New rival emerges for Shiba Inu

September 05, 2024

Reading time: 5 minutes

Traders doubling down on Dogwifhat: Futures open interest hits new high

Key points:

  • Futures traders are increasing their positions in the Solana-based memecoin Dogwifhat (WIF).

  • The trading volume for WIF has significantly outpaced that of Shiba Inu.

News - Futures traders are increasing their bets on the Solana-based memecoin Dogwifhat (WIF), as analysts predict a possible price reversal.

Despite trading 66% below its March all-time high, the open interest in WIF futures has surged by 16% in recent weeks, reaching $231.48 million.

What about the price? The memecoin's price has been relatively stagnant, hovering below $1.90 for the past 10 days. However, some traders believe that this consolidation is a precursor to a potential rebound, with a target price of $2.40.

Analysts are pointing to a "perfect channel retest" on the WIF chart as a sign of a potential reversal. The recent surge in trading volume, surpassing even that of Shiba Inu, further supports this bullish sentiment.

While WIF has seen significant price appreciation in the past, the broader altcoin market has been relatively subdued. Many analysts attribute this to the speculative nature of altcoins and the influx of new traders who may have rushed in too early.

Bitcoin DeFi could surpass Ethereum in TVL, says developer

Key points:

  • Bitcoin DeFi TVL could surpass Ethereum's within two years.

  • The substantial amount of capital in the Bitcoin ecosystem could be a driving factor.

News - A leading Bitcoin DeFi developer believes that the total value locked (TVL) in Bitcoin-based decentralized finance protocols could soon surpass that of Ethereum.

Branden Sedo, an initial contributor to the Core DAO, highlighted the substantial amount of capital held in the Bitcoin ecosystem and the growing interest in Bitcoin sidechains as key factors driving this prediction.

What’s more? Sedo emphasized the potential for a significant portion of the trillion-dollar Bitcoin market to migrate on-chain, especially with the development of trustless bridges and roll-ups. The recent approval of spot Bitcoin ETFs has further accelerated development activity and market enthusiasm for Bitcoin sidechains.

While the collapse of platforms like BlockFi and Celsius in 2022 caused many Bitcoiners to become wary of yield-bearing avenues, Sedo noted a shift in sentiment towards non-custodial DeFi applications. The growing acceptance of Bitcoin DeFi is evident in the increasing number of users and the rising TVL on platforms like Core.

NFT market's biggest loser: Bored Ape Yacht Club faces 93% price drop

Key points:

  • Bored Ape Yacht Club NFTs have experienced a significant price decline.

  • The NFT market's broader downturn has contributed to the decline.

News - The once-coveted Bored Ape Yacht Club (BAYC) NFTs have seen a dramatic decline in value, mirroring the broader downturn in the NFT market. Once compared to luxury cars, the digital collectibles now trade at a fraction of their peak prices.

The hype surrounding BAYC reached its zenith in 2022, fueled by the anticipation of its upcoming game, Otherside. However, the NFT market has since faced significant challenges, with trading volumes plummeting and investor enthusiasm waning.

The decline in BAYC prices has been particularly steep, with a 93% drop from its all-time high. The SEC's investigation into OpenSea, a major platform for BAYC trading, has further dampened sentiment in the NFT space.

Despite a brief price surge in August, BAYC's downward trend persists, indicating that the once-promising collection has lost much of its luster. The decline of BAYC serves as a stark reminder of the volatile and speculative nature of the NFT market.

Polygon's switch from MATIC to POL faces market hiccups amid price drop

Key points:

  • Polygon's token migration has faced challenges since its completion.

  • User activity has declined and large holders have been selling their tokens.

News - Polygon's recent migration from MATIC to POL has been met with challenges, including declining user activity, selling pressure from large holders, and a muted market reaction.

Since the migration, POL has experienced a decline in price, accompanied by a surge in trading volume, indicating strong selling pressure. Many holders have been forced to sell their tokens at a loss, as evidenced by the ratio of profitable to loss-making transactions.

More details - The market's negative reaction to the token upgrade can be attributed to various factors, including uncertainty surrounding the migration process and broader market trends. The decline in user activity and selling pressure from large holders have further contributed to the downward pressure on POL's price.

The ongoing challenges faced by Polygon highlight the complexities involved in major network upgrades and the potential risks associated with such transitions. The network will need to address these issues to regain investor confidence and ensure the long-term success of its ecosystem.

Did you know?

  • 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.

  • Solana is capable of a throughput of 50,000 transactions per second (TPS). By comparison, Ethereum averages 15 TPS, with a maximum recorded speed of 62.

  • Mining dominance in Bitcoin shows how much a country or area contributes to the computer power of the network. It helps see where miners are and their impact on security.

Top 3 coins of the day

Near Protocol (NEAR)

Key points:

  • At press time, NEAR was trading at $3.80.

  • It was down by about 15.35% over the last week.

What you should know - NEAR is currently trading at $3.801, down 2.24%, reflecting ongoing bearish pressure. The price has failed to break above the resistance zone near $4.50–$5.00, which coincides with multiple key moving averages (20, 50, 100, and 200 EMAs). The downward-sloping EMAs suggest that sellers remain in control. The Chaikin Money Flow (CMF) indicator is slightly negative at -0.05, indicating mild selling pressure. For NEAR to regain bullish momentum, it must break through the resistance zone with strong volume. Conversely, if the selling pressure persists, NEAR could retest its recent low around $3.50. Overall, the outlook remains bearish unless there is a decisive move above the resistance levels with increased buying activity.

Aave (AAVE)

Key points:

  • AAVE’s value increased by 6.79% in the last 7-days.

  • Short-term bulls have been leading AAVE’s market structure.

What you should know - AAVE is currently trading at $132.31, down 2.19%. The price had been in a short-term uptrend, moving from $110 to above $140, before facing resistance. AAVE has now retraced slightly but remains above a critical support zone around $110. The Relative Strength Index is at 55.51, suggesting neutral momentum, with neither overbought nor oversold conditions. For AAVE to continue its upward trajectory, it needs to maintain support above $110 and break past the recent highs near $140. A move below $110 could indicate further downside risks.

Helium (HNT)

Key points:

  • Helium was defying the broader market bearishness.

  • I was up by about 10.80% over the past week.

What you should know - Helium is currently trading at $8.250, up by 6.15%, reflecting strong bullish momentum. The price has surged by 77.70% from its recent low around $4.60, breaking through the resistance at $7.10. The Bollinger Bands are expanding, indicating increased volatility, with the price trading near the upper band, suggesting strong buying interest. The MACD shows a bullish crossover with the MACD line above the signal line, reinforcing the upward momentum. A sustained move above $8.00 could open the door for further gains toward the next resistance around $9.00. However, if HNT fails to hold above $8.00, it may consolidate or retrace toward the support level at $7.10.

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