Polkadot's magic moments

April 26, 2024

Reading time: 5 minutes

Polkadot activity slumps: Transaction volume drops 90% since January

Key points:

  • Polkadot's transaction volume on the Relay Chain and parachains is set to hit a YTD low in April.

  • The network is experiencing a significant drop in user activity.

News - Polkadot is facing a significant decline in transaction volume across its Relay Chain and parachains, with April poised to be its weakest month yet in 2024.

As of 26 April, the total volume sat at a meager $400 million, a stark contrast to the $916 million recorded in March. This represented a staggering 56% drop.

Reason behind the decline?

  • This decline can be attributed to a significant drop in user activity across the network. The Block's data showed a 43% decrease in the number of unique addresses interacting with the Relay Chain (as senders or receivers) over the past month.

  • New user acquisition also took a hit. The number of unique addresses appearing for the first time on the network this month was a mere 44,000, reflecting a 60% decrease compared to March's 112,000.

Similarly, new user demand for parachains has plummeted. Just 101,000 new addresses have interacted with these networks in the past month, compared to a robust 1.52 million in March. This raises concerns about the network's current state and its potential for future growth.

Pantera Capital aims to raise over $1B for new blockchain fund

Key points:

  • Pantera Capital is raising over $1 billion for a new fund (Pantera Fund V) launching in April 2025.

  • This "all-in-one" fund offers exposure to a wide range of crypto assets, unlike Pantera's existing, specific funds.

News - Digital asset investment giant Pantera Capital is reportedly seeking over $1 billion for a new fund, Pantera Fund V. Launching in April 2025, this "all-in-one" fund will offer investors exposure to a broad spectrum of blockchain assets, unlike Pantera's existing, more specific funds.

The minimum investment for qualified participants is $1 million, with a first closing date set for 1 April 2025. Additionally, limited partners will need to contribute at least $25 million. Pantera Fund V will invest in startup equity, early-stage tokens, and liquid tokens.

What’s more? This potential $1 billion raise would be the cryptocurrency industry's largest since May 2022, surpassing Andreessen Horowitz's record-breaking $4.5 billion venture capital fund.

Overall, 2024 has seen over $3.5 billion invested across 604 cryptocurrency funding rounds so far. This trend suggests potential growth exceeding 2023's $9.3 billion by a significant margin. However, venture capital funding in the crypto space remains below 2021's $31.2 billion and 2022's $29.3 billion highs.

Akash Network token (AKT) sees price volatility following Upbit listing

Key points:

  • Akash Network's token price initially surged over 50% after its listing on Upbit.

  • However, the price rally was short-lived as the token dwindled soon after.

News - Akash Network's token (AKT) experienced a price drop following a short-lived surge. The decentralized cloud computing platform's token initially rallied over 50% after its listing on Upbit (South Korea's leading cryptocurrency exchange).

The price peaked at $7 during this period. However, the euphoria proved fleeting. As of press time, AKT was trading at $4.72, reflecting a 4.39% decline in the last 24 hours.

What do the metrics suggest? Social media activity surrounding the token surged significantly in the past 24 hours. This indicated a rise in online discussions about the project, with positive sentiment outweighing negative comments.

Furthermore, developments within the ecosystem has influenced market sentiment positively. The number of core developers working on the network has increased, accompanied by a surge in code commits.

In conclusion - Ongoing developments within the Akash Network ecosystem signal potential for future growth and may influence the trajectory of the AKT token in the long term.

UK law enforcement empowered to seize crypto without arrest

Key points:

  • Law enforcement can now seize cryptocurrency without prior arrests.

  • Authorities can transfer seized crypto to government wallets or, in some cases, permanently destroy the assets.

News - UK law enforcement agencies have gained new powers to seize cryptocurrency used in criminal activities. Under the new rules, police are no longer required to make arrests prior to confiscating crypto assets, streamlining the process of asset seizure.

These regulations stem from a crime bill passed by the UK Parliament last year, aimed at expediting the seizure of cryptocurrencies.

More details - The UK has already established a network of crypto tactical advisors across the country and has a history of seizing crypto assets. In January, a joint operation with the US Drug Enforcement Administration netted $150 million in cash and crypto from a drug trafficking ring.

Law enforcement officers now have the authority to transfer confiscated cryptocurrency to a wallet controlled by their agencies. Moreover, if returning seized assets to circulation poses risks to public safety, authorities are empowered to destroy the cryptocurrency.

Privacy coins serve as an example of assets that may be subject to destruction. Thus, reflecting the government's commitment to enhancing national security.

Crypto Scams Uncovered

  • The Blast ecosystem saw a $1.3M rug-pull on RiskOnBlast project. This project was said to be a gambling and exchange platform that raised $1M from investors in a seed round the week before the rug pull.

  • AnubisDAO, the dog-inspired DeFi project, raised 13,556 ETH from investors in October 2021. Just 20 hours into the “fundraising”, the project rug pulled by sending funds to different wallets, leaving investors in the mud.

  • Developer of the Mutant Ape Planet nonfungible token (NFT) Aurelien Michel, pleaded guilty in U.S. Federal Court to an international scheme to defraud buyers and agreed to pay $1.4M in forfeiture. He also faced five years in prison. The Mutant Ape Planet NFTs amassed close to $3 million before Michel, posting under the pseudonym “James”, admitted to the rug pull in the community’s Discord channel.

Top 3 coins of the day

XRP

Key points:

  • XRP's price action remained underwhelming and bears dominated the monthly chart.

  • However, on the lower timeframe, the coin saw demand incoming.

What you should know - After a rally in March, the coin started consolidating come April. On 12 April, the market saw unprecedented sell pressure, which took the altcoin to $0.4228 in two days. However, buyers came to the rescue and pushed prices upwards. At press time, the coin was trading at $0.5221 with an increase of 4.25% over the past week. The RSI stood at the 42 mark, but it has been below neutral 50 for most of April. This hinted at the bearish bias in the market. In the coming days if market developments favor XRP, it will rise to its resistance zone within the $0.6534-$0.7165. 

Hedera (HBAR)

Key points:

  • On the speculation of Blackrock's involvement with Hedera, HBAR saw a rally of almost 100%.

  • But as soon as BlackRock confirmed it has “no commercial relationship” with Hedera, its token fell by 32%.

What you should know - Hedera, at press time, was noticing bulls' dominance, trading at $0.1134 after a surge of 36.39% in the last 7-days. However, despite the impressive gains, caution might be warranted. Technical indicators like MACD hinted at a potential bearish divergence, suggesting a price drop could be imminent. Further downside is possibly limited by the near-term support level at $0.883, which could act as a buffer if the price falls. The overall market sentiment leaned towards fear at the time of writing, which could further dampen investors’ enthusiasm.

Monero (XMR)

Key points:

  • XMR’s volume in the derivatives market was down by about12.16% over the last day.

  • Its OI weighted Funding Rate has remained in the positive territory after 22 April.

What you should know - XMR was stuck in a holding pattern, trading below its crucial 50-day SMA line. This SMA is acting as resistance, preventing any significant price gains. The coin has been confined within a narrow trading range for the past sixteen days, highlighting the indecision in the market. Further adding to the resistance is the $131 level, which appears to be a strong barrier for XMR. Until a decisive break above these resistance points occurs, a continued sideways trend or even a potential price dip is likely.

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