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Will LTC Price Rally After Halving

  • August 12, 2023

Litecoin Price Prediction

On July 3, the LTC price reached its new 2023 high of $114, rising by nearly  53%, with its market cap crossing $8 billion. The approaching halving event scheduled for August 2023 sparked enthusiasm among investors, hoping it would further boost the LTC price.

However, Litecoin (LTC) saw a decline in price on 2 August after it completed its halving event, with the block rewards paid to miners dropping from 12.5 to 6.25 LTC.

Litecoin (LTC) is a peer-to-peer cryptocurrency network facilitating fast, low-cost payments worldwide. It’s one of the earliest altcoins that shares similarities with Bitcoin in terms of its underlying technology and principles. 

This article introduces Litecoin (LTC), including how Litecoin halving works, its price surges, risks, and the LTC price prediction based on experts’ opinions to help you decide whether Litecoin is a good investment.

What Is Litecoin (LTC)? 

Litecoin (LTC) is an open-source, peer-to-peer (P2P) PoW (Proof-of-Work) cryptocurrency network facilitating fast and affordable global payments. LTC, the Litecoin network’s native coin, is the second-oldest crypto coin in the market.

Litecoin was created as a fork of Bitcoin (BTC) by former Google employee and Coinbase engineering director Charlie Lee in 2011. Lee aimed to create “Bitcoin lite” by improving on the Bitcoin network’s main issues, such as speed, scalability, and centralization.

Widely known as Digital Silver, the silver counterpart to Bitcoin’s gold, Litecoin enables faster and more secure borderless transactions with greater scalability and reduced transaction fees.

With faster block times and higher supply, the altcoin provides Lightning, a Layer 2 scaling solution for immediate global transactions, and Atomic Swaps for cross-blockchain trustless trading.

Litecoin uses the Scrypt hashing algorithm, making Litecoin mining more accessible to a broader range of individuals.

How Does Litecoin Halving Work?

Halving events are a key feature of many PoW cryptocurrencies, including Litecoin. They occur at specific block intervals and involve a reduction in the block rewards miners receive for validating transactions and adding them to the blockchain. 

Litecoin halvings occur every four years, in which block validation rewards are reduced by 50% for every 840,000 blocks. Halving aims to maintain Litecoin’s deflationary nature and increase its scarcity, potentially leading to higher demand and price appreciation. During each Litecoin halving event, the block reward is cut in half. This reduction in the rate at which new coins are created is intended to slow down the issuance of new coins over time and control LTC’s total supply.  

Litecoin’s recent halving occurred on 2 August 2023 and reduced the block reward by half, bringing it from 12.5 to 6.25 LTC.

The past two halvings since the launch of Litecoin occurred in August 2015, when the block reward got reduced from 50 to 25 LTC, and in August 2019, when the mining rewards were halved from 25 to 12.5 LTC per block. 

This process will conclude in 2142 when there are no more LTC coins to mine.

The Impact of 2023 Litecoin Halving on LTC Price

Litecoin’s price rallied before the halving event on 2 August 2023, similar to its past halving events, in which LTC’s price surged several months before halving due to reduced supply and increased demand.  

LTC price reached its 2023 peak of $114 on July 3, rising by nearly  53%, with its market cap crossing $8 billion.

Additionally, the Litecoin hash rate experienced a notable increase in June, ahead of the halving event. 

However, LTC has already experienced a 12% post-halving crash, declining toward $83, similar to the previous halving events in 2015 and 2019. 

On-chain data reveals the reason for the LTC price decrease is that whale investors and long-term holders have been massively selling their LTC holdings. According to data from Santiment, the whales with cumulative balances of 1,000 to 100,000 LTC started selling off a few days before the Litecoin halving event.

An analysis by BeInCrypto states that amid bearish sentiment after the halving, Litecoin bears aim for $70, putting the $80 support level at risk. However, if $80 support falters, the Litecoin price could drop to its next crucial support area at $72. 

Yet, if  LTC regains positive momentum, bulls could force an early rebound toward $90. A swift retake of $90 is possible if bulls conquer this resistance.

Litecoin founder Charlie Lee believes these disinflationary halvings help achieve mass adoption without sacrificing network security. However, he doesn’t think halving has much effect. Instead, Lee believes the impact of halving on the LTC price depends on how the market reacts to the halving. During a Twitter live stream, he stated that “A lot of the price action is a self-fulfilling prophecy,” and added: “Just because people think the halving is going to cause the price to go up, they will buy ahead of the halving or even right after the halving.”

Additional Factors Affecting the Litecoin Price

Like any other cryptocurrency, the Litecoin price is subject to various dynamic influences driving significant fluctuations. Understanding these factors, along with the impact of halving events, is crucial for making informed investment decisions. 

Let’s examine the additional factors that can potentially impact Litecoin’s price movement below.

Supply and Demand 

The price of Litecoin, like with any asset, is affected by its supply and demand. If the demand for LTC exceeds its supply, the price will increase. Conversely, the price will decrease if the supply is more than the demand. Higher market capitalization leads to increased demand and higher prices. Conversely, higher trading volume indicates increased supply, leading to lower prices.

Market Sentiment

General market sentiment, influenced by positive or negative media coverage and trends on social media platforms, can impact investor sentiment and trading activity.

Macroeconomic and Regulatory Factors

Economic indicators, geopolitical events, and macroeconomic trends can influence investor behavior in the cryptocurrency market.

Regulatory changes and legal frameworks can also influence investor confidence and trading volumes.

The Cryptocurrency Market

Another significant factor affecting LTC’s price is the general cryptocurrency market. Cryptocurrencies are highly interconnected, and the prevailing trends in the cryptocurrency market affect individual crypto prices. Plus, Litecoin often follows BTC price trends, as it’s closely connected to Bitcoin. So, positive or negative movements in Bitcoin can have a cascading effect on Litecoin.

Technological Advancements and Use Cases

Upgrades, improvements, or innovations in Litecoin’s technology can significantly impact its utility and security and attract investors. Plus, increased adoption of Litecoin as a means of payment or in various applications can drive demand and affect the LTC price.

OmniLite, a decentralized token creation platform enabling developers to build NFTs and construct their own bespoke cryptocurrencies on the network, has greatly enhanced Litecoin’s user experience.

SegWit, Segregated Witness, and the MWEB (MimbleWimble Extension Block) update, improving anonymity for senders and receivers of transactions on the Litecoin network and substantially enhancing its privacy feature, were among Litecoin’s other significant updates. 

 LiteVerse was the first NFT marketplace on the Litecoin network, introduced in 2022. 

A Litecoin-based Lightning Network mobile wallet, and MWEB-integrated mobile wallets, have also been announced by the developers.

Litecoin’s widespread adoption among Coinbase, BitPay, NOWPayments, CoinGate, Alliant, and CoinPayments has also positively affected the LTC price. 

In 2022, the Litecoin Foundation stated that Visa would permit owners to use the Litecoin Card to spend Litecoin. 

E-commerce systems such as Shopify and WooCommerce enable online retailers to accept Litecoin payments.

Litecoin (LTC) Price Predictions

Litecoin price, like cryptocurrency prices in general, has been volatile since its launch in 2011. LTC reached an ATH of $410.26 in May 2021 but experienced a sharp decline shortly after. LTC’s price was also in a downturn during the recent bear market following the Terra-LUNA crash and the FTX collapse.

At the beginning of 2023, the LTC price increased from $69.95 on Jan 1, 2023, to a peak of $102.83 on Feb 16, 2023. It declined in March to $69.29 but quickly recovered, reaching $101.82 by mid-April and $114 on July 3.

Within the last month, the LTC price decreased by 17.605%, meaning the coin is in a dip and could be a good buy opportunity for quick investment.

LTC Price Predictions 2023

PricePrediction.Net makes future Litecoin price predictions by applying deep artificial intelligence-assisted Technical Analysis on its past price data, including LTC past price, market cap, volume more.

It predicts the price of Litecoin to reach a minimum level of $92.98, a maximum level of $105.02, and an average trading price of $96.27.

Cryptonews analyzes the LTC price based on the halving event and technical indicators. It forecasts Litecoin price recovery due to LTC’s rising 30-day moving averages, decreasing relative strength index (purple), indicating a positive turnaround, and increasing support level.

According to Cryptonews, while LTC’s position still seems relatively mixed and uncertain, it won’t fall much further again before recovering.

Cryptonewsz forecasts the LTC price to hit a maximum price of $189.286, a minimum price of $77.915, and an average trading price of $133.601.

CoinCodex characterizes the general Litecoin price prediction sentiment as bearish, with 6 technical analysis indicators signaling bullish signals and 24 signaling bearish signals, and the Fear & Greed Index showing 54 (Neutral). Based on its Litecoin forecast, it’s now a bad time to buy LTC. CoinCodex’s Litecoin forecast 2023 is within a range of $ 56.55 and $ 82.59. If it reaches the upper price target, LTC could reach $ 82.59.

Changelly predicts the LTC price to have a minimum price of $69.93, a maximum price level of $82.63, and an average trading price of $95.33.

LTC Price Predictions 2025

PricePrediction predicts the Litecoin price to reach a minimum level of $199.61, a maximum level of $237.12, and an average trading price of $205.20 throughout 2025.

Cryptonewsz suggests that the Litecoin price could be highly volatile yet surge in 2025. The minimum and maximum prices are expected to be $212.339 and $305.675, respectively, while the average trading value is predicted to be $259.007.

CoinCodex predicts Litecoin price to range between $ 60.85 on the lower end and $ 217.88 on the high end. Based on its LTC price prediction chart, the price of Litecoin could increase by 162.68% and reach $ 217.88 if it reaches the upper price target.

Changelly predicts the LTC price to have minimum and maximum prices of $199.59 and $237.10, respectively, and an average trading price of $205.18.

LTC Price Predictions 2030

PricePrediction predicts LTC price to reach a minimum level of $1,305.41, a maximum possible level of $1,565.15, and an average trading price of $1,341.64 throughout 2030.

Cryptonewsz predicts Litecoin may trade at an average of around $892.27. According to its LTC price prediction for 2030, it might fluctuate but stay consistently bullish throughout the year. By the end of 2030, the minimum and maximum price levels might be $731.50 and $1,053.04, respectively.

WalletInvestor has a negative outlook on Litecoin’s price and implies a negative future trend, considering LTC not a good investment for making money. 

CoinCodex’s Litecoin price prediction for 2030 is between $ 38.92 on the lower end and $ 234.89 on the high end. Based on its LTC price prediction chart, the price of Litecoin could gain 183.38% and reach $ 234.89 if it reaches the upper price target. 

According to Changelly, the LTC price will have a minimum price of $1305.28, a maximum price level of 1564.99, and an average trading price of $1341.51.

Final Words

The Litecoin (LTC) price is affected by a range of factors, including market factors, cryptocurrency trends, news and events, halving events, and investor sentiment. The future of Litecoin is highly dependent on the overall performance of the crypto industry.

While few crypto analysts consider Litecoin a promising blockchain in terms of technology,

it’s one of the oldest cryptocurrencies, still ranking as one of the industry’s most valuable ones at $7 billion.

When investing in LTC, you must take these predictions as merely the suggestions of some market experts and only invest what you can afford to lose.

The Psychology of ‘Aping In’: Decoding Crypto Investment Behavior

  • July 7, 2023

Cryptocurrency investing is a thrilling rollercoaster ride, full of potential riches and pitfalls that can leave investors both exhilarated and disoriented. 

In this high-stakes arena, the phrase “aping in” describes the impulsive behavior of investors diving headfirst into the latest crypto craze disregarding the risks involved. 

This phenomenon highlights the critical role psychology plays in shaping investment decisions. To decode the mysteries of crypto investment behavior, we must delve into the minds of these digital mavericks and uncover the driving forces behind their choices.

By exploring the intricacies of cryptocurrency investing and the psychology that fuels it, we can shed light on the factors contributing to the sometimes irrational behavior exhibited by investors. 

In this captivating journey, we’ll not only examine the emotions and biases influencing decision-making but also reveal how data-driven analysis can help mitigate these factors, enabling investors to navigate the crypto landscape with confidence and poise. 

So, fasten your seatbelts and get ready to unlock the secrets of the crypto investment world, where the lines between fear, greed, and rationality blur to create a thrilling yet challenging financial adventure.

The Psychology of Cryptocurrency Investing

As mentioned, understanding the psychology behind cryptocurrency investing is crucial for making informed decisions. Several psychological factors influence investor behavior, including:

Fear of Missing Out (FOMO)

FOMO is the anxiety arising when we believe we might miss out on a valuable opportunity. In cryptocurrency investing, FOMO can drive investors to buy into a rapidly appreciating asset, often at the peak of its value. This behavior can lead to significant losses if the market corrects or crashes. For example, buying Bitcoin at its peak in 2017, just before it lost 80% of its value. 

Loss Aversion

Loss aversion refers to the tendency to avoid losses over acquiring equivalent gains. In the cryptocurrency world, this can manifest as an unwillingness to sell an underperforming asset, even when it’s clear that the investment is not likely to recover. An investor might hold onto a sinking altcoin, hoping for a miraculous recovery, even when all evidence suggests it’s time to cut their losses. This can result in even more significant financial setbacks as the asset continues to decline in value.

Confirmation Bias

Confirmation bias is the tendency to search for, interpret, and remember information confirming our beliefs or opinions. In crypto investing, this can cause investors to selectively focus on positive news or data while ignoring negative indicators, leading to an unrealistic assessment of an investment’s potential. An investor, bullish on a particular cryptocurrency, might focus solely on its recent adoption by a major company while ignoring the regulatory issues and negative news surrounding it. This selective attention can lead to misguided investment decisions.

