Source: Crypto Briefing Go to Source Author: Ali Martinez
Digital asset analytics firm Santiment is looking at a handful of altcoins to gauge crypto’s strength after the global market cap tanked by 8% in less than a day. In a new Santiment Insights report, the crypto intelligence company analyzes what it calls “blue chips” in the ERC-20 market segment: Shiba Inu (SHIB), Uniswap (UNI), […]
Altcoin Daily host Aaron Arnold is explaining why he sees big potential for several mid-cap altcoins while predicting continued success for Bitcoin (BTC) and Ethereum (ETH). In his latest YouTube video, Arnold tells his 1.11 million subscribers that he expects the decentralized wireless platform Helium (HNT) to continue rising. “This project is very heavily VC [venture capital] […]
The financial services company is only considering non-volatile assets as collateral in its DeFi lending solution that's under development.
In a presentation made during the Singapore Fintech Festival, Annerie Vreugdenhil, chief innovation officer of ING, announced the firm is working on a trial of its decentralized finance, or DeFi, peer-to-peer lending protocol with the Netherlands Authority for the Financial Markets. Vreugdenhil said the following in regards to the development, as reported by Ledger Insights:
We are looking into peer-to-peer lending in a DeFi kind of setup. But then not on Bitcoins. What is interesting to us is how you can probably create peer-to-peer lending or open up lending capabilities with different kinds of collateral. So with different ways of doing this rather than with volatile Bitcoin.
ING is a Dutch financial service multinational with over $1 trillion in total managed assets. In a white paper published earlier this year, ING specifically mentioned lending protocol Aave, which is built on the Ethereum (ETH) blockchain, as one recent innovation in the industry. Through smart contracts, Aave enables borrowers to deposit crypto as collateral and take out a stablecoin loan.
The mechanism can be used as a traditional asset loan, i.e., take out debt to pay for everyday expenses while one's investment continues to compound. In line with ING's concerns about using volatile assets as collateral, Aave also enables the borrowing and lending of stablecoins. At the time of writing, borrowers can earn approximately 3% interest per annum by depositing their DAI into variable-rate pools while lenders pay 4% interest per annum vice versa.
While ING praises DeFi for its borderless payments, 24/7 operations, and speed of transactions, its white paper pointed out several drawbacks. In particular, since borrowing and lending protocols require collateral, they do not enable the creation of new money for initiatives such as financing companies and entrepreneurs.
Nevertheless, ING has taken a keen interest in the blockchain industry in recent years. At the end of 2020, ING joined the Blockchain Education Alliance. The firm also began working on digital asset custody in 2021, and discussed a number of stablecoin developments during a conference in April of this year.
Serendipity is "a fortunate discovery or event when things come together just perfectly." You can't plan for it... or can you?
In crypto trading we often see entire sectors move in tandem. DeFi coins may all curve upwards together, while metaverse tokens soared on news that Facebook’s getting a Facelift.
But this week’s group of top crypto performers have very little in common... except one trading indicator that lit up in pulsating green neon letters before their prices trended upward.
We’re looking today at:
All have delivered major gains over the last month, and despite their differences they have one thing in common.
Each one achieved a VORTECS™ Score in excess of 90 before reaching their peak price levels.
In fact, all these tokens exhibited patterns of trading and social behavior that were strikingly similar to conditions in the past that preceded rallies. And once these tremendously robust trading conditions were detected, most of these cryptos entered virtuous cycles wherein their price dynamics generated increased trading and tweet volumes, which, in turn, powered the next phase of a rally.
Was there a chance for traders to hop on these moon-bound shuttles early?
A sign of extreme confidence
The indicator that screamed of the extremely bullish conditions is called the VORTECS™ Score, a tool available via Cointelegraph’s subscription-based data intelligence platform, Markets Pro.
Its job is to compare the current trading and sentiment conditions to historically-similar situations, and to alert traders when bullish patterns are detected. Live testing of the VORTECS algorithm has been ongoing for over ten months.
