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Cena Bitcoin „ulgowy“ ruch do $47K spycha BTC poniżej trajektorii stock-to-flow

Twórca modeli stock-to-flow, PlanB, twierdzi, że Bitcoin nadal zachowuje się „jak w zegarku“ w odniesieniu do ich przewidywań.

Bitcoin (BTC) może unieszczęśliwiać traderów długoterminowych, ale jeden byczy analityk twierdzi, że „ulżyło mu“, że spadł o 22% w ciągu tygodnia.

W swojej ostatniej aktualizacji w mediach społecznościowych, analityk quant PlanB zauważył, że dip cenowy do poziomu poniżej 48 000 USD wysłał BTC/USD poniżej celu określonego przez jego model cenowy stock-to-flow.

„Zdumiewający“ stock-to-flow znów ma rację

W związku z tym Bitcoin nie jest już „front-running“ stock-to-flow, który tradycyjnie jest bardzo dokładnym narzędziem do prognozowania cen. Po handlu powyżej wymaganego poziomu, PlanB zasugerował, że stał się zaniepokojony, że postęp staje się nieorganiczny.

„Jestem jakby z ulgą, że cena btc jest teraz znowu pod wartością modelu s2f“ – napisał w rozmowie z autorem „The Bitcoin Standard“ Saifedeanem Ammousem, który nazwał jego przewidywania „zdumiewającymi“.

„Przez chwilę myślałem, że ludzie są przednimi biegaczami modelu i że rozpoczął się supercykl. Teraz wracamy do normalności … jak w zegarku“.

Oba terminy „clockwork“ i „supercykl“ będą znajome dla długoterminowych hodlerów, te często opisują relację Bitcoina do stock-to-flow i cechy obecnej passy byków, odpowiednio.

Jak donosi Cointelegraph, dwie iteracje modelu, stock-to-flow i stock-to-flow (S2F) cross-asset (S2FX), w różny sposób wzywają do średniej ceny BTC/USD w wysokości $100,000 lub $288,000 od teraz do 2024 roku.

Wcześniej PlanB powiedział, że wierzy, że Bitcoin nie zatrzyma się na 100 000 USD, które powinien uderzyć w tym roku

„Bitcoiners są często zbyt byczy na rynku byka, a zbyt niedźwiedzi na rynku niedźwiedzia!“ gospodarz podcastu Stephan Livera, odpowiedział Ammousowi.

„Nie sądzę, że tym razem również nie mamy supercyklu“.

Wstrząs nastrojów trwa

W międzyczasie różne czynniki były przedstawiane jako impuls do najnowszej rundy strat cenowych, te w tym kontrakty terminowe CME obecnie notowane poniżej ceny spot w miarę wchodzenia niedźwiedzi, a także negatywna premia Coinbase.

Ta ostatnia sugeruje byczą postawę, gdy jest dodatnia, ale odwrotna sytuacja – gdy cena spot Coinbase jest niższa niż cena innej giełdy Binance – jest również prawdziwa.

Ujemna premia zbiegła się w czasie z serią dużych zleceń sprzedaży na Coinbase, z których każde spowodowało krótki skok w dół w cenie spot orderbook.

Na znak, że irracjonalne nastroje wciąż muszą opuścić rynek, Crypto Fear & Greed Index również pozostał na terytorium „chciwości“ pomimo spadku do miesięcznych minimów, choć wciąż sugeruje, że reset nastrojów jeszcze nie nastąpił.

Podczas początkowego spadku z rekordowych poziomów wszech czasów w pobliżu $65,000, Bitcoin doświadczył masowego upłynniania długich pozycji.

Bulls zijn nog steeds in volle kracht

Crypto-analisten over Bitcoin-recordrun: ‚Bulls zijn nog steeds in volle kracht‘

Experts zien geen echte reden voor de marktleidende cryptocurrency om zich op korte termijn terug te trekken.

In de afgelopen 24 uur is Bitcoin (BTC) in staat geweest om bijna naar $50.000 te klimmen, grotendeels dankzij de investering van $1,5 miljard van deze week van de innovatieve automaker Tesla. Hoewel dit betekent dat de marktleidende cryptocurrency nu al meer dan 100% boven Crypto Cash zijn vorige recordhoogte van iets minder dan 20.000 dollar is geklommen, die in 2017 werd gezet, heeft de crypto-handelaar onder het pseudoniem „Cheds“ er vertrouwen in dat de huidige run nog hoger zal doorgaan.

