Coinpost reported on the cryptocurrency market on the 16th. The Bitcoin price was $39,851, -1.48% from the previous day.
At 3 am on the 17th, the FOMC (US Federal Open Market Committee) announcement is about to be announced, and preliminary discussions on the reduction of quantitative easing (tapering) and the scenario of a resumption of long-term US Treasury yields are also discussed.
Above all, the market is wary of the unexpected employment statistics results in April, etc., the FOMC from July to August, or the “Jackson Hall Meeting (Economic Policy Symposium)” scheduled to be held on August 26-28. “All. There seems to be a sense of borderline for the time being.
Sentiment in the cryptocurrency market is trending to improve, but selling pressure is expected to intensify near $42,000-43,000, where the resistance line overlaps. The 200-day moving average is also trending at $42,715, and there are many critics who point out that there is not enough material to break through. It could be said that the above $43,000 is a prerequisite for a bullish trend resumption.
[Portfolio of Raoul Parl]
In an interview with ‘CryptoInsightUK’, Raul Pal, a former executive of Goldman Sachs and CEO of Real Vision, mentioned a “portfolio (asset allocation)” that was optimized for the times. He said he is interested in metaverse tokens, social tokens, and community tokens.
Metaverse is roughly defined as a virtual shared space created by the Internet, augmented reality (virtual space), and other shared ecosystem systems. The affinity with the growing NFT market is also high.
※ However, the NFT market has been stagnant for the past month or so. According to Nonfungible.com, NFT-related sales have fallen 95% since May. ($176 million -> $9.2 million)
RealVision, led by Raul Parl, showed a 3.66% allocation to Chiliz (CHZ) as it released an updated portfolio over the weekend.
Chiliz, which is affiliated with football’s prestigious FC Barcelona and AC Milan, also partnered with Coincheck, a large Japanese cryptocurrency exchange, for the NFT marketplace business in February 21st.
In a press release, Coincheck said that it is considering treating the cryptocurrency ‘CHZ’ provided by Chiliz or NFTs available on Socios.com, a platform for forming a fan community using NFTs, as Coincheck NFTs.
Chiliz (CHZ), which ranks 61st by market cap on CoinMarketCap, rose 18% from the previous day at one point due to listing on Coinbase Pro, the largest US exchange. (Scheduled to start trading at 1 am on the 18th)
[Consideration of Ethereum gas fee]
With the development of the decentralized finance (DeFi) market after 2020, transaction processing delays and a surge in gas fees have become a big problem in the Ethereum network. This is because users of services such as dApps (decentralized applications) provided by companies and blockchain games using NFTs cannot properly service with network fees that are several times higher.
According to on-chain matrix data provided by the cryptocurrency media The Block, the ‘seven-day moving average’ of the gas price, which represents the transaction fee of the Ethereum blockchain, has dropped from near $45 at its peak to $4.5 at its peak. . It is down nearly 90% in the last month.
The Block’s report cites three main reasons for this. The main reason is that ETH transactions in DeFi and NFT, which soared during the surge, have significantly decreased due to the collapse of the cryptocurrency market.
Since the auction format has been used to give preference to transactions with higher fees so far in the determination of gas prices in the Ethereum network, in particular, in the highly speculative DeFi market and NFT auctions (bidding), The strong competitive principle of ‘I want to proceed with my own transaction (transaction) as soon as possible’ works, and I have been suffering from a dilemma that leads to an increase in gas fees.
The second reason is the effect of the rapid increase in the usage rate of layer 2 scaling solutions such as “Polygon (MATIC)” as an alternative to the Ethereum network.
According to polygonscan data, the number of daily transactions reached about 7.5 million, a significant increase of nearly 30 times compared to the previous month.
The third reason is the increased usage of Flashbots transactions.
“With Flashbots, you can communicate with and execute transactions with Ethereum miners (miners) off-chain like a private channel, reducing the number of spam transactions on the chain, lowering gas prices,” he points out. Since more scaling solutions such as “Optimistic Rollups” will be used in the future, it is speculated that the gas fee may be kept low.
The core developer of Ethereum has decided to install EIP1559, a gas system improvement plan, which will be introduced through a London upgrade scheduled for around July.
For Ethereum transactions, a standardized fee will be set as an algorithm across the network, rather than in an auction format as before. As part of the fee is burned (burned), the miner (miner) reward will decrease, but it is expected to contribute to the scarcity value due to the decrease in the supply of Ethereum.
[Fear and Greed Index]
The ‘Fear and Greed Index’ provided by Alternative was ’33’, down 5 points from ’38’ the previous day. This is the ‘fear’ stage, and although it has contracted from the previous day, the two-heartedness has improved compared to last week’s ‘extreme fear’.
For reference, the Fear and Greed Index ranges from 0 to 100. A value closer to 0 indicates extreme fear, and a value closer to 100 indicates extreme greed (optimism). This index is based on volatility (25%) + market volume (25%) + social media popularity (15%) + survey (15%) + overall market share (10%) + Google Hot Keyword Analysis (10%), etc. take it as
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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.