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Polkadot has attracted significant attention since the project’s inception in 2016 is due to its founding team. Polkadot is the brainchild of Dr. Gavin Wood, who is one of the original co-founders of Ethereum and who came up with the idea of the Solidity programming language.  

Wood left his position as CTO at Ethereum in 2016, shortly after the platform launched on mainnet. He’d already shared a vision for how Ethereum’s development could pan out, but it seems his co-founders disagreed. So Wood decided to implement his vision as Polkadot, a new project.  

Features of Polkadot 

Polkadot has several features designed to make it stand out from competitor platforms. One of the most notable is that Polkadot has a kind of sibling network called Kusama, which runs on the same codebase. Kusama serves as a midpoint between Polkadot’s testnets and a full Polkadot implementation. Along with the ability to experiment, Kusama is expected to remain operational as a live environment for lower value applications that don’t require Polkadot’s enterprise-grade security and stability. However, the two platforms are comparable in architecture and operation.  

Architecturally, Polkadot draws comparisons with Ethereum 2.0. Both platforms use sharding as a way of increasing processing capacity, each deploying a central chain responsible for maintaining the state and security of the overall blockchain. Polkadot’s central chain is called the Relay Chain, whereas Ethereum has the Beacon chain. In both cases, sharded chains connect to the central chain. Polkadot calls these sharded chains parachains.  

Perhaps the biggest difference between Polkadot and Ethereum is that Polkadot is aiming for full interoperability across other blockchain platforms. Some of the parachains connected to Polkadot will operate as so-called bridge parachains, allowing anyone to transact value from an external network into the Polkadot ecosystem and vice versa. Bridge parachains act as witnesses for bridge traffic to ensure that transaction integrity is secured on both sides.  

Despite the fact that Gavin Wood was one of the orchestrators of Solidity, Polkadot has shunned Solidity in favor of the Substrate Framework. Rather than coding smart contracts from scratch, Substrate is an open-source framework allowing anyone to create an application-specific blockchain to run on Polkadot or Kusama. Any developer with knowledge of generic programming languages can start using Substrate without learning any new tools.  

The DOT token and secure custody

Polkadot has some intriguing economic forces at play around the native DOT token. Like all other platforms, DOT plays a critical role in network consensus and governance. Polkadot runs on a variation of Proof of Stake called Nominated Proof of Stake or NPoS. It’s similar to the Delegated Proof of Stake used by EOS, in that DOT token holders can nominate a validator by delegating their tokens.  

However, unlike EOS, a validator can opt to finance their own stake, too—it’s not a requirement to be nominated. Furthermore, while EOS has only 21 validators, Polkadot currently supports close to 300, so it’s far more decentralized.  

Polkadot operates another layer of tokenomics around its parachains. Parachains can only connect to the Polkadot network by winning one of a limited number of parachains slots, which are awarded to the highest bidder at parachain auctions. The winning bid receives a lease for a fixed number of months.  

Projects bidding for parachain slots can conduct crowd loans, asking supporters to pledge their DOT for the duration of the parachain lease. In return, projects offer their own tokens as rewards. This process creates an additional dynamic to the DOT economics, as holders have the choice to either delegate tokens to secure the network for rewards or loan them to projects in return for project token rewards.  

Given the complex characteristics of the Polkadot blockchain protocol, it understandably requires a custodian capable of full warm and cold storage solutions. Digivault, the EQONEX Group’s crypto custodian, was the obvious choice to provide secure custody services for DOT. Digivault is the first custodian registered by the UK’s Financial Conduct Authority (FCA).

DOT is listed on EQONEX 

Because of its utility, degree of decentralization, and innovation, you can trade the DOT token on EQONEX. What’s more, all customers of EQONEX who hold DOT will custody their holdings in Digivault by default.  

 

With Bitcoin gaining momentum as it closed in on its ATH, several altcoins seemed to shy away from gains. On the contrary, Polkadot recorded a rally of almost 15% in less than three days. The same came on the heels of the parachain auction launch announcement by Founder Gavin Wood. 

Now, a previous article had highlighted how ahead of highly-anticipated upgrades, altcoins tend to see rallies fueled by highly positive social sentiments. Ethereum and Cardano’s trajectories noted something similar too. However, as anticipation died down, the prices consolidated and waited for more hype to pump the tokens.

Notably, DOT too had lost much of its momentum at press time.

However, that wasn’t the only thing that both DOT and ADA had in common. In fact, their price trajectories revealed another perplexing trend. 

Since August, both Cardano and Polkadot have seen opposing price trajectories. Until early August, before ADA started pumping ahead of its smart contracts launch, the two alts moved almost hand in hand on the charts.

Since then, however, both ADA and DOT’s price actions have gone their opposite ways.  

While Cardano had a more market-independent pump, DOT’s price momentum was comparatively similar to BTC’s. Notably, on 20 August, when ADA saw a pump, DOT fell on the charts. Likewise, on 10 September, when DOT saw a price hike, ADA’s price slumped. 

While DOT’s price was consolidating at the time of writing, Polkadot still managed to be in the news after Huobi Global made an announcement that it will support the Polkadot Parachain slot auction. 

Additionally, Sharpe ratios for the two cryptos highlighted how Cardano had become riskier than DOT.

ADA’s Sharpe ratio had a reading of -1.38 while DOT’s was 2.72, at the time of writing. The Sharpe ratio analyses the market risk associated with assets by assessing the performance of the asset compared to a “risk-free” asset over a window of time.

Even though both the altcoins saw a considerable fall in their Sharpe ratios over the last month, DOT’s held better than ADA’s. 

With DOT consolidating and ADA stuck in a closed channel, 28.44% below its ATH, the two ETH-killers’ near-term future seems shaky. However, there is one trend that seemed to be strikingly similar for both alts – Their whale movement. 

The percent of stablecoin total supply held by whales with more than 5 million USD for both the altcoins was 52. 

While price-wise there seemed to be differences in their trajectories, DOT and ADA whales were behaving in the same way, seemingly maintaining positions at constant levels. 

As of now, however, ADA is suffering tremendously, especially when looked at against BTC. The ADA/BTC chart set a new two-month-low of 3620 SAT this week.

On the contrary, analysts believe that DOT appears to be “programmed” to rise above $100 in the current market cycle. 

With Bitcoin still consolidating near $62k, both altcoins seemed to be mimicking BTC’s price action at press time. A hike in BTC’s price could trigger DOT’s price on the charts. As for ADA, the fourth-ranked alt might be waiting for another hype-induced rally.

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Analyzing the current ‘profit-booking’ trend in the Bitcoin market

Varuni Trivedi

Varuni is a full-time journalist with AMBCrypto. She is interested in covering the socio-political aspects of U.S and South-Asian crypto markets. She is a post-graduate in mass communication with a specialization in Journalism and she has a keen eye for market trends.

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With the cumulative market cap falling by nearly 2% over the last 24 hours, most cryptos were mostly in the red on 22 October. Some altcoins, in fact, showed signs of correction too. 

Polkadot and Monero, for instance, projected superior buying pressure, while Ethereum Classic exhibited signs of decreasing bullish power.

Polkadot [DOT]

DOT moved up by 1.76% and was trading at $44.93, at the time of writing. It also noted a 13.56% seven-day increase, indicating an overall uptrend in its price trajectory. Bullish trendlines confirm the uptrend and showed how DOT bulls were keen on sustaining their momentum after breaching the previous support level at $33.19.

This momentum led to a strong support level around $42-level.

The Relative Strength Index (RSI) was at the 63.89-mark, picturing an inclination for the bulls.

The MACD was above the Signal Line, while the MACD histogram flashed green signal bars hinting at bullish tendencies. However, the Volume oscillator and histogram saw a sharp decline in trading volumes. This reading signaled a possible reversal in the near term.

Ethereum Classic [ETC]

After barely poking its resistance point that stood at the $60-mark, ETC fell by nearly 2.58% over the last day and traded at $56.29. The support level was registered at $45.94. Key technicals directed at a possible correction in prices.

The RSI saw a dip of 11 points from the overbought territory to the 60.16-mark over the last day, indicating the decreasing power of the ETC bulls. The Awesome Oscillator flashed red signal bars, hinting towards a possible advantage for the bears. The +DI line seemed to plunge towards the south and confirmed the previous readings that suggested a bearish trend.

The Average Directional Index displayed a strong directional price trend as it stood at the 37.6-mark. Analysis of the above indicators and the decreasing volume trends bring forth the possibility of a further correction in prices.

Monero (XMR)

XMR hiked by 3.02% over the last 24 hours and was trading at $273.23, just below its resistance point that stood at $276.29. The altcoin displayed momentum in favor of the buyers. 

The RSI was above the half-line and stood at the 63.86-mark, suggesting that the buying pressure exceeded the selling strength. 

The Awesome Oscillator flashed green signal bars, hinting at a bullish trend. The Squeeze Momentum Indicator started to display grey dots, suggesting the end of a squeeze period and the possibility of high volatility in the near term.

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Both Ethereum 2.0 and Polkadot are promising sharding-based protocols overcoming the scalability challenges facing legacy blockchains. Although slightly different, together, the Relay Chain and Beacon Chain represent another significant leap forward, especially for interoperability.

Partitioning the Problem: Sharing the Load via Sharding

Scalability has been a hotly debated topic after networks bumped up against the limits over the last year. Yet, long before it entered the mainstream conversation, developers postulated several angles of attack. Despite the triumphant launch of layer 2 approaches in 2021, layer 1 sharding solutions have long been in the pipeline.

When it comes to partitioned blockchain protocols, Polkadot and Ethereum 2.0 represent the most prominent names pursuing this scalability avenue. These partitions, or shards, are a means of executing transactions in separate shards along with a protocol to send messages between shards. Through sharding, both networks deliver an excellent solution to significantly increase network performance and capacity without increasing node hardware requirements or reducing the degree of decentralization.

