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Chainlink’s LINK Token: Potential Buying Opportunity Amid Bearish Trend?
Coinspeaker Chainlink’s LINK Token: Potential Buying Opportunity amid Bearish Trend?
The native token of Chainlink, LINK, has been on a downtrend for a while, with the price falling even further over the past six days, following the broader market trend. Despite this, an on-chain analyst on X has provided a glimmer of hope for investors.
LINK, which serves as an incentive mechanism for users participating in the decentralized oracle network, has experienced price fluctuations. After reaching its highest point this year at around $22 in early March, the bears took control of the market, pushing the price down to $16, where it found significant support. However, the bulls were unable to sustain the price at this level, resulting in a continued dip. Currently, the price is trading at $13, representing a decline of around 50% from its highest price this year.
A Potential Buying Opportunity?
However, amidst this bearish trend, an on-chain analyst on X named AliChart has spotted a potentially favorable moment for investors to consider buying Chainlink’s LINK token. According to AliChart’s fundamental analysis, each time the coin’s 30-day MVRV (Market Value to Realized Value) ratio has fallen below -12.24% since August 2022, it has signaled an opportune time for investors to start buying the coin, potentially resulting in a 50% return.
Notably, the coin’s MVRV 30-Day Ratio currently stands at -17.54%, which AliChart believes presents another opportunity to buy the coin. The MVRV ratio is a metric used to assess the potential for profit or loss based on the current market value compared to the realized value of the asset.
While AliChart’s analysis seems optimistic, the market situation of the token paints a different picture. The coin’s market capitalization has decreased by over 0.6%, and the trading volume has dropped by over 40%, indicating a bearish sentiment among traders.
Bullish Predictions and Future Outlook for Chainlink’s LINK
At the time of writing, the LINK token is trading around $13. In order for the bulls to regain control of the market, they will need to push the price above the immediate resistance level at $14.7, which would require a substantial surge in buying pressure. If successful, the coin could potentially spike to another key level at $16. Should the coin surpass these key levels as well, then the analyst’s prediction will begin to materialize.
Furthermore, Ash Crypto, another notable crypto trader on X with over 1 million followers, recently included the coin in the list of coins he is monitoring for potential spikes within the next 12 to 15 months. Ash Crypto anticipates the coin to reach heights between $250 and $500, indicating a significant potential upside if the bullish scenario unfolds.
Based on the technical analysis and forecast provided, it can be inferred that there is still a near-term bullish sentiment for the coin. Therefore, investors and traders alike will need to keep a keen eye on the coin’s price movement in the next few days and be on the lookout for possible entry points.
next
Chainlink’s LINK Token: Potential Buying Opportunity amid Bearish Trend?
The native token of Chainlink, LINK, has been on a downtrend for a while, with the price falling even further over the past six days, following the broader market trend. Despite this, an on-chain analyst on X has provided a glimmer of hope for investors.
LINK, which serves as an incentive mechanism for users participating in the decentralized oracle network, has experienced price fluctuations. After reaching its highest point this year at around $22 in early March, the bears took control of the market, pushing the price down to $16, where it found significant support. However, the bulls were unable to sustain the price at this level, resulting in a continued dip. Currently, the price is trading at $13, representing a decline of around 50% from its highest price this year.
A Potential Buying Opportunity?
However, amidst this bearish trend, an on-chain analyst on X named AliChart has spotted a potentially favorable moment for investors to consider buying Chainlink’s LINK token. According to AliChart’s fundamental analysis, each time the coin’s 30-day MVRV (Market Value to Realized Value) ratio has fallen below -12.24% since August 2022, it has signaled an opportune time for investors to start buying the coin, potentially resulting in a 50% return.
Notably, the coin’s MVRV 30-Day Ratio currently stands at -17.54%, which AliChart believes presents another opportunity to buy the coin. The MVRV ratio is a metric used to assess the potential for profit or loss based on the current market value compared to the realized value of the asset.
While AliChart’s analysis seems optimistic, the market situation of the token paints a different picture. The coin’s market capitalization has decreased by over 0.6%, and the trading volume has dropped by over 40%, indicating a bearish sentiment among traders.
Bullish Predictions and Future Outlook for Chainlink’s LINK
At the time of writing, the LINK token is trading around $13. In order for the bulls to regain control of the market, they will need to push the price above the immediate resistance level at $14.7, which would require a substantial surge in buying pressure. If successful, the coin could potentially spike to another key level at $16. Should the coin surpass these key levels as well, then the analyst’s prediction will begin to materialize.
Furthermore, Ash Crypto, another notable crypto trader on X with over 1 million followers, recently included the coin in the list of coins he is monitoring for potential spikes within the next 12 to 15 months. Ash Crypto anticipates the coin to reach heights between $250 and $500, indicating a significant potential upside if the bullish scenario unfolds.
Based on the technical analysis and forecast provided, it can be inferred that there is still a near-term bullish sentiment for the coin. Therefore, investors and traders alike will need to keep a keen eye on the coin’s price movement in the next few days and be on the lookout for possible entry points.
next
Chainlink’s LINK Token: Potential Buying Opportunity amid Bearish Trend?
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Hello Pal Announces 12-Month High Crypto Mining Revenue of $1.82 Million
Coinspeaker Hello Pal Announces 12-Month High Crypto Mining Revenue of $1.82 Million
While the crypto industry is reeling from the aftereffects of the Iran attack on Israel over the past weekend, Hello Pal, a popular social messaging app with several arms of businesses, announced its crypto mining unit witnessed significant revenue growth over the past 12 months.
According to an official press release, the monthly revenue generated from the company’s crypto mining business has ranged from 170,000 Canadian dollars to 317,000 in the past 12 months, with March recording the highest figure. The company made 2.5 million Canadian dollars worth approximately $1.82 million from mining Dogecoin (DOGE) and Litecoin (LTC) in total. Hello Pal said that electricity contributed around 30% of the revenue.
Hello Pal’s Live Streaming Business Sees Positive Return
Aside from the crypto business, which saw a good turnaround in its endeavors, other arms of the company were not left behind. Hello Pal’s efforts to expand its live streaming operations abroad paid off, as the business had a positive revenue return.
Over the last year, these efforts have resulted in monthly revenues ranging from 200,000 Canadian dollars to 580,000.
The company has also made progress in its business offerings following its departure from the Chinese market. In its announcement, the company said it has made alterations to its flagship app to suit users in the Middle East.
The app has been created with specifications to meet user requirements outside China. The updated versions are set to be launched soon, and the company is optimistic about the potential for increased live-streaming revenue in the Middle Eastern market.
A Business Setback
Despite these positive developments, Hello Pal’s common shares are currently under a cease trade order due to the company’s failure to file audited financial statements for the fiscal year ending 2023.
The company is seeking an auditor to audit these financial statements so that it can resume trading. Once the auditor has been engaged, Hello Pal will update the market on the expected timing for filing the overdue 2023 YE Financials.
The company faced similar challenges last year. In June 2023, Hello Pal submitted an application to the British Columbia, Alberta, and Ontario Securities Commission for a management cease and desist order.
The firm wanted the authorities to stop its CEO and the interim chief financial official from trading securities listed by the firm until they file audited financial statements for the year 2022. However, the order did not apply to the general public as the securities were available for investors to trade.
next
Hello Pal Announces 12-Month High Crypto Mining Revenue of $1.82 Million
While the crypto industry is reeling from the aftereffects of the Iran attack on Israel over the past weekend, Hello Pal, a popular social messaging app with several arms of businesses, announced its crypto mining unit witnessed significant revenue growth over the past 12 months.
According to an official press release, the monthly revenue generated from the company’s crypto mining business has ranged from 170,000 Canadian dollars to 317,000 in the past 12 months, with March recording the highest figure. The company made 2.5 million Canadian dollars worth approximately $1.82 million from mining Dogecoin (DOGE) and Litecoin (LTC) in total. Hello Pal said that electricity contributed around 30% of the revenue.
Hello Pal’s Live Streaming Business Sees Positive Return
Aside from the crypto business, which saw a good turnaround in its endeavors, other arms of the company were not left behind. Hello Pal’s efforts to expand its live streaming operations abroad paid off, as the business had a positive revenue return.
Over the last year, these efforts have resulted in monthly revenues ranging from 200,000 Canadian dollars to 580,000.
The company has also made progress in its business offerings following its departure from the Chinese market. In its announcement, the company said it has made alterations to its flagship app to suit users in the Middle East.
The app has been created with specifications to meet user requirements outside China. The updated versions are set to be launched soon, and the company is optimistic about the potential for increased live-streaming revenue in the Middle Eastern market.
A Business Setback
Despite these positive developments, Hello Pal’s common shares are currently under a cease trade order due to the company’s failure to file audited financial statements for the fiscal year ending 2023.
The company is seeking an auditor to audit these financial statements so that it can resume trading. Once the auditor has been engaged, Hello Pal will update the market on the expected timing for filing the overdue 2023 YE Financials.
The company faced similar challenges last year. In June 2023, Hello Pal submitted an application to the British Columbia, Alberta, and Ontario Securities Commission for a management cease and desist order.
The firm wanted the authorities to stop its CEO and the interim chief financial official from trading securities listed by the firm until they file audited financial statements for the year 2022. However, the order did not apply to the general public as the securities were available for investors to trade.
next
Hello Pal Announces 12-Month High Crypto Mining Revenue of $1.82 Million
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Centrifuge Closes Oversubscribed Series a Funding With $15M to Scale Adoption of Institutional DeFi
Coinspeaker Centrifuge Closes Oversubscribed Series A Funding with $15M to Scale Adoption of Institutional DeFi
Ahead of the fourth Bitcoin halving and the premier crypto event in Dubai, the Centrifuge (CFG) platform announced the closure of Series A funding round with $15 million at hand. According to the company, the funding round led by ParaFi Capital and Greenfield attracted key participants from all over the world. Some of the Centrifuge platform investors include Arrington Capital, Bloccelerate, Borderless Capital, Circle Ventures, Edessa Capital, Gnosis, IOSG Ventures, Modular Capital, and ProtoCap, among many others.
Centrifuge has raised $15M to scale the adoption of institutional DeFi.
With this round of Series A funding secured, we're excited to share our key focuses for Centrifuge's development, innovation, and adoption across the worlds of traditional and decentralized finance: ↓… pic.twitter.com/xYJ57Kai1K
— Centrifuge (@centrifuge) April 17, 2024
The strategic investment will be used to further build reputable products and crucial hirings to enable seamless adoption of institutional decentralized financial (DeFi) ecosystems. Furthermore, the Centrifuge platform has established its operations over the years as a leader in real-world assets (RWA) tokenization.
“We’re focused on building a fundamentally better financial system. DeFi has always been about accessibility, transparency, and interoperability, making markets more open, fair, and decentralized. We’re bringing these innovations to institutions in a compliant and safe way. We are not recreating existing off-chain processes on-chain, we are creating new, interesting opportunities never before possible,” Lucas Vogelsang, Centrifuge Co-founder, noted.
According to Ben Forman, the founder and Managing Partner at ParaFi Capital, the Centrifuge platform has grown to a major tokenization platform for all global assets including stocks, bonds, collectibles, currencies, and commodities, among others.
“We believe we’re reaching an inflection point in institutional adoption and are excited to double down with the Centrifuge team,” Forman added.
What Next for Centrifuge Platform
Having secured the funds amid the ongoing cryptocurrency bull market, the Centrifuge platform has announced plans are in place to launch an institutional-grade lending market for RWAs. Centrifuge’s RWA lending platform will be built on Ethereum’s layer two scaling solution backed by Coinbase Global Inc (NASDAQ: COIN), Base, and integrated with Coinbase Verification.
Consequently, the Centrifuge platform will enable institutions to quickly verify and onboard real-world assets. With the new RWA lending platform, the real-world asset market will be democratized without sacrificing compliance requirements.
“Centrifuge is a pioneer in real-world assets, and is now scaling using Coinbase Verifications and Base as the open-source settlement layer. This is an important step in ensuring Institutional clients can build with Centrifuge in a safe and secure manner across the Coinbase ecosystem,” Anthony Bassili, Head of Allocators and Tokenization at Coinbase Global, noted.
Market Picture
Following the announcement, the Ethereum-based CFG token bumped to as high as 85 cents before retracing below 69 cents fueled by the ongoing Bitcoin-led crypto correction. Notably, the Centrifuge (CFG) price has gained about 9 percent in the past four weeks to a fully diluted valuation of about $378 million.
The small-cap altcoin is well-positioned to grow further in the coming quarters amid the mainstream adoption of RWA tokenization by institutional investors all over the world.
next
Centrifuge Closes Oversubscribed Series A Funding with $15M to Scale Adoption of Institutional DeFi
Ahead of the fourth Bitcoin halving and the premier crypto event in Dubai, the Centrifuge (CFG) platform announced the closure of Series A funding round with $15 million at hand. According to the company, the funding round led by ParaFi Capital and Greenfield attracted key participants from all over the world. Some of the Centrifuge platform investors include Arrington Capital, Bloccelerate, Borderless Capital, Circle Ventures, Edessa Capital, Gnosis, IOSG Ventures, Modular Capital, and ProtoCap, among many others.
Centrifuge has raised $15M to scale the adoption of institutional DeFi.
With this round of Series A funding secured, we're excited to share our key focuses for Centrifuge's development, innovation, and adoption across the worlds of traditional and decentralized finance: ↓… pic.twitter.com/xYJ57Kai1K
— Centrifuge (@centrifuge) April 17, 2024
The strategic investment will be used to further build reputable products and crucial hirings to enable seamless adoption of institutional decentralized financial (DeFi) ecosystems. Furthermore, the Centrifuge platform has established its operations over the years as a leader in real-world assets (RWA) tokenization.
