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- Major boost for Cardano
Major boost for Cardano
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Solana’s recent meme coin craze has pushed key on-chain metrics to new highs
Key points:
The meme coin hype on the Solana network has pushed its user activity to multi-year highs.
SOL now trades at its highest price level since 2021.
News - The recent hype around Solana-based meme coins has pushed user activity on the network to new highs. This has also contributed to a 43% spike in SOL’s value, causing it to exchange hands at a three-year high.
Some of the new meme coins are responsible - In the past few days, the Solana network witnessed the launch of some new meme coins, the values of which rose significantly within a short period of time.
For example, the frog-themed meme coin Book of Meme [BOME] was launched on the 10th of March. By 14th March, the asset’s market capitalization had rallied above $1.45 billion.
Another meme coin that led to a significant uptick in activity on Solana was Nap [NAP]. Due to the surge in trading volume, the asset’s market capitalization went from around $20 million to over $300 million in under 18 hours.
User activity on Solana skyrockets - As degens began to pile in on the various meme coins on the Solana network, the daily count of active addresses on it rallied. By the 16th of March, the number of unique addresses that signed at least one transaction across Solana reached a three-year high of $1.2 million.
Further, the network witnessed an increase in new demand. The daily count of new addresses created on Solana assessed on a seven-day moving average rose to a high of 870,000 addresses by 16th March. This marked an 88% rally in new demand for Solana since the beginning of the year.
The growth in user activity on the chain drove its total transaction fees to an all-time high of $3.83 million, or 20,350 SOL, on 16th March.
Cardano finally welcomes its first fiat-backed Stablecoin
Key points:
Layer 1 (L1) network Cardano sees the launch of its first fiat-backed Stablecoin.
According to the Stablecoin’s developers, the delay was due to the issues with U.S. banks in 2023.
News - Cardano has seen the launch of its first fiat-backed Stablecoin, the Mehen token (USDM). This comes two years after the network launched its first synthetic-based Stablecoin, iUSD, and a year after the algorithmic Stablecoin, DJED, went live on its mainnet.
Why did Cardano’s first fiat-backed Stablecoin take so long? - According to the developers of the Mehen Finance-founded Stablecoin, the delay in the eventual launch of USDM on Cardano was due to the issues faced by U.S. banks in 2023.
In a recent spaces session on X (formerly Twitter), Matthew Plomin, a founding partner at Mehen Finance, noted that the plans to launch the Stablecoin in 2023 were disrupted when major banks such as Silicon Valley Bank, Silvergate, and Signature Bank closed their doors in March 2023.
Additionally, Mehen's banking partner, Cross River, severed ties with them after it partnered with Circle, the owners of USD Coin (USDC) when it sought a new banking partner.
Plaid offered a way out - Mehen eventually snagged a partnership with fintech firm Plaid to facilitate the minting and burning of U.S. dollars for USDM. Cardano users will seamlessly deposit USD to mint USDM through Plaid and vice versa.
USDM primed for widespread adoption - Plomin confirmed that over 2000 partners currently seek to incorporate USDM into their platforms, spanning a variety of services such as lending and borrowing protocols and decentralized exchanges (DEXes). In a post on X, Mehen highlighted that institutions can expect the onboarding process to be finalized within one to two days.
Ethereum’s supply craters to a two-year low, sparking bullish sentiment
Key points:
Ethereum’s circulating supply has fallen to a two-year low.
This comes amid the surge in demand for the network.
News - Ethereum’s circulating supply has dropped to its lowest level since August 2022. At 120.07 million ETH at the time of writing, the leading altcoin’s circulating supply was at its lowest level since the network transitioned from Proof-of-Work (PoW) in an event referred to as “The Merge” 548 days ago.
The network’s DeFi and NFT sectors benefit - The decline in ETH’s circulating supply is often due to a surge in activity on the network, which results in an uptick in the coin’s burn rate. On-chain data revealed that ETH’s supply has been diminishing at its fastest rate since May 2023. In the past 30 days, the coin’s supply has fallen by 0.872% per year.
This signified that the last 30 days have seen a significant rise in activity on the Ethereum network. This rise was evident in the growth witnessed in the network’s DeFi TVL and NFT sales volume. In the last month, Ethereum’s DeFi TVL rose by 33%. Likewise, NFT sales volume on the network climbed by 15%.
