DeFi protocols have held up strongly in 2023 despite a crypto bear run due to a spike in unfavorable regulation for centralized counterparts.
PancakeSwap holds the highest Total Value Locked on the BNB Chain at a staggering $1.8B, accounting for 34.8% of the total.
DeFi is holding up well in 2023 despite the crypto market being in a bear cycle. The total value locked in defi protocols across all networks is around $41.3B, with BNB Chain holding number 3 on the chains with the highest TVL. Here are the top 10 DeFi protocols on the BNB Chain network by TVL.
The top 10 DeFi protocols by TVL on BNB Chain
The BNB Chain has been a home for defi protocols for long as developers want to stay away from Ethereum’s exorbitant gas fees and congestion that is usual during bull cycles. This network currently has around 3.19 billion dollars in TVL, which accounts for 7.27% of the total.
Here are the top 10 DeFi protocols by TVL on BNB Chain:
PancakeSwap DEX $1.8B
Venus lending protocol $1.28B
Radiant Capital lending protocol $191M
CoinWind yield harvesting protocol $171M
PinkSale Launchpad protocol $150M
BiSwap DEX $114M
Alpaca Finance Yield farming protocol $110M
Stargate Bridge $73M
UNCX Network launchpad protocol $65.8M
Tranchess Yield Farming protocol $55.5M
Keep watching Fintech Express for more updates on crypto markets and other fintech-related developments.
Binance has confirmed that it has become the first regulated crypto exchange in El Salvador.
The development pushes El Salvador’s Bitcoin vision further, as investors will have a chance to trade more cryptocurrencies.
Binance has become the first regulated crypto exchange in El Salvador after securing a license from the country’s regulators in an effort that seeks to propel the country to more crypto adoption. This development pushes El Salvador’s Bitcoin “love story” forwards.
Binance is now the first regulated crypto exchange in El Salvador
An August 8th report from Binance confirms that the exchange is now the first regulated crypto exchange in El Salvador after securing both Bitcoin Services Provider License (BSP) from the Central Reserve Bank and the first non-provisional Digital Assets Services Provider License from the National Commission of Digital Assets.
Binance has secured this win in a series of other wins from countries warming up to the crypto industry. However, it still needs help from other regulators, like in the UK and the US. The UK FCA recently shut down one of its subsidiaries; however, the company said that it did not expect its services to be impacted as it was not serving UK customers in the first place.
In the US, the company’s Binance.US platform is under investigation and a court battle with the US SEC that terms it as a securities broker and alleges it mixes its funds with the international exchange, which puts US citizens’ investments at risk. However, neither of the allegations has been proven though it is expected the case might end up in a settlement between the exchange and the US SEC.
El Salvador, Bitcoin love story continues….
El Salvador has had one of the most interesting love affairs with Bitcoin adoption. It approved using Bitcoin as a legal tender ditching the US dollar in 2021. It then invested heavily in the coin and issued handouts to its citizens to incentivize its adoption.
The nation’s citizens cried foul when the systems did not function optimally. President Nayib Bukele was also criticized as his Bitcoin investments were losing value in the face of the 2022 crypto bear market. The World Bank and the IMF even criticized the decision to use Bitcoin as a legal tender, saying it would cut loans and other fundings, citing risky monetary policies.
However, El Salvador did not get shaken; it has managed to release its volcano bitcoin bonds which have had a massive market impact and stabilized its usage of Bitcoin as legal tender. The country also profits from its Bitcoin holdings.
As such Bitcoins’ “hottest romantic affair yet” continues via the approval of the first regulated crypto exchange in El Salvador. Keep watching Fintech Express for updates on this and other Fintech-related developments.
According to US laws, the US SEC is bound to give a decision regarding the approval process of an ETF 45 days after the initial filing. This week will see the end of those days regarding a group of Bitcoin spot ETFs filed with the regulator.
Galaxy Digital CEO Mike Novogratz expects this week’s decision to be an announcement of an approval delay but to be approved in the next 4 to 6 months.
