Ethereum's price about to soar?

Reading time: 5 minutes

Bitcoin network sees a surge in Rune transactions and a change in fees

Key points:

  • Bitcoin runes have become a major trend on the network, driving a significant portion of transactions.

  • Runes transactions peaked at 81.3% of all network activity in April.

News - Bitcoin has a new trendsetter – Runes. While the excitement surrounding ordinals has faded, runes have emerged as a major driver of transactions and significantly impacted the network in recent months.

An analysis by Dune Analytics revealed a surge in Runes transactions beginning in April. At its peak, Runes accounted for a staggering 81.3% of all transactions on the network, exceeding even regular Bitcoin transactions.

As of press time, Runes still make up a significant portion (44.3%) of the network activity.

What about transaction fees? This dominance also translated to higher transaction fees in the early days of Runes. Data suggests that Runes was responsible for 60-70% of network fees in April.

However, this influence has waned considerably. Currently, Runes contribute around 17% of transaction fees, translating to roughly $630,000. In contrast, regular Bitcoin transactions contribute a much larger sum – around $4 million.

Despite a decent volume of Runes transactions, their impact on fees seems to be diminishing. While overall Bitcoin fees have remained relatively stable between $2 million and $4 million, a significant spike occurred on 7 June, pushing fees to over $22 million before settling back down to around $5 million on 11 June.

Solana Foundation takes action against validators for sandwich attacks

Key points:

  • Solana Foundation removes validators involved in sandwich attacks against retail users.

  • Sandwich attacks are a type of MEV manipulation that exploits users for profit.

News - The Solana Foundation has taken a firm stance against malicious actors on its network, removing several validator operators from its delegation program.

These operators were reportedly involved in "sandwich attacks," a manipulative trading tactic that exploits retail users.

What is a Sandwich attack in the first place? 

  • Sandwich attacks occur when a bad actor places two transactions around a user's trade, essentially "sandwiching" it.

  • This allows the attacker to manipulate the price and extract profit at the expense of the user.

  • This type of attack, categorized as Maximal Extractable Value (MEV), is a growing concern in the blockchain space, impacting fairness and efficiency.

The Solana network has seen a significant rise in MEV revenue, surpassing even Ethereum in May. This rapid rise has attracted malicious actors seeking to exploit users.

By removing these validators from the delegation program, the Solana Foundation aims to discourage such practices. The delegation program provides SOL token delegations to validators, essentially subsidizing their operations. Losing this support can be a significant penalty.

However, the move has also sparked debate within the Solana community. Some argue that the foundation's action highlights the centralized nature of the network.

Blockchain could boost Australia’s economy by $60 Billion, says Australian MP

Key points:

  • Australian politician Andrew Charlton sees blockchain as a solution to stagnant productivity growth.

  • Charlton believes blockchain can revolutionize various sectors beyond its own.

News - Australian Parliament Member Andrew Charlton is advocating for increased blockchain adoption in the country, believing it could significantly contribute to economic growth and reverse sluggish productivity.

Speaking at Australia's Blockchain Week 2024, Charlton highlighted the nation's stagnant productivity figures, with labor productivity rising by a mere 0.9% in the final quarter of 2023.

He argued that historical advancements like air travel and the internet fueled economic growth, and blockchain has the potential to follow suit.

What’s more? Charlton sees blockchain's impact extending beyond its own industry, potentially revolutionizing sectors like healthcare record management, tax collection, real estate, and even voting.

He emphasized its ability to improve supply chain transparency and financial transaction processing by streamlining processes and reducing intermediaries.

However, Charlton expressed frustration with the Australian government's slow progress in developing regulations for digital assets. He stressed the need for a framework allowing businesses to hold digital assets similarly to traditional assets. Thus, positioning Australia as a leader in responsible digital asset innovation.

Ethereum supply crunch looms as exchange reserves drop to 8-year low

Key points:

  • Spot ETF launch expected to drive buying frenzy for Ether in the near-future.

  • Technical indicators suggest possible price correction after the initial surge.

