Your Crypto Brew: Stablecoin Woes, Unfavorable Macro Flows Weigh on Crypto

Key Points

  • Reports were doing the rounds on Thursday that Grayscale has met with the US SEC privately.
  • The crypto market decline has continued on Thursday as stablecoin woes and macro worries weigh on sentiment.
  • Bitcoin (BTC) hit its lowest level since December 2020, while stablecoin troubles seem to have spread to USDT.

Today’s daily Crypto Brew takes a deep dive into the latest news, themes, and developments driving crypto markets.

The total market capitalization of cryptocurrencies continued to fall on Thursday, at one point falling below $1.1 trillion for the first time since February 2021, but more recently stabilizing above $1.2 trillion. That still leaves losses at about 3% (over $40 billion) on the day and close to 21% (around $330 billion) on the week, at the time of writing.

According to CoinGlass, cryptocurrency future positions worth $1.26 billion were liquidated in the last 24 hours. Most of these liquidations continue to be of long positions as the crypto market declines.

Long liquidations on Wednesday were just shy of $700 million, not far below Monday’s more than three-month high of nearly $800 million.

State of the market

Cryptocurrency markets have continued to reel on Thursday as the collapse of Terra’s stablecoin UST triggers contagion across other stablecoin markets, with Tether’s USDT now looking to be in trouble. Stablecoin woes come against a still very unfavorable macro backdrop for the crypto market, with US stocks down sharply in wake of hotter than expected US inflation data.

April US Consumer Price Inflation (CPI) data released on Wednesday revealed a smaller than expected drop in the YoY rate of headline inflation (to 8.3% from 8.5% in March rather than the expected drop to 8.1%). Meanwhile, core price pressures were also hotter than expected, with the MoM jump in core prices exceeding expectations at 0.6% versus an expected rise to 0.4% from 0.3% in March.

Heading into the data release, traders had been hoping that signs of easing price pressures would facilitate a winding down of hawkish Fed bets. This could have given stocks and crypto a short-term boost.

But as it played out, the opposite happened and the Fed will look upon the latest CPI data with concern.

The latest data likely reaffirms their conviction to tighten monetary policy “expeditiously” back to so-called “neutral” (rates around 2.5%) by the end of the year and perhaps much higher in 2023, despite a slowing global growth impulse, which has been exacerbated in recent weeks by lockdowns in China and the Russo-Ukraine war.

It was thus not surprising to see US equities extend their recent run of losses on Wednesday, led unsurprisingly by the high-interest rate-allergic tech sector. The Nasdaq 100, with which the cryptocurrency market has had a close correlation in recent months fell 3.0% to below the 12,000 for the first time since November 2020.

Nasdaq 100 index future suggests the index is set to open Thursday’s session a further more than 1.0% lower in the 11,800s, meaning it is now down roughly 30% versus its record highs back in November 2021.

Bitcoin

Bitcoin was last trading down about 2% in the $28,500 area, having recovered from an earlier dip as lower as the mid-$25,000s, giving it a market cap of just over $540 billion, near its lowest since early 2021.

On the week, BTC/USD is down about 16.5% and, at current levels, the cryptocurrency trades lower by about 60% versus its all-time high printed last November just above $69,000.

The percentage of bitcoin addresses in-profit dropped to a two-year low of 60.4% on Thursday, Glassnode data showed.

Alternative.me’s Fear & Greed Index for BTC showed that markets remain in a state of extreme fear with a score of 12. The index hit 10 earlier in the week, not far above the all-time worst score of 5 hit back in August 2019.

fear and greed index
Source: Alternative.me

Altcoins

Turning to etheruem (ETH), ETH/USD was last trading lower by close to 5.5% in the mid-$1,900s. The cryptocurrency has recovered from an earlier crash as low as the $1,700s for the first time since June 2021, where it tested a triple bottom in the $1,750 area from the middle quarters of 2021.

At current levels just under $2,000, the market cap of the world’s second-largest cryptocurrency stands at just above $230 billion and, like bitcoin, is around 60% down versus its record highs from last November.

Other notable layer-1 blockchain tokens in the top ten cryptocurrencies by market cap took a beating on Thursday.

  • Binance’s BNB is down around 10.4% in the last 24 hours, according to CoinMarketCap, at the time of writing.
  • Ripple’s XRP last down about 24% in the last 24 hours.
  • Cardano’s ADA is around 25% lower in the last 24 hours, whilst Solana’s SOL has shed about 28% of its value over the same time period.
  • Popular meme tokens Dogecoin (DOGE) and Shiba Inu (SHIB) were both down in the region of 30% over the last 24 hours. DOGE’s market cap fell under $10 billion for the first time since April 2021.
  • LUNA, the native token on the Terra blockchain, was last changing hands on exchanges for under 5 cents, meaning it has lost about 99.9% of its value from its record highs printed at the beginning of April near $120 per token since the de-pegging of Terra’s flagship stablecoin UST.

Stablecoins

Stablecoin trouble that originated over the weekend just gone with the de-pegging and subsequent collapse of Terra’s algorithmic stablecoin UST (which has resulted in the collapse of the Terra blockchain’s native LUNA token) has spread to Tether’s stablecoin USDT.

USDT/USD went as low as $0.94 on Thursday, according to Coinbase data cited on TradingView. It now trades closer to $0.99 again.

USDT is allegedly backed 1:1 with actual US dollars of liquid equivalents (short-term US debt instruments), according to Tether. But Tether has come under scrutiny and criticism in the past amid claims that USDT isn’t actually backed 1:1.

UST, meanwhile, continues to trade like an illiquid altcoin and continues to swing all over the place. It was last trading around $0.50, despite Terraform Labs announcing further measures to save the peg on Twitter.

Citadel Securities, BlackRock, and Gemini have all criticized social media-based conspiracy theories alleging that they played some part in the UST collapse.