“We’re focused on building a fundamentally better financial system. DeFi has always been about accessibility, transparency, and interoperability, making markets more open, fair, and decentralized. We’re bringing these innovations to institutions in a compliant and safe way. We are not recreating existing off-chain processes on-chain, we are creating new, interesting opportunities never before possible,” Lucas Vogelsang, Centrifuge Co-founder, noted.
According to Ben Forman, the founder and Managing Partner at ParaFi Capital, the Centrifuge platform has grown to a major tokenization platform for all global assets including stocks, bonds, collectibles, currencies, and commodities, among others.
“We believe we’re reaching an inflection point in institutional adoption and are excited to double down with the Centrifuge team,” Forman added.
What Next for Centrifuge Platform
Having secured the funds amid the ongoing cryptocurrency bull market, the Centrifuge platform has announced plans are in place to launch an institutional-grade lending market for RWAs. Centrifuge’s RWA lending platform will be built on Ethereum’s layer two scaling solution backed by Coinbase Global Inc (NASDAQ: COIN), Base, and integrated with Coinbase Verification.
Consequently, the Centrifuge platform will enable institutions to quickly verify and onboard real-world assets. With the new RWA lending platform, the real-world asset market will be democratized without sacrificing compliance requirements.
“Centrifuge is a pioneer in real-world assets, and is now scaling using Coinbase Verifications and Base as the open-source settlement layer. This is an important step in ensuring Institutional clients can build with Centrifuge in a safe and secure manner across the Coinbase ecosystem,” Anthony Bassili, Head of Allocators and Tokenization at Coinbase Global, noted.
Market Picture
Following the announcement, the Ethereum-based CFG token bumped to as high as 85 cents before retracing below 69 cents fueled by the ongoing Bitcoin-led crypto correction. Notably, the Centrifuge (CFG) price has gained about 9 percent in the past four weeks to a fully diluted valuation of about $378 million.
The small-cap altcoin is well-positioned to grow further in the coming quarters amid the mainstream adoption of RWA tokenization by institutional investors all over the world.
next
Centrifuge Closes Oversubscribed Series A Funding with $15M to Scale Adoption of Institutional DeFi
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Chad Steingraber Explains Why XRP Lags Despite Ripple’s Partnerships
Coinspeaker Chad Steingraber Explains Why XRP Lags despite Ripple’s Partnerships
Chad Steingraber, a professional game developer has provided explanations why XRP, the cryptocurrency associated with Ripple Labs Inc, is underperforming despite recent partnerships and payment utility.
XRP’s Trading Volume Decreases
As of the latest CoinMarketCap data, XRP is trading at $0.4924, representing a 1.7% increase in the past day, with its market capitalization standing at $27 billion. The trading volume is down by 34.9% to $1.5 billion, indicating dwindling interest from investors.
According to Steingraber, one main reason for XRP’s underperformance is that the cryptocurrency is primarily traded Over-The-Counter (OTC) rather than on public exchanges such as Binance Holdings Ltd and Kraken.
The reason #XRP price is not affected by today’s partnerships and ODL/Payments utility use described below:
ALL use of #XRP globally today is essentially OTC trading that does not touch public crypto exchanges. Crypto exchanges currently today determine the price.
Traditional… https://t.co/fjZIj3tisH
— Chad Steingraber (@ChadSteingraber) April 17, 2024
Steingraber stated that while the price of XRP is currently determined by supply and demand on exchanges, traditional finance institutions such as Bank of America Corp (NYSE: BAC) are restricted from using the asset due to regulatory requirements. Thus, they engage in OTC for XRP trading.
He, however, noted that XRP price will begin to surge when demand from businesses increases. He painted a scenario where firms will start accumulating more XRP from any available source, including public exchanges fueled by an increase in demand.
Besides the influence of XRP’s utility, Steingraber pointed out investment through Exchange-Traded Funds (ETF) as a key factor that could influence the price of the cryptocurrency. According to him, investment activities beyond Ripple can remove XRP from public supply, further affecting its price.
Steingraber concluded that an outstanding price uptick for XRP would occur when public supply completely depletes due to increased demand from businesses and traditional financial firms.
What Makes Ripple Labs-backed XRP Stand Out
XRP primarily functions as a bridge currency, providing financial institutions with a more cost-effective way to trade crypto and fiat currencies. Ripple Labs’s selling pitch for XRP has always been the low transaction costs and speedy settlement status.
The network’s minimum transaction cost for a normal trade is 0.00002 XRP. Another unique feature of XRP is its scalability, which allows for 1,500 transactions per second. This is in addition to its inherent green characteristics, which make it carbon-neutral and energy-efficient.
In a positive development for XRP, Brad Garlinghouse, Ripple CEO expressed optimism regarding the potential launch of an XRP ETF. He cited the recent approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) as a signal of the possibility of additional ETFs entering the market.
Meanwhile, the ongoing legal battle between Ripple and the SEC has taken a new dimension, with the exchange’s legal team citing comparisons with the Govil case, as previously reported by Coinspeaker. Experts claim that if Ripple can demonstrate that no institutional investor suffered financial loss during the sale of XRP through its On-Demand Liquidity (ODL) platform, the Second Circuit’s stance on Govil bodes well for the defense of the payments firm.
next
Chad Steingraber Explains Why XRP Lags despite Ripple’s Partnerships
Chad Steingraber, a professional game developer has provided explanations why XRP, the cryptocurrency associated with Ripple Labs Inc, is underperforming despite recent partnerships and payment utility.
XRP’s Trading Volume Decreases
As of the latest CoinMarketCap data, XRP is trading at $0.4924, representing a 1.7% increase in the past day, with its market capitalization standing at $27 billion. The trading volume is down by 34.9% to $1.5 billion, indicating dwindling interest from investors.
According to Steingraber, one main reason for XRP’s underperformance is that the cryptocurrency is primarily traded Over-The-Counter (OTC) rather than on public exchanges such as Binance Holdings Ltd and Kraken.
The reason #XRP price is not affected by today’s partnerships and ODL/Payments utility use described below:
ALL use of #XRP globally today is essentially OTC trading that does not touch public crypto exchanges. Crypto exchanges currently today determine the price.
Traditional… https://t.co/fjZIj3tisH
— Chad Steingraber (@ChadSteingraber) April 17, 2024
Steingraber stated that while the price of XRP is currently determined by supply and demand on exchanges, traditional finance institutions such as Bank of America Corp (NYSE: BAC) are restricted from using the asset due to regulatory requirements. Thus, they engage in OTC for XRP trading.
He, however, noted that XRP price will begin to surge when demand from businesses increases. He painted a scenario where firms will start accumulating more XRP from any available source, including public exchanges fueled by an increase in demand.
Besides the influence of XRP’s utility, Steingraber pointed out investment through Exchange-Traded Funds (ETF) as a key factor that could influence the price of the cryptocurrency. According to him, investment activities beyond Ripple can remove XRP from public supply, further affecting its price.
Steingraber concluded that an outstanding price uptick for XRP would occur when public supply completely depletes due to increased demand from businesses and traditional financial firms.
What Makes Ripple Labs-backed XRP Stand Out
XRP primarily functions as a bridge currency, providing financial institutions with a more cost-effective way to trade crypto and fiat currencies. Ripple Labs’s selling pitch for XRP has always been the low transaction costs and speedy settlement status.
The network’s minimum transaction cost for a normal trade is 0.00002 XRP. Another unique feature of XRP is its scalability, which allows for 1,500 transactions per second. This is in addition to its inherent green characteristics, which make it carbon-neutral and energy-efficient.
In a positive development for XRP, Brad Garlinghouse, Ripple CEO expressed optimism regarding the potential launch of an XRP ETF. He cited the recent approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) as a signal of the possibility of additional ETFs entering the market.
Meanwhile, the ongoing legal battle between Ripple and the SEC has taken a new dimension, with the exchange’s legal team citing comparisons with the Govil case, as previously reported by Coinspeaker. Experts claim that if Ripple can demonstrate that no institutional investor suffered financial loss during the sale of XRP through its On-Demand Liquidity (ODL) platform, the Second Circuit’s stance on Govil bodes well for the defense of the payments firm.
next
Chad Steingraber Explains Why XRP Lags despite Ripple’s Partnerships
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ByteDance’s Subsidiary BytePlus and Mysten Labs Merge AI and Blockchain in Web3 Leap
Coinspeaker ByteDance’s Subsidiary BytePlus and Mysten Labs Merge AI and Blockchain in Web3 Leap
BytePlus, which is the tech arm of TikTok’s parent ByteDance, has announced a long-term partnership with Mysten Labs, the company that developed the Sui layer-1 blockchain.
BytePlus stated on April 17 that it would use its experience with AI and data storage to transform how the Sui ecosystem’s web3 games and SocialFi projects function. As a result of this new partnership, the two companies will be free to tap into each other’s innovative solutions like ByteHouse and Sui’s full-node data.
🚨BREAKING: BytePlus, the enterprise technology arm of ByteDance (the company behind @TikTok_US), is coming to Sui! pic.twitter.com/GtutYyFI5X
— Sui (@SuiNetwork) April 17, 2024
BytePlus ‘TikToking’ into Web3
The new partnership signals BytePlus’s entry into the Web3 world after the news. BytePlus’s AI solution could improve Sui’s analytical abilities, leading to unlimited scalability and real-time data processing, according to the release.
With BytePlus’s integration, Mysten Labs could also benefit from ByteHouse, which is BytePlus’s cloud-native data warehouse. In this case, the integration might make the overall user experience better and help Web3 games and SocialFi projects become a greater success.
Evan Cheng, co-founder and CEO of Mysten Labs, was positive about the partnership and talked about how it might improve the user experience in Web3 gaming platforms and SocialFi projects. He stressed how important it was to add AI and visual tools to Sui, which would be a huge step forward in Web3 data analytics.
“Integrating cutting-edge AI recommendation and visual algorithms into Sui signifies a leap toward enhancing user experience within Web3 game platforms and SocialFi projects,” explained he.
ByteDance Continues Exploration of Web3
This move by ByteDance into Web3 is not the first time the company has looked into blockchain technology. In 2019, the company teamed up with a Chinese government-run media group to make industry-specific business units for blockchain and AI.
Additionally, ByteDance’s attempt to get a virtual banking license in Singapore in June 2020 could be viewed as a demonstration of its interest in digital finance and blockchain technology.
Although Mysten Labs only released Sui in March 2022, it has grown and become popular very quickly in the blockchain community. Sui’s present partnership with BytePlus is the latest in a string of partnerships that aim to increase his reach and abilities.
Web3 Gaming Investments in 2024
There has been a lot of money going into Web3 game projects in 2024. Three companies – Australian venture capital firm King River Capital, blockchain game company Immutable, and Polygon Labs – announced in March that they would be starting a $100 million gaming fund.
Following suit, Andreessen Horowitz (a16z), a well-known venture capital company in Silicon Valley that was started by Marc Andreessen and Ben Horowitz, said it would put around $30 million into gaming startups this year.
next
ByteDance’s Subsidiary BytePlus and Mysten Labs Merge AI and Blockchain in Web3 Leap
BytePlus, which is the tech arm of TikTok’s parent ByteDance, has announced a long-term partnership with Mysten Labs, the company that developed the Sui layer-1 blockchain.
BytePlus stated on April 17 that it would use its experience with AI and data storage to transform how the Sui ecosystem’s web3 games and SocialFi projects function. As a result of this new partnership, the two companies will be free to tap into each other’s innovative solutions like ByteHouse and Sui’s full-node data.
🚨BREAKING: BytePlus, the enterprise technology arm of ByteDance (the company behind @TikTok_US), is coming to Sui! pic.twitter.com/GtutYyFI5X
— Sui (@SuiNetwork) April 17, 2024
BytePlus ‘TikToking’ into Web3
The new partnership signals BytePlus’s entry into the Web3 world after the news. BytePlus’s AI solution could improve Sui’s analytical abilities, leading to unlimited scalability and real-time data processing, according to the release.
With BytePlus’s integration, Mysten Labs could also benefit from ByteHouse, which is BytePlus’s cloud-native data warehouse. In this case, the integration might make the overall user experience better and help Web3 games and SocialFi projects become a greater success.
Evan Cheng, co-founder and CEO of Mysten Labs, was positive about the partnership and talked about how it might improve the user experience in Web3 gaming platforms and SocialFi projects. He stressed how important it was to add AI and visual tools to Sui, which would be a huge step forward in Web3 data analytics.
“Integrating cutting-edge AI recommendation and visual algorithms into Sui signifies a leap toward enhancing user experience within Web3 game platforms and SocialFi projects,” explained he.
ByteDance Continues Exploration of Web3
This move by ByteDance into Web3 is not the first time the company has looked into blockchain technology. In 2019, the company teamed up with a Chinese government-run media group to make industry-specific business units for blockchain and AI.
Additionally, ByteDance’s attempt to get a virtual banking license in Singapore in June 2020 could be viewed as a demonstration of its interest in digital finance and blockchain technology.
Although Mysten Labs only released Sui in March 2022, it has grown and become popular very quickly in the blockchain community. Sui’s present partnership with BytePlus is the latest in a string of partnerships that aim to increase his reach and abilities.
Web3 Gaming Investments in 2024
There has been a lot of money going into Web3 game projects in 2024. Three companies – Australian venture capital firm King River Capital, blockchain game company Immutable, and Polygon Labs – announced in March that they would be starting a $100 million gaming fund.
