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- Polygon to defeat Polkadot
Polygon to defeat Polkadot
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Bitcoin ETFs see massive volume surge, but retail interest remains subdued
Key points:
Bitcoin ETFs see a $6.94 billion surge in combined volume.
The ETF surge may not directly affect Bitcoin's supply or price.
News - The recent performance of Bitcoin ETFs has showcased the highest daily trading volume since their approval by the SEC in January. However, the surge may not impact BTC's demand and supply curve as investors aren't directly purchasing and holding the coin.
Behind the scenes - Eric Balchunas, a senior analyst at Bloomberg, highlighted that HODL's trading volume surged to 14 times its usual average. This surge involved trades by approximately 32,000 individuals, indicating a substantial uptick in participation. While it's unconfirmed, the number of participants hints that VanECK, a major issuer, may have expanded its offering to additional platforms.
However, as investors are not directly purchasing and storing the coin, the hike may not impact Bitcoin's demand and supply curve. Though there was an increase in Bitcoin search trends, the level of retail demand seemed insufficient to drive significant price movements. This suggests that Bitcoin is currently less popular among retail investors compared to previous periods, potentially influencing its price dynamics.
What’s more on the price front? As Bitcoin nears its previous all-time high (ATH), investors should consider key factors shaping its future. Institutional investors owning a lot of Bitcoin might make it hard for the price to go above $69,000. However, investors should prepare for potential distribution periods, during which BTC's price may dip below $51,000. But if more people start buying Bitcoin and using it, things could change.
Montenegro court approves extradition of Terra CEO Do Kwon to the U.S.
Key points:
A High Court of Montenegro has given a green signal for the extradition of Do Kwon.
The collapse of Terraform Labs reflects the need for global efforts against cryptocurrency fraud.
News - Montenegro’s Podgorica High Court has granted the extradition of Do Kwon, involved in legal battles following the collapse of his cryptocurrency empire in May 2022. Kwon's arrest in Montenegro, on charges of possessing falsified documents, has further complicated his case.
What’s cooking? Terraform Labs, renowned for its groundbreaking yet volatile crypto projects, witnessed a dramatic downfall. This sent shockwaves across the global financial market and highlighted the inherent risks associated with digital currencies.
Notably, The Podgorica High Court's decision signifies a crucial step in addressing the legal aftermath of one of the most notable collapses in cryptocurrency history. Additionally, this also underscores the imperative for regulatory efforts to protect investors in the rapidly evolving crypto landscape.
What’s more to it? Kwon's legal challenges include allegations of fraud, mismanagement, and other financial irregularities that led to the downfall of Terraform Labs. These allegations prompted legal action both in Montenegro and the United States. All in all this extradition further underscored the collaborative efforts between nations to enforce financial regulations and combat fraud.
MATIC inches closer to flipping DOT in the market cap race
Key points:
Polygon’s market cap spiked to $9.17 billion nearing Polkadot’s market cap of $9.39 billion.
MATIC and DOT had contrasting market sentiments during the time of this report.
News - At press time, Polygon (MATIC), was positioned as the 14th most valuable cryptocurrency and was on the verge of surpassing Polkadot (DOT) in value. The performance differences indicate that the demand for MATIC may be twice as high as for DOT.
The entire story - With growing interest in MATIC, there's potential for DOT to face some setbacks. Market capitalization, determined by price and circulating supply, plays a crucial role in this comparison.
At the time of writing, DOT's price stood at $7.50, while MATIC was trading at $0.96, with both experiencing significant price surges in the last month. While Polkadot has excelled in development activity, that hasn't always translated into better price action, as evidenced by differences in sentiment analysis between the two.
Will this bull run sustain? MATIC's bullish sentiment suggests a possible increase in buying pressure, potentially leading to a shift in market dynamics. Moreover, the increase in the number of MATIC holders and active addresses underscores the growing confidence in the token's long-term prospects. However, fluctuations in active addresses on the Polygon network imply a need for DOT to remain vigilant as MATIC continues to gain momentum. If demand for DOT doesn't increase, there's a possibility of a position swap between the two projects.
