A prominent cryptocurrency analyst has reaffirmed his optimistic outlook on Ondo Finance (ONDO), a digital asset with a $1.6 billion market capitalization that has seen its value surge by over 1,400% since the start of the year.

In a post shared on the microblogging platform X (formerly known as Twitter) with their over 217,000 followers, pseudonymous analyst Altcoin Sherpa, updated his analysis of ONDO, a utility token associated with a project that aims to tokenize real-world assets and characterized the token as one of “the strongest coins out there,” citing its recent technical performance.

$ONDO: was surprised to see this level hold, was hoping to see a bit lower for this one. Still 1 of the strongest coins out there. pic.twitter.com/3EuIR9cFON

— Altcoin Sherpa (@AltcoinSherpa) June 12, 2024

According to the analyst’s chart, ONDO appears to have rebounded from a crucial support level, potentially signaling the continuation of its uptrend. This support level aligns with the 0.382 Fibonacci retracement level, a technical indicator derived from the Fibonacci sequence that can identify potential areas of price support or resistance.

Furthermore, Altcoin Sherpa’s chart suggests that ONDO has remained above its 200-period exponential moving average (EMA) on the four-hour chart for more than three weeks. In technical analysis, the EMA is used to gauge an asset’s price trend, and staying above a 200-day EMA is often seen as a bullish indicator.

ONDO is at the time of writing trading at around $1.2 per token after falling roughly 11% over the past week, while still being up more than 60% over the past month, according to market data.

Featured image via Pixabay.

Major Wall Street firm Bernstein has revealed it believes the price of the flagship cryptocurrency Bitcoin ($BTC ) could reach $1 million by 2033 and top the $200,000 mark by the end of next year.

In a recent report initiating the coverage of Nasdaq-listed business intelligence firm MicroStrategy, the largest corporate holder of the flagship cryptocurrency with 214,400 BTC worth over $14 billion on its balance sheet, Bernstein revised its BTC price target from $150,000 to $200,000 at the end of 2025.

The revision comes over the unprecedented demand seen for spot Bitcoin exchange-traded funds (ETFs), which have seen BlackRock’s iShares Bitcoin Trust (IBIT) amass over $20 billion in total assets to become the world’s largest Bitcoin fund by the end of May.

In a note to clients, Bernstein analysts wrote that they believe that spot Bitcoin ETFs were “the watershed moment for crypto that brought in structural demand from traditional pools of capital,” and added:

Around $15 billion of net new flows have been brought in by the ETFs combined. We expect Bitcoin ETFs to be equivalent to ~7% of bitcoin in circulation by 2025 and ~15% of bitcoin supply by 2033.

The Bitcoin halving event in April of this year was another factor behind the analysts’ price prediction, as new BTC supply entering the market was halved then, meaning growing demand should have a stronger effect. On top of that, the analysts wrote the halving saw “natural bitcoin sell-pressure from miners” get cut in half,” while “ new catalysts for bitcoin demand arise, leading to exponential price moves.”

The analysts observed that in previous cycles, Bitcoin surged to roughly five times its estimated marginal cost of production before experiencing a significant decline. For instance, in 2017, the price reached a high of approximately five times the marginal cost of production, followed by a drop to 0.8 times that cost in 2018. A similar pattern emerged in 2021, with a peak at around 2.3 times the marginal cost, followed by a decline to 0.7 times in 2022, which the report suggests weeded out less efficient miners according to The Block.

Based on this historical analysis, Bernstein predicts a rally for Bitcoin in the coming years to 1.5 times its marginal cost of production, which implies a $200,000 price tag by mid 2025.

Beyond the initial upswing, Bernstein’s analysts offer a more conservative long-term outlook, with their estimates suggesting Bitcoin’s price could reach $500,000 by the end of 2029 and a further climb to $1 million by 2033.

Bitcoin is at the time of writing trading at $67,200 after losing over 5% of its value amid a sell-off over the past week. The cryptocurrency rose 167% in the last 12-month period.

Featured image via Pexels.

The price of the meme-inspired cryptocurrency Dogecoin ($DOGE ) has plunged by more than 15.8% over the last week amid a wider cryptocurrency market correction that saw the price of the flagship cryptocurrency Bitcoin drop to $65,000. DOGE’s price, according to one analyst, is now at a “generational bottom.”

According to Johnny Brah, a crypto analyst writing on TradingView, there’s historical significance on this pattern, as DOGE has responded favorably to similar formations in the past.

Drawing on past bull runs, Brah highlights a reset in the Stochastic Relative Strength Index (RSI) for Dogecoin, a technical indicator developed to take advantage of the Stochastic oscillator and the Relative Strength Index. This reset is particularly interesting because the previous instance marked a bottom that was followed by a parabolic price surge.

Source: jhonnybrah on TradingView

For context, the last time this occurred was in 2021 and led to a rally that saw the price of the meme-inspired cryptocurrency DOGE skyrocketed from around $0.003 to an all-time high of $0.7 in a mere five months.

DOGE has since fallen and struggled to recover, failing to breach the $0.17 mark over the last few weeks while the wider cryptocurrency market remains range-bound after Bitcoin failed to breach its all-time high set earlier this year.

Should the analyst’s scenario unfold, he anticipates DOGE not only clearing $1 but potentially exceeding $10 and even reaching the $20 mark. The most optimistic prediction places the price at $24, representing a staggering 16,500% increase from current levels.

As reported Altcoin Sherpa, a well-known crypto analyst, recently shared a detailed post on the social media platform X (formerly known as Twitter), predicting a significant upward movement for Dogecoin.

He suggested that DOGE reaching $0.40 is one of the safest trades in the current market cycle, providing a compelling analysis of the factors supporting this forecast.

Featured image via Unsplash.

Keith Gill, widely known by his online alias “Roaring Kitty,” has significantly increased his stake in GameStop. On Thursday, Gill shared a screenshot of his E-Trade portfolio on Reddit’s Superstonk forum, revealing that he now holds over 9 million shares of GameStop and more than $6 million in cash. This marks a substantial increase from his initial 5 million shares disclosed at the beginning of June, alongside 120,000 call options on GameStop.

Call options provide the right, but not the obligation, to purchase shares at a predetermined price before a specific expiration date. It remains unclear how Gill maneuvered to his current position. He might have sold all 120,000 call options and used the funds to acquire more shares or sold a portion and exercised the rest early.

As CNBC reported, there was a significant uptick in trading volume on Wednesday afternoon for GameStop call options with a $20 strike price and a June 21 expiration date, identical to those held by Gill. This activity, coupled with a decline in GameStop’s share and call option prices, led to speculation that Gill had begun liquidating his options.

