Triaconta Weekly #174
The following topics will be addressed in this weekly.
- Bundles performance
- NEW: PancakeSwap and Celer Network
Bundles that follow the market with their composition do better. Stay up to date with your Bundle and follow our revisions. This can be done automatically or manually via the portal.
Polygon (MATIC) was added to Penny Stock in September 2019 for €0.01. In less than two years, the exchange rate rose above one euro. Although we see a bright future for Polygon, the coin no longer fits the Penny stock bundle. Due to the high price (€0.91), Polygon is being replaced by another real penny stock (€0.02) with a lot of potential: Celer Network (CELR). In the Top30, based on market share, there is a new place for Polygon (MATIC), which is therefore promoted from the Penny Stock bundle to the Top30 bundle.
Newly available at Triaconta and immediately added to the Top 30 is PancakeSwap (CAKE). This token has become at least as popular in the DeFi market as pancakes in the Netherlands. In the Top 30, we say goodbye to NEM and Synthetix, the latter still remaining part of the DeFi bundle.
In the Defi bundle we also can no longer ignore PancakeSwap (CAKE) and unfortunately have to say goodbye to the old decentralized exchange 0X (ZRX).
One year after Triaconta, Grayscale Investments, the large American cryptocurrency asset manager, is also starting a DeFi Fund. The fund is weighted and opts for 50% Uniswap, 10% Aave, 9% Compound plus smaller parts Curve, MakerDao, SushiSwap, Synthethix, Yearn Finance, UMA protocol and Bancor Network Token. The Grayscale fund is only available to institutions and accredited investors and the Triaconta DeFi bundle is available for everyone.
1 Month: -1.98% | 7D: +4.15% | 24H: +1.34%
1 Month: -1.26% | 7D: +1.30% | 24H: +1.29%
1 Month: -7.08% | 7D : +1.55% | 24H: +1.87%
1 Month: +11.72% | 7D: +2.24% | 24H: +1.87%
NEW : PancakeSwap
Founded in 2020, PancakeSwap has grown into a very popular decentralized cryptocurrency exchange with a listing of more than 1500 coins. What Uniswap (UNI) does on the Ethereum network, PancakeSwap (CAKE) does on the Binance chain. Uniswap is older and therefore a bit bigger, but there already have been days when PancakeSwap had more volume than UniSwap. Fortunately, as for Coca-Cola and Pepsi, there is room for both in the DeFi market.
How does swapping work?
On a normal cryptocurrency exchange (and also the stock exchanges), order books are used. Buyers and sellers place in the order book the desired price and quantity for which they want to buy or sell the coin. In order for a buy/sale to take place, a buyer must find a seller and vice versa. The problem with this is that there is sometimes a big difference between the price at which people want to buy and the price at which others want to sell. And there is not enough of some coins on a stock exchange, especially if the coin suddenly becomes popular. We call that lack of liquidity.
Swapping has become another way of trading tokens and largely solves this liquidity problem. Users, known as Liquidity Providers, add an equal value of two tokens to a pool, thus creating a market. A pool is a virtual container of tokens that can be exchanged against each other. In exchange for making their tokens available, they earn a small fee on the transactions that take place in their pool.
If a buyer/seller wants to trade a token for another token, this is done immediately at the automatically calculated price. That price is continuously determined by the ratio of the number of coins placed from one token to the number of coins from the other token in a given pool. Through the swap, some of one token is withdrawn from the pool by the trader and some of the other token is added. This changes the ratio and therefore automatically the price. An added benefit of swapping for traders is that they don’t have to put their tokens at risk on the exchange while waiting for a buyer/seller with their price. They can directly swap coins for other coins from their own personal wallet.
PancakeSwap also did not escape the general decline in the crypto market and tumbled almost 80%. However, the decentralized market is booming and PancakeSwap is benefiting from the general increase in cryptocurrency trading on the Binance chain. The token traded at €37 on April 30 this year and has repeatedly found support around €11. The only thing this coin needs to increase significantly in price is more customers. The best indication for the near future is the development of the social media volume of CAKE as measured by Santiment. The social media volume shows the number of mentions of the digital token on 1000 crypto social media channels, including Telegram groups, crypto subreddits, discussion groups and merchant chats. The stat has just hit its all-time high in 2021 for CAKE, much higher than its previous high in February and a break from its previous downtrend.
NEW: Celer Network
Celer Network is not a blockchain, but a system for drastically increasing the speed and scalability of an existing blockchain. Although everyone is happy with the security and reliability of blockchain technology, there are also a number of drawbacks in speed and scalability. The solution is increasingly found in what are called 2nd-layer solutions. Transactions are handled quickly and in huge quantities outside the blockchain with liquidity that remains linked to the blockchain itself. These solutions are essential for distributed applications (DApps) and for use as a means of payment.
How does it work?
What makes Celer special is that the platform enables layer-2 scaling for any blockchain. The project provides a solution for all types of blockchains across the crypto market, with multiple blockchains working together to increase the liquidity and reliability of the Celer Network. According to the founders of Celer, there is little future for any proprietary 2nd layer solution that only works for its own blockchain. A network for multiple blockchains provides combined liquidity and increased reliability for the entire network. No more transaction congestion with Celer; low costs for micropayments, zero costs for smart contracts, horizontal scaling through the merging of nodes, an off-chain model for the entire crypto economy and an optimal routing algorithm for transactions. Celer recently also makes connections possible between blockchains and existing 2nd-layer solutions. This functionality (named cBridge v1.0) already enables traffic between Ethereum, Polygon and other EVM-compatible smart contracts on the Binance Smart Chain and will be developed further.
Celer Network operates on multiple blockchains including Polkadot, Ethereum, NEO, Mobi and benefits developers and users of these platforms. Celer Network connects multiple blockchains and smart contracts on other blockchains in a fast and cheap way. Interoperability is the future for the cryptocurrency sector.
There is a maximum amount of 10 billion Celer Network tokens (CELR). The highest price was €0.09 on March 28 this year. Since then, the token has fallen to the support level of €0.02 which was the first high after the launch of this token. With the launch of cBridge and the already existing unique benefits of the Celer network, the downside risk of this token is limited and the upside potential is huge. It makes this token particularly suitable for our Penny Stock bundle.