Blockchain

Over the last month, Bitcoin’s price has seen a significant surge. Its price has increased by 30%, reaching a new yearly high of $35,000, 10% above its previous peak this year. Interestingly, while the growth of Bitcoin is clear to see, the broader cryptocurrency market hasn’t quite managed to keep up.

Altcoin Market Cap

The Altcoin market cap, which is the total cryptocurrency market cap excluding Bitcoin, has been trading within a descending triangle. This pattern, characterized by its lower highs and equal lows, often indicates a bearish trend in the market. This pattern suggests sellers are gradually overtaking buyers.

A breakout from such a pattern is typically seen as a bullish indicator, with the target being the first peak. In this case, the Altcoin market cap would potentially see another 15% increase, matching the yearly highs in April.

A similar pattern was seen in the previous cycle, where the Altcoin market cap was trading within a descending wedge. After the breakout, the Altcoin market cap saw an increase of 90%. Such historical trends show the importance of closely monitoring these patterns as potential indicators of market shifts.

Contrastingly, as the Altcoin market cap is forming lower highs, Bitcoin’s price is forming new yearly highs. This dynamic suggests that Bitcoin is gaining market share from the rest of the crypto market. This is often referred to as ‘Bitcoin Season’.

Bitcoin Season

Bitcoin’s market share is at 54%, which is the highest it has been in over two years.

The last time Bitcoin’s market share was at this level was during the bull market in 2021. As that year progressed, the asset began losing market share, as investors turned their attention to coins with lower capitalization, enticed by the prospect of higher returns.

Now the trend seems to be reversing. Investors are gravitating back towards Bitcoin, lured by its higher returns than the rest of the crypto market.

The next resistance is at 58%, so if Bitcoin breaches this mark, it stands to gain an additional 5% in market share.

Historical trends have shown that in the initial phases of bull markets, Bitcoin often takes charge, as it pushes on to create new all-time highs. This is typically driven through Bitcoin-centric narratives such as the halving which reduces the new supply of Bitcoin being mined. This year, heightened anticipation surrounds the potential approval of a Bitcoin ETF. If approved, it could pave the way for a wider range of investors to engage with the asset.

Standout Altcoins Performers

Even during the dominant ‘Bitcoin Season’, certain Altcoins have still managed to show even more impressive returns. Some notable ones are the following:

Injective: +74%
Solana: +68%
PEPE: +67%
RENDER: +45%
Chainlink: +45%

Predycto is the author of a cryptocurrency newsletter. Sign up for free. Follow @Predycto on Twitter.

After rallying over 170% from June 2023 lows, there are signs that Maker (MKR) bulls are losing momentum, looking at price action and decisions by various whales acting via an intermediary. At spot rates, MKR is changing hands at near 2023 highs but is down 16% from October highs. 

Maker (MKR) Is Selling Off: The Bull Run Is Over?

MKR is dumping at an unexpectedly faster pace, reversing gains posted in early Q4 2023, a concern. According to The Data Nerd, Falcon X sent 5,690 MKR worth $8.52 million to multiple exchanges, mainly OKX and Binance, at an average price of $1,497. 

Typically, whenever crypto whales begin sending tokens to centralized ramps, as currently is the case, it can be interpreted as bearish. That whales are moving their coins to exchanges could indicate that they are planning to liquidate and exit their position. Subsequently, this can dent sentiment, forcing the token to dump.  

However, the timeliness of the transfer also matters. In some instances, tokens can be moved to exchanges and interpreted as bullish. This is because, depending on the situation, whales could move them to provide liquidity for other traders.

This can be the case with Falcon X. The platform provides institutional investors access to liquidity and execution services. Notably, Falcon X has, in the past, been used by other crypto exchanges and liquidity providers to offer other services. Since it acts on behalf of institutions and whales, it cannot be ascertained which of its clients is selling MKR. 

As of October 27, The Data Nerd statistics show that the platform holds 10,150 MKR worth $14.17 million at spot rates. Following the transfer, the tracker also shows that MKR is down 4%.

The “End Game” Pumps MKR To New Highs, A Pull Back Incoming?

Presently, MKR remains under pressure. As mentioned earlier, the token, though in an uptrend, rallying 170% in four months, is down 15% from October’s peaks. At the same time, there is a double top, a technical formation that may signal a local top.

