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Cardano (ADA) Poised For 70% Rally By Late December, Analysts Optimistic

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Cardano (ADA) is currently experiencing a notable upswing amidst the ongoing crypto resurgence driven by Bitcoin. Bullish momentum is aiming to revisit this year’s high, which is around 45 cents.

This surge is not a stroke of luck; rather, it is the outcome of dedicated development initiatives and the maturation of the Cardano network into a thriving ecosystem for emerging web3 projects.

Cardano’s Staked Assets Soar: 22.98 Billion ADA, 695 Million Locked In DeFi Projects

The total staked ADA has surged impressively to 22.98 billion, with 695 million securely locked in decentralized finance (DeFi) projects. This surge in staked and locked assets has led to a reduction in the circulating supply, potentially fueling a bullish trend in the market.

In a recent analysis, Ali, a renowned crypto expert, compared Cardano’s ongoing consolidation phase to its trajectory from 2018 to 2020, excluding the Black Thursday event. 

Despite ADA’s struggles to surpass the 38-cent mark, Ali projects a potential year-end high of 75 cents, contingent on breaking the crucial 45-cent barrier in early December. With ADA currently hovering around this pivotal level, the analyst stands by the ambitious 75-cent target.

Cardano’s price has recently broken out of a macro descending triangle, signaling a bullish trend. The confirmation of a daily golden cross between the 50 and 200 Moving Averages further underscores the potential for an upward trajectory. Moreover, a notable spike in daily traded volume, reaching approximately $788 million, reinforces the optimistic outlook for Cardano’s price.

ZkSync Head Accused of Token Misallocation In Alleged Corruption Scandal: Report

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In a recent development, Derivatives Monke, a prominent figure in the crypto space, has sparked uproar with revelations of alleged corruption involving Sebastien, the Head of DeFi at zkSync, Ethereum’s Layer-2 scaling solution. Monke divulged incriminating chat screenshots, accusing Sebastien, also known as Seb, of offering “extra zkSync tokens” and reserving a portion for a “friend joining the multisig.”

The recent controversy surrounding Seb and the launch of Syncus_Fi, a treasury-backed DeFi protocol developed for zkSync’s new economic system, was brought to light through a X post by Monke. The post revealed conversations that implied a skewed token allocation by Seb, which had been discussed in the lead-up to the protocol’s launch.

ZkSync’s IDO Controversy

The IDO (Initial DEX Offering) has been the subject of official statements that emphasize the objective of securing liquidity for the token and initiating the treasury by allocating 15% of the total SYNC tokens. The IDO, scheduled for November 25 at 2 pm (EST) with a brief five-minute window, has garnered attention due to a tweet by Monke that pointed to Seb’s alleged advocacy for a substantial 25% token allocation to “his friend.”

Sebastian strongly denied the accusations, asserting that the screenshots were fabricated and did not accurately represent the situation. He countered these allegations on his social media platform, X, stating that the content was falsified and that the matter had already been addressed in previous Discord discussions. A serious tone and a firm insistence on the inaccuracy of the allegations characterized Sebastian’s response.

Despite the numerous allegations, Seb expressed utmost confidence in the project and categorically denied any intention to spread Fear, Uncertainty, and Doubt (FUD). He vigorously defended his character against what he deemed an assault on his identity. Seb cited a groundswell of support from community members who could vouch for his credibility within the crypto space. His unwavering confidence in the project underscores his determination to see it through to fruition despite the challenges and obstacles that may arise.

The ongoing controversy surrounding zkSync has sparked extensive discussions, raising doubts about the token distribution practices of the company and prompting concerns regarding the integrity of its leadership. As the situation unfolds, stakeholders eagerly await further clarification to establish the truth behind these contentious allegations.

Uniswap X Achieves $1 Billion In Trades, New Fillers Reshape Market Dynamics

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In a recent development, prominent crypto journalist Colin Wu, through a Wublockchain X post, recently uncovered a significant achievement regarding Uniswap X. The decentralized and open-source protocol, enabling trades across Automated Market Makers (AMMs) and diverse liquidity sources, has marked a remarkable milestone. Since its inception in July of this year, the platform has surged past a substantial threshold, accumulating a cumulative trading volume that exceeds $1 billion.

The trading ecosystem on Uniswap X has long been dominated by major market makers Wintermute and Tokka Labs, consistently accounting for 60%-80% of the daily trading volume. However, a noticeable shift is emerging with the advent of new players in the prevalent Defi market landscape.

