Ethereum cryptocurrency rises 70% as analyst warns of 99% fall in Tron

The cryptocurrency market has been in full swing for the last 30 days one of the biggest declines in history, with the failure of UST / LUNA, was that Bitcoin dropped to $ 25,000.

Although it regained some of its value after the tax on the Earth’s ecosystem, this did not save BTC from further moments of tension, volatility and side trading.

In the last 7 days, for example, the main cryptocurrency on the market BTC rehearsed for more than $ 31K however, in a short time, the upward movement was revealed it’s just a “dead cat jump” and the cryptocurrency has returned below $ 30,000.

However, an Ethereum-based altcoin is challenging the bear market as it tends to rise as major cryptocurrencies in the market struggle to regain some of their value as is the case with ETH.

XCN, Chain cloud blockchain protocol token and usability, It has risen by more than 70% in the last 30 daysWith the upward movement, cryptocurrency assets rose in the capitalization rating of the cryptocurrency market, mid-May 51-28.

The company also announced that it will continue to hire new employees. Market companies like Gemini, Coinbase and even Tesla, the owner of Elon Musk, are announcing massive layoffs.

According to an analysis by Dailyhodl, the rise in cryptocurrency is linked to a number of factors such as making the XCN token available on BNBChain and then listing it on major exchanges such as Huobi, Gate.io, and KuCoin.

In addition The developers recently announced a $ 2.6 billion in XCN burns, more than 22% of the total token supply..

“Burning the XCN token means a change to make our assets DAO. This milestone recognizes the impact of XCN on Web 3.0 development and the innovators who used it to build the Chain,” said Deepak, CEO of Thapliyal Chain.

Analysts have warned of a 99% drop in the throne

However, while the XCN was rising, analyst Ayron Ferreira, chief researcher at Titanium Asset, warned that the market is unsure that a new catastrophe will not happen and, again, as a result of a stable algorithmic currency.

Ferreira pointed out to Cointelegraph that the plan of Do Kwon, co-founder of the Terra Network project, is similar to what happened to the Ethereum network in 2016, after The Dao hack, when they stole approximately $ 60 million, which resulted. to the current Ethereum and retained the first version under the name Ethereum Classic.

However, in the case of Terra (LUNA), the new network has already started with problems with the distribution of airborne tokens, which some users receive less.

“The success of the new network will depend on the incentive to attract developers and restore community and investor confidence, which is possible, but very difficult, because it has had a huge impact on the image of the project. to migrate to some blocks, such as Polygon, ”he said.

He noted, however, that it was important for investors to be aware of what had happened to UST / LUNA and then carefully monitored Tron’s proposal with the proposed solutions (LUNA Classic and LUNA).

“Some of the points from TVL’s (Total Value Locked) recent moves, which are all the money blocked in Tron’s DeFi Dapps (decentralized financial applications), correspond to what happened on Earth,” he noted.

Analysts point out that with the launch of the USDD, the Tron blockchain has become the third largest in TVL and has grown by almost 50% in one month. The network has only 9 DeFi Dapp, which means that this TVL rarely concentrates on Dapp.

Tron’s second TVL is $ 69.7 billion in Ethereum’s TVL, TVL and 489 protocols, and Binance Smart Chain, with $ 8.55 billion and 400 protocols. Tron’s TVL is now $ 6.25 billion.

“This sudden rise is a bad sign and warns that something unbearable can be rebuilt. 9 Three of Dappet have the biggest TVLs, JustLend, JustStable and SunSwap. It was one of the lessons learned from the May crash. especially when this TVL is divided into a few protocols, ”he said.

Also, according to the analyst, what happened with UST is very new, which proved that an algorithmic stable currency is not yet feasible.

“Justin Sun, CEO of Tron, will have to work hard to prove the viability of a stable algorithmic currency. where the tokens are created and destroyed.Although Tron is older than Earth, in this case the similarities are great and the risk is high, ”he concluded.

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