Из жизни альткоинов

A key figure in the cryptocurrency sector is out on a mission to push for a bipartisan crypto policy that would redefine the regulations governing digital assets. Cardano founder Charles Hoskinson will talk with Senator John Fetterman and other Democratic senators to lobby the crafting and establishment of policies that match the circumstances surrounding cryptocurrencies.

Crypto A Bipartisan Issue

The Cardano founder explained that cryptocurrency can become a bipartisan issue by engaging Democrat senators next year.

“Crypto isn’t a republican issue. It’s an American and global issue. Only by bringing everyone together can we get to the next level,” Hoskinson said in a post.

The crypto founder’s approach is to encourage lawmakers from both the Republicans and the Democrats to pause fighting each other, saying that both camps should collaborate and examine thoroughly what crypto can do for the country.

When people ask how we make crypto a bipartisan issue, these are the Democrats we need to talk to next year. I’ll meet with Senator Fetterman’s people and those like him. Many in leadership positions felt that Warren and Biden had gotten crypto wrong, and now is the time to bring… https://t.co/ru9u8f5879

— Charles Hoskinson (@IOHK_Charles) December 22, 2024

Talk With Senator Fetterman

Hoskinson said that one of the Democrat senators he plans to talk to for the bipartisan crypto policy is senator John Fetterman of Pennsylvania.

“I’ll meet with Senator Fetterman’s people and those like him,” Hoskinson said on his X post.

Fetterman has been in the headlines after giving his insights on why Donald Trump won the recent US election.

In an interview, the Democratic lawmaker believes that Trump emerged triumphant in the last election because he was seen as a protector of the American way of life, adding, “Trump is not a fascist like Kamala Harris claimed.”

“A lot of Democrats, especially in my state that I know and I happen to love people that [voted] for Trump and they are not fascists,” Fetterman said.

He argued that Americans decided to go for the candidate whom they perceived was going to protect and project their version of the American way of life.

Hoskinson noted that the senator is the kind of leader that cryptocurrency needs, leaders who are willing to challenge party lines and think differently.

The Cardano founder argued that cryptocurrency is a victim of political crossfire from the hard stance of the Biden administration and some US policymakers like Elizabeth Warren against the crypto sector.

Crypto Users Bill Of Rights

Hoskinson is also advocating a “Bill of Rights” for crypto users, a proposal he plans to push for.

He explained that the suggested “Bill of Rights” would focus on consumer protection, fair taxation, and clear asset classification.

Furthermore, the crypto founder initiated a campaign that he dubbed “Operation Baseline,” saying that the campaign aims to identify inefficiencies in the cryptocurrency market in the country and craft legislation that will address these inefficiencies.

Featured image from DALL-E, chart from TradingView

On-chain data shows the XRP blockchain has witnessed sharp wallet growth recently and has outpaced giant networks like Bitcoin and Ethereum.

XRP Has Been Gaining Rapid Adoption Recently

According to data from the on-chain analytics firm Santiment, the top cryptocurrencies have witnessed significant growth in Total Amount of Holders over the last couple of years.

The “Total Amount of Holders” here refers to an indicator that, as its name already suggests, keeps track of the total number of non-zero balance addresses that are present on a given network.

When the value of this metric rises, it can suggest new investors are joining the blockchain and/or old ones who had sold earlier are buying back. The trend can also arise when existing users create multiple addresses for a purpose like privacy.

In general, all three of these are at play to a degree at once whenever the Total Amount of Holders goes up, so some net adoption of the cryptocurrency could be assumed to be taking place.

On the other hand, the indicator going down implies some of the investors have decided to exit from the asset, which is why they are clearing out their addresses.

Now, here is a chart that shows the trend in the Total Amount of Holders for the top four cryptocurrencies by market cap: Bitcoin, Ethereum, Tether, and XRP.

As is visible in the above graph, the Total Amount of Holders has seen a sharp increase for all four of these assets over the last couple of years. This naturally suggests that the cryptocurrency sector has seen a high influx of users.