„Ik denk dat veel mensen hier hopen op een plafondformatie, of zichzelf op zijn minst wijsmaken dat die er moet komen omdat de prijs zo snel zo sterk is gestegen,“ vertelde de expert met een focus op technische analyse aan Cointelegraph.

In december 2020 was de bitcoin de $19.892 van 2017 voorbijgestreefd, gevolgd door een dramatische stijging naar $41.981 in januari 2021. Na een korte retracement, trok de crypto-marktleider vervolgens aan naar een nieuw hoogtepunt van $48.911 op 11 februari.

„Naar mijn mening zijn de stieren nog steeds in volle kracht, met elke dag nieuwe berichten over verdere belangstelling van institutionele beleggers en een toenemende vraag, die de huidige stijging zal blijven aanwakkeren,“ zei Cheds. Meer mainstreamspelers stappen momenteel in Bitcoin. Softwaremaker MicroStrategy bijvoorbeeld was tot voor kort met een investering van 1 miljard dollar de grootste investeerder uit het bedrijfsleven, maar autofabrikant Tesla valt nu die eer te beurt. Sindsdien hebben echter veel andere bedrijven geïnvesteerd in de crypto-marktleider.

Hij doelt op het recente nieuws dat Canada gisteren

„Als sommige mensen denken dat Bitcoin nu zal dalen vanwege de nieuwe Canadese Bitcoin ETF of het Chinese Nieuwjaar, dan is dat gewoon een excuus dat ze nodig hebben omdat ze toch willen verkopen,“ zoals de expert de onheilsprofetieën van critici classificeert. Hij doelt op het recente nieuws dat Canada gisteren het eerste Noord-Amerikaanse bitcoin indexfonds heeft goedgekeurd.

„Gisteren raakten we een nieuwe recordhoogte op 49.000 dollar,“ zoals handelaar CryptoWendyO het optimisme van haar collega herhaalt. „Maar we hebben moeite om de grens van 50.000 dollar te bereiken,“ vervolgt ze. Waaraan zij echter toevoegt:

„De 50.000 is onvermijdelijk, maar in het weekend moeten we voorlopig de US$44.700-zone in de gaten houden, tenzij we een tweet van Elon Musk krijgen die #Bitcoin naar US$54.000 katapulteert.“

De Tesla CEO was de afgelopen dagen weer aan het „tweeten“ over cryptocurrencies, maar hij was de laatste tijd vooral Dogecoin (DOGE) aan het opstoken.

21Shares lists Polkadot ETP on Swiss exchange SIX

21Shares lists Polkadot ETP on Swiss exchange SIX

21Shares‘ Crypto Basket ETP has now replaced Bitcoin Cash with Polkadot.

21Shares, a major provider of exchange-traded cryptocurrency products (ETP), is launching the world’s first Polkadot (DOT) ETP.

The new product, called DOT ETP, will be listed on the SIX Swiss Exchange on 4 February 2021, 21Shares said on Tuesday.

Polkadot was added to 21Shares‘ flagship Crypto Basket ETP (HODL) product on 29 January. After five major cryptos such as Bitcoin (BTC) and Ether (ETH), HODL has removed Bitcoin Cash (BCH) and now lists Polkadot with the second largest share after Bitcoin.

According to HODL ETP data from MVIS Indices, Polkadot now makes up about 27 percent of the product, while Bitcoin makes up of Bitcoin Evolution about 50 percent.

A 21Shares spokesperson told Cointelegraph that the company does not make decisions about adding or removing a particular asset from the HODL ETP. The representative explained that such decisions rest with MV Index Solutions.

„As an issuer, we cannot decide what to add and take out. There is a committee that decides what components to add, increase, decrease or take out altogether.“

According to the announcement, the addition of Polkadot to the 21shares Crypto Basket ETP is the „perfect time to add another single-asset ETP to the already broad range of crypto ETPs“ that 21shares can offer.

