2022 looks to be a transformative year for the cryptocurrency ecosystem as the focus on interoperability between siloed blockchain networks comes to the forefront and a multitude of projects announce plans to interconnect their platforms with other protocols.
One sector of the crypto ecosystem that will play a vital role in ensuring smooth communication and interaction between networks are oracles projects like Chainlink (LINK) and Band Protocol (BAND).
Top 8 oracle projects by market capitalization. Source: Messari
Oracles relay data in a consistent, secure and decentralized manner and this is key to providing price feeds for the DeFi sector and for centralized exchanges.
The number of partners for the top oracle projects. Source: Twitter
As shown in the graphic above, Chainlink is by far the most widely adopted oracle in the crypto ecosystem with a near eight-fold lead in partners when compared to its nearest competitor Berry Data (BRY).
Chainlink secures new partnerships
A scroll through the Chainlink Twitter feed shows why LINK has started off 2022 as the top oracle provider by announcing multiple partnerships with DeFi and NFT projects.
The project has also benefited from its focus on developing the Cross-Chain Interoperability Protocol (CCIP) which helps facilitate the ongoing growth of the multi-chain ecosystem.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for LINK on Dec. 10, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs. LINK price. Source:Cointelegraph Markets Pro
As seen in the chart above, the VORTECS™ Score for LINK began to pick up on Dec. 10 and hit a high of 77, around 72 hours before the price increased 60% over the next three weeks.
Related:Blockchain enables enterprise business models in the Metaverse
Band Protocol launches on Celo
Band Protocol is a cross-chain data platform designed to help developers integrate real-world data into their decentralized applications including sports, weather, random numbers and price feed data.
The project recently announced that it had launched on Celo’s (CELO) mobile-first DeFi platform which focuses on bringing decentralized finance to more than “6 billion smartphones in circulation.”
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for BAND on Dec. 29, prior to the recent price rise.
VORTECS™ Score (green) vs. BAND price. Source:Cointelegraph Markets Pro
As seen in the chart above, the VORTECS™ Score for BAND hit a high of 76 on Dec. 29, around 48 hours before the price began to increase 44% over the next five days.
With the major themes of interoperability and cross-chain integrations shaping up to be a primary focus of the cryptocurrency ecosystem in 2022, oracles are one sector of the market that could continue to see positive inflows thanks to their ability to transfer data and assets seamlessly and securely between supported blockchain networks.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
According to the official announcement, the upgrade is expected to take place on July 13, 2021, and it will bring to life several outstanding features like the on-chain payment, Cosmos IBC integration, and getstarport integration.
Proof-of-Authority BandChain
Band Protocol, a cross-chain data oracle platform, announced that BandChain Phase 2 Laozi mainnet upgrade is coming, and they disclosed the details.
Laozi Testnet #1 upgrade was a reliable and stable network performance over the past months, and the project is ready for the next step.
The central Band Protocol development team has submitted a newBandChain Improvement Proposal (BCIP-2)to propose amending BandChain from Phase 1 (GuanYu) to Phase 2 (Laozi).
The BandChain network will experience downtime and transactions on the blockchain network during the upgrade window during that period.
Integration partners will be using a Proof-of-Authority BandChain network during the upgrade period, which will take about six hours to ensure that oracle data will continue to be served with no effect on functionality or user experiences.
IBC Compatibility
After the mainnet upgrade, the platform plans to facilitate full IBC compatibility, facilitating an effective token transfer and oracle data between Band Protocol’s BandChain and other IBC-compatible chains like Secret Network and Injective Protocol.
Band Protocol is a blockchain project fueling the exchange of information between decentralized networks and feeds smart contracts with real-world data. Its ecosystem is built around speed, scalability, inter-chain compatibility, and data flexibility.
The protocol has a flexible oracle that enables smart contract developers to request data, including but not limited to random numbers, sports, and weather-related data. Through WebAssemby (WASM), developers can create personalized contracts fed with data from real-world events through APIs.
The Band protocol fetches data from multiple sources and also aggregates them. Aggregation ensures that the data format is in harmony with a variety of decentralized platforms.
