China’s national blockchain project could adopt Ethereum after Chainlink onboarding
China’s surging ahead with its blockchain aspirations even as the world grapples with the basic regulation around distributed systems and digital currencies.
A fund manager revealed Sunday the country will soon onboard Ethereum to its ambitious Blockchain Service Network (BSN) project, as part of a broader push to leverage blockchain technology within the country.
Haseeb Qureshi, the managing partner of crypto-focused Dragonfly Capital, said local sources confirmed the BSN will feature Ethereum and Nervos Network, apart from other unannounced-as-of-yet public blockchains.
The development comes a week after Chainlink, the blockchain agnostic platform, was earmarked to be onboarded to the BSN in the coming weeks. The news sent LINK surging over 20 percent at the time.
While no information on how Ethereum will be utilized exists at press time, reports confirm Chainlink will be used to secure the “blockchain middleware” that enables developers to create interconnected smart contracts.
Qureshi believes the partnership marks a “big deal” for Ethereum and the broader cryptocurrency sector. The development is in step with China’s apparent “blockchain, not Bitcoin” narrative; which sees the country heavily censor the use of cryptocurrencies while pursuing rapid growth in the blockchain space.
Supporting public blockchain would mean anyone on the planet can access data and confirm transactions on the BSN. This is contrary to China’s notorious image of being extremely private about its internal policies.
Qureshi noted in a tweet:
“We predicted that since Xi Jinping announced the “Blockchain+” initiative, it would start with permissioned blockchains.”
He added that China would eventually embrace the innovation “happening in the decentralized world.”
Despite the claims, Matthew Graham of Sino Global Capital, a China-first investment firm, suggests being “super cautious” about the development until official reports on the matter:
China’s blockchain efforts have not gone unnoticed among global governments. Ministries in South Korea and the U.S. have acknowledged Jinping’s push for a distributed system, and the so-called “digital yuan,” in the country.
As reported by CryptoSlate last month, Korea is said to be “concerned” about China’s quick rise to the top blockchain developer in the world. ICON founder Ho Kim tweeted about this sentiment:
Korea has even unveiled a $400 million fund to spearhead its own efforts towards blockchain regulation, development, and setting up a legal sandbox for cryptocurrencies.
Meanwhile, in an interview last week, Ripple co-founder Chris Larsen said much of the U.S. discussion around cryptocurrencies centers around Bitcoin and Ethereum, which he defines as “dominated by miners based in China.”
Larsen noted “China is so far ahead of us (the U.S.),” and not for bad reason. China is already modeling the island of Hainan as a “blockchain hub.” Local observers state President Xi Jinping aims to make the island fully-blockchain and AI-compliant; a glimpse into how the city of the future could look.
Author: Published 7 hours ago
Here’s Why Ethereum Could Start Nosediving to $170 This Week
Ethereum’s weakness as of late has primarily been rooted in that seen by Bitcoin.
From a fundamental perspective, the cryptocurrency is arguably at one of its strongest points ever, with daily transactions recently breaking 1 million while its userbase sees massive growth.
This strength has not translated into positive price action yet, as all of the profits within the Ethereum ecosystem have been limited to the booming DeFi sector.
It is a strong possibility that some of these profits will cycle into ETH, but it remains unclear as to how long it might be before this takes place.
In the near-term, analysts do believe Ethereum is positioning to see further weakness as it continues underperforming Bitcoin.
One analyst is even noting that a break below the crucial support that it is currently hovering above could be all that is needed to send it reeling to below $170. This decline could come about in the next few days if buyers continue losing their strength.
At the time of writing, Ethereum is trading up roughly 2% at its current price of $225, marking a notable climb from recent lows of $220 that were set at the bottom of yesterday’s selloff.
This movement came about in tandem with that seen by Bitcoin. The benchmark crypto plunged to lows of $8,900 yesterday before finding some buying pressure that helped guide it back into its multi-week trading range.