We can’t deny the fact that at the core technical level, Polkadot draws many references from Ethereum. However, when it comes to technology, especially how Polkadot and Ethereum 2.0 are applying the concept of sharding, there are several significant differences that developers and users should consider.

For starters, all of the shards in Ethereum 2.0 have the same state transition function (STF), which provides an interface for smart contract execution. As such, contracts on a single shard can share asynchronous messages with other shards. The base layer (main chain) of Ethereum 2.0, referred to as the Beacon Chain, enables the execution of smart contracts and transactions via the eWasm (Ethereum Wasm) interface. By design, Ethereum 2.0 will support 64 shards, wherein each shard will represent a blockchain and transactions executing on that blockchain.

Polkadot uses a different variation of sharding. The network has a main chain called the Relay Chain. Shards on the Polkadot network are called parachains, which can also execute parallel transactions, and are associated with the Relay Chain. Unlike Ethereum 2.0, which currently supports 64 shards, Polkadot currently supports 100 parachains (shards), and each of these parachains doesn’t rely on a single interface like ETH 2.0’s eWasm. Instead, each parachain can individually connect to the Relay Chain, giving developers on these parachains the flexibility to determine their own rules regarding how it changes state.

Simply put, think of Ethereum 2.0’s Beacon Chain as a USB port and shards as USB cables. Only those shards that have the right shape of a USB cable can connect to the USB port. On the other hand, Polkadot’s Relay Chain serves as a universal socket, meaning all parathreads can seamlessly connect to it.

Other than this, the governance process for Ethereum 2.0 is proposed to follow an off-chain model, which will require a hard fork. But Polkadot’s governance model is on-chain and enacted autonomously, giving it the ability to upgrade more seamlessly. Finally, the underlying validator selection mechanism for both also differs given that Polkadot offers strong availability and validity guarantees with a smaller number of validators per shard.

A Glimpse Into the Future Based on the Present

Development and implementation of Ethereum 2.0, also called Serenity, is currently in progress. At present, the Beacon Chain is live, bringing staking to Ethereum and laying the groundwork for future upgrades. However, the merger of Mainnet Ethereum with the Beacon Chain and the addition of Shard Chains will be gradually rolled out in phases. Forecasts are anticipating a 2022 launch, although large recent purchases of Ethereum mining equipment mean certain stakeholders aren’t convinced that timely release is around the corner.

Meanwhile, as a next-generation blockchain project, Polkadot has garnered much attention since 2020. The platform, frequently dubbed the Ethereum Killer despite the tired nature of that overused trope, has established itself as a potential alternative that solves the scalability challenges of Ethereum.

Polkadot’s testnet Kusama is already up and running on a similar sharding model to great success, following multiple crowdloans and millions of transactions processed, with several promising projects bidding for the limited parachain slots. Now, Polkadot parachain slot auctions are arriving in November as the project enters the fifth and final phase of its launch process, beating Ethereum to the sharding punch.

While the sharding competition won’t necessarily result in a winner-take-all outcome, Polkadot is at least a couple of years ahead of Ethereum 2.0. Still, Ethereum’s vast ecosystem shouldn’t be discounted despite the interoperability aspirations of many eager projects bidding on Polkadot’s parachain slots. However, instead of viewing the two chains in competition for higher TVLs or more dapps, it’s better to frame the relationship within the context of added utility for the greater cryptocurrency ecosystem.

It will be intriguing to see how both platforms interact once all Ethereum Improvement Proposals (EIPs) for Ethereum 2.0 have been implemented and Polkadot parachains are connected to the Relay Chain. Assuming everything goes according to plan, the networks can complement each other to deliver an interoperable foundation for next-generation decentralized apps (dapps) and decentralized finance (defi) protocols, supporting higher throughput, lower costs, and the scalability to support expanded blockchain use.

Which will reign supreme — Polkadot or Ethereum? Let us know what you think in the comments section below.

Bitcoin ETF May Feel Good to BTC Enthusiasts, but Adoption May Not Advance In-Kind OP-ED | 2 hours ago Satoshi Versus the 'Infrastructure Bill' — Political Permission Not Required OP-ED | Aug 12, 2021 Tags in this storyBeacon Chain, Ethereum 2.0, interoperability, Polkadot, Relay Chain, Sharding

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DOT crypto price is currently seeing a strong bullish momentum which can soon lead it to a new high.  Polkadot’s price has seen a gain of more than 8% in the intraday session and is trading near the value of $43. The price of the coin is soaring to a new high on the daily basis. The upside momentum of Polkadot can soon push it beyond $50 in the future. DOT/BTC pair is also observing a strong uptrend which can push the price to a new high soon. One can invest in DOT according to their needs and risk adversity.

Polkadot has launched a para chain which is pushing the price to new highs.  The market dominance along with the market cap has observed a strong momentum and can soon come to the 10th CMC ranking. The volume to market capitalization ratio for DOT hints a strong upside momentum for the future. One can invest in Polkadot according to their needs and risk adversity.

The weekly technical chart of the Polkadot hints towards a strong bullish momentum for the future. On the daily chart, the price is seeing a strong upside momentum which can soon push it to a new high. The price of the asset is trading above  50 and 100 Daily Moving Average, with an upcoming positive crossover. The 50MA line is near $32, making it a temporary bounceback region for the price. DOT prices while going upwards can find resistance near the value of $50.  Meanwhile, the support in the coin can be found near $30.

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Polkadot price has formed a bullish engulfing pattern then it can soon push the price to a new high.  Meanwhile, the volume of the coin is also seeing a strong surge in the past few days. If the price goes over $50 then a bullish momentum up to $80 can be seen. The DOT/BTC pair can also see a strong upside momentum in the future

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DOT coin price is observing a strong upside trend which can soon lead it to a new high in the future. DOT/BTC pair can also observe a strong upside trend. Investor should do their due diligence before investing.

Major Support:$30

Major Resistance:$50

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Leading blockchain interoperability solution Wanchain today announced the launch of the first cross-chain bridge that will link the network to Polkadot (DOT) and bring EVM smart contracts to the DOT ecosystem.Wanchain Cross-Chain Bridge to Polkadot Goes Live

In an announcement made today, Wanchain – a leading non-custodial blockchain interoperability protocol unveiled its integration with Polkadot.

For the uninitiated, Polkadot is a shared heterogeneous multi-chain architecture created by Gavin Wood, the former co-founder of Ethereum. The protocol’s native token trades with the ticker DOT.

Wanchain’s integration with Polkadot will effectively connect the DOT ecosystem with the wider cross-chain DeFi world.

At present, direct bridges connecting Polkadot to Ethereum, Wanchain, Avalanche, and Moonriver are already live, enabling developers to seamlessly build on Polkadot.

In a nutshell, DOT, which is also one of the world’s top 10 cryptocurrencies by reported market cap can now be traded cross-chain with EVM-compatible smart contracts.

Commenting on the development, Li Ni, VP of Business Development and Operations, Wanchain, said:

“We firmly believe that blockchain technology will only gain mainstream adoption once assets, data, commands, and users are no longer isolated on a single chain or constrained by a single standard. Last month, Wanchain deployed cross-chain bridges connecting Moonriver and Avalanche to the larger cross-chain DeFi industry. Now, Wanchain is connecting Polkadot to the rest of the blockchain world.”

As an increasing number of blockchain protocols emerge, the future looks increasingly multi-chain comprising of cross-chain movement of assets, data, and smart contract calls. In that regard, Wanchain’s integration with Polkadot reaffirms the former as the pioneering platform that is committed to enabling a multi-chain future.

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Bitcoin is up by an incredible 25.7% this week as the cryptocurrency surges beyond $55,000. The increase started at the beginning of October when it managed to break above a descending price channel and go above the 50-day MA.

Since then, BTC surged higher during the week until it broke the September highs at $53,000 and met resistance at $55,400 on Wednesday. It did attempt to break above $55,400 today, reaching as high as $56,000 (1.414 Fib Extension) but is showing signs of struggle to close above $55,400.

Looking ahead, if the buyers break above $56,000, the first resistance is expected at $58,355 (Feb 2021 highs). This is followed by $60,000, $61,000, and $61,780 (March 2021 highs).

On the other side, the first support lies at $54,000. This is followed by $53,000 (September highs), $52,000 (.236 Fib), $50,000, and $49,600 (.382 Fib). Additional support lies at $47,690 (.5 Fib & 50-day MA).

Ethereum

Ethereum is up by a solid 20% over the course of the week as the coin currently trades at around $3630. The cryptocurrency had surged above a descending trend line last Friday as it surged beyond $3000 and climbed above the 50-day MA.

As the week progressed, ETH continued to slowly grind higher each day. Today, ETH spiked as high as $3677, where it met resistance at a 1.272 Fib Extension level.

Looking ahead, if the buyers break above $3677, the first resistance lies at $3790 (bearish .786 Fib). This is followed by $4000, $4060 (1.414 Fib Extension), $4200 (1.414 Fib Extension – orange), $4282, and $4400 (1.618 Fib Extension – blue).

On the other side, the first support lies at $3485. This is followed by $3350 (50-day MA), $3285 (.382 FIb), $3165 (.5 Fib & 20-day MA), and $3000.

ETH is struggling quite significantly against BTC as it sets a fresh 2-month low this week. The coin started the week by attempting to break above the September descending price channel at 0.072 BTC. Unfortunately, it could not do it and ended up rolling over into the September support at around 0.068 BTC.

On Wednesday, ETH fell beneath a long-term rising trend line as it slipped beneath the 0.068 BTC support and continued beneath the 100-day MA. ETH fell until additional support was found at 0.0643 BTC (.618 Fib). It rebounded from there yesterday, but the market struggled to break 0.0667 BTC.