For now, USD Coin (USDC), Binance USD (BUSD,) and Dai (DAI), the next major USD stablecoins, all continue to trade comfortably in line with their 1:1 pegs to the US dollar.

Flows, deals, and transactions

According to Glassnode, $3.3 billion in bitcoin was sent to exchange wallets on Wednesday versus $3.2 billion out, amounting to a net inflow of around $49.9 million.

That coincided with the 7-day moving average of Exchange Inflow Volume reaching an 11-month high of 3,372.517 bitcoins (per day) and bitcoin Balance on Exchanges reaching a 1-month high of 2,542,255.466 bitcoins on Thursday, according to Glassnode.

Traders moving bitcoin to exchanges in a higher number is usually a sign of an elevated intent to sell in the market.

Meanwhile, crypto investors reportedly moved $1.6 billion into exchanges on Wednesday versus $1.6 billion out, resulting in a net inflow to exchanges of just over $30 million.

DeFi tokens

According to CoinGecko, the market cap of DeFi tokens fell to $48.6 billion on Thursday. That marks a more than 57.5% collapse in just seven days and is mostly due to the demise of LUNA, the former largest of the DeFi tokens.

The total value locked (TVL) on all DeFi platforms continued its recent collapse and was last at just over $100 billion, down over 25% in the last 24 hours alone, data on DeFi Llama showed. Much of the recent collapse has been driven by the downfall of the Terra ecosystem, which now has a TVL of only about $2.0 billion versus close to $22.0 billion just one week ago.

  • Of the largest ten DeFi tokens, Lido Staked ether’s STETH (around -20% in the last 24 hours)
  • Chainlink’s LINK (around -25%)
  • Uniswap’s UNI (around -23%)
  • PankcakeSwap’s CAKE (around -27%)
  • Maker’s MKR (around -30%)

They are all performing poorly in tandem with the broader crypto market drop, at the time of writing.

DeFi stablecoins including Dai’s DAI, Frax’s FRAX, and Magic Internet Money’s MIM are all remaining broadly stable close to $1.0, as is their intended purpose.

Crypto regulation landscape

Australia’s first-ever bitcoin and ethereum Exchange Traded Funds (ETF) went live on Thursday, launched by ETF Securities and Cosmos Asset Management. Trading surpassed A$ 1 million in the first two hours, which market commentators said marked a strong start given broader market turmoil.

“ETF Securities and Cosmos Asset Management’s cryptocurrency launch may go down in history books and put Australia’s ETF market in the running,” analysts at Bloomberg Intelligence wrote. Australia’s crypto market could hit $1 billion by the end of the year, with the country potentially acting as the Asia-Pacific’s gateway to crypto ETFs, they noted.

With Australia joining ranks with Canada as one of the few major developed economies where cryptocurrency ETFs have received approval, pressure on the US Securities & Exchange Commission to allow a US-based crypto ETF builds further.

Reports were doing the rounds on Thursday that Grayscale has met with the US SEC privately as it pushes for regulator approval of its plan to convert its Bitcoin Trust into an ETF.

Speaking of the SEC, two former SEC lawyers told The Block on Wednesday that the US regulator is likely already investigating what happened to UST over the weekend.

The SEC had already taken an interest in the Terra ecosystem, one of the lawyers said, noting the Mirror protocol that enabled crypto investors to buy digital assets whose value remains closely linked to traditional financial assets, though remains outside the regulatory purview.

Elsewhere, the High People’s Court in Shanghai declared bitcoin to be a legal form of virtual property that will be protected under Chinese law. This is despite the fact that cryptocurrency trading is banned in China.

Opera Now Allows Users to Buy BNB With Fiat Through Built-In Crypto Wallet

Key Insights:

  • Opera integrates BNB Chain.
  • The strategic partnership aims to increase Web3 adoption.
  • The Opera Crypto Browser project already supports Ethereum and Ethereum dApps and Polygon.

One of the crypto-friendly internet browsers, Opera, has announced the integration of BNB Chain. The integration would enable BNB Chain-based decentralized apps (DApps) to run on Android, iOS, and desktop versions of Opera’s crypto browser.

Opera’s Web3 focused initiative

Earlier this year, Opera unveiled its new Web3 initiative, with beta versions of its latest browser available for PCs, Macs, and smartphones. In light of the firm’s Web3-focused initiative, the browser firm has added support for nine major blockchain ecosystems.

After integrating Bitcoin (BTC), Solana (SOL), Polygon (MATIC), StarkEx, Ronin (RON), Celo (CELO), Nervos Network (CKB), and IXO on March 30, the firm has now added support for the BNB chain.

This latest integration with BNB would enable Opera’s over 350 million users to buy Binance’s BNB token with fiat and send and receive the token through Opera’s built-in crypto wallet.

The move aimed at industry expansion and adoption will also let Opera users gain access DApps on the BNB Chain ecosystem.

Some of the top DApps on the BNB Chain include decentralized exchanges (DEXs) like PancakeSwap, 1inch, BiSwap, and DeFi products like DRIP Venus, Tranchess, Treehouse, ApeSwap, and AutoShark Finance.

On its way to becoming the leading Web3 browser?

Opera launched its first web browser with an integrated cryptocurrency wallet and essential Web3 support back in 2018. Now, the firm is focusing more on providing users with a dedicated Web3 browser to “accelerate the evolution of the next generation of the web.”

As of April 2022, BNB Chain was the largest smart contract blockchain in terms of daily active users (DAU). Thus, the integration aims to further the organizations’ narratives in the Web3 adoption.

Opera’s Crypto Browser launched in January facilitates navigation across DApps, games, and metaverses. Through various strategic partnerships, Opera apparently aims to become the leading Web3 browser. However, amid competition from Web3 browsers like Brave, how much market Opera could cover in the future remains to be seen.

