Weekend Market Wrap: Top Updates From the Cryptocurrency Market

Key Insights:

  • With BTC’s price above the $30,000 mark, market confidence seemed to return.
  • Most of the top altcoins were trading in the green on a renewed market momentum.
  • The recent short-term gains seem to be temporary as the market could see further downside.

Most cryptocurrencies traded higher as Sunday approached with a wind of fresh air for crypto investors. While it wasn’t a full-blown recovery, markets headed towards gains, as bearish sentiment waned.

Over the last six months, the cryptocurrency market reached as high as $3 trillion and dropped to as low as $1.2 trillion. In the last half a year, the cryptocurrency market cap has lost $1.9 trillion; these losses are bigger than those witnessed during the 2007’s subprime mortgage market crisis.

The high losses and higher trading volumes have propelled fears of crypto market risk spilling over across traditional markets hurting stocks and bonds. The same also indicates the increased correlation in the high-risk and traditional finance markets.

A return of short-term buyers, as the cryptocurrency market cap inches close to the $1.5 trillion mark, shows optimism in the market. However, the return of traders isn’t indicative of larger market recovery as technicals present limited upside in the short term.

Nonetheless, with the global crypto market cap returning to the $1.30 trillion mark at press time, noting a 4.73% increase over the last day, the same pointed towards a short-term recovery.

So, let us take a quick look at how the market reacted over the last week and where it could go, moving forward.

Bitcoin staging a recovery?

The bitcoin (BTC) price dropped to the lows last seen in late 2020, amid the COVID-19 crisis. Recently, after a storm of Federal Reserve interest rate hikes, the scaling back of its massive $9 trillion balance sheet, and a huge $18 billion stablecoin meltdown, the same brought down the larger crypto market cap and the top crypto asset.

Bitcoin’s price fell to as low as $25,800, but pressure from bulls ensured a short-term recovery back to the sub-$29,000 zone. At the time of writing, the top cryptocurrency, traded at $30,284, noting a 4.11% price rise, over the last day.

FXempire, BTC, Crypto, bitcoin
BTC Price Action | Source: FXEmpire

While the BTC gains instilled some confidence in the market participants, analysts believed that market gains wouldn’t sustain for long with volatility still high. Data analytics site, Glassnode, tweeted that Bitcoin dropped below $30,000, as inflation fears and the Fed’s readiness for “short-term pain” rattled markets.

Notably, BTC was down by 58% from its all-time high price, while SPX was down by 18%, NDX was down by 30%, and US bonds have fallen by 15% from their ATH.

Top market movers

Despite the larger bearish blues, some altcoins took advantage of BTC’s short-term gains as their prices took a bullish turn. At the time of writing, with BTC back above the psychological $30,000 mark, most of the top altcoins like ETH, BNB, XRP, ADA, SOL, and AVAX were trading in the green on their daily charts.

Ethereum traded at $2,079.78, noting 5.61% daily gains, while BNB was up by almost 9%, in the last 24-hours. Fantom’s price performance has also been decent in the last week. FTM traded at $0.3654, noting 19.87% gains, over the last day.

Privacy tokens like ZEC and XMR were up by 21.32% and 17% in the last 24-hours. Of late, privacy tokens have often charted bullish price trajectories when the larger crypto market is down.

That said, DeFi token MKR was one of the top gainers of the last week. At the time of writing, MKR traded at $1,575.27, noting 10.28% daily and 30.90% weekly gains. MKR had reversed the losses made in the first week of May.

FXempire, MKR, Crypto, maker
MKR Price Action | Source: FXEmpire

Top news from the crypto verse

A positive development in the crypto space came from Nigeria, where the nation’s Securities and Exchange Commission has released new rules to guide the issuance, custody, and exchange of digital assets and classify them as securities.

In other news, Chile was still considering whether to move forward with a central bank digital currency (CBDC), despite the earlier disclosed plans to have a proposal ready by early this year.

That said, the Terra ecosystem fall still stood as one of the top stories, in the last week. Earlier today, an FXEmpire article highlighted how Binance’s Changpeng “CZ” Zhao cleared the exchange’s name as rumors about Binance investing in Terra surfaced on crypto Twitter. CZ also questioned the idea of hard forking the Terra blockchain to revive the LUNA and UST ecosystems.

Best Performing Altcoins of Last Week: BNB, TRX, MANA, MKR

Key Insights:

  • Bitcoin’s price faced strong resistance at the $31,000, while altcoins made attempts to recover. 
  • BTC’s recovery above the $27,000 mark pushed certain altcoins towards a short-term recovery.
  • BNB, TRX, MANA, and MKR were among the coins that got a decent upswing.

Bitcoin’s price attempted recovery above the $30,000 resistance level, but after facing rejection ahead of the $31,000 mark, its price oscillated close to $28,983 at the time of writing. BTC’s price jumped by almost 7% in a day, cutting its weekly losses to less than 18%, in tandem altcoins saw a short-term price push.

The world’s largest cryptocurrency by market cap was still down by over 50% from its all-time high made in November 2021 at around $69,000. After BTC’s recent short-term uptrend, most of the major altcoins faced the uphill task of recovering above their key support/resistance levels.

Altcoins short-term price surge

Certain altcoins that performed well over the last week in tandem with BTC’s recovery above the $27,000 mark were binance coin (BNB), Tron (TRX), Decentraland (MANA), and Maker (MKR).

In addition to that, two ethereum (ETH)-based altcoins called Chain’s XCN and FLEX Coin’s FLEX token charted notable weekly gains despite the widespread crypto meltdown.

The native token of the blockchain technology company chain, XCN, rose by more than 30% in price over the last seven days from a low of $0.071 to a high of $0.091.

On the other hand, Hong Kong-based futures exchange platform’s native token FLEX jumped by over 33% in the last week from a low of $3.72 to a high of $4.95.