This pattern will only be invalidated if there is a sharp expansion above $1,650. Conversely, losses below $1,350 at the back of high participation levels could catalyze the sell-off.

In May 2023, MakerDAO, the issuer of MKR–the governance token of the underlying borrowing and lending protocol, announced the launch of the “End Game.” Herein, the protocol plans to deploy on its independent blockchain, introduce new features, and launch two tokens. 

In addition, Maker has introduced a smart burn mechanism that involves purchasing MKR tokens from the open market and burning them without needing to close any collateralized debt positions (CDPs).

Santiment, a leading blockchain intelligence platform, has recently provided insights pointing to a favorable short-term scenario for Bitcoin (BTC). However, according to other signals that seem ‘hidden,’ there’s a catch.

These on-chain metrics can serve as the north star for investors looking to strategize their next steps. However, according to another metric, though recent revelations by Santiment might hint at continued positive momentum for Bitcoin, there’s also a possible contrary move that could play out.

Bitcoin Sentiments Bullish On-Chain Indications

Santiment’s recent post revealed a positive narrative for BTC’s immediate future. One of the key metrics supporting this bullish outlook is the significant number of active Bitcoin addresses.

It is worth noting that an increase in active addresses can indicate enhanced adoption, investor interest, and overall network health. Furthermore, a surge in previously dormant tokens moving actively hints at a renewed trader interest.

According to Santiment, such activity has often coincided with bullish trends, making this an essential metric to monitor.

If you’re concerned about a #crypto retrace, note that #Bitcoin still maintains a high pace of active addresses. Additionally, the top market cap asset is seeing a high level of dormant tokens now moving, typically synonymous with #bullish conditions. https://t.co/bvjDL2Shga pic.twitter.com/NvxKkQpkg8

— Santiment (@santimentfeed) October 26, 2023

Given these disclosed metrics by Santiment, Bitcoin may still have more rallies to squeeze out. However, to add another layer of intrigue to the current market scenario is the behavior surrounding meme coins, especially PEPE.

According to Onchain Capital co-founder and Crypto Banter host, Ran Neuner, meme coins, with their viral nature and swift price movements, sometimes act as a barometer for market sentiment, albeit unconventional.

PEPE’s Performance: A Market Temperature Check?

While Santiment’s report offers optimism, some market observers utilize unique indicators to sense potential market shifts. PEPE, a meme coin, has recently caught the attention of several prominent crypto figures.

Ran Neuner recently mentioned that PEPE might act as an indicator of an overheated market. The logic? When traders and investors flock to such tokens, and they see significant price pumps, it might be a sign of excessive optimism in the market. An event to walk with caution.

If you want to know when a pull back is coming, just watch $PEPE. It’s literally an index for when the market is getting overheated. When people are confident enough to go there and it pumps, that’s your sign to exit. Works every time. pic.twitter.com/vMcqiddHwp

— Ran Neuner (@cryptomanran) October 26, 2023

Notably, PEPE has surged by more than 80% in the past week. The meme coin has soared from a low of $0.00000650 seen last Friday, to as high as $0.00000118 at the time of writing. Following the recent increase in price, PEPE is currently down 1.1% in the past 24 hours.

Furthermore, in what seems to complement Neuner’s proposed indicator, Bitcoin has seen quite a notable retrace from its recent spike above $35,000. The asset currently trades at $33,620, at the time of writing down by 1.1% in the past hour.

Featured image from ShutterStock, Chart from TradingView

Trellor (TRB) has been one of the winners of the recent crypto market rally after going from a monthly low of $43 to over $115 in less than two weeks. This impressive rally has triggered heightened interest in the cryptocurrency leading to more momentum for the digital asset. However, not everyone is buying into this bullish fantasy as one crypto analyst has predicted a rapid decline in price for the digital asset.

Why The Price Of Trellor Will Crash

A TradingView crypto analyst has given reasons for why they see the Trellor (TRB) price crashing in the coming days. The post which included a chart of TRB depicted the price falling back down below the $60 mark once more.

According to the analyst, the first indicator of the coming crash is the fact that there has been a decline in the trading volume of TRB. They showed this in the chart, which showed that the volume drop is happening amid the price rally that the coin still seems to be undergoing.

Also, the crypto analyst believes that this coin has now entered the “extremely overvalued and overbought” level. Now, usually when a coin is overvalued and overbought, it often precedes a crash in price as investors rush to secure profits. This could be what happens in this case, especially given the fact that the majority of holders are in heavy profits.

