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DeFi Tokens BAND, LINK, Outpace Bitcoin Price by Gaining 100% in 10 Days

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This week Bitcoin (BTC) price is making waves as the digital asset finally pushed above the $12K mark, but prior to this move, altcoins have been strongly outpeforming BTC for weeks. 

Two of the most notable performers are Band Protocol (BAND) and Chainlink (LINK) as both surged by 348% and 88% in the past ten days. Each functions as an oracle blockchain network that supplies data to Decentralized Finance (DeFi) applications.

Since the start of August, BAND price rose from $3.9 to as high as $17.78 and in the same period, LINK surged from $7.6 to $14.45 at its peak on Aug 10.

BAND and LINK performances side by side. Source: TradeBlock

What’s behind the DeFi token pump?

The primary factor behind the strong rally is the explosive growth of the DeFi sector. 

DeFi applications allow users to carry out various financial activities like trading, loans, and also earning interest from crypto lending. 

In order for DeFi platforms to run seamlessly, they need to fetch market data from various websites and blockchain networks and this is where orcacles come into use. Oracles are required within smart contracts to obtain necessary data to run DeFi platforms. Hence, when the DeFi sector expands, the blockchain networks providing oracles benefit from it. 

A TradeBlock research paper explains:

“Oracles allow for off-chain data to be integrated with the smart contract parameters that exist on public blockchains. In the figure below, we compare price gains between ChainLink (LINK) and Band Protocol (BAND) over the past three months.”

Data from Defi Pulse shows that since June 1, the total value locked in DeFi apps surged from $1.048 billion to $4.76 billion. As more capital has entered the DeFi market, the demand for oracles also increased.

The main difference between Band Protocol and Chainlink is that the former is based on Cosmos, and the latter operates on top of the Ethereum network. Cosmos is a proof-of-stake (PoS) blockchain, while Ethereum is in the process of moving over to PoS through ETH 2.0.

BAND has seen substantially larger gains than Chainlink over the past several weeks due to a large gap in valuation. Currently, LINK is valued at over $4 billion, whereas, BAND is valued at $308 million despite its 348% gain.

Researchers at Messari explained that BAND followed a similar path as Chainlink, which spurred its growth. They said:

“BAND has recently taken a page straight out of the LINK handbook with a slew of partnership and integration announcements, including a Coinbase Pro listing. Up over 32x on the year, its relative valuation play and anchor to LINK has worked so far.”

The timeline of BAND’s rally

The timeline of BAND’s rally. Source: Messari

Will demand for oracles increase?

Kelvin Koh, co-founder of Asia-based venture capital firm Spartan Black said he expects BAND to continue its upward momentum. Over the next 12 months, Koh said he anticipates BAND to close the valuation gap. He said:

“Despite BAND’s significant re-rating YTD, it is worth noting that its circulating market cap is still only 5% of LINK’s while FD market cap is 10%. This is fair currently given BAND’s nascent stage but I expect the valuation gap will continue to close in the next 12 months as BAND scales.”

Since BAND and LINK are based on differing blockchain networks, they will also likely support separate DeFi ecosystems based on Ethereum and Cosmos.





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TWTR Stock Spikes 3.9% as Twitter Reveals Plans to Double Revenue by 2023

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To double its annual revenue by 2023 as planned, Twitter would need an increase from 43.7 billion recorded in 2020 to at least $7.5 billion. 

Twitter Inc (NYSE: TWTR) saw a 3.7% gain in its stock after the social media network announced plans to double revenue by the end of 2023. Also in the same year, Twitter hopes to have 315 million monetizable daily active users (mDAUs). In the fourth quarter of 2020, Twitter said that it had 192 million mDAUs.

Twitter announced its long-term plans for revenue and daily active users in a filing with the US Securities and Exchange Commission (SEC) on the 25th of February. According to CNBC, it is the first time Twitter would be settling out long-term goals regarding its revenue and daily users.

Twitter Plans to Double Revenue

To double its annual revenue by 2023 as planned, Twitter would need an increase from 43.7 billion recorded in 2020 to at least $7.5 billion.

In addition, Twitter has plans to double its development velocity by 2023. This means “doubling the number of features shipped per employee that directly drive either mDAU or revenue.”

Furthermore, Twitter added that it aims for a long-term margin target of mid-teens GAAP operating margin, or 40-45% adjusted EBITDA margin.

At the time of writing, Twitter stock is at after-hours trading of $73.93, a 0.88% decline over its previous close of $74.59. Data by MarketWatch revealed that TWTR has been surging over the past months. Over the last year, TWTR has increased by 125.96%. The company has also grown more than 37% since the beginning of January. In addition, the social media giant has surged 60.65% in the last three months and nearly 45% over the past month. In the last five days, Twitter has jumped 3.22%. Twitter currently boasts of a market value of $57.4 billion.

