The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Analyst Says Two Crypto Assets Closely Correlated With XRP, Showing Traders Fear Future Regulatory Action

by Daily Hodl Staff
December 27, 2020
in Altcoins, Bitcoin

A popular analyst says he’s spotted a telling correlation between a pair of crypto assets and XRP.

Former Adaptive Capital partner Willy Woo says it’s clear that Chainlink (LINK) and Cardano (ADA) tracked XRP’s epic crash last week at a higher correlation than any other cryptocurrencies.

According to Woo, the price movements suggest that traders believe the two projects could one day face regulatory challenges like those of XRP.

“Chainlink and Cardano [are] most closely correlated to XRP.

This is not a full backtrace situation… It’s a two-day trend, meaning traders are lumping regulatory fears of XRP onto those two coins the most.”

Source: Willy Woo

Woo says it’s going to be a bumpy ride for the altcoin market in the wake of the SEC’s regulatory action against Ripple.

He says Bitcoin’s emergence as a strong store of value is step one in a long road toward the emergence of a fully fleshed-out crypto ecosystem that includes legitimate altcoin-based platforms.

“…it’s probably a good time to time post a thread about the future of altcoins. And where its place may be in crypto-cap dominance.

Store of value buckets (very roughly):

$12 Trillion Gold
$90 Trillion Fiat
$100 Trillion Stocks
$100 Trillion Bonds
$250 Trillion Real Estate

Derivatives = $1000 Trillion+

Derivatives encapsulates the buying, selling and transmission of risk. The modern world is enabled by them.

Want insurance for your house? Do you want food that farmers will grow? How about funding for your first business? Derivatives enable the risk market to enable these activities for you. They use collateral in the form of store of value to operate.

Decentralized finance (DeFi) in its current form is an experimental area where we figure out how to build networks to buy, sell and transmit risk. For that to happen the underlying networks will need to draw value into their market caps to use as collateral.”

Woo says Bitcoin’s dominance could gradually shift down to one-third of the total market cap of all cryptocurrencies as solid crypto projects emerge and establish themselves over time.

“In the traditional world it’s a 2:1 ratio between derivatives and store of value. That would translate to a BTC dominance of 33%. The first thing to build is store of value, that’s why BTC dominance has been so high. It’s possible it continues a downtrend towards 33%.

We’re currently in a phase of weeding out scams, ponzis and security frauds from legitimate experiments. The ride will be choppy.”

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Art Furnace

Submit a Press Release

Industry Announcements

  • Blockchain Pioneer Acquires International Fashion House Blk DNM
    June 7, 2023
  • WOW EARN Launches Its Crypto Wallet on iOS and Google Play
    June 7, 2023
  • BinaryX and AiGC Labs Developing First AI-Powered Virtual Reality Game on the Metaverse
    June 7, 2023
  • The Importance of Crypto Payments in 2023
    June 7, 2023
  • Proof of Talk 2023 – Two Days To Restore Trust in Web 3.0 and Design the Future of the Industry
    June 7, 2023
  • OKX Partners With Komainu, Enabling 24/7 Secure Trading of Segregated Assets Under Custody for Institutions
    June 6, 2023
  • Mooky.io – $750,000 Raised Within a Matter of Days
    June 5, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$26,448.09
$26,448.09
2.44%
Ethereum
$1,838.62
$1,838.62
2.16%
Cardano
$0.324066
$0.324066
6.8%
XRP
$0.521059
$0.521059
1.09%
Dogecoin
$0.067822
$0.067822
2.6%

Spotlight

  • Bitcoin Parabolic Rally Still in Play As BTC Flashes Bullish Signal, According to Crypto Analyst
    May 31, 2023
  • Two Crypto Sectors Will Reward Those Who Pay Attention, Says DeFi Veteran Arthur Cheong
    May 31, 2023
  • Solana Has Potential To Be the ‘Apple’ of Crypto, According to SOL Co-Founder Raj Gokal
    May 31, 2023
  • There’s Nothing More Bullish for Bitcoin and Gold Than This Pivotal Moment: Investment Strategist Luke Gromen
    May 31, 2023
Coinfest Asia Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl