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Can Cardano and its ‘tree plan’ enliven its price and its performance

Can Cardano and its 'tree plan' enliven its price and its performance

Cardano recently joined the bandwagon of smart contracts-enabled blockchains. The price has seen many ups and downs since then, but it’s barely moving at all at the moment. To set the price movement in motion, Cardano has taken a new initiative. But will it work for sure?

Why isn’t Cardano moving?

Cardano had a great month from late July to August. It even hit a new all-time high of $ 2.96 on September 3rd, but its performance has been pretty lackluster since then.

At the time of this writing, it was a solid 23% below its all-time high, despite several large daily increases. One such spike was on September 22nd, when ADA rose 13.75% and the instance had a heavy impact on investors.

The day after the surge, over 300,000 investors joined the network. The volumes weren’t that big, however, showing only a $ 3 billion increase.

Cardano addresses are increasing | Source: Intotheblock – AMBCrypto

The rest of the month saw no significant positive move either.

As bad as September was, October was at least not too hard for the altcoin. In a way, Cardano’s price action is consolidated right now.

Despite several attempts to break the $ 2.34 resistance for nearly a month, it remained unbroken. Although several wicks were passed through, ADA closed underneath.

Cardano price promotion | Source: TradingView – AMBCrypto

What did Cordano do to change that?

Since the end of the Cardano summit, the foundation has been has recorded an initiative to promote a healthy environment and to increase DeFi acceptance and participation by Cardano using the environment as a tool.

The discussion about the need for a green token has long been going on and picked up even more momentum when Tesla stopped paying in Bitcoin, citing environmental concerns. The initiative calls for a donation of 15-1 million ADA, which will lead to a plant being planted.

The donor also receives a digital NFT certificate, an “NFTree” work of art of varying rarity depending on the amount donated and other benefits.

Since the strategy is set in uncharted territory, it cannot be said with certainty whether it will be absolutely successful. How, if anything, it could help the price action remains to be determined.

The development of Cardano, Solana and Algorand could be influenced by this market trend

The development of Cardano, Solana and Algorand could be influenced by this market trend

As Bitcoin Up over 16% in the past week, with a market cap of a solid $ 1.04 trillion, it really seemed like bitcoin season had started. However, alongside modest BTC wins, some altcoins looked pretty bland.

Additionally, some of the top performing coins of the past month also appeared to be struggling to keep up with the market. Cardano, Solana, and Algorand were among the top smart contract platforms that looked a bit boring after a euphoric smart contract season back in September.

Smart contract season

Solana, Cardano, and even Algorand, in particular, had rallied in August and September, even as BTC and ETH consolidated. Solana posted a new ATH of $ 215.18 on September 8, while ADA rose to its ATH of $ 3.10 on September 2, and Algorand posted a new two-year ATH of $ 2.57 post-2019 on last month’s 13th.

During this time, the three alts achieved high long and short term ROIs supported by high trading volumes while being carried by the euphoric market sentiment.

Price of ADA, SOL and ALGO compared to BTC | Source: Sanbase

But that wasn’t all, the general market rebound and NFT boom played a big role in the rally. Apart from that, the ecosystem-centric developments of the platforms and the hype of the community favored their rallies.

For example, ADA’s ATH was fueled in part by the hype surrounding the release date of the network’s smart contract. While ADA created an ATH before it was released, its value fell shortly thereafter and didn’t gain much momentum after its September 12 release.

However, at the time of writing, all three altcoins had negative ROIs for a day, week, and month. But what exactly led to it?

Always riskier?

One worrying trend that the three alts shared in addition to consolidating prices was the sizeable decline in their Sharpe ratio. In fact, the Cardano and Solana Sharpe ratios fluctuated in negative territory. Solana’s Sharpe ratio has been in decline since the ATH was set on Sept. 8, and was -1.06 at the time of writing.

