Market
US CPI Data Release and More
This week, the crypto market is bracing for significant developments, with the US Consumer Price Index (CPI) data release and substantial token unlocks totaling over $230 million taking center stage.
These events are expected to drive volatility and shape the market’s direction.
MakerDAO’s Spark Tokenization Grand Prix Set to Commence on Monday
MakerDAO, a major player in the decentralized finance (DeFi) sector, is kicking off its Spark Tokenization Grand Prix on August 12, 2024. This initiative aims to onboard up to $1 billion in tokenized assets, focusing on US Treasury Bills and similar products. It also showcases MakerDAO’s strategic efforts to bolster its DeFi ecosystem.
Participants in the competition will be evaluated on pricing, liquidity, and alignment with SparkDAO’s vision. The goal is to identify proposals that promote innovation and financial inclusion.
Maker Governance will review the competition results. They will make final decisions on which assets to onboard while ensuring compliance with global financial regulations.
The Spark Tokenization Grand Prix has already garnered interest from major issuers of tokenized treasury bills. In an email to BeInCrypto, representatives from Superstate and OpenEden expressed their intention to participate with their flagship products, USTB and TBILL. Other reports indicate that BlackRock will also join the competition with its BUIDL token.
Read more: What is The Impact of Real World Asset (RWA) Tokenization?
US CPI Report Looms Over Crypto Market Sentiment
The July US Consumer Price Index (CPI) report is scheduled for release on August 14, 2024. Market participants expect the data to confirm a continuation of the disinflation trend seen in recent months.
Analysts believe that unless the CPI data reveals a significant uptick in inflation, the Federal Open Market Committee (FOMC) is likely to proceed with the anticipated interest rate cut in September. Such a rate cut could increase liquidity in the market, potentially driving up asset prices, including cryptocurrencies.
In June, the CPI data indicated a modest 0.1% monthly increase in core inflation, with an annual inflation rate of 3%. Meanwhile, projections from the Federal Reserve Bank of Cleveland and the prediction market Kalshi suggest that July’s CPI will continue to indicate a cooling economy.
Notably, the broader crypto market experienced a sharp decline last week, with Bitcoin dropping to as low as $49,000. Although it has since rebounded to around $60,000, the upcoming CPI data is expected to determine whether this recovery will continue or if further volatility is in store.
Ethena Labs to Reveal Details on Using Solana as New Backing Assets
Ethena Labs has expanded its synthetic dollar, USDE, to the Solana network as of August 7, 2024. This integration allows Solana users to transact in USDE while earning native rewards through sUSDE.
Alongside this integration, Ethena Labs also plans to incorporate Solana’s SOL token as a backing asset for USDE. The process is currently waiting for governance approval, which is anticipated to happen sometime within this week.
“SOL as a backing asset for USDe will be proposed to governance for implementation next week and open up an extra $2-3 billion of open interest across major exchanges, improving USDe’s scalability even further,” the Ethena Labs team said on their X (Twitter).
Read more: What Is Ethena Protocol and its USDe Synthetic Dollar?
The Sandbox (SAND) and Other Major Token Unlocks This Week
This week, the crypto market will see significant token unlocks exceeding $230 million, with The Sandbox and Arbitrum leading the charge. The Sandbox will release 205.59 million SAND tokens, which account for 9% of its circulating supply.
These tokens, valued at approximately $55.84 million, will be allocated to team members, advisors, and the company reserve. This allocation also marks the final unlock for SAND’s private investors.
Similarly, Arbitrum will unlock over 90 billion ARB tokens, valued at around $53.5 million. Read this article for further detailed information on major crypto token unlocks this week.
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
Polymarket Faces Ban in France as US Election Betting Ends
According to a report from The Big Whale, the National Gaming Authority (ANJ), France’s gambling regulator, is preparing to block the prediction markets platform Polymarket.
Polymarket, the decentralized platform that allows users to bet on the outcome of political events, sports, and other occurrences using cryptocurrency, has gained popularity in recent months, especially with bets surrounding the US presidential election. More than $3.2 billion was reportedly wagered on the platform during this high-stakes period, with a record-breaking $294 million in volume on November 5 alone.
France Users May No Longer Access Polymarket
According to The Big Whale, a French website that covers the crypto industry, the ANJ’s impending ban comes after a French trader placed a $30 million bet on a Trump victory, reportedly attracting the regulator’s scrutiny.
