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Starknet's 194% hike
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Spot Bitcoin ETFs gain momentum as Grayscale faces outflows
Key points:
Trading volumes for the "new nine" spot Bitcoin ETFs reached a record high of $2.4 billion on 26th February.
BlackRock's IBIT ETF took the lead with $1.29 billion in trading volume.
News - Trading volumes for the 'new nine' Bitcoin ETFs hit an astonishing high, surpassing the previous record set on 11th January. This was spearheaded by industry giants BlackRock and Fidelity.
This surge coincided with Bitcoin's price spike, although it remained below its all-time high (ATH). Additionally, significant inflows were recorded into spot Bitcoin ETFs, contrasting with outflows from Grayscale's Bitcoin ETF product.
The leaderboard - Eric Balchunas, a Bloomberg ETF analyst, revealed that BlackRock's IBIT hit a daily record of $1.29 billion, marking a 30% increase. Fidelity's FBTC followed closely with $576 million.
ARK 21Shares (ARKB) and Bitwise (BITB) ETFs recorded flows of $276 million and $81 million, respectively, while Grayscale's Bitcoin ETF product (GBTC) volume was excluded from the figures on both days.
The market dynamics - Balchunas also noted the typical volume surge at the start of trading weeks, with 26th February emerging as the second-largest trading day on record, hitting $3.2 billion including flows from Grayscale's Bitcoin ETF. He highlighted BlackRock's IBIT achieving the 11th-largest volume among all ETFs after surpassing $1 billion.
In summary, year-to-date inflows in Bitcoin ETFs surpassed $5.5 billion, driven by BlackRock's IBIT, Fidelity's FBTC, ARK 21Shares (ARKB), and Bitwise (BITB) ETFs. However, Grayscale's Bitcoin ETF product (GBTC) saw significant outflows totaling $7.4 billion, signaling evolving investor sentiments in the cryptocurrency market.
Starknet surges amid controversy
Key points:
Starknet saw a 194% increase in Total Value Locked (TVL).
Decreased code commits raise concerns about Starknet's development pace, crucial for its long-term success and innovation.
News - Starknet [STRK], Ethereum's Layer 2 solution, has grabbed headlines with a staggering 194% rise in its Total Value Locked (TVL), soaring to $1.32 billion.
This surge not only solidified Starknet's position as the fourth-largest Layer 2 project on the Ethereum blockchain, but also sparked a discussion amidst a backdrop of controversy and contrasting metrics.
What’s cooking? Launched successfully on Mainnet on February 14th, Starknet rewarded early adopters with over 700 million STRK tokens. However, controversy followed as allegations of token sales by the team caused STRK's price to drop below $2, compounded by a token issuance error. Despite these challenges, Starknet's surge in Total Value Locked (TVL) suggested increasing trust among investors, indicating potential growth for STRK.
Factors impacting STRK's future - Beyond Total Value Locked (TVL), Starknet's declining development activity is a sign of innovation slowdowns, casting uncertainty on STRK's future despite price dips. Additionally, a surge in stablecoin supply held by whales outlined significant buying potential, potentially lifting STRK's price.
However, STRK's market cap in Ethereum terms and its sensitivity to ETH fluctuations continues to determine its future stability or surges. It will be influenced by factors like token unlocks and Ethereum's price trajectory towards $3,500.
Republican Senators propose prohibition on Fed-backed digital assets
Key points:
GOP Senators propose legislation to ban Central Bank Digital Currencies (CBDCs).
Biden administration and the Federal Reserve recognized CBDC’s potential benefits despite skepticism.
News - Republican Senators have put forth legislation aimed at prohibiting official cryptocurrencies backed by central banks or CBDCs. GOP lawmakers, led by Sen. Ted Cruz (R-Texas), argued that these Fed-backed digital currencies could grant authorities access to detailed transaction data, potentially compromising individual privacy. They further emphasized the risk of "programmable money," providing the government with unprecedented insight into personal spending habits.
Why does it matter? While the Biden administration has shown interest in studying cryptocurrencies since 2022, emphasizing the need to evaluate potential benefits and risks, the GOP's proposed ban signals a divergence in views on the future of digital currency regulations.
The GOP initiative seeks to restrict the Federal Reserve from authorizing Fed stablecoins for individual use or distribution through third-party financial institutions. This move wants to prevent the potential transformation of banks into public utilities and reflects ongoing debates surrounding the role of digital currencies in the financial system.
Way forward - Through this, the Republican legislation seeks to upend the traditional distribution model of stablecoins, eliminating the intermediary role of third-party financial institutions. However, such proposals may face resistance from cryptocurrency firms which have long opposed standardization efforts despite industry failures and concerns over volatility and criminal activity.
