Market
Solana Investigation, Altcoin Season, And More
This week has been super exciting for Solana (SOL) and the broader crypto community. While the week started with rumors about Solana’s criminal investigation, it ended with VanEck filing for a spot Solana exchange-traded fund.
Meanwhile, analysts are also discussing the much-awaited altcoin season. As the market consolidates, institutional investors such as BlackRock retain a high interest in the tokenization of real-world assets (RWA). Binance continues to face regulatory challenges, and it had to turn off copy trading in the European Union (EU) region.
Rumors Suggest Solana Under Criminal Investigation
This week began with unsettling news in the crypto sphere. Influential crypto personality Crypto Bitlord disclosed that Solana might be under criminal investigation.
Following the SEC’s classification of SOL as a security, the timing of this investigation caused ripples of concern among investors. Details about the probe are scant, but the implications could be significant for the altcoin’s future.
“We are hearing rumors that SOL is under investigation and a huge case is about to become public. This has been brewing for weeks now and could not come at a worse time. If what we heard is true, start praying for Solana,” Bitlord noted.
Read more: How to Buy Solana (SOL) and Everything You Need To Know
Top Analysts Predict Altcoin Season’s Start
Bitcoin’s dominance in the market has been undeniable, reaching new all-time highs. However, retail investors are eagerly anticipating the altcoin season.
Analyst Miles Deutscher has observed that altcoins are not keeping pace with Bitcoin (BTC). He suggests that the market is still very much driven by Bitcoin, overshadowing other cryptocurrencies. Moreover, other narratives, such as meme coins, have fragmented the liquidity that would have instead gone to fundamentally strong altcoins.
“This has been a Bitcoin-narrative led cycle… Specific narratives have significantly outperformed (with majors lagging). Memes, AI, and RWA have been the clear leaders so far this cycle,” Deutscher said.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
Conversely, CryptoQuant CEO Ki Young Ju sees potential for Ethereum to kickstart the altcoin season, noting its improving market value to realized value (MVRV) ratio compared to Bitcoin.
“Given the current ETF situation, this might be an ETH-only season. Historically, when ETH surges, other alts tend to follow,” Ju wrote.
Binance Disables Copy Trading in the European Union
On the regulatory front, Binance has ended its copy trading services in Europe as the new Markets in Crypto Assets (MiCA) regulations loom. Set to provide uniform crypto regulations across the EU; these rules prompted Binance to direct users to close their copy trading positions by late June 2024.
The MiCA regulation aims to enhance market integrity and investor protection.
Read more: What Is Markets in Crypto-Assets (MiCA)?
BlackRock and Franklin Templeton Spearhead RWA Surge
The market for tokenized US Treasuries has exploded, driven by high interest rates and the appeal of secure, high-yielding on-chain assets. BlackRock and Franklin Templeton are leading this surge and managing the largest tokenized funds.
In fact, tokenized US Treasury products have surged by over 1,000% since early 2023. As of June 26, their market capitalization has hit $1.63 billion. This growth highlights the blending of traditional financial assets with blockchain technology, which promises enhanced liquidity and more efficient transactions.
Read more: What is The Impact of Real World Asset (RWA) Tokenization?
VanEck Files for First Solana ETF in the US
The week also saw a significant development as VanEck filed for the first spot Solana ETF. This filing could pave the way for institutional investors to gain more straightforward exposure to Solana.
If approved, the ETF would represent a significant evolution in Solana’s market status, potentially broadening its investor base and influence. Crypto market maker GSR predicted that the ETFs could drive Solana’s price by up to 9x. While GSR believes that Solana ETF could be next, it says that Cardano (ADA) or XRP ETF approvals might not come anytime soon.
“We can adjust our relative flow estimates under the various scenarios for Solana’s relative size to Bitcoin’s 2.3x increase due to the spot ETFs. Doing so suggests Solana may increase 1.4x under the bear flows scenario, 3.4x under the baseline scenario, and 8.9x under the blue sky scenario,” GSR analysts predicted.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
This Week’s Crypto Top 10
Despite a general downturn in the market this week, with total market capitalization falling from $2.35 trillion to $2.28 trillion, Solana stood out with a notable increase of 10.47%. In contrast, Bitcoin and Ethereum experienced declines. Meanwhile, Toncoin rose in the rankings, surpassing Dogecoin to become the eighth-largest cryptocurrency by market cap.