Exercising all his call options would have required approximately $240 million to buy 12 million shares at $20 each, far exceeding the amount shown in his E-Trade account. Despite the swirling speculation, Gill has not commented on the situation.

As of Thursday evening, the total value of Gill’s portfolio, including cash, was over $268 million, up from $210 million at the beginning of the month. GameStop’s shares saw a surge of more than 14% on Thursday.

Adding intrigue to Gill’s strategy, a report from Fortune published earlier today speculates that he might have broader ambitions beyond merely profiting from his trades. The article suggests that Gill could be positioning himself to exert influence over GameStop’s transformation by seeking a seat on the company’s board. This speculation arises as Gill’s recent update on Reddit disclosed that he has made $58 million since the start of the month, reflecting his significant financial gain and potential interest in a more active role within the company.

Meanwhile, GameStop’s annual shareholder meeting faced significant technical issues and was postponed. As CNBC explained, the meeting, which was scheduled to start at 11 a.m. ET on Thursday and to be hosted on ComputerShare, was disrupted due to server crashes caused by overwhelming interest. Many attempting to access the event received error messages, a problem confirmed by posts on social media and CNBC’s attempts to join the stream.

The meeting was briefly brought to order but was immediately adjourned due to these technical difficulties, with plans to reconvene at 12:30 p.m. ET on Monday. GameStop and ComputerShare representatives confirmed that the servers were overwhelmed by the high volume of traffic and were unprepared for such a surge.

Additionally, GameStop announced earlier in the week that it had raised over $2 billion through a recent equity sale, capitalizing on the revived interest in meme stocks. The company plans to use these funds for general corporate purposes, potentially including acquisitions and investments.

Currently (as of 11:05 a.m. ET on Friday), GameStop shares are trading at $27.90, down 4.19% on the day.

Source: Google Finance

Featured Image via YouTube (Roaring Kitty’s Channel)

The second-largest cryptocurrency by market capitalization Ethereum ($ETH ) has seen demand for it skyrocket to its second-highest level on record, as permanent holders accumulated 298,000 ETH worth $1.04 billion, in a single day.

That’s according to CryptoQuant’s head of research Julio Moreno, who noted on the microblogging platform X (formerly known as Twitter) that it came close to the record daily buying, which occurred last September and saw permanent ETH holders accumulate 317,000 tokens.

Ethereum demand has spiked.Buying by permanent holders was the second highest on record yesterday: 298K ETH.The record daily buying was last September 11: 317K ETH. pic.twitter.com/0qMVpNU8ht

— Julio Moreno (@jjcmoreno) June 13, 2024

The near-record buying spree came amid a wider cryptocurrency market correction and after Ethereum’s price plunged to a low below the $3,500 mark. CryptoGlobe has reported there has been ongoing Ethereum accumulating, with a “giant” ETH whale recently restarting their accumulation.

According to blockchain analytics firm SpotOnChain, this “giant whale” has recently withdrawn 7,000 ETH worth over $26 million from leading cryptocurrency exchange Binance at around $3,800 per coin, after withdrawing most of their ETH during last year’s bear market, and depositing it back onto the centralized exchange once the price rose.

The Ethereum buying activity exploded after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said in a budget hearing final approvals for spot Ethereum exchange-traded funds (ETFs) could be granted by summer’s end.

Speaking to a subcommittee of the Senate Appropriations Committee in a hearing on the regulator’s budget, Gensler said the approval process was “working smoothly” after the initial go-ahead given to a group of these ETFs, referring to the SEC clearing the path for these funds.

The SEC’s approval was met with optimism in the cryptocurrency space, with the price of ETH surging around 20% in a day after the decision was revealed, while the cryptocurrency market as a whole added over $200 billion to its market capitalization.

The approval marks a significant shift for the SEC, which has historically been cautious about cryptocurrency and had been investigating whether to deem the second-largest cryptocurrency a commodity or a security.

While the exchange applications were approved, individual ETF issuers including VanEck, ARK Investments, and BlackRock still need the SEC to greenlight their registration statements before trading can begin.

Ethereum Price Analysis

Ethereum is currently trading just above the $3,500 mark, near its 50  moving average, and below its 200 moving average which currently sits at $3,600 on the monthly chart.

This suggest that the cryptocurrency is currently in a bearish trend after the 50-SMA crossed below its 200-SMA to form a “death cross,” widely interpreted as a bearish signal.

The cryptocurrency’s relative strength index (RSI) is currently in a neutral zone and appears to be moving upwards in what appears to be short-term bullish momentum.

Its Moving Average Convergence Divergence (MACD) is meanwhile indicating a potential bullish signal, although its histogram suggests weak momentum for it.

ETHUSD Chart via TradingView

Data suggests that Ethereum’s resistance levels are currently around $3,500 and $3,600 – the levels of its moving averages on the monthly chart – with an immediate support level near its recent lows of $3,200.

Featured image via Unsplash.

According to a report by Hannah Miao and Gunjan Banerji for The Wall Street Journal (WSJ), a unique group of traders, known as “degens,” has significantly impacted the stock and crypto markets in recent times. These traders, often amateur enthusiasts, embrace high-risk strategies that diverge from traditional investment methods. The term “degen” is a playful reference to “degenerate gamblers,” reflecting their bold and unconventional approach to trading.

The WSJ article says degends — predominantly composed of young men — are characterized by their daring bets and skepticism towards conventional investment wisdom. The degen culture thrives on online platforms, where traders share their adventures in buying obscure digital tokens, meme stocks, and speculative options. This movement is fueled by a desire for quick profits and a sense of belonging to a community driven by memes and jokes.

The WSJ report goes on to mention that one of the most notable examples of degen activity is the recent meme-stock mania, notably involving GameStop shares. Coordinated efforts by these internet traders can lead to dramatic asset price swings, with social media playing a pivotal role. In May, social media mentions of “degen” surged to over 370,000, a significant increase from the previous month, highlighting the growing influence of this trading style.

For many, degen trading offers a tantalizing promise of quick money. Daniel Moravec, a former professional poker player turned degen trader, believes that high-risk trades are more appealing than traditional lottery tickets. The pandemic accelerated the rise of day trading, with platforms like Robinhood simplifying the process and removing barriers like commissions and high investment thresholds.

Miao and Banerji also point out that degens are not deterred by the inherent risks. They trade a wide array of assets, from digital tokens with no real value to highly volatile options. Apparently, Robinhood’s introduction of 24-hour trading has further enabled degens to chase market momentum at all hours.

