Can Cardano Whales Stop ADA Price From Crashing Hard After Dumping 1 Billion ADA In A Week?

According to data shared by cryptocurrency analyst Ali Martinez, Cardano whales have sold or redistributed approximately 1.02 billion ADA (over $265 million), the native currency of Cardano, in the last week.

As per the chart presented by the expert, this unusual movement in the Cardano market could be a clear sign of doubt among major ADA investors and holders. ADA has fallen by 92% from its peak price of $3.10 in September 2021 to $0.2479. However, while some view it as a negative signal for Cardano’s future, others argue that it’s an everyday occurrence in such a volatile market.

Industry Experts Weigh In on the Sales

As reported by ZyCrypto, some crypto industry experts have pointed out that it’s not uncommon to see such sales after a significant price increase. Whales often take profits like this following the rise experienced earlier this year, alongside Bitcoin.

Nevertheless, other analysts suggest that it could also be a strategy by whales to redistribute their holdings and prevent excessive centralization within the Cardano network, which could harm confidence.

Currently, the total number of Cardano wallets is 4,275,363, with approximately 30.76% engaged in staking, according to data from Cardano Blockchain Insights. Additionally, over 1,000 new wallets are being created daily, demonstrating that Charles Hoskinson’s project remains attractive to investors despite the price decline.

Therefore, whatever the reason may be, the fact remains that these massive sales by whales often have a short-term negative impact on the price, as retail investors tend to panic and sell their coins. However, in the long term, it’s beneficial for the project’s growth and increased decentralization.

What Does the Future Hold for Cardano?

Beyond the massive whale sales, the future of Cardano continues to appear promising, at least according to its founder, Charles Hoskinson. He recently stated that the project aims to become “the backbone of a new digital nation, a new society,” with ADA emerging as the “largest cryptocurrency in the world.”

As always, Hoskinson’s words were well-received by Cardano enthusiasts. However, his claims that ADA could surpass Bitcoin and Ethereum in the future didn’t have the same positive impact on the price, as it continues to approach the 2021 lows when it traded at $0.018.

ADA price on monthly timeframes. Source: TradingView

So, although the whale movement may generate some momentary uncertainty, most experts agree that Cardano is firmly positioned for sustainable long-term growth. But will it ever reach or surpass Bitcoin in market capitalization?… It’s tough to believe, at least for now.

Ripple’s XRP Sees Super Bullish Whale Activity Amid Milestone Highs In Transaction Volume

XRP, Ripple’s native cryptocurrency, saw a significant surge in activity and utility in August, according to recent data from Santiment, a blockchain analytics platform. This development comes amid Ripple’s legal battle with the United States Securities and Exchange Commission (SEC).

According to Santiment, the on-chain transaction volume on the XRP network reached an all-time high of 4.8 billion tokens, with circulation also hitting a record of 2.03 billion.

Positive metrics are attributed to Ripple’s victory against the SEC

Positive metrics can be largely attributed to the enthusiasm of major XRP holders, commonly known as “whales,” who have increased their holdings over the past few months in anticipation of a Ripple victory against the SEC to demonstrate that XRP should not be considered a security.

As of July 20, 2023, 221 addresses held between 10 million and 1,000 million XRP, totalling 16.13 billion XRP, valued at approximately $8.71 billion at $0.56 per coin.

Additionally, Santiment reported a significant increase in development activity surrounding XRP, indicating strong adoption by developers.

As recently reported by ZyCrypto, Ripple’s Chief Legal Officer, Stuart Alderoty, has asserted that the SEC is facing legal difficulties not only in the Ripple case but also in various other lawsuits against them, including the recent ruling that favoured Grayscale in their pursuit of a spot Bitcoin ETF.

“The SEC is getting battered in the court. In our case it’s been proven wrong, been called hypocritical, lacking faithful allegiance to the law, fined for discovery abuses and now another distinguished court saying it’s ‘arbitrary and capricious’ – that’s a really big deal.”

XRP is on the cusp of achieving widespread adoption

While XRP’s price has slightly recovered above $0.52, it still lags far behind its all-time high of $3.84 in early 2018 during the Bitcoin rally.

It is no secret that XRP’s prolonged bear market is largely, if not entirely, due to the SEC’s lawsuit against Ripple initiated in December 2020.

However, in July, Ripple scored a partial victory when Judge Analisa Torres ruled that XRP is not a security under U.S. securities laws. This has greatly assisted the centralized payment-focused coin in resuming its glory days when it competed closely with Tether’s stablecoin, USDT.

So, despite the regulatory cloud looming over the SEC case, XRP is demonstrating a genuine increase in its utility, driven by heightened interest from major whales. Will XRP once again lead the top 5 cryptocurrencies by market capitalization?

Trillions in Shiba Inu Tokens Leave Crypto Exchanges — SHIB Price Reacts

Last week, Shiba Inu (SHIB), the second largest meme coin by market capitalization, experienced a significant extraction of over 2 trillion SHIB tokens, sparking controversy within the crypto community regarding the token holders and their intentions.

According to on-chain data published on Twitter (X) by the cryptocurrency analyst Ali, the number of SHIB tokens deposited on exchanges decreased from around 82 trillion to the current value of 80.77 trillion on August 22nd.

This substantial token extraction was accompanied by a 10% price surge over the past week, with the price rising from a low of $0.00000757 to a value of $0.00000835.

Why are investors withdrawing their tokens from exchanges?

As recently reported by ZyCrypto, the Shiba Inu development team is working to elevate the project’s status from being a mere meme coin without utility to becoming an integrated ecosystem featuring decentralized applications that contribute real value to the crypto landscape.