A VORTECS™ Score above 80 is considered confidently bullish. On average, there are from 30 to 50 weekly instances of assets crossing the 80-score threshold.
Scores of 90 or above, however, are rare. In an average week, there are usually no more than 4-5 instances of such scores, and sometimes a full week can pass without a single 90.
These ultra-high scores signify the algorithm’s strong confidence that the observed conditions are similar to those that preceded an asset’s stellar price performance in the past. As previously reported, scores above 90 sometimes precede price appreciation that can last for several days.
Here is how it worked with some of the highest-VORTECS™ assets this past month.
KOIN: +100% after peak score
KOIN, an asset whose first VORTECS™ Score had been calculated on Nov. 5, was off to a formidable start right out of the gate. The asset’s score touched the 90 mark several hours after its debut at the price of 22 cents.
Within a day, it reached a high of $0.44, a 100% increase. The pump was accompanied by additional 432% of trading volume and 221% of the usual level of tweets.
It’s possible that the particularly striking results of the Koinos price appreciation event are partly attributable to its low market capitalization, which stood at just $20 million before the dramatic price rise.
MATIC: +35% after peak VORTECS Score
MATIC’s stellar run this month has been powered by a surge in the number of active Polygon addresses, as well as project launches on the Polygon network. The asset’s peak VORTECS™ Score of 94.2 came on Oct. 16 (red circle in the chart), when the asset was trading at $1.56.
Following the peak score, MATIC’s price did not skyrocket immediately, as the favorable conditions did not fully materialize until almost two weeks later. However, the maximum price increase registered after the record Score amounted to 35%, with an attendant 6.68% spike in trading volume and a 11.08% increase in tweets mentioning the asset.
AAVE: +11% after peak score
AAVE’s high-water mark came on Oct. 18 when it flashed a VORTECS™ Score of 90.8. At that moment, the DeFi token had been changing hands for $304.
AAVE’s ultra-high score anticipated a rally that lasted for another 11 days, culminating at the price of $338 registered on Oct. 29. The gains in trading and tweet volume were even more impressive: 488% and 118%, respectively.
LINA: +13.4% after peak score
LINA had its most bullish historical outlook registered on Oct. 11 when its VORTECS™ Score reached 90.2 against the price of $0.052.
The next phase of its price action saw the price rise to $0.059 over a seven-day period, accompanied by a staggering 439% increase in trading volume and 200% rise in tweets.
VGX: +3.7% after peak score
Voyager Token (VGX) flashed its highest VORTECS™ Score of the month (91.9) rather late into its tremendous hike from $2.11 to $3.05.
The asset’s price continued to hover above $3 for the next four days, powered by a 42.89% increase in trading volume and a 10.19% more intense Twitter conversation in the aftermath of the historically bullish outlook. VGX’s momentum has somewhat faded in early November, yet the robust fundamentals could point to an impending resurgence.
We may conclude from previous analysis that looking at tokens that hit the VORTECS™ Score of 80 proved to be an efficient strategy for traders seeking to identify a range of assets with a good chance of performing well within the next few days.
Focusing on those few that score beyond 90 may better serve Markets Pro members who prefer to operate on higher confidence levels and longer timeframes.
Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.
Investments from gaming guilds, partnerships with crypto-investment firms and the success of the ongoing Gotchiverse auctions all back GHST’s 50% rally.
The world of decentralized gaming has seen significant growth in 2021 as the rise of play-to-earn (P2E) gaming merged with NFTs to open the first pathway to the Metaverse.
Aavegotchi is currently making inroads in the blockchain-based gaming sector with a somewhat novel approach that incorporates features from P2E gaming, NFTs and decentralized finance (DeFi).
Data from TradingView shows that since hitting a low of $1.56 on Oct. 1, the price of GHST, Aavegotchi's native token, has rallied 53% to a daily high at $2.40 on Oct. 29 as its 24-hour trading volume spiked 45% to $135.8 million.
Three reasons for the building momentum in the price of GHST are the ongoing Gotchiverse land auctions that require GHST to bid, several high-profile partnerships with gaming guilds and hedge funds and the overall strength of the blockchain-based gaming sector.
