A crypto investor who accurately called the bottom of the bear market last year is doubling down on some of his calls despite plunging markets. Chris Burniske, a partner at venture capital firm Placeholder and former analyst at ARK Invest, says that the recent downward price action in Solana (SOL) and Cosmos (ATOM) means very […]
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Nolus’ DeFi lending protocol aims to onboard more people by solving collateralization inefficiencies.
Crypto lending has become an essential part of decentralized finance (DeFi), allowing people to lend and borrow digital assets via specifically designed protocols. With crypto lending, users can lock their crypto assets as collateral and then borrow a fiat or stablecoin loan. Instead of traditional intermediaries, like banks and credit unions, DeFi lending protocols operate directly on a blockchain. Smart contracts facilitate each loan or borrowing, and on-chain supply and demand decide the interest rates.
Reports expect a $231 billion DeFi market by 2030, with lending protocols being a key element driving the growth. According to a CoinGecko research report, lending has more than an 11% market share in the DeFi ecosystem, and it stands as one of the five biggest DeFi sectors. Users flock to DeFi lending protocols to avoid directly selling their crypto holdings, which they expect to increase in value.
DeFi categories’ shares by market cap of tokens. Source: CoinGecko
Despite its growth potential, several factors limit the usability of crypto lending. Primarily, users need to lock up more value in crypto as collateral than what they aim to borrow. This is a common practice, both for centralized and decentralized lenders, to avoid risks related to the liquidation of funds due to sudden drops in collateralized tokens’ value. Platforms tend to provide financing up to 50% to 60% of any deposited collateral.
The complexity of the lending process is another deterrent for the majority of Web3 users, as DeFi lending solutions need a technical understanding that may confuse even experienced traders.
After securing $2.5 million in pre-seed and seed funding, Cosmos-based DeFi protocol Nolus joined the Cointelegraph Accelerator program with the goal of making crypto lending available for the average user. Nolus Protocol recently introduced DeFi Lease to address the inefficiencies in the current DeFi lending landscape.
DeFi Lease provides users financing up to 150% on the initial investment — almost threefold the average crypto lenders’ offer — while leaving the asset ownership with the user. It also keeps the total cost of financing and transactions lower than the market average to help Web3 users secure a larger amount of a desired digital asset than their current equity balance without worrying about technical formulas or complex lending fee structures.
Aside from DeFi Lease, Nolus operates as a noncustodial financial suite for Web3 that allows users to manage all digital assets and purchase, sell, swap or stake their crypto. In May, Nolus successfully launched its mainnet and expects a fully working protocol live next week.
The Cointelegraph Accelerator program took off in 2023 to provide Web3 projects assistance in reaching their true potential. By joining the program, Nolus will have the opportunity to present to the broader Web3 ecosystem its innovative approach to crypto lending, attracting users from other blockchains and wallets to its Cosmos-based chain to interact with its DeFi protocol through a simple interface. As a participant in the Cointelegraph Accelerator program, Nolus aims to become the one-stop shop to park all crypto transactions for Web3 users.
Coinbase customers can now trade the Cosmos (ATOM)-based decentralized finance (DeFi) altcoin Osmosis (OSMO). The top US crypto exchange added support for the altcoin under its “Experimental Label,” a designation it established for riskier, lower liquidity tokens. Osmosis is an automated market maker (AMM) protocol built on the Cosmos software development kit (SDK). It aims […]
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Staked ETH, BNB, ATOM, SOL and MATIC will be usable on Tenet as “restakes” to gain further rewards.
A new Cosmos-based blockchain called “Tenet'' will use liquid staking coins from other networks to secure its transactions, potentially allowing the new network to inherit the security of older ones, according to a May 3 announcement from the developers.
The network is currently available as a testnet and will launch a mainnet version as soon as testing is complete. This comes after liquid staking has recently become the largest decentralized finance (DeFi) protocol category.
Liquid staking protocols such as Lido, Rocket Pool and Ankr allow users to stake their coins with a network of validators and receive rewards without having to run their own nodes. These protocols also provide users with tokens called “liquid staking derivatives,” or LSDs, redeemable for the underlying deposits and rewards.
According to the announcement, Tenet will allow users to “restake” these LSDs to earn additional rewards on its network. And it will provide users with tokens that represent the LSDs themselves. The team calls these third-order tokens “liquid liquid staking derivatives,” or LLSDs. LLSDs will be usable in lending apps and decentralized exchanges throughout the Tenet network, the announcement said.
