of the decentralized trading platform dYdX Chain, is trading above $3 for the first time this year after the platform became the largest DEX by daily volume.
Data from CoinMarketCap shows that the platform’s v4 version, based on the interchain protocol Cosmos, achieved an impressive 24-hour trading volume of nearly $565.85 million. This surpassed Uniswap v3’s Ethereum market, which recorded a volume of $458.46 million in the same timeframe.
When dYdX’s v4 trading activities are broken down, the most traded pairs include Ethereum/USD, Bitcoin/USD, and Solana/USD, with volumes of $155 million, $131 million, and $91 million, respectively. The cumulative open interest for these pairs on the platform reached around $26 million.
The dYdX Foundation highlighted that this milestone was achieved in under two months since the activation of Full Trading. Last November, the platform transitioned from its Beta Stage to Full Trading, raising initial concerns about user and market migration from Ethereum to the new blockchain.
Early indications, however, dismiss these concerns. On Jan. 12, the dYdX Chain reached a remarkable $1 billion milestone in 24-hour trading volume, emphasizing the platform’s robust performance and user adoption.
Notably, dYdX’s v3 Ethereum market, which is still active, also ranks among the top three DEXs. The v3 has had a trading volume of approximately $405.9 million in the past day.
DYDX’s notable trading volume milestone propelled its token’s value to over $3 for the first time this year—a remarkable 7% increase within the last 24 hours.
Data from CoinMarketCap highlights a previous dip in the digital asset’s value to $2.36 earlier this year. Nevertheless, it has experienced a consistent upward trend over the past week, boasting a gain exceeding 10%.
Despite this positive momentum, potential challenges lie ahead for the crypto token. Token Unlocks data reveals a looming sell pressure, with approximately $2 million worth of assets poised to be unlocked in the coming week.
The post dYdX native token surpasses $3 as it becomes top DEX by daily volume appeared first on CryptoSlate.
Ethereum Name Service’s native token ENS surged over 40% on Jan. 3 after Ethereum co-founder Vitalik Buterin spoke positively about the platform and said it was “super important” for the ETH ecosystem.
As of press time, ENS was trading at approximately $13.94, up 40.38% over the last 24 hours. The token has a market cap of around $423.20 million.
The token’s trading volume over the same period stood at roughly $364.28 million, indicating a high level of market activity.
Addresses linked to Ethereum names collectively control around $277 million in various cryptocurrencies, including ether, wrapped ether, USDC, and Uniswap tokens. The large sum is indicative of substantial financial activity within the ENS ecosystem.
Buterin’s endorsement of ENS, describing it as “super important,” has played a pivotal role in the upward trend.
He believes that Layer-2 blockchains must integrate ENS domains to enhance the user experience in decentralized finance (DeFi) as they need a trustless, Merkle-proof-based CCIP resolver. Such integration would allow ENS subdomains to be registerable, updatable, and readable directly on Layer-2 platforms.
Buterin also recently proposed a new tax on ENS domain names, aiming to ensure broader brand adoption and decentralized ownership of ENS addresses. The proposed tax involves a 3% annual fee based on the highest bid for a domain name.
This fee model is intended to discourage the hoarding of domain names for profit and encourage their use by entities who will actively use them, thus promoting wider adoption and potentially benefiting ENS token holders as the funds from these fees would support the DAO (Decentralized Autonomous Organization) associated with ENS.
Buterin also previously suggested alternatives to Harberger taxing ENS domains in 2022.
Instead of Harberger’s model, where asset owners set their asset’s value and pay a percentage of it in yearly taxes, Buterin proposed a demand-based recurring pricing model.
This model would see annual domain fees rise in proportion to a domain’s valuation, which in turn would increase based on open bids made by other users. The goal of this approach is to create a fairer and more dynamic pricing mechanism that reflects the actual demand and value of ENS domain names.
