21Shares Enters the US with new Crypto Product Launches

Key Insights:

  • 21Shares entered the US market this week, with the launch of two cryptocurrency exchange-traded products (ETPs).
  • Last week, the firm launched the first Bitcoin (BTC) and Ethereum (ETH) ETFs in Australia.
  • 21Shares built the first crypto ETP on the Six Swiss Exchange in 2018.

21Shares has enjoyed a strong European presence in recent years as the acceptance and adoption of digital assets gather momentum. ETP and ETF products have drawn plenty of investor interest.

In 2018, 21Shares rolled out the first crypto exchange-traded product on the Six Swiss Exchange.

Since then, 21Shares has evolved and currently offers 35 exchange-traded products available in CHF, EUR, GBP, and USD.

33 crypto exchange products are on offer to European investors, including The Sandbox ETP, Decentraland ETP, Crypto Basket Index ETP, and DeFi 10 Infrastructure ETP.

Among the 33 ETPs is also the Terra ETP, down 92% over the past 24-hours.

Despite the market angst from the TerraUSD (UST) de-pegging and the collapse of Terra LUNA, 21Shares continues to expand its product suite.

21Shares Launches Two US Crypto Index Funds Amidst Choppy Conditions

On Wednesday, 21Shares announced its entry into the US with the launch of two Crypto Index Funds.

The first fund offerings in the US will give accredited investors easy access to crypto. Accredited investors can invest into the Crypto Basket 10 Index Fund and the Crypto Mid-Cap Index Fund.

The Crypto Basket 10 Index Fund provides accredited investors with,

“An easy and efficient way to gain diversified exposure to bitcoin and other leading cryptocurrencies in a traditional private placement vehicle, which allows subscriptions and redemptions weekly and monthly, respectively.

The Fund seeks to track an index comprised of the top 10 largest cryptocurrencies based on market capitalization and available on US exchanges.”

At the time of writing, underlying assets included Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Polkadot (DOT), Avalanche (AVAX), Polygon (MATIC), Litecoin (LTC), Bitcoin Cash (BCH), and Cosmos (ATOM).

The Crypto Mid-Cap Index Fund,

“seeks to track an index comprised of the mid-cap portion of the cryptocurrency market based on market capitalization.”

At the time of writing, the underlying assets included Cardano (ADA), Solana (SOL), Polkadot (DOT), Avalanche (AVAX), Polygon (MATIC), Litecoin (LTC), Bitcoin Cash (BCH), and Cosmos (ATOM).

Both of the Funds have an expense ratio of 2.5%.

The latest product launch offering follows last week’s launch of two crypto exchange-traded funds in Australia and heightened volatility across the crypto market.

The Bearish Crypto Market Gives 21Shares and Investors an Entry Point

21Shares launched its Australian and US crypto products at a difficult time for the crypto market.

For May, bitcoin has tumbled 23.9% and by 38% year-to-date. From May 9 to May 18, bitcoin was down 15.8%, reflecting the impact of the TerraUSD (UST) de-peg and the Terra LUNA collapse.

21Shares CEO and co-founder Hany Rashwan said in an interview,

“We’ve been working on products in the US since we started, so we couldn’t be more excited to finally bring them.”

On the US debut, Hany has also said,

“Bear markets are wonderful times to consolidate, to build and to innovate, and we see this as a long-term investment.”

 

At the time of writing, bitcoin was up 1.04% to $28,965. A move through to $29,500 would support a breakout day ahead.

BTC finds support after early pullback.
BTCUSD 190522 Daily Chart

21Shares Launches Metaverse Focused ETP With The Sandbox Token

Key Insights:

  • 21Shares is soon going to be issuing The Sandbox’s SAND-based ETP.
  • This will be the company’s 30th investment product.
  • Although it is not at its lowest, 21Shares BTC ETF is still trading at a 27.5% discount.

Investment in crypto products has been a growing phenomenon with many investors, novice and experienced alike, looking to put their money into a more diversified asset class, but with the safety assurance of the traditional market.

What does that leave the market with, you ask? The answer is ETFs.

And More Importantly, Metaverse ETFs

Over time Bitcoin, Ethereum, Litecoin, and other major crypto assets have found an audience, however, the emerging altcoins are yet to do so. Regardless there are those who prefer it, and for them, companies such as 21Shares bring out altcoins-based ETPs.

Now the newest addition to this cohort is a Metaverse-based ETP launched with The Sandbox.

The Sandbox established its footing in the virtual world space a while ago, and since then, it has achieved everything from partnering with the HSBC bank to collaborating with celebrities and much more.

Even though it may not be as wildly successful as Decentraland, it still deserves credit for standing shoulder to shoulder.

Decentraland’s floor price is almost twice as much as The Sandbox | Source: Dune

But in line with the rising customer demand for the ETP, 21Shares officially launched the SAND ETP as its 30th product.

Commenting on the same, the Co-Founder of 21Shares, Ophelia Snyder, said,

“The conversation has really shifted away from, Is bitcoin going to exist in three years?, To what will the crypto ecosystem look like in three years? And that means that the types of discussions we’re having with institutional clients are much more sophisticated…and metaverse is one of those things where you’re starting to see real themes emerge in crypto.”

ETPs This Year

Although the emergence of newer and newer ETPs is expected to propel the ETP market to newer heights, that is not the case right now.

Even though 21Shares launched a new Cosmos ETP earlier this year, it did not make a change in 21Shares biggest ETP, the Bitcoin ETF (ABTC).

Trading at a discount since the beginning of November, ABTC is currently down by 27.5% from its standing five months ago.

ABTC is trading at the highest discount of all its competitors | Source: 21Shares

The recovering market from a few days ago was certainly helpful, but the broader market cues cut the rally, and as a result, ABTC’s recovery could not be completed.

But things might change with some positive development in favor of the market, such as the SAND ETP news.

Leading Canadian Crypto Firms Join Hands to Form Web3 Council

Key Insights:

  • Industry leaders in the crypto space have founded Canadian Web3 Council, a non-profit trade association.
  • The organization aims to work constructively with policymakers and aid Canada’s growth in the Web3 space. 

Some of Canada’s top cryptocurrency firms have joined forces to create a new industry group aiming to push for a national strategy on cryptocurrencies and other digital assets.

