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Stablecoin

What are Stablecoins? Which is the best Stablecoin?If you find the analysis useful, please like and share our ideas with the community. Any feedback and suggestions would help in further improving the analysis! Quick glance: In this educational post, we attempt to dig deeper into the world of Stablecoins. We have broken down the post into 3 parts where we discuss: What are stablecoins and why do they exist? Difference between USDT, USDC and DAI Which is the best Stablecoin? What are Stablecoins and why do they exist? Stablecoins are cryptocurrencies that are pegged to the US Dollar. (Pegging refers to fixed or tied). Stablecoins are essentially the backbone of the cryptocurrency trading universe. In a world of high volatility, the Stablecoins ensure that the value of money doesn’t change drastically. tablecoinsIn this post, we will discuss the 3 different most used Stablecoins: USDT issued by the company Tether USDC run jointly by Circle and Coinbase DAI, fully decentralized P.S. This is a non-exhaustive list. And more Stablecoins will likely be added over time. USDT or Tetherus USDT is one of the most talked about Stablecoins. As of today, it’s market capitalization is third largest among cryptos, after Bitcoin and Ethereum. It speaks about the popularity and the liquidity of USDT. It is widely used as trading pairs such as BTCUSDT, ALGOUSDT, ETHUSDT etc. FYI, USDT is issued by a company called Tether, based out of Hong Kong. The company claims that the price of USDT will always remain at one US Dollar, as each new coin minted is backed by an equivalent amount of cash or assets being added to the company’s reserves. USDC or USD Coin USDC is run by a joint partnership between Circle and Coinbase. One key difference between USDT and USDC is that USDC is based on the Ethereum network. It came into existence to be used for DeFi or Decentralized Finance applications DAI DAI is an Ethereum-based stablecoin (stable-price cryptocurrency) whose issuance and development is managed by the Maker Protocol and the MakerDAO decentralized autonomous organization. The price of DAI is soft-pegged to the U.S. dollar and is collateralized by a mix of other cryptocurrencies that are deposited into smart-contract vaults every time new DAI is minted. Which is the best Stablecoin Although, there is no direct answer to this, different aspects can be considered to judge the usability of each coin. USDC is pegged 1:1 to the US dollar, held in reserve bank accounts, and is subject to regular attestations to ensure that it stays this way. This process mitigates the market risk from the currency. On the other hand, despite being hugely popular, the transparency with USDT remains questionable. To counter the transparency and centralization aspect, the Stablecoin DAI came into existence. To mint DAI, one has to deposit collateral with MakerDAO. Once the collateral has been deposited in Maker, the trader can generate a certain amount of DAI. Therefore, DAI appears to be the best Stablecoin in terms of decentralization, transparency and averse to market or liquidity risks. However, it will definitely take some time to catch up with the popularity of USDT. ---------------------------------------------------------------------------------------- Any feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :)
COINBASE:DAIUSDEducation
by Mudrex
6
Stable Coins are most stable cryptocurrenciesThe most stable first generation cryptocurrency The most famous example is Tether pegged to the dollar. The issuer of USDT is Tether Limited, which is committed to collateralizing USDT at a 1: 1 rate to the US dollar. Despite the fact that this cryptocurrency has been criticized more than once, has not undergone an external audit, it can still be called the most stable cryptocurrency. To be convinced of this, it is enough to look at the history of the USDT rate. Disadvantages of stable cryptocurrencies Based on the above information, the main disadvantages of stable coin can be deduced: The possibility of centralization. Yes, many conventional cryptocurrencies have such a risk, but almost all stablecoins must be controlled by a separate organization, which is not the case in the classical concept of cryptocurrencies. The risk that the controlling organization will go bankrupt or will not fulfill its obligations to the holders of the cryptocurrency. Some stable tokens refuse auditing. It is difficult to make money on the stable cryptocurrency rate. Stable unstable cryptocurrency Another stable coin concept is pegging to conventional cryptocurrencies. The technique seems a little strange. The stability of such cryptocurrencies is ensured by the airbag in the form of an excess of digital assets. For example, to keep the stable coin rate at $ 2, you need to have $ 4 of unstable cryptocurrency in reserve. Then, if the rate of an unstable cryptocurrency falls by 50%, that is, to $ 2, stable coin will still fulfill its obligation to pay the required amount. In order not to look for examples for a long time, you can take the bitUSD smartcoin, which is tied to its BTS cryptocurrency. Who is involved in my transaction? Both blockchain (the breakthrough technology underpinning Bitcoin) and DLT (levering blockchain technologies) continue to evolve. Stablecoin cryptocurrency is the subject of ongoing discussion as regulators, policymakers, governments and financial institutions around the world debate implementation. For less popular national currencies, this may be the innovation necessary to shift from physical to digital cash, and as such, stablecoin offers a viable solution. Fnality, the newly created consortium of banks using UBS’s stablecoin, is focused on such solutions and is making progress. Summary As you can see, it is quite simple to solve the problem of saving funds after the ICO if you carry out this procedure using a stable coin. It is enough to choose the most suitable concept.