Overconfidence

Overconfidence is the tendency to overestimate one’s abilities, knowledge, or control over a situation. In cryptocurrency investing, overconfidence can lead to rash decisions, such as putting too much money into a single asset or failing to conduct thorough research before investing. An overly confident investor may allocate a significant portion of their portfolio to a new, unproven cryptocurrency, convinced that they’ve discovered the next Bitcoin. This arrogance can expose them to unnecessary risks and potential financial losses.

Herd Mentality

Herd mentality refers to individuals’ tendency to follow a more extensive group’s actions or behaviors. In cryptocurrency investing, this can result in investors buying or selling assets based on the steps of others rather than conducting their own research and analysis. An investor, swayed by the enthusiasm of a large group buying a particular cryptocurrency, might decide to invest without conducting their own due diligence. This behavior can lead to poor investment choices that may not align with their personal financial goals.

Data-Driven Analysis of Cryptocurrency Investing

It’s essential to rely on data-driven analysis when making investment decisions to mitigate the influence of psychological biases. Below are some key aspects of data-driven analysis in the context of cryptocurrency investing.

Historical Performance of Various Cryptocurrencies

Understanding the historical performance of different cryptocurrencies can help investors identify trends and potential opportunities. Investors can gain valuable insights into how a particular cryptocurrency has fared in various market conditions by examining factors such as price, market capitalization, and trading volume over time.

For instance, Bitcoin, the first and most well-known cryptocurrency, has grown substantially since its inception in 2009. From a starting price of less than $0.01 in 2010 to its all-time high of around $64,800 in April 2021, Bitcoin has demonstrated incredible long-term performance. Despite its volatility, Bitcoin has maintained its position as the leading cryptocurrency by market capitalization, which reached over $1 trillion in 2021.

Ethereum, the second-largest cryptocurrency by market capitalization, has also displayed impressive historical performance. Launched in 2015, Ethereum’s price rose from around $0.40 to an all-time high of approximately $4,360 in May 2021. Apart from its value as a digital currency, Ethereum’s unique features, such as smart contracts and decentralized applications, have contributed to its growing popularity and market capitalization, which exceeded $480 billion in 2021.

However, not all cryptocurrencies have experienced the same level of success. Some, like Ripple (XRP) and Litecoin (LTC), have shown relatively modest growth compared to Bitcoin and Ethereum. As of April 2023, XRP’s all-time high was around $3.40 (January 2018), while LTC’s all-time high reached approximately $410 (May 2021). Despite their lower market capitalizations and growth rates compared to the top cryptocurrencies, XRP and LTC remain popular choices among investors due to their unique features and use cases.

Analyzing the historical performance of various cryptocurrencies allows investors to better understand their potential for growth, risk factors, and long-term viability. By using data-driven analysis, investors can make informed decisions, identify investment opportunities, and navigate the complex and often volatile world of cryptocurrencies.

Analysis of Market Trends and Patterns

Studying market trends and patterns can help investors anticipate potential shifts in the cryptocurrency market. By analyzing factors like market sentiment, news events, and trading volume, investors can identify trends that may signal a change in market direction or momentum.

For example, in December 2017, Bitcoin reached its peak at that time, at around $19,800, followed by a sharp decline in 2018. The decrease was fueled by several factors, including regulatory concerns, a series of high-profile hacks, and overall market sentiment. During this period, Bitcoin’s trading volume soared, reaching over $23 billion on January 5, 2018. These events and data points indicated a change in market direction, resulting in a prolonged bear market that lasted until early 2019.

Another significant market event occurred in March 2020, when the COVID-19 pandemic led to a global market crash, affecting both traditional and cryptocurrency markets. Bitcoin’s price plunged from approximately $9,000 to around $4,000 within days. 

However, this downturn was followed by a rapid recovery as governments implemented stimulus measures and institutional interest in cryptocurrencies surged. Bitcoin’s trading volume spiked, reaching over $69 billion on March 13, 2020, and its price began a sustained upward trend, eventually surpassing previous all-time highs in late 2020.

Additionally, investors can use data-driven tools, such as moving averages, to analyze market trends and identify potential shifts in momentum. For instance, the 50-day and 200-day moving averages are commonly used indicators to gauge market trends. When the 50-day moving average exceeds the 200-day moving average, it’s considered a “golden cross,” which typically signals a bullish trend. 

Conversely, when the 50-day moving average crosses below the 200-day moving average, it’s known as a “death cross,” indicating a bearish trend. In April 2020, Bitcoin experienced a golden cross, which preceded its historic bull run in 2020-2021.

By carefully examining market trends, patterns, and data-driven indicators, investors can make informed decisions and anticipate potential changes in the cryptocurrency market. Understanding these shifts enables investors to capitalize on opportunities and manage risks more effectively.

Importance of Diversification and Risk Management

Diversification and risk management are essential components of a successful cryptocurrency investment strategy. By spreading investments across multiple assets, investors can reduce their exposure to the risks associated with any single cryptocurrency. Additionally, risk management techniques, such as setting stop-loss orders and position sizing, can help protect an investment portfolio from significant losses.

Historical data supports the benefits of diversification in the cryptocurrency market. For instance, during the 2017-2018 crypto boom, many alternative cryptocurrencies (altcoins) experienced substantial gains alongside Bitcoin. Ethereum’s price increased from around $8 in January 2017 to over $1,400 in January 2018, while Ripple (XRP) experienced a price surge from $0.006 in January 2017 to $3.40 in January 2018. By diversifying investments across multiple cryptocurrencies, investors could have capitalized on these impressive gains and reduced their dependence on a single asset’s performance.

Additionally, the correlations between different cryptocurrencies can change over time. For example, in 2017, the correlation between Bitcoin and Ethereum was relatively high, at around 0.9. However, in 2021, the correlation decreased to approximately 0.5, suggesting the price movements of these two cryptocurrencies became less closely tied. Diversifying investments across cryptocurrencies with lower correlations can help mitigate risk, as it’s less likely that all assets will move in the same direction simultaneously.

Risk management techniques are equally critical in the volatile cryptocurrency world. For example, setting stop-loss orders can help investors limit their losses in a sudden market downturn. In December 2017, when Bitcoin’s price peaked and then declined sharply, investors who had set stop-loss orders could have minimized their losses by automatically selling their positions once a specific price threshold was reached. 

Similarly, proper position sizing, which involves allocating a percentage of the portfolio to each investment based on its risk level, can help manage portfolio risk. By investing smaller amounts in riskier assets, investors can limit potential losses while benefiting from potential gains.

The Power of Market Sentiment

The fascinating cryptocurrency world has always been influenced by the collective sentiment of investors, with opinions and emotions driving price fluctuations. By leveraging natural language processing (NLP), researchers have now found a way to decode the crypto mindset using popular social media platforms like Reddit.

In a recent study examining the past five years of Reddit data, researchers discovered a compelling connection between the sentiment expressed on the platform and the Bitcoin price. The positive correlation was strong, boasting a correlation coefficient of 0.85. Even more interesting is that this correlation reached an astonishing 0.91 during periods of high volatility, suggesting social media sentiment could play a crucial role in predicting Bitcoin price movements.

The Fear and Greed Index (FGI) is another valuable tool that sheds light on market sentiment. This innovative index measures the emotional state of the market on a scale from 0 to 100, with 0 symbolizing extreme fear and 100 representing excessive greed. Over the past half-decade, the average FGI score sat at 56.7, hinting at a predominantly positive sentiment toward Bitcoin. The study’s findings also revealed that when the FGI score exceeded 60, Bitcoin prices typically soared by an impressive 10.2% on average. Conversely, when the FGI score dipped below 40, prices fell by an average of 8.6%.

In essence, the combination of market sentiment and cryptocurrency analysis offers a powerful means for understanding and predicting market trends. The undeniable influence of social media on the crypto market, as evidenced by the strong correlation between Reddit sentiment and Bitcoin prices, is a testament to the importance of sentiment analysis. 

Best Practices for Cryptocurrency Investing

To maximize the chances of success in the cryptocurrency market, investors should consider adopting the following best practices:

Educate Yourself on the Technology and Market

Understanding the technology behind cryptocurrencies and the market dynamics is crucial for making informed decisions. Investors can better anticipate potential opportunities and challenges by staying up-to-date on industry news, developments, and trends. For example, learning about blockchain technology and consensus mechanisms can help investors identify promising projects and spot potential red flags, such as unrealistic claims or technological limitations.

Invest Only What You Can Afford to Lose

Given the volatility and inherent risks associated with cryptocurrency investing, investing only what you can afford to lose is crucial. In so doing, you’ll be more likely to make rational decisions and avoid succumbing to the emotional pressures that can come with significant financial stakes. For instance, instead of investing your entire life savings in a single cryptocurrency, allocate a smaller, manageable portion of your investment funds, ensuring that a potential loss won’t devastate your financial situation.

Diversify Your Portfolio

Diversification is a critical element of any successful investment strategy. By holding multiple cryptocurrencies, you can spread your risk across multiple assets, reducing the potential impact of a poor-performing investment or market downturn. For example, allocating portions of your portfolio to established cryptocurrencies like Bitcoin and Ethereum, as well as smaller, promising altcoins, can help balance risks and potential rewards.

Use Data and Analysis to Inform Your Decisions

Relying on data-driven analysis, rather than emotions or psychological biases, can lead to more informed and objective investment decisions. You can create a more robust investment strategy by leveraging historical performance data, market trends, and risk management techniques. For instance, analyzing a particular cryptocurrency’s price and trading volume patterns can help you identify entry and exit points and potential market trends that may influence future price movements.

Have a Long-Term Investment Strategy

Developing a long-term investment strategy can help you navigate the volatility and uncertainty of the cryptocurrency market. By focusing on your investments’ long-term potential rather than short-term fluctuations, you can cultivate a more disciplined and patient approach to cryptocurrency investing. For example, instead of trying to time the market and make quick profits through day trading, consider a “buy and hold” strategy prioritizing the long-term growth potential of your chosen cryptocurrencies. This approach can help you ride out market volatility and capitalize on the overall upward trajectory of the crypto market.

Recap of Key Points

  1. “Aping in” refers to impulsive investment behavior in crypto, leading to potential losses due to a lack of research and understanding of risks.

  2. Psychology plays a critical role in shaping investment decisions.

  3. Psychological factors influencing investor behavior include FOMO, loss aversion, confirmation bias, overconfidence, and herd mentality.

  4. Data-driven analysis helps mitigate psychological biases by examining historical performance, market trends, and patterns.

  5. Historical performance provides valuable insights:

a. Bitcoin’s price increased from less than $0.01 in 2010 to an all-time high of around $64,800 in April 2021.

b. Ethereum’s price rose from around $0.40 to an all-time high of approximately $4,360 in May 2021.

c. Ripple (XRP) and Litecoin (LTC) have experienced more modest growth, with all-time highs of around $3.40 (January 2018) and $360 (May 2021), respectively.

  1. Market trends and patterns analysis:

a. Bitcoin’s 2017 peak at $19,800, followed by a decline due to regulatory concerns and market sentiment.

b. COVID-19 pandemic in March 2020 led to a market crash, with Bitcoin’s price plunging from around $9,000 to $4,000, followed by a rapid recovery.

c. Moving averages, such as the 50-day and 200-day, help identify market trends and momentum shifts (e.g., golden cross and death cross).

  1. Diversification and risk management are essential components of a successful crypto investment strategy:

a. Spreading investments across multiple assets reduces risk exposure.

b. Risk management techniques, such as setting stop-loss orders and position sizing, can protect investment portfolios from significant losses.

  1. Best practices for cryptocurrency investing:

a. Educate yourself on technology and market trends to make informed decisions.

b. Invest only what you can afford to lose, avoiding emotional pressures from significant financial stakes.

c. Diversify your portfolio to balance risks and potential rewards.

d. Use the data-driven analysis for informed and objective investment decisions.

e. Adopt a long-term investment strategy to navigate market volatility and capitalize on the overall upward trajectory of the crypto market.

The psychology of cryptocurrency investing plays a significant role in the decision-making process, with factors such as FOMO, loss aversion, confirmation bias, overconfidence, and herd mentality influencing investor behavior. 

To counteract these psychological biases and improve the chances of success, it’s essential to rely on data-driven analysis, including examining the historical performance of cryptocurrencies, analyzing market trends and patterns, and emphasizing diversification and risk management.

In so doing, you’ll be better equipped to capitalize on the opportunities and mitigate the risks associated with this exciting and rapidly evolving market.

Stablecoins: Sustainability of Their Pegs

  • July 3, 2023

the growth of stablecoins

While cryptocurrencies have a viable monetary role as a medium of exchange, they are inherently too volatile to be used as a unit of account or a store of value. The unreliable nature of popular cryptocurrencies like bitcoin is the reason why cryptocurrency still hasn’t made its way to mainstream commerce. Crypto investors can become millionaires overnight and lose all their money weeks later.

This is where stablecoins come into play, allowing investors to enjoy the benefits of a cryptocurrency without the associated high volatility. 

Stablecoins are pegged at a 1:1 ratio to other assets, such as the U.S. dollar or gold, designed to have a value that is much more fixed than regular cryptocurrencies. As a result, stablecoin demand is surging, with the total market cap of stablecoins rising from US$0.02 billion in January 2017 to US$181.73 billion as of April 2022. 

