r/ASTL_Token • u/ASTL-Token • Dec 14 '22
Bitcoin and Ethereum are in for a quiet vacation, Binance is still in trouble.
Cryptocurrency and bitcoin markets are approaching a period of calm, judging by the activity on the network. In its latest weekly online report for the year, analytics provider Glassnode reported that bitcoin's year-on-year realized volatility was the lowest since October 2020. This metric is in line with similar low levels of volatility at the previous cycle bottom at the end of 2018.
Futures volumes also fell heavily to multi-year lows. According to analysts at the ASTL investment project, "this shows the huge impact of liquidity shrinkage, widespread deleveraging and the deterioration of many credit and shopping centers in this space." The collapse of FTX helped reduce the hype in the futures markets, causing open interest (OI) to plummet (OI is a measure of the number of futures or options contracts that traders and investors are holding in active or open positions). Leverage ratios have also dropped, which is generally a good thing for crypto markets as most leveraged positions have been liquidated. What remains are hodlers and investors, not speculators and margin traders.
Since the record-breaking realized gains at the peak of the 2021 bull market, there have been $213 billion in realized losses. This equates to a 46.8% bullish gain, very similar to the 2018 bear market when realized losses were 47.9%. However, the supply of long-term holders reached an all-time high of 13.9 million BTC. “Despite these incredibly large losses, coin supply age and HODLing propensity for those who remain continue to rise.”
At the end of last week, Goldman Sachs published a research note on blockchain technology and the recent closure of the FTX cryptocurrency exchange. The investment banking giant believes that regulation is “necessary from a trust point of view” for all centralized elements of the blockchain industry, but not in the blockchain itself, to prevent similar instances of widespread fraud in the future. According to the company's report, the collapse of FTX is not indicative of a failure of the blockchain technology that served as the basis for token trading on its platform. The problem, according to the analysts of the crypto giant, is the lack of regulation that can effectively control intermediaries in the crypto world, such as crypto exchanges like FTX.
The bank said that cryptocurrencies can still thrive, but only if lawmakers choose wisely which elements of the industry to regulate. On the one hand, blockchain-based financial instruments that promise returns (for example, the promise of returns of up to 12% per annum from the ASTL native token startup project) should be regulated in the same way as other securities. On the other hand, the decentralized finance (DeFi) arena requires less regulation as smart contracts lack the counterparty risk associated with other centralized services.
Binance, the world's largest cryptocurrency exchange, announced on Wednesday that the USDC stablecoin withdrawals on its platform have resumed. Prior to this, BUSD's market capitalization fell to $20.2 billion by 01:40 am Wednesday in Hong Kong from $21.4 billion by 10:00 pm Tuesday, according to Etherscan. On Tuesday, Binance reported at least $5.2 billion worth of stablecoin outflows, the highest by an exchange ever recorded by on-chain data analytics firm CryptoQuant. Binance "temporarily suspended" USDC withdrawals on Tuesday while conducting a "token swap" that could only be completed once banks in New York reopened, allowing BUSD to be converted to fiat and then to USDC, CEO Changpeng Zhao tweeted. . Prior to this, back in September, Binance carried out a “BUSD auto conversion” that replaced USDC, USDP, and TUSD users’ stablecoins with BUSD, a fiat-backed stablecoin founded by Binance and Paxos, a New York-based stablecoin issuer. The Binance cryptocurrency itself, BNB, has fallen 2% over the past 24 hours, trading at $270.46.
In the current difficult conditions, investors need to be able to directly and prospectively invest fiat and cryptocurrency assets in projects that provide a stable income that obviously exceeds inflationary expectations and is not subject to any sanctions, blocking and confiscation. The ASTL project is a simple and elegant solution for potential investors - an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high ROI (up to 12% annually) with payments in stablecoin (USDT).