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CLS Global: Enabling DeFi and DePIN Adoption in the Web2 Ecosystem

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Over the years, blockchain technology has evolved from simply facilitating peer-to-peer money transfer to sophisticated functions such as decentralized finance (DeFi) and decentralized physical infrastructure network (DePIN).

DeFi comprises products that decentralize the traditional financial system, while DePIN enables the decentralization of physical infrastructure and other real-world products, blending the Web2 and Web3 ecosystems. Together, both innovations aim to bring everyone more organized structures and products.

This article delves into the intricacies of DeFi and DePIN for Web2 companies. It highlights the pivotal role CLS Global, a renowned crypto trading services provider, plays in supporting these initiatives.

DeFi and DePin: Drivers of Bringing More Organized Structures and Products

DeFi is an umbrella term that blends “decentralization” and “finance.” The idea behind the concept is to integrate services offered in the traditional financial sector into the blockchain ecosystem. Imagine applying for a loan on the blockchain or depositing your crypto holdings into a pool of funds for passive income. That’s precisely what DeFi brings to the table.

Banks or other centralized financial institutions operate as intermediaries between investors and the desired financial product in the traditional financial system. Underpinned by blockchain technology, DeFi projects change the narrative by allowing users to execute transactions by interacting with self-executing computer programs called smart contracts. The mechanics of the DeFi ecosystem give investors complete control of their funds.

The DeFi sector offers multiple products. These include borrowing and lending services, earning returns through yield farming, staking tokens to strengthen blockchain security, and more.

Decentralized Physical Infrastructure Network (DePIN), on the other hand, is an innovation that blends blockchain functionality into physical hardware, such as servers or networks. Instead of relying on a single entity, a network of participants helps to build, maintain, and run the infrastructure, making it more accessible, transparent, and distributed.

Essentially, DePIN enables physical infrastructures like real estate, solar panels and batteries for energy systems, hotspots and routers for wireless networks, or servers for cloud computing to be tokenized on the blockchain. Additionally, DePINs can operate as DeFi projects, allowing users to trade, borrow, lend, and stake tokens.

Based on their broad functionalities, DeFi and DePIN can potentially improve the global financial system, making financial services more accessible, reducing costs, and eliminating intermediaries. These innovations also enhance transparency and security, which are uncommon in today’s traditional financial system. Blockchain’s transparent record of transactions helps reduce fraud and build trust, while its decentralization makes systems less vulnerable to security attacks.

DeFi and DePIN offer users complete control and flexibility over their assets and transactions without relying on central authorities. They also foster innovation by supporting various financial activities and applications, leading to a more efficient economic system.

Benefits of DeFi and DePIN

Accessibility: They provide financial services to people who may not have access to traditional financial institutions due to geographical or regulatory limitations.

Lower Costs: Operational fees for blockchain-based projects are drastically reduced as intermediaries and central authorities are removed.

Increased Transparency: Although financial institutions may offer some transparency, blockchain technology ensures extensive transparency and verifiable transactions.

Enhanced Security: Decentralization offers better protection against hacks as there is no single point of failure.

Complete Control of Assets: Unlike financial companies that manage users’ money, DeFi and DePIN projects allow users to manage their assets completely.

Challenges of DeFi and DePIN

Regulatory Hurdles: As regulatory bodies globally are still figuring out how to regulate these new technologies, there exists a constant shift in rules and guidelines. This uncertainty can create challenges for users and developers as they struggle to comply with evolving crypto laws and regulations.

Technical Complexity: The technology can be complicated for users to understand and use. Overcoming the hurdle lies in each user’s effort to study and understand the blockchain realm.

Scalability Issues: Handling large transaction volumes can be challenging depending on the underlying blockchain network. Still, some blockchains have overcome this challenge through the proof of stake (PoS) consensus mechanism and other similar innovations.

Risk of total loss of funds: The decentralized nature of the blockchain makes it nearly impossible for investors to recover funds sent to the wrong wallet addresses. The same challenge applies when users prey to cyber exploits like phishing attacks.

Merging DeFi and DePin with Web2 Companies

Today, centralized entities own and operate the most prominent companies and projects. It means users rely on a single authority and remain vulnerable to a single point of failure. However, DeFi and DePIN sought to change the narrative. Both innovations aim to revolutionize how Web2 companies operate through their diverse functionalities. Here’s how.

As previously highlighted, DeFi brings decentralization into traditional finance (TradFi). It is possible to merge DeFi with Web2 companies, especially those specializing in TradFi, such as banks, hedge fund managers, brokerages, etc. Such a merger will allow customers of these Web2 firms to access DeFi functions like decentralized lending, borrowing, staking, and farming. Unlike most TradFi companies that impose high transaction fees, DeFi comes with minimal network fees, depending on the underlying network used.

