Cardano 

Grayscale, a cryptocurrency asset management firm, published a report outlining the third-largest blockchain’s good and bad sides. Notably, its analysis appealed to both novices and seasoned crypto investors.

Among its advantages, Grayscale noted, is that the network’s founder, Charles Hoskinson, is an “iconic founder.” Also, Cardano has a large following, it’s open-source, and its native currency, ADA, is available on many exchanges.

Grayscale further observed that Cardano “is a Web 3.0 crypto network aiming to power an internet-native global cloud economy.”

The crypto asset management firm stated ADA’s diverse uses. For instance, Cardano’s base asset “is utilized for […] making transactions, providing system security via staking,” governance, covering network fees, and “enabling developers to build decentralized applications (Dapps).”

Grayscale also recognized the advantages of the recent Alonzo upgrade, which introduced smart contract functionalities on the decentralized network.

Cardano’s “Fee Revenue” Rises by 6,500 Percent, MAUs Skyrocket by 730%

According to the investment firm, the functionality paves the way for Dapps, which “should allow” the third-leading blockchain by market capitalization “to eventually” step up its competition on “crypto cloud market segments.”

These segments include, but not limited to, NFTs (non-fungible tokens) and DeFi (decentralized finance).

Other Cardano strongholds were rooted in the network’s “fundamental trends.” For instance, the blockchain has facilitated transactions worth more than 1.6 trillion USD since its “core PoS protocol went live.”

Also, the blockchain currently handles more than 115K transactions per 24 hours. Notably, this shows a 1,300 percent increase since the start of this year.

In its observation, the cryptocurrency asset management company noted that the “fee revenue paid to ADA holders” who participate in securing the network “has continued to rise rapidly.”

According to Grayscale, the fee revenues increased by roughly 6,500 percent in the last one year. It added that Cardano’s monthly active users have skyrocketed by approximately 730 percent “since the start of 2021.”

The virtual currency assets management company forecasted the network’s positive impact in the short, medium, and long terms. However, fulfilling these goals depends on the success of Dapps on the blockchain.

Only Bitcoin and Ethereum Are Not Securities

For example, if they are successful, ADA investors may contemplate investing in new assets such as NTFs in the short term. In the medium term, “Cardano may act as a higher beta play to Bitcoin.”

However, it wasn’t all praises. Grayscale also outlined Cardano’s weaknesses. Notably, its top shortcomings revolve around network security, network incentives, regulations, and mainnet applications.

For instance, the report noted that the blockchain’s “fee revenue is still relatively low compared to other PoS blockchains.”

Additionally, the Cardano blockchain lacks Mainnet applications and faces “legal & regulatory uncertainty” since only Bitcoin (BTC) and Ethereum (ETH) are viewed as assets and “excluded” from being securities.

On network security, Grayscale Investments observed that Cardano’s “formal verification” may be insufficient to protect the network from “technical problems or improperly designed economic incentives related to its PoS consensus.”

In July, Grayscale Investments added ADA to its Digital Large Cap Fund. Notably, the addition came before Cardano activated smart contract functionalities.

However, the Alonzo upgrade is finally bearing fruits. Cardano has welcomed its first decentralized exchange (DEX), Ardadex Protocol, which doubles up as an NFT marketplace. The protocol allows liquidity providers to earn a passive income.

Cardano Summit 2021 Showcases Partnerships With Dish, Chainlink, UBX, Veritree, AID:tech

The launch of the first DEX and NFT marketplace on Cardano comes a few days after the completion of the Cardano 2021 summit last month.

The conference was a mix of in-person and virtual attendance and was graced by innovators and experts. Apart from an outline of Cardano’s capabilities, the summit culminated into notable partnerships.

For example, Cardano announced its partnership with Dish Network, which is a fortune 250 firm. Input Output Hong Kong (IOHK) said that the partnership is meant to bring “the world of global telecoms and the blockchain space together [and grow] adoption for Cardano.”

During the same event, Cardano disclosed its partnership with Chainlink. According to IOHK, joining hands with Chainlink would enable “Cardano developers build […] secure DeFi applications.”

