Gold has continued rising in financial markets, hitting new all-time high (ATH) prices against the U.S. dollar. The precious metal’s price rose to levels close to ,450 per ounce this Monday, fueled by geopolitical tensions and the expectations of a Federal Reserve dovish move on interest rates. Other motives propelling gold prices would be the […]
Bitcoin News
Blackrock Bitcoin ETF Attracts 414 Institutional Holders — Analyst Says IBIT ‘Blows Away Record’
Blackrock’s spot bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT), has amassed 414 insitutional holders in less than three months, according to filings with the U.S. Securities and Exchange Commission (SEC). A senior Bloomberg analyst described this achievement as “mind-boggling” and “highly rare” for new ETFs. Other recently launched ETFs have significantly fewer institutional […]
Bitcoin News
Optimism Network Activity Metrics Approach Record Levels, Propelling OP 9% Higher
Layer 2 (L2) scaling solution Optimism reported a series of strong network metrics in the first quarter (Q1) 2024, with its native OP token surging 9% on the back of this bullish momentum.
Optimism Sees Higher Activity And Rising Transaction Fees
According to a recent Messari report, Optimism’s circulating market cap increased 11% quarter-over-quarter (QoQ) to .7 billion, while its fully diluted market cap rose 1% to .7 billion.
Despite the broader crypto market rally, with Bitcoin (BTC) and Ethereum (ETH) gaining 69% and 53% QoQ, respectively, OP’s market cap ranking slipped from 26th to 39th among all blockchain networks. However, within the Ethereum ecosystem, OP remains one of the top four rollups by market capitalization.
Driving this growth was a significant uptick in Optimism network activity. Daily active addresses reached 89,000 in Q1 2024, a 23% QoQ increase, while daily transactions surged 39% to 470,000 over the same period. These metrics approached, but did not quite reach, their all-time highs in Q3 2023.
The network’s revenue also saw a substantial 78% QoQ increase to million, driven by higher activity and a 48% rise in the average transaction fee to .42. However, this average fee dropped significantly in the latter half of March due to the implementation of Ethereum Improvement Proposal (EIP) 4844, which reduced L1 submission costs by 99%.
Total Value Locked Jumps 18% In Q1
Despite the fee reduction, Optimism’s on-chain profit for Q1 2024 increased 14% QoQ to million. The network’s Total Value Locked (TVL) also grew by 18% to .2 billion, though its TVL ranking among all networks fell to 11th place.
Within Optimism’s TVL, the DeFi sector dominated, accounting for 86% of active addresses. According to Messari, non-fungible token (NFT) applications and gaming followed with 6.9% and 6.7%, respectively.
TVL’s leading protocols included Synthetix (7 million, +4% QoQ), Aave (0 million, +52% QoQ), and Velodrome (1 million, +10% QoQ).
Optimism’s stablecoin market capitalization also grew significantly, reaching 9 million (+32% QoQ) by the end of Q1 2024. Circle’s USDC stablecoin and Tether’s USDT made up most of this, with USDT seeing a 64% QoQ surge to 2 million, or 63% of the total stablecoin market cap on Optimism.
OP Rebounds Alongside Crypto Market Resurgence
Despite Optimism’s strong performance across key metrics in Q1 2024, the network’s native token, OP, did not see a corresponding price increase at the end of Q1. Instead, OP followed the broader market downtrend, hitting an annual low of .80 just one month after hitting an all-time high of .84 in March.
However, OP has followed suit as the overall cryptocurrency market has seen a resurgence of bullish momentum in the past few days. In the past 24 hours, the token has recorded a 9% price increase and a 3% uptick in the past week, currently trading at .56.
Furthermore, CoinGecko data shows a 19% increase in OP’s trading volume over the past 48 hours, reaching 0 million.
While this renewed bullish sentiment is encouraging, OP still trades 46% below its all-time high and faces significant resistance levels soon before a potential retest of this milestone.
The first key resistance is at .65, followed by .90, which must be overcome before the token can push towards the .00 level. Conversely, the .34 support level has proven crucial and must be monitored closely in case of any bearish resurgence.
Featured image from Shutterstock, chart from TradingView.com
Is The Crypto Winter Thawing? US Bitcoin ETFs Record First Inflows In Weeks – Coinshares
After experiencing outflows for four consecutive weeks, US spot Bitcoin exchange-traded funds (ETFs) have marked a notable shift in momentum, witnessing net inflows once again.
According to recent data from CoinShares, digital asset investment products have seen inflows totaling 0 million for the first time in five weeks.
This change suggests renewed investor interest in crypto-focused investment products, particularly in the United States, where most of these inflows, totaling over 0 million, occurred.
