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- Cardano's ray of hope
Cardano's ray of hope
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Bitcoin's retail interest holds firm, sparking optimism amid ongoing correction
The Implied Volatility surrounding BTC experienced a decline, signaling a more stable market environment
The number of Daily Active Addresses on the network remained consistent, signifying a stable level of engagement within the Bitcoin ecosystem
News - Bitcoin recently experienced a significant correction, leading to skepticism in the crypto community about its price and future trajectory. However, recent data from CryptoQuant analyst Axel Adler highlighted a positive outlook for BTC.
A look on the bright side - In his analysis, Adler pointed out the importance of the last week, which was highly anticipated due to the introduction of ETFs—a crucial milestone in Bitcoin's history. This led to a substantial influx of cash and a surge in short-term BTC holders, resembling a similar spike observed in April 2023.
The increased accumulation of BTC among short-term holders indicated sustained retail interest in the king coin, even as its price experienced a decline. Additionally, with BTC gaining popularity in mainstream markets over time, the price could potentially rise further, influenced by the actions of short-term holders.
What's more? Over the past week, the Bitcoin Put-to-Call ratio also saw a decline, signaling a positive trend. The decline suggests that traders maintained optimism about BTC's future, even as its value declined. As a result, the overall sentiment surrounding BTC stayed positive despite uncertainties in the market.
TrueUSD strays from $1 peg as holders unload over $330M, flock to Tether
The depegging event happened amid an unusually large volume of TUSD being sold on the cryptocurrency exchange Binance
For weeks now, TUSD had been trading at nearly 8% below its peg at $0.92 on Poloniex, whereas its price remained stable around $0.99 on Binance
News - The stablecoin TrueUSD (TUSD), linked to Justin Sun, has dropped below its $1 peg as holders reportedly exchange hundreds of millions in TUSD for the competitor, Tether (USDT).
A rundown -
On January 10, reports surfaced, indicating that TrueUSD had faced issues posting real-time attestations of its reserves, raising concerns about potential under collateralization of the stablecoin.
On the same day, a report by Protos highlighted that the system encountered several errors with its API, rendering it unable to supply a U.S. dollar value to its collateral assets.
Following this, TUSD experienced a notable decline, falling significantly below its peg around 11:00 am UTC on 15 January, reaching as low as $0.984 by 11:15 pm.
At the time of writing, traders on Binance had sold TUSD worth more than $339.2 million in the last 24 hours, while buy orders amounted to only $296.8 million, resulting in a net outflow of $42.3 million.
On X, a number of users posted their opinions, speculating that the substantial sell-off may be associated with TUSD's absence from Binance's Manta (MANTA) launch pool initiative.
At press time, TUSD was trading at $0.988, marking a 1.3% decline from its intended $1 peg, according to CoinMarketCap.
Altcoin buzz fails to lift ADA, but rising DEX volumes offer hope
The postponed launch of the USDM stablecoin initially affected Cardano and its DeFi sector sentiment
However, the proposed rescheduled launch of USDM and the potential integration of USDC could contribute to Cardano's improvement in the DeFi sector moving forward
News - Cardano saw a significant drop in its price over the past month, despite the increased attention towards altcoins. Nonetheless, there is potential for ADA as interest in its ecosystem continues to expand.
A ray of hope? Cardano's ecosystem experienced increased demand, as evidenced by the growing popularity of its decentralized exchanges (DEX).
Minswap, a prominent DEX on Cardano, experienced a significant increase in daily volume, surpassing 10.5 million ADA. This surge in DEX activity signals a positive trend for Cardano, indicating increased participation and engagement within its ecosystem.
On the flip side, Cardano faced challenges in various areas. There was a decline in daily active addresses on the network, along with a reduction in transactions. Additionally, fees generated on Cardano also took a hit, contributing to the negative aspects of the network's performance.
ADA's trading volume also decreased, highlighting the current difficulties Cardano faces in sustaining market activity. At press time, though, ADA was trading at $0.53, with a marginal 0.2% increase in the last 24 hours.
