Overview
· Market Update
· Insight: Awaiting tomorrow’s expirations
· Deep Dive: Velas (VLX)
· Trade set-up: Audius (AUDIO)
· Major Market News
· NOOBIE lesson of the day: Satoshi Nakamoto
Market Update
- · Bitcoin (BTC) begins to consolidate around the 56.5k area in anticipation of the large Nov 25 futures expiration.
- · Bitcoin Dominance (BTC.D) is up 1% as the traders return to BTC in anticipation of a possible volatile expiry.
- · Total Market Cap (TOTAL) continues to hover around 2.5T
- · Major layer one alts are having a strong down day Sol -9%, LUNA -10%, DOT – 6%, AVAX -8%, ADA -8%. Fantom (FTM) is breaking the mold and is up +9%
- · Metaverse and Gaming protocols continue a very strong upwards trend. Sand +42%, Gala +37%, Mana +32, UFO +23
- · Play-to-Earn category is up 99% today. Gaming is up 20%, and metaverse is up 20%.
Insight
Bitcoin has found a support around the 56k area and is showing signs of consolidation. Tomorrow will decide the fate of BTC direction.
In what many predicted was a dip to shake out leveraged positions is proving difficult. Volume in long positions has increased significantly in the Dec 09 and Dec 30 expirations since yesterday, as leveraged traders quickly position themselves for a large correction. This is mixed sentiment because the market will try to wipe out leverage during expirations.
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There are many bullish metrics when it comes to on-chain analysis. Outflows out of exchanges continue to be larger than inflows. Stable coin supply ratio continues to fall. Miner outflow continues to stay significantly low.
One metric that requires attention is All Exchange Whale ratio, which has spiked up to .65% from .35%. This can mean three things, that whales are preparing to sell, entering leveraged positions, or entering alts. We have seen a large increase in options volume and some alts have been on strong runs so data may be indicating the latter two are true.
Ultimately the market will decide what bitcoin does, and we must remember that the rest of the market is closely tied with the fate of bitcoin. The metrics are slightly more mixed than yesterday but still leaning bullish. Tomorrow and the weekend will be the big indicators of which direction the market decides to go. People may spend Black Friday shopping for crypto.
Deep Dive: Velas (VLX)
Market Cap: 932m
Coin Rank: #115
Velas (VLX) is a state of the art open-sourced blockchain platform that is primarily focused on designing user-friendly interfaces. The project is based out of Switzerland and is led by Alex Alexandrov. The team is composed of experienced engineers, mathematicians, and blockchain experts. The base-layer of Velas is a Solana fork that the team upgraded to meet a list of standards that included 50k transactions per second, near-zero transaction fees, and a finality of less than a second. To meet these rigorous demands, they designed a unique system of consensus they named AIDPoS, utilizing Proof of Stake and adding AI to improvement functionality. Velas is simply fast, efficient, and nearly zero-cost to use.
One of the aspects that separated Velas from Solana, is the ability for Ethereum developers to easily create on the platform. The platform allows for the deployment of EVM dApps. To further improve on Solana, they designed their platform to be seamless across all protocols on the blockchain. This will allow a user to have one account for all protocols without constant hassles of reconnecting wallets or approving every protocol before use. With these upgrades, Velas is implementing the early stages of Web 3.0, another of its main focuses.
Velas has been very busy under the hood with close to 7k developer commits in the past year and over 1k in the past month. To give you an idea, the industry average is close to 1000 commits a year. They recently released a DEX named Wagyuswap, which looks like a Pancake Swap fork. They also released a decentralized social platform focused on usability, privacy, and monetization for the user named Bitorbit. Just like Velas, neither project has garnered much attention.
Their documentation mentions decentralization various times. I hope that remains one of their priorities, but currently they are only running 50 nodes and 42 validators. This is common for the beginning stages of growth in a blockchain, and I would assume that as the network grows, so would the nodes/validators. Only time will tell.
Oddly enough, they are also partnered with Solana in addition to a few other large firms. They recently had a $100 million incentive programs for developers, but it will probably take a few months to see the full affects of the program.