Looking ahead, the first resistance lies at 0.0667 BTC. This is followed by 0.0691 BTC, 0.07 BTC (50-day MA), 0.0733 BTC, and 0.0765 BTC (beraish .786 Fib).

On the other side, the first support lies at 0.0643 BTC (.618 Fib). This is followed by 0.0632 BTC (downside 1.618 Fib Extension), 0.062 BTC (200-day MA), and 0.06 BTC.

Ripple

XRP is up by a smaller 12.8% this week as it breaks above $1.00 to meet $1.07. XRP surged past a descending wedge formation at the start of October as it continued to go beyond the 20-day MA and pass $1.00.

Throughout this week, XRP has slowly ground higher above $1.05 but has failed to really penetrate the resistance at $1.10, provided by a 50-day MA level.

Looking ahead, the first resistance lies at $1.10 (50-day MA). This is followed by $1.20, $1.25 (Feb 2018 highs), $1.40 (September resistance), and $1.50 (bearish .786 Fib).

On the other side, the first support lies at $1.05. This is followed by $1.00 (20-day MA & 200-day MA), $0.965 (.618 Fib), $0.92 (100-day MA), and $0.875 (.618 Fib).

XRP is also struggling heavily against BTC as it crashes beneath the 200-day MA this week to reach support at around 1940 SAT. The coin started the month at around 2200 SAT and started to head lower from there.

On Wednesday, XRP fell beneath 2100 SAT and continued below 2000 SAT until support was found at 1940 SAT, which is resistance established in July 2021.

Looking ahead, if the bears push beneath 1940 SAT, the first support lies at 1860 SAT (.786 Fib). This is followed by 1800 SAT (July 2020 low), 1735 SAT (.886 Fib), and 1660 SAT (downside 1.618 Fib Extension).

On the other side, the first resistance lies at 2000 SAT. This is followed by 2100 SAT, 2200 SAT (200-day MA), and 2300 SAT (50-day MA).

Cardano

Cardano is up by a small 7.5% this week as it battles to remain above the 20-day MA level. ADA had found support at $2 toward the end of September and rebounded from there as October started, which allowed it to break the September descending trend line.

Over the week, ADA has battled to hold above the 20-day MA and struggled to break resistance at around $2.40. It has used $2.20 (.5 Fib & 20-day MA) as support all week but can’t seem to get anywhere above $2.40.

Looking ahead, the first resistance lies at $2.40. This is followed by $2.50 (bearish .5 Fib & 50-day MA), $2.65 (bearish .618 Fib), and $2.80.

On the other side, the first support lies at $2.20 (50-day MA & .5 Fib). This is followed by $2.00 (.618 Fib & 100-dat MA), $1.88 (downside 1.414 Fib & September low), and $1.80.

Against BTC, ADA is struggling as it falls beneath a descending price channel this week. ADA started the month against BTC at around 4800 SAT and started to head lower from there. On Wednesday, ADA fell beneath the price channel and continued lower until support was met at 4000 SAT (downside 1.414 Fib Extnesion).

Looking ahead, the first support lies at 4000 SAT. This is followed by 3825 SAT (200-day MA & .786 Fib), 3695 SAT (downside 1.618 Fib), 2600 SAT, and 3440 SAT.

On the other side, the first resistance lies at 3450 SAT. This is followed by 4500 SAT (100-day MA), 4715 SAT, 4800 SAT, and 5000 SAT.

DOT is up by a strong 17.9% this week as it currently sits at around $34. The cryptocurrency surged above the 50-day MA and the 20-day MA as October started.

From there, ADA struggled to break resistance at $32.50 during the week until yesterday when it surged as high as $35. So long as ADA remains above $30, it should have the ability to close back in on the September highs.

Looking ahead, the first resistance lies at $34.70 (bearish .618 Fib). This is followed by $37.45 (1.414 Fib Extension & Sep highs), $40, $41.35, and $45.

On the other side, the first support lies at $32.50. This is followed by $30 (20-day MA & 50-day MA), $27.80 (.382 Fib & 200-day MA), and $24.50 (.5 Fib).

DOT is also struggling against BTC after falling beneath a two-month-old falling trend line this week. The coin fell beneath the trend line at the start of the week and continued to head lower during the week until support was found at 5760 SAT (.5 Fib).

DOT did rebound from 5760 SAT yesterday but is struggling to climb above resistance at the 50-day MA around 6500 SAT.

Looking ahead, the first support lies at 6000 SAT (200-day MA). This is followed by 5500 SAT (100-day MA), 5230 SAT (.618 Fib), 5000 SAT, and 4880 SAT (downside 1.618 Fib Extension).

On the other side, the first resistance lies at 6500 SAT (50-day MA). This is followed by 7000 SAT, 7285 SAT (bearish .618 Fib), 7500 SAT, and 8000 SAT.

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Crypto trader and Altcoin Daily host Austin Arnold thinks six major altcoins are gearing up for massive rallies in the next year.

In a recent crypto update, the YouTube star tells his 1,040,000 subscribers that Ethereum layer-2 (L2) scaling solution Polygon (MATIC) is gaining momentum after landing a partnership with the $20 billion gambling company DraftKings.

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Arnold shares a statement from DraftKings’ president of global product and technology, Paul Liberman, explaining how the company is positioning itself to grow alongside Polygon.

“Although DraftKings marketplace is still in its nascency, we are bullish on the possibilities that blockchain, NFTs, cryptocurrency and more will present as we prepare for Web 3.0 alongside Polygon and the new innovations ahead for digital collectibles.”

Next, Arnold looks at the decentralized interoperability platform Polkadot (DOT). He points to a recent tweet from Polkadot founder Gavin Wood explaining that there are currently just under 19 million DOT tokens stored in the DOT treasury to fund community projects.

If any DOT goes unused, it gets burned. Currently, the Polkadot treasury is burning 239,988 tokens every month, according to Gavin Wood.

“Either burned or used, the DOT token is only getting more scarce. We have seen a rally in the DOT price recently. This could be linked to some exciting developments ahead, such as the upcoming parachain launch and slot auctions – these parachain auctions will take DOT off the market as well.

And with the first 11 parachain auctions coming to Polkadot next month, along with the 100 or so available slots to be filled, this could boost Polkadot’s presence in the crypto sector, and could cement the multichain system’s rising status.”

The third coin Arnold looks at is the supply chain management protocol VeChain (VET). The trader highlights that VeChain recently landed a partnership with major logistics company DHL for enterprise NFT (non-fungible token) issuance.

“This collaboration with DHL China, one of the first things it will allow customers to experiment with is customize the DHL mascot and then mint it as NFTs on the VeChainThor blockchain solution.”

Next up is the smart contract platform Cardano (ADA). Arnold notes that Cardano appears to be gaining more traction after landing partnerships with television satellite provider DISH and announcing that the network has received $100 million for investment in Cardano-focused projects in Africa.

“Simply put, there are so many people in more developing areas of the world that don’t have financial stability, and that can be changed with Cardano with blockchain.”

Another coin on Arnold’s list is the decentralized oracle network Chainlink (LINK). He notes that despite the token’s lackluster performance over the last few months, he believes there is still massive upside for LINK to realize in the market as partnerships continue to rise month-over-month, with 84 integrations made just in September.

“I get it, but in my opinion, Chainlink still has a lot of room to grow. Think about this: Chainlink already has a ton of exclusive, big partnerships with big companies – Google and Oracle to name two – over 75 different blockchains already use Chainlink technology, as well as being used by many data feeds, including USD [US dollar] currency pairs. That’s a strong foundation.

My speculation is this: over these next few years, as DApp [decentralized application] platforms like Ethereum [ETH], Cardano, Solana [SOL], Polkadot, Elrond [EGLD], etc. continue to fight for market share… Chainlink is integrating with all of them… Something to think about.”

Finally, the crypto trader thinks that the leading smart contract platform Ethereum is gearing up for a huge 2022. He notes that Ethereum developers announced that ETH is planning to make the transition into Ethereum 2.0 in May-June of 2022, which will convert the blockchain to a proof-of-stake protocol.

“The code should be ready around February 2022. The merge to mainnet, to ETH 2.0, in June of 2022 at the earliest. Next year will be known as the year of ETH. That’s where DeFi [decentralized finance] is, that’s where NFTs are.”

I

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Solana, also popularly known as the “Ethereum-killer’, has emerged as one of the fastest-growing cryptocurrencies in the ecosystem. The altcoin move into NFTs has attracted capital rotation from Bitcoin and Ethereum onto the SOL ecosystem. 

Analysts expect SOL to rally based on developments in the Solana network

Solana’s Ignition hackathon concluded with 568 new projects formed on the network’s blockchain. The new projects are expected to launch the next wave of cryptocurrency applications and web3 infrastructure on Solana. 

While Solana’s total value locked (TVL) was $1 billion in late July; the ecosystem’s top 5 projects each have now over $1 billion in total value locked. The network has attracted several non-fungible token (NFT) projects and customized applications with varying degrees of rarity. 

Matty Tay, head of growth at Solana, reflected on the growth of the top five projects on the SOL network in a recent tweet:

Analysts argue that Solana is not as decentralized as other cryptocurrencies in the top 10. The “Nakamoto coefficient” outlined by Balaji Srinivasan, former CTO of Coinbase, is used to estimate the decentralization of a blockchain network. 

Using the Nakamoto Coefficient, higher scores correspond to higher levels of decentralization. When measuring Solana using the Nakamoto Coefficient, it scores higher than Bitcoin and Ethereum, contrary to popular belief. 

Interestingly, 78% of Solana’s circulating supply is staked, based on data from Solana Beach, an SOL ecosystem statistics platform. Rise in the staked supply of SOL is fueling a bullish narrative for SOL price. 