Source: Messari

Cardano’s Sharpe Ratio hit an all-time low of -3.55 on Oct 4th but has been in an uptrend since then. On the flip side, Algorand’s Sharpe ratio held up surprisingly well, trading at 3.19.

Additionally, the annualized standard deviation of daily returns (volatility) for both Solana and ADA has seen a steady downtrend, while that of Algo has fallen nearly 40% over the past day.

Notably, the three altcoins have shown independently-driven development and an overall distancing from the larger market when it comes to rallies over the past two months.

Now that BTC is rebounding, these alts seem to be afraid of making a profit. Additionally, given their circulating market cap, which has held up well despite the consolidation in prices, it is possible that they are just waiting for the larger market to consolidate to take their steps.

Polkadot at an intersection; Will it take the all-time highway?

  Polkadot at an intersection;  Will it take the all-time highway?

Since “Uptober” was really a Bitcoin month so far, most of the top altcoins either consolidated or drove with the larger market-driven profits. Bitcoin saw almost 15% gains while it only gained 5% while top alts like Cardano and Solana saw losses.

Polkadot, ranked 8th Alt, seemed to have gained some momentum, however. With DOT posting 6.5% daily and 13% weekly gains trading at $ 36.2 at the time of writing, speculation that the Alt is hitting its ATH rose again.

With Polkadot comfortably above the critical $ 33 resistance this time around, the real question was whether those gains were market-driven. If not, can they stand?

Previous rallies at a glance

After the lightning crash, DOT drove on renewed bullishness as the Alt price on the daily chart experienced a parabolic rebound similar to that at the beginning of the year. However, this was countered with considerable losses and consolidations.

The price of DOT in particular was sensitive to BTCs and more or less followed the lead of the top coin over the last month. But on the upside, DOT held up better than the bigger market when BTC fell.

Source: TradingView

Notably, on a 12-hour chart, the RSI had finally entered the overbought zone after more than a month. DOT’s price could target a 20% rise as it flipped the $ 33 level as seen on previous rallies. Just looking at the pricing structure, the odds for an ATH looked high, but what about on-chain data?

Can these factors be spoilsport?

Amid great anticipation of DOT’s price tag and increased hope that the network could announce the Polkadot Parachain auctions next week during the Sub0 online event, DOT’s social volume saw a sharp surge, with Polkadot being a “trending project” was on social media.

Source: Sanbase

Although DOT’s high social volume hasn’t had a great correlation with its price in the past, the positive sentiment has been good for the network. However, the network saw slowdown in development as it declined more than 50% in the last five days after press time.

DOT’s open interest in the futures market since the May sell-offs has been $ 745.75 million. This indicated an increase in the number of outstanding contracts from market participants, while underscoring the fact that new capital was flowing into the coin’s markets.

Source: Coinalyze

So while the chances of DOT reaching an ATH looked solid, the possibility of a trend reversal as seen earlier couldn’t be ruled out either if the larger market consolidates. All in all, DOT appeared to be at an interesting crossroads.

Why Bitcoin investors have to “curb their copiousness” for the time being

Why Bitcoin investors have to

Bitcoin was the best-performing asset among all the top 10 coins on the market this week. It has justified its status as a royal coin once more. But as a king, it also faces many altcoin threats at times.

In this particular case, however, the threat comes from their own investors. And not in the form of a sale, but an actual purchase.

Bitcoin on a roll

Bitcoin has been flying high for more than 10 days. From a decline to $ 42,000 in late September to a surge to $ 55,000, the rebound was quick and strong.

However, it is important for investors to be careful in such a rapidly growing market. In such a case, the chances of a trend reversal usually increase as quickly as the asset.

Bitcoin price action | Source: TradingView – AMBCrypto

Right now the total supply in profit is 92.92%, only 2% away from topping the market. In just 12 days, around 16% of the coins that lost in September have already returned to profitability.

Bitcoin supply in profit | Source: Glassnode – AMBCrypto

So what’s the harm?

