Cardano's unsung hero

January 26, 2024

 

Reading time: 7 minutes

BNB slides south as active addresses on the network hit one-month low

Key points:

  • On 24 January, the BNB Chain had 119,400 active wallets, showing an 88% decrease from the 1.01 million active addresses recorded on 1 January.

  • Data from Coinglass indicated a 21% decrease in the coin's Open Interest since the beginning of the year.

News - The BNB Chain's daily active addresses has dropped to its lowest point in a month, with a consistent decline in the daily count of active wallets within the decentralized applications since 31 December 2023, according to DappRadar.

On 24 January, the BNB Chain had 119,400 active wallets, showing an 88% decrease from the 1.01 million active addresses recorded on 1 January.

Double trouble - The decrease in network users has resulted in a corresponding drop in daily transaction numbers since the beginning of the year. As of 24 January, the total transaction count on BNB Chain stood at 209,170, reflecting an 87% drop from the New Year's Day peak of 1.68 million transactions.

BNB'S blue horizon - At the time of writing, the network's native coin (BNB) was valued at $295, marking a 5% decline over the past week. Data from Coinglass indicated a 21% decrease in the coin's Open Interest since the beginning of the year. Additionally, Funding Rates on exchanges have remained persistently negative since 15 January, suggesting that traders are betting on a decline in BNB's price.

Dogecoin blockchain becomes home to 1990s iconic shooter game Doom

Key points:

  • The pseudonymous developer Mini Doge inscribed the free version of Doom into the Dogecoin network as a celebration of the game's 30th anniversary.

  • Previously, Ninjalerts, a Bitcoin Ordinals portfolio tracker, deployed a Super Nintendo Entertainment System emulator on a satoshi.

News - Dogecoin's blockchain now supports the iconic 1990s first-person shooter game Doom, thanks to a developer who inscribed the game into the network.

How to play -  The pseudonymous developer "Mini Doge" used the Dogecoin Ordinals protocol, or "Doginals," to inscribe the game Doom into the Dogecoin blockchain. This allows anyone to enjoy the classic game on their computers or mobile phones by accessing the designated inscription link.

Mini Doge inscribed the free version of Doom into the Dogecoin network as a celebration of the game's 30th anniversary. The blockchain-hosted game features nine levels that can be shared without triggering any legal complications.

Not a first? Well, before Dogecoin incorporated Doom, other developers had inscribed a classic game emulator onto the Bitcoin blockchain using Ordinals. On January 8, Ninjalerts, a Bitcoin Ordinals portfolio tracker, deployed a Super Nintendo Entertainment System emulator on a satoshi.

In their announcement, Ninjalerts CEO Trevor Owens highlighted a study that revealed 90% of classic video games were endangered and asserted that Bitcoin uniquely serves as the ideal platform for preserving these "cultural digital artifacts" for future generations.

Cardano's DJED stablecoin sees sharp volume surge amid network activity slowdown

Key points:

  • DJED, Cardano's stablecoin, has seen a swift increase in growth in recent weeks.

  • However, Cardano experienced a notable decrease in network activity.

News - DJED, Cardano's stablecoin, has seen a swift increase in growth in recent weeks. In the last 24 hours alone, the stablecoin volume of DJED surged by an impressive 100%, continuing its upward trend.

Cardano's joys continue - Along with the growth of its stablecoin, Cardano also experienced substantial growth in its DeFi sector. The total value locked on the platform rose from 200 million to 326 million in recent weeks, driven by the increasing popularity of decentralized exchanges (DEX) on the Cardano network. Data from Artemis revealed a significant uptick in overall volumes on Cardano's DEXs, growing from 3 million to 5.89 million.

Cardano's bliss disrupted? Despite Cardano's growth in other aspects,  it saw a notable decrease in network activity. Daily active addresses on the platform dropped from 52,000 to 39,000 over the past few weeks, leading to a decline in overall transaction numbers on the network.

Over the last week, Cardano experienced a 20.4% decrease in generated fees, according to Token Terminal's data. Additionally, development activity on the network saw a significant downturn, with a 41.7% decrease in the number of code commits in the last month.

