Wednesday, 24 May 2023

Market Summary

Market Summary 24 May 2023

Bitcoin Price: US$ 27,219.61 (+1.38%)
Ethereum Price: US$ 1,854.05 (+2.02%)  

 

Bitcoin surpassed $27.4K in trading but remained stagnant as investors kept a close watch on the U.S. debt limit situation. While stocks experienced a decline, Bitcoin maintained a range-bound movement between $26,500 and $27,500 for nearly two weeks due to concerns over crypto regulations and macroeconomic uncertainties. Market participants noted that the crypto market appeared to be stagnating, with existing liquidity shifting among believers and active traders. Tim Frost, CEO of Yield App, mentioned the lack of a catalyst on the horizon to drive significant movement. Ether also remained within a two-week range, while other major cryptocurrencies saw minor gains. Meanwhile, stocks fell amid anxiety surrounding the debt limit, and the CoinDesk Indices trend indicator signaled a downturn for Bitcoin and Ether, possibly influenced by regulatory issues and macroeconomic uncertainties. Additionally, Justin Sun, the founder of Tron network, transferred $4.3 million worth of MakerDAO’s MKR tokens to Binance, which could suggest a potential plan to sell.

According to a report by Berenberg, MicroStrategy (MSTR) is seen as a more favorable option for investors seeking exposure to the cryptocurrency sector compared to Coinbase (COIN). The report highlights the high correlation between the two stocks since Coinbase’s direct listing in April 2021 and suggests that investors bearish on Coinbase shares could pair it with a long position in MicroStrategy. The unique business model of MicroStrategy, focused on acquiring and holding bitcoins, is considered attractive in the current regulatory environment. Meanwhile, the number of Ether (ETH) coins being staked on the Ethereum network has surged by 4.4 million since the implementation of the Shapella upgrade on April 12. This increased interest in staking suggests that large Ether holders are seeking passive income rather than selling their holdings, and analysts anticipate this trend to continue due to expected deflationary forces. Additionally, the testnet of Shibarium network, called Puppynet, has logged over 10 million transactions, indicating growing activity ahead of its planned release on the mainnet later this year. The upcoming layer 2 network aims to address scalability, speed, and cost challenges on the Ethereum blockchain, joining other similar solutions like Arbitrum and Optimism.

In May, the trading volume of nonfungible tokens (NFTs) and memecoins on Bitcoin surpassed Solana’s volume, according to data from CryptoSlam. While Ethereum maintained the highest trading volume in NFTs, Bitcoin secured the second position, surpassing other popular blockchains like Polygon, ImmutableX, BNB Chain, and Solana. The majority of the trading activity on Bitcoin was driven by BRC-20 token transactions, which follow an experimental fungible token standard built using ordinals. Memecoins, which are speculative cryptocurrencies fueled by enthusiastic communities, gained hype, with the total market capitalization of BRC-20 memecoins surpassing $1 billion in May. However, the current market capitalization stands at $447 million. In other news, hardware wallet company Ledger delayed the release of its private key recovery service following significant backlash from the crypto community. Ledger plans to host a town hall to address the concerns and has decided to accelerate its open-sourcing roadmap for more transparenc

Manta Network, a Polkadot-based layer-1 blockchain, has partnered with Linea to introduce zero-knowledge soulbound tokens (zkSBT) to address privacy concerns in cryptocurrency projects. Meanwhile, BNB Chain, associated with Binance, has experienced a surge in transactions, reaching its highest level since May 2022, attributed to lower fees, increasing adoption, and activities like NFT minting. 

 

Source:

https://coindesk.com
https://cointelegraph.com
https://decrypt.co
https://theblock.co 

 

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