COINBASE:BTCUSD
by Berzerk_invest
3
ETC creating spiral according to fibonachi sequenceETC has been developing exactly as I planned. This dead project skyrocketed into top 20 and surpassed projects like solana, which is only way better version of ETH with tons of potential. Fair price for this project is somewhere around 1 dollar, where I will buy it just to use it as stable coin. But before prices like 1 dollar we have to RESPECT THE PUMP as would Ivan said and obeserve this amazing BULLISH pattern which occured. I'm not talking about anything else than Fibonachi sequence patter and no i dont mean some BS fibonachi retracement. This patter will send us back in time according to Einsteing theory of relativity. In concequences people will realize, that this hype is complete bs and dump it. Eventually this pattere will create loop hole in spacetime and send this coin to land of stablecoins
Long
by cernajs
5
Haven ready to break its July highs!Double tops very rarely hold. Here we see a nice trend and this protocol has a unique stablecoin... Not many listings and that could change at some point. It could easily take out the Bittrex ATH and then test the actual ATH from Tradeogre. Coming out of such massive capitulation is massive and there is a real driver for demand. The more it grows, growth accelerates as people can usd XHV to create USDX a private stablecoin. The most recent Kucoin listing is good as despite the hack, Kucoin has come back very strong as newbies came back.
XLong
by BitcoinMacro
1
EPS/USDT Update: Is the drop finally over?Looking at EPS we had a rough start since its Binance listing. It continued to drop and had to deal with a drop this weekend together with the rest of the market. We can draw a descending parallel channel that needs to be broken before we can get any proper recovery. Except for some spikes the volume is pretty constant. As stablecoins become more and more relevant especially during dips EPS is poised to bounce back in our opinion. Basic rules: - Never buy the top/ATH - Take profit as long as you can - Use Stop/loss for leveraged positions - If you are not experienced, don't leverage in the first place Enjoy the ride and don't be too greedy. If you like the content, please like, comment and give this channel a follow. Always do your own research and keep in mind that my charts and comments cannot be considered financial advice. Cheers ps. Chart explanation: Main lines: - Green lines are tested support lines. - Orange lines are resistance lines or, if we are above, possible support lines which were not tested yet. - Cyan line is for volume trendline. Helplines: - Purple lines are trendlines we take a look at. - Yellow lines are for visual help only. Boxes: - Either entry zone or support zone. Check the description.
ELong
by tumbler55
4
The easiest short of your lifeI dont know who came up with the DOGE pump and dump but boy did this one go. Even Elon Musk helped inflate this bubble. What you see here is basically a rerun of 2017/2018 when brand new investors flocked into whatever coin the "people" were buying. DOGE is not "the peoples coin." If your seasoned in crypto you understand that Doge holders are majority 4chan users. This coin is potentially the worst coin to attempt some valliant GME long term rally as it was originally the crypto communities stablecoin before the likes of Tether and BUSD. But nonetheless its 10x in value and is showing signs of a top with majority of dumb emotional money being contained within the very top segment of the price range. If price increases back into this range the emotional traders sell their positions to alleviate the fear they just felt of being underwater. The price would require huge buy orders to push through this, any volunteers? Didnt think so. Everyone that is wanting to buy DOGE has bought DOGE. Its over. this is the top.