It remains unclear who is behind these extractions or why they decided to withdraw such a significant number of tokens from exchanges. Speculations range from investors possibly waiting for a token rebound when the crypto market recovers while others continue to predict the decline of the meme coin.

What is certain is that the withdrawal occurred one week after the launch of Shibarium, a layer-2 network developed by the Shiba Inu community on the Ethereum blockchain, designed to address scalability issues for the token.

Shibarium Bounces Back With Improved Scalability

The loss or locking up of more than 1.7 million Ethereum during the launch presented a considerable scalability issue, leading to the closure of Shibarium until August 28th. It was subsequently reopened with assistance from Polygon, which provided resources and direct support to resolve the problem and ensure the success of the relaunch.

According to the developers, the problem stemmed from excessive server load on the network, resulting in operational limits being exceeded.

Fund withdrawals from Shibarium to Ethereum are now available after two weeks of work. Transaction processing times vary depending on the token, ranging from 4 to 45 hours. However, withdrawals of BONE, the native currency of the network, can take up to 7 days to process.

As of the time of writing, the price of SHIB remains at $0.00000815, having seen a 1% increase over the last 24 hours and nearly 3% over the past 7 days, as shown by CoinGecko’s data.

Ripple’s XRP Whales Are Soaring Fast As Accumulation Accelerates — Is A Monster Bull Move Nigh?

The price of XRP, Ripple’s native cryptocurrency, is beginning to exhibit signs of recovery, per recent data from Santiment, a blockchain analysis platform. This data demonstrates a growing interest from whales who are holding XRP.

According to Santiment, the XRP price increased by 4% over the weekend, reaching $0.56. Additionally, the platform noted that there are currently 221 addresses holding between 10 million and 1 billion XRP. In total, these addresses hold 16.13 billion tokens, which is equivalent to $8.71 billion at the price.

XRP Price Rebounds Thanks to Enthusiastic Whales

The increased activity of these major XRP whales seems to be aiding the recent price recuperation after a prolonged bearish period due to its ongoing battle with the SEC. Furthermore, as recently reported by ZyCrypto, XRP has not returned to its all-time high in the past 5 years, suggesting that the whales might be anticipating the next bullish rally.

Another factor potentially contributing to XRP’s price recovery could be Ripple’s recent decision to return 80% of the one billion XRP tokens it had released in August to an escrow or custody account. This demonstrates a more cautious approach towards the supply and stability of the XRP ecosystem.

Moreover, investor interest in XRP has surged by 127% this year, as indicated by the CoinShares Digital Asset Fund Flows report. This represents a 12% increase in assets under management related to cryptocurrencies. Ripple’s recent victory against the SEC might partially influence investors’ decisions.

Ripple’s Partial Victory in SEC Lawsuit

Ripple recently achieved its most significant partial victory in the SEC case. This followed a judicial ruling by Judge Analisa Torres of the Southern District of New York, stating that XRP is not a security, distinguishing it from cryptocurrencies that promise returns through third-party management.

Upon the judge’s decision on July 13, XRP experienced an unexpected rebound of nearly 100%, surging from $0.4698 to a peak of $0.9380. However, it failed to sustain its bullish momentum in the subsequent days. It currently trades at $0.5208 as the SEC seeks to challenge Judge Torres’ ruling.

Hence, while the bullish trend still appears somewhat fragile, the major whales remain hopeful that Ripple’s legal battle against the SEC coming to an end will restore XRP’s days of glory. Despite ongoing regulatory scrutiny, it continues to maintain its position as the fifth cryptocurrency with the highest market capitalization.

SHIB’s Potential to Surge: Insights from Analyst Michaël van de Poppe

On August 15th, cryptocurrency trader and analyst Michaël van de Poppe conducted a daily price analysis for Shiba Inu (SHIB), a meme-inspired cryptocurrency. He looked at the key price levels it needs to hold in order to sustain its bullish momentum in the coming months.

According to van de Poppe, as long as SHIB manages to stay above the critical support of around $0.00000941, there’s a high likelihood that it will continue to rise to $0.00000287.

If SHIB achieves van de Poppe’s bullish prediction, it would mark a significant increase of 29.98% from current levels for the second-largest meme coin in terms of market capitalization.

SHIB’s Support and Resistance on Daily Timeframes

Since June 10th, the price of SHIB has steadily increased after dropping to a low of $0.00000543. On daily timeframes, it’s noticeable that the meme coin has formed a strong support zone within the range of $0.00000749 and $0.00000800.

However, on August 13th, SHIB’s price fell below the $0.000001080 level, which is closest to its 55-period moving average (MA) and the nearest resistance it needs to break to sustain its bullish momentum.

At the time of writing, SHIB is priced at $0.000008574, experiencing a 10.8% setback in the past 24 hours due to the ongoing price decline in Bitcoin (BTC).

Shiba Inu’s Crypto Market Leadership

Currently, SHIB holds the 15th position among cryptocurrencies, with the highest market capitalization, having a market cap of $5.05 billion, according to CoinMarketCap. It is outranked in the meme coin category by the larger and pioneering Dogecoin (DOGE), which boasts a market capitalization of approximately $9.3 billion, securing the 9th spot in the top cryptocurrencies list.

Hence, a 29.98% surge would propel SHIB into the top 10 cryptocurrencies and solidify its standing as one of the leading meme coins after DOGE. Additionally, as reported by ZyCrypto, SHIB’s developers have been working diligently to expand the project’s reach and shed its reputation as a simple or useless meme coin.

Ultimately, considering SHIB’s massive following and community, achieving van de Poppe’s projected target might not be as far-fetched as it seems. Who knows, it could even ignite more enthusiasm for meme coins that capture the attention of non-crypto individuals, especially after the price surge seen in PEPE, a coin based on the Pepe the Frog meme.

