The highly anticipated Bitcoin halving event is set to occur between April 19 and April 20, 2024. This quadrennial event, which cuts the supply of new bitcoins in half, has historically set the stage for new market cycles and bull runs. However, as CNBC explained in a recent article, the 2024 halving is shaping up to be a unique event due to several factors that could potentially lead to explosive growth in the Bitcoin price.

Source: NiceHash

According to CNBC, one key difference in this year’s halving is the U.S. SEC’s January 2024 approval of eleven spot Bitcoin spot ETFs, which has already driven significant demand for the cryptocurrency. Antoni Trenchev, co-founder of crypto trading platform Nexo, told CNBC:

“The halving is the ultimate geek event for Bitcoiners, but the 2024 iteration takes it up a notch because reduced supply combined with fresh ETF demand creates an explosive cocktail … What makes this halving unique is bitcoin has already surpassed the last cycle’s high — something it’s never done ahead of the quadrennial event — which makes trying to forecast the length and ferocity of this cycle much trickier.“

CNBC reports that the Bitcoin price has already surpassed the previous cycle’s high ahead of the halving, a feat never seen before, making it more challenging to predict the length and intensity of this cycle.

CNBC states that historically, Bitcoin has experienced substantial price increases following each halving event. After the 2012, 2016, and 2020 halvings, CNBC reports that the Bitcoin price increased by approximately 93x, 30x, and 8x, respectively, from the halving day price to the cycle top.

While past performance does not guarantee future results, and the magnitude of the halving’s impact on price may diminish over time, Steven Lubka, head of private clients and family offices at Swan Bitcoin, suggests to CNBC that if there was ever a moment to be optimistic about post-halving returns, it’s this year:

“This Bitcoin bull cycle — which kicked into gear earlier because of the January approval of the spot ETFs — might well be shorter and more explosive, culminating in a peak in late 2024 or early 2025.“

As explained by CNBC, the halving event itself is a technical change that occurs on the Bitcoin network, reducing the incentives for Bitcoin miners. Miners, who run the machines that record and add new blocks of transactions to the blockchain, are rewarded with newly created bitcoins and transaction fees. CNBC reports that the current mining reward of 6.25 bitcoins will be reduced to 3.125 bitcoins during the halving. This reduction in block rewards slows the pace at which new coins are created, helping to maintain bitcoin’s scarcity and its status as “digital gold.”

CNBC notes that while the halving day itself may not result in immediate market volatility, the long-term impact of the reduced supply can be significant. Lubka estimates to CNBC that every day following the halving, there will be approximately $30 million less in Bitcoin being sold by miners, who are the most regular sellers in the market. This reduced selling pressure can compound over time, potentially making a substantial impact on the Bitcoin price in the months following the event.

CNBC also says that, in addition to the supply shock, the 2024 halving is occurring in an environment of unprecedented demand for Bitcoin. Data from CryptoQuant, cited by CNBC, shows that “whale” demand, which includes long-time Bitcoiners, new investors, and Bitcoin ETF holders, is already at an all-time high, even before the block reward reduction. This suggests that demand growth, rather than the halving itself, may be the primary driver for higher prices in this cycle, according to CNBC.

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Kavita Gupta is the Founder and General Partner at Delta Blockchain Fund, boasting over 18 years of investment experience garnered through positions at The World Bank, IFC, and the Eric Schmidt Family office. She pioneered one of the first blockchain early-stage funds, ConsenSys Ventures, and an accelerator named Tachyon. Kavita has made initial investments in influential companies such as Polygon, Starkware, Quantstamp, and Sorare, contributing to a portfolio of over 100 companies.

Additionally, she is a visiting scholar at Stanford University, where she teaches the “Beyond Bitcoin” class. Kavita also serves as an advisor to several organizations, including the Hus Institute, UNICEF’s Giga project, Katapult investment fund, and the International Emmys. Her contributions to innovation were recognized in 2015 when she received the UN Innovation Award for her role in the creation of green and social impact bonds.

On 15 April 2024, Gupta appeared on CNBC’s “Squawk Box” to discuss the recent dynamics in the cryptocurrency market, including the Bitcoin halving (expected 19-20 April 2024) and other influential factors affecting the crypto landscape.

Gupta began by addressing the recent price actions in the cryptocurrency market, which saw significant fluctuations over the weekend, attributed partly to geopolitical tensions between Iran and Israel and tax-related liquidity issues. She noted that the market experienced a squeeze in liquidity due to these factors, leading to a short-term decline in prices.

Source: TradingView

She explained that the combination of increased geopolitical risk and the approaching deadline for tax payments in the U.S. contributed to market volatility. However, she observed a recovery in crypto prices following these initial declines, supported by positive developments such as the approval of Bitcoin and Ethereum ETFs in Hong Kong, which helped to restore investor sentiment.

As CryptoGlobe reported earlier today, Hong Kong’s securities watchdog has granted approval for the first spot Bitcoin and Ethereum exchange-traded funds (ETFs). According to Nikkei Asia, the Hong Kong branches of Bosera Asset Management and China Asset Management have announced in individual statements that they have secured the necessary approvals from the Hong Kong Securities and Futures Commission (SFC) to issue these ETFs.

Gupta pointed out that liquidity typically tightens around March and April due to tax filings, with individuals realizing they might owe more than anticipated. She believes that this annual phenomenon can lead to significant price volatility in the cryptocurrency market.

Discussing the Bitcoin halving, Gupta mentioned that such events are generally expected to be bullish for Bitcoin’s price due to the reduced supply of new coins entering the market. However, she noted that the impact of the halving might already be priced in by the market, as these events are known well in advance, and the market tends to anticipate them.

Gupta expressed her belief that the market could see a correction, estimating a potential pullback of 15% to 25%. She attributed this expected correction to the combined effects of market anticipation of the halving event and ongoing external economic pressures.

Looking ahead, Gupta was optimistic about the long-term prospects of the cryptocurrency market.

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In a recent interview with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, Nic Carter, Co-founder of Coin Metrics, offered an in-depth perspective on several key topics related to Bitcoin, particularly focusing on the implications of the Bitcoin halving event and broader trends in cryptocurrency.

Here are the main topics he covered:

Bitcoin Halving Expectations: Carter shared his thoughts on the upcoming Bitcoin halving event, which typically occurs every four years (or after 210,000 blocks have been mined), reducing the reward for mining a Bitcoin block by half. This upcoming halving will decrease the reward from 6.25 Bitcoins to 3.125 Bitcoins per block. Carter expressed a somewhat contrarian view to the common bullish sentiment surrounding halving events. He suggested that the halving might not lead to a significant positive price action and could potentially be a “sell the news” event, indicating only a marginal change due to the reduced issuance rate of new Bitcoins.

