The United Arab Emirates (UAE) has introduced a structured legal framework for Decentralized Autonomous Organizations (DAOs) through the RAK Digital Assets Oasis (RAK DAO).

This initiative highlights RAK DAO’s commitment to creating an environment where decentralized organizations can flourish. It marks a significant move to bolster the region’s position as a global hub for web3 innovation, with crypto-friendly policies enabling the course.

UAE’s New DAO Law Empowers Crypto and Web3

It comes as RAK DAO, a UAE-based Free Zone dedicated to digital asset companies, launched its DAO Association Regime (“DARe”). The DARe framework is particularly noteworthy for its tailored approach, offering two distinct models: Startup DAO and Alpha DAO.

The Startup DAO model caters to emerging projects, accommodating organizations with fewer than 100 members. It aims to simplify regulatory processes, allowing new ventures to focus on growth and development within a flexible legal environment. In contrast, the Alpha DAO model targets more mature DAOs with treasuries exceeding $1 million. Specifically, it provides them with the necessary support to scale their operations efficiently.

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Dr. Sameer Al Ansari, CEO of RAK DAO, articulated the importance of this new regime. He also highlighted essential features such as the provision of a separate legal identity and limited liability for founders, contributors, and members. Similarly, Luc Froehlich, Chief Commercial Officer of RAK DAO, echoed Al Ansari’s sentiments.

“The introduction of DARe represents a stepping stone in our journey towards building a global hub for the blockchain and digital assets ecosystem. By offering a structured legal framework, we enable DAOs to interact with the off-chain world, such as opening a bank account and owning both on- and off-chain assets. This legal wrapper will also allow DAOs to signal and raise their credibility amongst peers, members, and investors,” Froehlich added.

Taken together and combined with the specific legal clarity and tax optimization, this development reflects the UAE’s and RAK DAO’s commitment to embracing novel technologies and fostering the blockchain ecosystem.

UAE as a Leading Destination for Crypto Firms

As the global space for digital assets continues to grow, the DARe framework positions the UAE as a leading destination for crypto-related ventures. The regulatory clarity and support provided through DARe could attract startups. Nevertheless, it would also set a new benchmark for other jurisdictions around the world.

Comparatively, while the UAE is advancing its regulatory frameworks to encourage Web3 and digital asset innovation, Italy has recently made headlines for its capital gains tax on cryptocurrencies, which could deter investment in this growing sector. Italy’s approach, focusing on taxation rather than fostering innovation, contrasts sharply with the UAE’s proactive stance in establishing supportive regulatory frameworks. This comparison highlights the differing priorities of these two nations.

In the UAE, the emphasis is on attracting and nurturing blockchain ventures, whereas Italy’s tax policies may complicate the sector for digital asset companies. This could limit their growth and development by inspiring “capital flight.”

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Moreover, recent legal changes from Dubai’s Virtual Asset Regulatory Authority (VARA) highlight the UAE’s focus on creating a favorable regulatory environment for virtual assets. These changes are poised to enhance operational frameworks for digital asset companies, further cementing the UAE’s commitment to becoming a global leader in blockchain innovation.

HashKey Capital remains optimistic about altcoins, taking cues from the ongoing Bitcoin boom. Their bullish stance is based on a mix of market analysis, strategic investments, and economic factors that suggest strong potential for low-cap tokens.

At the same time, Bitcoin (BTC) continues to perform well, with the $70,000 milestone within reach. Should positive sentiment lead to capital flowing into altcoins, Ethereum and Solana are expected to be the primary beneficiaries.

HashKey Capital Eyes Market Potential for Altcoins

The investment firm has articulated its bullish outlook in a recent Medium post. It outlined the strategic rationale behind its focus on altcoins amid changing market outlook and investor sentiments. Specifically, HashKey Capital has identified a critical shift in investor behavior, citing an increasing demand for diversified portfolios that extend beyond Bitcoin and Ethereum.

Growing Institutional Interest

The post emphasizes that the increasing institutional interest in cryptocurrencies serves as a strong catalyst for the growth of altcoins. It highlights the growing narrative around cryptocurrencies as major financial players and asset managers become more involved in the digital asset space.  

Further, institutions are looking beyond Bitcoin and Ethereum, considering altcoins as viable investment vehicles. Among them is Bitwise, which recently revised its XRP ETF (exchange-traded fund) filing. Others, like Grayscale, are pivoting their trust funds to altcoins such as Aave, Sui, and XRP.

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According to Jupiter Zheng, HashKey Capital’s partner of liquids funds and research, professional investors are eager to explore altcoin opportunities. Due to their lower market capitalization and growth potential​, these tokens have historically provided substantial returns.