While Bitcoin, Ethereum, and Tether have witnessed a more or less consistent uptrend in this period, XRP has shown divergence recently as the indicator has skyrocketed for it.

From the chart, it’s visible that the Total Amount of Holders started its breakaway for the coin on October 18th. Interestingly, the asset’s price didn’t begin to rally until the middle of November, so it would seem that it’s this rapid adoption that helped build up a solid ground for the cryptocurrency to run on.

In terms of the long-term trend, USDT has been the asset that has seen the most adoption, with its Total Amount of Holders rising by around 66% during the past two years. Ethereum has been second at 47% and XRP third at 28%. Bitcoin has only been marginally behind with a 27% increase.

While XRP has held its own in terms of adoption rate, the network is still the smallest among these giants with its number of investors standing at 5.75 million right now.

XRP Price

XRP has observed a slowdown alongside the rest of the cryptocurrency sector as its price is still trading around $2.17.

While Ethereum (ETH) has once again failed to break through the stubborn $4,000 resistance level, BlackRock’s iShares Ethereum Trust ETF has quietly accumulated over one million ETH. This milestone reflects strong institutional demand for Ethereum, even as its price performance in 2024 remains lackluster.

Institutional Interest In Ethereum On The Rise

Year-to-date (YTD), Ethereum – the second-largest cryptocurrency by market cap – has risen by 43%, climbing from approximately $2,280 on January 1 to $3,283 at the time of writing. While this is notable, ETH’s performance has been overshadowed by other cryptocurrencies like XRP, Solana (SOL), and SUI, which have posted significantly higher gains in the same period.

However, Ethereum holds a key advantage over most altcoins – direct access to institutional investors through regulated ETFs, akin to Bitcoin’s position in the market. In a recent post on X, crypto entrepreneur Dan Gambardello highlighted that BlackRock’s Ethereum ETF has now surpassed one million ETH in holdings.

Gambardello noted that ETH’s consolidation below its all-time high (ATH), combined with growing institutional interest, sets the stage for a potential altcoin season “unlike any we’ve ever seen.” Recent ETH ETF inflow data appears to support this outlook.

According to data from SoSoValue, US spot ETH ETFs have had four continuous weeks of net inflows, attracting more than $2 billion in capital. The total net assets held across all US spot ETH ETFs stand at $12.15 billion, equivalent to almost 3% of Ethereum’s total market cap.

Crypto analysts remain optimistic that Ethereum, the leading smart-contract platform, is on track to reach a new ATH. For instance, CryptosRus pointed out that historically, Ethereum has demonstrated bullish price action during the first four months of the next year, following US presidential elections.

The chart below shows that after the 2016 US election, ETH rallied significantly during the first quarter of 2017. A similar pattern was observed in 2021 following the 2020 election, with Ethereum recording four consecutive weeks of price increases.

From a technical perspective, crypto analyst @CryptoPoseidonn shared an 8-hour ETH chart, suggesting that ETH may bottom around the 200-day exponential moving average (EMA), marked in green. The analyst stated:

The first pullback since the last significant upside move, and fear is at its peak. I believe this is where we print a higher low. Dips like these are opportunities to increase your spot exposure.

Is The Market Correction Nearing Its End?

The total crypto market cap has dropped from $3.9 trillion on December 16 to $3.4 trillion at the time of writing – a $500 billion loss in a week. Data from Coinglass reveals that over $289 million worth of liquidations occurred in the past 24 hours alone.

Despite this downturn, seasoned crypto analyst Pentoshi suggested on the 3-day chart that the crash could serve as a retest of the previous crypto market cap ATH recorded in November 2022. If so, this level might act as a base for the next upward rally.

However, not all analysts are bullish in the short term. Renowned crypto entrepreneur Arthur Hayes recently warned of a potential market downturn around Donald Trump’s inauguration in January. At press time, ETH trades at $3,283, up 1.2% in the past 24 hours.

Автор книги «Богатый папа, бедный папа» Роберт Кийосаки (Robert Kiyosaki) снова назвал биткоин средством защиты от экономической неопределенности и пообещал глобальные экономические потрясения в Европе, Китае и США.