From regulatory changes and market shifts to significant new potential ETFs, these events are critical in shaping the crypto ecosystem. They reflect broader economic trends and technological advancements, drawing keen interest from diverse stakeholders within the financial ecosystem.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Why These Altcoins Are Trending Today — January 22
With Donald Trump assuming office as the US President, the crypto market has experienced heightened volatility. While some altcoins have surged, others have faced significant crashes, and many are gaining attention due to recent developments.
BeInCrypto has analyzed three altcoins that have been trending over the past 24 hours and explored what might lie ahead for them in the coming days.
United States Donald Trump (TRUMP)
TRUMP has captured significant attention this week as the official cryptocurrency token of US President Donald Trump. Since its launch, the token has gained immense traction and is now ranked 24th among the top 100 cryptocurrencies, marking a swift rise in prominence within the market.
The token recently hit an all-time high (ATH) of $79 and is currently trading at $41. If TRUMP can secure $45 as a support level, it may resume its upward momentum and make another attempt at its ATH, signaling strong bullish sentiment among investors.
However, profit-taking could pressure the token, preventing it from surpassing $45. A drop below this critical level could lead to a decline under $34, potentially invalidating the bullish outlook. In a worst-case scenario, TRUMP might fall to $26, reflecting a significant shift in market sentiment.
World (WLD)
World (WLD) captured investor attention following the announcement of Sam Altman’s OpenAI collaboration with Oracle and SoftBank. Together, they plan to invest $500 billion in US AI infrastructure under the Stargate Project, supported by President Trump. This strategic move has bolstered confidence in WLD, positioning it as a trending altcoin.
WLD’s price surged by 12% in the past 24 hours, driven by the positive sentiment surrounding this partnership. This rally could enable the altcoin to reclaim its 4-month-old uptrend line as support. If achieved, WLD might target $2.55 in the coming days, reinforcing its bullish momentum.
However, if WLD fails to breach the $2.17 resistance, it risks losing traction and falling back to $2.00 or lower. A further decline to $1.74 could completely invalidate the bullish outlook, signaling a potential shift in market sentiment against the cryptocurrency.
Bonk (BONK)
BONK has surged into the spotlight following the inauguration of the US Department of Government Efficiency (D.O.G.E.), which spurred renewed interest in dog-themed meme coins. This development has elevated BONK’s status in the crypto market, drawing significant attention from both retail and institutional investors seeking speculative opportunities.
The token recorded an 8% increase, trading at $0.00003236 and eyeing $0.00003151 as a critical support level. Securing this floor would strengthen the meme coin’s recovery prospects, potentially attracting more bullish momentum.
However, failure to hold the $0.00003151 support could lead to a decline toward $0.00002748. This drop would only invalidate the bullish outlook and also signal a broader loss of confidence in the token’s recovery potential.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Ethereum Price Can Reach $3,500 On The Back Of These Factors
Ethereum, the second-largest cryptocurrency, recently failed to breach $3,524, triggering a sharp price drop. Since then, recovery efforts have remained weak as volatility persists.
However, the current conditions suggest Ethereum may be preparing for a comeback as the market stabilizes.
Ethereum Has Room For Recovery
Ethereum’s Network Value to Transaction (NVT) Ratio is experiencing a decline, recently hitting a monthly low. A low NVT indicates that transaction activity is balanced with network value, reflecting reduced volatility. This creates an environment conducive to price recovery, something Ethereum urgently needs to regain its footing.
With the NVT ratio signaling healthy network activity, Ethereum is positioned to stabilize in the short term. Declining volatility often fosters investor confidence, making it more likely for the cryptocurrency to see renewed buying interest. As speculative activity wanes, Ethereum has an opportunity to chart a path toward meaningful recovery.
Ethereum’s realized profits recently dropped to a six-week low, pointing to a significant reduction in selling pressure from investors. This trend highlights the market’s shifting sentiment, with fewer participants looking to offload their holdings. Such conditions could provide Ethereum with the breathing room required to capitalize on broader bullish cues.
The lack of an uptick in realized profits suggests that the selling lull may persist, allowing Ethereum to focus on building upward momentum. With investors holding onto their coins, market conditions are primed for a gradual recovery, provided external factors remain favorable.
ETH Price Prediction: Breaking The Barrier
Ethereum is currently trading near $3,300, just below the critical resistance level of $3,327. Flipping this into support is essential for ETH to initiate a rally toward $3,524, representing a 6% increase from current levels. This move would mark a partial recovery from recent losses.
Breaking through the $3,524 resistance is crucial for Ethereum’s recovery. Achieving this would erase the recent downturn and also position the altcoin for further gains, potentially targeting $3,711. Such a move would underscore Ethereum’s resilience and align with the broader market’s bullish sentiment.
