Gm friends,
If you thought Toncoin was just going to shut up and take it from the French government, then think again, Sunshine.
So pour that coffee and strap in, because here’s your mid-week crypto update. ☕️📰
Here’s what’s in today’s issue:
- David shares his thoughts on TONs developers fighting for Durov, the stable coin market cap hitting an ATH, Tulsi Gabbard endorsing Trump, Tokenized treasuries hitting a $2B market cap & Nasdaq launching Bitcoin options.
- Rekt Capital has the latest technical analysis for you on the market.
- Erik has an article on why Ethereum’s price is not great this cycle.
- In case you missed it by Rebecca.
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Ton’s Developers Fight for Durov
Following Pavel Durov’s controversial arrest in France this past Saturday, Toncoin’s developers, and the larger community, have gone into overdrive to support Telegram’s CEO and co-founder.
After issuing a statement of support on Saturday, Ton’s developers began pushing #FREEDUROV and #DigitalResistance on X. Then on Monday, Ton’s Resistance Dog (REDO) memecoin avatar was adopted as the official logo for the entire blockchain (REDO pumped 140% in the process).
And on Tuesday, developers issued an open letter to French authorities demanding (1) the immediate release of Durov, and (2) that Telegram’s commitment to protecting users’ privacy be respected. At last count, the letter has received over 1 million signatures.
At the time of this writing, Durov remains in French custody, although he hasn’t yet been officially charged with a crime. And while the accusations against Durov and Telegram are numerous, they boil down to a failure to moderate the messaging service and cooperate with law enforcement.
However, the problem with all of this is the fact that Telegram offers peer-to-peer encrypted messaging. So without further details, the French government’s accusations look suspect, because they’re potentially holding Durov criminally liable for how individual users choose to use the messaging service.
From a broader perspective, Toncoin’s opposition to Durov’s arrest is a strong move. And it could ignite a larger wave of support for the Toncoin ecosystem, especially if market participants begin to view the blockchain as critical resistance against governmental authoritarianism and overreach.
Stablecoin Market Cap Hits New ATH
$169,000,000,000.
That’s the amount of stablecoins currently floating within the crypto economy. And this is a new all-time high when not factoring in algorithmic stables, according to data from DefiLlama and CoinMarketCap.
The last time the stablecoin market cap was (nearly) this high was in the Spring of 2022, just a few months after the crypto market had its late 2021 blow-off top.
Now before you fear that this new ATH means the best is already behind us, remember that stablecoins serve as both an on and off ramp between the fiat and crypto worlds. So judging where we’re at within the current cycle, this is probably best interpreted as bullish.
To put it another way, there’s a sh!t ton of dry power that’s ready to rock at a moment’s notice.
Other analysts attribute the current ATH to institutions. The big boys are much more comfortable with the crypto ecosystem now, compared to just a few years ago. So the institutional money is flowing in via stablecoins, and then being utilized in various ways, including in RWA and DeFi products.
Tulsi Gabbard Endorses Trump
On Monday, Independent politician Tulsi Gabbard endorsed Donald Trump for president. The endorsement occurred at the National Guard Association’s General Conference, in Detroit, Michigan.
Gabbard’s endorsement follows just three days after RFK Jr.’s endorsement.
Now, while neither Gabbard nor RFK endorsed Trump primarily for crypto-related reasons, both are big proponents. Fundamentally, both Gabbard and RFK believe that bitcoin and the larger crypto ecosystem operate as a monetary tool that fights against authoritarianism.
With regards to Gabbard specifically, she delivered the keynote speech at Bitcoin Magazine’s Bitcoin 2023 conference.
So, Gabbard’s endorsement notably strengthens an expanding crypto coalition around the presidential candidate. Other coalition members include Vivek Ramaswamy (likely the one responsible for changing Trump’s mind on bitcoin) and J.D. Vance (a HODLER).
Tokenized Treasury Funds Hit $2 Billion Market Cap
Tokenized treasury funds hit the $2 billion market cap threshold on Saturday. That’s according to data from RWA.xyz.
