What’s brewing in this DD issue?
- Why is Ethereum’s Pectra upgrade so sexy?
- B for Bitcoin and Bulls
- Meta 🤝Stables
- Arbitrum 🤝Institutional big guns
- Tron’s latest power move
GM DD amigos! 👋
Things have been looking up in the crypto markets, and the charts have brought back long-lost smiles on all our faces. But if your portfolio isn’t riding the green wave, then you need to do something about it.
Read on and pick up alpha insights from our carefully curated stories to juice up those profits on ‘em coins! 💪
“SURPRISE,” says ETH 🚀😉
Just when we were beginning to get second thoughts about the no.2 crypto, ETH knocked our socks off. With a more than 40% surge last week, Ethereum’s native crypto token just clocked its best week in 4 years. Glad our “Ethereum choking on its own gas” nightmare didn’t come true.
Is it the Pectra upgrade that’s powering the hopium behind the pump?
Let’s take a look.
So, what exactly is the Pectra Upgrade? 🤔
Pectra is Ethereum’s much-hyped technical upgrade that went live Wednesday. What this means for users is –
- Increased ETH staking capability on Ethereum from 32 to 2048. In technical parlance, EIP (Ethereum Improvement Protocol) – 7251 has eliminated the need to set up multiple validators to stake ETH (as was the case with the previous 32 ETH staking limitation). Now, multiple validators with staking power up to 2048 ETH can be consolidated under a single node. That’s a thrilling development for enterprises and institutions! Well done, Ethereum 👏
- This will allow crypto wallets to temporarily double up as smart contracts. “Account Abstraction”, as Ethereum devs have termed the feature, will enable users to pay transaction fees in stablecoins and establish automatic payment methods. And the best part? If you forgot your wallet seed phrase, no need to worry. Recovery Access will be made available to get you back in! How cool is that? 🤩
But what’s in it for you, as a trader?
Massive Accumulation
Well, there’s good news. While the Pectra upgrade was in the works, investors quietly bought the bottom. Data shows that institutions (read Wall Street Whales) and other deep pockets, plus retail folks (read long-term Ethereum believers, who claim to be “in it for the tech”) lapped up more than 315,000 ETH tokens last quarter, marking a 5% increase in accumulated on-chain ETH holdings.
So the thing is that, whenever an accumulation trend picks up pace, it is a 100% sign of an impending price rally, which we collectively witnessed this week. With an increasingly rewarding scenario in progress for institutions and enterprises with regard to the latest milestone, this trend is bound to go up in the following months.
For the first time since 2019, ETH entered gross undervaluation territory against BTC. We see this as a strong buy signal, as historically, this particular trend has led to explosive Ether price action. But we would still suggest that you keep an eye on the overall buying trend.
Positive Sentiment
ETH’s bearish free fall from the near $4,100 local top in late December 2024 to the ~$1,600 bottom in April this year activated highly oversold indications for the no.2 cryptocurrency.
In market conditions, where BTC and SOL (Solana’s native token) managed to maintain strength, remaining way above their last bear market bottoms, Ether was completely shattered, almost nearing its last bear market bottom.
Sweeping changes in the Ethereum Foundation leadership and the Pectra Upgrade have rekindled a bullish sentiment amongst the institutional big cheeses. With prices already having seen the worst, and a future looking bright for Ethereum, overall sentiment has flipped positive for the top smart-contract blockchain.
So, here’s to the shining future of your ETH portfolio with double-digit returns! 🥂
Fingers crossed🤞
Bitcoin Boomed Past $100,000. Again 🤑
Bulls Ready To Run Wild, Macro Pointers Spur Hope 😌
“Orange Coin Go Up” was the first thing that came to our minds when we said that crypto markets made us smile this week. Again. Bitcoin somersaulted back to the $100,000 bandwagon again, breathing new life into our “to the moon” dreams!
President Trump’s 90-day tariff pause brought risk-on sentiment back in capital markets. That was in the first half of April. 30 days later, the US Federal Reserve decided to keep interest rates unchanged, and instilled robust faith amongst investors wrt the US economy.
With corporate giants like Strategy, Metaplanet, etc, continuing their uber big BTC purchases, and the Trump administration progressing positively with trade deals with multiple nations, it won’t be surprising to see BTC touch a new ATH soon 😉
Technical Indicators Are Signalling Change – the Tide is Turning 😎
CryptoQuant researchers and data analysts also reiterated bullish hopes with their Bitcoin Bull-Bear Market Cycle Indicator. While it seemed that the top cryptocurrency was spiralling into another bearish market phase, with “who knows when it will end”, reclaiming the $100K price point flipped that narrative.