Following suit, Andreessen Horowitz (a16z), a well-known venture capital company in Silicon Valley that was started by Marc Andreessen and Ben Horowitz, said it would put around $30 million into gaming startups this year.
next
ByteDance’s Subsidiary BytePlus and Mysten Labs Merge AI and Blockchain in Web3 Leap
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SingularityNET Teams Up With Cardano’s Minswap for AI-Driven DeFi
Coinspeaker SingularityNET Teams Up with Cardano’s Minswap for AI-Driven DeFi
SingularityNet, a decentralized platform focused on AI, has teamed up with Minswap Labs, a multi-pool decentralized exchange (DEX) built on Cardano. Announcing on April 17, SingularityNet stated that the two companies would be working together to transform decentralized finance (DeFi) on the Cardano blockchain by integrating DeFi technology with artificial intelligence (AI).
The new partnership between Minswap Labs and SingularityNet signals a new age of innovation, which promises to enhance the functionality and efficiency of AI and DeFi within the Web3 ecosystem.
Bringing AI to Cardano’s DeFi Ecosystem
As per the announcement, the new partnership is multi-faceted and will focus on a number of key areas. One of the main goals is to use SingularityNET’s AI expertise to supplement the Minswap platform. As such, Minswap will leverage SingularityNET’s AI tech stack to improve the user interfaces, enhance transaction processes, and optimize liquidity provision via smart analysis and prediction.
In addition, the new collaboration will amplify accessibility and the utility of SingularityNET’s native token, AGIX, through integration with Minswap. As a result, the new partnership might open up new methods for AGIX hodlers to engage in DeFi activities in the Cardano ecosystem.
Furthermore, the two companies intend to create new products and solutions for the Web3 ecosystem by exploring new ways of combining both AI and DeFi for mutual benefit. Both businesses are additionally keen to develop new products and solutions for the Web3 ecosystem as a whole, looking for creative ways to integrate AI and DeFi technologies that will benefit both.
Ben Goertzel, CEO of SingularityNET, was excited about the new partnership and said that AI could change many things about the Minswap platform. His said:
“The use of modern AI can enhance what a top-grade DEX like MinSwap already does, from providing intelligent interactive user interfacing to help end-users better leverage MinSwap’s capabilities, to uses of AI predictive and causal analysis within agents carrying out transactions on the exchange and assisting with liquidity provision.”
Together, the two businesses will work on liquidity pools (LPs), various connections, and maybe even adding SingularityNET’s token bridge functionality to the Minswap platform in the future. This could make it easier for AGIX and ADA to work together and make them more useful on both platforms and in the larger Cardano community.
ADA and AGIX Ready for the Price Rally?
The announcement of the new partnership had an impact on both ADA and AGIX prices. Cardano’s ADA price has slightly declined by 3.3% over the last 24 hours, while AGIX has seen a 2% decline over the same time period. At the time of writing, ADA is trading at $0.4443, while AGIX is trading at $0.8054, according to CoinmarketCap data.
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SingularityNET Teams Up with Cardano’s Minswap for AI-Driven DeFi
SingularityNet, a decentralized platform focused on AI, has teamed up with Minswap Labs, a multi-pool decentralized exchange (DEX) built on Cardano. Announcing on April 17, SingularityNet stated that the two companies would be working together to transform decentralized finance (DeFi) on the Cardano blockchain by integrating DeFi technology with artificial intelligence (AI).
The new partnership between Minswap Labs and SingularityNet signals a new age of innovation, which promises to enhance the functionality and efficiency of AI and DeFi within the Web3 ecosystem.
Bringing AI to Cardano’s DeFi Ecosystem
As per the announcement, the new partnership is multi-faceted and will focus on a number of key areas. One of the main goals is to use SingularityNET’s AI expertise to supplement the Minswap platform. As such, Minswap will leverage SingularityNET’s AI tech stack to improve the user interfaces, enhance transaction processes, and optimize liquidity provision via smart analysis and prediction.
In addition, the new collaboration will amplify accessibility and the utility of SingularityNET’s native token, AGIX, through integration with Minswap. As a result, the new partnership might open up new methods for AGIX hodlers to engage in DeFi activities in the Cardano ecosystem.
Furthermore, the two companies intend to create new products and solutions for the Web3 ecosystem by exploring new ways of combining both AI and DeFi for mutual benefit. Both businesses are additionally keen to develop new products and solutions for the Web3 ecosystem as a whole, looking for creative ways to integrate AI and DeFi technologies that will benefit both.
Ben Goertzel, CEO of SingularityNET, was excited about the new partnership and said that AI could change many things about the Minswap platform. His said:
“The use of modern AI can enhance what a top-grade DEX like MinSwap already does, from providing intelligent interactive user interfacing to help end-users better leverage MinSwap’s capabilities, to uses of AI predictive and causal analysis within agents carrying out transactions on the exchange and assisting with liquidity provision.”
Together, the two businesses will work on liquidity pools (LPs), various connections, and maybe even adding SingularityNET’s token bridge functionality to the Minswap platform in the future. This could make it easier for AGIX and ADA to work together and make them more useful on both platforms and in the larger Cardano community.
ADA and AGIX Ready for the Price Rally?
The announcement of the new partnership had an impact on both ADA and AGIX prices. Cardano’s ADA price has slightly declined by 3.3% over the last 24 hours, while AGIX has seen a 2% decline over the same time period. At the time of writing, ADA is trading at $0.4443, while AGIX is trading at $0.8054, according to CoinmarketCap data.
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SingularityNET Teams Up with Cardano’s Minswap for AI-Driven DeFi
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Web3 Investment Jump 55% in Q1 As VC Confidence Returns to Sector
Coinspeaker Web3 Investment Jump 55% in Q1 as VC Confidence Returns to Sector
The total amount spent on Web3 investments went up by 55% in Q1 of the year. The impressive increase shows that venture capital firms and entities are regaining interest in crypto, blockchain, and Web3 in general.
According to the OnChain Report published by blockchain infrastructure firm QuickNode and crypto data service Artemis, Web3 investments rose 55% over figures reported in the fourth quarter of 2023. The report also noted a quarter-on-quarter (QoQ) 36% rise in the number of Web3 investment deals. The two metrics indicate a “strong rebound in VC confidence and investment activity”.
AI Saw More Web3 Investments than Others in Q1
Of all investments, seed round transactions had the highest increases, rising 53% QoQ and indicating investor interest in early-stage firms. The report also noted that Seed and Series A funding rounds nearly doubled the amounts raised between Q4 2023 and Q1 2024.
The OnChain Report highlighted artificial intelligence (AI) as the “clear favorite”. In Q1, the category attracted heavy interest and investment as companies began to explore AI use and its application as a Web3 forerunner. On the other hand, other categories like trading and developer tools only recorded slightly higher investment. This is likely due to reduced investor interest or general disinterest because of uncertainties or the reduced likelihood of quick returns.
“Overall, the first quarter of 2024 not only restored growth trajectories in venture capital funding for Web3 but also highlighted strategic shifts toward sectors that VCs believe will deliver substantial impact and drive the evolution of the blockchain landscape. This period has set a precedent for energetic and strategic engagements in Web3, reinforcing the belief in its significant role in the broader technological ecosystem.”
The QuickNode and Artemis report also contained insights into noteworthy Web3 narratives, as seen in Q1. For instance, the report highlights a stablecoin surge, noting a QoQ increase of 42% in stablecoin user activity. The specified reasons include the upcoming spot Bitcoin ETF, a resurgence in decentralized finance (DeFi), and the introduction of spot Bitcoin exchange-traded funds (ETFs). In general, stablecoins have had the most active addresses for five consecutive quarters. In Q1, stablecoins accounted for more than 41% of all daily active addresses (DAA). This shows that stablecoins are essentially “the backbone of value transfer on the blockchain.”
More on DeFi and Gaming
On DeFi, the report specifies an impressive 291% QoQ increase in user activity despite the continuous SEC crackdown. The quarter ended with DeFi transaction volume surging past record stablecoin transactions, hitting 7 million daily. In addition, all major DeFi platforms, including derivatives, bridges, yield, lending, and liquid staking, doubled or tripled their total value locked (TVL) in the quarter.
Furthermore, the number of active Web3 gaming addresses rose by 155% QoQ, indicating the sector’s ability to attract and maintain its user base. There are also several decentralized social platforms recording increased adoption rates by offering users more data control and a potential share in the platform’s success than is available with traditional alternatives. The OnChain report revealed a 425% QoQ growth in these platforms’ DAA.
next
Web3 Investment Jump 55% in Q1 as VC Confidence Returns to Sector
The total amount spent on Web3 investments went up by 55% in Q1 of the year. The impressive increase shows that venture capital firms and entities are regaining interest in crypto, blockchain, and Web3 in general.
According to the OnChain Report published by blockchain infrastructure firm QuickNode and crypto data service Artemis, Web3 investments rose 55% over figures reported in the fourth quarter of 2023. The report also noted a quarter-on-quarter (QoQ) 36% rise in the number of Web3 investment deals. The two metrics indicate a “strong rebound in VC confidence and investment activity”.
AI Saw More Web3 Investments than Others in Q1
Of all investments, seed round transactions had the highest increases, rising 53% QoQ and indicating investor interest in early-stage firms. The report also noted that Seed and Series A funding rounds nearly doubled the amounts raised between Q4 2023 and Q1 2024.
The OnChain Report highlighted artificial intelligence (AI) as the “clear favorite”. In Q1, the category attracted heavy interest and investment as companies began to explore AI use and its application as a Web3 forerunner. On the other hand, other categories like trading and developer tools only recorded slightly higher investment. This is likely due to reduced investor interest or general disinterest because of uncertainties or the reduced likelihood of quick returns.
“Overall, the first quarter of 2024 not only restored growth trajectories in venture capital funding for Web3 but also highlighted strategic shifts toward sectors that VCs believe will deliver substantial impact and drive the evolution of the blockchain landscape. This period has set a precedent for energetic and strategic engagements in Web3, reinforcing the belief in its significant role in the broader technological ecosystem.”
The QuickNode and Artemis report also contained insights into noteworthy Web3 narratives, as seen in Q1. For instance, the report highlights a stablecoin surge, noting a QoQ increase of 42% in stablecoin user activity. The specified reasons include the upcoming spot Bitcoin ETF, a resurgence in decentralized finance (DeFi), and the introduction of spot Bitcoin exchange-traded funds (ETFs). In general, stablecoins have had the most active addresses for five consecutive quarters. In Q1, stablecoins accounted for more than 41% of all daily active addresses (DAA). This shows that stablecoins are essentially “the backbone of value transfer on the blockchain.”
More on DeFi and Gaming
On DeFi, the report specifies an impressive 291% QoQ increase in user activity despite the continuous SEC crackdown. The quarter ended with DeFi transaction volume surging past record stablecoin transactions, hitting 7 million daily. In addition, all major DeFi platforms, including derivatives, bridges, yield, lending, and liquid staking, doubled or tripled their total value locked (TVL) in the quarter.
Furthermore, the number of active Web3 gaming addresses rose by 155% QoQ, indicating the sector’s ability to attract and maintain its user base. There are also several decentralized social platforms recording increased adoption rates by offering users more data control and a potential share in the platform’s success than is available with traditional alternatives. The OnChain report revealed a 425% QoQ growth in these platforms’ DAA.
next
Web3 Investment Jump 55% in Q1 as VC Confidence Returns to Sector
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Bernstein Sets $150,000 Post-Halving Bitcoin Price Target
Coinspeaker Bernstein Sets $150,000 Post-Halving Bitcoin Price Target
Analysts from Bernstein, a top research and brokerage firm, strongly believe that the price of Bitcoin (BTC) will hit $150,000 after the upcoming halving event. The analysts are optimistic that the top cryptocurrency by market capitalization will resume its bullish trajectory once the halving event is out of the way and the mining hash rate has settled.
The projected Bitcoin price target is expected to be achievable before the end of 2025. It is worth noting that Bitcoin halving usually comes with some price fluctuations. Often, it precedes a significant bull run for Bitcoin as it alters the market dynamics. The new demand from miners’ potential sell pressure becomes the catalysts that lead to Bitcoin price appreciation in every cycle.
“Historically, a bitcoin price breakout has always followed the halving event and sometimes a few months after halving,” Gautam Chhugani and Mahika Sapra, two senior Bernstein analysts said.
Spot Bitcoin ETF Inflows Drop
Chhugani and Sapra also acknowledged that massive spot Bitcoin ETF inflows must have resumed by the time the halving is over. This statement comes as the Bitcoin ETF market has hit a rocky path these last few days.
Fidelity Investment’s FBTC, which has been one of the top-performing spot Bitcoin ETFs since the launch, registered $0 inflows a few days ago. This broke the 63-day inflow streak that the ETF has maintained for more than two months.
About a week ago, the crypto inflows slipped to $646 million fueled by a drop in institutional investors’ interest in Bitcoin ETFs. The dwindling interest in spot Bitcoin ETFs was believed to have been triggered by a significant drop in the price of the underlying cryptocurrency.
Notably, BTC price dropped to around $67,000 during this time after reaching an All-Time High (ATH) of $73,750.
“Further, integration of spot bitcoin ETFs with wirehouses, RIAs will continue to provide structural demand for bitcoin, in our view. We continue to expect bitcoin to touch a cycle high of $150,000 by 2025,” as seen in a note written by Chhugani and Sapra to clients.
Bitcoin Price Catalysts Outlined
The speculations of these analysts underscore the previous opinion shared by Bloomberg Senior ETF Analyst Eric Balchunas. In an interview, Balchunas stated that the accessibility of spot Bitcoin ETFs on significant wirehouse platforms was “like putting a product on the shelf of Whole Foods or a big food store. Just that kind of exposure and availability is only going to help.”