The analyst points out that the TRB profitability is incredibly high, with 95% of holders in profit at the time that the analysis was posted. This is corroborated by data from IntoTheBlock, which showed a small drop in the number of profitable holders at 93% but with 0 holders in a loss. The remaining 7% are shown to be sitting at neutral which means they purchased their coins at the same prices as the current market price.

This lends credence to the analyst’s expectation of a price decline, especially when these investors who are in profit begin to sell their coins.

How Far Will The TRB Crash Go?

When it comes to how far the crash can go, the crypto analyst sees an incredible drop in price coming. They believe that there is no way for the bulls to sustain the current momentum which has gone on for days “without heavy CORRECTION.”

The analyst believes that the price of Trellor (TRB) will see at least 50% crash from the current level. However, the expectations are not given only for a crash. They explain that there is the possibility that the price will continue to go up, in which case it reaches as high as $135 to $155. But still maintain the expectation of a crash.

In a follow-up comment, the analyst revealed that they had decided to start shorting the TRB coin. Their price entry is shown to be $110 with three take profit targets set for $70, $52, and $41, and a stop loss placed at $161.

The Trellor (TRB) coin, despite falling around $9 in the last day, is still up a significant amount. It is currently sitting at $111 at the time of writing, but its daily trading volume is down over 35% in the same time period.

Changpeng Zhao, widely known as CZ and the founder of Binance, one of the largest cryptocurrency exchanges, has suffered a significant blow to his fortune. According to a recent Bloomberg report, CZ’s wealth plummeted by $12 billion due to the ongoing slump in crypto-trading activities. 

Per the report, this decline was primarily attributed to a sharp drop in trading volumes at Binance throughout the year.

CZ’s Financial Losses

The Bloomberg Billionaires Index revised its revenue estimates for Binance, slashing it by 38% after data revealed a decline in trading volumes at the exchange. As a result, CZ’s net worth now stands at $17.2 billion, marking a significant reduction from his previous valuation.

According to Bloomberg, CZ’s involvement in recent events that led to the bankruptcy filing of FTX further impacted his financial situation. In November, CZ announced the liquidation of a token linked to FTX (FTT) after reports emerged that Alameda Research, the hedge fund owned by Sam Bankman-Fried, the founder of FTX, held a large position in it. 

The announcement triggered a rush among FTX customers to withdraw funds, overwhelming the exchange’s infrastructure. As a consequence, FTX declared bankruptcy within a week, erasing Bankman-Fried’s fortune, which had peaked at $26 billion in March the previous year.

To estimate Binance’s revenue, the Bloomberg Billionaires Index relies on spot and derivatives trading data from crypto-tracking services Coingecko and Coinpaprika. 

Binance had witnessed a significant gain in market share earlier this year, reaching 62% of total on-exchange crypto trades during the first quarter. However, after a promotional zero-fee period for popular trading pairs ended, Binance’s market share slid to 51% by the end of the third quarter, as reported by research firm CCData.

Binance Value Plunges As Lawsuits And Allegations Take A Toll

Binance has also faced increasing regulatory scrutiny, isolating itself from the traditional financial system. The Securities and Exchange Commission (SEC) filed a lawsuit against Binance in June, accusing the exchange of violating regulations. 

Earlier this year, the Commodity Futures Trading Commission (CFTC) also took legal action against Binance for non-compliance with rules that allowed US users to access the platform. 

Allegations against Binance include inadequate money-laundering controls, inflated trading volumes, and mishandling of client assets. Binance has strongly disputed these claims and is currently contesting them in court. 

In June, Bloomberg’s wealth index reduced the value of Binance’s US exchange to zero after it announced the discontinuation of dollar transactions, resulting in a significant decline in trading volumes. 

Binance.US had previously been valued at $4.7 billion during a funding round in March 2022, while CZ’s net worth peaked at $96 billion in January.

The challenges faced by Binance are not unique, as regulatory uncertainties and rising interest rates have made alternative investments more appealing. Coinbase Global, another leading cryptocurrency exchange, experienced a 52% decline in spot trading volume in the third quarter compared to the previous year, according to Bloomberg. 

