Monat: Januar 2023

• VeChain is a blockchain-based platform that utilizes distributed ledger technology to provide businesses with a transparent and secure way to track products and goods through the supply chain.
• VeChain has a dual-token economic model, where VET is the native token and VTHO is used to pay for the use of smart contracts on the network.
• VeChain has partnered with several major businesses and organizations, such as BMW, PwC, and DNV GL, to develop and implement blockchain-based solutions for various industries.

VeChain is a blockchain-based platform that aims to revolutionize supply chain management and logistics for businesses. Using distributed ledger technology, VeChain offers businesses a secure and transparent way to track products and goods as they move through the supply chain. Utilizing a dual-token economic model, VeChain is powered by two tokens – VET and VTHO. VET is the native token used to transfer value within the network and to pay for transaction fees, while VTHO is the token used to pay for the use of smart contracts on the network. VET is also used as a governance token, allowing holders to vote on proposed changes to the network.

In addition to its own blockchain, VeChain has also partnered with several major businesses and organizations such as BMW, PwC, and DNV GL to develop and implement blockchain-based solutions for various industries. These partnerships have helped to establish VeChain as a reputable and reliable platform for businesses looking to adopt blockchain technology. After reaching its all-time high, VET saw a significant correction in price as the overall cryptocurrency market cooled off. The price of VET fell to a low of around $0.25 in early 2018, before gradually recovering over the next few years. In 2021, VET once again saw a significant price increase, reaching a new all-time high of over $0.70 in May of that year.

VeChain continues to grow in popularity due to its wide range of use cases and its partnerships with major businesses and organizations. With its focus on supply chain management, logistics, and product traceability, VeChain has the potential to revolutionize the way businesses track products and goods through the supply chain. By leveraging blockchain technology, VeChain is creating a secure and transparent system for businesses to utilize. As more businesses continue to adopt VeChain and its blockchain-based solutions, it is likely that the price of VET will continue to rise.

• Stablecoin inflow has been met with a decrease in Bitcoin reserves, leading to a decrease in overall demand for the cryptocurrency.
• CryptoQuant analyst Joaowedson confirmed that the BUSD stablecoin flow tides have changed for the past few days as indicated by the data.
• Santiment data showed that the social volume metric was relatively at a low point compared to the previous peaks it had hit in the past 18 days.

The euphoria around Bitcoin [BTC] might have come to an abrupt end after the king coin failed to register significant gains for the first time in the new year. At press time, BTC was back at the $20,000 region despite calls to breakout farther. However, the price trend is not the only part that has changed in the Bitcoin system. The flow has now backtracked when the market was in its boom era, there was a massive flow of stablecoins in exchanges. This action depicted investors‘ resolve to grab a share of the accumulation and profit taking. According to CryptoQuant analyst Joaowedson, there was a recent inflow of $250 million into the Binance USD [BUSD]. As this generated a lot of buzzes, it also impacted the BTC price uptick.

However, the inrush into the spot market meant that there was a decrease in the reserves. So, while there was increased buying pressure in pushing the price, the dip in reserve was also influential in driving down the demand. This decrease means that only a few number of investors were participating in Bitcoin transactions. Joaowedson further confirmed that the BUSD stablecoin flow tides have changed for the past few days as indicated by the data on CryptoQuant.

Concerning the social volume, data from Santiment showed that the metric was relatively at a low point compared to the previous peaks it had hit in the last 18 days. At the time of writing, the social volume was 2774. The social volume displays how trendy an arbitrary search for an asset is. Since the volume had decreased, it implied that there were fewer people talking about Bitcoin and its performance.

Whales behavior could help BTC regain bullishness provided the UTXO value bands maintain status quo. It is important to note that the inflow of stablecoins did not necessarily mean that the market was bullish. Although it is an important metric to gauge the market sentiment, the drop in reserves was more indicative of the market’s bearishness. As such, it is important to keep track of the UTXO value bands to determine the whales‘ behavior and its impact on the overall Bitcoin price.

As the market continues to experience fluctuations, it is important to observe the data and metrics associated with Bitcoin. The inflow of stablecoins and the decrease in reserves are two key indicators that can be used to determine the market sentiment. Additionally, the social volume and UTXO value bands can help to provide an insight into the behavior of whales and the market’s direction in the near future.

