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Lipika Deka

China FUD sends Indian crypto investors into a frenzy

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The latest announcement by Chinese central bank, People’s Bank of China [PBoC] with regards to making all crypto transactions illegal has sent Indian investors into massive sell-offs. Cardano [ADA], Polygon [Matic], and Solana [SOL] have been investor favorites for quite some time but the latest news witnessed many market players cashing out. As many resorted to offloading their assets, others settled for the dominant cryptocurrencies like Bitcoin [BTC] and Etherium [ETH] as FUD intensified in the market following the development.

Coinciding the news, popular Indian crypto exchanges have recorded a 50% rise in the volume of transactions in a span of two days. Experts believe that the rush was attributed to those who invested in the crypto with smaller market caps. However, seasoned investors remained unfazed by the recent turn of events.

Indian cryptocurrency exchange, BuyUcoin’s founder Shivram Thakral stated,

“The largest sell-offs we’ve seen are in the biggest gainers as investors are likely to cash out their investments in assets like Cardano, Solana, Matic”

According to him, China’s ban set off alarm bells among the newbie investors into a dumping spree while others traded for the safer assets. Previously Bitcoin [BTC] was the most preferred token for Indian users until recently many new investors started exploring other altcoins.

Can China’s loss be turned into an opportunity for India?

The recent crackdown has nevertheless drawn a lot of attention from the global crypto community. However, not many were surprised. China has a long history of targeting crypto-related activities be it Bitcoin and crypto mining or clampdown on exchanges and businesses.

This has resulted in mass exodus and shifting of operations to crypto-friendly countries such as Bahamas, Kazakhstan as well as parts of the US, Canada, etc. On the other hand, with its growing tech-savvy population and prudent steps towards bringing the much-needed regulatory clarity, India can provide a huge market by attracting crypto-related business and capital. Drafting new legislation compatible with the burgeoning technology and providing support to crypto-related startups is the need of the hour.

Bitcoin [BTC] may be destined for bull run despite Chinese crackdown

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China’s central bank, People’s Bank of China [PBOC] has vowed to penalize Bitcoin and crypto-related businesses. Continuing its tough stance, the bank declared all activities such as trade offering, order matching, issuance of tokens and derivatives as illegal.

The latest move by the Chinese authorities reflects a similar event that transpired four years back. Bitcoin proponent, Lark Davis shared the same view. In his tweet, Davis drew parallel to the previous event of China banning ICOs and the present crackdown on Bitcoin and crypto-related activities and speculated that a bull run could be just around the corner. Exactly four years ago, China prohibited the sale of ICOs during its height of popularity leading to a slump in Bitcoin’s price from $4,892 to $3,194 in a span of a week. However, the downtrend was brief as Bitcoin skyrocketed near $20k, over a 526% surge in three months.

If history repeats, Bitcoin could witness a massive rally.

BTC ALL graph coinmarketcap

The above announcement sent a flurry of reactions across several quarters, especially in the social networking platforms. US Senator, Patt Toomey took to Twitter last evening to express his thought on the recent development. In his tweet, the republican member slammed the country’s stance as ‘Authoritarian’ and calls for the US to seize the opportunity in terms of attracting resources and other structural advantages. In a series of tweets, he expressed regret as to how China’s economic intolerance has led down its people who value liberty and a high standard of living.

According to a translated version of the Q/A posted on the PBOC website, the central bank categorically stated that foreign cryptocurrency exchanges operating in mainland China would be banned and their usage of the internet to provide services to its denizens would also come under illegal financial activity.

The central bank stated,

“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity.”

Furthermore, the domestic employees working for those overseas financial exchanges and other related institutions would be subjected to investigation. The Chinese authorities cited the reason behind the strict measures is to effectively monitor the rise of illegal and criminal activities associated with it and eradicate investments based on risk and speculations.

Will Bitcoin [BTC] repeat the history?