Hyperliquid (HYPE), a decentralized perpetual exchange (DEX) operating on its own Layer 1 blockchain, is currently grappling with significant security concerns after observing abnormal trading activities linked to North Korean hacker groups. Several addresses marked as North Korean hacker have been trading on Hyperliquid, with a total loss of more than $700,000, as first highlighted by @tayvano_, a crypto threat tracker known for his expertise in identifying risks related to North Korean cyber activities.

According to @tayvano_, the nature of these transactions suggests that they may be tests of Hyperliquid’s security systems rather than mere financial activity. He expressed his concerns through a post on X. “DPRK’s trading career is…uh….going….. tbh if I was the dude managing Hyperliquid’s 4 validators (or those fucking ghetto ass binaries on gh) I would be shitting my pants right now. Hyperliquid dudes don’t seem worried at all though so I’m sure its fine. […] DPRK doesn’t trade. DPRK tests,” he explained.

Further underscoring the urgency of the situation, @tayvano_ followed up with a strong statement about the necessity for immediate action by Hyperliquid to enhance its defenses. “My offer from 2 weeks ago still stands Hyperliquid. I’m still happy to do it async or via a call. I can even give you one of my super nice happy colleagues if you don’t like me. But a massive amount of harm will come to people if you don’t harden your ass asap,” he warned.

Hyperliquid Faces Some Serious Risks

Prithvir Jhaveri, founder and CEO of Loch, a personalized crypto portfolio analytics and intelligence platform, provided an assessment of the challenges which Hyperliquid is facing via X. Jhaveri detailed the operational security risks, highlighting the exposure due to the platform’s reliance on a minimal number of validators.

“Wallet addresses well-known to be from the North Korean hacker group Lazarus have been testing Hyperliquid. Typically, these addresses perform tests with live funds before coordinating a hack. Their preferred method of approach is phishing. HL has only 4 validators, all running the same code,” Jhaveri reported.

He also elaborated on the regulatory challenges that Hyperliquid might face. He discussed the potential for violations of US Office of Foreign Assets Control (OFAC) sanctions and Securities and Exchange Commission (SEC) regulations due to the platform’s interaction with entities from a sanctioned country and its operation as an unregistered broker, respectively.

They’re operating financial software that is being used by an OFAC-sanctioned country (DPRK). They can argue that their software is open source and non-custodial, but we’ll have to wait and watch. Moving from 4 validators to 16 could help their case,” he explained about OFAC risks.

About the SEC risks, he added: “The SEC could go after HL for operating as an unregistered broker. The good thing for HL is that the next administration’s SEC and Congress are positioned to be pro-crypto and freedom. The issue, however, is that the sponsors for this crypto lobby are directly competitive to HL. HL didn’t take any VC funding. They’re up against the big money that is economically incentivized to protect the interests of the current CEXs (Coinbase and Kraken) and L1s (Ethereum and Solana).”

The concentration of market-making activities within Hyperliquid’s own liquidity provider (HLP) is another concern Jhaveri raised, pointing out the risks associated with a centralized approach to liquidity. He warned that any significant exploit could lead to substantial financial loss for customers: “The HyperLiquid Liquidity Provider (HLP) is by far the largest MM by volume […] One bug or exploit and customer funds could vanish quickly.”

In conclusion, Jhaveri summarized the strategic position of Hyperliquid amid these challenges. “The HL team has built an incredible product. Trading perps on Hyperliquid is unparalleled in UX. However, the risks they face are not nothing. If they can overcome these, Valhalla is not far away […], but I’m struggling to see the risk-adjusted upside in bidding right now.” he concluded.

At press time, HYPE traded at $28.

Соучредитель и генеральный директор компании Blockstream заявил, что достижения в области квантовых вычислений окажут на блокчейн Биткоина не тот эффект, который принято ожидать. Они сделают сеть еще сильнее, считает криптограф.

On-chain data shows HODLing behavior on the Litecoin network has remained strong recently despite the plunge that LTC’s value has observed.

