Tag: Ftm

Terra (LUNA), Avalanche (AVAX) and Four Additional Ethereum Rivals Mounting Serious Challenge to ETH in 2022: JPMorgan Analysis

by Dailyhodl

Analysts at global banking giant JPMorgan say that Ethereum (ETH) competitors will challenge the top altcoin’s decentralized finance (DeFi) dominance of the crypto markets this year.

In a recent report, analysts led by JPMorgan managing director Nikolaos Panigirtzoglou say that ETH’s 70% market share of the DeFi space will continue to drop because the blockchain’s sharding upgrade is still at least a year away.

Ethereum’s market share of the DeFi space is already down 30% since January 2021.

“In our mind, this optimistic view about ETH’s dominance is at risk.

This is because the scaling of the Ethereum network, which is necessary for the Ethereum network to maintain its dominance, might arrive too late.”

According to Panigirtzoglou, Ethereum competitors such as Terra (LUNA), Solana (SOL), Avalanche (AVAX), Fantom (FTM), Tron (TRX), layer-2 scaling solution Polygon (MATIC), and the Binance Smart Chain (BSC), powered by Binance Coin (BNB), are gaining ground on the second-largest crypto by market cap in terms of growth via adoption.

Furthermore, some developers may not ever return to ETH after its sharding upgrade is complete, according to the report.

“The relative valuation of Ethereum vs. its competitors has been echoing its declining DeFi share.

The risk for ETH is that by the time sharding is implemented in 2023, competitors’ ecosystems would have grown by so much that activity won’t return en masse to the Ethereum network.

In other words, Ethereum is currently in an intense race to maintain its dominance in the application space with the outcome of that race far from given, in our opinion.”

Ethereum is exchanging hands at $3,111 at time of writing, a 30% decrease from its 30-day high of $4,439.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Cosmos (ATOM) and This Ethereum Competitor Are Altcoins To Focus on Amid Market Crash: Economist Alex Kruger

by Dailyhodl

Economist and trader Alex Kruger is urging crypto investors to focus on specific crypto assets such as Ethereum (ETH) competitors as the market trends downward trend.

Kruger tells his 107,500 Twitter followers that Ethereum-alternatives such as Cosmos (ATOM) and Fantom (FTM) are some of the crypto assets to turn their attention to.

Fantom is a scalable smart contract-enabled blockchain whose native token has surged by more than 13,000% over the past 365 days. Cosmos is an ecosystem of parallel blockchains that can communicate in a decentralized manner.

The trader also says that his sentiment for January will depend on the upcoming employment and inflation statistics.

“Focus on select few names such as ATOM and FTM.

For January it [whether I’m bullish or not] will depend on the data.

If we see strong payrolls on Friday, and higher-than-expected inflation on Wednesday, then markets will panic.”

Kruger says that even though he is not “bullish for January” he will “revisit” when the funding rate “gets less negative.”

A funding rate is a periodic payment that crypto traders make between each other to ensure that the spot prices are as close as possible to the perpetual futures contract price. A funding rate above zero indicates bullish sentiment while a funding rate below zero indicates a bearish sentiment.

The economist also says that a full decoupling in the crypto markets is unlikely. Decouplings occur when the returns of Bitcoin (BTC) and other correlated crypto assets cease to move in step with expectations.

“Only see decoupling temporarily when BTC is flat or sometimes when an asset gets bought hard on the dip.

Crypto intra-correlations are very high and will remain so for a long time.

The idea of full decoupling is a mirage fat rich people like to entertain in their free time.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Data Shows Layer-1 Price Growth Reflects Unique Address Proliferation

by NEWSBTC

Is that time of the year again, Bitcoin seems stuck in a never ending range while Layer-1 coins and other cryptocurrencies rally. The crypto market ended 2021 with important profits, but not with the bang everyone seemed to have been expecting.

Related Reading | TA: Why Ethereum Bulls Aim Fresh Rally Above $4K

Arcane Research recorded important growth in Layer-1 coins, such as Fantom (FTM), and Avalanche (AVAX) as a result of a 2021 full of adoption. These cryptocurrencies experienced rallies over 15x against Ethereum (ETH) and took a portion of its market share.

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Arcane Research claims the growing popularity in decentralized finances (DeFi), non-fungible tokens (NFTs), and the transaction fee increase on the Ethereum network. The latter phenomenon started in 2020 with the “Summer of DeFi”, the period that saw the biggest boom in DeFi users leading to an increase in network usage.