Impact on Bitcoin Miners: He discussed the potential impacts of the halving on Bitcoin miners, noting that the reduced block reward could lower their revenue significantly, possibly leading to consolidation or insolvency among miners. This scenario could pressure them to sell off Bitcoin holdings, which might affect the Bitcoin price negatively.

Long-Term Bitcoin Price Predictions: Despite the potential short-term volatility around the halving, Carter remained bullish on Bitcoin’s long-term price, citing ongoing demand factors as more significant than supply-side changes due to the halving.

Bitcoin’s Role in the Financial Ecosystem: Carter elaborated on Bitcoin’s integration into the broader financial system, highlighting its growing acceptance as a legitimate asset class, particularly following the January 2024 launch of spot Bitcoin ETFs in the U.S.

Technological Innovations and Bitcoin’s Future: He discussed the importance of technological advancements for Bitcoin’s continued relevance and competitiveness among cryptocurrencies. He emphasized the development of new layer-2 networks on Bitcoin, which would improve its programmability and transaction capacity. He said this development could bring Bitcoin technologically on par with other major blockchain platforms like Ethereum.

Reaction to Economic and Geopolitical Trends: Carter noted that macroeconomic factors such as monetary policies and liquidity conditions significantly impact Bitcoin’s price. He argued that Bitcoin’s appeal as a hedge against monetary repression and potential crises in sovereign currencies continues to support its value proposition as a “safe haven” asset.

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Landesbank Baden-Württemberg (LBBW) is a prominent financial institution based in Stuttgart, Germany. It is one of the largest banks in the country and serves as the central bank for the savings banks (Sparkassen) in the states of Baden-Württemberg, Rhineland Palatinate, and Saxony. LBBW was formed through the merger of several regional banks, with major steps in its formation occurring in 1999 when Südwestdeutsche Landesbank, Landesgirokasse, and the commercial banking business of L-Bank were consolidated. This move aimed to create a more robust regional banking entity capable of competing at both national and international levels.

LBBW plays a significant role in the financial system of the southwestern region of Germany, acting as a central institution for smaller savings banks in the area. It helps facilitate the smooth operation and financial stability of these banks, providing them with technical services and liquidity support. LBBW is noted for its robust financial health and commitment to innovation, particularly in the field of sustainable finance and digital banking solutions. The bank has been involved in various initiatives to promote sustainability in financial services and has been adapting to the digital transformation of the banking industry by investing in new technologies and improving its digital service offerings.

Bitpanda is a FinTech company based in Vienna, Austria, known primarily for its digital platform that allows users to buy, sell, and store various digital assets. Founded in 2014 by Eric Demuth, Paul Klanschek, and Christian Trummer, the platform has grown significantly and is recognized for its user-friendly interface and accessibility. Bitpanda has experienced significant growth since its inception, both in terms of user base and the range of services offered. It has raised substantial capital through various funding rounds, helping it to expand its operations across Europe. Bitpanda is registered with the Austrian Financial Market Authority (FMA).

According to a report by Bloomberg News published on 15 April 2024, LBBW is set to begin offering cryptocurrency custody services, expanding into the rapidly evolving digital assets market. In a strategic partnership with Bitpanda, a leading digital exchange, LBBW will start providing these services to institutional and corporate clients in H2 2024.

The move by LBBW to integrate cryptocurrency solutions reflects a broader trend among German financial institutions, which are increasingly engaging with the digital assets sector. “The demand from our corporate customers for digital assets is increasing,” Jürgen Harengel, LBBW’s managing director of corporate banking, told Bloomberg. This increasing interest is pushing more traditional banks to adapt and innovate in the realm of crypto services.

Bloomberg reports that other major German banks and asset managers are also making significant strides in the crypto space. Notably, Deutsche Bank is developing its own digital-asset custody service, and its DWS unit is involved in a consortium that’s working on a euro-denominated stablecoin. These developments are part of a wave of new financial products designed to integrate traditional banking with digital asset management, timed ahead of new EU regulations set to be implemented later this year.

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On 15 April 2024, Nikkei Asia reported that Hong Kong’s securities watchdog had granted approval for the first spot Bitcoin and Ethereum exchange-traded funds (ETFs), marking a significant step towards establishing the city as the first in Asia to recognize these prominent cryptocurrencies as conventional investment vehicles. The news outlet stated that the Hong Kong branches of Bosera Asset Management and China Asset Management had announced in individual statements that they had secured the necessary approvals from the Hong Kong Securities and Futures Commission (SFC) to initiate these ETFs.

China Asset Management (Hong Kong) stands as a key player in Hong Kong’s asset management sector. Established in 2008 as an overseas extension of China Asset Management, one of China’s largest fund companies, it was among the first Chinese asset management firms to expand internationally. As of December 31, 2023, its parent company managed assets surpassing US$266 billion. Over the past 16 years, the company has cultivated a robust investment research team that supports a wide array of financial products and services. These offerings include long-term equity and bond funds, hedge funds, exchange-traded funds (ETFs), leveraged and inverse products, and separately managed accounts.

In its statement, China Asset Management (Hong Kong) said that it had received approval from the SFC to “issue ETF products that can invest in spot Bitcoin and spot Ethereum” and that it had “joined hands with OSL Digital Securities Co., Ltd., a leading partner in the virtual asset industry, and BOC International Prudential Trusteeship Ltd., a leading custodian, to actively research and deploy this.”

At the time of writing, Bitcoin and Ethereum are trading at around $66,509 (up 2.7%) and $3,244 (up 5.0%), respectively.

Source: TradingView Source: TradingView

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On 12 April 2024, BlackRock, Inc. (NYSE: BLK), the world’s largest asset manager by AUM, reported its financial results for the three months ended March 31, 2024.

According to the company’s earnings release, in Q1 2024, BlackRock showcased impressive growth figures, further solidifying its position as a global leader in asset management. The firm reported a record $10.5 trillion in assets under management (AUM), marking a significant increase of $1.4 trillion compared to the previous year. This growth in AUM is attributed to BlackRock’s consistent organic growth and favorable market movements.

During the quarter, BlackRock achieved $76 billion in long-term net inflows, demonstrating the strength and appeal of its diverse investment platform. These inflows were consistent across various asset classes and client types, underscoring the firm’s broad-based market appeal. Despite seasonal outflows from cash management, total net inflows still reached $57 billion.

Financially, BlackRock saw an 11% year-over-year increase in revenue. This boost was primarily driven by the positive impact of market performance on average AUM, alongside organic base fee growth and higher performance fees and technology services revenue. Operating income for the quarter also rose by 18%, with adjusted figures showing a 17% increase.

