Ether (ETH) continued its stellar run and crossed the $3,500 barrier today. Dogecoin (DOGE) also joined in on the party as its price soared above $0.61 earlier today as Gemini exchanged added support for the coin following a similar step by eToro.
Traders may be buying DOGE with the expectation that Elon Musk will shill the token during his upcoming appearance as the host of Saturday Night Live.
While the rise of DOGE is tempting, traders should be careful with their bets because barring the jawboning by some popular individuals, the fundamentals of the coin look shaky.
Although altcoins are having a field day, Glassnode recently pointed out that Bitcoin’s (BTC) Stablecoin Supply Ratio had plunged to a 2021 low at 13.4. The SSR is calculated by dividing Bitcoin’s supply by th stablecoin supply and its all-time low is 9.6. Glassnode said the low SSR value was a bullish sign as it showed greater availability of crypto-native capital that could flow into Bitcoin and other crypto-assets.
In the altcoin season, the decentralized finance space has been the star performer. Let’s study the fundamentals and technicals of three DeFi related tokens that have done well in the past few days.
Decentralized exchanges have risen in popularity in the past few months but they are still plagued with certain shortcomings. One of the problems DEX users face are bots that front-run transactions and cause slippage. According to MEV-Explore more than $477 million in value has been extracted from DEX traders since Jan. 1, 2020.
To solve the problem of MEV and improve the experience of DEX users, Gnosis (GNO) recently announced a partnership integration with Balancer to form the Balancer-Gnosis-Protocol, which plans to blend Balancer’s pool mechanisms with the price-finding mechanism of Gnosis and is expected to go live in mid-June. This could attract several traders who have been avoiding trading on DEXs due to MEV.