Solana at $700, the flaws of Ethereum staking and the ETF boom in Europe 🌍
Welcome to the Daily Tribune of Tuesday, October 22, 2024 ☕️
Hello Cointribe! 🚀
Today, it is Tuesday, October 22, 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! ⏱
Solana at $700 under Trump? 🌟
Solana (SOL) could climb to $700 if Donald Trump wins the 2024 American presidential election, according to analysis from Standard Chartered Bank. Trump's economic policies, focused on deregulation and stimulating the economy, could attract increased investments into cryptocurrencies like Solana, known for its transaction speed and support for dApps.
Analysts predict a 400% increase in the price of Solana, with the possibility of an ETF based on Solana being approved under the Trump administration. Moreover, the growing adoption of Solana, with over 100 million active monthly addresses, and its appeal for decentralized applications and DeFi projects, reinforces these optimistic prospects.
Vitalik Buterin alerts on the flaws of Ethereum staking ⚠️
Vitalik Buterin, co-founder of Ethereum, warns of the growing risk of centralization of staking on the Ethereum blockchain. He explains that only two entities choose the content of 88% of the blocks, which increases the risks of censoring transactions.
To address this, Buterin proposes solutions such as creating an encrypted memory pool and introducing inclusion lists for transactions. He is also concerned about the concentration of staked capital, with 30% of the total supply of Ether currently staked. He suggests measures to limit staking per user or a two-tier system to avoid excessive dilution of Ether. These reforms are planned as part of the "Scourge" update and the "Pectra" fork, aimed at strengthening the decentralization and security of the Ethereum network.
Collapse of Memecoins promoted by Andrew Tate 📉
The memecoins supported by controversial influencer Andrew Tate have suffered a spectacular drop of 99% in their value. Since June 2023, Tate had actively promoted several of these tokens on the Solana blockchain, quickly attracting the attention of investors.
However, most memecoins, like Germany (GER) or Roost (ROOST), have lost almost all their value in just a few months. This rapid depreciation has fueled suspicions of market manipulation, reinforced by a provocative statement from Tate on social media.
ETFs explode, but Bitcoin stagnates 🤔
While Bitcoin ETFs have exploded in Europe with over $105 billion invested in 2024, the price of Bitcoin remains stuck below the $70,000 mark since July. Despite the enormous influx of capital, ETFs are often used by some investors as "exit liquidity", thereby limiting their immediate impact on the price of BTC. About 75% of new inflows helped push past $50,000 in February, but even with a buying spike of $555 million on October 14, the price only temporarily increased by 5%.
The computing power of the Bitcoin network has reached record levels, but analysts believe that the effects of these ETF flows are still awaited due to a market correction following the exhaustion of the initial momentum. Heavyweights like BlackRock and Grayscale could still play a major role in the evolution of the market.
Crypto of the day: Uniswap (UNI)
Uniswap is a decentralized finance (DeFi) platform based on the Ethereum blockchain, which has introduced a major innovation in the decentralized exchange (DEX) ecosystem by allowing users to trade tokens directly with each other via liquidity pools, without the need for intermediaries. Its added value lies in the elimination of traditional third parties, thereby reducing costs and transaction times.
The native crypto, UNI, is primarily used for protocol governance, allowing holders to vote on network updates. UNI was distributed through an initial airdrop to early users and liquidity providers. The benefits for holders include participation in governance and financial incentives within the DeFi ecosystem.
Recent performances 📊
Current price: €7.72
Percentage increase/decrease: +6.69% (over 24h)
Market capitalization: €4.91 billion
Rank on CoinMarketCap: 23
Technical analysis of the day: Bitcoin (BTC)
Bitcoin recently surpassed $69,000, marking a major technical breakout after bouncing off a support at $60,000.
This progression allowed for the formation of a cup and handle pattern, typically heralding a bullish trend. However, a selling move on October 21 slowed this rise, bringing the price back to $67,800. Although this decline raises short-term concerns, the underlying trend remains positive, with Bitcoin staying above its 50 and 200-day moving averages, thus consolidating a bullish outlook in the medium and long term.
The growing interest in Bitcoin perpetual contracts reflects investors' enthusiasm, with positive funding rates supporting this dynamic. However, the massive liquidations observed near the $68,000 zone signal upcoming volatility.
If Bitcoin manages to maintain its price above $66,500, a new push towards $70,000 or even $72,000 is conceivable. Conversely, a return below this threshold could bring the price back to $61,600, a key support level.
🔗 Read the complete analysis here.