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Pirate Weekly Meeting | 2.19.2020

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DeFi Total Value Locked at New High After 2,000% Gains on the Year

Total value locked (TVL) across all decentralized finance protocols hit another all-time high last week after gains of almost 2,000% over the past 12 months. The crypto market momentum has spilled over into DeFi again following a six-week correction for most tokens related to the industry. The TVL collateral figure has reached a record of […]

The post DeFi Total Value Locked at New High After 2,000% Gains on the Year appeared first on BeInCrypto.

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Total value locked (TVL) across all decentralized finance protocols hit another all-time high last week after gains of almost 2,000% over the past 12 months.

The crypto market momentum has spilled over into DeFi again following a six-week correction for most tokens related to the industry. The TVL collateral figure has reached a record of $12.3 billion, according to DeFi Pulse, and this milestone means that it has increased by almost 2,000% since this time last year.

The billion-dollar increase in collateral since last Wednesday could be a result of increasing Ethereum prices, considering most DeFi protocols and pools are based on ETH.

According to Coingecko, the market capitalization for DeFi related tokens has increased by $2 billion over the past couple of days, indicating that the rally could be reinitializing.

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DeFi Bull Phase 2

DTC Capital’s Spencer Noon has labeled it as a “bull phase 2” that will be much larger than the summer’s gains.

He added that DeFi farmers may have pivoted back into bitcoin after making major gains during the third quarter, saying:

“The likely inflection point for DeFi Bull Phase 2 is the election, where there are multiple outcomes that would be favorable for risk assets. Until then, farmers will sit in BTC because it’s low-maintenance and basically a stablecoin compared to what they were trading this summer.”

While those astronomical returns appear to have dwindled for most DeFi protocols, there is still a vast amount of collateral locked up in smart contracts.

Uniswap is still the industry leader, according to DeFi Pulse, with $2.6 billion TVL and a 21% market share. Around $2 billion of this is locked into the four UNI earning ETH pools, which will continue to generate rewards until Nov. 17.

Messari’s Jack Purdy noted that decentralized exchanges are eating into the market share of their centralized cousins, with as much as 15% of the total trading volume for the third quarter.

DeFi Token Performance Mixed

Many of the DeFi-related tokens that took a big dive over the past two months are starting to register gains again. The majority of them, however, are still way down from their all-time highs.

Source: https://beincrypto.com/defi-total-value-locked-at-new-high-after-2000-gains-on-the-year/

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ETH Cools Off After 13% Weekly Gains, What’s Next? (Ethereum Price Analysis)

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ETH/USD – Bulls Retest Bearish .618 Fib Resistance

Key Support Levels: $410, $400, $387.
Key Resistance Levels: $416, $421, $439.

Ethereum saw a strong 13% price surge this past week as it reached as high as $421 (1.414 Fib Extension). More specifically, the buyers could not close a daily candle above the resistance at the bearish .618 Fib Retracement at $416.

After heading back into $400 yesterday, the bulls have rebounded and are now retesting the aforementioned level.

ethusd-oct24
ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, once the buyers break $416, the first level of resistance lies at $421.50 (1.414 Fib Extension). This is followed by resistance at $434, $439 (August 2018 Highs), and $445 (bearish .786 Fib). $450, added resistance lies at $462 and $475.

On the other side, the first level of support lies at $410. Beneath this, support is found at $400, $387 (.382 Fib), and $377 (.5 Fib).

The RSI is approaching overbought conditions but still has room to push higher before becoming truly overbought.

ETH/BTC – Bulls Testing 100-days EMA Resistance

Key Support Levels: 0.0311 BTC, 0.0305 BTC, 0.03 BTC.
Key Resistance Levels: 0.0327 BTC, 0.0337 BTC, 0.0341 BTC.

Against Bitcoin, Ethereum struggled this week as it dropped as low as 0.0305 BTC. It has since bounced higher to climb back above 0.031 BTC to trade at the current 0.0318 BTC level. It is now testing resistance at a 100-days EMA and must overcome this to head back toward the October highs at 0.0337 BTC.

ethbtc-oct24
ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, if the bulls can break the 100-days EMA, the first level of resistance lies at 0.0327 BTC (bearish .236 Fib Retracement). This is followed by resistance at 0.0337 BTC (March 2019 Support – now resistance), 0.0341 BTC (bearish .382 Fib), and 0.035 BTC.

On the other side, the first level of support lies at 0.0311 BTC (.618 Fib). Beneath this, support lies at 0.0305 BTC, 0.03 BTC, and 0.0295 BTC (200-days EMA).

The Stochastic RSI recently rebounded, which put an end to the downward pressure. For a bullish recovery above the 100-days EMA, the RSI must pass the mid-line to indicate bullish momentum within the market.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/eth-cools-off-after-13-weekly-gains-whats-next-ethereum-price-analysis/

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Binance Bitcoin Futures Markets Clock Highest 24h Volumes as Institutions Go Long

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With bitcoin’s latest rally beyond the $13,000 mark, it seems like the next bull market is here. It can be seen from BTC markets that have been on fire for the last 7 days, including derivatives. The latest data shows that bitcoin futures markets on Binance have clocked the highest 24h BTC futures volumes amongst all platforms. This comes amid the exchange registering $760 million in open interest.

Binance Experiences Explosive Bitcoin Futures Market Action

Bitcoin rallied beyond $13,000, galvanizing every BTC related market along the way, including the futures market on Binance.

As per the latest data from crypto market analytics firm Skew, the exchange logged the highest 24h bitcoin futures volume amongst all BTC derivative trading platforms.

skew_exchange_24h_btc_futures_volumes_bn
Binance Clocks Highest 24h Bitcoin Futures Volume, Source: Skew

This is coming after the Malta-based cryptocurrency exchange registered heavy futures trading traffic as open interest (OI) jumped 30 percent to $150 million in just 2 days from October 19 to October 21. Binance’s current OI figure stands at $760 million.

Skew’s data also shows that Binance hosted the highest aggregated daily bitcoin futures volumes on October 21. The cumulative figure was $32 billion that day, out of which Binance’s share was $8.3 billion. But at $3.3 billion, Binance still has the highest aggregated futures volumes.

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BTC Futures Market Metrics On Other Platforms Are Booming As Well

With bitcoin’s recent week-long upside correction, traders using other platforms are mainly interested in BTC futures. Skew’s observations from October 20 show that there has been a 54 percent appreciation in 24h Futures and Swap Volumes on Huobi.

Compared to bitcoin, only ether (ETH) has experienced a 30 percent surge in volumes. And that’s not all. Bitcoin futures open interest on institutional platform CME rose to $784 million today. This has added nearly 1500 contracts to the already bubbling CME BTC futures roster, scheduled for expiry by the end of this month.

But how are these futures traders on CME actually betting on bitcoin?

Institutions Are Going Long While Hedge Funds Are Busy Shorting

Skew did a deep inspection of the above spike of bitcoin futures open interest on the CME, and the firm concluded that bets are mainly coming from institutions and hedge funds. The former is more optimistic about bitcoin price rallying further in the near term, as opposed to hedge funds who have record short bets on BTC. The same is visible from the Commitment of Trader (COT) numbers displayed in the chart below:

Amidst all the above-market activity, the aggregated open interest for bitcoin futures for all platforms sharply rose to $5 billion and has since remained the same.

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Source: https://cryptopotato.com/binance-bitcoin-futures-markets-clock-highest-24h-volumes-as-institutions-go-long/

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