Uniswap X New Entrant Reshapes Platform Dynamics

A recent development has witnessed a newly onboarded Filler on Uniswap X quickly ascending to the top spot within the past month, shaking up the established order and introducing a fresh dynamic to the platform. Currently, the platform boasts 15 active Fillers, with an additional 4 in onboarding. This surge in participation has led to a burgeoning competition among Fillers, prompting discussions on the optimal number required to ensure competitive pricing and expedited transaction speeds.

Notably, a newly introduced Filler disrupted the norm by seizing over 50% of the trading volume since its integration, significantly reducing the market share of the second-ranked Filler from its initial 90% at launch to roughly 20%. The third-ranked Filler also commands a similar share of around 20% of the total trading volume, emphasizing the dominance of market makers among the top performers.

Furthermore, there have been observable actions among token holders capitalizing on price surges. According to Lookonchain data, user stevu.eth withdrew substantial UNI tokens from Binance, accumulating holdings valued at $3.18 million.

Amidst a recent bullish wave in the crypto market, Uniswap’s native token (UNI) has emerged as one of the top-performing coins. Over the past week, UNI’s price surged by approximately 24%, elevating it from roughly $5.09 to $6.35.

This upward trajectory pushed UNI’s market valuation to $4.8 billion, marking its highest since August. The decentralized finance (DeFi) ecosystem has continued to flourish. According to CoinMarketCap’s data, as of November 2023, the total market capitalization of DeFi amounts to $66.09 billion.

The DeFi market took 14 months to achieve this valuation following the earlier DeFi bubble in 2022. This illustrates the resilience and growth potential of DeFi despite market volatility. This trend reflects the growing adoption of DeFi in mainstream markets and the continual advancement of innovative DeFi products and services.

Ethereum Users Face Potential Tax Burden on DeFi Activities: Australia

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The Australian Taxation Office’s (ATO) recent guidance on capital gains tax (CGT) for decentralized finance (DeFi) transactions has left many Ethereum enthusiasts and DeFi participants in a state of uncertainty. While the ATO has outlined certain DeFi activities that trigger CGT events, such as exchanging crypto assets for future rights or providing liquidity, the rules remain ambiguous regarding liquid staking and layer-2 bridge transfers.

The lack of clarity surrounding these specific DeFi activities has raised concerns among Ethereum users, as they are unsure whether their staking rewards or bridge transfers would incur CGT liabilities. This uncertainty is further compounded by the ATO’s failure to provide definitive answers to direct inquiries on whether liquid staking on Lido or layer-2 bridge transfers constitute CGT events.

ATO’s Unclear DeFi Regulations Cast Shadow Over Ethereum’s Future

The ATO’s stance on DeFi taxation has drawn criticism from industry experts, who argue that the opaque guidelines and lack of clear definitions are creating unnecessary complexity and confusion for Australian crypto users. One such expert, Matt Walrath, founder of Crypto Tax Made Easy, believes the ATO’s understanding of DeFi is inadequate, leading to overly stringent and potentially unfair tax implications.

The delayed release of the Board of Taxation’s proposed cryptocurrency taxation rules has exacerbated the situation. Originally scheduled for release in February 2023, the findings have been pushed back twice and are now expected in February 2024. This delay has left a void in the regulatory framework, allowing the ATO to interpret and apply the existing tax laws in a manner that may not fully align with the nuances of DeFi activities.

Amidst this uncertainty, Ethereum users are left to navigate a complex and potentially costly tax landscape. The ATO’s opaque guidelines and lack of clarity on specific DeFi activities could lead to unintended tax consequences, potentially discouraging further adoption and innovation within Australia’s crypto industry.

The call for more clarity and sensible tax laws has grown louder, with industry experts and crypto enthusiasts urging the ATO to engage with the community and develop regulations that foster a more welcoming environment for DeFi exploration and development.

Yearn Finance (VFI) Plummets 43% in Hours, Wiping Out Recent Gains Amid Market Uncertainty

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In a staggering turn of events, Yearn Finance’s (YFI) price witnessed a major setback after surging 167% recently, as it plunged 43% within five hours. This steep decline wiped out almost five days of rapid gains, bringing the token’s value down from a high of $15,591 to $8,421, resulting in a loss of over $250 million in market capitalization.

The sudden and unexpected Yearn finance (YFI) shift has caused investors to lose confidence, and many are now bewildered by the situation. This turn of events has raised questions about the factors that contributed to the asset’s decline and what measures can be taken to mitigate similar occurrences in the future.