High Profile Names Invest $87m in Crypto Payment Firm MoonPay

Key Insights:

  • Crypto payment shop MoonPay gets the VIP seal of approval with $87m in investments.
  • Investors from the world of media & entertainment, music, and sport have invested with all eyes on Web3,
  • Earlier this year, MoonPay was in the news for purchasing NFTs for celebrity clients.

Investor interest in Web3 shows no sign of abating. Mainstream names have embraced what lies ahead, filing applications for NFT and Metaverse-related trademarks.

Digital asset platforms have also started to build investment divisions targeting Web3.

Following news of Uniswap Labs (UNI) launching Uniswap Labs Ventures to target Web3, MoonPay hit the newswires on Wednesday.

VIPs from Entertainment, Music, and Sport Invest in Moonpay

This week, MoonPay announced the investment of $87 million from high-profile names in entertainment, music, and sports.

According to today’s announcement,

“More than 60 influential figures and organizations from the worlds of music, sport, media, and entertainment have collectively invested $87m in the company.”

Big names from the world of films include Ashton Kutcher, Bruce Willis, Eva Longoria, Gal Gadot, Gwyneth Paltrow, Kate Hudson, and Matthew McConaughey.

Virtual world advocates Snoop Dogg and Justin Bieber were also among the list of high-profile investors.

MoonPay co-founder and CEO Ivan Soto-Wright said,

“Web3 is radically changing how we think about creative value. We’re on the cusp of a creative crypto renaissance, and our strategic investors are helping to lead that movement. We’re honored to work with them to help onboard the world to Web3.”

The $87m investment forms part of a $555 million Series A financing round that has funded the launch of NFT Checkout and MoonPay Concierge, which helps high-profile clients purchase NFTs.

Last November, MoonPay was in the news after raising $555 million in Series A funding to take the company’s value to $3.4bn.

MoonPay has seen plenty of media interest in recent months as interest in Web3 accelerates.

MoonPay Activity Draws Media Interest amidst a Rise in Web3 Activity

Following the launch of NFT Checkout and MoonPay Concierge, news hit the wires of MoonPay purchasing CryptoPunk NFTs.

In January, FX Empire reported MoonPay purchasing CryptoPunk #2681 for 900 ETH, equivalent to approximately $3m, at the time of purchase.

This month, MoonPay announced a new partnership with OpenSea, which removed the need for NFT buyers to purchase crypto to make payments. OpenSea will use MoonPay’s NFT Checkout to give OpenSea users better access to NFTs. As a result of the partnership, users can buy OpenSea NFTs with Mastercard, Visa, Apple Pay, and Google Pay.

What is MoonPay?

Launched in 2019, MoonPay supports the buying and selling of cryptos. Users can seamlessly exchange cryptos and fiat using credit and debit cards and payment platforms such as Apple Pay and Google Pay. In addition to cryptocurrencies, MoonPay has also moved into the NFT space in a bid to seize market share, as it did in the cryptocurrency space.

Uniswap Labs Takes Aim at Web3 with New Ventures Division

Key Insights:

  • Uniswap Labs targets Web3 with a new ventures division.
  • The ventures division will focus on broad-ranged projects, including tool development and customer apps.
  • More platforms are likely to target Web3 to drive innovation and Web3 integration into the real world.

It’s been a big first quarter for Web3, which has broken out of its shell as more mainstream players target NFTs, the Metaverse, and beyond.

While it has been an impressive start to the year, Web3 is still nascent and has a long way to go before integration into everyday life.

Investment and innovation remain the key to the success of Web3.

Uniswap Labs Launches Uniswap Labs Ventures to Drive Web3 Innovation

On Monday, Uniswap Labs (UNI) announced the launch of Uniswap Labs Ventures (ULV), a new division targeting Web3.

According to Monday’s announcement,

“Uniswap Labs Ventures will invest in teams at different stages and levels of the Web3 stack, from infrastructure to developer tools and consumer-facing applications.”

The new division aims to support innovation and growth by actively participating in on and off-chain governance and collaborating with communities.

Immediate Uniswap Lab Ventures plans include participation in MakerDAO (DAI), Aave (Aave), Compound (COMP), and Ethereum (ETH) Name Service protocols.

To date, Uniswap Lab Ventures has invested in 11 companies and some native protocols within the Web3 ecosystem.

On Twitter, Uniswap Labs tweeted,

“At Labs, we want to onboard millions of users into the Web3 economy, with the goal of unlocking universal ownership & exchange for all. But we know we can’t achieve our mission alone.”

Uniswap Labs added,

“And in keeping with our ethos of decentralization and community engagement, ULV will be participating in the governance of portfolio protocols. To start, these include @AaveAave, @compoundfinance, @MarkerDao, and @Ensdomains.”

Uniswap Labs is not alone in targeting Web3 through investment and partnership to drive innovation and growth.

Investment Funds Target Web3 to Drive Innovation and Growth

Uniswap Labs Ventures follows in the footsteps of Cake DeFi Ventures (Cake) and FTX Ventures, which are looking to support growth in the Web3 space.

One of the biggest VC names in the game is Andreessen Horowitz, also known as 16z, which raised $9bn to further its involvement in both crypto and tech.

According to Institutional Investor, VCs invested $32.8bn in crypto-based projects in 2021.

The 2021 total was reportedly more than all previous years combined, suggesting another strong year for 2022.

17% of the 2021 total went into NFT start-ups, DAOs, Web3, and the Metaverse.

Bitcoin and ETH Stuck Below Hurdles, ADA Eyes Upside Break

Key Insights:

  • Bitcoin started a downside correction and tested the $45,750 support.
  • Ether (ETH) tested the key $3,435 support.
  • ADA is surging and seems like the bulls are aiming a test of $1.4.