Canada’s Web3 Council

In an open letter, the Canadian Web3 Council was formally launched on March 29. It is a non-profit trade association founded by industry leaders to work alongside policymakers and help Canada prosper in Web3 technology.

The Canadian Web3 Council includes representatives from various organizations that have been active in the Web3 space. Founding members include Wealthsimple, Dapper Labs, Ledn, Ether Capital, WonderFi Technologies Inc., Aquanow, Aciom Zen, Chainsafe Systems, ETHGlobal, Figment, and Informal Systems (Cosmos).

In a statement released, the organization said,

“There is an urgent need to ensure Canada and its citizens are well-positioned to benefit from this emerging asset class. The Canadian Web3 Council is calling for all levels of governments to establish a coordinated approach to convene industry and experts to build a robust, equitable, and sustainable national strategy for cryptocurrency and digital assets.”

The organization’s co-founders are Jelena Djuric of Informal Systems and Connor Spelliscy, who co-founded the American industry group The Blockchain Association. Founders have highlighted in the statement that they hope the council would help establish Canada’s footprint in the Web3 space by allowing the industry to collaborate with all levels of government.

Web3 Growth in Canada

The Council highlights that Canada’s capital markets have better reception to cryptocurrencies and digital asset products than the US markets. 

Notably, many Canadians are active spokespersons in the Web3 and crypto space. For instance, notable blockchains like Ethereum, Cosmos, and Flow have been developed by Canadians. 

Furthermore, the world’s first spot bitcoin exchange-traded funds (ETF) have been approved and trading in Toronto for a while. On the contrary, the US Securities and Exchange Commission continues to delay approval of a spot ETF.

Cosmos-based Protocol Raises $21M For Developer Rewards

Key Insights:

  • Phi Labs secured $21 million in strategic funding. 
  • The raised capital will go towards building on Phi Lab’s protocol Archway, among other things.
  • Archway protocol built on Cosmos rewards decentralized application (dApp) developers.

Phi Labs, a contributor to Archway, on March 24, revealed that it raised $21 million in a seed funding round co-led by crypto investment firms CoinFund and Hashed.

Incentivizing Development Activity

Phi Labs is a contributor to Archway – an incentivized smart contract based on Cosmos. Archway rewards decentralized application (dApp) developers building on the network. Using the Archway protocol, developers can deploy cross-chain dApps and earn rewards for their contributions to the Cosmos network.  

A blog post from the firm revealed that the $21 million seed funding round was led by investment firms CoinFund and Hashed.

Other participants in the raise included 1confirmation, IDEO CoLab, Figment, Blockchain Capital, Wintermute, Chorus One, stake.fish, Lemniscap, Cosmostation, and Hypersphere Ventures.

The raised capital will go towards staff expansion, product development, and building on Phi Lab’s protocol Archway. Furthermore, Phi Labs would use the funds to build software development tools to make it easier for third-party developers to build on the protocol.

Griffin Anderson, Founder of Phi Labs, said, 

“We view developers as critical network participants, and therefore are excited to contribute to a protocol that rewards them directly for the value they contribute to the underlying network.”

Putting Developers First

Archway allows dApp developers to build an app on its platform. At the same time, it starts to earn native network protocol rewards from inflation and gas rewards. This procedure rewards developers, thus increasing development activity on the network. 

Archway aims to incentivize development by allocating its native ARCH token to dApps in proportion to the number of users they bring to the network. Developers can use those rewards the way they want, allowing dApps to provide incentives for their users without dipping into a little token treasury.

Archway is built on the Cosmos blockchain, which saw considerable growth over the last year. Cosmos has 38 different blockchains, more than 250 projects built on the ecosystem, and over $100 billion in digital assets on its network.

At press time, Cosmos’s native token ATOM traded at $29.15, noting a 5.05% rise in price over 24-hours.

Can Coinbase Adding Cardano Staking Rewards Further Aid Price Pump?

Key Insights:

  • Coinbase expands staking offerings to include Cardano.
  • The current estimated annual return for ADA staking on Coinbase is around 3.75% APY.
  • The recent price uptrend seen in ADA’s trajectory combines healthy technicals and ecosystem-centric upgrades. 

Top coins are re-tracing their way upward, with the larger market seemingly back on track to register a much-awaited recovery. Nonetheless, market-centric and ecosystem-based upgrades have acted as catalysts for the favorable price momentum apart from the more significant gains. 

One of the top show stoppers of this week has been Cardano (ADA) which finally managed to pull its price above the $1 mark after being under the price level for over a month. Positive market news has been key to ADA’s recent price jump, apart from the broader market recovery. 

Coinbase Adds Cardano Staking Rewards

The publicly-traded cryptocurrency exchange Coinbase announced on March 24 that it would offer staking for ADA, the native cryptocurrency of the Cardano blockchain.

This move aligns with Coinbase’s plans to continue scaling their staking portfolio in 2022.

A blog shared by the exchange highlighted that the current estimated annual return for Cardano staking on Coinbase is around 3.75% APY. Coinbase’s Senior Product Manager Rupmalini Sahu explained the decision by pointing out, 

“ADA is in the top 10 coins by market capitalization, and it has a flexible, sustainable, and scalable blockchain design. That design uses smart contracts, similar to Ethereum and Solana, to enable decentralized finance, NFTs, and other activities on the network.”

Notably, Coinbase has been on quite a listing spree since last year; the exchange also recently added ApeCoin (APE). Coinbase aims to increase its staking options, as Sahu highlights the exchange’s “plans to continue to scale its staking portfolio in 2022.”

Notably, ADA joins a list of coins for Coinbase provides staking services, including Algorand, Cosmos, Ethereum, and Tezos

ADA Finally Above $1

Cardano’s price has witnessed a significant boost after months of downtrend. A crucial development that fueled a bullish narrative among investors for ADA is Cardano’s network upgrade that increased Plutus’ per block script memory units to 62 million. 

Historically, Cardano’s network upgrades have had a bullish impact on altcoin’s price trajectory, fueling demand for ADA across exchanges. At press time, ADA traded at $1.11, noting a 14.66% daily and a 31.69% weekly rise in price. 

