Polygon (MATIC) is one of Ethereum’s premier scaling solutions. This article addresses critical questions such as “What is Polygon?”, “What is Polygon crypto?” and the specifics of “What is MATIC crypto?”. We look at Polygon’s unique blockchain architecture and its role in the evolution of the Ethereum blockchain.

In addition, we take an in-depth look at MATIC, the blockchains’ native token, and its transformation into Polygon 2.0. Last but not least, we also examine key partnerships and try to make a MATIC price prediction.

What Is Polygon MATIC?

Polygon, birthed as the Matic Network in 2017, stands as a revolutionary “Layer 2” scaling solution for Ethereum’s blockchain. It’s designed to provide a faster, more efficient parallel to Ethereum’s main blockchain, addressing critical issues like high gas fees and network congestion.

MATIC, the network’s native cryptocurrency, is pivotal for network operations, serving multiple functions including transaction fees, staking, and governance decisions. The rebranding to Polygon in early 2021 marked a significant evolution, broadening its scope from just a scaling solution to a multi-layered ecosystem.

Polygon Explained: A Comprehensive Overview

Polygon operates akin to an express lane, paralleling Ethereum’s main blockchain. It’s a complex system utilizing a variety of technologies to establish this high-speed blockchain. By “bridging” assets onto the layer-2, users can interact with popular crypto applications with greater speed and lower costs compared to Ethereum’s mainnet. The network’s construction is particularly ingenious, featuring:

Proof-of-Stake (PoS) Consensus Mechanism: Validators on the network verify transactions and maintain the blockchain’s integrity. They receive rewards in the form of transaction fees and newly created MATIC. Delegators, who stake their MATIC indirectly, also play a critical role, albeit with less commitment than validators.
Layered Architecture: This includes the Ethereum layer for executing critical components, a security layer offering validator services, a network layer of sovereign blockchains, and an execution layer for processing transactions.

Definition And Core Concepts Of Polygon

At its core, Polygon is not just about enhancing transaction speeds but about creating an interconnected ecosystem of Layer 2 sidechains, which it ambitiously names the “Internet of Ethereum Blockchains.” This ecosystem is realized through:

Scalability Solutions: Technologies like Plasma, zkRollups, and Optimistic Rollups are employed, each tailored for different scalability requirements. Plasma focuses on off-chain transaction processing, while zkRollups and Optimistic Rollups offer solutions for bundling numerous transactions into single Ethereum blocks, thus enhancing throughput.

Software Development Kit (SDK): A crucial element in Polygon’s infrastructure, the SDK facilitates the development of compatible decentralized applications. It enables the creation of varied sidechains, each customizable to specific project needs.
Interoperable Protocol: This framework allows seamless interaction among Ethereum-compatible blockchains, leveraging Ethereum’s robust ecosystem while overcoming its inherent limitations.

The networks approach is holistic, targeting not just individual transaction efficiency but a comprehensive upgrade to Ethereum’s network capabilities. It’s a bid to create a unified, interoperable blockchain environment, a leap forward in the blockchain and cryptocurrency landscape.

What Is MATIC?

MATIC, the native cryptocurrency of Polygon, serves as the linchpin in the network’s functioning. Originating from Polygon’s earlier incarnation as the Matic Network, MATIC has evolved beyond a mere transactional currency. It’s utilized for paying transaction fees on the network, for staking, and significantly, in the governance of Polygon, granting MATIC holders a say in the network’s future developments.

MATIC’s Proof-of-Stake (PoS) consensus mechanism is central to its operation. Validators and delegators, who stake their MATIC, are crucial to the network’s security and integrity. They verify transactions, add them to the blockchain, and in return, earn MATIC rewards. This staking mechanism not only ensures network security but also incentivizes participation and investment in the ecosystem.

How Polygon Stands Out In The Crypto Space

Polygon distinguishes itself in the crowded crypto space through its unique multi-layered architecture and a comprehensive suite of scaling solutions. Unlike many blockchain solutions that focus on a single aspect of performance enhancement, Polygon provides a modular framework. This framework allows developers to create Ethereum-compatible networks with varied features, including but not limited to:

Scalability: Polygon effectively addresses Ethereum’s scalability issues, offering faster transaction speeds and lower fees through its Layer 2 solutions.
Interoperability: By promoting the interconnection of Ethereum-compatible blockchains, Polygon facilitates a more integrated and efficient network.
Developer-Friendly Platform: The Polygon SDK empowers developers to build diverse decentralized applications with ease, without needing to depart from Ethereum’s well-established environment.
FlexibilityAnd Customization: Projects can choose from different scaling solutions like Plasma, zkRollups, and Optimistic Rollups, tailoring their blockchain to their specific needs.
Security: Polygon’s optional ‘security as a service’ layer provides added protection, enhancing the trustworthiness of the network.

Polygon Partnerships

Polygon’s vast array of partnerships across diverse industries highlights its significant impact and utility in the real world. These collaborations showcase how Polygon is integrating blockchain technology into various sectors, ranging from finance and social media to fashion and sports.

Finance

Mastercard: Launched an Artist Accelerator Program to mentor emerging musical talents using Web3 technologies.
Bank of Italy: Partnered with Polygon and Fireblocks to experiment with tokenized assets, as part of an initiative to explore this technology.
Nubank: Brazil-based Nubank has partnered with Polygon to expand its Nucoin loyalty program, benefiting approximately 70 million customers.

Social Media

Instagram: Empowering users to mint, showcase, and sell NFTs directly on Instagram.
Reddit: Launched a limited edition NFT collection called CryptoSnoos, minted on the Polygon blockchain.
Polygon Partnerships in Automobile
Bentley Motors: Collaborated for Bentley’s Genesis NFT collection, minted on Polygon’s blockchain.
Mercedes: Developed Acentrik, a blockchain-based data-sharing platform, facilitating data tokenization on Polygon.

Food And Beverages

Starbucks: Partnered for the Starbucks Odessey Web3 initiative, introducing NFT offerings on the network.
7-Eleven: The American convenience store chain partnered with the network to introduce Slurpee NFTs, which are digital collectibles.
Coca-Cola: Launched an NFT collection on International Friendship Day, minted on the network.

Fashion And Beauty

Nike, Adidas, And Prada: Supported various Web3-focused initiatives and digital fashion projects.
Casio: Another notable partnership was with Casio electronics manufacturer to launch a G-Shock watch-related initiative, contributing to Polygon’s growth.

E-commerce

Flipkart: Established the Blockchain eCommerce Centre of Excellence for integrating blockchain in commerce.
Venly & Shopify: Enabled minting and selling of NFTs for Shopify merchants on the network.

Sports

DraftKings: Developed the DraftKings NFT Marketplace, built on Polygon.
SPORTFIVE: Collaborated to create Web3 experiences in sports, including Metaverse and NFT initiatives.

Partnerships In Technology

Nothing: Launched an NFT loyalty program with tech company Nothing.
Stripe: Integrated with Stripe for cryptocurrency payouts using Polygon’s blockchain.
Deutsche Telekom: The telecommunications giant partnered with the project to enhance its blockchain infrastructure and capabilities.

Exploring MATIC Crypto: The Building Block of Polygon

MATIC crypto, the native token of the network, is a fundamental component that fuels and stabilizes the Polygon ecosystem. It plays a multifaceted role, encapsulating both utility and governance aspects. As project evolves and expands its reach, the significance of MATIC continues to grow, underpinning the network’s operational efficacy and user engagement.

What Is MATIC Crypto?

MATIC token, originally central to the Matic Network and now integral to Polygon, serves several key functions within the ecosystem. It is an ERC-20 token, compatible with the Ethereum blockchain, which facilitates seamless integration and interoperability. Key characteristics and uses of MATIC include:

Transaction Fees: MATIC is used to pay for transaction fees on the network, compensating validators for their computational resources.
Staking: As part of Polygon’s Proof of Stake (PoS) consensus mechanism, MATIC tokens are staked by validators and delegators. This staking process secures the network and ensures its integrity.
Governance: Holding MATIC tokens grants users governance rights within the ecosystem, allowing them to participate in decision-making processes and vote on proposals regarding network upgrades and changes.