Keith Gill, known online as “Roaring Kitty” and “DeepFuckingValue,” is a financial analyst who gained prominence for his role in the GameStop stock surge in early 2021. By sharing his investment strategies and analyses on platforms like Reddit and YouTube, he played a key part in the “meme stock” movement, where retail investors significantly boosted the stock prices of companies like GameStop and AMC. His activities led to a congressional testimony and a portrayal in the 2023 film “Dumb Money”. His recent return to social media has reignited interest in GameStop and other meme stocks, causing notable market volatility.

The WSJ report notes that the degen phenomenon extends beyond stocks. Cryptocurrency trading volumes have reached record highs, with degens investing in meme coins created for online amusement. For example, Solana-powered memecoin Dogwifhat ($WIF) has seen a dramatic rise in value, exemplifying the speculative nature of degen trading.

Source: TradingView

Finally, the WSJ points out that despite the risks and criticisms, the degen movement continues to grow, driven by a sense of community and the pursuit of financial freedom. For many young investors, traditional financial strategies seem inadequate in the face of rising living costs and economic uncertainty. The degen ethos, while extremely risky, offers a glimmer of hope for those seeking to break free from financial constraints.

In a recent Forbes report, Sandy Carter discusses memecoins, a unique type of cryptocurrency that started as internet jokes. According to Carter, despite their humorous origins, meme coins like Dogecoin have shown substantial market performance, with top tokens yielding over 1,300% returns in 2024. Carter, COO of Unstoppable Domains, emphasizes the significance of utility and real-world applications for these coins. She says that, for example, Shiba Inu (SHIB) has partnered with Zama.ai to develop advanced encryption for financial technologies, setting new standards in both the crypto and traditional financial sectors.

Forbes attributes the success of meme coins partly to celebrity endorsements, such as Elon Musk’s support for Dogecoin. However, she points out that the true value of these coins lies in their real-world utility. She warns that not all meme coins have the same potential, and some should be viewed skeptically.

Carter highlights that for a meme coin to succeed, it must foster a large, engaged community. Floki, for instance, has evolved into a movement by supporting utility projects and NFTs, driving its market capitalization to over $2.5 billion. Forbes also notes that some robust meme coins are built on established blockchains, like Bonk on the Solana blockchain, benefiting from extensive ecosystem integrations.

Featured Image via Unsplash

Galaxy Digital (aka “Galaxy”), a leading crypto and blockchain-focused investment firm founded by Mike Novogratz, has recently released a comprehensive research paper — about the development of memes and their role in bockchain technology — authored by Zack Pokorny, a Research Analyst at the firm. This paper delves into the intriguing world of memecoins and their significant influence on the crypto economy.

Galaxy emphasizes that memecoins, despite their lack of technical innovation or blockchain scaling advancements, have become a pivotal element of the crypto market. Memecoins, Galaxy notes, are viral and relatable, leading to their proliferation and substantial value accumulation across the crypto landscape.

According to Galaxy, memes have been an integral part of human culture for centuries, serving as ideas, symbols, or behaviors transmitted within and between subcultures. The firm highlights that memes have historically played influential roles in societal changes, from cave paintings and Roman graffiti to newspaper comics.

Galaxy outlines the evolution of memes from ancient times to the digital age. The firm describes how early humans used charcoal and chisels to create primitive memes, which evolved through various mediums such as paints, ink, and paper. The paper claims that the modern internet meme, born in 1993, marked a paradigm shift, enabling individuals to share memes on a larger scale.

Galaxy posits that blockchains represent the next stage in the evolution of memes. The firm argues that blockchains offer a standardized, permanent, and uncensorable platform for memes, making them globally accessible and further enhancing their distribution.

Galaxy describes memecoins as tokenized depictions of internet memes or humorous events, native to blockchains and tradable on decentralized exchanges (DEXes). The firm explains that memecoins, such as Dogecoin, often have characters or visuals associated with them, similar to traditional internet memes.

Galaxy notes the ease with which memecoins can now be launched, thanks to services that automate token creation and liquidity pool establishment. This ease of launch, it says, has led to a surge in the generation and speculation of memecoins on an unprecedented scale.

Galaxy acknowledges that most memecoins lack real utility, often serving as speculative assets. The firm highlights that the volatility of memecoins attracts users, driving the adoption of blockchains as a canvas for cultural and emotional expression.

Galaxy provides an in-depth analysis of the on-chain activity and value driven by memecoins. The firm reports that Solana is the primary blockchain for memecoins in 2024, with a significant increase in token launches and swap volume.

Galaxy explores the secondary activities generated by memecoins, such as the integration of $BONK into the Solana ecosystem. The firm suggests that memecoins can serve as liquidity for new application plumbing, potentially leading to the development of durable blockchain adoption in the future.

Great report by @glxyresearch @ZackPokorny_ on the growing popularity of memecoins and the role of blockchains: https://t.co/1NxgBlJs2m

— Mike Novogratz (@novogratz) June 12, 2024

In a recent Forbes report, Sandy Carter, COO of Unstoppable Domains, highlights the unique position of meme coins in the cryptocurrency market. Initially gaining attention through internet jokes, meme coins like Dogecoin have shown remarkable resilience and significant market performance, with top tokens yielding returns of over 1,300% in 2024.

Forbes attributes meme coin success to speculation and celebrity endorsements, like Elon Musk’s support for Dogecoin. However, the real value lies in their utility. Shiba Inu (SHIB), for instance, partnered with Zama.ai to enhance identity, security, and risk management through fully homomorphic encryption, setting new standards in both the crypto and traditional financial industries.

Celebrity influence also impacts the market, as seen with Iggy Azalea’s Mother Iggy coin, which surged 1,200% in one week. However, celebrity backing alone isn’t enough, evidenced by Caitlyn Jenner’s coin, which plummeted in value.

Carter emphasizes the importance of community engagement for meme coin success, using Floki as an example. Floki has evolved into “The People’s Cryptocurrency,” supporting utility projects, NFTs, and integrating with the Valhalla Metaverse and an NFT marketplace, boosting its market cap to over $2.5 billion.

Forbes notes that meme coins built on established blockchains, like Bonk on Solana, are robust and suitable for decentralized finance applications. Investors should thoroughly research a meme coin’s utility, community engagement, and development team, as long-term value depends on solving real-world problems and offering useful functions beyond existing cryptocurrencies.

Featured Image via Pixabay

A recent JPMorgan report has suggested that the cryptocurrency space has seen net inflows of $12 billion so far this year, and notes that if flows keep growing as they have so far the figure could reach the $26 billion mark by year end.