Read on to learn everything you need to know about stablecoins, the benefits and limitations of investing in various types of stablecoins, and more.

S

Stablecoins
A stablecoin is a cryptocurrency collateralized by the value of an underlying asset, such as a fiat currency, precious metals like gold, or even other cryptocurrencies. Many stablecoins are pegged at a 1:1 ratio with certain fiat currencies, such as the U.S. dollar, which can be traded on exchanges.

What Are Stablecoins?

Stablecoins are designed to offer the benefits of both worlds—the security and privacy of instant payments of cryptocurrencies and the stability of fiat currencies.

A stablecoin is a cryptocurrency collateralized by the value of an underlying asset, such as a fiat currency, precious metals like gold, or even other cryptocurrencies. Many stablecoins are pegged at a 1:1 ratio with certain fiat currencies, such as the U.S. dollar, which can be traded on exchanges.

The underlying collateral of crypto-collateralized stablecoins is another cryptocurrency. Such stablecoins are over-collateralized—i.e., a larger number of cryptocurrencies are kept as a reserve for issuing a lower number of stablecoins due to the high volatility of the reserve cryptocurrency.

How Do Stablecoins Maintain Their Peg?

Stablecoins achieve price stability via collateralization or through algorithmic market modules.  

Collateralization

Collateralized stablecoins maintain a fiat currency reserve, like the U.S. dollar, as collateral to issue a suitable number of crypto coins. Other forms of collateral can include cryptocurrency, gold, or commodities like oil.

Such reserves are maintained and regularly audited by independent custodians and companies. Fiat-backed stablecoins are backed at a 1:1 ratio, so real fiat currency is held in a bank account to back up each stablecoin. If a person needs to redeem cash with stablecoins, the entity that manages the stablecoin will take out the amount of fiat from their reserve and send it to the person’s bank account. The equivalent stablecoins are then “burned” or permanently removed from circulation. 

For example, a stablecoin like USDC, fully backed by U.S. dollars and dollar-denominated assets at a 1:1 ratio, would maintain its peg by storing a dollar when one USDC is minted. If you initiate a transaction to buy one USD Coin using fiat currency, then that fiat currency is deposited and stored as one U.S. dollar, and the new USDC is minted. If you sell a USD Coin in exchange for fiat currency, then the USDC is “burned” when the fiat money is transferred back to your bank account. 

However, most stablecoins pegged to a fiat currency aren’t backed entirely by money. A stablecoin may also be partly backed by secured loans, corporate bonds, precious metals, and other investments. The idea is that their total value is equal to the total number of stablecoin units minted so far. For example, the bulk of Tether’s reserves is in cash, commercial paper, treasury bills, reverse repo notes, and fiduciary deposits. 

Other stablecoins, such as Terra (UST) or Dai, are backed by crypto locked in Maker vaults and employ algorithms for stability. 

Algorithmic Market Modules

An alternative model is using an algorithm and associated reserve token to peg a stablecoin to USD — instead of using cash reserves. Algorithmic stablecoins do not have any collateral by design – the collateral is its governance token that can be minted or burned to stabilize the price. 

For example, the Terra protocol is designed so that users can always swap the LUNA token for UST, and vice versa, at a guaranteed price of $1. If demand for UST rises and its price rises above $1, LUNA holders can swap $1 of LUNA to create one UST token.

During the swapping process, a percentage of LUNA is burned, and the remainder is deposited into a community treasury. Burning a percentage of LUNA tokens reduces the number of overall tokens left in circulation, making them more scarce and, therefore, more valuable. By minting more UST tokens, the overall price is brought back down to its $1 level.

If demand is low for UST and the price falls below $1, UST holders can exchange their UST tokens at a ratio of 1:1 for LUNA.

Other coins like Ampleforth (AMPL) employ a rebasing method when the software programmatically adjusts the supply of its AMPL cryptocurrency every 24 hours. If demand for AMPL tokens is high, and each AMPL token exceeds $1, the supply will increase. If demand is low, supply will decrease. 

Other tokens like BASED and RMPL aim to improve this mechanism. 

Threats to Stablecoin Pegs

 While stablecoins may appear to be low risk, they present some risks. The primary risk of stablecoins is if they aren’t fully backed by the reserve currencies. Risks include:

Reserve Risk

Reserves backing a stablecoin guarantee the value of a stablecoin and are essential for the stablecoin ecosystem. 

Counterparty Risk

For the currency to maintain its value, the bank holding the reserves and the organization issuing the stablecoin must be doing the right things (security, properly reserving, etc.).

Security

Like other cryptocurrencies, stablecoins must be held in a secure digital wallet since a trading platform may be prone to hacks.

Protocol Malfunctioning

Protocol malfunctioning is a great threat to stablecoins that rely on algorithmic market modules. If there are flaws or vulnerabilities in the code that handles minting and burning, a stablecoin can lose its peg. 

Additionally, a considerable portion of stablecoins is held in liquidity pools, and some Decentralized Finance (DeFi) protocols like Compound have tokens that track underlying assets (cTokens like cDai, cUSDC, etc.). If these DEX pools or the smart contracts governing cTokens are compromised, an attacker can mint large sums of unbacked tokens or steal from a pool and quickly dump them on the open market. As a result, the stablecoin’s supply will outweigh its reserves; the price swings will exacerbate selling pressure and break the peg. 

Summary

While stablecoins offer the best of both worlds, they come with risks associated with investing in them. Along with the risks mentioned above, some stablecoins, such as Neutrino (USDN), are losing their pegs and have recently dropped from the US$1.00 target to US$0.76. 

There’s also the case of Iron Finance, where a significant delay between the price feed oracle and real-time data rendered arbitraging unprofitable. As a result, the base token, TITAN, lost nearly all its value, and the associated IRON stable coin dropped to US$0.94. 

Each stablecoin comes with its unique advantages and drawbacks and uses diverse collateral methods to achieve price stability, so make sure to check the issuer’s reserve reports and the implemented audits before investing in them. 

Top 5 AI Crypto Trading Bots to Maximize Your Profits

  • July 1, 2023

The cryptocurrency market has experienced rapid growth, attracting a diverse range of traders and investors. In this dynamic landscape, Artificial Intelligence (AI) trading bots have gained significant popularity.

An AI crypto trading bot uses Artificial Intelligence algorithms to analyze market data, employ specific trading strategies, and execute trades based on market conditions on behalf of the user. Cryptocurrency trading bots offer myriad benefits for crypto trading, enhancing the trading efficiency and profitability of crypto traders and empowering them to navigate the market with precision and confidence.

This article explores the advantages of using AI trading bots for profitable trades and reviews the five best AI crypto trading bots for July 2023.

Let’s get right to it!

What Are AI Crypto Trading Bots?

AI-powered crypto bots can monitor and execute trades across multiple crypto exchanges, enabling crypto investors and professional traders to diversify their portfolios, maximize profits, and manage risks.

These automated trading bots utilize the power of Artificial Intelligence and advanced trading algorithms to automate trading processes, making them more efficient and profitable. By continuously learning from new data and adapting their strategies, these bots can uncover hidden patterns and execute trades with precision.

AI crypto trading bots analyze and interpret vast market data, including real-time price and volume information, and scan several digital currency markets. They identify trends, patterns, and trading signals, providing traders access to a wide range of information to help them make trading decisions.

The ability of AI crypto trading bots to process and analyze large amounts of data in real-time gives them a significant advantage over manual trading. AI-powered trading bots can quickly spot emerging opportunities or potential risks, enabling traders to capitalize on favorable market conditions and mitigate potential losses. Bot trading automates the trading process and eliminates the emotional biases and human errors that often impact decision-making.

The Best AI Crypto Trading Bots

  1. Stoic.AI

  2. BotCrypto

  3. Shrimpy

  4. CryptoHopper

  5. Kryll

1. Stoic.AI

  • Utilizes AI and machine learning algorithms to analyze market data and make data-driven trading decisions

  • Offers a user-friendly interface with easy setup and configuration

  • Provides a range of trading strategies and customizable options

  • Offers backtesting capabilities to assess the performance of trading strategies

Advantages

  • Designed for both beginner traders and experienced traders

  • Offers diversified portfolio management

  • Provides seamless integration with multiple exchanges

  • Notable Achievements: Stoic.AI has consistently delivered competitive returns and demonstrated robust performance in various market conditions.

Pricing: Stoic.AI offers a subscription-based pricing model with different plans based on the user’s trading capital. The pricing details can be found on their official website.

Compatibility with Portfolio Tracking Service: Stoic.AI integrates with various portfolio tracking services, allowing users to sync their crypto holdings and monitor their portfolio performance effectively.

2. BotCrypto

  • Utilizes AI and deep learning algorithms for market analysis and trade execution

  • Offers a user-friendly interface with customizable trading strategies

  • Provides real-time alerts and notifications for trading opportunities

  • Supports multiple cryptocurrency exchanges for seamless trading

Advantages

  • Offers advanced a wide range of trading tools, including stop-loss and take-profit orders

  • Provides detailed performance reports and analytics

  • Offers backtesting capabilities for strategy evaluation

  • BotCrypto has gained recognition for its accurate market analysis and consistent profitability in various market conditions.

Pricing: BotCrypto offers different pricing plans with varying features and trading limits.

3. Shrimpy

  • Utilizes AI and machine learning to optimize portfolio allocations and rebalancing

  • Offers a unified dashboard for managing multiple cryptocurrency exchanges and wallets

  • Social trading features, allowing users to follow and replicate successful traders

  • Supports both manual and automated trading strategies

Advantages

  • Offers portfolio automation and rebalancing for risk management

  • Provides a range of customizable portfolio management strategies

  • Supports a wide range of cryptocurrencies and exchanges

  • Notable Achievements: Shrimpy has received positive reviews for its user-friendly interface, portfolio management features, and successful social trading functionality.

Pricing: Shrimpy offers different pricing plans with varying features and trading limits. The pricing details can be found on their official website.

4. CryptoHopper

  • Utilizes AI and machine learning algorithms for market analysis and trade execution

  • Offers a user-friendly interface with customizable trading strategies and indicators

  • Provides backtesting capabilities to evaluate trading strategies

  • Supports automated trading on multiple cryptocurrency exchanges

Advantages

  • Offers a wide range of technical indicators and signalers for advanced trading strategies, including copy trading and trading with AI crypto bots

  • Provides extensive community support and social trading features

  • Offers a mobile app for convenient trading on the go

  • CryptoHopper has gained popularity for its extensive range of features, user-friendly interface, and successful trading performance.

5. Kryll

  • Utilizes AI and machine learning algorithms for strategy creation and trade execution

  • Offers a visual strategy editor for creating customized trading strategies

  • Provides backtesting and simulation capabilities for strategy evaluation

  • Supports multiple cryptocurrency exchanges for automated trading

Advantages

  • Offers a thriving community marketplace for sharing and purchasing trading strategies

  • Provides real-time performance monitoring and detailed analytics

  • Offers mobile apps for trading on the go

  • Kryll has gained recognition for its user-friendly interface, extensive strategy marketplace, and successful trading results.

Overview of AI Trading Bots

AI crypto trading bots, also known as automated trading systems, are computer programs that utilize Artificial Intelligence and machine learning algorithms to execute trades in the cryptocurrency market. These bots are designed to analyze vast market data and identify patterns to help crypto investors make informed trading decisions.

AI trading bots can track various indicators, such as price movements, volume, and market sentiment, to identify potential trading opportunities or signals. By continuously monitoring the market, these bots aim to capitalize on favorable conditions and execute trades with speed and precision.

The working mechanism of AI trading bots can be summarized in the following steps:

Data Gathering: AI trading bots collect vast amounts of data from various sources, including cryptocurrency exchanges, financial news platforms, social media, and other relevant sources. This data includes price feeds, historical market data, news articles, and social sentiment.

Data Analysis: Once the data is collected, AI trading bots utilize advanced algorithms and machine learning models to analyze and interpret the information. They identify patterns, trends, and anomalies indicating potential trading opportunities or risks.

Strategy Formulation: The AI trading bot formulates a trading strategy based on predefined rules and strategies set by the user or through machine learning models learned from historical data. This strategy can include parameters such as entry and exit points, stop-loss levels, take-profit targets, and risk management rules.

Execution: When the predefined conditions are met, the AI trading bot automatically executes trades on behalf of the user. It sends buy or sell orders to the connected cryptocurrency exchange, considering the specified parameters and the current market conditions.

Monitoring and Adjustment: AI trading bots continuously monitor executed trades and market conditions. Based on changing market dynamics, they can adjust trading strategies in real-time, ensuring that the bot adapts to new trends and market movements.

Benefits of Using AI Trading Bots for Crypto Trading

Using an AI trading bot can help both seasoned traders and novices automate crypto trading and efficiently manage their portfolios. AI trading bots learn from new data and adjust their trading strategies accordingly, unlike regular trading bots limited to the rules set by human traders.

Here are some of the benefits of crypto trading using a crypto bot.

Enhanced Decision-Making: AI trading bots utilize advanced algorithms and machine learning techniques to analyze vast amounts of real-time data. These bots make data-driven decisions by processing market trends, historical patterns, and indicators, reducing the impact of human emotions and biases. This empowers traders to execute precise and timely trades, maximizing profit potential.

Increased Efficiency: The crypto market operates 24/7, and monitoring it constantly can be challenging for human traders. AI trading bots excel in round-the-clock monitoring and can instantly react to market movements, execute trades, and manage portfolios. This eliminates the need for manual oversight, allowing traders to capitalize on profitable opportunities even while they sleep.

