Nothing can keep Bitcoin down for long.
With the halving close, it leaves you wondering…who is selling now?
They’re getting their portfolios prepped.
But it looks like they’re almost done.
Let the rally resume!
Here’s what’s in today’s issue:
- Rebecca shares her thoughts on Bitcoin’s recent boost, Etheeum’s Dencun upgrade, Ark amending their ETF application, Kraken’s European expansion & Polygon making L2s just like L1s
- Altcoin alpha by David.
- This week’s airdrop by Jesse.
- Sam has an NFT report on ERC-404.
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Bitcoin Gets A Boost As Sell-Off Slows Down
Bitcoin has woken up from its sideways chop and could be heading towards $50K.
This is the highest Bitcoin’s price has been post-ETF launch. That’s because selling pressure is slowing down.
Whilst the spot ETFs have seen billions in inflows, miners have led the outflows. But it appears the miners are finally running out of coins to sell. Bitcoin miner reserves are now at their lowest level since June 2021.
Miners have been selling BTC to boost their USD capital ahead of the Bitcoin halving. Now is the time to upgrade machinery and buy new sites because when the halving hits, profitability also gets hit.
Bitcoin miners transferred $1 billion worth of BTC to crypto exchanges on January 12 alone. It’s this selling pressure that has kept a lid on the Bitcoin price. Now the miners have scaled back their daily BTC sales from over 800 at the end of 2023 to less than 300 in 2024.
Cue the Bitcoin miner expansion news…
1. CleanSpark to double its hash rate
CleanSpark has bought four new mining rigs in the US for $26.7 million which will help double its hash rate from 10 EH/s to 20 EH/s in the first half of 2024.
Three of the mining facilities are in Mississippi and the other is in Georgia.
2. Iris Energy to add 20 EH/s of hash rate
Iris Energy has bought 10 EH/s worth of new T21 mining machines from Bitmain.
To achieve the total addition of 20 EH/s by the end of the year, Iris needs to increase its operational capacity by 222%. But so far in 2024, Bitcoin production across the board has dropped due to higher electricity costs.
Iris has ambitious plans ahead.
Do you hold any shares in Bitcoin mining companies? Reply to this email and let me know.
Ethereum’s Dencun Upgrade Is Almost Here
A new era is almost upon Ethereum!
Ethereum developers have successfully launched its Dencun upgrade on the third and final testnet, Holesky. The next step is the mainnet launch.
With Holesky’s larger validator set than Ethereum’s own mainnet, deploying the upgrade on Holesky was key. It means in theory, there should be no hiccups on the mainnet launch.
The Dencun upgrade will see the launch of proto-danksharding which aims to reduce transaction costs for rollups.
Ethereum developers have confirmed the mainnet launch is being targeted for around March 13. Originally, the draft schedule was aiming for the end of February.
So an extra wait time of a couple of weeks, it is. I wouldn’t expect anything else from the Ethereum team!
Ark Invest Amends Ethereum ETF Application
Ark Invest has made two amendments to its proposed spot Ethereum ETF:
- Moving from an in-kind redemption model to a cash-creation model
- Adding a staking feature
The cash creation model means the ETF would buy Ethereum equal to the order amount and leave it in the trusted hands of the custodian. Then, shares would be created. This would bring Ark’s proposed Ethereum ETF in line with its existing Bitcoin ETF.
The Ethereum staking feature would allow ETH to be staked from the trust’s cold vault balance and the trust would treat any staking rewards as income. Reference to the staking feature was put in brackets which indicates this is Ark Invest’s ideal scenario and is open to discussing it with the regulator.
The next key dates to watch out for in the race for a spot Ethereum ETF are:
- May 23: Decision on VanEck’s application
- May 24: Decision on Ark 21Shares application
- May 30: Decision on Hashdex application
But Bloomberg analyst Eric Balchunas lowered his odds for an approval from 70% to 60% on January 30. Time will tell if this will be the next catalyst after the Bitcoin halving.
Kraken Continues With European Expansion
Crypto exchange Kraken has been granted its fourth European license.
With licenses already in Spain, Italy, and Ireland, it can now offer its services in the Netherlands under Europe’s MiCA regulations.
Kraken chose the Netherlands due to its high crypto adoption rates, with around 20% of its citizens owning crypto.
This move isn’t surprising as back in October 2023 Kraken acquired a crypto exchange based in the Netherlands called Coin Meester.
