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Cryptocurrency

Investors fast using stablecoins rather than money in keeping their profits

USDC, a stablecoin project, in recent days has shown significant use among crypto investors.

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OUSD: Stablecoin that pays you interests like a bank

In recent times the use of Stablecoins has gained momentum amid high volatility and the strong bullish trend currently in play at the crypto market.

Such evidence was attributed to the daily trading volume seen in the world’s leading stablecoins, which at the time of writing Tether’s price was  $1.00 with a daily trading volume now at 43.4 billion. 

Also, the fast-rising USDC, a stable coin project founded by Circle and Coinbase, in recent days has shown significant use among crypto investors.

Data retrieved from Glassnode revealed over 12million USDC were moved in just two transactions some hours ago.

READ: Bamboo says USD Wire Transfer option is no longer available for deposits

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READ:  Ethereum whale transfers $78 million worth of Cryptos

What are Stablecoins?

Stablecoins are cryptocurrencies created to minimize the price swings that occur in an asset. They are usually pegged to fiat currencies and often exchange-traded commodities.

Global Investors and traders are using it to give their investment portfolios exposure to the US Dollar during these times when uncertainty is high as a result of the worst pandemic (COVID-19) known to man.

Recall Nairametrics, a few months ago broke the news on, U.S national banks now permitted to hold reserve currencies for stablecoins (Tether, Circle), meaning more investors now use stable coins in hedging against the volatility often prevalent in the crypto market.

The letter which was released by the Office of the Comptroller of the Currency (OCC) responds to questions regarding the application of stablecoin-related bank activities.

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It concludes that national banks and federal savings associations may hold ‘reserves’ on behalf of customers who issue stablecoins in situations where the coins are held in hosted wallets.

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What you should know

Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies, like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol ‘USDT’.

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USDC is a fully collateralized US dollar stablecoin. It is an Ethereum powered coin and is the brainchild of CENTRE, an open-source project bootstrapped by contributions from Circle and Coinbase.

READ: Tether, the most promising stable coin, now the third most valuable cryptocurrency

  • USDCs are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency in a 1 USDC: 1 USD ratio.
  • Investors of stablecoins make money by earning dividends from the newly created digital coins given to them for holding such stablecoin stock.

Explore Data on the Nairametrics Research Website

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Follow Olumide on Twitter @tokunboadesina or email [email protected] He is a Member of the Chartered Financial Analyst Society.

2 Comments

2 Comments

  1. ido shneior

    November 29, 2020 at 12:41 pm

    Ripple is a private company.
    You talk about xrp, the digital asset

  2. Matthieu

    November 30, 2020 at 8:31 am

    USDC is a coin that nobody use

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Cryptocurrency

List of Cryptos expected to outperform many financial assets in 2021

A list of cryptos expected to do very well in 2021 has been unveiled by a renowned crypto expert.

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4 cryptos gain over 400% in a month, far outperforming Bitcoin

Widely respected crypto trader, Michaël van de Poppe recently unveiled the list of cryptos expected to do very well in 2021 amid the prevailing bullish run in the Crypto verse.

He started by mentioning Polkadot (DOT) and looking at levels where investors can buy on dips.

“We do see these retests at $15. That was one of the levels I discussed. Another one is this $13-level which is lower timeframes and then we’ve got this area around $10.50,” he said.

Polkadot protocol connects private and public chains, oracles future technologies, and permission-less networks allowing such independent networks to share information and transactions through the Polkadot relay chain,

Van de Poppe expects the next leg of the bull run to catapult DOT to his targets at $25, $29, and $45.

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In addition to Polkadot, the analyst says he’s also bullish on smart contract platform Cardano (ADA), blockchain for enterprise solutions Zilliqa (ZIL), hybrid blockchain platform ICON (ICX), high throughput blockchain Elrond (EGLD), and interoperable blockchain network Cosmos (ATOM).

Cardano is a type of blockchain that permits people to receive and send funds.

  • ADA coin is the name of the cryptocurrency.
  • It uses the Cardano blockchain and it also allows people to design smart contracts just like Ethereum.

Elrond is a type of blockchain architecture, created to facilitate a 1000-fold cumulative improvement in the execution of speed.

Its architecture combines a secure Proof of Stake (PoS) algorithm facilitating unlimited scalability.

Zilliqa is a type of cryptocurrency that focuses on making blockchains more scalable and much faster; It uses sharding technology to simplify the consensus process so that blockchains like Ethereum can provide fast transaction processing successfully.

Another solid crypto on the crypto expert’s radar is Celer Network (CELR). He says the layer-two scaling platform can potentially rise to $0.035, representing a potential return of 400% from its present value of $0.007.

Last but not least is chainlink on the bias it has more room for upsides as its still upcoming crypto and has a solid fundamental;

“Chainlink itself has a very big market share of the oracle niche. Other oracles are just starting up their first,” Poppe said.