Tokenized treasuries are on-chain representations of, and backed one-to-one by, U.S. T-bills. Thus, the tokenized treasuries pay out yields in line with the real deal, with the major difference being that the tokenized versions can be traded quickly on the blockchain.
Tokenized treasuries basically popped into existence in 2023, passed the $1B marker in April of 2024, and then doubled in size over the last five months. And of course, this $2B market cap is peanuts compared to the $27 trillion dollar bond market. So the point is that this crypto sub-industry is just getting started.
Take a look at RWA.xyz for breakdowns of the top ranking protocols, issuers, and blockchains. But with concerns to the latter, Ethereum and Stellar are the two current top dogs with 75% and 21% of the total action happening on each, respectively.
And while we’re on the subject, Centrifuge is launching a new on-chain lending market that uses tokenized treasuries as collateral. Thus, holders can receive liquidity on their tokenized treasuries without having to sell the tokens themselves.
Centrifuge has selected Base as their blockchain, and the lending market will cater to institutional clients. Centrifuge is a crypto start-up that focuses on tokenized RWAs.
Nasdaq Looks to Launch Bitcoin Options
Nasdaq Exchange representatives announced on Tuesday that they’re seeking SEC approval for the launch and trading of bitcoin options.
Options are contracts that give buyers the option to buy or sell an asset at a predetermined price on a particular future date. Options are often used by investors who want to hedge their risk with regards to the asset in question.
If approved, Nasdaq’s product will be known as Bitcoin Index Options (XBTX). The index will track bitcoin’s price per data provided by the Chicago Mercantile Exchange.
Nasdaq’s attempted entry into the bitcoin options space follows a similar one made by the NYSE in May. Both exchanges are waiting for SEC approval.
In today’s edition, the following cryptocurrencies will be analysed & discussed:
- Injective (INJ)
- Vanar Chain (VANRY)
- Ethereum (ETH)
- Kadena (KDA)
- Avalanche (AVAX)
- Based Brett (BRETT)
Injective — INJ/USDT
Last week, we spoke about how INJ could be going for a retest attempt of the black $18.02 level as support:
Here’s today’s update:
This Bullish Divergence has played out for INJ, as price rallied +27% since successfully retesting the black $18.02 level as new support to springboard across the range to revisit the light blue highs at $21.68.
Generally, INJ is rejecting at this Range High region which is approximately confluent with the bottom of the light blue wedge which INJ broke down from several weeks ago.
INJ would need to Weekly Close above the base of this old wedge for price to enjoy additional trend continuation, otherwise price could drop deeper into its existing range for further consolidation.
Lastly, on the RSI it is clear that there is a Higher Low which is playing an integral part in developing the Bullish Divergence, but also recently a new Lower High has formed on the RSI as well.
This Lower High just accentuates the fact that the red boxed resistance on the RSI needs to be totally breached for the INJ uptrend to really flourish; if the RSI continues to reject from the newfound Lower High resistance then the RSI will drop into the light blue Higher Low for another retest soon.
Vanar Chain — VANRY/USDT
Two weeks ago, we spoke about a potential Weekly Close above the blue level to set up a retest attempt of said level via the green pathway:
Here’s last week’s update, showing that the retest was being set up:
And here’s today’s update:
VANRY successfully retested the blue level as support and rallied +33% to the upside, following the green path perfectly and even slightly overextending beyond it, almost revisiting the very top of the blue-red range ($0.08-$0.12).
In this range, there is also a mid-point (black dashed horizontal) which represents the middle of the range.
VANRY Weekly Closed above this black mid-point, potentially setting up a retest of said level for VANRY to try and confirm itself in the upper half of the range to try to revisit the red Range Highs again.
VANRY would need to Weekly Close again above the black mid-range for the retest to be successful; technically, this current downside below the black level could end up as a volatile retest but the Weekly Close needs to confirm that.
Weekly Closing below the black mid-point could sentence VANRY to further consolidation between the blue and black levels.
CLICK HERE to go Premium and read the rest of this week’s Market Analysis – Premium subs can read Rekt capital’s full report.
Why is the Ethereum Price not Great this Cycle?
It has been painful for ETH holders (most of us) watching Ether underperform Bitcoin on the one side and Solana on the other.
