cryptocurrency widget, price, heatmap
icon user

Log in

cryptocurrency widget, price, heatmap

Add watchlist

icon add
News/Coin360 Daily Dispatch (May 8, 2023): Crypto Market Updates & Highlights

Coin360 Daily Dispatch (May 8, 2023): Crypto Market Updates & Highlights

May 8 2023

last year4 minutes read

Crypto Market Update

Written by Van

Table of Contents

Crypto Market Overview

  • Liechtenstein Government To Accept Bitcoin for Official Services
  • Worldcoin Launches Gas-Free Cryptocurrency Wallet for Users
  • Bitcoin Maximalists Allay Fears of DoS Attack on Network

Crypto Exchange Updates

  • Binance Integrates Lightning Network To Solve Bitcoin Congestion Issue
  • Ethereum Active Deposits Surge, Gas Fees Reach Highs

Network and Token Updates

  • Rising Fees Caused by BRC-20 Tokens in Bitcoin Network
  • Pepe Investors Suffer as Whales Dump Holdings
  • Mysten Labs To Launch High-End Games On Blockchain Network
  • Polygon's NFT Interest Declines: Impact on MATIC?
  • Cardano Whales Quietly Accumulate During Downtrend

DeFi and Blockchain Development

  • MakerDAO Launches Spark Protocol Offering Wholesale DAI Credit Lines
  • Aave Partners with Metis for Ethereum L2 Scaling Solution

Liechtenstein Government To Accept Bitcoin for Official Services

Liechtenstein's government is considering accepting bitcoin payments for official services and converting them into Swiss francs instantly. Swiss towns of Zug and Lugano have already legalised bitcoin payments for taxes. Lichtenstein became a cryptocurrency-friendly country after it passed the Liechtenstein Blockchain Act in 2019. It has since seen various cryptocurrency enterprises establish themselves in the country.

Coin360.webp

Worldcoin Launches Gas-Free Cryptocurrency Wallet for Users

Worldcoin has launched a gas-free cryptocurrency wallet for verified human users, known as 'World App'. It uses the World ID system to identify human users, allowing them to make gas-free transfers of cryptocurrencies on Android and iOS via the Polygon network. Even users without a World ID can use the wallet, but will not benefit from feeless transfers. Worldcoin was co-founded by Sam Altman.


Bitcoin Maximalists Allay Fears of DoS Attack on Network

Bitcoin maxis have allayed fears of a possible Denial of Service (DoS) attack on the network, citing increased demand as the cause of the surge in transaction fees and unverified dealings. BTC transaction fees briefly exceeded its block subsidy reward, causing concerns. However, activities within the Bitcoin network remain stable, and the fees are expected to return to normal levels soon.

5kdg4hxH_4x.jpg

Binance Integrates Lightning Network To Solve Bitcoin Congestion Issue

Binance incorporated the Lightning Network to enable faster and more cost-efficient Bitcoin transactions due to the network congestion that resulted in temporary withdrawals' suspension on May 7 and 8. As one of the leading cryptocurrency exchanges, Binance faced congestion challenges as more participants joined the network, prompting the integration of L2 scaling.


Ethereum Active Deposits Surge, Gas Fees Reach Highs

Elevated Ethereum deposits towards centralized exchanges have led to a rise in short-term selling pressure, indicated by the Ethereum active deposits metric which surged to its highest value since November 2021. However, the supply on exchanges has decreased and inflows have mainly come from retail investors, suggesting that the selloff may be short-lived. 

Ali on Twitter.webp
Source: Ali/Twitter

Ethereum's gas fees reached a year-high as the PEPE memecoin hype sparked a surge in network activity, resulting in traders paying thousands of dollars for transactions. Average gas fees increased by 115% since PEPE's April 18 launch, affecting Layer 2 networks as well. Additionally, a trader paid 64 ETH ($119,157) for a single transaction just to send 84 WETH.


Rising Fees Caused by BRC-20 Tokens in Bitcoin Network

Bitcoin's price has been trading within a narrow range, causing volatility to drop. Macro conditions affect the market. The US government faces pressure to sustain economic activity and contain the banking crisis. Investors concentrate on fixed income, while Bitcoin remains an alternative.

chart (1).webp

BRC-20 tokens have caused massive congestion in the Bitcoin network, resulting in rising fees. The combined value of all 11,705 BRC-20 tokens was $923 million as of Monday. However, there are issues with speed, transaction costs and security, along with potential regulatory concerns. Furthermore, BRC-20 tokens are not in line with the axioms of the core Bitcoin community.


Pepe Investors Suffer as Whales Dump Holdings

PEPE suffers 50% drop from all-time high, resulting in $144 million trades being liquidated and a market cap falling below $1 billion. Certain whales have reportedly dumped holdings for personal gain. Despite warnings that the coin has no intrinsic or financial value, enthusiasts have traded it massively, with a current market cap of over $940 million. Pepe has made some crypto traders millions in potential profit (on paper). The token skyrocketed last month, and the top 15 whales currently sit on potential profits totalling $92.6 million with gains of 2,526%. 

chart.webp

Mysten Labs To Launch High-End Games On Blockchain Network

Blockchain-based game developer Mysten Labs will roll out high-end games on its Sui protocol with 11 gaming partners from May 15. Mysten has secured deals with over 30 gaming companies, and the Sui network provides experienced game developers with a platform to enable player engagement. Many of Sui’s partners have described the Sui Chain as the future of gaming.

chart (3).webp

Polygon's NFT Interest Declines: Impact on MATIC?