Earnings per share (EPS) saw a remarkable 37% increase compared to the same period last year, with adjusted EPS growing by 24%. These gains reflect higher nonoperating income and a lower effective tax rate during the quarter.

Additionally, BlackRock issued $3 billion in debt to partially fund its planned acquisition of Global Infrastructure Partners. The firm also continued to return value to shareholders, repurchasing $375 million in shares and increasing its quarterly cash dividend by 2% to $5.10 per share, further demonstrating its financial health and commitment to shareholder returns.

Per a recent statement mentioned in BlackRock’s Q1 2024 earnings release, the firm’s Chairman and CEO, Larry Fink, highlighted the trust and reliance clients place in BlackRock to maximize the potential of their portfolios, as evidenced by the industry-leading total net inflows of $236 billion over the past twelve months. This client engagement has fueled sustained growth in both asset management and technology services, with technology services revenue seeing a double-digit increase.

The CEO pointed out that BlackRock’s growth is driven by its continual innovation, investment, and a strong focus on client needs. He mentioned that By maintaining close connections and adapting to the evolving demands of clients, BlackRock has deepened its client relationships and is having more comprehensive discussions about portfolio management than ever before.

Looking ahead, Fink sees substantial growth opportunities in sectors such as infrastructure, technology, retirement, and comprehensive portfolio solutions. He believes that with a robust pipeline featuring some of the broadest offerings in the company’s history, BlackRock is well-positioned to meet complex market challenges and opportunities. Fink reiterated the company’s commitment to staying ahead of client needs, aiming to drive long-term growth for clients, shareholders, and employees alike.

Later that day, in an appearance on CNBC’s “Squawk on the Street,” the BlackRock CEO shared insights into the company’s latest earnings results, which surpassed expectations, and emphasized the critical role of investing in AI infrastructure for future economic growth and technological advancement.

Larry Fink began the discussion by addressing the uncertain economic backdrop against which BlackRock still managed to achieve strong earnings. He noted significant inflows into fixed income, which he attributed to the current high levels of uncertainty causing investors to opt for safer investments. Interestingly, there has been a record $9 trillion moving into money market funds, indicating a cautious stance from investors globally. However, Fink pointed out that those fully invested in the equity markets would have seen a 25% return, underscoring the long-term value of American-style capitalism and market-driven returns.

Fink stressed the transformative potential of Artificial Intelligence (AI) but highlighted that such transformation cannot occur without substantial investments in infrastructure. AI technology requires enormous amounts of energy, and without a significant increase in power generation, adopting AI on a large scale would be infeasible. He predicted a critical need to develop gigawatts of electricity capacity, not just megawatts, to support this technological evolution.

Fink elaborated on the investment opportunities arising from the necessity to expand electricity and power infrastructure. He mentioned that these developments are essential not only to support the demands of AI but also to facilitate the ongoing global efforts toward decarbonization. This dual need, he believes, presents substantial economic opportunities, likely amounting to trillions of dollars in new investments.

The BlackRock CEO also shared that this push towards enhancing AI capabilities and infrastructure is not limited to the United States. He has been in discussions with political leaders from various countries who are equally eager to develop data centers and AI technology, alongside efforts to reduce carbon emissions. This global drive underscores a robust international commitment to advancing technology and sustainability, which Fink believes will continue to stimulate economic growth worldwide.

Reflecting on BlackRock’s operations, Fink highlighted the resilience and strength of the company’s business model. With a record $10.5 trillion in managed assets, of which more than half are retirement funds, BlackRock has seen positive inflows across its portfolio worldwide. He finds this notable given the broader industry trend of outflows, particularly from active investments. Fink was particularly optimistic about the company’s future, citing the strongest pipeline of incoming funds he has seen in a long time, indicating potential acceleration in business activities.

In the firm’s Q1 2024 Earnings Conference Call, the BlackRock CEO highlighted the remarkable success of the firm’s new Bitcoin fund:

“Our Bitcoin fund, which was launched in January was the fastest growing ETF in history and already has nearly $20 billion in AUM.“

He also mentioned that BlackRock announced last month the launch of its first tokenized fund:

“To that end, last month, we announced the launch of our first tokenized fund as well as our minority investment in Securitize, a blockchain-based tokenization platform. This builds on our existing digital asset strategy and we’ll continue to innovate in new products and wrappers all with the aim of providing greater access and customization to each and every of our clients.“

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Nomad Capitalist is a company that provides consulting services focused on offshore strategies, foreign citizenships, and global living for high-net-worth individuals and entrepreneurs looking to legally reduce their tax burdens, diversify their investments, and expand their personal freedom through international opportunities. The firm is known for advising on topics such as second passports, offshore banking, legal tax reduction strategies, and overseas investments.

The founder and CEO of Nomad Capitalist is Andrew Henderson. He started the company based on his own experiences and strategies in traveling and doing business globally. Henderson is also the author of the book “Nomad Capitalist,” where he details methods for reducing taxes, obtaining dual citizenship, and living globally. His philosophy is centered around the idea of “go where you’re treated best,” which encompasses finding the countries that offer the best benefits in terms of taxation, lifestyle, and business opportunities for individuals.

Black Swan events are unpredictable occurrences that have significant and widespread consequences. This concept was popularized by Nassim Nicholas Taleb, a finance professor, writer, and former Wall Street trader, in his 2007 book titled “The Black Swan: The Impact of the Highly Improbable.”

Here are key characteristics of Black Swan events:

Unpredictability: These events are extremely difficult, if not impossible, to predict, and therefore typically catch people and systems off guard.

Massive Impact: Black Swan events have profound effects, often reshaping economies, societies, or industries in significant ways. For example, the 2008 global financial crisis and the COVID-19 pandemic are frequently cited as examples of Black Swan events due to their extensive and severe impacts on the global economy and public health.

Rationalization After the Fact: After a Black Swan event occurs, there is a common tendency to rationalize the event as if it could have been expected; in hindsight, people believe it was predictable despite it being very unlikely before it happened.

In a video released on 13 April 2024, Henderson addressed the intriguing question of whether Bitcoin can protect investors against Black Swan events.

Henderson began by critiquing the common perception that Bitcoin alone could serve as a comprehensive protective measure against all types of global disruptions. He highlighted the limitations of relying solely on Bitcoin, pointing out that while it may offer some protection against specific financial downturns, it falls short of shielding investors from the full spectrum of potential crises that can arise.

Throughout his discourse, Henderson emphasized the importance of diversification in asset protection. He noted the recent underperformance of traditional safe-haven assets such as U.S. treasuries and diversified portfolios, which has led investors to seek alternative strategies. He argued that Bitcoin should be considered a valuable component of treasury management but not the sole solution. He said that real-life implications of financial strategies also require considering geographic and political diversification, including the acquisition of tangible assets and alternative currencies like Singapore dollars to mitigate geographical risks and political exposure.