Rapid Execution: Speed is crucial in the fast-paced crypto market, where prices can change within seconds. AI trading bots can execute trades with exceptional speed, ensuring minimal lag time between market movements and order placement. This advantage is especially critical in volatile market conditions, where split-second decisions can make a significant difference.

Risk Management: AI trading bots are equipped with sophisticated risk management features. They can automatically set stop-loss orders, trailing stops, and other risk mitigation measures to protect trading capital. Additionally, these bots can analyze market conditions and adjust trading strategies accordingly, optimizing risk-reward ratios.

Diversification and Portfolio Tracking: Some AI trading bots offer portfolio tracking functionalities, allowing users to manage multiple cryptocurrencies and exchanges from a single platform. These bots can provide real-time insights into portfolio performance, asset allocation, and historical data analysis. Such comprehensive monitoring capabilities enable traders to make informed decisions and diversify their crypto holdings effectively.

Conclusion

In the dynamic world of cryptocurrency trading, staying ahead of the game is crucial to maximizing profits and minimizing risks. With the advent of Artificial Intelligence (AI) technology, crypto traders now have a powerful tool at their disposal – AI crypto trading bots leveraging advanced algorithms and machine learning to analyze vast amounts of data, execute trades, and optimize trading strategies.

Using one of the best trading bots in the market, you’ll gain a competitive edge by quickly responding to market changes and exploiting profitable opportunities.

Disclaimer: All information provided in or through the CoinStats Website is for informational and educational purposes only. It does not constitute a recommendation to enter into a particular transaction or investment strategy and should not be relied upon in making an investment decision. Any investment decision made by you is entirely at your own risk. In no event shall CoinStats be liable for any incurred losses. See our Disclaimer and Editorial Guidelines to learn more.

What Are BRC-20 Tokens

  • June 7, 2023

What are BRC-20 Tokens

In the fast-paced cryptocurrency world, technological advancements and upgrades occur at an astonishing rate. Staying informed about these developments can be both intimidating and imperative, as you wouldn’t want to overlook the next big thing in crypto. The blockchain industry has expanded significantly, transitioning from relying solely on the Bitcoin blockchain to comprising numerous blockchains such as Ethereum, Binance Smart Chain, Solana, and many others.

These networks have given rise to numerous protocols and token standards, each offering unique functionalities. BRC-20 tokens are the latest tokens and token standard to make headway in the crypto world. So, as an investor looking for the next big opportunity, understanding BRC-20 tokens holds great significance.

This article covers everything you need to know about the BRC-20 token standard and provides a quick buying guide to help you get started.

What Is the BRC-20 Token Standard?

The BRC-20 token standard was developed as an experimental fungible token standard by the crypto enthusiast Domo in March 2023. It aims to facilitate the creation and transfer of tokens using the ordinals protocol on the Bitcoin blockchain.

Unlike the tokens built on the ERC-20 standard on the Ethereum network, the BRC-20 tokens don’t rely on smart contracts. Instead, BRC 20 tokens rely on the Bitcoin ordinals inscriptions initially implemented on the Bitcoin blockchain in January 2023 by software engineer Casey Rodarmor. 

The Bitcoin ordinals work on the basis of JavaScript Object Notation (JSON), enabling the inclusion of code, data, images, etc., on Satoshi tokens. Satoshi is a unit of BTC, where 100 million satoshis are equal to 1 BTC. BRC-20 tokens are fungible tokens used for minting and transferring tokens exclusively. In contrast, the ERC-20 token standard creates tokens with smart contract functionality such as governance, etc.

The JSON data inscribed on Satoshis is used to program them, imbuing them with non-fungible qualities similar to NFTs (Non-Fungible Tokens). However, despite possessing NFT-like characteristics, Satoshis remain fungible, meaning they are interchangeable and hold equivalent value. Some popular BRC-20 tokens comprise PEPE, ORDI, WOJAK, etc.

BRC-20 (Bitcoin Ordinals) vs. Other Token Standards

The BRC-20 token standard derives its name primarily from the ERC-20 token standard on the Ethereum network. However, BRC-20 tokens differ significantly from other token standards, with the ERC-20 token standard being the most popular among them.

To create tokens on the Ethereum network, smart contracts must be written and deployed on the network. In contrast, to create BRC-20 tokens on the Bitcoin network, the ordinals protocol is used to inscribe Satoshis using JSON. BRC-20 tokens run parallel to BTC on the Bitcoin base chain, meaning any activity on BRC-20 tokens won’t affect Bitcoin. On the other hand, ERC-20 tokens and other token standards operate in conjunction with their parent networks, and any activity on them is directly reflected in their parent network.

Another major factor distinguishing BRC-20 tokens from tokens issued by other standards, such as ERC-20, BEP-20, etc., is their community-oriented distribution. The Bitcoin community and any other individual can mint BRC-20 tokens, although there are restrictions on the number of tokens a wallet can mint. This decentralized approach to token distribution and minting sets BRC-20 tokens apart. In contrast, with other token standards, the token supply, minting, distribution, etc., can be controlled by a single entity, thereby undermining the decentralized nature of the tokens.

https://twitter.com/CoinStats/status/1655965927974772737

What Are BRC-20 Tokens?

The smallest unit of Bitcoin is Satoshi, and as mentioned earlier, 100 million Satoshis make one BTC. On the Bitcoin blockchain, each Satoshi is assigned a unique ordinal number in the order of its issuance. This numbering system of Satoshis is known as ordinals. Initially, these ordinals only served as numerical identifiers, but after the Bitcoin Taproot upgrade in 2021, the ordinals protocol could be used to attach more data with Satoshis. This gave rise to Bitcoin Ordinal NFTs and BRC-20 tokens, with ORDI being the first BRC-20 token minted.

How Are BRC-20 Tokens Created?

Using Javascript Object Notation (JSON), it’s possible to deploy even executable code on the Bitcoin protocol. In the case of the experimental BRC-20 token standard, JSON inscriptions are employed to define various attributes of a token, such as its supply, minting rules, identity, and more. Once the JSON inscriptions are used to deploy token contracts on the Bitcoin blockchain, anyone with an ordinal wallet can mint BRC-20 tokens.

BRC-20 Tokens Use Cases

While the BRC-20 token standard is still in its nascent stage, it has several prominent use cases. Below are some of its use cases:

Trading

The price of Bitcoin has already reached unprecedented levels, and there is little to no room to make degen plays. Multiple BRC-20 tokens, such as PEPE and WOJAK, are listed on major cryptocurrency exchanges, enabling people to trade in them.

Peer-to-Peer Transfers

Similar to other crypto assets, BRC-20 tokens can be used to make peer-to-peer (P2P) transactions. They are also a form of digital assets that can be spent among peers and community members. Since BRC-20 tokens operate on the Bitcoin network, they benefit from the efficiency and security features associated with the network. It’s worth noting that the transaction fees must be paid in BTC when you transfer tokens.

Decentralized Finance and Other Financial Products

DeFi protocols have grown by leaps and bounds since the DeFi Summer in 2019. This was primarily driven by the expansion of the Ethereum network and other Ethereum Virtual Machine (EVM)-compatible chains. The Bitcoin network was not prominently involved in the DeFi ecosystem or other financial products like yield farming and liquidity pools until recently. With the introduction of the BRC-20 token standard, which enables the creation and integration of tokens on the Bitcoin network, there has been a shift. Unlike Bitcoin, BRC-20 tokens can now be integrated into decentralized exchanges, lending protocols, yield farming platforms, and other DeFi applications.

How to Buy BRC-20 Tokens?

Some popular BRC-20 tokens and even their derivatives contracts can be purchased easily through centralized exchanges. To buy or mint a new BRC-20 token, follow the steps given below.

  • Visit www.ordinalswallet.com to create an ordinal wallet. Ensure to save the seed phrase securely.

  • Send BTC from a centralized exchange to your wallet to pay the transaction fees.

  • Click BRC-20 to see the list of BRC-20 tokens.

  • Select the token you wish to buy and choose the best sale price available. Click “Buy Now,” and the token should be reflected in your wallet.

Conclusion

BRC-20 tokens hold significant potential for the Bitcoin protocol, representing a notable technological advancement within the ecosystem. By addressing previous limitations of the Bitcoin protocol, BRC-20 tokens open up possibilities for various use cases and have the potential to drive new developments in decentralized finance (DeFi) and blockchain interoperability.

However, it’s essential for users to approach investments in BRC-20 tokens with caution, as with any investment in the cryptocurrency space. Given the nascent stage of development and the evolving nature of BRC-20 tokens, it’s crucial to conduct thorough research, assess the associated risks, and exercise prudence when participating in BRC-20 token-related activities.

FAQs

1. What are BRC-20 tokens? BRC-20 tokens are built on the Bitcoin Network using the ordinals protocol.

2. How do you buy BRC-20 tokens? Some popular BRC-20 tokens, such as PEPE, can be bought on centralized exchanges, while others – through www.ordinalswallet.com.

3. How are BRC-20 tokens created? These tokens are created using JavaScript Object Notion to make ordinal inscriptions on Satoshis, thereby creating tokens with equal value.

4. What’s the difference between BRC-20 and ERC-20 tokens? The ERC-20 tokens are built on the Ethereum network and follow the ERC-20 token standard deployed using smart contracts. On the other hand, BRC-20 tokens are built on the Bitcoin blockchain and follow the BRC-20 token standard without the need for smart contracts.

Chainlink Price Prediction 2023, 2025 – 2030

  • May 30, 2023

Chainlink-(LINK)-Price-Prediction-2023,-2025---2030

Price prediction plays a crucial role in the crypto market, serving as a valuable tool for investors. Understanding and accurately forecasting price actions is essential for making informed investment decisions and maximizing profitability.

Price prediction models and analysis provide insights into market trends, potential opportunities, and potential risks. Investors can identify patterns and trends by studying historical data, technical indicators, and fundamental factors to help them anticipate future price movements.

Additionally, price predictions help set realistic expectations, manage risk, and implement effective trading strategies. While no prediction can be entirely accurate, analyzing and predicting prices allows market participants to stay informed, adapt to changing market conditions, and make informed decisions based on data-driven insights.

This article will explore Chainlink (LINK) price predictions, examine the factors influencing its price movements, and discuss Chainlink price predictions by experts.

So is Chainlink (LINK) a profitable investment in 2023?

Read on to discover valuable expert Chainlink price predictions and opinions on its future price action to unlock the potential of your cryptocurrency investments and ensure profitable returns.

What Is Chainlink (Link)?

Chainlink operates as a decentralized oracle network, enabling public blockchains and smart contract platforms to incorporate external data sources into their on-chain processes. Chainlink aims to overcome the Oracle problem, which involves securely integrating off-chain data with on-chain data while minimizing reliance on third-party intermediaries. Essentially, Chainlink offers a crucial solution by facilitating the availability of real-world data on the blockchain, such as market statistics, event outcomes, and weather conditions, without being solely dependent on centralized data providers. The network’s native token, LINK, compensates the network’s node operators or oracles for providing trustworthy data feeds.

Chainlink network revolutionizes the way smart contracts interact with real-world data. By leveraging oracles, Chainlink enables smart contracts to securely access reliable off-blockchain data from various external sources, including APIs and data feeds. This groundbreaking technology takes smart contracts to new heights, empowering them to incorporate real-world information such as currency exchange rates, weather updates, event outcomes, payments, and more while maintaining the security and reliability inherent in blockchain technology. This opens up a world of possibilities, allowing blockchain to integrate with the global ecosystem in diverse ways. For instance, insurance rates can be determined based on weather data, supply chain tracking can utilize location information, decentralized sports betting can settle outcomes based on sporting events, and prediction markets can use political events.

Chainlink’s decentralized oracle solution is a game-changer, bridging the gap between blockchain and the real world for a multitude of applications and industries.

While Chainlink is well-positioned to meet the demand for reliable and secure data feeds, it still faces challenges and limitations to be addressed. The biggest challenges of Chainlink are the complexity of integrating Chainlink into existing systems and the risk of Oracle attacks.

Remarkable Milestones Influencing the Chainlink Price

Chainlink has achieved significant milestones throughout its journey.

In September 2017, Chainlink conducted an initial coin offering (ICO) on the Ethereum blockchain and raised $32 million by selling 35% of the total 1 billion token supply.

30% of the remaining tokens were allocated for developing the Chainlink blockchain, and 35% was distributed among node operators. 

In May 2019, the Chainlink mainnet was launched, enabling developers to deploy their own decentralized oracle networks.

On September 28, 2022, the network unveiled SCALE, a Chainlink Economics 2.0 program designed to expedite the sustainable growth of the blockchain and Layer 2 ecosystems. Another noteworthy milestone occurred on December 6, 2022, with the launch of Chainlink Staking v0.1 early access, allowing users to participate in staking activities.

On March 1, 2023, Chainlink introduced Chainlink Functions, a cutting-edge serverless developer platform facilitating seamless integration between smart contracts and Web 2 APIs and enabling customized computations on Chainlink’s highly secure and reliable network. This significant achievement was released in beta form, offering developers an exciting glimpse into the platform’s future potential.

Factors Influencing Chainlink’s Price

Multiple factors can influence the price of Chainlink, including project updates and developments, market sentiment and emerging trends in the wider cryptocurrency and global economies, partnerships and integrations, supply and demand, and more.

While the Chainlink token undoubtedly holds potential for further growth, market volatility and instability in the broader crypto markets can lead to sudden price drops or unexpected price surges. As with any investment, thorough research and market analysis should be conducted before making Chainlink price prediction.

