Cardano's big win

February 16, 2024

Reading time: 5 minutes

Solana emerges as top performer among L1 blockchains, outpacing Ethereum, Tron

Key points:

  • SOL's price surged 98.47% in the past month, compared to ETH's 42.67% and TRX's 27.35%.

  • Technically, SOL could reach $140 or even retest $150 if the bullish trend continues.

News - Solana has emerged as a standout performer among leading Layer-1 blockchains, according to data analyzed by AMBCrypto. While other chains like Ethereum and Tron saw increases in stablecoin supply, Solana dominated in daily transactions, fees, and token demand.

On-chain metrics - SOL surpassed both ETH and TRX in daily transactions and fees, indicating heightened activity and user interest. SOL even surpassed the market cap of prominent rival Binance Coin, showcasing its growing influence.

SOL enjoyed the highest social volume among the analyzed chains, with a score of 30 compared to ETH's 25 and TRX's lower figure. This suggests widespread online interest and discussion. The high social volume could further propel SOL's price toward $120 in the short term, but exceeding certain thresholds might lead to a temporary correction.

What about the technical indicators - Technical indicators such as the EMA crossover and the Relative Strength Index (RSI) suggest potential price movements, with bullish scenarios possibly pushing SOL towards $140 or even $150, while overbought conditions could lead to retracement below $100.

U.S. Dollar could be strengthened by Stablecoins, says Federal Reserve governor

Key points:

  • Fed Governor Waller believes stablecoins could strengthen, not weaken, the US dollar.

  • Dollar strength is vital for the US economy and foreign policy, but some crypto advocates seek alternatives.

News - Federal Reserve Governor Christopher Waller believes that contrary to popular fears, stablecoins might actually bolster the US dollar's global standing as decentralized finance (DeFi) grows.

While critics warn of cryptocurrencies like Bitcoin replacing the dollar, Waller highlights that most DeFi trades rely on stablecoins, 99% of which are pegged to the dollar's value. "Growth in DeFi trading would likely solidify the dollar's dominance," he stated at a recent Bahamas event.

Is he all bullish on crypto? Waller acknowledges the potential threat of a digital currency shift, but argues that current concerns about the dollar's decline are unfounded. "Recent developments, even those perceived as threats, have actually strengthened the dollar's position, at least for now," he explained.

Stablecoins, primarily Tether (USDT) and Circle (USDC) act as anchors in the volatile crypto market, facilitating trades in and out of other tokens. Experts anticipate significant growth in these "utility" assets, potentially reaching trillions of dollars.

The strength of the U.S. dollar is crucial to the nation's economy and foreign-policy interests. However, some within the crypto community view government-based monetary dominance as an aspect ripe for disruption.

Cardano's revenue spikes in Q4 2023, driven by price surge and increased transaction fees

Key points:

  • Cardano's Q4 revenue surged 66.7%, driven by the ADA price rally and network activity.

  • DeFi protocols like Miniswap and Liqwid Finance were key drivers of growth.

News - Cardano ended 2023 on a high note, defying earlier struggles with a 66.7% surge in revenue during Q4, according to a Messari report. This positive performance was fueled by two key factors: a strong ADA price rally and increased network activity.

ADA's price surged, contributing significantly to the revenue increase. Transaction fees rose 50.4%, indicating higher network activity. The rise in transactions was attributed to the launch and development of various protocols, particularly DeFi protocols, throughout 2023.

What about its Total Value Locked? Well, TVL in Cardano's ecosystem saw significant growth, driven primarily by protocols such as Miniswap and Liqwid Finance. Transactions on Miniswap surged by 140% during the quarter, while Liqwid Finance experienced a substantial increase in transaction volume.

Any concerns? However, not all aspects of the Cardano ecosystem experienced growth, as the number of stake pools remained stagnant, with a slight decrease of 0.06%. The outlook for ADA's price remains influenced by technical factors and network usage. Positive changes in staking activity could potentially propel ADA's price closer to the $1 milestone in Q1 2024, while stagnant or declining activity may delay reaching this milestone.

Aptos joins blockchain phone race, launches $99 device for emerging markets

Key points:

  • Aptos partners with Jambo Technology to launch the $99 JamboPhone for emerging markets.