CEO of 21Shares Hany Rashwan stressed that the company continues to serve demand from institutional investors

„After investors acquired their first Bitcoins through our ETPs, there is a natural investment transition into other crypto-assets,“ Rashwan said. He added that the firm plans to offer two or three more ETPs in the next three months:

„We benefit from trusted partners to provide liquidity and due to continued institutional demand, we are launching the DOT ETP to provide investors with a safe, regulated and easy way to invest in this exciting new blockchain technology. In the next 3 months, we aim to launch 2 to 3 more innovative ETPs.“

Polkadot is a next-generation blockchain protocol that connects multiple specialised blockchains into a unified network. In mid-January 2021, Polkadot’s proprietary token called DOT made headlines when it overtook XRP to become the fourth largest cryptocurrency. At the time of going to press, DOT was at $16.82. That’s an increase of almost 5 per cent in the last 24 hours and around 82 per cent in the last 30 days, according to data from CoinGecko.

„Beware the Bitcoin bubble,“ says Bank of America

About US$10 billion was invested in shares last week, according to the BofA, while US$1.5 billion went into gold.

Bitcoin „is the door to previous bubbles“ according to Bank of America analysts, who say digital currency is „bubbling“, citing the „violent“ action of the „frothy“ price that has driven digital currency in the last two months.

The bank said that cryptomime has soared in the past 12 months and reached levels similar to other bubbles, such as China’s in the late 1990s, 2000s and gold in the 1970s.

„Foaming prices, greedy positions, inflationary formulators and desperate […],“ said BofA chief investment strategist Michael Hartnett.

Bitcoin mother of all bubbles
Bank of America is one of the largest financial institutions in the world, serving approximately 56 million customers in the United States. The bank is among the world’s leading wealth management companies.

The bank recommended selling a number of shares due to „sparkling prices“ after its data showed that investors were invading the money markets and gold funds, while the stock market exuberance declined slightly.

The BofA said the trend to „buy everything“ in 2020 had reached 2021, but expected a slowdown in risky assets (bitcoin) as „politics, positioning and profits“ peaked around March.

About $10 billion was invested in stocks last week, according to the BofA, while $1.5 billion went into gold.

It is not clear yet how much investment went into Bitcoin, with GrayScale alone attracting about half a billion a week at the end of December.

Investors have been investing in gold and Bitcoin as the dollar weakens with the mass printing of cash.

In addition, digital currency is being adopted as a portfolio diversification after numerous studies conclude that the asset increases risk-adjusted returns.

This, however, may look like a bubble because it is the first time we are witnessing the launch and integration of an asset that was not subject to the laws of wealthy investors.

Startups like the then Facebook or Google are closed to the public in the early stages by the Securities Act of 1933.

At this stage of rapid growth and rapid appreciation, the Bitcoin Millionaire company is not publicly traded and therefore does not have a price that we can all invest in.

However, it does have a private price that is affordable only to the rich and banks. If that price were accounted for too, all those firms would look like a huge massive bubble.

So it is not that Bitcoin is a bubble. It is more that, for the first time, we are witnessing the true open public pricing of an asset from its inception.

An asset that is growing in adoption and therefore is growing rapidly in price because bankers did not first buy all the shares or currencies to sell them to the public at a high price in an Initial Public Offering (IPO) as they did with Facebook, Google, and all the other companies.

Showing a disconnect between the rich first and then the rest, for everyone first based on merit.

This difference explains why the term „bubble“ is vomited every time Bitcoin goes up.

If the bankers had bought it before everyone else then it would have been a bubble.

Bitcoin, however, was publicly released at a price of zero and at a zero market capitalization, unlike any asset before it, perhaps in history.

So, if Bitcoin is a bubble, the rapid increase in value of any growing startup is a bubble too, something that would make everything a bubble, and therefore none.

Translated with www.DeepL.com/Translator (free version)

Aumento previsto in punti di volatilità di Ether-Bitcoin verso Altcoin Season Ahead

Il mercato delle opzioni sta segnalando un imminente cambiamento nel focus del mercato – da BitQT a etere relativamente sottovalutato e altre crittocorse alternative.

Lo spread tra la volatilità implicita semestrale

Lo spread tra la volatilità implicita semestrale (IV) per l’etere (ETH, +7,53%) e il bitcoin (BTC, +11,82%) – una misura della volatilità relativa attesa tra i due – è salito a un massimo record del 46%. Questo supera il precedente picco del 45% registrato il 21 febbraio 2020, secondo il fornitore di dati Skew. Gli spread a tre e sei mesi sono saliti a un massimo di 11 mesi, rispettivamente del 32% e del 23%.

L’allargamento degli spread IV indica che il mercato si aspetta che il mercato si aspetti che l’etere e le altre monete alternative registrino nel breve termine una percentuale di movimenti più alta rispetto al bitcoin.