A reason Ether price action is lackluster seems to be – paradoxically – the success of its Layer 2 roadmap.
Ethereum now not only faces competition from alternative Layer 1s but also from its own Layer 2s. There is hope, though.
TO READ THE REST OF THIS ARTICLE, CLICK HERE – “Why is the Ethereum Price not Great this Cycle?”
Crypto Market News
- Bitcoin millionaires have jumped 111% in the last year to 85,400 according to the Crypto Wealth Report 2024 from Henley and Partners. Source
- Bitcoin miner Bitfarms has bought Stronghold Digital Mining in a $175 million debt and equity deal. Source
- Germany has seized $28 million in cash from 13 unlicensed crypto ATMs. Source
- Bitwise has acquired the Osprey Bitcoin Trust— which holds $120 million in assets. Source
- Semler Scientific has increased its Bitcoin holdings after buying another $5 million worth of BTC. Source
- Bitcoin scaling project Ark Labs has completed a $2.5 million pre-seed funding round led by Billionaire Tim Draper. Source
- The stablecoin market cap has hit a new all-time high of $168 billion after 11 months of consecutive growth. Source
- Sony has launched the Minato testnet for its Ethereum Layer-2 called Soneium. Source
- Nasdaq wants to launch options on a Bitcoin index and is seeking approval from the SEC. Source
- Xapo Bank and Hilbert Capital will manage a Bitcoin-denominated hedge fund launching in September with $200 million of initial capital. Source
- The SEC’s case against crypto exchange Kraken will go to trial. Source
- Donald Trump has launched a new NFT collection and will offer buyers a piece of his suit from his debate with President Joe Biden. Source
- Web3 browser Brave has cut 27 employees from different departments in a new round of job layoffs. Source
- Coinbase has partnered with canned water brand Liquid Death to advertise its Base network in the US. Source
Coins and Projects
- BlackRock has listed its iShares Ethereum ETF on Brazil’s B3 stock exchange. Source
- Coinbase’s Base network has hit 1 million daily active addresses after a surge in Basenames. Source
- Polygon has regained control of its Discord server after it was hacked for around $145,000. Source
- EigenDA now supports native token restaking for layer-2 networks. Source
- Tether is planning to launch a stablecoin pegged to the UAE dirham. Source
- PayPal and crypto custodian Anchorage Digital have partnered to create a stablecoin rewards program. Source
- Aptos has partnered with Web3 streaming platform Myco and will integrate its platform to decentralize streaming. Source
- Cardano has rescheduled its upcoming Chang hard fork upgrade to September 1 to allow exchanges more time to prepare. Source
- Polygon’s token migration from MATIC to POL will be supported by Coinbase. Source
- NFT marketplace Magic Eden will launch the ME token to support dApps. Source
- Maker has been rebranded to Sky and will introduce new versions of its DAI and MKR tokens. Source
- Maker’s new stablecoin USDS will reportedly have the ability for the issuer to freeze the token. Source
- ETF issuer Franklin Templeton has expanded its tokenized fund to the Avalanche network. Source
- Ondo’s USDY yield token has expanded to the Arbitrum network. Source
- Tron’s new memecoin launchpad Sun Pump has overtaken Solana’s Pumpfun with 59% more revenue in 24 hours. Source
- TON is back online after suffering a block production outage following the DOGS memecoin airdrop. Source
Macro News
- RFK Jr. has dropped out of the running for US President and has backed Donald Trump. Source
- RFK Jr. has been added to Donald Trump’s transition team. Source
- Fed Chair Jerome Powell has confirmed cuts are coming to US interest rates as it’s time for “policy to adjust.” Source
- Telegram’s CEO Pavel Durov has been arrested in France. Source
- New Zealand has introduced a crypto reporting framework in a new tax bill. Source
- Argentina has added Ethereum to the Buenos Aires high school curriculum. Source
- India has grown its CBDC adoption to 5 million retail users and 16 banks. Source
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
If you are reading this it means you are on the free version of the Wealth Mastery Investor Report, which is great for news and tips on the crypto markets.
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See you next time!
Lark and the Wealth Mastery Team
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