However the true picture may be less rosy than it appears as while actual inflows have increased, some of these funds may have simply rotated from cryptocurrency wallets onto the newly launched spot Bitcoin exchange-traded funds (ETFs), which have attracted $16 billion of net inflows so far.

The report, led by analyst Nikolaos Panigirtzoglou, highlights a decline in Bitcoin reserves across spot cryptocurrency exchanges since the launch of spot Bitcoin ETFs, which is now estimated to be at 220,000 BTC or $13 billion, as CoinDesk reported. The analysts wrote:

This implies that the majority of the $16 billion inflow into spot bitcoin ETFs since launch likely reflects a rotation from existing digital wallets on exchanges.

Taking this rotation into account, JPMorgan revises the net inflow for digital assets down to $12 billion. While this figure remains stronger than last year’s, it falls short of the highs seen during the 2021-2022 crypto bull run.

As CryptoGlobe reported, institutional investors have been showing significant interest in market-neutral Bitcoin strategies, with a record high in short positions in BTC futures contracts reflecting that trend.

That strategy, known as the basis trade, sees investors seek a profit off of the price discrepancies seen in spot and futures markets as by simultaneously buying Bitcoin in the spot market and selling futures contracts at a premium traders can profit while holding a market-neutral position.

The launch of spot Bitcoin exchange-traded funds in the United States fueled the popularity of the basis trade, allowing investors to gain exposure to Bitcoin without directly holding it, while the price premium on futures contracts creates an arbitrage opportunity.

Investors can buy the ETF and simultaneously sell futures, profiting from the difference as the futures price adjusts. This cash-and-carry strategy has become easier to execute with the advent of ETFs, which are traded through regulated brokers.

Featured image via Unsplash.

As the price of the flagship cryptocurrency Bitcoin ($BTC ) drops nearly 6% in a week to trade below the $67,000 mark, data shows that its supply on cryptocurrency exchanges is now at its lowest level since December 2021.

According to data shared by on-chain analytics firm Santiment, there are now around 942,000 BTC on cryptocurrency exchanges, the lowest level since December 2021 when the price of the cryptocurrency was at around $50,000 and in a month in which it plunged to a $40,000 low amid a bear market trend that saw BTC ultimately drop to just over $!6,000 after FTX collapsed.

Per Santiment, historical data shows there “is less drop-off risk for all of crypto while BTC’s available supply to be sold is limited.”

😎 Bitcoin's supply on exchanges has now dropped to its lowest level since December, 2021 (~942K coins). Meanwhile, Ethereum and Tether are moving back on. Historically, there is less drop-off risk for all of crypto while $BTC 's available supply to be sold is limited. pic.twitter.com/vGv0q6esxx

— Santiment (@santimentfeed) June 13, 2024

Nevertheless, data shows that Ethereum on exchanges has grown to 17.98 million ETH, a figure that still stands far behind its all-time high of nearly 30 million ETH back in May 2020. Tether’s USDt on exchanges has also risen rapidly to 16 billion tokens, near its all-time high of 16.95 billion.

A larger stablecoin supply on exchanges often means cryptocurrency investors are getting ready to buy additional tokens with those stablecoins, which could be interpreted as a bullish sign given the lower supply of BTC on exchanges.

Notably, data shows there’s growing appetite for a market-neutral strategy in the cryptocurrency market, with experts noting record-high short positions on BTC futures are a reflection of that.

That strategy, known as the basis trade, sees investors seek a profit off of the price discrepancies seen in spot and futures markets as by simultaneously buying Bitcoin in the spot market and selling futures contracts at a premium traders can profit while holding a market-neutral position.

The launch of spot Bitcoin exchange-traded funds in the United States fueled the popularity of the basis trade, allowing investors to gain exposure to Bitcoin without directly holding it, while the price premium on futures contracts creates an arbitrage opportunity.

Investors can buy the ETF and simultaneously sell futures, profiting from the difference as the futures price adjusts. This cash-and-carry strategy has become easier to execute with the advent of ETFs, which are traded through regulated brokers.

Featured image via Unsplash.

The price of Curve DAO token ($CRV ), a key player in the decentralized finance (DeFi) space, plummeted by 20% after leveraged positions said to be held by the protocol’s founder, Michael Egorov, started being liquidated, leading to significant selling pressure.

According to blockchain analytics firm Arkham Intlligence, Egoov’s addresses have borrowed $95.7 million worth of stablecoins – most of thm in crvUSD – against $141 million worth of Curve DAO token across five accounts on five different protocols.

Per the firm, Egorov was paying $60 million annualized to keep the position open, and the $140 million CRV collateral was nearing liquidation.

$140M CRV nearing LiquidationCurve founder Michael Egorov is currently borrowing $95.7M in stablecoins (mostly crvUSD) against $141M in CRV, across 5 accounts on 5 protocols.Based on current rates, Egorov is paying $60M annualized in order to keep his positions open on… pic.twitter.com/ipTlWLZOAx

— Arkham (@ArkhamIntel) June 12, 2024

A Debank profile monitoring Egorov’s wallet, as CoinDesk reported, reveals that these loans originated from Inverse, UwU Lend, Fraxlend, and Curve’s own LlamaLend platform, and that the portfolio’s value has plunged by around 58% over the last 24-hour period to around $16.3 million.

On-chain transactions suggest Egorov took steps to manage the situation. Early Thursday, he reportedly repaid portions of the loans on Inverse and LlamaLend using FRAX, DOLA, and CRV tokens. Additionally, data shows there were swaps between CRV and USDT from some associated addresses.

Source: Debank

The liquidations of Egorov’s large position affected other decentralized finance protocols, as CRV is used as a trading pair and stabilizing factor in various trading pools within the ecosystem.

This incident marks the second time Egorov’s borrowing activity has impacted the crypto market. In 2023, an exploit targeting several Curve lending pools triggered a sudden dump in CRV prices, jeopardizing over $100 million in potential liquidations.

CRV Price Analysis

Technical analysis of CRV’s price on the CRV/USDT trading pair shows that the cryptocurrency’s price is undergoing a general bearish trend as prices have been steadily declining.

The large decline that resulted from the liquidations of Egorov’s position led to a quick short rebound, suggesting there’s buying interest at lower prices. The price chart seems to suggest there’s resistance around the $0.45 level as CRV’s price struggled to break above it before collapsing, and support around $0.3 as it quickly bounced back from tht level after its sharp drop.

CRVUSDT Chart via TradingView

Trading volume surge during the crash, but maintained higher levels during the recovery, suggesting strong buying interest at those levels. CRV is currently trading at $0.297

Featured image via Unsplash.