Bitcoin

After climbing above $46,500, bitcoin price extended increase. It even spiked above the $47,000 level, but there was no upside continuation.

There was a bearish reaction below the $46,500 support. The price even declined below the $46,000 level and the 21 simple moving average (H1). It is now consolidating above the $45,750 support zone.

Bitcoin

On the upside, the bulls are facing resistance near the $46,500 level and a connecting bearish trend line on the hourly chart. A clear move above the $46,500 level could send the price to $47,000 or even higher.

On the downside, the price might find bids near $45,750. The next major support sits near the $45,550 level, below which there is a risk of a drop below $45,000.

Ethereum (ETH)

ETH also followed a similar pattern after there was a move above $3,500. It spiked above the $3,550 level, but the bears defended more upsides.

The price declined below $3,500 and currently consolidating. The price is now consolidating above the $3,435 support, but it is below the 21 simple moving average (H1). On the upside, it is facing resistance near the $3,525 level.

Ether

The next key barrier is $3,555, above which the price could start a steady increase. If not, ether price might slide below the $3,435 support level. The next key support is near $3,410, below which the bears might aim a test of $3,330.

Cardano (ADA)

Cardano (ADA) formed a strong support base above the $0.8000 level. It started a strong increase above the $0.8500 and $0.9000 resistance levels.

There was a clear move above a major bearish trend line at $0.9500 on the daily chart. The price climbed above the $1.00 resistance and the 21-day simple moving average. Besides, the price jumped above the 50% Fib retracement level of the downward move from the $1.635 swing high to $0.750 low.

Cardano (ADA)

It is now showing positive signs above the $1.20 level. An immediate resistance is near the $1.25 level. The first key resistance is near $1.30 or the 61.8% Fib retracement level of the downward move from the $1.635 swing high to $0.750 low.

A clear move above the $1.30 level could start a move towards the $1.35 level or even $1.40. If not, the price might decline towards the $1.02 support and the 21-day simple moving average.

BNB and DOT price

Binance Coin (BNB) is consolidating above the $440 support zone. If the bulls remain active, the price might climb higher towards the $462 and $465 levels.

Polkadot (DOT) is in the red zone and struggling below the $22.80 level. If there is a bearish break below $22.00, there is a risk of a move to $21.20.

A few trending coins are DOGE, CAKE, and CELO. Out of these CELO is gaining pace above the $4.15 resistance level and might clear $4.22.

SHIB and DOGE Trail the Crypto Market Front Runners

Key Insights:

  • It was a bullish Friday session for DOGE and SHIB, with DOGE rising for the third time in 9 sessions.
  • DOGE and SHIB continued to trail the front runners, with ApeCoin and Avalanche stealing the show.
  • Despite DOGE and SHIB holding above their 50-day EMAs, key technical indicators remain bearish.

Friday was a bullish day for DOGE and SHIB, though the crypto market focus remained on the DeFi space and ApeCoin (APE).

Reversing a 0.60% loss from Thursday, DOGE rose by 1.80% to end the day at $0.1185. SHIB partially reversed Thursday’s 2.33% loss with a 0.27% gain to end the day at $0.00002224.

DeFi and Bored Ape Continued to Side-line DOGE and SHIB

Avalanche (AVAX) and ApeCoin (APE) continued their upward trends as risk appetite improved late in the week.

Having trended on Thursday, ApeCoin (APE) and PancakeSwap (CAKE) were still trending on Friday, with APE on another breakout session.

For Avalanche, layer-1 protocols continued to draw interest away from the meme coins.

DOGE Price Action

At the time of writing, DOGE was up 0.51% to $0.1191.

DOGEUSD 190322 Daily

Technical Indicators

DOGE will need to avoid the day’s $0.1174 pivot to make a run on the First Major Resistance Level at $0.1205. DOGE would need the broader crypto market to support a move back through to $0.12 levels.

An extended rally would test the Second Major Resistance Level at $0.1225. The Third Major Resistance Level sits at $0.1276.

A fall through the pivot would test the First Major Support Level at $0.1154. Barring an extended sell-off, DOGE should steer clear of sub-$0.114 levels. The Second Major Support Level sits at $0.1123.

DOGEUSD 190322 Hourly

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE sits below the 100-day EMA, currently at $0.1194, while holding above the 50-day EMA.

This morning, the 50-day EMA narrowed to the 100-day and the 200-day EMAs, delivering support. The 100-day EMA flattened on the 200-day EMA, also positive.

A move through the 100-day EMA would support a return to $0.12.

DOGEUSD 190322 4-Hourly

SHIB Price Action

At the time of writing, SHIB was up by 0.31% to $0.00002231.

SHIBUSD 190322 Dailly

Technical Indicators

SHIB will need to avoid the day’s $0.0000222 pivot to make a run on the First Major Resistance Level at $0.0000227. SHIB would need the broader crypto market to break out from $0.0000225 levels.

An extended rally would test the Second Major Resistance Level at $0.0000232 and resistance at $0.0000235. The Third Major Resistance Level sits at $0.0000243.

A fall through the pivot would bring the First Major Support Level at $0.0000217 into play. Barring an extended sell-off, SHIB should steer clear of sub-$0.000021 levels. The Second Major Support Level at $0.0000212 should limit the downside.

SHIBUSD 190322 Hourly

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB sits at the 50-day EMA at $0.0000223 following a late Friday pullback.

This morning, the 50-day EMA narrowed to the 100-day EMA, providing support. However, the 100-day EMA pulled back from the 200-day EMA, a negative signal.

A fall through the 50-day EMA would bring the Major Support Levels into play.

SHIBUSD 190322 4-Hourly

SHIB Falls and DOGE Goes Sideways in a Mixed Crypto Session

Key Insights:

  • It was a mixed Thursday session for DOGE and SHIB, with SHIB ending the day in the red.
  • DeFi stole the show on the day, leaving DOGE and SHIB on the side-lines.
  • Key technical indicators remain bearish, with SHIB falling below the 50-day EMAs.

