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Litecoin, Monero, Stellar Technical Analysis on 11th September 2020

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By recording an overall market capitalization of $334.06 billion, the crypto-verse was seen heading towards recovery. While Bitcoin’s dipped to 56.8%, several altcoins were seen prepping to endure potential slumps caused by the presence of bears in the market.

Litecoin [LTC]

As the Litecoin community gears up for the launch of MimbleWimble, the of the altcoin witnessed dainty gains over the past few weeks. However, during the first week of September, LTC recorded a huge slump further pushing its price back into the $40 zone. During press time, the coin was trading at $48.65 with no significant change in its price.

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Parabolic SAR’s dotted markers pushed LTC below a major resistance level of $54. The formation of the dotted line above the candlesticks indicated the prevention of any possible breakout in the upward direction. The Relative Strength Index was also seen lounging in the high sell-pressure zone. If bears decide to prolong their stay in the LTC market, the altcoin might dip below $40.34, which has been a strong support level for LTC.

Monero [XMR]

Similar to every other coin in the crypto-verse, XMR recorded a massive drop in its price back in the first week of September. However, the coin seemed to be on its way to recovery. With a market cap of $1.48 billion, the privacy coin was trading at $83.59. However, at press time, XMR was seen plunging by 2.23%

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Bears seem to be reposing in the XMR market as the MACD line has been below the signal line for a long time now. Even though the bearish crossover took place long ago, both the lines seemed like they would soon converge. The Klinger Oscillator indicator, however, hinted at the presence of bulls in the market. If bulls do take over the XMR market, the price of the altcoin could push past a resistance level at $90.

Stellar [XLM]

XLM began its journey downhill back in August, unlike the other coins. However, the altcoin was seen rising by 2.90% during the time of writing. XLM was trading at $0.0815 with a market cap of $1.68 billion.

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The Awesome Oscillator observed a shift in the momentum, however, the bars were seen turning green after an array of red bars. The Chaikin Money Flow seemed to be headed towards the bearish territory as outflow of capital was indicated in the XLM market. If bears do take over the market, the altcoin might stoop below its critical support level at $0.064.

DeFi Bubble To Pop Sooner Than Expected, Says Messari’s Founder; DeFi’s Value Records Slump

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Even though the Covid-19 pandemic disrupted almost every other industry, Decentralized Finance [DeFi] witnessed exponential growth over the last few months. As the fervor around DeFi grew stronger with time, several platforms were seen venturing into the space. While DeFi went about locking great value, prominent crypto influencers suggested that DeFi was a bubble in formation. However, Messari Crypto’s Founder, hinted that the bubble would pop sooner than expected.

DeFi Following ICO’s Footsteps?

Right after DeFi fell under the crypto spotlight, several scammy projects claiming to have high yields infiltrated the space. Elaborating on the same Ryan Selkis, the founder of the prominent crypto platform, Messari Crypto tweeted,

“We’re nearing the apex of ponzi economics, rug pulls, and “yield” hopping, and ETH fees are going to eat too heavily into non-whale profits.”

Back in 2017, ICOs took the crypto-verse by storm, and in the present-day DeFi seems to be following a similar trail. Selkis pointed out how people assumed that there would be “coordinating utility token for every industry” which led to the boom of ICO. However, he believes that DeFi is just a “big pool of capital” that has been sloshing about a group of people, mostly insiders as well as mercenaries. He added that these individuals would soon run out of people to “fleece”.

Over the last few months, the DeFi space had been consistently hitting new all-time highs in terms of the value locked. DeFi even went on to lock a high of $9.605 billion. However, soon after this, the value of the industry came crashing down to $6.116 billion. During the time of writing, the total value locked in DeFi was at $7.65 billion.

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Selkis further highlighted that he stood by the “if it looks too good to be true, it is” rule and suggested,

“That’s 50% APY yields and greater fool investing in a nutshell. A better way to play DeFi may be to own a couple of blue chips, and forget about them for 3-5 years.”

Additionally, he asserted that even though he loves the “experimentation”  he wouldn’t endorse DeFi to a lot of people as he doesn’t recommend “high-stakes vegas poker to fish.”

