Why are people swapping SOL for ADA?
In today’s edition, BTC heads to the bulls, Ripple’s ETH love, and who’ll rescue SBF?
Good morning! Welcome to The Daily Moon. What’s in a name? Ask Apricot Finance. The Solana-based lender’s APT token rose 70% all of a sudden. Turns out, users mistook it for a newly launched token Aptos that has the same APT ticker. Apricot wants you to make these mistakes often.
The markets had another green day. Bitcoin was above $19,600 while Ethereum was heading to $1,340 levels. Nasdaq gained in early trade. Back home, Sensex and Nifty rallied for the third day.
BTC’s Closer To The Bulls?
Bitcoin won’t save you from price rise. At least for now. Small changes in economic data have sent shockwaves to Bitcoin. But, some relief could be in sight.
It’s not a hedge?
What’s happened is that Bitcoin’s price has fluctuated quite a bit. That makes it unsuitable as a hedge. Analysts say that if inflation expectations stay high, Bitcoin will fall. It’s because consumers would sell their BTC for cash.
Bitcoin is at ~$19,900 levels. If more HODLers sell, it will fall further. The interest rate hikes by the US Fed are another worry. In September, Bitcoin fell almost immediately after rates were increased by 0.75%.
Playing the long game
While there is short-term pain, investment funds have bet on the long-term appeal of Bitcoin. Almost 90 crypto-linked trading products have made their debut in 2022. Of these, a majority are Bitcoin and Ethereum focussed products.
Eyeing the bulls
There’s good news on the way. Bitcoin’s close to the bull market. Research showed that the BTC hash rate has been high. Hash rate is the total computing power in the network added via mining. When there is a higher hash rate, it means more mining. This in turn reflects that there is confidence in the future potential of the blockchain. TL;DR Things don’t look rosy now, but it may get better soon.
Ripple Matches With Ethereum
Ripple wants to be compatible with Ethereum. It has tested a new side-chain, XRP Ledger sidechain, that will enable Ripple users to interact with Ethereum-linked decentralised applications (dApps).
FYI Side-chain is a separate blockchain that runs in parallel to the main blockchain. It’s a bridge to connect to other blockchains.
What will it do?
The XRP Ledger sidechain will allow the transfer of XRP tokens between the Ripple platform and Ethereum-led networks. Smart contracts can also be executed faster. The compatibility will happen in phases. The first phase is under review. Its second phase will allow instant transfers. The eventual goal is to move the sidechain to the mainnet.
So, XRP gained?
The ETH bridge didn’t bring much cheer to the prices. Meanwhile, the SEC still claims XRP isn’t legit. A game-changer will be the judgement in this SEC vs Ripple case.
Selling their SOLs for ADA
And that’s how it starts. NFT traders are abandoning Solana for Cardano. Over the past two days the NFT trading volume on Cardano has gone up ~110%. The number of trades went up by ~35% and sales by ~40%.
The reasons are sketchy. There is indication that Cardano’s increased social engagement has persuaded NFT traders to switch out. But that is far from convincing. Right now all we know is that whales have found love on Cardano. And the hope is that this increase in trading volume and enthusiasm will trigger to save ADA from the choke hold of the bear.
So what about Sol?
If we’re still talking about NFTs, Solana doesn’t seem to care. It is gradually edging market share away from Ethereum (If you’ve read the Ripple story, you can spot a pattern). The NFT trade on Solana has gone up 3x.
Who Saves The White Knight?
The man who wants to rescue crypto needs to be saved. Sam Bankman-Fried is being investigated by the Texas law enforcement. SBF has been on a mission to buy up companies that were affected by the Terra-Luna contagion.
Now, the Texas SEC has claimed that SBF’s company has been offering unregulated securities to customers through its yield-bearing services. FTX claimed it doesn’t allow personal account services to people in the US, a government official said they managed to download and make a trade. Radio silence from SBF and his company which saw revenue increase by 1000% during the crypto winter.
In related news
SEC, meanwhile, is investigating bankrupt crypto lender 3 Arrows Capital. SEC believes that the lender misled investors about its balance sheet.
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Who are we? This newsletter’s ambition is to educate (and to entertain). The world of money is changing everyday and we want to help you decode what’s happening in the world of crypto, public markets in the US and India.