News Bulletin — June 2021
Latest News in the Cryptocurrency and Investment World
The question on everyone’s lips is, are we in a bear market, a dip or are we undergoing a correction along an upward trajectory? It is too early to say if we are in a bear market, the average length of a bear market is 289 days or 10 months, although the crypto winter lasted a few years. The naysayers seem to be getting more coverage than the optimists with price forecasts of bitcoin as low as $16,000. Gone are the days of the $100,000 bitcoin price predictions. We believe we have seen a correction and whilst bitcoin may drop some more the medium term trend is up. However we see the narrative slowly changing from a Bitcoin focused one to altcoins. Already bitcoin’s dominance is down to 41%, that has further to go. Whilst you can count on many more dips caused by growing pains this market is here to stay.
The important thing is we must take profits when we can and be more discerning in what we invest in. Investing in the latest batch of memecoins is not recommended. The winners have still not been decided. It is highly likely that in five years time bitcoin will no longer be the most valuable cryptocurrency and other chains will have taken over from Ethereum or at least be offering a viable alternative. The winners will be the ones which embrace mainstream adoption choosing to focus on easy to understand user interfaces. The average Joe is scared away by DEXs and the various DeFi apps doing the rounds. This will change as technology advances and as developers start listening to marketeers rather than the other way round.
The winners will be the projects that embrace the mass market. When aunt Polly can find her way round Uniswap without pulling out her hair that will be a strong indicator we have arrived. But in the meantime this is a great time to search for the projects that will make that breakthrough. They are still out there.
We must remember that the market dip has made this a buyers market. With an abundance of cryptocurrencies to choose from we don’t have to invest in the first project we stumble across and we definitely don’t have to accept the crazy valuations inherent in the tokenomics of many a cryptocurrency. Project teams who have structured their tokenomics as liberally as a drunk counting money will receive their comeuppance, just make sure you are not holding their tokens when that time comes.
Polygon (MATIC) bucks the downward trend
As the market was plummeting over the last few weeks there was one stand out performer — Polygon. Its price entered the market dip at around $0.81 and increased to a high of $2.62. Whilst Bitcoin continues to suffer at the hands of Elon Musk’s attention seeking utterances Polygon was on the receiving end of praise from among others, Mark Cuban, who announced he had bought into the project and was a big supporter.
MATIC is the cryptocurrency that powers the Polygon network which provides a framework for building and connecting blockchains that are supported by Ethereum technology. It aims to provide a cheaper, more secure and streamlined solution for transactions conducted on the Ethereum blockchain. The network provides a side chain to the main Ethereum blockchain.