Will CashFi and Avalanche Capitalize on JP Morgan’s Support for Bitcoin?
2022.06.07 18:06
Will CashFi and Avalanche Capitalize on JP Morgan’s Support for Bitcoin?
2022 has been challenging for crypto investors as global markets keep plunging. However, the crypto industry is known for its violent reversals when the market takes a positive outlook.
JP Morgan, a New York-based multinational investment bank claimed that Bitcoin (BTC) is undervalued and has the potential to rise to $38,000. As JP Morgan changes its tune on Bitcoin (BTC), many people are wondering what could happen to the broader crypto market.
A rise in BTC’s price will have a ripple effect across the board and could see projects such CashFi (CFI) and Avalanche (AVAX) skyrocket.
A Case for Bitcoin
The remarks by JP Morgan should not be taken for granted as they could be a guiding light to where the crypto market is headed next.
The leading digital asset has been hovering around the $30,000 range for some time. It has been observed that the crypto market is correlated to the stock market, especially tech stocks that have been in freefall.
The most important observation to note is that while some altcoins and tech stocks have been falling, Bitcoin (BTC) has maintained a respectable support level as it fights the sell-off.
Aside from the price, institutional investors are making big bets on crypto as veteran traders such as Alan Howard and Paul Tudor Jones are ramping up their trading on cryptocurrencies. This is a sign of bigger things to come and the belief that mainstream investors have in Bitcoin (BTC) and by extension, the entire crypto market.
Some analysts have argued that Bitcoin (BTC) may not recover immediately, while others are of the view that the leading cryptocurrency has entered the oversold territory and is probably due for an upward correction any time soon.
There is still a long way to go but Bitcoin’s prospects are looking good. Altcoins stand to benefit from this, and CashFi is waiting for its break-out moment.
CashFi (CFI)
CashFi is the next-generation decentralized protocol. Its native CFI token is an ERC20 utility token that will be at the heart of CashFi’s ecosystem.
CFI staking will play a major role in the CashFi ecosystem. The ecosystem is using liquid staking to reduce illiquidity for staked commodities.
Liquid staking is acting of delegating your tokens without losing access to the staked tokens, in this case, CFI tokens.
Many users are expected to try or turn to liquid staking because legacy staking has several shortcomings including:
- Asset inefficiency – Staked tokens cannot be used for other activities, such as lending and borrowing, because they are locked.
- Lack of instant liquidity – users cannot access their staked tokens anytime.
- Decreased security – many people stay away from staking because staked tokens are held up for a long time. This could be dangerous if a protocol is hacked or the value of the staked tokens is plunging and token holders want to cash out.
CashFi aims to solve these challenges through liquid staking.
DeFi users will likely flock to the CashFi ecosystem to earn passive income while unlocking new benefits and features that they didn’t enjoy before.
And as the price of Bitcoin goes up, it will give many people the room to leave their tokens staked, especially the CFI token as its value will likely soar.
Avalanche (AVAX)
Avalanche (AVAX) is one of the fastest smart contract platforms in the crypto industry. It is fast, eco-friendly, and low-cost.
It has grown into an ecosystem with more than 450 projects. Its native token is AVAX, and it is used to pay for fees connected to trading on the platform.
The Avalanche (AVAX) ecosystem will likely attract more projects and users when the crypto market, led by Bitcoin, starts to recover.
Find more information about CashFi on the official website, Telegram, Twitter (NYSE:TWTR) and Instagram. To find more about the presale, click here.
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