Cardano also announced coming together with Philippines UnionBank’s technology arm, UBX. Cardano aims to use it to drive on-chain DeFi activity.

The third-largest blockchain joined forces with Rival, an esports giant, Veritree, a land restoration firm, and AID:tech, a blockchain-focused identity solutions company.

In the meantime, Cardano’s founder is “taking two weeks off” in preparation “for the [Cardano] Africa tour.”

 

Bitcoin is currently trading at around $43.4k with not much change from yesterday’s levels. The largest cryptocurrency by market capitalization saw a rather subdued trading session earlier today as the bulls and bears fought to a largely stalemate. Altcoins on the other hand shed some value earlier today. More on that later on.

In other news, the US House of Representatives is set to vote on a landmark infrastructure bill that will among other things lay the groundwork for future crypto regulation in the country. The big spending bill is expected to energize key sectors of the US economy but it does make things challenging for the crypto sector. More on that later on.

An ETH developer has pleaded guilty to breaking US sanctions against North Korea. The said ETH developer reportedly gave a presentation on the cryptocurrency network in the capital of Pyongyang. The bizarre episode immediately invited the attention of top US agencies and they have since charged him to assist the heavily sanctioned country from avoiding the US-led financial restrictions. He is set to be sentenced under the draconian International Emergency Economic Powers Act that restricts tech transfer to Communist countries. This law is obviously a remnant of the Cold War and it is strange to realize that people can still be sentenced for more than five years under it. But can this law apply to other “somewhat” Communist countries like China and Vietnam? It will certainly open floodgates.

The JP Morgan CEO Jamie Dimon believes that Bitcoin could rise by as much as 10 times in the next five years according to a recent interview with Times of India. However, Dimon said that he was uninterested in investing in the digital currency sector and doesn’t care about it. But, that is only him talking. The company has recently purchased a 10% stake in Microstrategy, one of the biggest crypto holders in the world with an estimated $4 billion+ in their holdings. So, Dimon’s personal anti-Bitcoin beliefs aren’t exactly running the investment bank and even he can’t deny the potential of the crypto sector.

Bitcoin price Steady at $43k

Bitcoin price remained stranded between $43k-$44k for much of the last 24 hours. The digital currency. The last 24 hours started with the index at around $43.6k. The index immediately rose to around $43.9k but couldn’t sustain at that level and it fell strongly to around $43k in a matter of minutes. It traded sideways there for a while before a sizable rally brought the price index above $44k. It traded flat around this level for the next few hours when it started dropping around 11 AM. It slowly trended downwards and is now trading at $43.2k at press time.

Going forward, Bitcoin has failed to put on a strong recovery at the moment and the index is now once again under pressure from the bears to go below the $43k support level. The bulls do return when the index is falling hard to $40k and lower but becoming MIA when the thrust is needed to push the index above to much needed levels like $47k. So, the bulls are coming up short and that is certainly giving the bears some room to make a comeback in the short-term. However, the bears might return to defense if the bulls can regain levels above $47k in the short-term.

The total market capitalization of Bitcoin was around $815 billion and its share of the proceedings was 42%.

Bitcoin price chart

Altcoins Post Slight Losses

Other cryptocurrencies also posted some losses earlier in the day. Ethereum (ETH, -1.5%), Cardano (ADA, -3.8%), Polkadot (DOT, -4%), Uniswap (UNI, -6.5%), Chainlink (LINK, -4%) and Litecoin (LTC, -2%) all posted small losses. However, some like Terra (LUNA, 11%) and Solana (SOL, 5%) posted some gains.

Solana price chart

In Other News…..

US Congress to Vote on Infrastructure Bill, Crypto Regulation

The US House of Representatives is all set to vote on the new Infrastructure bill being sponsored by the Joe Biden administration. The new bipartisan bill is primarily focused on infrastructure spending especially in the green energy sector, thus creating a lot of jobs for Americans. 

While that is all good and not related to cryptocurrencies, the bill also contains a provision to monitor and tax digital currencies. Crypto lobbyists and pro-crypto legislators from both Democratic and Republican parties tried to remove the rule from the amendment but to no avail. 