The team expects there to be two core benefits to using LSDs instead of a native coin to secure the network. First, it “ensures the long-term security of the Tenet chain by leveraging the joint security of each [layer 1] ecosystem it services.” Second, it should “bring additional liquidity and yield opportunities to LSDs.”
Related: Ethereum ‘re-staking’ protocol EigenLayer launches on testnet
At launch, the protocol is expected to allow liquid staking derivatives of Ether (ETH), BNB (BNB), Cosmos (ATOM), Solana (SOL) and Polygon (MATIC) to be restaked on Tenet.
The new network is being developed by former executives of Ankr and Blockdaemon and is advised by members of the Lido, Ankr and OpenAI teams.
Liquid staking protocols have existed since 2020 when Lido was first launched. They grew in popularity in 2022 and early 2023 as the Ethereum network implemented a move to proof-of-stake and began to allow staking withdrawals. On May 1, crypto analytics platform DefiLlama announced that liquid staking had become the top category of DeFi apps when measured by total value locked.
Some experts have argued that liquid staking may grow in the future as a result of the Ethereum Shanghai upgrade.
If Bitcoin price breaks above $30,000, several altcoins such as SOL, ATOM, ICP and HBAR are well-positioned for a rally of their own.
Risky assets marginally extend their up-move in April. The S&P 500 Index rose around 1.5% in April while Bitcoin (BTC) is on track to end the month with gains of more than 4%. Could the rally continue in May or is it time for a pullback?
The recovery could face headwinds if the United States banking woes escalate further. JPMorgan Asset Management chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is unlikely to be limited to the bank only, and could cause a domino effect.
If that happens, then the U.S. equity markets may witness a correction. However, it is difficult to predict how Bitcoin will react to such a crisis because, in the past few days, BTC price rose while legacy banking troubles deepened. But in case of a major upheaval in the U.S. banking sector, it is possible that Bitcoin will also face a correction sooner or later.
In the near term, Bitcoin and select altcoins are showing strength. Let’s study the charts of five cryptocurrencies that may outperform over the next few days.
After two days of low volatile trading in Bitcoin, the bulls are trying to assert their supremacy on April 30.
The 20-day exponential moving average ($28,783) has started to turn up gradually and the relative strength index (RSI) is in the positive zone, indicating that the path of least resistance is to the upside.
If bulls kick Bitcoin's price above $30,000, the BTC/USDT pair may climb to the overhead resistance zone of $31,000 to $32,400. Buyers may face formidable resistance at this zone but if it is crossed, the pair can soar toward $40,000.
The 50-day simple moving average ($28,026) is the important support to keep an eye on. If BTC price collapses below this level, the bears will sense an opportunity and try to sink the pair to $25,250.
The bears tried to yank the pair below the 20-EMA but the bulls held their ground. This may have attracted further buying and the bulls will next try to drive the price above $30,000. If they succeed, Bitcoin can rise to $30,500, or even $31,000.
Conversely, if the price turns down and breaks below the 20-EMA, it will suggest that bears are selling near overhead resistance levels. The pair may then slip to the 50-SMA.
The bulls will try to protect this level but if bears overpower them, the next stop is likely to be $27,000. Buyers are likely to defend the zone between $27,000 and $25,250 with all their might.
The bulls did not allow Solana (SOL) to break back below the downtrend line during the most recent leg of the correction, indicating demand at lower levels.
Buyers will next try to propel the price to the overhead resistance at $27.12. This remains the key resistance to watch for in the near term because if bulls catapult the price above it, the SOL/USDT pair may accelerate toward $39.
This bullish view could invalidate in the near term if the price turns down and breaks below the moving averages. The pair could then plummet to the crucial support at $18.70. If the price rebounds off this level, it will signal that the pair may oscillate inside the large range between $18.70 and $27.12 for some time.
The moving averages on the 4-hour chart have started to turn up and the RSI is in the positive territory, indicating that buyers are in control. The bears are trying to stall the recovery at $24 but if bulls overcome this barrier, the pair may pick up momentum and rally toward $25.50.
If the bears want to prevent the rally, they will have to quickly tug the price back below the 20-EMA. The 50-SMA will be the support level to watch here if price begins to slide.
The long tail on Cosmos’ (ATOM) April 26 candlestick shows that the bulls are fiercely defending the support at $10.20.