News - ETH is setting the stage for a potential price explosion, with several indicators suggesting a bullish outlook. Interestingly, the ever-decreasing amount of ETH held on exchanges is currently at its lowest point in eight years. This significant supply squeeze, coupled with the imminent launch of spot ETFs, could trigger a dramatic rise in prices.

Analysts predict that a surge of interest in these ETFs could lead to an initial buying frenzy, rapidly driving up the price of Ether. However, this might be followed by a period of correction as the market adjusts to the new supply and demand dynamics.

What do the technical indicators hint at? While technical indicators like the current price being below key moving averages suggest a bearish trend, other factors paint a more optimistic picture. At press time, the Relative Strength Index (RSI) sat comfortably at the 43-mark (above the oversold territory), indicating there's room for a potential price rebound before a significant decline.

On-chain metrics support bulls - Furthermore, a healthy 89% of Ethereum holders are currently in profit, signifying a strong market sentiment. Additionally, the massive concentration of ETH held by whales (51%) and the high volume of large transactions exceeding $100,000 point towards significant institutional and investor interest in Ethereum.

The recent decline in the MVRV ratio suggests that Ethereum might be entering a period of fair valuation or even slight undervaluation. This trend could pave the way for a more sustainable price increase in the long run.

Interesting facts

  • Solana’s monthly DEX volume climbed to an all-time high of $60 billion in March 2024. This represented a 172% uptick from the $22 billion recorded in DEX volume in February. The surge in trading volume across DEXes on Solana in March was due to the significant interest in meme coins during that period.

  • Over 15,000 companies worldwide accept Bitcoin as a payment method. Out of these 15,000, over 2000 of these companies are based in the United States.

  • To mine one Bitcoin, you would need 9–13 years of household electricity. This is because the process of creating BTCs to spend or trade consumes around 91 terawatt-hours of electricity annually.

Top 3 coins of the day

Tron (TRX)

Key points:

  • Out of the top 20 coins, TRX was among the few that registered positive gains over the past week.

  • However, its Open Interest has been falling gradually after 3 June.

What you should know - Tron started 2024 with a rise as more people bought it at a low price. With a high amount of trading activity and positive sentiment, Tron hit a local high of $0.14422 on 27 February. However, many traders sold their holdings to take profits at this point. Thus, causing the price to fall to $0.10569 in 51 days, a drop of 26.74%. Eventually, demand increased, pushing Tron back up to the range of $0.12324-$0.12875. But it fell again soon after, trading at $0.11703, at the time of this writing. If buyers keep up their momentum, the coin could reach $0.13439, but that seems less likely as the AO indicator showed weakening bullish momentum.

Injective (INJ)

Key points:

  • INJ was one of the top gainers with a price rise of 20% in the last week.

  • The technical indicators hinted at the continuation of upward momentum.

What you should know - After maintaining a price above $32 for nearly four months, INJ dropped below this level, which then turned into a resistance after serving as support. Interestingly, since 12 April, the coin has been trading in the range of $21.32 to $32.04. Buyers are trying to push the price back up to test the $32 resistance. Currently, market momentum favors INJ bulls, with demand outweighing selling pressure. The RSI indicator indicates that there's still some potential for the coin to grow further. Hence, bullish momentum may continue for a few more trading sessions before a notable pullback occurs.

Shiba Inu (SHIB)

Key points:

  • SHIB’s volatility has decreased by a significant margin in the past month.

  • The memecoin is poised for a trend reversal, as per its technicals.

What you should know - Shiba Inu hasn't been following the overall market trends like it did in March. Instead, its price has been stuck within a narrow range of $0.00002221 to $0.00002727. If the RSI drops to 30 and enters oversold territory, this sideways movement might shift momentum. In such a scenario, buyers could dominate the market as traders would rush to buy SHIB at a discount. Thus, pushing prices up to their previous peak of $0.00003285. On the contrary, if selling pressure dominates, the memecoin could visit the $0.00001830 level by the end of next week.

How was today's newsletter?

Login or Subscribe to participate in polls.