Interest in NFTs on Polygon has declined, with collections such as y00ts and Trump Digital Trading Card Collection seeing significant drops in sales and active wallets. This could have an impact on the state of MATIC, which has fallen by 4.58% over the last 24 hours. Polygon's MVRV ratio has also decreased, but short-term holders leaving their holdings may be positive in the long term. OpenSea remains the dominant NFT marketplace on the network.

chart (2).webp

Cardano Whales Quietly Accumulate During Downtrend

Cardano's price has dropped by 17% from its 2023 peak of $0.45 on April 15, but on-chain indicators indicate that the Cardano network's fundamentals remain solid, with demand still healthy. Whales have also been quietly accumulating ADA during the current price downtrend, indicating confidence in its underlying technology, and on-chain indicators suggest that ADA is set to reach a new 2023 peak of $0.48 during its next price rally.

IntoTheBlock ADA.webp
Source: IntoTheBlock

MakerDAO Launches Spark Protocol Offering Wholesale DAI Credit Lines

Spark Protocol, launched by MakerDAO, will provide users with wholesale DAI credit lines directly from Maker, offering custom interest rates via governance, which sets them flat rather than basing them on utilization. Spark Lend and its interface come with two starting collateral assets – ETH and stETH – with liquid staked ether tokens to follow. Spark has been developed as a sub-DAO of Maker, offering revenue generation that will benefit MKR holders.

chart (4).webp

Aave Partners with Metis for Ethereum L2 Scaling Solution

DeFi lending protocol Aave will be deployed on Ethereum L2 scaling network Metis, following unanimous community support. The move could boost activity on Metis, which offers cheaper gas fees than Ethereum with comparable transaction security, and comes as Aave seeks expansion beyond Ethereum's base layer. Metis will offer liquidity incentives, including rewards of 100,000 METIS coins to liquidity miners within six months of deployment.

chart (5).webp

HTF | BTC & ETH & MATIC

Bitcoin | Weekly Time Frame

On a higher timeframe, $BTC continues to face rejection from the critical resistance area. This level should be considered resistance, as it previously demonstrated signs of support before the breakdown in mid 2022. If the price continues to face resistance, the next significant support zone should be around $25k, as illustrated on the chart. This zone held the price below $25k for about nine months. To truly experience more upside, the price would need to break and hold above the resistance level at approximately $32k.

image.png
Bitcoin | Weekly Time Frame

Ethereum | Weekly Time Frame

On a higher timeframe, $ETH managed to push up and retest the range highs, where it faced rejection and is now trading between the range mid and the range highs. If the price continues to hold below this level, the first target would be the mid range, as marked on the chart, where the price could experience a significant bounce.

image.png
Ethereum | Weekly Time Frame

Polygon | Daily Time Frame

$MATIC experienced a rejection and broke down from its midrange. The price is now trading between the range lows and the range mid. Unless it can reclaim the range mid, the price could be headed towards the range lows to find support. This observation aligns with the $MATIC/BTC chart, which is also at a critical pivot point.

image.png
Polygon | Daily Time Frame

Polygon/Btc | Weekly Time Frame

On the weekly timeframe, $MATIC/BTC is at the range quarters. Currently, it is holding briefly, but if the price continues to decline in line with its downtrend, we could expect MATIC to move towards lower prices, as illustrated on the chart. However, if the price manages to hold at this level, $MATIC could experience a push higher.

image.png
Polygon/Btc | Weekly Time Frame

LTF | BTC & ETH & Matic

Bitcoin | H4

On the four-hour timeframe, $BTC remains range-bound and is trading at the midrange. As illustrated in last week's analysis, this is where we were most likely headed if the price couldn't hold above the range highs. Failure to maintain the mid level could lead to lower prices, potentially reaching the range lows at $26-27k.

image.png
Bitcoin | H4

Ethereum | H4

On the lower timeframe, $ETH deviated from the range highs and broke down over the weekend. It is now close to the range lows, although they haven't been properly taken out, as shown on the chart. A push higher will likely occur if we can regain the mid level. However, unless $ETH does that, the range lows are the most probable target from here.

image.png
Ethereum | H4

Polygon | H1

On the lower time frames, $MATIC has been trading perfectly within a range until now, and we have recently broken out of the range lows. To confirm this as a deviation, the price would need to regain the range lows again. For now, this level should act as resistance, and if we were to retest it, it could potentially push us further down to lower prices.

image.png
Polygon | H1

For those interested in further expanding their knowledge and understanding of trading, we recommend checking out our article on the basics of trading 101. This valuable resource will equip you with essential trading principles and strategies to help you navigate the ever-changing crypto landscape.

Disclaimer: Please note that all information, data, and technical analysis provided in this content are for educational and informational purposes only and should not be construed as investment advice, financial advice or trading advice.


Top Altcoin Gainers and Losers

Gainers:

Bitget Token BGB (+5.73%)

Stacks STX (+4.51%)

Flare FLR (+2.64%)

Losers:

Pepe PEPE (-27.00%)

eCash XEC (-15.39%)

Render Token RNDR (-14.93%)

NFT Market Map

NFT trading volumes on Ethereum doubled to $4.5 billion in Q1 2023, partially due to the airdrop frenzy of Blur's native token. The number of unique wallets trading NFTs increased by 24.5% during that time. However, NFT trading volumes declined by 30% in April and traded at bearish levels of 2022 by May.

Screenshot_1.webp

This article has been refined and enhanced by ChatGPT.

cryptocurrency widget, price, heatmap
v 5.6.13
© 2017 - 2024 COIN360.com. All Rights Reserved.