„I trader si aspettano una maggiore volatilità dell’etere rispetto al bitcoin“, ha detto a CoinDesk il CEO di Skew, Emmanuel Goh. „Questo è coerente con la diminuzione della correlazione e con un aumento dell’interesse per le valute crittografiche alternative“.

La volatilità implicita è l’aspettativa del mercato su quanto rischiosa o volatile sarebbe un’attività in un periodo specifico ed è guidata dalla pressione netta di acquisto per le opzioni e dalla volatilità storica dei prezzi. L’etere è la seconda valuta crittografica per valore di mercato, e molte altre cosiddette altcoin sono basate sulla tecnologia a catena di blocco dell’Ethereum. Come tali, le crittocorse alternative tendono a commerciare in linea con l’etere.

Lo spread di un mese ha visto un aumento di cinque volte dal 30 dicembre, insieme ad una correlazione positiva che si è indebolita tra etere e bitcoin.

La tendenza sembra destinata a continuare

La correlazione realizzata a tre mesi è scesa dal 67% al 56% negli ultimi cinque giorni per toccare il livello più basso da marzo 2018, secondo la fonte dei dati Skew. La tendenza sembra destinata a continuare, come suggerito dall’allargamento degli spread IV.

Mentre l’aumento dello spread di volatilità implica la possibilità di mosse percentuali relativamente più grandi in altcoins, non ci dice nulla sulla direzione delle mosse.

Detto questo, le crittocorse alternative sembrano ora a buon mercato rispetto al bitcoin e il mercato è estremamente rialzista. Quindi gli alts potrebbero presto registrare guadagni percentuali maggiori rispetto al leader del mercato delle crittocorse bitcoin, come previsto dagli analisti all’inizio di questa settimana.

Nonostante sia passato da $700 a $1.200 questo mese, l’etere è ancora sotto di quasi il 20% rispetto al suo massimo record di $1.432,88 raggiunto nel gennaio 2018. Allo stesso modo, litecoin (LTC, +2,7%), stellare (XLM, +12,93%), chainlink (LINK, +2,79%) e altre monete di spicco non hanno ancora fissato nuovi massimi a vita. Al prezzo attuale di oltre 37.000 dollari, il bitcoin è aumentato di oltre il 60% rispetto al precedente massimo a vita di 19.783 dollari registrato tre anni fa.

Alcuni potrebbero sostenere che la volatilità implicita riflette le aspettative degli investitori sulle turbolenze dei prezzi e potrebbe non essere riflessa nei grafici futuri. Tuttavia, i dati storici mostrano che gli spread di volatilità implicita sono indicatori affidabili dei prossimi cambiamenti del mercato.

Ad esempio, lo spread di ether-bitcoin IV si è manifestato nella seconda metà di settembre 2020, avvertendo di una grande mossa in bitcoin. La cripto-valuta ha sovraperformato la maggior parte degli altri criptos di un margine significativo nell’ultimo trimestre dello scorso anno con un rally del 168%.

L’ex scettico Ray Dalio di Bitcoin esprime come BTC potrebbe fornire protezione contro il crollo della valuta Fiat

Ray Dalio, un noto investitore si è recentemente rivolto al mondo del bitcoin all’inizio di quest’anno.
Recentemente ha detto in una sessione di ask me anything che la moneta di punta potrebbe fornire una protezione contro il deprezzamento del valore della moneta Fiat.
Ray Dalio, un noto investitore si è recentemente rivolto al mondo del bitcoin all’inizio di quest’anno. Recentemente mi ha detto in una sessione di ask me anything sulla piattaforma sociale Reddit che la principale moneta criptata potrebbe fornire protezione contro il deprezzamento della moneta Fiat.

Prima del mese scorso, Reddit era un noto scettico del bitcoin, ma a novembre ha detto che l’asset potrebbe integrare l’oro come investimento.

„Penso che il bitcoin (e alcune altre valute digitali) si sia affermato negli ultimi dieci anni come un’interessante alternativa all’oro, con somiglianze e differenze rispetto all’oro e ad altri beni mobili (a differenza del settore immobiliare) a disponibilità limitata“.

Ha aggiunto:

„Quindi potrebbe servire come diversificatore dell’oro e di altri beni patrimoniali di questo tipo“.