Pseudonymous cryptocurrency analyst @CanteringClark is bullish on SOL price and expects the altcoin to outperform the rest. He states:

​​There are so many reasons to have been long SOL to this point. Are you seeing the trend yet? Even on a day where Bitcoin is the main show, SOL is outperforming. Fast horse.

Elliot Laybourne, a cryptocurrency analyst, is bullish on SOL price for when capital rotation from BTC to altcoins begins. Polkadot and Solana were the top two cryptocurrencies leading the altcoin rally before Bitcoin started trading closer to an all-time high. 

Laybourne shared his analysis in a recent tweet:

Laybourne was recently quoted:

As long as Solana remains above $85.00, I consider the structural bull market intact. Therefore, I expect to see buying on any dip towards $100. As long as Solana respects the rising trend channel, I maintain a long-term bullish price outlook.

FXStreet analysts have evaluated the SOL price trend and predicted that the altcoin is primed to hit a new all-time high at $225. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed-->  Latest Crypto News Latest Crypto News & Analysis Editors’ PicksCrypto bulls unfazed by flash crash

Bitcoin price action initially shakes off strong selling pressure, finds buyers at support, then resumes some selling pressure. Ethereum price action mixed post-all-time high rejection. XRP price awaits its own bullish breakout and an opportunity to outperform its peers.

More Cryptocurrencies NewsMATIC price ready for new all-time highs as $188 million flow into Polygon

The total number of transactions on Polygon network dropped nearly 15% due to a rise in transaction fees over the past week. This hasn’t negatively impacted the network as the number of unique daily active users remained stable. 

More MATIC NewsAVAX price offers a bullish opportunity before Avalanche hits new all-time highs

Avalanche (AVAX) price has seen a bullish outbreak on Thursday after it broke out above – and then retested – the red descending trend line at $61.62. With even more buyers and bulls coming in, expect a run towards new all-time highs at $81.

More AVAX News XLM price building base for bullish breakout

Stellar bulls are in the last phase of completing a bullish triangle. As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%. After taking a breather, expect another 10% of profits to follow. 

More Stellar NewsBEST CRYPTO BROKERS/EXCHANGESMore infoMore infoMore infoBitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast BTC ETH XRP Crypto partners in your location

Fintech company Current is one step closer to bringing decentralized finance (DeFi) features to its 3 million users.

The firm said Thursday it is working with Bison Trails, the blockchain infrastructure company acquired by Coinbase in January, to sync up with Polkadot parachain networks Karura and Acala. The fintech first announced its crypto plans in May.

Current says it’s looking to combine DeFi services with the best of its traditional offerings in a bid to meet the growing needs of crypto-curious retail investors. Along with travel app Maps.me toying with DeFi features on Solana, Current represents an emerging crop of aspiring fintech-DeFi mashups.

“We’ve flirted with bringing crypto back into our project for a while now, but there were always obstacles in the way,” Current Chief Technology Officer Trevor Marshall told CoinDesk in an interview. “When DeFi really took off in 2019 we were able to get over a lot of the technical hurdles.”

The company first attempted to offer DeFi services with Ripple and later Ethereum, dating as far back as 2015, though neither came to fruition due to technical limitations, Marshall said.

“The launch of our cluster on Karura is the first step in the evolution of what we’ve been building over the past six years at Current,” he added in a statement.

Said Acala co-founder Bette Chen:

“These two organizations [Current and Bison Trails] share our vision of a hybrid finance (HyFi) future, and we are excited to continue building products and networks that improve financial outcomes for the Current, Acala and Karura communities.”

Subscribe to The Node, our daily report on top news and ideas in crypto.

This week, Ethereum managed to rally over 8.5% and nearly touched the all-time high at $4,380, missing it by $5 (Bitstamp). The momentum remains bullish and the price is in a steep uptrend as shown by the trendline which is currently acting as support around $4,000. A break below this level can push ETH back to the next support found at $3,500.

The resistance at $4,380 continues to hold, at least until another attempt is made by the bulls to break it. Considering that in the past week Bitcoin has set a new all-time high, the overall market is heated in expectations of further gains in price. Ethereum, as the second-largest cryptocurrency, is looking set to take the spotlight in the upcoming week as well.

Looking ahead, Ethereum can see an amplification of its uptrend, particularly if the price breaks the all-time high. Despite any pullbacks, that are normal in a rally, ETH could easily set new highs in the coming weeks which would trigger a race until a top is found.

Cardano managed to break away from its descending channel after several attempts. Now, ADA’s price finds itself in a tight range between $2 (support) and $2.2 (resistance). This price action is within larger confinement that was set back in late September between $2 and $2.4. Therefore, until ADA breaks away from it, the trend is flat and the price can bounce between the key levels indicated on the chart.

The indicators on ADA give signs of some optimism for the bulls. A retest of the $2.4 resistance seems likely in the coming week or as soon as the price breaks away from the $2.2 resistance.

Looking ahead, ADA’s all-time high is still far away at over $3. Before such levels can be reached again, the cryptocurrency has to pass the key resistance at $2.4. Any failure to do so could trigger a rejection back to the key support levels at $2.2 and $2.

Ripple’s price action in this past week disappointed with a flat trend. XRP bounced several times between $1 (support) and $1.16 (resistance) forming a descending triangle. Nevertheless, the upcoming week promises more exciting price action due to the compression against the downtrend resistance line. The expectation is that price can break away from the apex of this formation in blue at which point a change in trend can happen.

Until then, XRP is bound to be stuck between the support and resistance levels. The indicators suggest a bearish bias due to MACD crossing on the negative side this week. However, without the price breaking below the support level of $1, it is too early to assume XRP will fall to lower levels.

Looking ahead, the all-time high for XRP sits comfortably at $3.3 and was never retested since January 2018 when it was set. There was an attempt in April 2021 to approach it, but the price was sharply rejected as soon as it reached $2. Since then, XRP has been consolidating below $2 with the hopes that another attempt to reach the all-time high can follow in the future.

DOT has continued to make sustained gains in this past week after breaking the key resistance at $39 on significant volume. There is some anxiety in the price action currently because DOT is less than $5 from its all-time high just under $50. Therefore, profit-taking at this level is likely and the bulls have to show a lot of strength to avoid a rejection below the resistance line indicated on the chart.

There is still room for the price to move in the coming week within the blue apex (see chart), but by early November DOT’s price will have to take a decision on the next steps. Can it set a new all-time high or can the bears take DOT lower to the support levels found at $39 and $32? Patience is key.

Looking ahead, the anticipation of a retest of the all-time high is on the mind of most DOT holders. The indicators are bullish at the time of this post, therefore a retest seems likely in the current market context.

This week SOL had a stellar performance after breaking above the large pennant in blue with over 35% increase in price. This bullish move was anticipated in our last analysis as the most likely scenario based on the indicators. After confirming the breakout, Solana moved very fast towards the key resistance line at $216 which is also the all-time high. At the time of this post, SOL is less than 5% from the ATH.

Considering the bullish bias on the indicators and the sustained rally since the break above the blue pennant, the resistance at $216 is likely to face mounting pressure in the coming days. If the bulls sustain this further, a break above can become a reality by next week.

Looking ahead, SOL has good support at $170 in case of any rejections at the resistance level. However, a break of resistance appears more likely at this time. It is important to watch closely the price action around the $216 level.

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Ethereum managed to increase by 6.4% this week as it continues to climb higher inside an ascending price channel. The price channel formed at the start of October after ETH found support and reversed at $2800.

Last week, ETH found resistance at $3600, causing it to fall into the support at $3400. It bounced from $3400 on Wednesday as it hit the lower boundary of the price channel. Yesterday, ETH managed to break $3600 and push higher into resistance at $3790 (bearish .786 Fib).

Looking ahead, if the bulls break $3790, the first strong resistance lies at $4000. This is followed by $4060 (1.414 Fib Extension – blue), $4200, $4282, and $4400.

On the other side, the first support lies at $3670. This is followed by $3580 (.236 Fib & lower boundary of the price channel), $3400 (.382 Fib & 50-day MA), $3350, and $3200.

The struggle continues this week for ETH against BTC as it continues to trend lower inside a descending price channel. ETH has been falling against BTC since the start of September when it fell from 0.078 BTC. It continued to fall throughout the two months and eventually broke crucial support at 0.0643 BTC (.618 Fib) last week.

This week, ETH fell as low as 0.06 BTC on Tuesday. More specifically, it found support at a downside 1.414 Fib Extension 0.0615 BTC and the 200-day MA. Since hitting this support, ETH bounced higher but is struggling to overcome resistance at 0.066 BTC.

Looking ahead, the first resistance lies at 0.066 BTC. This is followed by 0.068 BTC (upper angle of the price channel), 0.0691 BTC, 0.07 BTC (50-day MA), and 0.072 BTC.

On the other side, the first support lies at 0.0632 BTC. This is followed by 0.062 BTC (200-day MA), 0.0615 BTC (downside 1.618 Fib Extension), 0.06 BTC, and 0.0588 BTC.

Ripple

XRP managed to climb by a small 5% this week as it remains above the 50-day MA. Like ETH, XRP is also trading inside an ascending price channel that formed at the start of October. At the start of this week, it managed to push above the 50-day MA at $1.10, and it reached as high as $1.25 (Feb 2018 highs).

Unfortunately, XRP could not overcome the resistance at the upper angle of the channel and started to roll over from there. It has remained above the 50-day MA and is testing the support at the lower angle of the channel.

Looking ahead, the first support lies at $1.10 (50-day MA). This is followed by $1.05 (20-day MA), $1.00 (200-day MA), and $0.95 (100-day MA).

On the other side, the first resistance lies at $1.15. This is followed by $1.25 (Feb 2018 highs), $1.36, $1.40, and $1.60 (bearish .786 Fib).