FXempire, ADA, Crypto, Cardano
ADA Price Action | Source: FXEmpire

Cardano’s recent price uptrend combines a technical bounce from oversold levels and a bullish long-term outlook considering the upcoming network upgrades. 

THORChain (RUNE) Rallies Ahead of Chaosnet Hard Fork

Key Insights:

  • THORChain has announced the release of Chaosnet hard fork and Cosmos v0.45.
  • RUNE’s price has appreciated by over 120% since the beginning of March.
  • Crypto.com announced support for THORChain’s network upgrade.

Over the last week, quite a few altcoins unexpectedly reaped advantages of the bitcoin’s uptrend and brief retesting of the $42,000 mark. On the other hand, some altcoins such as THORChain’s RUNE rallied based on ecosystem-centric updates and related social media attention.

Upgrades and Integrations Paving Way for Gains

THORChain is prepared for the upcoming release of the Chaosnet hard fork and Cosmos v0.45 upgrade. According to information revealed by the network, the hard fork is scheduled for 19:00 UTC on 21 March 2022.

Keeping the upgrade and hard fork in mind, Crypto.com has announced support for THORChain. Additionally, Crypto.com declared a temporary suspension of RUNE withdrawals in the Crypto.com app and exchange starting from 21 March 2022, 18:00 UTC.

Notably, the decentralized liquidity protocol’s token RUNE witnessed a surge in price and trade volume after the much-anticipated mainnet launch and integration with Terra in early March.

As highlighted by a Twitter user, Chaosnet is just the name for the beta version of Thorchain. The network is still in the beta version, but it is expected to move towards the mainnet in a few months.

Additionally, the network currently operates under a manually set liquidity cap. However, that could be lifted from next week onwards.

RUNE Rallies

THORChain is a cross-chain decentralized exchange built on Cosmos. The platform aims to provide cross-network liquidity by supporting the decentralized trading of crypto across blockchains.

RUNE’s price surged by over 120% since March-beginning. The coin’s trajectory showed a bullish recovery from the February losses.

FXempire, RUNE, Crypto, THORChain
RUNE Price Action | Source: FXEmpire

RUNE traded as low as $3.015 on 24 February but recovered soon after a series of encouraging technical developments in its ecosystem. Furthermore, THORChain nodes, over time, have witnessed a healthy growth indicative of the ecosystem maturing.

FXempire, THORChain, Crypto, RUNE
Source: Victor Kirilov Twitter

THORChain has gained traction due to its several notable features for the decentralized systems to compete with centralized exchanges.

At press time, RUNE traded at $3.28, noting 1.43% daily and 11.53% weekly gains.

THORChain (RUNE) Breaks Out on Platform News Updates

Key Insights:

  • THORChain (RUNE) continues an impressive run since a late February low of $3.01.
  • Among the best performers of the top 100, new platform feature launches drive investor interest.
  • Technical indicators are flashing green, with bullish chatter providing momentum.

THORChain (RUNE) is a cross-chain decentralized exchange built on Cosmos. The platform aims to provide cross-network liquidity by supporting the decentralized trading of crypto across blockchains.

Essentially, THORChain removes the need for intermediaries to support the trading of non-native cryptos. It means that traders can swap tokens across different networks.

THORChain March Breakout Impresses

For the current month, RUNE is up an impressive 92.3%. Recovering from a February low of $3.01, platform news updates have driven RUNE to a Tuesday and current year high of $8.00.

Following a 14.3% jump on Monday, RUNE rose by 5.91% on Tuesday, to end the day at $7.71.

Last week, THORChain released its Synthetic Asset trading feature. Synthetic Assets allows traders to trade tokens backed by target crypto and RUNE in a 50:50 split. The key to the new feature is no reliance on wrapped assets.

There was also news of THORChain planning the launch of Thorfinance (Thorfi). Thorfi supports borrowing and lending. There was also the talk of a stablecoin THOR.USD, which would follow a similar model to TerraUSD and LUNA.

With LUNA and TerraUSD getting plenty of investor interest, the market is betting on a similar breakout for RUNE, providing momentum.

RUNE Price Action

At the time of writing, RUNE was down by 4.01% to $7.40.

RUNEUSD 160321 Daily

Technical Indicators

RUNE will need to move through the day’s $7.63 pivot to make a run on the First Major Resistance Level at $8.08. RUNE would need the broader crypto market to support a return to $8.00 levels.

An extended rally would test the Second Major Resistance Level at $8.44 and resistance at $9.00. The Third Major Resistance Level sits at $9.25.

Failure to move through the pivot would bring the First Major Support Level at $7.27 into play. Barring an extended sell-off, RUNE should steer clear of sub-$7.00. The Second Major Support Level sits at $6.82.

RUNEUSD 160321 Hourly

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. RUNE holds above the 50-day EMA at $6.28.

This morning, the 50-day EMA has pulled away from the 100-day EMA, delivering strong support. The 100-day EMA pulled away from the 200-day EMA, bringing $9 levels into play.

Avoiding the 50-day EMA would support a move through the current year high of $8.00 to target $10.00.

RUNEUSD 160321 4-Hourly

Free Cryptos: The Top 5 Upcoming Airdrops For 2022

The crypto airdrop has been a buzzword in the community for a long time due to its wide usability among crypto projects. Last year witnessed record-breaking token airdrops with leading Ethereum decentralized finance (DeFi) projects.

For instance, Instadapp, one of DeFi’s most popular portfolio management tools, airdropped 11,000,000 INST tokens to Maker DAO, Compound, and Aave users on Ethereum and Polygon.

In August, the on-chain trading platform dYdX announced its governance token launch, dropping 7.5% of the total tokens to early users. Paraswap is yet another project last year that dropped 150 million PSP tokens in November to frequent users, despite stating that it is not planning for an airdrop.

These records of airdrops have proven that those who consistently get involved early are likely to be handsomely rewarded with free tokens.

What Is a Cryptocurrency Airdrop?

Airdrops are distributions of tokens or cryptos sent to users for free – a fundamental way of garnering mass attention and engaging recipients with the related project.

Active early members of the blockchain community will receive small amounts of the new virtual currency for free or in return for minor services such as retweeting the company’s post.

