SUI hits $4.91 amid TVL surge

December 12, 2024

Reading time: 5 minutes

SUI soars to $4.91 ATH amid record-breaking $1.84B TVL surge

Key points:

  • SUI hits new ATH - SUI token surged 30% in the past 24 hours, reaching a new all-time high of $4.91 before slightly retracing to $4.83.

  • Growth drivers - The price spike is attributed to Backpack’s integration with the Sui blockchain, alongside a 17% jump in Total Value Locked (TVL) to $1.84 billion.

News: SUI reaches new milestones - SUI, the native token of the Sui blockchain, hit a new all-time high of $4.91 on early Thursday. This marks a 30% price increase over the past 24 hours, positioning it as the market's top performer for the day. Despite a slight 1% dip from its peak, SUI continues to trade strongly at $4.83.

The significant rally was sparked by the integration of Backpack with the Sui blockchain, announced on Wednesday. This development boosted user activity and led to an 18% price hike that day, propelling the blockchain's ecosystem metrics to new highs.

TVL and DEX volume surge - The Sui blockchain’s Total Value Locked (TVL) reached a record $1.84 billion, a 17% increase in the past 24 hours, according to DefiLlama. Higher TVL often signals growing user confidence and activity, positively influencing the asset’s price.

Additionally, Sui’s decentralized exchange (DEX) trading volume surged by 170% since the start of December, setting a new 24-hour record of $466 million. The blockchain has also surpassed $35 billion in total DEX volume, reflecting robust trading activity.

What’s next for SUI? - The Chaikin Money Flow (CMF) for SUI stands at 0.19 at press time, indicating strong buying pressure and bullish momentum. If this trend persists, SUI could surpass its recent high of $4.91, pushing toward new price territories.

However, a wave of profit-taking could lead to a price retracement, with SUI potentially dipping to the $3.96 support level. Maintaining strong momentum and demand will be critical for SUI’s continued growth.

XRP’s all-time high hopes dwindle as investors take profits

Key points:

  • Profit-taking surges - Realized profits spike as investors lock in gains amid XRP’s struggle to break past $2.73 resistance.

  • Range-bound risks - Failure to flip $2.73 into support keeps XRP trapped between $2.73 and $2.00, dampening investor confidence.

News - XRP’s price continues to struggle against the critical $2.73 resistance level, leaving investors uncertain about the token’s near-term potential. Despite broader bullish trends in the cryptocurrency market, XRP has failed to sustain significant gains, leading to intensified profit-taking and declining investor sentiment.

The heightened selling pressure is evident in the spike in realized profits—a measure of coins being sold after achieving gains. This behavior signals that many XRP holders are opting to cash out rather than wait for further upside, eroding confidence in the token’s ability to reach a new all-time high (ATH) above $3.31.

Investor pessimism grows - XRP’s Mean Coin Age (MCA), a measure of the average age of coins in circulation, has been steadily declining. This indicates that long-term holders are losing interest and choosing to move their assets. The declining MCA reflects broader unease among XRP investors, exacerbated by weak price performance even as the market experiences strong rallies.

The lack of significant price movement has created a negative feedback loop. Rising profit-taking is suppressing momentum, making it harder for XRP to break through resistance levels and maintain bullish sentiment.

XRP price outlook - At $2.43, XRP sits well below the key $2.73 resistance. A breakout above this level and a subsequent flip into support could pave the way for a retest of its ATH at $3.31. However, failure to achieve this would likely see XRP remain in a consolidation range between $2.00 and $2.73, limiting its upward momentum.

For investors, this critical range represents a pivotal decision point. Breaking past $2.73 would signal renewed bullish sentiment, while staying below this level raises the risk of extended stagnation or decline.

What’s next? - The path forward for XRP hinges on macroeconomic conditions and the broader crypto market’s performance. Investors will closely monitor whether XRP can overcome resistance and regain its momentum or remain range-bound, potentially delaying hopes for a new ATH. For now, cautious optimism prevails, but the pressure is mounting for XRP to deliver a decisive move.

a16z's Brian Quintenz in line for CFTC chair, signaling pro-crypto stance under Trump

Key points:

  • Former CFTC commissioner and current a16z policy head, Brian Quintenz, is reportedly President-elect Donald Trump’s pick for CFTC chair, signaling a potential shift toward pro-crypto regulation.

  • Quintenz, known for advocating financial innovation and regulatory clarity, criticized the SEC’s stance on Ether’s security classification, highlighting his support for clear crypto guidelines.

News - Brian Quintenz, a former Republican-appointed commissioner at the United States Commodity Futures Trading Commission (CFTC), has emerged as the leading candidate for CFTC chair under President-elect Trump, according to Bloomberg.

Currently, Quintenz serves as the head of policy at Andreessen Horowitz’s (a16z) crypto division, where he champions flexible yet robust regulatory approaches for the crypto sector.

If appointed, Quintenz’s leadership could address the ongoing jurisdictional disputes between the CFTC and the SEC over cryptocurrency regulation, potentially favoring the crypto industry’s call for clarity.

Quintenz’s track record - During his CFTC tenure (2017–2021), Quintenz supported the integration of digital asset derivatives and championed policies promoting innovation without compromising market integrity.

At a16z, Quintenz has criticized the SEC’s handling of Ether (ETH), pointing out inconsistencies in its regulatory approach. He argued that the approval of Ether futures ETFs in October 2023 indicated the asset’s non-security status, further emphasizing the need for transparent guidelines.

Implications for crypto - Quintenz’s potential appointment aligns with expectations of a pro-crypto political shift under the Trump administration. Venture capital giant a16z, a major player in the crypto ecosystem, expressed optimism about “greater flexibility to experiment” in this new regulatory environment.

