Jul 273 mins read

Increase of Bitcoin Anchored on Ethereum Chain

DeFi creates potential risk for leveraged market

Increase of Bitcoin Anchored on Ethereum Chain

The amount of Bitcoin anchored on the Ethereum chain has significantly increased due to the growth of DeFi. WBTC is the largest centralized option and RenBTC is the largest cross-chain option.

Bitcoin anchored on Ethereum chain

However, this leveraged market created by DeFi is potentially unhealthy and could lead to liquidation if there is a significant drop in cryptocurrency prices.

The market is currently relatively crazed, but with a decreasing Greed and Fear Index and Grayscale Trust's assets under management decreasing, there may be a correction soon.

Greed and Fear Index

Furthermore, almost half of all mined Bitcoin has not been moved in the past two years, indicating the strength of the Bitcoin community.

Inactive bitcoins in last two years

Regarding market analysis, Bitcoin may experience some continued oscillation and potentially a short-term correction, while Ethereum is likely to remain stable. XRP and LINK are both experiencing high-level vibrations but with some bearish predictions for the latter from Zeus Capital.

Market Analysis

Crypto Market Report

Link entered the top five in market value due to the application of its prediction machine. Although there is some bubble, it is understandable compared to other air projects. Short-term growth may be difficult, so it is advised to focus on pullbacks.

Link coin

  • ADA: Linked to mainstream coins.
  • EOS: Continues to oscillate between 3.2-3.4.
  • TRX: Consider buying on a short-term pullback and a new low.
  • DOT: After the split, it experienced significant short-term gains, but there is a notable trend of reduced holdings at high levels. It is advised to be cautious about short-term pullbacks.
  • OMG: It is unlikely to see a surge in the old currency, and it needs to adjust for some time before there is a second pulse.
  • NEST: Its strong performance did not continue today and had a pullback, so it is recommended to take profits.
  • ALGO: It did not surge and faced resistance, so it continues to oscillate at high levels.
  • LEND: It received an electronic currency institution license from the UK Financial Regulatory Authority, making it quite respected. The Aave's total locked-in amount has surpassed Maker and ranked first, so this currency still has potential. Be careful of quick gains.

Crypto coins

The opportunity with mainstream coins is still not significant, so more patience is needed. Small coins need to be handled with caution, and stop losses and profits should be implemented properly. The author's opinion does not represent the viewpoint or position of Block Like, and all content and opinions should be used for reference only and do not constitute investment advice. Investors should make their own decisions and trades. The author and Block Like will not be liable for any direct or indirect losses from the investment decisions of investors.