In today’s article we talk about Cardano (ADA) having their hard fork Shelley update today. The price of Cardano has been on the rise over the past few weeks and now with the Shelley upgrade, Cardano will start to grow exponentially over the next 6 months. I really believe that the price of Cardano will reach 1 dollar ($1) by the end of this year.
And…. If your not the article reading type we have 2 other formats for you:
The current price of Bitcoin is at $10,988.46 up 0.31%
The current price of Ethereum is at $318.71 down 0.06%
The current price of EOS is at $3.04 up 6.84%
The current price of XRP is at $0.242026 up 8.49%
The current price of ADA is at $0.145099 up 3.94%
The current price of LINK is at $7.28 up 1.79%
As always this publication is sponsored by CoinCasso cryptocurrency exchange. So if you’re unsatisfied with your crypto currency exchange, like Coinbase that crashes every single time that the price drops or goes up, consider checking out CoinCasso in the link.
Bitcoin is currently trading above $10,000, but is the latest move into five figures here to stay? Data suggests this rally might have legs.
The leading cryptocurrency has failed a number of times during the last 12 months to keep gains above the $10,000 mark. But this time may be different. Consider the flow of bitcoins and stablecoins in and out of cryptocurrency exchanges observed on Monday, suggesting the latest price breakout may persist.
The inflow of bitcoins into exchanges increased by 68,970 BTC to 130,039 BTC on Monday – the largest single-day rise in 134 days – as the cryptocurrency jumped over 10% to $11,315 to reach its highest level in nearly 12 months, according to Chainalysis, a blockchain intelligence firm.
In other words, as the cryptocurrency rallied to multi-month highs, some investors moved their coins to exchanges. Investors typically transfer coins from their wallets to exchanges when they lack confidence in the rally or resources to hold coins for long-term and want to liquidate their investments.
As such, one may argue that additional supply has poured into exchanges. While that seems to be the case, the buying pressure, as represented by the inflow of the largest stablecoin tether (USDT) into exchanges, has also strengthened.
Stablecoins are cryptocurrencies that peg their market value to some external reference, usually the U.S. dollar. Tether and other major stablecoins are widely used to fund cryptocurrency purchases and their market capitalization has grown enormously this year. Tether, the largest dollar-backed stablecoin, crossed a $10 billion market cap earlier this month.
Tether inflows surged by over 440 million USDT to 726 million USDT on Monday, as per Chainalysis. “There was $726 million worth of demand for bitcoin entering into exchanges yesterday to balance the $1.3 billion worth of bitcoin looking to sell,” Philip Gradwell, chief economist at Chainalysis, tweeted early Tuesday.
And while the inflow of tether was less than that of bitcoin, there are other means to buy cryptocurrencies. “There will also be demand from fiat,” Gradwell noted.
Thus flows suggest the buying pressure may be strong enough to absorb the extra supply that has come onto exchanges and bitcoin may finally succeed in establishing a strong foothold above $10,000.
At press time, bitcoin was changing hands near $11,140, having tested dip demand with a drop to levels below $10,600 during the European trading hours.
Ethereum co-founder Vitalik Buterin has warned of the dangers of ‘smart contract risk’ in DeFi protocols in an interview to mark Ethereum’s fifth birthday.
Buterin also warned users not to ‘risk their life savings’ in DefI in his appearance on Laura Shin’s Unchained Podcast.
Smart contract risk
When asked about his main criticism and concerns about DeFi, Buterin responded;
“I think one big one is just that a lot of people are underestimating smart contract risk.”
Buterin said that the interest rates are exponentially higher than traditional bank accounts meaning DeFi products are far riskier and have a much higher chance of ‘breaking’. Buterin said he was not confident that even audited platforms and protocols could guarantee that they wouldn’t ‘break’ within a set period of time by a set percentage margin.
“DeFi is still fine, but don’t act like it’s a place where you should advocate for a lot of regular people to put their life savings into.”
There have been a number of high profile smart contract exploits in DeFi this year with examples including the bZx flash loan exploit in February that resulted in the loss of almost $1 million worth of crypto, and Bancor smart contract bug in June that caused a network shutdown.
Yield farming is unsustainable
Buterin is also concerned about the unsustainability of ‘yield farming’, stating that the high interest rewards are paid for by whatever protocol is doing the lending. Platforms are not going to keep on ‘printing coins’ to entice people on to their ecosystems forever, he added:
“It’s a short term thing. And once the enticements disappear, you could easily see the yield rates would drop back down very close to zero percent.”
In defense of DeFi
Vitalik Buterin has not always been critical of decentralized finance and, earlier this year, made a solid defense of the nascent industry following a couple of high profile hacks. Speaking at the Ethereal Virtual Summit in May, he stated:
“Plenty of responsible DeFi projects have survived a long time without getting attacked. It’s definitely not an inherent property in DeFi itself, and there’s a way to do it responsibly.”
He went on to criticize centralized finance and exchanges that “gets attacked over and over again.”
On July 29, Cardano (ADA) will migrate from the Byron to Shelley era with a planned hard fork. The team stated that no interruptions to the Blockchain’s normal operations are expected, elaborating that “this is the
moment when Shelley ‘comes alive’ on mainnet, introducing features such as stake pools, delegation and rewards, opening up a new era of decentralization for Cardano.”
Charles Hoskinson: thousands of DApps by 2021
Cardano founder Charles Hoskinson is extremely optimistic about the platform’s future, he expects to see thousands of decentralized applications and tons of projects residing on the new mainnet a year from now:
A continuation of the Romantic Era
The transition from Byron to Shelley seems to be going according to plan without any major deviations anticipated. The market seems to approve of the project’s progress as the price of ADA has increased exponentially over the past few months.
The two great romantic poets for which Cardano’s mainnet iterations are named, Percy Shelley and Lord Byron, enjoyed a complicated relationship. Historically speaking, Byron outlived his rival by two years. In the Cardano universe, Shelley and Byron will barely shake hands before never meeting again, if everything goes according to plan.
The hard fork is happening just two days before Ethereum’s (ETH) fifth birthday; another project co-founded by Hoskinson. Historically, there has been a lot of unease between the two projects and their creators.
Bitcoin’s Latest Rally May Have Staying Power, Exchange Flows Suggest
Vitalik Says DeFi Users Are ‘Underestimating Smart Contract Risk’
Cardano’s Shelley Hard Fork is Happening Tomorrow, No Interruption Expected
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