Despite the personal wealth challenges CZ faces, Binance Coin (BNB) has capitalized on the overall market recovery, showcasing substantial gains across various time frames. Currently, the token is trading at $225.2, maintaining its upward trend with a 2.2% increase over the past 24 hours.

Furthermore, BNB has demonstrated significant gains of 5.8%, 9.6%, and 6.1% over the seven, fourteen, and thirty-day time frames, respectively. These positive trends highlight the token’s strong performance in recent weeks.

Featured image from Binance, chart from TradingView.com 

Gareth Soloway, an analyst and Chief Market Strategist at InTheMoneyStocks.com and President of VerifiedInvesting.com, has recently dived deep into the dynamics and offers a glimpse into Bitcoin and its future.

Bitcoin’s rally, which boasts a 30% uptick in the past fortnight, has reignited the bullish sentiments within the crypto community. This performance has been linked to the anticipation surrounding the potential approval of a spot Bitcoin Exchange-traded fund (ETF). What happens once this approval is granted?

The Power Of Speculation And Potential Spot Bitcoin ETF Impact

Gareth Soloway believes the approval, which might see daylight by the end of this year or early 2024, could trigger a price correction. “If Bitcoin is still up here, you may not go higher,” Soloway posits.

Soloway argues that the crypto space might already be factoring in the spot Bitcoin ETF approval. This implies that the news, once official, might paradoxically catalyze a sell-off, dampening the current momentum.

Soloway’s projection sees the “maximum upside” of Bitcoin in this bull phase reaching around $47,000 – potentially the next resistance level.

The expert hints that many institutional ETF players might have pre-emptively accumulated Bitcoin, anticipating an eventual spot ETF approval. This could mean fewer buyers once the spot Bitcoin ETF comes to life. Soloway elucidated:

Many of these ETF institutions have probably been accumulating for the last couple of months, knowing that eventually an approval will come. And so, there may not be as many buyers for the spot ETF.

A Glimpse Into 2024: Economic Predictions And Crypto

While Bitcoin’s immediate future is in the limelight, Soloway takes a broader macroeconomic stance for the coming year. The analyst paints a cautious picture, predicting an impending economic recession in 2024. This, coupled with a stock market correction of around 35%, might significantly impact Bitcoin. 

Soloway noted predicting a possible plunge to $15,000:

What happens if the stock market goes down 35%? Fear and panic will take over, even in Bitcoin holders. Remember, there are a lot of people who hold Bitcoin that also have big stock portfolios. And if I’m down huge at some point, do I start to panic and start selling everything? That’s the worry that could drive us back to $15,000 or even lower.

Backing his bleak economic prediction, Soloway further highlights soaring credit card debts, skyrocketing interest rates, and the “risky” state of several banking institutions.

The expert stressed the lurking dangers within the banking sector, many of which he called “zombie banks,” operating with unsustainable “dead paper on their balance sheet.”

Despite the grim financial outlook, Soloway shared his bullish sentiment on gold, anticipating new all-time highs. The analyst underscores the importance of aligning with “smarter money,” referring to central banks that oversee and implement monetary policies. 

Soloway concluded:

If they [Central Banks are] loading the boat on gold, then it probably says we need to do the same

Featured image from iStock, Chart from TradingView

The price of Bitcoin stands firm around the critical area of $34,000, hinting at further bullish potential. However, market analysts wonder if enough clues point to the upside or if BTC will return to $20,000.

As of this writing, BTC trades at $34,150 with sideways movement in the last 24 hours. The cryptocurrency recorded a 15% profit the previous week and remains a top coin performer by market cap.

Bitcoin On-Chain Activity Rises Hinting At A Bull Run?

Data from the analytics platform mempool.space shows an increase in on-chain activity on the Bitcoin network. This spike occurred in February 2023, when BTC transactions rose above 50 Mega Virtual bytes (MvB).

According to the analytics platform, the above metric measures the size of transactions and blocks on the BTC network. The larger the transaction, the more space they required.

As seen in the chart below, each time there is a rise in the price of BTC, there is a surge of activity leading to the rally. This happened in 2017, and 2021, and it is happening this year, which suggests the ecosystem is blooming, onboarding more users, and preparing for a more significant rally like in the previous year.

In addition to the increase in activity, it is possible to see the decline in the metric during the bear market and conclude bull markets record high activity. In contrast, the bear market records much less user activity, and they are generally cheaper to transact.