US SEC Slammed for Misusing XRP Reports in Ripple Lawsuit

Ripple CEO Brad Garlinghouse recently criticized the U.S. Securities and Exchange Commission (SEC) for misinterpreting the company’s quarterly XRP market reports.

Garlinghouse pointed out that the SEC used these reports against Ripple in the lawsuit, despite the fact that the company was never required to publish them. Nevertheless, they started doing so to provide transparency about their XRP holdings.

“We began these reports voluntarily to provide updates on our XRP holdings. Unfortunately, they were used against us in the SEC lawsuit. However, we remain committed to transparency, though I expect they will look different going forward.”

Garlinghouse’s statements were supported by Ripple’s attorney, John E Deaton, who explained on Twitter that the reports were published for transparency and not out of obligation, as Ripple, being a private company, was not required to share them.

“It is absolutely true that the SEC used the transparency of these reports against Ripple and its two executives. As a private company, Ripple was under no obligation to share this info. Other companies not only didn’t share token sales, but intentionally disguised those transactions.”

The SEC used Ripple’s report against them

The SEC attempted to use the information from Ripple’s XRP report against the company during the lawsuit, making allegations of fraud and market manipulation. This is despite the fact that the transparency of the reports was precisely intended to prove the opposite.

In the latest report for the second quarter of 2023, Ripple announced that it would change the format of the reports to focus on clarifying misunderstandings and providing transparency about its XRP holdings.

For example, Ripple highlighted that most of the monthly releases of XRP from the escrow account will be redeposited to be accessed in the future rather than being sold on the open market. However, Garlinghouse clarified that they may change the focus of the reports due to the SEC’s recent actions.

The SEC vs. Ripple case is still ongoing

On July 13, Ripple secured one of its major victories in the case against the SEC, as Judge Analisa Torres ruled in favor of Ripple, determining that XRP cannot be considered an unregistered security. This led to major exchanges such as Coinbase, Bitstamp, and Kraken relisting XRP for U.S. users.

XRP had been delisted from many platforms due to the SEC’s lawsuit filed in December 2020 and its intense regulatory scrutiny against cryptocurrency companies and exchanges, negatively impacting its price since then.

However, following Judge Torres’ ruling, the price of XRP experienced an impressive increase of 99.84%, going from approximately $0.47 to a peak of $0.93 in a day. Currently, the price of XRP stands at $0.66, representing a 41% increase since Judge Torres’ ruling.

Crucial decision by Judge Rakoff: Terraform Labs case moves forward despite Ripple ruling

On July 31, federal judge Jed Rakoff denied Terraform Labs’ motion to dismiss the SEC’s lawsuit against their company and founder, Do Kwon. He refused to apply the logic from the recent ruling in favor of Ripple Labs, which determined that Ripple’s XRP sales did not violate federal securities laws because the sales were made to institutional investors and not to the general public.

The judge ruled that, according to the Howey legal test, it doesn’t matter how Terraform Labs initially sold their UST and LUNA cryptocurrencies (whether to wholesale or retail investors, in primary or secondary markets). What matters is whether those sales constituted the offering of securities that should have been properly registered with the SEC under U.S. securities laws.

It’s worth noting that under the Howey test, if a cryptocurrency involves investing money in a common enterprise with the expectation of profits derived from the efforts of others, it is considered a security.

Judge Rakoff rejected Terraform Labs’ arguments against the SEC

The judge dismissed  Terraform Labs’ claim that the SEC needed explicit congressional authorization to regulate stablecoins. He also considered that the SEC provided enough evidence that the company had allegedly fabricated adoption data of their cryptocurrencies to fraudulently promote them.

Rakoff stated that although the cryptocurrency industry holds some global significance, it is still “far from being a ‘part of the U.S. economy’ with ‘substantial economic and political importance’”.

On February 16, the U.S. Securities and Exchange Commission (SEC) sued Terraform Labs and its founder, Do Kwon, for alleged securities fraud. The SEC accused Terraform of selling the stablecoin TerraUSD without properly registering it as a security and misleadingly promoting it to the public.

Additionally, they accused Do Kwon, who is currently out on a $430,000 bond, of allegedly orchestrating a billion-dollar fraud through the sale of TerraClassicUSD (USTC) and its connected cryptocurrency, Terra Luna Classic (LUNC), formerly known as Terra (LUNA) and TerraUSD (UST).

The SEC seeks restitution of illegally obtained investor funds from Terraform Labs and the imposition of civil penalties.

Although Judge Rakoff’s decision might be seen as a significant victory for the SEC in their campaign against the cryptocurrency industry, the lawsuit could still be dismissed on appeal or if a mutual agreement is reached.

Therefore, it is still too early for the thousands or millions of investors who lost their money due to the colossal fall of Terra to claim victory and rest easy. While regulators are assisting in recovering the lost funds, so far that money remains missing, and it is very difficult for it to be fully recovered. The complex legal and financial situation surrounding the collapse of Terra means it could take years to completely resolve it.

Deutsche Bank Enters Digital Asset Custody to Drive Institutional Adoption

Deutsche Bank, one of the world’s leading financial institutions, has submitted an application to the Federal Financial Supervisory Authority of Germany (BaFin), with the aim of obtaining regulatory approval to offer cryptocurrency custody services.

According to Bloomberg’s report, the approval of the custodial license would enable the bank to store and manage digital assets on behalf of its clients, providing a reliable solution for institutional investors seeking a secure way to store their digital assets.

Deutsche Bank: The Ideal Candidate For Cryptocurrency Custody?

Founded on March 10, 1870, in Berlin, Germany, Deutsche Bank was originally established as a bank for financing and foreign trade. However, it has grown to become the largest bank in Germany, managing over 1.476 trillion euros in assets.