Every aspect of Velas looks impressive. From the technology, website, white paper, ideals and even their social media. They have combined a large team of professionals to embark on a common goal and it shows. I personally like what I see. The only major issue I have is the lack of volume in trading (8-10m). The low volume is caused by lack of major adoption of the network. Since they have some important partners, I hope this improves over time. It is a great project with large upward potential that is currently lacking adoption. I do not see it catching up to similarly valued projects like EOS, ICON or ONE in the short term. It will likely grow with the market as a whole, but not outperform widely adopted projects around similar price points. Velas overall is a recommended buy that will probably end up in the top 25-50 coins in the long run but monitoring for the correct time to buy is recommended.
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Trade set-up: Audius (AUDIO)
I was not planning on having a trade-set up today but this one is just too nice not to share. Audius is a decentralized version of Spotify. The timing for this set-up is perfect because yesterday a startup named Royal banked a $55M investment from a16z, a premiere crypto VC firm. The news will bring attention to the music NFT space just in time for a long-awaited breakout in AUDIO price.
AUDIO 1D Chart
Audio has been consolidated in a pennant since hitting its high on March 25th. There are signs of increasing volume and a failed break-out yesterday. If the overall market rebounds in the next few days, watch AUDIOUS closely for a major break-out to the topside. I wouldn’t be surprised if related news precedes the breakout. The breakout here will most likely send AUDIO into all time highs and further as this token has been lagging despite attention to Web 3.0 ramping up. Be sure to place a stop-loss and cancel the trade if the entire market starts descending.
Major Market News
- · Crypto prices in India took a strong hit yesterday with news that the government was discussing a bill to ban all private crypto. The selling was a mass panic in what was a misunderstanding of the bill’s interpretation of privacy.
- · More than 1 million Ethereum has been burned since the EIP-1559 upgrade. Watch the Burn here.
- · ‘NFT’ named the top word of the year but dictionary publisher Collins as interest in NFTs exploded in 2021.
- · Cardano (ADA) took a hit yesterday following a delisting of the token on eToro due to regulatory concerns. ADA continues a downtrend that began after smart contract implementation began on in late August.
- · “Bitcoin challenges your authority.” Salvadorian Ambassador communicates to the US.
- · Coinbase acquires crypto wallet startup BRD.
Notable Events
· $5m worth of Venus (XVS) will be bought back and burned beginning today and lasting a week.
· Second Polkadot Parachain auction has concluded today. Moonbeam is the winner. Contributors will receive 2.5 GLMR for every 1 DOT.
NOOBIES lesson of the day: Bitcoin History pt.2
Quick history of Satoshi Nakamoto
Click here to read pt.1.
Satoshi Nakamoto was the name used by the person/s who developed Bitcoin and wrote the famous Bitcoin Whitepaper. He began work on Bitcoin in 2007 and went public in 2009 with the release of Bitcoin.org. Satoshi began speaking to leading members of the cypherpunk community to gather feedback on the project. Satoshi worked in the background as a handful of people began taking interest in the project, and small communities began to emerge.
Communications with Satoshi picked up as leading cypherpunks, engineers, and computer scientists began aiding in the Bitcoin project. No one really knew the identity of Satoshi. Some evidence pointed toward him or a member of the team being of English descent. He used words such as “Bloody” and preferred to work during GMT.
In 2010, the new internet money named bitcoin took on value. Two pizzas were purchased from Papa Johns for 10k Bitcoins. In today’s price, that would be $515m worth of bitcoin.
In April 2011, Satoshi handed control of Bitcoin and the website to core developer Gavin Andresen. From that point, Satoshi began to back away from the project and eventually disappeared completely. He has since been heard from. Below is his last posted message. It is estimated that Satoshi’s BTC address contains an estimated 500-600k BTC.
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Tomorrow
· Turkey
· Stuffing
· Naps
· Pecan pie
Thanks for reading fam! Enjoy the holiday tomorrow and get some rest for an exciting Black Friday. Sorry I couldn't get to everyone's messages yesterday!
- Gabi
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Disclaimer: I am not a financial advisor, take all actions at your own risk. And please do your own research before partaking in crypto.