XRP lost crucial ground at 1940 SAT this week as the coin slips into a fresh 2-month-low price today after hitting 1860 SAT (.786 Fib). The coin has been in a descending price channel since the start of September and has been continuously declining.

Last week, the buyers found support at 1940 SAT after slipping beneath 2000 SAT. It was looking like the support at 1940 SAT would hold, but this eventually broke today.

Looking ahead, the first support lies at 1860 SAT (.786 Fib). This is followed by 1800 SAT (July 2020 low), 1735 SAT (.886 Fib), and 1700 SAT.

On the other side, the first resistance lies at 1940 SAT (previous support). This is followed by 2000 SAT, 2075 SAT (20-day MA), 2150 SAT (100-day MA), and 2250 SAT (200-day MA).

Cardano

Cardano struggled this week after falling by 5%, causing it to remain beneath the 20-day MA. The coin found support at $2 at the end of September and has since been trading in a range between $2 and resistance at $2.35 (bearish .382 Fib) in October.

Additionally, ADA is also trading beneath a falling trend line that dates back to the start of September. A break of above it and the upper boundary of the range would allow ADA to start to recover back toward the all-time highs again.

Looking ahead, the first resistance lies at $2.20 (20-day MA). This is followed by $2.35 (bearish .382 Fib), $2.40 (50-day MA), $2.50 (bearish .5 Fib), and $2.65 (bearish .618 Fib).

On the other side, the first support lies at $2.00 (100-day MA & .618 Fib). This is followed by $1.88 (downside 1.414 Fib Extension), $1.80, and $1.72 (200-day MA).

ADA is also suffering tremendously against BTC as it sets a new 2-month-low at 3620 SAT this week. The coin had dropped beneath a descending price channel last week but managed to find support at 4000 SAT.

Unfortunately, ADA would drop beneath 4000 SAT on Monday as it fell beneath the 200-day MA to find support at 3760 SAT (.786 Fib). This support was broke today as ADA slipped to 3620 SAT.

Looking ahead, if the bears push beneath 3620 SAT, the first support lies at 3500 SAT. This is followed by 3410 SAT (downside 1.272 Fib Extension), 3200 SAT, and 2065 SAT (.618 Fib & August support).

On the other side, the first resistance lies at 3760 SAT. This is followed by 4000 SAT (200-day MA), 4295 SAT, 4500 SAT (100-day MA), and 4670 SAT.

DOT is up by a very strong 18% this week as the coin finally pushes back above $40. DOT found support at $26.22 toward the end of September and rebounded from there. It continued higher in the first week of October, allowing it to reach resistance at $37.50 (September resistance).

The September highs were penetrated on Wednesday when DOT surged above $40 to reach as high as $42.50. It has since dropped slightly and is trading around $40.

Looking ahead, the first support lies at $39.20 (.236 Fib). This is followed by $37.50, $34.70, $32.40 (.618 Fib & 50-day MA), and $30.

On the other side, the first resistance lies at $41.35 (bearish .786 Fib). This is followed by $42.50, $45.30 (bearish .886 Fib), $46.70 (1.272 Fi bExtension), $48.50, and $50.

ADA is currently trying to recover back toward the September highs against BTC. The coin found support at the 200-day MA around 6000 SAT earlier in the week and rebounded higher from there.

It would break above the 50-day MA during the week to reach as high as 7500 SAT on Wednesday. More specifically, ADA was unable to close a daily candle above 7286 SAT (bearish .618 Fib) and has since dropped to the 50-day MA.

Looking ahead, the first support lies at 6500 SAT (20-day MA). This is followed by 6000 SAT (200-day MA), 5760 SAT (.5 Fib), and 5500 SAT (100-day MA).

On the other side, the first resistance lies at 7000 SAT. This is followed by 7285 SAT (bearish .618 Fib), 7500 SAT, and 8000 SAT. Added resistance lies at 8310 SAT (bearish .786 Fib), 8500 SAT, and 9000 SAT (bearish .886 Fib).

Polygon

MATIC is up by  20% this week as the coin reached as high as $1.60. MATIC was inside a descending price channel through most of September until support was met at the 200-day MA at around $1.05. From there, it rebounded and broke above the price channel at the start of October.

As October progressed, MATIC struggled to break above $1.35. This caused it to drop to $1.20 on Wednesday, where it rebounded. Today, MATIC exploded to reach as high as $1.60.

Looking ahead, the first resistance lies at $1.60. This is followed by $1.75 (bearish .618 Fib), $1.80 (September highs), $2.00, $2.05, and $2.15.

On the other side, the first support lies at $1.40. This is followed by $1.31 (.382 Fib), $1.17 (.5 Fib), and $1.05 (.618 Fib).

Against BTC, MATIC started the week by falling beneath support at 2277 SAT to reach as low as 2015 SAT (downside 1.414 Fib Extension) on Tuesday.

The bulls regrouped and eventually pushed back above the 200-day MA today to reach as high as 2750 SAT (bearish .5 Fib).

Looking ahead, if the buyers break 2750 SAT, the first resistance lies at 3000 SAT (bearish .618 Fib). This is followed by 3175 SAT (bearish .786 Fib), 3000 SAT, and 3630 SAT.

On the other side, the first support lies at 2500 SAT (200-day MA). This is followed by 2430 SAT (.786 Fib), 2277 SAT (.886 Fib), 2113 SAT, and 2015 SAT.

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The smaller cryptocurrencies rallied sharply on Thursday, enjoying a swell of risk appetite after some of the concerns around the debt crunch at Chinese property company Evergrande that had rattled markets earlier this week subsided.

While the likes of cardano's ada, solana's sol and even ether have posted major gains in recent weeks, it was the smaller coins such as the native tokens of the avalanche, cosmos and polkadot networks that led the charge higher on Thursday.

Cosmos, a decentralized, peer-to-peer network that enables data exchanges between blockchains, was the front runner, as its atom token gained 23% over 24 hours to stand at $40.38 at 06:13 a.m. ET, according to coinmarketcap.com. Avalanche's avax token rose 20% in a day to $76.39, while layer-zero protocol polkadot's dot went up 9% to $31.26. So-called "ethereum killer" solana's sol rose 12% to $148.02.

Worries cooled about Evergrande on Thursday after the firm agreed to settle interest payments on a domestic bond the previous day and the Chinese central bank injected extra liquidity in the financial system.

The company owes more than $300 billion to bondholders and banks all over the world and an announcement earlier this week that it might not make a key coupon payment hit risk assets such as stocks and cryptocurrencies hard.

"Crypto is a risk-off asset, so will fall with stocks in the short term, but they are not correlated over the long term," Marcus Sotiriou, sales trader at UK based digital asset broker GlobalBlock.

Altcoins have been on a tear so this year, with sol up almost 10,000%, meme-token dogecoin up 4,000% and avalanche's avax up 2,300%, prompting many to question whether some of these lesser-known tokens linked with smaller networks are in a bubble.

"Many coins with strong fundamentals that are solving real life problems are experiencing rapid network adoption. I think these cryptocurrencies are very undervalued given the power of network effects and size of the market they are going after," Sotiriou said.

"When comparing the same (total value locked) TVL amounts of these networks against ethereum [it] indicates that they are likely undervalued," Eliézer Ndinga, research lead at 21 Shares, a crypto exchange traded products provider, said.

Total Value Locked is the dollar amount invested in decentralized financial applications built on blockchains, Ndinga said. This metric measures the overall health of an application in real-time and is one way to determine the value of one network versus another.

Read the original article on Business Insider

Crypto strategist Michaël van de Poppe is extremely bullish on Polkadot (DOT), while warning several popular altcoins may face further corrections.

The trader and analyst tells his 442,000 Twitter followers that DOT appears “programmed” to rise above $100 in the current market cycle.

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Using a Fibonacci extension model, he outlines $75 and $115 as potential targets.

“If we assume that the area around $37 is going to hold as we are into a bull cycle, you could wonder whether you could be getting into the markets already or whether there’s a retest. So you derive a potential scenario of potential lows and potential gains. So for you, the [upside] targets are $75 to $115…

If you analyze the fact that we are going to sustain at around $38, then the potential loss and invalidation is this previous low at $32.”

As for Cardano (ADA), Van de Poppe says the fifth-largest crypto asset by market cap is sending bearish signals on the Bitcoin (BTC) chart.

“Cardano against Bitcoin is showing heavy run-up, bearish divergence here, and currently showing weakness resulting in overall downwards momentum.”

The cryptocurrency analyst says that a buying opportunity may present itself if support around 0.00002930 BTC holds, which is worth about at $1.75 at time of publishing.

“The crucial area that I want to see sustained is overall this level [at $1.75]. If that is going to hold here, which I might find tricky, then I’m looking for anything in these regions for potential long entries.

If that one is lost, I think we’re going to look at the area around 0.0000150 BTC [$0.90] and 0.00002 [$1.19] BTC before we’re going to get bullish all over again.”

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Next up, Van de Poppe says he expects Solana (SOL) to experience “heavy correction.” According to the crypto analyst, the ideal opportunity would be after Solana corrects by about 67%, falling to around the 0.00135 BTC level on the SOL/BTC chart, which is currently valued at $80.40.

“Solana, same picture. Heavy correction most likely going to take place.

I practically have one area that I’m looking at to buy Solana at this point. It’s this region (0.00135 BTC). I’m not interested in Solana until there. That’s a corrective move of 67%.”

The cryptocurrency analyst also looks at supply chain management blockchain VeChain (VET), which he says is trending downwards.

“What we can see in this cycle too is that we are making lower highs [and] lower lows. And we are also rejecting previous support for resistance all the time.”

According to Van de Poppe, the “best potential entry point” on the VET/BTC chart is either the 0.00000110 BTC level or at 0.00000150 BTC, worth $0.066 and $0.089, respectively.