Changing Market Conditions

HashKey Capital’s optimism is also grounded in favorable market conditions. Recent trends indicate that cryptocurrency markets are stabilizing, aided by improved liquidity and shifting macroeconomic conditions. The firm points to signs of a market bottoming out, which, coupled with the potential easing of US interest rates, is seen as a favorable environment for altcoin investments.

“The peaking of US interest rates combined with improved liquidity in the crypto market creates an ideal environment for investors to explore altcoins,”​ Zheng noted

The increase in applications for spot crypto ETFs (exchange-traded funds) also reflects a growing acceptance and normalization of digital assets. For instance, Nashville-based investment firm Canary Capital filed for a Litecoin ETF, which further enhances the investment avenue for altcoins.

Regional Regulatory Boost

Another key component of HashKey Capital’s bullish outlook on altcoins is the supportive regulatory environment. Hong Kong is a key focus for the asset manager, given that it is based there. The region has made significant strides in establishing a strong framework for digital assets.

This has attracted institutional interest and provided a favorable atmosphere for crypto investments, with the likes of Animoca Brands exploring a possible IPO (initial public offering) in Hong Kong or the Middle East. The regulatory clarity is expected to facilitate greater adoption of altcoins and pave the way for new projects to emerge​.

As HashKey navigates this regulatory playing field, its focus on altcoins aligns with the broader trend of institutional players entering the market. This influx of capital and expertise is anticipated to drive innovation and create new investment opportunities within the altcoin space​.

Diversification Strategy

Nevertheless, HashKey Capital’s strategy goes beyond capitalizing on market trends. It is also about prudent risk management through diversification. The firm plans to allocate less than 50% of its funds to Bitcoin and Ethereum, allowing for greater exposure to smaller-cap cryptocurrencies. This strategic allocation aims to optimize risk-return profiles by tapping into the potential of various altcoin projects.

The selection criteria prioritize projects that exhibit strong fundamentals and novel approaches. Taken together, the asset manager’s altcoin pivot highlights an understanding of market inefficiencies. Smaller market cap-sized cryptocurrencies often experience higher volatility, but they also provide opportunities for outsized returns. By strategically investing in a range of altcoins, the crypto investment firm seeks to balance risk while pursuing substantial upside potential.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season.

HashKey Capital’s expression of bullishness on altcoins is timely, coming along with analysts’ expectation that the colloquial “alt season” is near sight. As BeInCrypto reported, the Altcoin Season Index has dropped to its lowest level since early September, signaling a potential shift. Nevertheless, some are also skeptical about an altcoin season happening, given Bitcoin’s prevailing dominance.

In the past few weeks, Layer 1 (L1) blockchain Aptos (APT) has witnessed a significant surge in network activity. User activity on the Proof-of-Stake (PoS) network has climbed to multi-month highs, driving the value of its native token, APT, to new heights.

Readings from its technical setup suggest that APT is poised to extend its current gains. If demand is sustained, the altcoin may rally toward $19.37. This analysis delves into why that is likely in the mid-term. 

Crypto Users Flock to Aptos 

On-chain data has revealed a notable uptick in user activity on Aptos over the past month. Per Artemis, the daily count of unique addresses that completed at least one transaction of the blockchain in the past 30 days has skyrocketed by 115%. During the period in review, Aptos’ daily active addresses have totaled 743,466.

The recent surge in user activity on the Aptos network has led to a significant increase in its daily transactions. Over the past month, the network has processed more than 5 million transactions, marking an impressive 373% growth in transaction volume. 

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This growth is evident in Aptos’s thriving decentralized finance (DeFi) sector. Its DeFi total value locked (TVL) has spiked 67% over the past 30 days, reaching an all-time high of $909 million. 

According to DefiLlama, Aptos currently ranks as the 11th largest blockchain by TVL, trailing just behind Sui, which has a TVL of $1.01 billion.

APT Price Prediction: Coin Targets Yearly High

The surge in network activity has translated into impressive price gains for APT. As of this writing, the altcoin trades at $10.88, just above the support of $10.07. It has noted an 11% price surge over the past 24 hours and currently ranks as the market’s top gainer.

BeInCrypto’s assessment of the coin’s key momentum indicators suggests the possibility of an extended rally. For example, APT’s Chaikin Money Flow (CMF) has also trended upward with its price, and it currently rests above the zero line at 0.20. 

The CMF measures how money flows into and out of an asset. When it rises alongside price, as in APT’s case, it suggests the upward price movement is backed by strong buying volume, making the trend more likely to continue. If the uptrend is sustained, Aptos’ price may attempt to reclaim its yearly high of $19.37 and can possibly surge towards the psychological resistance at $20. 

Read more: Aptos Crypto (APT): A Guide to What it Is and How it Works

However, a surge in profit-taking activity will invalidate this bullish projection. If this happens, APT’s price may drop to its August 5 low of $4.32.