EToro Explains What Most Affects Cryptocurrency Price
Information about the listing of cryptocurrencies on exchanges and the conclusion of partnership agreements affects the price of assets the most, but this effect is short-lived and volatile. This is stated in a joint report by the eToro platform and the data aggregator The TIE.
The results of the study showed that news related to financing, mergers and acquisitions, plays out on a longer basis and can have both positive and negative impact on quotes. Experts explain this by the non-public nature of the information, which makes investors take longer to show interest in these events.
In only half of the cases, the announcement of the launch of the main network led to a positive revaluation of the asset. According to analysts, this is due to the fact that most traders are preparing for such a development of events in advance.
Information about an attack of 51% in four cases out of five leads to an average loss of 3%.
Affects prices and source of information. For example, regulatory information had the greatest impact if it was disseminated by an official source. Airdrop information - if posted on Twitter.
“Contrary to the belief that cryptocurrencies are unpredictable and subject to manipulation, the study showed that the reaction of digital assets, at least in the short term, does not differ from the reaction inherent in stocks,” said the head of The TIE Joshua Fran in a commentary to CryptoBriefing.
For the analysis, the researchers used the Crypto SigDev trading terminal. It allows leading media, hedge funds, exchanges, token issuers, research firms, and market participants to track the most important developments in the cryptocurrency space.
ViewBase: Exchanges store almost 24% of the supply of ether and 8% of Bitcoin
Nearly 24% of the Ether (ETH) supply is on cryptocurrency exchanges, according to analytics platform ViewBase.
The exchanges hold 26,768,260 ETH, which is 23.6% of the supply of ether (about $ 10.3 billion). Nearly 26 million ETH are on 10 centralized exchanges, while Coinbase alone holds 8,521,807 ETH (7.5% of supply).
According to this indicator, ether is far ahead of bitcoin - only 8.1% of BTC is stored on exchanges.
Earlier, cryptanalyst Willie Wu noted a decrease in the number of coins on exchanges. “This suggests new buyers are coming in and taking coins off the market and transferring them to cold storage,” he said. Thus, a relatively low percentage of BTC on exchanges is a “macro bullish” signal.
According to Glassnode, the number of bitcoins on exchanges declined significantly during the year, dropping from an all-time high of 2.97M BTC in February to less than 2.6M. Glassnode does not reflect the same percentage of coins on exchanges as ViewBase. According to Glassnode, there are less than 16.6 million ETH (14.7%) and almost 2.6 million BTC (14%) on the exchanges.
WBTC entered the top three largest DeFi tokens
The capitalization of WBTC, the tokenized version of Bitcoin deployed on Ethereum, has skyrocketed to a new high this week.
This token has already risen to the third line in the ranking of the largest digital currencies launched in the DeFi decentralized finance market. At the time of publication of this material, the capitalization of WBTC exceeded $ 1.57 billion, as evidenced by data from the DeFiPulse service.
Currently, 116,885 WBTC are backed by real bitcoins. This week, the token was able to bypass Synthetix, Curve, Aave and Compound in terms of capitalization.
The closest competitor to WBTC is the Maker token, whose capitalization is $ 1.99 billion.The first place is held by the UniSwap project, the cost of which now exceeds 2.67 billion.
WBTC is an ERC-20 token backed by Bitcoin at a 1: 1 ratio. In mid-September, the DeFi market had 80,000 WBTC, the total capitalization of which was about $ 1 billion. In total, more than 164,000 BTC are blocked in the DeFi protocols, which is about 0.85% of the total supply of the largest cryptocurrency.
The first WBTC token was issued back in January 2019. Until the end of July, the daily trading volume did not exceed $ 1 million, now this figure exceeds $ 50 million.
I am planning to use etoro or iq option on trading. Which do you think is better?