The main criteria for receiving crypto airdrops are holding a cryptocurrency wallet such as Coinbase with a crypto balance.

On the Downside

It is important to note that legitimate crypto airdrops will not ask users to invest. The greed of “free money” in their wallets leads to recipients falling for airdrop-based ‘pump and dump’ schemes.

Additionally, the airdropped tokens are relatively new coins for which a market is yet to develop, and traded prices are unavailable.

Here are some of the top crypto projects that could airdrop their tokens in 2022.

1. MetaMask

MetaMask is one of the widely used cryptocurrency wallets. A possible airdrop has been rumored to be in the pipeline for a long time. 

The possibility of MetaMask releasing its token, dubbed MASK, has been widely discussed and was mentioned several times by the MetaMask team.

The revelation comes after ConsenSys CEO Joe Lubin tweeted last November, in response to speculation, that ConsenSys may not want tokens on its balance sheet as JPMorgan has a stake in the firm.

His tweet triggered various MetaMask token expectants’ responses, indicating the excitement the crypto project infuses.

As influencers spread the rumors of a possible airdrop on social media, activity through MetaMask Swap “has seen a huge usage increase in recent days,” per data from Delphi Digital.

That said, it is most likely that the team would not disappoint the anticipating user base. However, it’s unclear who exactly will be eligible for airdrop tokens.

2. Arbitrum

Arbitrum, a layer two expansion roll-up for Ethereum, is next on the list for a highly-expected token airdrop this year. There is a buzz that the company may do an airdrop to users who’ve used their bridge.

This is because a popular token bridge to Avalanche airdropped 100% of its token supply to users who had used their bridge – Good Bridging – to transfer funds.

In September 2021, Arbitrum surpassed $1.5 billion in total value locked (TVL), following rumors of a possible token airdrop. Less than two weeks after Arbitrum launched on the mainnet, crypto influencer Cobie took to his Twitter, declaring a possible token airdrop soon.

However, Arbitrum immediately confirmed that “there is no Arbitrum token” on its social media page. It said,

“Anything claiming to be an official Arbitrum token is a scam.”

However, this hasn’t stopped people from speculating though. Given Arbitrum network’s increasing growth in users and the number of applications deployed, a token airdrop and possible liquidity mining program could be underway.

3. zkSync

zkSync, which uses ZK-rollups, has already announced that they will launch their native token in the future. Users who try out the mainnet and testnet may be eligible for an airdrop in the future.

Initially, on their Medium blog, there was a mention of their governance token that it might issue to the community but later was removed.

Though users have been eagerly waiting for a possible token airdrop, the zkSync team has been moving in fits and starts in deciding over a token release. The company has repeatedly stated that it doesn’t have a token yet, asking users not to rush and warning them of possible scams.

4. OpenSea

OpenSea, a leader in the non-fungible tokens (NFT) marketplace, still does not have its token, but users expect to arrive in 2022.

With its insane transaction volume in the NFT market in 2021, OpenSea has won many user hearts showcasing positive signs for a possible token launch this year. Speculations state that it might drop tokens to users who’ve bought or sold NFTs on the platform.

Also, OpenSea’s newest competitor, X2Y2, recently had an airdrop, offering users accumulative rewards for using their marketplace or staking their tokens. This has left OpenSea users expecting an OpenSea token soon.

 5. Bored Ape Yacht Club

The next most hyped token airdrop is from the ape and mutant-themed NFT developers of the Bored Ape Yacht Club (BAYC). The project explicitly mentioned in its Twitter post that a possible token is underway in the first quarter of 2022.

The NFT collection also stated that it wants to launch a token for the sake of NFT community members ‘in a sound way’. It is working with partners Fenwick, a legal service team, and Horizen Labs, creators of the ZEN token.

However, a possible airdrop has not been mentioned for the Bored Ape Yacht Club NFT holders. Still, it is expected likely to offer free tokens initially.

More Airdrops Likely

With a new round of crypto airdrops arriving this year and NFTs witnessing explosive growth as well as increased demand, NFT based airdrops are expected to draw in major rallies.

In 2022, Ethereum Layer 2 solutions, NFTs, and cross-chain bridges seem to have likely chances of hitting an airdrop. Besides Ethereum, other ecosystems such as SolanaCosmos, and Avalanche are also expected to launch an airdrop to its users. However, it is still too early to predict that.

Kava Network Adds EV Support, Launches Ethereum Co-chain Alpha

Key Insights:

  • Kava added EVM support to the network with the Ethereum Co-Chain alpha launch.
  • Over 15 protocols will be deployed to the closed testnet of the Ethereum Co-Chain.
  • The network’s Kava 9 upgrade went live on January 20.

The Kava Network announced the launch of the alpha release of its Ethereum Co-Chain on March 8. The launch adds EVM developer support to the network, allowing developers and dApps from the Ethereum ecosystem to build and deploy on Cosmos.

15 Protocols Set to be Deployed

Kava developers shared that the network has added Ethereum Virtual Machine (EVM) smart contract support with the alpha launch of its Ethereum Co-Chain.

The network’s Kava 9 upgrade went live on January 20, laying the groundwork for the network’s growth this year.

According to the announcement, as part of the Kava Pioneer Program, over 15 protocols, including Beefy Finance, yield aggregator AutoFarm, and RenVM, will be deployed to the closed Co-Chain testnet.

The deployment of these projects aims to test the interoperability between Kava’s Ethereum and Cosmos Co-Chains ahead of the mainnet launch. Kava network’s goal is to add 100 protocols by the end of this year.

In line with the recent update, Scott Stuart, CEO of Kava Labs, said,

“Ethereum is still where the vast majority of developers and protocols are, but Cosmos is growing fast, and it offers so much more in terms of scalability and interoperability. Bringing the best of both ecosystems together on Kava makes sense for our goal to add 100 protocols this year.”

KAVA’s Growth

Kava, built on Cosmos SDK, aims to combine the Ethereum and Cosmos chains into a single network. The same allows developers to build and deploy dApps on a single chain accessible to users and assets of both Ethereum and Cosmos.

In 2022 Kava aims to leverage several essential infrastructure modifications, including the recently added EVM support to increase adoption and interoperability.