The Founding Fathers
The Band project was founded by three tech people, including Soravis Srinawakoon (CEO), Sorawit Suriyakarn (CTO), and Paul Nattapatsiri (CPO). Soravis has advanced experience in computer science and has appeared in the Forbes’ 30 under 30 lists.
Sorawit is a tech guy with a competitive programming background. He has been involved with Quora and Dropbox and drafts all sorts of programs ranging from formal verification (Coq) “smart contracts.
Paul is involved with Tripadvisor, Turmapp and has also createdcryptocurrency gamesthat have gained more than 800,000 users since 2013.
Band Protocol is backed by significant world investors like Binance, Woodstock, Dunamu, SeaX Ventures & Partners, Alphain Ventures, and Sequoia Capital.
Users will use the same wallets/private keys/mnemonics to access their accounts after the upgrade is done. Major exchanges may disable native BandChain token transactions, though ERC20 is expected to be functional as per normal.
Chainlink made a new all-time high of $51.30, sending most short-term holders into the green.
On the other hand, Band Protocol whales have gone into a buying spree, suggesting BAND will soon catch up.
These cryptocurrencies sit on top of massive demand barriers that could slow down any potential sell-offs.
Share this article
A spike in profit-taking may strike Chainlink in the near term leading to a pullback, while Band Protocol seems to have the buying pressure needed to make new all-time highs.
Chainlink Investors Rejoice in Profits
Chainlink’s market value has risen by nearly 74% over the past month, going from $29.50 to a new all-time high of $51.30. Such an impressive bull rally seems to have kicked off after LINK broke out of a symmetrical triangle on Mar. 31.
Based on the height of the triangle’s y-axis, the decentralized oracles token was poised for a 79% upswing toward the 200% Fibonacci retracement level at $53.50 – measured from the Feb. 20 high of $37 to the Feb. 23 low of $20.70.
LINK/USDT on TradingView
Now that the symmetrical triangle’s target has nearly been hit, the Market Value to Realized Value (MVRV) points to a potential sell-side pressure moving forward. This fundamental indicator measures the average profit or loss of all addresses that acquired LINK tokens within a specific time frame.
Chainlink’s 30-day MVRV ratio currently sits at nearly 30%, suggesting most of the market participants who bought LINK in the past 30 days are on average up by 30% on their initial investment.
Each time the 30-day MVRV has moved above 48% in the last three months, a bearish impulse tends to follow since most of the tokens in circulation are at a profit. The higher the MVRV ratio becomes, the higher the selling pressure that usually follows.
Chainlink 30-day MVRV by Santiment
With that in mind, some caution would be advised in the coming days. Even though LINK’s 30-day MVRV may have more room to go up, the fact that it is now facing local resistance may suggest an increased risk of a short-term price correction.
IntoTheBlock’s “Global In/Out of the Money” (GIOM) model reveals that Chainlink sits on top of a massive demand wall that could keep falling prices at bay in the event of a retracement.
Based on this on-chain metric, more than 76,400 addresses had previously purchased over 64 million LINK between $43.70 and $32.80. Holders within this price range may try to do anything to prevent their investments from going “Out of the Money.” They may even buy more tokens to allow prices to rebound.
Global In/Out of the Money by IntoTheBlock
Given the lack of supply barriers ahead, there is a slight chance that Chainlink will be able to shrug off the sell signals and continue rising toward higher highs.
Investors must watch out for a candlestick close above the recent peak of $51.30 as it will invalidate the pessimistic outlook and result in an upswing toward $60 or higher.
Band Protocol Whales Buy en Masse
Band Protocol suffered a significant correction after making a new all-time high of $23.40 on Apr. 15. Its market value dropped by more than 50%, shedding more than 12 points within three days.
Despite the catastrophic dowsing, it seems that large “whale” investors took advantage of the uncertainty to buy BAND at a discount.
Band Protocol’s supply distribution chart shows that the number of addresses with 1,000 to 100,000 BAND rose by 4.90% over the past week. Roughly 16 whales joined the network within that period.
The sudden spike in the number of whales on the network may seem insignificant at first glance. However, when considering these high-net-worth individuals hold up to $2 million in BAND, the increase in buying pressure can translate into millions of dollars.