Bank of England and HM Treasury respond to CBDC consultation

Key points:

  • The two institutions stated that while no final decision has been made about launching a digital pound, they will continue to explore CBDC feasibility and designs.

  • The two institutions emphasized that, should they proceed with the CBDC plan, the expected launch of the digital pound would be no earlier than 2025.

News - The Bank of England and HM Treasury in the UK have responded to a consultation on a CBDC initiated in February 2023. 

In a 25 January notice, the two institutions stated that while no final decision has been made about launching a digital pound, they will continue to explore CBDC feasibility and designs. 

Dive into the details - The Bank of England stated that if a digital pound is adopted, the introduction of primary legislation would be necessary to safeguard users' privacy and control. According to the BoE, neither the Bank nor the government would have access to personal data, granting users the freedom to decide how they spend their digital pounds.

The two institutions emphasized that, should they proceed with the CBDC plan, the expected launch of the digital pound – often referred to as 'Britcoin' by the public, would be no earlier than 2025. Furthermore, they emphasized their dedication to preserving access to cash and providing residents with an alternative payment option should they opt to proceed with a CBDC launch.

Here, it is worth noting that the U.K. government has seen multiple changes in leadership since the digital pound was first proposed, including officials responsible for overseeing economic policy.

Did you know?

  • Beeple's "Everydays: The First 5000 Days" was the best-selling NFT of all time. On 11 March 2021, it sold for almost 70 million US dollars (38,500 ETH).

  • Since the inception of Bitcoin in 2009, over 22,000 cryptocurrencies have been created, with an average of around 5 new ones introduced daily and 33 per week according to CoinMarketCap data.

  • While there is a widespread willingness among retail, grocery, and luxury goods merchants (80%) to adopt cryptocurrency as a payment method, in contrast, only 25% of travel, hospitality, and automotive merchants share the same enthusiasm, as per Statista data.

Top 3 coins of the day

Ethereum (ETH)

  • On 24 January, Lookonchain revealed that Celcius sold over $40 million worth of Ethereum, with historical trends indicating a subsequent drop in the token's price.

  • At press time, Ethereum's supply outside of exchanges remained considerably higher than its supply on exchanges.

What you should know - Amid the current downturn in the crypto market, the Ethereum price recently hit a local high of $2700 before starting a correction phase this week. At press time, ETH was valued at $2,261, reflecting a loss of 9.6% over the past week. As the token faces bearish pressure, escalating selling activity poses a threat, potentially pushing the price down to the psychological level of $2000. Adding to the bearish perspective, the awesome oscillator was seen flipping into the bearish territory, flashing red signal bars below the half-line.

Polygon (MATIC)

  • On average, 37% of Polygon's daily transactions in the past month were from new wallets transacting for the first time, as per data from IntoTheBlock.

  • According to a recent report by Flipside Crypto, in 2023, Polygon's user growth surpassed that of Bitcoin, with 15 million new user addresses recorded, representing a 50% increase over Bitcoin. 

What you should know - Over the past week, the MATIC fell by 5.5%. At press time, the token was changing hands at $0.74, following an uptick of 2.9% in the last 24 hours. The MACD revealed red histograms below the half-line as the lines were bound south, indicating that sellers were in command. The short-term resistance at the $0.80 mark could fuel a strong rally upon a successful breakthrough. However, if the bears continue to dominate, it is likely that the price could decline further and test the $0.70 support level.

Uniswap (UNI)

  • Over the past week, long traders have witnessed liquidations worth $2.2 million, 25 times more than the short liquidations. 

  • Recently, dYdX ($DYDX) claimed the throne as the largest decentralized exchange (DEX), surpassing Uniswap with an impressive 24-hour trading volume of $625 million compared to Uniswap’s $512 million. 

What you should know - For the last 7 days, UNI has been in a downward trend, thus declining by 8.3%. In the past 24 hours, the crypto rose by 1.0%, reaching a press time value of $5.83. The Fear & Greed Index displayed a score of 52 (Neutral), suggesting that there was no strong selling or buying bias. The primary indicator (RSI) showcased a reading of 40 - A sign of weak bearish momentum in the market.

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