L’investitore ha poi discusso le sue opinioni su numerosi aspetti diversi dell’economia internazionale nella sua forma attuale. Dopo la pandemia di coronavirus, le economie di tutto il mondo hanno iniziato a stampare più denaro per tenere il passo con l’aumento del debito dovuto alla crisi economica. Gli Stati Uniti, in particolare, hanno stampato miliardi su miliardi di dollari come risposta.

Ray ha proseguito sostenendo che l’inflazione degli attivi si sarebbe innescata con l’aumento della stampa di denaro, aggiungendo:

„Siamo in una marea di denaro e credito che sta sollevando la maggior parte dei prezzi dei beni e distribuendo la ricchezza in un modo che il sistema che siamo giunti a ritenere normale non è in grado di fare, e che sta minacciando il valore del nostro denaro e del nostro credito… Molto probabilmente questa inondazione non si attenuerà, quindi quei beni non diminuiranno quando saranno misurati nel valore del denaro che si sta svalutando. È importante diversificare bene in termini di valute e paesi, oltre che di classi di attività“.

Kryptomarkeder blir grønne etter den tøffe uken, Bitcoin-prisen er $ 18k

Bitcoin-pris treffer Historiske $ 19.000 milepæl, Eyes New Record Highs

Etter det siste stupet til $ 16,1 000, har Bitcoin gjenopprettet seg og nesten på $ 18 000 igjen etter å ha sunket nær $ 15 000 dollar, og tetter seg nærmere hele tiden på rundt $ 20 000. Den digitale eiendelen virker ustoppelig de siste par ukene, og klatrer høyere hver eneste dag med bare noen få retracementperioder.

Likevel virker dette okserallyet langt sunnere enn det for 2017/18, ettersom det er mer kontrollert og det for øyeblikket er mye mer handelsvolum i markedet. En av de viktigste gnistene i dette nye løpet var støtten til kryptovalutaer fra PayPal, en av de største betalingsleverandørene i verden.

Volatiliteten i kryptovalutamarkedet er ekstremt høy akkurat nå, med noen altcoins som hopper opp og ned med mer enn 20% innen få timer. Et av de mest fremtredende Immediate Edge eksemplene er XRP som hadde et vilt løp på 163% de siste 5 dagene for å nå en høyde på $ 0,78.

Markedsverdien av Bitcoin nådde nylig 353 milliarder dollar for første gang noensinne, og overgikk JPMorgan’s til 352 milliarder dollar. Jamie Dimon, administrerende direktør i JPMorgan har vært en fremtredende kritiker og hater av Bitcoin og kryptokurver generelt og kalte dem en ’svindel‘.

Bitcoin har overgått nesten alle andre eiendeler i markedet som Gold, S&P 500 og andre vanlige investeringsalternativer som råvarer eller amerikanske statsobligasjoner.

Hva er neste for Bitcoin og kryptovalutamarkedet?

Bitcoin dominerte markedet, men har mistet en god del av prosentandelen fra en topp på 66% 19. november til et nåværende lavpunkt på 61,8% ettersom andre altcoins som XRP, ETH og LTC også har samlet seg. Den totale markedsverdien i markedet eksklusive Bitcoin har hoppet med 57 milliarder dollar den siste uken, noe som indikerer at kanskje ‚høysesongen‘ kommer tilbake når BTCs dominans synker.

Bitcoin ser ut til å bare møte en stor barriere på $ 19,891 på Bitfinex og lignende priser på andre børser. Å knekke heltiden kan være en stor gnist av neste FOMO-bølge, og potensielt presse Bitcoins pris mot $ 25.000.

Verken MACD eller RSI er så høye som de var tilbake i 2017 under det siste okserallyet, noe som indikerer at kanskje BTC-prisen har mye mer plass til å vokse til tross for at den er nær all-time high.

Bitcoin begynder at gå i stå efter parabolsk opstigning

Bitcoin har fulgt en parabolsk stigende supportlinje.

Tekniske indikatorer er begyndt at vise svaghed.

Prisen handles muligvis i en symmetrisk trekant.

Vil du vide mere? Deltag i vores Telegram Group, og få handelssignaler, et gratis handelskursus og daglig kommunikation med kryptofans!

Trust Project er et internationalt konsortium af nyhedsorganisationer, der bygger standarder for gennemsigtighed.

Efter en parabolsk stigning stoppede BTC-prisen og skabte en Spinning Top-lysestage den 18. november.

