Monat: Februar 2023

Burning $2 Billion Worth of BUSD Causes No Adverse Reactions

• Binance recently burned $2 billion worth of BUSD on the BNB Chain and released an equivalent amount on the Ethereum [ETH] network.
• After the burn, BUSD traded above its peg at $1.02 as of writing and had a relatively high transaction volume.
• The total BUSD held in exchange reserves has decreased by over 21% or $3 billion since 13 February 2021.

Binance Burned $2 Billion Worth of BUSD

On 22 February, Binance burned $2 billion worth of its own stablecoin, BUSD. This was done to maintain the peg at $1 for the token despite issues with regulatory authorities such as the Securities and Exchange Commission (SEC).

Price Maintains Above Peg After Burn

After being burned, the price of one BUSD went a bit over its peg as its reserve on Binance continued to reduce. However, despite this, it maintained above the peg at a value of $1.02 as of writing due to high trading volumes for this asset.

Total Reserve Decreases Despite High Volumes

Despite a relatively high trading volume for this asset, Paxos‘ announcement that it would stop minting more tokens caused a decrease in the total amount held in exchange reserves from around 14.3 billion down to 10.7 billion – representing an overall decline of over 21%.

Binance USD Receives SEC Attention

Issues with regulatory authorities such as the SEC have made discussions about Binance USD very popular lately. Despite this however, work with this stablecoin is still continuing as normal according to official accounts from within the company itself.

Conclusion

     Overall, due to recent events regarding both regulatory authorities and burning activities by Binance itself, discussions about their own stablecoin are becoming more popular but work with it proceeding nonetheless while maintaining prices above its peg despite decreases in overall reserve amounts held by exchanges

Whales Move the Market: Polygon (MATIC) Price Soars 75% in 2021

• Polygon (MATIC) has seen a dramatic increase in price since the beginning of the year and recently some whale addresses were observed buying more of the token, likely driving up the price.
• On-chain data shows that investors holding between 10 and 100 million MATIC have purchased 55 million more for almost $60 million.
• The 30-day active address measure of Polygon revealed that the number of active addresses on the network had decreased, yet holders are still seeing profits thanks to an increase in Market Value to Realized Value (MVRV) ratio.

Overview

Recently, there has been a rise in the price of Polygon [MATIC], and this increase appears to have been caused by the activity of some whale addresses. What are some of the likely reasons behind the actions of these whales, and how could the price of MATIC be further impacted by their actions?

Price Surge

A daily timeframe chart shows that Polygon (MATIC) has been upward over the past few trading days. Up about 4% from its opening price, it was trading at about $1.38 as of this writing. Based on the increase seen throughout the trading session, MATIC’s price rose by over 16% over the preceding three days. Even more impressive was that its current upswing meant it had increased by more than 75% since the beginning of the year. The extension of Bollinger band, along with present price movement suggested that MATIC is unstable and short Moving Average offered support line for it. According to Relative Strength Index, asset was in bull trend and on verge to hit overbought region .

Supply Distribution Increase

When analyzing Polygon (MATIC) on-chain data, it could be seen that institutional investors have been buying more of token as late. Per Alicharts investors holding between 10 – 100 million MATIC have purchased 55 million more for almost 60 Million USDT worth amount supply distribution statistic indicated an increase 11%. It was also noted that delivery supplies began to increase volume in February .

Active Addresses Decline

However a look at 30-day Active Address measure showed a decrease in number active addresses on network; even though there were almost 2.7 million active addresses as this writing figure showed an apparent fall .The price increase had however provided Poygon (MATIC) holders with some profits during same period despite fall number active addresses; As time writing Market Value Realized Value (MVRV) ratio indicated MATIC 1795%.

Conclusion

The activities from whale accounts may reflect investor confidence inPolygon’s future prospects which sparked multiple purchases from large holders leading to surge in its prices .Also ,the declinein Active Addresses indicates profit taking behaviour amongst investors resultingin raising funds for future Investments or potential arbitrage opportunities To sumup these events suggest optimistic outlookfor future growth prospectsofPolygon(MATIC).

