Day: April 21, 2023

SEC Crypto Regulation Rumors Do Little To Dampen Enthusiasm as Metacade Raises $16.4 Million Before April Exchange Launches

GameFi is an area of innovation within the blockchain gaming space that generates a lot of buzz and excitement, and none more so than for newcomer Metacade. GameFi, short for gaming finance, combines the world of gaming with decentralized finance (DeFi) to create a new type of gaming experience, allowing gamers to earn crypto while playing games — creating a new revenue stream for the gaming community and a new way to profit from the gaming industry for investors.

The potential for GameFi is immense, with the global gaming industry expected to be valued at over $250 billion by 2025. The combination of gaming and finance is a natural fit, as both rely heavily on community engagement and user adoption. The GameFi market is still in its infancy. Still, it is expected to proliferate in the coming years, attracting more gamers from the traditional gaming sector and putting Metacade in a fantastic position for growth.

Could crypto regulation help Metacade’s price growth?

While clarity on crypto regulation is still lacking in the crypto space, the SEC is expected to provide more guidance in the coming months. This crypto regulation uncertainty has caused some concern for investors. Still, the hope is that more explicit guidelines will ultimately lead to a more stable and mature crypto market that will benefit innovative projects like Metacade.

Metacade is forging ahead with its plans for the future of GameFi. The platform’s comprehensive offering, which includes several earning mechanisms beyond the game zone, is reported to have caught the attention of many crypto whales in the space. With its recent exchange listings and growing gaming community, Metacade is well-positioned to become a leading name in the GameFi space and could gain a boost from any forthcoming regulatory transparency.

What is Metacade?

Metacade is the first community-centered play-to-earn (P2E) gaming arcade built on blockchain. It will offer various games covering a wide range of genres and styles, all specifically developed for the platform with integrated earning potential for users. Metacade also plans to become a central hub for Web3 users, offering competitive gaming, job opportunities, and rewards for content creators.

This approach gives Metacade a strong chance of putting itself at the heart of the GameFi movement and, in doing so, offers investors a fantastic opportunity to capitalize on the high potential of the project in a burgeoning market.

How does MCADE work?

The MCADE token powers the rewards system and is the platform’s currency. It also offers staking opportunities (although currently fully subscribed), allowing investors to earn a passive yield and also vote in governance proposals for the project. The platform offers both casual and competitive gameplay, with users able to play solo while earning MCADE tokens or join paid entry tournaments to win substantial prizes.

Metacade’s innovative features go beyond its online arcade. It bestows content creators with MCADE token rewards for contributing to the community hub, which can include posting game reviews, sharing alpha, or engaging with the community — guaranteeing a high level of user retention.

Another prominent feature is the Metagrants program, which provides early-stage funding to promising new game developments on the blockchain. The community can vote to decide which new games shine before Metacade provides a Metagrant to help bring the idea to life. This feature is expected to drive innovation in the blockchain gaming sector while helping to support developers during their early stages.

Can MCADE shoot for the moon?

Investors anticipate significant returns from buying in the early stages of the project. While the presale saw the price of MCADE rise from $0.008 to $0.022 over its quickly sold-out phases, many believe there is a tremendous amount of growth still to come. The Metacade platform has the potential to become a leading name in the blockchain gaming space thanks to its unique offering, and its embedded utility could push the price of its utility token continually upwards over the next few years.

Metacade has already launched on Uniswap and Bitmart in April and is due to list on MEXC in early May, while its recent addition to CoinMarketCap, the popular cryptocurrency market aggregator website, will likely drive an increasing awareness of the project moving forward.

All this has many market analysts predicting a considerable amount of future price growth for the token, and MCADE could even smash through the $1 barrier by the end of 2023.

Is MCADE worth buying?

With the success of its presale and upcoming further exchange listings, Metacade is entering an exciting phase of price discovery. The platform’s unique features and growth potential make it an attractive investment opportunity for those interested in Web3 blockchain gaming.

Investors can purchase MCADE on UniSwap and Bitmart, with the MEXC listing adding a further exchange option in May. With a growing community and increasing interest in P2E gaming, MCADE has the potential to be a profitable investment for those looking to diversify their portfolio ahead of improved crypto regulation, hopefully this year.

You can learn more about how to buy Metacade here.

The post SEC Crypto Regulation Rumors Do Little To Dampen Enthusiasm as Metacade Raises $16.4 Million Before April Exchange Launches appeared first on CoinJournal.