The clock is ticking for US SEC to make its stand publicly on Bitcoin Spot ETFs, as 45 days are since a series of Bitcoin Spot ETFs were filed with the regulator at the end of this week. Consequently, Galaxy Digital CEO Mike Novogratz thinks the most likely decision would be a delayed response, but markets might see an active Bitcoin Spot ETF in the next 4 to 6 months.
A step closer to the US SEC Bitcoin Spot ETF decision?
Bitcoin has taken international markets by storm prompting big asset managers like BlackRock to soften their hearts and warm up to the idea and innovation behind the coin. In June, BlackRock led a series of traditional finance institutions to file for Bitcoin spot ETFs.
This week will see 45 days that the US SEC has to respond to the filings end. As such, it is expected to issue an official statement regarding the filings. However, as seen before, the regulator always takes its time before making such decisions, given there is a large number of filings at the moment.
Both Ethereum and Bitcoin spot ETF filings from TradFi institutions now have a count of over 20. As such, the US SEC would likely choose to delay the decision to approve any of them at this point.
Consecutive approval in 2024?
ARK Invest’s CEO Cathie Woods has called on the US SEC to approve all Bitcoin spot ETFs consecutively to avoid giving any company a market advantage over the other, given that most TradFi competitors have filed for similar assets. Her remarks called on the US SEC to ensure that no companies get a competitive advantage to make the markets fairer, as approving these assets may open the door to further mainstream adoption.
While this is possible, it still needs more time to become a reality. Galaxy Digital CEO thinks it could take 4 to 6 months for the regulator to approve these assets despite its 45 days to respond per US securities law ending this week. That pushes the possible approval dates to 2024.
According to "contacts" from inside BlackRock and Invesco spot Bitcoin ETF approval a matter of "when, not if" likely in "four to six months" — Galaxy CEO Mike Novogratz on earnings call this morning pic.twitter.com/TIhHC7xnHI
However, none of the above possibilities are guaranteed as no insider or official information from the regulator has been made public yet. Keep watching Fintech Express for updates on this story as soon as it happens.
Disney has reportedly created a task force to study how AI can be used to cut costs in the studio.
The development comes when Writers and Actors are on strike due to payment concerns and AI threats to their job security.
House of Mouse CEO Bob Iger has reportedly given the green light to create an AI task force to explore how AI can be used to cut costs in the company. The development comes at a time when the AI industry is blooming. Other companies like Netflix have also previously advertised for high-interest AI position(s).
Bob Iger brings together an AI task force as the WGA strike continues
A Reuters report indicates that a popular entertainment studio, Disney Studios, has created an Artificial Intelligence (AI) Taskforce to explore the best ways to employ the technology in edging out the competition, improving products, and cutting operational costs.
The report indicates that three insiders have vouched for the information, with one saying that competition is a key point in the recent decision by Disney that risks adding fuel to the continuing writers’ and actors’ strike.
House of Mouse has 11 job openings that seek to add AI and machine learning knowledgeable persons to its team and serve in different company branches spanning Walt Disney Studios, engineering, and theme parks.
Other studios like Netflix have also been advertising for highly paid AI-related positions, a key pressure point in the ongoing Hollywood strike involving anyone represented by the Screen Actors Guild, an American Federation of Television and Radio Artists. This strike seeks to add more revenue to the participants from the studios and ban the use of AI to safeguard their jobs; however, no real settlement has been reached yet.
Keep watching Fintech Express for updates on technology and other Fintech-related developments.
The Monetary Authority of Singapore released a report indicting a plan to commit S$150 M to explore and support emerging FinTech solutions like Web3.
This report comes at a time when the MAS has been increasing its efforts in regulating and boosting the blockchain industry in the region and via international cooperation with authorities like UK FCA.
On August 7, 2023, the Monetary Authority of Singapore released a report announcing that it committed 150 million Singaporean dollars to explore emerging Financial Technology innovations. This plan progresses the efforts by the regulator to foster the growth of the blockchain industry in the region.
