In today's day continues the red trail in the markets. Bitcoin is back below $40,000 and Piazza Affari loses over 300 points. Many will be panicking or worried about the red in their portfolios, but as we all know, markets are cyclical, there are periods of ups and downs and that's how it will always be.
Despite yesterday's correction, from the point of view of flows, many have taken advantage to fill up with bitcoin, in fact, yesterday the reserves of the exchanges are at an all-time low, with a negative NetFlow of -11300 BTC; even the miners have not sold, their reserves are at an all-time high. With this, I do not want to say that everything is pink and flowers, as a matter of fact since last night OI has dropped a lot, but still the derivatives market remains "doped" as the leverage ratio is still high.
I believe that in the long term illiquid bitcoin supply will be an important factor for price recovery because doped derivatives cannot last long, as it is happening for ETH.
Polygon-Matic EIP-1559
Ethereum's popular layer-2 scaling solution, MATIC, has also implemented the EIP-1559 update. "We took Ethereum after the update as a benchmark to simulate the potential impact on MATIC's total supply," Polygon's team said in an announcement, adding also the analysis "suggests that annualized burn would account for 0.27% of MATIC's total supply." Polygon plans to use this mechanism to make its rate structure more effective, as ETH did, adding, "The base fee, which fluctuates depending on network congestion, is then burned." We had identified Polygon Matic's project, as one of the ALT-coins that we believe is a good one to accumulate in the bear market phase and therefore with a long-term view and not just speculative. With the arrival of this update on Layer 2 of Ethereum, we reinforce our long-term view on MATIC. We will remain in observation to see the implications that the arrival of ETH 2.0 will have but for now, the prospects are flourishing on this blockchain.
Since EIP-1559 entered the Ethereum network, it has burned a total of 1.55 ETH ($4.91 billion).
Moreover, according to the data accumulated by the financial services and investment management company Galaxy Digital until the end of November 2021, the upgrade has saved users $844 million in transaction fees through the reimbursement of base fees.
Also as we can see from the list of major DEFI projects, many are moving from Ethereum and BSC (Binance Smart Chain) blockchain to Polygon's Layer 2.
Positive medium to long-term signal that underlines the trust towards Matic and its efficiency.
... and HIVE
Our dear currency suffered the sell-off of the entire crypto market, returning below a dollar. The way I see it this will be a real opportunity to accumulate new tokens of our dear currency. With the new projects that are emerging, such as Ragnarok, I expect a great involvement and new entries within the platform. As a reminder, the bullish momentum of the last 3 months has far outperformed BTC and was driven by users pouring into Hive's dapps. Where does STEEM stand instead? Let's face it, the historical added value of HIVE and STEEM, linked to the possibility of posting content, has been priced out, the real value of HIVE instead lies in the development and affirmation of its apps... so much for Justin Sun.
Time to make new purchases? Maybe not these days, but I'm already getting ready! I'm not only talking about HIVE itself, but also about LEO and POB, which in my opinion are largely undervalued at the moment.
Thanks for reading.