The world’s flagship cryptocurrency has broken through the strong resistance level of $12,000. This happened just some hours ago, according to information obtained by Nairametrics.
Why BTC is up presently?
Bitcoin bulls have been on a bullish run, triggered by high liquidity in the global money markets. Investors remain bullish in the long term despite the blurred global economic outlook and resurgence of the COVID-19 virus.
Renowned crypto investor and co-founder of Gemini Exchange, Tyler Winklevoss, earlier today tweeted about BTC’s surge saying; “And Bitcoin has breached 12k. Great way to start the week!”
And #Bitcoin has breached 12k. Great way to start the week!
— Tyler Winklevoss (@tylerwinklevoss) August 10, 2020
Over the weekend, Bitcoin’s price mostly fluctuated between the $11,400 and $11867 price levels. But just some hours ago, the popular crypto asset finally broke through the $12,000 mark.
Within the last 24 hours, BTC recorded a plus of 2.18% and was trading at a price of $11,974 at the time of writing. The market capitalization has risen from $216 billion to almost $220 billion and the Bitcoin dominance slightly to 60.7%. In addition, the control of Bitcoin’s supply has been steadily shifting towards smaller entities
The percentage of supply owned by entities holding ≤ 10 $BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%. These show that more retail investors are grabbing a stake on the most popular crypto asset and diminishing the strength of BTC whales.
Coin of the week: Ever heard of EOS?
EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion.
EOS was created and designed to allow developers to build decentralized apps (DApps). DApps are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server.
The EOS platform was developed by the company Block.one, to make it as straightforward as possible for programmers to embrace blockchain technology and ensure that the network is easier to use than rivals. It also aims to deliver greater levels of scalability than other blockchains which can only do a dozen transactions per second.
EOS was created by Daniel Larimer and Brendan Blumer. Brenden Blumer is an entrepreneur, who was one of the co-founders of Okay.com, a digitally focused real estate agency in Hong Kong while Daniel Larimer is a software programmer who has also started a series of crypto ventures such as the crypto trading platform BitShares and the Steem blockchain. They are both members of Block.one’s executive team, with Brendan Blumer as CEO and Daniel Larimer as CTO.
Why Invest in EOS?
Block.one stated that EOS can accommodate the demands of thousands of DApps, even if they were being used by a high number of people. Parallel execution, as well as a modular approach, are said to drive this efficiency.
EOS represents a truly democratic system that takes into account the will of the people, in this case, its token holders, as they can vote for block producers as well as other matters such as protocol upgrades.
EOS, like many other coins, uses a delegated proof-of-stake consensus mechanism. This concept was conceived by Daniel Larimer and aims to solve some of the flaws that are seen in conventional PoW (Proof-of-Work) and PoS (Proof-of-Stake) systems.
As stated earlier, those who own EOS tokens can vote for representatives who will be responsible for validating its transactions. One of the advantages is that it helps eliminate consolidation, where smaller miners are pushed out by those who have greater levels of computing power and resources.
EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion. EOS has gained approximately 466% return comparing its 52 weeks low to its current price today. It is currently down 49.71% from its all-time high of $22.89 that was last traded on the 29th of April, 2018.
Recently, after the Biden administration’s proposed tax hike, the coin dropped from its previous 2021 peek of $8.80 to a 0.236 Fibonacci retracement zone of $4.74, creating a new higher-low that indicates a bull market. No surprise that the market broke its previous 2021 high to create a new high of $13.18 on the 6th of May, 2021, following news of the coin proposing to increase its staking rewards. It is believed that this running will lead the coin to break its previous all-time high of 2018.
Although it is not advisable to buy coins at peak prices, recent news as earlier mentioned, suggests that an increase in demand for the coin is imminent. Block.one mentioned that the protocol needs to increase the rate of inflation from its current pace of 1% to a rate between 1.2% and 3.8% intended to increase financial incentives for voters and block producers. While token holders still need to settle on what exact size the inflation rate will increase to, the possibility of higher yields for community participation has brought demand to the coin.
A second major development for the protocol is the EOS PowerUp model, which intends to allow users to pay a fee to power up their account for 24-hours to transact on the network as opposed to paying a transaction fee for every transaction. Block.one mentions that the PowerUP model offers EOS token holders another way to earn a yield by depositing unused EOS tokens to receive a percentage of all the ‘power-up’ fees that are generated by the network. This has become an increasingly attractive option as investors are searching for ways to avoid the high gas fees (transaction fees) and network congestion on the Ethereum (ETH) network.
With the overall cryptocurrency market bullish and projects like Litecoin (LTC) and Ethereum Classic (ETC) reaching new highs, EOS is a blockchain project that could benefit investors as the cryptocurrency bull market continues.
Altcoin season? Ether, ADA, Doge and others hit all-time highs
The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday.
The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday. Ether, ADA, Doge, and Ethereum Classic hit new all-time highs.
Several large-cap tokens reached multi-year highs but Bitcoin’s price struggles to hold any of the news-driven gains that it has accrued throughout the week. The recent pump in altcoins has led to the decline in the market dominance of Bitcoin over the past few weeks. According to analysts, this is another indication that the Altcoin season is here.
The market dominance of Bitcoin has dropped to 45.31% from the previous peak of 72.48% (as of January 2021) representing a 37.48% decline in market dominance. This means that the altcoin correlation with Bitcoin is relatively low and bitcoin is no longer a “drag” on other altcoins as bitcoin trades $56,500 (down by 12.84% from its all-time high) as at the time of writing this report.
What is causing the rally?
For Ethereum, over the past few months, high gas fees (transaction charges of the crypto world) have plagued the Ethereum network as a result of the volume of transactions executed on the network which is majorly driven by DeFi (decentralized finance) platforms such as Uniswap (UNI Token). This has caused investors to switch to other networks such as the Binance smart chain network which has cheaper gas fees. Ethereum just announced that its London hard fork network will be upgraded with the implementation of “EIP-1559.” This upgrade is expected for July 2021 and the network claims it will help to significantly reduce the gas fees.
ADA is going into the smart contract space with its “Alonzo Testnet” scheduled for lunch in May 2021. The recent rally in ADA should come as no surprise, as the popular saying in the crypto world goes, “Buy the testnet and sell the mainnet launch.”
Dogecoin, which started as a meme, created an all-time high following its listing on eToro and Gemini exchanges. The listing should come as no surprise because of the calibre of individuals that are pushing for the adoption of the coin – Mark Cuban, Elon Musk, Snoop Dogg just to mention a few names.
Ethereum Classic, popularly known as the “first Ethereum” has gained about 295% to create a new all-time high. Despite the security issues of the cryptocurrency, the coin has surged to new levels without any changes.
Other altcoins like Litecoin, EOS, Vechain, Steller have also surged significantly with gains of 20% or higher.
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