The Bloomberg analyst expects that spot Bitcoin ETFs will find their way to these wirehouse platforms, which he says could have as much as $7 trillion and $10 trillion in assets, in the coming months.
Another catalyst believed to possess the capacity to push spot Bitcoin ETF performance is Options trading associated with the new asset class. Despite the expectation of approval, the SEC is still weighing in on the matter.
next
Bernstein Sets $150,000 Post-Halving Bitcoin Price Target
Analysts from Bernstein, a top research and brokerage firm, strongly believe that the price of Bitcoin (BTC) will hit $150,000 after the upcoming halving event. The analysts are optimistic that the top cryptocurrency by market capitalization will resume its bullish trajectory once the halving event is out of the way and the mining hash rate has settled.
The projected Bitcoin price target is expected to be achievable before the end of 2025. It is worth noting that Bitcoin halving usually comes with some price fluctuations. Often, it precedes a significant bull run for Bitcoin as it alters the market dynamics. The new demand from miners’ potential sell pressure becomes the catalysts that lead to Bitcoin price appreciation in every cycle.
“Historically, a bitcoin price breakout has always followed the halving event and sometimes a few months after halving,” Gautam Chhugani and Mahika Sapra, two senior Bernstein analysts said.
Spot Bitcoin ETF Inflows Drop
Chhugani and Sapra also acknowledged that massive spot Bitcoin ETF inflows must have resumed by the time the halving is over. This statement comes as the Bitcoin ETF market has hit a rocky path these last few days.
Fidelity Investment’s FBTC, which has been one of the top-performing spot Bitcoin ETFs since the launch, registered $0 inflows a few days ago. This broke the 63-day inflow streak that the ETF has maintained for more than two months.
About a week ago, the crypto inflows slipped to $646 million fueled by a drop in institutional investors’ interest in Bitcoin ETFs. The dwindling interest in spot Bitcoin ETFs was believed to have been triggered by a significant drop in the price of the underlying cryptocurrency.
Notably, BTC price dropped to around $67,000 during this time after reaching an All-Time High (ATH) of $73,750.
“Further, integration of spot bitcoin ETFs with wirehouses, RIAs will continue to provide structural demand for bitcoin, in our view. We continue to expect bitcoin to touch a cycle high of $150,000 by 2025,” as seen in a note written by Chhugani and Sapra to clients.
Bitcoin Price Catalysts Outlined
The speculations of these analysts underscore the previous opinion shared by Bloomberg Senior ETF Analyst Eric Balchunas. In an interview, Balchunas stated that the accessibility of spot Bitcoin ETFs on significant wirehouse platforms was “like putting a product on the shelf of Whole Foods or a big food store. Just that kind of exposure and availability is only going to help.”
The Bloomberg analyst expects that spot Bitcoin ETFs will find their way to these wirehouse platforms, which he says could have as much as $7 trillion and $10 trillion in assets, in the coming months.
Another catalyst believed to possess the capacity to push spot Bitcoin ETF performance is Options trading associated with the new asset class. Despite the expectation of approval, the SEC is still weighing in on the matter.
next
Bernstein Sets $150,000 Post-Halving Bitcoin Price Target
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P2 Ventures Launches $50M Investment Fund to Support Startups on Polygon
Coinspeaker P2 Ventures Launches $50M Investment Fund to Support Startups on Polygon
P2 Ventures, a crypto-focused financial investment firm, has launched a $50 million investment fund to support the growth of the Polygon ecosystem, citing a press release. According to the report, the funds will be dedicated to supporting startups building innovative applications on the Polygon chain through a founder’s program known as Hadron Founders Club (Hadron FC). The club, which currently has campuses in both Dubai and New York, was established in March 2024 to help early-stage crypto companies within the Ethereum ecosystem.
36 Crypto Projects Selected to Participate in Hadron FC
Startup companies based on the Polygon ecosystem will have to go through Hadron FC to be considered for the $50 million investment funds. The program is designed to provide the projects with mentorship, legal and regulatory assistance, networking opportunities, and comprehensive support to navigate the complexities of startup development and help them raise capital.
So far, P2 Ventures has selected 36 projects to participate in the Hadron FC program’s initial stage. Some of the chosen project founders will “engage in a week of in-person co-building at the facility in Dubai”.
Shreyansh Singh, head of investments at P2 Ventures, said the investment fund shows the company is confident “in Hadron Club’s unmatched ability to fuel the ambitions of visionary founders within the Polygon ecosystem”.
Polygon Adoption Fund
Meanwhile, the launch of P2 Ventures’ investment funds came when interest in Polygon increased following the market resurgence after two years of massive downturn. The layer-2 scaling solution, designed to improve the scalability challenges of the Ethereum blockchain, has been receiving significant attention from both venture capital firms and asset managers.
In March, a subsidiary of the Japanese banking giant Nomura launched an institutional fund dubbed the Laser Digital Polygon Adoption Fund to offer investors exposure to the Polygon chain.
“We are making Polygon-Matic digital asset investment accessible in the most secure and efficient way for institutional investors,” the company said.
Earlier this month, Polygon caught the interest of asset management company Franklin Templeton. The firm plans to expand its on-chain US government money fund to the network.
Polygon Labs also joined the trend with a $100 million planned fundraising in partnership with Immutable, a blockchain development company.
The fund, which is still in its early stages, is called the Inevitable Games Fund (IGF). So far, the companies have raised $30 million from institutional investors, which, once completed, will be used to support Web3 gaming companies and enhance the ecosystem’s growth.
next
P2 Ventures Launches $50M Investment Fund to Support Startups on Polygon
P2 Ventures, a crypto-focused financial investment firm, has launched a $50 million investment fund to support the growth of the Polygon ecosystem, citing a press release. According to the report, the funds will be dedicated to supporting startups building innovative applications on the Polygon chain through a founder’s program known as Hadron Founders Club (Hadron FC). The club, which currently has campuses in both Dubai and New York, was established in March 2024 to help early-stage crypto companies within the Ethereum ecosystem.
36 Crypto Projects Selected to Participate in Hadron FC
Startup companies based on the Polygon ecosystem will have to go through Hadron FC to be considered for the $50 million investment funds. The program is designed to provide the projects with mentorship, legal and regulatory assistance, networking opportunities, and comprehensive support to navigate the complexities of startup development and help them raise capital.
So far, P2 Ventures has selected 36 projects to participate in the Hadron FC program’s initial stage. Some of the chosen project founders will “engage in a week of in-person co-building at the facility in Dubai”.
Shreyansh Singh, head of investments at P2 Ventures, said the investment fund shows the company is confident “in Hadron Club’s unmatched ability to fuel the ambitions of visionary founders within the Polygon ecosystem”.
Polygon Adoption Fund
Meanwhile, the launch of P2 Ventures’ investment funds came when interest in Polygon increased following the market resurgence after two years of massive downturn. The layer-2 scaling solution, designed to improve the scalability challenges of the Ethereum blockchain, has been receiving significant attention from both venture capital firms and asset managers.
In March, a subsidiary of the Japanese banking giant Nomura launched an institutional fund dubbed the Laser Digital Polygon Adoption Fund to offer investors exposure to the Polygon chain.
“We are making Polygon-Matic digital asset investment accessible in the most secure and efficient way for institutional investors,” the company said.
Earlier this month, Polygon caught the interest of asset management company Franklin Templeton. The firm plans to expand its on-chain US government money fund to the network.
Polygon Labs also joined the trend with a $100 million planned fundraising in partnership with Immutable, a blockchain development company.
The fund, which is still in its early stages, is called the Inevitable Games Fund (IGF). So far, the companies have raised $30 million from institutional investors, which, once completed, will be used to support Web3 gaming companies and enhance the ecosystem’s growth.
next
P2 Ventures Launches $50M Investment Fund to Support Startups on Polygon
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Bitcoin Exchange Withdrawals Hit One-Year High, BTC Price Surge Ahead?
Coinspeaker Bitcoin Exchange Withdrawals Hit One-Year High, BTC Price Surge Ahead?
The world’s largest cryptocurrency Bitcoin (BTC) has continued to face selling pressure off-lately as we approach the fourth Bitcoin halving ahead this week on April 20. However, on-chain activity shows some bullish developments ahead of BTC halving 2024.
As per on-chain data provider CryptoQuant, the Bitcoin withdrawals from the exchanges have reached their highest levels since January 2023. This clearly hints at strong ongoing accumulation before the supply shock kicks in post the halving event. Furthermore, the expectation that the Bitcoin supply shock will lead to a price surge, could be another reason behind the exchange withdrawals.
Photo: CryptoQuant
Also, the developments taking place in the Bitcoin derivatives market are on a positive note. CryptoQuant analyst Burak pointed out that the open interest in derivatives exchanges has dropped from $18 billion to $14.2 billion. As a result, there’s a drop in the excess leverage trading happening in the market. This comes after a period of high trading activity and could imply a temporary market stabilization.
Photo: CryptoQuant
CryptoQuant analyst CoinLupin observes that Bitcoin has reached the support zone in the Short-Term Holder Spent Output Profit Ratio (STH SOPR), indicating a potential buying opportunity as short-term holders start to sell off. This phase has historically preceded price increases.
Bitcoin to Become 2X Scarce than Gold After Halving
As we know each halving event leads to a supply shock for Bitcoin cutting the supply by half. However, the upcoming halving event this week holds greater significance since Bitcoin is likely to become twice as rare as gold, said analysts from crypto exchange Bybit.
The Bybit report which talks about what to expect after the halving event reveals that the BTC supply on all centralized exchanges will be consumed in just nine months.
According to Bybit, the Bitcoin stock-to-flow (S2F) model supports its assertions, as the metric indicates that BTC becomes rarer than gold following each halving event. The S2F ratio measures scarcity by dividing a commodity’s circulating supply by its annual production.
As of the latest data, Bitcoin’s S2F ratio stands at approximately 56, slightly lower than gold’s ratio of 60. However, post-halving, Bitcoin’s ratio is projected to double to 112, further emphasizing its increasing scarcity compared to gold.
While the Bitcoin halving will reduce supply at one end, the demand from Bitcoin ETFs will also aid in reducing the available supply. As of now, there are nearly two million Bitcoins on the centralized exchange reserves. Considering $500 million daily inflows into spot Bitcoin ETFs, Bybit reports that around 7,142 BTC will leave the exchange reserves on a daily basis. this suggests that the reserves will last only nine months post-halving.
“With this in mind, it’s unsurprising that Bitcoin’s price may continue to climb before the halving, or even afterward, as the supply squeeze propels the price to another new record,” Bybit report reads.
next
Bitcoin Exchange Withdrawals Hit One-Year High, BTC Price Surge Ahead?
The world’s largest cryptocurrency Bitcoin (BTC) has continued to face selling pressure off-lately as we approach the fourth Bitcoin halving ahead this week on April 20. However, on-chain activity shows some bullish developments ahead of BTC halving 2024.
As per on-chain data provider CryptoQuant, the Bitcoin withdrawals from the exchanges have reached their highest levels since January 2023. This clearly hints at strong ongoing accumulation before the supply shock kicks in post the halving event. Furthermore, the expectation that the Bitcoin supply shock will lead to a price surge, could be another reason behind the exchange withdrawals.
Photo: CryptoQuant
Also, the developments taking place in the Bitcoin derivatives market are on a positive note. CryptoQuant analyst Burak pointed out that the open interest in derivatives exchanges has dropped from $18 billion to $14.2 billion. As a result, there’s a drop in the excess leverage trading happening in the market. This comes after a period of high trading activity and could imply a temporary market stabilization.
Photo: CryptoQuant
CryptoQuant analyst CoinLupin observes that Bitcoin has reached the support zone in the Short-Term Holder Spent Output Profit Ratio (STH SOPR), indicating a potential buying opportunity as short-term holders start to sell off. This phase has historically preceded price increases.
Bitcoin to Become 2X Scarce than Gold After Halving
As we know each halving event leads to a supply shock for Bitcoin cutting the supply by half. However, the upcoming halving event this week holds greater significance since Bitcoin is likely to become twice as rare as gold, said analysts from crypto exchange Bybit.
The Bybit report which talks about what to expect after the halving event reveals that the BTC supply on all centralized exchanges will be consumed in just nine months.
According to Bybit, the Bitcoin stock-to-flow (S2F) model supports its assertions, as the metric indicates that BTC becomes rarer than gold following each halving event. The S2F ratio measures scarcity by dividing a commodity’s circulating supply by its annual production.
As of the latest data, Bitcoin’s S2F ratio stands at approximately 56, slightly lower than gold’s ratio of 60. However, post-halving, Bitcoin’s ratio is projected to double to 112, further emphasizing its increasing scarcity compared to gold.
While the Bitcoin halving will reduce supply at one end, the demand from Bitcoin ETFs will also aid in reducing the available supply. As of now, there are nearly two million Bitcoins on the centralized exchange reserves. Considering $500 million daily inflows into spot Bitcoin ETFs, Bybit reports that around 7,142 BTC will leave the exchange reserves on a daily basis. this suggests that the reserves will last only nine months post-halving.
“With this in mind, it’s unsurprising that Bitcoin’s price may continue to climb before the halving, or even afterward, as the supply squeeze propels the price to another new record,” Bybit report reads.
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Bitcoin Exchange Withdrawals Hit One-Year High, BTC Price Surge Ahead?