On 13 June 2024, ARK Invest CEO and CIO Cathie Wood joined CNBC’s “Squawk Box” to discuss the future of Tesla Inc. (NASDAQ: TSLA) and her firm’s five-year price target for the stock.

Cathie Wood began by addressing the recent Tesla shareholder vote, which included a critical decision on Elon Musk’s pay package and moving Tesla’s legal home from Delaware to Texas. Wood expressed her surprise and pleasure at the large institutional shareholders supporting Musk. This vote, she noted, was initially driven by ESG considerations, prompting these institutional players to reconsider their voting strategies. Despite anticipating some legal battles ahead, Wood saw the vote as a healthy discussion for the company’s future.

Wood elaborated on ARK Invest’s new price target for Tesla, set at $2600 per share by 2029. This ambitious target hinges largely on Tesla’s autonomous taxi platform. Wood envisions this platform operating on a SaaS model, generating recurring revenue from every mile driven by these autonomous vehicles. She highlighted the potential for significantly higher margins compared to traditional car sales, with gross margins in the SaaS sector reaching around 80%, compared to the current 16% for automotive.

Wood discussed the potential scale and impact of autonomous mobility, describing it as the largest AI project on Earth. She emphasized the rapid advancements in Tesla’s full self-driving (FSD) technology, which has dramatically improved safety metrics. According to ARK’s research, Tesla vehicles equipped with FSD are significantly safer, with fewer accidents per mile compared to average cars.

The conversation also touched on regulatory challenges. While Elon Musk aims to have the autonomous taxi network operational within a couple of years, regulatory approval remains a crucial hurdle. However, Wood pointed out a shift in public officials’ attitudes. She referenced recent comments by Pete Buttigieg, the U.S. Secretary of Transportation, who seems open to the idea of autonomous vehicles, acknowledging that removing human drivers could drastically improve road safety.

Tesla CEO Elon Musk announced late Wednesday that Tesla shareholders are expected to approve his contentious $56 billion compensation plan and a proposal to relocate the electric vehicle company’s incorporation to Texas.

Both Tesla shareholder resolutions are currently passing by wide margins!♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo

— Elon Musk (@elonmusk) June 13, 2024

This news seems to have help Tesla stock, which is up nearly 4% today (as of 10:34 a.m. ET).

Source: Gogole Finance

ARK Invest analysts released a report yesterday projecting an expected value of $2,600 per Tesla share by 2029, based on their updated open-source Tesla model. The analysis includes a range of potential outcomes, with a bullish scenario estimating a share price of $3,100 and a bearish scenario predicting $2,000 per share. The model uses distributions for 45 independent inputs to simulate various outcomes for the company’s future performance and stock valuation.

Source: ARK Invest

The report also suggests that by 2029, nearly 90% of Tesla’s enterprise value and earnings will come from the robotaxi business. In contrast, electric vehicles are anticipated to account for about a quarter of total sales and roughly 10% of earnings, as ARK believes the robotaxi sector will yield significantly higher margins.

The meme-inspired cryptocurrency Shiba Inu ($SHIB ) could be facing significant selling pressure as massive whales have recently deposited over 4 trillion tokens onto Nasdaq-listed cryptocurrency exchange Coinbase in a potential sell-off sign.

The price of SHIB is down by more than 16% over the past week after a sell-off saw it drop from around $0.000025 to 0.000021 at the time of writing. The cryptocurrency’s price dropped even amid a wider crypto market rise fueled by better-than-expected inflation data in the US.

Notably, data shared by on-chain cryptocurrency analyst OnchainDataNerd on the microblogging platform X (formerly Twitter) shows that 10 different wallets deposited 4.29 trillion SHIB tokens worth nearly $100 million on Coinbase, after accumulating in two separate periods, September 2021 and March 2024, with an average purchase price of $0.000013.

With Shiba Inu currently trading well above $0.000021, a complete sell-off could generate a substantial profit of over $41 million for the whales.

5 hour ago, 10 wallets deposited 4.29T $SHIB (~$97.33M) to #Coinbase10 above wallets have the same movements:✅Those $SHIB were accumulated in 2 different times: Sept 2021 and March 2024✅The avg entry is $0.00001309 👉 the profit will be $41.22M if sold all at current price pic.twitter.com/CYsMhYkgfc

— The Data Nerd (@OnchainDataNerd) June 11, 2024

These potential whale sell-offs come shortly after a massive cryptocurrency investor started accumulating SHIB, pouring millions onto the meme-inspired cryptocurrency to accumulate billions of tokens.

That’s according to on-chain analysis service Lookonchain, which noted that a successful SHIB investor who has in the past made more than $120 million worth the meme-inspired cryptocurrency has now spent 4,849 ETH worth $18.44 million to buy 715.9 billion SHIB.

The trader, according to the service, has in the past spent $400,000 to buy 5.5 trillion SHIB, which were then subsequently sold for around $121 million over two peaks.

Beyond the whale’s actions, the Shiba Inu ecosystem itself has witnessed significant developments that likely fueled the token’s recent price rise. Shibarium, the Layer-2 scaling solution, has seen notable progress this year, enhancing the network’s capacity to handle a higher volume of transactions efficiently.

Furthermore, the Shibdentity initiative promises a new era of digital identity, while the recently launched Sheboshis NFT collection boasting 20,000 digital avatars on the Ethereum blockchain adds another layer to the Shiba Inu universe.

Further bolstering the ecosystem’s prospects, Shiba Inu secured a $12 million funding round from heavyweights like Polygon Ventures, Mechanism Capital, and Animoca Brands, earmarked for the development of a privacy-focused Layer-3 blockchain. The integration of the Shibaswap decentralized exchange with Shibarium signifies another step towards a more robust and comprehensive ecosystem.

As reported, these developments help SHIB briefly overtake Cardano to become a top 10 cryptocurrency by market capitalization.

Featured image via Unsplash

The Litecoin blockchain has witnessed a surge in activity this month, with the number of unique addresses interacting with the network more than doubling from 345,000 in May to over 700,000.

According to data from on-chain analytics firm Santiment this key metric, comes as the network’s Relative Strength Index (RSI) enters its best “Opportunity Zone” region since September. Unique addresses interacting with a network suggests growing traffic on the network and stronger user interest.

⚡️ Litecoin has averaged ~704K unique addresses interacting on the network over the past week after averaging ~345K addresses throughout May. The network more than doubling in active addresses, along with its RSI well into an opportunity zone, may be foreshadowing an $LTC bounce. pic.twitter.com/7AJfY1tTSJ

— Santiment (@santimentfeed) June 11, 2024

The official Litecoin account on the microblogging platform X (formerly known as Twitter) also highlighted this recent surge in network activity, sharing a chart depicting the number of active addresses from market intelligence platform IntoTheBlock, and saying Litecoin “is the most active blockchain in the world.”