Band Protocol Supply Distribution by Santiment
IntoTheBlock’s GIOM model suggests that most of the tokens recently purchased by whales were acquired at an average price of $16.90. Here, transaction history shows that 1,300 addresses hold more than 6.30 million BAND.
As such, the $16.90 demand wall can be seen as the most extreme downside risk in the event of a sell-off.
Global In/Out of the Money by IntoTheBlock
While Band Protocol’s downside potential seems capped by the $16.90 support level, the technicals suggest that it has plenty of room to go up. BAND appears to be breaking out of a cup and handle formation that had been developing in its weekly chart since mid-August 2020.
If buy orders continue to pile up, the oracles token could surge by 370% toward the 178.6% or 200% Fibonacci retracement level – measured from Nov. 4, 2020, low of $3.80 to Feb. 13, 2021, high of $20.80.
These potential interest areas sit at $79 and $113.50, respectively.
BAND/USDT on TradingView
Such an optimistic target is determined by measuring the height between the bottom of the cup and the $20.80 barrier, then adding that distance upward from the breakout point.
Disclosure: At the time of writing, this author held Bitcoin and Ethereum.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
“Hybrid Smart Contracts” Will Change DeFi and the World, S…
In a recent interview at BlockDown 2021, the co-founder of Chainlink detailed how the current macro environment is bound for a steep crash akin to the 2008 financial crisis. At…
Oracle Tokens Chainlink, Band Protocol Enter New Bull Rally
Chainlink and Band Protocol have recently made new all-time highs. Though some investors may take advantage of the rising price action to book profits, these cryptocurrencies show no signs of…
CipherTrace and Chainlink Just Made DeFi More Compliant
CipherTrace’s DeFi Compli, a new compliance oracle on Chainlink, assists DeFi projects in following OFAC sanctions and block blacklisted cryptocurrency addresses. CipherTrace to Keep DeFi Compliant on Chainlink DeFi Compli…
What Are Non-Fungible Tokens (NFTs)?
Tokenization is well-suited for commodities like fiat currencies, gold, and physical land. A fungible asset’s representation on blockchain makes commodities tradable 24/7 via borderless and frictionless transactions. Fungible goods are…
Following the Coinbase exchange’s long-awaited debut on the US stock market on April 14, the crypt market experienced a major market correction.
The overnight pullback that started on April 17 and dragged on through that weekend wiped out $310 billion of the total market capitalization in less than 24 hours.
Since then, most top crypto assets have struggled to climb back up, with BTC going on to hit lows of $48K this past week after yet another weekend selloff. That decline in the crypto market came as Turkish bitcoin exchange Vebitcoinshut downunexpectedly, locking over $2 bn in customer funds over the weekend.
Despite the recent turmoil that caused most of the crypto market to look like a bloodbath, whales kept accumulating certain coins over that period. Here is a look at three crypto assets that registered a significant rise in “whale entities” during the latest market selloff.
Ethereum (ETH)
The latest market slip saw ETH face a strong selling interest near several key supports, causing the price to break below $2k just days after hitting a new all-time high.
As per data from crypto analytics platformsentiment.net, the number of whale addresses on the ETH network rose sharply during the dip, suggesting that big-money investors took advantage of the price drop to accumulate Ether on the cheap.
Data from whale alert, a blockchain tracker and analytics system that reports large transactions in real-time, also flagged a fewlarge ETH amountstransferred from top exchanges to unknown wallets. These transfers hinted at significant whale movement into the market during the marketwide selloff.
TheETHUSDpair has since rebounded and entered a bullish zone over the last few sessions. The second-largest crypto even cleared the $2,700 resistance earlier today and traded to a new lifetime high of $2,720 before correcting slightly lower.
Ren Protocol ($REN)
Ren is anopen-source protocolenabling interoperability between blockchains in the DeFi space. The project’s native token, REN, has experienced a drop in value of over 15% in the last 30 days.
While such a decline can cause fearful sentiment among some traders, the sharp price fluctuations enable crypto traders with an elaborate exit strategy to make huge profits.
During the latest market selloff, the number of REN whale wallet addresses saw a sharp increase as wealthy investors sought to accumulate coins. REN is currently trading for $0.8424 following a 4.1% decline in the last 24 hours, per the latest data fromCoinMarketCap.
