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ADA: $1 despite FUD?
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Can DOGE, SHIB, and PEPE take the memecoin market cap to $100B?
Key points:
The prices of SHIB, DOGE, and PEPE turned bullish on the back of Bitcoin’s price rise.
If the memecoin mania continues, the sector’s market cap can reach $100 million by 2024-end.
News - As Bitcoin continued to soar towards $75k, memecoins joined the fray. Over the last week, both DOGE and SHIB rose by over 6%. Meanwhile, PEPE rose by 4% in the last seven days.
IntoTheBlock noted that the “aggregate value of meme coins has nearly tripled in 2024,” causing the market cap to push to $56 billion. If this trajectory continues, the possibility of a $100 billion marketcap towards the end of 2024 seems highly plausible.
Well, buying pressure on SHIB increased in recent days, lending credence to this theory. In the meantime, DOGE’s NVT Ratio declined, throwing up “undervalued” signs. However, PEPE exhibited signs of concern, as its Supply on Exchanges spiked, showing increased sell pressure.
Why memes? A pertinent question, thus, arises - What makes memecoins so special in this bull run? The answer is ETFs and the Bitcoin halving. The two events, one closely following the heels of the other, have injected a massive wave of optimism in the market.
So, investors have been capitalizing on this momentum. They have turned their attention to coins that have a higher correlation to Bitcoin’s price, and memecoins are famous for their dependence on the king coin’s price.
As Charles Hoskinson defends FUD around Cardano, ADA inches towards $1
Key points:
The FUD around Cardano has been ongoing since early 2024.
Most technical indicators turned bullish even as detractors remained vocal.
News - Cardano has been experiencing FUD since Q1 2024, something that has continued to haunt its co-founder, Charles Hoskinson, well into 2024. Recently, crypto influencer Bitboy, after constantly calling Cardano “dead,” challenged Hoskinson to face him in an interview and address the issues.
However, BitMEX founder Arthur Hayes was not so kind. He raised the point that important dApps do not launch on Cardano, and most of its “offerings” are never “heavily used.” Ending his monologue with a flourish, Hayes levied, “That’s why ADA is dog sh*t.”
Charles Hoskinson defends ADA - Defending his creation, Cardano’s founder blamed “short-term narratives and carnival barkers” for leading the FUD around the altcoin. He praised Cardano’s community and governance models, asserting that the altcoin has a positive long-term outlook.
ADA to $1? ADA was up 3% in the last seven days, sitting at 0.60. $0.65 is a major roadblack for the altcoin right now. If ADA crosses this barrier, then its price can touch $1 soon.
The MVRV ratio and network activity have shown significant improvements, expounding upon the bullish narrative.
XRP crawls back to $0.60 - Its struggles continue in an otherwise bullish market
Key points:
XRP crossed the $0.60 threshold as Ripple announced the launch of a new stablecoin.
The altcoin seemed to be on the verge of starting a bull run as its trading volume crossed $1 billion.
Context of the news - Ripple has stirred the crypto community by announcing a USD-backed stablecoin with a focus on cross-chain interoperability. This announcement came at the perfect time for its native token, XRP, which has been grappling with losses since the start of the month.
News - The first three days of April saw XRP decline by over 8%. At first glance, it seemed like the altcoin would consolidate around $0.60, but this turned into a decline soon thereafter, with its price falling to $0.50.
However, the announcement brought a surge of 3% to XRP’s price, taking it right back above $0.60 and leaving investors scratching their heads. Alongside this, its RSI showed that it was on the verge of re-entering a bullish trend, as the indicator moved above the neutral line.
Volume crosses $1 billion again - XRP’s 7-day active addresses spiked on the 7th of April and reached 158k, which was its highest level in months. In the meantime, its trading volume rose slightly, not enough to make a notable impact, but enough to go over $1 billion.
91% Base memecoins are security risks, 17% potential scams - Study
Key points:
A recent study analysed 1,000 new tokens on Base and found that 908 reported security vulnerabilities of some kind.
