Fantom: Market Slowdown Chops Off 10% From Gains – Here’s Why

Leading the downturn today, Fantom (FTM) contributes to the 2% drop in the crypto market after weeks of growth.

Fantom is one of those altcoins that followed the broader momentum of the market. The latest market data shows that the token is down 10% in the past 24 hours, but is still on the green in the bi-weekly timeframe at 14%. However, Fantom has a trick up its sleeve to curb this brewing bearishness potentially. 

Fantom CEO Michael Kong Unveils Sonic Launch 

Sonic is the brand-new technology that the Fantom has been developing in the past 2 years. According to their latest blog post, Sonic was able to surpass the network’s 200 transactions per second metric. Although 200 TPS was already impressive compared to Ethereum’s 12 TPS, the network was quickly congested, and user experience deteriorated. 

Kong said in the blog post: 

“​​Sonic will be used to create a new best-in-class shared sequencer for L1 and L2 chains, capable of processing over 180 million daily transactions with real, sub-second confirmation times, and serve as the foundation to relaunch Fantom as an entirely new community-centric brand.” 

This brand-new tech will cover all parts of the Fantom network, from bridging to a stablecoin launch, Sonic has it all. 

Sonic Labs will also gain a slice of the pie as the foundation ultimately adds grant programs alongside the network upgrades. 

“We will continue to significantly scale and accelerate our Sonic Labs grant program for developers who build unique and valuable applications and public goods in categories including gaming, DeFi, social media, streaming, and now distributed AI,” Kong added. 

This will significantly increase the size of Fantom’s user base, boosting investor confidence, and giving more room for developers to innovate. 

Furthermore, the advancements brought forth by Sonic Labs in covering all aspects of the Fantom network, from bridging to the launch of a stablecoin, are poised to have a notable impact on Fantom’s market dynamics.

By streamlining processes, enhancing interoperability, and introducing new functionalities, these developments are likely to enhance the network’s attractiveness to investors and users alike.

The Fantom Foundation X account announced today that Frax Finance Founder Sam Kazemain is the first angel investor for Sonic, stating that Frax will deploy natively issued assets on Sonic on its eventual launch.

Short-Term Gains Slashed In Favor Of The Long-Term

Meanwhile, the bears have completely taken over the FTM market in the short to medium term. Investors in FTM could only hope that the broader market downturn will reverse in the coming weeks. 

Featured image from Pexels, chart from TradingView

Crypto Exec Reveals Why Meme Coins Are The Next ‘Trojan Horse’ For Crypto Adoption

Maartje Bus, Vice President of Research at Messari, a prominent crypto market intelligence company, has declared meme coins as the Trojan Horse of the cryptocurrency space. She has highlighted their potential to foster massive adoption and increase engagement within the cryptocurrency space. 

Why Meme Coins Are Crypto’s Trojan Horse For Adoption

Speaking at BUIDL Asia, a global developer community in Seoul, South Korea, on Thursday, March 28, Bus gave a presentation on the emerging trends in crypto in 2024. The Messari crypto executive had primarily focused on the impact and potential benefits of meme coins in driving adoption within the crypto space. 

According to Bus, meme coins have become an integral part of the crypto market and are evolving towards potentially establishing themselves as a distinct asset class. The Messari executive has described these humor themed coins as a “Trojan horse” which could potentially facilitate the entry of new users into the realm of cryptocurrency, effectively boosting adoption.

During her speech, Bus disclosed that the introduction of these coins has successfully attracted the attention of both crypto and non-crypto enthusiasts. This is seen in the cryptocurrency’s ability to capture the attention of investors, utilizing its meme-based marketing strategies to fuel engagement while also providing opportunities for massive profitability due to its speculative nature. 

Bus believes that meme coins could be likened to a long tail speculative service like lottery tickets which attract investors seeking high risk, high reward opportunities. Additionally, owing to their relatively low price value, they cater to individuals across various income brackets, who are willing to take speculative bets in the hopes of securing significant returns

Moreover, according to the Messari executive, meme coins serve as a gateway for newcomers to the Web3 space, exposing them to fundamental crypto concepts like decentralization.  

The Growing Allure In Crypto Space

Lately, the rise in interest in meme coins has been growing at an exceptional rate, attracting both investors and traders from all over the world. This surge in interest has propelled meme coins in the spotlight, pushing their prices to unprecedented highs

Unlike traditional cryptocurrencies, which are backed by underlying projects and practical use cases, meme coins derive their value largely from their community and speculative appeal. Additionally, these cryptocurrencies offer a more approachable entry point into the realm of crypto investments, utilizing their affordability and susceptibility to social media trends and user sentiments to attract seasoned investors and newcomers alike. 

