Central banks kept up demand for gold in February, registering net purchases of 19 tonnes. Albeit the purchasing trend continued, purchases fell 58% compared to January’s demand, according to IMF and World Gold Council numbers. China reported the largest gold accumulation, acquiring 12 tonnes to maintain a 16-month gold purchasing streak. Gold Demand Still High […]
Bitcoin News
Here Are The Crypto That Kept Green During The Bloodbath
The crypto market is bouncing back from another sudden move into the lows with Bitcoin, Ethereum, and other major cryptocurrencies recording heavy losses. In this dangerous environment for risk, there are a select few tokens still in profit with the potential to continue swimming against the tide in the coming weeks.
At the time of writing, Bitcoin is back in its range trading at ,200 making a comeback after a quick revisit close to its yearly lows. Ethereum is following a similar trend but still maintains some losses in the last 24 hours with Cardano and Solana recording the worst performance.
On the higher timeframe, Cardano and Solana recorded a 14% and 12% loss over the past week, respectively. In particular, ADA has failed to fuel bullish momentum after the implementation of Hard Fork Combinator (HFC) “Vasil” which has led to a sustained negative price action below support previously established at around .40.
These Tokens Score Profits As Larger Crypto Trended Lower
Data from CoinGecko indicates that in a 7-day period, Huobi (HT), TerraClassicUSDC (USTC), Quant (QNT), and Maker (MKR) are the best-performing assets in the space. The first of these selected HT groups records a 74% profit over this period.
In the meantime, the algorithmic stablecoin of the failed Terra ecosystem experienced a 65% rally. While MKR and QNT have had modest gains north of 12% in the past week.
The former of these tokens, Huobi’s HT, is experiencing positive price performance due to a potential takeover from About Capital over the exchange’s assets. Speculators are jumping into the action based on the potential for the platform to see the implementation of the token in new use cases, and the onboarding of new users.
TRON Founder and diplomat Justin Sun, a member of the Houbi Global Advisory, hinted at this possibility via his official Twitter account. In that sense, and similar to USTC’s price action, these tokens are seeing positive price performance due to news-related events rather than fundamentals.
Of the crypto in the group above, MKR has the most potential to sustain its bullish momentum. The MakerDAO and the community of MKR holders have been implementing proposals, with the support of major names in the industry, to improve the platform and its treasury system.
Maker Governance voted in favor of changing the GUSD PSM parameters:
• Fee out from 0bps to 20bps.
• Maximum Debt Ceiling from 60 million DAI to 500 million DAI.
• Target Available Debt from 10 million DAI to 50 million DAI.
https://t.co/JKbYTaltG2 pic.twitter.com/NC6EwJymic
— Maker (@MakerDAO) October 13, 2022
Data from Material Indicators shows that almost every investor class bought into MKR’s price action during this trading session flash crash. This allowed the MKR price to bounce back from a low of 7 to its current level of 7.
However, the cryptocurrency needs support from larger investors to extend its current bullish momentum. If the crypto market can hold off the bears from taking over the action during the weekend, MKR might make a run to the ,000 price point.
MKR’s price on a rally in the 4-hour chart. Source: MKRUSDT Tradingview
NewsBTC
While DeFi Tokens Dropped, Total Value Locked Kept Climbing
Since the summer peak of the DeFi explosion, top Ethereum-based tokens from the space have dumped considerably due to becoming overvalued too quickly, and Bitcoin suddenly stealing up any flowing capital share.
But while this happened, the total USD value locked in DeFi applications continued to climb right along as if nothing ever happened. Is this a sign that the decentralized finance space is fundamentally sound, or is this a recipe for disaster waiting to happen?
Top DeFi Tokens Come Tumbling Down, Total Value Locked Defies Gravity
As well as Bitcoin has performed, getting its footing and potentially gearing up for a big bullish breakout, 2020 has been the year of Ethereum and DeFi.
These Ethereum-based ERC20 tokens have stolen the show when it comes to the crypto industry lately. Prices rocketed while the total value locked in DeFi applications ballooned. But in the summer months, the sizzle started to slow, and valuations came down.
Related Reading | DeFi Overtakes Ethereum In The Media, Data Shows
Yearn.Finance, Aave, Uniswap, and several others nosedived 60% or more from their summer highs, but something interesting has happened along the way.
While asset valuations came down, more money has been pumped into DeFi applications, according to the continued growth in Total Value Locked.
DeFi tokens fell hard, but TVL continued to climb. What does this say about fundamentals? | Source: YFIUSDT on TradingView.com
Timber: TVL Could Come Down Too If Decentralized Finance Coins Can’t Recovery Quickly
TVL keeping pace even while valuations come back to reality is a sign that fundamentals are strong in the category, and it could suggest that the correction is healthy and could lead to far higher prices in the future.
Or it also could suggest that the DeFi trend itself hasn’t yet reversed, even though asset uptrends have.
Related Reading | Trader Warns Of “Capitulation Volume” And “Heavy Downside” Across DeFi
Top crypto analysts warn that despite the major drawdown in DeFi tokens, there has yet to be capitulation volume in pairs related to Yearn.Finance, Uniswap, and more.
Either that capitulation volume never comes, because prices pick right back up and continue to spike or TVL growing could also be a recipe for disaster.
If the DeFi TVL starts to come down, and that chart’s parabola breaks, it could – like any other chart – see a major correction. Parabolic assets drop as much as 80% when the advance is finally broken. Could the same statistic apply to TVL?
Featured Image From Deposit Photos, Charts From TradingView.com, DeFi Pulse
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