Prisen er begyndt at vise tegn på svaghed, men en opdeling er endnu ikke bekræftet.

Bitcoin følger parabolsk support

Bitcoin-prisen har fulgt en parabolsk stigende supportlinje siden begyndelsen af ​​september. På tidspunktet for pressen handlede Crypto Cash lige over denne supportlinje.

Den 18. november fulgte BTC sit tidligere bullish lysestage op med en spinning top, et tegn på ubeslutsomhed, især når man kommer efter en så stærk opadgående tendens.

Prisen er også i færd med at udfylde et aftenstjernemønster (fremhævet). Mønsteret ville være komplet med et tæt på under $ 16.700, åbningsprisen den 17. november (rød linje).

Et sådant fald vil også medføre et sammenbrud fra den parabolske støttelinje.

Tekniske indikatorer i den daglige tidsramme er begyndt at vise svaghed. RSI har genereret en bearish afvigelse, og den stokastiske oscillator er begyndt at rulle over og muligvis klar til at foretage et bearish kryds.

Mens MACD er overudvidet, er den endnu ikke begyndt at falde

Selv om disse er potentielle tegn på svaghed, bekræfter de endnu ikke en nedadgående tendens. En opdeling fra linjen vil sandsynligvis medføre et bearish kryds og et fald i både MACD og RSI, hvilket bekræfter tilbageførslen.

Det kortsigtede diagram viser, at prisen handles inden for en symmetrisk trekant, der i øjeblikket er på understøttelseslinjen i mønsteret. Desuden handles det inden for supportområdet på $ 17.550.

En opdeling fra trekanten vil sandsynligvis tage prisen ned til $ 16.770, hvilket er 0.618 Fib-niveauet for den seneste stigning. Denne zone er også et vandret støtteniveau og det mål, der findes ved at projicere længden af ​​trekanten til nedbrydningspunktet.

Fake Uniswap Apps on Google Play Store Steal Thousands of Dollars

Uniswap clone apps can be found on Google Play.

There are very few provisions to alert the tech giant to the deletion.

DeFi scams are on the rise in 2020

Reports are emerging that a fake Crypto Bull app has been spotted on Google Play and some victims have lost thousands of dollars.

According to Alex Saunders, founder of Nuggets News, a fake Uniswap app is available on the Google Play Store. At the time of this article’s publication, the tech giant had not removed the malicious app.

Saunders added that someone had already lost $ 20,000 to the app which apparently asks for private keys.

One of our members just lost $ 20,000 to a fake @UniswapProtocol mobile app on the @GooglePlay store because it has 100 fake positive reviews so he trusted to enter a private key save phrase.

Please retweet this. Please report the application.

Uniswap Clone Scams

Google Play Store has over a hundred fake reviews that give the malware a 4.5 star rating. It has been downloaded over a hundred times and got downloaded by a fake developer email account called hello@unidex.com.

By trying to flag the questionable app and flag it as inappropriate, Google redirects users to a maze of pages that fail to notify the company of questionable apps on its app store.

Some of the responses to the tweet commented that people are reluctant to invest in crypto because of things like this.

Apparently, this isn’t the only fake Uniswap app. The Russian domain of BeInCrypto reported a similar scam last week.

Attack tracks

Google is not alone in spreading scams and malware. Facebook is a hotbed of disinformation and scams, and it has been widely reported that the social media giant was convicted of distributing fraudulent advertising in late 2019.

Hardware wallet maker Ledger has also been a target for fraudsters, as phishing campaigns targeting users escalated following a data breach earlier this year.

Consumers who have purchased Ledger hardware wallets have woken up to nasty emails claiming their crypto assets are at risk of being stolen. Some have even accessed their devices to find them empty and the company offers no support, blaming the end user for these seemingly impossible forays.

Hardware wallets are not foolproof despite what the companies claiming them claim, the risks are real and cryptoassets can be lost.

According to a recent CipherTrace report, crypto-crime has actually declined this year, but decentralized finance-based scams have increased. There were around $ 100 million in losses and thefts related to DeFi protocols in 2020, the report adds.

DeFi in Polkadot: An alternative chain with interoperability on the horizon

Polkadot’s DeFi ecosystem is expanding, but will its interoperability be sufficient to present itself as the replacement for Ethereum?