It was a mixed day for DOGE and SHIB on Thursday. Crypto market focus shifted to the DeFi space, leaving DOGE and SHIB on the side-lines for the day.

Following a 3.20% gain on Wednesday, DOGE ended the day flat at $0.1171. SHIB partially reversed Wednesday’s 4.12% rally with a 1.94% loss to end the day at $0.00002227.

DeFi Explosion and Bored Ape Side-lined DOGE and SHIB for the Day

Avalanche (AVAX) and PancakeSwaps’s CAKE drew crypto investor interest. New DeFi news for both protocols drove demand, with ApeCoin’s (APE) listing also a key market event.

While SHIB has recently been a top trending coin, ApeCoin and PancakeSwap stole the limelight on Thursday.

DOGE Price Action

At the time of writing, DOGE was down by 0.26% to $0.1168.

DOGEUSD 180322 Daily
A return to $0.12 levels is needed to avoid a fall back to current year lows.

Technical Indicators

DOGE will need to move through the day’s $0.1174 pivot to make a run on the First Major Resistance Level at $0.1189 and test resistance at Thursday’s high of $0.1192. DOGE would need the broader crypto market to support a move back through to $0.1180 levels.

An extended rally would test the Second Major Resistance Level at $0.1206. The Third Major Resistance Level sits at $0.1238.

Failure to move through the pivot would bring the First Major Support Level at $0.1157 into play. Barring an extended sell-off, DOGE should steer clear of sub-$0.115 levels. The Second Major Support Level sits at $0.1142.

DOGEUSD 180322 Hourly
A move through the pivot would be needed to take a run at the major resistance levels.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. DOGE remains below the 100-day EMA, currently at $0.1197, while testing support at the 50-day EMA at $0.1163.

This morning, the 50-day EMA narrowed to the 100-day and the 200-day EMAs. The 100-day EMA pulled back from the 200-day EMA to test support.

Avoiding a fall through the 50-day EMA would support a run at $0.12.

DOGEUSD 180322 4-Hourly
Avoiding a fall through the 50-day would support a bullish move.

SHIB Price Action

At the time of writing, SHIB was up by 0.04% to $0.00002228.

SHIBUSD 180322 Dailly
A breakout from the current trend is needed to avoid a larger pullback.

Technical Indicators

SHIB will need to move through the day’s $0.0000224 pivot to make a run on the First Major Resistance Level at $0.0000227 and Thursday’s high of $0.00002282. SHIB would need the broader crypto market to break out from $0.0000227 levels.

An extended rally would test the Second Major Resistance Level at $0.0000232 and resistance at $0.0000235. The Third Major Resistance Level sits at $0.0000239.

Failure to move through the pivot would bring the First Major Support Level at $0.0000219 into play. Barring an extended sell-off, SHIB should steer clear of sub-$0.000020 levels. The Second Major Support Level at $0.0000216 should limit the downside.

SHIBUSD 180322 Hourly
A move through the pivot key to avoiding another decline.

Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal. SHIB sits below the 50-day EMA at $0.0000224 following Thursday’s pullback.

This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA also pulled back from the 200-day EMA, another negative signal.

A move back through the 50-day EMA would support a run at $0.000023 levels.

SHIBUSD 180322 4-Hourly
Signal becomes bearish with SHIB back below the 50-day EMA

DeFi Tokens PancakeSwap, AAVE, and Avalanche Lead Today’s Rally

Key Insights:

  • The Bored Ape Yacht Club released their token ApeCoin as well today.
  • In the last 24 hours, the total value locked across DeFi chains has risen by $7 billion.
  • PancakeSwap recently introduced Perpetual Trading on the protocol.

Today, the crypto market witnessed a balanced movement, with many coins rallying and many others falling significantly.

Interestingly of the top 10 rallying altcoins, most of them belonged to Decentralized Finance protocols and chains. These included the likes of PancakeSwap, AAVE, and Avalanche.

Here Comes the DeFi Avalanche!

Trading at $80.2 at the time of writing, AVAX certainly was one of the top gainers in the last 24 hours. The token of the fourth biggest DeFi chain, AVAX, was up by over 15%, recovering the losses experienced by the investors since the beginning of this month.

Although, AVAX’s rally wasn’t recent as it has been rising for the last four days straight and has shot up from the local bottom of $65 in that duration.

Avalanche rallied by 15.1%

Similarly following in the footsteps of AVAX was PancakeSwap’s CAKE, which at one point was up by 35.32%. This insane rally, however, could not be sustained as the altcoin came back down to trade at $6.45 at the time of writing.

Thus, having risen by 17.02%, CAKE investors seemed euphoric as the protocol recently introduced Perpetual Trading for its users.

As one of the biggest DeFi protocols with $4.51 billion in total value locked (TVL), PancakeSwap is currently the third biggest DEX in the market.

The rise came in at the right time as the altcoin has been witnessing consistent falls over the last 15 days, which has been invalidated by almost 90% with today’s rise.

PancakeSwap almost rose by 35.32%

Additionally, AAVE didn’t fall behind either, as the altcoin made a big stretch yesterday with its green candle and crossed $140, a support level that had been flipped into resistance at the beginning of this month.

Trading at $144.91, AAVE increased by almost 19% in the last 24 hours.

AAVE witnessed an 18.91% rally

At one point last year, AAVE was the biggest DeFi protocol in the world. However, it has since come down to the sixth position, being replaced by Curve. Regardless, the Dapp is still the biggest protocol on Polygon and Avalanche.

The Bored Ape Just Got Interesting

As one of the biggest NFT collections globally released its token, it was bound to be the highlight of the day, and so it was. Bored Ape Yacht Club’s ApeCoin was the most trending token today.