Role Of MATIC

MATIC’s role extends beyond its utility as a cryptocurrency. It is the cornerstone of the network, with its functions intricately woven into the network’s architecture:

Network Security: Through staking, MATIC plays a crucial role in maintaining the security and stability of the network. Validators, who stake MATIC tokens, are responsible for processing transactions and adding them to the blockchain. Their commitment is incentivized through rewards paid in MATIC.
User Incentivization: The staking mechanism also serves to incentivize users to participate in the network. By staking MATIC, users can earn rewards, contributing to the network’s health and fostering a robust user community.
Scalability And Efficiency: The use of MATIC for transaction fees underpins Polygon’s ability to offer low transaction costs and high throughput, crucial for scaling the Ethereum network effectively.
Empowering Decentralized Applications (dApps): MATIC’s compatibility with Ethereum and its role in transaction fee management make it an attractive option for dApp developers seeking an efficient, scalable platform.
Facilitating Governance: As a governance token, MATIC empowers its holders to shape the future of the network, ensuring a decentralized and user-centric development approach.

Polygon 2.0: What The Future Will Look Like

Polygon 2.0 marks a transformative phase in the evolution of the network, aiming to scale Ethereum to the size of the internet using advanced Zero-Knowledge (ZK) technology.

History Of Polygon

Polygon, initially launched as Matic Network in 2017, was developed to address critical blockchain scaling and usability issues. In May 2020, the Matic Network debuted its mainnet on Ethereum. During this phase, the network was predominantly managed by the Matic Foundation, which gradually began to onboard third-party validators for decentralized control.

The network underwent a significant transformation in February 2021, rebranding to Polygon. This change marked an expansion of its capabilities, including the integration of ZK-rollup technologies and various other scalability solutions. Following this, the project continued its momentum by acquiring technologies like Hermez and Mir Protocol, and launching initiatives such as Polygon ID in June 2022 and Polygon Supernets in October 2022. The introduction of Polygon zkEVM in March 2023 further cemented its commitment to enhancing scalability and privacy.

What Is Polygon 2.0?

Polygon 2.0, announced on June 12, 2023, represents a series of proposed upgrades aimed at unifying all Polygon protocols under the Zero-Knowledge (ZK) technology umbrella. This ambitious plan includes upgrading the PoS network to a zkEVM Validium network, which uniquely stores transaction data off-chain, maintained by the network’s validators.

The initiation of Polygon 2.0’s “Phase 0” on September 14, 2023, marked the beginning of implementing these upgrades. This phase was driven by the release of several critical Polygon Improvement Proposals (PIPs) that laid out the foundational changes for the network’s transformation. These proposals aimed to ensure that existing users and developers on the network would not be immediately affected, ensuring a smooth transition.

MATIC Becomes POL

A cornerstone of the Polygon 2.0 upgrade is the transition from the existing MATIC token to the new POL token. This transition was officially set in motion with the POL token contract going live on the Goerli testnet on October 4, 2023. The POL token is designed to serve as the native token of the upgraded ecosystem, supporting a variety of roles across the ZK-based L2 chains.

The POL token starts with a supply of 10 billion, allowing for a one-to-one migration from MATIC, and features an annual emission rate of 2%. This emission is strategically planned to support validator staking rewards and contribute to a community treasury, emphasizing a balanced and sustainable network growth.

Market Insights: What Is The Price Of MATIC?

The price of MATIC, Polygon’s native cryptocurrency, is subject to fluctuations driven by various factors in the cryptocurrency market. The token’s value is influenced by general market trends, investor sentiment, network upgrades, and broader economic conditions.

Factors Influencing MATIC’s Price

Several key factors can impact the price of MATIC:

Network Upgrades: Significant developments such as the transition to Polygon 2.0 and the change from MATIC to POL can have a profound effect on the token’s price as they reflect the network’s growth and scalability prospects.
Adoption And Partnerships: As Polygon forms partnerships with major brands and companies, the increased usage and visibility can positively influence MATIC’s value.
Market Sentiment: Investor perceptions and sentiment, often swayed by news and social media, can lead to price volatility.
Regulatory Environment: Changes in the regulatory landscape for cryptocurrencies in key markets can affect the price as they alter the operational framework for crypto assets like MATIC.
Technical Developments: Innovations in blockchain technology and integrations with other platforms can affect the perceived value of MATIC.
Economic Indicators: Broader economic factors, such as inflation rates, interest rates, and the performance of major fiat currencies like the US dollar (DXY), can also play a role.

Polygon Price Prediction

The 1-week chart of MATIC/USD depicts the most crucial levels in the medium to long term. For the analysis of these price levels, we use Fibonacci retracement levels and Exponential Moving Averages (EMAs) to identify potential support and resistance levels.

Fibonacci Retracement Levels:

0.236 Level (Approximately $0.92): This level, derived from the Fibonacci retracement, is a potential resistance zone. If the price of MATIC approaches this level, traders might expect some selling pressure, as it’s a common retracement level where price reversals can occur.
0.382 Level (Approximately $1.29): This is another key resistance level. A break above this could signal strong bullish momentum, possibly leading to higher price levels.
0.5 Level (Approximately $1.59): The halfway point of the Fibonacci retracement levels is considered a psychological level of market sentiment. It may serve as a strong resistance level where the price could face considerable challenges.
0.618 Level (Approximately $1.89): Often referred to as the ‘golden ratio,’ this level is crucial. If the price were to move past this point, it might indicate a potential trend reversal from previous declines.
0.786 Level (Approximately $2.32): Approaching this higher retracement level typically indicates a substantial recovery from past downtrends, signifying that the price is nearing the previous highs from which it retraced.

Exponential Moving Averages:

20-Week EMA: MATIC has recently breached the 20-week EMA at $0.65, which it had been trailing below since mid-April 2023. This move indicates a potential shift in short-term sentiment from bearish to bullish.
50-Week EMA: The price is currently approaching the 50-week EMA at $0.77, a crucial resistance level that traders often watch. If MATIC can sustain above this level, it might confirm a stronger bullish trend over the medium term.
100 and 200-Week EMAs: These longer-term EMAs represent more substantial levels of support and resistance and could indicate the overall health of the market. A breach above the 100-week EMA (approximately $0.95) would be a strong bullish signal, while the 200-week EMA would be indicative of a long-term bullish reversal.

Current Status

As of November 7, MATIC is trading around $0.7087, having recently conquered the 20-week EMA. The next critical level for MATIC to test is the 50-week EMA. If it successfully breaks and holds above this level, the next significant resistance would be at the 0.236 Fibonacci level of $0.92. These levels, coupled with market sentiment and fundamental developments within the ecosystem, will be pivotal in determining MATIC’s price trajectory in the coming weeks and months.

FAQ

What Is Polygon?

Polygon is a layer two blockchain scaling solution and framework to the Ethereum blockchain, enabling fast transactions with reduced costs.

What Is Polygon Crypto?

“Polygon crypto” refers to the cryptocurrency ecosystem that is built on the network, including its native token, MATIC (soon to be POL), and the various decentralized applications (dApps) it supports.

What is MATIC Crypto?

“MATIC crypto” is the native utility token of the Polygon network, used for transaction fees, staking, and participating in network governance.

What Is Polygon Matic?

Polygon (MATIC) refers to the ecosystem and the suite of solutions provided by the Polygon network, which was initially known as the Matic Network before rebranding.

What Is The Price Of MATIC?

You can check the varying price of MATIC on any major cryptocurrency exchange or financial market data provider.

What Is MATIC Polygon?

MATIC Polygon refers to the native token (MATIC) and the underlying network (Polygon) on which it operates.

What Is Polygon Blockchain?

The Polygon blockchain is a scalable network that provides a framework for building and connecting Ethereum-compatible blockchain networks.

What Is The Polygon Network?

The Polygon network is the overarching ecosystem that includes the Polygon blockchain, its native MATIC token, and all connected services and dApps.

What Can You Do With Polygon MATIC?