Tether Earns $700M Profit, Eliminates Exposure to Commercial Paper

• Tether recently published an independent attestation report from accounting giant BDO Italia, which revealed that the USDT issuer had eliminated its exposure to commercial paper as of 31 December 2022.
• CTO Paolo Ardoino claimed that the company had made a profit of $700 million in the fourth quarter.
• According to the report, U.S. Treasury bills were the largest holding in Tether’s reserves at $39.2 billion, and Money Market Funds were second at $7.3 billion.

Tether Publishes Attestation Report

Tether recently published an independent attestation report put together by accounting giant BDO Italia. The report revealed that the USDT issuer had eliminated its exposure to commercial paper as of 31 December 2022.

Profit Claimed by Tether CTO

Paolo Ardoino, the Chief Technology Officer at Tether, informed his followers on Twitter that his firm had turned a net profit of $700 million in the fourth quarter of 2022. Furthermore, the USDT issuer had successfully eliminated its exposure to commercial paper.

Reserves Overview

The consolidated reserves report as of 31 December 2022 revealed that the firm’s assets exceeded its liabilities by over $930 million. The consolidated total assets stood at $67.04 billion, against consolidated liabilities totaling $66.08 billion. According to a statement by Tether, their reserves are extremely liquid with no exposure to commercial paper and US Treasury bills being their largest holding in reserve at 39 2 billion and money market funds second with 7 3 billion worth of holdings

Reduction in Secured Loans

Interestingly, it was also noted that there was a 300 million reduction in secured loans between Q3 and Q4’s consolidated reports which could explain why they saw such a large drop in total asset value between these two reporting periods

No Mention Of Profit Claim By CTO

Surprisingly enough, despite Ardoino’s claims about profits made in this period not being mentioned anywhere within BDO Italia’s attestation report leaving many questions unanswered about where this figure came from and how true it is

MATIC Price Soars Over 28% in 2023, Nearing $10B Market Cap

• MATIC is Polygon’s native token with key uses within the ecosystem. It is used for network fees, governance, and staking.
• MATIC has seen a 28% price appreciation since the start of 2021 and has a market capitalization of $10,040,236,333.
• The third quarter of 2022 saw a 180% increase in the number of MATIC’s active addresses with total transactions coming in at 2 billion.

Overview of MATIC Token

Polygon is a Layer-2 scaling solution aimed at bringing mass adoption to the Ethereum platform. Its native token, MATIC, has several key uses within the ecosystem including powering the protocol through a gas-based mechanism used to pay network fees, voting on Polygon Improvement Proposals (PIPs), and providing security through staking. The supply of MATIC is limited which adds to its value.

Performance and Adoption

MATIC was trading at $1.22 at press time and had seen an 8.66% increase in 24 hours prior to this time period. The Polygon network recently underwent a hard fork upgrade that addressed issues such as spikes in gas fee costs and disruptive chain reorganizations. Additionally, its popularity has been driven by its use case as a Layer 2 scaling solution for Ethereum providing faster transactions and increased scalability for dApps running on Ethereum which often suffer from high transaction fees or slow transaction speeds otherwise.

Third Quarter Statistics

A report published by Blockchain analytics firm Messari shows that the third quarter of 2022 saw a 180% increase in the number of MATIC’s active addresses with total transactions for this period coming in at 2 billion showing increased usage across users and developers alike.

Partnerships

Polygon’s partnership with Warren Buffet-backed Nubank will provide financial services to Brazilians while allowing them access to decentralized finance (DeFi) applications built on Polygon’s platform giving it further exposure across new markets globally expanding its user base significantly adding further value to its token holders with more demand expected over time due to this expanded reach.

Future Prospects

The Polygon team is focused on performance, user experience, and security making it well-positioned to play a major role in the growth of Ethereum’s ecosystem as they continue working towards bringing more users onto their platform meaning that over time we can expect MATIC to grow even further as adoption increases amongst developers and users alike leading many analysts predicting long term optimism around this token despite short term volatility being present throughout cryptocurrency markets as always expected over different timescales depending on macroeconomic conditions globally affecting all digital assets‘ prices similarly or differently dependent on their individual use cases or features providing them advantages or disadvantages over other competing projects seeking similar areas worth investing into accordingly .