Day: March 1, 2021

Cardano (ADA) is now the third largest cryptocurrency.

Cardano’s ADA Is Now the Third-Largest Cryptocurrency by Market Cap

The native cryptocurrency of the Cardano blockchain, ADA, has broken to a fresh all-time high at $1.30 per coin. That’s good enough to become the third-largest cryptocurrency when measured by market capitalization at $39 billion.

A competitor to the Ethereum blockchain, Cardano was launched in 2017 and is mainly backed by business venture Input Output Hong Kong (IOHK). The blockchain is the creation of Ethereum co-founder Charles Hoskinson, who is now CEO of IHOK.

ADA has been swept up in bitcoin’s bull market, even though Cardano has no major decentralized finance (DeFi) or other applications running on it like other Ethereum competitors such as Binance Smart Chain. The cryptocurrency is up 645% in the past 90 days, according to Messari.

The cryptocurrency surpassed dollar-backed stablecoin tether (USDT) and Binance’s BNB to move into third place.

Bitcoin (BTC) and ether (ETH), the native cryptocurrency of the Ethereum blockchain, have suffered under a price correction following months of double-digit percentage gains. Bitcoin is down 6% on the day to $46,800 while ether is down 6% at $1,490 as of press time.

ADA recently traded at $1.25, up 10% in the last 24 hours.

Source – Coindesk.com

Nigerian crypto investors defy crackdown to ride bitcoin frenzy

Nigerian crypto investors defy crackdown to ride bitcoin frenzy

With savings of just under $80 and a salary of $50 a month, Promise Nwabueze, a social media manager in south-east Nigeria, decided to invest all he had into cryptocurrency. The gamble paid off. Within months, his savings had increased fivefold. They have continued to rise ever since. “Presently my total net worth is $2,500 — I’m sorry I’m being so excited, but it’s incredible,” he laughed, speaking by phone from Benin City, where he was teaching a class on crypto trading. “Now I am teaching so many people because the idea is to lift up [people] in Nigeria.” Africa may have the world’s smallest crypto market, with just a 2 per cent share of global trade, according to a 2020 report by US blockchain research firm Chainalysis. But, with the value of bitcoin in circulation just under $1tn and each bitcoin selling for about $50,000, it has the largest proportion of retail users doing transactions under $10,000, according to Chainalysis.

Some observers, including the Central Bank of Nigeria, have expressed concerns that inexperienced investors could lose their meagre savings gambling on a highly speculative asset. “Small retail and unsophisticated investors also face high probability of loss due to the high volatility of the investments in recent times,” the bank said, as it sought to clamp down on the trade. Bitcoin experienced a similarly wild upswing in 2017, only to then plunge 80 per cent from its peak. But Idayat Hassan, head of the Abuja-based Centre for Democracy and Development, said the crypto rally has been so strong that “citizens are not concerned about the potential losses but instead the immediate gains they make . . . because they are not losing”.

There’s a sense of euphoria in part because it “gives the young people hope and represents opportunities” in a country where joblessness is rife, she said, noting that even her father was interested in trading cryptocurrencies. “We are the poverty capital of the world,” Nwabueze said, explaining the popularity of cryptocurrencies. “The economic strength of our country is not really encouraging — our GDP, our inflation, unemployment is on the rise, and the jobs that are available do not really pay enough to put food on your table.” Nigerians turned to bitcoin when the government froze the bank accounts of leaders of the EndSARS protests against police brutality that swept the country last autumn. Supporters began donating to the cause using bitcoin, a practice that was encouraged by the likes of Twitter chief executive Jack Dorsey. He argued that the bank’s latest pronouncement would hit already weak foreign investment into Nigeria, alarming investors who might have thought of using digital currencies to repatriate funds. “What everyone has always been afraid of is that Nigerian government policies are inconsistent,” said Asemota.

The move shows “the government is totally out of touch with the economy”. A senior banking executive said the CBN’s policy had annoyed “the kids”. “They are hopping mad! They see this as a deliberate attempt by the authorities to stifle their financial independence, especially given the role crypto played in the EndSARS protest,” he said. “To the rest of us gnarled, old cynics, it’s just par for the CBN course of stifling anything and everything they don’t understand or can’t fully control.”

For now, investors are sanguine about the chance of losses, focusing instead on the possibilities offered by cryptocurrencies. Chinyere Ofoegbu, 30, saved up $150 while working an office job that paid $210 a month, invested in crypto and says she has seen her savings grow. “I’m not one that likes to badmouth my country, but it can be really, really difficult being a Nigerian and living in Nigeria,” she said. “These people have a lot of responsibilities and don’t want to commit fraud . . . so people are looking for safe, healthy alternatives. And that is where cryptocurrency comes in.” Nwabueze warns his students about risk, and makes clear he’s not offering financial advice to avoid liability. But “losing is part of the game”, he said. “If you don’t lose, you can’t win. If you don’t want to lose then put your money in the bank and get your 2 per cent. But if you [ want] to make money, you should know that it’s going to be a rough ride.”

Source : Financial Times

Why Bitcoin price could extend its decline to $41,000.

Why Bitcoin Price Could Extend Its Decline To $41,000

Bitcoin price started a fresh decline after it failed to clear $52,000 against the US Dollar. BTC is sliding and it remains at a risk of a drop towards $41,000.

  • Bitcoin recovered above $50,000, but it struggled to clear the $52,000 resistance.
  • The price is trading well below $50,000 and the 100 simple moving average (4-hours).
  • There is a key declining channel forming with resistance near $49,220 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower towards the $41,000 and $40,000 support levels in the near term.

Bitcoin Price is Showing Bearish Signs

This past week, bitcoin price extended its decline below the $47,000 support zone against the US Dollar. The BTC/USD pair even tested the $44,000 support zone and settled well below the 100 simple moving average (4-hours).

The last rejection zone was near the $52,000 level before the price declined below $45,000. It traded as low $44,360 before correcting higher. It recovered above the 23.6% Fib retracement level of the downward move from the $52,229 high to $44,360 low.

However, the price struggled to clear the $48,000 resistance zone. It also failed to surpass the 50% Fib retracement level of the downward move from the $52,229 high to $44,360 low.

There is also a key declining channel forming with resistance near $49,220 on the 4-hours chart of the BTC/USD pair. Bitcoin is currently moving lower and it is likely to test the $44,000 support zone. If there is a downside break below the $44,000 support zone, there are chances of more downsides towards the $41,000 support zone. The next major support is near the $40,000 level.

Source : newsbtc.com