The proliferation of NFTs contributed with that issue and let layer-1 coins such as Binance Smart Chain (BSC), Solana (SOL), and others to onboard those users that were priced out of Ethereum. The same seems to be happening with Fantom and Avalanche. Arcane Research claimed the following:

As illustrated on the charts, the greater the number of users of a particular protocol, the more value it tends to attain. In other words, the hypothesis that a multi-year bear is lurking because altcoins have gone up too much requires some nuance.

layer-1 eth ftm avax
Source: Arcane Research

The explosive growth in these layer-1 coins could followed a similar path as those cryptocurrencies that benefited for a short term only to see their use base decimated, or users could form communities and become permanent contributors with their expansion. In that sense, the implementation of second layer scalability solutions for Ethereum could become a threat for those projects.

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A Multi-Chain Industry Supported By Layer-1 Cryptos

A separate report by Delphi Digital records a major growth in other layer-1 projects during 2021. Terra (LUNA) was one of the most important on those terms alongside Polygon (MATIC), a scalability platform for the Ethereum ecosystem.

In terms of total value lock (TVL), Terra saw a 356x increase while Polygon experienced a 17,100x increase in its TVL. As seen below, Fantom and Avalanche entered the top 10 blockchains by TVL but with a smaller increase that the aforementioned cryptocurrencies.

Layer-1 avax eth ftm
Source: Delphi Digital via Twitter

Despite its high transaction fees, and congestion issues Ethereum remained the largest network in terms of TVL during 2021 and preserved its dominance, for the time being. When analyzing the biggest protocols by TVL, it is interesting to find Lido Finance and Multichain, as Delphi Digital claimed, two platforms with interoperable and cross-chain capabilities.

This could hint at a future where Ethereum and layer-1 coins find themselves in an equal field as users turn to the latter in search of a more cost-efficient ecosystem, and cross-chain features.

Related Reading | TA: Ethereum Plunges After Rejection: Technicals Remain Bullish

As of press time, ETH trades at $3,811 with a 1% loss in the past day.

layer-1 eth avax ftm
ETH moving sideways in the 4-hour chart. Source: ETHUSD Tradingview

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This key trading pattern hints at the continuation of Fantom’s (FTM) 125% rebound

by Cointelegraph

Fantom (FTM) looks poised to hit a new record high in the coming sessions after its 125% price rebound from $1.23 on Dec. 14, 2021, to $2.84 on Jan. 3, 2022 triggered a classic bullish reversal setup. 

Dubbed inverse head and shoulders (IH&S), the setup appears when an asset forms three troughs below a so-called neckline resistance, with the middle trough (the head) deeper than the left and right shoulder. 

The price of FTM has recently undergone a similar price trajectory, as shown in the chart below. As a result, FTM has a common resistance in the range defined by $2.55 to $2.74, which encompasses the length of the inverse head and shoulders pattern.

FTM/USD daily price chart featuring inverse head and shoulders pattern. Source: TradingView

Could Fantom rally by another 50%?

In a perfect world, an IH&S pattern would normally result in a bullish breakout once the price closes decisively above the neckline level. Ideally, the upside target be equal to the maximum distance between the head and the neckline, when measured from the breakout point.

On Monday, FTM almost completed its IH&S formation by reaching its neckline. As a result, the Fantom token’s next move could be a bullish breakout above the $2.55 to $2.74 resistance range. In doing so, it would pursue a run-up toward $4.33, based on the setup presented in the chart below.

FTM/USD daily price chart featuring the IH&S’s breakout setup. Source: TradingView

A sharp price pullback from the neckline range, accompanied by a spike in volume, would risk invalidating the IH&S setup. In that case, the next ideal support line may come near $2.08. This would be based on FTM’s volume profile visible range (VPVR), a metric that displays trading activity over a specified period at specified price levels.

FTM/USD daily price chart featuring volume profile target. Source: TradingView

Are there risks of overvaluation?

Downside risks in the Fantom market also appeared in the form of its relative strength index (RSI), a metric that measures the magnitude of the asset’s recent price changes to evaluate its overbought or oversold conditions.

Relative Strength Index in a nutshell. Source: Investopedia

In detail, FTM’s daily RSI entered an overbought territory on Jan. 3 as its reading marginally jumped above 70. The technical indicator suggests FTM is overbought and that it should undergo a certain degree of correction to neutralize its market sentiment.

In layman’s terms, an RSI reading above 70 is usually seen as a signal to sell. However, the sell-offs typically do not necessarily come right after RSI jumps into the overbought zone.

Related: 5 cryptocurrency projects that made waves in 2021

Based on multiple RSI corrections spotted between August and September 2021, the FTM price appears to extend its upside momentum even after the indicator crosses above 70. At its best, the daily RSI had reached almost 89 on Sep. 9, coinciding with the FTM price hitting the then-record high of $1.99.

FTM/USD daily price chart featuring RSI-led corrections. Source: TradingView

That somewhat leaves FTM with the possibility of pursuing its IH&S profit target of $4.33 despite its overvaluation risks. What could follow is a correction towards its 20-day exponential moving average (20-day EMA; the green wave in the chart above) around $2.09.

This would bring the price near to the VPVR support at $2.08, as discussed above.

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.