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A new dawn for NFTs
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Memecoins flourish as BTC nears $64K ahead of key economic indicators' release
Key points:
Bitcoin approaches $64,000 as the market anticipates key US economic data.
A 3% rise in BTC has spurred increases in other major cryptocurrencies.
News - Bitcoin approached the $64,000 mark during early trading hours in Asia, spurred by a broader rally across the crypto market.
This rise comes as investors anticipate significant economic indicators from the US this week, including the Federal Reserve's FOMC minutes and crucial August economic data.
The implications of BTC’s rise - BTC's 3% increase catalyzed a market-wide surge, with major cryptocurrencies like ETH and DOGE climbing up to 4%, while frog-themed Pepe (PEPE) soared by 14%.
As the week unfolds, the Bureau of Labor Statistics (BLS) will publish key metrics, including the September unadjusted CPI and the PPI annual rates, alongside initial jobless claims for early October.
In the mid-cap segment, Bittensor’s TAO led with a 14% increase, fueled by heightened interest in artificial intelligence tokens. Meanwhile, the resurgence of memecoins, notably cat-themed varieties, has captured traders’ attention, contrasting with declining sentiment towards venture capital-backed tokens.
Crypto gets tax relief in UAE: VAT exemption effective November 15
Key points:
The UAE has exempted crypto transactions from VAT.
The move legitimizes virtual assets in the eyes of the government.
News - The United Arab Emirates has officially removed value-added tax (VAT) from cryptocurrency transactions, aligning the sector with various traditional financial services.
This new policy, set to take effect on November 15, also applies retroactively to transactions dating back to January 1, 2018. The Federal Tax Authority released the update in Arabic on October 2, 2024, with an English version following on October 4.
Important facts - This exemption marks a significant clarification, indicating that VAT does not apply to digital assets. It encompasses all transfers and exchanges of cryptocurrencies, meaning that the 5% tax will no longer be levied on these activities.
Ankita Dhawan, a senior associate at the Métis Institute, a think tank focused on dispute resolution, noted that this move positions virtual assets alongside traditional financial services, many of which already enjoy VAT exemptions. This development is expected to enhance the legitimacy of digital assets within the UAE's regulatory framework.
New Ethereum proposal aims to reduce block times and enhance throughput
Key points:
A new EIP proposes to reduce Ethereum block times from 12 seconds to eight seconds.
The proposal aims to increase overall throughput by 50%.
News - A new Ethereum Improvement Proposal (EIP) seeks to significantly enhance the network's efficiency by reducing block times and increasing data capacity.
Introduced by Ben Adams, co-founder of Illyriad Games, EIP-7781 proposes to decrease block times from 12 seconds to eight seconds, thereby increasing overall throughput by 50%.
What should we expect? The proposal aims to address the limitations of Ethereum's base layer, which has been overshadowed by the focus on layer-2 scaling solutions. By reducing block times and increasing the capacity of blobs, a temporary data structure used to reduce layer-2 network fees, EIP-7781 could significantly improve the network's performance.
Ethereum researcher Justin Drake expressed support for the EIP, noting that its goals align with the broader vision outlined by Vitalik Buterin and Ethereum scaling organizations.
What’s more? However, some developers raised concerns about the potential impact of shorter block times on solo stakers. The reduction in block times could lead to increased execution state growth, requiring more powerful hardware and bandwidth to propagate the blockchain's state.
NFT market rebounds: Weekly sales hit highest point since August
Key points:
NFT weekly sales volume reached its highest point since August.
Three of the top five blockchains experienced a decline in trading volume.
News - Non-fungible token sales volumes have rebounded, reaching their peak since late August after a period of sluggish activity amidst a broader market downturn.
According to data from CryptoSlam, weekly sales from September 30 to October 6 exceeded $84.9 million, marking the highest figure since the week ending August 25, when sales topped $93 million.
In a previous peak, NFT sales soared over $2.2 billion during the week of August 23 to August 29, 2021. Well, despite the recent uptick, three of the top five blockchains -Bitcoin, Ether, and Solana - experienced declines in trading volumes compared to the previous week.
Mythos Chain emerged as a frontrunner, witnessing a remarkable surge to second place alongside Ethereum, with over $15 million in sales - a staggering increase of over 6,000% in just a week. Polygon also performed well, with a 210% rise in weekly sales.
The growth in sales was accompanied by a rise in active buyers, with more than 839,000 NFT buyers recorded, reflecting a nearly 22% increase week-over-week. Total transactions also saw a significant jump, surpassing two million, which is a rise of more than 71% compared to the prior week.
More stories from the crypto ecosystem
Interesting facts
On August 15, 2010, Bitcoin faced a huge bug - and 184 billion BTC were created out of thin air. The BTC supply is supposed to be capped at 21 million, but an integer overflow allowed an unknown attacker to create a ridiculous amount of Bitcoin. The issue was noted in 90 minutes and a fix was rushed in.
Elon Musk has a lot of pull when it comes to cryptocurrency prices, especially Dogecoin. But of late, DOGE's prices to Musk's comments haven't been reacting the way it did a few years back.
Before China’s crackdown on cryptocurrencies, the country used to account for a whopping 65% of the global crypto miners. This was as of May 2021. But by August of the same year, the strict actions forced China’s share of the global hashrate to zero.
Top 3 coins of the day
XRP
Key points:
XRP, at press time, was trading at $0.5351.
It lost 15% of its value over the last week.
What you should know - XRP has been on a downward trend after facing resistance at a long-term trendline, with prices retreating toward a support zone near $0.50. The trendline acted as a consistent ceiling, rejecting bullish attempts, and the recent decline suggests continued bearish sentiment. The Awesome Oscillator reflects negative momentum, indicating sellers are maintaining control. However, the support zone around $0.50 may provide a foundation for a potential bounce, as it has held up in the past. A breakdown below this level could lead to further declines, with the next support potentially near $0.45. If buyers step in, reclaiming levels above $0.60 could signal a reversal attempt, but sustained upward momentum would require a decisive break above the trendline resistance.
The Graph (GRT)
Key points:
GRT saw a neutral market movement in the past few days.
However, in the longer-term, bears dominated its structure.
What you should know - The Graph (GRT) has been trading within a descending triangle, with a downward trendline acting as strong resistance since April. After reaching a local low near $0.10, GRT has shown some recovery, but the price faces significant resistance at $0.20, which aligns with the upper Bollinger Band. The RSI is around neutral levels, indicating that momentum is neither overbought nor oversold, and there could be room for movement in either direction. A decisive break above the trendline resistance near $0.20 could pave the way for a bullish reversal, targeting the $0.25 area. Conversely, failure to break above this level may lead to a retest of the $0.10 support.
Ethereum Classic (ETC)
Key points:
ETC has been treating $20 as its resistance for the past couple of days.
On the downside, $17 is acting as a strong support.
What you should know - ETC has been trading within a descending triangle pattern, with a series of lower highs forming resistance near $22, while horizontal support remains around $16. The price is currently testing the upper trendline resistance, but recent attempts to break above have been unsuccessful. The RSI is near the 48 level, indicating that momentum is neutral. A break above the descending trendline and a move past $22 could signal a bullish reversal, targeting resistance at $26. However, if the bearish trend continues and ETC breaks below the $16 support, further declines could follow, potentially targeting the $14 area. Volume remains relatively low, suggesting indecision among traders.
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