Notably, after the mainnet launch, protocols that will launch on the Kava network could use the $750 million Kava Rise developer incentive program.

The Kava Rise fund was announced in early March and allocates 62.5% of block rewards to developers building on the Kava Ethereum and Cosmos Co-Chains. The fund aims to help the network expansion in decentralized finance (Defi) and NFT space.

That said, amid the recent ecosystem-centric updates, KAVA’s price rose by almost 5%, trading at $3.27.

FXempire, KAVA, Crypto
Kava price action | Source: FXempire

While there was a short-term price uptick, the coin traded near its lower support. Flipping the $3.3 support/resistance mark could further the token’s upward momentum.

Bitcoin and Ether Reach Key Support, ATOM Could See “Liftoff”

Key Insights

  • Bitcoin corrected lower below $42,500 and $42,200.
  • Ether tested the key $2,700 support zone.
  • ATOM is rising and might rally further if it clears $35.00.

Bitcoin

After a downside break below $43,000, Bitcoin price extended losses. There was a clear move below the $42,200 support zone and the 21 simple moving average (H1).

The price even declined below the $41,500 level. It is now trading near a major support at $41,050. It is near the 50% Fib retracement level of the upward move from the $37,000 swing low to $45,000 resistance zone.

Bitcoin

If there is a downside break, the price could decline to $40,250. The next major support sits at $40,000, below which there is a risk of more losses. In the stated case, the price could even test the $38,400 level.

Conversely, a move above the $43,000 resistance zone is must to start a fresh increase. The next major hurdle is still near $45,000.

Ether (ETH)

Ether also followed a similar pattern and started a fresh decline from the $3,035 resistance zone. The price declined below the $2,870 level and the 21 simple moving average (H1).

It is now consolidating near the $2,700 zone. The next major support sits at $2,665, below which the price could decline towards the $2,580 support zone. If not, ether price might start a fresh increase from the $2,700 zone.

Ether

On the upside, there is a major bearish trend line with resistance near the $2,800 zone on the same chart. The next major resistance is near the $2,880 level.

Cosmos (ATOM)

ATOM remained supported near the $20.00 zone. A strong base was formed and the price started a major increase above the $22.00 and $24.50 levels.

There was a clear move above the $28.00 resistance and the 21-day simple moving average. Besides, there was a break above a major bearish trend line at $28.00 on the daily chart. It is now trading above the 50% Fib retracement level of the last major decline from the $44.50 swing high to $20.60 swing low.

Cosmos (ATOM)

ATOM is now attempting an upside break above the $35.00 zone. It is near the 61.8% Fib retracement level of the last major decline from the $44.50 swing high to $20.60 swing low.

A close above $35.00 could sent the pace for a larger increase. The next stop for the bulls might be $42.00 or $45.00. If not, ATOM price might correct gains and test the $30.00 support.

ADA, BNB, and DOT price

Cardano (ADA) down 5% and struggling to stay above the $0.855 level. On the upside, the $0.90 zone might act as a breakout zone.

BNB settled below the $400 level. If there is a downside break below $388, the price might decline towards the $365 level.

Polkadot (DOT) is down 7% and trading below the $17.50 level. The next major support is $17.00, below which the price might decline towards $16.50.

A few trending coins are WAVES, ANC, and CELO. Out of these, WAVES is eyeing an upside break above $20.00.

Dragonfly Research Says Solana’s Speed Surpasses ETH & other Chains

Key Insights

  • Throughput (number of transactions in a particular time) on Solana surpassed the leading EVM chain by a wide margin. 
  • Researchers predict that competing layer-1 chains will outdo EVM chains.
  • However, Solana’s network is still plagued by some issues that need to be addressed. 

Dragonfly Research recently published an experiment comparing the performance of six blockchains by testing the capacity of automated market makers (AMMs) on each chain.

Reportedly, Solana’s Orca decentralized exchange (DEX) was the clear winner in trades per second. At the same time, Ethereum was called the ‘MS-DOS’ of blockchains.

Growth of Layer-1s

Over the years, Ethereum’s lack of scalability led to a mass migration to a new generation of L1s. Most of these L1s use the Ethereum Virtual Machine (EVM), making them compatible with Ethereum wallets and developer tools. The TVL growth of L-1s has been stellar, as seen below.

FXempire, Solana, Crypto, ETH,
Source: The Block

Solana, however, has completely rebuilt its stack from the ground up and claims to be the fastest blockchain in existence. Researchers tested the capacity of AMMs on each blockchain.

They found that Solana’s Orca DEX was the fastest with trades per second of 273.34 transactions per second and new blocks every 590 milliseconds.

BNB Smart Chain came in next with 194.6 trades per second on PancakeSwap, followed by Polygon, Avalanche, Celo (CELO), and, finally, Ethereum.

The researcher “GM” further argued that while there was a rich ecosystem built on EVM compatible chains, the results highlighted that ‘if you want high performance now you have to look outside the EVM space.’ GM concluded that layer-1 blockchains could surpass EVM-compatible chains. He noted:

“Overall, I come away with this impression: Ethereum is the MS-DOS of smart contract operating systems. But the current era of blockchains takes us into the Windows 95 era.”

Solana Stealing the Thunder, But…

Blockchains that are compatible with Ethereum tooling are called EVM chains. They often help in the scalability of the Ethereum network. The experiment attempted to compare blockchain throughput by measuring the number of swaps that could be made per block on native automated market makers.

AMMs refer to decentralized exchanges such as Uniswap and PancakeSwap that facilitate non-custodial token swaps on-chain.

Uniswap v2 was the benchmark since it’s the dominant DEX with $1.6 billion in 7-day transaction volume. The standard was 18.38 transactions per second with 13.2 seconds per new block, according to the report.

While the report results highlighted Solana’s faster performance, proponents of decentralization note other issues on Solana.

The team from the Spookyswap DEX on Fantom Opera criticized the findings, saying that Solana’ is an entirely centralized network, unlike Ethereum.’ Furthermore, the many service outages on Solana have also plagued the grid of late.

Although none of the blockchains in the test were used to their total capacity, GM said they expect that “all of the major L1s will improve over time.”

Dragonfly Research is the research arm of Dragonfly Capital. Its portfolio page shows that it has invested in Celo, Avalanche, Cosmos, and Near. However, the firm does not hold Solana in its portfolio yet.