Therefore, thanks to its reputation, it could become one of the ideal candidates for custodial services for cryptocurrencies on behalf of institutional investors.

However, like any other institution, it must comply with a series of regulatory requirements before being able to offer custody services related to digital assets.

David Lynne, Head of Commercial Banking at Deutsche Bank, informed Bloomberg that the bank is “expanding” its business into “digital assets and custody” services through the application to BaFin.

On the other hand, Andreas Sack, Product Owner of Digital Assets Custody at DekaBank, a German provider of asset management solutions, stated that “Digital assets are a critical part of the future, a radical new way of representing assets, from currencies to real estate.” This statement came after allying with Metaco, a Swiss provider of digital asset custody and tokenization technology (recently acquired by Ripple), for the custody and management of their digital assets.

German Banks Aim to Secure Digital Assets

This is not the first time a German bank has attempted to enter the digital asset custody space. According to ZyCrypto, since April 2022, Commerzbank, one of the largest traditional banks in the country, has applied for a cryptocurrency custody license from BaFin. However, it has not been approved as of yet.

As of April 2022, over 25 companies in Germany had applied for BaFin’s approval to operate with cryptocurrencies. Out of all of them, only 4 have obtained regulatory approval, with Coinbase Germany, the German subsidiary of the U.S.-based cryptocurrency exchange Coinbase, being a notable example.

Similarly, DZ Bank, Germany’s second-largest bank, applied for a crypto asset custody license in 2022, but it has not been approved by BaFin thus far. This demonstrates the growing interest of traditional German banks in the custody of cryptocurrency assets.

Exposed Security Challenges: Sturdy Finance Hack Raises Concerns for DeFi Protocols

The decentralized finance (DeFi) protocol, Sturdy Finance, lost 442 ETH (approximately $765,000 at the time of this publication) due to a security vulnerability exploited by some hackers.

The blockchain security company, PeckShield, alerted the DeFi protocol on Twitter about fraudulent transactions through which attackers manipulated prices on the platform.

“We are aware of the reported exploit of the Sturdy protocol. All markets have been paused; no additional funds are at risk, and no user actions are required at this time,” affirmed Sturdy Finance.

Sturdy Finance loses $765,000 in ETH

The DeFi platform confirmed that it was a victim of the attack and sent a message to its users, assuring them that the necessary measures have been taken to prevent further funds from being stolen from the protocol.

However, the hacker managed to steal over $765,000 in ETH, which was sent to a cryptocurrency mixer.

According to the security firm BlockSec, the attacker of Sturdy Finance exploited the read-only reentrancy in the protocol’s price balancer to manipulate the price of the BstETH-STABLE pair.

“This technique is commonly used by hackers to withdraw funds from DeFi protocols,” says BlockSec.

It involves taking advantage of the ability to repeatedly call a function in a single transaction before the first function call has been completed. Thanks to this, hackers can withdraw more money than should be possible.

Sturdy Finance hack exposes the vulnerability of DeFi platforms

Attacks on DeFi platforms have increased over time, leading many to consider this ecosystem a paradise for hackers. The theft of $625 million from Ronin Bridge and the $197 million stolen from Euler Finance are just examples of the vulnerability of these platforms.

Due to financial transactions in DeFi occurring on the blockchain without intermediaries, there is an inherent risk. This lack of regulation and decentralization makes decentralized finance platforms vulnerable to attacks.

Despite these challenges, DeFi has continued to evolve and demonstrate impressive growth. However, it is necessary for security also to evolve to create a safer environment for users.

XRP At $10 Envisioned Amid Growing Network Metrics Even As Ripple Aims to Claim ‘Big Win’ in SEC Case

Latest on-chain data shows the Ripple network is expanding as the number of new XRP addresses increases.

According to crypto analyst Ali Martinez, these increases in addresses usually signal a potentially significant price growth.

Network Growth (XRP). Source: Santiment

Is XRP preparing for its next rally?

As reported by ZyCrypto, the surge in new addresses helped drive the price of XRP above the psychological resistance of $0.50, reaching a peak of $0.056 on Tuesday as the XRP Army continue to envison the $10 price point.

Although the increase in addresses could be a bullish signal suggesting the next XRP rally, it’s not a completely reliable indicator.

Investors focus on the outcome of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, alleging that XRP is a Security. Recently, District Judge Annalisa Torres ordered the inclusion of former SEC director William Hinman’s speech in the case documents, where he stated that Ether is not a Security token.

The use of these documents is crucial for Ripple in the case, as it could help the company demonstrate that, like ETH, XRP is not a security token.

Additionally, a victory in the Ripple lawsuit could have significant implications for the price of XRP and the cryptocurrency market as a whole. According to several experts, Ripple and its token are undervalued, considering the company’s reserves exceed four times its market value. Furthermore, Ripple has expressed its desire to go public, generating significant interest from institutional investors.

XRP retreats 7.4%

Today, the price of XRP experienced a 5.4% retreat, according to CoinGecko data, following the recent SEC lawsuit against Binance.US, Binance International, and Binance CEO Changpeng Zhao. The lawsuit alleges that the exchange allowed North American users to use the international platform without regulatory permission to operate an unauthorized security token.

Furthermore, they were accused of using unauthorised user funds, transferring them to other international entities, thus evading federal laws.

However, despite the current decline of XRP, several indicators, such as moving averages, VPVP, and ADX, among others, continue to project a bullish trend on daily timeframes.

Therefore, XRP needs to respect the support zone to maintain its bullish movement above $0.45. If it stays above that zone in the coming days, it could likely target the next resistance at $0.60 in the short term.