Polkadot’s Blockchain platform only launched its mainnet in May, but it is already pushing to become a major competitive force in the industry. At the end of August, following a re-naming of the DOT token, Polkadot crashed into the top 10 cryptosystems, outperforming established altcoins such as EOS, Litecoin (LTC) and others.

Kelvin Koh of Asian cryptomoney investment fund Spartan Black said earlier that Polkadot could be among the top three Blockchains. Dan Morehead of Pantera Capital Management also recently shared his view with Bloomberg, noting that although Polkadot is currently trading at around 10% of Ethereum’s value, his company believes it has „a much greater than 10% chance of being a competitor to Ethereum“.

Although there is endless speculation on what factors drive the price of Ether, a trend has emerged throughout its life: As more developers build applications with user appeal and value, the outlook for Ether’s price seems more optimistic.

If the same is true for Polkadot, then analysts‘ predictions look promising. The popularity of DeFi caused the price of ETH to double this summer. Now, DeFi developers also seem to be looking towards Polkadot, keen to take advantage of the fast performance, Substrate development framework and ultimately interoperability.

However, Peter Mauric, head of public affairs at Parity Technologies, told Cointelegraph that there is great potential for Polkadot to extend the DeFi ecosystem beyond its current capabilities, saying that para-chains are a different type of smart contract that will allow a different degree of implementation. He explained in more detail:

„Once we have these turbo-charged DeFi primitives, the potential for new innovations will be vastly expanded, and we will see exciting new possibilities such as decentralised Sovereign Wealth Funds and cross-chain money markets that will provide the basis for the next generation of DeFi protocols.“

Many of these new DApps and para-chains are also being boosted by grant funding from Polkadot’s main sponsor, the Web3 Foundation. Mauric confirmed that Polkadot’s treasury is also reliably disbursing funds on an on-chain basis for projects seeking to build on Polkadot. So, who participates in Polkadot’s DeFi ecosystem and how do they compare to their Ethereum counterparts?

A complete DeFi platform

Acala is a decentralised financial centre, billed as an „all-in-one DeFi service centre“. It offers some features comparable to those of Maker, allowing users to lend and borrow their stablecoins toUSD. However, it also operates a decentralised exchange under an economic model called „decentralised sovereign wealth fund“, designed to provide a continuous means of sustaining the development ecosystem. Acala was also one of the first to participate in a new crowdfunding model specific to Polkadot known as the parachain initial offers.

Acala is a classic example of a project that takes advantage of Substrate’s great capacity for customisation. Bette Chen, co-founder of Acala, told Cointelegraph: „By using Substrate to build Acala, we can, for example, customise the fee schedule and allow users to pay fees on any accepted token. The positive side of innovation is that there are no limits, as we can add new features and solve problems without the need to use forks“.

Staking and lending

Mantra DAO is a DeFi community platform for gambling, lending and governance. The platform’s OM token confers voting rights that influence various factors such as inflation levels or interest rates. Mantra DAO will operate in the infrastructure of the Rio Chain and is on track to become a fully decentralized DAO governed by its community.

Mantra DAO believes that scalability and interoperability are the main selling points of being based in Polkadot, as co-founder and board member Will Corkin explained to Cointelegraph: „Interoperability is a step towards incorporating DeFi and eliminating the current network issues faced by the platforms in the Ethereum“. He added: „Not only can we bring the DeFi from the Ethereum to Polkadot, but we can bring the entire DeFi to all peers across all platforms.

Another project, StaFi (short for Staking Finance) is a protocol that allows users to unblock liquidity tied up in staking tokens. It works in a manner comparable to Yearn.Finance or Compound, issuing synthetic tokens called rTokens that represent a share in the pool and can be used in other protocols. Along with the Web3 grants, the project has received support from B-Tech, a technology accelerator affiliated with the Bitmax exchange.

DEX and liquidity

The Polkadot equivalent of Uniswap is Polkastarter, a decentralised exchange that allows users to launch groups of interoperable tokens with cross-chain exchanges. Projects can list their tokens and use the platform to make a pool in a decentralised auction. The development team has created a proof of concept at Ethereum, with a roadmap that includes migration to Polkadot from early 2021.

Equilibrium is another project that is migrating to Polkadot from a different Blockchain: EOS. It started as an equivalent of MakerDAO, but with the move to Polkadot, it plans to extend its product range to include a decentralised exchange, a synthetic asset platform and a new interoperable stablecoin.