However, unlike 2017 and 2021, this year, this ecosystem saw the implementation of non-fungible tokens (NFTs) and new applications boosting these metrics. Thus, it is harder to determine if the current rally can reach similar levels than in previous years as the BTC DeFi ecosystem attracts more users looking to leverage the network for utility rather than long-term investing.

BTC DeFi Makes A Difference In Key BTC Metric? A Chat With The Team Behind “Leather”

The surge in BTC on-chain activity could be attributed to the cyclical nature of the crypto market. When the price of BTC and others rise, or there is an expectation of further profits, more users on-board the network.

As a result, the number of transactions recorded increases. However, many believe that with the implementation of NFTs in the BTC ecosystem, transaction activity can no longer be attributed to a new bullish cycle.

If so, rising activity metrics could become useless when measuring the sustainability of a BTC rally. To answer this question, we spoke with Mark Hendrickson, a General Manager at Trust Machines, a company working on a Bitcoin DeFi wallet. This is what he told us:

What is “Leather,” and what is your goal in the Bitcoin ecosystem?

A: Leather is a web3 wallets built around Bitcoin based technologies and applications. And so you can think of Leather, simply put as MetaMask for Bitcoin in the sense that we want to provide a robust user experience for connecting to applications built with Bitcoin and Bitcoin layers in which users can do a lot of the same sort of things that they can concurrently only do on smart contracts enabled L1 chains, but to do them actually on Bitcoin.

So, Leather has the ability to connect the applications, identify yourself to those applications based on your Bitcoin addresses and your associated assets with those applications prompts for signed transactions that are essentially actions for those applications and to do so across layers. (…) We also want to facilitate the movement of liquidity between L1 and L2 (networks) and do so in a very seamless manner.

A lot of people, for many reasons, are unfamiliar with the Bitcoin DeFi ecosystem. Can you tell us more about it, and what is Leather’s role in it? Also, what do you say to users who want Bitcoin to remain unchanged, the way it has been since its inception in 2009?

A: Bitcoin based DeFi, I’d say is generally taking place these days or sort of emerging in two places. You have primitives for Bitcoin based divide on Bitcoin itself. That’s an L1 (Layer one), mostly driven by Ordinals and within Ordinals fungible token standards like BRC 20. And then you have also Bitcoin related taking place on Layer2 like Stacks that have smart contract functionality. (…) most of that’s taking place via Ordinals on the layers. It’s taking place mostly through the native smart contracting capabilities of those layers.

To the question of people who want Bitcoin to remain unchanged, I think that the folks who are working on Bitcoin-related functionality, I’d say Bitcoin web3 in general, which includes DeFi. We’re trying actually to do more with Bitcoin without having to change Bitcoin really at all. So actually our general approach is to try to extend what you can do with Bitcoin without having to change it fundamentally because we do, of course, want to respect all the work that’s gone into Bitcoin to date and we’d love the security profile of Bitcoin. And that has to do with taking a relatively conservative approach. And so if you look at Ordinals, for example, which is really an innovation based on taproot introduced fairly recently, there’s a lot of innovation going on as a result of taproot ordinals without having really changed anything else about Bitcoin. It is a design space that is actually quite respectful of Bitcoin as blockchain.

There is a theory that every bull run is preceded by an increase in on-chain activity, with fees following prices on their way to new highs. What do you think of network activity right now? Do you think much of it can now be attributed to Ordinals and other applications?

A: Going back to the start of the year, Ordinals has been a huge exception to the general rule of the crypto bear market because we’ve experienced essentially two bull runs inside of Ordinals itself, which I think have boosted Bitcoin’s position and definitely has boosted network activity on Bitcoin and fee rates have gone up as a result of it. And really shown that this idea of storing data on chain on Bitcoin beyond just simple transactions and applying those primitives to various web3 applications, whether it’s art or whether it’s new token standards, that can have a huge effect on just how Bitcoin is used and also valued. (…) it’s hard for me to really pinpoint any given reason why any given month the Bitcoin may have gone up in price because of other factors, but it, it’s pretty clear that it has an overall effect (on network activity). Ordinals has been a positive influence on the interest in Bitcoin.

ETFs, store of value, Gold 2.0, Halving, and now Bitcoin DeFi, what is the current narrative dominating the BTC market? And which narrative will gain more prominence in the long run?

