Leading crypts fix strong in recent weeks
A buy signal on correction.
The Graph (GRT) ranks 52nd among top-tier cryptos
Hedera Hashgraph (HBAR) comes right behind GRT
A reminder of the risk
China is poised to roll out its digital yuan , making the world's second-largest economy the first country to adopt this financial technology. After recording highs in April and May, bitcoin and ethereum prices have undergone strong corrections. China's ban on cryptocurrency mining e pulso firme com a classe de ativos deve entre os responsáveis por fazer seus preços caírem mais do que pela metade desde as máximas históricas de 2021.
The corrective move may have shaken the confidence of latecomers to the asset class. Even so, many see it as an opportunity to buy more bitcoin, ethereum and many of the other 10,700+ cryptocurrencies.
Many of them will become collecting dust in wallets, taking up space in digital wallets, as they fall into the obscurity of cyberspace. However, there are “diamonds in the rough” capable of delivering fantastic returns.
Two cryptocurrencies that are among the few of the first echelon in market value are The Graph (GRT) and Hedera Hashgraph (HBAR). Both had capitalizations in excess of $1.5 billion as of July 1, reflecting their critical mass and position as leading cryptocurrencies.
Leading crypts fix strong in recent weeks
While prices have spiked since their recent lows, trends in bitcoin and ethereum, the two leading cryptocurrencies, remain bearish since the highs of mid-April and May.
O ethereum futuro afundou de US$4,418 em 12 de maio até a mínima de US$1.710,75 em 22 de junho. Ao nível de US$2.190 em 29 de junho, o preço é menos da metade do nível na máxima e não tão distante da mínima recente.
After parabolic moves in 2021, bitcoin and ethereum prices have returned to dry land. However, both cryptos continue to generate incredible returns for investors who have had the foresight to buy them in recent years.
Long liquidation signal
Although the futures market only provides a microcosm of bitcoin and ethereum trading activity, it does provide clues about the behavior of investors and traders. Open positions are the total number of buy and sell transactions that have not been closed.
Open positions in ethereum futures fell from a high of 3,746 contracts on June 9 to 2,626 on June 28, or nearly 30%.
The drop in open positions is a sign of long liquidation in the leading cryptocurrencies. Many investors and traders got out of risky positions as prices corrected. Likewise, the other more than 10,700 cryptos also fell in the leaderboards correction. However, the growing potential market continues to look for the next token and generate returns like bitcoin or ethereum.
The Graph and Hedera Hashgraph are in a group of tokens with market values above 99.5% of the other cryptos that float in cyberspace.
The Graph: cryptocurrency in the 52nd position of the first tier
The Graph é um protocolo de indexação para organizar dados de blockchain, tornando-o facilmente acessível com Graph QL. O site do GRT explica que, antes do The Graph, as equipes tinham que desenvolver e operar serviços de indexação proprietários, exigindo significativos recursos de engenharia e hardware, bem como o rompimento de propriedades de segurança necessárias para a descentralização. O protocolo do The Graph resolve essas questões.
Ranked 52nd among the top cryptos on June 29, the GRT had a market value of $1.673 billion at 57.76 cents per token.
Since the end of 2020, the GRT has gone from a low of US$0.1205 to a high of US$2.7141. The high occurred in February 2021. Although bitcoin and ethereum hit their highs in May and April, the GRT has posted downward highs and lows in a downtrend since its peak in February. The GRT was around the 57.76 level on June 29th.
Hedera Hashgraph right behind GRT
Hedera Hashgraph is a patented distributed recording technology using acyclic graphs to create a Byzantine fault-tolerant asynchronous consensus algorithm. A Byzantine failure is a computer system condition in which components can fail, with imperfect information if they do.
HBAR uses an algorithm to correct the situation. Its website claims that the protocol “ensures decentralized governance at scale”. HBAR is an energy efficient cryptocurrency that promotes decentralized economy.
HBAR traded at 19.0 US cents on June 29 and was the 53rd leading crypto with a market value of US$1.670 billion at that time.
Since starting trading in September 2019, HBAR has gone from just over a cent to a high of 40.89 cents per token in mid-April, when bitcoin peaked. At 19 cents, HBAR was trading in the mid-range of its consolidation. The trend has been down since the April high, following market leaders.
A reminder of the risk
GRT and HBAR have the critical mass needed by traders and investors. Market values above US$1.5 billion put these cryptos in the first echelon of the class. Crypts with higher market capitalization are more likely to survive and offer traders higher levels of liquidity, but the risk remains the same. Any investor interested in the cryptomarket should only employ capital they are willing to lose. Factors such as government bans and hacker attacks can cause a total loss of capital.
Risk is always a function of the possible return. While some crypts may offer exponential returns, most likely they will end up being worthless. Stay vigilant when entering the asset class and keep an eye out for potential risks