Monetary Authority of Singapore to explore Web 3 and other Fintech innovations
The renewed Financial Sector Technology and Innovation Scheme (FSTI 3.0) seeks to accelerate and strengthen the country’s innovative culture by supporting cutting-edge projects.
An excerpt from the report reads:
FSTI 3.0 seeks to accelerate and strengthen innovation by supporting projects that involve cutting-edge technologies or with a regional nexus while doubling down on the Monetary Authority of Singapore’s commitment to promoting a vibrant technology ecosystem for the financial sector.
According to the report, the new FSTI 3.0 will include 3 new tracks, namely: “The enhanced Centre of Excellence track, formerly known as Labs Track, Innovation Acceleration Track, and Environmental and Social Governance (ESG) FinTech track.” it will also continue to support the advanced capability development in key areas like Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech).
The blog announcement said that the Monetary Authority of Singapore would mainly “focus on promoting AIDA adoption in smaller financial firms” and support the need of “less digitally mature firms” seeking to acquire RegTech solutions.
It also noted that applicants “will also be required to devote resources to talent developments” to strengthen the Singaporean FinTech talent pool. Regarding the new turn of events, Mr. Ravi Menon, the Managing Director at the Monetary Authority of Singapore, explained that it has always been in the interest of MAS to support the FinTech industry, and it looks forward to continuing its vision via the FSTI 3.0.
“Since 2015, the Financial Sector Development Fund (FSDF) has awarded $340 million as part of the FSTI program to drive the adoption of technology and innovation in the financial sector.
Transformative technology projects that MAS has piloted with the industry include SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, green and sustainable finance through Project Greenprint, as well as large payment initiatives such as the cross-border payment linkage with Thailand.
Notably, FSTI 1.0 and 2.0 helped strengthen the digital capabilities of financial institutions, which served them and their customers through the COVID pandemic. With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation.” He said.
Keep watching Fintech Express for more Fintech-related news and developments.
Coinshares has released a report showing that investors are profiting from digital assets markets, with Bitcoin being the main focus.
The report shows that over the past seven days, BTC had an outflow of $111M, while digital assets products saw outflows topping $107M.
Coinshares have released a report showing that investors spent the past week taking profits from their digital assets as Bitcoin recorded a $111M sell-off and Digita asset products followed closely with a combined sell-off of around $107M.
Coinshares releases report showing taking profit sentiment from digital assets markets over the past week
The report by Coinshares shows that the summer YoY trading volumes are down 36% on average, with on-exchange YTD average trading volumes plummeting by 62%.
The regional outflows per Coinshare’s report were focused on two ETP providers, Germany and Canada, which saw outflows of $71M and $29M, respectively. In the same period, Bitcoin led in sell-offs, recording total outflows of $111M. This outflow is the highest ever recorded since March.
On the other hand, Ethereum recorded an outflow of $6M through other improving altcoins throughout the study. The report indicates that the highest inflows/ buys were recorded on Solana, which received $9.5 M, its largest weekly inflow since March when the US SEC began wide crypto regulatory crackdowns.
Coingecko has introduced a tracking list of the top alleged coins by the US SEC to be securities.
The list spans 48 coins and is expected to grow as the authorities keep cracking down on the crypto space.
The new index by Coingecko tracks the biggest crypto assets that the US SEC sees as securities despite there not being a binding crypto regulatory framework in the country. Binance’s CoinMarketCap is also tracking a similar list.
CMC and Coingecko shed light on More coins as SEC sharpens its radar
Coingecko has Joined CoinMarketCap to introduce an index that tracks the crypto assets the US SEC has labeled ‘securities.’ Starting on Monday, Coingecko will be showing the performance of the coins and adding to the list in case the US SEC decides to declare more assets as securities.
The US SEC has been on a hunt since 2020, intensifying its efforts and asking for bigger budgets from the US government to ‘flush’ out bad actors from the US markets. In the process, it labeled assets like XRP, BNB, Cardano, and Solana as securities.
As such, it expects the issuers of these coins to follow securities laws when trading them in the US. It also expects investors and exchanges that trade these assets to be vigilant and do as the law requires. As a result, these coins have been experiencing shaky markets every once the regulator uses them in a major crypto lawsuit.