Dormant Bitcoin wallet with $31 million BTC activates after 10 years

A dormant wallet from 2012 has woken up and moved 279 BTC.
According to on-chain data, the Satoshi era wallet holds 1,128 Bitcoin worth $31.6 million.
The wallet last transacted when Bitcoin prices ranged in the $12 to $95 zone. 

While Bitcoin price continues to flirt with $28,000 after this week’s slump from $30,000, a new development related to the leading cryptocurrency has been observed.

Dormant wallet wakes up and moves 279 BTC

According to on-chain details shared by crypto account Whale Alert, a BTC wallet that has been dormant for over 10 years just reawakened.  The Satoshi era wallet reportedly holds 1,128 bitcoin worth approximately $31.6 million.

💤 💤 💤 💤 A dormant address containing 1,128 #BTC (31,587,849 USD) has just been activated after 10.5 years!https://t.co/W87gdQJ0lo

— Whale Alert (@whale_alert) April 21, 2023

And the dormant wallet has made some quick moves, with 279 BTC of the assets being moved to three new addresses in the past 24 hours. On-chain smart money platform Lookonchain tweeted:

“A whale with 1,128 $BTC ($31.6M) that has been dormant for 10 years transferred 279 $BTC ($7.8M) to 3 new addresses just now. The whale received 1,128 $BTC in October 2012 and May 2013, when prices were $12 and $195.”

A whale with 1,128 $BTC($31.6M) that has been dormant for 10 years transferred 279 $BTC($7.8M) to 3 new addresses just now.

The whale received 1,128 $BTC in October 2012 and May 2013, when prices were $12 and $195.https://t.co/2MxnVzcEMl pic.twitter.com/2GM7Oq4e2P

— Lookonchain (@lookonchain) April 21, 2023

Bitcoin price reached highs of $69,000 in November 2021, meaning the wallet would have been even richer had it activated then. While the sudden activity and why it happened remains to be unearthed, crypto twitter is reacting to the news with speculation that it is possible someone just found their seed phrase.

The post Dormant Bitcoin wallet with $31 million BTC activates after 10 years appeared first on CoinJournal.

Rocket Pool price dumped as whales sold at the local top

The price of Rocket Pool (RPL) faces fresh downside pressure near $45, with bulls’ attempting to turn the level into a new primary support zone. As of 12.50 pm ET on Friday, the RPL token was trading around $46.60 – about 2.4% down in the past 24 hours.

RPL is one of the altcoins that rallied hard as Ethereum activated the Shapella upgrade.

RPL price- data shows whales sold right at the local top

As CoinJournal highlighted on 14 April, Rocket Pool, Arbitrum and Loopring were among the altcoins to swell as Ethereum (ETH) broke out to $2,100 after the Shapella upgrade. The profit pivot to altcoins saw Rocket Pool’s RPL soar past its previous peak, amid increased buying pressure as the Atlas upgrade inched closer.

According to on-chain data from crypto market intelligence platform Santiment, the Rocket Pool price dumped as whales took profits right at the local top.

On 16 April 2023, RPL price rose to its all-time high of $61.87 before the momentum faded. Santiment says the cryptocurrency continues to see large whale volumes to add to the 70 that involved more than $100,000 worth of RPL.

The 70 transactions signaled the top for Rocket Pool price and is the second largest whale dump for RPL after the 111 large transactions involving more than $100k on 8 November 2021. At the time, RPL price had hit its then ATH of $59.47, Santiment noted.

🐋🚀 #Rocketpool whales perfectly signaled the top as they took profit just after the asset’s #AllTimeHigh at $61.87. The 70 $100k+ transactions was the 2nd largest behind the 111 $RPL transfers made on Nov. 8, 2021 in the midst of the then #ATH $59.47. https://t.co/mzVc8iI5yT pic.twitter.com/CampspI2zR

— Santiment (@santimentfeed) April 21, 2023

Rocket Pool price prediction

Although Rocket Pool’s native token is up 14% over the past month, declines over the last two days have seen RPL/USD shed more than 25% from its recently hit all-time high.

In terms of short term Rocket Pool price prediction, further weakness in the Rocket Pool market could see the token’s price hurtle towards $38 or lower.

The post Rocket Pool price dumped as whales sold at the local top appeared first on CoinJournal.