Proponents of the LINK token firmly believe in its potential for long-term growth and its various use cases within the Chainlink Network. They believe these factors will contribute to an upward trajectory in LINK’s price over time. Additionally, staking Chainlink tokens enables investors to earn rewards in other cryptocurrencies, providing diversification and potential additional income. Supporters contend that although staking requires holding tokens for an extended period, the historical profitability of long-term investments outweighs the risks associated with short-term speculation.

Market Sentiment and Trends

In 2021, Chainlink experienced an astounding surge in value, surpassing a remarkable 1000% increase. This surge was primarily driven by the growing demand from institutional investors, solidifying its position as one of the top-performing cryptocurrencies in the market.

The past months have been a turbulent ride for the crypto industry, and the LINK coin exemplifies the market’s extreme volatility.

However, amidst the tumultuous period experienced by the crypto market in the past year, 2023 has brought renewed optimism with bullish price action. The entire cryptocurrency market has started recovering, including Chainlink’s price.

According to many experts’ LINK prediction relying on the analysis of the market sentiment and trends and their impact on the LINK token price, if the overall condition of the cryptocurrency market remains favorable, LINK could potentially reach its maximum price in the coming years. This argument is based on the observation that Chainlink’s token price started to rally shortly after Bitcoin surpassed the $20k mark in late 2020. Also, significant news, events, and future positive developments can potentially trigger another bullish rally for LINK.

On the other hand, skeptics view LINK token primarily as a speculative asset, leading to price volatility. They highlight the limited information available regarding Chainlink’s system features and future platform plans, making accurate price forecast challenging. Some experts note that despite the technical effectiveness of most blockchain networks, low transaction volumes and adoption rates can hinder token prices in the long term. They believe LINK’s success in the upcoming year will ultimately be determined by the market trends within the broader crypto market.

Regardless of the differing viewpoints on whether LINK will reach new all-time highs in 2023, it’s evident that Chainlink and its native LINK token continue to gain popularity within the crypto community.

Technology and Adoption

Chainlink has created a crucial middleware infrastructure to provide information to and from blockchains without sacrificing decentralization or security.

It has refined its staking mechanism and released innovative features and services, such as Verifiable Random Functions (VRFs), Off-chain Reporting (OCF), Keepers, and its new Cross-Chain Interoperability Protocol (CCIP), featuring a cross-chain message relaying service, and a cross-chain token bridge.

Chainlink is a highly valuable blockchain offering a wide range of applications. It empowers blockchains to integrate external data, enabling smart contracts to interact with the real world and vice versa. Chainlink facilitates seamless communication between blockchain technology and real-world data sources by allowing inputs and outputs in smart contracts.

With a substantial user base spanning from small businesses to large financial institutions, Chainlink is a trusted network for incorporating the benefits of blockchain into various business practices. The platform enhances data collection processes and enables more accurate extrapolation of the gathered data through its integration with smart contracts. This improved data utilization contributes to more informed decision-making and enhanced efficiency for Chainlink network users.

Chainlink has been used in various sectors across multiple industries. Here are some Chainlink use cases:

  • Decentralized Finance (DeFi): In the DeFi ecosystem, Chainlink provides reliable price feeds to decentralized exchanges, lending protocols, and other financial applications. Chainlink’s oracles are utilized by DeFi applications to determine asset prices, access interest rates, verify collateralization, and more.

  • Insurance: In the insurance sector, Chainlink has found applications in automating the claims process through smart contracts. It enables the insurance industry to move from a manual, trust-based system to a more automated, trust-minimized system. Some companies that have successfully integrated Chainlink for insurance include Etherisc and Arbol.

  • Traditional Systems: Chainlink bridges traditional systems, such as data providers, Internet of Things (IoT) networks, websites, and businesses, with blockchain networks. By serving as integration gateways, Chainlink’s oracles enable seamless connectivity between existing digital and data infrastructure and any blockchain network.

  • Supply Chain Management: Chainlink enhances transparency and traceability of goods and services and provides real-time tracking capabilities for shipments and deliveries. This integration has empowered companies like IBM and Intel to lower costs, enhance operational efficiency, and enhance customer satisfaction.

  • Real Estate: Chainlink delivers real-time data feeds on property valuations, rental prices, and market trends. This integration has empowered companies such as Propy and Realio to enhance their real estate operations due to accessing accurate and up-to-date information.

  • Gaming: Chainlink allows programmers to create blockchain-based games that incorporate real-world events. Chainlink’s On-Chain Verifiable Randomness (VRF) solution plays a crucial role by generating verifiable and unbiased randomness, ensuring that players, game developers, or external parties cannot manipulate the outcome to their advantage.

Partnerships and Integrations

Chainlink has been rapidly expanding its ecosystem of partnerships and integrations with a wide range of companies and organizations, ranging from blockchain startups to traditional enterprises. Here are some of Chainlink’s notable integrations:

  • Blockchain platforms: Chainlink has partnered with Ethereum, Polkadot, and Binance Smart Chain, enabling developers to integrate Chainlink oracles into their decentralized applications (DApps), providing secure and reliable data feeds.

  • DeFi platforms: Chainlink has partnered with Aave, Synthetix, Compound, Kyber Network, Graph Protocol, and Frax Finance to provide real-time price feeds, enabling developers to create innovative financial products.

  • Traditional enterprises: Chainlink has partnered with SWIFT, Google Cloud, and Hedera Hashgraph to provide secure and reliable data feeds, enabling them to automate major DeFi projects like Kyber Network, AVA, Graph Protocol, and Synthetix.

  • Chainlink has partnered with several gaming companies, including Ubisoft and Nifty Gateway.

With increasing interest from companies and organizations looking to integrate Chainlink’s Oracle network into their blockchain applications, its future growth prospects are promising. As blockchain technology becomes more mainstream, the demand for reliable and secure data feeds is expected to rise. Chainlink is well-positioned to meet this growing demand, given its reputation as a trusted provider of Oracle services. Its established position in the market and track record of delivering accurate and secure data make it a compelling choice for businesses seeking to leverage blockchain technology. As a result, Chainlink is poised to experience further expansion, positively impacting the future Chainlink price.

Competitor Analysis

Since its launch in 2019, Chainlink has experienced remarkable growth and emerged as the dominant force and industry standard in decentralized oracle networks. It’s recognized as the leading blockchain Oracle in the market, with a market capitalization surpassing $1 billion and a circulation supply of 517,099,970 LINK coins. It has been at the forefront of revolutionizing data integration in the blockchain space.

Notably, Chainlink has played a crucial role in securing over $65 billion in Total Value Secured (TVS) within DeFi applications and safeguarding more than 51% of the value secured across all oracles in the DeFi space. This achievement is further bolstered by the operation of over 1000+ Chainlink price feeds across various blockchain networks, ensuring reliable and accurate data for DeFi applications and beyond.

Chainlink has the inherent capability to expand smart contracts, allowing data accessibility for events and transactions. One of the key strengths of Chainlink lies in its high security and interoperability across multiple platforms. The combination of its advanced features, such as the Chainlink Verified Random Function (VRF) and Chainlink Automation, has gained Chainlink a reputation as a trusted and innovative blockchain oracle solution.

Chainlink’s key competitors in the decentralized oracle space include Cardano (ADA), Band Protocol, Tellor, API3, Augur, Witnet, Provable (formerly Oraclize), Kylin Network, and the new emerging project RenQ Finance (RENQ). These competitors provide decentralized oracle solutions bringing reliable and tamper-proof data into blockchain platforms, augmenting the functionality of smart contracts, and establishing a robust network for secure data transfer.

However, Chainlink has demonstrated its superiority in the oracle market, boasting a market cap approximately 20 times larger than its closest competitor at the 2021 bull market peak. The extensive market recognition and trust garnered by Chainlink have solidified its position as the go-to oracle solution, further enhancing its defensibility against competitors. With a strong foundation and a proven track record, Chainlink continues to maintain its dominance in the Oracle space.

As the cryptocurrency and blockchain sectors evolve, Chainlink and its rivals actively pursue innovation and growth, consistently refining and expanding their offerings to maintain a competitive edge in this dynamic landscape.

Expert Opinions and Chainlink Price Predictions

At the time of writing, Chainlink’s current price is $7.06. LINK began trading at $5.57 in 2023, with a gradual rise in the price until today. On a weekly basis, the Chainlink cost was corrected by 1.19%. After the turmoil in the crypto market last year, 2023 has given great hopes with bullish price action.

LINK tokens reached an all-time high (ATH) of $52.88 on May 10, 2021, but since then, Chainlink has encountered resistance and faced price declines. Despite this, predictions based on the Chainlink price history indicate that Chainlink will eventually strive to reach its ATH again.

The Cryptonewsz Chainlink price forecast for 2023 ranges between $6.51 and $15.82. By 2025, the prediction suggests that Chainlink could reach the $20 mark, with a projected trading range between $14.66 and $22.39. Looking further ahead, the 2030 price prediction for Chainlink indicates an average trading price of around $60, with a minimum price estimate of approximately $47.78 and a maximum price estimate of about $72.98.

According to Wallet Investor’s prediction algorithm, Chainlink (LINK) may not be a suitable investment in the long term, with a continuation of the downward trend with strong bearish signals. The algorithm forecasts that the coin’s value could decrease to $0.916 in 2023.

GOV Capital’s Chainlink price analysis suggests that by 2027, the price of Chainlink could reach around $146.

Crypto Predictions also align with Wallet Investor’s forecast, expecting the price of Chainlink to reach a maximum of $11 by 2025 potentially.

Digitalcoinprice predicts the price of Chainlink (LINK) to reach a high of $15.80 by 2023 and $26.03 by 2025. The positive trend in the price of LINK is expected to continue over the next few years, with an average trading price of $139.61 and the maximum price of $140.33 by 2032. This optimistic outlook makes Chainlink a potentially profitable investment for investors looking for a long-term opportunity.

Changelly’s Chainlink forecast offers a more optimistic projection, suggesting a maximum price of around $23 by 2025 and a maximum price level of $143.85 by 2030.

Technewleader Chainlink price prediction 2023 suggests it’ll peak at $10.77 by the end of the year. It anticipates a price range of $13.71 to $16.27 for 2024. By 2025, the team forecasts a range of minimum and maximum prices of $19.38. and $24.12. The upward trend will continue from 2027 to 2032, with the highest LINK price reaching $329.02.

Ambcrypto’s LINK price forecast suggests Chainlink should range between $31.51 to $47.26, and the average price of LINK should be around $39.38 in 2030.

Moneymade’s Chainlink price prediction is that LINK will keep trending upward overall.

Remember that price predictions in the cryptocurrency market can vary significantly and should be taken as speculative estimates rather than guaranteed outcomes. The crypto market is highly volatile, and various factors can influence the LINK price forecast, including market trends, investor sentiment, regulatory developments, and technological advancements.

Chainlink Technical Analysis

When considering Chainlink’s technical analysis, it’s important to note that the entire crypto ecosystem has experienced a downward trend and a bear market.

Current Chainlink price ranges from $5.64 to $6.68, with these levels serving as key support and resistance levels. The first significant resistance level for LINK is at $6.68, and if the price manages to break above this level, the following resistance levels will be $7.74 and $8.50.

As of May 23, 2023, the market has seen increased buying pressure, which could push LINK/USD above its current resistance level. If that happens, experts expect further bullish momentum and an increase in the LINK price. On the other hand, if the bulls fail to defend this resistance level, experts predict a decline in the prices as bears take control of the market. In that case, $6.68 will act as support for LINK/USD.

More Crypto Online notes that if LINK breaks below the resistance around the $7.88 level, it could signal a bearish trend with a potential target of $7.23. An alternative bullish scenario is LINK breaking out of the range if it surpasses $9.50. Key levels, such as $6.19 and $5.30, should be monitored for potential breakdowns and $9.50 for potential upside movements.

According to CoinLore, from a total of 17 technical indicators, 0 calls to buy, and 13 to sell, the prediction sentiment short-term is bearish based on technical price analysis.

On the daily chart, exponential moving averages show a bearish signal. Chainlink price currently sits below all exponential moving averages.

Chainlink’s price analysis suggests a bullish trend, and the price could continue to rise as buyers remain strong. The technical indicators, such as RSI, MA, and Bolinger Bands, all indicate a bullish trend.

There were four bull runs that Chainlink had, first ATH was in January 2018, and Chainlink reached $1.44 soon after only 170.96 days later price dropped to its lowest point at $0.1755740 before the next bull run since January 2018 approx 1 year was needed to reach a new all-time high. The last bull run was in May 2021.

Price Prediction’s Chainlink forecast price and technical analysis suggest that in 2030 the LINK price is expected to cross an average price level of $121.90; the expected minimum price value of Chainlink by the end of 2030 should be $118.54. Moreover, LINK can reach a maximum price level of $143.85.

Here is the Yearly Chainlink Price Prediction from 2023-2030 suggested by Cryptonewsz:

YEARMINIMUM PRICE MAXIMUM PRICE
2023$6.51$15.82
2024$12.33$18.83
2025$14.66$22.39
2026$16.88$25.78
2027$20.88$31.90
2028$26.16$39.96
2029$33.33$50.92
2030$47.78$72.98

Should You Buy Chainlink?

Investing in Chainlink presents multiple opportunities for investors bullish on the future of blockchain technology and the project’s significance in the crypto landscape. Chainlink has effectively established a robust network of reliable data providers, securing the network’s long-term growth and sustainability.

With the increasing global adoption of blockchain technology and smart contracts, the demand for reliable and accurate off-chain data will only rise.

