Stablecoin sector booming

July 25, 2024

Reading time: 5 minutes

Stablecoin sector hits $164 Billion milestone, boosting crypto liquidity

Key points:

  • The growth indicates increased investor confidence in the crypto market.

  • Stablecoins are essential for various crypto activities like trading and lending.

News - The stablecoin market is experiencing a resurgence, signaling a renewed influx of capital into the cryptocurrency ecosystem. The aggregate market capitalization of stablecoins, which serve as a bedrock for many crypto trading strategies, has climbed to over $164 billion, a level unseen since the Terra collapse in May 2022.

Benefits of Stablecoins - Stablecoins, such as Tether's USDT, maintain a fixed value relative to traditional currencies, making them a crucial tool for investors to navigate market volatility. These digital assets are widely used for crypto purchases, derivatives trading, DeFi lending, and even real-world payments.

The expansion of the stablecoin market is seen by analysts as a bullish indicator, suggesting growing investor confidence. This influx of capital into on-chain ecosystems can fuel price appreciation and enhance market liquidity.

However, it's important to note that the broader cryptocurrency market has faced headwinds recently, with Bitcoin and Ether experiencing declines. This downturn is attributed to factors like the debut of spot ether ETFs and broader market trends.

Russian-language ransomware groups lead $500M crypto crime surge

Key points:

  • Russia is a major hub for crypto-related criminal activities.

  • Russian ransomware groups accounted for a significant portion of ransomware proceeds.

News - A new report by TRM Labs has painted a grim picture of Russia's role in the cryptocurrency underworld. The country has emerged as a significant hub for illicit crypto activities, including ransomware, drug trafficking, and sanctions evasion.

Russian-speaking cybercrime groups dominated the ransomware landscape in 2023, raking in over half a billion dollars. Lockbit and ALPHV/Black Cat, both based in Russia, were the primary culprits. Despite a setback for Lockbit earlier this year, the threat persists.

Moreover, Russia's Garantex exchange was identified as a major player in facilitating crypto transactions for sanctioned entities worldwide. The country's involvement in the war in Ukraine has led to increased sanctions, driving many to turn to crypto for financial maneuvers.

The darknet market was another area where Russia held sway. The majority of crypto-denominated drug sales took place on Russian-language platforms.

While Russia stands out as a major player, North Korea remains the undisputed king of crypto theft, having stolen nearly a billion dollars worth of digital assets in 2023.

Filecoin faces uphill battle amid crypto market volatility and selling pressure

Key points:

  • Filecoin is facing a challenging market environment.

  • RSI and negative funding rate indicate bearish sentiment.

News - Filecoin is facing a challenging period as the broader cryptocurrency market struggles to regain momentum. The decentralized storage network's price has been on a downward trajectory, with investors seemingly losing faith in the asset.

A decline in the Relative Strength Index (RSI) below the neutral line indicates growing bearish sentiment among traders. This, coupled with a recent shift to a negative funding rate, suggests that investors are increasingly betting against FIL's price. These negative indicators point to a lack of confidence in the asset's short-term prospects.

Having fallen 12% in the past four days, Filecoin's price is currently trading below crucial support levels. If the selling pressure persists, the price could plummet to $3.5, erasing recent gains.

However, a potential recovery could materialize if FIL manages to reclaim the $4.2 support level. A successful defense of this level could propel the price back above $4.6 and potentially ignite a bullish rally toward $5.0.

The coming days will be crucial for Filecoin as it navigates these turbulent market conditions.

Bitcoin 2024 conference begins today: Trump and Kennedy set to make waves

Key points:

  • Bitcoin 2024 conference to feature high-profile speakers.

  • Donald Trump and Robert F. Kennedy Jr. are confirmed attendees.

News - The Bitcoin 2024 conference, set to take place in Nashville from 25 to 27 July, is shaping up to be a major event for the cryptocurrency industry. The conference boasts an impressive lineup of speakers, including former U.S. President Donald Trump, Senator Cynthia Lummis, and renowned crypto advocate Robert F. Kennedy Jr.

Trump's highly anticipated appearance has generated significant buzz, with expectations for a potentially groundbreaking speech. Kennedy, a long-time Bitcoin supporter, will also deliver a keynote address and participate in a question-and-answer session.

The conference will also feature other prominent figures in the crypto space, such as Michael Saylor and Cathie Wood. Additionally, there is growing speculation about a possible appearance by Elon Musk.

The event will be live-streamed on Rumble, allowing global audiences to participate in the discussions. However, while Trump and Kennedy's main stage appearances will be broadcast, Kennedy's backstage Q&A session will not be live-streamed.

The conference promises to be a pivotal moment for the cryptocurrency industry, with the potential to shape the future of Bitcoin and digital assets.

Did you know?

  • On 15 August 2010, Bitcoin faced a huge bug - and 184 billion BTC were created out of thin air. The BTC supply is supposed to be capped at 21 million, but an integer overflow (which happens when a calculation tries to store a value in a variable that is larger than the available space) allowed an unknown attacker to create a ridiculous amount of Bitcoin. The issue was noted in 90 minutes and a fix was rushed in.

  • On the Ethereum network, users need to post a base gas fee, which is the minimum amount of gas required to include a transaction on the blockchain. In most cases, they also post a “priority fee” or a tip on top of the base fee to incentivize miners to confirm this transaction above others, making the transaction faster for the user.

  • 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.

Top 3 coins of the day

Ethereum (ETH)

Key points:

  • ETH’s price action has surprised many market analysts.

  • Short positions on ETH have increased significantly.

What you should know - Ethereum has experienced a significant downturn following the much-anticipated launch of spot ETH ETFs. Contrary to expectations of a price surge, the market reacted with a sell-off, driving ETH to a low of $3130. The derivatives market is signaling a bearish outlook, with a rise in short positions. This suggests that traders are anticipating further price declines, making a short-term recovery to the $3800 resistance unlikely. However, a recent uptick in trading volume indicates growing investor interest. ETH is currently holding the $3000 support level, but a breakdown below this could trigger a deeper correction towards $2829. The overall sentiment remains negative as suggested by the RSI reading of 40, at press time.

Cardano (ADA)

Key points:

  • ADA’s MACD was awaiting a bearish crossover, at press time.

  • Bulls have been majorly absent from the market since 14 July.

What you should know - Cardano (ADA) has mirrored Ethereum's recent decline, shedding 11.62% over the past week. Despite this bearish trend, ADA has been trading within a range of $0.5011 to $0.3581 for an extended period, indicating indecision in the market. A decisive break above the $0.5037 resistance could signal a bullish reversal, with potential targets near $0.5934. However, the immediate support level rests at $0.3378. Technical indicators, such as the MACD, are showing signs of bearish divergence, suggesting that downward pressure may intensify in the short term.

Bitcoin Cash (BCH)

Key points:

  • BCH was trading at $349, at the time of writing.

  • Its OI-weighted funding rate has been negative for the past few days.

What you should know - Bitcoin Cash (BCH) has undergone a significant correction, losing over 50% of its value since its April peak. The cryptocurrency is currently attempting to break through the $432 resistance level, but weak trading volume suggests a lack of buying interest. The Awesome Oscillator indicator has flashed red, indicating bearish momentum. If BCH fails to hold above the $432 level, it could potentially drop to $299. Overall, the short-term outlook for BCH remains uncertain as it struggles to regain its footing. 

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