Furthermore, many altcoins like DOT, AVAX, SHIB, MATIC, FTT, FTM, and APE were briefly in the green zone. Apecoin’s APE token rallied by 46%, breaking above the $9.00 level, while FTM, MANA, and GALA saw close to 50% gains over the last week.

BNB, TRX, MANA, and MKR see short-term price gains

Binance Coin’s BNB saw a bounce from the $200 support zone, rising to as high as $300 on May 13. However, the fifth-ranked coin by mark cap faced considerable resistance at the $315 mark and after making a high of $313 on May 13, it made its way back to the $250 level.

FXempire, BNB, Crypto
BNB Price Action | Source: FXEmpire

If bulls fail to ride the sell-side pressure, the price might correct lower, but dips could be limited below the $250 level. At the time of writing, BTC’s price pullback to the $28,900 mark brought BNB’s price down to the $279.36 level.

BNB’s price was down by 9.35% in the last 24-hours and almost 25.62% over the previous week.

Apart from BNB, Tron’s TRX token maintained its price above the key $0.067 mark despite the market-wide sell-off. TRX’s price made it close to the $0.084 mark but faced resistance at the higher level, which led to a pullback towards the $0.067 mark.

FXempire, TRX, Crypto
TRX Price Action | Source: FXEmpire

While TRX’s price maintained its rangebound movement between the $0.067 and $0.084 mark, its price didn’t fall below the key support zone at the $0.065 mark which was noteworthy.

Defi token MKR was another coin that performed well amid high sell pressure in the larger market. On the other hand, Decentraland’s MANA gained up to 50% as the market saw a short-term recovery.

Maker Protocol’s MKR token recovered from the last week’s losses as the price pushed above the $1500 mark. At press time, MKR traded at $1,456.29, noting 1.71% daily and 9.55% weekly gains.

On a weekly chart, MKR’s price made a higher high for the last four days.

FXempire, MKR, Crypto
MKR Price Action | Source: FXEmpire

At the time of writing, data from CoinMarketCap highlighted that MANA was the top gainer in the top 100 assets by market cap.

FXempire, BTC, Crypto, Altcoins
Source: Coin Market Cap

The 33rd ranked coin by market cap traded at $1.14, noting 4.19% daily gains. Over the last two days, MANA’s price recovery above the $1.13 mark has instilled positive momentum for the coin.

FXempire, MANA, Crypto
MANA Price Action | Source: FXEmpire

If bulls push MANA above the $1.15 mark, further gains could be expected in the near term for the alt.

So, what do altcoins need to recover?

Most of the top altcoins have a high BTC correlation during bear markets. The top coin’s price movement and volatility provide ample opportunities for alts to rally.

Crypto analyst Rekt Capital notes that BTC would need a monthly close above the $35,000 mark for a bullish higher timeframe close and to keep losses at bay. While a monthly close above the $35,000 mark may seem unachievable, if volatility and buying pressure takes on the same could pan out in favor of the bulls.

BTC’s monthly close above the key resistance at $35,000 could aid positive momentum to altcoin trajectories. In the last week, BTC’s price has made some decent progress recovering above the range low of around $28,600, but a push from bulls above the $30,000 mark would be needed for altcoins to move upwards.

Analyst Rekt Capital also highlighted that for ‘BTC to develop some semblance of bullish momentum, it needs to keep $28600 as support for price to challenge $32000.’ However, a BTC weekly close below the $28600 mark would be bearish.

Bitcoin Funds See Majority Weekly Outflows Since June 2021: CoinShares

Key Insights:

  • Crypto investment products saw outflows totaling $120 million, last week.
  • Bitcoin-based funds top outflows, resulting in the largest single week of outflows since June 2021.
  • Total outflows in this four-week run recorded $339 million.

Digital asset investment firm CoinShares has rolled out its latest weekly crypto fund flows, showing net outflows totaling $120 million, last week.

Per the report, bitcoin (BTC) funds alone saw the majority of outflows, resulting in the largest single week of outflows since last year June. BTC funds worth $132.7 million exited last week, bringing month-to-date outflows for the month of April, to $310.8 million.

Source: CoinShares

Bitcoin was followed by ethereum (ETH) outflows, recording $25 million, last week, a huge margin when compared to bitcoin.

The total outflows in this four-week run hit $339 million, which, according to CoinShares, is close to the $467 million outflows witnessed at the beginning of this year.

Region-wise, the Americas comprise 41% of the outflows, whereas Europe records 59%. There is still no clear indicator for the exodus, however, CoinShares noted:

“It is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the US Federal Reserve and the recent price decline.”

Multi-asset funds see inflows

The report noted that many altcoin-based funds also saw minor outflows such as solana (SOL), which recorded $1.5 million week flows and litecoin (LTC) saw $0.6 million capital moving out, last week.

While multi-asset funds saw an uptrend with a $1.9 million inflow for the week. terra (LUNA) and fantom (FTM) also saw minor inflows totaling $0.39 million and $0.25 million, respectively.

“FTX Token, the utility token for the fast-growing FTX crypto exchange, bucked the negative trend with inflows totaling $38 million, last week, the largest of all crypto assets we track,” the report read.

Bitcoin price plunge

Most cryptocurrencies are dropping as other digital assets are seen trading in red, on Wednesday. The overall crypto market seems to shine low as investors are worried over the US Federal Reserve’s expected increase in interest rates.

The bitcoin price plunged by 0.32%, falling below $40,000. The crypto was trading at $38,930 at press time.

0x Labs Raise $70 Million From Coinbase, Opensea and Jared Leto

Key Insights:

  • 0x Labs closed a $70 million Series B financing round.
  • Coinbase’s NFT marketplace also makes use of 0x’s technology.
  • Earlier in 2017, 0x Labs raised another $24 million in a ZRX token sale.

