Monat: Januar 2023

• Polygon’s [MATIC] price surged by 10% as it surpassed Ethereum [ETH] in daily active users.
• Polygon’s on-chain growth was supported by its expanding DeFi protocols, such as Quickswap and Uniswap V3, which saw steady growth in UAW and transaction volume.
• Gains Network is another DeFi protocol built on Polygon that has been performing strongly.

Polygon has been on a roll in the crypto market as of late as its scaling solution MATIC recently surpassed Ethereum [ETH] in daily active users and investors could not have asked for more. According to data from Token Terminal, Polygon was locked in a close battle with Ethereum over the past week for the second spot at press time, with Binance Chain [BNB] holding on to the first position. This competition was reflected in MATIC’s price which soared by 10% over the past 24 hours at the time of writing.

The surge in MATIC’s price follows a bullish rally experienced since the start of 2023 which saw MATIC almost reversing the FTX-induced losses. The increased adoption was also reflected in Polygon’s on-chain growth, as the total value locked (TVL) across the platform recorded a jump of 1.13% to hit $1.19 billion. The growth in Polygon’s on-chain activity could have got solid impetus from its expanding DeFi protocols.

Popular protocols such as Quickswap and Uniswap V3 have seen steady growth in unique active wallets (UAW) and transaction volume. According to data from DappRadar, Uniswap’s volume surged by 60% over the past week while the number of active users across both the dApps rose marginally. Gains Network is another DeFi protocol built on Polygon that has been performing strongly and has created quite a flutter with its performance of late. The protocol has seen over 10,000 user accounts within a few weeks of its launch and has recorded over $11 million in volume in the same period.

All of these factors have certainly lifted Polygon’s [MATIC] price prediction for 2023-2024, and with the scaling solution continuing to develop and expand its user base, it is likely that the trend will continue for the foreseeable future.

• The European Commission is drafting legislation related to the digital euro, with the proposed bill expected to be presented by May 2023.
• European lawmakers and bankers have voiced their concerns regarding the utility of central bank digital currencies.
• Mairead McGuinness, European Union’s Financial Services Commissioner, has stated that the digital euro legislation will serve as a framework to establish its legal tender status.

The European Commission is pushing forward with the development of legislation related to the digital euro. The proposed bill is expected to be presented by May 2023. This comes at a time when European lawmakers and bankers are voicing their concerns regarding the utility of central bank digital currencies (CBDC).

Mairead McGuinness, European Union’s Financial Services Commissioner, recently briefed the Economic and Monetary Affairs Committee about the upcoming legislation. She stated that the legislation is necessary in order to establish the digital euro’s status as legal tender, as well as to create the necessary rules for anti-money laundering.

Markus Ferber, a German politician and a member of the European Parliament, was skeptical about the claimed utility that the currency could have when compared to conventional modes of payment. Fabio Panetta, a member of the European Central Bank’s executive board, also shared the concerns of the European lawmakers. He stated that CBDCs wouldn’t allow restrictions on how funds are spent.

The upcoming legislation related to the digital euro is expected to address these concerns and provide clarity on how the currency will be used. It will also establish the digital euro’s status as legal tender and create anti-money laundering rules. The European Commission is aiming to present the bill towards the end of May 2023.

• The 4-hour market structure was bearish, but the daily chart was bullish which hinted at a potential deeper retracement before a bullish continuation of Solana.
• Bitcoin continued to trade above the $20k mark, and Monday’s low at $20.6k served as support.
• There was a fair value gap to be filled on the daily chart in the $18.6-$22 zone, which could result in a dip before resuming the upward move.

The cryptocurrency market saw a surge in late 2020 and into the new year, with Solana (SOL) being no exception. SOL gained 212% in January and has been on a bullish run ever since. As of this writing, the price of SOL is trading just above the $23 mark. While the market structure on the 4-hour timeframe was bearish, the daily chart was bullish which hinted at a potential deeper retracement before a bullish continuation of Solana.

The overall market sentiment was also a factor to consider, as Bitcoin continued to trade above the $20k mark, and each passing hour reinforced the idea that a move upward to $22k was more probable than another dump toward $19k. Monday’s low at $20.6k served as support, and any lower timeframe deviations beneath this level have been a buying opportunity in the past two days.

Another factor to consider when assessing the outlook of SOL was the fair value gap to be filled on the daily chart. Marked in white, this FVG was seen in the $18.6-$22 zone. This meant that the price could fill this gap and dip some more to shake out long positions before resuming the upward move. Significant support levels lay to the south, even beneath the $18 mark. While it could be a good idea to bid at these levels, more risk-averse traders can wait for signs of short-term strength before entering the market.

All in all, the outlook for SOL was bullish, with the market structure and sentiment hinting at a move to the upside. The fair value gap on the daily chart could be a potential area of interest, as it could indicate a potential dip before a continuation of the rally. Risk-averse traders may want to wait for signs of short-term strength before entering the market, while those looking for a potential buying opportunity can keep an eye out for the FVG bottom at $18.6.