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Upbit Halts Deposits and Withdrawals Over 1 Million Korean Won
Coinspeaker Upbit Halts Deposits and Withdrawals Over 1 Million Korean Won
South Korea’s leading crypto exchange Upbit temporarily suspended deposits and withdrawals of over 1 million Korean won ((KRW). The move followed Upbit’s partnership shift with Ten&Ten, a virtual asset service provider (VASP) that previously handled large transactions. The change limits high-value crypto transfers on Upbit for now.
The suspension was declared by Upbit on April 17, 2024, due to the discontinuation of Ten&Ten’s Travel Rule Solution service. Ten&Ten ceased facilitating transactions on April 15, with a final deadline for withdrawals set for April 22nd at 10:00 Korean Standard Time.
Although Upbit strives to find substitute virtual asset service providers, other South Korean exchanges like Bithumb, Coinone, Bblock, Qbit, Asset Trust (KDAC), and Korbit continue operations for substantial transactions. This transitory challenge does not undermine Upbit’s prominence in the Korean market.
Upbit’s Resilience amid Regulatory Challenges
South Korea plans to tighten rules for crypto exchanges with new guidelines aimed to improve transparency and reduce risks when listing digital assets. Upbit’s suspension shows how crypto regulations are changing in South Korea. The country’s financial regulators will enforce stricter token listing rules on centralized exchanges by the end of April or early May.
Despite the regulatory changes, South Korea’s digital asset sector remains robust. In early 2024, the Korean won overtook the US dollar for trading volume on centralized crypto exchanges. Kaiko data shows KRW transactions exceeded $456 billion, surpassing the US dollar’s around $455 billion volume during the first quarter.
This rise of the Korean won’s usage in crypto trades showcases the region’s increasing impact on the cryptocurrency market. An EU report recently placed Upbit second globally in market share, trailing only behind Binance, with an estimated share of approximately 528.57 billion, showing the won’s prominence and the growing regional crypto trading influence.
Upbit’s Trading Volume Swings amidst Partnership Changes
Upbit experienced interesting trading trends recently. Its daily volume dropped to $3.8 billion in early April, a notable decline from its March peak. On March 5, Upbit saw a remarkable $15 billion in daily trades. This spike likely aligned with Bitcoin‘s record high of $68,300 that day. The exchange’s unsteady volumes reveal the crypto market’s volatility, showing traders’ sentiments to price movements.
While Upbit handles partnership adjustments, South Korea’s crypto sector continues to evolve. Given the upcoming stricter regulations and the Korean won’s regional trading dominance, it will be interesting to see how Upbit and other exchanges face the regulatory shifts.
next
Upbit Halts Deposits and Withdrawals Over 1 Million Korean Won
South Korea’s leading crypto exchange Upbit temporarily suspended deposits and withdrawals of over 1 million Korean won ((KRW). The move followed Upbit’s partnership shift with Ten&Ten, a virtual asset service provider (VASP) that previously handled large transactions. The change limits high-value crypto transfers on Upbit for now.
The suspension was declared by Upbit on April 17, 2024, due to the discontinuation of Ten&Ten’s Travel Rule Solution service. Ten&Ten ceased facilitating transactions on April 15, with a final deadline for withdrawals set for April 22nd at 10:00 Korean Standard Time.
Although Upbit strives to find substitute virtual asset service providers, other South Korean exchanges like Bithumb, Coinone, Bblock, Qbit, Asset Trust (KDAC), and Korbit continue operations for substantial transactions. This transitory challenge does not undermine Upbit’s prominence in the Korean market.
Upbit’s Resilience amid Regulatory Challenges
South Korea plans to tighten rules for crypto exchanges with new guidelines aimed to improve transparency and reduce risks when listing digital assets. Upbit’s suspension shows how crypto regulations are changing in South Korea. The country’s financial regulators will enforce stricter token listing rules on centralized exchanges by the end of April or early May.
Despite the regulatory changes, South Korea’s digital asset sector remains robust. In early 2024, the Korean won overtook the US dollar for trading volume on centralized crypto exchanges. Kaiko data shows KRW transactions exceeded $456 billion, surpassing the US dollar’s around $455 billion volume during the first quarter.
This rise of the Korean won’s usage in crypto trades showcases the region’s increasing impact on the cryptocurrency market. An EU report recently placed Upbit second globally in market share, trailing only behind Binance, with an estimated share of approximately 528.57 billion, showing the won’s prominence and the growing regional crypto trading influence.
Upbit’s Trading Volume Swings amidst Partnership Changes
Upbit experienced interesting trading trends recently. Its daily volume dropped to $3.8 billion in early April, a notable decline from its March peak. On March 5, Upbit saw a remarkable $15 billion in daily trades. This spike likely aligned with Bitcoin‘s record high of $68,300 that day. The exchange’s unsteady volumes reveal the crypto market’s volatility, showing traders’ sentiments to price movements.
While Upbit handles partnership adjustments, South Korea’s crypto sector continues to evolve. Given the upcoming stricter regulations and the Korean won’s regional trading dominance, it will be interesting to see how Upbit and other exchanges face the regulatory shifts.
next
Upbit Halts Deposits and Withdrawals Over 1 Million Korean Won
Oversæt
CoinList Unveils Upgrades: Revamped Karma System, Token Launch Auctions, Perpetual Futures Beta
Coinspeaker CoinList Unveils Upgrades: Revamped Karma System, Token Launch Auctions, Perpetual Futures Beta
CoinList, a cryptocurrency exchange platform, has announced a series of upgrades to its offerings. After addressing technical glitches and bugs, the platform has released a comprehensive update that promises to improve the way users engage with and invest in digital assets.
Reimagined Karma System: Rewarding Community Engagement
One of these notable upgrades is a reimagined Karma system, which acts as the basis for a reputation-based points setup. This system rewards users for their active participation and contributions to the growth and advancement of crypto projects listed on the platform. The more users stake, trade, mint, participate in token sales, lend, and contribute to CoinList hackathons, the higher their karma accumulates.
The platform enhanced its system by introducing Karma Tiers. This new upgrade categorizes users’ Karma scores into one of these five tiers: Rust, Bronze, Silver, Gold, and Platinum. The higher the tier, the greater the chances of accessing exclusive token launches and offerings. This tiered system incentivizes active engagement and fosters a sense of community within the platform’s ecosystem.
Recognizing the importance of transparency and accountability, the exchange has implemented a clear history feature that allows users to track their accumulated karma over time. This includes any Legacy Karma claimed from previous iterations of the system, ensuring a seamless transition for long-standing users.
In addition to the revamped Karma system, the exchange has unveiled a new mechanism for token launches. Gone are the days of registering and waiting in queues to purchase tokens, users can lock up the desired amount for purchase at any time and receive notifications when the results are in.
Moreover, the platform has also empowered builders by granting them unprecedented control over their token launches. Developers can now collect wallet information, connect with their user base, and curate purchase tiers and allocations, ensuring a tailored and personalized experience for their communities.
Streamlining Token Auctions and Perpetual Trading Features
Taking innovation a step further, CoinList also introduced token launch auctions, a concept that allows the community to determine the value of a token in real-time through a dynamic auction process. This feature eliminates the need for fixed pricing, fostering a more organic and market-driven approach to token valuations.
Catering to the needs of traders, CoinList also unveiled its new Pro Trading and Perpetual futures Beta offerings. Soon, users will be able to access the pro version directly through the ‘Pro Trading’ tab on the main platform, eliminating the need for asset transfers between separate platforms.
The eagerly anticipated new addition among its users introduces a new way to trade early assets. This feature allows traders to leverage their capital more effectively, enabling them to take positions with less upfront capital. The new additions are poised to attract a wider range of traders and investors seeking advanced trading strategies and increased capital efficiency.
next
CoinList Unveils Upgrades: Revamped Karma System, Token Launch Auctions, Perpetual Futures Beta
CoinList, a cryptocurrency exchange platform, has announced a series of upgrades to its offerings. After addressing technical glitches and bugs, the platform has released a comprehensive update that promises to improve the way users engage with and invest in digital assets.
Reimagined Karma System: Rewarding Community Engagement
One of these notable upgrades is a reimagined Karma system, which acts as the basis for a reputation-based points setup. This system rewards users for their active participation and contributions to the growth and advancement of crypto projects listed on the platform. The more users stake, trade, mint, participate in token sales, lend, and contribute to CoinList hackathons, the higher their karma accumulates.
The platform enhanced its system by introducing Karma Tiers. This new upgrade categorizes users’ Karma scores into one of these five tiers: Rust, Bronze, Silver, Gold, and Platinum. The higher the tier, the greater the chances of accessing exclusive token launches and offerings. This tiered system incentivizes active engagement and fosters a sense of community within the platform’s ecosystem.
Recognizing the importance of transparency and accountability, the exchange has implemented a clear history feature that allows users to track their accumulated karma over time. This includes any Legacy Karma claimed from previous iterations of the system, ensuring a seamless transition for long-standing users.
In addition to the revamped Karma system, the exchange has unveiled a new mechanism for token launches. Gone are the days of registering and waiting in queues to purchase tokens, users can lock up the desired amount for purchase at any time and receive notifications when the results are in.
Moreover, the platform has also empowered builders by granting them unprecedented control over their token launches. Developers can now collect wallet information, connect with their user base, and curate purchase tiers and allocations, ensuring a tailored and personalized experience for their communities.
Streamlining Token Auctions and Perpetual Trading Features
Taking innovation a step further, CoinList also introduced token launch auctions, a concept that allows the community to determine the value of a token in real-time through a dynamic auction process. This feature eliminates the need for fixed pricing, fostering a more organic and market-driven approach to token valuations.
Catering to the needs of traders, CoinList also unveiled its new Pro Trading and Perpetual futures Beta offerings. Soon, users will be able to access the pro version directly through the ‘Pro Trading’ tab on the main platform, eliminating the need for asset transfers between separate platforms.
The eagerly anticipated new addition among its users introduces a new way to trade early assets. This feature allows traders to leverage their capital more effectively, enabling them to take positions with less upfront capital. The new additions are poised to attract a wider range of traders and investors seeking advanced trading strategies and increased capital efficiency.
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CoinList Unveils Upgrades: Revamped Karma System, Token Launch Auctions, Perpetual Futures Beta
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Blockchain Meets Education: Metable Launches ‘Learn to Earn’ Metaverse
Coinspeaker Blockchain Meets Education: Metable Launches ‘Learn to Earn’ Metaverse
Metable has successfully launched the beta version of its education-focused metaverse platform built upon blockchain technology.
Metable has been developed on the Polygon (MATIC) blockchain and allows users to establish and manage virtual schools, and then earn through teaching on the platform.
The Beta Launch
Launching the Metable beta version, the platform has introduced several features to its Metaverse offering. This includes the ability to earn royalties through NFT online course resales.
During the open beta, Metable demonstrated its capacity to host over 50 users within a multiplayer setting without hitting any technical issues as participants interacted with the virtual 3D environment simultaneously.
Users could personalize their avatars, engage in treasure hunts involving virtual coin collection, and join quiz activities.
“The launch of the Metable Beta is a pivotal moment for the education sector and the Web3 space. We welcome educators to begin building using our virtual toolkit, and students to discover the benefits of a decentralized Learn-to-Earn economy,” said Metable Co-founder, Alessandro Moretti
Metable utilizes a decentralized ecosystem to facilitate a Web3 online educative model. This model allows the likes of professionals, content creators, and influencers access to new learning possibilities and the ability to establish new business models.
The End Goal
The team behind Metable describes the project’s vision as a want “to simplify the collaboration and experience related to education,” according to its whitepaper documentation.
“…we want to bring teaching into the future by making the adoption of the metaverse natural and simple for anyone,” Metable Whitepaper 3.0, pg. 6 reads.
Metable seeks to establish a “decentralized educational metaverse” that allows users to “teach, collaborate, socialize and have fun”, regardless of geographical location.
Polygon Implications
Built on the Polygon blockchain, there are several advantages and disadvantages posed concerning the project’s limitations and future potential.
Pros
Polygon offers a blockchain that has minimal transaction fees which could benefit Metable in terms of NFT trading and course enrollment processes.
Additionally, the speed of transactions and high scalability capacity of the Polygon blockchain offer Metable smooth real-time interactions – alongside the potential to grow a user base further without performance bottlenecks.
Cons
On the other hand, one main issue that can arise on the Polygon blockchain is the risk of centralization. As Metable is built to be a decentralized educative platform, building on Polygon features fewer validators. This can pose centralization risks.
Furthermore, as a layer-2 (L2) solution, Polygon is built on top of ETH. This increases the potential for exploits and vulnerabilities inherent to the additional layer’s complexities.
Educational Innovation
Despite the potential downsides and benefits of Polygon blockchain nativity, Metable highlights potential innovation in the education sector. Combining the ability to earn while learning within a virtual space globally could open the door to future educational innovation.
next
Blockchain Meets Education: Metable Launches ‘Learn to Earn’ Metaverse
Metable has successfully launched the beta version of its education-focused metaverse platform built upon blockchain technology.
Metable has been developed on the Polygon (MATIC) blockchain and allows users to establish and manage virtual schools, and then earn through teaching on the platform.
The Beta Launch
Launching the Metable beta version, the platform has introduced several features to its Metaverse offering. This includes the ability to earn royalties through NFT online course resales.
During the open beta, Metable demonstrated its capacity to host over 50 users within a multiplayer setting without hitting any technical issues as participants interacted with the virtual 3D environment simultaneously.
Users could personalize their avatars, engage in treasure hunts involving virtual coin collection, and join quiz activities.