A: I think the dominant narrative around Bitcoin is probably that in the wake of the last crash, really it’s a spillover from last year. I think there are a lot of weaker technologies, weaker platforms and assets that were shaken out and people ran away from and they’ve taken more safe harbor and Bitcoin come back to Bitcoin as really the one that’s stood the test of time. So that combined with the fact that people, since the start of the year with Ordinals in particular have opened up to that there are more frontiers to what you can do with Bitcoin. I think that combination has really driven sort of a renewed enthusiasm around Bitcoin. It’s a combination of, it’s been around the longest, it’s the most secure, plus it’s not a dinosaur that can’t evolve still. It actually has a lot of potential. It actually has both of those qualities that are very attractive, secure and conservative in one way, but it’s also more innovative and there’s more potential than people had realized before on the other hand.

Cover image from Unsplash, chart from Tradingview

Litecoin (LTC) whales are making their way back into the market once more as the bull market establishes itself. A number of large transactions have been flagged which suggests that these millionaire accounts are coming out to play.

Litecoin On-Chain And Whale Activity Hit 4-Month High

The Litecoin on-chain and whale activity has been on the rise recently, as reported by the on-chain analytics platform Santiment. In the report posted to X (formerly Twitter), Santiment revealed that there had been a big spike in the Litecoin on-chain activity.

The chart shared by the tracker showed the spike taking place in line with the price recovery, which would be the reason why investors are awakening once more. Santiment noted that this recovery in on-chain activity saw address activity on the blockchain, as well as whale activity reaching levels not seen since June, representing a 4-month high in this metric.

A total of 319,000 daily addresses were active on the network after this metric dropped drastically in the last few months Additionally, weekly whale transactions, that is transactions carrying more than $100,000 rose and touched a new 4-month high of 7,418.

These are not the only metrics that saw a spike as the dormant LTC address started seeing movement again. These addresses which had previously not seen movement for a while began to move coins around, adding to the current number of coins in circulation.

LTC Ready For A Shoot To $100?

The revival of on-chain activity for Litecoin is a welcome development for the network but it is not exactly bullish. The reason for this is how the LTC price has reacted since this activity commenced, which is not very encouraging.

As the dormant LTC started to move once more, the price began to decline. This suggests that this subset of holders may be selling their coins after holding and waiting for better prices. In this case, the selling pressure has outweighed the demand for the coin.

A continuation of this will likely see the price continue to fall further, and a recovery to $100 is still far off on the horizon. So this recent bout of activity may just be investors choosing to sell rather than coming back to participate in buying.

The LTC price already fell from its $69 level on Thursday to as low as $67 on Friday before mounting a small recovery. Presently, the Litecoin price is sitting at $67.8, representing a 2.14% decrease in the last day.

NEAR Protocol, a Blockchain Operating System (BOS), demonstrated notable growth in the third quarter of 2023, defying the challenging conditions of the overall cryptocurrency market. 

According to a recent report by Messari, key metrics for NEAR Protocol surged significantly over the past month, buoyed by recent price increases across the crypto market.

Surge In Transactions Drives Revenue Growth For NEAR

Per the report, despite a moderate downturn in the crypto market, with XRP and Grayscale facing court rulings in their favor, NEAR Protocol showcased resilience. The total crypto market capitalization dipped by 5.8%, with Bitcoin (BTC) and Ethereum (ETH) experiencing declines of 7.5% and 10.0% respectively. 

Within this context, NEAR’s circulating market capitalization decreased by 14% quarter-over-quarter (QoQ) to $1.08 billion, while its fully diluted market capitalization decreased by 17% QoQ to $1.12 billion. 

Nevertheless, NEAR Protocol maintained its position as the 40th largest crypto protocol by market capitalization by the end of the quarter.

One of the highlights in Q3 ’23 for the protocol was the revenue growth, which increased by 9% QoQ from $98,000 to $108,000. The average transaction fee remained at a low $0.001 throughout the quarter.

Regarding network activity, NEAR recorded substantial growth in addresses during Q3 ’23. Active addresses increased by 350% QoQ, reaching 260,000 daily active addresses, while new addresses saw a 274% QoQ increase, totaling 51,000 daily new addresses. 

This growth was primarily fueled by the launch of KAIKAINOW, NEAR’s leading application, and supported by contributions from the Web3 health and fitness app, Sweat Economy, and Aurora, a solution that allows the execution of Ethereum contracts in a “more performant environment” in the NEAR ecosystem.