Interestingly, Litecoin’s active addresses have surpassed even those on Bitcoin and Ethereum, the top two cryptocurrencies by market capitalization.

Litecoin is the most active blockchain in the world!!! Surpassing #Bitcoin $BTC and #Ethereum $ETH in active addresses. More people using Litecoin than any other crypto right now! 🤯 What's in your wallet? #Litecoin ⚡ $LTC pic.twitter.com/3wxmjSRU1m

— Litecoin (@litecoin) June 10, 2024

Litecoin has historically ranked highly in usage metrics due to its network’s ability to facilitate cheap and fast transactions and if often referred to as the silver to Bitcoin’s gold, serving as a network that uses technology that is then implemented on the main bitcoin blockchain.

Litecoin implement Segregated Witness (SegWit) before the Bitcoin blockchain, for example, and saw its latest halving occur back in August 2023. Despite its technology and recent activity surge, LTC’s price has been somewhat stagnant.

Over the last year LTC moved up just 1.2% to now trade at $78.4, while the flagship cryptocurrency Bitcoin saw its price move up over 167% over the same period, now trading near the $70,000 mark.

Featured image via Unsplash.

Robert Kiyosaki is an American businessman and author, best known for his best-selling book “Rich Dad Poor Dad,” has recently suggested investing in Bitcoin ($BTC ) is the “easiest way to become a millionaire.”

In a post on the microblogging platform X (formerly known as Twitter), Kiyosaki told his over 2.5 million following on the platform that Bitcoin is the “easiest way to become a millionaire” as “making millions as an entrepreneur is hard.”

The American businessman added that to do so “you have to be really smart, dedicated, and lucky” while risking starting a business, while adding he saves Bitcoin “because Bitcoin does the hardwork for me.”

BITCOIN is the easiest way to become a millionaire. Making millions as an entrepreneur is hard. I know. You have to be really smart, dedicated, and lucky to become a millionaire starting your own business. I save Bitcoin because Bitcoin does the hardworkfor me. That is why I…

— Robert Kiyosaki (@theRealKiyosaki) June 11, 2024

Kiyosaki is a well-known Bitcoin bull who has back in 2022 suggested that the Bitcoin price crash then was “great news,” as it allowed him to invest in the cryptocurrency at lower prices.

 Kiyosaki has bought bitcoin when it was trading at $6,000 and $9,000 according to his tweets, and believes that the “time to get richer is coming” as the price of BTC drops. In the past, he 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.”

The best-selling author has over the last few years been predicting a “giant stock market crash” is coming, while holding on to precious metals and the flagship cryptocurrency. In the past, he has said cryptoassets like BTC would be affected by the crash, with cash being “best for picking up bargains after crash.”

Earlier this year, in an interview with Kitco News Kiyosaki revealed that he owns 66 BTC and kept advocating for gold, silver, and the flagship cryptocurrency, noting he doesn’t like dollars or bonds, but instead only likes “the hard assets.”

Featured image via Unsplash.

Record-high short positions in Bitcoin futures contracts held by leveraged funds could be raising eyebrows, but experts have suggested this isn’t a sign of widespread pessimism among institutional investors, but rather a reflection of growing appetite for a market-neutral strategy.

That strategy, known as the basis trade, sees investors seek a profit off of the price discrepancies seen in spot and futures markets as by simultaneously buying Bitcoin in the spot market and selling futures contracts at a premium traders can profit while holding a market-neutral position.

According to Ravi Doshi, head of markets at prime broker FalconX, the basis trader’s popularity “can be observed through the short interest on CME BTC futures held by hedge funds,” as reported by Bloomberg, and added there are currently over $7.5 billion in net-short futures.

The launch of spot Bitcoin exchange-traded funds in the United States fueled the popularity of the basis trade, allowing investors to gain exposure to Bitcoin without directly holding it, while the price premium on futures contracts creates an arbitrage opportunity.

Investors can buy the ETF and simultaneously sell futures, profiting from the difference as the futures price adjusts. This cash-and-carry strategy has become easier to execute with the advent of ETFs, which are traded through regulated brokers.

However, analysts caution against mistaking the basis trade for the primary driver of investment flows into Bitcoin ETFs with Vetle Lunde, senior analyst at K33 Research, saying that  “organic directional demand is the key source behind the strong ETF flow”

Lunde pointed out that the basis, which represents the annualized premium on futures contracts, was significantly higher between late November and mid-March, hovering around 20%. Since then, it has settled between 11% and 16%, with a recent dip to around 6%.

As reported, major Bitcoin investors have recently opened massive long positions on the flagship cryptocurrency via popular cryptocurrency exchanges Bybit and HTX at around $69,000.

That’s according to Ki Young Ju, CEO of cryptocurrency analytics firm CryptoQuant, who pointed out that these massive long positions are interesting in light of similar activity seen back in August 2023, when Bitcoin whales opened large long positions on BTC ahead of a parabolic price rise that saw the cryptocurrency move from around $25,000 to a new all-time high above $73,500.

Featured image via Unsplash.

Citron Research, a prominent short seller known for its bearish position on meme stock GameStop (GME), has revealed it exited its short position on the company’s shares as it noted it respects the “market’s irrationality.”

In an announcement on the microblogging platform X (formerly known as Twitter), the short seller is no longer shorting GME stock not because it believes the company will manage to turn around its current situation, but rather because “with $5 billion in the bank, they have enough runway to appease their cult like shareholders.”

The announcement comes on the heels of a significant rally for GME, whose price surged above $30 a share on June 11, following a 22.8% intraday jump, before endirong a slight correction to now trade just below that mark. Year-to-date, GME’s shares are up more than 72%.

While analysts remain bearish on GameStop’s long-term prospects, with Wedbush analyst Michael Pachter setting a $11 price target, Citron opted to exit the short position rather than risk further losses citing the “market’s irrationality” for its decision.

Citron is no longer short $GME. It's not because we believe in a turnaround for the company fundamentals will ever happen, but with $5 billion in the bank, they have enough runway to appease their cult like shareholders. Despite Wedbush setting an $11 target today, we respect the…

— Citron Research (@CitronResearch) June 12, 2024

The firm also suggested there’s irrationality in the cryptocurrency market, pointing out the meme-inspired cryptocurrency Dogecoin ($DOGE) “remains a $20 billion entity.”