Buyers have pushed the price above the moving averages and will try to reach the downtrend line. This is an important level to keep an eye on because a break and close above it will open the doors for a potential rally to $13.50 and then to $15.50.
On the other hand, if the ATOM/USDT pair reverses direction from the downtrend line, it will suggest that bears are trying to form a descending triangle pattern. A decline below the moving averages will open the doors for a possible retest of $10.20.
The 20-EMA on the 4-hour chart has turned up and the RSI is near the overbought zone, indicating that bulls are in control. There is a minor hurdle at $12.13 but that is likely to be crossed. ATOM price may then rise to test the downtrend line.
Instead, if the price turns down from $12.13, the bears will again try to sink the pair below the 20-EMA. If they manage to do that, it will suggest that the buyers may be losing their grip. The pair then risks a slide to the 50-SMA.
Related: ‘Good luck bears’ — Bitcoin traders closely watch April close with BTC price at $29K
Internet Computer (ICP) slipped below the 50-day SMA ($5.38) on April 26 but that proved to be a bear trap. The price turned up on April 27 and started a strong recovery.
The 20-day EMA ($5.74) has started to turn up and the RSI has jumped into positive territory, indicating that bulls have a slight edge. If the price does not give up much ground from the current level or rebounds off the 20-day EMA, it will suggest that the bulls are buying the dips.
That will enhance the prospects of a rally to the downtrend line where the bears will again mount a strong defense. On the downside, a break below the 50-day SMA will tilt the advantage in favor of the bears.
The 4-hour chart shows that the ICP/USDT pair is in a corrective phase. The first support is at the 20-EMA, which is close to the 38.2% Fibonacci retracement level of $6.14. If the price bounces off this support, the pair may rally to $7.23 and eventually to $7.70.
Contrary to this assumption, if the price continues lower and breaks below the 20-EMA, it will suggest that the short-term bulls may be booking profits. That could pull the price to the 50-SMA, which is near the 61.8% retracement level of $5.72.
The bears repeatedly tried to sink Hedera (HBAR) below $0.06 but the bulls held their ground. The failure to break the support attracted buyers who will try to push the price above the downtrend line.
The 20-day EMA ($0.06) is flattening out and the RSI has climbed above the midpoint, indicating that the selling pressure is reducing. If buyers thrust the price above the resistance line, the bullish momentum may pick up and the HBAR/USDT pair could rally to the overhead resistance at $0.08.
Contrarily, if the price turns down from the current level or the resistance line, it will suggest that the bears remain active at higher levels. That increases the possibility of a break below $0.06.
The 4-hour chart shows that the bulls flipped the moving averages into support and have launched an up-move that is likely to reach the resistance line. This level is expected to act as a strong resistance but on the way down, if the pair rebounds off the 20-EMA, it will suggest a change in sentiment from selling on rallies to buying on dips.
The pair may then break above the resistance line and start its journey to $0.07 and subsequently to $0.08. If the bears want to gain the upper hand, they will have to quickly pull HBAR price below the moving averages.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Top US crypto exchange Coinbase has added a Cosmos (ATOM)-based decentralized finance (DeFi) project to its listing roadmap, giving the altcoin a price boost amid the ongoing market doldrums. Coinbase customers could soon trade Osmosis (OSMO), an automated market maker (AMM) protocol built on the Cosmos software development kit (SDK) that aims to enable cross-chain […]
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The new testnet is one of the few networks that uses Solana’s Sea Level Virtual Machine (SVM).
Developers may soon be able to port Solana Web3 apps to the Cosmos ecosystem, bringing new users to these apps and providing a greater variety of uses for Cosmos blockchains.
According to a March 30 announcement from the developer of Cosmos-based network Injective (INJ), the team has released a layer-2 testnet that utilizes Solana’s Sea Level Virtual Machine (SVM). This means that some Solana developers can now test their apps for use in the Cosmos ecosystem without needing to change the programming language or tooling used.
In a conversation with Cointelegraph, a representative from Injective said the name of the new network is “Cascade” and that it uses optimistic rollup technology.
According to the announcement, the new layer was created with the help of Eclipse, a company that provides customized zero-knowledge and optimistic rollups for developers.
Eric Chen, co-founder and CEO of Injective Labs, stated that the integration should help both the Solana developer community and Cosmos users:
“This new SVM rollup for the Cosmos IBC world will not only empower developers from Solana to deploy their DApps on Injective, but it will also create more opportunities for users to experience the best Web3 DApps in one integrated network.”