Crypto.com Coin (CRO) Rebrands to Cronos

Following Binance renaming its blockchain network, Crypto.com has also followed suit as it announced that its coin would now be known as Cronos.

CRO is now Cronos

According to the network, the name change reflects the decentralized nature of the CRO token and the massive growth of its ecosystem. CRO is the utility token of Cronos EVM Chain and Crypto.org Chain.

The Cronos Chain is an EVM-compatible chain and was launched in November 2021. The chain is Web3 oriented and was built for the creator’s economy. It supports DeFi, and GameFi dApps; analysts have also described it as a foundational infrastructure for the metaverse.

Cronos Chain is on Ethermint and supports porting of smart contracts and decentralized apps from Ethereum and all EVM compatible chains. 

It offers cheaper and quicker transactions than the Ethereum mainnet, making it a better option for several users. It’s also interoperable with the Cosmos ecosystem.

The growth of Cronos has been driven by user adoption. It has over 350,000 unique wallets connected to it, and 120 decentralized applications have been built on it.

Cronos Wants to Dominate DeFi TVL

With a community roadmap for 2022, the network aims to be one of the top 5 public blockchains by TVL by the end of the year. It has already devised a way to do this: providing better infrastructure for developers, better interoperability, and expansion of its DeFi, Metaverse, GameFi, and NFT ecosystems.

Available data from DeFiLlama shows that the total value of assets locked in the chain has an ATH of around $2.5 billion, though the figure is now currently around $2.4 billion.

Already, the team has set aside $100 million to fund projects on the chain. Particle B’s ecosystem fund is available for developers who want to build on Cronos and get exposure to Crypto.com users.

It’s unlikely that the rebranding of the token name will have any significant effect on the price action. Similar to what Binance did with BNB, this move only disassociates Crypto.com from the token. 

As of press time, the CRO token has lost over 3% of its value within the last 24 hours and it is currently exchanging hands for $0.45.

Bitcoin Dives, Ether Reaches Key Support, ATOM Aims Rally

Bitcoin

After struggling near $44,800, Bitcoin price started a fresh decline. There was a break below the $44,000 support level and the 21 simple moving average (H1).

The decline gained pace below the $43,500 level. There was a move below a key bullish trend line with support near $43,000 on the hourly chart. The price is now trading below the $42,500 level. Immediate support is near the $42,000 level.

Bitcoin

The next major support sits at $41,650, below which there is a risk of more losses. In the stated case, the price could even test the $40,400 level.

Ether (ETH)

Ether also followed a similar pattern and started a fresh decline from the $3,185 resistance zone. The price declined below the $3,100 level and the 21 simple moving average (H1).

It is now consolidating near the $3,000 zone. There is also a major bullish trend line with support near $3,000 on the same chart. A downside break below the $3,000 support could push the price further lower to $2,950.

Ether

If not, ether price might start a fresh increase above the $3,050 level. The next major resistance on the upside is near the $3,100 level and the 21 simple moving average (H1).

Cosmos (ATOM)

ATOM found support above the $25.00 zone after a strong decline. There were multiple attempts to clear the $25.50 and $25.00 support levels.

However, the bulls defended the $25.00 support zone. A base is formed and the price is now attempting a fresh increase. There was a steady wave above the $26.50 and $27.20 resistance levels. There was a close above the $28.00 level and the 21-day simple moving average.

The price is now attempting an upside break above a major bearish trend line with resistance near $29.80 on the daily chart.

Cosmos (ATOM)

If there is an upside break, the price could rally towards $35.00. It is near the 50% Fib retracement level of the last major decline from the $44.60 swing high to the $25.50 swing low.

If not, ATOM’s price might correct gains and test the $28.00 support. The main support is still $25.00, below which there is a risk of a larger decline.

ADA, BNB, and DOT price

Cardano (ADA) is sliding and trading below the $1.085 level. The next support might be $1.055, below which there is a risk of a larger decline to $1.00.

BNB is down 2% and trading below the $420 support. It seems like the price is approaching the $405 level. If there are additional losses, the price could even dive to $380.

Polkadot (DOT) is moving lower and trading below $19.00. It is now testing the $18.80 support. If there are additional losses, the price might decline towards the $18.00 level.

A few trending coins are NEAR, MANA, and WAVES. Out of these, WAVES might surge if it clears the $10.80 resistance zone.

Institutional Investment Funds Flow Back Into Ethereum

Institutional crypto fund manager CoinShares has released its weekly report in which it noted that Ethereum (ETH) has finally broken its 9-week spell of capital investment outflows with inflows totaling $21 million.

The figure represents around 28% of the total inflow into crypto investment products for the week ending Feb. 11. Around $75 million returned to digital asset funds for the period, the report added.

European investment products dominated as those in the United States actually saw overall outflows for the week.

Ethereum Back in Favor

CoinShares noted that Bitcoin (BTC)-based investment products had a slightly higher inflow with $25 million but the notable thing with Ethereum was the two-month trend reversal.

The total inflow for the past four weeks has been $209 million but this is just a fraction of the amount of capital that went into institutional crypto asset funds in Q4, 2021. The recent market rally appears to have spurred professional investors which are usually a little later in entering and exiting markets than their retail brethren.

“Blockchain equity investment products saw the largest flows since mid-December with inflows totalling US$69m last week.”

Multi-asset funds also saw an inflow of $18.7 million for the week with recently created altcoin investment products for Terra (LUNA), Tezos (XTZ), and Cosmos (ATOM) all getting investment inflows.

The breakdown by fund showed that ProShares had the largest inflow with $45 million while Purpose had a large outflow of $75 million. The world’s largest crypto asset fund manager, Grayscale, remained flat in terms of asset flows with $37 billion in assets under management.

Crypto markets have gained 4.2% over the past 24 hours with total market capitalization topping $2 trillion once again.

ETH Price Outlook

Ethereum prices have increased by 5.5% over the past 24 hours topping $3,000 again at the time of writing. ETH hit an intra-week low of $2,850 on Monday but has rebounded since to notch up a 12.6% gain over the past fortnight.

Ethereum is currently trading down 38% from its Nov. 10 all-time high of $4,878, however.