NFTs are slowly taking center stage, and some are in the bid of not only promoting but also being a central part of that growth. Coinbase is one such company that, after touching base with NFTs this month, is now helping others in this field excel.

0x Takes Another Giant Leap

According to a report from Forbes, 0x Labs has closed a $70 million Series B financing round with the bid led by the Greylock Partners.

However, they weren’t alone as others, including Pantera, Jump Capital, Ethereum NFT marketplace OpenSea, and Hollywood actor Jared Leto.

The San Francisco-based decentralized exchange infrastructure provider is a key player in the industry. 0x Labs’ technology was also used by Coinbase for its very own NFT marketplace Coinbase NFT. Coinbase itself was a participant in this $70 million investment.

This funding round, however, isn’t the first for 0x Labs. Earlier in 2017, through the sale of the ZRX token, 0x Labs had managed to raise about $24 million and then another $15 million in a Series A equity round, which was led by Pantera Capital.

The company has been building its name in the NFT marketplace industry after releasing a set of NFT swap features in the first quarter of this year.

This way, it enabled users to exchange digital collectibles across multiple blockchains such as Ethereum, Polygon, Fantom, Avalanche, Optimism, BNB Chain, and Celo.

In doing so, 0x Labs also claimed this facility to be 50% less expensive than what the other leading NFT marketplaces such as OpenSea and LooksRare offer.

How Did ZRX Do, Though?

Although the coin did open under $0.2 at the time of its launch in 2017, within a few months, it managed to mark an all-time high of $2.7. However, the downfall and fluctuations that followed since have not made it easy for investors.

Over the course of the last four months, though, the token has had trouble breaching the $1 mark, which it managed to after rising by almost 50% post the launch of Coinbase NFT.

0x ‘s token ZRX is still stuck trading at $0.8

But the broader market bearish cues led to the price falling back to trade at $0.8 at the moment.

NEAR Inches Closer to New ATH As Addresses Grow by 139% in Q1 2022

Key Insights:

  • Near Protocol launched its awareness-focused Foundation to support the development of projects.
  • At the same time, it registered the highest growth in addresses for Quarter – 1 of 2022.
  • Consequently, the price has risen by over 25% since yesterday.

NEAR was almost considered a blimp on the radar after it defied the market trend and marked an all-time high (ATH) in January.

But the altcoin managed to pull back up as March began, and as a result, it is close to breaking the ATH today, fuelled by some significant ecosystem developments.

NEAR Is Pretty Near $20

Yesterday, the NEAR Protocol launched the NEAR Foundation with the aim of establishing an ‘open web world’. And to achieve that, the Foundation will be spreading awareness, supporting projects, and providing a clear path to decentralization on the NEAR Protocol.

And not only is this a step in the right direction but it also comes at the right time, given the community’s support for the protocol is at its highest.

In the last three months, which marked the first quarter, NEAR observed a stark growth in its user base, which shot up by 139%, from 2.2 million to 5.3 million.

In the last 3 months NEAR has noted a 139% rise in its addresses | Source: Twitter

NEAR outperformed most of the other up-and-coming DeFi blockchains, as the likes of Crypto.com, Fantom and Avalanche were far below NEAR’s growth.

Talking about growth, NEAR hasn’t been far behind when it comes to price action. In the last 24 hours alone, the altcoin appreciated by 25.26% and stood only 4.24% away from marking a new all-time high.

Since the last one was at $20.2, the altcoin will naturally breach the $20 level soon.

NEAR rallied by 25.07% in the last 24 hours

 

Plus, it has the support of the market since price indicators are pointing towards a bullish narrative. The Parabolic SAR was about to establish a downtrend, but the same was invalidated by the green candle yesterday, thus moving the white dots of the SAR underneath the candlestick.

Furthermore, the MACD is continuing its bullish rise with the indicator line (white) keeping above the signal line (red), supported by the green bars.

Thus, NEAR certainly has room for more growth at the moment unless broader market cues end up raining on the altcoin’s parade.

Investors Seem Excited

It isn’t surprising to see so many new investors in these last few months, and it won’t be surprising still if the streak continues over the coming weeks. And looking at the state of the market, these investors couldn’t be coming in at a better time.

At the moment, the Sharpe Ratio, which indicates the risk-adjusted returns of an asset, is at its seven months highest at 6.47. This places NEAR in a very appealing position, and for the same reason, we could note higher inflows throughout April.

NEAR’s Sharpe Ratio is currently at 6.47 | Source: Messari

Shiba Inu Transaction Volume Soars 288% As Price Rallies by 21%

Key Insights:

  • The broader market recovery also triggered Shiba Inu’s staggering 21.19% rally.
  • Bullishness coming from investors resulted in the transaction volume rising by almost four times.
  • The rally also led to SHIB’s listing on the Canadian exchange Netcoins.

Today proved to be a rather unexpected event for both Bitcoin and the altcoins as a rally triggered the entire crypto market to rise by over 5% ($120 billion). However, Shiba Inu managed to stand out today after making spectacular gains over the last 24 hours.

Shiba Inu Bags Inflows

In the last two weeks, Shiba Inu noted a stable rise, but today, the altcoin exploded and rose by 21.19%. In doing so, the coin marked a local top of $0.00002854.

But the bullishness over the last 15 days combined with the cues from the broader market is the actual reason behind this rise.

On the MACD indicator, SHIB has observed rising bullishness since March 18, after successfully marking a bullish crossover on the day before. The MACD line (white) only rose further today, leaving behind the signal line (red).

But the rally did so much more for the coin by turning the active downtrend into an uptrend today as the white dots of the Parabolic SAR shifted underneath the candlesticks.

Shiba Inu rose by 21.19% today

Thus, the allure of the Shiba Inu led to a significant rise in the activity from investors as well, and the meme coin noted a stark increase in the trading volume.

