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Gold long now valid☝️👍Morning traders. After the big gold drop our 15M strategy has presented a long opportunity on gold this morning. This means the sell I covered below in a previous idea comes to a close at a whopping 34:1 RR gain! Entry details are shown on the chart for the new long trade. This a follow trend strategy with a stop loss set. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren.
OANDA:XAUUSDLong
by pow_removetheguesswork
1
+341% profit, only 8.26% drawdown over a year. The humble EMA ⭐The choppy market has us back with a strategy for those that want to limit the downside and beat holding on spot. Remember as a trader you need one solid strategy that makes more than loses. This often has traders overcomplicating things and fishing for complex strategies with novel indicators that ruin their discipline at the end. Yet this strategy proves that even the humble EMA can rack in impressive returns at +341%. The goal of the strategy: 1. Single digit maximum drawdown over the past year - yes this includes recent pullbacks which means beating the market over the past month 2. Easy to track so you have no excuses not to execute correctly and can potentially automate it 3. Beat holding on spot - so make more than 243.01% without leverage (you can include it depending on your risk tolerance, but the strategy has to work without it too). 4. No scalping - we're focusing on swing trading to limit transactional costs WILL POST EVERY POSITION BELOW - will also show how each position was closed: close rule or stop loss The strategy: There was a lot of experimentation with the length of these EMAs (used for their responsiveness to recent prices) and this is the optimal version to fulfil the goals above. Of course you an experiment on your own if you have different ones. On the 1 h chart: 1. Open a position when EMA (25) is crossing up EMA (50) 2. Close the position EMA (25) is crossing down EMA (70) 3. Stop Loss set at 2% (although you can run this strategy without it too and works quite well) All conditions are respected 100% of the time. The results: The strategy profited at +341.03% beating holding by 100%. What's even better is the maximum drawdown is only 8.26% which for a crypto strategy is exceptionally stable. The result was accomplished over 52 position out of which the strategy wins 21. However the average win is at 10.2%, while the average loss is only -1.79%. This is important to know when you execute the strategy to not be thrown off after a cluster of loses. Winning trades are held for almost 8 days, while losing trades are cut after only 1-2 days. This is also connected to the tight stop loss and if you tolerate risk you may try expanding that time. For our purposes that did not fit the goals of the strategy. Lastly, over the past month this strategy performed about 35% better than the market, which means you would be left with plenty of funds at the moment. We consider the set goals achieved. The positions (Open Price, Close Price, Stop Loss, profit, what closed the position): 31/05/2021 13:00 01/06/2021 09:00 20 hours OP 36,777 CP 36,041 SL 36,041 -2% Stop Loss 24/05/2021 18:00 25/05/2021 11:00 17 hours OP 37,668 CP 36,915 SL 36,915 -2% Stop Loss 07/05/2021 14:00 10/05/2021 20:00 3 days OP 56,997 CP 55,858 SL 55,858 -2% Stop Loss 05/05/2021 19:00 06/05/2021 19:00 1 day OP 57,302 CP 56,156 SL 56,156 -2% Stop Loss 30/04/2021 13:00 04/05/2021 05:00 4 days OP 54,656 CP 55,809 SL 53,563 +2.11% Close Rule 26/04/2021 06:00 29/04/2021 20:00 4 days OP 52,535 CP 52,860 SL 51,485 +0.618% Close Rule 08/04/2021 23:00 16/04/2021 10:00 7 days OP 57,916 CP 60,644 SL 56,758 +4.71% Close Rule 05/04/2021 19:00 06/04/2021 15:00 20 hours OP 58,876 CP 57,699 SL 57,699 -2% Stop Loss 26/03/2021 23:00 03/04/2021 22:00 8 days OP 54,383 CP 57,631 SL 53,295 +5.97% Close Rule 24/03/2021 18:00 24/03/2021 20:00 2 hours OP 56,126 CP 55,003 SL 55,003 -2% Stop Loss 17/03/2021 23:00 18/03/2021 21:00 22 hours OP 58,300 CP 57,134 SL 57,134 -2% Stop Loss 07/03/2021 02:00 15/03/2021 13:00 8 days OP 49,122 CP 56,440 SL 48,140 +14.9% Close Rule 01/03/2021 