Blockstream’s Adam Back shared similar thoughts as he had previously suggested that DeFi was a bubble in the making.

Jack Dorsey Continues To Endorse Bitcoin; Square Rolls Out Platform To Aid Crypto Innovation

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Over the years cryptocurrencies, particularly Bitcoin caught the eye of prominent personalities across the globe. While the coin was made for the average Joe to break from the shackles of centralized institutions, several authorities and notable people took a keen interest in Bitcoin.  Founder and CEO of a prominent social network company, Twitter, Jack Dorsey have been a great supporter of the crypto-verse and continues to support Bitcoin.

Bitcoin Is The Best Manifestation Of An Internet Currency

In a recent interview with Reuters, Dorsey pointed out that the internet was need of a native currency and believes that Bitcoin has fulfilled the same. He further suggested that no other coin could fill Bitcoin’s shoes as the native currency of the internet.

Highlighting the importance of toolmakers or developers, Dorsey detailed that it was essential for toolmakers like him to make Bitcoin easily available to people. He also stressed on how it’s his job to make it easy for individuals to understand as well as utilize the digital asset effectively.

Dorsey went on to elaborate on the plans he had to make Bitcoin easy and feasible for the community. He said,

“One is just transaction times and efficiency. So making it cost-effective and making it time-effective. The second is, intuitive to people; that they understand why they might use it, they understand where it is, and they can access it in a way that feels similar to just handing over paper cash.”

Almost every other coin that has entered the crypto-verse have tried to resolve the shortcomings of the king coin, however, Dorsey believes that Bitcoin should be built in such a way that is it “as intuitive as fast and as efficient” as it is today.

No More Stifles To Innovation

In other news, Dorsey’s payments company, Square rolled out a platform dedicated to preventing companies from locking innovations pertaining to cryptocurrencies in patents. The Cryptocurrency Open Patent Alliance [COPA] is a non-profit platform that hopes to aid in the growth of cryptocurrency technology.

The platform is reportedly open for membership and members would be required to pledge for the availability of their patents via a shared library. The announcement further read,

“As more members join and declare that they won’t offensively assert their patents against others, the overall incidence and threat of patent litigation comes down.”

Dorsey’s latest move seems beneficial to the crypto ecosystem, however, Square revealed that it was open to feedback with regard to its new platform.

After Libra, Regulations Delay Launch Of Digital Settlement Project Led By Banks

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Soon after the world witnessed the evolution of cryptocurrencies, several mainstream companies started pouring into the industry. While a few platforms invested in the existing coins, firms like Facebook and JP Morgan decided to roll out their own. After mainstream organizations, banks started taking a keen interest in developing digital coins. The announcement of the world’s biggest banks collaborating to roll out digital currencies took the world by storm. However, the latest updates suggest a delay in the project.

Regulatory Hurdles Stand Tall Before Digitalization

The Utility Settlement Coin [USC] was a project put forth by the 13 of the largest banks in the world, including Credit Suisse, Barclays as well as Banco Santander. After a while, USC changed into Fnality International and was originally scheduled to roll out this year. However, the project will reportedly launch during the Q1 of 2021.

The project aims at launching digital versions of the U.S dollar, Canadian dollar, the Japanese yen, euro as well as the British pound. While the world was in anticipation of the launch of this project, regulations put a hold on it. The Chief Executive of Fnality International, Rhomaios Ram told Reuters that the project was still in need of regulatory approval.

The 13 banks involved in the project invested a whopping 50 million pounds. The project has reportedly been under development for the past five years and was operated by the USB Group AG. The banks involved in the project intend to steer towards digitalization by limiting paperwork that takes place during the transfer of funds.

This isn’t the first time regulations have come in the way of innovations. Social media giant, Facebook’s crypto venture, Libra is the perfect example of the above statement. The project was constantly subject to scrutiny from regulators across the globe and was delayed. Even though the magnitude of regulatory pressure of the Libra project and Fnality have a huge disparity, seeking regulatory approval has become quite a task. Stressing on the same, Ram added,

“The technology is the least complicated part of this whole thing.”