Due to the price fluctuation, on-chain data platforms CoinMarketCap and Coingecko have decided to add the coins in separate lists from the others so investors can view and use the data for better investment strategies.
Keep watching Fintech Express for updates on this and other fintech-related developments.
The cryptocurrency market has been a subject of fascination and scrutiny in recent years, with its potential to revolutionize the financial landscape. As the world shifts towards digitalization and decentralized technologies, cryptocurrencies have emerged as a legitimate asset class attracting a diverse range of investors.
For savvy investors and financial enthusiasts, recognizing the signs that indicate the onset of a bull market in cryptocurrencies is paramount. In this article, we will delve into the key indicators that suggest the crypto market is entering a bullish phase, offering valuable insights to potential investors seeking to capitalize on this transformative opportunity.
How to Spot Signs That the Crypto Market is Embracing a Bullish Resurgence
1. Exponential Price Surge:
One of the most prominent hallmarks of a bull market in the cryptocurrency space is a significant and sustained price surge. During these phases, major cryptocurrencies like Bitcoin and Ethereum experience remarkable price appreciation, often reaching new all-time highs. Such upward movements are driven by a surge in demand from both retail and institutional investors seeking to benefit from the potential growth.
2. Institutional Involvement:
The entry of institutional players into the crypto market is a defining characteristic of a bull run. Established financial institutions, hedge funds, and corporations recognize the allure of cryptocurrencies as a store of value and a hedge against inflation. Their increasing involvement brings credibility and liquidity to the market, amplifying the bullish momentum.
3. Rising Trading Volumes:
A crucial indicator of a bull market is a noticeable surge in trading volumes across cryptocurrency exchanges. As more investors participate in the market, trading volumes escalate, signaling growing interest and confidence in the asset class. High liquidity and increased trading activity often perpetuate further price gains.
4. Favorable Regulatory Developments:
Positive regulatory developments can act as a catalyst for a bull market in the crypto space. Clear and supportive regulatory frameworks implemented by governments and financial authorities boost investor confidence and attract institutional capital. Clarity on taxation, security measures, and anti-money laundering measures encourage responsible investment, fueling the market’s upward trajectory.
5. Improved Market Sentiment:
Market sentiment plays a pivotal role in the crypto market’s movements. A bullish resurgence is often accompanied by a shift towards positive sentiment as investors perceive cryptocurrencies as promising assets. Optimistic sentiment is further reinforced by media coverage, prominent industry figures expressing confidence in the market, and positive social media engagement.
6. Innovative Technological Advancements:
Technological advancements within the crypto space are critical catalysts for a bull market. Developments such as improved scalability, enhanced security protocols, and interoperability solutions captivate investor interest. As blockchain projects push the boundaries of innovation, enthusiasm for cryptocurrencies rises, leading to increased demand and higher valuations.
7. Growing Adoption and Real-World Use Cases:
Bull markets coincide with increased adoption of cryptocurrencies in real-world use cases. From payment gateways to decentralized finance (DeFi) platforms, cryptocurrencies find practical utility beyond speculative investments. Adoption by mainstream merchants and corporations further validates the potential of cryptocurrencies, attracting more investors to the market.
8. Altcoins Outperformance:
During a bull market, not only do major cryptocurrencies thrive, but altcoins also experience a surge in value. Altcoins are alternative cryptocurrencies to Bitcoin and Ethereum, representing a diverse range of projects and tokens. Investors diversify their portfolios, seeking potentially higher returns in lesser-known projects during the altcoin season.
Conclusion:
As the cryptocurrency market gains traction and becomes increasingly integrated into the global financial landscape, recognizing the signs of a bull market is of paramount importance. Exponential price surges, institutional involvement, rising trading volumes, favorable regulatory developments, improved market sentiment, technological advancements, growing adoption, and altcoin outperformance are all key indicators to monitor.
