It’s already Week 34 of 2020 and we are back with another selection of top 3 cryptocurrency projects that have the greatest potential for major product improvements and/or price movements. This week, the world’s first crypto tops our list again.
1. Bitcoin (BTC)
Although we believe that Bitcoin doesn’t need much introduction, here is a quick summary of important information. The world’s pioneer cryptocurrency was launched by a pseudonymous figure named Satoshi Nakamoto in 2009 and has a capped supply of 21 million coins. The decreasing miner block rewards makes the cryptocurrency scarcer with time, ensuring a deflationary nature.
Several reasons to Why You Should Keep an Eye on Bitcoin this Week
Bitcoin has challenged the $12,000 resistance level three times in a month. A few times the price even went past $12,000, at least on some exchanges, but the price increase was short-lived, and Bitcoin always quickly returned to sub $12,000 levels. On August 17, however, Bitcoin surged above $12,000 with greater confidence, indicating a higher likelihood that the price will stay in this range for a longer period. Furthermore, the price of Bitcoin has et a new high in more than a year by surpassing its valuation from July 10, 2019.
Nevertheless, Bitcoin dominance is lower that what we are used to. In fact, the growing popularity of altcoins, especially those from the DeFi sector has pushed BTC dominance under 60%. With BTC dominance currently at 58.3%, Bitcoin’s market share has reached the lowest percentage since June 2019. However, if (or should we say when), the altcoin season comes to an end, investors will likely flee to stablecoins (USDT) and Bitcoin. Even in case of an overall bearish market, Bitcoin would probably lose some of its USD denominated value, but it would strengthen its position among other cryptocurrency and again increase its dominance. Some analysts believe that such a readjustment might even be a necessary step before Bitcoin can reach towards a new ATH price.
Another argument indicating that the bullish trend might continue over the course of a few more weeks is the correlation with traditional markets. While Bitcoin’s price has been largely independent prior to March 2020, it has since been showing a higher correlation with the S&P 500 index, gold and stock markets in general. And the stock market is not cooling off just yet, in fact many indexes are nearing their ATHs, likely due to trillions of USD being pumped into the system by governments all over the world.
Furthermore, Bitcoin is getting recognized as a great hedge against inflation by individual investors as well as several big players in the financial industry.
According to TradingView, Bitcoin and Tesla’s Stock (TSLA) are two of the most viewed assets by the US investors and cryptocurrencies are especially popular in the West Coast states of California, Washington, and Oregon. A similar insight was shared by Binance CEO Changpeng Zhao, who tweeted:
Naturally, investors are not only viewing the assets, but many of them who are taking an interest into Bitcoin are also investing. Grayscale, the biggest cryptocurrency asset manager, has recently aired a TV commercial advertising its cryptocurrency products. The 30-second TV ad reportedly resulted in more than $217 million poured into Grayscale’s Crypto Trusts.
Even the very vocal Bitcoin critic and a well-known investor Warren Buffet appears to have shifted his investment strategy. After years of downplaying the value of gold, Bitcoin and other stores of value, while boasting about the banks’ future prospects at the same time, he has gone completely against his investment mindset in Q2, as his Berkshire Hathaway has sold pretty much all of its bank stocks and increased its exposure to gold.
Given the trillions that have been printed as a result of the COVID-19 pandemic, his analysts must have figured out the obvious – that the inflation is inevitable. Then someone from his team likely suggested that gold is a great inflation hedge asset to put in your portfolio, so that is what Buffett did, despite it being completely against his values. Anthony Pompliano wrote:
“In fact, the most technologically innovative business that Berkshire is invested in (Apple) has been their best performer — shocker! When your portfolio is being crushed this bad, it forces people to re-evaluate their strongest held beliefs.”
But guess which other asset is a hedge against inflation? Yep, you guessed it – Bitcoin! Just ask Paul Tudor Jones, Pompliano noted:
“Warren Buffett and Berkshire Hathaway have chosen to gain exposure to gold in the face of potential inflation and Paul Tudor Jones chose to get exposure to Bitcoin because it is likely to be the “fastest horse.” So what exactly is the difference between gold investors and Bitcoin holders?”
Last but not least, business intelligence company MicroStrategy has recently announced that it had invested $250 million into Bitcoin as a hedge considering the current macroeconomic landscape. The firm cited financial stimulus programs and quantitative easing as some of the factors that led to its big bet on BTC.
2. Tron (TRX)
TRON is a project that aims to develop a free content entertainment platform that would utilize the blockchain and distributed storage technology. TRON users are able to easily publish, store, and own data, while subscription and content distribution is handled by the decentralized system.
TRON to Launch JustSwap DEX This Week
This week, the Tron Foundation is set to strengthen its push into DeFi waters with the launch of its JustSwap DEX on August 18. JustSwap will feature TRC20 token trading while also allowing users to earn trading fees and mining rewards. Additionally, TRX holders will be able to take out USDJ loans using their TRX tokens as a collateral. The roll-out of the JustSwap DEX is a very important event for the TRON network that could have significant effects on its ecosystem.
3. Swipe (SXP)
Swipe is a crypto debit card issuer that allows its users to easily spent their cryptocurrencies for everyday purchases. The Swipe Token is the project’s utility token.
Multiple Airdrops Scheduled for This Week
SXP holders will be able to benefit from a Swipe Governance Token (SGV) airdrop that is scheduled for this week. The Swipe’s team will distribute 1 SGV for every 100 SXP owned on August 17, 00:00 UTC.
The airdrops go both ways, though. Following an acquisition by Binance, the company is also going be airdropping $16,000,000 worth of SXP Tokens to holders of the exchange’s native BNB token. The tokens will be delivered on a weekly basis with the first batch of 4,000,000 SXP going out to BNB holders who keep their tokens on Binance already on August 17. Binance describes the details of the airdrop program here. Additionally, Swipe has recently conducted its 2nd quarterly token burn, which saw 215,817 SXP tokens ($396,120) destroyed.