New York Supreme Court Summons Bitfinex For Video Conference

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With scams and attacks having found a place in the crypto-verse, the involvement of law enforcement is inevitable. While some cases have been put to rest, a few others continue to seek justice in court. One such ongoing case between Bitfinex’s parent company iFinex and the New York Attorney General [NYAG]. As per recent updates pertaining to the case, both the parties involved will reportedly have a conference with the New York Supreme Court.

NYAG Seeks Video Conference With Bitfinex

On Wednesday, the New York Attorney General urged Joel M. Cohen, Judge of the Supreme Court in New York to carry out a video conference with iFinex. NYAG’s latest request follows iFinex’s negligence in producing the documents that the court had previously ordered. The court went on to affirm the video conference and scheduled it for 17 September 2020 at 11:00 AM.

iFinex, Bitfinex, and Tether were subject to immense scrutiny following the cover-up of $850 million funds that were lost. The case has been in court since April 2019 and iFinex has failed to submit documents that were essential for the case. While the NYAG claims that certain documents were key to the ongoing case, iFinex wanted the court to decide otherwise. Back in July, rejecting iFinex’s appeal, the court ordered that Bitfinex, as well as Tether, had a total of 60 days to present the required documents.

Since the crypto platform failed to do so, the NYAG went on request a video conference in light of the same. The filing read,

“At the conference we seek, the OAG will request that the Court order the immediate production of documents and information by Respondents [….]”

The Supreme Court further pointed out that the link to the forthcoming video conference would soon be presented to counsel before the conference. The court order further read,

“The parties are directed to submit letters to the Court, no more than 3 pages in length, outlining their positions on the issues raised above. The letters should be filed on NYSCEF on or before September 14.”

Mastercard Aids Development Of CBDCs With The Launch Of New Testing Platform

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Central Bank Digital Currencies [CBDC] have undoubtedly caught the attention of several governments. While China has been making headway with regard to the development of CBDC, other countries have been following suit. In more recent updates, Mastercard rolled out a platform to facilitate the development of CBDCs.

CBDCs To Get A Boost With Mastercard’s Testing Platform

On Wednesday, Mastercard shared a press release announcing the launch of a testing platform. This virtual as well as the custom testing platform will reportedly aid central banks in evaluating the use cases of Central Bank Digital Currencies. The financial services giant further suggested that the latest platform would carry out operations that would carry out several operations like issuance to the distribution of CBDCs. Furthermore, the exchange of CBDCs among financial service providers, banks, and consumers will also fall under the purview of the platform.

Mastercard’s Executive Vice President of the Digital Asset and Blockchain Products and Partnerships sector, Raj Dhamodharan pointed out that several central banks have been working towards modernizing the current payments systems for the incorporation of CBDCs. He further added,

“Mastercard is driving innovation with the public sector, banks, fintechs, and advisory firms in the exploration of CBDCs, working with partners that are aligned to our core values and principles. This new platform supports central banks as they make decisions now and in the future about the path forward for local and regional economies.”

CBDCs are a great precedent as the world steers towards digitalization. While several believe that CBDCs will soon replace fiat currency, Mastercard has taken a step to aid the same. Even though Mastercard has rolled out its testing platform, it urged several commercial and central banks along with tech and advisory firms to evaluate the functions of CBDCs.

Furthermore, the Head of Blockchain, Digital Assets, and Data Policy at the World Economic Forum, Sheila Warren highlighted that Mastercard’s latest move could give central banks a clear picture of the prospects of CBDCs. Stressing on the importance of the collaboration of private and public sectors, she said,

“Central banks can benefit from support in exploring the option set available to them with respect to CBDCs, as well as gaining insight into what opportunities may be forthcoming.”

Ukraine, Venezuela Way Ahead Of US In Terms Of Crypto Adoption

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The first cryptocurrency was dropped into the world in 2008. More than a decade later and thousands of cryptocurrencies have been launched so far, the industry has seen a significant increase in both value and popularity. From being associated with the dark web to being widely adopted across the globe, the crypto-verse has come a long way. The rate of adoption and the current value of cryptocurrencies stands as substantial proof. The latest report from Chainalysis further gives a peek into the countries behind the increased adoption rates.

