PRESS RELEASE. Geneva, Switzerland, May 28, 2024 – The TRON DAO has officially announced LayerZero support for the TRON blockchain, making TRON the second non-EVM chain to be integrated into LayerZero’s cross-chain interoperability protocol. This significant development allows TRON ecosystem developers to seamlessly expand their applications to over 70 other networks supported by LayerZero. LayerZero […]
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Aave Network Set to Launch Following Aave V4 Protocol
In a recent social media post, Stani Kulechov, the founder of Aave, announced that the Aave Network is expected to launch following the completion of the Aave V4 protocol. This development is eagerly anticipated by the defi community, as the Aave Network is projected to become one of the largest Layer 2 networks on Ethereum, […]
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Bitcoin’s Network Strengthens: Mining Difficulty And Hash Rate Spike Amid ETH ETF Buzz
Bitcoin mining difficulty has adjusted upwards by nearly 2%, reaching over 84.4 trillion, as the network’s average hash rate surged past 600 EH/s.
This increase comes amid growing optimism in the crypto market, particularly due to speculation about the potential approval of spot Ethereum ETFs in the United States. Notably, Bitcoin mining difficulty measures how difficult it is to find a hash below a given target.
The Bitcoin network has a global block difficulty that adjusts every 2,016 blocks (roughly every two weeks) to ensure that the time between blocks mined remains around 10 minutes, despite the number of miners and their growing computing power.
This difficulty adjustment helps maintain the network’s regular block time, ensuring stability and security.
Significant Shifts In Bitcoin Mining
The adjustment of BTC mining difficulty seen earlier this month marked a significant shift, as the metric saw a drop of nearly 6%, the largest decrease since the bear market in December 2022.
This rebound in hash rate from the 580-590 EH/s range to over 600 EH/s aligns with a broader crypto market rally fueled by expectations of regulatory advancements in Ethereum products.
The concept of mining difficulty is crucial for understanding how Bitcoin self-regulates the production of new blocks. The difficulty increases as more miners join the network, making it harder to mine new blocks.
Conversely, the difficulty drops if the number of miners decreases, making mining easier. This mechanism ensures that the introduction of new BTC into the market remains steady and predictable, irrespective of fluctuations in the number of miners.
This recent increase in mining difficulty coincides with a slight recovery in Bitcoin’s hash price, which had fallen to an all-time low at the end of April.
The hash price, a metric developed by Luxor, a Bitcoin mining services firm, measures the expected earnings per unit of hash rate daily. It has rebounded from less than per PH/s per day to around .6 per PH/s per day, providing a minor relief to miners after the recent market downturns.
Bitcoin’s Price Movements And Future Expectations
While Bitcoin’s price has experienced a minor dip of 2% in the last 24 hours, it maintains a weekly uptrend of 3.9%, trading at ,132.
This movement is closely watched as investors and traders await the US Securities and Exchange Commission’s decision on spot Ethereum ETFs, which could significantly influence the entire crypto market.
In response to these developments, a prominent analyst known as BitQuant shared insights via social media platform X, predicting substantial growth for Bitcoin. According to BitQuant, Bitcoin is expected to reach ,000, with a significant rise to ,000 anticipated in May.
However, BitQuant also forecast a sharp decline from this local peak in June, maintaining that the overall timeline for this top has not changed.
Several updates for those here to build generational wealth and not involved in day trading:
1. Yes, #Bitcoin is going to K.
2. Yes, K will extend to June, but the sharp decline from this local top will also occur in June, so the overall timeline for this local top hasn’t… pic.twitter.com/VFvMweBVbs— BitQuant (@BitQua) May 22, 2024
Featured image created with DALL·E, Chart from TradingView
Pioneering Blockchain Security: CMO Xavier’s Strategic Leadership at Stake Vault Network
PRESS RELEASE. Stake Vault Network proudly introduces Mr. Xavier, the Chief Marketing Officer (CMO), whose strategic vision and expertise are pivotal in revolutionizing staking and node authentication within the blockchain industry. Mr. Xavier’s leadership is essential to the platform’s mission of enhancing security, efficiency, and scalability. Stake Vault Network at a Glance Stake Vault Network […]
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US Authorities Arrest Chinese Nationals Allegedly Behind Crypto Scam Network
An indictment unsealed in the Central District of California charges two Chinese nationals, Daren Li and Yicheng Zhang, with leading a scheme to launder at least million tied to an international crypto investment scam, often known as “pig butchering.” Li and Zhang allegedly managed a global network that laundered proceeds from fraudulent crypto investments, […]
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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
Token Terminal and Messari Release Research Reports on TRON Network For Q1 of 2024
PRESS RELEASE. Geneva, Switzerland, May 17, 2024 – Recent detailed analyses by Token Terminal and Messari have provided an in-depth review of the TRON network’s activity during the first quarter of 2024, emphasizing its competitive positioning and expansive growth within the blockchain sector. Token Terminal Analysis Token Terminal’s comprehensive report offers crucial insights into key […]
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Red Alert For Bitcoin: Network Hashrate Takes A 20% Dive
The post-halving world of Bitcoin continues to throw curveballs. After a hashrate surge to celebrate the block reward reduction in April, Bitcoin’s computational power has taken a nosedive, dropping 20% in recent weeks.
This unexpected decline has ignited a debate among analysts, with some sniffing out a fire sale and others urging caution.
Bitcoin: Hashrate Hiccup Or Miner Exodus?
Hashrate, a measure of the combined processing power dedicated to securing the Bitcoin network, typically climbs after a halving event as miners invest in more powerful rigs to compete for the reduced rewards.
However, this time around, the trend defied expectations. Experts like Maartunn, a pseudonymous analyst at CryptoQuant, believe this signals a potential “miner capitulation.”
Less efficient miners are now likely throwing in the towel. The halving, which cut block rewards in half, squeezed profit margins for miners using older equipment. As these miners shut down their operations, the hashrate dips.
Hash Ribbons Flash Warning Sign
Supporting Maartunn’s theory is a technical indicator called Hash Ribbons. This metric tracks the difference between short-term and long-term hashrate averages. When the gap widens, it suggests a decline in mining activity, potentially due to less efficient miners dropping off.
The recent hashrate plunge has triggered a spike in Hash Ribbons, historically a sign of miner capitulation that has often coincided with price lows for Bitcoin.
Bitcoin Miners Selling Off?
Further fueling the capitulation theory is a decrease in Bitcoin’s Miner Reserve. This metric tracks the amount of Bitcoin held in wallets associated with miners. A decline in the reserve suggests miners might be offloading their mined coins, potentially to cover operational costs or to exit the market altogether.
Undervaluation Signal Or Cyclical Dip?
Maartunn interprets these signs as a bullish indicator. Hash Ribbons often point to opportune moments to buy, he argues. Backing his claim is the Market Value to Realized Value (MVRV) ratio, which suggests Bitcoin might be undervalued.
This metric compares the current market price to the average price at which all Bitcoins were acquired. A negative MVRV, like the one Bitcoin currently has, suggests the asset is trading below its historical cost basis, potentially indicating a buying opportunity.
Related Reading: Buckle Up, XRP Fans: Analyst Eyes Price Explosion To .65 In Next 5 Days
Not Everyone On The Capitulation Train
However, not all analysts are convinced. Some argue that the hashrate decline could be temporary, perhaps due to factors like extreme weather events disrupting mining operations in certain regions.
Additionally, the post-halving period is typically one of adjustment for miners, and a short-term hashrate fluctuation might not necessarily signal a mass exodus.
The post-halving Bitcoin landscape is still unfolding. While the hashrate decline and other signs suggest a potential buying opportunity, particularly for long-term investors, the situation remains fluid.
Featured image from Shutterstock, chart from TradingView
EOS Network Foundation Founder: Bitcoin Halving Spurs Development of Solutions Enhancing Network Efficiency
With Bitcoin transaction fees recently becoming a more critical component of miner revenue, Yves La Rose, CEO of Exsat, believes there is “an increased incentive to adopt and develop solutions that enhance transaction throughput and network efficiency.” According to La Rose, this can be achieved by integrating advanced layer two (L2) solutions which expand the […]
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Shibaswap Migrates to Shibarium Network, Expanding Access to 2 Chains
On May 15, the development team for the meme token project SHIB announced that the decentralized exchange (dex) Shibaswap has been ported to the Shibarium blockchain. SHIB’s lead developer detailed that Shibaswap’s trading platform is now accessible to users of both the Ethereum and Shibarium networks. Shiba Inu Devs Port Shibaswap Over to Shibarium According […]
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