For technical reasons, a market high is followed by a price decline. Additionally, the 17% price spike we’ve seen this week, combined with the fact that BTC is still rising, could result in the top of the market coming soon.

Now there have been cases in the past where this has not happened, such as during the all-time high bull run in April. But then again, when Bitcoin hit the same zone of more than 95% in May, we saw a sell-off. Not that the next range will sell off, but we can never be sure what will happen, so it’s better to play it safe.

Therefore, to ensure there is no significant negative impact, Bitcoin investors should hold back their bull market for a while. Because even at the time of going to press, buy orders dominated over sell orders, and that by almost 1.1 billion US dollars (20,000 BTC).

Bitcoin buy and sell orders | Source: Intotheblock – AMBCrypto

Again, this is an interpretation of on-chain data and in no way investment advice. At the end of the day, it is therefore also recommended that investors also do their own research and invest accordingly.

Aside from decent network growth, how’s Avalanche, Curve doing in terms of pricing?

Aside from decent network growth, how's Avalanche, Curve doing in terms of pricing?

At the beginning of last quarter, the crypto market bounced back from losses in September, with the space’s total market cap hitting a whopping $ 2.32 trillion at the time of writing.

The DeFi space appeared to be thriving too, with Total Value Locked up 14% this week, topping $ 160 billion, and hitting $ 200 billion. While DeFi space appeared to be growing, some DeFi tokens like AAVE and Curve saw startling developments in terms of price and network growth.

In mid-August, the Avalanche Foundation announced that Avalanche rush, a $ 180 million liquidity mining incentive program to bring more applications and assets to its growing DeFi ecosystem. It started with two of the largest DeFi protocols after Total Value Locked (TVL), Aave and Curve. The same thing gave both networks a massive boost.

Incentives work!

The incentive program appeared to have fueled the AVAX, AAVE, and Curve networks. This marked the first time the secondary protocol regarding TVL Aave has been ported to a chain that calls itself a scaling solution specifically for Ethereum (other than Polygon).

AAVE’s total TVL was up more than 20% in October itself, with the total value at the time of writing being $ 14.9 billion.

However, the real winner of the incentive program appeared to be Curve Finance, the automated market maker taking the top spot, according to TVL, turning AAVE around. The protocol’s TVL rose 20% to hit the $ 16 billion mark at $ 15.96 billion.

Source: Defillama

Additionally, Avalanche’s total TVL had risen to $ 5.19 billion on October 10, a number more than 15 times higher than on August 18 when Avalanche Rush was announced.

Recent momentum and the Avalanche Rush program have put Avalanche in sixth place in the TVL rankings, behind Fantom, which has $ 5.85 billion in TVL.

All the growth and no price gains?

Obviously, the incentives have worked their magic in gaining Defi-Protocols for deployment on other blockchains while fueling network and TVL growth for the protocols as well as the chain.

Normally, such an increase in TVL would have a positive impact on price, but this time it was different, especially for AAVE. With the rise in Bitcoin’s price, most of the altcoins consolidated or posted minor market-driven gains.

It was possible that Bitcoin’s growing market dominance, along with decent price gains, made the market skeptical about entering into trading in altcoins. Let alone mid-cap alts like AAVE, top alts like Cardano and Solana also seemed to be struggling.

Dwindling confidence and low trading volumes for AAVE were just a few reasons the Alt seemed to be struggling on the price front. However, the Curve DAO Token price had seen decent gains through October 9, but was down almost 7% at the time of writing.

CRV’s price gains could be attributed to the recent surge in the TVL, which put the protocol five places at the top. Still, the rise in TVL gave the two protocols the overall boost they needed.

After a remarkable feat of what these metrics now mean for Avalanche

After a remarkable feat of what these metrics now mean for Avalanche

Avalanche has become one of the most famous blockchains in the last few weeks, especially when it comes to DeFi. But there should be more. If you consider that most investors are not yet familiar with DeFi, or at least have little information, they stay on the spot market.

And when you look at the current terms of Avalanche, these investors may not feel as good as they used to be.