Cosmos (ATOM) Surges by 15% in One Day, Here’s What to Expect Next

As the crypto market cap steadily climbed up, on the back of 8% Bitcoin gains over the last day, large-cap altcoins like Ethereum, Binance Coin (BNB), Solana, and XRP noted decent price upticks. The top gainer in the top 20 coins by market cap was Cosmos (ATOM) which noted close to 19.72% daily gains at press time. 

ATOM Price Analysis

Bitcoin’s move above the $35K mark came as a much-needed breather as BTC finally oscillated at $36,389.42 at press time, noting 7.79% daily gains.

The market turned green on the back of the recent BTC gains, and the global crypto market cap stood at $1.64 trillion, noting a 6.76% increase over the last day. Of the top 20 coins, ATOM had the highest gains and traded at $35.69 at press time. 

FXempire, ATOM, Crypto, Cosmos
Source: FXEMPIRE

ATOM’s rise in price was accompanied by a healthy spike in trade volumes, which presented a rising retail interest in the coin as the market presented signs of recovery. Over the last three days, ATOM pumped by almost 25%, and the rising Relative Strength Index highlighted a rise in buyers in the market. 

Strong Fundamentals Supporting Growth

In the last week, the release of the first Cosmos ETP by 21Shares on Switzerland’s SIX Exchange sparked positive commentary about the coin.

Additionally, strong fundamental factors supported price surge alongside the upcoming airdrops and a bridge implementation between Cosmos and Polkadot

According to a recent blog post by Cosmos, a Cosmos and Astar (Polkadot) bridge is set to be delivered in Q1, 2022. Astar Network has already implemented a testnet bridge with Secret Network, a Cosmos SDK-based blockchain. However, this testnet bridge is EVM-based, meaning that only blockchains supporting both EVM and Cosmos SDK are compatible with this testnet bridge.

That said, according to market experts, the upcoming launch of EVMOS has further sparked interest in the Cosmos blockchain.

At the time of writing, ATOM reaped a yearly ROI vs USD of +368.26 even though its short-term ROI (weekly ROI) was -5.28%. Despite the recent uptick in price, ATOM was still down 20.34% from its all-time high price of $44.36.

Bitcoin and Altcoins: Is This a Market Recovery or a Dead Cat Bounce? 

Market-wide portfolio derisking and selling pressure across the global crypto market showed no signs of stopping as the total crypto market cap fell down to $1.51 trillion on January 22 from above $2 trillion a week ago.

Bitcoin’s price slid under $35K and Ethereum was down to the $2300 price level from the $40K and $3K levels (7-days back) respectively. Nonetheless, a new week seemed to bandage the recent losses as Bitcoin noted minor gains, while altcoins appeared to be rallying. 

A Recovery Underway?

The total crypto market volume over the last 24-hours was $108.76 billion, which makes a 27.20% decrease from the day before, while the total volume in DeFi stood at $16.46 billion. On the other global crypto market cap was finally above $1.67 trillion charting a 3.05% increase over the last day. 

That said, BTC gained 1% price and traded at $35,695.83, while Ethereum was up 2.75% over the last 24-hours finally making its way above $2,500, at the time of writing.

The top two assets presented a decent uptick in price which came as a relief to the market participants after the rather choppy action. However, the highest gainers were altcoins like Terra (LUNA) which was up 12.58%, Shiba Inu which gained a staggering 17.93% price, and Cosmos (ATOM) which was up 11.32% in 24-hours. 

With altcoins gaining strength and Bitcoin noting minor gains the market finally felt optimistic of the coins’ trajectory. But, is this truly a recovery or another fake-out which will be followed by further losses?

Dead Cat Bounce in Play

While it only makes sense to be optimistic of further gains as the market charts a sort of recovery, is a recovery truly in play, or is this merely a dead cat bounce?

In finance, dead cat bounce is used to describe a short-lived recovery from a prolonged decline. It usually appears in the form of a small rally after a continued downward trend in prices.

At first, the price bounce appears to be a reversal of the prevailing trend, but it’s quickly followed by a continuation of the downward price move. In the case of Bitcoin, the dead cat bounce theory resurfaced after BTC’s recent recovery, however, looking at the asset’s negative funding rate it was clear that traders are expecting lower prices. 

While Bitcoin’s consolidation can act in favor of altcoins decoupling from BTC and the larger market’s trajectory for now it won’t come as a surprise if further losses follow. That said, the next bearish levels to watch for BTC would be the $32K and then the $30K and $28.9K mark.

21 Shares Launches First Crypto ETP for Cosmos (ATOM)

Giving a massive push to the Cosmos blockchain, 21 Shares one of the world’s largest issuers of cryptocurrency ETPs, today announced the listing of the first crypto ETP for the Cosmos blockchain.  The exchange-traded products (ETP) are set to trade against CHF, EU, and USD on Switzerland’s SIX Exchange.

21Shares’s Cosmos ETP will deliver a product for investors looking to capitalize on the growth trajectory of interoperable, decentralized blockchains that are empowering the early stages of the metaverse. 

The CEO and Co-Founder of 21Shares, Hany Rashwan, said:

“We are thrilled to launch this product as we continue building widely accessible bridges into the crypto world.”

Diversifying, Developing, and Growing

Cosmos is a proof-of-stake chain with the ATOM token powering an ecosystem of blockchains designed for scaling and interoperability. The organization aims to ‘create an Internet of Blockchains, a network of blockchains able to communicate with each other in a decentralized way.’ 

The Cosmos ecosystem knits together Decentralized Finance (DeFi) infrastructure and marketplaces, financial tools like wallets and smart contracts, as well as gaming apps, among other features. The Cosmos ecosystem’s ability to enable the use of the IBC protocol to allow blockchains to exchange value without compromising their underlying assets gives the ecosystem edge in the space. 

That said, focusing more on development, a liquidity staking module is coming to Cosmos soon.  Liquid staking could give additional functionality to the staked chain assets, meaning that ATOM will be able to issue a staking derivative without needing to unbound or redelegate.

That said, Cosmos’s DeFi ecosystem has seen some good growth in 2022 and currently sits just under the $9 billion mark according to data from DeFi Lama.

