W. Paul Alexander
for
Better Call Paul Blog
[Jacksonville, Florida 12:08 PM 01/03/2021; UPDATED 01/03/2021 For Corrections]
Hey Everyone! I'm checking in on the morning of January 3, 2021 to give an update regarding the crypto market.
The 2021 bull run continues to make massive profits for investors. Over the last several days, we've seen another huge jump in the DeFi market as well. Not even a week ago, people were shocked to see that Decentralized Finance (DeFi) users had reached a massive, emotional milestone of $15 billion USD being locked into DeFi apps.
As of this morning, DeFi continues to break records, specifically with regards to total market cap and overall growth. At the time of writing:
- DeFi crypto market cap is $21.52B, a 50.81% increase over the previous day's number.
Now, what does this mean for mainstream projects?
Well, the majority of DeFi dapps have a large focus on ERC-20 compliant tokens that are part of the Ethereum network, as well as nonfungible tokens (NFT) and other major and minor projects. As DeFi explodes, we should see Ether (ETH) start to move closer and closer to the psychological milestone of $1000.
Currently, here's where we are with ETH:
- It's trading at almost $960.00
- Just last night, it was hanging steady around $770, and has gained a WHOPPING 23.36% OVERNIGHT! This is unheard of, and since we are only $40 away from the $1000 limit, you can expect ETH to continue to soar to new all-time highs.
- To be completely accurate, this is not an ATH for Ethereum, but it is the highest we have seen for ETH since the 2017 bull run, which I think saw it reach around $1200 for a brief time period. Once we break $1000 for ETH in 2021, though, most seem convinced that it will continue a very fast climb.
Bitcoin
Bitcoin continues to reach new heights. It had dropped to right around $32000, but has regained those losses and is now trading at a little over $33k per BTC. This is an All-Time High for the #1 crypto in the world.
Ripple
Ripple (XRP) suffered a major loss after the announcement of the SEC lawsuit which wishes to classify the XRP asset as a security. Such a move has the potential to completely end XRP, and the project dropped to as low at $0.17 at one time in the last week. It has regained a bit of this, now trading at $0.23.
Now, this may not seem like that much of a gain, but think about this for a second...
If you had bought in at $0.17, you've now made a profit of a little over 25%.
However, until the resolution of the SEC lawsuit, I cannot, in good conscience, recommend XRP, as I will not recommend an asset that I would not buy myself. A couple of weeks ago, XRP almost reached the $1.00 milestone, only to have around 80% of that value wiped out. The danger with the SEC lawsuit is the potential for multiple state regulators to also jump on the bandwagon with cease and desist demands and lawsuits of their own. Such a move by multiple states against an American company would end that company, and unless you are comfortable taking that kind of a risk, I don't suggest XRP.
However, the plus side is that, because it is trading at a very low amount right now, it does not cost that much to buy a significant of the asset, and because it's so cheap right now, small bumps in price on the positive side has the potential to make investors comfortable with such risk a decent profit if all goes well.
Litecoin
One of the most surprising gains over the last few weeks has been Litecoin. Before the bull run started, Litecoin was down under $40 at one point. Today, it is trading in excess of $150! This is a gain of almost 400% for one of the oldest, most stable cryptocurrency projects out there -- so established is LTC that many refer to it as the silver to Bitcoin's gold.
Well, everyone, that's all for this morning's short update!
Keep those profits rolling in. Don't hold onto a project because you are emotionally attached to it. Instead, become emotionally attached to the profit potential and start trading when your assets reach a profit margin threshold that you have set for yourself.
As always....
Do your own research and don't spread fear, uncertainty, and doubt!
Image Credits: CoinTelegraph
NOTE: This article was updated 01/03/2021 to provide clarification on Ethereum and BTCs all time highs; and to add image credits.
