💥 Metaplanet buys 107 BTC, Ripple releases 1 billion XRP, Ethereum fees explode!
💥 Metaplanet buys 107 BTC, Ripple releases 1 billion XRP, Ethereum fees explode!
Welcome to the Daily tribune of Wednesday, October 2, 2024 ☕️
Hello Cointribe! 🚀
Today is Wednesday, October 2, 2024, and like every day from Tuesday to Saturday, we summarize the news from the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Rainy 🌧️
24h crypto recap! ⏱
Metaplanet doubles down on Bitcoin with a new purchase of 107 BTC 🪙
The Japanese company Metaplanet continues to accumulate bitcoins by adding 107 BTC to its reserves, bringing its total to 506 BTC, worth 32 million dollars. This investment, made for an amount of 6.9 million dollars, illustrates the company's confidence in Bitcoin as a store of value, despite recent market fluctuations.
By following a strategy similar to that of other major investors like MicroStrategy, Metaplanet strengthens its position with a long-term view. The average purchase price is $64,168 per Bitcoin, and the company's objective is to capitalize on Bitcoin's safe-haven potential amid economic uncertainty.
Ripple releases 1 billion XRP to stabilize the market 💸
On October 1, 2024, Ripple released 1 billion XRP as part of its monthly distribution. This initiative, aimed at increasing liquidity for XRP, occurred as the crypto had fallen by 4.26% in 24 hours due to a difficult economic environment and geopolitical tensions. The issuance of these XRP, worth 640 million dollars, helped stabilize the market.
After this intervention, the price of XRP began to rise, recording an increase of 1.78% and reaching $0.622. This operation also strengthened investor confidence, thus supporting the Ripple ecosystem during a period of high volatility.
BlackRock disappointed with Ethereum ETFs despite their limited potential 📉
BlackRock expressed its disappointment regarding the performance of Ethereum ETFs, highlighting a lack of enthusiasm compared to Bitcoin ETFs. During the Messari Mainnet conference in New York, Robert Mitchnick, head of digital assets at BlackRock, attributed this low interest to the complexity of Ethereum's business model, making its adoption more challenging for investors.
While Bitcoin continues to dominate, attracting $61 million in inflows last week, Ethereum ETFs recorded outflows of $12 million. BlackRock remains optimistic about the long-term potential of Ethereum but acknowledges that better investor education will be necessary to increase the appeal of these ETFs. Bitcoin, on the other hand, benefits from its status as a pioneer and a simpler understanding as a store of value.
Surge in transaction fees on Ethereum: a worrying congestion ⚡️
The Ethereum network is experiencing a surge in transaction fees due to record on-chain activity. The 29% increase in active addresses and the 43% growth in new addresses, coupled with massive volumes traded on DeFi and DEX platforms, have saturated the network. In just 24 hours, nearly 978 million dollars of Ethereum were traded, creating congestion that slows down transactions and drives up fees.
Staking, which has resumed vigorously, also contributes to this congestion, making the situation even more difficult for daily users. These high fees raise questions about the long-term viability of Ethereum, as solutions like Layer 2 or competing networks could attract more and more users.
Crypto of the day: Ftx Token (FTT)
The FTX Token (FTT) was the native crypto of the FTX platform, created to facilitate transactions and offer benefits to users of the network. Initially designed on the Ethereum blockchain before being migrated to other blockchains, this crypto aimed primarily at reducing transaction fees, accessing staking bonuses, and participating in exclusive financial product offerings on FTX. FTT also provided discounts on trading fees and served as collateral for leveraged positions. However, with the bankruptcy of the FTX platform, the utility of the token has been largely reduced, and it could be liquidated as part of the creditor settlement procedures.
Recent performance
Current price: €2.02
Percentage change: +8.25% over the last 24 hours
Market capitalization: €665 million
Rank on CoinMarketCap: 85
💥 New plunge of Bitcoin: Markets under pressure!
Bitcoin has suffered a notable drop after reaching nearly $66,000 last week, falling to $61,700. Several factors explain this decline, including recent statements by Jerome Powell, chairman of the U.S. Federal Reserve, who tempered expectations regarding significant interest rate cuts by the end of the year. This revision of forecasts triggered an adjustment in the markets, reducing investor optimism. At the same time, geopolitical tensions in the Middle East have also amplified risk aversion, negatively affecting assets like Bitcoin, which is already known for its volatility.
However, despite this decline, the Bitcoin market shows signs of resilience. The $63,000 level appears to constitute strong support, corresponding to the realized price by short-term holders. Furthermore, capital inflows into Bitcoin ETFs, although slightly declining, remain significant, reflecting institutional investor interest. Additionally, the growing demand for Bitcoin in decentralized finance, with 1% of the total supply locked in DeFi protocols, reduces the liquidity available in the markets, which could potentially support a long-term price increase.
Analysts remain optimistic despite the current volatility.
🔗 Read the full analysis here.