Henderson also discussed the significance of integrating lifestyle strategies with financial planning, specifically the benefits of holding multiple residencies or citizenships. He explained that such strategies provide a buffer against local and global uncertainties, allowing individuals more flexibility and security when countries impose restrictive measures during crises.

Further into the discussion, Henderson praised the potential freedoms offered by smaller, less intrusive governments. He suggested that countries without hegemonic ambitions are less likely to impose restrictive controls on wealth and movement, often welcoming wealthy foreigners as a strategy to boost their economies.

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Sprott Inc. (NYSE: SII) is a global investment firm headquartered in Toronto, Canada, specializing in precious metals and real assets investing. Sprott offers a range of investment solutions, including physical bullion trusts, mining ETFs, equity-managed accounts, and debt and private equity strategies.

Sprott is well-known for its expertise in the precious metals sector, particularly in gold, silver, platinum, and palladium. The firm provides several investment vehicles that allow investors to gain exposure to physical bullion or shares in mining companies.

The firm offers a variety of investment products that cater to different investor needs, including mutual funds, ETFs (Exchange Traded Funds), and private equity funds focused on the natural resource sector. They also manage specialized investments like physical bullion trusts which are designed to hold physical gold and silver.

Beyond precious metals, Sprott also invests in other natural resources and real asset categories including energy, agriculture, and real estate, often focusing on resources that have a potential for high growth in response to economic and technological developments.

On 12 April 2024, John Ciampaglia, CEO of Sprott Asset Management, shared his optimistic perspective on gold during an interview on CNBC’s “Fast Money.”

Ciampaglia highlighted a significant trend in the gold market, where central banks globally have increased their gold purchases markedly over the past 18 months. He believes this movement is not just a mere diversification effort but part of a broader “de-dollarization” trend, with China at the forefront:

“China is clearly leading the way there; they have a voracious appetite to add more gold. We think this is part of a dollarization trend that’s going on.“

He said that besides China, other nations like Turkey, Singapore, and Poland have also been substantial buyers. He also mentioned that this robust demand from central banks underpins a fundamental support level for gold prices, suggesting a sustained upward pressure.

The conversation also touched on the performance disparity between physical gold and gold miners. Ciampaglia explained:

“Gold miners provide a lot of operating leverage and optionality to a higher gold price, and historically, in bull markets, they have outperformed.“

However, he pointed out that in recent years gold miners have lagged behind the price increases in physical gold. He attributed this lag to inflation impacting profitability and a lack of institutional and retail investor support for gold stocks. Recently, there has been a turnaround with gold stocks performing better, indicating renewed investor interest.

The interview also delved into the geographic disparities in gold investment. According to Ciampaglia, Eastern investors, particularly from China, have been pivotal in driving demand. In contrast, Western investors have apparently been more reticent during the current rally:

“Western investors have largely ignored this rally, which we think, over time especially if we start to see some heightened geopolitical risks, we’re going to see a shift back to the safe haven.“

Ciampaglia discussed the potential catalysts that might drive Western institutional investors back to gold. He noted that geopolitical tensions could play a significant role in this shift.

Discussing typical allocations, Ciampaglia mentioned that Western institutional investors currently have a significantly lower percentage of their portfolios in gold, well below historical peaks seen in past bull markets:

“Right now, we think it’s somewhere in the sub 2% range in terms of their overall allocation… at the height of the last bull market, it was somewhere close to 8%.“

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Mizuho Securities is a major Japanese investment banking and securities firm. It is a subsidiary of Mizuho Financial Group, one of the largest financial services companies in Japan, which also includes Mizuho Bank and Mizuho Trust & Banking.

On 12 April 2024, Dan Dolev, a senior research analyst at Mizuho Securities, joined CNBC’s “The Exchange”, where he provided a detailed and somewhat critical perspective on the cryptocurrency market, mainly focusing on Bitcoin and Coinbase.

Dolev expressed significant skepticism about Bitcoin’s role and stability as an investment vehicle. He questioned whether Bitcoin behaves more like a growth stock or a store of value, ultimately suggesting that it currently operates like the latter but without any substantial foundational support.

Dolev was quite direct in his criticism of Bitcoin, highlighting a lack of intrinsic value and yield support that could sustain its long-term price. He stated:

On Bitcoin’s viability: “Right now, it’s doing well, but I still think that longer term it has no yield support. It’s basically just FOMO, and I think eventually it’s going to go down.”

On Bitcoin’s future prospects: “I think eventually this is going to unravel … there’s really nothing there.”

Predictions on Bitcoin’s price: “I see no value in it personally, so it probably goes back to like the 40s or 30s easily.”

Dolev touched on several key aspects of Coinbase’s current business situation and future outlook. He acknowledged the strong trading volumes recently observed but expressed concerns about the sustainability of this trend and the overall health of the business:

On Coinbase’s recent performance: “The call today is basically, look, I mean volumes have been strong. I mean we said that the HODLers have won, they won Q1l so the volumes were just so strong.”

On the revenue forecast: “Consensus is underestimating, you know, what they’re going to put out in terms of revenue by 40%. We had to take up our revenue estimates and EBITDA, and just to be fair, we had to take up our price target, but we still see massive downside from where the stock trades today.”

Dan Dolev also briefly talked about gold in the context of comparing it to Bitcoin and other investment vehicles: “Gold has probably been around… I personally believe more in real estate… but yeah, I guess gold… we’re used to it, people can, you know, we have like a predisposition to like it.”

Dolev also commented on the latest bank earnings, noting some weaknesses, particularly in the area of deposits. He observed a trend where customers are moving away from zero or low-interest products to higher-yielding options like CDs. This shift poses challenges for traditional banks but creates opportunities for fintech firms.

He specifically mentioned SoFi, praising its strategy of increasing personal loans, which he believes could significantly boost its profitability and stock performance. Dolev is optimistic about fintech’s potential to outperform traditional banks, especially as they offer higher yields and innovative products without the need for physical branches.

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A popular cryptocurrency analyst known in the space for accurately predicting the cryptocurrency market bottom during the 2018 bear market has recently revealed he believes the price of smart contract platform Solana ($SOL ) will go “higher” from its current level.

In a post shared on the microblogging platform X (formerly known as Twitter) with their over 250,000 followers, pseudonymous analyst Bluntz Capital followed up on a previous post predicting the price of SOL would drop to the $160 mark “before we can think about the next leg up.”

The smart contract platform’s native currency SOL saw its price drop to the $162 mark over the week but has since recovered to $167.8 at the time of writing.

In a post on the microblogging platform, Bluntz capital noted that he believes the $162 mark was the bottom for SOL and expects it keep on rising from its current level.

