A popular blockchain project is rising again. How long will the green last?
A popular blockchain project is rising again. How long will the green last? The cryptoassets market is back in the green, with the combined market cap of the space rising 4.5% over the past day. The top projects appreciated 6%, while bitcoin remained stuck below £5k ($7k). However, it seems most alts may continue their retracement soon.
The current optimism might last for a couple of weeks — until it’s halted, as traders become confident just when they should be worrying about managing their risk. Nevertheless, let’s look at one of yesterday’s top performers — EOS, which rose by 43%.
EOS is a smart contracts platform that is undergoing development as well as an ICO fundraising process since last June. It has raised over £1.9 billion ($2.7 billion) since, 50% more than Telegram’s ambitious ICO. Here’s the best analysis on what caused the rise.
The bearish path being painted the past few months may look daunting. Yet, the declining trading volume compared to the increasing number of short positions signals decreasing selling momentum for the cryptoasset that sets the tone for this space.
However bullish this might seem, it’s important to note that the exact same trend occurred during last January’s dead cat bounce. Some claim the alt season that followed bitcoin’s price drop in December was responsible for it. Will the same thing happen now?
The current price consolidation implies that bitcoin buyers are still afraid but are willing to risk getting on the next alternative cryptoasset pump. As bears are overpowering the bulls, in the case a large player starts selling bitcoin, a cascading sell-off may occur.
The current alternative cryptoassets short-term revival has been anticipated by the likely short-term reversal of ether’s price. Full fundamental and technical analysis here.
The ongoing difficulties posed by Canadian banks and crypto purchases has not been a problem; ‘local bitcoins’ to the rescue. Meanwhile, JP Morgan, of which Jamie Dimon is CEO, is being sued over excessive fees with regards to such purchases. Ironic!
Bitmex’s latest research is a complete guide to Proof-of-Stake algorithms, especially Ethereum’s latest proposal. In brief, it’s the best one so far, but might not be good enough.
Unchained’s latest podcast episode is an interview with the founders of Bitfury, a major blockchain solutions company and mining operator. Did you know their average bitcoin mining costs sit below £2.1k ($3k)?