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Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs.

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Cryptocurrency

Chainlink defying law of gravity, now more valuable than Litecoin

Chainlink traded at $25.31 with a daily trading volume of $3.9 billion and gained about 20,000 percent since its inception.

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List of Cryptos not worth buying

Chainlink (LINK) continued its bullish rally amid strong buying pressure in recent days, thereby setting a new all-time high at $25.50 and surpassing Litecoin (LTC) in terms of total market cap to become the seventh most valuable crypto.

READ: Nigeria leads the world in Bitcoin searches on Google

What you should know: At the time of drafting this report, Chainlink traded at $25.31 with a daily trading volume of $3.9 billion. It has gained about 20,000 percent since its inception.

  • Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs.
  • Since blockchains by principle can’t have access to data outside their paths or networks, a DeFi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.

READ: 100% of Chainlink (LINK) wallets are now in profit

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Recall some days back, a highly revered crypto strategist, Michaël van de Poppe, listed some crypto assets that might likely overtake XRP as Polkadot did. Michaël, via his Twitter handle, revealed the cryptos expected to surpass XRP.

“Polkadot takes over spot 4 over XRP by market capitalization. Just a matter of time before Cardano, Chainlink, and Litecoin surpass XRP too.”

READ: List of cryptos likely to overtake XRP

READ: Binance offers DeFi coders $100,000; DeFi market value hits $8 billion

For enterprises, Chainlink is an abstraction layer that securely connects smart contracts to existing backend systems, massively expanding the kinds of business use cases that are possible, from parametric weather insurance to supply chain tracking.

READ: CHAINLINK now sixth most valuable crypto, keeps setting new highs

Should you buy it now?

Many individuals have the impulse to enter a position when the price is soaring. But those support/resistance flips actually give the best entries. Specifically, the first area of concern for global investors is the $25 resistance level, on the bias that some crypto traders anticipate profit-taking amid its impressive run in recent days.

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Cryptocurrency

Why Ethereum is becoming more attractive than Bitcoin

Ethereum-based crypto market value has risen to over $48 billion from $1.9 billon a year ago.

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Ethereum, cryptocurrency, Crypto: Large investors transfer over 700,000 Ethers

The buying interest on the world’s utility crypto, Ethereum, has been on a record high since the second half of 2020, amid an increased buying pressure from institutional investors and big capital.

Still, as the attention of the financial media got fixed on flagship crypto asset, bitcoin, recent trends show that Ether (ETH) is getting very attractive; they also reveal why this cryptocurrency should become the “first cryptocurrency” for every investor.

READ: Ethereum defying law of gravity surges past $1,050

Recent data from Defi revealed that a lot of activity is ongoing on the Ethereum network, as Ethereum-based crypto market value has risen to over $48 billion from $1.9 Billon a year ago, according to data from Coingecko.

Several Defi crypto assets have had their share of the spotlight in recent times, with cryptos such as Chainlink, Compound, YAM, UniSwap, Cream finance, and Melon gaining investors’ capital inflows.

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DeFi crypto owners, in some cases, can typically receive better interest rates than they would from traditional banks, on the basis that lower operating costs are enabled when operating on an automated decentralized network.

READ: List of Cryptos outperforming Bitcoin, with weekly gains of over 100%

Using “Defi” technology, one can build smart contracts with codes that facilitate the actions of intermediaries, including managing and accepting deposits, handling collateralized loans, and liquidating collateral assets as per the terms of the contracts, should their values fluctuate.

What this means: Recall some days ago, Nairametrics broke the news that the amount of Ether held on crypto exchanges could go into extinction amid the high buying pressure seen in recent days.

Alex Saunders, a crypto expert, via Twitter, released key details on why Ether coins on crypto exchanges could be all gone within 48 hours amid high buying pressure.

“Exchanges could be out of $ETH within 48 hours. Demand has skyrocketed. Exchange reserves fell 20% from 10 million to 8 million in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range”

READ: Best performing Crypto W/W, Sushi up 85%

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READ: Litecoin displaces XRP as 4th most valuable crypto

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That said, Ethereum (ETH) miners seem to have an edge now over their arch-rivals, as they have surpassed Bitcoin (BTC) miners on transaction fees charged for some months now.

Crypto market data aggregator, Messari revealed key metrics showing that it is the longest period for which Ethereum’s transaction fee revenue has surpassed BTC in the crypto asset’s history.

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  • This prevailing macro is positive for Ether miners whose turnovers have been increased by higher fees and more transactions. In fact, Ethereum’s network hash rate has been growing consistently, having reached a near two-year high.
  • At the time of writing this report, Ethereum traded at $1,425.86 with a daily trading volume of $46 Billion. ETH price is up 13.2% for the day.

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