Coinbase continues to expand its crypto footprint in a major way by extending custodial services support to more than a dozen altcoins. In a new announcement, the US-based cryptocurrency exchange says it’s adding 16 new cryptocurrencies to its roster of 200+ assets that are part of the Coinbase Custody cold storage trust, a baker’s dozen […]
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A pair of altcoins decentralized finance (DeFi) altcoins are joining top US crypto exchange Coinbase’s roster of assets. In an announcement, Coinbase says Index Cooperative (INDEX) will start trading on Coinbase Pro paired with Tether (USDT) once appropriate liquidity conditions are met. Coinbase will add support for Wrapped Ampleforth (WAMPL) and Index Cooperative (INDEX) on […]
The post Top Crypto Exchange Coinbase Extends Altcoin Listing Spree, Supporting Two Ethereum-Based Altcoins appeared first on The Daily Hodl.
Crypto trader Aaron Arnold is naming his top altcoin picks for the month of November. In a new YouTube video, the Altcoin Daily host says he anticipates Polygon (MATIC) to surge as companies like Twitter work on projects that require Ethereum layer-2 scaling solutions. “Polygon is breaking out, targeting new record highs. MATIC looks ready to […]
The post These Five Altcoins Are Ready for Explosive Moves in November, Says Crypto Trader Aaron Arnold appeared first on The Daily Hodl.
The bloody crypto market crash has seen the number of stablecoins on exchanges tag new all-time highs, but algorithmic stable token hodlers are suffering.
Centralized stablecoins have remained resilient during the crypto market downturn, with two stable tokens currently ranked among the top ten crypto assets by market capitalization.
Tether and USD Coin are currently ranked third and eighth respectively, having maintained a solid grip on their dollar-pegs despite the massive market downturn.
According to Coingecko, Tether and USDC currently represent 80% of the $100 million combined stablecoin capitalization. The total supply of all stablecoins has surged almost 190% over the past 90 days.
Top decentralized stable token project, MakerDAO’s DAI, also held its peg throughout the majority of the bearish price action, except for May 19 — when the token oscillated between $0.996 and $1.015.
However, algorithmic stablecoins have not fared so well, with some losing their pegs after the prices of underlying collateral assets tanked.
At the time of writing, Terra USD ($UST) has dipped to $0.92, with THORChain describing its downturn as a "stress-test":
“Terra is being stress-tested. $UST mint/burn creates price-reflexivity on $LUNA and discount is a measure of uncertainty.”
UST is created by burning its underlying LUNA coin. The value of UST is determined by the supply and demand but designed to be maintained by creating arbitrage opportunities for LUNA hodlers. When the price of UST rises above a dollar, LUNA holders can sell the tokens for UST at a $1 peg, allowing them to realize the opportunity and driving UST’s price toward $1.
LUNA hodlers can also mint the stablecoin in order to maintain peg stability, however, in times of extreme market volatility, this does not always have the desired effect. LUNA prices have dumped hard during the market downturn, shedding 70% since Wednesday last week when it traded as high as $16.
In a tweet on May 23, Terra co-founder Do Kwon admitted that the Terra economy and elastic supply protocol is experiencing extremely testing conditions. He added that none of the token’s fundamentals have changed, asserting the project has been “significantly de-risked for having survived one of the worst market crashes in crypto”.
The elastic supply Ampleforth (AMLP) token is also trading way down from its target of one dollar. AMPL hit its lowest level for over a year on May 23 at $0.48.
There are three states that the Ampleforth protocol can be in — expansion, contraction, or equilibrium, which depend on demand and dynamically change to adjust the supply. Likewise, in times of major market volatility, this mechanism can have an adverse effect on the token’s ability to maintain its peg.
The Ethereum-backed RAI stablecoin, which was launched to mainnet in February, has fared better than its rivals, hovering close to its algorithmically generated target price of $3 throughout the downturn. RAI algorithmically sets an interest rate that is used to proportionally counterbalance fluctuations in the price of RAI and incentivize traders to drive RAI toward its target price.
Tweeting on May 23, the founder of Global Macro Investor, Raoul Pal, commented on recent concerns regarding the capacity for stablecoins to maintain their peg during market conditions of extreme volatility, likening stable tokens to money market funds:
“I’m just not sure why the fascination with stable coin risks, they are extremely similar to money market funds except that they trade as a token. Neither have guarantees. [Market money funds] make the financial world go round. [Stablecoins] make the crypto world go round too.”