Argentine president grants provinces authority to introduce local currencies amid economic turmoil
Since assuming office on 10 December 2023, President Milei devalued the Argentine peso by 50%
Citing the need for economic autonomy and stability amid these national challenges, Governor Quintela of La Rioja proposed the creation of a separate provincial currency
News - In a recent interview, Argentine President Javier Milei confirmed that he won't legally challenge the development of local currencies by provincial authorities, following a public dispute with La Rioja province governor, Ricardo Quintela.
Milei stated that he believes that the market will ultimately decide on the value of the projects. However, he cautioned that the introduction of "quasi-currencies" may fuel inflation and expose those accepting them to potential scams.
Why is there a need for local currencies though? Since assuming office on 10 December 2023, President Milei devalued the Argentine peso by 50%. This devaluation was aimed at tackling the country's highest inflation levels in 32 years. Additionally, the new president reduced federal budget allocations to provinces.
Labeling the president's actions as "national abandonment," Governor Quintela of La Rioja proposed the creation of a separate provincial currency. The governor emphasized the importance of paying police salaries, and most importantly, the need for economic autonomy and stability amid these national challenges. Thus, urging La Rioja's legislature to establish the legal framework for introducing a local currency.
Here, it is worth noting that in December 2023, the governor of Buenos Aires province, Axel Kicillof, also publicly discussed the prospect of implementing a local currency.
More stories from the crypto ecosystem
Crypto scams uncovered
AnubisDAO, a dog coin project claiming to be an OlympusDAO fork, raised $60 million in ETH for ANKH tokens. Within 24 hours, a rug pull diverted funds to an unrecoverable address, erasing liquidity and crashing ANKH token price to zero, leaving investors with significant losses.
In 2018, Vietnam-based Modern Tech ran an ICO for Pincoin and iFan tokens, luring investors with promises of high returns. The venture amassed $660 million before organizers disappeared with the money, leaving investors with substantial losses.
In August 2021, DeFi yield aggregator Luna Yield defrauded investors of $6.7 million, vanishing two days post-launch. The developers executed the scam through transactions involving WETH, WBTC, LUNY, and USDT, diverting funds to an anonymous Tornado wallet.
Top 3 coins of the day
Binance Coin (BNB)
Token Terminal's data revealed a decline in overall active users within the BNB Chain, indicating a potential disengagement from the platform
AMBCrypto's analysis indicated a decline in Weighted Sentiment for BNB, with negative comments surpassing positive
What you should know - BNB has been on an uptrend since 12 January, experiencing a climb from $290 to its recent high of $320 on 15 January. At press time, BNB was trading at $317.80, reflecting a 0.3% increase in the last 24 hours. If buyers maintain the price above $317, there's potential for BNB to reach $338, which was its previous high on 28 December, 2023. The Relative Strength Index (RSI) standing above the 60-mark, flashed a preference for the buyers. However, going forward, breaking above the $340 mark may prove challenging as resistance is expected at that level, but a successful breakthrough could propel BNB to $400.
Over the past week, SOL experienced a decline in Social Dominance, indicating a decrease in its popularity
Its Weighted Sentiment also remained low, signifying a prevailing bearish sentiment in the market
What you should know - Solana appears to be towards the end of its consolidation and may attempt to break into $100 again. At the time of writing, the SOL was trading at $96.86, after gaining 2.2% in the last 24 hours. The Fear & Greed Index displayed a score of 72 (greed), suggesting that investors are exhibiting high levels of optimism in the current market conditions. The RSI was seen moving steadily above the 50-mark, implying that average gains surpassed average losses over the past week. However, the $104 level could act as a potential resistance zone in SOL's upward momentum.
According to recent data, Uniswap Labs' onchain revenue crossed $1 million in November, 2023
After forming a support base above $5.65, UNI started a fresh increase above the $6.00 and $6.20 resistance levels
What you should know - For the last 7 days, UNI has been in a good upward trend, thus increasing by 14.3%. In the past 24 hours, the crypto increased by 2.1%, reaching a press time value of $6.79. The Fear & Greed Index displayed a score of 62 (Greed), suggesting that investors were exhibiting high levels of optimism in the current market conditions. This bullish sentiment was further confirmed by the primary indicator (RSI) lying around the 53-level mark, above the midline.
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