This week in the world of crypto, large market cap cryptos Bitcoin, Ethereum and Solana were in traders’ sights, each reaching their own significant highs. Traders weren’t the only ones keeping an eye on these tokens, however – VanEck this week revealed its solidly bullish outlook for both Bitcoin and Solana for 2024, predicting Solana to consolidate the edge it earned this year over Ethereum.
(as of 12:00 PM Singapore Time, December 8, 2023)
Without further ado, let’s jump in. The crypto market buzzed with excitement as Ethereum (ETH) and Solana (SOL) soared to 19-month highs, mixed with Bitcoin’s rally hitting a pause, stirring up talk of a potential bull trap. Solana’s leap over Ethereum’s mainnet in network activity suggests a strong comeback post-FTX collapse, as its value climbs, hinting at a revitalized ecosystem. Exchange-traded products (ETPs) are also in the spotlight, with investments exceeding $1 billion this year. The intriguing movement of assets from FTX-linked wallets may signal strategic shifts by the FTX estate.
In parallel, asset management giant VanEck’s 2024 outlook paints an optimistic picture for Bitcoin, predicting record highs in Q4 of 2024 and substantial inflows into Bitcoin ETFs exceeding $2.4 billion. This forecast also sees Solana maintaining its edge over Ethereum in the DeFi Total Value Locked (TVL), with stablecoins projected to hit an all-time high market value of over $200 billion, showcasing a vibrant and evolving crypto landscape.
For more comprehensive analyses and in-depth insights into the latest market movements, visit the BTSE blog for regular updates.
Web3 News
- Block’s Bitkey Bitcoin Wallet: Jack Dorsey’s fintech company, Block, has launched its new self-custody Bitcoin wallet, Bitkey, available for pre-order in over 95 countries. This innovative product comprises a mobile app, a hardware device for offline asset storage, and a set of recovery tools. Unique for its triple-key security system, Bitkey allows users to secure and recover their assets easily. This launch is particularly timely, as it addresses growing concerns over the safety of crypto-assets following the collapse of several centralized cryptocurrency platforms. Bitkey’s integration with Block’s Cash App and Coinbase aims to simplify buying and selling BTC within the app, enhancing user convenience and security. Pre-orders are set to be shipped in early 2024.
- Reebok’s Digital Fashion Venture: Reebok is set to launch “Reebok Impact,” a unique on-chain gaming experience in partnership with the crypto tech startup Futureverse in 2024. This initiative will introduce AI-enhanced digital shoe experiences in the virtual world, representing Reebok’s move into digital fashion and gaming. The collaboration aims to extend Reebok’s brand into virtual spaces, revolutionizing fashion in the digital world. “Impact” is designed to emphasize life experiences over mere possession of sneakers, blending physical and digital realms in an innovative way.
- Jito’s Governance Token Airdrop: Jito, a Solana-based liquid staking protocol, has recently airdropped its new governance token, JTO, to about 10,000 unique addresses, marking a significant development in the Solana ecosystem. This airdrop, valued at a minimum of $9,000 per recipient at one point, is part of a broader movement to enhance crypto engagement and governance. JTO holders gain voting rights over key aspects of Jito’s operations, such as staking pool fees and treasury management. This move comes amid a resurgence in Solana’s value and engagement, reflecting the growing interest and innovation in decentralized finance.
Stories You May Have Missed
- TON Blockchain Slowdown: The TON blockchain experienced a significant slowdown, processing less than one transaction per second, due to a surge in activity caused by a new Bitcoin Ordinals-inspired protocol. Over 2.5 million transactions were pending, severely congesting the network. This congestion forced popular TON wallets to pause their services. The issue was attributed to validators using weak hardware not equipped for sudden load increases. A patch was issued to resolve the problem, and future measures include harsher penalties for lagging validators.
- Michael Saylor’s Bitcoin Journey: A decade ago, Michael Saylor, CEO of MicroStrategy, was skeptical about Bitcoin, fearing regulatory impacts. This view is highlighted by a 2013 tweet warning about Bitcoin’s potential regulatory demise. Since then, Saylor’s stance drastically shifted. MicroStrategy, initially a software company, turned into a major Bitcoin investor by 2020, amassing a substantial Bitcoin portfolio. As of November 2023, they held nearly 1% of Bitcoin’s circulating supply. This strategic pivot proved profitable, with the firm’s Bitcoin investments significantly appreciating in value, reflecting Bitcoin’s growth and MicroStrategy’s successful adaptation in the crypto landscape.
- US Bitcoin ETF Discussions: The U.S. SEC and asset managers are discussing technical details for listing bitcoin ETFs, signaling potential approval. Thirteen firms, including Grayscale and BlackRock, have pending applications. A recent court ruling against the SEC’s rejection of Grayscale’s ETF conversion has led to more substantive talks, focusing on custody arrangements, creation/redemption mechanisms, and risk disclosures. Approval of these ETFs could significantly boost investor access to Bitcoin. The SEC’s decision on ARK’s filing is due by January 10, with expectations of multiple approvals likely fueling Bitcoin’s recent price rally.
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