As the CFTC chair, Quintenz could pave the way for streamlined regulations, encouraging innovation and boosting investor confidence in the US crypto sector.

What’s next? - An official confirmation of Quintenz’s appointment could mark a significant milestone for the crypto industry, shaping US cryptocurrency policy in the coming years. With a16z’s backing and Trump’s focus on crypto-friendly leadership, the appointment could drive greater regulatory clarity and global competitiveness for the US crypto market.

Ukraine aims to legalize crypto by 2025 without tax incentives

Key points:

  • Crypto legalization - Ukraine plans to legalize cryptocurrencies by early 2025, with legislation focused on financial stability and AML measures.

  • No tax incentives - Crypto profits will be taxed like securities trading, with no tax breaks to minimize evasion risks.

News - Ukraine is on track to legalize cryptocurrency transactions by early 2025, according to Danil Getmantsev, head of the tax committee of the Verkhovna Rada. The move aims to create a regulated framework for digital assets, coordinated with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF).

Contrary to industry hopes for tax incentives, profits from cryptocurrency transactions will be taxed upon conversion to fiat currency under standard capital gains tax rules. Getmantsev clarified that avoiding tax incentives would limit the risks of evasion commonly seen in traditional financial markets.

Why it matters - Legalizing cryptocurrencies could provide Ukrainians with a secure way to protect assets from inflation, facilitate cross-border transactions, and sustain financial stability amid the ongoing war with Russia. The use of crypto for humanitarian aid and donations during the crisis has already showcased its utility in times of need.

Furthermore, this aligns Ukraine with a global trend of regulating digital assets while setting the stage for Eastern Europe to emerge as a hub for decentralized finance (DeFi). According to Chainalysis, the region saw $499 billion worth of crypto transactions between July 2023 and June 2024, highlighting its growing importance in the digital economy.

Global context - Ukraine’s move follows Morocco's recent announcement to regulate cryptocurrencies after years of prohibition. Bank Al-Maghrib, Morocco's central bank, is preparing a draft law for crypto regulation and exploring the potential of a central bank digital currency (CBDC).

What’s next? - The draft crypto legislation in Ukraine is expected to be finalized by the first quarter of 2025, with a focus on creating a transparent and legally secure environment for businesses and investors. Observers anticipate that the regulated framework could position Ukraine as a leading player in the Eastern European crypto space, driving innovation and financial inclusion.

Interesting facts

  • In 2014, a hacker stole around 850,000 Bitcoin from the Mt. Gox exchange, one of the largest Bitcoin exchanges at the time. Despite the massive theft, only a small portion of the stolen coins has ever been recovered, and the incident significantly impacted Bitcoin’s reputation in the early years.

  • Blockstream, a blockchain technology company, launched its satellite network in 2017, allowing Bitcoin transactions to be broadcast globally via satellite. This system enables Bitcoin to be accessed and used in areas without reliable internet connections, expanding the network's reach.

  • Peercoin, launched in 2012, introduced the concept of Proof of Stake (PoS) to the cryptocurrency world. Its hybrid consensus model allowed users to earn rewards by staking coins, providing a more energy-efficient alternative to traditional Proof of Work (PoW) mining.

Top 3 coins of the day

Aave (AAVE)

Key points:

  • AAVE was trading at $375 at press time.

  • The price surged by approximately 24.11%, making it one of the biggest gainers in the last 24 hours, according to CoinMarketCap.

What you should know:

AAVE was seen to be experiencing a robust bullish trend, as highlighted by its daily chart. The SMA 9 lied significantly below the trading price, reinforcing the strong upward momentum. The RSI sat at 82.54 at press time, firmly in the overbought zone, suggesting heightened demand and strong buyer activity. Moreover, volume saw a substantial uptick, underscoring growing market enthusiasm and validating the bullish breakout. Key levels to watch include $388, the intraday high, which acts as immediate resistance. A successful breach of this level could pave the way for further upward movement. On the downside, $325 represents a critical support level; a fall below this could indicate a potential correction. While the overbought RSI signals caution for long-term investors, short-term traders may find opportunities in the ongoing rally.

Solana (SOL)

Key points:

  • At press time, SOL was trading at $230, showing a 1.58% increase over the last 24 hours.

  • It was one of the top trending cryptocurrencies on CoinMarketCap.

What you should know:

The daily chart for SOL demonstrated a well-defined upward trajectory, as evidenced by the trendline drawn from late October to mid-November. The price remained above the SMA 9, indicating sustained bullish momentum. The Stochastic RSI, hovering around 31.00, suggested the asset had recently exited oversold conditions, signaling a possible continuation of upward price action. Meanwhile, the trading volume appeared steady, reinforcing active market participation. If the price sustains its position above the SMA 9, it could aim to retest the $250 resistance level. However, a breach below this moving average might lead to a retracement toward the $220 support level, which aligns with previous price consolidation zones.

XDC Network (XDC)

Key points:

  • At press time, XDC was trading at $0.0908.

  • The price showed a modest decline in momentum, marking it as one of the biggest losers in the last 24 hours, as per CoinMarketCap.

What you should know:

XDCs daily chart suggested that it was facing a consolidation phase after a recent uptrend. The MACD indicator, while still positive, showed decreasing histogram bars, signaling weakening bullish momentum. The Chaikin Money Flow (CMF) was at 0.16, indicating a continued inflow of capital into the asset despite the recent slowdown. However, the CMF value has been declining from its prior peaks, reflecting reduced bullish enthusiasm. Volume remained relatively high compared to previous periods, but a slight decrease in daily trading activity suggested that traders have been showing caution, awaiting further price confirmation. Key support lies around $0.0850, while immediate resistance is near $0.0927, as observed from recent price highs.

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