Merging DePIN with Web2 companies can potentially profit users and any firm involved. DePIN inherently puts control of physical infrastructures in investors’ hands, giving them governance rights over the product(s) and bolstering transparency. Users are also rewarded with tokens for participating in DePIN projects, incentivizing more to join the ecosystem.

When traditional Web2 companies, like Tesla, Airbnb, and others, incorporate DePIN into their products, they automatically welcome millions of DeFi users into their ecosystem, potentially growing their user base and revenue stream.

Interestingly, adopting DeFi and DePIN into the traditional Web2 ecosystem can increase the number of crypto users and bring more profits to businesses that explore the idea. Let’s take a case study. In January 2024, the multinational asset manager BlackRock joined various financial companies that launched a spot Bitcoin exchange-traded fund (ETF), an investment vehicle that blends the traditional financial system with the leading cryptocurrency.

Following its listing in the United States financial market, BlackRock’s Bitcoin ETF saw massive inflows, skyrocketing the company’s assets under management (AUM) to $10.6 trillion. BlackRock’s stock also saw price increases.

BlackRock’s performance with the spot Bitcoin ETF shows that much good comes from tapping into blockchain technology. If Web2 companies adopt DeFi and DePIN into their ecosystem, the crypto and traditional financial markets will harmoniously grow due to increasing demand. At the same time, more investors unfamiliar with blockchain will be enlightened on how the technology works, leading to mainstream adoption.

CLS Global: The Missing Piece

Founded in 2017, Coin Liquidity Solutions (CLS) Global is a digital asset service provider specializing in market-making expertise and consultancy. Its CEO, Filipp Veselov, currently leads the company. The Dubai-based platform manages over $1.5 billion in assets to ensure project growth and market success.

CLS Global’s market-making entails the platform’s team guiding clients (crypto projects) to embrace advanced strategies to help them thrive in the crypto market. Its consultancy feature encompasses offering comprehensive knowledge to projects, giving them a hedge in the competitive digital asset industry.

Additionally, the firm funds new crypto projects through its venture arm, helping to fast-track the projects’ growth in the industry. CLS Global also helps its clients through all stages of development: idea stage, pre-launch, launch stage, and post-launch.

The platform boasts its services as an all-in-one package because its clients receive any or all of these services to push the clients to new frontiers. CLS Global’s website shows 500+ active clients and over a million attracted holders. It has also integrated with over 100 exchanges across the crypto industry. At press time, 10% of the top 200 projects within CLS Global’s ecosystem have secured listing on the price-tracking platform CoinMarketCap.

CLS Global positions itself as a top choice for those seeking to blend DeFi or DePIN with Web2 companies. The project has nearly a decade of experience in the digital asset industry, having weathered three bearish cycles and existed when both innovations launched in the crypto market. Additionally, decentralized projects are among CLS Global’s partners, showing its established history with the DeFi terrain.

Conclusion

CLS Global supports the integration of DeFi and DePIN into the Web2 ecosystem by offering market-making and consultancy services. With its expertise and support, businesses can enjoy enhanced transparency, security, and efficiency, driving innovation and growth in the digital asset industry.

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Cryptocurrency

Why Is Ripple’s (XRP) Price Stuck? ChatGPT Weighs In

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TL;DR

  • Bitcoin charted a new all-time high, and even Ethereum managed to post some impressive gains in the past month. However, Ripple’s cross-border token has failed to recapture any of its previous momentum.
  • Here’s what ChatGPT thinks about the current situation and what might be the cause of it. Also, will there be a breakout soon?

Current Price Landscape

Numerous prominent crypto analysts have outlined in the past several weeks how important the support levels of $2.3 and $2 are for XRP’s future price movements. The former, though, has already been broken to the downside and many of them believe the asset is primed for another retracement toward the latter.

Recall that the last time XRP slumped beneath $2 was in early April as the financial world braced for the impact of Trump’s growing and constant tariffs against essentially every country.

Although the economic situation improved dramatically in the following two months and many cryptocurrencies, such as the aforementioned new BTC peak and ETH’s revival, marked impressive gains, XRP remained on the sidelines to some extent and was quickly stopped during its surge toward $2.6. It was (and still remains) confined in a descending pattern that has seen another 6.5% decline on a weekly scale.

XRPUSD. Source: TradingView
XRPUSD. Source: TradingView

Why So?

ChatGPT first listed the broader market conditions as one of the reasons behind XRP’s stagnation, but that sounds accurate only if we take into account the past week, in which many digital assets have turned red. However, XRP has been outperformed by ETH, BTC, and many, many alts, such as HYPE, on a monthly scale as well.