Russian Bank Rosbank Pilots Cross-Border Cryptocurrency Transactions with Corporate and Private Clients

The Russian bank Rosbank has become the first biggest bank in the country to launch cross-border cryptocurrency payments, with the help of an intermediary fintech to carry out the transactions.

According to Vedomosti, a representative of Rosbank it was stated that the bank is already conducting tests with corporate and private clients. The new solution allows the purchase of cryptocurrencies abroad using the funds of the importer, which are then transferred to the foreign provider.

Rosbank joins forces with B-crypto to launch new services

The Russian fintech company B-crypto is responsible for providing technical support for cryptocurrency transactions. Therefore, all Russian companies must go through a verification or KYC process that needs to be approved by both Rosbank and B-crypto in order to utilize the new cryptocurrency service.

Once the KYC verifications are approved, the importer and B-crypto sign a contract in which the client agrees to deposit fiat funds into an account at Rosbank to purchase cryptocurrencies. Subsequently, the bank transfers the money to B-crypto, which handles cryptocurrency purchases in friendly countries and transfers them to the foreign provider.

Alexei Voilukov, Vice President of the Russian Banks Association, affirmed that while Rosbank is the first major bank to offer this solution, larger banks still do not provide similar services “due to the lack of cryptocurrency liquidity” required to cater to their larger clients.

And that’s where smaller banks come in to meet the needs of retail customers.

Sanctioned countries embrace cryptocurrencies to evade sanctions

Eduard Davydov, Senior Partner at Emet Law Firm, stated that using cryptocurrencies in cross-border transfers may raise concerns regarding sanctions evasion, as many countries are taking measures to include cryptocurrency transactions in their sanction regimes.

In the long run, using cryptocurrencies for cross-border payments could lead to legal consequences for participating countries attempting to evade sanctions using cryptocurrencies.

Nevertheless, for a country under sanctions, legalities might not be their most pressing issue. Numerous such nations, including Cuba, Venezuela, Iran, Iraq, and Russia, find themselves denied the liberty to trade their primary commodities freely.

Currently, Russia is the most heavily sanctioned country in the world following the invasion of Ukraine, accumulating over 13,263 sanctions, mostly from the US and Switzerland, according to Castellum data.

A New Boom for XRP? Record-Breaking Address Activity Indicates Upturn Ahead to $1 XRP Price

The XRP Network experienced a significant increase in address activity for two consecutive days, marking a historic milestone, as reported by the blockchain analysis platform, Santiment.

The growing activity in addresses suggests the possibility of a rally for XRP, Ripple’s native cryptocurrency, as it has previously experienced a notable increase following a similar rise in address activity.

Increased address activity suggests a potential 45%+ price rise for XRP

XRP’s price has risen by about 15% in the past week, from $0.4434 to $0.5053, which it currently maintains at the time of writing.

The price increase is in line with the increase in network address activity. Therefore, as Santiment suggests, it is possible that the price of XRP could increase by over 40%, similar to what happened in March when address activity saw a similar rise.

Similarly, there appears to be a slight disconnect between XRP and the rest of the crypto market, as XRP’s price is rising while many other coins are not. This could be an indication of a potentially more decisive trend change.

Currently, XRP is in a psychological price zone ($0.50), where bulls and bears are battling to determine the victor. Unless the price of XRP breaks strongly out of this zone, it is challenging to continue with a significant bullish movement.

Currently, several indicators such as moving averages, the squeeze momentum indicator, VPVP, and ADX suggest continuing a bullish movement on daily timeframes, which could lead XRP to reach or even surpass the previous high of $0.6 achieved in late March 2023.

Ripple’s potential legal win may boost XRP’s bullish trend

The spikes in address activity on the XRP network occur at a time when many enthusiasts suggest that Ripple could win the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) regarding the classification of XRP as a security.

Even Ripple’s CEO, Brad Garlinghouse, has given optimistic signals pointing to the case being resolved in a few weeks, which would help boost XRP’s price prospects by eliminating regulatory uncertainties.

Therefore, in the short term and according to several indicators, it is highly likely that XRP will experience a bullish movement. Who knows, it may finally manage to emerge from the abyss created by U.S. regulatory pressure.

Bearish Pattern Suggests Double-Digit Drop in Bitcoin Price

On May 25th, Checkmate, Lead On-chain Analyst at Glassnode, stated that Bitcoin is at a crucial point that could lead to a significant correction, as several indicators suggest.

Checkmate explained to his Twitter followers that to assess the potential correction, it is important to analyze the behaviour of Short-Term Holders, as they are mostly responsible for significant price movements in BTC.

Several metrics indicate a potential correction in Bitcoin’s price

The Glassnode analyst pointed out that one of the most important metrics to consider is the Short-Term Holder Realized Price, which is currently being tested around the $26,500 zone. This level should provide strong psychological support, as losing it could result in a higher drop.

Similarly, Checkmate explained that the STH-SOPR, which indicates the Dominance of Losses of Short-Term Holders, is below 1.0. This means that the losses of Short-Term Holders are mainly generated by local top buyers, which is uncommon and generally creates a bullish reaction driven by the fear of missing out on an upward movement (FOMO).

Regarding the Short-Term Holder Profit/Loss Ratio, the metric has reached a state of balance, indicating a possible healthy short-term market cleansing. However, the analyst warned that losing the current values could generate negative sentiment in the short term.

Bitcoin’s price could be on the brink of a significant correction

Lastly, Checkmate highlighted that the STH Profit/Loss momentum tool, designed to detect rapid changes in market trends, is currently at a neutral level. Nevertheless, if it starts to show deterioration, it could be a clear signal of a deeper correction, as has happened on other occasions.