Crypto total market cap chart from Tradingview.com (Meme coins)

From $90 To $400 Litecoin: Analysts Bullish On LTC Soaring Trajectory

Litecoin (LTC), the silver to Bitcoin’s gold, has enjoyed a recent price surge, leaving investors cautiously optimistic about its future trajectory.

Over the past week, LTC has seen a 13% increase, with its value hovering nearly $96 at the time of writing.

This bullish run has been accompanied by technical indicators suggesting a potential continuation of the uptrend, but some analysts warn of lurking risks.

Potential Litecoin Price Bump In The Offing

One key driver of optimism is the apparent breakout from a bullish triangle pattern. This technical indicator, identified by popular analyst World of Charts, suggests a potential price surge in the coming months, with some analysts even predicting a climb to $400.

Further fueling the bullish sentiment are on-chain metrics like the MVRV ratio, which suggests the coin might not be overvalued yet.

Additionally, a rise in Daily Active Addresses and transaction volume indicates increased investor activity and trading.

This is further corroborated by a bullish crossover on the MACD indicator and a rising Money Flow Index (MFI), both suggesting potential for further price hikes.

However, not all signals are green. The Network-to-Value (NVT) ratio, which indicates potential overvaluation, has also spiked alongside the price increase. This raises concerns about a possible price correction if the market deems LTC to be overvalued.

While the recent price action for Litecoin is encouraging, it’s crucial to maintain a balanced perspective, analysts caution. Technical indicators can be helpful, but they shouldn’t be the sole decision-making factors, they said.

LTC Hashrate Remains Stable

Meanwhile, the hashrate, a measure of computing power dedicated to mining LTC, has remained stable, suggesting no significant changes in miner activity. However, some analysts worry that a potential drop in hashrate could hinder future growth.

The overall picture for Litecoin presents both opportunities and challenges. The recent price surge and positive on-chain metrics are encouraging signs.

However, potential overvaluation concerns and conflicting technical signals urge caution. Investors should closely monitor both technical and fundamental factors before making any investment decisions.

The coming weeks will be crucial for LTC. If the uptrend continues and the price breaks through key resistance levels, a significant rally could be on the horizon.

If overvaluation concerns materialize or the broader market takes a downturn, a price correction could occur.

Featured image from Pexels, chart from TradingView

Bitcoin ETF Inflows Could Eclipse $1 Trillion, Predicts Bitwise CIO

Following a week of net outflows, the spot Bitcoin ETF market has rebounded with impressive net inflows this week, highlighting a growing investor confidence in Bitcoin and its associated financial products. This week’s market activities have shown a remarkable reversal from the previous 5-day net outflow streak, with Tuesday witnessing a substantial net inflow of $480 million, followed by $243.5 million on Wednesday.

Yesterday’s resurgence in investor interest was notably boosted by Blackrock’s massive inflow of $323.8 million, effectively offsetting Grayscale GBTC’s $299.8 million outflows. Moreover, Ark Invest’s ARKB reported its best day yet, with $200 million in inflows, despite Fidelity experiencing its worst day with a mere $1.5 million in outflows. Nevertheless, Fidelity managed to bounce back with significant inflows of $261 million and $279 million on Monday and Tuesday, respectively.

1% Down, 99% To Go For Bitcoin ETFs

However, according to Bitwise Chief Investment Officer (CIO) Matt Hougan, this is just the mere beginning of what is to come in the upcoming months. Hougan’s commentary, part of his weekly memo to investment professionals, sheds light on the current market dynamics and the colossal potential that lies ahead. “1% Down; 99% to Go,” Hougan wrote, highlighting the nascent yet promising journey of Bitcoin ETFs.

Lately, the market has been characterized by its volatility, with Bitcoin’s price oscillating between $60,000 and $70,000. Hougan advises a calm and long-term perspective amidst this fluctuation, especially as the sector anticipates the upcoming Bitcoin halving around April 20, the approval of Bitcoin ETFs on national account platforms, and the soon-to-come completion of due diligence by various investment committees.

Despite the current sideways movement of Bitcoin’s price, Hougan remains bullish about its long-term trajectory. “Bitcoin is in a raging bull market,” he asserts, noting a nearly 300% increase over the past 15 months. The launch of spot Bitcoin ETFs in January has marked a significant milestone, opening up the Bitcoin market to investment professionals on an unprecedented scale.