While SHIB clocked in about $792 million today yesterday, the same figure rose to $3.08 billion. This marks a 288% rise in 24 hours as of press time, which was certainly beyond expectations.

Shiba Inu’s trading volume spikes by 288% | Source: Yahoo Finance

Most of this came from the buy orders in the market, which exceeded the volume of SHIB sold at different intervals throughout the day.

In aggregate, about 761 billion SHIB worth approximately $21.8 million has been bought out during the trading hours at the time of writing.

Shiba Inu observed higher buys over sell today | Source: IntoTheBlock

Shiba Inu Finds Another Home

While Shiba Inu’s loyal community is enough for the meme coin, today’s performance certainly put it on the hotlist of multiple crypto exchange facilitators.

One of them was a Canadian cryptocurrency exchange, Netcoins, which listed Shiba Inu in its library of assets. Along with SHIB, Dogecoin, Decentraland, Polygon, and Fantom were also listed.

But Shiba Inu will also need to bring in some ecosystem development every now and then since, at the moment, no new development has been observed on the network.

FTM Retreats As TVL Shrinks by 40% in Four Days

Key Insights

  • FTM retreats amid fast decline in TVL. 
  • Total Defi TVL trends are also not encouraging, but there is no panic. 
  • FTM needs to stay above the important support level at $1.25 to avoid an additional sell-off. 

Fantom found itself under strong pressure as TVL declined from $12.09 billion to $7.14 billion amid worries about the exit of Yearn Finance founder Andre Cronje.

DeFi Industry Faces Test Amid Global Rush to Safety

Total DeFi TVL continues to move lower at a measured pace, and the recent trend looks like a normal correction after a huge upside move.

The key question is whether total DeFi TVL will be able to return to growth amid global rush to safety. Safe-haven assets like the U.S. dollar or gold are in a rally mode, while leading cryptocurrencies like Bitcoin and Ethereum have had mixed performance in recent weeks.

The above-mentioned internal developments in the DeFi space may put additional pressure at times of uncertainty, and traders will have to closely monitor the dynamics of the total DeFi TVL to evaluate whether there is “contagion” from the recent developments in yearn.finance.

FTM Entered the Key Support Area

ftm march 7 2022

FTM found support near $1.32 and is currently trying to get back above the $1.40 level. In case this attempt is successful, FTM will move towards the resistance level near $1.43. A move above this level will push FTM towards the resistance at $1.47. In case FTM manages to settle above $1.47, it will head towards the next resistance at $1.53.

On the support side, FTM needs to stay below $1.40 to have a chance to develop downside momentum in the near term. The next support level for FTM is located near $1.32. If FTM declines below this level, it will head towards the support at $1.25.

It should be noted that FTM has recently entered into the key $1.25 – $1.45 support area, and a move below $1.25 will likely lead to a sell-off.

KyberSwap DEX Launches on Arbitrum, Amid High ETH Gas Fee

Key Insights:

  • KyberSwap DEX has been launched on the Arbitrum network.
  • Arbitrum enables faster transaction finality and lowers transaction fees.
  • The integration aims to eliminate the issues with ETH’s ‘expensive gas fees.’

Kyber Network’s decentralized exchange (DEX) aggregator KyberSwap has recently launched an integration with the layer-two (L-2) Ethereum scaling solution – Arbitrum network.

The move aims to help users evade Ethereum’s high gas fees and network congestion.

Widening Adoption

In efforts to widen adoption, the KyberSwap multi-chain DEX aggregator and liquidity protocol had already been deployed across six networks – Ethereum, Polygon, BSC, Avalanche, Fantom, and Cronos.

The most recent integration with Arbitrum falls in line with the network’s ongoing strategy to widen adoption, as highlighted in a press release by the firm.

The network further says in the release that the Arbitrum network would allow ‘near-instant transaction finality and low transaction fees’ while enhancing security.

As claimed by the network, KyberSwap users would now have access to another convenient option to trade tokens at faster speeds and with lower costs.

Victor Tran, CEO, and Co-Founder, Kyber Network, said,

“With decentralization comes challenges of scaling, and solving for congestion, gas fees and slippage bring us closer to a truly seamless decentralized economy. This partnership between KyberSwap and Arbitrum is a big step forward towards creating the most user-friendly experience for users, as well as robust and highly extensible trading API for partners.”

Kyber Network is a multi-chain crypto trading and liquidity hub that connects liquidity from different sources to enable trades at the best rates.

Challenges With Ethereum

With KyberSwap’s recent integration, the network aims to cater to retail investors that face issues with ETH’s ‘expensive gas fees’ and network congestion.

A statement by the firm highlighted that network congestion on ETH leaves many ‘users put off’ and creates a need to ‘solve it through Layer-2 scaling and other efforts.’

Notably, the average cost of a transaction on Ethereum is currently relatively low at 28 gwei, around $1.5, according to data from Etherscan. However, in the past, the gas fee had spiked to as high as $100 during periods of congestion.

That said, gas fees on Arbitrum range from $0.50 to $0.69 according to L2 data aggregator L2 Fees. Interestingly, Arbitrum’s performance in March has been up to the mark as the network saw increased on-chain activity.

Data from Nansen’s Twitter account showed that activity on most layer-2 protocols slowed down; However, Arbitrum saw a 12.7% rise in on-chain activities.

That said, in terms of total value locked, Arbitrum is still taking the top spot with just over $3 billion, giving it a market share of 54.9%.

DeFi Collateral Tanks as Key Developers Bail Out

Key Insights:

  • Yearn Finance founder Andre Cronje quits the crypto space.
  • Fantom and Solidly TVL and token prices dump.
  • DeFi collateral continues to decline on cooling crypto markets.

Collateral in decentralized finance (DeFi) projects is referred to as total value locked (TVL), a measure that has been attributed to the overall health of the ecosystem.

That figure, along with DeFi token prices, has nosedived today following the announcements that some prominent figures in the industry are throwing in the white towel on their projects.