For investors seeking to capitalize on this transformative opportunity, a cautious and informed approach is essential. The crypto market remains highly volatile and unpredictable, necessitating due diligence and risk management. As the crypto market embraces a bullish resurgence, those who navigate these waters with prudence and insight stand to reap substantial rewards in this new era of financial innovation.
Financial markets, including stocks, commodities, and cryptocurrencies, are subject to cyclical patterns that often manifest as either bull or bear markets. These cycles play a crucial role in shaping investor sentiment, driving asset prices, and influencing economic conditions. Understanding the distinctions between bull and bear market cycles is essential for investors seeking to navigate the complex world of finance. In this article, we will delve into the characteristics, causes, and implications of both bull and bear markets.
1. Bull Market Cycle:
A bull market is characterized by a sustained upward trend in asset prices, typically lasting for an extended period. During these phases, investor confidence is high, leading to increased buying activity. Key features of a bull market include:
a. Rising Asset Prices: Bull markets are marked by consistent and substantial price appreciation across various asset classes. Investors tend to be optimistic about future prospects, leading to a demand-driven increase in asset prices.
b. Positive Market Sentiment: Positive news, strong corporate earnings, and favorable economic conditions contribute to a prevailing sense of optimism among investors. Positive sentiment reinforces buying behavior, creating a self-perpetuating cycle.
c. High Trading Volume: Bull markets are characterized by high trading volumes as investors actively participate in buying and selling assets. High liquidity and trading activity facilitate smoother transactions.
d. Broad Investor Participation: Bull markets tend to attract a broad spectrum of investors, including retail investors, institutional players, and speculators. The allure of potential profits motivates diverse market participants.
e. Economic Expansion: Bull markets are often associated with periods of economic growth and prosperity. As businesses thrive, earnings increase, driving stock prices higher.
2. Bear Market Cycle:
In contrast, a bear market signifies a sustained downward trend in asset prices, reflecting a pessimistic outlook and waning investor confidence. Key features of a bear market include:
a. Falling Asset Prices: Bear markets are characterized by declining prices across various asset classes. Investors become more risk-averse, leading to increased selling pressure.
b. Negative Market Sentiment: Dismal economic news, poor corporate earnings, or unfavorable geopolitical events contribute to a prevailing sense of pessimism. Negative sentiment fuels selling activity, exacerbating the downward spiral.
c. Low Trading Volume: During bear markets, trading volumes typically decrease as investors become hesitant to enter the market. Reduced liquidity can lead to increased bid-ask spreads and heightened volatility.
d. Limited Investor Participation: Bear markets often deter many retail investors and speculators, as the fear of further losses looms large. Institutional investors may also reduce their exposure to riskier assets.
e. Economic Contraction: Bear markets are associated with economic downturns and recessions. As businesses struggle, earnings decline, leading to reduced stock valuations.
Causes of Bull and Bear Markets:
Bull and bear markets are driven by a combination of fundamental, psychological, and macroeconomic factors:
a. Fundamental Factors:Economic indicators, corporate earnings, interest rates, and geopolitical developments influence market sentiment and asset prices. Positive fundamental factors contribute to bull markets, while negative factors contribute to bear markets.
b. Investor Sentiment: Market participants’ perceptions, emotions, and behavior significantly impact bull and bear market cycles. Greed and fear play a substantial role in driving these cycles.
c. Central Bank Policies: Monetary policies, including interest rate adjustments and quantitative easing measures, implemented by central banks can influence market conditions and fuel bull or bear market tendencies.
d. Geopolitical Events: Political uncertainties, trade disputes, and geopolitical tensions can trigger bearish sentiments, while favorable resolutions or positive developments can lead to bullish reversals.
Implications for Investors:
Understanding bull and bear market cycles is vital for investors in formulating appropriate strategies:
a. Bull Markets: During bull markets, investors may consider adopting a growth-oriented approach, focusing on high-quality assets with strong growth potential. However, it is essential to maintain a cautious outlook and not overlook the potential for corrections or reversals.
b. Bear Markets: In bear markets, investors may prioritize capital preservation and risk management. Defensive strategies, such as diversification, hedging, and seeking safe-haven assets, can help mitigate losses during downturns.