160 was front run by $2 but i think thats it for $sol now, higher from here imo https://t.co/4KWlXxmgEd pic.twitter.com/Z50IxZLjv9

— Bluntz (@Bluntz_Capital) April 10, 2024

A prominent cryptocurrency analyst known as Bluntz is expressing strong optimism for Solana (SOL), a competitor to Ethereum (ETH). Solana has seen its price skyrocket by over 700% in the past six months, and Bluntz believes the trend is poised to continue.

Bluntz utilizes the Elliott Wave Theory, a technical analysis framework that suggests an asset’s price movement unfolds in a specific, five-wave pattern. Elliott Wave Theory, a popular form of technical analysis, postulates that market trends unfold in repetitive cycles driven by investor psychology. These cycles typically consist of a five-wave progression in the direction of the prevailing trend, followed by a three-wave corrective phase.

Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he observed and identified “recurring, fractal wave patterns.” These fractal wave patterns are based on the psychology of the masses.

The price of Solana has surged by more than 660% over the past six months and is up over 65% so far this year. To the analyst, there’s also a bullish divergence on the four-hour chart for the Solana/Bitcoin pair, indicating that while the price of Solana relative to Bitcoin is trending downward, the Relative Strength Index (RSI) – a technical indicator measuring market momentum – is trending upward.

This suggests potential for an impending price reversal for Solana against Bitcoin, meaning the smart contract platform could soon start again outperforming the flagship cryptocurrency.

It’s worth noting Bluntz is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.

Featured image via Unsplash.

Robert Kiyosaki, author of the best-selling personal finance book “Rich Dad Poor Dad,” has reiterated his optimistic outlook on Bitcoin, predicting a price surge to $2.3 million per BTC.

Kiyosaki, citing a forecast by Ark Invest CEO Cathie Wood, expressed his trust in her expertise and the potential for Bitcoin’s value to reach such heights. He emphasized that regardless of the exact price prediction, individuals should consider their own investment strategies and Bitcoin holdings.

This bullish stance on Bitcoin comes hand-in-hand with Kiyosaki’s repeated warnings about a looming crash in traditional markets after he expressed concern about a potential bubble encompassing stocks, bonds, and real estate, coupled with rising U.S. debt and the possibility of national bankruptcy.

Kiyosaki has consistently advocated for alternative assets like Bitcoin, gold, and silver as hedges against inflation and a weakening U.S. dollar. He views Bitcoin as a “flight to safety” option in the current economic climate.

Kathie Wood quarantees Bitcoin will hit $2.3 million per BTC. Do I believe her? Yes I do. Kathie Wood is very smart. I trust her opinion. Could she be wrong? Yes. She could be. So what? The more important question is “ What do you believe?” What if Kathie is right? What if…

— Robert Kiyosaki (@theRealKiyosaki) April 11, 2024

These predictions come on the heels of Kiyosaki’s earlier forecasts for Bitcoin, including a $100,000 price target by September 2023 and a $300,000 mark sometime this year.  The best-selling author has earlier this year revealed that he owns 66 Bitcoins.

As CryptoGlobe reported, Kiyosaki has in the past suggested that the price of bitcoin is going to move up to more than $1.2 million over the next few years, while still advocating for gold and silver, which he said are “God’s money.”

Kiyosaki’s words come as spot Bitcoin exchange-traded funds (ETFs) have kept on attracting investor inflows over this past week, with data showing that total inflows reached $91.3 million on April 11, led by BlackRock’s iShares Bitcoin Trust (IBIT), whose total net inflows now top $15 billion.

According to data shared by BitMEX Research, the spot Bitcoin ETF offered by the world’s largest asset manager saw a significant inflow of $192.1 million on April 11, the largest daily inflow since April 5. The fund has average daily inflows of $240.4 million since it was first launched.

Featured image via Unsplash.

Spot Bitcoin exchange-traded funds (ETFs) have kept on attracting investor inflows over this past week, with data showing that total inflows reached $91.3 million on April 11, led by BlackRock’s iShares Bitcoin Trust (IBIT), whose total net inflows now top $15 billion.

According to data shared by BitMEX Research, the spot Bitcoin ETF offered by the world’s largest asset manager saw a significant inflow of $192.1 million on April 11, the largest daily inflow since April 5. The fund has average daily inflows of $240.4 million since it was first launched.

Valkyrie’s Bitcoin Strategy ETF (BRRR) also saw positive inflows, receiving $8.4 million on Thursday, marking its largest daily inflow since March 26 and bringing its total net inflows to $467.5 million.

Total spot Bitcoin ETFs inflows were dampened by Grayscale’s GBTC, which experienced a net outflow of $124.9 million, bringing its total net outflows to $16.1 billion. The fund, nevertheless, still holds an astonishing 314,151 BTC as it was already Bitcoin’s largest fund before it was converted into a spot ETF.

BlacRock’s IBIT, in comparison, holds 269,310 BTC after registering significant inflows since launch.

Bitcoin ETF Flow – 11 April 2024All data in. Total net inflow of $91m pic.twitter.com/BjQUayxmww

— BitMEX Research (@BitMEXResearch) April 12, 2024

These inflows are coming at a time in which demand for the flagship cryptocurrency is “growing at an unprecedented pace,” at a time in which the supply of Bitcoin held on cryptocurrency exchanges has dwindled to record lows, suggesting a potential supply shock that could drive prices higher could soon occur.

According to Julio Moreno, Head of Research at cryptocurrency analytics firm CryptoQuant, demand for the flagship cryptocurrency “has become more important than supply” and, according to the firm’s data, demand for BTC from permanent holders has for the first time ever outpaced issuance.

Data from CryptoQuant shows that known exchange addresses now hold roughly 1.94 million BTC, a figure that represents a mere 9.8% of Bitcoin’s total circulating supply of around 19.67 million coins.

These exchange reserves have been steadily declining from a peak of 2.85 million BTC seen in July 2021, with the diminishing supply on exchanges suggesting that investors are increasingly taking a long-term holding strategy rather than being actively trading.

It’s worth pointing out that a lower supply on exchanges could lead to a potential supply shock if demand is to suddenly surge. A supply shock occurs when the readily available supply of an asset on exchanges abruptly drops while demand increases.

Featured image via Unsplash.

To address the limitations of the Ethereum blockchain in terms of speed and cost, the concept of layered scaling solutions has emerged. The Ethereum network itself acts as the base layer (L1), responsible for finalizing transactions and ensuring the network’s security. Layer 2 (L2) solutions, such as Arbitrum and Optimism, operate on top of L1, handling a significant portion of transactions to improve both speed and efficiency. These L2 solutions ultimately rely on the L1 network for finalizing transactions and resolving any disputes.