According to industry tracker DeFi Llama, the TVL across all platforms has declined around 3% on the day resulting in a loss of around $15 billion over the past week.

The total figure is now around $193 billion, down 24.6% from its December 2 all-time high of $256 billion. Chinese industry analyst Colin Wu observed that some platforms were hemorrhaging collateral much faster than others.

It should be noted that declines in DeFi TVL are often related to declines in the prices of the underlying tokens, and crypto markets have been down-trending for the past three months.

Cronje Quits

Often dubbed the “godfather of DeFi,” Yearn Finance founder Andre Cronje has deactivated his Twitter account and made an abrupt exit from the space.

Cronje’s colleague from the Fantom Foundation, Anton Nell, confirmed the departure in a tweet on March 6, stating:

“Andre and I have decided that we are closing the chapter of contributing to the defi/crypto space. There are around ~25 apps and services that we are terminating on 03 April 2022.”

He added that this was not a “knee jerk reaction to the hate received from releasing a project, but a decision that has been coming for a while now.”

Cronje has been an instrumental figure in the DeFi sector over the past couple of years with new and innovative ideas and projects. The crypto community is largely split over his decision to quit, with some siding with him and offering support while others are claiming it is a rug pull (when project owners or developers disappear and dump on investors after selling their tokens).

DeFi Tokens Tanking

Unsurprisingly, Yearn Finance tokens (YFI) have tanked 10% on the day in a fall to $18,094 at the time of writing. The native token for the DeFi yield aggregator is currently down 80% from its May 12 all-time high of $90,786, according to CoinGecko.

Fantom’s FTM token has been smashed 19.3% on the day, falling back to $1.34. FTM is now 61% down from its October 28 all-time high of $3.26.

Total value locked for Fantom, an Ethereum (ETH) scaling blockchain co-developed by Cronje, has plummeted 21% overnight. Solidly, another Cronje production has lost 68% in TVL over the past couple of days.

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.

DeFi Protocol Yearn Finance (YFI) Expands to Ethereum’s Arbitrum

Key Insights

  • Yearn.Finance (YFI) recently added support for Arbitrum, a Layer 2 network for Ethereum
  • This integration is set to aid Yearn Finance’s growth by reducing transaction costs and transaction fees involving Ethereum-based tokens
  • Other DeFi platforms that added support for Arbitrum include Uniswap and 1inch

Yearn Finance, the 14th ranked DeFi protocol by total value locked, recently announced its expansion into the Ethereum-based Layer 2 solution Arbitrum. With this expansion, Arbitrum became the first Ethereum Layer-2 to be integrated by the DeFi protocol.

Yearn Finance Integrates with Arbitrum

Yearn Finance is a platform for yield-optimizing DeFi protocols anchored on the Ethereum blockchain. The platform’s primary goal is to maximize returns on your cryptocurrency by arbitraging different lending platforms in search of the best available yield.

Yearn Finance also aids shifting between protocols like dYdX, Aave, and Compound, as interest rates differ between these platforms.

The protocol’s decision to support Arbitrum will allow users to transact Ethereum-based tokens without moving those coins on the Ethereum blockchain itself. The project claims that the integration with Arbitrum could drastically reduce gas costs or transaction fees by a factor of 10.

Yearn Finance’s Twitter account revealed on February 24 that it had deployed its initial instruments to Arbitrum.

What Difference Does Arbitrum Bring?

Arbitrum is an inaugural Ethereum Layer-2 solution that Yearn Finance will add (YFI). This integration comes just a few weeks after the release of Yearn’s vaults on Fantom.

The team revealed that the reasons behind choosing Arbitrum were that the solution is Ethereum’s largest L2 with close to $3 billion in total value locked. Furthermore, the team claims that the deployment will bring gas costs by almost ten times.

That said, major crypto exchanges like FTX and Binance will support Arbitrum’s deposits.

Additionally, the project says that the decision to support a Layer 2 network strengthens its ‘first true love: Ethereum.’ In its inaugural release, Yearn Finance noted that it offers a single vault dubbed Curve’s triCrypto.

It also said that it accepts liquidity in three tokens, namely WBTC, WETH, USDT.

Some other DeFi platforms that added support for Arbitrum include Uniswap and 1inch. Notably, Uniswap began adding support for the Layer-2 solution in May 2021, while 1inch added support for Arbitrum around September last year.

Binance Users Can Now Auto Invest Fantom Blockchain’s FTM

Binance users can now use the auto-invest feature for the native token of the Fantom blockchain, FTM. The exchange announced this early today, stating that the token has now joined the growing numbers of crypto assets with the auto-invest feature enabled. 

With the feature, users can automatically use a dollar-cost averaging strategy to invest their tokens.

Binance Adds Auto Invest Option to FTM

Auto invest is one of the newest features on Binance. Users can automate their crypto investments while also earning passively through it. The auto-invest option is available on the Binance app, and it enables users to manage how volatility will affect their investments.

Binance launched auto investment in November 2021 as part of its Binance Earn suite. At the time of the launch, the feature supported only Bitcoin, Ethereum, and the exchange native token, BNB

But since then, the crypto firm has added other crypto-assets like Solana, Polkadot, Cardano, Algorand, Terra, Litecoin, and others.

According to Binance, by the end of 2021, there were more than 100,000 auto-invest plans with a total trading volume above $10 million. This shows that many users are adopting the feature.

FTM Price Declines by 0.8% in 24 Hours

The Fantom blockchain is one of the few high-performance open-source platforms with smart contract capabilities. The network considers itself an improvement on other blockchain networks due to its novel consensus mechanism.

It was recently in the news for a new governance proposal seeking to reduce the amount of self-staked tokens needed to be a validator on the network. The platform is home to several decentralized applications and has a TVL of over $8 billion, according to data on DeFiLlama.

