The Crypto Volatility Newsletter #2
There’s no holding back DeFi…
The Crypto Volatility Index is presenting a new newsletter covering crypto volatility trends, trading and market analytics.
Application soon to be available via cvi.finance
Disclaimer: This is for educational purposes only — Nothing here is intended for trading advice or otherwise.
$50k Bitcoin this week?
The price of Bitcoin continues to hold support over $42,000, consolidating around $45,000 as of August 17. According to market data from CoinDesk, Bitcoin prices have been trading mainly between $41,000 and $47,000 since August 1. While the digital currency’s gains so far this year demonstrate a bull market, BTC could encounter resistance as the digital asset approaches $50,000. Bitcoin could face resistance near this price level as the momentum caused by a recent short-squeeze rally subsides. Ether continues to hold strong over $3,000, as more ETH is burned as a result of EIP 1559.
Overall, the cryptocurrency ecosystem continues to grow at an impressive rate. On August 16, the total crypto market cap surpassed $2 trillion for the first time since mid-May, according to CoinMarketCap data. Moreover, a number of altcoins have seen double-digit gains lately, including Solana (SOL), Presearch (PRE) and Arweave (AR). SOL prices soared to a new high of $69 on August 17, according CoinMarketCap data. The value of this digital token increased after markets responded to several improvements in the Solana ecosystem, including news that a crowdfunding round succeeded in raising $70 million for Solana’s decentralized exchange (DEX), Mango Markets.
PRE, the digital token for blockchain-based decentralized search engine Presearch, has also witnessed a recent price rise, reaching an all-time high of $0.05696 on August 16, according to CoinMarketCap data. Finally, AR, the native token of decentralized storage network Arweave, hit a recent high of $24.66 on August 16, additional CoinMarketCap figures show.
While these gains are impressive, it’s important to point out that the price rally for tokens built for the decentralized finance (DeFi) sector, like SOL, demonstrates sustained investor interest. This is notable, given that the DeFi industry has faced massive security risks lately that have been further exposed by the largest hack to date — the Poly Network hack that took place last week.
And despite regulatory uncertainty in the United States regarding crypto tax rules that may be implemented as a result of pending legislation, cryptocurrency traders appear to be increasingly bullish. This has become apparent due to the double-digit altcoin price gains witnessed this week. However, analysts have emphasized that bitcoin’s short-term price performance could play an important role in ensuring that this sentiment remains optimistic.
Crypto Volatility Index V2 is live
As many of you may already know, the CVI V2 platform was recently launched. We’ve received a tremendous amount of great feedback, along with a number of questions. In turn, we hosted a live AMA in the CVI Telegram group with some of the core members of the CVI platform development team. A recap of this AMA can be found on our Medium post published on August 13.
Some key points mentioned during the AMA include the fact that CVI V2 is a global project in the sense that anyone can join any of the CVI platforms on Ethereum and/or on Polygon. Moreover, while CVI was created by COTI, the COTI token ($COTI) is currently not listed on CVI, but we plan to support it soon. It’s also important to note that our developers are in the process of finalizing a first of its kind DEX-entwined AMM. This means prices will also be affected by supply and demand, which will be reflected in real-time. In turn, this new feature will decrease the CVI index refresh interval, which some users have been asking about.
While there were a number of questions asked during the live AMA, CVI V2 ultimately contains a number of improvements and features that were not previously available. For instance, CVI V2 allows traders to trade volatility tokens, adding tremendous value to the DeFi ecosystem. The first volatility token we launched was ETHVOL, which can be traded on any Ethereum based DEXs. CVIVOL is the next volatility token we are launching, which will be traded on any Polygon supported DEXs.
CVI V2 also allows for margin trading. This is particularly important as some major cryptocurrency derivatives exchanges have begun limiting the amount of margin trading debt traders can wager. We remain optimistic about this feature. In addition, CVI V2’s USDC Platform allows for open positions, providing traders with liquidity and the option to stake their CVI USDC liquidity tokens through CVI.
You can read more about CVI V2 here.
$GOVI expands within the DeFi ecosystem
The matter of when COTI would be releasing $GOVI tokens on DEXs and exchanges was also brought up during our live CVI V2 AMA on Telegram last week. Although we are still finalizing all the required documentation for “the arbitrageurs” — those who will be able to mint/burn $GOVI tokens for arbitrage plays — we are excited to share that $GOVI is now listed and available to swap on DEX aggregator protocol 1inch.
Swapping $GOVI via 1inch is available here.
In addition, both $COTI and $GOVI were recently added to the Orion Pool. You can read more about this collaboration here.
It’s clear that $GOVI is continuing to expand into the DeFi ecosystem. CVI has been listed on DappRadar. Other DEXs that support $GOVI include Uniswap, SushiSwap, QuickSwap and Orion Terminal. Data from DeFi Pulse shows that over the last 30 days, market participants locked more than $80 billion into DeFi.
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