The biggest development helping to boost the price of GHST is the ongoing ‘Gotchiverse’ land auctions being held by the protocol. GHST and Gotchi holders are actively bidding to purchase a "realm" in the newly released digital world designed for the project's collectible NFTs.
Only 18 hours into the first #gotchiverse land auction and the stats are— Aavegotchi (@aavegotchi) October 29, 2021
80k unique bids
28M $GHST in volume (60M+ USD value moving!)
880k $GHST paid in #BidtoEarn rewards
Over 2,100 unique participants
Still two days to go!
Join https://t.co/MFo5gcJRRZ pic.twitter.com/vDK59sSGFt
As seen in the tweet above, there have already been more than 80,000 unique bids made by 2,100 participants, resulting in a combined value of over 28 million GHST ($60 million).
Bids for land can only be made using GHST, which has put buy pressure on the token price and is likely the reason behind the large spike in volume and price seen on Oct. 18.
The Gotchiverse land auction is set to run through Oct. 31 and includes a total of 16,000 realms.
This week two major gaming guilds announced partnerships that aim to expand the Aavegotchi platform.
We can't keep this quiet any longer...— BlackPool (@BlackpoolHQ) October 28, 2021
BlackPool is absolutely thrilled to join the #Gotchiverse !
Find out the details of this awesome paartnership here.https://t.co/RP1nutpUK0 pic.twitter.com/6fXR7hRDKO
The new partnerships include a collaboration with Blackpool, a quantitative hedge fund for NFTs, as well as a collaboration with Yield Guild Games (YGG) which invested $800,000 into Aavegotchi.
The concept of the Metaverse has also been a frequent topic of discussion throughout the current bull market and many analysts believe that play-to-earn and blockchain-based gaming will be the top performers in 2022.
As seen in the chart above, tokens in the gaming sector have seen significant price appreciation in 2021 led by Axie Infinity (AXS) which has gained more than 25,000%.
Aavegotchi is actually following a similar path laid out by AXS, which started by releasing its NFT characters and then slowly built out its gameplay over time. The project eventually conducted virtual land sales and today Axies and land plots within the game sell for hundreds of thousands of dollars.
This approach has worked well for Axie Infinity and if all goes well, Aavegotchi might follow the same path to mass adoption.
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.
Total value locked on the decentralized borrowing and lending platform fell 16% in the past 24 hours.
Annual percentage yields, or APY, on crypto borrowing and lending platform Aave have surged to record levels after capital withdrawals sent the decentralized finance, or DeFi, protocol into a liquidity crunch. At the time of writing, variable APY on borrowing stablecoin Dai via Aave has surged to 24.88%, compared to approximately 6.50% the day prior.
According to cryptocurrency researcher Igor Igamberdiev, blockchain personality Justin Sun was responsible for at least billions of dollars in withdrawals in the past few hours. Aave's total value locked, or TVL, fell to $14.7 billion from $17.89 billion the day prior, based on data from DeFi Pulse.
In a series of tweets, Aave developers revealed that financial modeling platform Gauntlet Network submitted an Aave Improvement Protocol, or AIP, to disable the borrowing function for xSUSHI and DeFi Pulse Index (DPI) tokens as a precautionary measure. In addition, the AIP also called for disabling Automated Market Maker, or AMM, liquidity provider tokens on the Aave AMM Market as an extra safeguard.
Earlier in the week, members of the Aave community voiced concerns regarding vulnerabilities with using xSUSHI tokens as collateral for borrowing on the platform. Aave developers alleged that the Gauntlet Network team ran simulations showing that it would not be economically feasible to exploit xSUSHI tokens on Aave. However, Aave developers claim that the Gauntlet Network still put forth the AIP despite these results. The AIP is currently in the voting phase, with "Yes" votes heavily favored.
Prior to today's flight, Aave was the most popular DeFi protocol as ranked by Defi Llama. The platform has a lot of traction among cryptocurrency enthusiasts looking to yield farm or take out a stablecoin loan by pledging their digital currencies as collateral.