Litecoin HODLers Currently Control The Majority Of Supply

In a new post on X, Litecoin’s official handle talks about how the asset supply is distributed between its different cohorts right now. The investors have been divided into the groups in question based on holding time.

There are three such cohorts relevant here: Traders, Cruisers, and HODLers. The first of these, the Traders, refers to the investors who bought their coins within the past month. This cohort includes the new investors and short-term traders of the market, so the supply held by them is constantly in motion.

Holders that make it past the one-month cutoff are put into the Cruisers group. This cohort represents the side of the sector that has the potential to evolve into a resolute wall.

Investors that hold past the one-year mark without moving their coins even once can be assumed to have lived up to this potential and are put in the HODLers category.

Below is the chart from the market intelligence platform IntoTheBlock shared by the Litecoin X account that shows how the supply held by each of these three groups has changed over the course of the network’s history:

As displayed in the graph, the supply held by Litecoin Traders has observed an increase recently, which suggests the older cohorts have been breaking their dormancy.

It’s also visible, however, that the Cruisers have witnessed their supply moving sideways at the same time, implying the coins on the move have been older than one year. That is, the HODLers have potentially been participating in a selloff.

These investors generally tend to be quite resolute, but it’s not unusual to see them taking profits during bull runs. The decline in their supply has also not been anything too significant so far. More importantly, the latest crash in the Litecoin price hasn’t caused these investors to panic and sell.

After the decrease, the HODLers carry 40.5 million LTC in their wallets, equivalent to almost 54% of the total LTC supply. A lot of this supply is also actually much older than one year, as the cryptocurrency’s handle has revealed the average holding time on the network is 2.4 years per token.

Something to note is that while selling registers immediately in the supply charts of the older cohorts, buying isn’t the same. Whenever the Cruisers or HODLers see an increase in their supply, it doesn’t mean that accumulation is happening in the present, but rather that it occurred one month or one year ago.

This is naturally due to the fact that coins have to age up sufficiently first in order to be counted among these cohorts. In contrast, transactions instantly reset back their age to zero, which is why selling is immediate.

LTC Price

At the time of writing, Litecoin is trading around $102, down 15% over the last week.

The latest report from CoinShares, a leading digital asset investment firm, reveals that last week’s performance for crypto asset investment products was mixed.

According to the report, the market experienced inflows totaling $308 million, marking a continuation of positive trends. However, there was also a series of outflows that amounted to roughly $1 billion.

Deciphering The Fund Flows

The data shared by CoinShares highlighted substantial outflows, with December 19 witnessing a single-day outflow of $576 million. The final two days of the week contributed an additional $1 billion in total outflows, raising concerns among market participants about sustained investor sentiment.

James Butterfill, Head of Research at CoinShares, explained that these outflows “coincided with a price correction” and “followed the hawkish outlook” presented by the Federal Reserve during its Federal Open Market Committee (FOMC) meeting.

According to Butterfill, the market reacted to the revised “dot plot,” which suggested potential future interest rate hikes. Despite these notable outflows, the cumulative impact on total assets under management (AuM) was relatively minor, equating to just 0.37% of total AuM.

Butterfill further noted that this event ranks as the 13th largest single-day outflow recorded, with the most significant outflow occurring in mid-2022 after a similar FOMC announcement.

While the headline numbers suggest market caution, Bitcoin (BTC) showed resilience, managing net inflows of $375 million despite intra-week volatility. Notably, short Bitcoin products saw minimal activity, indicating continued investor confidence in Bitcoin’s long-term potential.

Altcoins and Multi-Asset Investment Trends

The report further revealed the contrasting performances between various altcoins and multi-asset investment products. Particularly, outflows from multi-asset funds were quite significant hitting $121 million, as investors took a more selective, asset-specific approach.

Such behavior indicates investors are becoming pickier and targeting assets with firmer fundamentals and the potential to grow. Ethereum (ETH) remained a prominent performer, securing $51 million in inflows over the week.

These inflows reaffirm Ethereum’s position as a key player in the digital asset space, driven by sustained institutional interest and optimism surrounding its technological upgrades.