“The launch of the Metable Beta is a pivotal moment for the education sector and the Web3 space. We welcome educators to begin building using our virtual toolkit, and students to discover the benefits of a decentralized Learn-to-Earn economy,” said Metable Co-founder, Alessandro Moretti
Metable utilizes a decentralized ecosystem to facilitate a Web3 online educative model. This model allows the likes of professionals, content creators, and influencers access to new learning possibilities and the ability to establish new business models.
The End Goal
The team behind Metable describes the project’s vision as a want “to simplify the collaboration and experience related to education,” according to its whitepaper documentation.
“…we want to bring teaching into the future by making the adoption of the metaverse natural and simple for anyone,” Metable Whitepaper 3.0, pg. 6 reads.
Metable seeks to establish a “decentralized educational metaverse” that allows users to “teach, collaborate, socialize and have fun”, regardless of geographical location.
Polygon Implications
Built on the Polygon blockchain, there are several advantages and disadvantages posed concerning the project’s limitations and future potential.
Pros
Polygon offers a blockchain that has minimal transaction fees which could benefit Metable in terms of NFT trading and course enrollment processes.
Additionally, the speed of transactions and high scalability capacity of the Polygon blockchain offer Metable smooth real-time interactions – alongside the potential to grow a user base further without performance bottlenecks.
Cons
On the other hand, one main issue that can arise on the Polygon blockchain is the risk of centralization. As Metable is built to be a decentralized educative platform, building on Polygon features fewer validators. This can pose centralization risks.
Furthermore, as a layer-2 (L2) solution, Polygon is built on top of ETH. This increases the potential for exploits and vulnerabilities inherent to the additional layer’s complexities.
Educational Innovation
Despite the potential downsides and benefits of Polygon blockchain nativity, Metable highlights potential innovation in the education sector. Combining the ability to earn while learning within a virtual space globally could open the door to future educational innovation.
next
Blockchain Meets Education: Metable Launches ‘Learn to Earn’ Metaverse
Oversæt
CoinGecko: 2024 Q1 Crypto Industry Report
Coinspeaker CoinGecko: 2024 Q1 Crypto Industry Report
The cryptocurrency market has consistently remained above $2 trillion in the recent past, led by Bitcoin (BTC) with a market dominance of about 55.65 percent. With less than three days to the fourth Bitcoin halving, overall crypto volatility is expected to remain relatively high. Furthermore, investors taking refuge in the stablecoins market will begin to gradually enter the crypto industry in the subsequent months.
Closer Look at CoinGecko’s Q1 Crypto Report
Most of the crypto assets led by Bitcoin and Ethereum confined a bullish breakout during the first quarter of 2024. According to the Q1 2024 crypto report by CoinGecko, a leading cryptocurrency data aggregator with over 13k different digital assets, the approval of spot Bitcoin ETFs in the United States was the main event in the industry.
Furthermore, it helped increase the overall valuation to as high as $2.9 trillion in March but has since stabilized around $2.4 trillion. The report noted the iShares Bitcoin Trust (Cboe BZX: IBIT) by BlackRock Inc (NYSE: BLK) and Fidelity Wise Origin Bitcoin Fund (Cboe BZX: FBTC) gathered over $55 billion during the first quarter.
By April 2, 2024, Grayscale Bitcoin Trust (BTC) (NYSE Arca: GBTC) had recorded a net outflow of about $6.9 billion thus holding around $21 billion in net assets under management. Remarkably. GBTC has remained the leader in US-based spot Bitcoin ETFs despite the high operating fees and departure of early investors.
As the focus shifted to Ethereum and its staking industry during the first quarter, the report noted that 2.28 million Ether, representing 52 percent of restated Ethers, were helped by Liquid Restaking Protocols (LRTs). Out of which, EtherFi protocol managed the lion’s share of LRTs, representing about 21 percent.
During the first quarter, the Solana (SOL) network recorded major growth fueled by its meme coin frenzy. By the end of the first quarter, the top ten Solana-based meme coins were valued at about $9.36 billion.
However, the Solana ecosystem has since struggled to maintain the meme coin dominance due to network congestion leading to unprocessed transactions. Nonetheless, as Coinspeaker reported, Solana developers are working on a solution to the network congestion.
Trading Volumes
As for the Non-Fungible Tokens (NFTs) trading volume, the report noted that the Magic Eden platform dominated the industry during the first quarter, with a 27 percent market share. Remarkably, the crypto spot trading volume on centralized exchanges reached $4.29 trillion, which is the highest since the fourth quarter of 2021.
Meanwhile, Ethereum’s trading volume in major decentralized exchanges dropped below 40 percent following heightened competition from other layer-one chains like Solana (SOL) and Toncoin (TON).
next
CoinGecko: 2024 Q1 Crypto Industry Report
The cryptocurrency market has consistently remained above $2 trillion in the recent past, led by Bitcoin (BTC) with a market dominance of about 55.65 percent. With less than three days to the fourth Bitcoin halving, overall crypto volatility is expected to remain relatively high. Furthermore, investors taking refuge in the stablecoins market will begin to gradually enter the crypto industry in the subsequent months.
Closer Look at CoinGecko’s Q1 Crypto Report
Most of the crypto assets led by Bitcoin and Ethereum confined a bullish breakout during the first quarter of 2024. According to the Q1 2024 crypto report by CoinGecko, a leading cryptocurrency data aggregator with over 13k different digital assets, the approval of spot Bitcoin ETFs in the United States was the main event in the industry.
Furthermore, it helped increase the overall valuation to as high as $2.9 trillion in March but has since stabilized around $2.4 trillion. The report noted the iShares Bitcoin Trust (Cboe BZX: IBIT) by BlackRock Inc (NYSE: BLK) and Fidelity Wise Origin Bitcoin Fund (Cboe BZX: FBTC) gathered over $55 billion during the first quarter.
By April 2, 2024, Grayscale Bitcoin Trust (BTC) (NYSE Arca: GBTC) had recorded a net outflow of about $6.9 billion thus holding around $21 billion in net assets under management. Remarkably. GBTC has remained the leader in US-based spot Bitcoin ETFs despite the high operating fees and departure of early investors.
As the focus shifted to Ethereum and its staking industry during the first quarter, the report noted that 2.28 million Ether, representing 52 percent of restated Ethers, were helped by Liquid Restaking Protocols (LRTs). Out of which, EtherFi protocol managed the lion’s share of LRTs, representing about 21 percent.
During the first quarter, the Solana (SOL) network recorded major growth fueled by its meme coin frenzy. By the end of the first quarter, the top ten Solana-based meme coins were valued at about $9.36 billion.
However, the Solana ecosystem has since struggled to maintain the meme coin dominance due to network congestion leading to unprocessed transactions. Nonetheless, as Coinspeaker reported, Solana developers are working on a solution to the network congestion.
Trading Volumes
As for the Non-Fungible Tokens (NFTs) trading volume, the report noted that the Magic Eden platform dominated the industry during the first quarter, with a 27 percent market share. Remarkably, the crypto spot trading volume on centralized exchanges reached $4.29 trillion, which is the highest since the fourth quarter of 2021.
Meanwhile, Ethereum’s trading volume in major decentralized exchanges dropped below 40 percent following heightened competition from other layer-one chains like Solana (SOL) and Toncoin (TON).
next
CoinGecko: 2024 Q1 Crypto Industry Report
Oversæt
US Senators Introduce Bill Prohibiting Unbacked Algorithmic Stablecoins
Coinspeaker US Senators Introduce Bill Prohibiting Unbacked Algorithmic Stablecoins
United States Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) may have just introduced a new stablecoin bill today. Tagged the Lummis-Gillibrand Payment Stablecoin Act, the bill seeks first to ensure that stablecoin issuers have their tokens fully backed. That is, their token reserves must either be one-to-one in cash or in cash-equivalent.
It also prohibits algorithmic stablecoins that do not have verifiable backing. Furthermore, the bill also disallows anyone, including issuers and users, from using stablecoins for illicit activities such as money laundering and other related acts.
Lummis-Gillibrand Payment Stablecoin Act to Help Dollar Dominance and Foster Innovation
Primarily, the Lummis-Gillibrand Payment Stablecoin Act establishes a framework that ensures that issuers back their tokens 1:1, prohibits unbacked algorithmic stablecoins, and exerts anti-money laundering rules.
However, there is more to the effect that it serves, according to Sen. Gillibrand. In a statement made available to The Block, she said:
“Passing a regulatory framework for stablecoins is absolutely critical to maintaining the US dollar’s dominance, promoting responsible innovation, protecting consumers, and cracking down on money laundering and illicit finance.”
For all intents and purposes, the bill seeks to support innovation. However, not all kinds of innovations can be supported. Therefore, the framework is particularly focused on “responsible” innovations that will fulfill all requirements and comply with its provisions.
According to an official release, the bill has some broader ambitions. It plans to create federal and state regulatory regimes for stablecoin issuers, just like the typical dual banking system.
A typical banking system is found in the United States, where national and state banks have different regulators. The Office of the Comptroller of the Currency, for instance, oversees the operations of national banks. State regulators, on the other hand, control the state banks.
Meanwhile, despite the arrangement, sometimes there are overlapping regulatory efforts. This means that a bank may be regulated at both the state and federal levels.
Similarly, the Lummis-Gillibrand Payment Stablecoin Act bill would give federal and state regulators authority over stablecoin chartering and enforcement. Interestingly, the robust new stablecoin act also made provisions to protect customers in the case of issuer insolvency.
Looking Ahead
The need for a robust regulatory framework for stablecoins can not be overemphasized. Their use cases for quick international transactions, relatively lower fees, and the appeal they now have among programs and apps have contributed to their fast popularity.
However, with the growing relevance, regulators must not lose sight of the fact that bad actors also exist and are also evolving. Therefore, there is a constant need to keep developing legislation to be able to fully tap the potential of stablecoins and digital assets in general.
next
US Senators Introduce Bill Prohibiting Unbacked Algorithmic Stablecoins
United States Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) may have just introduced a new stablecoin bill today. Tagged the Lummis-Gillibrand Payment Stablecoin Act, the bill seeks first to ensure that stablecoin issuers have their tokens fully backed. That is, their token reserves must either be one-to-one in cash or in cash-equivalent.
It also prohibits algorithmic stablecoins that do not have verifiable backing. Furthermore, the bill also disallows anyone, including issuers and users, from using stablecoins for illicit activities such as money laundering and other related acts.
Lummis-Gillibrand Payment Stablecoin Act to Help Dollar Dominance and Foster Innovation
Primarily, the Lummis-Gillibrand Payment Stablecoin Act establishes a framework that ensures that issuers back their tokens 1:1, prohibits unbacked algorithmic stablecoins, and exerts anti-money laundering rules.
However, there is more to the effect that it serves, according to Sen. Gillibrand. In a statement made available to The Block, she said:
“Passing a regulatory framework for stablecoins is absolutely critical to maintaining the US dollar’s dominance, promoting responsible innovation, protecting consumers, and cracking down on money laundering and illicit finance.”
For all intents and purposes, the bill seeks to support innovation. However, not all kinds of innovations can be supported. Therefore, the framework is particularly focused on “responsible” innovations that will fulfill all requirements and comply with its provisions.
According to an official release, the bill has some broader ambitions. It plans to create federal and state regulatory regimes for stablecoin issuers, just like the typical dual banking system.
A typical banking system is found in the United States, where national and state banks have different regulators. The Office of the Comptroller of the Currency, for instance, oversees the operations of national banks. State regulators, on the other hand, control the state banks.
Meanwhile, despite the arrangement, sometimes there are overlapping regulatory efforts. This means that a bank may be regulated at both the state and federal levels.
Similarly, the Lummis-Gillibrand Payment Stablecoin Act bill would give federal and state regulators authority over stablecoin chartering and enforcement. Interestingly, the robust new stablecoin act also made provisions to protect customers in the case of issuer insolvency.
Looking Ahead
The need for a robust regulatory framework for stablecoins can not be overemphasized. Their use cases for quick international transactions, relatively lower fees, and the appeal they now have among programs and apps have contributed to their fast popularity.
However, with the growing relevance, regulators must not lose sight of the fact that bad actors also exist and are also evolving. Therefore, there is a constant need to keep developing legislation to be able to fully tap the potential of stablecoins and digital assets in general.
next
US Senators Introduce Bill Prohibiting Unbacked Algorithmic Stablecoins
Oversæt
Flood Disrupts Dubai’s Blockchain Life 2024, Organizers Debunk Airdrop Rumor
Coinspeaker Flood Disrupts Dubai’s Blockchain Life 2024, Organizers Debunk Airdrop Rumor
The Blockchain Life 2024 conference, ongoing in Dubai, UAE, faced an unexpected challenge as widespread flooding swept across the country.
Blockchain Life 2024 is a gathering in the cryptocurrency and blockchain industry, attracting over 8,000 attendees from 120 countries. This event serves as a crucial meeting point for individuals interested in Web3, cryptocurrencies, and mining, bringing together industry players, government officials, heads of funds, investors, promising startups, and renowned crypto investors.
However, the severe flooding in the host city forced the organizers to put the program on hold, as all roads leading to the event were closed, and they were ill-equipped to handle such a situation.
Airdrop Compensation Rumors
To ease attendees’ disappointment and show appreciation for their understanding, the organizers released a statement indicating that they are working hard to ensure the event is comfortable for all participants.
However, they debunked rumors circulating about an airdrop giveaway for program attendees. In a tweet released on their Twitter page, they advised users to disregard such news. The tweet stressed that scammers are taking advantage of the situation to swindle people out of their funds, and they encouraged people to report fake accounts.
‼️‼️‼️ WE DON'T GIVE ANY AIRDROPS. Beware of fake news.