Hougan’s analysis points to a profound shift as global wealth managers, who collectively control over $100 trillion, begin to explore investments in the “digital gold.” He suggests that even a conservative allocation of 1% of their portfolios to Bitcoin could result in approximately $1 trillion of inflows into the space.

This perspective is backed by historical data showing that even a 2.5% allocation to Bitcoin has enhanced the risk-adjusted returns of traditional 60/40 portfolios in every three-year period of Bitcoin’s history.

The recent inflows into Bitcoin ETFs, though impressive, are seen by Hougan as merely the beginning of a much larger movement. “We are all excited about the $12 billion that has flowed into ETFs since January. And it is exciting: Collectively, the most successful ETF launch of all time..But imagine global wealth managers allocate just 1% of their portfolios to bitcoin on average,” Hougan elaborates, emphasizing the scale of potential growth awaiting the cryptocurrency market. He concludes:

Think about the implications. […] A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment. 1% down, 99% to go.

At press time, BTC traded at $70,644.

Bitcoin price

XRP ETF Premium Primed For Monumental Leap: Eyes Set On $500

XRP enthusiasts are in a frenzy after prominent community figure Chad Steingraber proposed a scenario where an XRP exchange-traded fund (ETF) could trade at a staggering 100x premium.

Steingraber, a seasoned game designer, laid out his thoughts in a recent post, igniting discussions about the potential trajectory of an XRP ETF, particularly in light of the ongoing push for institutional adoption of the altcoin.

Targeting A $500 XRP ETF Share Price

Steingraber’s speculation centers around the price at which an XRP ETF’s shares might trade. His hypothesis hinges on the crypto reaching an unprecedented price of $5 per coin. In this scenario, he theorizes that the corresponding ETF could soar to equally unprecedented heights, potentially reaching a solid $500 per share.

This hefty premium, according to Steingraber, would be fueled by a surge in institutional interest in the ETF. He cites the Grayscale Litecoin Trust (LTCN) as a prime example.

Similar to his proposed XRP ETF, LTCN trades at a significant premium over Litecoin’s current market price. Despite Litecoin hovering around $95, investors in LTCN are currently paying a premium of over $250 per Litecoin equivalent within the trust.

Can Arbitrage Opportunities Emerge?

The prospect of such a high premium has sparked discussions about potential arbitrage opportunities. X user Zack, in response to Steingraber’s post, questioned whether individuals holding XRP could exploit this price disparity. Steingraber acknowledged the possibility, particularly if the issuing ETF allows for in-kind deposits, where investors can directly exchange their token for ETF shares.

However, he cautioned that in-kind deposits are still a rarity in the ETF market. While Steingraber expressed optimism about the future adoption of this practice, its absence presents a hurdle for immediate arbitrage opportunities.

The XRP community has long advocated for asset managers, especially industry giant BlackRock, to launch an XRP ETF. They believe such a product would significantly bolster the value of XRP by increasing its accessibility to institutional investors.

A Speculative Outlook With Underlying Uncertainties

It’s crucial to remember that Steingraber’s vision is entirely speculative. As of today, no asset manager has taken concrete steps towards applying for an XRP ETF. Furthermore, the justification for such a high premium rests heavily on the assumption of substantial institutional demand, a factor that remains uncertain.

The applicability of the Grayscale Litecoin Trust comparison also requires further scrutiny. The specific structure and features of an XRP ETF would significantly influence whether a similar premium dynamic would emerge.

A Reality Check For Investors

While Steingraber’s prediction has certainly captured the community’s imagination, investors are advised to approach it with a healthy dose of caution. The approval timeline for an XRP ETF hinges on the US Securities and Exchange Commission’s stance on cryptocurrency ETFs.

Additionally, competition from other potential ETFs could play a role in determining the premium, if any.

Featured image from Freepik, chart from TradingView

Bitcoin Price Faces Uphill Task But Indicators Signal More Upsides

Bitcoin price is consolidating gains above the $69,000 support zone. BTC must clear the $71,500 resistance zone to start a steady increase.

  • Bitcoin price is still showing positive signs and facing resistance near $71,500.
  • The price is trading above $69,000 and the 100 hourly Simple moving average.
  • There is a major bullish trend line forming with support at $69,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it clears the $71,500 resistance zone.

Bitcoin Price Holds Support

Bitcoin price remained in a positive zone above the $68,800 resistance zone. BTC climbed higher the $70,000 resistance zone, but the bears were active near the $71,500 level.

