fbpx
Connect with us

Ethereum

Total Crypto Market Cap Falls Below $1 Trillion For The First Time Since February 2021

Published

on

Total Crypto Market Cap Falls Below $1 Trillion For The First Time Since February 2021

Summary:

  • Crypto tokens continue to bleed as market uncertainty persists.
  • Market leaders Bitcoin and Ethereum dipped over 15% on Monday.
  • BTC is down more than 6% in the last 24 hours and trades below $23,000.
  • Technical analyst MagicPoopCannon predicted a leg down for BTC to the $20K or $22K level. 

Another difficult week for the world of virtual assets as the total cryptocurrency market cap slipped below $1 trillion on Tuesday. Data from on-chain aggregator CoinMarketCap showed that the total cash currently circulating across crypto tokens sits under $950 billion at press time. 

The last time crypto’s market cap reached these levels was around 16 months ago, back in February 2021.

Total Crypto Market Cap Falls Below $1 Trillion For The First Time Since February 2021 16
Total Crypto Market Cap (Source: CoinMarketCap)

Crypto Leaders Bitcoin And Ethereum Dip To Levels Not Seen Since 2022/2021

Crypto’s leading token Bitcoin took a huge hit on Monday amid a general market slump. BTC dropped by almost 20% in a single day, going as low as $21,800 on some exchanges. The top crypto token is also down on Tuesday by over 7% and trades around $21,900 at press time.

As EWN previously reported in May, technical analyst MagicPoopCannon (MPC) predicted a leg down to these levels. MPC cited macro support indicators around the $20,000 to $22,000 regions as the basis for their price prediction.

#BTC is falling below the 61.8% moving average of the entire bull market, in what may be the beginning of the next major leg lower. I do see a technical case for a rapid decline to $22,000 or $20,000, before new support is found, if a leg down gains steam. pic.twitter.com/1Q5Zm8krZz

— MAGIC (@MagicPoopCannon) May 26, 2022

Bitcoin’s plunge below $24,000 also broke through the supposed realized price level highlighted by Dylan LeClair, Head of Market Research at Bitcoin Magazine. The last time BTC dipped as far as $21K was back in December 2020, almost 2 years ago.

Notably, LeClair pointed out that hitting these low levels could indicate that a bottom is in or close. 

Here is a standardized ratio between market price and realized price (market value to realized value – MVRV).

24k would be in the green zone.

Again, dips to/below realized price have historically signaled a capitulation style bear market bottom is in (or close).

[2/3] pic.twitter.com/8EizHYPBi3

— Dylan LeClair 🟠 (@DylanLeClair_) May 9, 2022

Similarly, the leading altcoin Ethereum also slumped significantly below $1200 despite anticipation surrounding The Merge. ETH currently exchanges hands at $1,194 after a slight recovery since Monday’s 15% dip. Ethereum dropped as low as $1,080 for the first time since January 2021. Per data from TradingView. 

Total Crypto Market Cap Falls Below $1 Trillion For The First Time Since February 2021 17
ETH Daily Chart (Source: TradingView)

Go to Source

Ethereum

CoinFlex Will Issue $47M Worth of “Recovery Tokens” After Withdrawal Freeze

Published

on

CoinFlex Will Issue $47M Worth of “Recovery Tokens” After Withdrawal Freeze
  • CoinFLeX will issue recovery tokens to help fund customers’ withdrawals.
  • The exchange had run into trouble after one individual’s accounts went into negative equity, resulting in the halting of withdrawals.
  • It will issue $47 million worth of the Recovery Value USD (rvUSD) tokens.

Futures crypto exchange CoinFLEX will issue recovery tokens called Recovery Value USD (rvUSD) as a solution to enable withdrawals again. The platform has suspended withdrawals as a result of market volatility, with some users even having a negative balance as a result.

$47 million of the rvUSD will be issued, and CoinFLEX hopes that this will help clear the outstanding debt from that one individual who had a negative balance. A whitepaper covers the details of the token, and there are several caveats to become an investor. The minimum subscription is 100,000 USDC.

The exchange aims to reopen withdrawals by June 30, but this will be subject to receiving funds for the rvUSD issuance. CoinFLEX says that it has been speaking to large buyers and “believes there is significant interest in the terms presented.”

CoinFLEX also said that it plans to implement transparency measures going forward. Additionally, it will work on a new model of futures in direct response to the recent incident. Regarding the transparency, CoinFLEX said,

“The notional (USD) value of every account’s futures positions will be made publicly available via an external auditing firm that will attest to these futures positions every hour. We will also make available the margin (collateral) backing these positions in USD value and break down the collateral by type 1 (stablecoins), type 2 (highly liquid coins), and type 3 (low liquidity coins).”

Crypto Community Not Too Convinced About rvUSD

The crypto community’s response to CoinFLEX’s rescue method has been ambivalent. FatMan, who has been known for his analysis of the Terra incident, called the move “amazingly degen.”

He summarizes the whole incident as the platform offering the individual a $47 million uncollateralized loan, turning his debt into a token while offering 20% APY on it. In other words, they are using this token to fund other customers’ withdrawals.

This may sound like something too good to be true — and that might very well be the case. Such unusual and potentially risky strategies will invite the attention of regulators like the United States Securities and Exchange Commission (SEC). That is the fear that some investors have, but it remains to be seen if this will actually play out that way.