With Polygon Matic, you can engage in a variety of blockchain-related activities such as trading, staking, governance, and interacting with dApps for gaming, finance, and other services.

What Does Polygon MATIC Do?

Polygon Matic provides a platform for creating scalable and interconnected blockchain networks with lower transaction fees and faster speeds compared to Ethereum.

What Is Going On With Polygon Matic?

Polygon MATIC is continuously evolving, with upgrades like Polygon 2.0 aimed at expanding its capabilities and improving its infrastructure for better scalability and interoperability.

What Is MATIC Coin Used For?

Users can employ the MATIC coin to pay transaction fees on the Polygon network, stake for network security, and participate in governance voting.

What Is The MATIC Network?

The MATIC network refers to the initial name of the Polygon network (rebranded in February 2021).

What Is The MATIC Token?

The MATIC token is the native cryptocurrency of the Polygon network, used to facilitate transactions, secure the network through staking, and enable community governance through voting.

What Is Polygon Chain?

The Polygon chain is a blockchain that operates in parallel to the Ethereum main chain. It aims to provide faster and cheaper transactions while still maintaining a high degree of security and interoperability with Ethereum.

What Is Polygon Coin Used For?

Users utilize the Polygon coin, or MATIC, to pay transaction fees on the network, participate in the proof-of-stake consensus mechanism, and engage in governance through voting on network upgrades and proposals.

What is Polygon Web3?

Polygon Web3 refers to the third generation of internet services for websites and applications built on the Polygon blockchain, focusing on decentralized protocols and providing a distributed environment for Web3 applications.

What Is Polygon Worth?

The worth of Polygon, in the context of market capitalization, is the total value of all the MATIC tokens in circulation. This value fluctuates based on the current market price of MATIC.

What Is The Current Price Of MATIC?

You can check the current price of MATIC, which varies, in real-time on various cryptocurrency exchanges or financial data platforms.

What Network Does MATIC Use? What Network Is Polygon On?

MATIC operates on the Polygon network, a layer two scaling solution built atop the Ethereum blockchain. This network aims to support scalable blockchain infrastructure and operates in tandem with Ethereum.

What Type Of Coin Is MATIC?

MATIC, a type of digital currency known as a cryptocurrency, serves as a utility token specifically designed for the Polygon network. Within its ecosystem, it facilitates transactions, staking, and governance.

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Few names have sparked as much intrigue and controversy as Do Kwon (sometimes called Kwon Do). From the meteoric rise of Terra Luna to its sudden and tumultuous downfall, Do Kwon has become a figure of significant interest and speculation.

In this comprehensive exploration, we delve into the journey of Terra Luna’s Do Kwon, the mastermind behind one of the most talked-about projects in the crypto world. We’ll uncover the latest Do Kwon news that has kept the crypto community on its toes, analyze the Do Kwon net worth, and shed light into the future of Terra Luna without its founder.

Who is Do Kwon?

Do Kwon, whose full name is Kwon Do-hyung, is a South Korean crypto entrepreneur renowned as the co-founder and CEO of Terraform Labs. Born on September 6, 1991, in Seoul, South Korea, he has become a prominent figure in the cryptocurrency industry.

Kwon Do-hyung’s early education took place at Daewon Foreign Language High School in Seoul, one of South Korea’s most prestigious private schools. Furthermore, his academic journey led him to Stanford University in the United States, where he pursued a degree in computer science, laying the groundwork for his future endeavors in the tech and crypto industries.

Tracing The Origins: The Path To Crypto Fame

After graduating from Stanford in 2015, Kwon Do-hyung returned to South Korea in 2016 and founded Anyfi, a connectivity solutions startup. Anyfi, which focused on a peer-to-peer Wi-Fi mesh network, was Do.Kwon’s initial foray into the tech startup world.

However, his interest soon pivoted to the then-nascent crypto market. After identifying a lack of robust crypto payment networks, he co-authored a white paper with Nicholas Platias, advocating for a decentralized payment system powered by a stablecoin to facilitate cryptocurrency payments and provide a medium of exchange with reduced volatility.

The Beginnings Of Terra Luna

This white paper caught the attention of Daniel Shin (whose full name is Shin Hyun-seung), a seasoned South Korean tech entrepreneur experienced in online payment systems. Afterwards, in 2018, Kwon Do-hyung and Hyun-seung co-founded Terraform Labs, leading to the development of the Terra (LUNA) cryptocurrency.

Terraform Labs introduced TerraUSD (UST), an algorithmic stablecoin pegged to the US dollar, in September 2020. The stability mechanism of UST, backed by the LUNA token, was a novel approach in the crypto world but ultimately led to the collapse of both cryptocurrencies in May 2022. But more on that later.

The Rise And Fall Of Terra Luna And Do Kwon

The story of Terra Luna and its co-founder Kwon Do-hyung is a tale of rapid ascension and dramatic downfall in the volatile world of cryptocurrency. It’s a narrative that encapsulates the inherent risks and potential of innovative financial technologies, and the fine line between genius and overreach.

Do Kwon Crypto Achievements

Do Kwon, as the co-founder of Terraform Labs, significantly impacted the cryptocurrency sector with the introduction of Terra Luna. Terraform Labs, under Kwon Do-hyung’s leadership, innovated in the realm of stablecoins, aiming to solve the problem of volatility in the crypto market.

Terra Luna’s unique selling point was its dual-token system: the native LUNA token and the TerraUSD (UST) stablecoin. UST was designed as an algorithmic stablecoin, an ambitious attempt to maintain a stable value relative to the US dollar without the need for traditional fiat collateral.

Do Kwon Luna: Triumphs And Trials

Terra Luna’s ecosystem experienced rapid growth and success, particularly with the popularity of its Anchor Protocol, which promised high yields on UST deposits. This contributed to a significant increase in LUNA’s value, as the protocol’s design required LUNA to be burned to mint UST, thereby reducing LUNA’s supply and increasing its price. However, the success of Terra Luna and its algorithmic stablecoin also brought increased scrutiny and challenges, especially concerning the sustainability and resilience of its stabilization mechanism.

Do Kwon Terra’s Downfall

The downfall of Terra Luna began with the destabilization of UST. Unlike traditional stablecoins backed by fiat or physical assets, UST’s stability was algorithmically linked to LUNA. To bolster confidence and add an additional layer of stability to UST, Terraform Labs amassed a significant reserve of Bitcoin. The idea was that these Bitcoin reserves could be liquidated to defend the UST peg in times of stress.

At its peak, the Luna Foundation Guard (LFG), established to manage these reserves, held over $3 billion in Bitcoin. However, when UST began to lose its peg due to massive sell-offs in May 2022, this triggered a series of events that led to the liquidation of these Bitcoin reserves. The sale of such a large amount of Bitcoin in a short period contributed to a crash in the crypto market.

This strategy of using Bitcoin as a reserve asset for an algorithmic stablecoin was unprecedented and, in this instance, ultimately proved ineffective. The rapid devaluation of UST and LUNA, coupled with the liquidation of Bitcoin reserves, not only led to the collapse of Terra Luna’s ecosystem but also sent shockwaves through the entire cryptocurrency market, eroding billions in market capitalization and investor confidence. The Terra Luna crisis highlighted the risks of algorithmic stablecoins and the complexities of using volatile assets like Bitcoin as a backing mechanism in times of market stress.

Do Kwon Net Worth

The financial trajectory of Kwon Do-hyung, marked by both remarkable successes and significant setbacks, paints a complex picture of his net worth.

The Wealth Rollercoaster: Do Kwon Net Worth

The Do Kwon net worth has been a subject of intense interest, especially in the wake of the Terra Luna collapse. At the peak of Terra Luna’s success, Do Kwon’s net worth was speculated to be in the billions, given the high valuation of the LUNA token and the Terra ecosystem. In April 2022, LUNA’s value soared, and the Terra ecosystem reached a staggering $60 billion valuation, significantly boosting the Do Kwon net worth.

However, this fortune was short-lived. Following the dramatic collapse of Terra Luna in May 2022, the Do Kwon net worth plummeted alongside the value of LUNA and UST. By July 2023, estimates placed his net worth at around $135 million, a substantial decrease from his peak wealth. Accordingly, this decline was primarily due to the obliteration of the Terra ecosystem, which significantly eroded the value of his holdings in LUNA and related crypto assets.