What about avalanche?

The month of October was cheap for most of the coins in the market, with Bitcoin and Ethereum driving the surge. However, Avalanche is one of the few altcoins that did not participate in the rally. Right now, AVAX is the only top 15 coin that has seen its price drop. At press time, the altcoin was trading at $ 61.18.

AVAX price movement | Source: TradingView – AMBCrypto

Since early October, AVAX is down 8.22% from $ 67. The price indicators also showed no explicit signs of recovery.

The Relative Strength Index has not moved from neutral in 4 days. And the MACD is continuously bearish.

In addition, the trade was also hit. Volumes are currently at a two-month low of $ 812 million, despite AAVE’s begin online on October 5th.

Avalanche trading volume | Source: Santiment – AMBCrypto

This is actually due to the developers of the network. Their contribution has decreased since the end of September, which is reflected in the level of development activities, which has fallen to a 2-month low.

As a result, investors in the spot and derivatives markets have slowed. Buy, sell, liquidate, everything has decreased significantly.

AVAX buy-sell volume | Source: Coinalyze – AMBCrypto

So no hopes for AVAX?

Indeed there is. On the DeFi front, the network has worked almost always, even better. In less than 5 days, the network’s Total Value Locked (TVL) rose $ 1 billion, 50% of which came just yesterday.

A big contributor to this increase was 4 logs, which have grown remarkably over the past week. Anyswap, a cross-chain swap protocol, has grown by over 228%. The Abracadabra credit record was up 91%.

Additionally, Wonderland – the first DeFi reserve currency protocol – is up 97%. And finally, a return log called Zabu Finance contributed with a 122% growth.

So while the NFT and DeFi hype of the last few weeks gave AVAX a big boost, the current situation on the spot and futures market is a reality check for investors. DYOR and invest carefully.

With these aspects, MATIC could be on the way to a breakthrough

With these aspects, MATIC could be on the way to a breakthrough

Given the strong Bitcoin gains, the state of the broader crypto market has been satisfactory to say the least. However, the falling returns on some of the top altcoins like Cardano, Solana, Avalanche, and MATIC have created a sense of insecurity with these altcoins.

Nonetheless, there were subtle signs in pricing structures and the state of on-chain metrics that gave way to some optimism about their development, especially for MATIC.

Price is stuck in a closed channel

MATIC jumped 10% to a three-week high of $ 1.42 on October 8, after hitting lower lows for most of September. There has been talk of Polygon overshadowing the Ethereum network after the former’s active addresses briefly flipped ETHs a week ago. In fact, however, the increasing adoption of its interchain scalability solution is a boon for Ethereum.

The reason for this is that Polygon is an L2 solution that runs on the Ethereum network to process transactions faster and make it easier for Ethereum-based apps to work with other blockchain platforms.

Polygon recently released Swap for Gas on the same day that its price hit a new three-week high. Swap for Gas is a user-friendly solution for the procurement of MATIC in the Polygon Mainnet, which also facilitates bridging. Nonetheless, these developments failed to pull MATIC out of its volatile momentum or push it above the $ 1.5 mark.

Bullish structure in the making?

The positive side of MATIC’s limited movement, however, was that MATIC has developed a bullish structure in terms of pricing. With the 14-day RSI looking bullish above 50 and pointing up, the alt could see further gains once the key resistance at $ 1.5 is broken.

In addition, its price seemed to form a huge triangle. Breaking the trendline and pinning above it could cause a sharp move in price at the base of the triangle.

In particular, with a narrowing symmetrical triangle of the MATIC price, the chances of a breakout also seem to be getting closer.

Network growth fuels the perpetuals market

According to DefiLama TVL’s data in Polygon, they’re just under $ 9 billion, as it was $ 8.43 billion at the time of writing, but the log could hit those levels by the end of October. This growth in the MATIC network can be attributed to the NFT boom and the gaming tick-off.

