Welcome to another Crypto Weekly Digest brought to you by VirtualBacon.
This week, we're spotlighting three cryptocurrencies that have caught my eye. It's not just about their price, but the exciting updates and developments behind them. We'll dive into why these are my top picks and what's been happening with each project. As always, wrapping up, we'll provide a sharp overview of the current market sentiment, highlighting both the standout and underperforming coins of the week and a concise analysis of key cryptocurrencies and the forces shaping their trajectories.
The first coin that I will be buying is MakerDAO. Known for its pivotal role in the DeFi space, is the force behind the DAI stablecoin. With its rich history and established reputation, MakerDAO is now gearing up for some transformative changes, as outlined in their "Endgame" roadmap.
The first phase, set to kick off in September, aims to unify the Maker and DAI brands. Given the current brand disparity, many are unaware that DAI and the MKR token fall under the same umbrella. This rebranding seeks to address this gap. Moreover, the MKR token will undergo a redenomination, splitting at a ratio of 12,000 to 1, making the new token's unit price more appealing to retail investors.
Phase 2: Sub-DAI Tokens Launch
Six new projects will be introduced under the MakerDAO brand, with tokens available exclusively through farming MKR or DAI. The first of these, Spark Protocol, is already live and boasts a TVL of $200 million. With the official farming period on the horizon, early adopters can benefit from this phase.
While the immediate focus is on the rebranding and sub-DAI token launch, MakerDAO's roadmap also includes Phase 3 (Governance AI tools), Phase 4 (Governance Participation Incentives), and Phase 5, which will see the launch of a brand-new blockchain. The latter is particularly ambitious, with plans to potentially fork Solana's codebase.
MakerDAO's price chart indicates a promising trajectory. After a year-long consolidation, the price has broken the $1,000 resistance level, hinting at a bullish trend. With a clear stop-loss set around $850, the current price offers a strategic entry point. Short-term targets hover between $1,700 and $2,000, with plans to hold until at least early 2024, aligning with the roadmap's milestones.
The second coin I will be keeping an eye on is DYDX. A leading decentralized exchange, provides features similar to traditional centralized exchanges., including order books, stop-loss, limit orders, and even leveraged trading. While its advanced UI, deep liquidity, and extensive trading pairs set it apart, its tokenomics have historically been a point of contention. However, with the impending launch of DYDXv4, the game is set to change.
The DYDXv4 platform promises a fully decentralized upgrade, leveraging Cosmos technology. The most significant shift comes in the form of the DYDX token's role. Post-launch, the DYDX token will transition into the native token of the DYDX chain. This means stakers will not only help secure the network but also partake in a substantial share of the exchange's trading revenue. Initial indications suggest a potential revenue share as high as 90%, dwarfing other real-yield protocols in the DeFi space.
DYDX's impressive trading volume, surpassing $300 billion in the last year, further underscores the potential revenue. With a calculated real yield of around 47% annually, the DYDX token presents a compelling case for investors.
However, it's essential to note the upcoming token unlock in December 2023, which could introduce a 40% increase in circulating supply. This strategic DYDXv4 upgrade seems timed to coincide with this unlock, potentially driving hype and price before the unlock event.
DYDX's price chart paints an optimistic picture, having consolidated for over a year. For a rally to commence, the price needs to breach the $2.60 resistance, a point that has acted as a resistance level in the three past rallies. With a stop-loss set at the recent low of $1.50, the upward trajectory looks promising. Profit-taking is advised between the $4.40 and $7.00 marks, given the historical resistance in this range. As always, it's crucial to keep an eye on the DYDXv4 launch and consider profit-taking strategies around late November to early December, anticipating the token unlock event.
Astar Network $ASTR
The third coin that I wll be heavily buying is Astar Network. A leading layer 1 blockchain, is making waves in Japan's crypto scene. With its roots as a top Polkadot paratrain project, Astar has evolved to become Japan's most favored smart contract platform. Let's delve into the reasons behind its rising prominence and what the charts suggest for its future.
Japan is on the brink of a crypto revolution. In July, Prime Minister Fumio Kishida emphasized the nation's commitment to Web 3.0, viewing it as the next phase of capitalism.