Ethereum, however, has been trading below its range for the past several days and has not been able to break back into it despite the upwards momentum stemming from yesterday’s rebound.
This is an overtly bearish sign that demonstrates how ETH has been underperforming BTC over the past few days.
The crypto’s Renko chart is now indicating that it has still yet to enter a downtrend despite its recent losses.
A few key indicators on the chart also indicate that the next movement will be large and may favor bears. One analyst spoke about this in a recent tweet, saying:
Another analyst echoed this bearish sentiment, explaining that although the crypto is holding above its key support, it could still see some notable downside if buyers fail to continue defending it.
He contends that it will target $250 if this support holds, and $168 if it falters.
This post was originally published on www.newsbtc.com
Ethereum Defi: The New Price Fuel?
As tokens once more rise seemingly out of nothing to gain a billion dollars market cap in days, the potential resemblance to the ICO boom hasn’t escaped many.
Not least because these are in some ways public offerings of ownership of public code, but this time it is code that has actually been built and it has users.
That limits the number of potential participants as you need a product first to then sell the rights to participate over how to run the code business.
That acts as a sort of quality scanner, but there are still plenty of low hanging fruits in the decentralized finance space to build new products as well as to develop on the synergy of dapps that have already been built.
It’s not clear however why all this should necessarily reflect on the price of ethereum itself. Positively that is, or even negatively.
The 2017 boom has been attributed to Initial Coin Offerings (ICOs) by many, with the argument somewhat simple.
A lot of promises were being made to built innovative projects, a global audience hungry for new investment opportunities could not get enough of them with many ICOs ending in seconds, and most crucially almost all these ICO tokens were priced in eth.
You therefore needed eth first. And what is also very important if not crucial, is that once this eth was sent over to the dappers for the tokens, the dappers generally kept the eth instead of fiating it.
Therefore not only was there new demand for these new investment opportunities, but total supply also practically fell by about 10%.
Defi is different because you’re not giving eth for these tokens. Instead the tokens are given out for free to the users of the dapp. Once these tokens have a market, it’s then the usual supply and demand and in this case not just in return for eth, but also btc or usdt or whatever else depending on the exchange.
In addition, the users of the dapp don’t have to be ethereans specifically. They can be bitcoiners with their wbtc, or they can be primarily token holders.
However, if we look at this more holistically, defi like icos can lead to both an increase in demand and a practical contraction in supply.
If we look at cryptos in general instead of just eth, you’d think more people than usual would now convert their fiat because there’s more things they can do.
Except there’s usdt, but that is backed by cryptos as well as dollars. Coinbase’s version of usdt is just dollar per dollar, but interest rates in defi are usually set algorithmically depending on how many want to lend or borrow.
So usdc, for example, is currently attracting an interest rate of 0.13% on Compound. BAT, on the other hand, is at more than 13%.
All these fluctuations create some barrier to entry, but the ICO tokens were also bought by bots mainly. So here too there are dapps where you deposit your crypto and then let the bots manage it to gain the highest amount of profit.
All these eth and tokens that are deposited in these dapps are then practically removed from circulation.
They may be converted for other tokens or even usdt, but they stay within the crypto system. They don’t go back to fiat because fiat interest rates are 0%.
So there’s the potential here to have the same combination of increased demand and practically contracting total supply, but this time eth will share both with other tokens.
Bitcoin and Ethereum Flash Sell Signals, Stalling Next Bull Cycle
Bitcoin and Ethereum are stuck within narrow trading ranges, but the odds seem to favor the bears.
- Bitcoin and Ethereum sit on top of critical support levels that have been able to absorb the selling pressure of the past month.
- However, the strength of these barriers seems to be weakening over time.
- Multiple technical patterns suggest that these support walls will soon break providing sidelined investors an opportunity to get back into the market.
Bitcoin and Ethereum have been trading sideways for the past few months. Now, different technical patterns suggest they are bound for a bearish impulse before resuming their respective uptrends.