12:00 05/03/2021 00:00 4 days OP 47,722 CP 48,374 SL 46,768 +1.37% Close Rule 01/02/2021 20:00 22/02/2021 16:00 21 days OP 33,838 CP 53,237 SL 33,161 +57.3% Close Rule 01/02/2021 13:00 01/02/2021 17:00 4 hours OP 33,770 CP 33,461 SL 33,095 -0.916% Close Rule 28/01/2021 19:00 29/01/2021 08:00 13 hours 0.74633 BTC OP 32,634 CP 31,981 SL 31,981 -2% Stop Loss 25/01/2021 05:00 25/01/2021 22:00 17 hours OP 33,378 CP 32,710 SL 32,710 -2% Stop Loss 19/01/2021 01:00 20/01/2021 00:00 23 hours OP 36,677 CP 35,943 SL 35,943 -506.16 USDT -2% Stop Loss 13/01/2021 23:00 15/01/2021 16:00 2 days OP 37,204 CP 36,460 SL 36,460 -2% Stop Loss 05/01/2021 19:00 11/01/2021 00:00 5 days 0.68049 BTC OP 33,373 CP 38,150 SL 32,705 +14.3% Close Rule 24/12/2020 23:00 05/01/2021 08:00 11 days OP 23,708 CP 30,818 SL 23,234 +30% Close Rule 22/12/2020 22:00 23/12/2020 12:00 14 hours OP 23,435 CP 22,966 SL 22,966 -2% Stop Loss 12/12/2020 10:00 22/12/2020 01:00 10 days OP 18,433 CP 22,558 SL 18,065 +22.4% Close Rule 06/12/2020 01:00 06/12/2020 14:00 13 hours OP 19,269 CP 18,883 SL 18,883 -2% Stop Loss 28/11/2020 21:00 04/12/2020 23:00 6 days OP 17,673 CP 18,665 SL 17,320 +5.61% Close Rule 16/11/2020 08:00 26/11/2020 05:00 10 days OP 16,236 CP 17,772 SL 15,911 +9.46% Close Rule 03/11/2020 19:00 15/11/2020 20:00 12 days OP 13,741 CP 15,855 SL 13,466 +15.4% Close Rule 30/10/2020 16:00 02/11/2020 13:00 3 days OP 13,550 CP 13,279 SL 13,279 -2% Stop Loss 29/10/2020 18:00 30/10/2020 01:00 7 hours OP 13,584 CP 13,312 SL 13,312 -2% Stop Loss 18/10/2020 07:00 29/10/2020 09:00 11 days OP 11,450 CP 13,124 SL 11,221 +14.6% Close Rule 15/10/2020 20:00 16/10/2020 05:00 9 hours OP 11,521 CP 11,291 SL 11,291 -2% Stop Loss 08/10/2020 15:00 15/10/2020 04:00 7 days OP 10,912 CP 11,379 SL 10,694 +4.28% Close Rule 04/10/2020 15:00 07/10/2020 00:00 2 days OP 10,605 CP 10,600 SL 10,392 -0.0461% Close Rule 01/10/2020 03:00 01/10/2020 17:00 14 hours OP 10,817 CP 10,601 SL 10,601 -2% Stop Loss 24/09/2020 21:00 29/09/2020 18:00 5 days OP 10,627 CP 10,675 SL 10,414 +0.459% Close Rule 14/09/2020 12:00 20/09/2020 18:00 6 days OP 10,470 CP 10,895 SL 10,261 +4.06% Close Rule 09/09/2020 17:00 14/09/2020 01:00 4 days OP 10,240 CP 10,273 SL 10,035 +0.329% Close Rule 28/08/2020 16:00 02/09/2020 12:00 5 days OP 11,529 CP 11,299 SL 11,299 -2% Stop Loss 24/08/2020 05:00 25/08/2020 10:00 1 day OP 11,679 CP 11,599 SL 11,445 -0.681% Close Rule 14/08/2020 00:00 19/08/2020 06:00 5 days 0.87822 BTC OP 11,780 CP 11,711 SL 11,544 -0.581% Close Rule 10/08/2020 02:00 10/08/2020 11:00 9 hours OP 11,851 CP 11,614 SL 11,614 -2% Stop Loss 05/08/2020 11:00 09/08/2020 18:00 4 days OP 11,393 CP 11,527 SL 11,165 +1.17% Close Rule 19/07/2020 23:00 02/08/2020 21:00 14 days OP 9,185.8 CP 11,088 SL 9,002 +20.7% Close Rule 18/07/2020 17:00 19/07/2020 04:00 11 hours OP 9,164.6 CP 9,153.4 SL 8,981.3 -0.122% Close Rule 13/07/2020 00:00 14/07/2020 05:00 1 day OP 9,303.3 CP 9,190 SL 9,117.2 -1.22% Close Rule 12/07/2020 09:00 12/07/2020 14:00 5 hours OP 9,254.4 CP 9,210 SL 9,069.3 -0.479% Close Rule 06/07/2020 08:00 10/07/2020 01:00 4 days OP 9,200.1 CP 9,214 SL 9,016.1 +0.152% Close Rule 05/07/2020 04:00 05/07/2020 22:00 18 hours OP 9,129 CP 8,946.4 SL 8,946.4 -2% Stop Loss 29/06/2020 21:00 01/07/2020 07:00 1 day OP 9,185 CP 9,134.5 SL 9,001.3 -0.549% Close Rule 21/06/2020 08:00 24/06/2020 15:00 3 days OP 9,369.5 CP 9,295.2 SL 9,182.1 -0.793% Close Rule 16/06/2020 04:00 17/06/2020 15:00 1 day OP 9,562.5 CP 9,371.3 SL 9,371.3 -2% Stop Loss 08/06/2020 02:00 11/06/2020 16:00 4 days OP 9,742.6 CP 9,547.8 SL 9,547.8 -2% Stop Loss
Education
by CleoFinance
2
Who's caught the DE30 drop this morning 🙌😀Have we all caught the DE30 drop this morning? The strategy in use has. Entry details are shown on the chart. We're only looking for TP3. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too. Thank you. Darren
OANDA:DE30EURShort
by pow_removetheguesswork
GBPJPY sell vaild - Show of hands who else is 🙌👍It might be bank holiday here in the UK but our script doesn't stop when markets are open. First trade alert of the week is a GBPJPY short. Entry details are shown on the chart. We're only looking for TP3. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too. Thank you. Darren