As a matter of fact, having risen by over 600% at one point, the token already made it to the list of the top 50 cryptocurrencies in the world.

Thus, with many more such drops anticipated to break the market this year, it will be interesting to see if ApeCoin can sustain its rise or if it was simply a one-and-done instance.

Bitcoin and ETH Print Bullish Pattern, Why AVAX Aims $100

Key Insights:

  • Bitcoin is gaining pace above the $40,800 level.
  • Ether (ETH) might rise steadily towards $2,920.
  • AVAX rallied 15% and is currently attempting a crucial upside break.

Bitcoin

After a clear move above $40,000, bitcoin price started a fresh increase. There was a clear break above the $40,800 resistance level.

The price even broke the $41,000 resistance and settled above the 21 simple moving average (H1). It is now attempting an upside break above the $41,250 and $41,450 resistance levels. If there is a clear move above $41,450, the price might surge further.

Bitcoin

The next key resistance is near the $42,200 level. If there is no upside break, the price might decline towards the $40,300 level and a connecting bullish trend line on the hourly chart.

Ethereum (ETH)

ETH also followed a similar pattern and started a fresh increase above the $2,720 level. The price settled above the $2,780 level and the 21 simple moving average (H1).

There was a clear move above a key bearish trend line with resistance near $2,790 on the hourly chart during the increase. The bulls even pushed the price above the $2,800 level. ETH is still rising and might climb higher towards the $2,880 level.

Ethereum (ETH)

If the bulls remain in action, the price could surge towards the $2,920 resistance zone. Conversely, the price might correct gains and test the $2,780 support zone. A downside break below the $2,780 support could push the price lower towards $2,720.

Avalanche (AVAX)

AVAX formed a base above the $65.00 level after a sharp decline. The price started a decent increase above the $70.00 resistance zone.

There was a clear move above the $75.00 level and the 21-day simple moving average. The bulls pushed the price above the 23.6% Fib retracement level of the key decline from the $98.50 swing high to $65.50 swing low.

Avalanche (AVAX)

The price is now reaching near a crucial bearish trend line with resistance near $82.00 on the daily chart. A clear move above the trend line resistance could further push the price above $85.00.

The next hurdle is near the trend line at $92.00, above which the price might rise towards the $100.00 level. If not, the price might correct gains and test the $75.00 support.

ADA, BNB, and DOT price

Cardano (ADA) is up 5%, and there was a move above the $0.850 level. The next stop is near $0.880, above which the price might rise towards the $0.900 level.

Binance Coin (BNB) is moving higher towards the $392 resistance. The next major resistance is near the $395 level. If the bulls remain in control, the price could even surge above $400.

Polkadot (DOT) gained 4% and broke the $18.50 level. The next key hurdle is near the $19.20 level, above which the price might rise to $20.00.

A few trending coins are MKR, CAKE, and CELO. Out of these, CAKE is up 25%, and there was a move above the $6.50 level.

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.

Another $10M Lost in DeFi Hack of Binance Listed Dego Finance

Over the last year, the amount of money lost in hacks of decentralized financed (DeFi) projects more than doubled to $1.3 billion, with centralization being the most common vulnerability, as per reports.

On February 10, another new security breach was reported by Dego Finance. Soon after, the platform collaborated with prominent cryptocurrency exchanges such as Binance, Kucoin, and Gate. io to close deposits of its native governance and equity token, DEGO. 

Dego Finance Losses $10 Million

Information from Dego Finance’s official Twitter handle claimed that its own address providing liquidity on popular decentralized exchanges – Uniswap and PancakeSwap, was compromised.

After this, the DEGO pair provided by the team was exhausted. For now, Dego Finance has paired with major exchanges such as Binance to close DEGO deposits and is urging exchanges like PancakeSwap, WazirX India, Bithumb Global, and others to do the same. 

The DeFi platform has also urged hackers to come forward and communicate with the organization. They said:

“We’ll keep all stakeholders updated on the latest developments, as well as talk to reputable security teams on how to identify the hacker and retrieve loss. We would ask the hacker to come forward and communicate.”

Furthermore, according to Peckshield, a blockchain security, and analytics company, the exploiters withdrew more than $10 million from Dego Finance as well as from GameFi Incubator Cocos-BCX.

The company’s data highlights that funds from 13 addresses were drained, which belonged to Binance Smart Chain (BSC), Ethereum, and Cronos.

DEGO token Sees losses

After the news of the security breach came out, Dego Finance’s token, DEGO saw a dip in price. The token’s price slumped by almost 20% from $4.50 to as low as $3.65 in the early trading hours of Thursday. The token’s market cap also fell by almost 12.75% at press time. 

Dego Finance is a recently launched DeFi project that aims to refurbish the rationale and efficacy of non-fungible tokens (NFTs) through an array of interesting and clever applications.

The platform offers both DeFi and NFT tools and claims to be an open-NFT ecosystem. 

Rug pulls and DeFi hacks have continued to strike in the crypto space over the last few months with the last year being a game-changer for the space both in terms of growth and security breaches.

Floki Inu Eyes Upgrade to Help Push Mainstream Adoption

The team behind meme coin, Floki Inu, has announced that it’ll be hosting a Twitter space to discuss its Nottingham upgrade later today. The upgrade is part of its transition into a DAO.

Floki Inu Begins Transition Into DAO

The meme coin was inspired by Elon Musk’s tweet that his “Shiba Inu will be named Floki.” It is based on Ethereum and Binance Smart Chain and launched in July 2021. 

With a total supply of 10 trillion tokens, the token aims to be the top meme coin. Its developers believe this is possible because of its superior utility compared to others like Shiba Inu and Dogecoin.