Bitcoin has been consolidating within a narrow range for the past two months without providing any clear signs of where it is headed.
Since early May, its price has mostly traded between the 50% and 38.2% Fibonacci retracement levels that sit at $8,900 and $10,000, respectively.
Due to the significance of these support and resistance levels, breaking out of this zone will be the catalyst that determines the direction of BTC’s trend. Until that happens, investors must wait to avoid getting caught on the wrong side of the breakout.
Despite the uncertainty around the flagship cryptocurrency, the TD sequential indicator estimates that momentum for a bearish impulse is building up slowly. This technical index presented a sell signal in the form of a green nine candlestick at the beginning of the month.
The bearish formation forecasts a one to four candlestick correction before Bitcoin resumes its historic uptrend.
Such a pessimistic scenario aligns with Willy Woo’s outlook.
The on-chain analyst believes that Bitcoin was preparing to enter a new bullish cycle at the beginning of the year. However, the market crash of mid-March and fears over the ongoing global pandemic appear to have “killed the party.”
Woo maintains that Bitcoin is now be bound for another bearish month before it finally enters a new bull market based on a proprietary technical model.
“The longer this bull market takes to wind up, the higher the peak price. A long sideways accumulation band is ultimately a good thing,” said Woo.
If this is the case, Bitcoin must first break below the $8,900 support barrier before the bearish outlook can be confirmed. This price level represents a substantial hurdle as both the 50% Fibonacci retracement level and the 50-week moving average are adding an extra layer of strength to it.
An increase would likely follow a weekly candlestick close below this support area in the selling pressure behind BTC. On its way down, the pioneer cryptocurrency may find support around the 100-week or 200-week moving averages, which is also where the 61.8% and 78.6% Fibonacci retracement levels sit.
These supply walls are currently hovering around $7,700 and $6,100, respectively.
It is worth noting a significant spike in demand could jeopardize the bearish outlook.
If this were to happen, Bitcoin may rise to close above $10,000. Moving past this price hurdle increases the odds for a further advance towards $11,500 or $13,800.
Ethereum has also endured a stagnation phase since the beginning of June.
Since then, the smart contracts giant has mostly traded between the $217 support and the $250 resistance level. The lackluster price action has made it nearly impossible to determine what the future holds for Ether.
However, the TD sequential index presented a sell signal in the form of a green nine candlestick on ETH’s 1-week chart. A further increase in sell orders behind this cryptocurrency will validate the bearish formation.
Under such circumstances, the TD setup forecasts a one to four weekly candlesticks correction.
Even though the support provided by the 50% Fibonacci retracement level seems to have been violated, this area continues to be of high interest for bears.
A decisive move below this zone, especially below the recent swing low of $216, would likely send Ether towards the next support barrier at $200.
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals that 1.24 million addresses had previously purchased 9.6 million ETH.
This significant supply barrier could prevent Ether from a steeper decline because holders within it would likely try to remain profitable in their long positions. They may even buy more ETH to avoid potential losses.
Due to the volatility of the cryptocurrency market, the bullish outlook cannot be taken out of the question. But there is a massive supply barrier ahead of Ethereum that may absorb any upside pressure.
The IOMAP cohorts show that for Ether to reach its upside potential, it must first break above the $230 to $243 resistance wall.
Around these price levels, roughly 2.7 million addresses had previously bought over 15 million ETH.
The uncertainty in the cryptocurrency market has sparked fear among investors, according to the Crypto Fear and Greed Index. Regardless, market participants continue adding Bitcoin and Ethereum to their portfolios.
Data from Glassnode reveals that the number of addresses with a balance in BTC recently moved past the 30 million mark. Meanwhile, the number of ETH addresses with non-zero balances reached an all-time high of nearly 42.4 million addresses.
The high levels of interest in the cryptocurrency market suggest that, in the event of a correction, sidelined investors would likely reenter the market.
A new influx of capital will eventually help propel Bitcoin and Ethereum into higher highs.
Author: Published 11 hours ago