A 0.029 coefficient on CQ’s Bitcoin Bull-Bear Market Cycle Indicator pointed towards another leg for the Orange Coin. Plus, the 30-day moving average (DMA) is ticking up as well, with a “golden cross” formation appearing on the 26-period MACD (Moving Average Convergence/Divergence), a momentum indicator on the weekly BTC/USDT weekly chart. Historically, golden crosses have triggered big price moves to the upside.
Moral of the story: Keep Your Hopium Up & Stack Those Sats (with profit motives)
Let’s take a look👇
This should give you an idea about Bitcoin’s growth potential 🌑🚀
Coinbase’s $2.9 Billion Shopping Splurge💰
Coinbase has been around for quite some time now. But it seems the top-tier cryptocurrency exchange doesn’t want to keep operating only as a cryptocurrency exchange anymore.
It launched Base, an Ethereum Layer 2 blockchain, in August 2023. Fast forward 2 years, Coinbase stepped forward and made history with the largest ever acquisition deal that the crypto ecosystem has ever witnessed.
Coinbase’s $2.9 billion acquisition of top-ranked crypto-derivatives exchange Deribit reveals a great deal about its roadmap ahead. Here’s how:
- Deribit is the world’s largest crypto options trading platform. Last year, it clocked $1 trillion in trading volume, attracting funds primarily from institutions and advanced derivatives traders.
- Coinbase already offers derivatives trading to its users (since 2022 after acquiring FairX). With the latest acquisition of Deribit, Coinbase will leverage the platform’s solid user base and infrastructure to “become a one-stop shop for all things derivatives (futures, perpetual futures, options)”. It already has a strong grip on the spot trading segment.
- Deribit’s strong international footprint will help Coinbase expand its platform’s offerings to a larger global user base, accelerating its international growth strategy. It’s clear. Coinbase is cementing its throne as the king of crypto trading and investing.
Moving on…
Let’s look at some other stories that are boosting the prospects of a glowing future for crypto.
Bitcoin Climbing Up the Mainstream Finance Ladder With Strategic Reserves 😍
Bitcoin’s made some more headway in getting integrated into mainstream finance. Two states in the US emerged front runners in the strategic Bitcoin reserve game – New Hampshire and Arizona.
New Hampshire took the lead in passing the legislation that would allow the state government to invest a portion of treasury funds in Bitcoin, cryptocurrencies and precious metals like gold and silver.
The state of Arizona followed soon after, with Governor Katie Hobbs signing a law to assume custody of “abandoned digital assets” into a “Bitcoin and Digital Assets Reserve Fund.”
“Diem Done”, Now Let’s Stablecoin, says Meta😒
In 2019, Meta (originally Facebook) gave up on its pet crypto project, Diem, facing strong criticism, and opposition from lawmakers. But it seems the Mark Zuckerberg-led billion-dollar tech giant is adamant to be a part of the cryptosphere.
As per a recent coverage, Meta is in talks with a few crypto firms (read stablecoin issuers) to integrate stablecoins as a means of managing in-app payments. The social media conglomerate even hired a Vice President of Product to help spearhead the initiative and make it see the daylight of reality after discussions with appropriate partners and stakeholders.
Stablecoins stood out as the top choice for Meta owing to their robustness in fulfilling payments faster minus the fat fees involved in fiat payment mechanisms.
Arbitrum’s Going Institutional💼
Every blockchain (Layer 1s and Layer 2s) in the cryptosphere wants to align with institutional interests and requirements. Including Arbitrum.
The Arbitrum Foundation is aggressively positioning itself to play the RWA (Real-World Asset) game well. As a part of its Stable Treasury Endowment Program (STEP) program, Arbitrum DAO has voted to commit 35 million ARB tokens (around $11.6 million at current spot prices) to tokenized US Treasuries. The institutional issuers involved are Franklin Templeton, Spiko and WisdomTree.
Through a voting process that ended up with 89% voting for the move, 35% of the total sum has been allocated to Franklin Templeton’s FOBXX (tokenized as BENJI), 35% to Spiko’s USTBL, and 30% to WisdomTree’s WTGXX.
TRON Leveled Up its Efficiency “As A Blockchain”⛓️
Amidst increasing institutional favoritism, and RWA hype building, TRON devs have been on the grind for something which matters the most for a blockchain – operating efficiency. The Justin Sun founded Layer 1 decentralized ledger quietly hit 99.7% block production efficiency, and also replaced 68% of its Super Representatives since 2020. Now, that’s a serious power move.
Long story short – they say that they make hay while the sun shines. The sun is shining bright in crypto land right now. So, step out and make the best of it.
That’s all for now! See you in the next one amigos 👋