After less than a year in the market, the token developers have decided to become a Decentralized Autonomous Organization (DAO). According to the team, the decision to migrate was due to certain discoveries. 

Firstly, the centralized nature of the token has prevented many exchanges from listing it. This has limited its listing to Uniswap and PancakeSwap. But upgrading into a DAO solves the problem. Already, several centralized exchanges have listed it, with some even assisting with the upgrades.

Furthermore, the upgrade strengthens the token position and will increase adoption. The team believes that DAO is the future of crypto. Thus, becoming a DAO will only let the token key into this future in time.

During phase 1 of the upgrade, Floki Inu disabled trading and centralized exchanges that listed the token also disabled deposits and withdrawals. Along with the upgrade to DAO, the token also upgraded its ETH and BSC contract addresses.

Floki Inu Plans NFT, Metaverse, and More

While Phase 1 now seems complete, it’s sure that the platform has more plans in place. Floki has already announced the launch of its Gemstone NFTs. The non-fungible tokens are Aurum Gemstone of Truth, Diamond Mind Gemstone, and Ruby Heart Gemstone. 

These NFTs have unique benefits for their holders, and the utility will keep growing as the community expands.

Aside from the NFTs and its DAO, the Floki Inu ecosystem is also an NFT gaming metaverse Valhalla, a marketplace FlokiPlace, and crypto educational platform Floki Inuversity. 

Presently, the token is trading at $0.00003719, with the price dropping by more than 14% in the past 24 hours.

China Arrests Eight People for $1 Million Crypto Scam

Chinese authorities have arrested eight people involved in a crypto scam in its latest crackdown on crypto-related activities. It also froze 6 million yuan ($1 million) worth of crypto assets tied to the crime.

Despite the clear ban on cryptocurrency trading, mining, and related activities in China, many still appear to be involved in crypto activities, albeit illegally. 

The Criminals Rug Pulled Crypto Investors

According to a report on Nikkei Asia, this DeFi rug pull was first uncovered by the Chizhou public security bureau and had the potential to be worth 50 million yuan ($7.8 million).

Investigations started after an investor lost 590,000 yuan in crypto assets in June 2021, and evidence pointed to the eight arrested people.

Apart from the frozen assets, authorities also seized luxury houses, cars, and other expensive items. All these assets are alleged to have been acquired with the stolen assets.

The unnamed scam project promised investors high returns for swapping their liquidity. But the scammers used anonymous pools to siphon the money while investors were left with nothing.

This event doesn’t just show the risks of crypto assets but also proves that banning cryptocurrencies won’t protect people from the risks. Instead, the ban might further give more opportunities for bad actors to exploit the people that the ban seeks to protect.

Despite Security Concerns, DeFi Adoption Continues

Rug pulls became the number one crypto scam in 2021 as it accounted for 37% of stolen assets. The nature of decentralized finance space further makes it possible to pull off this scam due to its unregulated and permissionless nature. 

With users losing almost $3 billion to rug pulls last year, security has become a major source of concern for investors.

However, the potential of the space continues to attract many investors, including institutions. 

Recently, Aave launched an institutional DeFi platform, Aave Arc. Despite the overall dip in the crypto market, DeFi tokens have been the least affected. Uniswap (UNI), Aave (AAVE), PancakeSwap (CAKE), and other DeFi tokens have all had a positive rise in value in the past seven days. 

Available data on DeFiLlama would also show that the TVL of assets locked in the space is currently over $230 million.

However, like Chainalysis pointed out, crypto adoption growth might be hampered if solutions are not found for the risks attached to using digital assets.

What Are Staking Tokens? How It Differ From Other Tokens?

Investors may think staking as less profitable option to mining. Although its the other way around.  A cryptocurrency wallet is used to keep money safe and secure for a blockchain network. Staking is just locking up cryptocurrency in order to reap the benefits.

Proof of Stake (PoS) is an important concept to learn before diving into the world of staking. It is possible to run a blockchain more efficiently while retaining a reasonable degree of decentralisation by using PoS, a consensus method. Let’s take a look at what Proof of Stake (PoS) is and how it works.

What is Staking?

Staking cryptocurrency implies committing crypto assets to a blockchain network to facilitate and validate transactions. Proof-of-stake (POS) allows cryptocurrency owners to verify block transactions based on staked currencies. As an alternative to Proof-of-work (POW), which is used to verify blockchains and add new blocks, POS was made. POS is considered less dangerous since it arranges payments in a manner that makes an attack less effective.

At the end of the day, staking is a way to earn rewards for holding cryptocurrencies.

How Staking Tokens Differ From Other Tokens?

Trust Wallet is an example of a crypto wallet that allows one to stake their coins straight from their account. On the other side, staking is available on several exchanges.  All one has to do is keep their coins in the exchange’s custody.

Play-to-win gaming platforms like Decentraland, Sandbox, and Axie Infinity are where most of the NFT staking opportunities are found, among others. All one needs to stake is a cryptocurrency wallet that has NFTs in it, and that’s all. Although, it should be noted that not all NFTs can be staked.

Staking in NFTs is a new approach to generate cryptocurrency passively. In order to get incentives, NFT holders may store their assets on DeFi platforms. They can all keep their NFT collections without having to sell them. Investors may profit from less overall supply by using NFT staking. For the most part, however, NFT stakes open the door to new applications for NFTs outside of digital art collection, but not all NFT’s can be staked unlike tokens.

The 4 Best Crypto Staking Tokens of 2022 are as follows:

Terra (LUNA)

Terra (LUNA) hit a new record of $20.05 billion in total value locked (TVL) across its 13 product lines, according to industry figures. Terra’s TVL was $11.9 billion on Dec. 1, up 68% in less than a month.

Luna is presently trading around $90, a gain of almost 12,000% from its price of $0.7 in January 2021. The coin is now valued at $34.8 billion on the market. LUNA has an annual staking payout of roughly 12.10 percent, making it one of the finest cryptos to stake.