Other factors like the news from the polygon blockchain used by the Swiss Post also sparked a positive story for the coin amid consolidation.

Notably, MATIC’s share of the total supply of stablecoins held by whales has increased to more than $ 5 million. As the metric neared the ATH level and prices did not show a major increase, it was an indication that whales were piling up, which was a good sign for MATIC’s price in the near future.

Source: Sanbase

In addition, the open interest for the altcoin in the perpetuals market seemed to be increasing steadily. In fact, OI is up 7.15% in one day from press time.

Source: Coinalyze

However, active addresses and daily active addresses showed a lack of market participation, while a trend towards low trading volumes also aroused skepticism in the spot market. However, as the network grows and certain metrics converge, a strong push from the bulls could send MATIC to a new ATH.

The “living development” of Ethereum may push prices higher in the near future

The

With Bitcoin stealing most of the market’s attention, Ethereum, as the top altcoin, has fallen out of the picture since it launched in the fourth quarter. On the price front, BTC’s growth has increased market anticipation, while Ethereum has taken an underdog approach, the development side of which looks pretty much alive.

Demand for Ethereum is making a comeback

After a massive surge in Layer 2 protocols towards the end of the third quarter, demand for Ethereum blockspace appeared to have recovered early in the last quarter of the year. In particular, Ethereum’s transaction fees topped $ 1 billion in September with an average transaction fee of $ 28.

After EIP-1559 went live, a staggering 55% net reduction in ETH emission was noted, with over 474,000 ETH ($ 1.7 billion) burned. This in turn made way for a supply shock narrative that was optimistic about the long-term development of ETH.

Source: SpencerNoon

However, as analyst SpencerNoon noted, Ethereum’s persistently high fees hampered the user experience and served as a tailwind for greater user adoption of cheaper L2s and alternative L1s.

This could be one reason active addresses on Ethereum were close to 577K, which has fallen nearly 25% since the highs in May. Nonetheless, a booming NFT market indirectly enabled a more robust Ethereum ecosystem alongside Defi’s growth in the last quarter.

Healthy HODLing behavior

Ethereum HODL waves help track how actively the current ETH offering is based on the last move in the chain. It is noteworthy that 76% of the offer has not moved for more than six months and about 46% of the offer is in age groups of more than one year.

ETH HODL waves | Source: Glassnode

The most important factors affecting the HODL waves include the dominance of ETH in Defi, the staking of Ethereum and the ETH reserves of the CEX in cold storage. One worrying factor, however, was that $ 306 million worth of ETH was deposited on exchanges, compared with $ 750 million withdrawn last week.

Looking at the increasing foreign exchange inflows, it appeared that the pressure on the sell side, which has to be absorbed around the price resistance level, could increase.

Development looks alive

Data scientist Daren Matsuoka specified that the Ethereum developer community is “more alive than ever”. In fact, more developers have entered the Ethereum ecosystem so far this year than in the previous two years combined.

Source: Daren Matsuoka

Ethereum’s developer activity growth was analyzed by looking at the GitHub stars in major developer repositories such as web3js, truffle, solidity, hardhat, ethersjs, OpenZeppelin contracts, web3py and scaffold-eth over time.

Remarkably, there were now over 39,000 Github accounts that contained at least one of the major repositories. With increasing development activity and increasing demand for the Ethereum network, the future of ETH looked rather bright.

The FBI arrested 26 Israelis on suspicion of involvement in a cryptographic fraud program


								The FBI arrested 26 Israelis on suspicion of involvement in a cryptographic fraud program

The Federal Bureau of Investigation worked with the Israeli police to arrest 26 people accused of crimes related to the use of digital currencies. Although the operation took place in Tel Aviv, it involved victims who all reside abroad.

Detention of criminals

According to a local report, the FBI and the Tel Aviv District Anti-Fraud Unit of the Israeli Police conducted an investigation into criminals who stole tens of millions of shekels from victims. In a recent joint operation, the two units arrested 26 people suspected of participating in money laundering offenses related to digital forex trading.

