Triaconta Weekly #199
The following topics will be addressed in this weekly.
- Bundle performance
- New coins
Unfortunately, the decline continues in the crypto and traditional markets Institutional investors fear a lot of rate hikes this year and, according to the FED, inflation in America has only gotten worse. With 7% inflation, it’s hard to imagine people saving more if interest rates are raised 0.5% or 1%. DeFi, in particular, is significantly lower due to its greater correlation with the traditional money market. This also means that this sector could make a strong comeback if the market picks up again.
A big correction this week, but no panic for the time being. Despite this serious correction, there is still a long-term bullish market. We are currently down about 46% from the top just like last summer (-54%) in what went on to become the best crypto year to date. Past results are unfortunately no guarantee for the future.
1 Month: -30.13% | 7D: -9.32% | 24H: +0.30%
1 Month: -36.33% | 7D: -17.85% | 24H: -0.32%
1 Month: -39.63% | 7D: -15.86% | 24H: +0.06%
1 Month: -37.71% | 7D: -20.56% | 24H: -1.26%
The crypto market is constantly evolving. Triaconta monitors this market daily and decides approximately every two months whether the coins in all the standard bundles offered still fit the current market conditions and changes the composition of the bundle if necessary. Usually these are limited adjustments of one or two coins based on our observed structural changes in, for example, market capitalization, turnover, investments, user numbers or activity on the network.
Many Triaconta customers have chosen to directly copy our adjustments in their own bundle with a revision subscription and thus effortlessly follow the market. Next week, the changes below will therefore also be implemented in all bundles with automatic revision.
In the Top30 bundle, PancakeSwap (CAKE) and EOS (EOS) are replaced by Near Protocol (NEAR) and Fantom (FTM). PancakeSwap and EOS have recently fallen in popularity and are no longer good representatives of the Top 30. PancakeSwap is a successful project and will remain part of the DeFi bundle. Near Protocol is a fast growing network and can be bought for a relatively low price thanks to the current market sentiment. We had already added Fantom to the DeFi bundle in October last year and this week the coin rose to third place in the ranking of DeFi ecosystems and thus a deserved place in the Top 30.
In the PennyStock bundle, Siacoin (SC) is replaced by the Spell token (SPELL). Siacoin is a decentralized cloud storage platform that unfortunately seems to be surpassed by more recent Web3 solutions such as Filecoin and Theta. The new addition Spell token is a promising DeFi solution that is currently trading for less than 1 penny.
In the DeFi bundle, Compound (COMP) is replaced by Near Protocol (NEAR) .In addition to pure DeFi solutions, this bundle also contains the most popular platforms for DeFi applications such as Terra and Avalanche. To this we now add the most user-friendly platform Near Protocol which has shown tremendous growth in this segment since the launch of the first Rainbow Bridge (ETH<>NEAR). With this bridge, all assets on Ethereum – which now run into the tens of billions – are fully usable in NEAR applications.
NEAR Protocol (NEAR)
NEAR is a layer-one proof of stake blockchain launched on April 22, 2020 and designed as a cloud computing platform for distributed applications. NEAR not only has great advantages in terms of scalability, but above all puts the user first. Near Protocol won the people’s choice Crypto Award at the end of 2021. Applications on this blockchain are more like the web applications you are already used to using. You no longer have anything to do with the underlying blockchain technology and NEAR has, for example, human-readable addresses instead of a long series of numbers and letters as with an Ethereum wallet.
Near uses self-developed “Night Shade” technology to realize a very high transaction capacity. It is a sharding technique that allows parallel transaction processing of up to 100,000 transactions per second with acceptance within 1 second at almost zero cost. The capacity of the network continues to grow as more nodes join.
Near started last year with 1 billion tokens and adds 5% tokens every year that go 90% to the validators as a reward and 10% to the Near Foundation’s treasury so that it can continue to build on the protocol. Erik Trautman, an entrepreneur with Wall Street experience, founded Near with Illia Polosukhin, former Google and Alexander Skidano, former Microsoft. Application developers are helped by existing modules with which projects can be built quickly. Due to a smart earning mechanism for new projects, there is less reason for these projects to come up with a new own token.
The price of the NEAR token has risen very quickly since its inception to an all-time high just above $18. In the recent decline, the price has more than halved to €8.50 which seems like a good time to get in. Near belongs to a group of fast growers that are collectively known as FOAN. Fantom, Harmony, Cosmos, and Near have been beating heavyweight Ethereum for some time in growth rates on key points like user numbers, activity, and number of applications.
Spell Token (SPELL)
The names all seem to come from a fantasy card game, but this platform is a serious DeFi player. Spell token is both the reward and governance token of Abracadabra.money, a true multi-chain DeFi platform available on Ethereum, Avalanche, Fantom and Arbitrum.
The lending platform allows users to place their other cryptocurrencies as collateral for a loan in Magic Internet Money (MIM), a stablecoin linked to the value of the dollar. You pay a low interest rate for the loan, but the MIM earned can be converted on the platform into USDT, DAI or USDC and can then be used anywhere in other projects or on exchanges to generate revenue or buy a car or a house. There are also options to get additional revenue within the platform by providing liquidity in the swap pools for various cryptocurrency pairs or locking the earned MIM for interest for an extended period of time. With enough Spell tokens locked into the contract, you become a wizard and you can participate in the decision-making process of the project.
Compared to traditional DeFi loan options, users on Abracadabra have more control and flexibility over the risk they take with their collateral. Cryptocurrency locked in one lending market is not affected by cryptocurrency exchange rate fluctuations in another lending market, as each market is separate from the other markets.
There are 81 billion Spell tokens in circulation for a total of 196 billion Spell tokens with 30% of the tokens being claimed by the team. They are allowed to sell the tokens for a limited time in the next 4 years, but they are not obliged to do so. 63% of the tokens are reserved to be used as a reward for the commitment and risk of capturing other cryptocurrencies on the platform. Spell will halve the reward for this every year for the next 10 years. At the moment 350 million Spell tokens per week are put into circulation. Only 7% of the tokens were sold at launch via UniSwap and SushiSwap.
Price predictions for the Spell token range from 3 to 9 cents by the end of 2022. When the team has sold their 30% after four years, it is hoped that by 2025 the price can exceed the magical $1 limit if the project gets enough users and the cryptocurrency market continues to grow as it has until now. Decentralized stablecoins such as MIM and Terra USD are currently gaining ground over the major centralized stablecoins USDT and USDC. As with some other PennyStock tokens, this is a project with a somewhat higher risk and chance of a high return.