After the indecisiveness of March, the month of April has started a hot season of cryptocurrencies. And here we are, breaking new psychological thresholds, exploring new opportunities of DeFi, and watching the further adoption turning crypto into a full-fledged asset class.
In April, our experts discussed a few major topics:
- The growth of DeFi sector
- CEX.IO news
- The markets only get hotter
- Market analytics
Explore our media recap to be fully informed about what’s going on in the cryptocurrencies world.
The growth of DeFi sector
Decentralized finance (DeFi) took the world of crypto by storm in 2020. And, though the hype had cooled down somewhat by the end of last year, we are still seeing signs of its growing popularity now, well into 2021. Konstantin Anissimov points out that DeFi, with a proper governance approach, can make payments more transparent, democratizing access to global finance for everyone. At the same time, he warns about risks associated with this field.
The most popular cryptocurrency, Bitcoin (BTC) has started discovering its new all-time highs (ATHs), moving above USD 63,000 for the first time in its history and liquidating almost USD 200m in short trading positions in one hour. The native token of the largest smart contract platform, Ethereum (ETH), reached its new ATH also. BTC surpassed its ATH one day before a direct listing by the largest US crypto exchange, Coinbase. Konstantin Anissimov believes that Ethereum has broken its correlation with BTC and charts its own course.
Bitcoin is in the middle of its fourth major price surge of 2021 and is close to hitting a new all-time high, with some analysts predicting that this rally could be different from the ones that have come before. “Investors have quickly found themselves in need for new safe-haven assets to save their capital,” says Konstantin Anissimov.
Bitcoin closed its sixth consecutive month in the green. Exchange rate data from CEX.IO shows that the flagship cryptocurrency opened in March at a low of $45,063 and finished trading at a high of $58,715, providing investors a monthly return of nearly 30%. The acknowledgment that Bitcoin is now part of the global financial system from such major corporations seems to have been the catalyst that pushed prices to a new all-time high of $61,800 in mid-March, according to Konstantin Anissimov.
Non-Fungible Tokens (NFTs) are becoming more and more prominent in the crypto market recently. They began as a very niche phenomenon revolving around crypto artists yet now are on the verge of transforming into an ecosystem with billions of dollars floating around. Konstantin Anissimov says that we are yet to discover the future where this technology will be integrated into key aspects of life, and the concepts of data integrity and ownership become reimagined.
Considering their unique nature, the demand for NFTs will depend less on the cryptocurrency market and more on the demand for virtual creations. IoT (Internet of Things) may also become an additional source of demand here. Given that we live in an age when the influence of virtual reality is constantly growing, it is only to be expected that NFTs stand to gain in popularity the further we go, says our CTO, Dmytro Volkov.
According to Bitcoin Treasuries, institutionals hold 6.76 percent of the total BTC supply, which includes investments from hedge funds, family offices, private firms, as well as major publicly traded companies, such as Tesla and MicroStrategy. However, enterprises are not just here to stock up from Bitcoin. Many businesses are also developing digital asset solutions and accepting crypto – a crucial indicator signaling that cryptocurrencies are now becoming a full-fledged asset class. Developing the right products to serve institutional clients is the key for the crypto industry to reach mainstream adoption, emphasizes Konstantin Anissimov.
Coinbase financials are now available to the public for analysis so there’s a higher chance of attracting potential investors to crypto, according to Konstantin Anissimov. We’ll see an influx of former bankers, consultants, and entrepreneurs trying to build in this space, Konstantin told CoinDesk, adding that for bankers and consultants who are usually conservative in their career choices, this assurance will ease the decision to enter the industry.
The current digital asset rally has turned the crypto market upside down. As a result, KYC and AML have become top priorities for cryptocurrency providers, with many industry players rushing to implement proper measures to better know their customers. And it’s not just the providers that are increasingly demanding KYC, but also their clients. Doing so conveys the message that the company takes its clients and their security seriously, dedicating its time and resources to protect them and their funds, points out Konstantin Anissimov.
As the matter of regulation becomes more relevant in the sector, KYC is gradually turning into a major pillar supporting the long-term growth of this industry. According to Konstantin Anissimov, it appears that all the signs point towards the crypto market maturing, as can and should be expected. And it’s probably a safe bet to say that businesses that decide to put effort into customer security measures early on will be the ones to become the most successful in the long run.
Blockchain technology was born out of the long-standing need for change. Globalization, the growth of e-commerce, and an increase in cross-border sales drive demand for faster and safer transactions. IT visionaries see crypto as a way to disrupt the payment industry. However, Arina Kulackovska points out that In today’s reality, though, pioneer fintech companies are dependent on the legacy ecosystem.
As Covid-19 reshaped the financial landscape around the world, the flexibility of services offered by the expertise and structure of Neobanks proved the institutions to be considerable challengers to incumbent traditional banks. But is the good news to last? Do Neobanks boast the capability to rival the reputation of the industries biggest players? These are questions explored and answered by Arina Kulackovska, Head of Corporate Payment Solutions at CEX.IO.
