Weekly Crypto Market Wrap, 5th February 2024
Week in Review
– Hong Kong Securities and Futures Commission accepts first spot Bitcoin ETF application.
– BlackRock Bitcoin ETF surpasses $2 billion in holdings.
– Ethereum nears “Dencun” network upgrade, introducing proto-danksharding.
– Visa enables crypto withdrawals on debit cards across 145 countries, following Transak partnership.
– Tether (USDT) registers record $2.85 billion profits in Q4 2023.
– China set to introduce revised crypto regulations by 2025.
– FOMC: Rate cut in March is “unlikely,” needs more signs of easing inflation.
Technicals – BTCUSD
Technically we are at an interesting juncture. The false break of the inner trendline is holding, and the price is compressing between the 42,000 and 44,000 levels. Crypto options volatility continues to drop, indicating a potential breakout. Fundamentally, strong indicators like BTC halving and major Ethereum upgrades suggest a short-term rally.
Key levels: 38,000 / 40,000 / 44,000 / 46,000 / 50,000
Spot Desk
Stablecoin off-ramping dominates flows. The desk sees a significant skew towards stablecoin and fiat offramping this week. The Australian Dollar (AUD) dipped to a low of 0.65023 (AUD/USD), bringing a significant increase in off-ramping activities into the weekend.
Net Positive Bitcoin (BTC) ETF Inflows: Opportunistic investors steadily bid up BTC – climbing 1.3% WoW as net positive BTC ETF inflows continued for 4 consecutive days.
Blockchain Oracles emerge: Oracle governance tokens Chainlink (LINK) and Pyth Network (PYTH) rise significantly.
Portfolio Diversification Idea
Encompass the Fundamental Pillars of Web3: Consider researching the long-term bull case for Oracle networks – hit up our spot desk for flows and any views. Expected Impact: Long-term Bullish.
Derivatives Desk (WHOLESALE INVESTORS ONLY)
Volatility Trending Lower: Implied volatility is still coming off in the options market. Two likely possibilities over the next few months: 1. Implied volatility drifting lower. 2. Another ETF-based rally leading to a pickup in volatility.
Trade Idea – Altcoin Discount Notes: Investors can take advantage of the yield at current levels for either entering a long position or earning a high fixed return if the underlying expires above a predetermined price.
What is Farcaster and Why Is Crypto So Excited About the Twitter Alternative?
Decentralized Social Media Protocol Making Waves
Decentralized social media protocol Farcaster has surged in popularity following a recent game-changing update. Let’s delve into what makes Farcaster stand out and why the crypto community is buzzing with excitement.
The Rise of Decentralized Social Media
Since Elon Musk’s acquisition of Twitter in late 2022, several decentralized social media protocols have emerged, aiming to leverage blockchain technology for transparent and uncensorable online interactions. Farcaster is the latest player in this space, garnering significant attention for its innovative approach to social networking.
Exploring Farcaster’s Features
Founded in 2020 by Coinbase alums Dan Romero and Varun Srinivasan, Farcaster operates as a social media protocol built on Optimism, an Ethereum scaling network. At its core, Farcaster offers a decentralized ecosystem where users can access various integrated apps, with Warpcast being the most prominent among them.
Warpcast: Farcaster’s Flagship App
Warpcast functions as a Twitter-like platform within the Farcaster network, allowing users to post, follow others, and engage with content. Notably, many influential figures in the crypto space, including Vitalik Buterin and Tim Beiko, have established a presence on Warpcast.
Unique Selling Points of Farcaster
Farcaster distinguishes itself from traditional social media platforms by prioritizing censorship resistance, data ownership, and seamless interoperability across its network of apps. Moreover, Farcaster employs innovative measures to combat bot activity, such as implementing a sign-up fee and utilizing storage units to limit user interactions.
Introducing Frames: A Game-Changing Feature
The introduction of Frames on January 26 marked a significant milestone for Farcaster. Frames enable users to access a wide range of functionalities, including NFT minting, gaming, and e-commerce, all within the Farcaster ecosystem. Powered by Farcaster’s robust EdDSA authorization system, Frames offer a secure and seamless user experience.
Explosive Growth and Future Expansion
Since the rollout of Frames, Farcaster has experienced a meteoric rise in user activity, with daily engagements surging over 1,300%. The platform now boasts over 28,000 daily users and continues to attract attention from the crypto community. Additionally, Farcaster plans to expand its network to support Solana, further enhancing its versatility and accessibility.
Conclusion: Farcaster’s Impact on Social Media
As Farcaster reshapes the landscape of social media with its decentralized approach and innovative features, it underscores the growing demand for alternative platforms that prioritize user privacy and control. With its recent surge in popularity, Farcaster has solidified its position as a frontrunner in the decentralized social media space, offering users a glimpse into the future of online interactions.
Who is John Knopf?
Capturing the Surreal Beauty of Landscapes Everywhere
Early Connection with Nature
From a young age, John Knopf’s fascination with the great outdoors led him to landscape photography. Challenging conventions, he celebrates nature’s unbridled spirit through his lens, reflecting a deep appreciation for the world.
