Litecoin Climbs on 4-Hour Chart But Began Today Down by 1.1%
The 3 four-hour candles of Litecoin (LTC) has officially concluded its negative streak. And the candle from that last 4-hour candle finished up by 2.44% or $1.1.
Then, out of the five instruments in the Top Cryptos asset class, LTC obtained the second rank for the four-hour candle when it comes to price change. And this is relative to the past 4-hour candle.
Since yesterday, Litecoin dropped approximately 1.1%. This marks the third consecutive day that it went down. Aside from that, the move occurred at a lower volume. Yesterday’s volume declined 35.06% from the day before and down 12.33% from the same day of the week before.
In addition to that, Litecoin became the worst performer among all five of the assets in the Top Cryptos asset class yesterday.
When it comes to its technical analysis, Litecoin is now near its 20 day moving averages. As a result, this may work as a price barrier for the asset. Also, trend traders will aim to observe at the strongest trend that shows up on the 14-day horizon. During that time, the price has been moving up.
In another vantage point, think that the Litecoin price has gone down 16 of the past 30 trading days.
Dai for Maintaining Maker’s Current Value
Elsewhere, crypto analysts, AlfaBlok has released a report claiming that the number of circulating Dai must grow by over 70% each year for MakerDao (MKR) to keep its current capitalization of nearly $350 million.
Based on AlfoBlok’s modelling on May 5, the supply of Dai needs to surpass a few trillion by 2040. And this is up from the recent amount of about 100 million.
Also, the analysts stated that they had made a fundamental analysis of this decentralized business according to discounted earning flows.
They concluded, “The bottom line is that the current valuation implies very aggressive growth rates, of over 70%+ Dai circulation increase per year reaching trillions of Dai in Circulation, in order for the current valuation to make sense.”
AlfoBlok confirmed that it is possible, but it will not be easy. While the demand has always been there, it is still hard to keep the peg near $1. Now, the great challenge for them is to increase the supply in a structural way to let it reach hundreds of billions of Dai in circulation for the following decades.
Then, to reach a circulating supply that large AlfaBlok speculates that real estate, probably tokenized, might need to become an accepted form of collateral.
The report explained that there is more than $170T worth of real estate in the world today. Thus, for them, it will be mechanically feasible. On the other hand, the report said about the chances of the protocol breaking its peg and running with under-collateralization.
Moreover, when deposited funds enter a collateralized debt position, they call this a vault. And this is with a sum of Dai equal to that of the deposited crypto assets, excluding the maintenance margin being made. After that, users can earn interest or lend funds from their Vault.
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