“Best potential entry point for me is around 0.00000110 BTC [$0.066]. I’m looking at an entry point in this region. If we get there in November and December, that would be absolutely amazing if that is going to be hit.

Second one – that’s this entire zone that we have here. We dipped in it already and that is the zone around 0.00000150 BTC [$0.089].”

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RBI is working towards a 'phased introduction' of the digital rupee. The digital rupee will likely coexist with cash and digital forms of payments.

BTC reached a new all-time high on the heels of ETF excitement. After bursting through the $66,000 barrier, Bitcoin was briefly trading above $67,000, said Zebpay Trade Desk. "The market has been in the green for multiple trading sessions over the last few days, which is a good sign, indicating that the fundamental belief and sentiments are positive. The pace of news is frenetic, but all positive," it added. Bitcoin rallied to a record high after a strong debut by the first US exchange-traded fund investing in Bitcoin futures stoked optimism about the digital asset’s outlook. The NFT market is going through a major correction in the last two weeks, and we can expect the market to correct more in the next few weeks because of the ongoing rally in Bitcoin, said Hitesh Maliviya, Founder, itsblockchain.com. "NFTs are bullish in the long term, and we can expect a huge surge in demand after Coinbase opens the NFT marketplace by the end of the year," it added. Tech View by Giottus Cryptocurrency Exchange Ethereum (ETH), the second largest cryptocurrency, has had quite a run since 2020. It has rallied from a low of $150 in March 2020 to over $4,000 today. Over the past few weeks, ETH has successfully broken through its local top of $4,030 and is now continuing upwards. As the world’s largest blockchain platform, hosting thousands of cryptocurrencies, smart contracts and dApps, ETH deserves to be called a blue-chip of crypto in addition to Bitcoin (BTC). With BTC hitting its all-time-high (ATH) yesterday, ETH is expected to have a strong run this month. Its next major resistance remains its ATH - located at the $4,370-4,400 range. With BTC trading well above its 20-week moving average and ETH/BTC currently bouncing off a support trendline forming since May this year, the ETH/BTC ratio is also expected to rise once BTC completes its price discovery - indicating that ETH will outperform BTC in the immediate future. It will need to wrestle with resistance at $4,215 on its way up. However, once past these levels, ETH is likely to go into price discovery mode, with no resistances in play. Psychological level of $5,000 and above may be the next big target. Should ETH start to decline, it is likely to find support at $4,030, which is a key daily level from May. Key Levels Support: $4,030, $4,000 Resistance: $4,216, $4,370, $4,400 (Time is in UTC and the daily time frame is 12:00 AM - 12:00 PM UTC) (Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.

Blockchain or distributed ledger technology (DLT) has advanced rapidly during the past few years. These developments have been accelerated with the launch of Ethereum (ETH) in mid-2015, which introduced a Turing Complete smart contract platform for building and deploying decentralized applications (dApps).

The Ethereum blockchain itself and various other competing and supporting decentralized protocols have undergone significant refinements, especially following the historic crypto bull market of 2017 - which brought a wave of new investors and talented professionals to the digital assets and DLT space. As expected, there’s no silver bullet and there are definitely critical challenges in this nascent space that must be addressed before we can expect to move forward in a meaningful manner.

Interoperability Solutions are Not Adequately Secure

For instance, there’s been a sharp focus, especially since 2018, on bridging multiple chains in order to support blockchain interoperability. This is essential due to many reasons, but primarily because investors and traders are looking to exchange data and assets between different networks to complete complex cryptocurrency transactions. However, these interoperability solutions are far from perfect and continue to experience damaging hacks and security breaches.

For example, Thorchain, a widely-used DeFi protocol, was compromised on several occasions (earlier this year). The hacks led to millions of dollars in losses. The hacker who was allegedly responsible for the exploits actually provided detailed messages on what measures must be taken to ensure protection of users’ assets.

Notably, the Thorchain protocol saw around 4,000 Ether stolen during one attack. Thorchain, which provides an automated market maker (AMM) and a decentralized exchange (DEX), has become known for offering liquidity pools (LPs) with substantial total value locked (TVL) in its contracts.

During one of the attacks against Thorchain, the hacker exploited an ETH Router contract in order to target the vulnerable Bifrost component, leading to over $8 million in losses. The hacker even acknowledged that the vulnerability had been known before and could have been prevented with properly written source-code.

When writing apps in Solidity, which is Ethereum’s smart contract programming language, software architects have outlined the appropriate coding methods (best practices) in order to transfer assets. But these guidelines had apparently been ignored by the development team, which led to a serious issue with the protocol’s RUNE token contracts.

In another damaging exploit, involving the Polychain network, a clever hacker managed to steal approximately $600 million in cryptocurrency via the Poly Network. Although the malicious actors returned the funds, the Poly Network team admitted that they have a lot of work to do in order to adequately secure their platform.

According to Brainjar (an anonymous character), Head of Product at Composable Finance, a hyper liquidity infrastructure layer for DeFi assets being powered by Layer-2 Ethereum and Polkadot, the reason for these issues stem from the fact that they're depending heavily on centralized infrastructures that make them a lot more vulnerable.

There could be a number of potential solutions where cross-chain interoperability can become considerably safer for end-users. Composable Finance claims that they can solve these problems by adding a robust layer of security. This, as they focus on building on the Relay chain which is currently backed by billions of dollars in funds from DOT and KSM.

Composable Finance is described as a parachain project which is preparing to head into a Kusama crowdloan auction this coming Saturday (which, of course, they're hoping and planning to win). For the record, Composable operates under the project name of Picasso on Kusama. 

As explained by the Composable Finance team, the crypto ecosystem has sought sharded blockchains for greater scalability. ETH 2.0, the updated version of Etheruem will be sharded, Polkadot will be sharded, and NEAR will also be sharded. 

But even though the vision of ETH 2.0 is on its way to becoming a reality, applications are being sharded, instead of blockchains or DLT networks being sharced. Sushiswap, for instance, is deployed on Ethereum Virtual Machine or EVM chains, Layer 2s such as rollups, Polkadot chains, and the expansion of these apps to other ecosystems is quite likely. 

Developing a Secure Communication Cross-Ecosystem

Composable Finance is working on a cross-chain, cross-layer liquidity layer for sharded apps.

The team will be using a parachain to serve as a finality layer. It will connect L2s to the Polkadot/Kusama ecosystem, and Inter-Blockchain Communication protocol (IBC) to the Polkadot/Kusama ecosystem. The goal is to further expand this to include various other ecosystems, like Algorand and Solana. 

Composable’s aim is to develop a protocol that enables a secure communication cross-ecosystem. The architecture is a Polkadot parachain that acts as a finality layer to support Polkadot to IBC cross-chain communication and asset transfer. It will also support Layer-2 communication and transfer via the parachain. Additionally, there’s a privacy layer that makes these interactions fully private.

Composable further explained that software architects can use a development kit to leverage this infrastructure, which is meant to support secure communication and provide access to liquidity. 

The main result is the ability to carry out actions that are cross-chain and also to look at the blockchain ecosystem as a network of “agnostic” liquidity and available yield. 

With the Composable software development kit (SDK), the team wants to start educating users about the secure cross-layer/cross-chain arbitrage opportunities. The team has also built several products on top of their parachain. 

Must Provide Reliable Finality Layer, Maintain Privacy

As noted by Composable Finance, the growth of the blockchain sector has led to serious issues surrounding interoperability. The team explains that there are several solutions relying on off-chain infrastructure, and there’s currently no reliable finality layer. The security of these types of solutions doesn’t support the required amount of transaction volume we would want the cross-chain DeFi ecosystem to support. Many so-called interoperability solutions also eliminate the privacy that a particular chain would have provided. 

The Composable team points out that many projects in DeFi are working hard to address the current limitations of interoperability by establishing bridges. Composable differentiates its offering by focusing on establishing adequate liquidity. 

Liquidity concerns aren’t a recent problem in DeFi. But they have been addressed by automated market makers (AMMs) built into DeFi exchanges such as UniSwap. The launch of cross-layer and cross-chain applications is now making liquidity a more serious issue, with many layer 2 apps and chains to balance liquidity, and not the right infrastructure to do so. 

Liquidity for cross-layer transfers is a concern that the testing laboratory, Composable Labs, is focused on solving. Head of Product, 0xBrainJar, Composable Labs has created a Liquidity Simulation Environment (LSE) to explore the opportunity and the appropriate means of cross-layer liquidity provisioning (LPing).

In addition to providing these solutions, the Composable team explains that existing interoperability solutions are vulnerable because the core of what they do is centralized, whereas Composable/Picasso is utilizing Parachains which, the team claims, are truly decentralized and backed by billions of dollars in DOT and KSM.

Many industry participants don't understand the severity of these weaknesses and Composable might be able to help the industry resolve these issues.

A historic run for cryptocurrencies that's recently stalled has some investors nervous that history will repeat itself and that digital assets will crash like after the blow-off top in late 2017.

But those concerns are overblown, says Brian Mosoff, CEO of Ether Capital, even as bitcoin (BTC), the leading cryptocurrency and a barometer for smaller coins, has slipped substantially from its all-time highs as China on Friday reiterated a call to crack down on digital assets.

Mosoff, a self-described "crypto degenerate," has been in the space since 2013, which makes him a veteran in the nascent world of cryptocurrencies. He's seen several crypto market cycles and notes that this crypto bull rally has been driven by a wave of support from non-tech-savvy individuals, corporations, and governments that's unlikely to reverse anytime soon.

Bitcoin bulls have long-time crypto skeptic Jerome Powell, the chairman of the Federal Reserve, to thank for the digital asset's mammoth 46% year-to-date run. By continually expanding the money supply, critics say Powell's Fed has crippled the dollar's value while making rampant inflation a threat. Bitcoin, which has a capped supply, is seen as a solution to easy Fed policy.

