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Solana NFTs make a comeback
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Activity on Ethereum peaks with the highest daily new address count in years
Key points:
Ethereum's new address creation hit a two-year high between 4 May and 5 May.
The rise in new addresses likely reflects anticipation of a price surge.
News - Ethereum's recent price surge coincided with a surge in new addresses, reaching a two-year high. However, this influx of new users hasn't translated to a significant increase in network activity.
Data shows the highest daily new address creation occurred between 4 May and 5 May, surpassing 196,700 - a level unseen since October 2022. This surge subsided by 6 May, settling around 115,000 and further declining to 33,000 at the time of writing.
On-chain metrics - The rise in new addresses likely reflects anticipation of Ethereum retesting the $4,000 mark. Daily active addresses have remained above 500,000 since March, with no major fluctuations observed during the new address spike.
While a healthy level of activity persists on the network, the recent influx of new users hasn't impacted it considerably. These new users may be waiting on the sidelines for now.
Trading volume also remained unimpacted by the surge in new addresses. The daily volume stayed below $10 billion until 6 May, when it surpassed $12 billion. At the time of writing, the volume sat around $13 billion.
Key points:
Australian tax office seeks data from 1.2 million crypto exchange users.
Data sought includes personal details and transaction information.
News - Australian cryptocurrency traders are facing increased scrutiny from the tax authorities.
The Australian Taxation Office (ATO) is reportedly seeking personal and transaction data from up to 1.2 million cryptocurrency exchange users to identify individuals who might not be reporting their crypto gains for tax purposes.
What’s more? The ATO aims to collect details like birthdates, social media accounts, phone numbers, wallet addresses, transaction types, and bank account information. This data will be used to ensure crypto investors are paying capital gains tax on profits from selling digital assets, as Australian regulations classify cryptocurrencies as taxable assets.
This crackdown comes amidst a strong year for cryptocurrencies. Bitcoin has surged over 44% year-to-date, while Ethereum has seen a 32% increase.
Well, Australia isn't alone in its pursuit of crypto tax collection. Canada's Revenue Agency is also conducting audits and investigations to recover unpaid taxes from crypto investments.
Solana NFTs gain traction as sales reach $25M, outperforming Polygon
Key points:
Popular NFT collections y00ts and DeGods returned to Solana.
Solana surpassed Polygon in daily sales volume but saw a dip in daily transactions.
News - Solana's NFT ecosystem experienced a boost last week with the homecoming of popular collections like y00ts and DeGods. This migration from other blockchains suggests a potential for further growth in Solana's NFT space.
The overall NFT market thrived last week, with a surge in sales and unique sellers across various chains. Solana capitalized on this trend by attracting established collections like y00ts (returning from Polygon) and DeGods (migrating from Ethereum).
Did Solana outperform Polygon? Solana's NFT sales reached $25 million in the past week, significantly outperforming Polygon's $8 million. However, Ethereum maintained its dominance with a weekly sales volume of $48 million.
Data from DappRadar revealed y00ts and DeGods among Solana's top-performing collections, alongside Mad Lads, Frogana, and SMB Gen 2. Solana also surpassed Polygon in terms of daily sales volume, clocking in at $3 million compared to Polygon's $1 million.
Despite strong sales, Solana's daily transactions dipped over 10%, while Polygon saw a 17% increase. Ethereum remained the clear leader, with a 24-hour sales volume exceeding $6 million, a 17% jump from the previous day.
Bitcoin exchange inflows hit lowest levels in nearly a decade
Key points:
Investors are holding onto their Bitcoin instead of selling on exchanges.
This shift reflects a change in investor sentiment with more institutional involvement.
News - Bitcoin exchange inflows have plunged to their lowest levels in nearly a decade, according to data from on-chain analytics platform CryptoQuant. This suggests a significant shift in investors’ sentiment, with holders not ready to sell their Bitcoin.
The daily flow of Bitcoin into major exchanges has declined dramatically since the cryptocurrency hit its all-time high of $73,800. In April and May of 2024, inflows reached some of the lowest levels on record, with just 8,400 BTC entering exchanges on 20 April. This level of inflow was last seen when Bitcoin traded below $1,000 per coin.
More details - This trend reflects a change in how investors are approaching Bitcoin in this new era of institutional involvement. Despite recent price volatility, including a dip to $56,500 last week, there remains a strong appetite for increasing exposure to Bitcoin.
Market analysts continue to highlight positive developments related to whales. This suggests ongoing confidence in Bitcoin's long-term potential.
More stories from the crypto ecosystem
Interesting facts
One Bitcoin transaction’s carbon footprint is equivalent to more than 762,000 Visa transactions, according to Digiconomist.
The difficulties of tax reporting and the controversy surrounding crypto have resulted in digital assets being entirely banned in a few countries like Algeria, Bolivia, Dominican Republic, North Macedonia, Qatar, Saudi Arabia, and Vanuatu.
Surprisingly, the concept of cryptocurrencies can be traced back to the 1980s. The idea of untraceable peer-to-peer digital money was first proposed by an American IT named David Chaum in 1983 — long before the creation of Bitcoin.
Top 3 coins of the day
Chainlink (LINK)
Key points:
At press time, LINK was trading at $14.66.
The token was up by 11.22% over the last seven days.
What you should know - After trading in a sideways range from 11 February to 25 March, LINK saw a breakout in a downward direction. Consequently, prices fell to $11.67 within a few days. At this point though, bulls regained momentum and LINK started forming higher highs on the daily chart. At press time, buying pressure outweighed the selling pressure. LINK’s immediate resistance stood within $17.39 to $18.70. The coin is likely to sustain its upward move as the RSI rested at the 47-mark pointing northward.
Solana (SOL)
Key points:
Solana experienced bullish short-term price action on the daily chart.
The $160.4 level has been a high liquidity area.
What you should know - Solana encountered resistance around the $176 mark after a recent climb. The daily chart showed a potential uptrend forming over the past seven days, but the price struggled to break above the $180 key level. Trading activity remained high on 7 May, with daily volumes hovering around $3.216 million. SOL's MACD was awaiting a bullish divergence, at the time of writing. This meant that the upward move might continue for a few more days before SOL retraces back to its strong support level of $126.
Bitcoin Cash (BCH)
Key points:
BCH was trading at $485.43, at the time of writing.
It increased by 10.50% over the last week.
What you should know - On a macro-frame, BCH has been on a decline, however, zooming in on the chart reveals bullish momentum on the lower timeframe. After touching a support of $400, BCH has reversed its bearish move. Its next resistance level stands at $614. If bulls successfully breach this level, the coin will likely cross $650 within a short span of time. Well, for that to come true, overall market sentiment will have to continue being bullish. At the time of writing, buyers favored the coin, and selling pressure was minimal. Well, as per the reading of RSI, the bullish momentum will continue for the next few days.
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