Crypto Around The World: May 7 Review
Time to Buy Altcoins
Behind Polkadot Network and Chainlink Surge?
Over the last Bitcoin (BTC) has faced selling pressures that have led its price to dip below $35,000, which has caused investors to question whether it’s time to buy altcoins given the latest surge from Polkadot network and Chainlink.
Polkadot Network Replaces Ripple (XRP) in Market Cap Rankings
Over the last week, Polkadot’s price has surged past $19 to hit its new all-time high. With the surging Polkadot price, it has toppled Ripple’s XRP to become the fourth-largest cryptocurrency by market cap. Over the last seven days, Polkadot is the best performing cryptocurrency in the top-ten largest cryptocurrencies by market cap.
The Polkadot Network has garnered favor with developers and investors as the solution to key challenges with blockchain today: scalability, specialization, and enhanced innovation. There are many types of blockchains, which act as a platform for applications that can be used for specific use cases – such as supply chain management or finance – or act as a foundation for their own ecosystem (i.e. Ethereum).
Let’s help clarify with a real-world example. If a business that wants to create a smartphone application, they need to be mindful of all the different types of mobile devices – including each of their technical and software specifications – that their employees can own: Apple, Samsung, Huawei, LG, Xiaomi, Motorola, and more. It’s simply not feasible to make thousands of versions of your application, which is only the start for the support and enhancements that would be required for each.
In this example above, Polkadot would be a platform that can work seamlessly across all the devices and platforms. In the blockchain world, Polkadot extends this interoperability by enabling data to also flow between public and private networks. For example, a financial institution can access public stock information, found on an oracle network, from their private blockchain to empower their traders’ investments.
Chainlink Reaches New All-Time High
Another altcoin that has performed well is the oracle service provider Chainlink (LINK). On Saturday, January 16, Chainlink (LINK) surged to a new all-time high above $22.63.
The on-chain fundamentals of LINK continue to gain strength. Over the last 5 months, Chainlink has attained the highest number of active addresses. As per the Holders Distribution data presented by Santiment, Chainlink whales have been holding their positions well, while mid-tier addresses with 100-100k are growing rapidly, which has led many analysts to increase their Chainlink price predictions given declining supplies of LINK on crypto exchanges.
The weekly Chainlink chart shows gains of 12.56% for the LINK cryptocurrency. Crypto brokerage platform Paxos recently announced the adoption of Chainlink oracles, thereby making its USD-backed stablecoin (PAX) and the gold-backed token (PAXG) available to decentralized finance (DeFi).
Walter Hessert, Head of Strategy at Paxos said: “Chainlink oracles will accelerate the adoption of Paxos’ USD and Gold-backed tokens in DeFi. With the proof of reserve and price available on-chain, our regulated assets will become more accessible for DeFi users.”
Ethereum Resistance Levels Stabilized at $1,000
Ethereum (ETH), the world’s second-largest cryptocurrency, continues to face downward pressure. However, there has been new Ethereum resistance levels that have stabilized ETH at $1,000 as investors seek for another round of breakout prices to hit $1,500 by the end of January.
Bloomberg strategist, Mike McGlone, stated that Bitcoin (BTC) surges are necessary for Ethereum (ETH) to continue moving past $1300 levels. The strategist acknowledges that ETH has successfully turned the $1,000 resistance into support.
Flash Crypto News and Crypto Market Developments
- Wall Street banking giant Goldman Sachs is reportedly planning to start its cryptocurrency custodial service. “Like JPMorgan, we have issued an RFI looking at digital custody. We are broadly exploring digital custody and deciding what the next step is,” said a Goldman insider.
- Hedge fund giant Mike Novogratz’s Galaxy Digital is looking to step into the Bitcoin mining sector soon. It will be led by Amanda Fabiano, who is the former Director of Mining at Fidelity. “Bitcoin mining is the foundation of the Bitcoin network. By mining ourselves, we are able to deeply understand and solve for the financial needs of miners, while also enhancing the strength of the industry and thus the strength of the Bitcoin network”, said Fabiano.
- In a recent study published by the International Monetary Fund (IMF), the financial organization highlighted a need for digital currency legislation across its 174 members.
“We reviewed the central bank laws of 174 IMF members … and found out that only about 40 are legally allowed to issue digital currencies,” said Arthur Rossi, a research officer in IMF Legal Department’s Financial and Fiscal Law unit.
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