A Mixed Bag Of Global Investment Flows
Grayscale, a major player in the digital asset space, reported a significant decrease in weekly outflows, recording its lowest since January at 1 million. This trend indicates a potential stabilization in the market after a period of volatility and declining interest.
Meanwhile, interaction between US regulators and spot ETF issuers has remained minimal, particularly for spot Ethereum ETF applications.
This lack of engagement has fuelled speculation that approval for these ETFs might not be approaching, as reflected by the amount of outflows from Ethereum-based products. James Butterfill, Head of Research at Coinshares, particularly noted:
Low interaction by the US regulators with ETF issuer applications for a spot Ethereum ETF have increased speculation that the ETF approval is not imminent, this has been reflected in outflows which totalled USm last week.
On a global scale, the investment landscape showed mixed signals. After a week of record inflows likely driven by “seed capital” post-Bitcoin ETF launches, as highlighted by Butterfill, Hong Kong saw a significant drop to million in inflows.
Conversely, Switzerland experienced inflows amounting to million. Canada and Germany continued to see outflows, with their year-to-date figures reaching a combined 0 million, indicating sustained bearish sentiment in these markets.
Bitcoin has rebounded with 4 million in inflows, counteracting a generally “weak month.” In contrast, short-Bitcoin exchange-traded products (ETPs) recorded outflows totaling .1 million, up to million over the last eight weeks.
These figures highlight the volatile dynamics within the crypto market, with Bitcoin currently showing stronger performance than Ethereum.
Bitcoin And Ethereum Market Performance
Over the past 24 hours, Bitcoin surged nearly 3%, while Ethereum increased by only 1.2%. Despite these gains, both assets are down by 2.3% and 6% over the past week.
Amidst these market movements, crypto analyst Ali provided insights into Bitcoin’s potential paths. According to Ali, Bitcoin could climb to ,000 if it reclaims ,290 as a support level.
Failing to achieve this could see the flagship crypto drop to support at ,970, based on Market Value To Realized Value (MVRV) extreme deviation pricing bands, identifying this figure as the all-time mean.
If #Bitcoin can reclaim ,290 as support, it is likely to rise towards ,610. However, if it fails to surpass ,290, $BTC might retest support at ,970. pic.twitter.com/s4D1fTEU7k
— Ali (@ali_charts) May 12, 2024
Featured image from Unsplash, Chart from TradingView
Zambian Currency, the Kwacha, Plunges to New Record Low Against US Dollar
Zambia’s worsening shortage of foreign exchange as well as one of its worst droughts in recent memory saw the local currency drop to a record low of K27.3 to the dollar. As explained in the report, the kwacha has lost as much as 17% in the past six months. Forex Shortages: The Impact of Drought […]
Bitcoin News
Marathon Sets New Record by Mining Bitcoin’s Largest Block, Showcasing the Logos’ Manifesto
On May 3, the Bitcoin network validated its largest block to date at block height 841,886, which included an inscription showcasing the technology stack dubbed Logos’ manifesto. This block, similar to the one that previously held the record as the largest, was mined by Marathon. Record-Setting 841,886 Bitcoin Block Mined, Outpacing Previous Milestone Marathon has […]
Bitcoin News
Is Ethereum Back? Record 267,000 New Users Spark Speculation
The winds of change are swirling around Ethereum, the world’s second-largest cryptocurrency. Despite a recent price dip, the network has witnessed a surge in new user activity, sparking a wave of optimism. However, the outsized influence of large holders, known as whales, continues to cast a long shadow.
New Wallets Open For Business
Data from blockchain analytics firm Santiment reveals a surge in new Ethereum wallets, with a record-breaking 267,000 created on April 28th and 29th. This influx marks the highest two-day increase since October 2022 and suggests a potential resurgence of interest in the Ethereum network.
#Ethereum saw a milestone as April came to an end. 266.6K new wallets were created on April 28th and 29th, the highest 2-day stretch of network growth since October 8th and 9th, 2022. It is a strong that $ETH continues expanding despite dipping prices. https://t.co/SN6xqc3JXV pic.twitter.com/KDcjhY30y5
— Santiment (@santimentfeed) May 1, 2024
This trend defies the current market downturn, with many cryptocurrencies experiencing significant price drops. Analysts speculate that the rise in new wallets could be fueled by several factors, including:
- Anticipation of future growth: Investors may be looking towards upcoming Ethereum upgrades that promise improved scalability and security, betting on the network’s long-term potential.
- Bargain hunters: The recent price dip might be seen as an attractive entry point for new investors seeking a discount on Ethereum.