Now the bill is expected to be put to vote on September 30. It is not yet clear whether it will pass or not but considering the strong Democratic representation in the chamber, the bill is likely to pass, resulting in new possible restrictions for the crypto networks.

 

altcoin news 

After weeks of intense rallying, the altcoin market seems to be slowing down a bit. Cardano and Solana, two of the best performing alternative cryptocurrencies of the past months, look like they’ve lost some momentum. However, some less popular altcoins such as Hedera Hashgraph are still doing great. But the most widely discussed altcoin this week has surprisingly been Litecoin - and not for good reasons.

Shameless Pump and Dump Leaves Investors Disillusioned with LTC

On Monday, a press release announced that the US retail leader Walmart will start accepting Litecoin payments. Although most crypto investors were extremely suspicious of the news, the story of alleged partnership between LTC and Walmart was soon reported by CNBC and Reuters.

Soon after, the news was completely denied by Walmart representatives. A partnership between Walmart and Litecoin was never discussed, and the press release turned out to be completely fake.

The initial announcement caused the LTC price to erupt by over 36% in under an hour, and when the fake news got debunked, the Litecoin valuation fell down by the same amount to the level before from the pump.

Although the founder of Litecoin Charlie Lee has denied any involvement with the pump and dump, the crypto community seems to already made up its mind on the affair: such an obvious pump and dump is humiliating for Litcoin’s reputation, and it might signify the end of LTC a serious cryptocurrency.

Solana Network Crashes, But Quickly Starts to Recover

On Tuesday, SOL investors were unpleasantly surprised by the fact that the entire Solana network has suddenly crashed. The SOL blockchain was down for hours due to vague reasons such as “intermittent instability” and “resource exhaustion in the network”. As the servers were down, the SOL price has fallen down by over 15%.

Solana’s issues point out to the fact that sacrificing decentralization to gain extra efficiency comes at a cost. A highly centralized blockchain like Solana, which stores most of the validator nodes in one location, might be susceptible to numerous problems which cannot affect truly decentralized cryptocurrencies like Bitcoin.

Cardano Keeps Struggling After the Underwhelming Launch of the Alonzo Update

According to Cardano developers, Alonzo was supposed to be the best thing since sliced bread. The long-awaited update to the ADA blockchain was intended to turn the Cardano network into a complex smart contracts platform that would be able to provide the users with the same functionality as Ethereum, but at a much higher speed and at a much lower cost.

However, it is safe to say that the deployment of Alonzo was a complete failure. Many crypto enthusiasts are joking that they haven’t seen a working Solana smart contract yet, and the launch of Minswap, the first DEX (decentralized exchange) built on the SOL blockchain was especially embarrassing. Soon after its launch, Minswap was shut down because it was completely unusable for most people - and it still remains down till this day.

Cardano investors remain patient. Although the ADA price hasn’t crashed, it has been experiencing a significant downtrend ever since the failure of Alonzo became obvious.

Cardano is still the third largest cryptocurrency on the market, but this situation might change in the near future. If the problems with Alonzo won’t be resolved soon, the investors might move their funds to other projects. However, if the Cardano team manages to finally get smart contracts to work, the ADA price will surely start to quickly recover.

Hedera Hashgraph Outperforms the Competition

Hedera Hashgraph (HBAR) has surprisingly become one of the fastest growing altcoins on the market. The HBAR price has increased by 150% over the past week, fueled not only by adding the NFT functionality to the Hedera Hashgraph network, but also by announcing impressive new partnerships with the Indian Institute of Technology Madras and the London School of Economics and Political Science.

Hedera Hashraph is a decentralized network which, like many other projects, promises to be the fastest and most efficient blockchain on the market. However, what distinguishes HBAR from the competition is the fact that it was designed from the start to easily accommodate not only simple smart contracts, but also very advanced DeFi solutions and dApps (decentralized applications).

Will Hedera Hashgraph manage to succeed in the hyper-competitive blockchain ecosystem? Only time will tell for sure, but many crypto experts believe that what we are witnessing is only the beginning of the HBAR price rally.