Local officials said they received a report from the United States that a group of Israelis were deceiving dozens of people in a fraudulent cryptocurrency investment scheme. Instead of delivering the promised services, the criminals stole millions of dollars from the victims.

After the investigation, authorities arrested the attackers in an overnight operation and seized digital storage devices and computers as evidence of the investigation.

According to the announcement, all those arrested are residents of central Israel. Officials did not disclose their names or the company they work for. However, they informed that the trial will begin with two of the suspects, men in their thirties, appearing in the Tel Aviv magistrate’s court this week. The victims of the fraud, on the other hand, are the Americans.


ANNOUNCEMENT

The report adds that in addition to arrests in Israel, local law enforcement has recently carried out similar operations in other countries around the world.

More arrests of cryptocurrency scammers

One of the hottest topics in the digital assets space earlier this year was the infamous trading venue: Thodex. In April, nearly 400,000 users of the Turkish cryptocurrency exchange were banned from their accounts without being able to withdraw their funds. The platform’s website has been inactive for several days, as reports suggested that its CEO had fled the country with up to $ 2 billion.

As a result of the investigation, Turkish police arrested 62 people involved in the scam and even jailed 6. Among them were the brother and sister of the company’s CEO, Faruk Fatih Özer. The chief of Thodex, however, is still a fugitive.

Like CryptoPotato reported in June, such an arrest also occurred in China. At the time, Chinese authorities arrested 1,100 suspects who allegedly used digital assets for money laundering activities to avoid law enforcement. The subsequent investigation also led to the dismantling of 170 criminal gangs.

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While Shiba Inu jumps up, Dogecoin can STAY!

While Shiba Inu jumps up, Dogecoin can STAY!

Dogecoin-inspired meme coin Shiba Inu made headlines this week due to its surprising rally. However, any time a premature surge occurs, it can also make investing in the asset slightly risky.

Of course, given that DOGE and SHIB are viewed as the leaders of the pack, one might expect Dogecoin to be similarly volatile. But this was not the case.

Dogecoin cannot be manipulated

At least not with other coins, because who knows what the next tweet from “Dogefather” could do with the market. Even so, the events surrounding SHIB over the past 5 days have only been terrifying.

Since October 3, the SHIB has risen 255.5%, despite having fallen almost 18% on October 7. At the moment the coin was trading at 0.0002939.

SHIB price rally | Source: TradingView – AMBCrypto

Investor behavior on that date was as expected. Over 176-178 trillion SHIB were both bought and sold that day. Trading volume for the meme coin, which averages less than $ 300 million, hit $ 9.97 billion on October 6.

Shiba Inus volumes | Source: Coinalyze – AMBCrypto

However, the effects on DOGE were not what you would imagine.

Stable DOGE ………………………………………………………………………

Dogecoin holders may have responded to Shiba Inu’s move, but the price of the coin showed some reluctance. For the most part, DOGE has followed the market keyword and not that of any other coin. Since the beginning of the month, the altcoin is only up 20.32%.

Dogecoin price rally | Source: TradingView – AMBCrypto

And although DOGE recorded exceptionally long wicks on both ends on October 6, it only closed at + 0.85% in the end.

However, the highs and lows of the day resulted in Dogecoin liquidations worth over $ 6 million.

Dogecoin liquidation | Source: Coinalyze – AMBCrypto

Along with retail investors, large purses, or possibly whales, have made some significant transactions. Approximately 6.19,000 transactions, each valued at more than $ 100,000, were completed in 48 hours. Cumulatively, these were estimated at over US $ 21.61 billion.

Mind you, DOGE’s average volume on any given day is less than $ 2 billion.

Dogecoin large transactions | Source: Intotheblock – AMBCrypto

So while investors are always nervous when it comes to the ups and downs of their brothers and sisters, DOGE has shown us that regardless of the behavior of its investors, it knows how to keep its market stable. Good boy.