PancakeSwap (CAKE)

PancakeSwap (CAKE) is a popular and enjoyable staking platform that allows users to stake any CAKE tokens they earn. When users stake CAKE coins, they have the option of earning extra CAKE or other currencies. Transaction costs on Binance Smart Chain are much cheaper than compared to Ethereum.

The owner may either collect their rewards or reinvest them into PancakeSwap after earning them. The CAKE coin’s yearly returns vary from 31 to 42 percent, making it one of the greatest crypto staking currencies available.

Shiba Inu (SHIB)

Shiba Inu (SHIB), also known as Shiba Token, has been more popular in recent years. With a 9.4 billion dollar market cap, it is now the 9th biggest cryptocurrency. Many investors regard SHIB as an asset to acquire and retain in their cryptocurrency portfolio. With the ShibaSwap exchange launch, SHIB holders may now stake and farm their tokens.

While Shiba Inu operates on Ethereum (now PoW), the initial quantity of SHIB was minted upon launch; therefore, it cannot be mined. SHIB holders may stake their Shiba coins on the ShibaSwap exchange for BONE tokens and 0.03 percent of the ETH swap transaction costs.

Solana (SOL)

SOL is a great staking currency due to its cheap transaction fees and fast transfers. On the Solana network, users may stake their coins with over 640 validators, but one cannot operate their own node.

It’s possible for the owner to share in the rewards that validators get on Solana if the owner gives them the stake. When the owner stakes the SOL coins, they may expect to obtain yearly returns ranging from 7–11 percent. SOL coins have soared in value in recent months, hitting an all-time high of $210.

Conclusion

Proof of Stake and staking opened the crypto market to more people who weren’t able to mine or trade cryptocurrency. Crypto staking is open to anyone wishing to contribute to blockchain consensus and governance. As the entry barriers to the blockchain ecosystem drop, staking becomes more comfortable, simpler, and more economical. With cryptocurrencies paying high interest rates, staking could be a brilliant method to earn passive income.

3 Coins With The Potential To Be The Next SHIBA in 2022

Therefore, in this list, we are going to discuss 3 coins with the highest potential to reach SHIBA levels or maybe even beyond in 2022.

AXS – Metaverse Could Prompt High Gains

After the launch of the Metaverse, and still being in beta, it’s very likely that any cryptocurrencies associated with this particular project could see some serious gains in the future.

Naturally, the coin that’s likely to benefit the most out of this is ETH, but not as much as Axie Infinity’s AXS. The thing is that ETH 10x-ing is like a world-changing phenomenon, which is unlikely to happen in 2022. However, AXS 10x-ing is realistic considering its current trading volume and price.

Buy AXS with Binance

Even if it may falter in long-term gains, current charts show a pretty good set-up for short-term consolidations considering the last week’s volatility.

SAPE & SPEP – A New Take on Community Cryptos

Although it’s 2 coins, SAPE and SPEP are part of the same project, so it’s likely that when one of them grows, the other will follow suit just a bit more behind.

The SAPE & SPEP project, created by Stadium.Finance revolves around community involvement in price movements of their chosen crypto. 3 times every day, these tokens fight a virtual battle to determine which one’s supply will be burned. The community decides the winner by being as active as possible with transactions.

Considering that the project has been live for a little more than 2 months the current growth is astounding. Add to that the recent announcement of a Whitepaper launch as well as a successful audit, and we see a project walking the exact same journey that took SHIBA to the moon.

Both coins already have a combined market cap of $20 million and a daily trading volume currently in its recovery phase. Both SAPE and SPEP have huge potential both in the short and long terms.

CAKE – The Times Square of Crypto

CAKE is a part of the PancakeSwap exchange, which is currently the highway that every newly launched cryptocurrency is taking.

In one way or another, many people are comparing CAKE to BNB considering just how many projects are appearing on its native PancakeSwap exchange. The history of performance is in many ways similar to BNB as well.

Although the coin is going through its many bearish markets, its growth is expected in the short term due to many new projects being added to PancakeSwap as well as the potential to incorporate CAKE in all PancakeSwap transactions.

Is PancakeSwap (CAKE) Ready To Start A New Trend?

PancakeSwap Moves Away From Recent Lows

PancakeSwap managed to find support in the $11.00 – $12.00 area and made an attempt to settle above the $13.50 level but lost momentum and moved back to $12.60.

There were no specific news to trigger the move, and it looks that traders were ready to increase their bets on CAKE after a long pullback which took it from the $27 level to the $10 level.

It should be noted that increased interest in CAKE emerged at a time when leading coins, Bitcoin and Ethereum, made an attempt to rebound after the recent pullback.

Recent news about Tesla‘s decision to accept Dogecoin as payment for merch boosted interest in crypto markets, but this news failed to provide sustainable support.

Today, the Fed will announce its Interest Rate Decision and provide an update on its asset purchase program. As crypto markets have gone mainstream, the outlook for Fed’s moves has become a catalyst for them. In case the Fed sounds too hawkish, riskier assets will find themselves under pressure, which will be bearish for cryptocurrencies.

A Test Of The 20 EMA Will Show Whether CAKE Has Enough Support

cake december 15 2021

CAKE has recently managed to get out of the previous downside channel and is trying to gain additional upside momentum. Currently, CAKE is trying to stay above the 20 EMA at $12.70.

In case this attempt is successful, CAKE will move towards the resistance which is located near the recent highs at $13.60. A move above $13.60 will open the way to the test of the resistance at the 50 EMA at $14.80.

On the support side, a move below the 20 EMA will push CAKE towards the support level at $11.75. This will be a disappointing development for bulls as CAKE will move back into the previous downside channel. In case CAKE declines below $11.75, it will move towards the support level at $10.70.

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