• BUSD, the stablecoin of cryptocurrency exchange Binance, has been criticized due to reports showing insufficient backing of the coin.
• BUSD is pegged to the dollar, so the exchange must have a stockpile of U.S. dollars in a bank account. Regular updates are released detailing the amount of BUSD in circulation and the equivalent number of U.S. dollars kept in reserve.
• Recently, Binance disclosed that bugs in its system had resulted in at least $1 billion in under collateralization of its Binance Smart Chain BUSD supply, which was supposed to be backed one-to-one by the U.S. dollar.

The stablecoin of trading platform Binance, BUSD, has been under the spotlight recently due to reports showing insufficient backing of the coin. This stablecoin is pegged to the dollar, so the exchange must have a stockpile of U.S. dollars in a bank account in order to guarantee that one BUSD will always be worth one USD. To show users that there is a sufficient amount of U.S. dollars in reserve to back the whole value of BUSD in circulation, Binance releases regular updates detailing the amount of BUSD in circulation and the equivalent number of U.S. dollars kept in reserve.

However, unfortunately, recent revelations have cast doubt on the process. On 10 January, Binance disclosed that bugs in its system had resulted in at least $1 billion in under collateralization of its Binance Smart Chain BUSD supply, which was supposed to be backed one-to-one by the U.S. dollar. This had caused three significant deviations from its peg and had caused the market to be wary of the stability of the coin.

This is why Paxos, a New York-based financial technology startup, has stepped in to guarantee the full collateralization of BUSD on the Ethereum blockchain in U.S. dollars. This was achieved by the company giving the exchange a bank account where all the cash reserves are kept. This account is then audited regularly to ensure that the reserves are sufficient to back the BUSD supply, thus guaranteeing the stability of the coin.

Binance has also responded to the criticism by stating that it remains committed to ensuring the integrity and longevity of the BUSD peg. It has taken steps to enable the full collateralization of BUSD on its blockchains, and it is continuing to work on further improving its systems to ensure the stability of the coin.

Overall, the recent reports have caused some uncertainty in the market, but Binance has taken steps to ensure the stability of BUSD by working with Paxos and taking measures to ensure the full collateralization of the coin. As a result, the coin has been able to maintain its peg so far, and it is hoped that this will continue in the future.

• Bitcoin’s lack of demand can be attributed to its network usage and its 24-hour trading volume has seen a 1.75% decrease.
• CryptoQuant analyst, Cauceconomy has opined that expecting a return of the Bitcoin [BTC] bull market might be too hasty due to the lack of demand.
• Cauceconomy pointed out that there was usually a notable breakout during the bear market before the bull season in previous cycles, which is not seen in the current momentum displayed by BTC.

The cryptocurrency market has been on a surge since the beginning of 2023, with Bitcoin [BTC] leading the pack. After a spectacular run in the first ten days of the year, investors were expecting the king coin to break out of its bearish slump from the previous year. However, despite the impressive run, Bitcoin’s demand has been quite underwhelming, raising questions on whether the bull market will return.

To help answer this question, CryptoQuant analyst, Cauceconomy has assessed the condition of the Bitcoin demand. According to his publication on the crypto data insight platform, Bitcoin’s lack of demand can be attributed to its network usage. This is because each block confirmation translates to increased daily transactions. However, that has not been the situation lately as miners have not necessarily been profitable to increase productivity by confirming more blocks. Hence, the trading volume has been repressed. According to CoinMarketCap, the BTC 24-hour trading volume was a 1.75% decrease at press time. This aligned with the analyst’s reference to a dip in transactions on the Bitcoin network.

Besides, Cauceconomy backed up his opinion by citing the historical trend. He pointed out that there was usually a notable breakout during the bear market before the bull season in previous cycles, but the current momentum displayed by BTC has shown nothing of such. The analyst said, „For us to have growth in the fundamentals of the network, we will need to see greater demand for trading and, consequently, higher fees for daily transactions. At this time, we haven’t had that breakout yet.“

The CryptoQuant analyst concluded by saying that a short term retreat could be likely depending on the CPI outcome as supply in profit spikes. He emphasized that expecting a return of the Bitcoin bull market might sound too hasty despite the king coin resurgence above $17,000.

All in all, while the cryptocurrency market has seen an impressive surge in the first ten days of the year, the lack of demand for Bitcoin has raised questions on whether the bull market will return. This has been backed up by CryptoQuant analyst, Cauceconomy, who has assessed the condition of the Bitcoin demand and highlighted the lack of a notable breakout in the current momentum displayed by BTC. Therefore, it might be too early to expect a return of the Bitcoin bull market.