“We must observe these marginal buyers and sellers. On-chain analysis of Short-Term Holders provides precisely this, a view into the most economically active participants right now.”

It’s important to note that most of the charts the analyst presents use daily timeframes, so it is normal to expect substantial movements of up to $10,000.

Although the indicators provide valuable information to understand the current Bitcoin and cryptocurrency landscape, they are not entirely infallible when it comes to trading crypto. Therefore, closely observing key levels and market reactions and conducting thorough research before investing in these assets is essential.

South Korea Passes Law Requiring Disclosure of Cryptocurrency Holdings by Officials

On May 25, the South Korean National Assembly passed the “Kim Nam Guk Prevention Law,” which requires legislators and high-ranking government officials to disclose their cryptocurrency holdings.

According to News1, the amendments to the National Assembly Law were approved with broad support, ensuring that cryptocurrencies are included in the legislators’ register of private interests.

The new law aims to promote transparency and prevent abuses of authority

This new law aims to promote integrity and transparency in the government by addressing concerns about the potential misuse of cryptocurrencies by lawmakers and public officials.

Furthermore, the Public Officials Ethics Act amendment also mandates high-ranking public officials, including legislators, to register their cryptocurrency assets.

These measures were taken in response to suspicions and controversies surrounding Representative Kim Nam Guk, a member of the Democratic Party, who was accused of owning cryptocurrencies valued at up to 6 billion won (over $4.5 million). This raised concerns about possible conflicts of interest and insider trading activities.

Leaders from different political parties, including the People Power Party and the Democratic Party of Korea, expressed agreement on the need to pass this law during a meeting with the Speaker of the National Assembly.

Therefore, it is expected that with the approval of this law, transparency regarding the cryptocurrency holdings of public officials will become a reality in South Korea, strengthening public trust in institutions while enhancing cryptocurrency regulation.

South Korea continues to make progress in cryptocurrency regulation

In April 2023, the South Korean National Assembly passed the cryptocurrency regulation bill, overcoming the most significant initial obstacle before becoming law.

Hwang Suk-jin, a Special Committee on Digital Assets of the People Power Party member, stated that following the National Assembly’s approval, he expects it to become law in the first half of the year. It only requires approval from the legislative and judicial committees.

The bill requires cryptocurrency service providers to keep users’ funds separate and secure, avoiding mixing them with their own funds. This has been a controversial issue that several countries are including in their regulations following the alleged embezzlement by Sam Bank-Fried at the now-bankrupt exchange, FTX.

Likewise, the bill establishes penalties such as imprisonment and fines up to five times the illicit gains for those who fail to comply with the new regulations. Additionally, courts could impose maximum sentences such as life imprisonment in cases where reported losses to victims exceed $3.73 million.

Bitcoin Network Remains Congested, But Is It Due to Possible Malicious Attack?

Since last week, the Bitcoin network has remained congested with more than 420,000 unconfirmed transactions, raising suspicions of a possible malicious attack.

According to several developers and cryptocurrency community enthusiasts, the Bitcoin network is being attacked by persons who are willing to lose millions of dollars to render the network unusable.

Bitcoin community expresses concern

Developer (@proofofjogi) stated over the weekend that Bitcoin is under a DoS attack, one of the many tools hackers use to overwhelm a website by flooding the network with access requests.

“Bitcoin is under DoS attack. High transaction fees are the chosen pain point by the attacker, probably to make Bitcoin unusable for smaller players.”

In addition, he explained that this could have been planned for several months, as network congestion has been increasing since the implementation of the Ordinals protocol, which allows the issuance of NFT tokens on the Bitcoin network.

Furthermore, user Chad Pleb pointed out that the Bitcoin network’s congestion is maliciously caused by hackers or groups willing to spend up to $9 million in losses from the minting of Ordinals tokens.

This argument was supported by Francis Pouliot, CEO and co-founder of Bull Bitcoin, who showed an image of a conversation in which a person indicated that anyone with a large amount of money could make the Bitcoin network unusable by increasing transaction costs through excessive minting of Ordinals.

Average Bitcoin transaction costs rise to 2021 levels

Despite the fact that BTC price is far from the bullish rally it experienced during 2021, where transaction costs reached an all-time high of $70, the actual cost for verifying transactions has remained relatively high, ranging between $8 and $20.

Although some analysts indicate that this is a momentary issue as average fees have been decreasing, network congestion is not improving, according to Bitcoin’s blockchain explorer and mempool, Mempool Space.

At the time of writing this note, there are more than 300,000 pending transactions, with an average cost of medium priority of approximately $7. This proves that the latest Bitcoin update sacrificed network stability for unnecessary innovation.

Coinbase (COIN) Stays Solid Despite Reporting Multimillion-Dollar Losses

On May 5th, Coinbase shares increased by 18.33%, despite the company’s latest revenue report for the first quarter of 2023, which showed multimillion-dollar losses despite the rise in Bitcoin prices.

According to Coinbase’s report, the company registered a loss of $79 million, which was much lower than expected compared to the first quarter of 2022, where it lost nearly $430 million.

Coinbase reduced its operating expenses to increase its revenues

The report showed that Coinbase Global, Inc. had revenues of $772 million during this first quarter. However, operating expenses were $896 million, leaving an operating loss of $128 million, which was much less than the $554 million lost during the first quarter of 2022.

The decrease in operating expenses is largely due to the mass layoffs of 950 workers carried out by the company earlier this year, after having a net loss of $557 million during the fourth quarter of 2022.

The January 2023 layoffs were the second-largest made by the company, as they laid off one-fifth of their workers in July 2022 to reduce operating expenses.

Although the massive layoff of workers is an unpleasant decision for those who work in this industry, it was a correct decision for Coinbase, as the company begins to show signs of recovery.