Bitcoin inevitably inspired legions of hopeful competitors aspiring to be the next hot coin after garnering mainstream attention in late 2020 as a store of value akin to a "digital gold." 

"Bitcoin is the gateway for everyone to enter into the space," Mosoff told Insider in an interview. "… You've got bitcoin season, and then you have 'alt season.' And then there's kind of this rotation of capital that goes first into bitcoin — that's what drives these runups — and then it kind of hits these plateaus, and then that capital looks for other ways to find more leverage to the sector."

Ether's 'hard to ignore' success inspires copycats

Those looking for crypto exposure beyond bitcoin tend to find ether, the ethereum blockchain's native token and the second-largest crypto by market capitalization. Count Mosoff's Toronto-based firm, which prioritizes ether among the digital assets it stockpiles, in that group.

Ethereum is attractive for several reasons, Mosoff said: It's well-established, has broad developer support, is currently the backbone of the decentralized finance (DeFi) movement that promises to bank the unbanked, and also now allows ether holders to earn passive income via returns of roughly 6%, which dwarf the interest payments that banks offer.

These steady, low-risk returns are achievable through "staking," a process where ether holders are rewarded for locking up tokens for a set amount of time to secure the network. Ethereum staking turns previously "unproductive commodities" into yield-generating assets, Mosoff said.

"Against the backdrop of [interest] rates at zero, if you wanted to bet on crypto over the next five or 10 years, ether is a really compelling investment," Mosoff said. "You get that hedge, that store of value, that nonpolitical-agenda asset while getting some type of return by staking it."

Ethereum's growing success is "hard to ignore," Mosoff said. Naturally, competitors have taken note. A new wave of "ethereum killers" has popped up in hopes of stealing market share and capitalizing on the network's most-criticized weakness: transaction charges called "gas fees" that critics say are unreasonably high.

A pair of crypto networks — polkadot and solana — has emerged as frontrunners in the race to be the leading alternative to ethereum, Mosoff said. But he said they're really competing with ethereum layer 2, which is a network that runs on top of the ethereum mainnet. 

Basically, ethereum has a first-mover advantage that smaller networks will struggle to catch up with even if they offer lower fees or more advanced networks. Transaction fees are far from the only relevant factor that DeFi developers must consider. Security and stability, two hallmarks of the ethereum network, are hard for competitors like solana to match — evidenced by an unexpected 17-hour shutdown that its network suffered in mid-September.

"A lot of new entrants to the market are very focused on just the transaction-fee narrative, and they're not looking at the wider picture," Mosoff said. "… If you can stay inside that ethereum ecosystem and remove all the friction of bouncing between different platforms, keep that capital formation into the same ecosystem, and have all the infrastructure, there's no reason for the capital to go somewhere else." 

With that said, Mosoff isn't an ethereum maximalist. He shared with Insider four altcoins that have promise and offered commentary for each name. Mosoff said that the only one of these altcoins he owns is polkadot.

Symbol: DOT

Use case: A multi-chain protocol designed to connect blockchains with different technical attributes and properties that could allow for the cross transfer of messages and assets

Commentary: "Ethereum, which is super, super secure, that is what looks like is kind of taking the place of what polkadot was meant to be. Now, that's not to say that polkadot can't succeed here. It is a high-profile project, it does have a unique community. … Polkadot is still in its early days. The network is not fully up and running. They haven't fully launched the network with smart contract support and parachains being live. They're getting there, but it's not in its full-blown vision. It is something to watch because it is a pseudo-competitor to ethereum."

Symbol: SOL

Use case: An open-source project intended to improve scalability with proof-of-history and proof-of-stake consensus mechanisms

Commentary: "What solana has is, they looked at this narrative that you have either centralized or decentralized [blockchains] and said, 'Well, maybe it's not so binary. Maybe there are degrees in between, and these communities have been wrong to just say, "You're either a centralized chain or a decentralized chain."' And Solana said, 'Well, maybe we can set that dial somewhere in the middle.' Because the more you try and become decentralized, the harder it becomes to scale up."

Symbol: AVAX

Use case: A fast, cheap smart contract platform that offers scalability

Commentary: "It's a high-profile team. It's had a price run-up recently. It has activity happening in their world of decentralized finance. It has more scalability than ethereum does, so it's still in that bucket of, 'Will it remain and be successful, or no?'"

Symbol: NEAR

Use case: A decentralized application platform that promises scalability and steady fees

Commentary: "NEAR Protocol is closer in design to ethereum than most of these other projects. It actually looks very similar in architecture to ETH 2's full-blown vision wants to be. They have something called the rainbow bridge so that you can move your assets between ethereum and NEAR, or NEAR back to ethereum. … Can you offer an environment for just cheaper activity to take place? … Today, all of these chains are trying to do it, and they're saying, 'ETH is moving very slow, so there's an opportunity here to swoop in, build a community, [and] get a network effect. [And] as ethereum scales, hopefully, that activity doesn't leave us.'"

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The total crypto market cap added $222 billion to its valuation for the last seven days and now stands at $2,321 billion. The top 10 coins showed mixed results for the same time period with Polkadot (DOT) adding 11.5 percent for the period while Solana (SOL) lost 13 percent. Bitcoin (BTC) is currently trading at $56,300 while ether (ETH) is at $3,570.BTC/USD

The bitcoin bulls successfully defended the horizontal support near $40,500 which resulted in the full capitulation of sellers by Sunday, October 3. The leading cryptocurrency ended September with a 7 percent loss but initiated a fresh new uptrend rally in the first days of the new month.

On Sunday, October 3 the coin reached the important $48,000 mark. This level served as a short-term resistance during the trend reversal attempt in mid-September and was now about to test the price momentum.

The weekly timeframe chart was looking good for the long-term BTC holders as it was suggesting the recent pullback is rather a temporary retracement than a beginning of a new bear market.

The new seven-day period started with a short green candle to $49,100 as buyers surpassed the Volume Profile Point of Control and BTC was now heading towards the psychological level of $50,000.

On Tuesday, two important short-term milestones were achieved. First, the mentioned critical horizontal level was broken, and second, bitcoin climbed above the three-point strong weekly downtrend line for the first time since mid-April suggesting a general reversal in the market direction might be upon us. It closed the session at $51,400 with a 4.7 percent of increase.

The mid-week trading on Wednesday, October 6 was no different as the cryptocurrency market was surging. Bitcoin was once again leading the group with more than 7 percent being added to its valuation and $55,000 was the next point of interest for bulls.

On Thursday, October 7 we saw a 2.8 percent price correction as profits started to flow from BTC to the lagging altcoins.

The last day of the workweek came with an attempt from bulls to break above $55,300, but the move was fully retraced and quickly absorbed by the sell orders located in that area, so the coin ended the day flat.

The weekend of October 9-10 started with a short green candle to $54,900 on Saturday. This was followed by another failed breakout attempt on Sunday. Bitcoin was 13 percent up on a weekly basis, still, it successfully surpassed the mid-term downtrend line.

The biggest cryptocurrency is currently trading above $56,000 as the uptrend rally was resumed at the beginning of the new week.

The Ethereum Project token ETH bottomed slightly below the $3,000 demand zone (at $2,760 to be more precise) and started moving in the opposite direction. The coin broke above the short-term downtrend on October 1 and by Sunday, October 3 reached the upper end of the old range.

The cryptocurrency market managed to quickly absorb the latest FUD coming from China and chose to follow the US regulators and financial authorities as both the Federal Reserve and the Security and Exchange Commissions confirmed there are no plans to ban any digital assets which are compliant with the laws.

On Monday, the ether consolidated in the above-mentioned area after successfully testing the previous resistance level now turned support.

The trading session on Tuesday, October 5 was once again good for bulls as the ETH/USDT pair was closely following bitcoin’s trajectory. It moved up to $3,515.

On Wednesday, the biggest altcoin hit the $3,619 range high and formed a solid green candle to $3,576. The burning fees mechanism in combination with the ETH 2.0 staking was putting deflationary pressure on the coin, cutting the supply.

The Thursday session brought no high-intensity moves to the ETH/USDT pair. The coin remained almost flat, struggling to break above the September high.

On Friday, October 8, the buyers pushed the price up to $3,692 during intraday but were not able to consolidate above the mentioned swing high and the move was fully retraced by the end of the session.

The first day of the weekend came with another flat session and then on Sunday the coin registered a 4 percent drop to $3,400 but the support line played its role perfectly, keeping the uptrend intact.

The ETH token is currently trading at $3,588.

Polkadot is a layer 0 protocol that aims to facilitate communication and interoperability between the different blockchain ecosystems without actually competing with them.

The Kusama parachain auctions are still ongoing, but investors are now looking forward to the upcoming Polkadot crowdloans, which are expected to start sometime next month and mark the de-facto Polkadot mainnet launch.

The DOT token successfully found support at the $25 demand zone two weeks ago and since then has added more than 40 percent to its valuation.

Next for the coin is to surpass the $38.6 September high and consolidate for an attack of the strong support/resistance zone at $40-$41.

Traders are betting on a new all-time high soon mainly due to the fact a lot DOT coins will be locked in the parachain auctions and thus significantly reducing the circulating supply.

Our altcoin of the week is Spell Token (SPELL). One of the native tokens of the Abracadabra Money (the other being MIM, Magic Internet Money), a cross-chain stablecoin lending protocol added the stunning 216 percent to its value for the last seven days. The coin successfully entered the Top 100 list on CoinGecko last week after registering its first and second billion in Total Value Locked (TVL) in less than two weeks. Abracadabra now operates with $2.26 billion, a 75 percent increase on a weekly basis.