US And UK Far Behind In The Crypto Game

While the world assumes financial leaders like the United States of America or the United Kingdom are open to innovation and encourage digitalization, Chainalysis’s latest report says otherwise. Even though authorities across the globe are realizing the importance of crypto, the adoption rate in several countries is still slow or stagnant. However, beating the US and China to the top, Ukraine, Russia, and Venezuela were the top players in terms of crypto adoption.

Research platform, Chainalysis shared a report titled “The 2020 Global Crypto Adoption Index: Cryptocurrency is a Global Phenomenon.” The report pointed out that Ukraine had the highest rate of adoption. The platform used four metrics to rank a total of 154 countries keeping in mind factors like population and the size of the economy of different countries. The sum of all the metrics further facilitated the ranking of the countries.

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The above table clearly indicates that developing nations were keener on incorporating crypto into their lives. Venezuela has been in the news following its severe economic conditions. The report revealed that the citizens of Venezuela were using crypto more than the country’s native fiat itself. Since Venezuela’s native currency, the Bolivar has been losing its value following inflation. The report further read,

“We also see this pattern in other Latin American countries, as well as Africa, East Asia, and elsewhere. Our data and interviews also suggest that some residents in many developing countries use cryptocurrency to carry out commercial transactions.”

Furthermore, the countries with the lowest rate of crypto adoption included Afghanistan, Algeria, Cape Verde, Chad, Fiji, Laos, Libya, Mongolia, Tajikistan, Turkmenistan, West Bank and Gaza, and Zimbabwe. This list, however, includes countries that are currently under oppression and have limited sources. The web activity in each of these countries was lower than that of the other countries that are ranked higher.

Binance Commences Trading For XRP And ETC Coin-Margined Perpetual Contracts

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Malta-based exchange of crypto-currency, Binance was launched in 2017 only three years ago. Despite a little late entering the crypto market, the exchange was quick enough to establish its position in the crypto-verse. Binance is currently the largest cryptocurrency exchange in the world. The exchange never fails to roll out new updates for its users and the platform. Despite being subject to several scandals, Binance continued to retain its position on the top. Earlier today, the exchange launched coin-margined perpetual contracts for two popular coins.

XRP And ETC Join The List

At 7:00 AM [UTC], Binance commenced trading services for coin-margined perpetual contracts for the coins XRP and Ethereum Classic [ETC]. Users would be allowed to leverage the coins within the range of 1-75x. The aforementioned coins would be paired against the United States Dollar [USD]. Binance made the announcement via a blog post and suggested,

“The XRPUSD and ETCUSD coin-margined perpetual contracts are futures contracts that use base assets i.e. XRP and ETC as collaterals.”

The Changpeng Zhao-led exchange recently rolled out the coin-margined perpetual contracts feature along with USDT-margined futures. Back in August, CEO CZ revealed that the volume of both Coin-margined, as well as USDT-margined futures, reportedly went up to a high of $13 billion.

While XRP and ETC are the latest additions to the list, Bitcoin [BTC], Ether [ETH], Chainlink [LINK], Binance Coin [BNB], Tron [TRX], Cardano [ADA] along with Polkadot [DOT] have been part of coin-margined perpetual futures. Even though the “Order Price Cap Ratio” for every coin is 5% the leverage for Bitcoin ranges from 1x to 125x while the leverage of altcoins is limited from 1x to 75x.

The crypto community seemed to be happy with the exchange’s latest additions, however, some of them pointed out that rolling out ETC futures would be a mistake citing the series of 51% attacks the network has endured in the past month. Twitter user, @simonadams19821 said,

“Are you seriously launching etc futures with the network constantly being attacked wow talk about irresponsible @cz_binance I urge you to reconsider this.”

Additionally, the price of Ethereum Classic [ETC] seems to have taken a hit post the 51% attacks. During the time of writing, the altcoin was trading at a low of $5.07 with a 1.39% plummet in its price over the last 24-hours.