Astar Network, with its deep ties to significant Japanese entities, is poised to be at the forefront of this movement. The largest railway network, JR, has already embraced Astar for their NFT initiatives.
🚊 The largest rail network in Japan, J.R. Kyushu, in partnering with P.R.O. Co. Ltd is a game-changer for NFT adoption in Japan! With 330 Million people riding the railway annually, the project can potentially reach massive adoption! 🌟
Furthermore, collaborations with giants like Sony and Toyota, and a significant partnership with NTT Digital, Japan's government-backed telecom behemoth, solidify Astar's dominant position in the region.
Astar has recently unveiled its 2.0 upgrade, known as "Supernova", which was launched a few days ago. This upgrade promises enhanced tokenomics, including a token burn, and is tailored to boost enterprise adoption in Japan. CEO Sota believes that this upgrade will further solidify Astar's role in Japan's official Web 3.0 endeavors.
💥A Supernova has 5 stages...
Stage 1: Just before the explosion, we become a red super-giant! ⭐
At the fifth & final stage, we will reveal the biggest announcement in the history of @AstarNetwork 👀
While the Supernova upgrade in September is a significant milestone, the broader narrative of Japan's Web 3.0 push suggests a bullish outlook for Astar. The launch of Binance Japan and the government's commitment to Web 3.0 innovation indicate that the momentum is just beginning. Investors might consider holding Astar until year-end, capitalizing on the anticipated Japanese crypto narrative that's yet to fully unfold in the global arena.
Astar's trading volume witnessed a surge around mid-July, coinciding with Japan's intensified crypto push. The price chart paints a promising picture: since the Binance spot crash in June, Astar has been on an upward trajectory, consistently making higher highs and lows. The bear market resistance at 0.05 has been tested and surpassed, making it an ideal support level. As the price approaches this 0.05 mark again, it presents a lucrative entry point. With a stop loss set around 0.04 and a target of 0.1, the risk-to-reward ratio is appealing.
Best Performing Coins of The Week
Worst Performing Coins of The Week
The first coin we’ll look at this week is Toncoin, a coin that has experienced an impressing 17.40% gain this
This significant rise in Toncoin's valuation is driven by the recent announcement from Telegram, the popular messaging app. Telegram has revealed plans to integrate the TON wallet into its platform, potentially exposing its vast 800 million user base to the TON network. This move positions Telegram at the forefront of the Web3 infrastructure, marking a pivotal moment in the crypto space.
Amid Telegram's historical ties with blockchain and its unwavering commitment to TON, the crypto community is excited by the developments. With the TON Foundation's strategic decisions and Toncoin's rise to the 11th largest cryptocurrency at $2.13, the broader community watches with a mix of anticipation and caution.
The second coin we will look at is VeChain, a coin that saw a 11.55% gain over the past week.
This uptick in VET's value is attributed to the recent announcement of its listing on the renowned crypto exchange, Coinbase. Coinbase's endorsement didn't stop at VET; the exchange also confirmed the listing of VeThor (VTHO) on the VeChain network. Trading for both tokens is set to commence, provided liquidity conditions are met.
VeChain's community is optimistic about the enhanced accessibility and exposure this listing promises. With VeChain hinting at more developments in collaboration with Coinbase, the broader community watches with a mix of excitement and curiosity.
The final coin we will look at is IOTA, a coin that has experienced a huge 10.52% drop this week following an important announcement.
The IOTA team unveiled plans for the Stardust Upgrade and IOTA Tokenomics, aiming to optimize the token's benefits. However, the substantial increase in supply has left investors perplexed. As per the announcement, a notable revelation was the introduction of an Ecosystem Fund, financed through a temporary token inflation over four years, pushing the total supply to 4.6 billion IOTA tokens.
Historically, IOTA was a standout performer during the 2017 bull market but has since lost ground to rivals. The recent strategic moves aim to rejuvenate its market position, but the immediate aftermath saw a dip in its price. This Ecosystem Fund is designed to decentralize IOTA's governance further and bolster its growth.
This week, we took a close look at the three cryptocurrencies I'm keen on for the next few weeks. We also checked out the top performers and those that didn't do as well, trying to understand what's driving their prices. As we move closer to the end of the year, it's always good to stay informed and make smart choices in the ever-changing world of crypto.
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