The multi-chain project is building itself as a direct competitor to MakerDAO and is definitely getting some attention mainly due to its meteoric rise.

SPELL is currently ranked at #104 with a total market cap of approximately $1.05 billion. It peaked at $0.0233 on Sunday, October 10, and is currently trading at $0.018.

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At some point in the next nine months, Michaël van de Poppe thinks ether will overtake bitcoin in terms of market capitalization - an event many crypto enthusiasts call the 'flippening.'

"If we're still in a bull cycle, I think that will happen," the Eight Global chief executive told Insider in a recent interview. "The big question is whether it's temporary, or for the ages."

"If I had to be bullish on bitcoin or ether for the next two years, I would pick ether," he added.

That statement should be surprising - considering van de Poppe is confident that bitcoin will hit $300,000 this bull cycle. But he told Insider that a combination of price action, market sentiment, and on-chain analysis pointed to ether's price rising to $15,000.

Van de Poppe runs Eight Global, a 12-person crypto consultancy and educational platform, from Amsterdam's Beursplein 5. He also provides price analysis on his 400,000-follower Twitter account and 130,000-subscriber YouTube channel.

"Right now, we're living our lives in crypto, following our passion, and targeting expansion," he said. "Most platforms target day trading and trade ideas, but we're building towards asset management and varied portfolios."

Van de Poppe bases his price analysis on Plan B's stock-to-flow model, which compares the amount of a cryptocurrency in circulation against its rate of production. That model suggests that the current bull market still has room to run.

"I think we will have six to nine more months of bull, with one more big breakout to come," van de Poppe said. 

"Ether is still in a bull cycle, I'd compare it to the bitcoin bull cycle of 2017," he added, referring to the 2017 bitcoin boom, when prices soared from $998 to just under $20,000 by the end of the year.

Like all cryptocurrencies, ether has been volatile in 2021. It surged 440% from $775 to an all-time high of over $4,000 in May, then slid under $2,000. This week, it pushed through the $4,000 level once again. Van de Poppe told Insider that he's anticipating prices will rise nearly four-fold during the current cycle.

"If bitcoin breaks out one more time, then of course ether will do the same," he said. "Ether towards $12,500 to $15,000 seems very likely with the current burn rates."

However, van de Poppe did express some skepticism about ethereum's overall scalability. Ethereum Improvement Protocol 1559, or EIP-1559, is designed to make transaction fees more predictable and "burns" coins to limit ether's overall supply. It launched in July this year.

"EIP-1559 is the first step," he said. "But the issue isn't fixed - gas fees are skyrocketing at the moment." 

"Because it's not fixed, you see other ecosystems competing - such as solana and avalanche," he added.

As well as ether, van de Poppe identified two other altcoins that could be set to surge over the next few months. An altcoin is defined as any cryptocurrency that isn't bitcoin.

"There are still a few coins that are just waking up," van de Poppe said. "A couple of layer 1 blockchains are lagging behind heavily."

First, van de Poppe recommended cosmos, due to its sophisticated technical applications.

"Cosmos has its own ecosystem, connecting other layer 1 blockchains, so it's independent of one fixed system," he said. "I've been saying for a while that it could be the next solana."

Cosmos' atom token has posted some strong growth this year, surging from $6.50 at the start of 2021 to an all-time high of just under $45 on September 20. However, it has since dropped towards the $35 level.

Secondly, van de Poppe praised polkadot, which he said was clearly lagging behind in the current bull cycle and thus could be set to surge.

"I like it due to the technical factors - I like it purely based on price action analysis," he said. "Its ecosystem has some difficulties, but it's one of the few layer-ones not moving at all yet."

Polkadot's price has been volatile in 2021, declining from an all-time high of $48 in mid-May to just $11 by July. It's currently valued at just over $44.

"Cosmos and polkadot are both undervalued," van de Poppe said. "I think both of these coins could reach three-digit valuations."

However, van de Poppe said that he's currently bearish on cardano's ada token.

"Cardano being valued at $100 billion just doesn't make sense at all," he told Insider. "It suggests we might already be in a bubble with ridiculous overvaluations."

Ada has gained nearly 1,250% this year, becoming the third-largest cryptocurrency by market capitalization, behind bitcoin and ether. Van de Poppe said that there is nothing fundamentally underpinning that valuation, with cardano's network - which upgraded to hosting smart contracts last month - lagging behind ethereum and other platforms.

"Cardano is a joke," van de Poppe said. "The ecosystem that's being built is beautiful, but it's ridiculous that it's valued at such a high number - it's all big dreams and fortune-telling, with no realization."

"If you compare it to ethereum, avalanche, or solana, it's massively overvalued," he added. "Its value isn't real at this stage."

Van de Poppe drew a comparison between the last crypto crash and the current market, pointing to cardano's similarities with XRP. Ripple's XRP token surged above $3 at the start of 2018, but then collapsed to under 50 cents just four months later. It has never regained its old position as the third-largest cryptocurrency by market capitalization.

"Ada could be the XRP of 2021," van de Poppe said. "Everyone I know who doesn't have anything to do with crypto is buying up cardano right now - that suggests either it's overvalued, or other projects are undervalued."

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As optimism for the SEC's approval of up to four bitcoin futures ETFs this month builds, a Nashville, Tennessee-based crypto asset manager could be first in line to reap the rewards of a long-anticipated fund launch.

Valkyrie Investments, which manages about $500 million in assets, filed for a physically backed bitcoin ETF and two bitcoin futures ETFs under the Investment Company Acts of 1933 and 1940, respectively. 

As a small issuer, Valkyrie was able to file for the '33 Act-related fund confidentially, but a Nasdaq filing in August revealed the firm as the frontrunner. 

With 19 bitcoin ETF applications pending at the SEC, Chairman Gary Gensler has voiced support for those registered under the '40 Act. He believes that the '40 Act products, which would have to partly invest in fixed income and Treasuries, would better protect investors than the '33 Act products that would only invest in bitcoin futures. 

Steven McClurg, chief investment officer at Valkyrie Investments, told Insider in an interview at the Chicago Trading Show that while he hopes the SEC staff allows the firm to launch the '33 Act fund, he thinks the '40 Act fund stands a better chance of coming to market earlier.

McClurg said a futures-based bitcoin ETF would likely draw more institutional investors into crypto as many of them have had no problem following the futures market when it comes to trading new asset classes such as oil, gold, and other commodities. 

"Bitcoin trades everywhere, so it's hard for regulatory agencies to get their hands around that whole market," he said. "But CME futures are only in the US, so it is already a regulated product. That gives them a lot more comfort to put into an ETF wrapper."

From bitcoin to ethereum competitors 

McClurg, a veteran in private equity and fixed income, has been following bitcoin since 2011. A macro analyst at heart, he especially resonates with the underlying philosophy of bitcoin. 

"After 10 years or more of monetary stimulus, we are finally hitting inflation. If you have inflation of 5%, then that's essentially a tax on everybody holding dollars," he said. "But you can't print more bitcoin because there's only 21 million of them."

He is also bullish on bitcoin's adoption curve as El Salvador embraces the cryptocurrency as a medium of exchange.

"With layer-two solutions like Lightning and Strike, it makes bitcoin transactions so much faster and easier without necessarily giving up security," he said. "I think more people are going to want to hold and transact in bitcoin."

Having built two crypto companies, one of which Galaxy Digital acquired, McClurg is always on the lookout for the next disruptive blockchain technology. Unlike most investors who went from bitcoin to ethereum, he skipped investing in ethereum altogether because the once "great technology" is "already a little bit outdated."

"There are new protocols that compete with ethereum that are much faster, lower-cost, and safer," he said.

He compared the competition among smart contract platforms to when the iPhone came out to disrupt BlackBerry.

"When the iPhone first came out, everybody was just starting to build applications for BlackBerry," he said. "Then everybody stopped and started building applications for Apple because they saw that as the future. That would have been a really good time to short BlackBerry."

5 under-the-radar altcoins 

Instead of "shorting" ethereum, McClurg has opted to launch products for under-the-radar altcoins where developers are building better technologies and decentralized applications.

To vet the projects, his team, which includes cybersecurity and mining experts, spends much time talking to developers and conducting in-depth due diligence. Aside from bitcoin, they have launched five trusts for what they believe to be undervalued tokens. 

One of them is polkadot (DOT), which was created in 2016 by ethereum co-founder Gavin Wood. Given its ability to operate across multiple chains, polkadot has been called "the internet of blockchains." It aims to enable different public and private blockchains to connect with each other.  

Algorand (ALGO), a smart contract platform launched in June 2019, is created by Silvio Micali, a computer science professor at the Massachusetts Institute of Technology. Like many ethereum rivals, it claims to provide faster transaction speeds, lower costs, and improved security.

McClurg said the protocol is built from the beginning to support Know Your Customer and Anti-Money Laundering rules, which is an important feature given today's regulatory scrutiny of crypto. 

While polkadot and algorand are catching up to ethereum in the US, Tron (TRX) is winning the war in Asia, in his view. "There are now more tether transactions occurring on Tron than all other blockchains put together and they also have a massive NFT market," he said. 

Also based out of Asia, Zilliqa (ZIL) is a decentralized smart contract platform built to scale and claims to have a transaction speed that's a thousand times faster than that of the ethereum network. 

"Even though there's not a lot of attention around it now, we see the technology behind it," he said. "We think that it's going to be what polkadot or algorand is today a year or two years from now."

Valkyrie also stakes the assets it holds in various trusts, which is the main reason why the firm launched a Dash trust, according to McClurg.

Dash (DASH), a fork of litecoin, is a decentralized cryptocurrency that aims to emulate bitcoin while offering more scalability and security. With 18.9 million in fixed supply, the digital token has been used as a medium of exchange in some parts of South America and Africa since its creation in 2014, he added. 

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