Layer 3 (L3) blockchains represent an even further abstraction built upon the existing infrastructure of L2s. They offer the potential for even greater scalability and the opportunity for developers to customize them for specific purposes that would be difficult to achieve on L2s or directly on the Ethereum main network. L3s, while indirectly, still benefit from the security of the underlying Ethereum blockchain through their connection to L2s. Furthermore, the composability of L3s within the Ethereum ecosystem means they can seamlessly interact with the main Ethereum network (L1), with L2s, and even with other L3s, creating a rich environment for the development of decentralized applications (dApps).

It’s important to note that the concept of L3 blockchains is still evolving, and the lines between L2 and L3 solutions can sometimes blur. However, the essential idea is that L3s represent another step forward in making Ethereum scalable and customizable while maintaining its L1 security foundations and the advancements made in L2 scaling.

In a video update released on 10 April 2024, Guy Turner, the founder and host of the YouTube series Coin Bureau, took a closer look at several Ethereum L3 projects.

The video starts with an overview of Ethereum’s challenges, primarily its congestion and high gas fees due to its popularity and widespread use. This congestion often leads to a demand surge for block space, which results in higher transaction costs.

Turner explains that to mitigate these issues, L2 solutions like Arbitrum and Optimism were developed. These L2 protocols operate by bundling transactions together, processing them, and then sending the data back to the main Ethereum chain (Layer 1). He says this approach helps reduce costs and increase transaction speeds but still leaves room for further improvements.

He goes on to say L3 solutions are introduced as the next step in the evolution of blockchain scalability and that these protocols are designed to build on the capabilities of L2s, enhancing Ethereum’s scalability and efficiency even further. He also mentioned that L3s optimize various consensus mechanisms and data structures, enabling even higher transaction throughput.

Turner delves into the functionality and benefits of Layer 3 technologies, underscoring their critical role in enhancing blockchain efficiency. Layer 3 solutions process multiple Layer 2 transaction bundles simultaneously, which significantly boosts network speed and efficiency. These technologies are integral to the application layer, allowing for the creation of user-friendly, secure, customizable, and cost-efficient applications. Moreover, by improving usability and interoperability, Layer 3s are designed to drive broader adoption of blockchain technology, offering substantial benefits especially to new users who might find traditional blockchain interfaces cumbersome.

Further exploring the impact of these technologies, Turner highlights three active and developing Layer 3 projects that each make unique contributions to the Ethereum ecosystem and have their own tokens. Orbs ($ORBS), for instance, serves as a decentralized backend that enhances both EVM and non-EVM compatible smart contracts. Degen ($DEGEN), known for its focus on meme coins, also supports gaming and DeFi applications, demonstrating the versatile applications of Layer 3 technologies. Additionally, Xai ($XAI ), a gaming-focused Layer 3 built on Arbitrum, aims to drastically improve the gaming experience by increasing network scalability, showcasing the potential of these technologies to transform user engagement across various platforms.

The video discusses the added complexities that multiple layers may introduce, which could potentially confuse new users and mentions that monolithic chains like Solana might seem more attractive due to their straightforward operation and lack of additional layers.

The discussion about the potential downsides and adoption barriers of L3 technologies, as outlined by Turner, reveals several critical issues. One significant concern is the risk of centralization; adding more layers could potentially detract from the decentralized ethos fundamental to blockchain technology. Moreover, L3s face intense competition not only from other blockchain projects but also from within the Ethereum ecosystem, including L2 solutions. This internal competition might lead to fragmentation and inefficiencies within the system. Additionally, for L3 technologies to gain widespread trust and foster broad adoption, they need to be thoroughly tested and proven secure. Turner highlights these aspects to underscore the challenges that L3 technologies must navigate to achieve their full potential.

Featured Image via Pixabay

A total of $1.5 billion worth of Bitcoin ($BTC ) options are set to expire today, April 12, 2024, while an additional $800 million worth of Ethereum ($ETH ) options contracts are to expire as well, injecting uncertainty into the cryptocurrency market.

With a combined notional value of $2.3 billion, the expiry of these contracts, representing 21,000 BTC and 230,000 ETH, could trigger increased volatility in the coming days. According to analysts from Greeks.live, the put-to-call ratio for Bitcoin options contracts sits at 0.62, suggesting a bias towards put options, which give holders the right but not the obligation to sell BTC at a predetermined price.

The analysts noted that the “maximum pain point” for Bitcoin, the price at which most options contracts would expire worthless, is at $69,000. Ethereum options, they wrote, have a put-to-call ratio of 0.49, with a “maximum pain point” at $3,425.

12 April Options Data21,000 BTC options are due to expire with a Put Call Ratio of 0.62, a Maxpain point of $69,000 and a notional value of $1.5 billion. 230,000 ETH options are due to expire with a Put Call Ratio of 0.49, a Maxpain point of $3,425 and a notional value of $800… pic.twitter.com/MjPStb9VW1

— Greeks.live (@GreeksLive) April 12, 2024

Bitcoin, it’s worth noting, is at the time of writing trading at $70,700 after moving up around 0.4% over the past 24 hours, while Ethereum is changing hands for around $3,515 per token after losing 1.3% of its value over the last 24-hour period, according to CryptoCompare data.

The analysts added they detected a notable rise in volatility within the crypto market this week, with Bitcoin oscillating between $66,000 and $72,000 and Ethereum hovering around $3,500. Short calls, a bearish strategy that profits from a decline in price, have emerged as the most popular trade this month.

Furthermore, expectations surrounding the upcoming Bitcoin halving event, which will cut in half the coinbase reward miners receive per found block, effectively halving the supply of newly minted BTC entering the market, appear “to be overdrawn,” they wrote.

The analysts concluded that with a recent slowdown in inflwos to spot Bitcoin exchange-traded funds (ETFs), a lack of “new hot spots in the market and a more subdued sentiment,” that “selling medium-term is indeed the best option, and short term is worth it due to the presence of the halving.”

As CryptoGlobe reported, a popular cryptocurrency analyst known in the space for accurately predicting the cryptocurrency market bottom during the 2018 bear market, has recently outlined Bitcoin’s “max pain” scenario, but noted that despite it there could still be a “real run up.”

The analyst noted that he believes Bitcoin’s “max pain” scenario is to lose its recent high and while doing so see investors buy the dip expecting it to keep on rising as they “think its some kind of triangle breakout.”

Per his words, the scenario would then see BTC’s price “fade back into the lower end of the range again” before the cryptocurrency starts surging again. His price targets suggest BTC could fall to around the $64,000 mark before a surge takes it to around $82,000.

Featured image via Pixabay.

