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Solana-Based Drift Protocol Raises $3.8 Million — Project Reveals Drift Alpha Ticket NFTs

Solana-Based Drift Protocol Raises .8 Million — Project Reveals Drift Alpha Ticket NFTsWhile the blockchain network Solana’s native token has skyrocketed in value this week jumping 31.4%, the Solana-based perpetual swap platform Drift Protocol announced it raised $3.8 million from strategic investors. At the same time, Drift announced the launch of its alpha mainnet after several months of “grind, hard work, debugging, building security guardrails.” Solana Perpetual […]

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Expanding ecosystem and $1.86B futures open interest back Solana’s $250 target

Derivatives data shows institutional demand remains strong for SOL, and on-chain data points to a rally to $250.

Solana (SOL) price is meeting resistance near its all-time high again, but solid fundamentals and the impressive growth of its decentralized finance (DeFi) and non-fungible token (NFT) ecosystem are likely to drive the altcoin above $250 before year-end.

SOL/USDT 1-day chart. Source: TradingView

Institutional investor interest is likely a key factor behind Solana’s impressive 490% gain since August. For example, SOL is the fourth largest Bitwise 10 Crypto Index Fund ($BITW) component, which overall is a $1.3 billion over-the-counter tradable market instrument.

Traders should remember that this event is not necessarily positive since futures contracts require both a buyer (long) and a seller (short). Nevertheless, the increasing interest allows even more substantial players to participate.

DeFi is gaining traction

Solana’s two most prominent decentralized finance projects are decentralized exchanges with built-in yield generation programs and they hold nearly $2 billion total locked value each.

Saber (SBR) is an automated market maker (AMM) protocol that trades between stable pairs and synthetic assets and provides yields for the platform’s liquidity providers. Meanwhile, Raydium offers a decentralized exchange, yield farming, and liquidity pools.

Evidence of institutional investors’ appetite for Solana was the $12 million weekly inflow in mid-October, as reported by CoinShares recently. In the same week, the United States registered branch of FTX exchange announced support for the Solana blockchain, enabling users to trade, deposit and withdraw NFTs that conform to the Metaplex token standard.

SOL futures open interest reached a record-high

This positive newsflow has been reflected on Solana’s derivatives markets, as depicted by the aggregate futures open interest data below:

Solana futures aggregate open interest. Source: Bybt.com

The indicator reached a record-high $1.86 billion on Oct. 25, which is a 123% increase in 30 days. To put things in perspective, Cardano (ADA) and Polkadot (DOT) currently hold a $900 million futures open interest.

Traders should acknowledge that this event is not necessarily positive since futures contracts require both a buyer (long) and a seller (short). Nevertheless, this increasing interest allows even more substantial players to participate.

Another positive factor is that DeFi protocols maintain a $13.5 billion total value locked (TVL) even though the sector took a substantial hit after the 17-hour network outage during Sept. 14 and Sept. 15.

Total value locked (TVL) on Solana in USD. Source: Defillama.com

The Solana Foundation stated that bots spammed the network as Grape launched its IDO on the Solana-based decentralized exchange (DEX) Raydium. That activity overwhelmed the processing capacity with a transaction load of 400,000 per second, requiring a coordinated hard fork by validators to ignore the spam requests.

$250 seems closer than ever for SOL

VORTECS™ data from Cointelegraph Markets Pro also began to detect a bullish outlook for SOL on Oct. 20, nearly 24 hours ahead of the 15% pump that led to $210.

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 vs. SOL price (white). Source: Cointelegraph Markets Pro

Data illustrates that the current number of tweets from unique accounts discussing Solana is 32% higher than the 30-day average. Tweet volume is one component of the VORTECS™ score that identified bullish conditions for SOL on Oct. 20.

As long as Solana’s ecosystem expands, the network remains a viable solution for DeFi and NFT applications looking for cheap and fast transactions. Both onchain and derivatives indicators signal that $250 SOL by year-end is totally feasible.

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.

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Ampleforth integrates with Avalanche to introduce stablecoin alternative

The integration will allow users of the blockchain to access algorithmic language AMPL for stabilized contract interaction.

Fragments Inc., the team responsible for developing the Ampleforth protocol, has announced that Ampleforth will be integrated into popular blockchain Avalanche to facilitate the introduction of AMPL, a fully decentralized unit-of-account that can be used to denominate stable contracts.

The Ampleforth protocol holds promise as a decentralized alternative to stablecoins that can be used in core functionalities in the DeFi space such as lending, borrowing and the deployment of on-chain derivatives.

Ampleforth’s rebasing mechanism of daily adjusted supply levels enables the metric measurement of price value for users’ token accumulation, as opposed to the traditional method of price-tracked volatility. These systemic rules are then encoded on Ethereum via smart contracts. 

For instance, if a user engages in a speculative prediction that Bitcoin (BTC) will reach $100,000 by the end of the year, and it comes true, they will be granted 5 AMPL tokens. However, if the leading asset falls short of the noted target, five tokens will be deducted. In this sense, if the AMPL ecosystem grows, the user attains more tokens and vice versa.

Establishing a dependable consistency in price levels and a fluidity in supply mechanics, all the while being a non-governed decentralized model, implies that AMPL could pose an alternative challenger to the hackneyed stablecoin model.

Related: Cointelegraph Consulting: How Avalanche is reimagining DeFi

Evan Kuo, CEO of Fragments Inc., spoke of the importance of ensuring true decentralization throughout DeFi’s burgeoning ecosystems:

“It is ironic that the DeFi ecosystem currently relies so heavily on centralized stablecoins for liquidity and lending collateral. With the changing regulatory landscape and uncertainty around what the verdict around stablecoins will be, it’s important for DeFi to have a financial building block that’s decentralized, uncensorable and has some aspect of price predictability or stability.”

In late December 2018, the Fragment protocol rebranded its identity into what we know today as Ampleforth. The title was inspired by a poetic character working in the Ministry of Truth in George Orwell’s classically acclaimed novel 1984.

Analytical data from Cointelegraph Markets Pro and TradingView reveals that Avalanche’s native token, AVAX, has encountered bullish momentum over the past seven days, rising 28% to $71.30.

According to technical data from DeFi Llama, the blockchain network hosts 52 decentralized protocols amassing $8.62 billion in total value locked (TVL), the largest being Trader Joe, which comprises 30% of its market share.

Avalanche’s TVL figure has risen substantially since early August when it was trading in consolidation around the $200 million mark.

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Non-Custodial Dex Platforms Continue to Expand — Curve, Pancakeswap, Sushiswap, Uniswap Lead the Pack

Non-Custodial Dex Platforms Continue to Expand — Curve, Pancakeswap, Sushiswap, Uniswap Lead the PackFive years ago, there was a large quantity of digital currencies and blockchains, but there were very few trading platforms that dealt with decentralized exchange. Since the boom of decentralized finance (defi), there’s now a myriad of decentralized exchange (dex) platforms that allow people to swap funds in a private, non-custodial manner. These days the […]

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Altcoin Surge Could Be Just Around the Corner Despite Bitcoin Strength: Crypto Analyst Nicholas Merten

Crypto analyst Nicholas Merten says that altcoins could be in for a leg upward as Bitcoin continues to trade above $60,000. In a new analysis video, Merten says that many traders were expecting BTC to steal the show the moment it broke all-time highs following the launch of the ProShares exchange-traded fund (ETF). Instead, the […]

The post Altcoin Surge Could Be Just Around the Corner Despite Bitcoin Strength: Crypto Analyst Nicholas Merten appeared first on The Daily Hodl.

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