Brave Browser Integrates Anti-Phishing Solutions To Prevent Crypto Scams

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Prominent privacy-centric web browser, Brave has been making headlines lately with several updates along with its Gemini integration to enhance its crypto features. The platform once again made news following its association with a cybersecurity firm, PhisFort.

Protection Against Crypto Scams

As the popularity and the value of the crypto industry have been progressing rapidly, the attacks and scams pertaining to the same seem to be following suit. While every other crypto platform has been taking the necessary measures to prevent scams and attacks, Brave joined the list and collaborated with PhisFort. On Tuesday, Brave browser took to Twitter to announce that the platform had incorporated PhishFort’s anti-phishing solutions to steer clear of potential crypto scams.

The tweet read,

“Brave now uses @PhishFort’s open source anti-phishing solutions for our in-browser Crypto Wallets to better protect our users. PhishFort’s spam list detects crypto scams and immediately warns our users of any suspicious domains.”

PhishFort isn’t new to the crypto-verse, the cybersecurity firm has partnered with several notable crypto platforms including MyEtherWallet as well as Binance Labs. PhishFort also elaborated on its latest affiliation with Brave and suggested that users of the browser would be protected with additional security that would have a vital impression on the protection of the community.

The anti-phishing platform shared a blog post detailing the importance of its integration on the browser. The post indicated,

“This integration provides additional security to their users who use the crypto wallet functionality built into the browser as they are now protected by our real time intelligence feed.”

Previously, PhishFort had highlighted that crypto users are prone to scams as “crypto is a high-value target for criminals.”

Back in June, Brave Browser was subject to immense backlash for the inclusion of affiliate links to the searches of its users. This further redirected the users of the browser to another website. However, the platform rectified its mistake and affirmed that the personal data of its users were not compromised.

The platform’s latest move along with Gemini integration reveals that Brave is diving deep into the crypto industry by bolstering its features related to crypto.

Binance Prolongs Its Dominance With Monthly Volume Of $124 Billion

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The COVID-19 pandemic put the entire globe in shackles and damaged the economy of almost every industry. However, unlike the others, the crypto market wasn’t adversely affected. While every industry is slowly getting back on track, the crypto industry has been performing exceptionally since the last few months. CryptoCompare’s latest report is substantial documentation of the same.

Binance Continues To Rule The Markets

A recent report published by a prominent crypto platform, CryptoCompare sheds light on the activities of exchanges in the month of August. As per the report, both top tier exchanges and low-tier exchanges enjoyed a surge in their volumes. While top tier exchanges which included Binance, Huobi Global, Coinbase, Liquid, Kraken, Bitfinex, Bitstamp, LMAX Digital, and bitFlyer recorded a 58.3% increase to $529 billion, lower-tier volumes witnessed a rise of 30.2% to 291 billion. These digits that the exchanges recorded during August were reportedly higher than July.

Malta-based cryptocurrency exchange, Binance is touted as the world’s largest crypto exchange. Living up to its title, the exchange outperformed other crypto exchanges along with its own record in the previous months and stood as the largest top-tier exchange by volume.

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Binance reportedly recorded a total trading volume of $124.9 billion in August which was a whopping 83% increase for the exchange. With a huge disparity, Huobi Global stood in second on the list as it recorded a trading volume of $65 billion. However, the exchange’s volume increased significantly by 176%. Coinbase has been one of the earliest exchanges of the crypto-verse, however, the exchange’s downtime especially during high volatility periods has caused the San-Fransico to garner merely $21.3 billion.

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The Changpeng Zhao-led exchange continued to dominate the market in August as the daily trading volume of Binance was significantly higher than that of other top-tier exchanges. OKEx and Huobi Global once again took over the second and third positions.

The August metrics highlight the increase in volumes as opposed to the previous months. Back in June and July, both the top-tier as well as lower-tier exchanges reported a plummet in their volumes. However, the latest data affirms that the trading activity in the crypto-verse is back to normal as the monthly exchange volume of August exceeded $600 billion.