Citron also expressed concerns about the potential dampening effect of GameStop’s recent stock offering. The company raised $2.14 billion by selling 75 million shares, a move fueled by the renewed hype surrounding the stock after a live stream by Keith Gill, the retail investor known online as “Roaring Kitty,” which Citron called “an insult to capital markets.”

Gill reportedly holds a significant position in GME stock and call options, currently valued at over $180 million, and could become a billionaire if the price of GME tops the $67 mark.

It’s worth noting that the recent meme stock trading frenzy started after RoaringKitty returned to social media from a three-year hiatus that ended after his testimony in Congress.

AMC Entertainment (NYSE; AMC), a movie theater chain, also experienced a significant uplift, as did various lesser-known cryptocurrencies associated with Roaring Kitty and GameStop.

Robinhood CEO Vlad Tenev has assured investors that the trading platform is well-prepared for the anticipated GameStop frenzy, emphasizing significant infrastructure improvements made to handle such market volatility while speaking on Fox Business.

Notably the trading platform Gill has been using, E*Trade, is reportedly considering banning the trader over potential stock manipulation according to the Wall Street Journal.

Featured image via Pixabay.

In a significant financial endorsement, SNZ Capital, Summer Ventures, and EVG Ventures have invested a 7 figure investment in Holdstation’s Phase 2. This funding will accelerate the development of smart AI wallets, integrating AI with blockchain for an improved user experience. The strategic infusion of capital will propel the development of Holdstation’s smart AI wallets, merging advanced artificial intelligence with simplified blockchain interactions to redefine user portfolio management.

As a pioneer in Account Abstraction adoption, Holdstation has seen significant user growth, cementing its position as the top Account Abstraction wallet and perpetual DEX on zkSync. This strategic move enhances transaction simplicity and security, establishing Holdstation as a frontrunner in blockchain technology.

Holdstation’s commitment to enhancing the Web3 ecosystem through innovative technology aligns seamlessly with the strategic visions of SNZ Capital, Summer Ventures, and EVG Ventures. This partnership leverages their combined expertise to further grow the Web3 space, particularly within AI, perpetual DEX, and wallet segments.

Focused on developing AI for advanced portfolio management and streamlining the digital wallet experience, Holdstation is poised to lead pivotal innovations that will transform user interactions in Web3. SNZ Capital, Summer Ventures, and EVG Ventures bring valuable experience in financial and marketing strategy, making them ideal partners to drive Holdstation’s initiatives.

The investment from SNZ Capital, Summer Ventures, and EVG Ventures strengthens Holdstation’s position as a premier Web3 wallet that integrates artificial intelligence and trading. This is set to accelerate the broad adoption of Web3 wallets with trading features across all blockchains, smoothing the transition from Web2 to Web3.

“Partnering with SNZ Capital, Summer Ventures, and EVG Ventures feels like a natural step forward. They’ve been Ethereum enthusiasts since the early days, and their deep roots in the global community give us an incredible advantage. This partnership is not only about funding but also about starting a journey together that opens up significant opportunities and resources, helping us grow and innovate faster than ever. We’re all in for an exciting ride,” said Trung Banh, Co-Founder and CPO of Holdstation.

“By backing Holdstation’s Phase 2, we are not just investing in technology; we are investing in a vision that places user empowerment at the forefront of financial services,” added Gavin, Investment Partner of SNZ Capital.

Together with SNZ Capital, Summer Ventures, and EVG Ventures, whose expertise in financial and marketing strategies is unmatched, Holdstation is well-equipped to lead transformative changes that enhance user accessibility and experience across the Web3 landscape.

About Holdstation

Holdstation is crafted to provide a simple yet powerful trading and asset management interface, merging Account Abstraction with the Holdstation Defutures DEX on the zkSync ecosystem. Alongside, it features the revolutionary Holdstation Wallet and zkStarter launchpad, making it a premier platform that converts complex blockchain functions into user-friendly formats inspired by Web2 applications, thus providing a frictionless trading experience.

Useful linksWebsite | Twitter | Discord | Telegram

As detailed by Sandy Carter in a recent report for Forbes, meme coins are a unique category of cryptocurrency that initially gained attention through internet jokes and memes. Despite their humorous origins, meme coins like Dogecoin have demonstrated remarkable staying power and significant market performance. According to Forbes, while Bitcoin’s meteoric rise has dominated headlines in 2024, meme coins have outshone other digital assets with returns exceeding 1,300% for the top tokens this year.

Sandy Carter is the Chief Operating Officer at Unstoppable Domains. She brings a wealth of experience from her previous roles at AWS and IBM, where she held influential positions. Sandy is deeply committed to advancing diversity and inclusion in technology, exemplified by her role as chairwoman on the board of the nonprofit organization Girls in Tech and her past involvement with the Diversity Committee at the World Economic Forum.

Carter is also a founding member of the Blockchain Friends Forever social movement, which supports women in the Web3 space. As an active participant in the cryptocurrency community, she holds and trades modest amounts of Ethereum (ETH) and Bitcoin (BTC). Her current focus and passion lie in exploring and promoting enterprise use cases for decentralized technologies.

Forbes attributes some of the success of meme coins to speculation and celebrity endorsements, such as Elon Musk’s well-known support for Dogecoin. However, Forbes emphasizes that the true value of meme coins lies in their real-world utility rather than their comedic appeal. Yet, not all meme coins hold the same potential, and some should be regarded with skepticism.

A prime example of a meme coin gaining serious traction is Shiba Inu (SHIB). Forbes highlights that Shiba Inu is not just a novelty; it has substantial real-world applications. According to Carter, recently, Shiba Inu partnered with Zama.ai to develop a platform featuring fully homomorphic encryption, which enhances identity, security, and risk management solutions within financial technologies. She says this partnership is setting new standards in both the cryptocurrency sector and the traditional financial industry.

“Shiba Inu is one of the largest memecoins by market capitalization, and recently announced a partnership with Zama.ai to develop a fully homomorphic encryption platform. This means that Shiba Inu will be able to create identity, security and risk management solutions that are embedded within payment and other financial technologies. This doesn’t just drive enhanced privacy and security in the memecoin or crypto sector, but is setting standards for the traditional financial industry as it converges with the crypto economy.”

Forbes also points out the impact of celebrities on the meme coin market. Australian model and singer Iggy Azalea has successfully launched the Mother Iggy coin, which saw a staggering 1,200% increase in just one week, bringing its market value to $200 million. Carter says the coin’s utility is further extended as token holders will soon be able to purchase phones and monthly cell plans from Azalea’s telecommunications company. However, she warns that celebrity backing alone does not guarantee success, as evidenced by the sharp decline in value of Caitlyn Jenner’s coin, which now sits at less than $6 million from an initial market cap of $43 million.