How the crypto market affects the iGaming industry

Have you ever thought about how the cryptocurrency market influences your preferred online gambling games? This virtual form of currency, introduced in 2009, has taken over the gaming industry with its potential to make deposits and withdrawals faster and more securely without any associated cost.

As cryptos continue advancing on their path, they are also transforming all aspects of iGaming. Below are all the details regarding this meteoric phenomenon that is revolutionizing digital casino entertainment as we know it.

The Emergence of Crypto-Based Online Casinos

As the crypto revolution doesn’t seem to be stopping anytime soon, more online operators like Joe Fortune Bitcoin Casino are seeing its potential and various benefits. This is why a lot of iGaming sites choose specifically Bitcoin as their only acceptable form of payment or introduce other digital coins such as Ethereum, Litecoin, Tron, Ripple, etc.

There are several reasons why these casinos are gaining in popularity:

Anonymity. Bitcoin payments don’t require players to divulge any private or personal details, making it a great way for gamers who value their privacy.  As crypto gambling sites don’t save the sensitive financial information of their players this also adds an extra layer of security.
Speed & lower fees. This is one advantage that attracted many casino customers in the first place since cryptocurrencies allow instant transfers with relatively low fees compared to traditional online payment methods such as Visa and Mastercard credit/debit cards or e-wallets like PayPal.
Global accessibility. Bitcoin transactions lack geographical limitations because cryptocurrency sends across jurisdictional boundaries. It makes it a really attractive choice for those who live far away or are residing in countries whose legal system restricts regular iGaming activities. 
Provably fair games. Online casinos using cryptos tend to offer provable fairness games meaning that gamers can verify whether results were generated randomly after each bet by comparing server seed hashes (which must be accessible). That being said, playing on these platforms allows members peace of mind knowing they will get fair outcomes based on the implemented algorithms.

https://www.bestuscasinos.org/app/uploads/2022/05/crypto-online-casinos.png 

While these features make crypto-based gaming sites attractive, their novelty means that the selection of games is limited and, in many cases, still doesn’t offer top titles such as live dealer roulette or slots jackpot. 

However, there are more and more sites focused on crypto gambling that come with a wider range of choices.

Blockchain-Based Gaming Platforms

We have discussed digital coins influencing the industry, but blockchain technology is also entering iGaming. Several platforms use this innovation to focus on games based on the distributed ledger for an enhanced gaming experience with numerous features such as immutable transactions, increased transparency for users, and more secure data records.

The most significant advantages are: 

Transparency. As blockchain processing is transparent with regard to asset verification and authentication of all the entities involved in a transaction (from both sides), gamers can rest assured that everything takes place in a secure and transparent manner. 
Ownership & tradeability. Blockchain-based platforms such as popular Ethereum casinos offer their players ownership of in-game assets (avatars, weapons, etc) which can be further exchanged and traded privately or sold on the open market. 
Reduced fraud. As all of the members’ interaction data and proof are stored on publicly distributed ledgers, it makes it impossible to edit them after a bet has been placed or money deposited in an account, reducing cases of fraudulent activities almost completely. 

https://smartbettingguide.com/app/uploads/2021/08/crypto-bet.jpg 

Many things that seemed impossible in the past can now be achieved thanks to iGaming blockchain developments. We can expect to see huge technological advances in the coming years using computer processing power, AI, and machine learning, so users can have access to never-seen experiences. 

The Adoption of Tokenization and Initial Coin Offerings (ICOs) in iGaming

Tokenization and the issuance of ICOs have gained immense traction in various industries. As part of this new ecosystem, iGaming companies have started recognizing its potential by issuing their own tokens.

Nowadays, it’s not uncommon to come across a new online casino created with an Initial Coin Offering (ICO). These sites issue their coins and insist on exclusive transactions made in those cryptos. Such casinos have the benefit for operators since they can easily monetize their platform through coin sales as well as increased customer loyalty via buybacks and other buyer rewards.

The main advantage, from a player’s point of view, is that these tokens are liquid and aren’t tied to any third-party service or payment processor. This basically means one could easily convert their coins into different cryptos like Bitcoin, Ethereum, etc., or even cash them out to their bank account.

https://wp-api.zipmex.com/wp-content/uploads/2021/11/shutterstock_1050181010-1.jpg 

For gaming platforms, it means access to a global pool of investors – an advantage that could potentially lead to more funds and yields for projects instead of relying on venture capitalists or angel investors. For instance, the most successful ICOs can raise millions in minutes. 