Conclusion:
Bull and bear market cycles are the yin and yang of financial markets, representing periods of optimism and pessimism, respectively. These cyclical patterns are influenced by a complex interplay of economic, psychological, and geopolitical factors. As investors, understanding the characteristics and causes of these cycles can aid in making well-informed decisions, effectively managing risk, and optimizing investment outcomes. By maintaining a disciplined and adaptive approach, investors can navigate the volatility of bull and bear markets, seizing opportunities while safeguarding their financial well-being.
A sideways crypto market cycle, also known as a consolidation phase or a range-bound market, is a period when prices exhibit relatively little change, moving horizontally within a defined range. In the world of cryptocurrencies, volatility is a constant companion. Prices can surge to dizzying heights during bull markets and plummet to unexpected lows in bear markets. However, not all market conditions are characterized by dramatic price movements. Understanding the dynamics of sideways market cycles is crucial for investors looking to make informed decisions during these periods of apparent stagnation.
1. Defining a Sideways Crypto Market Cycle:
A sideways market cycle occurs when the price of a cryptocurrency remains relatively stable, with no clear upward or downward trend. During this phase, the market experiences low volatility, and prices fluctuate within a defined range, forming what traders refer to as a “trading range” or “price consolidation.”
2. Characteristics of a Sideways Market:
Several key characteristics distinguish a sideways market cycle:
a. Price Range: In a sideways market, the price of a cryptocurrency tends to move back and forth between a defined upper resistance level and a lower support level. Traders can identify these levels by analyzing historical price data and identifying areas where buying or selling pressure has been particularly strong.
b. Reduced Volatility: Sideways markets are marked by subdued price fluctuations compared to the more pronounced swings seen during bull or bear markets. This reduced volatility can make trading more challenging for some market participants.
c. Decreased Trading Volume: During sideways market cycles, trading volume often declines as investors adopt a wait-and-see approach, anticipating a clear trend before committing to significant buy or sell positions.
d. Extended Duration: Sideways market cycles can last for varying durations, ranging from a few days to several weeks or even months, depending on market conditions and the overall sentiment.
3. Causes of Sideways Market Cycles:
Sideways market cycles can result from various factors:
a. Market Indecision: When investors are uncertain about the future direction of the market, they may refrain from making significant moves, leading to price consolidation.
b. Technical Indicators: Certain technical indicators, such as Bollinger Bands or Moving Averages, can create support and resistance levels that contribute to the formation of a sideways market.
c. Market Manipulation: In some cases, market manipulation or attempts to maintain price stability can lead to periods of sideways movement.
4. Implications for Investors:
Investors should consider the following implications during a sideways market cycle:
a. Patience is Key: Sideways markets require patience, as it may take time for a clear trend to emerge. Traders and investors should avoid making impulsive decisions based on short-term price movements.
b. Trading Range Strategies: Traders can take advantage of sideways markets by employing range-bound trading strategies, buying at support levels and selling at resistance levels.
c. Accumulation Opportunities: Sideways markets can present opportunities for long-term investors to accumulate positions at relatively stable prices before a potential price breakout.
d. Risk Management: Although sideways markets may seem less volatile, risk management remains essential to protect against unexpected market shifts.
5. End of Sideways Cycle:
A sideways market cycle typically comes to an end when the price breaks out of the established trading range. A breakout above the resistance level signals a potential bullish trend, while a breakdown below the support level indicates a potential bearish trend.
Conclusion:
The sideways crypto market cycle represents a period of relative price stability and reduced volatility. While it may seem uneventful, understanding this phase is critical for investors seeking to optimize their strategies and navigate the crypto market effectively. Patience, range-bound trading strategies, and vigilant risk management are essential during these periods.
Moreover, being prepared for potential price breakouts can help investors capitalize on emerging trends once the consolidation phase comes to an end. By embracing a well-informed approach, investors can harness the opportunities presented by the sideways market cycle while maintaining a long-term perspective on their crypto investments.