We try our best to make the postponement of the event as comfortable as possible for you and never share questionable links and never distribute airdrops!
FAKE ACCOUNT: @Blockchain_2024
Scammers are taking advantage of…
— Blockchain Life 2024 Forum (@BlLife_Forum) April 17, 2024
As the roads began to clear and the weather improved, the Blockchain Life team announced that the event was back on track for Wednesday, April 17, and attendees could start making their way to the location. The post reads:
“The roads are gradually being cleared, and we will keep you updated on the best route to choose. Please note that you will need an e-ticket from Platinumlist for entry VIP attendees, please do not remove your VIP wristbands, they will be needed for entry to the VIP Lounge. See you! ”
The cause of the flooding in Dubai has been revealed by weather experts to be a result of cloud seeding, a technique used to induce rainfall by dispersing substances into clouds.
TOKEN2049 Was Also Impacted by the Flooding Incidence
Another crypto event, TOKEN2049, which is scheduled to run until April 21 in Dubai, was also affected by the flooding. The event boasts speakers including prominent figures in the cryptocurrency space, such as Peter McCormack, Vitalik Buterin, and Dovey Wan. Although the event was initially put on hold because of the weather, the organizers have announced on their page that the event is back on, posting a snapshot of the weather forecast in Dubai for the next five days, which signals sunny days ahead.
Despite the deluge, the resilience exhibited by these event organizers in the crypto space will provide startups and emerging projects with an opportunity to showcase their ideas, products, and services to a highly targeted audience of potential investors, partners, and customers.
next
Flood Disrupts Dubai’s Blockchain Life 2024, Organizers Debunk Airdrop Rumor
The Blockchain Life 2024 conference, ongoing in Dubai, UAE, faced an unexpected challenge as widespread flooding swept across the country.
Blockchain Life 2024 is a gathering in the cryptocurrency and blockchain industry, attracting over 8,000 attendees from 120 countries. This event serves as a crucial meeting point for individuals interested in Web3, cryptocurrencies, and mining, bringing together industry players, government officials, heads of funds, investors, promising startups, and renowned crypto investors.
However, the severe flooding in the host city forced the organizers to put the program on hold, as all roads leading to the event were closed, and they were ill-equipped to handle such a situation.
Airdrop Compensation Rumors
To ease attendees’ disappointment and show appreciation for their understanding, the organizers released a statement indicating that they are working hard to ensure the event is comfortable for all participants.
However, they debunked rumors circulating about an airdrop giveaway for program attendees. In a tweet released on their Twitter page, they advised users to disregard such news. The tweet stressed that scammers are taking advantage of the situation to swindle people out of their funds, and they encouraged people to report fake accounts.
‼️‼️‼️ WE DON'T GIVE ANY AIRDROPS. Beware of fake news.
We try our best to make the postponement of the event as comfortable as possible for you and never share questionable links and never distribute airdrops!
FAKE ACCOUNT: @Blockchain_2024
Scammers are taking advantage of…
— Blockchain Life 2024 Forum (@BlLife_Forum) April 17, 2024
As the roads began to clear and the weather improved, the Blockchain Life team announced that the event was back on track for Wednesday, April 17, and attendees could start making their way to the location. The post reads:
“The roads are gradually being cleared, and we will keep you updated on the best route to choose. Please note that you will need an e-ticket from Platinumlist for entry VIP attendees, please do not remove your VIP wristbands, they will be needed for entry to the VIP Lounge. See you! ”
The cause of the flooding in Dubai has been revealed by weather experts to be a result of cloud seeding, a technique used to induce rainfall by dispersing substances into clouds.
TOKEN2049 Was Also Impacted by the Flooding Incidence
Another crypto event, TOKEN2049, which is scheduled to run until April 21 in Dubai, was also affected by the flooding. The event boasts speakers including prominent figures in the cryptocurrency space, such as Peter McCormack, Vitalik Buterin, and Dovey Wan. Although the event was initially put on hold because of the weather, the organizers have announced on their page that the event is back on, posting a snapshot of the weather forecast in Dubai for the next five days, which signals sunny days ahead.
Despite the deluge, the resilience exhibited by these event organizers in the crypto space will provide startups and emerging projects with an opportunity to showcase their ideas, products, and services to a highly targeted audience of potential investors, partners, and customers.
next
Flood Disrupts Dubai’s Blockchain Life 2024, Organizers Debunk Airdrop Rumor
Oversæt
Coinbase Increases Support for Solana With SPL Token Integration
Coinspeaker Coinbase Increases Support for Solana with SPL Token Integration
Popular cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) took to the X platform to announce the integration of Solana DEX on its platform, birthing the trade of Solana Program Library (SPL) tokens on Coinbase Wallet.
Beyond Coinbase, Solana SPL Tokens Receive Mass Support
While SOL is the native token of the Solana blockchain, SPL is the token standard designed for the ecosystem, similar to Ethereum’s ERC-20 token standard. These SPL tokens are crucial to facilitating seamless integration with various Solana-based applications and platforms. In the long run, they foster the growth and development of the ecosystem.
This integration makes it possible for Coinbase users to trade more than 50,000 tokens on Solana. At the same time, it marks the American digital asset service provider’s increased support for Solana and its ecosystem. In the past, Coinbase has supported other Solana products including its staking program.
Increasing support for Solana and SPL tokens by @Coinbase❤️🔥 https://t.co/xxDUEbWiss
— Solana (@solana) April 16, 2024
Beyond Coinbase, some other crypto projects have equally listed the SPL tokens in the last few months. Leading Web3.0 hardware wallet Trezor announced its support for SOL and tokens designed using the SPL standard on its platform in December. The growing adoption of the SPL token contributed to the decision of Solana to introduce SPL “token extensions”.
Ordinarily, token extensions offer a comprehensive suite of solutions that are specifically designed to meet the unique requirements of businesses entering the blockchain realm. This extension is expected to revolutionize how developers, enterprises, financial institutions, and Solana-native development teams approach the integration of advanced token functionality.
Meanwhile, the number of new SPL tokens on the Solana network surged a few weeks ago with over 7,800 tokens being added daily. Apart from demonstrating increased interest and activity within the Solana ecosystem, it also drives innovation and development in the network.
The move from different wallets to support SPL tokens suggests investors’ confidence and enthusiasm towards Solana products.
Solana Seeks Solution to Network Congestion
This Coinbase Solana integration comes amid growing congestion woes facing the protocol. The network has recently been plagued by congestion that has threatened its operations.
These congestion are believed to be driven by the recent memecoin frenzy that has led to increased activity in the Solana network. Austin Federa, Head of Communications for Solana Labs, believes that the primary cause of the problem is the use of software systems that aren’t robust enough to withstand the amount of traffic targeted at it.
According to data from crypto analytics platform Dune, about 75% of all non-vote transactions failed on the Solana blockchain on April 4.
A few potential solutions are being considered by the Solana team. Federa confirmed the contribution of multiple developers to solve the congestion menace plaguing the network. Consequently, Anza, the developer of one of Solana’s Agave validator clients, announced the release of a solution patch which is a new version v1.18.11 on devnet to alleviate the network’s congestion difficulties.
The Stake-Weighted Quality of Service (SWQOS) is another feature that Solana is prioritizing in a bid to solve is congestion issues. All these alternative solutions are hinged at supporting the major network upgrade it recently launched on the mainnet.
These upgrades are vital to support the massive traffic Coinbase is set to bring to the Solana ecosystem.
next
Coinbase Increases Support for Solana with SPL Token Integration
Popular cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) took to the X platform to announce the integration of Solana DEX on its platform, birthing the trade of Solana Program Library (SPL) tokens on Coinbase Wallet.
Beyond Coinbase, Solana SPL Tokens Receive Mass Support
While SOL is the native token of the Solana blockchain, SPL is the token standard designed for the ecosystem, similar to Ethereum’s ERC-20 token standard. These SPL tokens are crucial to facilitating seamless integration with various Solana-based applications and platforms. In the long run, they foster the growth and development of the ecosystem.
This integration makes it possible for Coinbase users to trade more than 50,000 tokens on Solana. At the same time, it marks the American digital asset service provider’s increased support for Solana and its ecosystem. In the past, Coinbase has supported other Solana products including its staking program.
Increasing support for Solana and SPL tokens by @Coinbase❤️🔥 https://t.co/xxDUEbWiss
— Solana (@solana) April 16, 2024
Beyond Coinbase, some other crypto projects have equally listed the SPL tokens in the last few months. Leading Web3.0 hardware wallet Trezor announced its support for SOL and tokens designed using the SPL standard on its platform in December. The growing adoption of the SPL token contributed to the decision of Solana to introduce SPL “token extensions”.
Ordinarily, token extensions offer a comprehensive suite of solutions that are specifically designed to meet the unique requirements of businesses entering the blockchain realm. This extension is expected to revolutionize how developers, enterprises, financial institutions, and Solana-native development teams approach the integration of advanced token functionality.
Meanwhile, the number of new SPL tokens on the Solana network surged a few weeks ago with over 7,800 tokens being added daily. Apart from demonstrating increased interest and activity within the Solana ecosystem, it also drives innovation and development in the network.
The move from different wallets to support SPL tokens suggests investors’ confidence and enthusiasm towards Solana products.
Solana Seeks Solution to Network Congestion
This Coinbase Solana integration comes amid growing congestion woes facing the protocol. The network has recently been plagued by congestion that has threatened its operations.
These congestion are believed to be driven by the recent memecoin frenzy that has led to increased activity in the Solana network. Austin Federa, Head of Communications for Solana Labs, believes that the primary cause of the problem is the use of software systems that aren’t robust enough to withstand the amount of traffic targeted at it.
According to data from crypto analytics platform Dune, about 75% of all non-vote transactions failed on the Solana blockchain on April 4.
A few potential solutions are being considered by the Solana team. Federa confirmed the contribution of multiple developers to solve the congestion menace plaguing the network. Consequently, Anza, the developer of one of Solana’s Agave validator clients, announced the release of a solution patch which is a new version v1.18.11 on devnet to alleviate the network’s congestion difficulties.
The Stake-Weighted Quality of Service (SWQOS) is another feature that Solana is prioritizing in a bid to solve is congestion issues. All these alternative solutions are hinged at supporting the major network upgrade it recently launched on the mainnet.
These upgrades are vital to support the massive traffic Coinbase is set to bring to the Solana ecosystem.
next
Coinbase Increases Support for Solana with SPL Token Integration
Oversæt
South Korea Central Bank to Accelerate Plans for CBDC Usability Testing
Coinspeaker South Korea Central Bank to Accelerate Plans for CBDC Usability Testing
The Central Bank of Korea has decided to speed up its Central Bank Digital Currency (CBDC) project and launch a pilot test of the digital KRW this year. According to reports, 100,000 citizens will participate in the pilot test. According to the South Korean Central Bank, the aim is to begin testing usability and deposits as it continues developing its CBDC.
South Korea to Test CBDC by Programming Deposit Tokens
A local report has stated increasing interest in the Korean CBDC, especially about how the digital KRW will affect financial firms operating in South Korea. Sometime in the fourth quarter of 2024, the Bank of Korea will begin distributing deposit and e-money tokens to up to 100,000 citizens who will participate in the pilot. The bank hopes to test the project’s functionality among ordinary citizens to properly determine utility. Part of the test is to program the digital KRW. The central bank intends to issue deposit tokens that can function as digital vouchers so holders can use them for specific purchases at predetermined locations.
The Bank of Korea’s plan for usability tests was disclosed in October last year. At the time, the apex bank revealed it would conduct the test with regulatory agencies, including the Financial Supervisory Service and the Financial Services Commission.
The Central Bank’s plan is to simplify the process of financial transactions as much as possible. While citizens can transfer funds and make payments via online banking channels or card transactions, the CBDC can streamline this process, supporting fund transfers without third parties or intermediaries. The simplification reduces the transaction costs and also improves efficiency. Nonetheless, the likelihood that the Bank of Korea will develop a CBDC that complements traditional financial institutions is high.
New CEX Rules
As South Korea continues its research and development efforts on the CBDC, the country is bearing down on cryptocurrency exchanges. New rules set for implementation in May provide a few restrictions for centralized crypto exchanges operating in the country. For instance, crypto exchanges will be barred from listing tokens involved in any exploits. The only exception is tokens that have undergone extensive investigations and have adequately resolved the problems. In addition, tokens listed by CEXs must publish whitepapers or technical manuals with extensive details. These documents must be specifically written for users in South Korea. While exchanges must not trade any tokens that do not meet these requirements, the laws may not apply to tokens that have traded on licensed CEXs for more than two years.
The new rules give authorities the power to order the delisting of cryptocurrencies that do not meet these criteria. Authorities will also hold the exchanges responsible for ensuring that the issuers adhere to the rules and provide adequate information on their tokens. Currently, South Korean agencies are getting feedback from local CEXs about the new regulations before implementation.
The Korean crypto market has recently seen a boom in won-denominated trading over the dollar. Recent research from blockchain firm Kaiko noted that the won was the most traded fiat against crypto in Q1, hitting $456 billion. This was higher than the $455 recorded for the dollar.
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South Korea Central Bank to Accelerate Plans for CBDC Usability Testing
The Central Bank of Korea has decided to speed up its Central Bank Digital Currency (CBDC) project and launch a pilot test of the digital KRW this year. According to reports, 100,000 citizens will participate in the pilot test. According to the South Korean Central Bank, the aim is to begin testing usability and deposits as it continues developing its CBDC.