Jack Dorsey Says 2020 Was an “Extraordinary Year” for Twitter

After Twitter reported a better-than-anticipated earnings result for 2020 Q4, the company spiked 13%. Confirming CEO Jack Dorsey’s remark that 2020 was an “extraordinary year” for Twitter, the company recorded $1.29 billion in revenue against $1.18 billion earlier predicted by analysts.

Despite the global economic meltdown that affected several companies as a result of the pandemic, Twitter grew in 2020. In the year, the social media giant jumped about 82%. Twitter also saw an increase in the number of daily active users.

Amid the growing adoption of Bitcoin among public companies, Twitter CEO Ned Segal recently revealed that the company is considering adding BTC to its balance sheet. In an interview with CNBC’s Squawk Box on the 10th of February, Segal said that Twitter has done a lot of “upfront thinking” regarding the matter and would continue to deliberate on it.

In October 2020, Twitter’s sister company Square Inc (NYSE: SQ) said it had invested $50 million in Bitcoin.

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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.



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SEC Investigates Tesla’s CEO Elon Musk over Tweets Promoting DOGE

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Shortly after Klarna CEO Sebastian Siemiatkowski expressed his concern over tweets promoting Bitcoin, reports revealed that the SEC is investigating Musk over DOGE tweets.

The price of DOGE has declined in reaction to the news that the US Securities and Exchange Commission (SEC) is currently investigating Tesla’s (NASDAQ: TSLA) CEO Elon Musk over Dogecoin tweets.

Recently, Elon Musk has been advocating for cryptocurrencies through his Twitter Inc (NYSE: TWTR) posts. Last month, the CEO of the electric vehicle company revealed his interest in the leading crypto asset, adding the Bitcoin hashtag to his Twitter bio. Musk’s action sparked several comments in the crypto community, fueling an increase in the price of BTC.

SEC vs Musk Promoting DOGE

Shortly after including the Bitcoin hashtag on his Twitter bio, Musk posted several tweets, along with images, promoting DOGE. While the CEO’s continuous tweets on DOGE appear as jokes, the posts have been influencing the price of the digital asset. The price of Dogecoin has continually increased in reaction to Musk’s several posts. Over the past month, DOGE has surged more than 500%.

The cryptocurrency, which started as a meme, now has a more than $6.6 billion market value. At the time of writing, DOGE is down 8.55% to $0.05113.

Following a series of tweets that fueled the price of DOGE, the SEC is now investigating Musk over potential security violations regarding the cryptocurrency. On the 25th of February, financial newswire First Squawk announced in a tweet.

Back in 2018, the SEC filed a lawsuit against Musk regarding a comment he made on Twitter, saying that he was considering a decision to take Tesla private. In the tweet, the CEO said:

“Am considering taking Tesla private at $420. Funding secured.”

The SEC reacted to Musk’s claim that the funding was secured. Eventually, the case was settled, with Tesla and Musk paying $20 million fines each.

Klarna CEO Calls For Regulations On Tweets Promoting Bitcoin

Recently, the CEO of European fintech giant Klarna, Sebastian Siemiatkowski, expressed his worry over tweets promoting Bitcoin. The CEO’s comment came about 24 hours before news on Musk’s investigation with the SEC.

In an interview with CNBC on the 24th of February, Siemiatkowski said he is “deeply worried” that such tweets could mislead retail traders. Speaking further in an interview with CNBC on the 24th of February, Klarna CEO called on regulators to caution such tweets to prevent people from potential losses.

As stated in a CNBC report, Siemiatkowski explained:

“It’s great that we can introduce new financial products and so forth. But they need to follow the standard regulations that we put in place and somebody needs to police that to make sure those are being met because otherwise what we will have is a lot of consumers losing a lot of money. And that’s just unfortunately what’s happening.”

Other news about cryptocurrencies can be found here.

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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.





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Focus on DeFi ‘fairness’ benefits Holochain, Orion Protocol and Dodo

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Bitcoin’s (BTC) strong bull run and the immense popularity of the decentralized finance space have attracted several new investors to cryptocurrencies. A report from Crypto.com shows a massive increase in crypto users as the figure rose from 66 million in May 2020 to 106 million by January this year. 

Crypto market data daily view. Source: Coin360

Contrary to the popular notion that new crypto users are mostly speculating on the price, data from Unchained Capital shows that investors who bought in the past three to five years are still holding and are not yet tempted to book profits.

Unlike the 2017 bull market where many low-cap altcoins rallied, the current bull trend has rewarded projects with strong fundamentals. Let’s have a look at three such tokens and also analyze their charts.