On Minnows And Whales
While the number of new users is encouraging, a closer look at Ethereum’s address distribution reveals a stark disparity in holdings. According to CoinMarketCap, a staggering 97% of Ethereum addresses hold between and ,000 worth of the cryptocurrency. This signifies a large pool of small-scale investors, often referred to as “minnows.”
However, the real power lies with a select few. Whale tracking platform Clank estimates that whales, representing only 0.10% of all Ethereum addresses, control a whopping 41% of the total circulating supply. This translates to an average holding of nearly 10 million ETH per whale, valued at a staggering .7 million.
Holding Steady: A Vote Of Confidence?
Despite the recent price decline, Ethereum appears to be weathering the storm better than the broader crypto market. In fact, Ether is up more than 30% year-to-date (YTD) from an opening price of about ,282.
As of today, Ethereum sits at ,014, with a total market capitalization of 2 billion. Notably, the market experienced an average decline of 8.75% over the last week, highlighting Ethereum’s relative resilience.
Furthermore, data suggests that a majority of Ethereum investors (74%) are long-term holders, demonstrating a strong belief in the project’s future. This “hodling” mentality indicates a commitment to maintaining their Ethereum positions for the long haul, even in the face of short-term market fluctuations.
Featured image from Pixabay, chart from TradingView
Tether Q1 2024 Attestation Reveals Record $4.52 Billion Profits
Tether, one of the largest cryptocurrency companies, has recently released an attestation of its financial activity corresponding to Q1 2024. Tether registered a record-breaking .52 billion in profits, and disclosed its net equity levels, reporting .37 billion as of March 31, 2024. Tether issued over .5 billion USDT during this period. Tether Attestation Registers Record-Breaking […]
Bitcoin News
Record Withdrawal From US Bitcoin ETFs Marks Largest Single-Day Outflow
On May 1, 2024, U.S. spot bitcoin ETFs experienced their most significant single-day outflows since their inception on Jan. 11, 2024. ETF Institute Co-Founder: ‘Inflows Don’t Go up in a Straight Line’ Data sourced from coinglass.com reveals that these funds saw a withdrawal of 3.7 million on Wednesday, with Fidelity’s FBTC experiencing the highest outflow, […]
Bitcoin News
Stablecoin Giant Tether Strikes Gold: Achieves Record Net Profit Of $4.5 Billion In Q1
Stablecoin issuer Tether, a prominent player in the cryptocurrency market behind the widely used USDT stablecoin, has released its audit statement for the first quarter of 2024, accompanied by a report conducted by independent accounting firm BDO.
The report, which provides additional financial information beyond the reserves backing Tether’s fiat-denominated stablecoins, shows the company’s profit for the first quarter of the year, which saw an increased influx of capital into the market.
Tether Q1 2024 Financials Soar
Digging into the numbers, the first quarter of 2024 proved highly profitable for Tether, with a net profit of .52 billion.
The main contributors, the entities responsible for issuing stablecoins and managing reserves, reportedly generated approximately billion of this profit from net operating gains, primarily from US Treasury holdings. The remaining profits were attributable to mark-to-market gains on Bitcoin (BTC) and gold positions.
The report also highlighted Tether’s success in increasing its direct and indirect holdings of US Treasuries to over billion. This includes indirect exposure through overnight reverse repurchase agreements collateralized by US Treasuries and investments in US Treasuries through money market funds.
In a sign of significant growth, Tether also disclosed its net equity for the first time, revealing a figure of .37 billion as of March 31, 2024. This is an increase from the .01 billion equity reported as of December 31, 2023.
The report also highlighted a billion increase in excess reserves, which support the company’s stablecoin offerings, bringing the total to nearly .3 billion.
CEO Emphasizes Transparency And Stability
The BDO confirmation reiterated that Tether-issued tokens are 90% backed by cash and cash equivalents, underscoring the company’s stance on maintaining liquidity within the stablecoin ecosystem. Furthermore, the report revealed that over .5 billion worth of USDT was issued in the first quarter alone.
Tether Group’s strategic investments, which exceed billion as of the report date, span various sectors, including artificial intelligence (AI) and data, renewable energy, person-to-person (P2P) communication, and Bitcoin Mining.
In response to the latest report, Paolo Ardoino, CEO of Tether, expressed the company’s commitment to transparency, stability, liquidity, and responsible risk management.
Ardoino highlighted Tether’s record-breaking profit benchmark of .52 billion and the company’s efforts to increase transparency and trust within the cryptocurrency industry. Ardoino further claimed:
In reporting not just the composition of our reserves, but now the Group’s net equity of .37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.
Featured image from Shutterstock, chart from TradingView.com