BITTREX:DOGEUSDShort
by Piggiiieee
4
BTC- Quick fundamental, derivative and on-chain recap*The STABLE Act bill, if passed, would require stable coin issuers to comply with Federal reserve and a banking license registration and to follow the same level of regulatory requirements as banks. Similar sentiment is echoed by G7 officials. *Buy bitcoin google search has recently reached a level not seen since early 2018 *Coinbase's web traffic recently surged to the highest level not seen since April 2019 *Global bitcoin options OI hit another all-time-high recently *Future traders on Binance are bullish on BTC, but future traders on Bitmex, Okex and Huobi seem to be bearish on BTC *BTC options expiry on Dec. 25th will be the largest expiry in USD terms *DEC. CME COT report on BTC indicates that whales' net short has reached all-time high *BTC 3 month realized volatility is slowly ticking up *Total DeFi unique addresses have recently surpassed 1 million mark *SOPR (Spent Output Profit Ratio), Coin Days Destroyed (CDD) and BTC MPI (Miners' Position Index) indicate that the short-term correction is coming while realized price & realized market cap indicate that overall BTC price is in a healthy trend. I expect the short-term correction to end around 16k or 13k. Historically, BTC has a mixed Q4 performance, but typically performs poorly in Q1 so we could be expecting a slow correction process that may not end until January next year.
COINBASE:BTCUSD
by Libratus
Inner Circle BNB/TUSD #fibcircle #bnb #crypto #tusd $BNBBnb could be dropping down to support levels here . See our red candles now curving down along that blue fib circle line ? I expect that to continue . Also see that red arrow pointing down ? That shows our candles already wicking down into that green Ichimoku Cloud . We are almost certainly going to be crossing down through this cloud and closing underneath it at some point . There is a support level below us near $16 by that red dotted line . Below that is a .236 fibonacci level near $14 . If we dump below both of those it is very possible we revisit the $10 level again -perhaps even lower . See that red question mark ? That's sitting on the bottom edge of that purple Gann Fan line which we are also in right now . It's possible we touch down to this line at some point . How long will that take ? I have no idea . I'm sure there will be some up and down along the way but probably this will take months . Also notice this is the TUSD pair of BNB . That's True USD stablecoin on Binance . Apparently this is a stablecoin fully collateralized with multiple escrow accounts but I'm trying to limit my tether exposure to some extent when I can .
by shimmeringpath
AMPLE - THE INFLATION ADJUSTED STABLECOINThe idea behind this new and interesting kind of stablecoin is to allow holders to mantain the same amount of the initial investment in terms of usd (this is why is called stablecoin) but not in terms of amount of coin held. So, it is not forcedly pegged to the dollar itself, but it autonomously adjusts. When the demand makes the ample price to grow, the protocol takes from you the amount of coins to bring your $ value equal to the beginning. If the demand decreases, the value of ample decreases as well, so you will be credited new amples. It is not immediate, but it is a longer term adjustment,that is why it opens the doors to arbitrages. Now, the demand for ample is very low because with btc pumping there is no demand for stablecoins. It is a good moment to buy at 0.8, waiting for 1.5 target (almost 100%). This, despite this kind of coin is not the best application of TA, is confirmed but the support and fibo level on the chart. What do you think about AMPLE? You think is a good coin to trade? Let me know in the comments!