Demand for ETH falls amid general market correction - Despite the surge in demand for the Ethereum network, its coin has seen increased sell-offs due to the general decline in the market. Its price performance, assessed on a daily chart, showed that the bears had regained market control.
Readings from its Moving average convergence/divergence (MACD) showed that the MACD line crossed below the signal line on 14th March and has since trended downward. This kind of downward intersection suggests a potential shift in momentum toward the downside. Traders often interpret this as a signal to consider selling positions or taking bearish positions in anticipation of further price declines.
Bitcoin’s recent price correction “healthy,” Crypto.com CEO claims
Key points:
According to Crypto.com CEO, BTC’s recent price decline below $70,000 is “healthy”.
He added that Bitcoin ETFs have been widely successful in terms of demand.
News - In a recent interview with CNBC's Squawk Box, the CEO of Crypto.com (a crypto exchange), Kris Marzsalek, stated that BTC’s recent price decline is a healthy one.
Removal of built-up leverage - According to Marszalek, BTC’s recent decline from an all-time high of over $73,000 to around $65,000 on the 14th of March was a healthy adjustment needed to remove built-up leverage in the market.
This means that Marszalek believes that price corrections such as this are a necessary evil to mitigate excessive speculation and ensure a healthier long-term trajectory for digital assets. Instead of aggressive price spikes, Marszalek opined that a more gradual influx of capital into the BTC market would facilitate a sustained bull run lasting between 12 to 18 months.
Bitcoin ETFs are a successful product - Commenting on the impact of the new spot exchange-traded funds on BTC’s price, Marszalek stated that the recent rally in the coin’s price has been primarily driven by by the inflows from the Bitcoin ETFs. According to the crypto exchange CEO, Bitcoin ETF is a successful product. This can be gleaned from the huge USD inflows recorded daily. As of 12th March, net spot Bitcoin ETF inflows rallied above $1 billion.
More stories from the crypto ecosystem
Did you know?
For the first time since December 2021, Solana has crossed the $200 price mark.
After Ethereum’s Dencun Upgrade went live on the 13th of March, transaction fees on leading Layer 2 (L2) platforms dropped by over 90%.
48% of Bitcoin’s realized capital is held by its short-term holders. The coin’s realized capital measures the total value of all Bitcoin based on the price when they were last moved on the blockchain rather than the current market price.
Top 3 coins of the day
Dogwifhat (WIF)
Key points:
WIF’s value has gone up by over 500% in the last month.
Bullish sentiment permeates the market as demand for the meme coin climbs.
What you should know - The price of Solana-based meme coin WIF has risen by 593% in the last month. During that period, the coin clinched an all-time high of $3.53, after which it dropped by 19%. Despite the decline, momentum indicators observed on a daily chart continued to spike, suggesting that the demand for WIF remains high. For example, the token’s accumulation/distribution line (ADL), which measures the cumulative flow of money into or out of it, has risen by 7% since WIF initiated a decline from its all-time high on the 15th of March. When an asset’s ADL rises in this manner, it suggests that its accumulation outpaces distribution.
Render (RNDR)
Key points:
RNDR rallied to an all-time high of $13.60 on the 17th of March.
Sentiment remains bullish as price trends above the Parabolic SAR indicator.
What you should know - RNDR climbed to an all-time high of $13.60 during the intraday trading session on 17th March before experiencing a minor pullback. Trading at a 5% decline since then, the token exchanged hands at $13.13 at the time of writing. RNDR Aroon Up Line (orange) was 92.86%, confirming the current market trend's strength. When an asset’s Aroon Up line is close to 100, it indicates that the uptrend is strong and that the most recent high was reached relatively recently. Also, RNDR’s price was above its Parabolic SAR indicator. This indicator determines perfect exit and entry positions in the market. When it rests below an asset’s price, it suggests that the bullish momentum is strong and the price is likely to continue rising.
Avalanche (AVAX)
Key points:
AVAX currently trades at a 34-month high of $61.29.
Key volatility markers show that the coin may experience price swings.
What you should know - The surge in AVAX’s value in the last month has made it prone to price swings in the short term. This is based on readings from the token’s key volatility markers observed on a daily chart. For example, AVAX’s Average True Range (ATR) has increased by 150% since the beginning of the month. This indicator measures market volatility by calculating the average range between high and low prices over a specified number of periods. When it rises like this, it signals an uptick in market volatility. The widening gap between the upper and lower bands of AVAX’s Bollinger Bands confirmed this. When this gap expands, it signifies increased volatility in the price of the underlying asset.
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