Injective stated that the testnet is currently private, but it is “offering a limited number of spots exclusively to select Solana developers” beginning on March 30.
The number of active Solana developer teams increased over 1,000% year-over-year in the third quarter of 2022, according to a report by Alchemy. The network features several apps with over 2,000 unique users, including the nonfungible token marketplace Magic Eden and DeFi protocol MeanFi, according to Web3 analytics company DappRadar.
However, Solana Web3 apps are written for use with the Solana SVM, which is used by few networks other than Solana itself. This makes it difficult for Solana developers to port their apps to other networks without extensive rewriting.
Related: Formfunction to shutter marketplace amid Solana NFT slump
Eclipse also created an SVM rollup for Polygon on February 23.
Cosmos is a group of interconnected blockchain networks developed using the same consensus engine and software development kit. They are connected through the Cosmos Inter-Blockchain Communication Protocol (IBC), and assets on one network can be transferred to others within the Cosmos ecosystem. Injective is one of the networks that make up this ecosystem, and the new SVM rollup is a layer-2 of Injective.
Injective Labs isn't the only company trying to make Solana apps compatible with Cosmos. Nitro Labs also announced the development of an SVM rollup for the Sei network in September and released a decentralized exchange for its testnet in February.
The Cosmos ecosystem has been growing over the past two years. On March 11, Cosmos Hub governance approved the V9-Lambda upgrade that begins to implement Interchain Security (ICS), allowing members of the ecosystem to share validations resources. On March 29, Circle announced that it will launch USDC for Cosmos via the Noble Network.
According to the token protocol startup Noble, the second-largest stablecoin, USDC, will be integrated into the Cosmos blockchain, as the company has partnered with Circle Financial for the rollout. Noble details that the integration will give access to Circle’s USDC stablecoin to more than 50 Inter-Blockchain Communication (IBC) networks. USDC Native Support Is Coming to […]
The stablecoin will be launched on the Noble network, making it available to all 50-plus Cosmos IBC blockchains.
USD Coin (USDC) will soon be available in the Cosmos ecosystem via the Noble network, according to a blog post from the Noble development team. The post was shared on Twitter by USDC issuer Circle.
We're excited to bring USDC to @Cosmos! USDC is expected to launch on @noble_xyz soon, stay tuned for details. #IBC https://t.co/eqU8wno43F
— Circle (@circle) March 28, 2023
Neither Circle nor Noble gave out a specific date for USDC’s launch on the network, but both said that readers should “stay tuned.”
In its announcement, the Noble team said that USDC will be the first “native, fiat-backed stablecoin that is highly liquid and fully collateralized” on a Cosmos Inter-Blockchain Communication Protocol-connected network. In its view, the introduction of the fiat-backed stablecoin will solve many of the challenges that Cosmos users currently have when trying to bridge assets from one network to another, explaining:
“This integration will catalyze hundreds of millions of dollars in liquidity over the coming months in Cosmos, and will seek to rectify the challenges that users and appchains face when interacting with bridged assets sourced from other ecosystems. […] Every blockchain needs a canonical and fungible version of USDC, and Noble exists to fulfill this critical need.”
Related: Mastercard to settle transactions for USDC in APAC
According to an explanation on the official Cosmos website, Cosmos is an interconnected web of blockchain networks that use the Tendermint Byzantine fault-tolerant consensus protocol, Application Blockchain Interface and Cosmos Software Development Kit. The networks are connected through the Inter-Blockchain Communication Protocol (IBC), allowing them to move assets between networks within the overall Cosmos ecosystem.
Noble is one of more than 50 networks in the Cosmos IBC ecosystem, according to Mintscan.
In January, Injective Protocol launched a $150 million fund to promote user adoption of the Cosmos ecosystem. It was backed by Kraken Ventures, Pantera Capital, Jump Crypto and other firms known for investing in blockchain projects. In February, the Cosmos Interchain Foundation allocated another $40 million to develop core infrastructure and applications for the ecosystem.
Cosmos climbed by as much as 5% in Wednesday’s session, as the token remained close to a multi-week high. Cryptocurrency markets consolidated recent gains in today’s session, with the global market cap down by 0.24% as of writing. Solana continued to trade above $20.00, as prices consolidated. Cosmos (ATOM) Cosmos (ATOM) was once again in […]