However, it’s important to note that the exact extent of Kwon’s current wealth, especially in liquid assets, remains somewhat opaque. His involvement in other blockchain projects and potential holdings in various cryptocurrencies may contribute to his overall financial portfolio.

Do Kwon News: The Latest Developments

Do Kwon’s situation has evolved rapidly, with significant developments unfolding after the Terra Luna collapse. As of the latest updates, Kwon Do-hyung faced legal challenges from multiple jurisdictions, including the United States and South Korea. In September 2022, a South Korean court issued an arrest warrant for Do Kwon, along with other individuals associated with Terra, on charges related to the collapse of the cryptocurrency.

Following the issuance of an Interpol Red Notice, Kwon Do-hyung was reported to have moved from Singapore and was believed to be in Serbia, before fleeing to Balkan state Montenegro. South Korean and US authorities continued their pursuit, seeking his extradition to face various charges, including securities fraud.

Do Kwon News In 2023

In February 2023, the US Securities and Exchange Commission (SEC) charged Kwon and Terraform Labs with securities fraud, alleging the creation of a fraudulent scheme that led to substantial investor losses. Afterwards, Do Kwon’s legal representatives contested these charges, challenging the SEC’s claims and its characterization of LUNA and other tokens as securities.

Authorities arrested Kwon in Montenegro on March 23, 2023, as he prepared to board a private jet to Dubai with falsified documents. Subsequently, a Montenegrin court sentenced him to four months in jail for document forgery, involving multiple passports and identity cards. This Do Kwon news followed an international search initiated by South Korean authorities, with both South Korea and the US seeking extradition related to Terra Luna’s collapse.

In June 2023, the High Court in Podgorica confirmed that the Terra Luna founder would be held in “extradition custody” for a six-month period pending the review of South Korea’s extradition request.

The Future Outlook For Do Kwon And Terra Luna

Uncertainty and complexity shroud the future outlook for Do Kwon and the Terra Luna project. For Kwon, the immediate focus is on the legal challenges he faces. Furthermore, his extradition and the outcomes of the trials will significantly influence his personal and professional future.

As for Terra Luna, its future hinges on restoring investor confidence and demonstrating the viability of its revamped ecosystem, Terra 2.0. Furthermore, the effectiveness of Terra 2.0 and its ability to attract new users and developers will be critical in determining the project’s long-term viability. However, as of November 7, the Terra Luna Classic (LUNC) price was on the verge of a breakout from a multi-month downtrend channel.

FAQ

What Is The Current Do Kwon Net Worth?

As of July 2023, estimates place the Do Kwon net worth at around $135 million, marking a significant decrease from its peak during the height of Terra Luna’s success.

Who Is Do Kwon?

Do Kwon (whose full name is Kwon Do-hyung) is a South Korean entrepreneur, the co-founder, and CEO of Terraform Labs, known for creating the Terra Luna cryptocurrency ecosystem.

How Has Do Kwon News Affected Terra Luna’s Stability?

The Do Kwon news, especially regarding legal challenges and his arrest, has negatively impacted Terra Luna’s stability, eroding investor confidence and raising concerns about the project’s future.

What Was Do Kwon Luna’s Strategy For Crypto?

Kwon’s strategy involved creating a stablecoin ecosystem with an algorithmic approach, aiming to reduce crypto market volatility and promote wider adoption of digital currencies.

What Are the Implications Of Do Kwon Stanford Education On His Career?

Kwon’s Stanford education provided a strong foundation in computer science and a network of peers and mentors, instrumental in his foray into the tech and crypto industries.

What’s The Latest Do Kwon News And Terra Luna?

The latest Do Kwon news include his arrest in Montenegro in March 2023 for document forgery and ongoing legal proceedings involving his extradition to face charges related to the Terra Luna collapse.

What Was Do Kwon’s Vision For Terra Luna?

Kwon envisioned Terra Luna as a blockchain platform that would revolutionize digital finance by offering a stable and scalable cryptocurrency, thereby addressing the limitations of traditional cryptocurrencies.

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Crypto analyst JD has once again commented on XRP making a “parabolic” move. This time around, he has identified exactly what needs to happen for the crypto token to enjoy a significant rally. 

All Eyes On The MACD

In a post shared on his X (formerly Twitter) platform, JD highlighted the MACD (Moving Average Convergence Divergence) as the trigger for the crypto to enjoy a significant rally. He noted how XRP went “parabolic” the last time the MACD crossed the 0 level. According to him, that hasn’t happened this time, but the market seems very close to that level. 

JD shared an accompanying chart to elucidate his point. From the chart, one could see that XRP enjoyed a 650x gain the last time the MACD crossed 0. This significant breakout, which came in 2017, happened after a 4-year trendline that dated back to 2014. 

This time, the coin has consolidated for a longer period as he highlighted an 8-year trendline that dates back to 2017. He expects the market to instantly become bullish if there can be a breakout from that trendline. For now, JD believes that a bullish cross is still in play despite the fact that the MACD is below 0. 

In response to his post, another X user stated that “it’s game over” once XRP crosses the $0.92 price level. JD seemed to agree as he stated that it was going to happen. Meanwhile, the crypto analyst has remained cautious about giving a prediction as to what price level XRP could hit. However, from the chart he shared, XRP could rise to as high as $15, taking a cue from 2017.

We break that 0.92 level and it’s game over.

— Nick | Crypto Crusader (@NCashOfficial) December 2, 2023

Between XRP And Bitcoin

Crypto analyst Egrag Crypto has also given his view on the future trajectory of XRP in relation to Bitcoin. He spoke about a “Helheim Gate Way” scenario and how Bitcoin’s price could affect XRP’s. He said BTC surging to the 48k-50k range might exert pressure on XRP, causing it to decline against the flagship cryptocurrency. 

In this scenario, XRP’s decline is a result of Bitcoin apparently absorbing substantial liquidity, driving the latter’s dominance higher. However, things could turn out differently if XRP decides to “decouple and carve its unique path.”

Although this projection doesn’t seem favorable for XRP, Egrag noted that it could still be “remarkably bullish.” The reason is that liquidity could flow back “aggressively and abruptly” to altcoins like XRP once Bitcoin releases all the absorbed funds. Crypto analyst CrediBULL Crypto has once mentioned something in this regard. 

He stated that XRP’s price could decline in the short term as Bitcoin continues to enjoy a parabolic rise. He, however, mentioned that XRP will be one of the biggest benefactors once there is an “influx of new money.”

Featured image from iStock

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Despite Bitcoin being up over 100% year-to-date (YTD), a recent report shows that this hasn’t necessarily translated to profits for the network’s miners. Instead, these miners seem to be experiencing a downturn in their revenue even as the Bitcoin Halving looms. 

Bitcoin Miners’ Revenue Down By Over 30%

According to a report by BanklessTimes, the revenue of these miners is down by over 30% in the past six months. Interestingly, these miners had their most profitable month when Bitcoin’s price was just picking up at the beginning of the year. Their revenue soared to as high as $918.8 million in January.

In the months after that, there was a significant decrease in the revenue earned. Things began to pick up again in October, as that month represented their second-highest monthly earnings of 2023. 

They are reported to have earned $885 million in that period. However, the downward trend resurfaced in November as these miners saw a drop in their revenue once again. The total earned in that month stood at $615.1 million. 

Commenting on this data, BanklessTimes crypto expert Alice Leetham noted how this has become a cause for concern. This brought about the need to analyze factors that may be contributing to this downward trend. 

Factors Contributing To The Trend

The volatile nature of Bitcoin prices has been singled out as the most obvious factor affecting miners’ revenue. Bitcoin’s failure to meet certain price projections has directly impacted the profitability of mining projections. 

There is the likelihood that certain miners doubled down on their operations in hopes that the crypto token will hit certain milestones, and that hasn’t happened. 

