Day: September 5, 2023

Visa announced its plan to adopt the Solana blockchain for transacting with USDC, a popular stablecoin, to expedite cross-border payments. This signals a significant shift towards crypto adoption, with potential benefits including quicker transaction times and economical settlements. Meanwhile, PayPal’s involvement in stablecoins and projections of the stablecoin market reaching nearly $3 trillion in five years indicate their growing significance. Still, the highly volatile nature of cryptocurrencies requires careful evaluation before investments.

“Synapse’s native token took a substantial hit after a liquidity provider unloaded roughly 9 million SYN tokens and withdrew all stablecoin liquidity. This move, although confirmed not to be a security breach by Synapse, raised suspicion of a ‘rug pull’, causing a significant decline in the token’s value and user base.”

“US-based Genesis Global Trading is voluntarily terminating its crypto spot trading service for business reasons, impacting market dynamics. However, the crypto world’s resilience is shown by the continuing service of GGC International and the recent revelation that there are over 40,000 crypto millionaires worldwide, demonstrating the sector’s growth and wealth creation potential.”

“The ‘Crypto Wealth Report’ reveals an increasing number of global millionaires hold significant crypto assets, particularly Bitcoin. Yet, concerns range from future trading prohibitions to tax policies on digital assets. Despite volatility and risks, many jurisdictions are encouraging safe storage policies, recognizing crypto as a legitimate asset class.”

The U.S. SEC nears the deadline for the approval or rejection of the first ether ETF which, according to a report by K33 Research, could cause a considerable boost in ether’s price. Comparing it to the 60% gain bitcoin experienced upon the launch of its first futures-based ETF, the analyst suggests a favorable market impact. Despite the SEC’s delay and consequent dip in bitcoin’s fortune, aggressive accumulation is recommended due to long-term potential.

Despite Ethereum’s 31.3% price surge between March 10 and 18, there are concerns about the crypto’s ability to maintain this upward momentum. Rising bearish sentiment, decreases in key ETH price metrics, and negative market developments are troubling the ecosystem. There are fears over potential liquidation of some $4.8 billion ETH deposits held in the Grayscale Ethereum Trust, amid declining smart contract transactions and investor interest. Ethereum’s position is further pressured by its competitors like Visa integrating Solana blockchain and Coinbase planning to convert old versions of USDC to a new format.

“Staking in the crypto world is showing resilience amidst a challenging year, with a 292% surge in total value locked (TVL) for liquid staking protocols. Ethereum staking is recovering, especially due to the ‘Merge’ event that transitioned Ethereum to live staking platform. It’s compared with the ‘on-chain equivalent of government bonds’, promising a safer alternative than DeFi lenders.”

“While Bitcoin attempts to break its current trading range, the market volatility dwindles around $26,000. Doji patterns on the weekly chart suggest ambivalence regarding Bitcoin’s future trajectory. Altcoins like Toncoin, Chainlink, Maker, and Tezos show dynamic movements, suggesting potential breakout with volatility as the game’s name.”

Crypto-backed funds saw minor outflows of $11.2 million last week, led by altcoin, particularly MATIC-backed funds. Despite ETH funds and short-Bitcoin funds also recording withdrawals, BTC funds had inflows totaling $3.8 million. Overall, despite market fluctuations, crypto investment products have a year-to-date inflow.

“Liquid staking protocols, particularly Lido, have seen a massive rise recently despite an overall downturn in the DeFi industry. The popularity of liquid staking, driven by regulatory pressures and attractive yield returns, suggests a potential shift within the DeFi ecosystem.”

“Bitcoin’s current market capitalization stands at a colossal $500.6 billion. Despite a minor dip, its status still reigns at the top. However, forecasts warn of potential hurdles ahead, possibly pushing Bitcoin into a bearish disposition, unless significant resistances are overcome.”

“An ominous Bitcoin price metric that previously resulted in a -25% FTX crash is repeating, centred around the BTC rate of $25,726. Market spectators prepare for a possible drop to $23,000. The Short to Long-Term Realized Value (SLRV) ratio indicates potential sales growth in ‘older’ Bitcoins, urging caution among investors. Meanwhile, stablecoin Circle’s USD Coin (USDC) now supports smooth transitions to Base and Optimism networks.”

Following Bitcoin’s recent dip to $25,700, market uncertainty pervades, driven by SEC’s delay of other Bitcoin ETF applications like BlackRock and Fidelity. Factors such as decreasing trading volume, multi-year lows in Google search trends, and record low volatility point towards a prevailing indifferent attitude. Nevertheless, with Solana’s SOL token rising and Visa’s initiative to expand settlement capabilities on blockchain, optimism still persists in crypto space.