  • The device will be pre-integrated with Aptos wallet and Jambo App for Web3 access.

News - Aptos, a Layer-1 blockchain network, has partnered with African tech firm Jambo Technology to launch the JamboPhone, a $99 smartphone aimed at unlocking the digital economy for users in emerging markets. This move closely follows rival network Solana's Saga smartphone announcement.

More about the phone - Priced at $99, the JamboPhone will be available in 40 countries across Africa, Southeast Asia, and Latin America. It serves as a bridge to the Aptos ecosystem, offering users access to decentralized finance, gaming, and a suite of learning tools through pre-installed applications like the Petra Aptos wallet and Jambo App.

Mo Shaikh, co-founder and CEO of Aptos Labs and former Meta executive, expressed his inspiration by Jambo Technology and the Aptos Foundation, highlighting their commitment to financial access, inclusion, and empowerment through Web3 technology.

Meanwhile, Solana is forging ahead with its crypto phone ambitions, confirming the development of a second device after exceeding expectations for preorders on its first. Driven by a surge of interest, surpassing 100,000 preorders and generating $45 million in sales within just a month, the company is solidifying its commitment to the mobile crypto space.

Crypto scams uncovered

  • Investors fell victim to a cryptocurrency project known as "Save the Kids”, which was promoted by influencers and celebrities, claiming to be a charitable initiative aimed at helping children. However, it turned out to be a honeypot scam designed to exploit investors.

  • A cryptocurrency account registered in Wang Yicheng’s name received more than $90 million between January 2021 and November 2022. At least $9.1 million of these funds were linked to pig butchering scams. Victims of these scams, such as a 71-year-old California man, fell prey to fraudulent schemes promising high returns.

  • Pincoin and iFan were two interconnected cryptocurrency projects that operated as a Ponzi scheme in Vietnam. Investors were promised high returns through a lending program and referral bonuses. However, after collecting millions of dollars from investors, the operators disappeared, leaving behind empty offices and defrauded investors.

Top 3 coins of the day

Key points:

  • LINK was 299.92% up from its cycle low of $4.98 on 10 June 2023.

  • The network observed its highest volume on 2 February at $1.51B.

What you should know - Starting 20 October 2023, LINK has seen a resurgence in its price. However, from 8 November 2023 to 31 January, the altcoin was found trading within a rangebound only to see a northward breakout later. The bullish momentum was predominant at the time of writing. A supply zone can be found near the $16-$18 whereas a support zone can be seen at the $13 zone. Since buyers had an edge in the market, the RSI was seen to be halting at the 65 mark during press time. This suggests that the buying pressure might continue for a few more trading sessions, thereafter a trend reversal can surely be expected.

Uniswap (UNI)

Key points:

  • After the Uniswap Foundation revealed the tentative date for the Uniswap v4 launch, UNI's price has appreciated by a good margin.

  • UNI’s correlation to Bitcoin’s price has also strengthened of late.

What you should know - UNI went from being oversold to overbought in over three weeks. At press time, it was trading near the upper Bollinger Band (BB), signifying that the price was trading at relatively high levels compared to its recent historical range. This was due to increased buying pressure and positive sentiment. Technical indicator MACD saw a bullish divergence and the widening distance between the MACD line and the signal line reflected increasing bullish momentum. If bullish forces keep up their pace, LINK could easily reach its local top of $8.26 in the next week.

VeChain (VET)

Key points:

  • In the last 7-D, VET has gone up by 62.40% with greed and FOMO dominating the market.

  • On 16 February 2024, VET reached a level which was last seen on 5 May 2022.

What you should know - VET investors saw unprecedented demand in the past week, this could be credited to the bullish sentiment dominating the market post Spot BTC ETF approval. At the time of writing, the coin was trading at $0.04888 with a 9% increase over the last day. After 10 February, the Awesome Oscillator (AO) has had its bars plotted above the zero line, thus highlighting a stronger shift in momentum. At this point, it’s very important that traders exercise caution and don’t panic buy, the VET market looks overpriced, as per some analysts and a drawdown can surely be anticipated.

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