Bitcoin mining difficulty adjustment is said to be another factor for this downward trend. Mining difficulty becomes higher as more miners enter the network. This ultimately leads to a decrease in miners’ revenue as more persons are competing to mine a block. Bitcoin’s popularity hasn’t helped in this regard, as the network continues to attract an increasing number of miners. 

Meanwhile, there is also the Bitcoin Halving event, which will be playing in the minds of these miners. This is when miners’ rewards are cut in half. The next one is scheduled for April 2024. With this downward trend and the halving on the way, it isn’t surprising that these miners are looking to diversify their operations. 

BanklessTimes, however, believes that things could start looking up once again for these miners. They highlighted the ongoing advancements and increasing acceptance of Bitcoin as factors that might help “counterbalance these difficulties.”

Featured image from Shutterstock

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Altcoins, or alternative cryptocurrencies, have become a buzzword in the digital currency landscape, offering a world beyond Bitcoin (BTC). This guide explores the essence of altcoins, answering the pivotal question: What are altcoins? From the historical rise of altcoins to the exciting phenomenon of altcoin season, we delve into the intricacies that define this dynamic market.

What Are Altcoins? Understanding The Basics

Altcoins, short for “alternative coins,” encompass a diverse range of cryptocurrencies that have emerged following the success of Bitcoin. They are not simply imitations of Bitcoin but represent a broad spectrum of digital currencies with unique attributes, purposes, and technological innovations.

Characteristics Of Altcoins

Each altcoin is distinguished by its unique blockchain technology and consensus mechanism. For instance, Ethereum, one of the most prominent altcoins, utilizes a Proof-of-Stake (PoS) consensus mechanism, which is less energy-intensive compared to Bitcoin’s Proof-of-Work (PoW) system.

XRP operates on a consensus protocol known as the Ripple Protocol Consensus Algorithm, designed for high-speed and energy-efficient transactions. Cardano employs the Ouroboros PoS algorithm, acclaimed for its security and scalability. These varying consensus mechanisms reflect the diverse goals and technological advancements of altcoins, ranging from enhancing transaction efficiency to ensuring greater security and sustainability.

Altcoins also vary significantly in their market capitalization, liquidity, community support, and real-world applications. For example, Litecoin, often referred to as the silver to Bitcoin’s gold, offers faster transaction confirmation times, making it suitable for smaller, everyday transactions. Meanwhile, Binance Coin (BNB) is intricately linked to the Binance exchange ecosystem, providing utility within that specific platform.

Differences Between Altcoins And Bitcoin

One of the stark contrasts between Bitcoin and many altcoins is their development and governance structure. Bitcoin, created by the pseudonymous Satoshi Nakamoto, who has since left the project in December 2010, operates in a decentralized and open-source manner without a central authority.

In contrast, many altcoins have identifiable founding teams or organizations overseeing their development. For example, Ethereum is backed by the Ethereum Foundation, Solana is developed by Solana Labs, and Cardano is spearheaded by IOG (Input Output Global).

Another key difference lies in their transaction speeds and capabilities. Bitcoin, primarily designed as a digital store of value and medium of exchange, processes transactions approximately every 10 minutes. In contrast, altcoins like Ripple’s XRP have a much-shorter block time and can process transactions in seconds, making it a preferred choice for cross-border money transfers. Ethereum, with its smart contract functionality, enables a wide range of decentralized applications (dapps) beyond simple monetary transactions.

Furthermore, while Bitcoin’s maximum supply is capped at 21 million coins, altcoins have varied approaches to supply. For example, Ethereum initially had no cap. With the introduction of EIP-1559, Ethereum developers have introduced a mechanism that burns a portion of the supply with each transaction, potentially making its supply deflationary over time. XRP – like many other altcoins – was premined and has a capped total supply of 100 billion XRP.

The Rise Of Altcoins: A History

The history of altcoins is a captivating narrative of innovation, market dynamics, and the continuous pursuit of refining digital currency technology. Since the inception of Bitcoin, the first decentralized cryptocurrency, there has been a surge in the creation of alternative cryptocurrencies, each seeking to address perceived limitations of Bitcoin or to introduce new features and use cases.

The First Altcoins Gaining Traction

The journey of altcoins began soon after the establishment of Bitcoin, with the creation of Namecoin in April 2011. Namecoin aimed to decentralize domain-name registration, making internet censorship more difficult.
Following Namecoin, Litecoin was launched in October 2011, envisioned as the “silver” to Bitcoin’s “gold.” Litecoin offered faster transaction confirmation times and a different hashing algorithm (Scrypt).

Following these, another notable early altcoin included Peercoin, introduced in 2012, which was the first to implement a Proof-of-Stake/Proof-of-Work hybrid system. Another significant early player was XRP which was created in 2012. The XRP Ledger was launched in June 2012 by the founders of Ripple Labs, including Chris Larsen and Jed McCaleb. Shortly after that, Dogecoin was launched in December 2013, initially created as a light-hearted take on cryptocurrency.

Remarkably, not all early altcoins sustained their momentum. Many, like Feathercoin and Terracoin, which gained attention initially, saw their influence wane over the years. These coins, while innovative in their time, couldn’t keep up with the rapidly evolving cryptocurrency market or build a lasting community and development ecosystem.

Evolution Of The Altcoin Market

The altcoin market has evolved significantly over the years, expanding beyond simple variations of Bitcoin’s technology. The introduction of Ethereum in 2015 was a watershed moment. Ethereum’s innovation was not just in creating a new cryptocurrency but in introducing a platform for decentralized applications (dApps) through smart contracts.

This breakthrough opened the doors for a new era of blockchain technology, where altcoins could serve various purposes beyond mere currency, from powering decentralized finance (DeFi) to non-fungible tokens (NFTs). The market saw an influx of diverse altcoins based on Ethereum, each catering to specific niches and use cases.

Key Milestones In Altcoin History

Several key milestones mark the history of altcoins. The Initial Coin Offering (ICO) boom in 2017 was one such significant event. ICOs became a popular method for new cryptocurrency projects to raise funds, leading to the launch of thousands of new altcoins. However, this period also saw increased regulatory scrutiny and instances of fraud, leading to a more cautious market approach.

Another major development was the rise of DeFi in 2020, where altcoins played a central role in enabling decentralized lending, borrowing, and trading, independent of traditional financial institutions. This era also witnessed the surge in popularity of NFTs, with altcoins like Ethereum being at the forefront of this new digital asset class. These milestones highlight the dynamic nature of the altcoin market, continuously shaped by technological advancements and shifting market sentiments.

Top Altcoins To Watch

As the crypto market continues to evolve, a number of altcoins have risen to prominence, each offering unique advantages and innovations. This section highlights some of the top altcoins that have captured the market’s attention due to their technological advancements, community support, and potential for future growth.

Overview of Top Altcoins

Ethereum (ETH): Often regarded as the leading altcoin, Ethereum is renowned for its smart contract functionality, which has paved the way for decentralized applications (dApps) and decentralized finance (DeFi) ecosystems.
Solana (SOL): Solana has gained popularity for its incredibly fast and low-cost transactions, leveraging a unique combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms.
XRP: Despite legal challenges in the United States, Ripple has established itself and the XRP token as a significant player, primarily for its use in fast and efficient cross-border money transfers.
Binance Coin (BNB): Originally created as a utility token for the Binance cryptocurrency exchange, BNB has expanded its use cases to include transaction fee discounts, token sales, and more within the Binance ecosystem.
Cardano (ADA): Known for its strong focus on sustainability and scientific philosophy, Cardano offers a third-generation blockchain that promises more scalability and security through its unique Ouroboros proof-of-stake algorithm.
Polkadot (DOT): Polkadot stands out for its interoperability, enabling different blockchains to transfer messages and value in a trust-free fashion; it’s also scalable and customizable.

These are just a few examples of the numerous altcoins in the market, each contributing to the diverse landscape of cryptocurrency in their unique ways.