Earlier this year, China initiated a crackdown on Bitcoin [BTC] and crypto mining operations. The shutdown was reflective of China’s goal of becoming carbon-neutral by 2026 as crypto mining consumes more energy. However, the development sent both hash rate and price of Bitcoin on a downward spiral, triggering FUD in the market. Following the news, the cryptocurrency fell below $30k. Months later, the hash rate and price have recovered to a large extent.

Many experts believed that the recent announcement is harsh but its effects on the market will be short-lived.

Litecoin activity stands higher than Cardano, Bitcoin Cash, Dogecoin

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The number of active addresses on the Litecoin [LTC] network has surpassed that of Bitcoin Cash [BCH] and Dogecoin [DOGE]. According to Jay Milla, the director of the Litecoin Foundation tweet, the growth of wallet activity on the Litecoin network has risen to 450k, outpacing other large-cap cryptocurrencies. And after LTC, Cardano’s [ADA] active address count stood at 214k, followed by Bitcoin Cash [BCH] with 101k and Dogecoin [DOGE] with just 60.89k.

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Dogecoin [DOGE] and Cardano [ADA] have seen a surge in transaction volume in recent times. Elon Musk fueled the DOGE rally in the first few months of 2021, exacerbating it to reach an all-time high of $0.73. However, as the hype faded, so did the price and network activity.

On the other hand, Cardano’s Alonzo update significantly boosted its price in August this year but its address count remained low.

So what does this imply? The active address is a metric measured in terms of an increase in the network activity on-chain. Analysts can utilize these data to predict the behavior of the crypto asset in the market and the possible price changes.

Litecoin has seen a spike in such active wallets adoption due to its high speed and cost-effective transaction. Recently a new upgrade was introduced called, ‘OmniLite’, a protocol designed to implement smart contracts, non-fungible tokens [NFTs], and other decentralized assets. Another interesting feature is the crucial implementation of privacy transactions on an experimental basis via the MimbleWimble [MW] protocol.

Litecoin’s Rising hash rate

LTC hash rate has been on the rise since July this year. At 325 TH/s, LTC hash rate climbed to a three-month high.

hash rate

Looking at the bigger picture, the Litecoin hash rate had surged to an ATH of 523.8 TH/s days before the second halving. Right after the event, the hash rate figure fell below 140 TH/s, a decline of over 73% in just 6 months. Since then, it has kept low. The crypto’s hash rate came close to 400 TH/s during the 2021 rally. Shortly after which, it fell significantly again.

Tron Foundation and Valkyrie to set up a joint trust

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Justin Sun led Tron Foundation partnered with Valkyrie investments to launch the Valkyrie Tron trust on September 17, 2021. According to the press release, the latest joint trust is the first of its kind offering by the Tron ecosystem in terms of global institutional-grade funds in recent times. The report stated that it will begin with $55 million in assets under management [AUM] with a plan to register for listing in the US in 2022.

Tron Foundation’s Justin Sun asserted that the ecosystem has emerged as one of the most inclusive blockchains due to the two most important factors- energy-efficient and cost-effective. He added,

“Tron was incepted with a mission to decentralize the Web. TRX is the layer-1 token of the network that powers the entire Tron ecosystem. This is the initial step in its upcoming strategic initiatives to be announced shortly.”

Since its inception, the TRX network has raked in total assets worth $50 million and more than 54 million users globally. Additionally, it houses, Tether, the largest stablecoin by market cap of more than 50% share.

Valkyrie, a US-based digital asset investment firm, had earlier launched crypto trusts that include Bitcoin [BTC], Algorand [ALGO], Polkadot [DOT] besides TRX. The firm is one of a few prominent asset management firms to file for a Bitcoin ETF this year. TRX’s latest joint venture is expected to help it expand into the US market.

On the other hand, TRX has declined significantly over the last 24 hours. TRX was down by 6% and was trading at $0.108 at press time, in response to market-wide sideways price movement.

Tron Foundation’s latest development

The recent development of the foundation partnering with Valkyrie comes days after Gate.io joining the TRX ecosystem. Under this deal that involved integration with the TRC721 standard and BTFS, Gate.io’s decentralized applications [DApps] would become fully compatible with the TRX blockchain.