Speculation abounds regarding potential causes for the Yearn Finance crash, with some attributing it to a suspected exit scam by insiders. Concerns have been raised due to the concentration of nearly half of the Yearn Fiance supply in just ten wallets, including those belonging to prominent crypto exchanges.

Yearn Finance (YFI) Liquidations Hit $5M In 24 Hours

Data from Coinglass indicates over $5 million in liquidations within 24 hours, with YFI contract positions reaching a peak of $162 million before sharply declining. As traders make short positions on Yearn finance, the token’s open interest (OI) has surged significantly, reflecting a bearish sentiment in the market.

Source: Coinglass

The recent downturn has had an impact on the broader cryptocurrency market. Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) – some of the major altcoins – have experienced a drop of approximately 3% in the last 24 hours. In addition, DeFi tokens have played a significant role in the market decline, pulling down the global market cap.

This plunge comes amid Bitcoin’s sideways movement, displaying no clear direction, while altcoins appear vulnerable to market fluctuations due to lower trading volumes during weekends. Analysts anticipate further pullbacks before a potential resurgence in altcoin investment, although the market has shed nearly $25 billion in the last two days.

The recent surge in cryptocurrency prices, primarily attributed to ETF approval anticipation, has hit a roadblock. Despite expectations for the ETF approval window from November 13 to 17, the SEC’s delay in making a decision signals a probable postponement until January 2024. Consequently, investors may capitalize on profits, potentially triggering a widespread market correction.

As uncertainty looms over the crypto market’s immediate future, investors are advised to tread cautiously amidst the ongoing volatility, especially with altcoins experiencing a considerable retreat after substantial gains.

Solana’s Symphony: Surging Heights, Liquidity Lows, & Decentralized Dominance

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In the dynamic world of cryptocurrency, Solana ($SOL) continues to capture attention with its impressive rally, as reported by Kaiko. Despite the surge, concerns are emerging over limited liquidity, prompting comparisons to the aftermath of FTX’s collapse.

Decoding Solana: Liquidity Challenges & DeFi Dominance

In USD terms, liquidity has reached its highest point since the aforementioned incident. However, when assessed in native units, there is a discernible downward trend, suggesting that market makers (MMs) are striving to maintain stability in liquidity levels.

The accompanying chart vividly illustrates the trajectory of $SOL’s recent surge, underlining the substantial ground yet to be covered. Since October 1st, SOL has surged by an impressive 150%, although it remains down by a considerable 77% from its all-time high (ATH).

CEO of Asymmetric, Joe McCann, took to Twitter to highlight Solana’s growing influence in the decentralized finance (DeFi) space. According to McCann, the number of Solana DeFi users engaging with 10 or more smart contracts (Solana programs) daily has hit a year-to-date high.

Remarkably, this represents 1.15% of all active DeFi addresses, dwarfing the figures for Ethereum, Optimism, Arbitrum, Avalanche, and Polygon. Solana’s user engagement is 11.5 times greater than Ethereum, 6.88 times greater than Optimism, 16.4 times greater than Arbitrum and Avalanche, and a staggering 23 times greater than Polygon.

Adding another layer to Solana’s prowess, crypto analyst Austin Barack pointed out the Solana decentralized exchange (DEX) volume to total value locked (TVL) ratio over the last seven days. The ratio stands at an impressive 13.6 times, showcasing the platform’s capital efficiency.

In comparison, Ethereum’s ratio is 1.8 times, and Arbitrum trails at 3.9 times. This positions $SOL DEXs as over seven times more capital efficient than Ethereum and more than three times as efficient as Arbitrum.

As SOL continues its upward trajectory, the cryptocurrency community watches with keen interest, navigating the evolving landscape of liquidity challenges and burgeoning dominance in the decentralized finance sector. The remarkable statistics presented by industry experts and analysts underscore SOL’s growing significance in the ever-expanding cryptocurrency market.

Related Reading | Crypto Capitals: Unveiling the $56.44 Million Lobbying Odyssey in the U.S: Report 

Midas to Unveil stUSD Token, Linking U.S. Treasuries with DeFi Platforms

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In an upcoming convergence between traditional finance and the ever-expanding realm of cryptocurrencies, Midas, a stablecoin backed entirely by U.S. Treasuries, is set to introduce its stUSD token across various decentralized finance (DeFi) platforms like MakerDAO, Uniswap, and Aave in the forthcoming weeks. This revelation was disclosed in a presentation deck obtained by CoinDesk.

The Midas project, aiming to establish a solid footing in the DeFi space, is strategically procuring U.S. Treasury bonds through asset management giant BlackRock. The procurement entry is facilitated using Circle Internet Financial’s USDC stablecoin, as detailed in the presentation. Additionally, institutional partners like Fireblocks and Coinfirm are involved, providing custody technology and blockchain analytics support, respectively.