Internationally Acclaimed Photographer
Today, John Knopf is an Emmy-nominated landscape photographer renowned for his panoramic views and ability to capture nature’s essence. His journey blends mystery, mastery, and a relentless pursuit of beauty.
Recognized Talent
Over the last fifteen years, John’s work has graced the pages of esteemed publications and been exhibited globally. Notably, he curated photography galleries for TIME and National Geographic, leaving an indelible mark on the art world.
Innovative Ventures
John Knopf’s ventures into NFTs and fractionalized vaults showcase his innovative spirit. By democratizing access to art and rediscovering his passion amidst challenges, he continues to redefine the photography landscape.
FOTO World: Revolutionizing Photo Curation
FOTO World, spearheaded by John Knopf, aims to create a platform for photographers to showcase their work. Utilizing blockchain technology, it offers a democratic approach to curation, bridging the gap between traditional and digital art worlds.
Artist’s Statement
John Knopf’s passion for nature and photography culminates in his quest for new beginnings and discoveries. His art invites viewers to join him on a journey of exploration and appreciation for the beauty of our planet.
Everything about Pixelmon and Kevin: From NFT Punchline to $8 Million Raise
Pixelmon’s Journey: A Rollercoaster Ride in the Crypto World
Pixelmon, once scorned as an NFT punchline, is making headlines again with an $8 million seed raise and plans for the launch of its MON token. Let’s delve into the journey of Pixelmon and its iconic character, Kevin.
From NFT FOMO to Redemption: Pixelmon’s Evolution
Initially propelled by NFT frenzy, Pixelmon garnered attention for its Pokémon-inspired creatures. However, its lackluster artwork and management issues led to a tumultuous period, dampening community trust.
A Fresh Start: Under New Ownership and Funding
Amidst the chaos, Pixelmon found redemption through an acquisition by LiquidX in 2022. Now, with a new team and substantial seed funding, Pixelmon is poised for a comeback.
The Rise of Kevin: From Meme Sensation to Mascot
Kevin, Pixelmon’s ogre-like character, captured the hearts of fans and became the face of the brand. Despite its humble beginnings, Kevin has emerged as a symbol of resilience and redemption.
Gaming Revolution: Pixelmon’s Ambitious Plans
Pixelmon is set to revolutionize the gaming industry with its diverse portfolio of games. From hypercasual titles like PixelPals to large-scale adventures like Hunting Grounds, Pixelmon aims to cater to a wide range of audiences.
The Mon Protocol: Empowering NFT Holders
With the upcoming launch of the MON token and the Mon Protocol, Pixelmon is paving the way for decentralized governance of its IP. NFT holders will play a crucial role in shaping the future of Pixelmon, ensuring a community-driven approach to growth and development.
Conclusion: A Bright Future Ahead
As Pixelmon embarks on its journey with renewed vigor and purpose, the crypto world eagerly awaits its next chapter. With a strong foundation, innovative vision, and unwavering community support, Pixelmon is poised to leave a lasting impact on the gaming industry.
$WEN Airdrop Sparks Frenzy as Solana Meme Coin Targets a Million Wallets
The Arrival of WEN: A New Player in the Solana Ecosystem
The Solana blockchain has been buzzing with excitement following the launch of WEN, a new meme coin that has captured the attention of crypto enthusiasts. Let’s explore the frenzy surrounding the WEN airdrop and its impact on the Solana community.
Launching WEN: A Massive Airdrop Experiment
WEN made its grand entrance through a large-scale airdrop orchestrated by decentralized exchange aggregator Jupiter. With ambitions to distribute tokens to over a million eligible Solana wallets, including active Jupiter users and holders of popular NFT projects, the WEN airdrop set out to democratize access to the new meme coin.
The Surge of Activity: Chaos and Excitement
As the airdrop unfolded, chaos ensued as nearly 118,000 wallets attempted to connect simultaneously. Despite technical hiccups reported by some users, Solana held steady amidst the immense demand, showcasing its scalability and resilience in the face of surging activity.
The Story of WEN: From Poem to Fractionalized NFT
At the heart of WEN lies a unique concept—a fractionalized NFT based on a poem by @weremeow, divided into one trillion pieces to create individual WEN tokens. This innovative approach positions WEN as the first community coin based on fractional NFTs, adding a layer of creativity and community involvement to its genesis.
Claiming WEN: A Lucrative Opportunity for Eligible Wallets
For eligible wallets, claiming the WEN airdrop presented an opportunity to participate in the burgeoning Solana meme coin ecosystem. With each wallet entitled to 645,652 tokens, valued at approximately $92 based on current prices, the airdrop offered a potentially lucrative reward for participants.
The Future of WEN: Unclaimed Tokens and Beyond
As the deadline for the WEN airdrop approached, approximately 41% of the available tokens remained unclaimed—a testament to the widespread interest and engagement surrounding the meme coin. With the launchpad experiment paving the way for future token distributions, the journey of WEN is far from over.
Conclusion: A Milestone Moment for Solana and WEN
The WEN airdrop represents a milestone moment for both the Solana ecosystem and the burgeoning meme coin community. As the excitement continues to unfold, WEN stands poised to make its mark in the ever-evolving landscape of decentralized finance and digital assets.
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