Additionally. the crypto exchange will partner with APENFT Foundation to release the first on-chain display of the non-fungible token [NFT] work “UNTITLED [KIMPSONS]” by KAWS on September 15.

Bitcoin [BTC] locked in Lightning Network hits ATH at 2.44k BTC

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Bitcoin, the dominant cryptocurrency in the cryptocurrency space, has its own ups and downs. Many proposals were made to address some of the issues. Among them was the Lightning Network protocol, which was introduced to address network scalability issues.

According to DeFi Pulse, Bitcoin [BTC] locked in Lightning Network reached an all-time high of 2.44k BTC on September 12th. The cryptocurrency locked in the second-layer scalability solution briefly slumped from 31 August to 3 September due to the crypto market’s back-to-back price corrections. Since then, the figures for BTC locked in LN have steadily risen in tandem with the cryptocurrency’s price recovery.

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Bitcoin LN growth

On the other hand, the total value locked in LN in terms of USD peaked on September 7th at an ATH of $125.24 million. It has since declined slightly, but it is still close to the ATH. At press time, the figures stood at $111.17 million. Nonetheless, this is a positive development for the Bitcoin ecosystem. At a time when it is trading below the $45,000 mark after El Salvador adopted BTC as a legal tender, there has been further interest in the LN capacity.

Electra Group, one of Mexico’s biggest retail franchises, hinted at the possibility of adopting Bitcoin on the LN a few days back. On his most recent visit to the United States, Ukraine’s President, Volodymr Zelensky, held talks with crypto investors about the prospect of making Ukraine a digital asset hub.

LN, which has been lauded for its ability to reduce wait time and transaction fees, has garnered even more attention. This is evidenced by the fact that it has doubled its BTC capacity in a year, with over 70,000 open channels. In less than two months, from June to August 2021, there was a 46 percent rise. Constant technical up-gradation can extend the network’s reach as it evolves.

Here’s how Algorand Foundation plans to boost DeFi innovation with a $300M fund

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Algorand Foundation has announced the launch of a DeFi fund called ‘Viridis’ on September 10. The fund in question aims to support 150 million Algo to boost the decentralized finance ecosystem on Algorand, according to the official blog post.

To propel the growth of the fund, the foundation introduced the $5 Million Price Oracle SupaGrant and the $5 Million Bridge SupaGrant. The main objective behind the funds is to accommodate the growing demand for the Defi space and support the development of decentralized infrastructure.

Algorand’s SupaGrants program aims at skilled teams of developers and organizations in order to create security and superior solutions for the ecosystem. The program mainly focuses on teams with relevant experience in building advanced solutions such as automated market makers [AMMs], decentralized exchanges [DEX], or bridges. It also intends to utilize its expertise to design an oracle system. Primarily, the teams must have the capacity to be able to maintain the oracle long-term and efficiently respond to security and non-security concerns that may come up.

What is Algorand’s “Virdis” all about

“Viridis” reflects Algorand’s ambitious roadmap to create a green and carbon-free ecosystem and implement the same in its rapidly evolving DeFi domain. Along the same line, the blog post stated,

“And everybody that builds their DeFi applications on Algorand can do so in the knowledge that they are building on the most sustainable, carbon negative, high performance blockchain. Viridis will enable sustainable, green, wealth creation.”

The first $5 million SupaGrant will be used to create two-way bridges from Ethereum and other chains. Once ported to the Algorand blockchain, decentralized applications will require access to market data to handle a wide range of smart contract functions. The second $5 million SupaGrant is involved in seeking proposals for the purpose of integrating the oracle networks with associated price feeds. The remaining funds will be deployed on the further development of the application across this DeFi ecosystem.

Algorand isn’t the only blockchain to have come up with a DeFi fund. Harmony, another blockchain platform, announced a $300 million fund recently.

Besides, ALGO, Algorand’s native cryptocurrency, performed well in September. The token has risen by more than 77 percent in two days, from a low of $1.19 to a press time price of $2.11.

ALGO 7D graph coinmarketcap