Thus, the addition of FTM is likely to help boost the token’s value in the long run. In the last 24 hours, FTM’s value has dropped by 0.8% and is currently trading for $2.06.

This continues the recent poor price performance that has seen it lose 8.5% of its value in the last seven days and around 30% over the previous 30 days.

Shiba Inu Scores Second Listing in Brazil With Foxbit

Shiba Inu has scored its second big listing on a Brazilian exchange after Foxbit started trading it. 

The listing doesn’t come as a surprise, given that the exchange announced a few days ago that it’d be listing the meme coin on February 16. 

Foxbit Lists Shiba Inu, Others

However, Shiba Inu wasn’t the only coin listed. The crypto exchange also listed Gala’s ecosystem native token (GALA), Fantom (FTM), and the native token of fast-rising NFT marketplace, LooksRare, (LOOKS).

Foxbit crypto exchange is based in São Paulo, Brazil, and has been in existence since 2014. The exchange has almost one million registered customers making it one of the biggest in the region. 

With the listing, Shiba Inu is now available for trading on two Brazilian exchanges. Brazil’s biggest exchange, Mercado Bitcoin, added Shiba Inu to its platform in December. Other crypto exchanges in Latin America like Bitso have also listed Shiba Inu. 

The listing had significant impacts on the cryptocurrency’s price action when it was first announced on February 09.

After Foxbit tweeted the news, Shiba Inu was the 4th most traded cryptocurrency 24 hours after that. This followed an almost 70% rally in the week leading to that.

Shiba Inu Price Drops by Over 2% in 24 Hours

But the actual listing doesn’t appear to have impacted Shiba Inu’s price. In the last 24 hours, the value has dropped by 2.3% to $0.00003047. Its seven-day price action isn’t also that encouraging, its value has declined by 2.3% within that period too. 

This is in line with the general trend in the market where most crypto assets have dropped slightly in value. Presently, the overall market cap has fallen by 1.4%

However, this doesn’t necessarily mean the listing could not later positively affect the price. Generally, token listing on a new exchange means more people will have access to it, boosting its trading volume. 

While its prices might be down, over 435 million Shiba Inu tokens have been burnt in the last 24 hours. This is part of the Shib burn pledge by several businesses using Shib. 

Steven Cooper, the CEO of Bigger Entertainment, one of the companies part of the burn pledge, said that about 1 billion SHIB tokens would be burnt this week.

DeFi Data Shows That AVAX Total Value Locked Returns Above $10B

Total Value Locked (TVL) is a very important growth metric for DeFi because it shows how much crypto is deposited in those protocols.

Decentralized Finance (DeFi) protocols have been growing over the past year on Ethereum alternative blockchains such as Avalanche

According to DefiLlama data, one year ago the Total Value Locked within the AVAX ecosystem was $9.1 million and today it is $10.77 billion, which is an increase of 118.3k%. Nowadays, there are 156 DeFi protocols supporting the Avalanche ecosystem.

Avalanche TVL is now over $10 billion again since approximately three weeks ago, but it is still down 21.8% from its TVL all-time high of $13.79 billion in December 2021, as you can see below:

AVAX Total TVL Chart. Source: DefiLlama

The top five DeFi protocols in the AVAX ecosystem (Aave, Trader Joe, Benqi, Curve, and Multichain), represent 71% of the total of AVAX TVL.

What Is the Percentage of AVAX TVL in the Market?

Although $10.77 billion seems like a lot of money, when it comes to comparing it with other blockchains it is not that big.

The total of all blockchains TVL is $208.12 billion at the time of writing. This puts AVAX’s TVL in fourth place, representing just 5.16% of the overall TVL.

Ethereum is in first place with $126.17 billion of TVL, this represents 59.22% of all TVL. There are 517 DeFi protocols in the network, according to DefiLlama data.

In second place is Terra, with $14.52 billion of TVL, in third place is Binance Smart Chain with $13.19 billion of TVL and in fifth place is Fantom with $8.72 billion of TVL.

To put you in perspective, the first five blockchains represent 81.8% of the overall Total Value Locked (TVL).

Has the AVAX Price Changed Recently?

AVAX is the 10th biggest cryptocurrency by market capitalization with $21.73 billion, according to CoinMarketCap. It is now trading at $88.79 and is down 0.74% in the last 24 hours.

The cryptocurrency is still down 38.70% from its all-time high of $144.85 in late November 2021. It has been in an ascending channel since it found support around $50. Now is facing resistance in its actual price, as you can see below:

AVAX/USD Chart – Source: FXEmpire.

AVAX’s price all-time high coincides with the all-time high of the TVL back at the beginning of December 2021.

In DeFi, it is very important to always consider the risks. Last month a Binance Smart Chain DeFi protocol was hacked and lost $80 million.

It will be interesting to see in a few years if Ethereum will still dominate in TVL after more DeFi protocols are developed in different blockchains.

Fantom Price Loses Over 7% After new Governance Proposal

The value of the Fantom (FTM) token has dropped by over 7% in the past 24 hours to around $1.91. This comes amidst the announcement of a new governance proposal for the platform. 

Fantom Makes new Governance Proposal

The next-gen layer-1 smart contract network seeks to reduce the number of self-staked token amounts needed to run a validator node.

There are three proposed options in place, which are 50k FTM, 100k FTM, and 250k FTM. So far, most people have voted for 100k FTM, but the percentage of the vote is still far below what it’ll take to reach a quorum. 

Most networks require only half or even less than half of token holders to have a quorum. But Fantom requires 90% of token holders to vote. So far, only 13.27% have voted.

Fantom describes itself as an open-source, high-performance, scalable smart contract platform. It overcomes the limitations of older blockchains while remaining permissionless and open source. It’s also faster and more cost-efficient than older networks because of its aBFT consensus mechanism Lachesis.

