Traders ditch Bitcoin for memecoins: DOGE the next big winner?
- DOGE prices have stagnated below $0.17 amidst a drop in interest in the derivatives market.
- Will DOGE interest improve after the reported change in traders’ focus to higher beta memecoins?
Since 23rd May, Bitcoin’s [BTC] price has been quiet, consolidating above $67K. With an impending supply overhang from the Mt Gox exchange, some traders are reportedly shifting focus to memecoins, especially legacy memes like Dogecoin [DOGE].
According to Singapore-based crypto-trading firm QCP Capital, traders shifted focus to legacy memecoins.
“Traders are shifting focus to higher beta meme tokens like Shiba Inu (SHIBA), Dogecoin (DOGE), and Pepe (PEPE), which have seen double-digit gains (10-20%) and are polling in the top 10 for Open Interest.’
A spot check on the Coinalyze showed that Pepe [PEPE] and Floki [FLOKI] recorded an upswing in open interest rates in the past 24 hours. However, Dogecoin’s OI was still negative at the time of writing, down about 5%, which could delay a strong short-term recovery for DOGE.
Will DOGE see a short-term reprieve?
Source: Coinalyze
For the unfamiliar, Open Interest (OI) rates track opened futures contracts alongside the money flowing into or out of them. A rising OI suggests a bullish sentiment, while a declining OI underscores a bearish sentiment.
DOGE’s OI has been trending lower since 27th May and slid below $900 million as of press time. The drop denoted underlying bearish sentiment on DOGE’s price prospects.
The downsloping spot CVD (Cumulative Volume Delta) further demonstrated sellers’ market leverage from 27th May.
However, DOGE was headed into a key short-term support near $0.15. A rebound in the short-term demand could push DOGE toward the short-term supply at $0.17 or $0.2.
Source: DOGE/USDT
The below-average readings on the RSI (Relative Strength Index) and CMF (Chaikin Money Flow) meant that a retest of the demand area, marked by cyan, was possible. If so, a surge in OI could confirm the above rebound the reversal scenario.
However, a breach below $0.15 could drag DOGE to multi-month support at $0.13.
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All about Mastercard's new 'Crypto Credential' service
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Mastercard is launching a peer-to-peer platform aimed at enabling cross-border digital asset transactions.
Himalay Patel
Journalist
Edited By: Ann Maria Shibu
Posted: May 31, 2024
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- Mastercard launches a peer-to-peer network for cross-border digital asset transfers.
- The P2P network, known as Mastercard Crypto Credential, will cater to users in Europe and Latin America.
Mastercard has introduced the Mastercard Crypto Credential on 29th May, making cryptocurrency transactions by allowing users to send and receive crypto using simplified aliases instead of complex blockchain addresses.
Mastercard dips its toes further into crypto
Mastercard Crypto Credential verifies interactions between consumers and businesses on blockchain networks, ensuring that users meet verification standards and confirming the recipient’s wallet supports the transferred asset.
This system enhances trust and certainty in transactions by simplifying the process of knowing which assets or chains the recipient supports.
Additionally, Mastercard Crypto Credential facilitates the exchange of Travel Rule information for cross-border transactions, a regulatory requirement to prevent illegal activities.
The system operates by first verifying users according to Mastercard’s standards, who then receive an alias for sending and receiving funds across supported exchanges.
When initiating a transfer, the system checks the validity of the recipient’s alias and wallet compatibility. If the wallet does not support the asset or blockchain, the sender is notified, and the transaction halts to prevent loss of funds.
Mastercard will initially support peer-to-peer (P2P) transactions but may extend the service to non-fungible tokens (NFTs), ticketing, and other payment solutions.
The service targets the Latin American and European markets, available in countries including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay.
The service is available on three main exchanges: Bit2Me, Lirium, and Mercado Bitcoin. Users of Lulibit, a Panama and Guatemala-based exchange, can also access the service via Lirium. Brazil-based crypto wallet provider Foxbit is also participating in the pilot ecosystem.
Mastercard plans to offer Crypto Credential to select users on a first-come, first-served basis and then extend the service to more than 7 million users in the coming months.
A blast from the past
This initiative follows Mastercard’s earlier venture into the crypto space. On 12th October, 2023, Mastercard announced a solution to enable the tokenization of Central Bank Digital Currencies (CBDCs) across various blockchains.
This technology bolsters security and allows consumers to participate in commerce across multiple blockchains.
It was part of the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre’s (DFCRC) central bank digital currency pilot project, aimed at exploring potential use cases for a CBDC in Australia.