However, failing to establish $3,327 as a support level could stall Ethereum’s recovery. This scenario would leave the cryptocurrency vulnerable to a retracement toward $3,200, undermining recent progress and potentially delaying its path to $3,500.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Justin Sun, Vitalik Buterin Speak Amid Ethereum Reform Debate
TRON founder Justin Sun has offered a hypothetical plan for Ethereum and the Ethereum Foundation (EF) under his leadership. His remarks come amid controversy over EF’s leadership transformation.
In a series of posts on X (formerly Twitter), Ethereum co-founder Vitalik Buterin outlined the reforms’ goals and progress. He highlighted improvements in technical expertise, ecosystem engagement, and operational efficiency.
Justin Sun Outlines Blueprint for Ethereum Leadership
The TRON executive shared ambitious remarks on how he would lead the Ethereum Foundation if given the opportunity. Sun’s vision, shared on X, outlined a four-point plan to radically restructure EF operations, optimize Ethereum’s economic model, and drive the price of ETH to $10,000.
“If EF and Ethereum were under my leadership, ETH would hit $10,000,” Sun claimed.
Sun proposed an immediate halt to ETH sales for three years to stabilize supply and boost market confidence. He suggested covering EF’s operational costs through DeFi protocols like Aave, staking yields, and stablecoin borrowing, aligning with Ethereum’s deflationary goals.
A key component of his plan involves imposing significant taxes on Layer 2 (L2) solutions, aiming to generate $5 billion annually. The collected taxes would go toward exclusively repurchasing and burning ETH, further enhancing its scarcity and value.
Sun also called for a drastic downsizing of EF staff, retaining only top performers and offering them significant salary increases. This merit-based approach, he argued, would streamline operations and improve efficiency.
Finally, Sun emphasized adjusting node rewards and increasing fee burns to reinforce Ethereum’s deflationary narrative. He proposed redirecting all resources toward Ethereum’s core L1 development, focusing on scalability, security, and adoption. Justin Sun’s plan sparked a mixed response, with some applauding the bold vision.
“These are all very practical suggestions. Please pay attention to them and refer to them, Vitalik Buterin,” core developer 0xSea.eth posed.
Meanwhile, others challenged Sun to focus on TRON and explore bringing decentralized finance (DeFi) to its ecosystem.
“Maybe start with how to make DeFi great on TRON – you should ask your exec team (and yourself), “Why is DeFi nonexistent on TRON despite it being the chain with the most stable coins on it?” If you answer this, maybe TRON can beat eth one day,” ZIGChain co-founder Abdul Rafay Gadit remarked.
Vitalik Buterin Defends Leadership Amid Criticism
Sun’s proposed solution aligns with Vitalik Buterin’s recent post discussing ongoing changes over the past year, some of which have already been implemented. Buterin emphasized goals such as strengthening the EF’s technical leadership and improving collaboration with ecosystem participants. He also addressed concerns, rejecting the notion that the EF might adopt centralized or politically motivated roles.
“…these things aren’t what EF does and this isn’t going to change. People seeking a different vision are welcome to start their orgs,” Buterin articulated.
Aya Miyaguchi, an EF executive, confirmed the ongoing efforts, expressing excitement about forthcoming announcements. She noted that the reforms aim to solidify Ethereum’s position as a global neutral platform while embracing decentralized and privacy-preserving technologies.
The announcement has stirred controversy within the crypto community. Critics argue that the current leadership has failed to manage Ethereum effectively.
“Respectfully, just let new blood take over. You guys can’t even make a simple Twitter account work—how can you be trusted to lead the second biggest blockchain,” Wazz posed.
Another user, Coinmamba, suggested that pressuring Miyaguchi to resign could result in Ethereum reaching new all-time high. Buterin strongly condemned these comments, defending Miyaguchi and calling out the toxicity of such social media rhetoric.
“No. This is not how this game works,” Buterin retorted. “The person deciding the new EF leadership team is me. If you ‘keep the pressure on,’ then you are creating an environment that is actively toxic to top talent. YOU ARE MAKING MY JOB HARDER,” the Ethereum co-founder lamented.
Buterin also refuted specific claims against Miyaguchi, pointing out inaccuracies in translations and misinterpretations of her statements. He reiterated the need for a “proper board” within EF to enhance governance.
Ethereum’s ETH token was trading at $3,305 as of this writing, representing a modest 0.2% surge since Wednesday’s session opened.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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