The platform is compatible with Ethereum but solves the problem of scalability that users face when using the network of the second-largest crypto asset by market cap.

Unlike Ethereum, where every decentralized application is built on the network, Fantom gives applications its blockchain network

The proof of stake network has grown significantly since its mainnet launch in 2019.

With this new proposal, the network seeks to become more decentralized by giving more people the opportunity to become validators.

FTM Quorum Demands “Unrealistic”

Presently, the minimum amount to become a validator on the network is 1 million FTM. That’s almost $2 million going by the current value of the token. Therefore, a reduction will see more nodes and greater decentralization. 

However, whether or not this will happen depends on whether a quorum is reached. Given the 90% requirements for a quorum, the chances are pretty slim. 

According to some of the token holders on Twitter, a 90% quorum is unrealistic. One, in particular, pointed out that they had a similar proposal some weeks ago, which failed because the quorum couldn’t be reached.

As for the FTM token, it’s unlikely that the governance proposal affected its price action. The price performance has been negative for the past 30 days, with over a 32% decrease. The drop in the last 24 hours only continues the trend.

Ethereum Whales Still Bullish on Shiba Inu, Grab 50 Billion SHIB

Despite the larger market’s recovery with Ethereum noting close to 8% daily gains at press time, meme tokens like Shiba Inu still ruled over the hearts of some ETH whales.

Data from WhaleStats revealed that on February 1, ETH whale ‘Juraiya,’ ranked 13th on the list of top Ethereum whales by the platform, purchased a whopping 50 billion Shiba Inu tokens worth $1.079 million. 

ETH Whales’ SHIB Love

The Ethereum whale known by the name ‘Jiraiya’ has purchased $1,079,500 worth of Shiba Inu equal to 49,998,760,270 tokens, according to the platform WhaleStats platform. Further, Shiba Inu made a comeback to the list of the top ten purchased coins by the largest ETH holders.

Just a week ago, an ETH whale bought 606,352,106,247 SHIB tokens worth over $12 million, as reported in a previous article.

The transaction took place after 2,413 blocks as confirmations show. However, SHIB wasn’t the only token ETH whales had their eyes on, in fact, an ETH whale bought 2,499,969 BAT worth $2,101,566 around the same time. 

Interestingly, Ethereum makes for only around 3.7% equivalent to $39,151,916 of this whale’s crypto portfolio at press time.

The amount of ETH in the whale’s wallet exceeded their SHIB holdings only by a minor percent. The whale also HODLs LINK which makes for 2.96% of the whale’s portfolio equivalent to $31,812,598.

That said, about a week ago, two large ETH whales acquired a huge amount of SHIB tokens around 106 billion worth slightly over $2 million at that time. On January 27, Shiba was on the top purchased tokens by top 1000 ETH whale wallets while other tokens on the list were MATIC, LINK, BAT, and FTM

Can A Shiba Recovery Follow?

At press time Shiba Inu oscillated at $0.00002159 noting 3.71% daily and 1.26% weekly gains.

On the other hand, Ethereum’s recovery seemed to be underway on the back of larger market gains triggered by Bitcoin’s sustained price action above the $38,000 mark. Notably, Ethereum at press time stood at $2,731.88 noting 7.69% daily and 11.99% weekly gains. 

Shiba was down 75.29% from its all-time high made in October end last year. Furthermore, SHIB’s short-term and long-term ROIs noted negative returns since the memetoken had been oscillating close to its lower support for the most part of January.

For now, a major SHIB recovery looks unlikely, however, the occasionally positive narratives around the coin can aid short-term price pumps in the near future.

Users of DataDAO Finance Are at Risk of Losing Their Funds

New users keep coming to crypto and sometimes they are victims of phishing and lose money to scammers.

On Monday morning, PeckShield, a blockchain security firm, tweeted that the DataDAO Finance platform, built on the Fantom (FTM) blockchain, had a backdoor for stealing user funds after they are approved, as you see below:

PeckShield is not the only one that is warning about the scam. PaintSwap, an NFT marketplace on the Fantom blockchain, has also commented on this, telling DataDAO users to revoke all approvals.

About DataDAO Finance

DataDao Finance described itself as a decentralized NFT base yield farm. The mission of their platform was apparently to sell mining rig parts as NFTs to mine their native token $DATA. They accepted DAI, MIM, and USDC, as you can see below on their website, which was also deleted:

DataDAO Finance Website – Source: DataDAO Finance Twitter Account.

According to SpookySwap, a decentralized exchange (DEX) for Fantom’s blockchain, data like liquidity, volume, and fees in the DATA-FTM pair are down more than 86% in the last 24 hours.

The team behind DataDAO has not reported anything through their social network channels (Telegram, Twitter, and Discord) that funds have been stolen.

They just closed it after users started claiming that they were losing funds through the platform.

Is the FTM Price Affected?

The FTM token is trading at $1.926 and is down 9.70% in the last 24 hours, as you see in the graph below:

FTM/USD Chart – Source: FX Empire.

FTM is the 29th biggest cryptocurrency of market capitalization with $4.9 billion. The whole crypto market is down approximately 3%, erasing almost $50 billion in the last day. 

Coins like TERRA are also suffering drawdowns of almost 10% in the last 24 hours, and BTC and ETH are down 2.12 % and 2.93%, respectively.

Scams are consistently happening within the crypto space, this month a user sent about $1 million in BTC to a man that was supposed to be Michael Saylor. 

In this new space, it is better to investigate the team and the project before investing in it to prevent these risks.

Fantom (FTM) Is Ready For More Upside After Surpassing Binance Smart Chain

FTM gained strong upside momentum and is up by 12% in the last 24 hours despite the current weakness of the crypto market.

FTM Shows Strength After Fantom Surpasses Binance Smart Chain In TVL

Fantom has recently surpassed Binance Smart Chain in TVL (total value locked), highlighting the strong momentum behind the network.

