Polygon surpassed Ethereum, and MATIC pushed Solana out of the top 10 cryptocurrencies
MATIC Rate, the native token of Polygon’s second-level scaling solution, is actively strengthening today. Now, it is up about 8% intraday, pushing Solana out of the top 10 most capitalized cryptocurrencies.
Activity on Polygon rises
This growth comes amid reports of new achievements Polygon blockchain has achieved. Thus, it became known that the daily figure of active users on Polygon exceeded the same figure for Ethereum. However, both blockchains are far behind BNB Chain, which is the leader on this chart:
According to Token Terminal, the daily active address count on BNB Chain is nearly 800,000 users. Polygon is in second place with 340,000, surpassing Ethereum with 320,000.
According to Polygonscan, the number of active user addresses was closer to 400 thousand; with the last two weeks this value grew by 21%.
However, data from Etherscan says that there were 341,000 active addresses on the Ethereum network as of January 26.
Another Polygon on chain metric, the total value of all blocked assets on the network (TVL), also increased. According to DeFi Llama, this metric has now reached a value of $1.28 billion.
The most popular platform in the Polygon ecosystem is AAVE. Its market share is about 25%. Overall, Polygon is the 4th largest DeFi ecosystem, behind only Ethereum, BNB Chain, and TRON.
According to Polygonscan, the network processes about 3 million transactions daily. This is three times higher than Ethereum’s rate of 1 million transactions per day and 10 times higher than the bitcoin network’s rate of 300,000 transactions per day.
MATIC token holders have an opportunity to earn on staking Thanks to Polygon’s partnership with the cryptocurrency depository BitGo. At the same time, the Polygon network has been actively entering into strategic partnerships and alliances throughout the entire crypto winter.
What MATIC is doing
Against this backdrop, the native token project MATIC rose 8% intraday and displaced Solana from the tenth line of the most capitalized cryptocurrencies. At the time of writing, the coin’s exchange rate was $1.07 and the asset’s capitalization was nearly $9.4 billion versus Solana’s $8.8 billion.
MATIC’s intra-weekly appreciation is 13.5%. Two weeks ago, the token broke through the psychological barrier of $1 for the first time since November, and since the beginning of the year it has strengthened by an impressive 45%.
However, the price has a lot to strive for. It is still far from the historical high of $2.92 reached in December 2021.
We previously reported that DeFi has a leading role to play in the future of finance.
Cryptotraders lost more than $250,000,000 in liquidations after Fed rate hike
Cryptotraders had a tough day: almost 68,000 positions were liquidated on exchanges in the last 24 hours, and the total volume of liquidations exceeded $257,000,000. All this happened against the news of the US Federal Reserve’s rate hike and another Securities and Exchange Commission regulatory action against cryptocurrencies.
Cryptotraders lost $132,000,000 in BTC
Bitcoin, Ethereum, and Ripple were the leaders in the number of forcibly closed positions. BTC liquidations totaled almost $132,000,000; Ethereum traders lost $51,000,000. XRP positions accounted for about $8,000,000 of liquidations. Bitmex exchange executed the largest order of $7.39,000,000.
Cryptocurrency market capitalization has declined 2% in the last 24 hours, but is still above the $1 trillion mark.
The weekly CoinShares report also recorded a massive outflow of funds for six consecutive weeks. During that period, nearly $500,000,000 was withdrawn from cryptocurrency platforms, with $113,000,000 coming from bitcoin. Analysts at the company believe the outflow is due to liquidity needs during the banking crisis rather than a negative outlook. The company mentions that a similar scenario was seen in March 2020 amid a COVID-19-induced panic.
Regulators continue to hunt the cryptobusiness
Another reason for the increased volatility in the market has been harsh action from U.S. regulators. Last night it became known that the U.S. Securities and Exchange Commission sued cryptomagnate Justin Sun, accusing him of fraud and market manipulation.
The SEC also issued a notice of wrongdoing against Coinbase, the largest U.S. cryptocurrency exchange. The securities regulator sued Coinbase Global Inc, for some of the products it offers.
We previously reported that Bitcoin (BTC) tests $28,000, but onchain metrics urge caution.
Binance was caught circumventing KYC to register Chinese clients
Employees of the cryptocurrency exchange Binance help clients from China to bypass compliance and verification. CNBC writes about it, citing hundreds of corporate emails from exchange employees on Discord and Telegram. It is reported that Binance has helped over 200,000 users register, bypassing its own security system. One case describes correspondence between a user from China and a Binance employee.
The employee under the pseudonym yaya.z suggested the user from China turn on a VPN, register as a Taiwanese resident and then return the location to China. Binance employees also advise customers not to use VPN services from the U.S., Hong Kong and Singapore, because the exchange does not provide services in those regions, writes CNBC. At the same time, Binance freely processes applications from U.S. email providers like Gmail or Outlook for registration.
The exchange even offers specialized mobile applications for customers from China. A CNBC reporter could download a special mobile application from Binance via email. At the same time, no VPN was needed to download the app, as the download was conducted through the domain of binance[.]com. It is also alleged that the exchange still verifies users with Chinese phone numbers.
An exchange spokesperson denied the existence of a special Chinese version of the mobile application. The exchange also added that it has improved the system to identify users from banned regions. CNBC notes that after providing evidence, Binance removed employee messages from corporate chats to circumvent KYC.
We previously reported that the Ethereum (ETH) price crossed the $1,800 mark, opening the way to $2,000.
Why cryptoanalysts expect bitcoin to fall
The market remains in a bearish trend and bitcoin (BTC) will resume its fall and test $16,000. There are two reasons:
The first statement can be confirmed or disproved by a technical analysis of the cryptocurrency market, but there is not enough additional information for the second.
The market capitalization of altcoins (ALTCAP) does hold nearly $605 billion of resistance. Although ALTCAP has risen above it several times, it didn’t develop above this area.
However, the daily RSI has broken through the bearish divergence trendline (green line). Such a breakout often precedes significant reversals into a bullish trendline. As a result, ALTCAP will move higher towards the $680B resistance area. If not, ALTCAP could fall back to the $518B support area.
There are also those who argue that bitcoin will test the $10000-$11000 area because there is a CME price gap that needs to be filled. The gap refers to the difference between the closing price of bitcoin futures on the Chicago Mercantile Exchange (CME) on Friday and the opening price on the following Monday.
We previously reported that Hong Kong has allocated another $50,000,000 to the crypto industry.
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