- Unhashed Newsletter
- Posts
- NFT market in freefall
NFT market in freefall
Reading time: 5 minutes
Bitcoin nears $70,000 as Trump proposes strategic Bitcoin reserve
Key points:
Bitcoin neared $70,000 following Trump’s Bitcoin-centric political plans.
BCH surged over 10% with the completion of Mt. Gox token distributions.
News - On Monday, Bitcoin nearly hit $70,000 for the first time since early June, thanks to recent U.S. political news. Republican presidential candidate Donald Trump has proposed making Bitcoin a national strategic asset if he wins in November.
His plan involves removing SEC Chair Gary Gensler, creating a Bitcoin reserve, and stopping the sale of U.S. Bitcoin holdings. Trump believes Bitcoin could become as valuable as gold. He further compared its future importance to that of the steel industry a hundred years ago.
This announcement had a big impact on the crypto market. Bitcoin Cash (BCH) and BRETT, a new memecoin on the Base blockchain, saw significant gains. BCH jumped over 10% after Mt. Gox finished distributing its tokens to creditors.
Solana’s SOL also rose by 6%, leading among major cryptocurrencies. Binance Coin (BNB), Ethereum (ETH), and XRP all saw smaller gains between 2% and 5%.
Bitcoin’s price increase caused $13.8 million worth of Bitcoin short positions and $11.4 million worth of Ethereum short positions to be liquidated. Early fears that BCH might suffer from Mt. Gox’s redemptions turned out to be unfounded, as the market responded positively.
Ronin network tops daily active users with 2M, outpaces Tron and Solana
Key points:
Ronin surpasses Tron and Solana in daily active users.
Mavis Market, RON listing, and Pixels integration drive growth.
News - The Ronin network has made significant strides in the blockchain gaming space, surpassing both Tron and Solana in daily active users (DAU). According to data from Token Terminal, Ronin boasts an impressive two million daily active users, a testament to its growing popularity.
This surge in user activity can be attributed to several factors. The launch of Mavis Market, Ronin's NFT marketplace, and the listing of the RON token on Binance have significantly boosted the network's visibility.
Additionally, the integration of popular Web3 game Pixels has also contributed to the user influx.
Ronin's ecosystem is rapidly expanding, with a portfolio of 15 playable games and a community of over 12 million RON holders. To accommodate future growth and enhance security, the network is developing Ronin zkEVM, a layer-2 solution capable of handling billions of transactions.
As Ronin continues to evolve, its focus on gaming and scalability is positioning it as a strong contender in the blockchain industry.
Ethereum ETF launch fuels $2.2 Billion inflows, reports CoinShares
Key points:
Spot Ether ETFs have attracted $2.2 billion in inflows.
Bitcoin has seen $3.6 billion in inflows over the past month.
News - The recent launch of spot Ether exchange-traded funds (ETFs) in the United States has triggered a massive influx of capital into the cryptocurrency market. CoinShares reports a staggering $2.2 billion in inflows into newly issued Ether ETFs, marking one of the largest investments in the asset since December 2022.
This surge in Ether interest comes alongside a broader bullish sentiment in the crypto market. Bitcoin, for instance, has attracted $3.6 billion in inflows over the past month, pushing the year-to-date total to a record-breaking $19 billion. Analysts attribute this to factors like the upcoming U.S. elections, potential Bitcoin adoption as a strategic reserve asset, and renewed investor confidence due to anticipated interest rate cuts.
While the Ether ETF launches have been a major catalyst, the overall digital asset market has also witnessed significant growth. Total assets under management have climbed to $99.1 billion, and trading volumes reached an all-time high in May.
However, it's worth noting that Grayscale's Ethereum Trust has experienced substantial outflows, with over $1.5 billion withdrawn since the spot Ether ETFs debuted.
NFT sales plummet to a nine-month low, but transaction volumes rise
Key points:
NFT sales volume plummeted to its lowest level since November 2023.
NFT transactions increased by 73% in July despite lower sales.
News - The NFT market is experiencing a significant downturn, with July set to mark the lowest monthly sales volume since November 2023. Data from CryptoSlam reveals that the asset class has been on a downward trajectory since the second quarter, with a steep 45% decline compared to the previous quarter.
Despite the slump in sales, the number of NFT transactions has surged by 73% in July compared to June. This discrepancy suggests a shift in market activity, with smaller transactions becoming more prevalent.
While the current figures may be discouraging, industry experts remain optimistic about the long-term prospects of NFTs. They believe that the market is undergoing a transformation, with certain use cases, such as profile pictures (PFPs), reaching their peak. However, they anticipate the emergence of new and innovative applications that will drive future growth.
As the NFT landscape evolves, it is clear that the asset class is far from dead. While the current market conditions may be challenging, the potential for NFTs to revolutionize various industries remains intact.
More stories from the crypto ecosystem
Did you know?
In the United States, people making over $100,000 annually constitute over 25% of all crypto-holders, but only 15% of the general population.
Over 21K cryptocurrencies have entered circulation since Bitcoin’s inception.
According to Digiconomist, one BTC transaction’s carbon footprint is equal to over 760K Visa transactions.
Top 3 coins of the day
Polkadot (DOT)
Key points:
DOT’s long/short ratio increased over the last few days.
Discussions about DOT have surged on social media platforms.
What you should know - Polkadot (DOT) has been trading within a narrow range of $5.41 to $6.73. A break above $6.73 could potentially push the price toward the $8.40 resistance level, according to AMBCrypto’s analysis of Hyblock Capital’s data. This bullish scenario suggests that if market sentiment shifts positively, DOT might soon test this higher resistance. Conversely, if the bearish trend persists, the price could decline to the $5.6 to $5.5 range. Currently, DOT is trading at $5.80, reflecting a significant decline of 51.52% from its peak of $11.90 reached on 14 March. Interestingly, RSI at the 44 mark hints there’s more room for growth.
XRP
Key points:
At press time, XRP was trading at $0.6088.
The bulls had an upper hand with close to a 2% gain.
What you should know - Despite a prevailing bearish market sentiment, XRP has managed to post a 2% increase over the last day. Following a significant 52% rally from 8 July to 17 July, XRP has established $0.5731 as a key support level. Cryptoquant data highlights a declining XRP supply, which creates scarcity and potentially boosts demand and value. However, this upward momentum could face headwinds as the MACD indicator is on the brink of a bearish crossover. This technical signal suggests that XRP might encounter downward pressure in the near term. Traders should monitor these factors closely, as the interplay between supply constraints and technical indicators could influence XRP's short-term price direction.
Solana (SOL)
Key points:
Solana’s network activity has increased substantially.
Buyers have been dominating SOL’s market structure.
What you should know - Solana (SOL) has experienced a robust 47.18% rally over the past 20 days, indicating strong bullish control. Should this momentum persist, SOL could potentially rise to $202. Network activity has notably improved, with significant gains in total value locked (TVL) and stablecoin inflows. Artemis data reveals a surge in daily active addresses, exceeding 2.2 million in July—a level last seen in March when SOL peaked at $210. However, if bullish momentum falters, SOL might retrace to the $154 support level. Currently, the Awesome Oscillator supports the likelihood of continued bullishness, suggesting that positive price movement could persist if the trend remains favorable.
How was today's newsletter? |