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Bitcoin slumps, L2 offers hope
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Bitcoin Layer 2 tokens outperform BTC post halving: STX leads with 20% surge
Key points:
STX has seen a price increase of nearly 20%, compared to Bitcoin's 4.7%.
The price surge of layer 2 tokens coincided with a post-halving rise in transaction fees on Bitcoin.
News - Bitcoin layer 2 tokens have emerged as the surprise winners following the highly anticipated halving event on the Bitcoin blockchain. These tokens, associated with projects designed to improve scalability and transaction speed on Bitcoin, have significantly outperformed Bitcoin itself.
Stacks (STX), the leading layer 2 network's native token, has witnessed a remarkable price increase of nearly 20% since the halving. This stands in stark contrast to Bitcoin's more modest gain of around 4.7%. Other layer 2 tokens like Elastos (ELA) and SatoshiVM (SAVM) have also seen notable growth, rising by 11% and 5% respectively.
The halving effect - The outperformance of layer 2 tokens coincided with a surge in transaction fees on the Bitcoin blockchain following the halving. Transaction fees reached their highest level since early 2018, highlighting the ongoing scalability challenges faced by the network.
This fee spike was partly attributed to the launch of a new protocol called Runes. The recent developments underscore the growing significance of layer 2 projects for the future of Bitcoin.
Thai SEC to block unlicensed crypto exchanges to combat crimes
Key points:
Thai authorities are taking a hard stance against unlicensed cryptocurrency exchanges.
The SEC urged crypto investors to withdraw funds from unregistered platforms.
News - Thai authorities are taking a firm stance on cryptocurrency exchanges, announcing a crackdown on unlicensed platforms operating within the country.
This move aims to combat money laundering and other online crimes associated with unregulated crypto markets. The Thai Securities and Exchange Commission (SEC) will play a central role in identifying and blocking unlicensed exchanges.
SEC requests crypto holders - The SEC is urging crypto investors to proactively withdraw their funds from unregistered platforms before the ban takes effect. ‘
To ensure safe investments, the SEC recommends using the "SEC Check First" application to verify the legitimacy and licensing status of any crypto exchange before engaging in transactions.'
Thailand's decision aligns with a growing trend in Southeast Asia, where countries like India and the Philippines have recently implemented similar bans on unlicensed crypto exchanges. This regional shift highlights a growing focus on regulating the crypto market and prioritizing investor protection.
Key points:
This low social media activity preceded a significant price surge for AVAX in late 2023.
AVAX's current low price point might be attractive to investors seeking a potential bargain.
News - Avalanche is experiencing a period of low social media buzz, with its social dominance metric reaching its lowest point since November 2023. This suggests a decrease in online discussions about AVAX compared to other top 100 cryptocurrencies.
Interestingly, a similar social media lull preceded a significant price surge for AVAX in late 2023. Back then, the token's price jumped from $11.62 to $48.93 within two months. This historical pattern has some analysts speculating that a similar price rally could be on the horizon for AVAX.
What’s more? Despite the negative sentiment surrounding both AVAX and SOL, some analysts believe that short-term bullish projections for AVAX might be stronger than those for SOL.
However, it's important to note that Solana's ecosystem appears to be experiencing more activity in some areas.
For instance, Solana's memecoin, Dogwifhat (WIF), has significantly outperformed Avalanche's leading memecoin, Coq Inu (COQ), in the past month. This suggests that there might be a stronger interest in the Solana ecosystem overall.
Worldcoin launches Layer 2 solution, but WLD price fails to respond
Key points:
Worldcoin announced the launch of "World Chain," its Layer-2 solution.
Metrics show a lack of excitement surrounding the launch.
News - Worldcoin recently announced the launch of its Layer 2 (L2) solution, "World Chain." This news, however, failed to spark any significant price increase for the platform's native token, WLD.
World Chain, unveiled on 17 April, is an Ethereum-secured L2 solution designed to address scalability challenges. The announcement also acknowledged the presence of bots on the platform, with some deemed essential. Worldcoin plans to leverage World ID to differentiate between human users and unnecessary bots that could congest the network.
Importance of WLD - The announcement highlighted the continued importance of WLD, which will be used alongside Ethereum for gas fees within the new L2 solution. Despite this new utility, WLD's price actually declined over 6% on the day of the announcement, closing the trading session around $4.7.
As of this writing, the token continued to exhibit volatility, hovering slightly above $4.7 with minimal gains or losses.
More stories from the crypto ecosystem
Did you know?
CryptoKitties is recognized as one of the earliest blockchain-based games, introducing the concept of digital collectibles to the mainstream.
In 2021, approximately one-third of Nigerians had engaged with or possessed Bitcoin.
In 2024, the United States leads the global Bitcoin mining industry with over 35% of the network's hash rate.
Top 3 coins of the day
ApeCoin (APE)
Key points:
A decline in BAYC’s popularity contributed to APE’s downfall.
The market structure, on a 1-D chart, looked bearish.
What you should know - Last week, APE's price fell below the swing low at $1.233 where the February rally was initiated. At a current RSI of 39, Apecoin appears to be in slightly oversold territory, indicating a possible buying opportunity for investors. If demand kicks in at the current level, APE could reach its immediate resistance zone within $1.6-$1.7. Traders should keep a close eye on this resistance zone, as well as any upcoming announcements or events that could influence Apecoin's price trajectory.
Binance Coin (BNB)
Key points:
BNB’s funding rate turned negative on 22 April.
On a Year-To-Date (YTD) basis, the value of the coin has increased by 92.12%.
What you should know - Since 12 March, BNB has been following a rangebound movement. If selling pressure declines, BNB will likely see a northward breakout after reaching $624. The odds of which looked high at the time of writing, thanks to the reading of MACD. The indicator was awaiting bullish crossover, at press time. Upcoming Binance exchange announcements, industry regulations, and Bitcoin's price movement can significantly influence BNB.
Cardano (ADA)
Key points:
ADA concluded the last week on a bullish note.
At press time, it was trading at $0.5143.
What you should know - ADA displayed a robust performance on the daily chart, culminating in a substantial 8.3% surge on 20 April, with a closing near $0.5. This rise marked a notable conclusion to the consecutive uptrend initiated on 18 April, offering relief from the previous week's substantial declines. Currently positioned between the two Bollinger Bands, ADA's price indicates a neutral stance, suggesting a potential period of consolidation or uncertainty in the market.
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