Features That Make Altcoins Stand Out

Altcoins distinguish themselves through various features that cater to specific needs and use cases:

Smart Contract Capabilities: Ethereum’s introduction of smart contracts revolutionized the blockchain space, enabling the creation of complex, programmable transactions and applications.
Scalability And Speed: Altcoins like Solana and Cardano have focused on solving scalability issues, offering faster transaction speeds and lower fees compared to older blockchain networks like Bitcoin and Ethereum.
Interoperability: Projects like Polkadot and Cosmos address the issue of blockchain interoperability, allowing different networks to communicate and exchange information seamlessly.
Niche Applications: Some altcoins target specific sectors or use cases, such as Chainlink’s focus on providing real-world data to blockchain networks through oracles, or Monero’s emphasis on privacy and anonymity.

What Is Altcoin Season?

Altcoin season or “altseason” is a term that describes a period in the crypto market when altcoins significantly outperform Bitcoin. It’s a phase where investors’ appetite for riskier assets grows, and capital flows from Bitcoin into altcoins, often resulting in substantial price surges for these alternative coins. Understanding when an altcoin season is on the horizon can be crucial for cryptocurrency traders and investors looking to capitalize on market trends.

Indicators Of An Upcoming Altcoin Season

A key indicator of an impending altcoin season can be the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total cryptocurrency market capitalization contributed by Bitcoin. Technical analysts scrutinize this chart for signs of decreasing dominance, which may suggest that altcoins are starting to take up a larger share of the market.

Support and resistance levels on this chart can indicate potential shifts in market dynamics. For instance, a sustained fall below a major support level could signal the beginning of altcoin season.

Remarkably, the market often moves in cycles which can be broken down into four distinct phases, as illustrated in the image provided by crypto analyst Ted (@tedtalksmacro):

Phase 1: Bitcoin – The cycle often starts with Bitcoin’s price surging as money flows into Bitcoin, causing significant price increases.
Phase 2: Ethereum – Money begins to flow into Ethereum, which might struggle to keep up initially but then starts to outperform Bitcoin, leading to discussions about ‘the flippening’ (where Ethereum’s market cap could surpass Bitcoin’s).
Phase 3: Large Caps – As Ethereum starts outperforming Bitcoin, investors begin to venture into large-cap altcoins, which then start to see large buy-ups and price increases.
Phase 4: “Altseason” – In this final phase, enthusiasm spreads across the market; large caps have gone full vertical, and attention turns to mid and small-cap altcoins. All categories, regardless of fundamentals, tend to pump around the same time, leading to a parabolic increase in altcoin prices. This phase is marked by high levels of excitement and media attention.

How to Buy Altcoins: A Step-by-Step Guide

Purchasing altcoins can seem daunting for newcomers to the cryptocurrency space, but by following a clear step-by-step process, it can be straightforward and secure. Here’s a simplified guide to help you through the process:
Research: Before anything else, conduct thorough research to determine which altcoins align with your investment goals and risk tolerance.

Choose A Wallet: Select a digital wallet that supports the altcoin you wish to purchase. Wallets can be software-based (like mobile or desktop applications) or hardware-based for added security.
Select A Cryptocurrency Exchange: Choose an altcoin exchange that lists the altcoin you’re interested in and is known for its reliability, security, and ease of use.
Register And Secure Your Account: Create an account on the chosen exchange and set up strong authentication measures, including two-factor authentication (2FA).
Fund Your Account: Deposit funds into your exchange account. This can often be done via bank transfer, credit card, or by depositing other cryptocurrencies.
Place An Order: Navigate to the market or trading pair for your chosen altcoin and place a buy order. You can opt for a market order for an immediate purchase at current prices or a limit order to specify a price at which you’re willing to buy.
Store Your Altcoins Securely: After the purchase, transfer your altcoins to your personal wallet for safekeeping, especially if you’re planning on holding them for the long term.

Where to Buy Altcoins

You can purchase altcoins on a variety of platforms, each offering its own set of features, fees, and security measures. Here are some of the most common places where you can buy altcoins:

Centralized Exchanges: These are the most common platforms for buying altcoins and include well-known exchanges like Binance, Coinbase, and Kraken. They offer a wide range of altcoins and are typically user-friendly.
Decentralized Exchanges (DEXs): DEXs like Uniswap and SushiSwap allow for peer-to-peer transactions without the need for an intermediary. They offer a higher degree of privacy and direct wallet-to-wallet trades.
Cryptocurrency Brokers: Platforms like eToro and Robinhood act as brokers, offering an easy entry point for buying cryptocurrencies. However, they may have a more limited selection of altcoins compared to dedicated exchanges.
Peer-to-Peer (P2P) Platforms: Websites like OKX P2P or Remitano connect buyers and sellers directly. While they offer flexibility in payment methods, they require a higher degree of trust between parties.

When choosing where to buy altcoins, consider factors such as security, fees, the variety of available altcoins, and the user experience of the platform. Always ensure that the platform you choose complies with the regulatory standards in your jurisdiction.

Are Altcoins A Good Investment?

The question of whether altcoins are a good investment depends on various factors, including market conditions, the specific altcoin’s potential for growth, and the investor’s risk tolerance and investment strategy.

Pros Of Investing In Altcoins:

High Growth Potential: Some altcoins have shown the capacity for high returns on investment, outperforming traditional assets in their best periods.
Diversification: Altcoins can diversify an investment portfolio, potentially reducing risk by spreading exposure across different asset classes.
Innovation: Investing in altcoins can be a way to support and be part of innovative blockchain projects that may transform various industries.

Cons Of Investing In Altcoins:

Volatility: Altcoins can be highly volatile, with the potential for significant price swings that can lead to substantial gains or losses.
Market Maturity: Compared to more established markets, the cryptocurrency market is relatively young and can be unpredictable.
Regulatory Uncertainty: Altcoins face regulatory challenges that can impact their value and legality.
Investors considering altcoins should conduct thorough research, understand the risks involved, and consider speaking with a financial advisor. Investment decisions should be based on an individual’s financial situation, investment objectives, and risk tolerance.

Are Altcoins Dead Or Thriving?

The altcoin market is a diverse ecosystem with a wide range of projects boasting various levels of innovation, utility, and community support. Similar to the early days of the internet which led to the Dot-Com bubble, the cryptocurrency space is experiencing its own form of natural selection where not all projects will survive in the long term.

The Reality Of Altcoin Longevity:

Oversaturation: The market has seen an explosion of altcoins, with thousands currently in existence. Many of these coins serve similar functions or aim to solve the same problems, leading to an oversaturated market where only the strongest or most unique can survive.
User And Company Adoption: For an altcoin to thrive, it must gain widespread adoption among users and businesses. However, with so many options available, not every altcoin will achieve the necessary adoption rate to sustain its network.
Innovation And Continuous Development: The technology underlying altcoins is rapidly evolving. Projects that fail to innovate or adapt to new advancements are likely to fall behind and eventually become obsolete.

Survival Of The Fittest:

The ‘Amazon’ Of Altcoins: There will be altcoins that manage to carve out a niche for themselves and become integral to the crypto economy, much like Amazon did for e-commerce. These projects typically have strong fundamentals, clear use cases, active development teams, and robust community support.
The ‘Pets.com’ Of Altcoins: Conversely, some altcoins will fade into obscurity, similar to the fate of Pets.com and other failed Dot-Com ventures. Reasons for this include poor management, lack of clear use cases, failure to deliver on promises, or simply the inability to compete with more successful projects.

Market Dynamics And Speculation:

Speculative Bubbles: The altcoin market is not immune to hype and speculation, which can lead to bubbles. Projects that rise rapidly on speculation rather than solid fundamentals are at risk of crashing just as quickly.
Regulatory Challenges: Authorities are still defining the regulatory landscape for cryptocurrencies. Altcoins that fall foul of future regulations or fail to navigate the complex legal environment may face challenges that could impede their growth or lead to their demise.

In conclusion, while the altcoin market as a whole shows signs of thriving, with continuous innovation and increasing integration into the broader financial system, it’s clear that not every altcoin will survive the test of time. Investors should be discerning, focusing on projects with solid fundamentals, active development, and real-world utility to identify those with the potential to succeed in the long term.

FAQ

What Are Altcoins?

Altcoins, short for “alternative coins,” are cryptocurrencies other than Bitcoin.