Band Protocol ($BAND)
TheBand protocolis a secure, scalable cross-chain decentralized oracle that aggregates and connects smart contracts to external data and APIs. BAND, the native token of the protocol, is currently up just over 8% at its current price of $17.8 per data from CoinMarketCap.
Whales moved into the BAND market in large numbers during the recent market crash, accumulating the token in anticipation of an imminent price surge. Santiment insights reveal that wallet addresses holding at least 10K BAND tokens increased sharply during the latest market correction.
Meanwhile, Celcius (CEL), Litecoin (LTC), and Storj (STORJ) logged some of the most significant decreases in the number of whale addresses during that market decline.
Bitcoin’s (BTC) recent downturn temporarily pulled its dominance rate down to 49.5% which is the lowest level since August 2018. This has led a growing number of traders to predict that altcoins will outperform Bitcoin in the short term.
Over the past few months, the price action from altcoins seems to be disengaging from Bitcoin. Take for example, Ether (ETH), which hit a new all-time high today even as Bitcoin price is down 20% from its all-time high.
Crypto market data daily view. Source:Coin360
The major factor that could have tilted the scale in favor of altcoins is the massive rise in the popularity of the decentralized finance space. New York Stock Exchange president Thomas Farley pointed out in an interview with CNBC that “DeFi exchanges are doing as much volume if not more than Coinbase today.”
Let’s look at the fundamentals and technicals of three tokens that have been on the rise in the past few months.
LINK/USDT
Chainlink (LINK) is one of the most popular decentralized oracle solutions. To support the rapid pace of innovation in the crypto industry, Chainlink outlined its vision for the future in its new whitepaper dubbed Chainlink 2.0 on April 15.
The whitepaper presents a new architecture for building hybrid smart contracts where second-layer networks called Decentralized Oracle Networks store and compute the data off-chain before feeding the input on the blockchain. This new concept could empower developers to build hybrid smart contracts quickly, similar to application programming interfaces (APIs) that developers build in the web world.
Another positive for LINK investors came as Grayscale announced the addition of the altcoin to its Digital Large Cap Fund on April 6. Although the allocation is only 0.87%, the inclusion could bring it into the focus of institutional investors.
On April 2 Polkadot and Chainlink announced that Chainlink’s price feeds woul be available as Substrate oracle pallet, enabling projects in the Polkadot ecosystem to integrate Chainlink oracles through a simplified library.
LINK is currently correcting from its sharp rise from $23.61 on March 24 to the all-time high at $44.33 on April 15. Although the price plunged below the moving averages on April 18, the bulls aggressively bought at lower levels as seen from the long tail on the day’s candlestick.
LINK/USDT daily chart. Source:TradingView
Since then, the bears and the bulls have been battling it out at the 20-day exponential moving average ($35.89). The bulls are attempting to defend the 20-day EMA support and launch the next leg of the up-move while the bears are trying to extend the correction by breaking the support.
The marginally rising 20-day EMA and the relative strength index (RSI) above 57 indicate a minor advantage to the buyers. If the bulls can push and sustain the price above $40, the LINK/USDT pair could retest $44.33. A breakout of this resistance could start the next leg of the uptrend, which could reach $50 and then $55.72.
This bullish view will invalidate if the bears sink and sustain the price below the 20-day EMA. Such a move could pull the price down to the 50-day simple moving average ($31.42) and delay the start of the next leg of the uptrend.
BAND/USDT
Band Protocol (BAND) was featured by Cointelegraph on Feb. 2 when its price was at $11.14. Since then the price h rallied to an all-time high at $23.30 on April 15, a gain of 109% in about two and half months.
The protocol announced on April 15 that its oracle data is live on Google Cloud Public Data, which can be used to build traditional, hybrid blockchain and cloud applications. Band said that the integration into Google Cloud Public Data was the first among many use-cases being explored with partners “to bridge traditional enterprises and blockchain applications.”
Band has continued to build partnerships to increase its market share. In the past month, it has announced partnerships with Krystal, Equilibrium, and Polygon. Additionally, one of the biggest financial institutions in Thailand, SCB 10X partnered with Band as a node validator.
