The rise of cryptocurrencies: as decentralized and whales are redefining the market

In recent years, the world of finances has witnessed a significant movement towards decentralization. The emergence of cryptocurrencies such as Bitcoin, Ethereum and others has revolutionized the way we think about money, property and control. A key aspect of these new technologies is their decentralized nature, in which transactions are recorded on a public master book (Blockchain) and a mechanism of consent, eliminating the need for intermediate and government intervention.

Decentralization: The backbone of cryptocurrencies

The term “decentralization” references to the process by which power and control are distributed between multiple nodes, rather than being concentrated in the hands of a single entity. In the context of cryptocurrencies, this means that transactions are carried out without the need for intermediaries such as banks or central governments.

The decentralized nature of cryptocurrencies is facilitated by serious key factors:

• Blockchain Technology : The blockchain allows safe, transparent and resistant records to tamper with all transactions.

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Whales: the greatest cryptocurrency holders

The term “whale” references to a great investor who holds significant quantities of cryptocurrency. These people areten hold multiple coins, who can be used to speculate on market trends or simply for convenience. The whales play a crucial role in modeling the dynamics of the market and can have a significant impact on price movements.

According to CoinmarketCap data, some of the largest whales in the encryption space including:

• Uniswap (V2) : a decentralized exchange (Dex) which has accumulated over $ 5 billion in participation.

• Balance protocol : a liquidity protocol that allows users to lend and borrow the Dex coins with minimum commissions.

• SUSHISWAP

  

  : a decentralized exchange (Dex) that offers a wide range of cryptocurrency couples.

Mercato capitalization: the value of decentralized cryptocurrencies

Market capitalization references to the total value of all actions or tokens in circulation on an exchange. This metric provides insights on the overall feeling and the adoption of a particular cryptocurrency.

Starting from March 2023, the first five cryptocurrencies for market capitalization are:

• Bitcoin (BTC) : with a market capitalization of over $ 500 billion.

• Ethereum (ETH) : with a market capitalization of about $ 150 billion.

• TETHER (USDT)

  : a Stablecoin was anchored to the US dollar, with a market capitalization of less than $ 10 billion.

• Binance Coin (BNB) : Binance Exchange’s native cryptocurrency, with a market capitalization of over $ 20 billion.

• Cardano (Ada) : a decentralized platform that focuses on scalability and safety, with a market capitalization of about $ 3.

The impact of decentralized whales

Decentralized whales have a significant impact on the cryptocurrency market due to their great participations and influence on market trends. Can:

• Specular on price movements : by purchasing or selling coins in response to market conditions, decentralized whales can affect the dynamics of overall prices.

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• Creating liquidity pool : whales can contribute to liquidity by purchasing and keeping coins with other investors, facilitating the trading activity.

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