The State of Crypto: The Highest Gains for January 16, 2021
W. Paul Alexander
Better Call Paul Blog
See my latest article here: ---> January 19, 2021 - Alt Season Picks up Steam! <---
***NOTE: The coin widgets update automatically, so keep in mind any percentages I've written about in this article were
so listed at press time. If there is a discrepancy between my words and the widgets, it's because of volatility since time of
UPDATE 01/17/2020: Correction made to title, which likely confused you all. I originally titled this project with the date of January 6, when it should've been January 16. Sorry about that, and the correction has now been made!
After publishing yesterday's update, which included a lesson in volatility, I began looking at some of the alts, as many seem to agree that the alt season will be really breaking out here soon. Hopefully everyone in the earshot of this article held on to their Bitcoin holdings through the mini-correction last week, thus avoiding losses on a beginner's panic sale. The value of Bitcoin, Ethereum, and Litecoin have recovered most of their losses from last week, with Bitcoin not quite making it back to the $40,000 point, but many laypersons and experts agree that the crash was simply a market manipulation by The Whales to allow them to artificially lower Bitcoin's value to scoop more up for a lower costs. This is American Greed in action, folks -- but it's the way of the world. We can fight back by not panic buying and selling the precious little Bitcoin that the lower classes of small investors have among ourselves.
Here's what BTC looks like now:
As you can see, it's hovering around $35-37K at the moment, and even saw an 8% drop yesterday that undoubtedly allowed for even more FUD and panic selling, unfortunately, before quickly regaining the few thousands that it lost. The biggest names in crypto, such as the Winklevoss twins, have predicted wild shifts in value, even predicting prices of $500,000 in the not-too-distant future. Now, I don't want anyone to take what I'm about to say as financial advice under the legal definition of such. Instead, please accept and contemplate my informed opinion that $50,000 will at least happen very soon, and my plans surrounding my own portfolio will see me holding on to my Bitcoin, Eth and other more established, higher-value coins.
As I believe that the alt season is coming very soon, let's take a look at which assets did realized the highest gains by percentage late last night and into this morning.
AAVE realized the highest gains in this list, having increased in value by 21.25% -- almost 1/4! The outlook for AAVE is pretty stable across platforms, too, as CoinMarketCap shows similar gains and more detailed information about the project itself. I just added AAVE to my portfolio, dedicating 8.8% of my holdings into this position going forward. How high it will go remains to be seen, and volatility is definitely something that must be considered -- but it is a risk I feel confident in taking at the moment.
Chainlink's LINK token continues on it's climb, with an impressive 24.20% gain. At the time of my writing my draft of this post, LINK was the 2nd highest earner at 20.51%. It has gained even more since the writing of my draft, and my prediction is that it will continue to become an indispensable protocol in the DeFi world. I don't fully understand its jargon yet, but I have done enough research to know that there the ability to act as a vehicle for interblockchain transactions is an amazingly capability, especially in the face of super-high gas fees on the ETH network.
"Chainlink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. LINK is the digital asset token used to pay for services on the network"
This is done through the use of middleware called "oracles," which essentially serve as the "link" between on-chain smart contracts and the real-world conditions that must be met to satisfy said contract. Oracles allow this off-chain data to be linked with the on-chain smart contract. This ability to link data between blockchains is where Chainlink gets its name.
All-in-all, I have dedicated a little over 10% of my investment dollars into Chainlink; currently considering temporarily raising that percentage to around 20%.
III. Band Protocol (BAND)
BAND Protocol's asset (BAND) saw a good bit of growth yesterday and overnight to have realized a gain of 15.30%, which puts it in 3rd place for largest gain. I have to admit. I don't really know that much about BAND, and I have not added the asset to my portfolio in any amount. In fact, my first exposure to BAND was on here or on Coinbase, but I cannot remember which. I'm only broadly aware of the purpose of the utility token, as I've been told it functions in a similar manner to Chainlink.
My own ignorance of the project aside, these gains cannot be ignored.
Breaking the $3.00 threshold is a big deal for Tezos, as it has generally stayed around $1.90 - $2.30 as of recent. The best thing about holding Tezos is also one of the best features the Coinbase currently offers -- a good return on your stake. It usually comes up to around 4%, and when that 4% combines with 13.79% growth in a 24-hour period, the potential for a decent little passive return is realized. I currently hold about 2.5% of my crypto in Tezos, so when the asset made it to the top earners category, I did realize a bit of a profit -- but I did NOT go make a purchase from an emotional standpoint and instead, will slowly put little bits into Tezos, almost like I would with a high-yield savings account.
V. Synthetix Network Token
The Synthetics Network Token (SNX) was recently listed on Coinbase, so the pump may be a result of that. I don't know much about the project, other than that it is an Ethereum-based token that was initially planned to be a stablecoin but eventually changed trajectories and is now a DeFi asset issuance protocol with staking rewards issued through the Mintr dapp. Apparently, the project creates a vehicle by which real-world commodities like stocks and precious metals can be traded on the blockchain as crypto assets. A brief-yet-detailed, excellent write up of the product can be found here from the folks over at www.decrypt.co. My research indicates that this is a very, very innovative approach with an immediately vital real-world use case. It has become one of the most popular DeFi tokens out there, enough to give it a spot in the "Top 20."
With it's gain of 6.53%, things seem to be looking up for holders of SNX.
Well, that about does it for this morning. Look out for my next article today, which is a companion to this post and will look at the other side of the scale as I examine the biggest losers in terms of percentage of value.
||UPDATE 01/17/2020 6:00 PM EST: The other side to this article, in which a few of the most negative movers are covered, is now published and can be found here. You'll notice Bitcoin is in each list, separated by an increase and then sharp decrease by more than $1000 in several hours on the same day. This is not a mistake. It is intentional and underscores the realities of volatility in this arena. ||
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1. Alexander, W (2021). Bitcoin Recoils Short of $40,000. Retrieved from https://www.publish0x.com/better-call-paul/bitcoin-recoils-after-getting-close-to-40000-dollars-again-o-xomzmxv.
2. Gemini.com. Chainlink in 5 minutes. Retrieved from https://www.gemini.com/cryptopedia/what-is-chainlink-and-how-does-it-work.
3. Decrypt.co (2020). Synthetix Explained in 3 minutes. Retrieved from https://decrypt.co/resources/what-is-synthetix-explained-ethereum-trading-learn.