Long
by edutradinguru
Other Fibonacci pattern for Compound & why you should be a bullUsing the Fourth of July low as a bottom (as opposed to the starting price), we see nice Fibonacci lines as well. Note that the chart has bounced several times at the $245.50 level, so expect to see tough resistance there on the way back up. If/when we eventually surpass our prior early peak, we could see prices up to $514.90 or even more optimistically $732.85. My reasons for being bullish in the long term are simply that I believe the Compound protocol itself is something that is only going to catch on to a wider audience as time goes on. I see a future where Venmo users switch to paying each other with smartphone apps that use stablecoins, and those stablecoins gain interest through the Compound protocol when they are sitting idle. Such apps already exist, but they have yet to be discovered by a broad mainstream audience. As of this writing, the iPhone app Dharma has 4.4 stars, but only 72 ratings. People love it, but most haven’t discovered it yet. The benefit of gaining interest with the Compound protocol has already been realized by crypto users, and there is a clear path to its realization by the mainstream public through smartphone apps. The recent change in Compound rules made it so that crypto users could not milk the system by “yield farming” with an exorbitant number of BAT tokens gaining interest at over 20%. The change in rules now means that stablecoin users have more to gain from using the protocol. This means two things that are very promising for the long-term future of Compound and for the COMP token itself as an investment: 1) Smartphone apps that utilize Compound and stablecoins will allow the mainstream public to pay each other with stablecoins, which unlike money in a Venmo account, gain interest, but unlike cryptocurrency, don’t come with confusing conversion rates and volatile price swings. 2) The demand for the COMP token will be driven by the incredible power that it gives token holders. A few days ago, BAT token in Compound was gaining >20% APR. Yet a single decision made by COMP token holders changed the rules such that BAT currently receives 0.10% APR. That demonstrates that COMP token holders collectively have an enormous amount of power. In theory, supporters of a specific altcoin project could try to buy up as much COMP as possible in hope of being able to affect such a decision in a way that favors their coin’s APR, with hopes that doing so would lead to increased purchase of their token. Thus, owning COMP tokens gives its owners incredible power over the Compound financial system and, as an ever-expanding pool of people use this system (for reasons stated above), the desire to own COMP will increase, driving up demand and thus driving up the price of COMP. “When you think about every bull market, there’s one common thread: an expanding universe of people who own it.” -Paul Tudor Jones “Be fearful when others are greedy and greedy when others are fearful.” -Warren Buffett
FTX:COMPUSDLong
by tarbh
1
Tether Dominating the StablecoinsTether's stablecoin USDT was introduced to improve the liquidity of the early Bitcoin market. The project has faced various legal controversies revolving around the legitimacy of its 1:1 USD backing. Despite these obstacles, the stablecoin has dominated one of the fastest growing sector's in crypto. Tether is by far the most popular and most liquid stablecoin and will see volatile moves for day trading. BREAKOUT INDICATOR SHOWING A LONG REVERSAL FOR DAY TRADING.
Long
by CeoCodes
2
RSR - Potential for growthJust one more short altcoin review. RSR - a cryptocurrency used to facilitate the stability of the Reserve token, i.e some kind of shares for RSV (stable coin). Doesn't look too stable lol, but max drawdown if just buy and hold is moderate - only 67%, far from the worst result among altcoins. And looking to the chart it can be noticed that it pumped with btc. So, if btc will pump soon (due to halvening mb) there're good chances RSR will do 1.5x-2x. Ofc it's not a good idea to buy it now at resistance. Better to decide when BTCUSD goes up. Hit the "LIKE" button or sign up with my ref links below to support, it would be much appreciated. Information is just for educational purposes, never financial advice. Always do your own research.
by Bitduke
1
Paxos Standard Bullish | Full Analysis Long-term Targets (400%+)About Paxos Standard Paxos Standard (PAX) is a stablecoin that allows users to exchange US dollars for Paxos Standard Tokens to 'transact at the speed of the internet'. It aims to meld the stability of the dollar with blockchain technology. Paxos, the company behind PAX, has a charter from the New York State Department of Financial Services, which allows it to offer regulated services in the cryptoasset space. -- Paxos Standard (PAXBTC) is now looking bullish and trading above EMA10, let's have a closer look at this chart. My attention was directed at Paxos two days ago, my eyes just stopped on the pair and I opened up the chart... Right away I started to think that this might go up so I took the time to find out why. Now, this is a stablecoin and Bitcoin is looking bearish, so this is likely to go up... The next day I see a huge green candle and here we are. Now, my suspicions became true and PAXBTC has multiple bullish signals in the making, let's take a look. First, when PAXBTC bottomed, BTCUSD peaked. This can tell us that these pairs are moving inverse to each other. Prices for PAXBTC conquered EMA10 and challenged EMA50. A clear reversal candlestick/signal was printed in the second week of Feb. So now we have Bitcoin aiming lower while Paxos Standard is aiming higher. All the support and resistance levels have been fully and clearly marked on the chart with Fibonacci proportions. The light blue area I call the "decision point". Above this level, we look bullish while below it is bearish. (Note: Prices can drop all the way down to 0.00009473 and we remain bullish if there is a bounce. If prices move and close below 0.00009473 then the above signals become invalid and the chart becomes bearish). With all these signals in place and a strong and beautiful chart, we can say that Paxos vs Bitcoin hit bottom and is getting ready to grow. Remember to always have a plan and if you decide to trade use a stop-loss. Namaste.
PLong
by AlanSantana
13