There were more than two attempts to clear the $71,500 level but the bulls failed. There was a downside correction, and the price tested the $68,400 support. A low was formed at $68,366 and the price is now starting a decent increase.

There was a move above the 23.6% Fib retracement level of the downward move from the $71,746 swing high to the $68,366 low. Bitcoin is now trading above $69,000 and the 100 hourly Simple moving average. There is also a major bullish trend line forming with support at $69,120 on the hourly chart of the BTC/USD pair.

Immediate resistance is near the $70,000 level or the 50% Fib retracement level of the downward move from the $71,746 swing high to the $68,366 low. The first major resistance could be $71,200.

Bitcoin Price

Source: BTCUSD on TradingView.com

The main resistance is still near $71,500. If there is a clear move above the $71,500 resistance zone, the price could continue to gain strength. In the stated case, the price could even clear the $72,500 resistance zone in the near term.

More Losses In BTC?

If Bitcoin fails to rise above the $71,200 resistance zone, it could start another decline. Immediate support on the downside is near the $69,200 level and the trend line.

The first major support is $68,400. The next support sits at $67,500. If there is a close below $67,500, the price could start a drop toward the $66,000 level. Any more losses might send the price toward the $66,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $68,400, followed by $67,000.

Major Resistance Levels – $70,000, $71,500, and $73,500.

Breath Of Fresh Air: Viral ‘Cardano Girls’ Video Sparks Conversation About The Project

Cardano (ADA) has received plenty of criticism over the years, whether it’s ADA’s price performance, its founder’s personality, or its community’s “beef” with Solana.

This time, the project’s marketing team made the headlines after a viral video of female Cardano users became viral on social media. The ‘Cardano Girls’ video has sparked a conversation about the project’s efforts to reach a broader audience.

A Breath Of Fresh Air In The Community

The ‘Cardano Girls’ video was uploaded by Lily Brodi, a content creator and Cardano user, and went viral in hours. The video recreated a popular social media trend of people playfully listing stereotypical practices of a group of people with the phrase “We are (group). Of course, we…”

The trend, recreated by millions, including famous personalities like Kim Kardashian, has reached the crypto community. Last week, a “Crypto Girls” version of the trend was uploaded on X, which prompted Brodi to make her own.

Brodi’s version approached the point of view of female Cardano investors, with the opening line setting the lighthearted and playful tone: “We’re Cardano girls. Of course, we are real.”

The list in the video includes how female ADA users “treat themselves with money saved on gas,” “have Charles as their phone wallpaper,” and “buy $ADA while the men create all the drama.”

At the time of writing, the viral video had over 1.5 million views on X. Its massive reach resulted in the acknowledgment of Cardano’s founder, Charles Hoskinson, referred to as “Cattle Daddy” in the video.

‘Cardano Girls’ And Marketing Team Face Criticism

The video didn’t go unnoticed by critics, who considered the video to be “cringy,” while others expressed opinions seemingly based on misogyny. Crypto influencer Peter McCormack replied to the X post stating that the video will be used “as torture at Guantanamo Bay.”

However, the video appears to be well-received by the Cardano and crypto community. Brodi addressed the male detractors in an X post:

Nonetheless, the video opened a broader conversation despite the critics. On one hand, it highlighted how the male-dominated crypto industry can be unreceptive and aggressive to women in the space. On the other hand, it pointed out a crucial issue for Cardano: its “unattractiveness.”

The Need For A New Approach

Brodi discussed the video’s immense impact, as it seemingly brought general interest in the project, with people reaching out to her curious about the Cardano wallet. Despite its technology and the knowledgeable people inside the community, the project doesn’t seem to attract the general user.

Brodi, who creates light and informative Cardano-related content, considers that the general content offered can be “too heavy” and “overwhelming” to those who know about the industry and even more to those who don’t but want to come in.

Cardano’s marketing problem, as highlighted by Brodi, has often prevented potential users from entering. She suggests that a change in the market strategy is “needed within Cardano” for broader adoption.

Lighthearted, fun, and enjoyable educational content that can be easily consumable can be fundamental for broader adoption. Investors can be attracted to projects that seem easily understandable and approachable. As seen with the memecoin mania, projects can become massive, even if the long-term technology and planning aren’t developed by launch.

The crypto community is undoubtedly filled with people who enjoy various content and projects. But “bringing light and fun” enjoyment is crucial to supporting adoption because, at its core, “that’s what our community is.”

Cardano, ADA, ADAUSDT