Go to Source

Continue Reading

Ethereum

Crypto.com Removes 13 Crypto Tokens From Its Earn Program Including Shiba Inu, Dogecoin and Tezos

Published

on

Crypto.com Removes 13 Crypto Tokens From Its Earn Program Including Shiba Inu, Dogecoin and Tezos
  • Crypto.com has removed 13 crypto tokens ,including Shiba Inu, Dogecoin and Tezos from its Earn program. 
  • The exchange has added Fantom, Ziliqa and Near to its Earn portfolio. 

Crypto.com, a leading cryptocurrency exchange, has decided to remove 13 cryptocurrencies from its Earn program. The exchange took to Twitter to share the update adding that it will be removing Doge, Shiba Inu, Tezos, and more from the program and will be adding Zilliqa, Fantom and Near to its Earn portfolio. 

Crypto.Com Has Removed 13 Cryptocurrencies From Its Earn Program

Crypto Earn is an initiative started by crypto.com to help users allocate their preferred crypto into the program to start accruing rewards. This would eventually help users expand their crypto assets by accumulating additional rewards in multiple cryptocurrencies. 

However, in an updated blog published earlier today, the exchange has decided to remove 13 crypto coins from its earn program including Doge, Shib, XTZ, MKR, EOS, OMG, FLOW, KNand C, ICX, COMP, BIFI, ONG, GAS, STRAX, and BNT. However, the exchange will also be adding three new tokens to its earn portfolio, i.e Zilliqa, Near, and Fantom. Per the updated blog post, users will be able to earn 5% rewards on FTM, and 6% rewards on ZIL and NEAR. 

“Effective from 27 June 2022, 10:00 UTC, we will be adding new tokens to Crypto Earn. Users can now enjoy rewards rates of up to 5% p.a. for FTM, and 6% p.a. for ZIL and NEAR.”

Crypto Community Reacts To Crypto.com’s Removal Of 13 Tokens. 

The response to crypto.com’s decision to remove 13 crypto tokens was mixed with multiple users expressing their discontentment on Twitter. Some users opined how the current crypto staking percentages are similar to the modern-day banking rates. 

Reduction of interest rates on stable coins again… no point holding them in your app. Get similar interest in a bank

— will (@WJB2201) June 27, 2022

While others responded that they were particularly unhappy about the exchange’s decision to remove Doge and Shib from its platform.

Why no more Shiba and Doge staking?

Are you trying to get people to leave your platform?

That was the reason I even started a CDC account!

— M42boost (@m42boost) June 27, 2022

Go to Source

Continue Reading

Ethereum

Ethereum’s Merge to Reduce Demand for GPUs, says Morgan Stanley

Published

on

Ethereum’s Merge to Reduce Demand for GPUs, says Morgan Stanley

Summary:

  • According to a Morgan Stanley analyst, demand for GPUs should reduce with Ethereum transitioning into a proof-of-stake network.
  • The crypto drawdown has further reduced the profitability of Ethereum mining.
  • However, the Ethereum mining community could venture into alternatives such as Ethereum Cash and Ravencoin.

Ethereum’s transition from a proof-of-work algorithm to proof-of-stake through the Merge of the Beacon Chain with the ETH mainnet could reduce demand for GPUs.

According to a research note by Morgan Stanley’s equity strategist Sheena Shah, the less energy-intensive proof-of-stake will reduce demand for GPU miners. In addition, the crypto drawdown in the markets has also resulted in reduced profits for Ethereum miners, further eliminating the need for GPUs. The note said:

and Ethereum currently require powerful computers for the mining process and consume a lot of energy which governments and regulators are increasingly concerned over. If Ethereum moves to using Proof-of-Stake (PoS) it will eliminate the need for miners (reducing demand for GPUs) and drastically reduce energy requirements.

Ethereum Miners Could Find Alternatives in Ethereum Classic and Ravecoin – Bloomberg.

However, in another analysis by Bloomberg in mid-June, it was forecasted that Ethereum miners would probably keep mining till the Merge occurs later this year. Furthermore, some miners considered transitioning their Ethereum miners to mine Ethereum Classic or Revencoin.

The team at Ethereum Classic has already started enticing existing Ethereum miners by requesting that they plan their migration to ETC before the Merge occurs. They further emphasized that Ethereum Classic was more than able to handle the abandoned Ethash hashrate. They explained:

This Merge event will disenfranchise the largest EVM’s Proof of Work mining ecosystem. Ethereum Classic is well positioned to absorb much of this abandoned Ethash hashrate.

However, Ethash miners might not realize that Ethereum Classic operates a modified version of Ethash called ETChash.

The Ethereum Classic team also pointed out that the Thanos Upgrade in November 2020 slowed the hashrate of the DAG. This, in turn, ‘has allowed GPU miners to operate their equipment longer on ETChash than Ethash.’ They added:

New ETChash miners will find comfort in knowing that Ethereum Classic made a long-term commitment to Proof of Work consensus through the network’s Die Hard Upgrade in 2018.

If you’re new to the ETC mining ecosystem, you’ve found a long-term home on Ethereum Classic. A battle-tested network where you can properly plan your mining business’ capital and operational expenditures around a predictable monetary policy and stable network that is widely integrated throughout the cryptoverse.

Go to Source

Continue Reading
Home | Latest News | Cryptocurrency | Ethereum | Total Crypto Market Cap Falls Below Trillion For The First Time Since February 2021
a

Market

Trending