Timely NewsQuakes deliver market-moving events directly to Markets Pro subscribers, while a record-breaking VORTECS Score coincides with Polygon's remarkable price action.
Crypto investors are scratching their heads this week, as a key indicator suggests that Bitcoin is about to take center-stage once more — even as Cointelegraph Markets Pro subscribers had the opportunity to take major profits on altcoins such as Rally (RLY), Polygon (MATIC) and Ampleforth (AMPL).
Since Markets Pro was launched in January, the Altseason Analysis indicator has leaned heavily toward altcoins — and indeed, the performance of an evenly-weighted basket of the Top 100 altcoins has strongly outperformed holding Bitcoin since Markets Pro began tracking these metrics on January 3.
Holding Bitcoin: 74% return
Holding Top 100 altcoins: 432% return
Best-performing time-based VORTECS™ strategy: 1,843% return
Best-performing score-based VORTECS™ strategy: 1,367% return
The Altseason Analysis, developed for Markets Pro by data analytics firm The TIE, works similarly to the VORTECS™ Score, but adds two additional variables including press release data from tokens and exchange listing data.
It compares current market conditions to those in the past, to assess whether the market currently looks more bullish for altcoins or bitcoin for the next 14 days.
The VORTECS™ Score includes sentiment analysis, tweet and trading volume, and price action as components of the algorithm — which are then weighted according to a proprietary formula based on how similar these are to historical conditions. If there is a similarity in these factors, the score will be higher when historical precedents have most consistently led to higher prices.
Although the Altseason Analysis indicator has since swung back towards altcoins and Bitcoin’s market dominance has dipped below 50%, the market may be preparing for a surge in the largest cryptocurrency as investors rotate out of large cap alts and back into BTC.
However, the swing towards Bitcoin certainly hasn’t deterred crypto investors from seeking out altcoins for rapid profits.
As seen in the chart below, on April 22, Polygon’s price was still searching for the floor between $0.30 and $0.40 when the VORTECS™ algorithm briefly detected a favorable historical pattern and assigned a V-score of 81 to the asset (first red circle).
Nothing would happen for the following three days as the overall market conditions remained neutral. Finally, early on April 26, MATIC’s favorable individual disposition fused with the reversal of the wider market, producing a run from $0.35 to $0.83 (first and second red boxes).
As the rally began, the VORTECS™ algorithm recorded a long stretch of ultra-high scores (up to 97), suggesting that, judging from historical precedent, the momentum was not going to expire anytime soon.
This week’s top NewsQuake™ is an unusual case: The announcement of one token’s listing triggered a 33%+ increase in another token’s valuation.
The announcement in question was the news of Binance listing FORTH, the governance token of the Ampleforth ecosystem, which is not yet tracked on Markets Pro. The main asset of the two-token system, AMPL, is tracked; this is the one that saw its price appreciate by one-third in the aftermath of the news.
As seen in the chart below, Markets Pro subscribers received the news of the FORTH listing via a dedicated Discord channel and in-browser notifications, just before a steep price ascent.
NewsQuakes™ are sourced from a real-time aggregation engine, collated from over a thousand primary sources every minute and analyzed by an AI algorithm to determine the historical significance of the news. NewsQuakes™ are trained on staking announcements, exchange listings and key partnerships, and because they are delivered without human intervention, they can often be the fastest way for market participants to learn about major events in the cryptocurrency space.
Another conspicuous example of a well-timed NewsQuake™ was the price action of Rally (RLY). On April 29, its price soared on the news of the token’s listing on Bithumb — news that was delivered in a timely fashion to Markets Pro subscribers (first red circle in the chart below).
It is worth noting that the same announcement also featured the Bithumb listings of OCEAN and CHZ, yet it didn’t have nearly as much impact on these assets’ prices.
Listing announcements can have different effects on coins’ valuations depending on the size of the exchange and the asset’s market capitalization – another variable to be factored into NewsQuake™-driven trading strategies.
Cointelegraph Markets Pro is available exclusively to subscribers on a monthly basis at $99 per month, or annually with two free months included. It carries a 14-day money-back policy, to ensure that it fits the crypto trading and investing research needs of subscribers, and members can cancel anytime.
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. Full terms and conditions.