The AI solution noted that investor sentiment and behavior have changed lately toward XRP, as the post-US election hype has evaporated. Now, even though Ripple essentially won its legal fight against the SEC, investors are “opting to sell during minor price increases rather than holding for long-term gains.”

ChatGPT mentioned XRP’s tokenomics, in which a billion new coins are released monthly. According to its answer, this continues to add selling pressure for XRP and may hinder its progress.

“This consistent increase in available tokens can suppress price growth, especially if demand doesn’t keep pace.”

On the question of what could help XRP break out of its consolidation, the AI chatbot said it might take a significant change in investor behavior, such as whales going on a massive accumulation spree similar to the one at the end of 2024, as well as an overall improvement in the market. Additionally, big partnership or acquisitions can aso fuel a new rally.

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These Metrics Are Overheating While Bitcoin Remains Bullish: CryptoQuant

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Bitcoin (BTC) is well within a bull market, but certain metrics suggest that the cryptocurrency may have reached a short-term top. This means that BTC may experience a significant price correction before another rally ensues.

A report from the market analytics platform CryptoQuant revealed that the metrics that appear to be overheating are those pertaining to Bitcoin’s demand growth. Regardless, Bitcoin’s overall conditions remain bullish, and the CryptoQuant’s Bull Score Index is at 80. Historical data shows BTC has continued to rally, provided the index remains above 50.

Demand Metrics Are Overheating

CryptoQuant analysts report that BTC balances held by whales have increased by 2.8% over the past month. They also estimate Bitcoin’s demand growth to be at 229,000 BTC within the same time frame. This figure is close to the demand growth recorded in December 2024 at 279,000 BTC when the cryptocurrency surged past $100,000 for the first time.

Such paces often precede a slowdown in whale accumulation, and as analysts always say, BTC needs strong demand to sustain a rally.

Additionally, the Bitcoin Traders’ Unrealized Profit Margin has approached a level that often indicates potential resistance for prices. According to historical data, bitcoin’s price surge tends to slow down whenever the metric nears 40% or crosses below its 30-day moving average, which is currently at 19%.

At the time BTC rallied past $111,000 last week, the margin hit 32%. This means it got close to 40%, which is the level marked for overheating.

Bitcoin Falls Below $104K

Analysts believe $120,000 could be the next major resistance level for BTC if it continues to rally. This is because $120,000 is the upper band of the Traders’ On-chain Realized price – here, the unrealized profit margin sits at 40%. Historical data indicate that this upper band has consistently served as a key resistance during bull markets.

While BTC still faces the possibility of a continued rally, the asset had fallen below $104,000 at the time of writing. Data from CoinMarketCap showed BTC was down 2% in 24 hours, tumbling from the $105,000 level.

Meanwhile, analysts have revealed that BTC investors have been realizing some profits following the recent price surge, but at moderate levels compared to past markets. Hence, there is no evidence to suggest that the bull cycle is ending; in fact, market conditions indicate continued strength in bitcoin’s upward trajectory.

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Ripple Price Analysis: Bearish Signs Flash as XRP Prepares for Further Downtrend

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Ripple faced a sharp rejection at the upper boundary of its descending wedge, triggering a significant decline. Adding to the bearish outlook, the asset has slipped beneath both the 100-day and 200-day moving averages, an important technical breakdown that raises the probability of an extended correction.

XRP Analysis

The Daily Chart

XRP’s recent attempt to break out of its long-standing consolidation range has been met with notable selling pressure. After testing the upper boundary of its descending wedge formation near $2.5, the asset was firmly rejected and has since declined sharply, breaking below both the 100-day and 200-day moving averages, previously acting as dynamic support around the $2.2 level.

This bearish development is further intensified by the emergence of a death cross, where the 100-day MA has crossed below the 200-day MA, often seen as a signal of mid-to-long-term bearish sentiment.

With momentum now favoring the bears, the focus shifts to the next significant support zones: the psychological $2 level and the wedge’s lower boundary around $1.5. These lines are likely to be critical battlegrounds for bulls attempting to halt the downtrend.

The 4-Hour Chart

Zooming into the 4-hour timeframe, XRP had been confined within a short-term ascending wedge, typically a bearish pattern. The price has since breached the wedge’s lower trendline near $2.3, confirming a breakdown and reinforcing the bearish narrative.

Currently, Ripple is testing a key support level at the $2.1 region. A decisive drop below this level could accelerate the downtrend, opening the door for a fall toward the $1.5 support area. On the flip side, if buyers manage to defend this level, a temporary consolidation phase between $2 and $2.3 could follow, though momentum still leans bearish unless a strong reversal develops.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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