For a meme coin to thrive, it must foster a large and engaged community. Carter uses Floki as an example of a meme coin that has evolved into a movement, branding itself as “The People’s Cryptocurrency.” Floki supports utility-based projects and NFTs, and has developed unique features such as integration with the Valhalla Metaverse play-to-earn game and an NFT marketplace. Additionally, Floki University, a crypto education platform, responds to the growing interest from new investors, helping drive its market capitalization to over $2.5 billion.

Some of the most robust meme coins are those built on established blockchains. Forbes points out Bonk, which utilizes the Solana blockchain, making it well-suited for various decentralized finance applications. The integration with Solana allows Bonk to benefit from the extensive ecosystem already in place, including over 250 on-chain integrations.

Forbes advises that, similar to Bitcoin, meme coins require thorough research before investing. Carter says investors should evaluate a coin’s utility, community engagement, and development team. She also mentions that the true long-term value of a meme coin depends on its ability to solve real-world problems and offer genuinely useful functions beyond what existing cryptocurrencies provide.

Forbes’ article about meme coins, called $SHIB "Beyond Cute," dives into the impressive accomplishments of Shib developers, highlighting:1.Leading Technological Innovation:•Forbes recognizes Shiba Inu as more than just a cute meme coin. It’s now setting the pace for other…

— 𝐋𝐔𝐂𝐈𝐄 | SHIB.IO (@LucieSHIB) June 12, 2024

Featured Image via Pixabay

A dormant Bitcoin ($BTC ) whale has recently moved 8,000 coins onto the leading cryptocurrency exchange Binance after acquiring the tokens near the bear market lows in 2018 at around $3,800 per BTC.

According to data shared by on-chain analysis service Lookonchain, a dormant Bitcoin whale that hadn’t moved their funds for over five years has moved 8,000 BTC that they acquired in December 2018, near the bear market lows of $3,200 after the price of the flagship cryptocurrency plunged from nearly $19,000 in 2017. The total cost for these coins was of around $30.4 million.

At the time of writing the flagship cryptocurrency is trading at $67,800, with the funds being worth over $535 million at the time they were sent to the leading cryptocurrency exchange.

A wallet that had been dormant for 5.5 years transferred 8K $BTC ($535.64M) to #Binance 40 mins ago.The wallet received 8K $BTC on Dec 6, 2018, when the $BTC price was $3,810.https://t.co/zvxAKbHKi6 pic.twitter.com/ZKZHdm4JkR

— Lookonchain (@lookonchain) June 11, 2024

The move came as major Bitcoin investors, colloquially known as whales, have recently opened massive long positions on the flagship cryptocurrency via popular cryptocurrency exchanges Bybit and HTX at around $69,000.

That’s according to Ki Young Ju, CEO of cryptocurrency analytics firm CryptoQuant, who pointed out that these massive long positions are interesting in light of similar activity seen back in August 2023, when Bitcoin whales opened large long positions on BTC ahead of a parabolic price rise that saw the cryptocurrency move from around $25,000 to a new all-time high above $73,500.

Notably, CryptoQuant has also revealed that there has been an influx of capital from whale wallets, which have been adding round $1 billion worth of BTC per day, with the  robust accumulation suggests that these funds are “likely custody.”

Young-Ju highlighted a parallel between Bitcoin’s current behavior and the market activity of mid-2020, before a bull run in 2021. During that period, Bitcoin’s price remained relatively stable, yet on-chain activity, particularly over-the-counter (OTC) transactions involving institutional players, was exceptionally high.

Despite Bitcoin’s price being relatively stagnant over the past six months, the realized cap for new whales, a metric reflecting the total value at which large investors acquire Bitcoin, has seen significant growth.

Featured image via Pixabay.

On June 11, Ethereum Foundation co-founder Vitalik Buterin commented on the current state of Ethereum Layer 2 (L2) projects, and more specifically Optimism’s OP Mainnet.

The image he embedded in his post on the social media platform X (formerly known as Twitter) shows a list of L2 scaling solutions for Ethereum, categorized by their stage of development and the type of rollup technology they use (ZK Rollup or Optimistic Rollup). Vitalik Buterin’s post suggests that “stage 1+” L2s are those with robust proof systems that provide strong security guarantees. He welcomes Optimism to this group and expresses his hope that more L2s, particularly those using Zero-Knowledge (ZK) proofs, will soon achieve this level of maturity.

Based on this image, there are currently no ZK-Rollups in stage 2, which is the stage Buterin is referring to when he mentions “proof systems that actually have teeth”. Only Optimistic Rollups like Fuel V1 and DeGate V1 have reached stage 2.

Ethereum: where yesterday's FUD is today's solved problem. pic.twitter.com/revNpVEeqm

— vitalik.eth (@VitalikButerin) June 11, 2024

The image is a screenshot from L2BEAT, a website dedicated to tracking and comparing various Ethereum Layer 2 scaling solutions.

L2BEAT offers a detailed overview of different L2 projects, covering aspects such as technology, performance, security, and adoption metrics. Their categorization system is designed to help users grasp the diverse approaches to scaling Ethereum and to stay informed about the current status of each project.

Stage refers to the rollup stage based on its featured and maturity:

Stage 0 (“full training wheels”)

Stage 1 (“limited training wheels”)

Stage 2 (“No training wheels”)

Stage 0: Full Training Wheels

The “Stage 0” designation signifies that the Layer 2 solution is in its initial development phase, marked by several key limitations:

Incomplete Proof System: The mechanism for verifying transactions, known as the proof system, is still being developed.

Withdrawal Censorship: There is a risk that users’ withdrawals can be restricted by centralized operators who have permission to control this process.

Centralized Upgrades: Updates managed by centralized actors, as opposed to a more decentralized Security Council, provide users with less than 7 days to exit in the event of operator issues or censorship.

Stage 1: Limited Training Wheels

The “Stage 1” status indicates some progression from Stage 0 but highlights areas needing improvement to achieve further decentralization and user assurance:

Restricted Fraud Proofs: Only pre-approved (whitelisted) actors can submit fraud proofs, which limits openness and decentralization.

Short Upgrade Notices: Upgrades that are not related to on-chain provable bugs give users less than 30 days to exit, limiting their response time.

Broad Security Council Actions: The Security Council’s actions are not strictly limited to on-chain provable bugs, suggesting a need for clearer governance rules.

L2BEAT points out that these stages do not reflect the security of the rollup itself.