Currently, Chainlink’s price analysis is looking bullish. As long as the bulls defend the resistance level, most experts expect LINK/USD to continue its upward movement

The market will likely experience continued volatility in the upcoming sessions, leading to a battle between bullish and bearish sentiments. This tug-of-war between buyers and sellers will shape the price movements and overall market sentiment.

Ultimately, the decision to buy LINK or any other asset ultimately depends on your individual risk tolerance. Investing in cryptocurrencies can be volatile and carry certain risks. It’s crucial to assess your own risk tolerance, financial goals, and investment strategy before making any investment decisions.

Regardless of your risk tolerance, it’s always advisable to diversify your investment portfolio and seek professional financial advice when necessary.

Conclusion

Chainlink has emerged as a leader in the blockchain industry, providing secure and reliable data feeds for smart contracts. Its extensive network of partnerships and diverse range of applications demonstrate its significant impact in connecting blockchain technology with real-world data.

As the world continues to adopt blockchain technology and smart contracts, the demand for off-chain data will only rise, and Chainlink’s inventive approach to data provision positions it as a key player in the future of blockchain-based applications.

However, traders and investors should be prepared for potential fluctuations and closely monitor market conditions to make informed decisions.

Disclaimer: All information provided in or through the CoinStats Website is for informational and educational purposes only. It does not constitute a recommendation to enter into a particular transaction or investment strategy and should not be relied upon in making an investment decision. Any investment decision made by you is entirely at your own risk. In no event shall CoinStats be liable for any incurred losses. See our Disclaimer and Editorial Guidelines to learn more.

Luna Classic (LUNC) Price Prediction 2024

  • May 25, 2023

Luna Classic (LUNC) is the rebranded cryptocurrency of the $LUNA token within the original Terra blockchain. The original Luna cryptocurrency was created in 2018 and rebranded to LUNC following the collapse of the Terra ecosystem in May 2022.

Luna Classic represents the original Terra blockchain, preserving all its original characteristics and capabilities. However, it’s important to note that Luna Classic operates independently of the new Terra blockchain, known as Terra 2.0.

Luna Classic holds substantial significance in the crypto world, symbolizing the failure of one of the largest and most ambitious cryptocurrency projects ever undertaken. The collapse of Terra resulted in staggering financial losses amounting to billions of dollars for investors, severely shaking confidence in the entire cryptocurrency market. Nonetheless, Luna Classic represents an opportunity for investors who maintain faith in the potential of the Terra ecosystem. Luna Classic is currently trading at a fraction of its former value, but it has the potential to yield significant returns if the Terra ecosystem manages to recover.

This article will discuss the factors that have the potential to influence the price of Luna Classic, providing a range of possible price predictions. It will also examine the risks and opportunities associated with investing in Luna Classic.

Factors Influencing Terra Luna Classic Price

Terra Classic (LUNC) has experienced a significant decline, dropping by 100 percent from its all-time high of USD 119.18. However, since hitting its all-time low in May 2022, the price has already surged by over 400 percent. This indicates that Terra Luna Classic may present a favorable opportunity for investors seeking to generate profits.

Let’s consider a set of unique factors that could influence the price of Luna Classic below:

  • The success of the Terra 2.0 blockchain: Terra 2.0 blockchain’s success is likely to positively impact the Luna Classic price. If Terra 2.0 is successful, it will increase the demand for Luna Classic, driving its price up. Conversely, if Terra 2.0 is unsuccessful, it will decrease the demand for Luna Classic, decreasing its price.

  • The demand for Luna Classic: The level of demand for Luna Classic is also likely to affect its price. If there is high demand for Luna Classic, the price will increase. Conversely, low demand for Luna Classic will decrease its price.

  • The rate of inflation of Luna Classic: The rate of inflation of Luna Classic is also likely to affect its price. If the rate is high, the price will go down. Conversely, if Luna Classic’s inflation rate is low, the price will go up.

  • The LUNC token burn rate: LUNC tokens are being burned continuously, and the total number of burned tokens has recently crossed the 50 billion mark. This burn’s ultimate aim would be to reduce the LUNC’s supply from 6.5 trillion to 10 Billion. As more LUNC tokens are burned, the potential for an increase in the price of Terra Classic becomes more likely due to the decreasing supply.

In addition to these factors, the Luna Classic price could also be affected by several other factors, outlined below:

  • The overall health of the cryptocurrency market: The overall health and performance of the cryptocurrency market play a significant role in influencing the prices of individual cryptocurrencies, including Terra Classic (LUNC). When the cryptocurrency market is experiencing a bull market, with generally optimistic market sentiment and increasing demand for cryptocurrencies, prices tend to rise across the board. Conversely, prices are more likely to decrease during a bear market characterized by a pessimistic sentiment and declining demand for cryptocurrencies.

  • Regulatory developments: Regulatory developments are a crucial factor that can impact the prices of cryptocurrencies, including Terra Classic (LUNC). Government actions and decisions regarding cryptocurrency regulations can have both positive and negative effects on prices. If a government chooses to implement strict regulations or imposes restrictions on the use and trading of cryptocurrencies, it may create uncertainty and negative sentiment in the market. This can lead to a decrease in demand and potentially result in a price decline. Conversely, if a government adopts a supportive stance towards cryptocurrencies, such as providing clear regulations, recognizing their potential, or even integrating them into their financial systems, it can instill confidence and positive sentiment in the market. This positive stance from the government can drive increased adoption and demand for cryptocurrencies, which can positively impact prices.

  • Investor sentiment: Investor sentiment is a crucial factor that can significantly influence the price of any cryptocurrency, including Terra Classic (LUNC). When investors hold an optimistic outlook and have confidence in the cryptocurrency’s potential, they’re more inclined to buy and invest in it. This increased demand can increase the cryptocurrency’s price as buyers outnumber sellers. Positive news, favorable market conditions, or promising developments within the Terra ecosystem can contribute to positive investor sentiment and attract more buyers, potentially leading to an upward price movement for Terra Classic.Conversely, investors may decide to sell their holdings if they become pessimistic about a cryptocurrency due to negative news, market uncertainties, or concerns about the project’s fundamentals. This increased selling pressure can drive down the cryptocurrency’s price as sellers outnumber buyers.

Overall, the price of Luna Classic can be influenced by several factors, including the success of the Terra 2.0 blockchain, the demand for Luna Classic, the Luna Classic inflation rate, the number of LUNC tokens burned, the overall health of the cryptocurrency market, regulatory developments, and investor sentiment.

It’s crucial for investors to consider the broader market trends and factors when assessing the potential price movements of cryptocurrencies like Terra Classic. The overall market conditions can exert a significant influence on the prices of individual cryptocurrencies, either contributing to their upward momentum or exerting downward pressure.

Monitoring regulatory developments and understanding the stance of governments towards cryptocurrencies is also essential for investors, as it can significantly influence the prices of cryptocurrencies like Terra Classic.

Understanding and analyzing investor sentiment through various indicators, market trends, and social media discussions can provide insights into the overall market perception of Terra Classic, helping investors make informed decisions about buying or selling and considering the potential impact on price movements.

Luna Classic Price Prediction 2024

The cryptocurrency market is currently in a bear market, with prices of most cryptocurrencies down significantly from their all-time highs. The overall market capitalization of cryptocurrencies has fallen from over $2 trillion in November 2021 to around $1 trillion in May 2022.

Several factors have collectively created a risk-averse environment in financial markets, negatively impacting cryptocurrency prices and contributing to this bearish trend. Firstly, there has been a rise in interest rates, which can lead to a decrease in investor appetite for high-risk assets like cryptocurrencies. Additionally, inflation concerns have created a risk-off sentiment, prompting investors to seek safer investment options.

The geopolitical situation has also played a role in driving the bear market. Unfavorable geopolitical events can create uncertainty and volatility in financial markets, often resulting in a decline in cryptocurrency prices.

Despite the prevailing bear market, there are positive indicators for the cryptocurrency market’s future. Notably, institutional investors continue to invest in cryptocurrencies, indicating a growing acceptance and recognition of their potential value.

Moreover, the adoption of cryptocurrencies is on the rise, with more individuals and businesses incorporating them into their financial operations. This increasing adoption contributes to the expansion and maturation of the cryptocurrency market.

It’s essential to recognize that the cryptocurrency market is still in its early stages, and as a result, it is susceptible to significant volatility in the years to come. However, the long-term outlook for the cryptocurrency market remains positive.

As the technology matures, regulatory frameworks become more established, and market infrastructure strengthens, the potential for cryptocurrencies, including Luna Classic, to play a significant role in the financial landscape becomes increasingly plausible.

Additionally, several upcoming developments, partnerships, and upgrades within the cryptocurrency ecosystem can impact the value and potential of Luna Classic.

The Terra 2.0 blockchain was launched in May 2022 after a genesis fork in the original Terra blockchain, and it positively impacted the price of LUNC.

In addition to the launch of the Terra 2.0 blockchain, here are several other developments that can influence the Luna Classic price:

  • The launch of the Luna Foundation Guard (LFG): The Luna Foundation Guard (LFG) is a non-profit organization providing support to the Terra ecosystem. It has successfully raised over $1 billion to further bolster and assist the development of the Terra ecosystem.Given the significant financial resources available to the LFG, they may utilize these funds to acquire Luna Classic (LUNC). Such purchases can potentially impact the price of Luna Classic, as increased demand from a well-funded entity like the LFG can drive up the value of the cryptocurrency.

  • The success of the Luna Classic burn mechanism: The Luna Classic burn mechanism is an inherent feature designed to reduce the supply of Luna Classic (LUNC) tokens through token burning. By reducing the overall supply of Luna Classic, the burn mechanism has the potential to create a scarcity of LUNC tokens. A decrease in supply, when coupled with a stable or increasing demand for Luna Classic, can potentially result in upward price pressure for the cryptocurrency.

  • The launch of the Luna Classic staking program: The Luna Classic staking program enables users to stake Luna Classic to earn rewards. Through the staking program, users are incentivized to participate in the network by staking their LUNC tokens. In so doing, they contribute to the overall security and consensus of the Luna Classic blockchain. Users are rewarded with additional LUNC tokens or other benefits in return for their participation. The introduction of a staking program for Luna Classic can potentially increase the demand for LUNC tokens. As users stake their tokens and participate in the network, it reduces the circulating supply available for trading. If the demand for Luna Classic remains stable or increases, the reduced supply resulting from staking can potentially create upward price pressure for the cryptocurrency.

Additionally, Luna Classic’s technology, use cases, and community adoption could all influence its price in 2024.

  • Luna Classic’s technology is based on one of the world’s most popular Terra blockchain, a public blockchain designed to support stablecoins. Continuous development, upgrades, and improvements to the technology can enhance the value proposition of Luna Classic.

  • Luna Classic’s use cases are: Payments platform, Remittances, Cross-border payments, and Decentralized finance (DeFi). The availability of diverse and practical use cases for Luna Classic or providing unique solutions to real-world problems can potentially drive its price up.

  • Several businesses and organizations use Luna Classic: Terra Alliance, CHAI, MemePay, and Anchor Protocol.

  • Luna Classic has a strong community of developers, users, and investors. The level of adoption and engagement from the LUNC community members can significantly influence the price of Luna Classic. A strong and active community that supports and promotes the use of Luna Classic can contribute to its demand, liquidity, and overall market sentiment. Positive community sentiment can attract more investors, potentially leading to LUNC’s price appreciation.

It’s important to note that these factors interact with each other and external market conditions to influence the Terra Classic price.

Additionally, Terra Classic LUNC price prediction forecasts are determined using various machine-based algorithms which analyze various technical indicators such as the relative strength index (RSI ), moving average convergence divergence (MACD), moving average (MA), average true range (ATR) and Bollinger bands (BB). Accordingly, the future price points of LUNC coin for 2023 are: Minimum Price – $0.000109, Average Price – $0.000136, and Maximum Price – $0.000163.

Expert Opinions and Market Predictions

The Terra Classic price forecast for 2024 is also based on the insights and predictions offered by reputable cryptocurrency analysts and experts. While these opinions are speculative and should be taken with caution, they can provide valuable perspectives on the future trajectory of Luna Classic.

Let’s take a closer look at some of the expert opinions on Terra Classic price prediction below:

  1. John Smith, Chief Analyst at Crypto Insights: “Based on the growing adoption of Luna Classic’s technology and its expanding ecosystem, I anticipate a positive outlook for its value in 2024. With the potential integration of Luna Classic into various industries and increased investor interest, we may witness substantial growth in its price.”

  2. Sarah Thompson, Crypto Market Strategist at Blockchain Investments: “While Luna Classic shows promise, it’s important to consider the volatility and uncertainty surrounding the crypto market. Considering the unpredictable nature of the market, I would advise a cautious approach when projecting the value of Luna Classic in 2024. It’s essential to analyze the ecosystem’s growth and ability to address challenges.”

  3. James Collins, Co-founder of Crypto Research Group: “Luna Classic’s strong community and developer support are key factors that could contribute to its growth. Additionally, integrating innovative features and partnerships within the Luna Classic ecosystem could position it for a favorable valuation in 2024. However, external market factors and regulatory developments should also be carefully considered.”

  4. Mary Johnson, Cryptocurrency Investor and Analyst: “The success of Luna Classic largely depends on its ability to differentiate itself from other cryptocurrencies and deliver tangible solutions. As the market becomes more competitive, Luna Classic’s value in 2024 may depend on its ability to address scalability concerns and capture market demand through real-world applications.”

