$25M in DeFi Loans Liquidated as Ether Price Falls

$25M in DeFi Loans Liquidated as Ether Price Falls

Decentralized finance (DeFi) lending platforms liquidated some $25 million in assets Monday as the price of ether plummeted as much as 15% to $1,655 before somewhat rebounding, according to the CoinDesk 20. That’s the highest amount in three months since Nov. 25 saw $93 million in liquidations.

As BNB Price Grows, Will the Binance Smart Chain Overtake Ethereum?

As BNB continues to gain popularity, it seems that a growing number of analysts are pointing to the Binance Smart Chain (BSC) as a serious threat to the Ethereum network. Citing faster and cheaper transactions, these analysts believe that the BSC could overtake Ethereum as the ‘backbone’ of the decentralized finance (DeFi) ecosystem.

This increase in user activity has been reflected in the price of the Binance token (BNB), which has continued to rally as the Binance Smart Chain continues to rise in popularity. BSC, which was launched in September of 2020, acts in parallel to the Binance Chain. BSC allows for smart-contract functionality and provides a staking mechanism for BNB tokens.

According to data from CoinMarketcap, BNB surpassed Polkadot to become the third-largest cryptocurrency by market cap on Friday. BNB went on to hit a new all-time high on Saturday, with a price above $342. At press time, BNB was holding strong at $271.

”If You Want More Users for Your Dapp, You Need to Be on #BSC Now.”

As the BSC ecosystem continues to grow (and the price of BNB along with it), BSC has become the chain of choice for a growing number of DeFi protocols.

Indeed, a handful of projects have left Etheruem in favor of BSC, including Value DeFi and yield aggregator, Harvest Finance. Binance Chief Executive, Changpeng Zhao has encouraged projects to migrate to BSC since the chain was launched in the fall. However, as BNB has continued to grow over the past week, he has taken to Twitter with renewed enthusiasm.

On Saturday, February 20th, Zhao commented that: “there are almost 2x more transactions on #BSC than on ETH. If you want more users for your Dapp, you need to be on #BSC now.”

There are almost 2x more transactions on #BSC than on ETH. If you want more users for your Dapp, you need to be on #BSC now. pic.twitter.com/ZYnbFOVysc — CZ 🔶 Binance (@cz_binance) February 18, 2021

“#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC,” he wrote on Monday, February 22nd.

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#BNB started as a token on #ETH, but maybe #ETH will end up as a token on #BSC. Restricting comments due to the provocative joke. 😂 https://t.co/jmIr3Xbi6p — CZ 🔶 Binance (@cz_binance) February 22, 2021

”Have an Infinite Mindset.”

However, he encouraged Ethereum and BSC community members to get along with one another. “For those holding ETH, no need to attack #BSC. We together make the industry bigger. ETH price did not drop. It increases together with #BNB. Have an infinite mindset.”

A number of other platforms that were already hosted on the BSC platform have seen positive movement as a result of the growth of the BSC. For example, Venus, which Cointelegraph describes as “an algorithmic money market and synthetic stablecoin protocol designed specifically for BSC,” has grown significantly along with the BSC. The Venus token (XVS) has grown more than 2900% since its October launch, sitting at $75.37 at press time.

Moreover, PancakeSwap (CAKE), another BSC-based DeFi project, has seen massive growth since its inception on the Binance Smart Chain last autumn. CAKE was trading at roughly $1.40 when it launched in late September; today, that figure is up to $15.23. Furthermore, PancakeSwap is listed as the third-largest automated market maker in the DeFi space, following behind Uniswap and Sushiswap.

”DeFi Protocols Are Increasingly Chain-Agnostic.”

Why is BSC proving to be such a strong contender for an Ethereum replacement of sorts? A number of analysts say that it all comes down to cost and speed. As Ethereum has seen fees increase and transaction speed slow down with the growth of traffic on the network, DeFi developers have begun to look elsewhere.

A software update known as Eth2.0 is already underway to address the scalability issues on the Ethereum network. However, with a launch date that is months (or even years) in the future, some analysts believe that Eth2.0 may be too little, too late.

A spokesperson for Binance told Cointelegraph that: “feedback we have heard is the DeFi protocols are increasingly chain-agnostic. The rapid growth of BSC shows the users prefer lower transaction fees. BSC also provides a variety of assets, many of which are not available on DeFi protocols on Ethereum.”

Ethereum, Litecoin, and Ripple’s XRP – Daily Tech Analysis – February 22nd, 2021

Ethereum

Ethereum rose by 1.07% on Sunday. Partially reversing a 2.17% fall from Saturday, Ethereum ended the week up by 7.34% to $1,935.57.

A mixed start to the day saw Ethereum fall to an early morning intraday low $1,885.00 before making a move.