Additionally, the rise of CBDCs globally has sparked both advocacy and caution, with the potential operational implications for central banks highlighted by international authorities.
Ripple assumes center stage in another legal showdown
Key points:
Ripple faces a class action lawsuit for offering and selling XRP without proper registration.
Ripple and the co-defendants have denied any wrongdoing, asserting that they were not obligated to register XRP as a security.
News- Ripple finds itself involved in another legal battle as a class action lawsuit has been filed against the San Francisco-based company in the Northern District of California. The lawsuit, which targets Ripple, its CEO Brad Garlinghouse, and subsidiary XRP II, LLC, alleges violations of federal and California securities laws.
Behind the scenes - The lawsuit against Ripple stems from allegations that the company engaged in the unauthorized sale of XRP, sidestepping the mandatory registration mandated by both federal and state securities laws.
The lawsuit, a class action, represents two distinct classes: a Federal Securities Claims Class and a California State Securities Claims Class. These classes encompass individuals or entities who purchased XRP between July 3, 2017, and June 30, 2023, and either retained the asset or sold it at a loss.
Ripple’s defense mechanism - As the lawsuit against Ripple unfolds, investors and entities affected by the legal proceedings find themselves at a crossroads.
Specifically, those included in the class action have until April 5 to decide whether to request exclusion from the lawsuit. This crucial step would allow them to pursue independent legal action against Ripple.
The outcome of this case will likely shape the future landscape of cryptocurrency regulation and enforcement.
More stories from the crypto ecosystem
Interesting facts
CryptoKitties is recognized as one of the earliest blockchain-based games, introducing the concept of digital collectibles to the mainstream. It was developed by Axiom Zen in 2017 to highlight the intersection of blockchain technology and digital art.
In 2021, approximately one-third of Nigerians had engaged with or possessed Bitcoin. This development was particularly notable considering that nearly half of the population was in poverty.
In 2024, the United States leads the global Bitcoin mining industry with over 35% of the network's hash rate. Abundant renewable energy in regions like Texas and favorable regulations are the key factors driving U.S dominance in Bitcoin mining.
Top 3 coins of the day
Shiba Inu (SHIB)
Key points:
SHIB recorded a surge after a series of consecutive red candlesticks on the weekly chart.
RSI touching the 70-level mark signalled a potential return to bearish market conditions.
What you should know - Following a bearish trend last week, Shiba Inu (SHIB) at press time showed signs of a potential buying opportunity as green candlesticks appeared on the daily chart. At the time of writing, SHIB had surged by 9.58% in the past 24 hours, reaching $0.00001045, with a market capitalization exceeding $6 billion. However, caution is warranted as the Relative Strength Index (RSI) indicated overbought conditions, suggesting a possible pullback. If a price correction occurs and bullish momentum subsides, SHIB's price may consolidate within the range of $0.0000088 - $0.0000099, potentially retracing to levels seen a week ago.
Avalanche (AVAX)
Key points:
AVAX’s price momentum showed limited signs of strong buying pressure.
The CMF reinforced expectations of upcoming bearish momentum.
What you should know - Avalanche (AVAX) recorded a significant surge in its burn rate over the past week, resulting in a notable increase in tokens exiting circulation. Despite this surge, it did not translate into a substantial price hike. However, at the time of reporting, AVAX was showing positive signs on the daily chart, with green candlesticks indicating a 7.88% hike in a single day. Trading at $39.63 during press time, AVAX might surpass the immediate resistance level at $44.01. However, caution is warranted as the Chaikin Money Flow (CMF) fell, suggesting a potential price correction. This could also signal a loss of momentum, serving as an indication of a possible trend reversal.
Pepe (PEPE)
Key points:
PEPE exhibited stronger bullish momentum compared to other meme coins.
The MACD flashing green histograms confirmed robust buying pressure.
What you should know - Pepe, the frog-themed cryptocurrency (PEPE), has demonstrated superior performance compared to other prominent meme assets over the past week, including Dogecoin (DOGE) and Shiba Inu (SHIB). It noted gains exceeding 50.06% within 24 hours. Trading at $0.000002157 (at the time of reporting), PEPE boasted a market capitalization of $907.22M. Analyzing the daily chart, it's evident that PEPE recently tested the previous resistance level at $0.0000013 on 26 February. At press time, it seemed to be approaching the new resistance level at $0.0000022. Additionally, the MACD line positioned above the signal line indicated robust bullish momentum, further affirming PEPE's upward trajectory.
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