Mastering The Bitcoin Market Cycles (+ Targets 4th Cycle)
Sighs of joy float across the net — the cryptocurrency market, after the painful falls of the first quarter, has finally begun to revive. According to CoinMarketCap, its total market capitalization by April 16 for the first time since March 26 exceeded $ 325 billion. For the week before, it grew by 31%.
It is possible that the main driver of the mid-April rally was bitcoin, which gained 21%, breaking the 50-week moving average and exceeding the high of the previous 2.5 weeks. ETH grew by 38%, defending its status as a cryptocurrency vice-king, 32.8% was added by Ripple, and 23.9% — Bitcoin Cash. However, the most surprising were three not the most famous coins that appeared on the exchange not so long ago and are not even in the first twenty of the ICODrops rating., — Verge (XVG), EOS, Ontology (ONT). These coins, like the pigeons of Noah, which brought an olive branch in their beak, reminded of the joyful times of rapid growth..
Verge — leader of the troika. It grew by 58.4% over the week, reaching the top twenty of the ICODrop rating. The hype surrounding Verge, analysts associate with a mysterious strategic investor, which the creator of the project Justin Vendetta (Jastin Vendetta) announced on April 10, but did not name, following a nondisclosure agreement. It was only said that this collaboration would radically change the entire Verge system. TokenPay is rumored to be the mysterious partner, but Overstock.com, Amazon and eBay are also named..
What is Verge
The Verge currency appeared in 2014 and was then called DogeCoinDark. The name was changed in 2016 after the rebranding. Verge is not a private ICO-funded company and its developers have not done any pre-mining. Total claimed number of coins — 16.5 billion — will be released by 2027. The development of the company is funded by clients using the services of the system. Additional funding opportunities will appear after the launch of the Verge Merchandise Store and the launch of the Multi-Algorithm mining pool.
Verge — is a blockchain-based payment system designed to send and receive payments from companies and individuals. The system handles both small and large transfers, offering clients a wide range of additional services and paying particular attention to anonymity. To provide it, TOR and I2P networks are used, as well as the Wraith protocol, which allows the user to choose between a public and anonymous distributed ledger within the blockchain. In addition, five different algorithms are used to construct blocks, which reduces the block completion time to 30 seconds (the declared time was 5–10 Seconds). The planned use of RSK technology will increase the speed up to 1000 operations per second and launch the functionality associated with smart contracts. Low transfer rates (only 0.1 XVG) and high speed attract those who need to make a large number of payments to participate in the system. Coins can be converted to fiat currency after each transaction or at any time chosen by the client.
Verge has been criticized for a small number of nodes, and therefore for weak decentralization, which contradicts the main meaning of the blockchain. By the end of 2017, the system had only 8 nodes, and 40% of all coins were in the hands of only 10 owners..
The company plans for 2018 to launch an online store that accepts bitcoins and XVG, as well as a number of electronic versions of wallets for various mobile systems..
The weekly growth of EOS was 55.68%. Not so long ago, the developers announced the planned landing of eosDAC among EOS holders, which could further push prices up.
In the first five days of sales, the project raised $ 185 million. 20% of the 1 billion planned to be issued coins were sold. Estimated inflation rate — about 5% per year.
What is EOS
EOS — it is a brand new decentralized operating system designed to support commercial applications. It provides clients with all the functionality they need to create customized blockchain-based business solutions. To verify operations, the DPoS (delegated-proof-of-stake) algorithm is used, based on the voting procedure of selected delegates (from 21 to 100), who confirm operations on behalf of network users. Since the number of voting participants is small, this makes it possible to reduce the operation time to 1 second and to provide a mode of cooperation among «producers» coins, thereby preventing the occurrence of forks. According to project founder Daniel Larimer, the EOS architecture allows for a level of scalability capable of performing several million operations per second, as well as maintaining a high level of network security and fast algorithm modernization..
Two characteristics promised by the developers give particular value to the project. First, the system does not charge transaction fees. Users have the right to use the resources of the network in accordance with the share of coins they own. Secondly, the declared level of scalability, in combination with the use of asynchronous communication technologies and parallel information processing, makes it possible to provide a fantastic speed of operations for the blockchain..
Over the week, ONT took 22nd place in the ranking and showed 52.94% growth. The token sale began in March and the price has risen 250% in four weeks. The project was launched by the Chinese company Onchain last year..
What is ONT
Ontology is a blockchain platform that includes a set of distributed ledgers and smart contracts, and provides interoperability based on blockchain technology for companies operating in different sectors of the economy. According to the developers, their main task was to create a system that would ensure a high level of user confidence by developing reliable procedures for determining the authenticity of information used and increasing the security of transmitted data. Ontology services allow you to prepare blockchain solutions without involving programmers, which is one of the main factors in attracting the attention of interested investors to the project. Users get the opportunity to collect from various sources (databases of state institutions, banks, business registers, social networks) and manage the data necessary for identification. The developers plan to launch algorithms to connect the Ontology network to other blockchain networks, including NEO, Ethereum and EOS.
The platform offers users three original applications: ONTO, ONT DDXF and ONT TSE.
ONTO is designed to create and manage digital identities and digital assets.
ONT DDXF — a distributed system for data exchange that allows you to customize information received from trading floors in accordance with user requests and security requirements.
ONT TSE — a search engine that provides interaction between users, assets and transactions verified using digital identity algorithms.
Only time will tell to what extent the market recovery seen this time will become sustainable and which coins will grow. After a prolonged downturn, most analysts predict a reversal of the trend as expected, which could also trigger a price support wave. Great hopes are pinned on an increase in the degree of regulation, and hence security, and the emergence of new technological solutions that should attract new investors. Many also believe that the rise in prices must be driven by the emergence of working tokenized funds, making it easier for the average user and increasing security. The world of cryptocurrencies is diversifying and becoming clearer to users, since they no longer perceive it as a single and incomprehensible whole, but see it as a platform where you can find answers to very specific practical questions. Such an understanding cannot but be regarded as a solid basis for the further development of the market, and hence the rise in prices.