The trader’s wager positioned him to make approximately $19 million in profits, a sum that has intensified concerns over Polymarket’s compliance with French gambling laws. A source close to the ANJ stated that despite Polymarket’s use of blockchain and cryptocurrency, its activities are akin to gambling, making it subject to restrictions under French law.
“We are aware of this site and we are currently examining its operation as well as its compliance with French gambling legislation,” The Big Whale reported, citing an ANJ spokesperson.
Read more: What is Polymarket? A Guide to The Popular Prediction Market
Legal expert William O’Rorke from ORWL Avocats explained that although Polymarket does not specifically target French users, its activities fall squarely under gambling regulations.
“Polymarket involves betting money on uncertain outcomes, which aligns with the legal definition of gambling,” O’Rorke noted.
Against this backdrop, the ANJ is well within its mandate to block the platform’s access in France. Accordingly, the French regulator may enforce the ban by blocking Polymarket’s domain name in France. It amy also pressure third-party players, like media outlets and online directories, to limit access to Polymarket links.
However, French users may still circumvent this by using virtual private networks (VPNs). This is because Polymarket’s crypto-based infrastructure allows for relatively anonymous participation.
France’s looming ban is not the first regulatory roadblock Polymarket has encountered. In 2022, the US Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for failing to register as a designated contract market. The CFTC also challenged Kalshi’s operations due to questions about betting on political events.
Polymarket’s Fate After US Elections
Meanwhile, the US election was a significant catalyst for Polymarket. It drove the platform to new heights in user engagement and bet volume. Polymarket’s election-related markets have been featured on major financial platforms, including Bloomberg, highlighting the platform’s appeal to mainstream finance.
As BeInCrypto reported, Polymarket’s election betting topped $3 billion, reflecting unprecedented participation. The platform, however, faces a crossroads in its path forward. Following the climax of the US election on Wednesday, data from Dune Analytics shows a steep decline in Polymarket’s activity.
Daily active addresses and transaction volumes, which soared in the election lead-up, have notably dwindled as election-related betting winds down. For instance, Polymarket’s open interest, a key indicator of active betting engagement, dropped from $350 million to $268 million after the polls closed. Similarly, monthly new accounts have also dropped by over 41% between October and November.
Against this backdrop, Polymarket may need to diversify its market offerings or potentially embrace a new model to maintain user interest. This is considering election-related activity comprised the majority of the prediction market’s volume.
Rumors are circulating about a potential move toward a decentralized governance token, which could distribute control over Polymarket’s operations to its community. This shift would reduce the liability of the central authority by decentralizing decision-making, though it remains theoretical, with no clear timeline.
Read More: How To Use Polymarket In The United States: Step-by-Step Guide
Polymarket’s fast ascent and regulatory challenges highlight broader industry tensions between innovation and compliance. With election predictions no longer a draw and an impending ban in France, Polymarket’s future remains uncertain.
Its long-term viability may depend on how well it adapts to evolving regulatory landscapes and whether it can maintain popularity beyond election season peaks.
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
XRP Price Ready to Rally? Signs Point to a Bullish Move
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Market
Solana (SOL) Rallies Strongly, Setting Sights on $200
Solana started a fresh increase above the $172 support zone. SOL price is rising and might soon aim for a move toward the $200 level.
- SOL price started a fresh increase after it settled above the $165 level against the US Dollar.
- The price is now trading above $172 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could continue to rise if it clears the $192 resistance zone.
Solana Price Starts Fresh Rally
Solana price formed a support base and started a fresh increase above the $162 level like Bitcoin and Ethereum. There was a strong move above the $165 and $172 resistance levels.
There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair. The price even cleared the $185 level. A high is formed at $192 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $155 swing low to the $192 high.
Solana is now trading above $172 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $192 level. The next major resistance is near the $195 level.
The main resistance could be $200. A successful close above the $200 resistance level could set the pace for another steady increase. The next key resistance is $212. Any more gains might send the price toward the $220 level.
Another Dip in SOL?
If SOL fails to rise above the $192 resistance, it could start a downside correction. Initial support on the downside is near the $188 level. The first major support is near the $180 level.
A break below the $180 level might send the price toward the $172 zone or the 50% Fib retracement level of the upward move from the $155 swing low to the $192 high. If there is a close below the $172 support, the price could decline toward the $165 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $188 and $185.
Major Resistance Levels – $192 and $200.
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