Tokenizing Treasuries: Midas’ Game Plan

The motivation behind this move stems from the substantially higher yields observed in traditional financial assets like U.S. Treasuries in comparison to the returns on conventional DeFi products. Midas aims to tokenize these traditional financial assets, making them seamlessly available within the DeFi ecosystem, as articulated in their presentation.

This strategic move resonates with the current industry trend of tokenizing real-world assets, particularly attracting attention from traditional finance entities. The focus on tokenizing Treasuries has seen significant growth in 2023, prompting the Midas project to tap into this potential.

Notably, the Midas team comprises industry figures like Fabrice Grinda, the founder and executive chairman of Global Technology Acquisition Corp. (GTAC), and Dennis Dinkelmeyer, the vice president of GTAC.

The stUSD token, being 100% backed by U.S. Treasuries and issued under German law as a debt security, emphasizes the adherence to regulatory compliance and legal frameworks. Midas highlights its compliance with European Securities Regulation and Anti-Money Laundering laws, further ensuring that the token’s transfer embodies the transfer of underlying legal rights.

Despite these advancements, neither Grinda nor Dinkelmeyer responded to requests for comment as of press time. The imminent integration of Midas into the DeFi space represents a pivotal step in bridging the gap between traditional finance and the evolving landscape of decentralized finance.

Related Reading | Shibarium Surges 3000%, Ushering in New Era for SHIB 

Crypto Market Undergoes Bullish Rotation: DeFi & Layer 1 Tokens Lead The Way

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This week, the cryptocurrency market has seen a remarkable rally that extended beyond Bitcoin, with smaller-cap assets experiencing significant gains. Notably, the top performers in this rally have been blue-chip DeFi protocols and smaller layer 1 tokens. 

This trend marks a shift in the crypto cycle, as historically, Bitcoin led the initial surge, followed by Ethereum, and then capital gradually flowed into lower-cap and riskier investments. However, data from IntoTheBlock indicates a different pattern emerging, as Bitcoin and Ethereum trade sideways while DeFi and alternative layer 1 tokens undergo a strong rebound.

Crypto Market’s Bullish Rotation

In a newsletter from IntoTheBlock titled “Crypto’s Early Bull Market Rotation,” it is reported that investors are seeking riskier assets even as the fundamentals of the cryptocurrency market remain positive. This week, the crypto market experienced volatility, with many tokens appreciating over 10% within just a week. While short-term price momentum may appear overheated, there are indications of sustainable demand driving the overall uptrend.

The leading assets in this rotation were blue-chip DeFi protocols and smaller layer 1 tokens. These tokens exhibited the highest price increases among assets supported by IntoTheBlock, with a market capitalization of over $100 million and at least 1,000 daily active addresses. The shift towards riskier investments aligns with historical crypto cycles, where capital gradually moved into lower-cap and riskier bets.

Despite the move into riskier assets, the demand flowing into the crypto market seems relatively organic, primarily driven by spot buying. The leverage in the market remains low, as the ratio of Bitcoin’s open interest in perpetual swaps relative to its market cap remains near yearly lows. This suggests that the recent price surge is more organic and less reliant on derivatives-fueled leverage.

On-chain data also reveals an increase in fundamental activity. The weekly value of assets settled on the Ethereum network, including ETH, stablecoins, and the top 50 tokens, reached its highest point since March, coinciding with the collapse of the SVB. Ethereum’s mainnet alone saw over $213 billion in volume settled last week, with an additional $16 billion transacted between Arbitrum, Optimism, and Base.

Related Reading | Cardano’s Cutting-Edge Innovations Shine Bright At Summit 2023

Polygon’s Q3’23: CDK & POL Token Lead The Way With 131% NFT Surge

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The third quarter of 2023 witnessed a flurry of activity within the Polygon ecosystem, with several notable developments that have had a significant impact on the network. As per Messari’s report, one of the standout achievements was the introduction of the Chain Development Kit (CDK), a crucial advancement that succeeded Polygon Edge and Supernets. 

This open-source framework serves as a platform for launching ZK L2s and transitioning current L1s to L2s. It emphasizes elements like sovereignty and customizability, interoperability, security, Ethereum liquidity, and ZK technology, all aimed at enhancing the capabilities of the network.

The introduction of the POL token marked another significant milestone. POL is an upgrade from the MATIC token and has been successfully activated on the mainnet. This new token enables holders to actively contribute to network security across various chains in the ecosystem through a native re-staking protocol. 