Of this, 17% of tokens seem to be outright scams, as they are subject to exaggerated “sales taxes” or honeypots.
News - The launch of the Dencun upgrade has been good news for Coinbase’s rollup Base, as it has seen a surge in transactions, TVL, and users. However, most activity is fueled by the recent memecoin mania, with most investors looking to capitalise on the frenzy.
Security measures - The study examined three fundamental security measures: locked liquidity, verified contracts and absence of honeypots. A surprising 90.8% of the tokens did not pass these security measures.
A large part of this could be attributed to inept founders, who usually paste the codes of existing tokens without looking at their flaws.
Outright scams - Disturbingly, 16.9% of the analysed tokens were deemed to be outright scams. This included “sales taxes” as high as 100%, or the more sinister honeypot scams.
Presale rug pulls, though not seen on Base, have become infamous on its L1 sister ecosystem, Solana. As per a study by Blockaid, almost half of Solana presale tokens launched between November 2023 and February 2024 were rug pulls.
More stories from the crypto ecosystem
Interesting facts
Anyone can create a crypto coin, and the names can get as bizarre as you like. Some punniest names in the crypto sphere include Garlicoin, for the love for garlic bread, Coinye after the myth and legend himself, Kanye West, and DeepOnion, the creepy crypto that facilitates payments on the Tor browser.
The market cap of the total cryptocurrencies is more than the GDP of most countries. To put things into perspective, the current crypto market cap is over $2 trillion. However, only 12 countries in the world have a GDP of more than $1.5 trillion, as per the World Bank.
Gamers seem to be spearheading the crypto adoption process. As of 2023, 44% of gamers have either bought cryptos or have partaken in Web3 games. Blockchain users worldwide can now create and sell games and in-game items on dApps, which can change the gaming industry as we know it.
Top 3 coins of the day
Polygon (MATIC)
Key points:
Polygon’s Fear and Greed Index was at 80, showing a state of extreme greed in the market.
If the 30-day MVRV ratio sustains itself, MATIC can cross $1 in May.
What you should know - MATIC recovered lost ground after it surged 7% following its latest correction, which had caused the price of the token to lose 32.8% of its value. Notably, the 30-day MVRV ratio sat below 1, a classic indication that the token is undervalued. Historically, similar MVRV ratios have caused rallies of 112% and 87%. Well, not just the MVRV ratio, the Bollinger Bands and the MACD have also provided a bullish outlook. A rise in the MACD indicator showed market sentiment had turned bullish, spurring hopes for a rise to $1.
dogwifhat (WIF)
If WIF’s current trajectory continues, it has the potential to surge by 228%.
At press time, the market sentiment was 76 - A state of extreme greed.
What you should know - WIF’s trading volume surged to $711 million in the last 24 hours, as investors’ positive interest continued unabated. This resulted in a market cap rise of $4.15 billion, making WIF the 30th-largest token. The memecoin seemed closer to crossing its ATH, with excited investors stipulating that the high could come this week itself. Indicators supported this belief, as the 20-day Exponential Moving Average (EMA) and 50-day EMA formed a golden cross, showing a sustainable uptrend. However, the RSI, at 56, showed a decline, stirring doubts on whether WIF can actually cross its ATH this week.
Toncoin (TON)
Key points:
TON remained majorly bullish in the last 30 days and has become a top gainer of late.
Its Fear and Greed Index stood at 80, indicating that the market was in a state of extreme greed.
What you should know - TON surged by over 20% in the last 24 hours and became a top gainer. At the time of writing, its price stood at $6.62, briefly sliding down from its $6.93 ATH. Its trading volume remained at $673.07 million while its marketcap crossed the $23 billion mark. Thus, making TON the ninth-largest crypto. At press time, the RSI stood at 85 - a sign of trend reversal. However, the indicator had fallen from its high of 87. Hence, where the price will go is anyone’s guess.
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