A bridge to DeFi at Ethereum

Moonbeam is a Polkadot para-chain bridge for Ethereum, which allows developers to build intelligent contracts compatible with Ethereum. Using Moonbeam, the DApps can be integrated with other Blockchains, including Bitcoin. It also means that existing front-end designs based on Ethereum can be connected to Moonbeam to interact with Polkadot-based DeFi applications.

Speaking to Cointelegraph, Derek Yoo, CEO of Moonbeam PureStake developer, elaborated on the functionality: „Moonbeam allows the ERC-20 tokens to move between Ethereum and Polkadot, which is necessary to feed cross-chain deployments where you have an instance of the application on both platforms.

Moonbeam is already finding traction with DeFi projects based on Ethereum that want to expand to Polkadot. He has announced several partnerships with prominent DeFi projects, including SushiSwap, BetProtocol and Linear Finance, with Yoo indicating that more are on the way.

DeFi infrastructure

The DeFi at the Ethereum has grown organically, with multiple innovators coming and building on the work of its predecessors. However, many projects at Polkadot are seeing the opportunity to establish layers of infrastructure using Polkadot’s para-chain for asset transfers and cross-chain transactions.

DeFi’s River Chain is a Polkadot para-chain built using Substrate and provides a ready-made toolkit for DeFi’s DApp builders. These include the Rio Generic Asset Bridge, which allows the simultaneous transfer of multiple assets in a chain. All of Rio’s core tools are accessible using the project’s web site interface, including Rio’s wallet and Rio’s Block Explorer.

The team behind the Rio Chain envisages several cross chain DeFi use cases, including a Bitcoin loan platform, a Bitcoin savings account application and Stablecoin instant loans based on a crypto wallet. In addition, Rio Chain believes that there is room to disrupt the global e-commerce payments market by eliminating intermediaries such as PayPal that earn significant revenue by taking a share of merchant payments.

Bithumb Global is also starting its own para-chain in Polkadot, called Clover. In order to stimulate the development of DeFi, Clover will seek to leverage cross chain capabilities and include some of Bithumb Global’s own applications, including a decentralised exchange, portfolio and loan protocols. Norelle Ng, managing partner of Bithumb Global, told Cointelegraph that the availability of infrastructure layers such as Clover will ultimately help drive improvements in the DeFi user experience: „The modules made available in Clover will greatly reduce the technology development threshold for top layer applications.

Akropolis is an Ethereum-based project that provides open source protocols for developers of DApps in DeFi – effectively an operating system for DeFi. In the context of DeFi for Polkadot, it has received a grant from the Web3 Foundation to provide a platform-as-a-service for the Substrate nodes. It also offers a staking portal as a front end for the Polkadot chain. Akropolis is already integrated with Ethereum DeFi’s DApps, including Compound and Aave.

A long way to go

Based on the scale of development, things look promising for the DeFi ecosystem in Polkadot. Many projects are already starting to take advantage of the interoperability offered by the system. Polkadot is also trying to make progress in attracting developers from other platforms.

However, the vision of interoperability will take some time to reach its true potential, mainly due to the current lack of composability between Ethereum and Polkadot applications. For example, it is not yet possible to obtain a flash loan on one platform to benefit from arbitrage on different decentralised exchanges between other platforms. Mauric said that Polkadot is on the way to achieving composability and acknowledged that this is a critical development:

„Cross-chain composability is a necessity for both DeFi and Web 3.0 as a whole. We already see the thirst for Bitcoin Wrapped in Ethereum, which operates without trust, to be used in DeFi, this is a clear early indication that cross-chain connectivity and composability is coming. Solving the composability of the cross-chain is an important milestone.“

However, until cross-compositionality becomes a reality, there is a risk that many DeFi DApps in Polkadot will simply try to replicate existing applications in Ethereum. After all, this has already happened with Binance Smart Chain, where DApps like BurgerSwap or BakerySwap chose to copy the Ethereum-based SushiSwap.

The value of simply copying existing applications is debatable. Therefore, the DeFi in Polkadot will need to increase its offering to attract users away from the liquid and compostable Ethereum DeFi ecosystem.

Ultimately, it is still a matter of time before Polkadot will steal the crown from the Ethereum DeFi. However, perhaps a more pressing question is whether Polkadot will eventually be able to improve the DeFi to increase its adoption and make it more user-friendly and accessible to regular investors and consumers. Beyond interoperability, that would seem to be the ultimate achievement.