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Shiba Inu's downfall
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Key points:
SHIB’s value has dropped by 15% in the past month. At press time, the leading meme coin was trading at $0.000009186.
Shibarium has continued to see a drop in its network activity.
News - Shiba Inu's Shibarium, the Layer 2 (L2) network, has faced a discernible downturn in user activity since the start of the year, as outlined by on-chain data from Shibariumscan. Metrics monitoring user engagement within the L2 ecosystem have consistently shown a downward trajectory since the onset of January, sparking apprehension among investors and enthusiasts alike.
As per the data provider, the daily tally of active addresses completing transactions on Shibarium reached an unprecedented low of 608 addresses on January 25th, signifying a notable slump in user involvement. Examining the year-to-date metrics, the daily active addresses on Shibarium have experienced a substantial 41% reduction, indicative of a contracting user base.
What about its demand? Significantly, the demand for Shibarium has seen a decline in the past month, with the daily creation of new addresses plunging by 83% over the last four weeks. Consequently, the L2 network has witnessed a sharp decrease in the number of new transactions. On January 27th, the daily new transactions on Shibarium amounted to 2.65 million, marking a substantial 66% decrease from the 7.84 million transactions reported a month prior.
Any implications? Well, the diminishing user activity and dwindling transaction volume have directly influenced the cost associated with completing transactions on the network. Shibariumscan data reveals that L2 users have been exempt from paying any BONE since December 27th, underscoring a noteworthy reduction in the average transaction cost.
Hong Kong SFC welcomes first-ever application for spot Bitcoin ETF
Key points:
Following the approval of a spot Bitcoin ETF in the United States, Hong Kong is poised to pursue a similar path.
Ten financial institutions in the region are gearing up to submit applications for the launch of Bitcoin ETFs.
News - Hong Kong's crypto ambitions take a major leap forward with the arrival of the city's first-ever spot Bitcoin exchange-traded fund (ETF) application. Just weeks after the United States greenlit its own spot BTC ETF, Harvest Hong Kong, a subsidiary of one of China's largest fund managers, has submitted its proposal to the Hong Kong Securities and Futures Commission (SFC).
What’s the most interesting point? The report suggests at least 10 financial institutions across the region are eager to join the fray, with some like Venture Smart Financial Holdings aiming for a first-quarter launch. Industry giants like Samsung Asset Management, already established in Hong Kong's futures-based crypto ETF space, haven't ruled out venturing into spot territory either.
Hong Kong's regulators seem keen to ensure a fair and vibrant market, potentially echoing the U.S. SEC's approach of approving multiple spot ETFs. This could pave the way for a diverse landscape of options for investors, both institutional and retail, who gained legal access to crypto activities in 2023 thanks to the SFC's progressive regulatory framework.
In conclusion - This development holds significant implications for both the local economy and the broader cryptocurrency market. Increased access to Bitcoin through ETFs could attract fresh capital and boost investor confidence, potentially fueling further growth for the burgeoning Hong Kong crypto scene.
Maker Co-founder dumps $4.5M in MKR, raising eyebrows in DeFi community
Key points:
In a shocking move, Maker's co-founder sold over half of his holdings.
Maker’s volume over the past few days declined. It reached $84 million on 25 January only to decrease later.
News - Maker started the year strong, weathering market dips and staying above key levels. However, recent movements in a wallet tied to a MakerDAO co-founder have raised eyebrows, with millions of dollars worth of MKR transferred to exchanges.
How much MKR was sold though? The sale of 2,235 MKR, totaling over $4.5 million, sparked concerns about a potential dump by a key figure in the DeFi space. This coincides with a decline in MKR volume, dropping from a 10-day high of $84 million to $43 million at press time.
However, a closer look at exchange netflow paints a less alarming picture. While the 25th of January saw a significant outflow of over 2,600 MKR, which coincided with the volume spike, the overall trend appears positive. Inflows, though not matching the scale of the earlier outflow, have dominated recent activity.