Short
by pow_removetheguesswork
2
Who's else in GBPUSD sells lets see them hands ✋Entry details are shown on the chart. We're only looking for TP3. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too. Thank you. Darren
Short
by pow_removetheguesswork
2
EURNZD we are now in buys 📈⬆️🤞🏻Entry details are shown on the chart. We're only looking for TP3. I covered the previous sell trade in an idea earlier this week. This trade has now closed for a profit as the 'buy' opportunity has presented. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too. Thank you. Darren
Long
by pow_removetheguesswork
US30 buy currently running. Hands up who's also in buys 🙋‍♂️Entry details are shown on the chart. We're only looking for TP3. This trade has already gone close but we stick to the plan. Lets see how the rest of this trade plays out. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too. Thank you. Darren
ULong
by pow_removetheguesswork
EURGBP makes it 2 out of 2 🤟🏻🤩🎯Quick update on the trade idea covered earlier on today. EURGBP sells closes as TP3 is hit. That makes it 2 out of 2 for this strategy. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too. Thank you. Darren
by pow_removetheguesswork
1
GBPUSD sell hits TP overnight 😍🎯Morning Traders. Couple of choppy trades before seeing this one land overnight. But sticking to a proven plan is key and this pair soon returned to form. Trade history can be seen below this trade idea too for full transparency. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Interested in access to my strategy so you can be in these trades the moment they're valid? Drop me a DM . The stats for this pair are shown below too and this one is a strong perfoming pair for us. Thank you. Darren
by pow_removetheguesswork
PREVIEW : BITCOIN - BTC/USD - 1HBITBAY:BTCUSD The downtrend is currently very strong on BITCOIN - BTC / USD. As long as the price remains below the resistance at 43 838.40 USD, we could look to profit from the bearish rally. The first bearish target is located at 42,142.20 USD. The bearish momentum would be revived by a breakout of this support. The sellers would then aim for the next support located at 40 672.60 USD. Its crossing would then allow sellers to target USD 30,409.80. Be careful, given the strong bearish rally underway, excess could lead to a rebound in the short term. If this is the case, remember that trading against the trend may be more risky. It would seem more relevant to wait for a signal to resume the trend. TRENDS: Short term: STRONGLY DECREASING Bottom line: STRONGLY DECREASING MY GOALS: 42,142.20 USD (-2.70%) 40 672.60 USD (-6.09%) TECHNICAL INDICATORS : 17% up 61% down 22% neutral Analysis STRENGTH : 7.5/10 details: The price of BITCOIN - BTC / USD is 43,312.40 USD. The price is down -0.57% since the last close and was traded between $ 42,392.00 and $ 45,823.40 during the period. The price is currently at + 2.17% of its low and -5.48% of its high. Gaps detects a bearish opening marking the presence of sellers against buyers at the opening but not sufficiently marked to allow the price to record a quotation hole. Technical analysis of BITCOIN - BTC / USD in 1 hour shows a strongly bearish overall trend. 92.86% of signals sent by moving averages are bearish. This strongly bearish trend is supported by the strong bearish signals sent by the short-term moving averages. Indicators detects bullish and bearish signals on moving averages that could impact this trend
BShort
by REDAEL
1
EURCAD short valid🇪🇺🇨🇦✅Afternoon traders. UK dinner time New York getting well under way also and our strategy has presented a trade. Working one of my preferred pairs here EURCAD on the 30M time frame. The strategy is working to a 1:2.8 risk reward ratio and as always back test data is at the foot of the idea. The data shown is based on £10000 starting capital and risking 1% per trade. The backtest data is showing performance for this month only and we have seen an 8% ROI this month alone. For any questions on the the methods and trading plan in use feel free to drop me a message.
