So much is going on around the world and in cryptocurrency specific coins. In a highly anticipated statement from Jerome Powell, Chair of the Federal Reserve to curb ‘the worst inflation America has seen in 40 years, the Federal Reserve has raised interest rates 50 basis points, the steepest increment since 2000, their goal to start shrinking its massive balance sheet’. This is the macro backdrop.
How did Bitcoin react? Bitcoin’s hash rate is surging. The amount of bitcoin on exchanges, in fact, just keeps falling, meaning people are buying bitcoin on exchanges and taking it off exchanges. Well, who’s buying retail is buying, whales are buying, institutions are buying, I’m buying.
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Well, hold on a second there, Erin. Why would I buy if we’re in a bear market? Well, this is something you should consider. Despite prices being down, a huge number of bitcoin holders are still in profit. In fact, 70% to 72% of bitcoin accounts are still profitable, which is significantly higher than previous bear markets in market history.
I believe that either one of two scenarios is most likely to be true: either we are in a bear market and the worst might still be yet to come, either with a price capitulation or extended time. Of course, that’s a possibility. The other possibility is that we look back at these three to four months of time and looking back we won’t even think about this period as a bear market. I know it feels bad, obviously the prices are down, but it does always feel the worst when we’re at the lowest in any given period of time.
Ultimately, if any of us knew the future, we’d all be rich. We can only look at the macro backdrop. We can only look at what exactly is going on and make educated guesses. I’m certainly long-term bullish.
That being said, let’s jump in to some recent news of the day. Panama is set to approve the use of bitcoin and eight other cryptos without limitation. This is huge, so it’s Bitcoin, Ethereum, XRP, Litecoin XDC Network, Elrond, Stellar, IOTA, and Algorand. The lawmakers in Panama, the Latin American country with a reputation as a tax haven, have approved a bill that would regulate the use of bitcoin and eight other cryptocurrencies and approve their use for paying taxes and for private transactions. This is huge. This will help Panama become a hub of innovation and technology in Latin America. According to a legislator, this will help create jobs and financial inclusion again. The currencies would be accepted as payment in both civil and commercial capacities.
In other words, “Get ready, guys, because OP is looking bullish this summer.” If you subscribe to our channel or follow the crypto markets, you’re aware that one of the most promising L2s for Ethereum, a roll-up solution called Optimism, recently started their process of airdropping tokens, launching a token and airdropping tokens to people who use their network. They did this once, and they’re going to continue doing it if you use Optimism. They laid out all the details on their site.
I’m bullish on the Optimism token because of this recent news. This OP will be dispersed to projects old and new to reward the past and incentivize future optimism. We’re laying the bedrock of a new digital frontier, but it’s the projects and users who will bring it to life, so they are incentivizing projects and users. The rollout of this stimulus will occur in two parts: phase 0 and phase 1. Phase 0 starts now and runs for three weeks. It rewards early movers on optimism who have demonstrated traction via on-chain criteria.
Why am I bullish on this? Because they are incentivizing builders and users with money. We’ve seen this before. If you were around in 2021, you remember when Solana did this, when Avax did this, when Elrond did this, to name a few, and what happened to their L1 tokens? They went wild.
In other news, any fans of Lido out there? Lido briefly becomes the top DeFi protocol by total value locked with 20 billion staked. The DeFi protocol overtook curve before falling back into second place. The specifics are quite intriguing. Lido, which will be available in December 2020, offers staking across Ethereum, Terra, Solana, Kusama, and Polygon chains. Lido was responsible for nearly 10% of all value locked across the DeFi sector at the time of publication, with 200 billion staked across all chains. Lido accounts for more than 30% of all ethers staked on the Beacon Chain, and it has paid out nearly $500 million in staking rewards to over 100,000 stakers since its inception. The protocol currently offers yields of 3.6% on each and as high as 25.9% on Kusama, so this is a win for the Lido network and staking and DeFi.
In terms of DeFi, the global aggregate take rate of DeFi protocols is only 9%, owing to radically free markets and minimal rent extraction. We are witnessing a mass rewriting of the entire financial system from scratch, only this time it’s both more efficient and fairer to users. I love it.
In other news, Elon Musk changed his Twitter profile picture to a Bored Ape’s NFT collage and then referred to it as ‘fungible’. It seemed like he was really pro and then he wrote, “I guess this is kind of fungible.” People took it as kind of a nag. Gary Vee, NFT evangelist and expert, goes on CNBC Squawk Box and gets asked the question, “Explain this.”:
‘Elon Musk just changed his Twitter profile picture to a montage of Bored Ape NFT images, and then tweeted it, which appears to be kind of fun:
Gary Vaynerchuk, the creator and founder of Vee Friends do you read? That to me looks like he’s saying, “Yeah, you may own one of these Apes, but they’re out there.” I can easily just put it up on my profile picture, so why pay for something like that? Is that what he’s saying? How do you view what Elon Musk’s point is here?
I’m not sure. I think Elon’s got his finger on the pulse, and obviously, board vape is one of the great projects in the NFT space. I mean, I can take a picture in front of a Lamborghini outside, but that doesn’t mean that I own it. I could take a picture outside of a building in Manhattan and say I own it. Most people are bringing their internet brains to the blockchain, so they say silly things like that the blockchain is a ledger that shows ownership. This is what always happens when there are major technological changes, so I understand your point of view, but clicking or posting a picture doesn’t mean you own it, just like in real life, right?’
Speaking of NFTs, it’s all happening. Coinbase NFT is excited to finally announce that the Coinbase NFT Beta is finally open to everyone, meaning that you can go set up your new profile on nft.coinbase.com I did it. If you already have an NFT wallet, you just have to link your own.
Now, things are looking up for Cardano. Retail interest is rapidly increasing. The balance held by trader addresses holding for 30 days or less has increased by over 100%, almost 200% in just 30 days.
These addresses now collectively hold 36% of the ADA supply. This seems to make sense as ADA only continues to build out, develop, and integrate. In fact, the total number of projects building on Cardano right now is over 900, not even a thousand yet, but we’re growing rapidly with most of them being NFT collections developer tools API library. We really have tons of stuff.
Finally, Binance is now fully regulated as a digital asset service provider in France. They are fully compliant and regulated in France. Congratulations, Binance. There was a time when no exchanges were regulated and over the last few years we’ve started to see tons of licensing and tons of stuff like this. Crypto is here to stay. They recognize that.
[This article is a transcription of a video made by Altcoin Daily]
Original video: https://youtu.be/nzbkoXYr9Nw ]