Conclusion

The crypto market has significantly impacted the iGaming industry, from the emergence of crypto-based online casinos to integrating cryptocurrencies into traditional iGaming platforms. Developing blockchain-based gaming platforms and adopting tokenization and ICOs for fundraising have also shaped the industry’s landscape.

While regulatory challenges remain, the potential for further innovation and growth in the iGaming sector through the continued influence of the crypto market is undeniable.

The post How the crypto market affects the iGaming industry appeared first on CoinJournal.

MiCA constitutes a new era for crypto, Swarm co-founder Philipp Pieper says

The European Parliament’s approval of the Markets in Crypto Act, MiCA regulation continues to be hailed as a watershed moment for the crypto space, particularly for Europe.

Commenting on the development, Philipp Pieper, co-founder of Swarm, a regulated DeFi platform that’s a member of Germany’s Digital Finance Forum, says the legislation is a new beginning for crypto.

A new era for global crypto has begun and Europe, for a change, has just become the leading innovator in the industry,” the Swarm co-founder noted in a statement shared with CoinJournal. 

MiCA creates clear and unambiguous rules for crypto

As we reported on Thursday, EU lawmakers’ nod for MiCA saw the bloc become the first major global jurisdiction to have a comprehensive regulation framework for crypto. 

Many within the digital assets space say the law offers a clear way forward for exchanges and other platforms, with investor protection measures clearly spelled out.

The passing of the MiCA regulation has created clear and unambiguous guidelines for crypto companies across the European market… Most importantly, crypto investors now have far more security and won’t be left holding the bag when companies collapse due to dodgy business practices,” Pieper noted as he added his voice to the matter.

While the devil could be in the details, Pieper believes the legislation establishes Europe as the world’s blockchain hub. With the regulatory environment supportive of crypto innovation, it’s possible that Europe outpaces peers in markets still mired in regulatory uncertainty.

According to Pieper, MiCA’s implementation “shouldn’t be viewed as a bad thing,” but rather as a positive step for crypto companies within the EU bloc. Those with a clear framework within which to operate will march forward confidently, something that cannot be said for US-based counterparts. 

It’s a “first-mover advantage” that companies like Swarm will certainly benefit from after having embraced regulation from the beginning. Swarm is regulated by Germany’s BaFin, and offers customers a chance to trade Real World Assets (RWAs) on-chain.

Regulation now a part of crypto

Looking ahead to MiCA implementation, Pieper says any pains likely to come from the new law will form part of the “growing” process for crypto. He opines that with things changing fast, regulation has become a necessary part of the industry’s growth.

While some parts of crypto have an anti-government ethos, regulations are now a fact and resisting is no longer feasible,” he commented. “We know anecdotally there are roughly 300 organizations that are affected by this and need to register. The impending significant bottleneck and the potential of having to pause business operations is now very real for these organizations.” 

The US is being left behind

As Pieper rightly pointed out, the US is seen to be lagging Europe when it comes to crypto regulation .In deed, as CoinJournal highlighted, a senior UK minister recently indicated it could release its own crypto rules within a year.

Across the Atlantic, this week’s fiasco that was SEC Chair Gary Gensler’s responses on the subject of crypto at a Congressional hearing left many unimpressed. The SEC chief’s lack of clarity when handling some of the questions has been heavily criticised. 

Messari founder Ryan Selkis called the hearing a “train wreck” in relation to Gensler’s responses.

1/ It’s been 24 hours to reflect on Chair Gensler’s absolute train wreck of an oversight hearing yesterday.

Schadenfreude is satisfying, but here’s the substance of how ineffective, and out-of-touch the Biden admin’s financial regulators are right now.

— Ryan Selkis 🪳 (@twobitidiot) April 19, 2023

Some of the other most scathing comments came from Congressional Republicans, who have pointed out that the SEC cannot ask exchanges, for instance, to “come in and register” when there are no clear guidelines on the process.

Coinbase CEO Brian Armstrong shared his frustration at the lack of clarity this week, noting the US-based crypto exchange could relocate its base if the American regulatory environment remained as it is. 

The post MiCA constitutes a new era for crypto, Swarm co-founder Philipp Pieper says appeared first on CoinJournal.

