MakerDAO Sparks Lend: A Push Towards DAI Adoption and Better MKR Revenue

admin, 24. Februar 2023 · Kategorien: Allgemein

• MakerDAO has launched its new vertically integrated market, Sparks Lend, to help improve DAI adoption.
• The success of MakerDAO’s stablecoin DAI is largely dependent on its acceptance across markets.
• If DAI adoption increases, it could improve the revenue generated by MakerDAO and potentially drive up MKR prices due to increased whale interest.

MakerDAO Launches Vertically Integrated Market for Improved DAI Adoption

MakerDAO has launched a new vertically integrated market called Sparks Lend in an effort to incentivize and control the success and usage of its stablecoin, DAI. This new market is designed to enable users to borrow DAI at the DSR variable rate of 1%. It also taps into Maker’s DAI Direct Deposit Module (D3M) and PSM to directly regulate the supply of DAI in its market.

Whale Interest in MKR Increases

The launch of Sparks Lend may have been one reason why whale interest in MKR increased as the percentage of large addresses holding MKR grew over the last month according to Santiment. However, its velocity continued to decline which implied that the frequency with which MKR was being traded fell and overall network growth declined. This suggests that new addresses were not particularly interested in buying MKR.

Selling Pressure on MKR Increased Due To MVRV Ratio

The MVRV ratio also rose which implies that holders would turn profits if they sold at press time leading most short-term holders selling off their coins which could potentially drive down MKR prices considerably if this happens again in future.

Tether & USD Coin Capture Majority Of DeFi Market

Tether [USDT] and USD Coin [USDC] have been dominating the DeFi market leaving behind other stablecoins such as DAI struggling for adoption rates. Integrating services with L2 solutions can help make DAI more mainstream by increasing its adoption rates which would ultimately increase revenue generated by MakerDAO through interests generated from stablecoins as well as investments made on real world assets (RWA).

Conclusion

Overall, MakerDAO’s newly launched protocol could potentially help improve DAI adoption especially if it integrates with some L2 solutions which would make it more mainstream leading to higher revenue generation for MakerDAO from various sources such as interests from stablecoins and investments made on real world assets (RWAs).

SEC Proposal May Make Crypto Custody Harder, Peirce Warns of Industry Downfall

admin, 16. Februar 2023 · Kategorien: Allgemein

• The United States Securities and Exchange Commission (SEC) has proposed a new rule that may make it more difficult for cryptocurrency firms to serve as digital asset custodians in the country.
• SEC Chairman Gary Gensler said that some crypto trading platforms are not qualified custodians, and that they must comply with additional hoops such as annual audits from public accountants.
• Commissioner Hester Peirce expressed concern that this proposal would discourage investors from using entities with adequate safeguarding procedures to prevent fraud and theft.

Proposed SEC Rule

The United States Securities and Exchange Commission (SEC) has given the go-ahead to a new crypto proposal. According to it, cryptocurrency firms will have a harder time serving as digital asset custodians in the country. As per SEC Chairman Gary Gensler’s statement, the said proposal, pending official approved by the regulating body, recommends amendments to the 2009 Custody Rule that will apply to custodians of all assets, including cryptocurrencies. Normally, a qualified custodian is a federal or state-chartered bank or savings association, trust company, registered broker-dealer, registered futures commission merchant, or foreign financial institution according to the SEC.

Qualified Custodian Requirements

According to Gensler’s statement, all firms operating in the U.S., if they wish become qualified custodians under this newly proposed rule must segregate all custody assets including digital ones and also comply with additional hoops such as annual audits from public accountants among other transparency measures.

Commissioner Peirce’s Response

Commissioner Hester Peirce did not support this particular proposal stating that such stringent measures would compel investors to withdraw their assets from entities which have established adequate safeguarding procedures in order mitigate and prevent frauds and thefts. He further added that this timeframe will not allow public enough time vet all aspects of the proposal thoroughly before implementation.