Who Is Altcoin Daily?

Twin brothers Aaron and Austin Arnold founded Altcoin Daily, a prominent cryptocurrency YouTube channel. With over 1.34 million followers, it covers daily updates on Bitcoin, altcoins, NFTs, and more.

What Is Altcoin Alert?

Altcoin Alert refers to a software and service that tracks and analyzes sentiment on a large scale in the cryptocurrency market. It predicts coin prices based on extensive data.

How Many Altcoins Are There?

The number of altcoins constantly changes with the creation of new ones and the obsolescence of others. As of the last known count, there are ten thousands of altcoins, each with its own value proposition and community, but also a lot of scam projects.

Are Altcoins Worth Investing In?

Altcoins can be worth investing in, but they carry their own sets of risks and potential rewards. Their worth as an investment will depend on individual risk tolerance, market research, and investment goals.

Can You Short Altcoins?

Yes, it is possible to short altcoins on many cryptocurrency exchanges. In short selling, an investor borrows a cryptocurrency and sells it on the market, anticipating a decrease in its price.

How Do Altcoins Work?

Altcoins work using blockchain technology, which is a decentralized ledger that records all transactions across a network of computers. Many alternative cryptocurrencies have different features and operate on various consensus mechanisms, such as Proof of Work, Proof of Stake, or others.

How Are Altcoins Created?

Creating altcoins often involves forking from an existing blockchain or developing a new blockchain and its underlying technology from scratch. The process includes designing the coin’s protocol, creating its blockchain, and launching it for public use.

What Is An Altcoin?

An altcoin is any cryptocurrency other than Bitcoin. The term “altcoin” encompasses a broad range of cryptocurrencies with various functions and underlying technologies.

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As the year draws to a close, cryptocurrency enthusiasts are eagerly anticipating a potential boom in the market, especially for the top 5 cryptos we have examined below, with December poised to be a pivotal month for digital assets.

Among the myriad of cryptocurrencies, five stand out as prime candidates for a major price explosion. Cardano (ADA), Celestia (TIA), THORchain (RUNE), Terra Classic (LUNC), and the perennial giant Bitcoin (BTC) have captured the attention of investors and analysts alike.

With unique features, strong fundamentals, and a buzz of anticipation surrounding them, these top-tier cryptos are positioned to make significant moves in the coming weeks, potentially reshaping the landscape of the crypto market.

Top 5 Cryptos Set To Rally This December

Bitcoin (BTC)

Bitcoin is moving rapidly in the direction of the $40,000 mark. The potential approval of a Bitcoin ETF by the Securities and Exchange Commission is one of the many variables driving the price of bitcoin.

In the 24 hours leading up to early Friday morning, the price of bitcoin increased 3.2%, reaching approximately $38,856, according to statistics provided by price tracker Coingecko. Coincodex has a more bullish prediction for Bitcoin, seeing the crypto hitting $58K in the coming month.

Source: Coincodex

Analysts such as CryptosRUs anticipate that Bitcoin will soon reach $40,000 and even more, pointing to the impending halving event and possible approvals for ETFs as major catalysts.

Cardano (ADA)

As November came to an end, Cardano (ADA) saw a 30% increase in price, marking its second consecutive month-over-month gain. Around the present rates, bullish traders have actively placed orders to buy an additional 41.7 million units of the coin, greatly outnumbering sell orders.

According to cryptocurrency expert Crypto, ADA can surpass the $0.90 threshold in less than six months. The primary cause is the explosive growth of decentralized banking apps on Cardano, with a $250 million increase in total locked value over the previous year from $50 million.

#Cardano sits at a key demand zone between $0.37 and $0.38. Here, 166,470 wallets acquired 4.88 billion $ADA.

With minimal resistance ahead and solid support below, remaining above this zone could pave the way for $ADA to climb to new yearly highs. Still, watch out, as losing… pic.twitter.com/GDjhspFSVr

— Ali (@ali_charts) November 27, 2023

Analyst Ali Martinez projected in November 2023 that ADA would reach annual highs, which would be advantageous for the coin’s prospects in 2024.

Celestia (TIA)

Because Celestia (TIA) is the industry’s first modular blockchain network and has huge future potential, market experts believe it will be a worthwhile investment in 2023.

The price behavior of Celestia (TIA) shows a bullish pattern, with local support at $6.20 and resistance at $7.27. Following the breakdown of the resistance, experts predict a possible rally toward $8.

Bulls claim that TIA may rise as high as $9.70 by the end of 2023, despite the fact that the Celestia mainnet went live on October 31.

Crypto Year-End Rally

THORChain (RUNE)

The value of THORChain (RUNE) increased from $3.76 last week to $6.35 by the end of November, a 70% increase driven by the rise of THORChain as the second-largest decentralized exchange.

Overall, the coin’s mood is still positive. Forecasts for the end of 2023 indicate that there may be a peak at $10.2, with crucial support levels between $3.4 and $4 being essential to maintaining this development trajectory.

The price of THORChain (RUNE), a decentralized liquidity protocol token, is continuing to rise, exhibiting a bullish bias in its trade.

Terra Classic (LUNC)

Completing our list of the top 5 cryptos for the weekend is the Terra Classic (LUNC). The past month has seen tremendous price action for LUNC; in just one day, the token has increased by over 22%, and over the course of the previous month, it has increased by almost 130%.

Following a significant price increase, traders are talking favorably about LUNC. After its recent collapse, sentiment analysts predict that the tokens will see a resurgence in value.

The cryptocurrency will most likely reach $0.001 by 2024 if the bullish trend for LUNC continues and additional ecosystem growth takes place, even though short-term price behavior is unpredictable.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

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In the last week, Bitcoin has garnered much attention, gaining 2.58 % in seven days, according to data from CoinMarketCap. During this time, the premier cryptocurrency has moved from trading around  $37,800 to almost breaching the $39,000 price mark. 

Following this positive price movement, Bitcoin has recorded some impressive metrics, which could bolster investors’ interest in the coming weeks.

Bitcoin Experiences Highest Profitability Level In Two Years

Via a Friday post on X, blockchain analytics firm IntoTheBlock reported that 81.35% of all Bitcoin holders are currently in profit. This marks the highest profitability level experienced by BTC investors since December 2021, when the token was valued at over $50,000.

BTC Profitability Reaches Highest Since December 2021!Over 80% of Bitcoin addresses are currently holding at a profit. This is the highest value since December 2021, when prices were above $50k per Bitcoinhttps://t.co/qWhryCeM0D pic.twitter.com/Dod0PuuWbF

— IntoTheBlock (@intotheblock) December 1, 2023

Interestingly, Bitcoin’s profitability is likely to go higher, with several factors indicating the market leader may soon cross into the $40,000 price zone. 

Firstly, there is currently a high level of optimism regarding the approval of a Bitcoin Spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). On Friday, Bloomberg analyst James Seyffart injected much hype into the crypto community as he predicted that this potential approval order would come between January 8 – January 10, 2024.

Therefore, in anticipation of the massive institutional demand a spot ETF could introduce to the BTC market, investors are likely to start increasing their Bitcoin holdings, which could result in a price boost in the following weeks. 

Furthermore,  the US Federal Reserve Chairman Jerome Powell has made statements suggesting that there would likely be no more rate hikes in the coming months. This development, if true, paves the way for Bitcoin, alongside other digital assets, to experience more price gains as increases in fed rate hikes are known to discourage investments in high-risk assets such as cryptocurrencies. 

However, despite these favorable indicators, it is worth stating that the crypto market remains subject to multiple forces, and all investors are advised to conduct proper research before engaging with the market.

Bitcoin Network Fees Slashed By 50%

In other positives for the BTC community, the Bitcoin network experienced a 50% decline in total fees in the last week. IntoTheBlock reports that this development was due to a drastic decline in ordinals-related transactions.

The Ordinals protocol, launched in January 2023, allows the creation of non-fungible tokens (NFTs) known as BRC-20 tokens on the Bitcoin network. Similar to the Ethereum network with its native NFTs, a high level of interest in Ordinals results in high network fees and vice versa. 