Polymesh price trending after onboarding Binance as node operator

Polymesh Network yesterday announced that Binance has become a node operator.
The price of POLYX has been skyrocketing since the news broke.
At press time, POLYX was trading at $0.2493, up 15.82% in the last 24 hours.

Polymesh price has been surging since yesterday night after Polymesh Network announced that Binance had become a node operator on its layer 1 blockchain.

POLYX price surged to a daily high of $0.3013 a few hours after the announcement setting in place a Bull Run despite the fact that the token has since retraced to its current price.

What Binance becoming a node operator means

Binance is currently the world’s largest cryptocurrency exchange by trading volume. After becoming a Polymesh Network node operator, POLYX holders will be able to stake their tokens through Binance by the end of the week.

The exchange joins Polymesh’s 17 existing node operators.

As a node operator, Binance will help in running the Polymesh blockchain, certifying transactions before adding the new blocks on the blockchain. It will directly provide staking services to POLYX holders letting them reap rewards on their tokens.

Graeme Moore, the head of tokenization at Polymesh, in a press release on Thursday while announcing the partnership with Binance said:

“Onboarding Binance as the newest node operator provides Polymesh with a massive boost in visibility, credibility, and security.”

According to Polymesh’s leadership, the aim of Binance’s partnership is to advance Polymesh’s mission of making regulated asset trading more accessible to more clients.

The post Polymesh price trending after onboarding Binance as node operator appeared first on CoinJournal.

Crypto price prediction: The Graph, BitTorrent, Toncoin

Bitcoin price has pulled back in the past few days as the recent bullish momentum faded. The shake-up has seen the coin retreat in the past three straight days to reach a low of April 9. This decline led to a sharp decline in other coins. In this crypto price prediction, we will focus on The Graph (GRT), Toncoin (TON), and BitTorrent (BTT)

The Graph price prediction

The Graph’s GRT price jumped to a high of $0.23 in February as traction of AI tokens jumped. It has now pulled back in the past few months as it fell by more than 37%. This week, GRT dropped below the key resistance point at $0.1586, the highest point on August 8 of this year.

The Graph has moved slightly below the 25-day and 50-day exponential moving averages while the MACD has moved slightly below the neutral point at zero. A closer look shows that it has formed a small triple-top pattern, which is usually a bearish sign. The neckline of this pattern is at $0.1044.

Therefore, the outlook of the token is bearish, with the next key support level to watch being at the $0.1044, which is about 26% below the current level. On the flip side, a move above the key resistance point at $0.17 will signal that there are more buyers, which will push it to the next resistance point at $0.2315.

How to buy The Graph token

Bitstamp

Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.


Buy GRT with Bitstamp today

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.


Buy GRT with Binance today

Toncoin price prediction

Toncoin is a cryptocurrency that was created by Telegram, the giant social media company. On the four-hour chart, we see that the TON price has been in a bullish trend in the past few weeks. Along the way, it has formed an ascending channel that is shown in green. It is between this ascending channel. 

Toncoin has moved to the 25-period moving average while the MACD has moved below the neutral point. Therefore, there is a likelihood that the coin will remain in this range during the weekend. The key support and resistance points to watch will be at $2.20 and $2.37, respectively.

How to buy Ton

BitTorrent price prediction

BitTorrent price jumped sharply this week and then quickly retreated. It jumped to a high of $0.00000091 and then fell to a low of $0.00000063. On the 4H chart, we see that the token has moved below the key support at $0.00000070, the highest point on March 14th. 

BitTorrent has moved slightly below the 25-period and 50-period moving averages while the MACD has moved below the neutral point. Therefore, there is a likelihood that the token will continue falling as sellers target the key support at $0.00000060.

How to buy BitTorrent

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.


Buy BTT with Binance today

Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices.

It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform.

Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.


Buy BTT with Skilling today


The post Crypto price prediction: The Graph, BitTorrent, Toncoin appeared first on CoinJournal.

Dogecoin price prediction amid a new rejection at $0.1

Dogecoin is unable to break above the $0.1 resistance level
It failed to rally in 2023
If Bitcoin gives up some of its 2023 gains, Dogecoin should retest the lows

Dogecoin is the 9th cryptocurrency in terms of market capitalization, and it had quite a day yesterday. It jumped 5% as Elon Musk, CEO of Tesla and SpaceX, tweeted that the Starship launch may take place on Doge Day.

But that spike was not enough for a sustained bullish run. In fact, Dogecoin is down over 8% in the last 24h, as the $0.1 level still provides stiff resistance.