Coinbase faces a legal battle against US regulators

Unlike other exchanges that have declared bankruptcy following the collapse of FTX and other large cryptocurrency funds, Coinbase is fighting regulators in the US due to the lack of regulatory clarity, for which they have had to pay several fines.

As reported by ZyCrypto, legal issues between Coinbase and the SEC continue to increase, to the point that in late March, Paul Grewal, Coinbase’s legal director, stated in a statement that the SEC refused to identify which assets on the platform they “believe may be securities, and refused to do so.”

However, on May 3rd, Grewal reported that the US court ordered the SEC to respond within 10 days to Coinbase’s requests on how they are applying securities laws to crypto assets, as the regulatory environment in the country is becoming hostile towards exchanges, which like Bittrex, have begun to move to other pro-crypto countries.

US Senators Reintroduce Bill To Investigate Bitcoin Adoption In El Salvador

On May 11, Senators Bob Menendez and Jim Risch reintroduced the Accountability for Cryptocurrency in El Salvador (ACES) Act in the United States Senate. The purpose of this act is to periodically oversee the process of Bitcoin adoption in the Latin American country.

According to the Senate’s statement, the bill aims to assess the impact of BTC on the economic stability and governance of the Central American country. It also seeks to analyze potential risks related to cybersecurity and malicious actors.

Legislation demands reports on Bitcoin’s use and impact on stability and remittances

The reports must include detailed information about the flow of cryptocurrency remittances sent from the United States to El Salvador. This is to understand the risks associated with using BTC for illicit activities.

The bill was initially introduced in Congress in February 2022 by Senators Jim Risch, Menendez, and Cassidy. Risch stated that adopting Bitcoin as a legal tender in El Salvador “raises significant concerns about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America.”

On the other hand, Cassidy emphasized that if the U.S. wants to combat money laundering, it “must tackle this issue head-on.” However, it seems Congress does not share the senators’ opinion, as the bill has not been discussed again until now.

The proposed plan aims to mitigate potential risks to the U.S. financial system

One year after introducing the bill and not receiving a favourable response, Senator Risch continues to assert that the use of cryptocurrencies “as legal tender could weaken economic and financial stability and empower malign actors.”

Similarly, Risch emphasized that the interests of the U.S. are to ensure prosperity and economic transparency in Central America, gaining a clearer understanding of how the adoption of BTC can affect the financial and economic stability of El Salvador.

However, considering the geopolitical and macroeconomic scenario of the U.S., it could be said that the senators want to study the impact of BTC in El Salvador to understand better how implementing cryptocurrencies as legal tender can affect the country’s financial stability.

Perhaps, having access to such data could help them comprehend the potential advantages and disadvantages of implementing a CBDC based on the dollar.

Currently, the President of El Salvador, Nayib Bukele, has not commented on the bill’s reintroduction. This might be because he is more focused on continuing to drive technological innovations and the adoption of cryptocurrencies rather than responding to politicians from a country with no jurisdiction over his own.

XRP Holders’ Attorney Supports Chamber’s Allegations of SEC’s Overreach in Digital Asset Industry

On May 11, John Deaton, the attorney and legal representative of XRP holders in the collective lawsuit against the U.S. Securities and Exchange Commission (SEC), supported the report presented by the U.S. Chamber of Commerce, a major business interest group, opposing the country’s current regulatory environment driven by the SEC.

According to the Chamber of Commerce, the SEC is misusing its powers, destabilizing the regulatory environment of cryptocurrencies and causing significant economic harm to Coinbase and the broader business community.

XRP holders’ attorney endorses Chamber’s report, denouncing SEC’s overreach

XRP holders’ attorney, Deaton, stated that the Chamber of Commerce was not the first to denounce the SEC’s overreach in the uncertain regulatory environment. For over two years, XRP holders have pointed out that the SEC won’t stop after its attack on Ripple.

“XRP holders were the first to call out the SEC’s gross overreach, but clearly, we aren’t the last. Over two years ago, we warned that this wouldn’t end with XRP. Even when the government’s overreach targets a project you dislike, you must stand against it.”

Stuart Alderoty, Ripple’s Chief Legal Officer with over 35 years of legal experience in regulatory affairs and complex litigation, noted that the current uncertain regulatory environment is not just a crypto problem but a “We The People” problem. The regulations affect not only the crypto ecosystem but all individuals and businesses involved.

Chamber’s submission could impact crypto regulation

The Chamber of Commerce made three compelling arguments against the SEC that could add more credibility to the companies and proponents fighting legal battles against the SEC.

Firstly, they indicated that regulatory uncertainty stifles innovation in the United States. Secondly, the SEC is destabilizing the regulatory environment of cryptocurrencies. And lastly, the SEC is violating due process and the right to fair notification.

The last point relates explicitly to Coinbase’s lack of response from the SEC when asked to explain which assets offered on its platform are considered securities. The SEC, so far, has been unwilling or unable to respond, even after receiving a court order from a U.S. court to address Coinbase’s legal action.

As recently reported by ZyCrypto, Coinbase is receiving support from various entities like the Chamber of Digital Commerce (CDC), the world’s largest blockchain advocacy and trade group, in its public battle against the SEC.

Binance NFT Marketplace Expands Ecosystem With Support For Bitcoin NFTs

Binance, the world’s largest exchange by trading volume, announced it is working on including Bitcoin’s Ordinals tokens in its non-fungible token (NFT) marketplace.

According to an official statement, Ordinals tokens will be included in “the coming weeks” as the exchange expands its NFT ecosystem.