At the time of writing, Bitcoin trades at $38,758, with a 0.17% decline in the last hour. Meanwhile, the asset’s daily trading volume is up by 4.97% and is valued at $20.37 billion. 

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Maintaining its lofty position—the highest it has reached in the last 18 months—Bitcoin is once again on the edge of a potential price increase.

With a notable 10% gain over the previous month and more than a doubling of its value over the same period last year, the markets valued Bitcoin (BTC) at over $38,600 on Friday morning.

The alpha coin’s supporters credit its strong success thus far to the excitement around spot Bitcoin ETFs, like the one put up by BlackRock, which might be approved at any time.

During European morning hours on Friday, Bitcoin almost reached the coveted $40,000 mark, hitting $38,810 for the first time since May 2022. Expectations of increasing institutional demand have supported the increase, which is a continuation of a solid multi-month run.

Data from cryptocurrency market tracker Coingecko indicates that the coin is up approximately 2% on the day, and sustaining a 3% gain in the last seven days.

Expert Predictions For Bitcoin: What They Say

Experts are becoming increasingly fixated on the ETF, as approval of the product approaches. An important piece of information comes directly from Bloomberg analyst James Seyffart, who projects that the clearance date would occur between January 5 and January 10, 2024.

This projection follows a string of purposefully extended deadlines, indicating a concerted attempt by the SEC to accept several ETF applications at the same time.

Okay the window for potential spot #Bitcoin ETF approval is looking like its gonna be between Jan 5 & Jan 10 2024. I spoke with @thomasg_grizzle & @ScottW_Grizzle this morning and nailed this call. https://t.co/sOU950QlXj pic.twitter.com/y9JYdEpjNH

— James Seyffart (@JSeyff) November 30, 2023

Seyffart’s analysis focuses on the timelines for Hashdex and Franklin Templeton, suggesting that the timeline to green light all 12 spot Bitcoin ETF applications may coincide between January 5 and 10.

The founder and chief market strategist of NorthmanTrader, Sven Henrich, offered his predictions for the present and future of the Bitcoin market. He examined short-term forecasts, the structural soundness of the market, and made comparisons with past market patterns.

Henrich projected a possible shift to between $41,000 and $43,000, especially as the year came to a finish. He did, however, stress the need for caution because of the cryptocurrency’s association with more general market trends, particularly in the tech industry.

Mike Novogratz, a well-known businessman and cryptocurrency advocate, expressed unrelenting optimism about the trajectory of Bitcoin and attributed his positive perspective to the much anticipated approval of a spot Bitcoin ETF.

Is $41K The Next Stop For Bitcoin?

Novogratz thinks that Bitcoin’s value will go through the roof if big financial entities like BlackRock and Fidelity start to use it, which will cause its price to reach all-time highs.

The bitcoin community is growing increasingly optimistic that the price of the cryptocurrency may rise to $41,000 in the next few days as it approaches the $40,000 threshold. Because of the market’s volatility, traders are constantly on the lookout for the next move.

It is unclear if Bitcoin will run into resistance or continue on its current upward trend. By constantly observing price charts and market indicators, investors prepare themselves for the dynamics of the market as they develop.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

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The shares of Coinbase Global (COIN) have been on a tear in recent weeks, emphasizing its positive performance in 2023. While the recent resurgence experienced by the exchange’s shares coincides with the climate shift in the general cryptocurrency market, the latest price data reveals that COIN might actually be doing better than the market leaders, Bitcoin and Ethereum, since the turn of the year.

Here’s Why Coinbase (COIN) Is Up By 250% In 2023

A recent report by crypto intelligence platform IntoTheBlock has revealed that COIN is amongst the crypto-related stocks enjoying the overall positive trend in the cryptocurrency space. This positive momentum recently pushed the price of the Nasdaq-listed Coinbase stock to an 18-month high of around $115.

$COIN is up by approximately 250% this year, outpacing Bitcoin and Ether’s growth of 130% and 75%, respectively. One key factor driving Coinbase’s valuation is its trading volumes, with Q4 volumes already surpassing their figures for the last quarter with one month to go pic.twitter.com/71yl38jyeK

— IntoTheBlock (@intotheblock) December 1, 2023

According to data from IntoTheBlock, the COIN shares have surged in value by more than 60% in the past three months. A look at the broader price chart shows that the stock has increased by approximately 250% year-to-date (YTD), outperforming Bitcoin’s and Ether’s YTD upswing of 130% and 75%, respectively.

In their report, the crypto analytics firm highlighted that one of the crucial factors behind Coinbase’s increasing valuation is likely to be its trading volumes. Notably, the company’s trading volumes in the fourth quarter have already surpassed the figures recorded in the third quarter, even though there is still December to go in the current quarter.

Additionally, IntoTheBlock cited the recovering market cap of the USDC stablecoin as one of the potential factors driving Coinbase’s valuation. The continued adoption of Coinbase-incubated Ethereum layer 2 network Base was also mentioned as another possible reason behind the resurgent COIN price.

Meanwhile, Binance’s troubles in the United States have also somewhat benefited its biggest competitor, Coinbase. Last week, the world’s largest exchange admitted to being guilty of violating anti-money laundering policies in the US, leading to the payment of $4.3 billion in fines and the resignation of founder Changpeng (CZ) Zhao.

As of the close of trading on Friday, December 1, the price of COIN stood at $133.76, marking a 7.25% increase in a single day.

Bitcoin And Ethereum Price

According to CoinGecko data, the prices of Bitcoin and Ethereum currently stand at $38,744 and $2,090, respectively. Ether has not witnessed any significant changes in price over the past week, while Bitcoin swelled by more than 2.5% in the last seven days.

With market caps of $757 billion and $250 billion, Bitcoin and Ethereum continue to maintain their positions as the largest cryptocurrencies in the market.

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A recent analysis by Deribit, a leading derivatives exchange, suggests a bullish sentiment for Bitcoin as we approach early 2024. This optimism is rooted in the current Bitcoin put-call options ratio, a critical option market metric.

Deribit’s Insight: Bitcoin Calls Outpace Puts Signaling Market Confidence

Notably, options are financial instruments that give traders the right, but not the obligation, to buy (call options) or sell (put options) an underlying asset at a specified price within a set time frame. The put-call ratio is used in options trading to measure market sentiment.

A put option signifies a bet on the price of an asset falling, while a call option represents a wager on its rise. A lower put-call ratio indicates that more traders are betting on the asset’s price increasing rather than decreasing.

Deribit’s analysis shows an increasing trend in the number of call options outstripping put options in Bitcoin’s options market. Luuk Strijers, Chief Commercial Officer at Deribit, highlighted that the put-call ratio for Bitcoin has consistently hovered “between 0.4 and 0.5” throughout the year.

This trend is particularly noticeable for options expiring in March and June 2024, suggesting that investors are increasingly using call options to position for a potential appreciation in Bitcoin’s value during this period.

The put-call options ratio falling below one is a bullish market indicator, as it shows that call volume, or bets on the price increase, surpasses the put volume, which are bets on the price decrease. According to Deribt, Bitcoin’s put-call ratio currently stands at 0.42, as of today.

A Surge In Crypto Derivatives Activity

Meanwhile, November has seen significant activity in the crypto derivatives market, as noted by Strijers. The Deribit executive attributes this increased market activity to higher levels of “implied volatility (DVOL),” which have spurred “opportunities and overall market volumes.”

The expiration dates of the upcoming options, especially the significant one on December 29, are expected to maintain the heightened interest and activity in the market. With $5.7 billion in Bitcoin options and $2.7 billion in Ethereum options set to expire at the end of December, the market is poised for notable movements.

Bitcoin maintains its upward momentum, advancing by 1.8% over the past 24 hours. With Bitcoin currently trading at $38,344, the asset has sustained the gains achieved at the close of the previous month.

Bitcoin’s trading volume significantly reflects heightened market activity, suggesting ongoing buying pressure. In just the last day, trading volumes have surged from around $11 billion earlier in the week to over $21 billion, a noteworthy indication of increasing investor engagement.

Featured image from Unsplash, Chart from TradingView

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