So what to expect from Dogecoin price moving forward? What does technical analysis say?

Dogecoin chart by TradingView

Dogecoin remains bearish while below $0.1

Dogecoin price soared 23,000% in 2021 in what appeared to be a rally that will never stop. But the market formed a contracting triangle that acted as a reversal pattern.

By the end of the same year, Dogecoin had given up most of its gains. However, as it turned out to be, it was only the beginning of a bear market that lasted into 2022 and beyond.

Since the start of 2023, leading cryptocurrencies like Bitcoin saw their price surging. Unfortunately, it was not the case with Dogecoin, which still finds stiff resistance at $0.1.

Therefore, while below resistance, the bias remains bearish. What if Bitcoin corrects from the 2023 highs? If it does so, then Dogecoin will eye a new test at the all-important $0.05 support level.

The post Dogecoin price prediction amid a new rejection at $0.1 appeared first on CoinJournal.

ETH on exchanges at 5-year low as capital continues to flee crypto

Key Takeaways

Only 15% of ETH is on exchanges, the lowest number in 5 years 
Drop has been swift since staking opened up in late 2020
Bitcoin and stablecoins have also fled exchanges, meaning liqudiity is thin
Volatility has risen as a result, with aggressive moves to the downside also possible, despite bullish first quarter for market as a whole

Ethereum has had an eventful few years. 

Obviously, it was tossed around violently in line with the rest of the crypto market. Bouncing around the $100 or $200 levels for a lot of 2018 to 2020, it suddenly thrust upwards during the pandemic, getting close to $5,0000 in late 2021 before crashing back down below $1,000. 

Crypto is fleeing exchanges

While price is all there is to talk about for the vast majority of crypto projects,  I don’t want to focus on that here. Let’s look at the supply of ETH on the market.

I published a deep dive recently looking at how capital has fled the crypto markets at large, with 45% of the stablecoin balance on exchanges exiting in the last four months, the toal balance now the lowest since October 2021. 

This pattern is being followed with cryptocurrencies across the board. Bitcoin has only 11.8% of its supply on exchanges, the lowest since the bull market top five years ago. Looking at Ethereum, there has been a rapid decline in the supply on exchanges, now the lowest in 5 years at 18.1 million ETH. 

Or, looking at the percentage of the total supply, there is now only 15% of ETH on exchanges. 

Ethereum staking could change all this

With Ethereum, however, there is an elephant in the room. Namely, the ETH staking contract that was opened up in November 2020. This allowed users to lock up their ETH in anticipation of the Merge, Ethereum’s transition to a proof-of-stake network, which eventually went live last September. 

Stakers only got access to their tokens last week, however, as the Shanghai upgrade went live. And when you plot the amount of ETH locked up in the staking contract compared to the ETH on exchanges, it is a clear factor. 

Nonetheless, that ETH is now live again. Or at least, stakers can choose to withdraw it if they like. The early diagnosis is that there hasn’t been any extra selling pressure, with ETH leading the crypto market post-Shanghai and breaking past the $2,000 barrier for the first time since May 2022, the month the infamous UST collapsed and sent the crypto market into a tailspin. 

Lack of supply ramping up volatility

The thin amount of ETH on exchanges, in addition to the sparse amount of Bitcoin and stablecoins, is kicking up crypto volatility so much higher. 

This is part of the reason that the market has bounced so sharply in the first quarter of the year. The more optimistic forecast on the Federal Reserve’s interest policy provided the impetus, and with so little capital in the market, it hasn’t been hard to move prices. 

At the end of the day, a price is just a bid finding an ask. And with much fewer bids and asks out there, it’s easy to see why prices have been so sensitive. 

It is tempting to conclude that the stingy supply is bullish for holders of these coins (and in the short-term, while the market is rising, it is – as we have seen with prices so easy to move recently). But on a bigger picture, this is not a good thing. 

Firstly, the opposite is also true – thin liquidity exacerbates moves to the downside as well as the upside, so if the market turns, there is far less to absorb the selling pressure, meaning the surge we have seen in the past couple of months can be reversed easier than normal.

But overall, crypto needs liquidity. The asset class is aiming to establish itself as a reputable brach of the financial economy. It needs a liquid market to buy and sell, and capital moving out of the space is not a good thing. 

The post ETH on exchanges at 5-year low as capital continues to flee crypto appeared first on CoinJournal.


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