In an interview on April 9, 2024, with Sonali Basak from Bloomberg TV, Marathon Digital (NASDAQ: MARA) CEO Fred Thiel shared his extensive insights into the evolving landscape of Bitcoin mining and the anticipated impacts of the upcoming Bitcoin halving (expected around April 20).

Bitcoin Price and ETFs Influence: Thiel believes the U.S. SEC’s approval of spot Bitcoin ETFs in January has significantly influenced the cryptocurrency market. According to him, the successful launch of these ETFs has attracted considerable capital into the market, potentially accelerating the price appreciation that typically follows a halving event. He said, “I think the ETF approval, which has been a huge success, has attracted capital into the market and essentially brought forward what could have been the price appreciation we typically would have seen three to six months post-halving.”

Marathon’s Strategic Moves: To optimize operations ahead of the halving, Marathon Digital has shifted from an asset-light model to acquiring more control over its mining facilities. Thiel explained that previously, the company relied on third-party services for infrastructure but now owns over 53% of its facilities. This transition allows Marathon to reduce costs and improve efficiencies by eliminating the middleman.

Cost of Mining and Operational Efficiency: Thiel shared that Marathon’s average cost to mine one Bitcoin is in the low $20,000 range, which includes energy and operational overhead. With the halving, he anticipates this cost will effectively double due to increased energy requirements per Bitcoin mined, although the operational expenses, such as personnel, remain unchanged.

International Expansion and Technological Innovations: Looking ahead, Thiel revealed plans for international expansion to diversify Marathon’s operational base and reduce reliance on any single geopolitical area. He also emphasized Marathon’s investment in a vertically integrated technology stack and innovative cooling technologies, which could have applications beyond cryptocurrency mining.

Sustainability and Future Outlook: A significant part of the interview focused on the sustainability of mining operations. Thiel introduced an intriguing concept of “energy harvesting,” which involves using methane gas from landfills, biomass from various industrial processes, and other sources to power mining operations. This approach apparently not only reduces the cost of energy but also leverages the heat generated from mining to serve industrial needs, creating a symbiotic relationship between crypto mining and other industries.

Impacts of the Halving: The halving will reduce the daily Bitcoin emissions, which poses challenges and opportunities for miners. He said, “The halving event will reduce the supply of Bitcoin by about 450 a day, the new emissions of Bitcoin, which will have some small impact on price most probably. But as miners, we’re very excited to go into a halving where, for once, the price has not declined prior to the halving but rather has gone up.” Thiel anticipates that less efficient miners may struggle, potentially leading to acquisitions and further consolidation in the industry. He also expects this will spur technological advancements and operational optimizations among surviving firms.

On 11 April 2024, Marathon Digital shares closed at $17.60, down 23.24% for the year-to-date period.

Source: Google Finance

Featured Image via Pixabay

In a recent analysis, market intelligence firm Santiment has spotlighted an emerging trend that could be pivotal for Bitcoin’s price trajectory: a diminishing correlation with traditional stock markets. According to Santiment’s latest observations, this trend may set the stage for Bitcoin to achieve unprecedented price levels, potentially reaching as high as $100,000.

Santiment is a company well-known in the crypto analytics space. They specialize in providing data-driven tools and insights to help investors and traders navigate the cryptocurrency markets. Their focus revolves around three main data types: raw blockchain data (like transaction volumes and token flows), social media sentiment analysis, and tracking development activity on platforms like Github. Santiment aims to provide users and subscribers with ways to access, visualize, and analyze this diverse range of data. They offer pre-made dashboards, customizable charts, and alerts, all with the goal of helping users make more informed decisions based on a combination of the data insights and their own analysis.

Brian Quinlivan, the marketing director at Santiment, explained in a recent update that Bitcoin appears to be charting a course independent of the stock market’s movements. This trend is significant as past data indicates that Bitcoin thrives during periods when its price movements are not in sync with the broader stock market, according to Quinlivan.

He said that this divergence was particularly evident following the release of the March CPI data, which negatively impacted equities but had a different effect on Bitcoin.

According to the U.S. Bureau of Labor Statistics, in March, the Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.4 percent, matching the increase observed in February. Over the past year, this index has climbed 3.5 percent without seasonal adjustments.

Key drivers of the March increase were the shelter and gasoline indexes, which together accounted for more than half of the rise in the overall index. The energy index saw a 1.1 percent increase during the month, while the food index edged up by 0.1 percent. Notably, food prices at home remained stable, whereas prices for eating out increased by 0.3 percent.

Excluding food and energy, the core CPI also rose by 0.4 percent in March, consistent with its growth in the previous two months. Categories seeing increases included shelter, motor vehicle insurance, medical care, apparel, and personal care. In contrast, prices for used cars and trucks, recreation, and new vehicles declined.

Looking at annual trends, the all-items index has risen by 3.5 percent over the 12 months ending in March, marking a slight acceleration from the 3.2 percent increase recorded in the previous period. The core index, excluding food and energy, went up by 3.8 percent over the same timeframe. Energy prices saw a 2.1 percent rise, marking their first annual increase since February 2023. Food prices have risen by 2.2 percent over the past year.

Quinlivian stated that, after a brief dip, possibly due to market anticipation of the inflation news, Bitcoin quickly rebounded, surpassing the $70,000 mark. This was contrary to the downturn seen in the S&P 500, which reverted to levels seen about a week prior, Quinlivan noted.

Source: TradingView Source: TradingView

This scenario is apparently not isolated. Similar patterns of divergence have been observed at various points over the last two years, despite generally tight correlations between cryptocurrency and equity markets during that time, Quinlivan pointed out. He believes such instances underscore Bitcoin’s potential for independent movement, especially in turbulent economic times.

As of the latest market data, Bitcoin’s price stood at approximately $70,632, essentially flat on the day.

Featured Image via Unsplash

Scorpion Casino, a licensed online gaming platform that bridges the gap between traditional gambling and cryptocurrency, has announced an official token launch date of April 15th.

This follows a successful pre-sale event that is selling out rapidly and garnered over $10 million from more than 21,000 participants. With nearly two years of established operations, Scorpion Casino prioritizes a secure and trusted environment through its commitment to transparency.

Its work is underscored by listings on major cryptocurrency exchanges, ensuring accessibility and liquidity for their native $SCORP token. Scorpion Casino offers unique features catering to both gaming and crypto enthusiasts.

Daily buy-backs, burns, and passive staking are complemented by a tiered non-fungible token (NFT) membership system (starting at $1,000) offering exclusive perks and luxury prize drawings that is available during the pre-sale. Partnerships with Tenset (Metahero incubator) and sponsorship of SIGMA, the world’s largest iGaming conference, solidify their dedication to industry leadership and innovation.

Scorpion Casino’s commitment is further evidenced by a substantial pre-launch investment by its founders, exceeding six figures.

