According to Coinbase, the Bitcoin halving is predicted to occur on April 17. This event, which occurs approximately every four years, is highly anticipated by dedicated investors due to its significant impact on the market. leading up to this event, investors are actively positioning themselves in Bitcoin and popular altcoins like AltLayer (ALT) and Pendle, in preparation for potential price increases following the halving.
What’s Bitcoin Halving, Why Does it Matter?
The Bitcoin code includes a rule that reduces the number of new coins created every four years by half. To put it another way, the compensation given to miners for verifying transactions is decreased by 50%, which in turn leads to a substantial decrease in the total amount of Bitcoin in circulation.
Following the halving that occurred in 2020, miners received 6.25 Bitcoins as rewards for each block of transactions, which had previously given them 12.5 Bitcoins. In April 2024, another halving is scheduled to take place, reducing the reward to only 3.125 Bitcoins per block.
The halving procedure is anticipated to continue until all 21 million Bitcoins (approximately by the year 2140) have been mined. Concurrently, miners perform transaction verifications and safeguard the network, for which they receive compensation.
Reducing the production of new Bitcoins in half is crucial, as it helps regulate inflation and make Bitcoin increasingly rare. This scarcity, combined with a continually growing desire for it, contributes to Bitcoin’s status as one of the most coveted digital currencies globally.
The act of reducing the supply of Bitcoin by half, or “halving,” has a significant impact on that cryptocurrency. However, this event can also create a ripple effect throughout the entire crypto market, leading to increased demand and positive price movements for altcoins. This surge in interest towards altcoins is a result of the optimistic mood generated by Bitcoin’s rally, which sets new record highs.
Investors often seek to expand their crypto investments by including altcoins such as AltLayer (ALT) and Pendle in their portfolios. Some of these tokens can experience remarkable growth, surpassing Bitcoin’s performance, enabling investors to acquire more Bitcoin or generate substantial profits within the cryptocurrency market.
AltLayer (ALT)
AltLayer ranks among the front-runners in the field of staking or re-staking tokens, also known as restaking. According to the project’s website, EigenLayer’s mechanism is utilized in restaked rollups. This leads to rollups that are more decentralized, secure, interoperable, and efficient.
Three “Actively Validated Services” (AVS) make up a project’s rollups, which can be set up on-demand for each specific rollup, functioning in a vertically integrated manner.
After being introduced in 2022, AltLayer experienced significant growth with the aid of an active social following numbering over 670,000 people on several platforms. These enthusiasts engage in diverse discussions, contributing to the progression of the staking industry.
The value of ALT, the crypto driving the ecosystem, is pegged at a market capitalization of $761 million, placing it as the 138th largest cryptocurrency. Due to increasing attention towards the token, it boasts an impressive trading volume of approximately $158 million per day.
On Tuesday, April 9, the price of AltLayer stayed around $0.6, representing a 3.7% decrease, adding to the previous 12% rise over the past week.
Potential investors should take note of its 10 billion total and maximum supply and circulating supply of only 1.255 billion. This shows that the network will keep unlocking more tokens which could dampen price performance in the long run.
Pendle (PENDLE)
In the world of cryptocurrencies, Pendle makes a name for itself as an innovator through its unique staking protocol. This sets it apart with its fresh approach to separating yield from the ownership of the base assets.
With this advanced feature, users can improve their yield management skills and have the ability to trade future yields in a secondary market.
Instead of being similar to other DeFi platforms, Pendle sets itself apart by enhancing yield management in Decentralized Finance through increased liquidity and flexibility, revolutionizing how investors handle their investment portfolios.
One PENDLE token currently costs around $6.31 based on the current market exchange rate. However, the value of this token has decreased by nearly 3% over the past 24 hours according to information from CoinMarketCap.
Despite a recent market slump leading to a temporary decrease, Pendle has experienced remarkable growth over the past month with an impressive gain of 110%, adding to its exceptional increase of 1,292% in the previous year.
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2024-04-09 22:02