Greg Solano makes comeback as Yuga Labs CEO amid rising interest in Bored Ape NFTs
Key points:
Solano's return as CEO signals positivity for Yuga Labs advancing metaverse and web3.
Yuga Labs' NFT collections witnessed over 13% surge, signaling investor confidence.
News - Greg Solano's return as CEO of Yuga Labs, coincided with a surge in the company's NFT collections, particularly the Bored Ape Yacht Club (BAYC), which saw a price floor increase of over 13%. Before this resurgence, these collections were declining near long-term lows due to reduced public interest in NFTs. However, Solano's return injected renewed optimism, sparking a positive market reaction and signaling a notable shift in Yuga Labs' trajectory.
More details - Greg’s leadership comes with a promise of revitalizing the company's focus on the rapidly evolving world of web3 and NFT innovation. His emphasis on a "cryptonative focus" suggests a strategic shift towards leveraging blockchain technology more effectively across all facets of the company's operations. This includes empowering the BAYC team to operate with greater autonomy and flexibility, as well as exploring opportunities to enhance user experiences in the web3 metaverse, such as the Otherside platform.
What does it reflect? The positive market response to Solano's appointment underscores investor confidence in his ability to steer Yuga Labs toward sustained growth and innovation. The surge in the value of Yuga Labs' NFT collections, particularly BAYC and its sister project Mutant Ape Yacht Club, reflects the renewed optimism surrounding the company's future under Solano's leadership.
More stories from the crypto ecosystem
Interesting facts
El Salvador, under President Nayib Bukele's Bitcoin Law, made history by becoming the first country to adopt Bitcoin as legal tender on September 7, 2021.
On average, Ethereum handles 1.1 million transactions per day, reflecting its widespread usage and popularity in the cryptocurrency ecosystem.
Mining for one Bitcoin demands a substantial amount of electricity, equivalent to 9 to 13 years of typical household electricity consumption which is due to its Proof of Work consensus mechanism.
Top 3 coins of the day
Litecoin (LTC)
Key points:
Despite the price hike, negative sentiment around LTC remained high.
The recent price surge indicates an upcoming bullish market trend.
What you should know - Litecoin (LTC) stood out in the current market as one of the coins experiencing significant liquidity compared to others witnessing price surges. At press time, it was trading at $69.49, reflecting a 2.30% increase in the last 24 hours. However, a look at Litecoin’s daily chart flagged a bearish signal. Even so, its Relative Strength Index (RSI) after falling below the 50 mark was again gaining momentum, at press time. If the demand kicks in, the price could go up near the resistance level of $73.19. But the likelihood of that looked weak, at the time of reporting.
Chainlink (LINK)
Key points:
LINK is likely to fall below the immediate support level of $17.
The token’s price has gone down after maintaining an upward momentum for the majority of last month.
What you should know - After the bullish momentum in the first week of February, LINK saw bearish pressure kicking in. At press time, it was priced at $18.53, marking a decrease of more than 0.32% over the past day. Technical indicator MACD indicated a bullish trend in the first week of February, however, it saw a bearish divergence over the last week. Fear dominated the LINK market as sellers were seen cutting losses. Meanwhile, volume saw a healthy growth. Should the selling pressure persist, the coin might face a bearish breakout, potentially dropping below the immediate support level at $17.63.
Bitcoin Cash (BCH)
Key points:
BCH’s price fell considerably but it still had a chance for a bull run.
The two oscillators indicated strong bearish momentum.
What you should know - Many alternative cryptocurrencies are facing downward pressure in the short term, and Bitcoin Cash (BCH) is no exception. It dropped by over 0.21% in the last 24 hours. Currently trading at $260.46, with a market cap of $5.1 billion, BCH appears to be under sellers’ dominance. At press time, the technical indicator Volume Oscillator (VO) showed a decline in trading activities, as it remained below the zero line. The Awesome Oscillator (AO) also hinted at a bearish momentum with red candlesticks above the middle line. However, in case of unprecedented buying pressure entering the market, BCH could certainly go up to $280 with swing traders booking profits along the way.
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