Bitcoin 

Image Source: Quoteinspector.com

Bitcoin revisited lower support levels earlier today. The largest cryptocurrency by market capitalization had lost quite a lot of value yesterday and it continued the losing streak earlier in the day before recovering some later on. The recent downturn in crypto prices is being linked to unease in the stock market regarding Chinese company Evergrande’s financials. Altcoins on the other hand posted big losses of their own too. More on that later on.

In other news institutional investors are increasing their hoarding of Bitcoin and at a much smaller scale of altcoins as well. Top Bitcoin investment fund Grayscale has increased its Bitcoin holdings and is now in possession of more than $40 billion in Bitcoin alone. More on that later on.

The US state of Texas is emerging as the next big place for the crypto sector as over 37% Texas residents have stated that they would prefer crypto payments. That is a total of 10.8 million people who want these digital currency payments in one state alone. The state has also enacted several crypto-friendly regulations as well.

It is estimated that Bitcoin miners are currently sitting on top of a massive $600 million worth of Bitcoin since February of this year. Since then, the index has posted a new all-time high of around $65k and come down sharply below $30k before recovering to $42k in the most recent past. It is believed that many of these miners are holding on to their crypto to sell for a much larger sum in the near future as another bull run is expected.

The US SEC chair Gary Gensler has compared stablecoins to Poker chips. Speaking to the Washington Post, he was once again asked about cryptocurrencies and he doubled down on his earlier remarks. Previously, he had called the cryptocurrency sector the Wild West of the digital world. Now he said that stablecoins were the poker chips people in the crypto wild west use to make a bet. Gensler is a vocal opponent of speculation in the crypto market and may influence the government to enact tougher laws on the crypto sector.

Bitcoin Revisits $40k Before Recovering

Bitcoin revisited the crucial long-term level of $40k earlier in the day before recovering above it. The digital asset has had a very bearish couple of days as the index nosedived from $47k after failing to get to the target of $50k. Now the index is under heavy pressure from the bears who after many weeks seem to have some measure of say in the proceedings. 

The last 24 hours started with the index at around $43.6. The index began to lose some value early on at 12:45 AM. It first went below $43k and then recorded a big downwards move that culminated with the index at around $40.4k. However, it did recover almost immediately back above $42k in no time and stayed there largely for the rest of the day. However, at around press time, the index began losing some value again and has moved below $42k slightly. Overall, the bears were once again the stronger side today and bulls could only do some damage control. 

Going forward, Bitcoin is currently facing immense pressure from the bears who are looking to pull the index below key support levels and thus regain the advantage. While no major support has yet been breached, the bearish offensive has poured cold water on the immediate bullish setup and the latter will need to work diligently in the coming days to regain the advantage. Overall, the bears are looking to break the $40k barrier. While many stats point at accumulation and long-term HODLing, the price index is the ultimate metric and is quite bearish overall today.

The total market capitalization of Bitcoin was around $778 billion earlier today and its share of the proceedings was 42.25%.

Bitcoin chart 

Altcoins Post Losses

Altcoins also had a largely bearish day with some weak recoveries in between. Solana (SOL, -12%), Polkadot (DOT, -6.5%), Uniswap (UNI, -9%), Ethereum (ETH, -7%) and Terra (LUNA, -10%) were among the biggest losers of today. The altcoins price tank may continue if Bitcoin’s price index cannot hold on to key levels.

Ethereum graph 

In Other News….

Institutional Investment into Crypto Keeps on Increasing

Despite the latest price tank and the overall losses during the last two days, institutional investment into the crypto sector keeps on increasing. 21Shares now has a massive $1.87 billion under management and is emerging as another big player in the sector. 

Traditional heavyweights including Grayscale and Microstrategy have also made significantly big investments and both now control effectively a sizable percentage of the entire crypto sector alone (around 7%). Grayscale alone has over $42 billion in Assets Under Management (AUM) right now and they are showing no signs of decreasing their share despite several unlocking opportunities in the recent past. So, the overall trend is in long-term investment even with the recent price tanks but the question remains how long will many of these big investors wait before offloading some or all of their big investments?