As April 15th approaches, Scorpion Casino beckons both gaming enthusiasts and crypto investors to join their groundbreaking journey. With a proven track record, innovative features, and a rewarding system, Scorpion Casino aims to be more than just a gaming platform as it mixes the excitement of gaming with crypto.

For those interested in learning more about the pre-sale, beta testing the casino, or entering its giveaways, visit the official Scorpion Casino project links.

Featured image via Unsplash.

On 11 April 2024, during a CNBC “Power Lunch” segment, Chris Mancini, associate portfolio manager at Gabelli Gold Fund, offered a detailed examination of the current dynamics in the gold market. Despite noticeable outflows from gold-backed ETFs, a situation that typically leads to lower prices, the price of gold has been moving higher. This intriguing phenomenon was the center of the discussion.

Mancini started by addressing the unusual situation where gold prices are rising despite the outflows from ETFs, which are typically significant players in the gold market, acting as primary buyers and sellers. He proposed that this divergence signals the presence of substantial physical buying by entities that aren’t captured in typical ETF flow metrics.

A notable point Mancini made was regarding the role of central banks in this new trend, particularly highlighting China’s consistent purchase of gold over the past year and a half. According to Mancini, this move could be motivated by the desire to diversify reserves away from U.S. dollars amid geopolitical tensions. Mancini believes that the Russia-Ukraine conflict and subsequent sanctions on Russia, including the freezing of some of its assets that are held in Western countries, have likely spurred other central banks to consider gold as a safer reserve asset that can’t be digitally seized or confiscated.

Mancini also shed light on the behavior of individual investors and high-net-worth individuals who are increasingly turning to physical gold. He says this trend is partly driven by uncertainties in other investment forms, like the faltering real estate market in China. He mentioned that people are looking for tangible assets that offer long-term security, a trend exemplified by significant sales of physical gold bars at major retailers like Costco. Per his comments, such purchases reflect a broader desire among individuals to hold wealth in forms perceived as stable and less vulnerable to market or political upheavals.

Discussing the implications for gold stocks, Mancini noted that shares in gold mining companies have been outperforming the price of gold itself. This indicates a bullish outlook among investors for the sector. He specifically mentioned Agnico Eagle Mines, a company with robust operations in stable regions like Northern Quebec, known for substantial gold production and strong free cash flow. Agnico Eagle represents a significant holding in the Gabelli Gold Fund.

As of 8:15 a.m. UTC on 12 April 2014, gold is trading at $2,396.89, up 1.04% on the day.

Source: TradingView

Featured Image via Pixabay

In a blow to the burgeoning world of decentralized finance (DeFi), Edgar Pavlovsky, the chief executive of Marginfi, a Solana-based lending platform, has abruptly resigned in a departure that triggered a wave of investment withdrawals and saw the platform total value locked (TVL) drop by 25%.

Marginfi confirmed Pavlovsky’s resignation over disagreements with the company’s practices, which has shaken confidence in the platform. The outflow of funds has pushed Marginfi’s TVL below $600 million, a stark illustration of the user exodus.

It is with mixed emotions that we confirm @edgarpavlovsky’s resignation from @mrgngroup, contributing to marginfi.We want to assure the community that the core contributors, the company, and our investors are actively engaged to ensure a smooth transition.As of this…

— marginfi ◼️ (@marginfi) April 10, 2024

Further complicating matters, a public spat with SolBlaze, a Solana staking pool, regarding governance token handling, as reported on Yahoo Finance. This discord has created an opening for competitor Solend, which has been aggressively courting Marginfi users with airdrop incentives to migrate their funds.

Solend will airdrop to users who withdraw from marginfi and deposit into Solend.

— Solend (@solendprotocol) April 10, 2024

Adding to Marginfi’s woes, the Solana network itself is experiencing growing pains. A recent surge in bot activity has choked the network, leading to transaction failures and slow processing times.

This congestion is further compounded by a recent explosion in memecoin-related transactions, creating extreme demand for limited space on Solana’s blockchains, effectively blocking access for many regular users.

The first quarter this year saw a record number of new tokens launched on Solana’s decentralized exchanges, with memecoins leading the charge as memecoin traders flocked to the network over its low transaction fees.

This memecoin activity has seen investors make and lose fortunes in small amounts of time. In one case, a SOL trader lost a staggering 721 SOL, equivalent to roughly $138,000 at, within a mere 35 minutes of PUNDU’s trading debut after withdrawing 1,535 SOL from leading cryptocurrency exchange Binance before the cryptocurrency started trading.

Featured image via Unsplash.

The total amount of XRP locked onto the XRP Ledger’s recently launched automated market maker (AMM) platform has recently surged from around 330,000 XRP tokens to over 715,000 XRP, worth over $400,000, at a time in which the AMM platform is set to get key bug fix.

According to data from XRP Ledger explorer XRPScan, the total amount of XRP locked onto the AMM surged recently along with the number of liquidity pools on the platform, which rose from around 193 to 208.

Source: XRPScan

Notably, the rise came as the XRP Ledger rolled out a a critical update to its recently launched AMM engine. The update, dubbed “fixAMMOverflowOffer,” addresses a technical glitch that hindered the AMM’s ability to handle large trades on decentralized exchanges (DEXes) built on XRP Ledger.

The AMM amendment, introduced last month, was a significant step for XRP Ledger, allowing for a more automated system of exchanging digital assets and earn a yield by locking up assets in liquidity pools. However, a flaw in the initial implementation prevented the AMM from functioning properly with sizable swap requests.

Further amendments, including “fixDisallowIncomingV1” and “fixNFTokenReserve,” are also in the pipeline, suggesting continued refinement of the XRP Ledger ecosystem.

Liquidity pools, it’s worth noting, are used to settle trades, with the prices of tokens within them being determined through the use ofblockchain oracles.

Those who provide liquidity to the pools will receive revenue every time a trade is conducted using that pool, but the revenue comes with the risk of impermanent loss. Impermanent loss occurs when price fluctuations alter the ratio of the tokens within the pool, meaning token providers could be better off if they simply held the tokens in their wallets.

The loss is considered to be impermanent because the ratio of tokens can be restored, in which case the token provider would be gaining the fees collected over time.

The rise in locked XRP also comes shortly after Ripple, a a leading provider of enterprise blockchain and crypto solutions, announced its plans to launch a stablecoin pegged 1:1 to the US dollar (USD). The stablecoin would be fully bakced by a reserve of US dollar deposits, short-term US government treasuries, and other cash equivalentes.

As CryptoGlobee reported, the firm expects the stablecoin market to exceed $2.8 trillion by 2028, and its own stablecoin will be launched both on the XRP Ledger and on Ethereum.

Featured image via Unsplash.