South Korea to Test CBDC by Programming Deposit Tokens
A local report has stated increasing interest in the Korean CBDC, especially about how the digital KRW will affect financial firms operating in South Korea. Sometime in the fourth quarter of 2024, the Bank of Korea will begin distributing deposit and e-money tokens to up to 100,000 citizens who will participate in the pilot. The bank hopes to test the project’s functionality among ordinary citizens to properly determine utility. Part of the test is to program the digital KRW. The central bank intends to issue deposit tokens that can function as digital vouchers so holders can use them for specific purchases at predetermined locations.
The Bank of Korea’s plan for usability tests was disclosed in October last year. At the time, the apex bank revealed it would conduct the test with regulatory agencies, including the Financial Supervisory Service and the Financial Services Commission.
The Central Bank’s plan is to simplify the process of financial transactions as much as possible. While citizens can transfer funds and make payments via online banking channels or card transactions, the CBDC can streamline this process, supporting fund transfers without third parties or intermediaries. The simplification reduces the transaction costs and also improves efficiency. Nonetheless, the likelihood that the Bank of Korea will develop a CBDC that complements traditional financial institutions is high.
New CEX Rules
As South Korea continues its research and development efforts on the CBDC, the country is bearing down on cryptocurrency exchanges. New rules set for implementation in May provide a few restrictions for centralized crypto exchanges operating in the country. For instance, crypto exchanges will be barred from listing tokens involved in any exploits. The only exception is tokens that have undergone extensive investigations and have adequately resolved the problems. In addition, tokens listed by CEXs must publish whitepapers or technical manuals with extensive details. These documents must be specifically written for users in South Korea. While exchanges must not trade any tokens that do not meet these requirements, the laws may not apply to tokens that have traded on licensed CEXs for more than two years.
The new rules give authorities the power to order the delisting of cryptocurrencies that do not meet these criteria. Authorities will also hold the exchanges responsible for ensuring that the issuers adhere to the rules and provide adequate information on their tokens. Currently, South Korean agencies are getting feedback from local CEXs about the new regulations before implementation.
The Korean crypto market has recently seen a boom in won-denominated trading over the dollar. Recent research from blockchain firm Kaiko noted that the won was the most traded fiat against crypto in Q1, hitting $456 billion. This was higher than the $455 recorded for the dollar.
next
South Korea Central Bank to Accelerate Plans for CBDC Usability Testing
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Ethena Stablecoin USDe Challenges Giants Like USDT and USDC Amid Recent Surge
Coinspeaker Ethena Stablecoin USDe Challenges Giants Like USDT and USDC amid Recent Surge
The global stablecoin market is seeing some key developments with Ethena’s native cryptocurrency USDe gaining massive prominence in recent times. The solid growth trajectory adopted by USDCe has led to analysts seeing a major challenger to USDC and USDT emerging in the market.
As defined by Ethena Labs:
“Ethena is a synthetic dollar protocol on Ethereum which aims to provide the first censorship-resistant, scalable, on-chain form of money: USDe”.
Within a very short period of time, Ethena’s stablecoin USDe has attained a market cap of $2 billion. With the USDe stablecoin, Ethena undertakes a unique approach to its stability, backed by cryptocurrencies like BTC and ETF, instead of the US Dollar.
However, this strategy adopted by Ethena has raised questions about its potential impact on the stablecoin ecosystem. According to insights from the founder of Ethena Labs, USDe has emerged as the fastest-growing stablecoin since its introduction.
One of the primary factors contributing to USDe’s rapid rise is its unique feature of generating yield for holders, a characteristic lacking in prominent stablecoins such as USDT and USDC. USDe accomplishes this by funding payments through short positions on exchanges and Ethereum staking rewards. This is a major differentiating factor for the Ethena stablecoin.
USDe is the fastest growing USD denominated asset in the history of crypto pic.twitter.com/xgiRJjf96t
— G | Ethena (@leptokurtic_) April 8, 2024
How Can Ethena’s USDe Stablecoin Stay Stable?
CryptoQuant’s Head of Research Julio Moreno asked USDe investors to focus on two major factors i.e. the keep rate, which reinvests the generated yield and the reserve fund’s size relative to market cap.
Along with the surge in the USDe’s market cap, the funding payments from the short positions will rise too. Moreno advises maintaining the rate above 20% to ensure the stability of USDe and prevent it from encountering the same fate as other unstable stablecoins, such as Terra’s UST.
For example, with market caps of $5 billion, $7.5 billion, or $10 billion, the reserve fund should ideally amount to approximately $40 million, $60 million, and $80 million, respectively. Moreno has offered a detailed understanding of each of these factors in his post on the X platform.
https://t.co/64YRkjQehi
— Julio Moreno (@jjcmoreno) April 16, 2024
In order to secure its long-term stability, USDe has been quickly adjusting to the changes taking place in the market. Through vigilant monitoring of critical metrics and proactive risk management, USDe aims to establish itself as a reliable choice for investors, revolutionizing the landscape of stablecoins.
Tether CTO Paolo Ardoino has supported stablecoin competition stating that it’s crucial for strong regulatory development. “First of all, competition is great. I always believed that Tether cannot be alone. The stablecoin ecosystem is an industry because there are many players,” Ardoino said.
next
Ethena Stablecoin USDe Challenges Giants Like USDT and USDC amid Recent Surge
The global stablecoin market is seeing some key developments with Ethena’s native cryptocurrency USDe gaining massive prominence in recent times. The solid growth trajectory adopted by USDCe has led to analysts seeing a major challenger to USDC and USDT emerging in the market.
As defined by Ethena Labs:
“Ethena is a synthetic dollar protocol on Ethereum which aims to provide the first censorship-resistant, scalable, on-chain form of money: USDe”.
Within a very short period of time, Ethena’s stablecoin USDe has attained a market cap of $2 billion. With the USDe stablecoin, Ethena undertakes a unique approach to its stability, backed by cryptocurrencies like BTC and ETF, instead of the US Dollar.
However, this strategy adopted by Ethena has raised questions about its potential impact on the stablecoin ecosystem. According to insights from the founder of Ethena Labs, USDe has emerged as the fastest-growing stablecoin since its introduction.
One of the primary factors contributing to USDe’s rapid rise is its unique feature of generating yield for holders, a characteristic lacking in prominent stablecoins such as USDT and USDC. USDe accomplishes this by funding payments through short positions on exchanges and Ethereum staking rewards. This is a major differentiating factor for the Ethena stablecoin.
USDe is the fastest growing USD denominated asset in the history of crypto pic.twitter.com/xgiRJjf96t
— G | Ethena (@leptokurtic_) April 8, 2024
How Can Ethena’s USDe Stablecoin Stay Stable?
CryptoQuant’s Head of Research Julio Moreno asked USDe investors to focus on two major factors i.e. the keep rate, which reinvests the generated yield and the reserve fund’s size relative to market cap.
Along with the surge in the USDe’s market cap, the funding payments from the short positions will rise too. Moreno advises maintaining the rate above 20% to ensure the stability of USDe and prevent it from encountering the same fate as other unstable stablecoins, such as Terra’s UST.
For example, with market caps of $5 billion, $7.5 billion, or $10 billion, the reserve fund should ideally amount to approximately $40 million, $60 million, and $80 million, respectively. Moreno has offered a detailed understanding of each of these factors in his post on the X platform.
https://t.co/64YRkjQehi
— Julio Moreno (@jjcmoreno) April 16, 2024
In order to secure its long-term stability, USDe has been quickly adjusting to the changes taking place in the market. Through vigilant monitoring of critical metrics and proactive risk management, USDe aims to establish itself as a reliable choice for investors, revolutionizing the landscape of stablecoins.
Tether CTO Paolo Ardoino has supported stablecoin competition stating that it’s crucial for strong regulatory development. “First of all, competition is great. I always believed that Tether cannot be alone. The stablecoin ecosystem is an industry because there are many players,” Ardoino said.
next
Ethena Stablecoin USDe Challenges Giants Like USDT and USDC amid Recent Surge
Oversæt
Bitcoin Mining-Related Stocks Languish in Bear Zone Amid Fears of Post-halving Profitability
Coinspeaker Bitcoin Mining-Related Stocks Languish in Bear Zone amid Fears of Post-halving Profitability
The Bitcoin halving 2024 event is less than three days away, with only 2,375 BTC remaining to be mined until the next block half. Trading around $63,492 on Wednesday, Bitcoin price has been retesting the lower border of the horizontal consolidation range between $61,400 and $72,000.
The recent Bitcoin price drop has also impacted the crypto-related mining stocks, amid concerns of profitability post-halving.
Bitcoin Mining-Related Stocks Dips
Despite the impressive Bitcoin performance in the first quarter, Marathon Digital Holdings Inc (NASDAQ: MARA) stock has dropped more than 34 percent in the past four weeks to trade around $14.74 on Wednesday. Riot Platforms Inc (NASDAQ: RIOT) stock has fallen over 47 percent YTD to trade around $8.14 at the time of this report.
Similarly, CleanSpark Inc (NASDAQ: CLSK) shares dropped 28 percent in the past four weeks to trade at about $14.75. Bitdeer Technologies Group Technologies Group (NASDAQ: BTDR) stock dropped around 35 percent in the last month to trade at about $5.55 on Wednesday.
Australia-based Bitcoin mining firm Iris Energy Ltd (NASDAQ: IREN) stock has dropped over 39 percent YTD to trade around $4.44 at the time of this writing. Canadian-based Bitfarms Ltd (NASDAQ: BITF) stock has dropped more than 41 percent YTD to trade around $1.75 on Wednesday.
New York-based Cipher Mining Inc (NASDAQ: CIFR) stock declined around 26 percent in the last month to trade around $3.45 at the time of this report. Bit Digital Inc (NASDAQ: BTBT) shares have dropped over 56 percent YTD to trade around $1.87 on Wednesday.
Unsubstantiated Post-Halving Fears
According to Mitchell Askew, a top analyst at Blockware Solutions, the upcoming Bitcoin halving event will turn out to be a buy-the-news event. Notably, Askew was addressing the state of the market which seems to be preparing for a further dip amid the ongoing Middle East crisis and the conflict between Russia and Ukraine.
“The halving will be a ‘buy the news’ event for public Bitcoin miners and the private ASIC market,” Askew noted.
As a result, Askew expects a general rebound of crypto-mining stocks in tandem with Bitcoin prices in the coming weeks. Meanwhile, Jaran Mellerud, founder and chief mining strategist of Hashlabs Mining, indicated that some US-based Bitcoin miners could expand overseas in search of cheaper electricity costs after the halving event.
Halving Price Action
As Coinspeaker reported, Bitcoin and the entire crypto prices have been reacting to the macroeconomic outlook, especially on the United States inflation issue. According to a popular crypto analyst Michael van de Poppe, Bitcoin price has already established a local top and is likely to consolidate in the range before continuing with the prior bullish trend.
next
Bitcoin Mining-Related Stocks Languish in Bear Zone amid Fears of Post-halving Profitability
The Bitcoin halving 2024 event is less than three days away, with only 2,375 BTC remaining to be mined until the next block half. Trading around $63,492 on Wednesday, Bitcoin price has been retesting the lower border of the horizontal consolidation range between $61,400 and $72,000.
The recent Bitcoin price drop has also impacted the crypto-related mining stocks, amid concerns of profitability post-halving.
Bitcoin Mining-Related Stocks Dips
Despite the impressive Bitcoin performance in the first quarter, Marathon Digital Holdings Inc (NASDAQ: MARA) stock has dropped more than 34 percent in the past four weeks to trade around $14.74 on Wednesday. Riot Platforms Inc (NASDAQ: RIOT) stock has fallen over 47 percent YTD to trade around $8.14 at the time of this report.
Similarly, CleanSpark Inc (NASDAQ: CLSK) shares dropped 28 percent in the past four weeks to trade at about $14.75. Bitdeer Technologies Group Technologies Group (NASDAQ: BTDR) stock dropped around 35 percent in the last month to trade at about $5.55 on Wednesday.
Australia-based Bitcoin mining firm Iris Energy Ltd (NASDAQ: IREN) stock has dropped over 39 percent YTD to trade around $4.44 at the time of this writing. Canadian-based Bitfarms Ltd (NASDAQ: BITF) stock has dropped more than 41 percent YTD to trade around $1.75 on Wednesday.
New York-based Cipher Mining Inc (NASDAQ: CIFR) stock declined around 26 percent in the last month to trade around $3.45 at the time of this report. Bit Digital Inc (NASDAQ: BTBT) shares have dropped over 56 percent YTD to trade around $1.87 on Wednesday.
Unsubstantiated Post-Halving Fears
According to Mitchell Askew, a top analyst at Blockware Solutions, the upcoming Bitcoin halving event will turn out to be a buy-the-news event. Notably, Askew was addressing the state of the market which seems to be preparing for a further dip amid the ongoing Middle East crisis and the conflict between Russia and Ukraine.
“The halving will be a ‘buy the news’ event for public Bitcoin miners and the private ASIC market,” Askew noted.
As a result, Askew expects a general rebound of crypto-mining stocks in tandem with Bitcoin prices in the coming weeks. Meanwhile, Jaran Mellerud, founder and chief mining strategist of Hashlabs Mining, indicated that some US-based Bitcoin miners could expand overseas in search of cheaper electricity costs after the halving event.
Halving Price Action
As Coinspeaker reported, Bitcoin and the entire crypto prices have been reacting to the macroeconomic outlook, especially on the United States inflation issue. According to a popular crypto analyst Michael van de Poppe, Bitcoin price has already established a local top and is likely to consolidate in the range before continuing with the prior bullish trend.
next
Bitcoin Mining-Related Stocks Languish in Bear Zone amid Fears of Post-halving Profitability