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Altcoin Roundup: Here’s a few things to consider when buying NFTs

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Altcoin Roundup: Here’s a few things to consider when buying NFTs

The nonfungible token (NFT) sector of the cryptocurrency ecosystem has made waves that splashed across the headlines of even mainstream news outlets in 2021. Celebrities, musicians, sports teams, established auction houses and even fast-food restaurants got involved with the creation and/or sale of one-of-a-kind digital items. 

With the top NFT marketplaces like OpenSea seeing record-breaking trading volumes as projects like CryptoPunks and Pudgy Penguins see tens of millions of dollars in value exchanged daily. However, it can be challenging to know which projects have the ability to hold or increase in value long-term and which ones are likely to fizzle out once the hype dies down.

NFT projects that fit into the growing crypto metaverse and offer multiple ways to engage and earn a yield such as play-to-earn and staking features have been gaining traction, attracting the attention of both average investors and institutional players.

Here are some of the top metaverse-ready NFT protocols that have potential long-term staying power, as well as pointers on how to spot these diamonds in the ruff amid an increasingly crowded field of NFT projects.

Play-to-earn platforms attract the masses and generate revenue

Axie Infinity has emerged as one of the breakout protocols in this bull market cycle, as its play-to-earn style of gameplay allows users to have fun battling with in-game characters called Axies and earn an income at the same time.

As opposed to the free-to-play model of apps that are loaded with in-game purchases designed to drain a user’s bank account, funds spent on platforms like Axie Infinity allow for the opportunity to earn an income or decent return on investment, since decentralized finance (DeFi) and economic principles such as staking, inflation and scarcity are designed into the gameplay model.

The Axie Infinity ecosystem recently surpassed one million active daily users and has processed $1.373 billion in all-time volume, according to data from CryptoSlam.

The protocol has seen the highest rates of adoption in areas of the world like Malaysia and Venezuela, where the economic struggles of the people make the 150 to 200 Smooth Love Potion (SLP) a player can earn each day — worth between $23.70 and $31.60 at the time of writing — an attractive source of daily income.

55 Axies, 18 scholars. 5K USD monthly passive income. Only at @AxieInfinity $SLP $AXS #AxieNiJumong #AxieScholarship

— Mr. M (@BlackMambaBitco) August 6, 2021

With the government of Venezuela instituting a monthly income that is equivalent to $2.40 at the exchange rate estimated by the country’s central bank, a daily income of $23.70 could potentially feed a family for up to 10 months.

Due to these factors, NFTs in the Axie Infinity ecosystem have a stronger possibility of holding their value over time and maintaining a higher level of liquidity than many of the random NFT projects which are simply glorified jpegs.

Token generating NFTs give collectibles utility

Another project that offers a unique take on mixing DeFi, gameplay and NFTs is Aavegotchi, a platform built on the Aave protocol that enables in-game avatars to be combined with other cryptocurrency assets, which can then be used as DeFi collateral and earn staking rewards.

Aavegotchi avatars, known as Gotchi’s, are scarce in number and new ones are only minted a limited number of times per year and released via auction or raffle drawing.

— Aavegotchi HAUNT 2 AUG 26-29 (@aavegotchi) July 27, 2021

Users who stake the native GHST token on the protocol earn rewards in the form of FRENS, which can be used to purchase raffle tickets that are entered in drawings for in-game items such as wearables, consumables, or Gotchi summoning portals.

These items can then be combined with Gotchi’s to increase their rarity and value, or sold in the marketplace as another source of income for token holders.

The ability to lock up other tokens or assets into a Gotchi adds another layer of value and rarity for each avatar. To extract any added assets, Gotchis are destroyed in the process leading to an increase in scarcity.

At the time of writing, 7,760 portals have been opened and 432 Gotchi’s have been sacrificed according to Aavegotchi Stats, leaving a circulating supply of 7,328 Gotchi’s with varying traits and levels of rarity.

Cross-asset staking and gameplay complete the metaverse 

One final project that is newer on the scene but attracting attention nonetheless is Illuvium, an open-world fantasy battle game built on the Ethereum (ETH) blockchain.

While this project is still in development, the price of its native ILV token surged 1765% between June 22 and Aug. 13 as excitement builds ahead of its launch.

One of the catalysts for its price rise was the introduction of ILV staking, which enables token holders to earn a yield ranging from 43.44% to 86.88% depending on the length of time tokens are locked up.

Illuvium has also offered cross-asset staking via flash pools that allows Axie Infinity (AXS) and Synthetix (SNX) holders a chance to earn ILV by staking their tokens on the protocol.

