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What’s the Fate of Stablecoins in this Bear Market, USDD & USDN Portrayed as UST 2.0 & Tether’s Depleting Market Cap Raises Concerns!

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It is a known fact that the crypto space is now in the middle of a notable bear market which is yet to find its bottom. The star crypto, Bitcoin, currently appears struggling to restore the last line of defence above $20,000. In such a case, the crypto market tumbles down heavily and at the same time, the stablecoins possess extreme strength. Mainly due to the fact that traders just swap their crypto assets into stablecoin and wait until the market recovers to get back in. 

Ever since the algorithmic stablecoin TerraClassicUSD (USTC) lost its peg heavily, traders now are more cautious about the stablecoins as well. Two events, currently point out that the bear market, now in 2022, will largely impact stablecoins as well.

Also Read: How Long Will Bitcoin (BTC) & Ethereum (ETH) Prices May Hold $20,000 & $1000 Levels?

Tether (USDT) Loses 20% of its Market Cap in a Month

The most popular stablecoin, Tether (USDT) which gained strength in the second half of 2020 appears to have trembled heavily in the past month. Due to the USTC de-peg, traders also had dumped USDT falling into a FUD. However, the platform had burnt 3 billion USDT to stabalize the peg. No doubt the stablecoin has maintained its peg till now, but the depleting market cap does appear to stabalize since then.

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The bear market in crypto, combined with all the other news around big players like Terra (LUNA), Celsius Network and 3AC collapsing(potentially) has compelled the traders to exit their positions. Moreover, external factors like inflation, FED rate hikes, Global war, etc are pushing the people to not only get out of cryptos but also exit USDT for fiat. However, until and unless USDT maintains its peg it may not reach the fate of UST. 

Also Read: Crypto Crash is Not Over Yet, Market Cap May Fall By Another 50% Dragging the Bitcoin (BTC) Price Close to $14,000 Very Soon!

UST 2.0 on the Horizon, USDD & USDN Crash Hard

The breakdown of the algorithmic stablecoin backed by a volatile asset has ignited a wave of FUD among the other stablecoins as well. Similar to USTC, Tron-based algorithmic stablecoin USDD had lost its peg to hit $0.95 levels while its backed asset TRX also continued to dip. No doubt the platform quickly influx some liquidity which helped the stablecoin recover a little to trade at $0.97 at the press time. 

On the other hand, Neutrino USD (USDN) which is a crypto-collateralized stablecoin pegged to the US Dollar also crashed hard at the same time. However, the stablecoin is still struggling very hard to regain its value as after hitting bottoms at $0.916, the asset is still trading at $0.94.

Collectively, the bear market is primed to impact all the crypto assets in the market and stablecoins are no exception. Traders exiting their positions due to external pressure could continue as the broader markets also appear in strenuous positions.

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Also Read: Decoding the Possibility of USDD Dropping More, How Tron DAO Is Set To Protect

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Biggest Movers: SHIB Surges 10% On Saturday, As NEAR Hits 2-Week High

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Biggest Movers: SHIB Surges 10% On Saturday, As NEAR Hits 2-Week High

SHIB was trading by as much as 10% higher on Saturday, as crypto markets were mainly in the green. NEAR was also higher on Saturday, prices having now risen for three consecutive sessions. Overall, crypto markets are up 2.73% as of writing.

Shiba Inu (SHIB)

SHIB was one of the notable movers in crypto markets on Saturday, as prices rose by over 10% to start the weekend.

The price of the meme coin rose to an intraday high of $0.00001178 in today’s session, which is the third straight daily gain in SHIB.

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As a result of Saturday’s surge, SHIB/USD is now trading nearly 50% higher in the last seven days alone, making it one of the biggest movers within that period.

SHIB/USD – Daily Chart

Looking at the chart, today’s rally has seen prices near this week’s high of $0.00001209, which is the highest the token has hit since May 31.

Should this week’s momentum continue upward, then bulls will likely attempt to recapture this point over the next few days.

A stumbling block could come via the 14-day RSI, which is currently tracking at a resistance point of 56.60, which is also its highest point since late March.

If SHIB bulls were to apply even more pressure on current bears, then we would likely need to see a breakout of this ceiling.

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Near Protocol (NEAR)

NEAR was another big gainer on Saturday, as bulls extended recent gains to a third consecutive session.

The world’s 25th largest crypto token rose to a peak of $4.39 earlier in the day, and this comes as its ceiling at $4.20 was breached.

The move sees NEAR climb to its highest point in over two weeks, with traders likely fixed on taking prices over $5.

NEAR/USD – Daily Chart

In order to do this, there looks to be a slight ceiling at $4.75, which bulls must overcome, if they are to recapture this level.

