cryptos - 7 Cryptos to Watch as the Blockchain Holds Steady

7 Crypto to Watch as Blockchain Stays Consistent

Some of the best cryptocurrencies to watch have suffered massive losses this year, raising questions about their viability. Of course, many, if not most, ardent supporters of the blockchain market believe that valuations could rise again. However, it is important for cryptocurrency traders to maintain an objective view.

Basically, arguably the biggest challenge facing cryptocurrencies is the Federal Reserve. When the coronavirus pandemic initially upended the global economy, the Federal Reserve expanded its balance sheet. In other words, it bought back the bonds, which in turn provided Collective liquidity in the monetary system. Ironically, this is beneficial for cryptocurrencies due to inflationary pressures. Now, the central bank is seeking to shrink its balance sheet. Such actions will reduce the liquidity in the system, resulting in an increase purchasing power of the dollar in addition to raising the reference interest rates. Therefore, boring government bonds and even cash payments offer relatively low-risk projects with great returns. This dynamic contrasts sharply with cryptocurrencies that are constantly eroding.

Unfortunately, until this narrative reverses itself, it is hard to see how cryptocurrencies can soon recover from your malaise. Still, anything can happen. Therefore, it is important to consider all aspects while navigating the digital asset market.

Bitcoin (BTC-USD)

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The standard for all cryptocurrencies, Bitcoin (BTC-USD) gets a lot of attention because wherever BTC goes, so does the rest of the virtual currency pool. Therefore, the current conditions do not bring much encouragement to investors. On an annual basis, Bitcoin is down more than 59%. Since the beginning of July, BTC has been on par.

Basically, it’s hard to imagine that Bitcoin will remain fixed and range-bound indefinitely. Cryptography usually has some directional bias. Therefore, investors may need to think about how they deal with BTC and other major assets. Interestingly, some technical analysts have focused on the Bitcoin price action, noting that It could be months Before we see a great expansive movement in space. However, it is best for investors to exercise restraint regarding technical patterns and other “witchcraft” magic charts, regardless of the implications.

This does not mean that I do not believe in the value of technical analysis. However, with the Fed forcing a massive paradigm shift in risky asset classes, it is best to adopt a cautious approach.

Ethereum (ETH-USD)

Concept image of a virtual currency based on the Ethereum logo.

Source: Filippo Ronca Cavalcanti / Shutterstock.com

Ethereum (ETH-USD) recently underwent a change to its consensus protocol, switching from Proof of Work (PoW) to Proof of Stake (PoS). Interestingly, Cointelegraph.com Note that many traders expected a price increase in ETH as the underlying network became deflationary. In other words, there were fewer ETH units to chase after more commodities.

However, Ethereum remains a disappointing investment in 2022. Since the beginning of the year, ETH is down 64%. Where merge eventThe coin is down about 8% of its market value. Here, Cointelegraph.com provides an important lesson.

“While the mechanism introduced by the consolidation process and the current state of deflation is technically supposed to drive prices higher, the timing is simply not right. Prices for any cryptocurrency are Not only depends on the supply and burning mechanism Filtering also plays an important role.

Going forward, investors should be aware that risky assets such as cryptocurrencies rely on Greatest deception theory. If you don’t think someone else is going to buy any coins or tokens from you at a higher price, then this combo should be your guiding force, not some magical terminology in the blockchain.

Rope (USDT-USD)

Concept symbol for cryptocurrency Tether.

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Increasingly, I have expressed concerns about stablecoins like Rope (USDT-USD) because of the potential for catastrophic risks. While I don’t think the Tether will ever completely fall apart, We don’t really know Whether USDT has full paper backing. Therefore, in the current deflationary ecosystem in cryptocurrencies, it is best to be safe and not sorry.

In other words, consider converting at least some of your Tether into US dollars. In fact, the Fed is encouraging you to take this step.

According to data from Google Finance, USDT has lost about 0.03% of its value since the beginning of the year. It’s not much, I get it. But here’s the point. With the Federal Reserve reducing the size of its balance sheet, the aggressive action has been It can create a liquidity crisis. Differently, your fiat dollars are likely to be worth more than your crypto dollars. True, you can always earn interest in your stablecoins via Decentralized Finance (DeFi) platforms. However, tethers carry the risk of total collapse. On the other hand, your dollar probably isn’t going anywhere despite what your favorite YouTuber says.

XRP (XRP – US Dollar)

Concept symbol for XRP with heaps of tokens in the background.  XRP price predictions.