One method the team has used to attract attention to the project has been to create unique NFTs representing some of the top crypto influencers, and the team has also provided a steady stream of teasers and updates on characters and NFTs that will be found in the game.

We’re just going to leave this right here… We know you all are eager for more leaks on UI, here is the latest peek! pic.twitter.com/8AFzvx7Rr0

— Illuvium (@illuviumio) August 19, 2021

The creation of an AAA-rated game on the Ethereum blockchain has been a sought-after goal for the gaming community for years but network limitations have thus far made it impossible.

If Illuvium can make good on its goal of creating a highly interactive and visually appealing game capable of attracting users from the traditional gaming community, assets and NFTs within the ecosystem have the potential to maintain or increase in value over time.

Gamers spend hundreds of hours and thousands of dollars per year on some of the most popular free-to-play games that offer the opportunity to purchase rare items, giving them the one-up on their competitors, but little value is left at the end of the day in exchange for all that time and expense.

NFTs allow for a new paradigm in gaming that time spent playing and the loot acquired along the way can be transferred into real-world value that has long-term lasting power. Projects that adapt and integrate with the growing decentralized crypto metaverse are in a prime position to make gains in adoption and value.

Want more information about trading and investing in crypto markets?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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BTC, ETH, XRP, ZEN, UNI, OMG, AXS — Technical Analysis Sept 28

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BTC, ETH, XRP, ZEN, UNI, OMG, AXS — Technical Analysis Sept 28

Bitcoin (BTC) was rejected by the $44,000 horizontal resistance area.

Ethereum (ETH) is following a descending resistance line and potentially trading inside a descending wedge.

XRP (XRP) is following a descending support line.

Horizen (ZEN) has broken down from an ascending support line.

Uniswap (UNI) has broken out from a descending wedge.

OMG Network (OMG) is following an ascending support line.

Axie Infinity (AXS) has broken out from a descending resistance line.

BTC

On Sept 27, BTC was rejected by the $44,000 resistance area and created a long upper wick (red icon). This is a bearish sign since the area had previously been acting as support, and the rejection now validates it as resistance.

Technical indicators in the daily time frame are bearish. Both the RSI and MACD are decreasing. The former is negative while the latter has just fallen below 50.

The next closest support area is found at $38,000.

ETH

ETH has been decreasing underneath a descending resistance line since Sept 3. Most recently, it was rejected by the line on Sept 16.

Due to the long lower wicks, the support line cannot be accurately determined. However, it’s possible that ETH is trading inside a descending wedge.

Despite the wedge normally being considered a bullish pattern, technical indicators are neutral. The RSI is right at the 50-line and the MACD is below 0, although it is increasing.

Therefore, the direction of the trend cannot be accurately determined at the current time.

XRP

XRP has been following a descending support line since Aug 17. So far, it has been validated multiple times, most recently on Sept 21. The final touch of the support line (green icon) also coincided with the 0.618 Fib retracement support level at $0.85.

Despite the fact that XRP is trading above a confluence of support levels, technical indicators are not bullish. The RSI is at the 50-line and the MACD is negative, even though it is moving upwards.

The closest support and resistance levels are found at $0.76 and $1.07 respectively.

ZEN

ZEN has been decreasing since Sept 15, after creating a double top pattern and a long upper wick. The pattern was also combined with a bearish divergence in the RSI.

Shortly after, it broke down from an ascending support line. The breakdown is supported by the MACD and RSI, which are both decreasing.

The closest support area is found at $53.

UNI

UNI has been decreasing since Sept 2. After the Sept 7 drop, it created a descending wedge, which led to a low of $17.73 on Sept 26.

However, UNI rebounded and broke out from the wedge. The breakout is supported by the increasing MACD and RSI.

The closest resistance area is found at $26.15, created by the 0.618 Fib retracement resistance levels.

If UNI is successful in moving above it, it may move toward new highs.

OMG

OMG has been following an ascending support line since July 20. However, since Sept 6, it has failed to break out above the $10.60 area, which is the 0.618 Fib retracement resistance level.

Despite the rejection, technical indicators are bullish. The RSI has generated a hidden bullish divergence and the MACD is positive.

Therefore, an eventual breakout would be likely. This could take OMG toward the $15.33 all-time high price.

AXS

AXS has been increasing since Sept 21 when it bounced at the $48.28 support area. The next day, it created a bullish engulfing candlestick and broke out from a descending resistance line.

Following this, it reclaimed the $63 horizontal area and validated it as support.

Both the MACD and RSI are increasing, supporting the continuation of the upward movement.

