Global investors are shifting to so-called meme stocks like AMC Entertainment and Gamestop from Bitcoin and other cryptocurrencies – whose prices have wobbled as they face increased scrutiny from regulators. Digital tokens have taken a breather from recent volatility.
The value of Bitcoin, the world’s largest cryptocurrency, has dropped approximately 30 per cent this month due, in part, to concerns that its negative environmental impact will discourage companies from adopting it on their balance sheets.
The recently launched cryptocurrency by Dubai, DubaiCoin (DBIX), has had a spectacular debut. According to Crypto.com, the digital token rallied over 1,000 per cent within 24 hours of debut. However, the virtual currency is tradling on a select number of exchanges.
Back home, cryptocurrency exchanges are set to approach the Supreme Court to seek direction on whether the Reserve Bank of India (RBI) can direct lenders to stop dealing with them, despite an earlier ruling by the apex court quashing the central bank’s order to ban cryptocurrencies.
This comes after the RBI through an “informal” diktat asked banks to stop dealing with cryptocurrency exchanges. In the last month or so, some of the banks have stopped providing services to the exchanges, which has led to a major disruption.
“Markets continue to be choppy as we consolidate towards the new normal. Steady markets are typically a sign of good things. It shows stability and weeds out bad actors which is great for overall growth,” said Edul Patel, CEO and Co-founder, Mudrex, a crypto trading platform.
Historically, altcoins have followed suit whenever leading cryptocurrencies by market capitalisation have shown signs of recovery.
Analysts advise investors to remain cautious, despite the belief that the market is likely to ride an upward trend over the next few days and potentially weeks.
Crypto Prices as of 9:40 hrs IST (Source: coinmarketcap.com)
- Bitcoin: $38,151.20, up 3.76 per cent
- Ethereum: $2,711.92, up 1.43 per cent
- Tether: $1.00, unchanged
- Binance Coin: $363.80, up 4.58 per cent
- Cardano: $1.67, up 0.86 per cent
- XRP: $0.9689, up 0.91 per cent
- Dogecoin: $0.3432, up 2.6 per cent
- Polkadot: $25.74, up 14.4 per cent
- USD Coin: $1.00, up 0.02 per cent
- Uniswap: $28.79, up 7.30 per cent
ZebPay Trade Desk’s Tech View
The most popular asset in the Decentralized Finance (DeFi) space, UNI, is the native token of the Uniswap protocol. In recent times, the asset has undergone a couple of upgrades that have made room for some key attributes and improvements in the protocol.
First came the Uniswap V2 upgrade, which allowed liquidity providers to create pair contracts for any two ERC-20 tokens. Previously, the protocol had required ETH to be a fixed asset among other ERC20 tokens. There on, Uniswap saw the launch of its largest and latest upgrade, now called Uniswap V3.
Here’s what makes Uniswap V3 a rather significant upgrade:
It will provide concentrated liquidity, better capital efficiency, active liquidity, range order capabilities, non-fungible liquidity, flexible fees, and a license to operate its open-source code.
These upgrades have significantly increased Uniswap’s value proposition, and have gone in place among market leaders in the DeFi ecosystem, in the crypto space.
Market cap and rank: $16 billion
Key Levels
Resistance: $35.43 and $30.00
Support: $24.69 and $19.89
Uniswap is consolidating and trading in a range of $24.5-29.5. A breakout on the either side with good volumes will further decide the trend for the asset. UNI is currently trading at $28.52.