As of writing, the 14-day RSI is tracking at a three-month peak, which is also a point of resistance, and could potentially prevent prices from climbing further.

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Do you expect NEAR to break into the $5 level this weekend? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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NHL enters the NFT space partnering with Marketplace Sweet

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NHL enters the NFT space partnering with Marketplace Sweet Abdulrasaq Ariwoola · 42 seconds ago · 1 min read

The NHL partnership with Sweet will offer a variety of digital collectible experiences to its fans, tradable in the marketplace

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Updated: June 25, 2022 at 3:59 am

Cover art/illustration via CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

The National Hockey League on Thursday announced its partnership with NFT Marketplace Sweet. This partnership will be the league’s first dive into digital collectibles.

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The partnership, of which the NHL’s players and Alumni’s association are part, will go live in October to mark the start of the 2022-2033 NHL season.

The NHL Marketplace

The NFT marketplace is expected to offer a range of experiences to NHL fans. Including digital collectibles that showcase historical moments, past and present season game highlights, and NHL stars top plays.

The marketplace will also feature gamified collection experiences, specialty packs, and 3D interactive trophy rooms where users can display their collections. Among these offerings there are also dynamic NFTs designed to change based on current team data.

Additionally, fans would be able to buy, sell, collect and trade the collectibles on the marketplace.

However, the announcement did not state which blockchain would host the marketplace.

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NFTs in the sporting space

The NHL  joins a long list of sporting institutions that have embraced digital collectibles.

In 2020, the NBA launched Top Shot NFTs, its digital collectibles marketplace, in partnership with DapperLabs. Likewise, the NFL launched its play and own NFT game while the MLB is to launch its NFT game soon.

However, the extreme sell-off in the crypto market has seen crypto companies pull out of sports deals. This is so as crypto companies strive to stay afloat as the severe sell-off continues in the market.

FTX recently pulled out of a partnership deal with Los Angeles Angels. Similarly, sources suggest a patch deal between NBA Washington Wizards and a crypto company has crashed.

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Albania To Start Taxing Crypto-Related Income From 2023

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Albania To Start Taxing Crypto-Related Income From 2023

Authorities in Albania are finalizing regulations that will allow the taxation of income and profits from cryptocurrency investments. The government intends to begin imposing the levy in 2023, after adopting the necessary legislation which has been proposed for public consultations.

Albania Set to Impose Crypto Tax as Early as Next Year

The Albanian state should begin collecting taxes on income from crypto assets as of 2023 in accordance with a new income tax bill, the local English-language portal Exit News reported on Friday. The government also hopes to pass a number of other laws and bylaws this year in order to comprehensively regulate the matter.

The special tax legislation is currently open for public consultations. It introduces the concept of taxing crypto holdings and income derived from virtual assets. The latter have been defined as “a digital representation of a value that can be deposited, traded or transferred in digital form, and that can be used for payment or investment purposes or as a medium of exchange, including but not limited to cryptocurrencies.”

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However, the definition does not cover central bank digital currencies (CBDCs), the report notes. That’s despite a growing number of monetary authorities around the world developing a digital version of their national fiats. The list includes major powers such as the United States, the European Union, China, and the Russian Federation.

The Albanian law also defines cryptocurrency mining as an activity using computing power to confirm transactions and gain virtual assets in exchange. The extraction of cryptocurrencies has been a grey area although law enforcement has been going after illegal mining facilities in the country and pressed charges against some of their operators.

Under the new legislation, any income from crypto transactions or mining will be classified as corporate income when it’s received as a result of business activity. And when the beneficiaries are private individuals, they will have to pay capital gains tax of 15%.

Financial Watchdog Tasked to Expand Crypto Regulatory Framework

Earlier this month, the Albanian parliament ordered the Financial Supervisory Authority (AFSA) to prepare and adopt new regulations regarding cryptocurrencies by the end of 2022. Albanian law allows crypto trading platforms to legally work in the country but no licensed entities are currently operating in Albania, Exit News remarked.

Two years ago, Albania also adopted a law titled “Financial markets based on distributed ledger technology.” While many have welcomed the legislation, critics have questioned whether the small nation in South East Europe, still an EU hopeful, is capable of properly regulating its crypto sector to prevent it from being used for money laundering, something it’s struggling to achieve in the fiat space.

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The legislature referenced a recent report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval), which recommended additional steps regarding the risks associated with cryptocurrency. In November 2021, the AFSA approved its first two regulations implementing the crypto markets law, which introduced capital and licensing requirements for entities working with digital assets.

Do you expect Albania to adopt comprehensive regulations for its crypto space by the end of the year? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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