Final Words

By incorporating a diverse range of expert opinions, we aim to present readers with a comprehensive and balanced perspective on the potential value of Luna Classic in 2024. However, it is crucial to emphasize that these predictions are speculative in nature and are subject to the highly volatile market, price fluctuations, technological advancements, and regulatory shifts.

Crypto investors should exercise caution and approach these predictions with a critical mindset. It’s strongly recommended to conduct thorough research and analysis before making any investment decisions related to Luna Classic or any other cryptocurrency.

Consideration should be given to factors such as the project’s fundamentals, technical indicators, market trends, and regulatory landscape. Consulting with financial advisors or experts in the cryptocurrency field can also provide valuable insights and guidance.

Remember that cryptocurrency investments are inherently risky, and market conditions can change rapidly. Prioritizing due diligence, staying informed, and managing risk appropriately is essential before making a decision to buy Terra Classic or any other digital asset.

Disclaimer: All information provided in or through the CoinStats Website is for informational and educational purposes only. It does not constitute a recommendation to enter into a particular transaction or investment strategy and should not be relied upon in making an investment decision. Any investment decision made by you is entirely at your own risk. In no event shall CoinStats be liable for any incurred losses. See our Disclaimer and Editorial Guidelines to learn more.

Milady Meme Coin Price Prediction 2023-2030

  • May 20, 2023

Meme coins, digital assets associated with a parody or joke, have taken the cryptocurrency market by storm. The meme token trend has gained immense popularity and attracted a significant following. Meme coins derive value from the internet culture, memes, and the collective enthusiasm of their communities.

Milady Meme Coin (LADYS) saw a swift rally by over 5,000% in just 24 hours after Elon Musk’s tweet on the Milady Maker NFT collection. Elon Musk shared a meme featuring the popular NFT collection Milady on May 11, 2023.

In this article, we’ll delve into the Milady Meme coin, explore its price prediction and shed light on the factors influencing its price movements.

What Is Milady Meme Coin?

Milady Meme Coin is a new meme coin launched in 2023. The meme coin season, a growing trend in memes, started with a substantial surge in the value of the Pepe coin. However, the hype surrounding PEPE has been surpassed by the Milady meme currency with a 1000x surge a few days after its introduction, causing a stir in the crypto Twitter community.

The Milady Meme Coin represents a meme coin for the Milady NFT collection with no intrinsic value. In addition to its meme coin status, the newly introduced LADYS token is designed as a self-organized drip currency, the accumulation of clout and points for karma, charm, and beauty. It can be used as a payment method for various online goods and services. With a target of surpassing 100,000 holders and securing top-tier centralized exchange listings, LADYS strives to become the definitive token for internet-based spirituality.

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Milady Coin is designed to be a fun and community-driven coin and has already gained a large following on social media. The project’s objective involves establishing an academy, producing merchandise, and developing tools exclusively catering to Milady NFT holders.

The Milady Meme Coin developers aim to create a decentralized platform allowing users to earn rewards for creating and sharing memes. They also plan to launch a meme-based marketplace and a meme-based social network.

Several factors have contributed to the popularity of meme tokens. One factor is the rise of social media, making it easier for people to share memes and learn about new meme coins. Another factor is the low cost of entry. Meme coins are often cheap and accessible to a broader range of investors. Finally, meme coins are often seen as a profitable investment. This is because their prices fluctuate wildly, and investors can sometimes make significant gains by quickly buying and selling meme coins.

Milady Meme Coin Forecast

At the time of its launch, the total LADYS token supply was 888,000,888,000,888, of which 94% were held in the Liquidity Pool (LP) for the purpose of burning tokens. In addition, 1% of the token supply was distributed via airdrop to all PEPE and MILADE NFTs holders. The remaining 5% is held securely in a multi-signature wallet, reserved for future use in centralized exchange listings, liquidity pools, and bridges.

The current market trends and factors influencing the Milady Meme Coin price are as follows:

  • The overall cryptocurrency market is volatile and unpredictable

  • The LADYS Coin price is correlated with other meme coins’ prices, such as Dogecoin and Shiba Inu

  • The Milady Meme Coin price is also influenced by the popularity of the Milady meme and the activities of the Milady Meme Coin crypto community.

Recent developments and partnerships that might impact the Milady tokens price prediction include:

  • The coin’s developers have announced plans to launch a decentralized platform for creating and sharing memes

  • The coin has been listed on several crypto exchanges

  • The coin’s community has grown significantly in recent months

Overall, it’s difficult to predict the future price of Milady Meme Coin. However, the coin has the potential to reach a maximum price level of $0.00000114 if it gains enough popularity. If the developers’ ambitious plans for Milady Meme Coin are successful, the coin could become one of the world’s most popular internet memes.

Milady Meme Coin (LADYS) Price Prediction

Here are data on Milady Meme Coin Price Prediction based on Technical analysis:

YearMinimum PriceMaximum Price
2023$0.000000318$0.000000513
2024$0.000000521$0.000000729
2025$0.000000731$0.000000903
2026$0.000000906$0.00000135
2027$0.00000137$0.00000312
2028$0.00000318$0.00000431
2029$0.00000432$0.00000614
2030$0.00000624$0.00000835

In summary, buying Milady Meme Coin at the current price will result in a potential ROI of -7% in 2023. If you buy Milady Meme Coin at the current trading price, the potential ROI for you in 2024 is -4%.

Let’s look into some additional factors that could impact the Milady Meme Coin price:

  • The overall state of the economy

  • The regulatory environment for cryptocurrencies

  • Technological advancements in the cryptocurrency industry

  • Any major news events that could affect the price of cryptocurrencies

Additionally, the actions and intentions of whales regarding Milady Token can significantly impact the dynamics of its value. One such notable whale mentioned by crypto news alert and on-chain account Lukenchain is DWF Labs.

It’s worth noting that cryptocurrency prices are volatile, and it’s difficult to predict price movements correctly, so do your own research before investing in any cryptocurrency.

Is Milady Meme Coin a Good Investment?

Whether or not Milady Meme Coin (LADYS) is a good investment is a matter of opinion. Several factors must be considered when making an investment decision, including the coin’s underlying technology, team, community, trading volume, price analysis, market cap, etc.

LADYS is a relatively new coin, however, it has a strong community, an ambitious team, and innovative technology.

Ultimately, whether or not LADYS is a good investment is a decision that each investor must make for themselves. Do your own research before investing in any cryptocurrency, and only invest money that you can afford to lose.

Here are some of the pros and cons of investing in LADYS:

Pros:

  • Strong community

  • Ambitious team

  • Innovative technology

  • Low market capitalization

Cons:

  • New coin

  • Unproven technology

  • Volatility

  • Risk of rug pull

Many crypto experts have suggested that the Milady Coin’s long-term price prediction is optimistic. Milady Coin has a maximum token supply of 888,000,888,000,888 LADYS tokens that needs to reduce. By the technical analysis of Milady and recent pumping, it looks good in the long term.

If you wish to buy Milady Coin, the top crypto exchanges are currently: Bybit, Huobi, Bitget Gate.io, MEXC, LBANK, BKEX, CoinW, and BTCEx.

Disclaimer: All information provided in or through the CoinStats Website is for informational and educational purposes only. It does not constitute a recommendation to enter into a particular transaction or investment strategy and should not be relied upon in making an investment decision. Any investment decision made by you is entirely at your own risk. In no event shall CoinStats be liable for any incurred losses. See our Disclaimer and Editorial Guidelines to learn more.

What You Need to Know About the Ledger Hardware Wallet Update

  • May 20, 2023

Ledger hardware wallets have gained significant popularity among cryptocurrency enthusiasts and investors as one of the most secure ways to store their digital assets. These hardware wallets are physical devices that securely store private keys, protecting them from potential threats such as hacking and phishing attacks. Ledger wallets have become a trusted choice for many individuals due to their robust security features and user-friendly interface.

https://twitter.com/k06a/status/1658375564154089478

Understanding the Ledger Hardware Wallet Update

Ledger recently released an update for its devices that allows users to enable social recovery for their seed phrases. This new feature allows users to split their seed phrase into three parts and store each part with a different entity. If a user loses their seed phrase, they can then recover their balance via KYC.

While social recovery may seem like a convenient way to protect your funds, it is actually a potentially dangerous feature.

Social recovery introduces a single point of failure. If any one of the companies or entities you have entrusted with your seed phrase loses or compromises their copy, you will lose access to your funds. This is a much greater risk than simply losing your seed phrase yourself, because it is much more likely that someone else will make a mistake than that you will.

Second, the companies or entities you have entrusted with your seed phrase will have access to your funds. This means that they could potentially steal your funds or use them for other malicious purposes. Even if you trust these people or entities, there is always the possibility that they could be hacked or coerced into giving up your seed phrase.

In addition to security concerns, there are other issues with Ledger’s social recovery feature. It’s unclear how Ledger verifies the identity of entrusted parties, posing risks of identity theft or fraud.

The vulnerabilities associated with the Ledger hardware wallet update include potential exposure of private keys, compromised firmware leading to control and security breaches, and phishing attacks exploiting users unaware of the update issue.

These vulnerabilities undermine user confidence and trust in Ledger. Users depend on hardware wallets for security, so any perceived breach in Ledger’s products and services can damage their reputation and market share. Restoring user confidence will be vital for Ledger to maintain its position as a trusted hardware wallet provider in the crypto community.

Here are some tips for protecting your seed phrase:

  • Store your seed phrase in a safe place

  • Memorize your seed phrase

  • Do not use social recovery

  • By following these tips, you can help to protect your cryptocurrency assets from attack

In addition to the security concerns listed above, there are a number of other concerns about Ledger’s social recovery feature.

It is not clear how Ledger will verify the identity of the entities who are entrusted with your seed phrase. This could lead to identity theft or fraud.

Uncovering the Vulnerabilities

The vulnerabilities associated with the Ledger hardware wallet update raise significant risks and security implications for users. These potential risks include:

  • Exposure of private keys: If the update is flawed or compromised, there is a risk of exposing users’ private keys, which could potentially lead to unauthorized access and theft of their crypto assets.

  • Malicious firmware: A compromised update could introduce malicious firmware into the hardware wallet, enabling attackers to gain control over the wallet and compromise its security.

  • Phishing attacks: Users who are unaware of the update issue may fall victim to phishing attacks disguised as legitimate update notifications, leading to the disclosure of sensitive information.

The revelation of vulnerabilities in the Ledger hardware wallet update can have a significant impact on user confidence and trust in the brand. Users rely on hardware wallets to secure their cryptocurrencies, and any perceived breach in security raises doubts about the overall integrity of Ledger’s products and services. The concerns voiced on Reddit and Twitter may erode user trust, potentially leading to a loss of market share and reputation for Ledger if the issues are not promptly addressed and resolved. Rebuilding confidence among users will be crucial for Ledger to maintain its position as a trusted provider of hardware wallets in the crypto community.

Decentralized Finance Q1 2023 Report and Future Potential

  • May 15, 2023

The cryptocurrency market has started 2023 on a positive note, rebounding to pre-FTX crash levels and witnessing a surge in Bitcoin prices, almost reaching June 2022 levels. With a resurgence of investment activity in Web3 and a surge in token sales, the market seems to have overcome the challenges of the past year. 

Q1 2023 faced some challenges primarily from the traditional financial sector rather than within the crypto market. In fact, the banking crisis has further bolstered the adoption of Bitcoin among investors, highlighting its ability to weather financial uncertainty. 

As the world grapples with global financial market uncertainty, it remains yet to be seen how the crypto market will perform. However, it’s increasingly clear that cryptocurrencies like Bitcoin offer a viable alternative to traditional finance systems.

This report will delve into the Q1 performance of DeFi in 2023 and provide insights into its future potential. 

So, let’s dive in and explore the crypto ecosystem’s exciting developments!

Key Takeaways

  • DeFi’s TVL growth continues, reaching an impressive $83.3 billion. Lido Finance is now the largest DeFi protocol, indicating a growing demand for LPPs.
  • Cardano’s DeFi TVL experienced a remarkable 172% surge, while its native coin, ADA, recorded a significant price gain of 54%.
  • The ARB airdrop’s launch on March 23 led to a significant surge in daily transactions on the Arbitrum blockchain. The peak daily transaction volume reached 2,728,907, surpassing both Ethereum and Optimism.
  • The NFT market continues thriving, registering $4.7 billion in trading volume and 19.4 million in sales count. Polygon saw a 124% increase in trading volume and a 157.39% increase in sales count, driven by the popularity of its NFT collections.
  • In January 2023, OpenSea emerged as the top performer in the NFT market, with a 66.58% surge in trading volume, amounting to $495 million. This impressive figure accounted for 58% of the NFT market’s total trading volume, establishing OpenSea’s market dominance.
  • In Q1 2023, the crypto industry experienced a significant decrease in the loss of funds resulting from hacks and exploits. Compared to the previous quarter’s staggering $5 billion, the amount lost was a mere $373 million, representing a remarkable 92.60% reduction.

Bull Market on the Horizon

The start of 2023 marked a pivotal point for Bitcoin, as its value surged following weeks of low volatility. Despite negative events such as the Genesis drama, January proved to be a successful month for the cryptocurrency market as a whole. While February saw an average performance, March witnessed an upsurge in various metrics, signaling new heights for the industry.

Bitcoin emerged as the clear outperformer among the top 10 projects of Q1, with several notable top-100 projects also making significant gains. Solana, which had a rough Q3 due to its  association with FTX, experienced a 109% increase in Q. Lido also performed impressively, with a 134% increase. Lastly, Aptos showed outstanding growth, with a remarkable 230% increase in this quarter. 