Source: Shutterstock

While cryptocurrencies always carry unexpected expectations of risks and rewards, XRP (XRP-USD) may be completely detached from all bindings. Whether you want to take a look at Fed policy, gold prices, or stock market valuations, none of these metrics are the final arbiter of XRP. Instead, the US Securities and Exchange Commission will likely have the last word.

If you have been following cryptocurrencies for the past few years, you will know that the The US Securities and Exchange Commission accused Ripple Labs (the founding entity of XRP) to get around the securities laws with XRP distributions. Of course, Ripple denies any wrongdoing, asserting that XRP is indeed a virtual currency. Depending on the outcome of this court case, XRP could rise or explode.

According to blockchain news source Beincrypto.com, The legal battle will soon come to an end. Frankly, I have some concerns. In the event that Ripple loses, development may be poor for cryptocurrencies. But even if Ripple emerges victorious, there’s a chance that, like Ethereum’s The Merge, the news won’t move XRP. Keep this in mind before you bet heavily on XRP.

Dogecoin (DOGE-USD)

Dogecoin Cryptocurrency

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Despite the high volatility and risk even for virtual currency standards, Dogecoin (DOGE-USD) represents an interesting angle between cryptocurrencies. Overall, the focus of DOGE is on building communities and making money through speculation. Although it may sound blunt, I don’t think there is anything wrong with that spirit. If anything, he warns people in advance of the greater fool theory.

Unlike many other blockchain projects, Dogecoin members are not interested in grandiose ambitions such as tackling world hunger. Nor does the virtue of the broader DOGE community refer to the promotion of micro-transactions and social justice in some distant lands. No, DOGE is focused on having fun and maybe doing some scratching while you’re at it. No more, no less.

This decentralization of the underlying drivers of other Dogecoin cryptocurrencies may allow them to decouple from leaders such as Bitcoin or Ethereum. That would be beneficial given that the Fed’s monetary policy dampens stimulus for both assets. However, it is a very risky hypothesis, so caution should be exercised.

Aave (AAVE-USD)

Aave Cryptocurrency Logo.. Price Predictions

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While most cryptocurrencies posted disappointing chart results in the following week, avi (AAVE-USD) moved against the trend, returning stakeholders 5.4%. True, it is not the most powerful performance at all. However, in the past three months, AAVE has gained nearly 3%. This small but significant upward movement indicates that AAVE may continue to trend against the prevailing downtrend of the sector.

Essentially, Aave brings an intriguing frame to the table. According to crypto wallet service Kraken, Aave is a DeFi platform. Specifically, it isdecentralized lending system which allows users to lend, borrow and earn interest on crypto assets, all without intermediaries.” Most importantly, “Aave users do not need to trust a specific institution or person to manage their funds. They just need to trust that their code will be executed as written.”

The high returns generated by DeFi platforms are sure to entice viewers. However, investors should also realize that US bonds, or even cash, offer opportunities to expand wealth with lower risk. Therefore, you should engage AAVE and all other cryptocurrencies with this framework in mind.

Polygon (MATIC-USD)

A phone, above a laptop keyboard, displays the Polygon logo.  Polygon Price Predictions

Source: sdx15 / Shutterstock.com

Another name among the cryptocurrencies that achieved a positive result in the following week, ribbed (matic dollarprofit of just under 2%. Under no other circumstances, such a return would not attract much attention. However, with most digital assets suffering massive double-digit losses so far this year, any hint of a continued rally is a case for further investigation.

According to Coinmarketcap.com, Polygon “is the first well-organized and easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular and flexible framework that supports the creation of multiple types of applications. “

Recently, Polygon has grabbed some headlines in the crypto space when Nu Holding (New York Stock Exchange:new) (Financial Institution of Warren Buffett Berkshire Hathaway (New York Stock Exchange:BRK-Bbacks) that it has chosen Polygon’s “Supernets” technology Blockchain and digital tokenknown as Nucoin.

While Warren Buffett’s mention is an interesting story, investors should exercise due diligence. Remember, the Ethereum merger was also supposed to be groundbreaking, but in the end it didn’t do much for ETH.

Posted by Josh Enomoto He held a long position in BTC, ETH, USDT, XRP and DOGE. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.

Josh Enomoto, former chief business analyst for Sony Electronics, has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has provided unique and critical insights into the investment markets, as well as many other industries including law, construction management, and healthcare .

#Crypto #Watch #Blockchain #Stays #Consistent

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