📉 Stablecoins are collapsing, VanEck predicts a Bitcoin at 52 million by 2050
Welcome to the Daily Tribune Wednesday, September 4, 2024 ☕️
Hello Cointribe! 🚀
Today is Wednesday, September 4, 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:
Stormy ⛈️
24h crypto recap! ⏱
📉 Historic drop in stablecoins flows: An alarming signal for Bitcoin
Flows of stablecoins to cryptocurrency exchanges, such as USDT and USDC, have reached historically low levels, indicating a decline in investor confidence regarding a Bitcoin recovery. Usually used to reinvest in assets like Bitcoin after a price drop, stablecoins are no longer flowing into exchange platforms, despite the recent record capitalization of 170 billion dollars. This lack of momentum reflects a lack of conviction concerning the idea that Bitcoin has hit its low point. Currently valued around $57,000, Bitcoin does not seem ready for a rebound as long as investors remain on the sidelines, waiting for clearer signals before massively re-engaging in the market.🔗Read the full article here.
🚀 Bitcoin at 52 million dollars in 2050? VanEck explores bold scenarios
VanEck, an asset management company, reveals three scenarios for the future of Bitcoin by 2050. The pessimistic scenario predicts a Bitcoin capped at 130,000 dollars, hindered by limited adoption and restrictive regulations. In the base scenario, Bitcoin could reach 2.9 million dollars if 10% of global trade were to occur in BTC and if central banks held 5% of their reserves in Bitcoin. The most optimistic scenario foresees a price of 52 million dollars, fueled by massive adoption as a safe haven asset against the budgetary instability of major economies. However, these forecasts are threatened by the growing energy consumption of Bitcoin, potential regulatory crackdowns, and competition from central bank digital currencies. 🔗 Read the full article here.
🛠️ Cardano: An unparalleled technological achievement according to Hoskinson
Charles Hoskinson, the founder of Cardano, characterized his project as "one of the greatest technical accomplishments in human history." Cardano stands out for its resilience and its ability to operate uninterrupted across more than a hundred countries, a feat few other blockchains can claim. After ten years of rigorous development, Cardano positions itself as a mature and advanced alternative to Bitcoin, backed by a solid foundation of academic research. The recent success of the Chang hard fork, adopted without central coordination, demonstrates the network's robustness. Hoskinson compared Cardano to a "governance virus," an autonomous and resilient entity, ready to evolve within a constantly changing crypto ecosystem. 🔗 Read the full article here.
🐋 Large accumulation of BTC: Whales take advantage of the market drop
Bitcoin whales continue to accumulate massively, taking advantage of price drops to bolster their positions, as illustrated by the recent purchase of 2,000 BTC in just four days. This strategy aims to profit from market fluctuations while maintaining downward pressure. One whale, in particular, acquired 1,000 BTC on Binance on September 1 for 57.3 million dollars, after having already purchased the same amount the previous week. This dynamic creates a threat to market stability, as these massive purchases can be followed by equally significant sales, fueling increased volatility. Analysts anticipate a potential drop in Bitcoin of up to 20% if whales decide to sell their assets abruptly, further exacerbating market uncertainties.🔗 Read the full article here.
Crypto of the day: Cosmos (ATOM)
Cosmos stands out for its revolutionary approach to blockchain interoperability, allowing different chains to connect and communicate seamlessly. This innovation, through its IBC (Inter-Blockchain Communication) protocol, offers significant added value by reducing fragmentation in the blockchain ecosystem and facilitating exchanges between distinct networks.
The native crypto, ATOM, is primarily used to secure the network via staking and to pay transaction fees. Initially distributed through an ICO in 2017, it offers advantages to holders such as staking rewards and governance rights to influence network decisions. ATOM can be used to validate transactions, contribute to the governance of the blockchain, and participate in DeFi applications within the Cosmos ecosystem.
Recent performances
Current price: $4.04
Increase/decrease in percentage: 9.25% (decrease over 1 day)
Market capitalization: $1,581,177,003
Rank on CoinMarketCap: #46
Why did Ethereum plunge 22% in August?
In August 2024, Ethereum experienced a drop of 22%, marking its worst month in over two years. This decline is primarily due to massive outflows from Ethereum ETFs, which disappointed institutional investors with net losses of nearly half a billion dollars. At the same time, activity on the Ethereum network has significantly decreased, with revenues down 99% over six months, largely due to the rise of Layer 2 solutions like Arbitrum and Optimism. These solutions are capturing an increasing share of volume and transactions, at the expense of the main network. This phenomenon of temporary cannibalization, according to experts, could translate into future specialization where high-value transactions remain on Layer 1, while mass applications shift to Layer 2.
Besides the technical aspects, Ethereum's drop was exacerbated by controversial statements from Vitalik Buterin and massive sales by the Ethereum Foundation, which sowed doubt among investors. Buterin's comments on the unsustainability of DeFi particularly shook the market, as did the sale of 100 million dollars of ETH by the foundation. Global macroeconomic instability also contributed to this decline, with a deterioration in global risk sentiment, heightened by economic uncertainties in the United States and volatility in financial markets. Despite these challenges, Ethereum's solid fundamentals inspire hopes for a potential rebound in the medium to long term.
🔗 Read the full analysis here.