BAND is currently trading inside a large range between $11.50 and $20.62. The bulls had pushed the price above the overhead resistance of the range on April 15 and 16 but they could not build up on the breakout.
BAND/USDT daily chart. Source:TradingView
This suggests that bears are active at higher levels. The sellers pulled the price back into the range on April 17, trapping the aggressive bulls. Long liquidations could be one of the reasons for the sharp fall on April 18 that momentarily dropped below the $11.50 support.
However, the positive sign was that the bulls aggressively bought the dips on April 18 as seen from the long tail on the candlestick.
After staying between both moving averages for the past three days, the BAND/USDT pair has broken above the 20-day EMA ($17.04) today. The pair could once again move up to $20.62 where the bears are again likely to mount a stiff resistance.
The flat moving averages and the RSI just above the midpoint suggest that the range-bound action may continue for a few more days. A breakout and close above $21 could open the gates for the resumption of the uptrend. The next target on the upside could be $29.74.
QTUM/USDT
Qtum (QTUM) was covered by Cointelegraph on Feb. 11 when its price was at $7.59. The token took off and made an all-time high at $20.72 on April 19, rallying 173% in just over two months.
The most eagerly awaited development is the transition from 128-second block average to 32-second block average that is expected to take place via a hard fork on April 30.
On March 31 Qtum founder Patrick Dai said that the protocol was working to enable smart contracts for Filecoin through the Qtum network. On the same day, Dai teased that non-fungible tokens are also making their way on Qtum.
QTUM’s Doji candlestick pattern on April 19 indicated that the uptrend could be losing steam. The short-term weakness was confirmed further when the price continued lower on April 20.
QTUM/USDT daily chart. Source:TradingView
The bulls are currently attempting to defend the 20-day EMA ($15.08). A strong bounce off this support will indicate that the sentiment remains positive and the bulls are accumulating on dips.
The buyers will likely try to push the price to $18.63 and then $20.72. A breakout of this resistance will signal the resumption of the uptrend.
However, the negative divergence on the RSI suggests the momentum may be weakening. If the bears sink the price below the 20-day EMA, the QTUM/USDT pair could slump to the 50-day SMA ($10.47) where the buyers may step in to stall the decline.
A strong rebound off the 50-day SMA could keep the pair range-bound for a few days while a break below the support will suggest the bears are back in the game.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Chainlink continues trending upward, making a new record high of $44.30 recently.
Likewise, Band Protocol broke out of a seven-month-long bullish continuation pattern to hit a new all-time high of $23.30.
Further buying pressure could push these cryptocurrencies even higher regardless of the recent gains.
Share this article
Chainlink and Band Protocol have recently made new all-time highs. Though some investors may take advantage of the rising price action to book profits, these cryptocurrencies show no signs of slowing.
Chainlink Looks Unstoppable
Chainlink made headlines after releasing a new whitepaper that details how the project plans to execute “hybrid smart contracts.” The new architecture will expand the network’s utility by adding new services to the off-chain computation of data.
“Hybrid smart contracts are about combining blockchain smart contract application capabilities, and the off-chain world’s proof and data and computations. This is a big leap forward because it redefines what people can build,” said Chainlink’s co-founder Sergey Nazarov.
The release of Chainlink 2.0 comes when LINK has broken out of asymmetrical triangle on Mar. 31 and has risen over 50% since then, hitting a new all-time high of $44.30 recently.
LINK/USDT on TradingView
Further buying pressure could push Chainlink by another 19% toward the 200% Fibonacci retracement level at $53.50 – measured from the Feb. 20 high of $37 to the Feb. 23 low of $20.70.
This target is determined by measuring the height of the triangle’s y-axis and adding that distance upward from the breakout point.
After Google Integration, Band Moons
Speculation mounts around BAND after Google Cloud announced that it would integrate the decentralized oracles protocol. The cloud computing services platform will use Band Protocol’s standard dataset to enable real-time analysis of financial time series data.
The goal is to allow developers to build hybrid blockchains and cloud applications using decentralized oracles.
Following the announcement, BAND surged by more than 30%. The sudden bullish impulse allowed this cryptocurrency to break out of a cup and handle formation that had been developing in its weekly chart since mid-August 2020.
