Crptocurrency
Friend.tech Daily Transactions Have Plunged To New Lows

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- Friend.tech’s on-chain metrics sink to new lows.
- The peak-to-trough fall in daily transactions is down significantly.
- Web2 social platforms continue to boom.
As the digital landscape evolves from Web2 to Web3, a groundbreaking model known as Social Finance (SoFi) is gaining prominence. Touted as a potential successor to today’s ad-driven social platforms, SoFi introduces a fresh paradigm for online community building.
Leading the SoFi charge is friend.tech, which enables influencers to monetize their followers. However, recent on-chain metrics, specifically the daily transaction count, reveal that friend.tech’s initial surge of excitement and activity has now dwindled to a crawl
Friend.tech Metrics Falter
According to data tracked by Dune Analytics, friend.tech’s daily transactions have plunged to just 5,160 as of November 14th, representing a new low for the platform. This is in stark contrast to friend.tech’s peak on September 13, when the daily transaction count posted an all-time high of 539,810, equating to a peak-to-trough drawdown of 99%.
After its launch in early August, friend.tech experienced exponential growth in daily transactions, prompting many to dub it the next big thing. However, the initial hype waned by August 21. Yet, a resurgence of interest ensued, reaching its peak around September 13. Since that peak, the daily transaction count has failed to recapture the initial frenzy, showing a steeper decline moving into November.
Read Also: Microsoft, Tencent And Other Tech Giants Join Decentralized Infura Network
Other key metrics also show waning activity in line with expectations around dwindling daily transaction count. Daily protocol fees have sunk to 17.7 ETH, representing a 97% decrease from the September 13 top of 578.8 ETH.
Similarly, the daily count of new users has dwindled to a mere 170 as of November 14, according to DeFiLlama. In contrast, during the peak of new user sign-ups on October 15, the SoFi platform attracted an impressive 68,640 new users.
Protocol Improvements
While the initial hype and on-chain activity may have subsided, friend.tech has been diligently working on several enhancements to fortify the protocol and enhance the user experience. Just last month, the team introduced two-factor authentication to combat the rising incidence of SIM-swap attacks targeting users. Additionally, they rolled out customizable bios to infuse user profiles with more personality and depth.
Customizable bios are here. Show us yours in the replies pic.twitter.com/h0xQgKw297
— friend.tech (@friendtech) October 13, 2023
On the technical front, friend.tech recently initiated a bug bounty program, encouraging the disclosure of vulnerabilities to bolster community safety. Furthermore, the team has also fine-tuned data loading speeds for a smoother user experience.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Binance Lists ChainGPT (CGPT): Unlocking a New Era for AI-Powered Blockchain Solutions

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$88K Critical for Bitcoin Momentum

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Bitcoin’s price trajectory is at a pivotal juncture, with $88,000 emerging as a key level for sustaining market momentum, according to on-chain analytics firm Glassnode. Using the UTXO Realized Price Distribution (URPD) metric, Glassnode emphasized the significance of the Short-Term Holder (STH) cost basis, noting minimal trading volume below this threshold.
The $88,000 level serves as a critical psychological and technical support, and a decisive loss could pave the way for further downside. This article explores the importance of this metric and what it could mean for Bitcoin’s future price movement.
Understanding Bitcoin’s STH Cost Basis
The Short-Term Holder (STH) cost basis represents the average price at which recently acquired Bitcoin has been purchased. This metric is essential for analyzing:
- Price Momentum: Indicates the health of recent buyer confidence.
- Support Levels: Highlights crucial price points where short-term investors are likely to defend positions.
At $88,000, the STH cost basis underscores its significance as a level where short-term traders might capitulate if breached, potentially triggering a larger sell-off.
The Role of the URPD Metric
Glassnode’s UTXO Realized Price Distribution (URPD) metric maps the distribution of Bitcoin trading volumes across different price levels. Key insights from the current analysis include:
1. Minimal Volume Below $88K
- Glassnode’s data reveals limited trading activity beneath $88,000, suggesting weak historical support in this range.
2. Vulnerability to Downside Pressure
- A breakdown below $88,000 could lead to accelerated selling, as short-term holders exit positions to minimize losses.
Why $88K Is Critical for Bitcoin
1. Psychological Benchmark
- Round numbers like $88,000 hold psychological significance for traders, influencing decision-making and market sentiment.
2. Technical Relevance
- The STH cost basis aligns closely with support and resistance levels derived from historical price action, making it a reliable marker.
3. Momentum Indicator
- Holding above $88,000 would demonstrate resilience, while a breach could signal a shift in momentum toward bearish conditions.
Potential Scenarios Based on $88K Level
1. Holding Above $88K
- Sustaining this level could reaffirm Bitcoin’s bullish momentum, encouraging accumulation by both short-term and long-term holders.
- Positive macroeconomic news or institutional support could bolster price stability.
2. Breaching $88K
- A decisive loss of $88,000 might lead to panic selling, increasing volatility and pushing Bitcoin toward lower support levels.
- Traders may target $85,000 or lower as the next critical support zone.
Market Sentiment and Influences
1. Institutional Activity
- Institutional investors closely monitor key levels like $88,000, adjusting strategies based on market strength or weakness.
2. Broader Economic Factors
- Macroeconomic elements, including interest rate policies and inflation data, continue to impact risk assets like Bitcoin.
3. Short-Term Trader Behavior
- As the primary holders at this cost basis, short-term traders play a pivotal role in determining Bitcoin’s near-term price movements.
How Traders Can Respond
1. Monitor Key Levels
- Keep a close watch on Bitcoin’s behavior around $88,000, as this level is crucial for gauging momentum.
2. Set Stop Losses and Alerts
- Traders should establish clear stop-loss levels to minimize risk in case of a breakdown.
3. Consider Accumulation Opportunities
- If Bitcoin holds above $88,000, it could present a buying opportunity for those confident in a bullish continuation.
FAQs
1. Why is $88,000 significant for Bitcoin?
The $88,000 level represents the Short-Term Holder (STH) cost basis, a critical indicator of price momentum and market confidence.
2. What happens if Bitcoin drops below $88,000?
A loss of this level could trigger selling pressure, as short-term holders exit positions, potentially leading to further downside.
3. What is the URPD metric?
The UTXO Realized Price Distribution (URPD) metric tracks Bitcoin’s trading volume at different price levels, highlighting key areas of support and resistance.
4. How does $88K influence market sentiment?
Maintaining this level reinforces confidence in the market’s bullish momentum, while losing it could shift sentiment toward bearish expectations.
5. What should traders do at this level?
Traders should monitor Bitcoin’s performance around $88,000, set stop-loss levels, and consider accumulation if the level holds.
Conclusion
The $88,000 level is more than just a price point; it’s a pivotal marker for Bitcoin’s momentum and market sentiment. Glassnode’s analysis underscores its significance as the Short-Term Holder cost basis, with the potential to dictate Bitcoin’s next move.
Whether Bitcoin sustains this critical level or breaches it will determine its trajectory in the coming weeks. For traders and investors, staying vigilant and adapting strategies to this key metric will be essential in navigating Bitcoin’s dynamic market.
To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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Mantra Partners with UAE Real Estate Giant Damac to Tokenize $1B in Assets

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