This move provided material support to FTM, which has already began to rebound after the recent pullback which was triggered by general weakness in crypto markets.

As leading coins have failed to deliver a sustainable rebound in recent weeks, traders are actively searching for promising projects with an upside trend.

In this environment, FTM has a good chance to attract more attention and move higher in the upcoming days.

A Move Above The 50 EMA Will Push FTM Towards $2.50

ftm daily january 25 2022

FTM received support near $2.17 and rebounded towards the resistance level at the 50 EMA at $2.37. In case FTM manages to settle above this level, it will move towards the next resistance level at $2.45. RSI remains in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge. If FTM gets above $2.45, it will head towards the next resistance level which is located near the 20 EMA at $2.50.

On the support side, FTM needs to settle below the support at $2.17 to have a chance to gain downside momentum in the near term. The next support level for FTM is located at $2.10. In case FTM declines below this level, it will move towards the next support level at $2.00.

ftm h1 january 25 2022

Taking a look at H1 chart, we can see that RSI remains in the moderate territory, so FTM has a good chance to get above the nearest resistance at $2.37 and move towards the next resistance at $2.45 in the near term. However, traders should keep in mind that FTM could be sensitive to any material weakness in crypto markets, so they should closely monitor the dynamics of leading coins like Bitcoin or Ethereum.

Maker (MKR) Leads Market Recovery, will DeFi Tokens Follow?

With the market on the cusp of recovery as Bitcoin finally established itself above the $36,000 mark some altcoins seemed to be gaining momentum. Maker (MKR), the second biggest DeFi protocol in the crypto market had a lot of eyes on it. The altcoin’s over 5% gains at the time of writing made the market participants optimistic about Maker and DeFi tokens in general, especially after the recent choppy price action in the larger market.

Maker Posting Gains

Over the last week, Maker tested the lower $1614 mark which was last seen in February 2021. In May last year, MKR made a new all-time high of $6,247.16, but the asset was down 69.49% from its ATH at press time.

Maker, FXempire, MKR, DeFi, Crypto
Maker tested the lower $1760 support| Trading View | FXempire

While the token’s gains in the first two quarters of 2021 were commendable the last week’s losses have put close to 36% of Maker HODLers in loss or ‘Out of the Money’ as per data from Into The Block. That said, despite MKR’s close to 15% gains in the last two days, the larger sentiment for the coin was still largely bearish. 

DeFi Tokens to Fuel Recovery?

DeFi tokens like Fantom, Aave, The Graph, and Maker were the first to note recovery as BTC charted close to 2% gains. Notably, Fantom was one of the top gainers in the top 100 coins by market cap and noted over 10% gains. On the other hand, AAVE and The Graph noted 2% and 3.8% gains and Loopring was up 12.36% on the daily chart. 

That said, the total value locked in DeFi protocols had fallen by 2.8% and stood at $195.78 billion at press time. Additionally, looking at MKR’s TVL in DeFi, the same had dropped to $15.08 billion from $17.17 billion a week ago. Notably, MKR’s TVL in DeFi reached an all-time high of $19.9 billion on December 1 when MKR was valued at $3030. 

FXempire, Maker, Crypto, MKR, Defi
Maker TVL | Source: Defilama

While on the short-term MKR’s RSI had recovered alongside price, another price pullback can be expected if Bitcoin makes a u-turn shortly.

For Maker, the next lower price level remains at the $1300 mark while the next bullish price levels would be at the crucial resistances established at the $2240 and $2500 mark. At press time, MKR oscillated at the $1,905.76 mark noting just over 5% daily gains.

Fantom Overtakes Binance Smart Chain To Become the Third-Largest DeFi Chain

Looking at the market state, it seems unlikely for any cryptocurrency and/or DeFi chain to jump back soon. However, Fantom repudiated that hurdle by marking a stellar growth on the DeFi front.

Fantom Takes Over Binance

As per the data at the time of this report, Fantom has been leading the rise of DeFi TVL as the network transcended the Binance Smart Chain to take the #3 spot. With $12.4 billion locked in terms of the total value, BSC had to give up the position as some $500 million lacked.

For Fantom, this surge was unexpected since merely 48 hours ago, the DeFi network had dropped to $7.9 billion. However, its 129 protocols managed to push the limits, propelling the TVL by 60% in the following two days.

Although the network has been in a good place, the token’s performance has been hingeing on the broader market cues. Dropping by a solid 40.6% in 5 days, the altcoin has just managed to stay above the critical support of $1.8902.

Although a 15.8% recovery green candle was observed yesterday, the charts repainted a red candle as FTM was down by 8.62% at the time of this report.

Fantom Price Action

The one commonality between both the chains is that their adoption hasn’t slowed down regardless of the prevalent market conditions. Multiple dApps such as Chainstack, Matrixswap, etc., have been making the most of the Fantom chain for their expansion.

But this isn’t the only reason why Fantom shot up, as even BSC has seen many a dApps build this week on the chain.

Once again the gas fees could have been a deciding factor in investors’ decision of choosing a chain. Relatively newer chains are being preferred over older chains such as Ethereum, Binance Smart Chain due to this reason. In fact just last week, Terra too surpassed BSC to stand at the #2 spot. 

But That Isn’t the Case Here

Surprisingly, in terms of DeFi, Binance Smart Chain’s gas fees usage has been significantly lower than Fantom. Gas trackers show us that BSC’s standard fees were at 5 Gwei, whereas Fantom’s standard fee was close to 807 Gwei.

Fantom historical gas price | Source: FTMScan

However, the network transaction fees for Fantom at $0.2 were indeed lower than Binance Smart Chain’s $0.32.

Thus, this could be a driving factor for investors to jump onto Fantom, but regardless of the cause, Fantom is looking to cement itself in its new position.

Binance transaction fees | Source: YCharts