BAND/USDT on TradingView
If buy orders continue to pile up, Band Protocol could rise another 300% toward the 500% or 700% Fibonacci retracement level – measured from the Aug. 10, 2020 high of $17.80 to the Oct. 23, 2020, low of $3.30.
These potential interest areas sit at $75.80 and $104.80, respectively.
Such an optimistic target is determined by measuring the height between the bottom of the cup and the $17.80 barrier, then adding that distance upward from the breakout point.
Disclosure: At the time of writing, this author held Bitcoin and Ethereum.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
France’s 3rd Largest Bank Launches Tokenized Debt on Tezos
Société Générale, the globe’s 17th largest bank, today announced the launch of a tokenized euro medium-term note (EMTN) on the Tezos blockchain. Société Générale Continues Crypto Experimentation “This new experimentation,…
Ethereum Successfully Launches Berlin Hard Fork
The second-biggest blockchain by market cap completes another major upgrade. Ethereum Berlin Fork Launches Ethereum has just completed its Berlin hard fork. The update went live on Ethereum’s block 12,244,000…
Coinbase Hits $103B Valuation in Landmark Public Listing
Coinbase makes history as the first cryptocurrency company to go public. Coinbase Goes Public in First for Crypto Coinbase is now live on NASDAQ. COIN shares were trading at $381…
What Are Non-Fungible Tokens (NFTs)?
Tokenization is well-suited for commodities like fiat currencies, gold, and physical land. A fungible asset’s representation on blockchain makes commodities tradable 24/7 via borderless and frictionless transactions. Fungible goods are…
Injective Protocol has announced that it will expand its partnership with Band Protocol. As such, it will operate a validator node for BandChain.
In exchange, Band Protocol will begin participating in Equinox Staking, according to an official post. This is part of Injective Protocol’s testnet preparations for its upcoming mainnet deployment.
Injective is a second layer decentralized exchange created to offer derivatives and “borderless DeFi”. Users can trade any derivatives on its platform without the traditional market restrictions. The protocol is backed by Pantera Capital and Binance.
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
On the other hand, Band Protocol is an oracle service provider that operates cross-chain data connecting it to smart contracts. Its oracles are used to feed many decentralized applications such as DEX, prediction markets, on-chain games, and others. Backed by Sequoia Capital, it offers a platform without a single point of failure.
The partnership between the referenced protocols has a precedent with the launch of a platform for trading decentralized financial derivatives.
Developed in conjunction with Terra and Mirror Protocol, users can benefit from a decentralized platform to trade derivatives based on shares of Tesla, GameStop, Amazon, and other companies.
1/ 🚀@InjectiveLabs, the first layer-2 DEX for decentralized derivatives and borderless DeFi, is expanding their partnership with $BAND by operating a BandChain node. Band Protocol has also become a genesis validator on Injective’s Equinox Staking.https://t.co/sfGigvb7zR
— Band Protocol (@BandProtocol) April 8, 2021
Band Protocol’s Oracle integration with Injective Protocol
The latest cooperation is a reinforcement to strengthen the relationship between the protocols. According to the post, Band Protocol’s oracle service will be integrated into Injective Protocol’s financial derivatives ecosystem.
Thus the latter will be able to expand. Injective CEO Eric Chen believes that they have remained “close friends” with Band Protocol since its inception. Chen added:
We’re really excited for the Cosmos ecosystem projects to work together and secure a robust oracle and derivatives primitive alongside Band Protocol right from the start!
Band Protocol team said are “looking forward” to being able to support the expansion of Injective’s ecosystem with their oracles. In addition, they believe that Equinox genesis validators will have a “diligent” execution towards the mainnet.
CEO and Co-Funder of Band Protocol Soravis Srinawakoon said the following on the cooperation:
Band Protocol has been a close collaborator of Injective from the beginning — most notably, our teams launched the world’s first decentralized stock futures trading in collaboration with Terra and Mirror Protocol. We are proud to become a genesis validator on Injective in the lead up to their Mainnet and vice versa, have their team operate a BandChain node to further both teams’ interests.
At the time of writing, BAND is trading at $17,57 and seems to be reacting positively to the announcement with 1.8% gains in the daily chart. In the 7-day chart, BAND has 6.6% profits and 17.5% in the past month.