• The SEC has filed a charge against crypto exchange Gemini and crypto lending platform Genesis, accusing them of offering and selling unregistered securities through Gemini’s Earn program.
• The complaint was filed in the U.S. District Court for the Southern District of New York, and both companies are charged for violating sections 5 (a) and 5 (c) of the Securities Act of 1933.
• This action follows the fallout between the two firms over Gemini’s Earn program, which was launched in February 2021 and had 340,000 users and around $900 million in assets.

Today, the United States Securities and Exchanges Commission (SEC) filed a charge against crypto exchange – Gemini and crypto lending platform – Genesis in the U.S. District Court for the Southern District of New York. The commission alleged that the two firms violated sections 5 (a) and 5 (c) of the Securities Act of 1933 by offering and selling unregistered securities through Gemini’s Earn program.

The charge follows a public fallout between the two companies which began after the launch of Gemini’s Earn program in February 2021. The program allowed users to loan their crypto to Genesis in exchange for interest, while Gemini received a fee for acting as an agent between Genesis and its customers. The program had 340,000 users and around $900 million in assets at the time, however, the money continues to remain locked after Genesis suspended withdrawals as a result of FTX’s collapse.

SEC Chairman Gary Gensler commented on the charge, saying, „Today’s action shows that the SEC is committed to enforcing the securities laws with those who offer digital asset securities, regardless of the underlying asset.“ He further added, „We will continue to focus on protecting investors from those who fail to comply with the securities laws when they offer digital asset securities.“

The commission’s press release also stated that investigations into other securities law violations, and into other entities and persons relating to the alleged misconduct, are ongoing. It remains to be seen how the firms will respond to the charge and if they will be able to come to a satisfactory solution for the customers that are currently locked out of their assets.

• Deep-pocket investors renewed their interest in ETH as the coin hit its highest value in three weeks.
• On-chain data suggested a decrease in ETH’s value in the coming days, but whales have resumed their activity in topping up their Ethereum holdings.
• ETH holders who refilled between 16 – 28 December 2022 might have no cause to feel the deterioration, as shown by the Market Value to Realized Value (MVRV) ratio.

Investors have recently taken renewed interest in Ethereum (ETH), as the cryptocurrency hit its highest value in three weeks. According to a 4 January update from Santiment, whales were seen interested in increasing their ETH holdings. The altcoin’s king registered a 4.12% increase over the last seven days, which was sufficient to skyrocket Ethereum’s value to a three-week high.

Although CoinMarketCap’s data showed that the value had dropped to $1,251 at press time, Santiment highlighted that the whale accumulation was not yet up to the point it was on 16 December 2022. On-chain data, however, suggested a decrease in ETH’s value in the coming days.

Despite the drop, ETH holders who refilled between 16 – 28 December 2022 might have no cause to feel the deterioration. This was the condition revealed by the Market Value to Realized Value (MVRV) ratio. Transactions worth $100,000 and above reached the new year peak at 612 on 4 January, however, there was a dip in that regard as well.

All in all, investors have renewed their interest in Ethereum, yet the on-chain data suggests a decrease in the coming days. Furthermore, ETH holders who refilled between 16 – 28 December 2022 might have no cause to feel the deterioration as shown by the Market Value to Realized Value (MVRV) ratio.

• Ethereum Classic’s hash rate bounced back slightly, potentially indicating increased network activity.
• The latest price pump occurred on 4 January, when ETC bulls pushed the token up by over 20% in one day.
• The upside of ETC might be limited, as it has come into contact with its 50-day moving average and crossed above the 50% RSI level.

Ethereum Classic has been experiencing a surge in activity in recent days. A potential reason for this is the pivot in Ethereum Classic’s hash rate, which has had an undeniable impact on ETC’s price action. The Ethereum Classic hash rate declined for most of December but pivoted towards the end, indicating increased miner activity. This may be due to higher miner profitability, which would suggest that there is a significant surge in transactions.

The idea that ETC transactions have increased in the last few days is supported by a surge in volume. This has resulted in a sizable uptick in ETC’s price action, which traded at $18.63 at the time of writing. This rally was triggered by a surprise attack on 4 January, when ETC bulls pushed the token up by over 20%.

However, this rally might be restricted, especially now that ETC has come into contact with its 50-day moving average. Furthermore, ETC’s price has also crossed above the 50% RSI level. So far, the price has experienced minor corrections, but its bullish momentum might be limited. Every once in a while, Ethereum Classic [ETC] registers a large price pump that is usually associated with whale activity.

Overall, Ethereum Classic’s hash rate pivot and recent surge in volume suggest that the network is becoming more active. The bullish momentum might be limited, however, as it has come into contact with its 50-day moving average and crossed above the 50% RSI level.