This suggests that despite the co-founder's sale, more MKR is being withdrawn from exchanges than sold, potentially indicating increased holding confidence among other investors. It's crucial to note that the exact motivations behind the wallet movements remain unclear, and further analysis and observation are needed for a clearer picture.
What to expect? While the co-founder's sale undoubtedly adds a layer of uncertainty, the exchange netflow data offers a counterpoint, hinting at potentially stronger holding sentiment within the wider MKR community. This tug-of-war between potential selling pressure and underlying bullishness is likely to keep the market volatile in the short term.
Solana's Jupiter DEX overtakes Uniswap amid Stablecoin swaps and airdrop excitement
Key points:
Jupiter exchange volumes topped $480 million in the last 24 hours.
Much of the volume was led by traders swapping Stablecoins and flipping a new memecoin.
News - Solana-based decentralized exchange (DEX) Jupiter has surged past its Ethereum rivals, topping the charts with $480 million in trading volume over the past 24 hours. This surge comes amidst a double whammy of excitement: a new memecoin airdrop and increased stablecoin swaps.
How did the Stablecoin help? Fueling this surge is "Wen," a memecoin airdropped to Solana users who interacted with Jupiter in the past six months or owned a Saga phone. This "playful experiment" by Jupiter developers contributed over $50 million to the day's volume, as traders hopped on the memecoin bandwagon.
But "Wen" wasn't the sole catalyst. Swapping Solana's native token SOL for stablecoins like USDC and USDT accounted for a whopping $191 million of the volume, highlighting increased trust and demand for reliable assets amidst market volatility.
This spike in activity even saw Jupiter outshine the combined trading volume of both v2 and v3 versions of the renowned Ethereum DEX Uniswap, which clocked in at $470 million for the same period. This temporary victory for the young Solana competitor demonstrates its growing traction and the allure of airdrops in the crypto ecosystem.
More stories from the crypto ecosystem
Interesting facts
In its initial days, Dogecoin, a memecoin inspired by a Shiba Inu dog, skyrocketed in value thanks to Elon Musk's tweets, making many early investors Dogecoin millionaires.
North Korea is notorious for hacking cryptocurrency exchanges and stealing millions of dollars worth of digital assets.
Blockchain technology is increasingly used by law enforcement agencies to track criminal activity and investigate financial crimes involving cryptocurrency.
Top 3 coins of the day
Solana (SOL)
Key points:
An assessment of the Solana funding rate on Coinglass indicates a lack of significant movement in the past few days.
In the last 48 hours, Solana secured the third-highest NFT sales volume.
What you should know - With the arrival of bullish forces, SOL, at the time of writing, was trading at $96.54 with an 11% increase in the past week. After 31 October, SOL picked up its momentum, rising steadily in the past months. The current demand zone for the coin stood between $60-$80. Market condition for the alt looked healthy as RSI was found holding strong to the 53-mark. Sellers might not have an edge in the market at the moment.
Monero (XMR)
Key points:
The privacy coin has faced more volatility when compared to its counterparts.
Its press time price was in support of the buyers; short-sellers have had a tough time making money.
What you should know - Monero seemed to be the most favored coin for the buyers when compared to its competitors. In the last 24 hours of press time, it increased by 4.36%, and in the past week, it went up by 10.25%. The 200-day SMA was below the press time price, it's generally considered a bullish signal. This suggests that the trend is upward, and the price is likely to continue rising. Further, a steep upward slope indicated a strong bullish trend. Bollinger Bands (BB), on the other hand, revealed that the market was quite volatile.
Chainlink (LINK)
Key points:
LINK’s price movement is taking a breather, the token has been majorly trading within a range.
The technical indicators were skewed more towards the sellers.
What you should know - After 6 November, LINK has been trading within a range of $12 to $17. The momentum seemed to be neutral - neither in favor of buyers nor in favor of sellers. Even the Fear & Greed Index reading stood at the neutral mark. The MACD indicator, however, was inclined more towards the sellers’ side. Over the last 7-D, LINK decreased by 3.42%, hence, traders should exercise caution.
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