 

 

Image Source: Wikimedia Commons

Bitcoin has had a largely slow day overall as the index failed to make the push ahead to $50k and beyond. The largest cryptocurrency by market capitalization rose strongly yesterday but further progress has stalled in face of the looming $50k resistance in the near future. Altcoins on the other hand posted slight losses except for a few glaring anomalies. More on that later on.

In other news, Ethereum co-founder and key influencer of the sector Vitalik Buterin has made it to the TImes 100 Most Influential list of 2021. The innovator was involved in the initial rollout of the programmable network back in 2015. Since then, it has gone on to increase its worth and is now worth more than $400 billion.

Cardano, the third largest cryptocurrency network, is continuing with its progressive development. Recently, it has introduced the Plutus-powered smart contracts feature through the Alonzo hard fork. However, Cardano is still in very early stages of smart contracts development and no miracles can be expected from it.

Dutch DJ Don Diablo is working on a new futuristic NFT project called Hexhibit that will include a real world chamber that will depict the art in the token itself through an audiovisual file. He believes his manifestation of the artwork in the NFT itself will lend credibility through this physical existence.

An Aussie crypto fund manager has been sentenced to a maximum of 7 years for stealing a whopping $54 million from his investors. Stefan He Qin was the founder of two crypto hedge funds and it was proven in court that he embezzled more than $54 million from his investors to pay for his personal lavish lifestyle including luxury travel, food and rent. He was also proven to be guilty of falsifying records. 

Protestors broke down a Bitcoin ATM and covered it with anti Bitcoin graffiti in El Salvador as part of rising defiance against the Bitcoin legal tender move. More on that later on.

Bitcoin Steady at $48k

Bitcoin remained largely steady around $48k throughout the last 24 hours as further bullish movement stalled. The digital currency recovered strongly in previous days but is now likely contemplating the next move with a little bit of consolidation. 

The last 24 hours started with the index at around $48.1k. The cryptocurrency alternated around $48k for a while before recording a slight dip below to $47.5k. The index then almost immediately recovered back to $48k and has stayed there largely ever since with occasional dips below it. Overall, the volatility was very low, one of the lowest we have seen in the last few weeks with the highest valuation being around $48.4k and the lowest around $47.4k.

Going forward, the equation is the same for both bulls and bears. The bulls need to propel the index above $50k convincingly to restart the long-term bull run and the bears need to stop that from happening. Currently, neither is in full control and both are expected to jump back into action around the $50k level.

The total market capitalization of Bitcoin was around $908 billion and its shares of the proceedings was 41.20%. 

Altcoins Post Losses

Other cryptocurrencies aka altcoins posted slight losses through the last 24 hours. However, some exceptions were there. The most obvious of which was Avalanche (AVAX) that rose 22% to get to #13 on the charts with a market cap in excess of $14 billion. Polygon (MATIC, 5%) and Algorand (ALGO, 6%) were other winners of today. Majority of the altcoin market apart from these coins posted small losses signifying the indecision in the markets at the moment. 

In Other news…..

El Salvador Bitcoin Protests Grow in Momentum

El Salvador became the first country to recognize Bitcoin as legal tender but the move is not going as planned. Some political parties and members of the civil society are protesting strongly about the decision. Buoyed by poor government handling including illegal arrests, the protests are gaining in momentum. Recently, a newly opened Bitcoin ATM was vandalized by the protestors and sprayed with anti BTC graffiti.

While the pro-crypto president Nayib Bukele has promised that everybody who doesn’t want to use Bitcoin will be allowed to do so, protestors aren’t happy because of the botchy rollout and lack of education in the masses. Some sections also believe the move will only benefit the ultra rich with the poor and middle class not able to benefit from it at all. 

The government of El Salvador needs to be very careful about their actions. This is unchartered waters for many and there are real challenges that need to be overcome before Bitcoin can officially become sustainable in El Salvador. The government should engage politically with the public and not behave like anti-democratic setup.