Binance wants to expand its NFT Marketplace

Binance is working with other relevant projects from the Bitcoin Ordinals community to drive its expansion. Currently, Binance’s marketplace only supports three networks: BNB Chain, Ethereum, and Polygon.

Therefore, the team hopes that integrating the Bitcoin network will elevate its marketplace and turn it into an “open marketplace ecosystem, where users can explore and trade a wider variety of NFTs.”

Thanks to this integration, Binance users will be able to trade Bitcoin NFTs without the need for a separate Ordinals wallet. This could benefit the NFT market by removing barriers to entry for artists and content creators with little experience in the crypto ecosystem.

Binance will focus on finding quality NFT projects that are “innovative” to support the growth and development of Bitcoin Ordinals.

Those who wish to participate in Binance’s special registration event, which includes opportunities to be whitelisted and receive an airdrop, must complete a form available from May 09 to May 15 at 23:59 UTC.

It is worth mentioning that many crypto enthusiasts have rejected Ordinals tokens due to congestion caused by the excessive minting of BRC20 tokens on the Bitcoin network and the non-financial nature of this implementation —which is considered by some to be against Bitcoin’s ethos as a P2P electronic cash system.

What are Bitcoin Ordinals, and why have they become a trend?

The Ordinals protocol essentially allows users to convert individual satoshis into unique NFTs by attaching additional data. This process is known as “inscription.”

Unlike traditional NFTs, Ordinals inscriptions can contain videos, images, texts, or codes. Although this could be innovative for artists in the crypto ecosystem, it has been the most significant problem caused by the latest Bitcoin “Taproot” update, according to some bitcoin maximalists.

Even Binance had to temporarily halt Bitcoin transactions over the weekend for a few hours due to network congestion related to the issuance of BRC-20 tokens minted and traded through the Ordinals protocol.

Binance’s Listing of PEPE and FLOKI In Its Innovation Zone Strikes Further Eruption

On May 5th, Binance, the world’s largest cryptocurrency exchange, announced the addition of the meme coins PEPE and FLOKI, which have been trending in the cryptocurrency market due to their exorbitant price increases in recent days.

According to Binance’s statement, both tokens were listed on May 5th at 16:00 PM (UTC), allowing users to make spot purchases of FLOKI/USDT, FLOKI/TUSD, PEPE/USDT, and PEPE/TUSD. Withdrawals for both coins will be enabled starting tomorrow at 16:00 PM (UTC).

Binance warns that PEPE has no utility

Binance warned in their statement that the PEPE token “has no utility and was created by an anonymous team”, so they invited their users to properly research before investing in these types of tokens.

“FLOKI and PEPE are relatively new tokens that pose a higher than normal risk, and as such will likely be subject to high price volatility. Please ensure that you exercise sufficient risk management, have done your own research in regards to FLOKI and PEPE’s fundamentals, and fully understand the projects before opting to trade the tokens.”

Additionally, they explained that “there are signs that certain insiders or team members were able to buy 7% of the total token supply minutes after TGE.” This means that the price of PEPE in dollars could collapse at any time if project members with the largest holdings decide to sell their tokens.

Even on the PEPE website, they warn that “the coin is completely useless and for entertainment purposes only”, and it was created to become the largest of its kind, surpassing popular ones like Dogecoin (DOGE) or Shiba Inu (SHIB).

PEPE price increased more than 1200% in a week

Despite Binance’s warnings, the FUD around these meme coins has been so great that even on Twitter, the hashtag #PEPE became a worldwide trend with more than 4 million tweets at the time of Binance’s announcement.

This led to the price of PEPE, which already had an increase of over 800% during the last week, rising to a high of 136% today, from $0.0000019 to a peak of $0.0000045.

At the time of writing, PEPE maintains a market cap of over $1.1 billion, according to CoinGecko. This market cap has been amassed in less than a month since its creation.

Nayib Bukele Signs Bill to Eliminate Technology Taxes in El Salvador

As some countries like the United States continue to restrict innovative technologies like Bitcoin and cryptocurrencies, other Latin American countries, such as El Salvador, are working to boost the growth of their tech industries.

On May 4th, Nayib Bukele, President of El Salvador, announced the enactment of a law that eliminates taxes on innovative technologies, including software creation, coding, artificial intelligence, and other fields.

The law signed by Bukele will exempt fiscal taxes on these technologies for at least 15 years. Additionally, it includes the elimination of capital gains tax, paid when obtaining profits from the sale of an asset.

El Salvador wants to become a technological leader in Latin America

The bill was approved on April 19th by the Legislative Assembly of El Salvador with 69 votes in favor and none against during the 103rd plenary session of the legislative body.

Congresswoman Elisa Rosales stated during the plenary session that the new Legislative Assembly and the Executive Branch are working to position the country as a leader in Latin America on technological manufacturing.

“There are five incentives being granted for 15 years, and we are not establishing a minimum investment amount because we want to encourage all those StartUps. We have a different vision; we are positioning our country with a different face internationally,” 

El Salvador bets on emerging technologies to improve its economy

Congressman Estuardo Rodríguez pointed out that the Law for the Promotion of Innovation and Technological Manufacturing will “contribute significantly to the country’s economic development,” creating more jobs for young people.

Furthermore, the new law will create opportunities for the development of artificial intelligence, a cutting-edge technology used daily by millions of users and companies to improve their efficiency and productivity.

Thanks to Nayib Bukele’s technological proposals, such as enacting the Bitcoin Law, which establishes the use of Bitcoin as legal tender in El Salvador, the country has become one of the most attractive nations for cryptocurrency companies.

As recently reported by ZyCrypto, Bitfinex became the first cryptocurrency exchange to expand to El Salvador after acquiring a digital asset license allowing it to operate in a regulated manner in the country. Will other major exchanges follow?