Steering well clear of the first major support level at $1,804, Ethereum rallied to a late intraday high $1,976.72.

Falling short of the first major resistance level at $2,034, Ethereum eased back to end the day at sub-$1,940 levels.

At the time of writing, Ethereum was down by 0.96% to $1,917.05. A mixed start to the day saw Ethereum rise to an early morning high $1,938.95 before falling to a low $1,909.49.

Ethereum left the major support and resistance levels untested early on.

For the day ahead

Ethereum would need to move back through the pivot level at $1,932 to support a run at the first major resistance level at $1,980.

Support from the broader market would be needed, however, for Ethereum to break out from Sunday’s high $1,976.72.

Barring an extended crypto rally, Sunday’s high and the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Ethereum could retest resistance at $2,000 before any pullback. The second major resistance level sits at $2,024.

Failure to move back through the $1,932 pivot would bring the first major support level at $1,888 into play.

Barring an extended sell-off, however, Ethereum should steer clear of the second major support level at $1,841.

Looking at the Technical Indicators

First Major Support Level: $1,888

Pivot Level: $1,932

First Major Resistance Level: $1,980

23.6% FIB Retracement Level: $1,528

38.2% FIB Retracement Level: $1,251

62% FIB Retracement Level: $804

Litecoin

Litecoin rose by 0.22% on Sunday. Following a 4.02% slide on Saturday, Litecoin ended the week up by 6.37% to $227.54.

A mixed start to the day saw Litecoin rise to an early morning intraday high $233.95 before hitting reverse.

Falling short of the first major resistance level at $244.09, Litecoin fell to a mid-morning intraday low $220.25.

Story continues

Steering clear of the first major support level at $213.17, Litecoin revisited $230 levels before easing back.

At the time of writing, Litecoin was down by 0.98% to $225.31. A mixed start to the day saw Litecoin rise to an early morning high $227.72 before falling to a low $225.00.

Litecoin left the major support and resistance levels untested early on.

For the day ahead

Litecoin would need to move through the $227.25 pivot level to support a run at the first major resistance level at $234.24.

Support from the broader market would be needed, however, for Litecoin to break out from Sunday’s high $233.95.

Barring an extended crypto rally, the first major resistance level and resistance at $235 would likely cap any upside.

In the event of an extended breakout, Litecoin could test resistance at $250 before any pullback. The second major resistance level sits at $240.95.

Failure to move through the $227.25 pivot level would bring the first major support level at $220.54 into play.

Barring an extended sell-off, Litecoin should steer clear of sub-$210 levels. The second major support level at $213.55 should limit the downside.

Looking at the Technical Indicators

First Major Support Level: $220.54

Pivot Level: $227.25

First Major Resistance Level: $234.24

23.6% FIB Retracement Level: $191

38.2% FIB Retracement Level: $159

62% FIB Retracement Level: $108

Ripple’s XRP

Ripple’s XRP rallied by 6.47% on Sunday. Partially reversing a 9.33% slide from Saturday, Ripple’s XRP ended the week down by 8.09% to $0.54515.

Tracking the broader market, Ripple’s XRP fell to an early morning intraday low $0.50387 before finding support.

Steering clear of the first major support level at $0.4347, Ripple’s XRP rallied to a late morning intraday high $0.55839.

While falling short of the first major resistance level at $0.5865, Ripple’s XRP broke through the 23.6% FIB of $0.5320.

A late pullback saw Ripple’s XRP briefly fall back through the 23.6% FIB before wrapping up the day at $0.54 levels.

At the time of writing, Ripple’s XRP was down by 1.23% to $0.53843. A mixed start to the day saw Ripple’s XRP rise to an early morning high $0.54687 before falling to a low $0.53458.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead

Ripple’s XRP will need to avoid a back fall through the $0.5358 pivot level to bring the first major resistance level at $0.5677 into play.

Support from the broader market would be needed, however, for Ripple’s XRP to break out from Sunday’s high $0.55839.

Barring an extended crypto rally, the first major resistance level and resistance at $0.57 would likely cap any upside.

In the event of an extended rally, Ripple’s XRP could test resistance at $0.60 before any pullback. The second major resistance level sits at $0.5903.

Failure to avoid a fall back through the $0.5358 pivot would bring the 23.6% FIB of $0.5320 and the first major support level at $0.5132 into play.

Barring an extended sell-off, however, Ripple’s XRP should steer clear of sub-$0.50 levels. The second major support level sits at $0.4813.

Looking at the Technical Indicators

First Major Support Level: $0.5132

Pivot Level: $0.5358

First Major Resistance Level: $0.5677

23.6% FIB Retracement Level: $0.5320

38.2% FIB Retracement Level: $0.4632

62% FIB Retracement Level: $0.3521

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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