Short
by RichScott
Trading Ethereum Profitable: Strategy Example (With Backtest)Ethereum made a new all-time high, rising over 20% from its previous ATH. Let's take a look at how you can trade Ethereum and take advantage of these uptrends. Finding the Trend: To make a successful strategy, we should start by identifying the trend. We can do this with the help of a trend-following indicator that will act as a filter. The MESA can work well here, this particular setup will keep a buy signal as long as the MAMA is above the FAMA. In this example, we have changed the MESA's default values to Fast Limit 0.1 and Slow Limit 0.001. This change made the indicator less reactive to the price and better at finding long-term trends. Entries & Exits We then need an indicator that can find suitable entry points. For this example, we have chosen the MACD. Thus we will only take trades when the MESA displays bullish momentum and when the MACD gives a buy signal. For the exit, you can use a strategy or sell settings. We have chosen to use the MACD again to time our exits. This is because Ethereum's trend is irregular; sometimes, it may be less volatile, while other times a lot more. Thus the MACD should be able to take full advantage of this volatility. Therefore our strategy will sell when the MACD gives a sell signal. Results: In short, our strategy would look like this: enter when both the MACD and modified MESA give a buy signal and exit when the MACD gives a sell signal. We performed a backtest on ETH/USD (Kraken), with all the available equity used on each trade, a 0.1% fee was taken into account. This resulted in a profit of 164,121%, similar to the buy and hold of 179,352%. However, the strategy is less risky than the buy and hold as it doesn't lose much in a downtrend. Remember, this is just an example for you to create a suitable strategy, and not a recommendation.
KRAKEN:ETHUSDLong
by cryptohopper
1
EUR/JPY, NZD/CAD, USD/JPY and USD/CAD on watch for me today.EUR/JPY: • If price pushes up to and ideally just above our rayline, then regardless of how it does so I'll be waiting for a convincing impulse back down followed by a tight flag and then I'll be looking to get short with a reduced risk entry on the break of the flag. • If this setup doesn't present itself then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place this trade. NZD/CAD: • If price pushes up to and ideally just above the upper trend line of our most recent piece of structure, then regardless of how it does so I'll be waiting for a convincing impulse back down followed by a tight flag and then I'll be looking to get short with a reduced risk entry on the break of the flag. • If price only pushes up to and ideally just above our rayline, then regardless of how it does so I'll once again be waiting for a convincing impulse back down followed by a tight flag and then I'll again be looking to get short with a reduced risk entry on the break of the flag. • If neither of these setups present themselves then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place either of these trades. USD/JPY: • If price pushes up to and ideally just above our rayline, then regardless of how it does so I'll be waiting for a convincing impulse back down followed by a tight flag and then I'll be looking to get short with a reduced risk entry on the break of the flag. • If this setup doesn't present itself then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place this trade. USD/CAD: • If price pushes down to and ideally just below our rayline, then regardless of how it does so I'll be waiting for a convincing impulse back up followed by a tight flag and then I'll be looking to get long with a reduced risk entry on the break of the flag. • If this setup doesn't present itself then I will simply wait until another setup which meets my plan materialises. • If there's any ambiguity then I will not place this trade.