It also features an inflationary model with an annual emission rate subject to community governance. The activation of POL offers additional utility and potential for token holders within the ecosystem.

NFT Performance In Polygon Ecosystem

Notable growth was observed in the NFT sector during Q3. Weekly NFT sales volume surged by an impressive 131% quarter-over-quarter, reaching $20 million. This increase was largely attributed to the introduction of DraftKings’ Reignmaker NFT collection, which swiftly became the top collection on Polygon PoS. The NFT sector remains a vibrant and dynamic space within the Polygon ecosystem.

The network also saw a 1.4% quarter-over-quarter increase in daily active addresses, totaling 364,000. The DeFi sector played a pivotal role in driving this growth, accounting for the majority of active addresses. Additionally, Polygon zkEVM reported a remarkable 123% quarter-over-quarter surge in daily transactions, averaging 44,000 daily transactions. These statistics reflect the network’s expanding user base and robust transaction activity.

In terms of financial analysis, the broader cryptocurrency market experienced a moderate downturn during Q3, with a 5.8% decrease in total crypto market capitalization. MATIC’s market capitalization also saw a decline of 16% quarter-over-quarter, closing at $4.9 billion. Despite market challenges, Polygon continues to advance and adapt to the ever-changing crypto landscape.

Looking ahead, the focus remains on the comprehensive rollout of Polygon 2.0, promising significant enhancements to the network. Collaboration with other high-caliber teams for the CDK, like Immutable, Astar, and Canto, will be pivotal as Polygon navigates a competitive landscape with modular EVM Layer2s. The rapid pace of development and the network’s ability to adapt to evolving trends reinforce Polygon’s position as a frontrunner in the blockchain space.

Related Reading | Cardano Founder Unveils Vision Amidst “Hostility” 

Crypto’s Challenging Q3: Insights From Binance’s ‘Market Pulse’ Report

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In its recently released Q3 “Market Pulse” report, Binance has revealed that the cryptocurrency market faced a challenging quarter. The report, compiled by Binance Research, delved into various aspects of the crypto landscape, highlighting both areas of decline and pockets of resilience. Despite the hardships, the entry of institutional giants like Deutsche Bank, Sony, and PayPal brought some relief.

The report outlined that Q3 was marked by an 8.6% decline in total crypto market capitalization. A challenging market environment contributed to this downturn. However, institutional adoption continued to gain momentum, providing hope in the face of adversity.

Activity on Layer 1 blockchain platforms and Layer 2 solutions saw mixed results. While activity on Layer 1s experienced a general decline, Ethereum Layer 2s showed signs of revival with the launch of Base, driving increased transaction activity.

The decentralized finance (DeFi) sector faced headwinds, with a 13.1% QoQ decline in total value locked (TVL) to $38.5 billion. Factors contributing to this decline included low DeFi yields, a risk-averse market, and a drop in the price of Ethereum, which often underpins many DeFi projects.

The non-fungible token (NFT) market experienced its worst quarter in nearly three years, with sales amounting to only $299 million. This decline was attributed to falling floor prices of NFT collections and the decreasing price of Ethereum.

In the gaming sector, BNB Chain, Ethereum, and Polygon dominated with approximately 66% market share in terms of the number of games.

Crypto Leaders & Notable Events 

The report also highlighted various notable events in the crypto world during Q3, including Ripple’s partial victory against the U.S. SEC, Fitch’s downgrade of the U.S. credit rating, and PayPal’s announcement of the stablecoin PYUSD.

Market capitalization decreased despite brief rallies following legal victories by Ripple and Grayscale. Institutional adoption remained robust, with major companies like Deutsche Bank, Sony, Grab, and PayPal expressing interest in web3 initiatives.

Bitcoin (BTC) maintained its lead, posting a 63.1% year-to-date gain. XRP and SOL also recorded significant gains, bolstered by legal victories and strategic partnerships.

While overall developer activity declined for the second consecutive quarter, projects like Chainlink, Taiko, and Zora continued to attract developers, signaling ongoing innovation in infrastructure and Layer 2 solutions.

Tron emerged as a standout performer in Q3, with its DeFi TVL share growing from 12.8% to 17.4%. Ethereum maintained its DeFi TVL leadership but witnessed an 18.6% decline in QoQ TVL. Despite challenges, the crypto market continues to evolve, adapting to changing dynamics and the influx of institutional players.

Related Reading | Ripple’s Resounding Victory: SEC Surrenders, XRP Soars 3.7%