Just like Coinbase, Kraken is continuing to expand into Europe now that there is regulatory clarity. Something the US still isn’t prioritizing.
That’s another country onboarded into crypto just in time for the Bitcoin halving and fingers crossed an epic bull market!
Polygon To Make L2s Just Like L1s
Polygon announced a big technological breakthrough this week.
Its Type 1 prover is a new component that essentially makes any Layer-2 network almost identical to a Layer-1 blockchain. It allows existing EVM-compatible chains or optimistic rollups to connect to Polygon’s new prover right out of the gate without any modification.
This plugs into Polygon’s Aggregation layer, giving instant access to Ethereum’s entire ecosystem of liquidity. This is a step up from Polygon’s Type 2 prover that’s currently in use which doesn’t quite provide fully equivalent functionality to Ethereum.
Vitalik Buterin has already raved about the potential of Type 1 provers as allowing perfect compatibility with Ethereum. Adding this new technology to the mix is part of Polygon’s 2.0 roadmap of building an ecosystem of interconnected blockchains.
Existing Projects / Tokens
- Aerodrome Finance [AERO] is now supported, available, and tradable on Coinbase, as of February 6th. Aerodrome is a next-gen AMM that serves as a liquidity hub for the L2 Base network.
- Arbitrum [ARB] will soon be a home for Plume Network, which is a modular L2 for real world assets. Plume Network made the announcement this past Wednesday and says they will soon be going live via Arbitrum Orbit.
- Clearpool [CPOOL] just launched on ETH L2 Mantle. Clearpool is a decentralized, permissionless credit marketplace that allows institutions to raise short-term capital from DeFi users. The loan interest rates (your returns) are based on free market consensus.
- Dymension’s [DYM] mainnet blockchain and token went live Wednesday, with the token hitting a $900M market cap on day one of trading. Dymension is described as a modular settlement blockchain that allows developers to easily launch L2 app-chains, called “RollApps.”
- Polygon [MATIC] is in the midst of an upgrade that will transition the protocol from a Type 3 zkEVM to a Type 2 zkEVM. Polygon Labs says the upgrade will provide better protocol performance and attract more developers.
Upcoming Projects / Tokens
- GLIF has received a $4.5M seed round investment from Multicoin Capital. GLIF is a developing liquid leasing protocol on Filecoin that allows users to deposit FIL in order for Filecoin’s storage providers to lease out that FIL for a fee.
- Shrapnel [SHRAP] started early access this past Thursday. Shrapnel is the highly anticipated Call of Duty-style crypto game that’s under development by Epic Games and will be operating on top of Avalanche.
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Levana Protocol is an ambitious DeFi protocol built to utilize the Cosmos ecosystem and help it grow to become one of the most used networks in crypto. Despite a hacker’s recent attempt to exploit the protocol. Levana’s built-in emergency response system kicked in and thwarted this would-be attacker. With Levana proving itself as a competitive protocol it’s time to discuss the Levana Airdrop.
Levana will release its LVN token in the next few months and is allowing everyone to earn a reward from various on-chain activities. The Airdrop will happen in three stages. Stage one will be the Family Airdrop and target early adopters, including Levana NFT community members and platforms where Levana perps are deployed on Osmosis, Injective, and Sei. The Community Airdrop will follow and reward other community members like Stargaze, Kujira, and Astroport traders. The final and third stage will reward users from outside the Cosmos Ecosystem to onboard new users into the Osmosis build of Levana.
The first phase of the Levana Airdrop was completed last month, with the second and third phases set to roll out over the next 120 days. The Levana Airdrop is designed around a first-come first-served system. To participate all you have to do is fill out the Levana Airdrop Application and specify what on-chain activities you’ve completed in and outside of Levana. If you’re unsure, choose the “Stuff on Ethereum” option to register. Once the next claim period is announced you’ll be able to claim your free LVN in order of applications submitted.
What Are ERC-404s and Pandora?
ERC-404 tokens are a new development aiming to combine features of ERC-20 tokens and ERC-721 tokens.
This means the creation of NFTs that are interlinked with fungible tokens, enabling built-in NFT fractionalization and immediately increasing liquidity.
The leading project pioneering the ERC-404 standard is called Pandora, and prices on Pandora tokens and NFTs have been climbing rapidly.
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Wealth Mastery (Lark Davis, and the Wealth Mastery writing team) are not providing you individually tailored investment advice. Nor is Wealth Mastery registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. Wealth Mastery is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.
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