TVL Drops To $52 Million In Q3 2023

According to Messari, NEAR’s Total Value Locked (TVL) experienced a 13% QoQ decrease, amounting to $52 million by the end of the quarter. NEAR ranked approximately 35th among blockchains in terms of TVL. 

Within the NEAR Network’s TVL, NEAR’s contribution accounted for $41 million (80%), while Aurora contributed $11 million (20%).

Regarding DEX trading volume, NEAR reported an average daily volume of $1.3 million, maintaining stability compared to the previous quarter. NEAR ranked approximately 30th among DEX trading volumes.

NEAR’s stablecoin market capitalization experienced a 27% QoQ decline, primarily driven by reductions in USDC and USDT. However, the native USDC was launched on NEAR during this period, while USN, the winding-down stablecoin from Decentral Bank, remained unchanged.

NEAR Token’s Bullish Momentum Continues

Regarding price action, as observed in the 1-day chart below, NEAR Protocol’s token, NEAR, has broken a prolonged downtrend that commenced on July 20 and concluded on August 18, leading to a phase of accumulation.

However, on October 19, the token initiated an uptrend, resulting in significant gains of 12% over the last 30 days, 22% within the fourteen-day timeframe, and 22.3% in the past week. Presently, the token continues its rally, exhibiting a 2.6% surge in the past 24 hours, bringing the current trading price to $1.23.

When considering the year-over-year period, the token remains significantly below its high in 2022, experiencing a decline of 60% over this duration. Furthermore, for NEAR to reclaim its 2023 yearly high, which stood at $2.83 and was achieved in April, the bullish momentum must persist.

It remains to be seen whether the token can sustain its current bullish momentum and establish a new yearly high, capitalizing on the rallies witnessed by the largest cryptocurrencies in the market in the upcoming months to generate further profits.

Featured image from Shutterstock, chart from TradingView.com 

Bitcoin (BTC) enthusiasts and investors have their eyes fixed on the potential launch of a spot Bitcoin exchange-traded fund (ETF), eagerly awaiting its impact on the cryptocurrency market. With predictions of substantial inflows, industry experts are delving into the potential ramifications of such a development, exploring its capacity to transform the landscape of digital assets. 

Matt Hougan, the CEO of Bitwise, the world’s largest crypto index fund manager, shared his insights on the promising future of a spot BTC ETF, projecting a surge of around $50 billion within the first five years of its launch.

The Potential Impact Of A Spot Bitcoin ETF

The concept of a Bitcoin exchange-traded fund centers around the idea of a fund that tracks the price of Bitcoin and can be traded on a stock exchange. This financial product allows investors to gain exposure to the price movements of Bitcoin without needing to directly own the cryptocurrency. 

The introduction of a spot BTC ETF is anticipated to pave the way for an influx of institutional and retail investors, catalyzing a significant flow of capital into the crypto market. Hougan’s projections foresee an impressive $5 billion inflow in the initial year alone, setting a solid foundation for the anticipated five-year influx of $50 billion.

Considering the potential impact of a spot Bitcoin ETF, market analysts remain cautiously optimistic about its influence on the value of Bitcoin. While Hougan suggests an increase in demand for Bitcoin, the exact magnitude of this effect remains uncertain. The current market conditions, marked by a recent 1.1% dip in Bitcoin’s price following a week-long surge of 17.0%, underscore the sensitivity of the cryptocurrency market to external economic indicators.

Inflation, Interest Rates, And The Crypto Market

Amidst the anticipation surrounding the potential launch of a spot BTC ETF, the looming release of the United States Core Price Consumption Expenditure (PCE) data by the US Bureau of Economic Analysis (BEA) poses a significant concern for the crypto market. This widely watched inflation measure is closely monitored by the Federal Reserve, with expectations of a rise in the upcoming report. If the PCE data aligns with projections, the ramifications for the crypto market could be notably bearish.

The potential for higher inflation to indicate a prolonged period of elevated interest rates could prompt a shift in investor sentiment, leading to a reduction in the allocation of funds towards riskier assets such as Bitcoin and other cryptocurrencies. The perceived stability and security offered by traditional assets like Gold might lure investors away from the volatility of the crypto market, adding a layer of complexity to the already intricate dynamics of digital asset investments. 

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock