Ethereum’s Strength: Leading TVL and Transactions Despite Market Volatility

Posted on November 1, 2024 by Arslan Butt

According to The DeFi Report, Ethereum recently reclaimed 42% of the total value locked (TVL) previously moved to Solana.

As Ethereum’s dominance in DeFi continues, its position remains strong across several metrics despite challenges.

Ethereum’s TVL Dominance and Layer-2 Expansion

Ethereum leads in total TVL, holding $48.8 billion on its foundational layer, far surpassing Solana’s $6.27 billion. Ethereum also commands a large portion of aggregated layer-2 volumes, with networks like Base, Arbitrum, Polygon, and Avalanche significantly contributing to its ecosystem.

Over the past 30 days, Ethereum handled $116 billion in on-chain decentralized application (DApp) volume, with transaction fees remaining stable, as reported by DappRadar.

Ethereum’s staking rewards, however, lag behind competitors. StakingRewards data shows Ethereum’s staking yield at 3.4%, compared to Solana’s 6.5% and Tron’s 4.5%. This disparity has led to a net withdrawal of 180,000 ETH from staking within the same period.

Inflows and Outflows Between Ethereum and Solana

Ethereum saw an inflow of $2.36 billion from Solana year-to-date, with over $1 billion returning to Ethereum. However, Ethereum’s outflow to Solana represents only 2.7% of Solana’s TVL, signaling Ethereum’s strength despite notable outflows.

Ethereum’s TVL remains robust, exceeding $50 billion, according to DefiLlama. Additionally, Valkirty reports that 83% of net withdrawals, totaling $6 billion year-to-date, are reinvested in Ethereum-affiliated layer-2 solutions.

This trend indicates that much of the value moving off-chain remains within Ethereum’s ecosystem, potentially returning more value to the network.

Rising Competition and Technological Innovations

On October 26, 2021, Solana briefly surpassed Ethereum in daily transaction fees, reaching $4.7 million compared to Ethereum’s $2.67 million. This increase was largely driven by Raydium, a Solana-based DEX.

As competition grows, Ethereum developers are working on scalability improvements. The proposed Ethereum Improvement Proposal (EIP) 7742 aims to introduce dynamic blob pricing, enhancing transaction efficiency without sacrificing scalability.

Additionally, the anticipated Ethereum Pectra upgrade in early 2025 could increase maximum block size to 2.7 gigabytes, supporting low-cost transactions while balancing ETH staking rewards.

U.S. Government Liquidates Seized Crypto Assets

In a related development, the U.S. government has been actively selling seized assets from Sam Bankman-Fried’s Alameda Research. Recently, approximately 82,000 ANT tokens were sold through AragonDAO’s redemption mechanism, yielding over $1 million in ETH.

Following Aragon Association’s decision to disband, users have until November 2, 2024, to redeem tokens, after which unclaimed tokens will be permanently burned.

Key Highlights:

Ethereum’s Resilience: Dominates with $48.8B in TVL, maintaining strong layer-2 activity.
Inflows vs. Outflows: $2.36B YTD inflow from Solana; outflows minimal in impact.
Government Crypto Sale: U.S. nets over $1M in ETH from seized ANT token sales.

This outlook underscores Ethereum’s adaptability amid competitive pressures and technological shifts, maintaining its foothold as a DeFi leader.

JPMorgan Predicts $4.4B Bitcoin Inflows as Retail Demand Surges Ahead of U.S. Election

Posted on November 1, 2024 by Arslan Butt

According to a JPMorgan report, the upcoming US presidential election could have a big impact on bitcoin and gold demand if Trump wins.

The report by managing director Nikolaos Panigirtzoglou says a Trump win could prompt retail investors to go all in on the “debasement trade” – investing in assets like bitcoin and gold that are seen as hedges against currency devaluation and inflation.

Continue reading “JPMorgan Predicts $4.4B Bitcoin Inflows as Retail Demand Surges Ahead of U.S. Election” →

WTI Oil Prices Rise Over $1 Amid Middle East Tensions and OPEC+ Production Uncertainty

Posted on November 1, 2024 by Arslan Butt

WTI crude oil prices extended gains on Friday, rising over $1 a barrel, as geopolitical instability in the Middle East fueled concerns of supply disruptions.

Reports indicate that Iran is preparing to launch an attack on Israel from Iraq, potentially within days and possibly before the U.S. presidential election on November 5. According to Axios, which cited two anonymous Israeli sources, Iran’s expected assault could involve a large number of drones and ballistic missiles. This threat has intensified investor worries over oil supply security, as the region’s volatility often ripples through global energy markets, driving up prices.

Continue reading “WTI Oil Prices Rise Over $1 Amid Middle East Tensions and OPEC+ Production Uncertainty” →

U.S. Payroll Data and Fed Rate Outlook Keep Gold Prices Steady at $2,746

Posted on November 1, 2024 by Arslan Butt

Gold prices traded relatively flat on Friday, with spot gold holding at $2,746.09 per ounce as of 02:35 GMT, as investors took a cautious stance ahead of the U.S. nonfarm payrolls report.

This data, due at 12:30 GMT, is anticipated to offer insights into the Federal Reserve’s future interest rate moves. U.S. gold futures were up slightly, gaining 0.2% to reach $2,755.70 per ounce.

According to Edward Meir, an analyst at Marex, market participants are largely adhering to a “buy-the-dip” strategy, expecting price dips to present buying opportunities.

“This strategy is likely to remain in play through the U.S. election and perhaps beyond, as political and economic uncertainty persists,” Meir commented.

Continue reading “U.S. Payroll Data and Fed Rate Outlook Keep Gold Prices Steady at $2,746” →

XRP Shrinks: Will This Grayscale Request To The SEC Drive Ripple To $0.66?

Posted on November 1, 2024 by Dalmas Ngetich

XRP is firm when writing, rejecting attempts to push lower, looking at events in the daily chart. Sellers are in control, and should the coin drop below $0.50, the local support could trigger a massive sell-off, forcing the coin to the $0.45 and $0.40 region. From a top-down preview, the path of least resistance is northwards, shaped by the bulls of Q3 2024. Bulls have a lot to prove at the moment. If there is resumption of September gains, XRP must close above $0.53 and $0.55, reversing losses from October 30.

At spot rates, sellers are in control. If price action remains unchanged today, the bears of early October could flow back, not only forcing XRP below $0.50 but also triggering a possible sell-off that may reverse all Q3 2024 gains. Over the last day, the coin has been down, losing 2%. The average trading volume is around $1.1 billion, which is decent.

Traders are keeping track of the following XRP and Ripple news:

Although prices are down, one analyst thinks technical candlestick arrangements favor bulls. If anything, the analyst continued, this is the last time to buy cheap.
The United States SEC has acknowledged a file in which Grayscale is seeking to convert a fund into an ETF. Among the assets held is XRP, though Bitcoin and Ethereum constitute a big part of the product.

XRP Price Analysis

[[XRP/USD]] is flat when writing.

The support is at $0.50.

However, with losses on October 31, there is a risk of a follow-through despite the strong rejection earlier today.

Still, clearer buy signals will print should XRP close above $0.53 and $0.55.

If the breakout is with expanding volume, the coin could rally to $0.66 in a buy trend continuation.

On the flip side, any dump below $0.50, with equally high trading volume, is a precursor to losses to $0.45—or worse.

Ethereum Dips, Over $44 Million Liquidated: Will ETH Dump Or Break Above $2,700?

Posted on November 1, 2024 by Dalmas Ngetich

Ethereum, following price action across the crypto board, fell yesterday. The result is a three-bar bearish formation, forcing the second most valuable coin far from the key liquidation level at $2,800. With prices closer to $2,500, which is discouragingly near $2,400 and $2,300, bulls need to flow back, propping up the uptrend. If not, confirmation of yesterday’s losses could wreak havoc on determined bulls. In the coming days, traders should closely watch the reaction at the $2,300 and $2,400 support band, and the $2,700 and $2,800 resistance region on the upper hand.

At press time, confidence remains, though the coin is trading within a known bearish range. Technically, prices could rip if bulls push higher, breaking out from the Q3 2024 bearish zone. As it is, Ethereum is down 5% in the past day, unwinding gain over the previous seven days. Amid this contraction, engagement is down, shrinking to around $21 billion in 24 hours.

Traders are monitoring the following Ethereum news events:

According to trackers, spot Ethereum ETFs in the United States posted inflows of $13 million. Although positive, it is lower than the average of the past few trading days. Grayscale’s ETHE continues to post massive outflows.
Falling prices, in a bullish backdrop, translate to millions of liquidation. In the past day alone, falling ETH prices saw over $44 million of leveraged positions closed. The majority were longs.

Ethereum Price Analysis

[[ETH/USD]] is back to the Q3 2024 range.

There is clear support at $2,300, while liquidation is seen at $2,700.

The 3-bar bearish formation of the past three days forces a reassessment for bulls.

Although there might be opportunities to consider buying the dip, losses below $2,470 or today’s low is a massive dent in confidence.

If prices break above $2,700, reversing October 31 losses, Ethereum might find the wings to fly to $3,000.

Conversely, losses will precede a worrying dump to $2,300—or worse.

Bitcoin Dips and BlackRock Is Buying: Will BTC Reclaim $72,000?

Posted on November 1, 2024 by Dalmas Ngetich

Bitcoin fell yesterday, following through with what was printed on October 30. Technically, the uptrend remains, but buyers need to reclaim $70,000 today. A sharp dump below today’s lows at around $68,800 could heap even more selling pressure on bulls, forcing a possible collapse. All the same, there are other key metrics to watch that may help catalyze demand in the days to come. Top of the list is the inflow of capital from spot Bitcoin ETFs and macroeconomic conditions, especially in the United States. Traders are looking at the Federal Reserve and whether they will continue announcing even more accommodative policies.

In the short term, price action swings to favor buyers. However, the uptrend is firm and could shape the short to medium-term. At press time, the coin is down 4% but up 3% in the previous week. At the same time, there is an expansion in trading volume to over $44 billion over the past day.

Traders are keeping tabs on the following trending Bitcoin news:

Bitcoin closed October strongly, surprisingly extending gains of September. Against all odds, prices turned green by the end of Q3 2024. Over the last month, BTC added nearly 14%, almost half of what was seen last year.
BlackRock clients doubled down, buying the dip. Onchain data shows that IBIT, its spot Bitcoin ETF, added 4,550 in the past day. Currently, the product manages over 400,000 BTC.

Bitcoin Price Analysis

[[BTC/USD]] is firmly in an uptrend.

A surprising dip confirming losses of the past two days could shake the confidence of optimistic traders.

In that event, there will be massive liquidation—a flush out—and late October highs would be a crucial local top.

If BTC prints above $70,000 and even reclaims $72,000, the coin can easily breach $74,000 in the coming sessions.

Losses below $68,800 at the end of the day cancel out this bullish outlook.

Donald Trump celebrates Bitcoin

Posted on November 1, 2024November 1, 2024 by Olumide Adesina

Former US President Donald Trump reiterated his pledge to stop the government’s crackdown on digital assets on the 16th anniversary of Bitcoin’s existence.
Trump poked fun at political rival Kamala Harris in a speech to Bitcoin supporters in the United States on the anniversary of Satoshi Nakamoto’s whitepaper, which created the cryptocurrency.

The Republican contender and former president declared that he would end the “war on crypto” and encourage Bitcoin innovation in the United States. Additionally, he reaffirmed his intention to pardon Ross Ulbricht, the founder of Silk Road, who is currently serving a life sentence.

Trump made remarks on Bitcoin just a few days before the November 5 general elections in the United States. For months, the Republican contender has courted advocates of Bitcoin and cryptocurrency, promising to fire Securities and Exchange Commission chief Gary Gensler and stop government Bitcoin purchases.

The Winklevoss brothers, the founders of Bitcoin, Jesse Powell, a pioneer in the field, and Elon Musk, the richest man in the world and a major player in the cryptocurrency ecosystem, are just a few examples of the crypto community that approves of Donald Trump’s pledge to make no changes to anything. The ultra-rich men contributed money to Donald Trump’s campaign,

Harris stated that he was committed to safeguarding investors in digital assets and supported new technology like artificial intelligence.
BTC Supporters predicted that Bitcoin would be successful regardless of the outcome of the U.S. election. Bitcoin is still among the top-performing investments in the past decade.

Bitcoin at Crossroads: Technical Analysis Points to Potential $100K Rally Amid Market Correction

Posted on November 1, 2024 by Arslan Butt

As Bitcoin (BTC) experiences a correction from its recent high of $73,500, market analysts remain bullish on the leading cryptocurrency’s long-term prospects, with some predicting a surge to $100,000 by early 2025. The digital asset is currently trading below the crucial $70,000 level, showing signs of a technical retracement while institutional adoption continues to strengthen.

Current Market Dynamics

Bitcoin’s recent price action shows a noteworthy correction, with the cryptocurrency falling below both the $70,000 psychological barrier and the 100-hour Simple Moving Average. Technical analysis reveals the breach of a key bullish trend line, with immediate support levels identified at $68,500 and $67,400.

The correction has triggered the liquidation of over $500 million in open interest positions on a mere 2% price decline, suggesting leveraged positions are being unwound. Despite the short-term bearish indicators, Bitcoin remains up more than 13% month-to-date, highlighting the asset’s overall strength.

Institutional Adoption Accelerates

The spot Bitcoin ETF market continues to demonstrate remarkable growth, with cumulative net inflows reaching $24.18 billion since their launch. October alone has recorded $4.4 billion in inflows, marking it as the third-strongest month for BTC ETF investments. Recent data shows an impressive $1.3 billion in inflows over just two days, underscoring growing institutional interest.

Brian Russ, CIO at 1971 Capital, suggests that wealth management firms are likely to increase their Bitcoin allocations based on portfolio optimization research. According to VanEck’s analysis, a traditional 60/40 portfolio could have achieved a 17% return instead of 9% by including a 7% allocation to Bitcoin and Ethereum.

Political Implications and Market Catalysts

JPMorgan analysts suggest that a potential Trump victory in the upcoming U.S. presidential election could provide additional upside for both Bitcoin and gold. The analysis points to retail investors increasingly viewing Bitcoin as a “debasement trade” – a hedge against currency depreciation due to extensive money printing.

The upcoming U.S. nonfarm payrolls data and the Federal Reserve’s November 7 meeting could introduce further volatility. Currently, market participants are pricing in a 96% probability of a 0.25% rate cut, although persistent inflation metrics suggest the “Fed pivot” might be delayed.

Alternative Assets Correlation

Gold and silver markets are experiencing parallel bullish momentum, with analysts suggesting we’re midway through a decade-long precious metals bull market. This trend is attributed to broader anti-dollar sentiment and concerns about fiscal deficits, creating a favorable environment for alternative stores of value.

Technical Outlook

Short-term technical indicators suggest caution:

The MACD is gaining momentum in the bearish zone
The RSI has dropped below the 50 level
Key resistance levels are established at $70,000 and $71,200
Critical support zones lie at $68,500 and $67,400

Market Expert Perspectives

According to Brian Russ, Bitcoin requires a significant catalyst to breach the $100,000 mark. While the upcoming U.S. election could provide such impetus, Russ remains skeptical about its immediate impact, suggesting that post-election policy changes might be more influential.

Coinbase posts worst day in over two years despite share buyback

Posted on November 1, 2024November 1, 2024 by Olumide Adesina

Coinbase’s share price posted its biggest daily fall, in over two years during a broader stock market downturn, but the street remains hopeful about the company’s 2025 earnings outlook.

The largest publicly traded cryptocurrency exchange virtually disappointed the street with its third-quarter miss. COIN experienced its largest intraday decline since July 26, 2022, plunging as much as 21%, ending the trading day at $179.25, a 15.34% decline. Although the earnings numbers were lower than expected, the company’s announcement of a large share buyback program, demonstrated good performance.

This was the biggest intraday drop since July 26, 2022, when the price dropped 21% because of an investigation by the US Securities and Exchange Commission.
Although the exchange’s transaction revenues decreased by 27% from the previous quarter to $573 million, however, increased by more than 98% from the third quarter of 2023.

Economic worries and election-related uncertainty have depressed the mood, notwithstanding some regulatory triumphs that have increased hope in the crypto business.
MicroStrategy with a $49.5 billion market valuation, is worth more than Coinbase, which is at $44.54 billion.

In a statement to shareholders, the business stated, “The next significant milestone in our ongoing work to drive regulatory clarity for crypto is the upcoming 2024 elections.”

“The crypto voter is being courted by the presidential contenders”. Coinbase CEO Brian Armstrong stated on a conference call that over 350 federal candidates have now taken pro-crypto stances.

In the third quarter, Coinbase’s overall trading revenue doubled to $572.5 million, contributing to the exchange’s $1.21 billion total revenue, up from $674.15 million in the same period last year.