Source: DeFi Lama

ATOM Prepares to Rally

The announcement of Cosmos ETP listing positively impacted price and social sentiment for the altcoin. ATOM saw an over 10% appreciation in price jumping from $35.5 to $39.41 at press time. 

ATOM, FXempire, Crypto, Cosmos
Source: Trading View | FXEmpire

While price saw a jump, the retail crowd was still cautious of its move as spot trade volumes for ATOM saw no major uptick and since the altcoin was still down around 2% on the weekly chart. 

Nonetheless, ATOM’s long-term prospects looked decent as development collaborations seemed to pave way for future growth.

Bitcoin Takes a Hit as Crypto Market Records $193 Million in Liquidations

More than 70,000 traders were hit with liquidations over the past 24 hours as the broader cryptocurrency market sustained losses.

The Crypto Market Loses 2.4% of its Value in 24 Hours

The recent data obtained from Coinglass has revealed that more than $193 million worth of liquidations was recorded in the cryptocurrency market over the past 24 hours.

Over the last one hour, more than $7 million worth of liquidations took place in the market. The liquidations have resulted in the total cryptocurrency market cap dropping below the $2 trillion mark a few hours ago.

Bitcoin accounted for most of the losses, with $11.47 million worth of BTC liquidated over the past 24 hours. Ethereum, Cardano, Fantom, and Cosmos complete the top five cryptocurrencies with the highest liquidation.

Bitcoin has struggled below the $45k resistance level over the past few weeks. At press time, BTC is trading at $41,788, up by less than 1% over the past 24 hours.

Fed Rate Hike the Likely Catalyst Behind Market Liquidation

The United States Federal Reserve is expected to announce more significant rate hikes over the coming months. This has resulted in a stronger dollar over the past few days, ultimately affecting the performance of the cryptocurrency market.

According to Coinglass, Binance accounted for most of the liquidations. The cryptocurrency exchange recorded more than $80 million worth of liquidations over the past 24 hours. It is followed by OKEx, with $49 million in liquidations during that period.

Coinglass added that more than 70,000 traders were liquidated over the last 24 hours. The largest single liquidation order happened on Okex, BTC-USDT-SWAP (a total of $3.81M).

If the cryptocurrency market continues to underperform, Bitcoin could lose the $40k support level over the coming hours or days.

ATOM Down by 9% in 24 Hours as Market Weakness Persists

The cryptocurrency market could not build on its positive performance over the weekend, with Bitcoin and other major coins now underperforming.

ATOM Fails to Top the $45 Resistance Level

ATOM, the native token of the Cosmos ecosystem, reached the $44 mark yesterday but was unable to break past the $45 resistance level and set a new all-time high. The performance yesterday mirrored the coin’s performance earlier this month.

However, since reaching the $44 yesterday, ATOM has been underperforming. The coin has lost more than 9% of its value in the last 24 hours and is currently trading above the $38 mark.

Cosmos is a project that aims to create a network of different blockchains that are interoperable. Its main chain Cosmos Hub serves as a central ledger for compatible blockchains dubbed Zones. The Zones are highly customizable, making it easier for developers to design their own cryptocurrencies.

There is no major catalyst behind ATOM’s recent poor performance except the poor performance from the market. The broader cryptocurrency market has underperformed over the past 24 hours, and the total market cap could drop below the $2 trillion mark soon if the poor performance continues.

ATOM Could Slip Below the $35 if Bearish Trend Continues

The ATOM/USD daily chart is still looking bullish despite the cryptocurrency’s poor performance over the past few hours. However, if the bearish trend continues, ATOM could record further losses before the end of the day.

ATOM is still trading above its 50-day EMA. Source: FXEMPIRE

At press time, ATOM is trading at $38.3, above its 50-day moving average price of $30.44. The MACD line is currently in the positive zone, thanks to the coin’s excellent performance since the start of the year.

The 14-day RSI of 54 shows that ATOM is still in the neutral zone. However, continued bearish performance could see ATOM slip into the oversold region. ATOM risks dropping below the $35 support level in the coming hours if the market condition remains unchanged.

Cardano (ADA) Surging on Decentralized Exchange and Metaverse Hype  

Cardano’s ADA token has surged 16% over the past 24 hours beating its rivals by a clear margin as most of them are in retreat again during the Tuesday morning Asian trading session.

ADA topped $1.60 on Tuesday morning marking a six-week high and a gain of more than 40% over the past seven days. However, the token is still down 48% from its Sept. 2 all-time high of $3.09.

The move has elevated Cardano to fifth place in the market capitalization charts with $51 billion. Every other token in the top twenty has declined over the past day with Terra (LUNA), Polkadot (DOT), and Cosmos (ATOM) taking the heaviest losses.

The total market capitalization for all crypto assets has declined 2% or $45 billion to $2.1 trillion at the time of writing. Since the beginning of the year, crypto markets have shrunk by 7%.

Cardano Decentralized Exchange Launch

Cardano momentum is coming from a recent highly-anticipated decentralized exchange (DEX) launch announcement. The SundaeSwap DEX will go live to mainnet on January 20 according to a Jan. 16 tweet from the team.

Cardano has been suffering a lack of decentralized applications recently, but that appears to be slowly changing for the Ethereum rivaling network.

SundaeSwap will have an initial stake offering (ISO) in which ADA holders can delegate their tokens to earn SUNDAE tokens from the exchange. This is likely to be the main driver of current price action for ADA.

The DEX will also offer yield farming opportunities from January to June in which users can stake liquidity provider (LP) tokens to earn even more SUNDAE. 500,000 tokens will be allocated daily over at least the first six months of the DEX’s operation, it stated.

Into the Metaverse

The buzzword of 2022 is undoubtedly “Metaverse” so it comes as no surprise that Cardano has its own virtual reality ambitions. As reported by FXempire on Jan. 17, a Cardano-based Metaverse project called Pavia has launched, further propelling the network’s native token.

Pavia was first announced in September 2021 when it began selling virtual land plots to early adopters.

On-chain activity has also increased for Cardano and it is now the third-largest network behind Bitcoin and Ethereum for 24-hour transaction volume. According to Messari, $5.3 billion has been transacted on Cardano since the same time yesterday.