BAND showing gains in the daily chart. Source: BANDUSDT Tradingview
The U.S. dollar lost about 7% of its value in 2020, while Bitcoin rallied about 300% during the same period. As Bitcoin’s institutional adoption increases, United States companies may start to diversify their treasury with other stores of value, and Bitcoin (BTC) stands a good chance to garner a portion of it.
Crypto market data daily view. Source:Coin360
Ark Invest’s latest report, “Bitcoin: Preparing for Institutions,” shows that even a paltry allocation of 1% by companies from the S&P 500 could boost Bitcoin’s price by $40,000. However, analysts at Ar believe that the allocation is likely to be in the range of 2.5% to 6.5%, which “could impact bitcoin’s price by $200,000 to $500,000.”
Even as Bitcoin’s price consolidates and readies for the next leg up, several altcoins have been rising, backed by strong fundamentals and investors’ high expectations of their upcoming products. Let’s look at three such tokens today.
BAND/USD
The decentralized finance space has boomed in the past few months, and the success of the protocols rely heavily upon data sources that are decentralized, fast and reliable. This is where Band Protocol steps in. The cross-chain data oracle has announced several partnerships in the past few days, which shows it is gradually building its market share.
The strong rally in stocks such as GameStop, AMC and others have captured traders’ attention in the past few days. Band’s tie-up with Injective Protocol to deliver decentralized price oracles for various stocks to be supported on the decentralized derivatives platform could benefit the price of its native token, BAND, as a successful integration would be followed by an increase in demand.
Similarly, Linear Finance, a derivatives asset protocol, will also use Band’s real-time price feeds to offer its clients a seamless trading experience for several synthetic assets.
Band is not limited to only providing price feeds of cryptocurrencies, foreign exchange assets and commodities. Elrond and Band have expanded their partnership further to bridge the two networks to provide off-chain data to various applications being developed on the Elrond network. Other than the usual price feeds, Band will also cater to data requests for sports, gaming, esports and much more.
Along with these, Band has also entered into partnerships with the Moonbeam protocol, Nervos and Fantom in the past few days and broadened its existing partnership with CoinGecko.
BAND price rose from $7.1532 on Jan. 22 to $12.949 on Tuesday, an 81% rally within a short time. Previous to this move, the price had largely been stuck in the range of $7 to $11.50 for the past few days.
BAND/USDT daily chart. Source:TradingView
The bulls pushed the price above the range on Tuesday, but the long wick on the day’s candlestick shows the bears are aggressively selling at higher levels. This has dragged the price back into the aforementioned trading range.
If the bulls do not give up much ground, then one more attempt to break above the range is likely. The 20-day exponential moving average ($9.28) has started to turn up, and the relative strength index (RSI) is in the positive territory, which suggests that the path of least resistance is to the upside.
If the bulls can drive and sustain the price above $11.50, the BAND/USD pair could rally to $16 and then to $17.78. This zone may act as stiff resistance, but if the bulls can propel the price above it, the momentum could further pick up.
Contrary to this assumption, if the bears successfully defend the $11.50–$12.949 resistance zone, the pair may extend its stay inside the range for a few more days.
LRC/USD
The GameStop saga and the trading limits imposed on retail traders by brokerages like Robinhood have exposed their significant flaws. This is likely to draw traders to decentralized exchanges where control does not lie with any central entity.
Transaction fees are an extremely important aspect during trading, especially for smaller-sized traders. So, when Ethereum gas fees increase, these retail traders are the most affected. Loopring attempts to solve this problem with it layer-two scaling.
Data from Dune Analytics shows that Loopring’s fee collection recently surged to its highest-ever level due to increasing volume. The protocol recently updated its LRC tokenomics model and announced a new fee distribution pattern to its various participants. This could further attract LRC investors who may want to benefit from the rising popularity of the protocol.
LRC rose from an intraday low at $0.33651 on Jan. 22 to an intraday high at $0.57618 on Jan. 31, a 71% rally within a few days. The upsloping moving averages and the RSI in the positive territory suggest that bulls are in control.
