Bitcoin

Decentralized finance is poised to transform Bitcoin

Published

8 months ago

5 June, 2024

Decentralized finance is poised to transform Bitcoin

Since its creation in 2009, bitcoin (Bitcoin) has gained steady adoption and now has a market capitalization of over US$1.3 trillion. It is designed to be a decentralized currency and real-time gross settlement system. The decentralized, protocol-based approach allows holders to shift trust from a centralized actor to a decentralized, code-enforced protocol.

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Despite bitcoin being the original cryptocurrency and corresponding blockchain, its functionality has been extremely limited to date relative to smart contracts and decentralized finance (DeFi) functionality offered by Ethereum, Solana, and other blockchains. However, this dynamic is expected to change with the emergence of Bitcoin Layers, the metaprotocols, sidechains, layer 2s and other technologies currently being built on the Bitcoin blockchain. These layers will enable faster payments as well as lending, enhanced functionality of fungible and non-fungible tokens, decentralized exchanges, GameFi, SocialFi and many other use cases. Bitcoin holders will soon be able to increase the productivity of their assets through a protocol-based decentralized financial system. The main differentiator between DeFi on Bitcoin and DeFi on other chains is the underlying asset (native token). While Ethereum, Solana, and next-generation blockchains compete based on the merits of their respective technologies, DeFi on Bitcoin is purely focused on increasing bitcoin’s productivity, putting the Bitcoin DeFi ecosystem in a league of its own.

The case for creating value through a Bitcoin-based decentralized financial system is driven by three assumptions:

We are already seeing strong signs of demand for the Bitcoin blockchain as a base layer for other tokenized assets. The non-fungible token market in Bitcoin, called Ordinalsgrew from less than $100 million to more than $1.5 billion in less than six months.

However, the biggest opportunity is yet to come. Most of the market value of Bitcoin’s decentralized financial system will appear in the value of fungible tokens in Bitcoin. Fungible tokens will drive greater productivity of bitcoin (the asset) through yield-generating instruments and decentralized financial systems through protocols and layer 2. Relative to Ethereum, Solana and other chains, the value of fungible tokens in Bitcoin is still is tiny, in large part because we are at the beginning of programmable functionality on this blockchain.

Bitcoin’s main non-fungible token protocol, Ordinals, was not launched until January 2023. BRC20s and Runes, Bitcoin’s main fungible token protocols, were launched in March 2023 and April 2024, respectively. Even with these recent releases, additional functionality is needed for a robust decentralized finance ecosystem to exist on Bitcoin.

Additional functionality is being introduced to Bitcoin in two ways:

As mentioned previously, the Bitcoin decentralized finance ecosystem is still in the early stages of its lifecycle. However, strong indicators of future growth can be seen through the growing developer and DeFi activity in the space. In 2023, 40% of Bitcoin open source developers were focused on Bitcoin L2s and scaling solutions. Then, in the first quarter of 2024, the total value locked (TVL) of the Bitcoin ecosystem grew more than sixfold, from $492 million to more than $2.9 billion. Given these early indicators, along with what we’ve seen happening in other ecosystems, we believe that more than $1 trillion in value could be created in the Bitcoin DeFi ecosystem over the next five to 10 years.

Franklin Templeton Disclaimer:

All investments involve risk, including loss of principal.

Investments in Digital Assets are subject to many risks and specialized considerations, including, but not limited to, risks related to:

(i) immature and rapidly developing technology underlying the Digital Assets, (ii) security vulnerabilities of this technology, (iii) credit risk of Digital Asset exchanges that may hold an Account’s Digital Assets in custody, (iv) uncertainty regulatory around the rules governing Active Digital Assets, Digital Asset exchanges and other aspects and parties involved with Digital Asset transactions, (v) high volatility in the value/price of Digital Assets, (vi) unclear acceptance of some or all Digital Assets by global users and markets, and (vii) manipulation or fraud resulting from the pseudo-anonymous way in which ownership of Digital Assets is recorded and managed.

This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or as an investment recommendation, nor as a substitute for legal or tax advice. Potential investors should always consult a qualified financial professional for personalized advice or investment recommendations tailored to their specific goals, individual situation and risk tolerance. The opinions expressed are those of the author and do not reflect the opinions of other managers or the company in general. Views are current as of the date of this publication and are subject to change. Information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events. References to specific securities, asset classes and financial markets are for illustrative purposes only and should not be construed as recommendations.

Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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Bitcoin is on the verge of a bullish breakout again. What to watch on the charts

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SatoshiTimes Staff

We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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