As cryptocurrencies crumble amid nuclear crisis in Ukraine, Waves Crypto appears to be holding its own with a slight daily rise of 2.42% at the time of writing. Even more interestingly, the price of Waves is up 100.1% weekly according to data from Coingecko. In 30 days, its growth peaks up to 128%.
Why has the value of Waves increased so much over the past 30 days?
Presentation Of The Project Behind Waves Crypto?
Founded in 2016, Waves is a cryptocurrency that enables the development of smart contracts and decentralized applications better known as Dapps. The real added value of Waves is that it allows the creation and exchange of customizable tokens. By this, we mean that the structure of Waves allows anyone to create their own cryptocurrency and at the same time offers a market to trade it.
The Waves blockchain uses the LPoS governance mechanism, which is very little used at the industry level. Leased Proof of Work is an improved version of PoS. In the Consensus PoS algorithm, for a node to be eligible to create the next block or even validate a transaction, it must hold a certain amount of cryptocurrency tokens.
On the other hand, within the LPoS, the node which will have the best chance of producing the next block is the one which has rented the most tokens on the ecosystem. It should be remembered that in the model, the holders of a token can decide to lend them in order to earn interest. By performing this act of lending, he delegates the security of the network into the hands of the lender.
The Waves ecosystem token is called (WAVES). It has no maximum bid. Currently, it would have nearly 107.6 million in circulation.
The Three Fundamental Factors That Fueled Waves’ Recent Rise
According to what Cointelegraph reported, there are three factors behind the recent rebound of Waves. First, there is the launch of the crypto mainnet or better said Waves 2.0. Next, Waves made a strategic partnership with Allbridge to facilitate the transfer of assets to its platform. Finally, Waves launched a funding plan to expand and improve its ecosystem. Let’s see these factors in detail
The Waves migration should allow the protocol to increase interoperability with other networks, including support for the Ethereum Virtual Machine (EVM). Waves will move from LPoS to PPoSS (Practical Proof-of-Stake Sharding).
To help him achieve his goals through Waves 2.0, he has partnered with Allbridge, a cryptographic structure that allows cryptocurrencies to be transferred to different networks. Allbridge has been very ambitious about the partnership.
Our goal is to create a single bridge between Waves and supported EVM and non-EVM chains, such as NEAR Protocol, Solana, and Terra. “: can we read on the Allbridge psychic blog.
The last factor is this financing plan of up to 150 million put in place by the cryptocurrency. Waves tweeted:
💼 Waves Labs, now headquartered in Miami, returns to support the rapid growth of the entire ecosystem.
A $150 million fund and incubation program will soon be launched for US teams building products on Waves. The United States is a key market to drive mass adoption in 2022.
Binance’s Announcement Also Gave A Boost
Although the crypto has already been listed on the exchange, Binance has announced that it has just added Waves and other cryptos as a collateral asset for loans on the platform. Binance’s press release reads:
Binance has added MATIC, SLP, THETA, and WAVES as collateral assets on the Binance Loans platform.
Binance Loans offers a wide range of options for supported crypto assets, interest rates, collateral assets, and maximum loan limits based on market conditions and internal risk management.
From the date of the announcement to the time of writing this article, Waves’ price has risen more than 20%.
Technical Analysis Says Watch Out For Death Cross
Despite Waves has achieved a rather extraordinary performance over the past few days. From $8.91 to $20.35 between February 4 to March 4, an increase of 128% in 30 days. The price of Waves is incurring a fairly bearish technical setup. In fact Waves could be hit by what is called the “Croix de la Mort ” or “Death Cross.” A technical setup that generally propels asset prices down.
The Death Cross occurs when an asset’s short-term moving average falls below its long-term average. In the case of Waves, this technical configuration has already occurred because we can see that the EMA-50 (16.09) on a weekly basis is above the EMA 20 ($15.42). When looking at the chart history of Waves, a death cross had already hit the crypto price in 2018. After the occurrence of the pattern, the price of Waves had dropped by 85%.
It must be remembered that the year 2018 was a period of great decline for the market after the ICO crisis in 2017. So, it is completely understandable that Waves fell so much during this year. However, some think that the year 2022 is very similar to that of 2018, especially since cryptocurrencies are not really taking off. So, can Waves suffer the same fate as 2018?