LRC/USDT daily chart. Source:TradingView
The up-move is currently facing resistance near $0.55, and the LRC/USD pair could drop to the 20-day EMA ($0.43). This is an important level to watch out for because the pair has taken support at the 20-day EMA on three previous occasions.
If the pair again rebounds off the 20-day EMA, the bulls will make one more attempt to resume the uptrend by pushing the price above $0.62167. If they succeed, the pair could rally to $0.71773 and then to $0.78.
This bullish view will invalidate if the bears sink and sustain the price below the 20-day EMA. Such a move will suggest that the bulls are not buying the dips anymore, and that could result in a fall to $0.35 and then to the 50-day simple moving average ($0.31).
CREAM/USD
Certain aspects of traditional finance could act as an inspiration to build projects in the decentralized space. Cream Finance recently announced the launch of Iron Bank, which is guided by the success of the $10-trillion U.S. corporate debt market.
While there are several peer-to-peer lending protocols existing in the crypto space, Cream has taken it a step further and created a protocol-to-protocol lending mechanism. The main attraction of the Iron Bank is that it will facilitate zero-collateral lending.
To keep the risk under check, Cream will set a credit limit after whitelisting the protocols. Initially, the Iron Bank is available only for Cream’s partners, but if this project succeeds, it is likely to be a huge positive for the entire DeFi space.
In other news, Cream recently widened its services by adding SushiSwap and Uniswap LP tokens as collateral options for lending and borrowing.
The platform’s CREAM token rallied from $119.35 on Jan. 22 to an intraday high at $319.9 on Tuesday, a 168% rally within a short time. The long wick on the day’s candlestick shows that traders aggressively booked profits at higher levels.
Layer 2 DEX Injective is launching stock trading, starting with Facebook, Amazon, Netflix and Google.
The move is enabled by a partnership with Terra and Band Protocol.
The equities will be sold via USDT with zero gas fees.
Share this article
Injective Protocol is launching stock trading. Facebook, Amazon, Netflix, and Google will be the first equities listed on the decentralized exchange.
More Synthetic Stocks Come to Crypto
Injective, the high-speed layer 2 derivatives trading exchange built with Cosmos SDK, is adding traditional equities on Thursday.
Initially, they’ll enable trading for Facebook, Amazon, Netflix, and Google, with more to be added at a later date. This collection of stocks is colloquially referred to as FANG and has earned investors some of the largest returns as of late.
The team is partnering with Terra and Band Protocol for the move, with Terra offering stock tokenization and Band feeding price data via their oracle technology.
Injective Protocol’s CEO Eric Chen announced the news today:
“Investing in stocks still remains inaccessible for billions of people worldwide while the existing platforms act as gatekeepers and suffer from technical challenges. Injective helps to seamlessly rectify these salient issues to allow anyone to trade stocks with zero fees.”
The update is the first product offering of its kind on a decentralized exchange.
While the leading exchange FTX has placed focus on pushing the industry forward, this month listing Airbnb ahead of Nasdaq, stocks have never been widely available within DeFi. Injective is listing the stocks on its Injective Solstice V2 network, and they’ll be available to buy in USDT.
Injective is also offering the equities with zero gas fees. Usually, equities traders are subject to high fees, often through market maker rebates.
This development suggests DeFi is far from over and continues to make strides, incorporating more features from traditional financial markets.
Disclosure: At the time of writing, the author of this feature owned ETH, among a number of other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
DeFi Project Spotlight: Injective Protocol, a Derivatives DEX
Injective Protocol is a decentralized derivatives project that offers fast transaction speeds, deep liquidity, and front-running protection. The project makes up part of the growing DeFi ecosystem that is being…
One of the leading crypto exchanges by trading volume, FTX, has partnered with European financial companies CM Equity AG and Digital Assets AG to enable tokenized equity trading. The platform’s…
Why Fees and Transaction Costs Matter?
Most traders can quickly recite the requisite win rate, average expected return, risk levels, and position sizes that are necessary to their success. These metrics often vary from trader to…
What Google, Apple Can Learn from Microstrategy’s Levered Bitcoin Be…
Microstrategy has announced the sale of $400 million in senior convertible notes to raise capital for purchasing even more Bitcoin. The firm has already bought $475 million BTC this year. …