We have been included in the list of the best cryptocurrency exchanges for buying and selling crypto assets according to Business Insider. They have highlighted our advantages like the instant buy feature, mobile app, staking rewards, and crypto-backed loans, spot trading and margin trading, and also a maker/taker fee schedule that’s based on your 30-day trading volume.
Robinhood recently experienced a crypto trading outage at the same time that the popular cryptocurrency Dogecoin’s prices surged. Though the investment app took to Twitter to reassure its users that it had fully restored crypto trading services, Robinhood’s brief pause in function temporarily blocked several traders from placing orders. We have become one of the platforms chosen by Business Insider to use as an alternative to Robinhood thanks to more than 80 cryptocurrencies listed, along with a range of other crypto services.
CEX.IO announces the launch of an institutional-grade Prime Ecosystem. Prime Liquidity – a market-leading liquidity aggregation service – is the first solution in the company’s new suite of products for institutions and corporate clients. The service offers real-time access to cryptocurrency liquidity and market data from best-in-class providers, guaranteeing high-speed execution at best prices. In addition to rapid onboarding and simple integration via low-latency FIX API endpoints without rate limits, clients are offered a professional and efficient trading environment with access to spot liquidity for Bitcoin and other digital assets, including DeFi.
CEX.IO launches a Savings service as the newest solution in the fast-growing Earn ecosystem. Available in 171 countries, CEX.IO Savings offers users up to 20% Annual Percentage Yield (APY) on 19 different digital assets with the flexibility to move funds in and out of their accounts without any restrictions. Similarly to savings accounts in the traditional finance industry, CEX.IO Savings offers users a way to generate a passive return on the digital assets they hold.
The markets only get hotter
Bitcoin’s recent price crash, which saw it lose a quarter of its value after hitting an all-time high, could be just the “midway dip” in a new record-breaking rally if market patterns from 2013 and 2017 are repeated. Konstantin Anissimov says that the stock-to-flow model has been extremely accurate at anticipating Bitcoin’s future price action as a direct result of the supply shock it experiences following each halving.
The price of Ethereum (ether) has hit a new all-time high, bucking broader crypto market trends to outperform Bitcoin. It is the third time that it has reached a new peak, pushing its overall market value is now $322 billion – roughly one third of Bitcoin’s market cap. Konstantin Anissimov adds that Ethereum has shown that it has broken free from the dominance effect of Bitcoin. Investors are particularly excited as the gas fees in the network hit three-month lows according to on-chain data, restoring the overall attractiveness of the network.
Ether, the world’s second-largest cryptocurrency, rose to a record high as the rally in digital assets continues to broaden beyond Bitcoin. The digital token for the Ethereum network gained 6.2% and reached as high as $2,144 in the beginning of April. It has nearly tripled this year, and first topped $2,000 briefly on an intraday basis in February. “The latest backing from Visa Inc. appears to be giving the bulls a new reason to persist in their stride,” said Konstantin Anissimov.
The price of Ripple’s XRP token has surged by over 80% over the first week of April, reinvigorating bullish sentiments across the board. Despite the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), the price of Ripple’s XRP token has nearly doubled in only 24 hours, reaching over $1. Notably, this is the first time XRP has broken above $1 since March 2018, and the overall bullishness suggests its all-time high of nearly $4 is could yet again on the horizon, notes Konstantin Anissimov.
Bitcoin (BTC) has recently broken above the $60,000 psychological level. This is the highest point reached by the largest cryptocurrency since March 15 when BTC fell to $53,000 per coin. The virtual currency has pushed other altcoins higher. Konstantin Anissimov explains that the next logic level for Bitcoin would be to reach $61,000. However, if it gets rejected, the price could move to $56,000 before continuing higher.
This month was marked by two prominent ATHs of the most traded cryptocurrencies: Bitcoin and Ethereum. But, as usual, their bullish path was rather a crazy ride than a victorious march. If you want to dive deeper into the statistics and causal relationships, here is our April’s pick of the market analytics.
- Bitcoin and Ethereum leads global crypto market surge in search for new ATHs
- Bitcoin and Ethereum strives to maintain support at key levels
- Bitcoin and Ethereum exhibits resilience as bulls mount pressure to break key resistance levels
- Crypto analysts say ‘not a bubble’ even as Bitcoin flirts with $60,000
- Bitcoin price struggles to reach $60k
- Aurus Interview #3 ft. CEX.IO – Konstantin Anissimov
- Pound Sterling technicals: GBP/EUR, GBP/USD rise In tandem with the UK vaccination rates
- Bitcoin falling back toward support level as Ethereum fights for balance
- Call for a $3,000 Ethereum emerges on wall street exposure, major upgrade
- Bitcoin hits a new ATH at $62.6k, predictions see it go up to $400k by 2022
- Ether hits record amid upgrades, then succumbs to a crypto malaise
- Ethereum hits new ATH, altcoins gain, Bitcoin still consolidates
- Bitcoin price crashes over the weekend: still no recovery
- Bitcoin price: crypto could surge again as ‘accurate’ prediction model hints ‘midway dip’
- Bitcoin is back up after a five-day slump
- Bitcoin price recovers from last week’s drop, but a resistance keeps it from going back up
- Bitcoin and Ethereum price seeks to recover lost grounds after market’s flash crash
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Your CEX.IO Team