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Cryptocurrencies: trading forecast for the week of September 20-26, 2021

Cryptocurrencies: trading forecast for the week of September 20-26, 2021

The cryptocurrency market has remained in a narrow range recently. At the end of last week, the price of bitcoin rose slightly to the resistance of $48,000. Ethereum strengthened to the level of $3,400, and XRP - to the price value of $1.08. The total capitalization of the crypto assets market amounted to $2.14 trillion.

On Tuesday evening, the Ethereum blockchain was attacked. Unknown miners published their own chain of 550 blocks, but the vast majority of nodes rejected them as faulty. According to the developers of Ethereum, the blocks released by hackers had incorrect confirmations. Most of the network nodes, after determining an incorrect confirmation, rejected alternative blocks. However, a small proportion of the nodes on which the Nethermind client is installed have switched to a fake chain. However, very soon the length of the main Ethereum chain exceeded the indicator of the alternative one, and customers independently switched to the correct version of the blockchain. At the same time, the hackers were unable to take advantage of the situation in their favor.

September 14 was the day of mass attacks and errors in blockchains. The main network of the Solana cryptocurrency did not function for more than 20 hours. Analysts believe that the failures of Solana and Arbitrum have cast a shadow on the alternatives of Ethereum in general, and now there is a rotation of capital in the market between ecosystems. The events of last week in the cryptocurrency market simply show that genuine decentralization and well-developed security represent an essentially extremely significant value proposition. Perhaps this is more important than the throughput indicators. Before the fall of the network, the Solana token rose more than four times in three weeks and exceeded the level of $200. It is currently trading around $160.

The spread of decentralized finance among institutional investors in the second quarter surpassed previous records, analysts of JPMorgan bank note in the weekly report on the state of the cryptocurrency market. According to their observations, in the reporting period, more than 60% of DeFi transactions occurred for amounts over $10 million, and there were less than half of such transactions in the market. The institutions of large economies promote activity in the DeFi space, and developing countries continue to develop more traditional cryptocurrency assets.

According to Dune Analytics, the trading volume on 14 different decentralized exchanges based on Ethereum over the past 7 days exceeds 15 billion. Of these, over 62% are accounted for by Uniswap. The data also indicates that the total amount of assets in DeFi, including the Binance Smart Chain, Avalanche and Solana networks, has already exceeded 170 billion. More than 270,000 bitcoins have been tokenized for use in the Ethereum blockchain. The total trading volume of decentralized exchanges on all blockchains for the week exceeded 23 billion. At the same time, the turnover of the largest cryptocurrencies decreased compared to the previous week, JPMorgan writes. The average daily volume of transactions in the bitcoin and Ethereum markets fell by 18% and 21%, respectively, along with volatility. The turnover of Litecoin, Dogecoin and Uniswap also decreased.

In the forecast for the coming week, bitcoin is expected to decline to the levels of 47700, 47000, 46500, 46000 and 44000 dollars. Ethereum will fall to the supports of $ 3370, 3350, 3300, 3200 and 3000, and XRP will fall to the levels of $ 1.05, 1.03, 1, 0.98 and 0.95.

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