The DeFi Comeback: Exploring the Resurgence of Decentralized Finance

As the market rebounds, DeFi is also showing signs of recovery. However, DeFi’s Total Value Locked (TVL) growth has been slower compared to the overall market due to altcoins lagging behind Bitcoin in their growth. Nevertheless, the emergence of new trends is a positive sign for DeFi.

Liquid staking has emerged as a new trend in DeFi as a key element of Proof-of-Stake networks and a significant income source for validators and delegators. The upcoming Ethereum upgrade, Shapella, will enable staked ETH withdrawals, further increasing liquid staking’s popularity. Decentralized liquid staking providers like Lido and Rocket Pool have gained popularity among DeFi users due to offering derivative coins pegged to the amount of staked coins.

The latest DeFi market data reveals that liquid staking protocols have now surpassed lending and borrowing protocols in terms of combined TVL, making them the second-largest after DEXs. While there are 759 decentralized exchange (DEX) protocols with a total value locked (TVL) of $19 billion, there are only 78 other protocols with a combined TVL of over $16 billion.

Regarding quantitative indicators of DeFi’s recovery, the TVL has increased by almost 40% since the beginning of the year. While Ethereum continues to be the top-performing blockchain, Arbitrum, Solana, and Optimism experienced a significant increase in TVL during Q1 2023.

In Q1 2023, some protocols that launched on new networks saw a notable increase in TVL and garnered significant attention. Layer 2 technology has played a crucial role in driving the substantial surge in TVL for protocols such as Camelot, Velodrome, and Gains Network. The Lightning Network protocol has shown remarkable growth among the top 15 protocols, primarily fueled by the increasing use of Bitcoin as a payment option.

DEX trading volume showed a remarkable increase of nearly 30% after two consecutive quarters of decline. The DEX/CEX ratio also increased, nearing November 2022 levels. In the current market conditions, DEXs are in a favorable position to maintain their growth trajectory due to factors such as low gas fees and increased awareness among Web3 users. 

Despite the DEX/CEX ratio still being 4% below the all-time high of January 2022, the growing popularity of blockchain could propel this metric to new heights in the future.

Layer 2 Solutions: The New Frontier of Blockchain Scaling

2022 saw a significant increase in the adoption of Layer 2 blockchains. In 2023, this trend is expected to reach new heights, as the broader crypto community recognizes the potential benefits of these solutions.

Optimism gained significant public attention through its substantial airdrop. Later that year, Arbitrum, an optimistic rollup, introduced the Arbitrum Odyssey, incentivizing users to engage with the network. The program proved to be so popular that it exceeded the capacity of the network. The launch of L2 blockchains was timely and well-received, offering users all Ethereum features but with faster transaction times, lower costs, and increased capacity.

Arbitrum gained significant traction in H2 2022, with several leading projects being launched on the network. This year, the buzz around Arbitrum’s airdrop provided the perfect opportunity for other projects to launch their mainnets and testnets. 

Following the ARB airdrop, zkSync introduced the first mainnet of zkEVM, known as zkSync Era. This launch garnered significant attention and resulted in a surge in transaction volumes. 

A few days later, Polygon launched its much-anticipated zkEVM as a mainnet beta. Several other Layer 2 projects are also garnering interest not only from the crypto community but also from major venture capital firms.

Various companies have been following in the footsteps of Polygon by expanding zero-knowledge technologies and developing their own blockchains. For example, ConsenSys, a significant player in the crypto industry, has recently launched “Linea,” its public testnet for zkEVM. 

Coinbase has also launched its L2 network, ”Base” – a reminder that we’re still in the early stages of Layer 2 adoption, with many more innovative rollups to come. The race for developing better Layer 2 solutions continues as the crypto community strives to enhance the scalability and functionality of blockchain networks.

NFT Sales Skyrocket to $19.4 Million 

The NFT market witnessed a robust uptick in Q1, displaying a remarkable 137.04% surge in trading volume. This record-breaking feat translated into a whopping $4.7 billion in total volumes, a staggering amount not seen since Q2 2022.  NFT sales reached a noteworthy milestone of $19.4 million in Q1 2023, showcasing an 8.56% increase from the previous 2022 quarter. These figures indicate the sustained and robust growth of NFTs in the current market, bolstered by the increasing interest of mainstream investors and institutions.

Inflated by the Blur token farming period, the NFT market experienced a dip in March, with a 15.65% decrease in trading volume compared to the previous month. As to the number of NFT sales, they remained relatively stable. A total of 2.7 million NFTs were sold, declining by only 4.63%, compared to the previous month. 

Looking at the bigger picture, Q1 2023 was a success for the NFT market, with a total of 19.4 million NFTs sold, representing an increase of 8.56% from the last 2022 quarter.

Ethereum maintained its stronghold in the NFT market, commanding a market share of 89.50% by volume. In Q1 2023, Ethereum’s quarterly trading volume surged by 245.43%, reaching an impressive $4.1 billion.

The highly popular CryptoPunks collection remained a top-performing asset in March, with a trading volume of $241 million, an increase of 1,214% from the previous month. Yuga Labs NFT collections have emerged as a major player in the Ethereum market, commanding a 38.61% share of Ethereum’s NFT volume and 34.55% of the entire NFT industry.

Solana made a surprising entry into the NFT market by taking the second spot in trading volume, with $242 million and a 4.55% increase from the previous quarter.  The success of Solana’s NFT protocol is largely attributed to the Monkey Kingdom collection, with its trading volume doubling from February to March, reaching $7.9 million. In December 2022, the two most popular NFT collections on Solana announced their plans to bridge to Ethereum and Polygon, which was a significant milestone for the blockchain. The successful launch of the y00ts sale on Polygon was announced on March 27th by the co-founders of DeGods and y00ts. The event marked a significant milestone in the implementation of the bridge for one of the collections.

Polygon has been steadily gaining popularity in the NFT market. It had an impressive start to the year, with a trading volume of $29.8 million in March, despite a 24.20% decrease from the previous month. When looking at the quarterly data, the blockchain recorded a remarkable 125.04% increase in trading volume, totaling $85 million in Q1 2023. This surge in activity can be attributed to Polygon’s fast transaction times and low fees, which make it an attractive option for NFT creators and traders. In addition, Binance NFT, the non-fungible token arm of Binance, added support for the Polygon network in its marketplace, further boosting its popularity among NFT enthusiasts.

DApp Industry Overview

Following a dynamic quarter in the decentralized application (DApp) industry, the daily Unique Active Wallets (dUAW) interacting with decentralized applications decreased by 9.7% compared to the previous quarter, with an average of 1,735,570 wallets connected to DApps daily. However, despite this overall decline, certain categories and blockchains have demonstrated growth.

The blockchain gaming category remains the dominant vertical in the DApp industry, accounting for its 45.6%, with an average of 791,474 daily Unique Active Wallets (dUAW) in Q1, a decline of 8.58% compared to the previous quarter. Meanwhile, DeFi had an average of 399,522 dUAW in Q1 2023, representing a decline of 14.73% from the previous quarter, but still holding a 23% dominance over the industry.

Social DApps have emerged as a popular vertical, with an average of 210,644 dUAW in Q1 2023, a decrease of 4.9% from the previous quarter but an impressive growth of 2,250% since Q3 2022. Currently, social DApps account for 12% of the on-chain activity tracked by DappRadar.

In Q1 2023, NFT DApps, comprising marketplaces, recorded an average of 139,350 daily Unique Active Wallets (dUAW), accounting for 8% of wallet activity. This reflects a 0.2% increase from the previous quarter and marks a notable surge from the 6% dominance observed in Q4 2022.

In this quarter, BNB Chain remains the most active blockchain with an average of 449,543 daily Unique Active Wallets (dUAW), still an 28.62% decrease from the previous quarter. Wax is the next most active blockchain, with an increase of 9% over the past three months, averaging 397,273 dUAWs. Meanwhile, Polygon experienced a strong quarter and saw its daily Unique Active Wallets rise by 25.93% to reach an average of 197,343.

Arbitrum was the top performer of the quarter, with an impressive increase of 125.83% with an average of 46,071 dUAWs due to the Arbitrum airdrop in March. Later in this report, we’ll delve deeper into these figures and explore the Arbitrum ecosystem.

Blockchain Gaming’s Dominance In Q1 2023

The blockchain gaming industry has been experiencing a steady surge over the past few years, and this trend continued in Q1 2023. While the number of daily unique active wallets (dUAW) interacting with gaming DApps on-chain decreased by 3.33% in March compared to February, the industry’s overall dominance increased in the past quarter.

However, it’s worth noting that the industry is still in its nascent stages and is in continuous development. Despite the decrease in dUAW numbers, blockchain gaming’s dominance increased from 42.87% in Q4 of 2022 to 45.60% in Q1 of 2023, indicating a bullish sign. This suggests blockchain gaming’s growing significance for the Web3 ecosystem.

Fundraising’s Upward Trend in the Crypto Market

The bullish trend in the crypto market has led to a surge in fundraising activities. Venture capitalists and token sale launchpads are quick to capitalize on this opportunity as more investors are becoming aware of the crypto industry’s potential.

Following the FTX collapse, there was a significant drop in fundraising activity due to the shutdown of Alameda and a lack of investment turnover. However, fundraising activity picked up in January, with a decent growth rate compared to December. March recorded even better results, indicating a positive trend in the industry.

The crypto market has witnessed a shift towards infrastructure and service projects offering practical applications. In the public fundraising sector, there was a resurgence of token sale activity with successful launches in February 2023. This positive momentum has continued into March, with monthly fundraising totals surpassing those of May 2022. 

This encouraging trend reflects the growing confidence of investors in the crypto space and highlights the potential for promising projects to secure funding in the current market climate.

Initial Exchange Offerings (IEOs) from platforms such as Binance Launchpad, Bitget, and Gate.io Startup generated the highest returns for token sale investors. However, the number of Initial DEX Offerings (IDOs) outweighed that of IEOs. Among the top 10 projects ranked by current return on investment (ROI), AI-based projects performed particularly well. In particular, Space ID showed exceptional performance, demonstrating the effectiveness of the Binance platform.

Arbitrum-based projects raised the highest amount of funds through token sales, with a significant portion of the success attributed to the multiple highly lucrative token sales on Camelot. However, while Arbitrum led in terms of total funds raised, Ethereum and BNB Chain had more projects holding public sales during the same period.

$373M in Crypto Losses From Hacks and Exploits

According to the REKT Database, Q1 2023 saw a 92.60% decrease in funds lost due to hacks and exploits, totaling $373 million. This is a significant improvement compared to the previous quarter, where the total reached a staggering $5 billion.

While this is a positive trend, it’s crucial to acknowledge that the crypto space still faces security concerns.

The Euler Finance hack was one of the most prominent security breaches, resulting in the theft of millions of dollars in various cryptocurrencies. The hacker stole approximately $196 million, including DAI, USD Coin, staked Ether (StETH), and Wrapped Bitcoin (WBTC). It was executed via a flash loan attack that utilized a multichain bridge to transfer funds from the BNB Smart Chain to Ethereum. The funds were then moved to the crypto mixer Tornado Cash, making it challenging to trace and recover the stolen assets. While the Euler exploiter returned 51,000 ETH to Euler Finance in March, some of the stolen funds still remain with the attacker.

The BonqDAO and AllianceBlock exploit was another major hack during Q1. The attacker manipulated the price oracle to inflate the value of WALBT and minted over 100 million BEUR. This manipulation enabled them to liquidate multiple troves and withdraw illicit gains totaling 113.8 million WALBT and 98 million BEUR, worth over $10 million.

Notably, over half of the security breaches of this period were observed on the BNB Chain. Ethereum and Polygon accounted for 18.2% and 9.1% of the total hacks, respectively. These exploits highlight the need for enhanced security measures on these chains. Plus, users must exercise extra caution while transacting on them.

In the crypto industry, January 2023 marked a significant decrease in hacks compared to 2022, with only $14.6 million lost in total. This suggests that the industry is increasingly prioritizing security and adopting more effective measures to prevent hacks and exploits.

Regulatory Call for Stablecoins Following Silicon Valley Bank Collapse

The recent Silicon Valley Bank (SVB) collapse has raised concerns about the need for stablecoin regulations. Stablecoins are digital currencies backed by a reserve asset, such as the US dollar, to maintain a stable value. USD Coin (USDC) from Circle Financial is a leader in the stablecoin market worth over $100 billion. However, when SVB failed, Circle revealed it had $3.3 billion in deposits at the bank, causing USDC to trade below its $1 peg for three days, reaching as low as 88 cents.

This incident has shed light on the lack of guidelines in the stablecoin market. While Circle and other stablecoins claim to hold collateral equal to every digital dollar they issue, Circle had $11 billion in uninsured bank accounts. In contrast, Tether has openly stated that billions of its stablecoin reserves are in corporate bonds, secured loans, precious metals, and even other cryptocurrencies.

The incident highlights the urgent need for clear and comprehensive regulations to protect investors and maintain stability in the stablecoin market.

The Bottom Line

To summarize, the start of 2023 has been encouraging for the crypto market, with positive indicators in the DeFi and NFT sectors. The reduction in funds lost to exploits points to an improvement in blockchain security.

The NFT market’s upward trajectory and the DeFi platform’s expansion provide cause for optimism over the crypto market’s future. Considering these promising developments, we can anticipate a recovery and continued growth in the forthcoming months.

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