The next resistance area is found at the all-time highs of $94.50.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Bitcoin (BTC) Fails to Move Above $44,000 Resistance

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Bitcoin (BTC) Fails to Move Above $44,000 Resistance

Bitcoin (BTC) attempted to move upwards on Sept 27 but was rejected by the $44,000 resistance area.

While BTC is still trading inside the upper portion of a descending parallel channel, the price action is lacking bullish signals.

BTC gets rejected

On Sept 27, BTC made an attempt at moving above the $44,000 area but was promptly rejected (red icon). The area had acted as support in August and the beginning of September but turned to resistance after the breakdown on Sept 20. The rejection created an upper wick and a bearish candlestick. 

Besides trading below resistance, technical indicators for BTC have turned bearish as both the RSI and MACD are decreasing. The MACD has just crossed into negative territory while the RSI is below 50. 

If BTC were to continue moving downwards, the next closest support area would be found at $38,000.

Current channel

The six-hour chart shows a descending parallel channel, which usually contains corrective structures.

Currently, BTC is trading inside its upper portion. Furthermore, it’s trading just above the 0.5 Fib retracement support level.  

Despite being above a confluence of support levels, technical indicators are bearish/undecided. The MACD is negative and has lost its strength while the RSI has just fallen below 50.

The two-hour chart shows that BTC is following an ascending support line and has made three higher lows since Sept 21. While this can be seen as a bullish structure, the price action is not bullish. 

The previous resistance area at $43,000 that was expected to act as support did not. On the contrary, BTC fell right through it. Furthermore, both the MACD and RSI have turned bearish.

While there is very strong support at $41,500, created by the 0.786 Fib retracement support level and the ascending support line, the price action does not seem bullish.

Wave count

The most likely wave count still indicates that the decrease from Sept 7 to Sept 21 was part of an A-B-C corrective structure, in which waves A:C had an exact 1:1 ratio. This is also supported by the presence of the descending parallel channel.

However, the movement since the low does not seem impulsive, casting some doubt on the possibility of this being the correct count.

Alternative counts could see the movement as a flat A-B-C corrective structure (upper image), or in the more bearish case a 1/2-/1-2 wave structure (lower image). 

At the current time, the correct count cannot be determined.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Europe becomes largest crypto economy with over $1T in transactions — Chainalysis

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Europe becomes largest crypto economy with over $1T in transactions — Chainalysis

DeFi has become a major catalyst for Europe’s crypto economy. Large institutions have also upped their share of transactions significantly.

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Europe becomes largest crypto economy with over T in transactions — Chainalysis

The region of central, northern and western Europe, or CNWE, has emerged as the world’s most active cryptocurrency block, receiving over $1 trillion worth of digital assets over the past year, according to new research from blockchain analytics firm Chainalysis. 

The report, which was released Tuesday, found that the CNWE region accounted for 25% of global crypto activity between July 2020 and June 2021. The region witnessed a sharp uptick in transaction volume across all crypto sub-categories, especially decentralized finance, or DeFi.

Chainalysis describes crypto transactions as anything involving trade, investments and business dealings.

Europe has also become a hotbed for institutional investing, with transactions values in this category growing to $46.3 billion in June 2021 compared with just $1.4 billion in July 2020. Perhaps surprisingly, the United Kingdom is the single largest crypto economy in the region at $170 billion worth of transactions. Nearly half, or 49%, of the value was sent via DeFi protocols.

“The U.K.’s growth is driven mostly by growing institutional investment, based on the large-sized transfers driving most of its transaction volume,” Chainalysis senior content marketing manager Henry Updegrave told Cointelegraph. 

A secular bull market for Bitcoin (BTC), the growth of competing smart contract platforms and the arrival of decentralized finance all contributed to crypto’s massive rally during the study period. It comes as no surprise that CNWE’s crypto market activity peaked in May 2021 during the height of the bull market, which was one month removed from Bitcoin hitting $64,000.

Chainalysis’ data corroborates a growing body of evidence showing that large institutional investors have become a driving force within crypto. Wealth managers, family offices and other institutional players have poured billions of dollars into Bitcoin and Ether (ETH) investment products offered by Grayscale, CoinShares, 21Shares and others.

Related: Crypto asset manager Cobo raises $40M to launch DeFi-as-a-service

Beyond the advanced economies of Europe, Chainalysis research has documented the growing uptake of crypto in emerging markets. The Chainalylsis 2021 Global Crypto Adoption Index named Vietnam, India and Pakistan as the leading countries for adoption based on on-chain value received, retail transactions and peer-to-peer exchange trade volume.

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