Industry Track Record

Citing industry’s track record Gensler said few crypto firms were trustworthy enough to serve as qualified custodians which is why he proposed this amendment in first place .

Conclusion

The proposed amendment by SEC is an effort regulate cryptocurrency industry better ensuring investor’s funds are safe however critics fear it might adversely affect investments made through these platforms due its strict provisions .

Litecoin Booms as Bulls Take Control: Breakout Above $107 in Sight

admin, 9. Februar 2023 · Kategorien: Allgemein

• Litecoin [LTC] saw a bullish market structure with attempts to break through the $100 psychological level.
• Federal Reserve Chair Jerome Powell said 2023 could see a decline in inflation, although it could be a process that takes „quite a bit of time.“
• There is steady demand for Litecoin and its resistance points are at $106, $115 and $132.

Litecoin Market Structure

The market structure of Litecoin was bullish. The reaction at $95 and the attempts to push above $100 meant bulls have the upper hand on the four-hour chart. On the other hand, Bitcoin [BTC] saw a small move upward from $22.8k to $23.2k over the past few days.

Fed Chairman’s Statement

Federal Reserve Chair Jerome Powell said 2023 could see a decline in inflation, although it could be a process that takes „quite a bit of time.“ It remains to be seen whether the market views risk-on assets more favorably in the next couple of weeks.

Market Reaction

The market reaction on 7 February suggested that crypto assets such as Litecoin [LTC] could see more gains in the coming days. The asset bounced from its support of $95, looked set to break out above $107, and knocked on the doors of resistance at $102.5 once more.

Other Metrics

The RSI showed strong bullish momentum at 59.9 while rising OBV implied steady demand behind LTC fueling its rally further. Meanwhile, spot CVD dwindled during February which suggested distribution phase was in progress but Open Interest and positive funding rate hinted towards capital entering into the market with bullish intent

Conclusion

Above $106, stiff resistances lie at levels like$115 and$132 which can act as take-profit areas while entries into long positions can be made during bullish retest of$100 zone

Lido’s TVL Drops: Is Trouble Brewing For LDO Gains?

admin, 1. Februar 2023 · Kategorien: Allgemein

• Lido Finance [LDO]’s Total Value Locked (TVL) dropped in the last week due to a decrease in the values of native coins within its operating networks.
• The buying pressure for LDO has declined significantly, leading to a potential price drawback.
• Lido’s dominance of the liquid staking market has decreased since Coinbase’s entry into the market in June 2022.

Lido TVL Drops Despite Launch of ETH/LDO Factory Pool

The Total Value Locked (TVL) on Lido Finance [LDO] fell by 3% in the past week, despite the launch of a new ETH/LDO factory pool which saw over $16 million deposited during that period. This was due to a decrease in native coin prices across its operating networks like Ethereum [ETH], Polygon [MATIC], Solana [SOL], Polkadot [DOT], and Kusama [KSM].

Decrease In Native Coin Prices Impacting LDO Price

CoinMarketCap data shows that ETH’s price dropped 4%, while SOL, DOT, and KSM all experienced drops ranging from 3-6% over seven days. As such, buying pressure for LDO has decreased significantly with a potential price drawback looming on the horizon.

Lido’s Market Share Declining Following Coinbase Entry

According to Delphi Digital, Lido’s market share – which stood at 85% at the start of 2022 – has since come down to 73%. Furthermore, Dune Analytics‘ data reveals that in terms of ETH staking alone, Lido currently only controls 29% – down from 32% on May 22nd this year.

Competition Growing In Liquid Staking Market

The emergence of Coinbase as a major player in the liquid staking space is one contributing factor to this decline. Activity within their platform has driven up competition for users and led them away from other protocols like Lido.

Price Predictions For 2023-24

It remains uncertain whether or not this downward trend will continue into next year; however if it does then investors should brace themselves for further drops in both TVL and price performance for 2023-24.