However, not all major altcoins shared this positive momentum. Butterfill reveals that Solana (SOL) experienced $8.7 million in outflows, contrasting sharply with Ethereum’s positive movement.

It is worth noting that the discrepancy suggests a divergence in investor sentiment between these two major assets, potentially influenced by ongoing ecosystem developments and perceived risks.

In contrast, following ETH, XRP emerged as one of the standout altcoin performers, recording $8.8 million in inflows. Similarly, Horizen (ZEN) and Polkadot (DOT) reported inflows of $4.8 million and $1.9 million, respectively, highlighting a preference for specific altcoins despite broader market volatility.

These inflows suggest continued investor confidence in the long-term potential of select blockchain ecosystems, even amid short-term corrections.

Featured image created with DALL-E, Chart from TradingView

Bitcoin has endured days of underwhelming price action, retreating from its all-time high of $108,364 to a local low of $92,100. Despite this sharp pullback, the price structure remains bullish, fueling optimism among analysts and traders who believe Bitcoin’s rally could resume at any moment. Market sentiment appears cautious but hopeful, with many eyeing key support and resistance levels for confirmation of the next major move.

CryptoQuant analyst Axel Adler recently shared intriguing data on X, shedding light on Bitcoin’s current trading dynamics. According to Adler, the average daily trading volume on centralized exchanges (CEX) is currently at $31 billion—significantly lower than the $40 billion record highs observed in March and December of this year. This decline in trading activity suggests that market participants are waiting for clearer signals before committing to large positions.

The reduced trading volume highlights an environment of consolidation and potential accumulation as BTC continues to hold above critical support levels. With bullish sentiment still intact and on-chain metrics pointing to strong fundamentals, the coming days could provide pivotal insights into Bitcoin’s trajectory. Investors are now closely monitoring the price action for signs of renewed momentum as the market braces for what could be the next phase of Bitcoin’s bull run.

Metrics Suggest An Ongoing Rally

Bitcoin has been undergoing a period of consolidation below its all-time high, and many investors have felt a sense of uncertainty, wondering if the cycle’s top has already arrived. This fear has been amplified by the recent price pullback, but key metrics suggest that there is still plenty of room for growth and demand in the market. The current price action might look bearish to some, but the underlying data points to a continued bullish outlook in the near term.

Top analyst Axel Adler recently shared insightful data on X, revealing that the average daily trading volume on centralized exchanges (CEX) currently stands at $31 billion, which is $9 billion lower than the record highs observed in March and December of this year. 

Despite this decline in volume, it suggests that the market is in a consolidation phase rather than a full-blown downturn. Additionally, ETF trading volumes remain strong, averaging $4.4 billion per day, with a peak of $6.7 billion reached in March. Combined, these metrics total an average of $35.5 billion in daily trading volume, reflecting substantial activity in the market.

Now, consider the scenario where traditional finance (TradFi) never entered the space. In such a scenario, the market would have likely continued as it has in the past—driven by futures and spot market activity during cycle peaks.

 The involvement of TradFi has undoubtedly added liquidity, but it hasn’t fundamentally altered the market’s natural dynamics. The fact that Bitcoin continues to experience healthy trading volume suggests that the bull market may not be over just yet.

Bitcoin Holding Strong Above $95K

Bitcoin is currently holding above the crucial $95,000 level, which is a key price point for determining the short-term direction. This level has acted as a significant support zone, and if BTC can maintain its position above $95K in the coming days, a push towards the $100K mark would be expected. This potential upward move would signal that the bulls are regaining control and are preparing to challenge previous all-time highs.

However, if BTC fails to hold above $95K and loses this level of support, it would likely send the price to test lower demand zones. In this scenario, the next significant support level lies around $92,000, which could act as a critical test for the market’s strength. A breach below this mark would increase the likelihood of a deeper correction, with BTC possibly moving toward even lower levels. 

The coming days will be crucial for BTC, as maintaining support above $95K is vital for sustaining the bullish momentum and avoiding further downside pressure. The market remains in a delicate balance, and the next move could determine whether Bitcoin continues its ascent or faces a more significant pullback.

Featured image from Dall-E, chart from TradingView