by StewySongs
Binance Coin $BNBUSDT flag formation then PT 900 and higher Why Binance Coin Hit All-Time High (and $86B Valuation) Ahead of Coinbase Listing It's not equity, it's an exchange token. But it sure is mooning, apparently linked to the recent success of Binance Smart Chain. Why wait for the Coinbase listing of its shares on the Nasdaq? There’s already a way – in cryptocurrency markets – to bet on the world’s biggest cryptocurrency exchange. It’s a digital token linked to the success of Binance, which boasts a higher spot trading volume than Coinbase, according to the data site CoinGecko. The token, binance coin (BNB), has surged 14-fold in price this year, for a market value of $86 billion. Some cryptocurrency investors see BNB as a way to get excess return over a simple purchase of bitcoin (BTC, +5.07%), whose doubling in price this year looks almost paltry by comparison, Joshua Frank, co-founder and CEO of crypto data firm The TIE, told CoinDesk in an interview. “Funds can’t just buy bitcoin, because if the funds just buy bitcoin, it’s not worth it for their investors,” Frank said. Binance coin “is one of those larger coins that they can get exposure to, and they can put a large position in.” Binance press officials said they didn’t know why BNB has rallied so dramatically this year. The token’s price “is not something that can be controlled,” according to a spokesperson. But cryptocurrency analysts said that Binance’s recent business moves, including launching a blockchain network to compete with Ethereum for a share of the decentralized finance market, known as DeFi, have helped to boost the BNB token’s prospects. Unlike Coinbase’s soon-to-be-issued shares, BNB tokens confer no equity ownership rights. Binance is a closely-held firm, still led by its founder, Changpeng Zhao, often referred to by his initials, CZ. Instead, BNB is considered an “exchange token.” It can be used to pay fees on various Binance trading platforms, sometimes entitling the payers to discounts, or even as a currency on blockchain networks sponsored by the exchange. Investors in the token are essentially betting on its supply and demand, which effectively translates to a bet on the success of the Binance ecosystem. The rise of Binance Smart Chain Binance Smart Chain (BSC), a less decentralized public blockchain that’s considered a competitor with the Ethereum blockchain, has been quite successful. With transaction fees that are about 35 times cheaper, BSC has overtaken Ethereum in the first three months of 2021 for daily unique active wallets, according to DappRadar’s 2021 Q1 overview report on April 1. In March, the total value locked in Venus, the top decentralized money-market protocol on BSC, surpassed that of some of the most popular DeFi projects on Ethereum, including Uniswap and Compound, DappRadar wrote in its report, citing data from Defistation. The huge success of Binance Smart Chain has played a significant role in BNB’s rapid growing value. As a “discount token,” BNB offers discounts for trading on both Binance’s decentralized exchange (Binance DEX) and Binance, according to Nick Mancini, research analyst at Trade The Chain. The TIE’s Frank told CoinDesk that many crypto-native hedge funds have recognized BSC as a “much cheaper and more effective way” to access DeFi than stomaching Ethereum’s transaction fees, known as “gas,” where rates have soared due to network congestion. BNB is used as gas to pay for DeFi deployment to BSC. Mancini speculated that BNB’s market capitalization might eventually overtake that of ether (ETH, +6.42%), the Ethereum blockchain network’s native cryptocurrency. Ether prices have tripled this year, to a market value just over $260 billion. “If BNB and ether continue to grow at the same rate, BNB will flip ether within the next two to four months,” Mancini said. “Alt Season” It can’t be overstated that BNB’s price surge has come during “alt season” – a stretch of time where crypto traders have bid up so-called altcoins, ostensibly due to a lull in bitcoin’s rally. This is evidenced by recent drop in bitcoin’s share of all cryptocurrencies’ value, known as the market dominance ratio, to a two-year low. Crypto hedge funds trying to beat the market may also have been forced to invest in altcoins like BNB. Fund managers typically impose a “2 and 20” annual fee structure, meaning a 2% management fee of a fund’s net asset value and a 20% performance fee. Since there are so many ways for investors to hold bitcoin at low cost, crypto hedge funds have to come up with “unique ways” of beating the largest cryptocurrency’s returns for less costly fees, Frank said. “Funds can’t just buy bitcoin because if the funds just buy bitcoin, it’s not worth it for their investors,” Frank said. “Funds have to go out and deploy so much capital, and binance coin is one of those larger coins that they can get exposure to and they can put a large position in.” Coinbase direct listing’s spillover The Coinbase stock listing might be another potential driver of BNB’s gains. While Binance’s CZ has told CoinDesk that the company does not plan to go public, the token ecosystem might be benefiting from speculation over Coinbase’s value.
Long
by UnknownUnicorn19246015
5