🤖 Crypto AI Coins Are Ready, Bull Reversal Soon

Let’s Dive Into It!

Happy Monday dear subscribers! In today’s bulletin, we are covering:

• Surfing the Market, with analysis about AI Index and RENDER
• Hyperlane is under the spotlight.
• A short article about Decoding FED’s Language

The AI Index is showing more strength than the average and consolidating after the key breakout and bounce over the main support. Recovering the $64 level would be the next reversal confirmation target:

Talking about AI Coins, seems like RENDER is raising from ashes. Approaching the main downtrend resistance. The $4,5 range is the level to beat in order to trigger the bull reversal:

Project Research : Hyperlane

The Origins

Hyperlane is a permissionless interoperability protocol. Enables seamless cross-chain messaging, asset transfers, and smart contract interactions across different blockchain environments.

The Operative

Hyperlane’s architecture is built around a modular and permissionless framework, designed to enhance cross-chain connectivity.

Key components include:

• Permissionless Deployment: Developers can deploy Hyperlane on any blockchain (L1s, rollups, or app-chains) without approvals or intermediaries.
• Modular Security (ISMs): Interchain Security Modules (ISMs) allow developers to customize security parameters, ensuring flexibility and scalability.
• Multi-VM Compatibility: Hyperlane supports EVM, SVM (Solana Virtual Machine), and CosmWasm, enabling cross-chain smart contract calls and asset transfers.
• Warp Routes: A mechanism for custom token bridges, allowing projects to create interoperable liquidity solutions for native and ERC-20 tokens.
• Interchain Accounts: Users can execute smart contract calls across multiple chains from a single account, streamlining interactions.

Summary& Competitors

In September 2022, Hyperlane raised $18.5M in a seed round led by Variant Fund, with participation from NFX, Galaxy Digital, CoinFund, Circle, Blockdaemon, Kraken Ventures, and Figment Capital. It’s looking to raise an aditional $4M in their upcoming ICO. Hyperlane is focused in interoperability like other projects, but each is offering unique approaches.

The most relevant competitors ones would be:

• Wormhole — A generalized cross-chain messaging protocol that leverages a guardian-based security model with multi-chain verification.
• LayerZero & Stargate — Uses Ultra Light Nodes (ULNs) for efficient and secure cross-chain messaging, with Stargate handling liquidity bridging.
• Axelar — Aims for generalized cross-chain connectivity through a decentralized validator network and smart contract-based relaying.
• Chainlink’s CCIP — Integrates Chainlink Cross Chain Interoperability Protocol oracles and smart contract-based messaging to provide secure and reliable cross-chain interoperability.

The advancement of interoperability protocols is crucial for the evolution of a connected and efficient blockchain ecosystem, enabling diverse blockchains to communicate and interact seamlessly. Interoperability is essential for blockchain scalability and adoption.

Decoding the Fed’s Language

We can say that the Fed is the horseman of global monetary policy, as its decisions in the U.S. have implications that affect and determine the policies all over the world. In this sense, every Fed meeting or related news brings up a series of recurring terms and concepts whose meanings are important to understand.

The Federal Reserve System, a.k.a. the Fed, is the central bank of the United States and, as such, dictates the country’s monetary policy. Monetary policy refers to the decisions made to control the money supply and interest rates in an economy.

With that clarified, let’s go through a sort of Fed glossary:

• FOMC (Federal Open Market Committee) A committee within the Fed responsible for setting monetary policy in the U.S. It decides on interest rates and measures such as QE or QT. This is the key decision we anticipate whenever there is a Fed meeting.
• QT (Quantitative Tightening)
  The process by which the Fed reduces its balance sheet, decreasing the money supply. This is done by selling bonds or allowing assets to mature without reinvestment. Its goal is to restrict liquidity and control inflation.
• QE (Quantitative Easing)
  An expansionary monetary policy in which the Fed purchases financial assets, such as Treasury bonds and mortgage-backed securities (MBS), to inject liquidity into the economy and stimulate growth.
• Dot Plot
  A chart published by the Fed that shows the individual interest rate projections of the Federal Open Market Committee (FOMC) members for the future. It is key to understanding the direction of monetary policy.
• Fed Funds Rate
  The interest rate at which banks lend money to each other on a short-term basis within the Fed system. It is the key benchmark rate for the economy.
• Terminal Rate
  The highest level the Fed expects to raise interest rates before stopping increases in a tightening cycle.
• Neutral Rate (R*)
  The interest rate that neither stimulates nor slows down economic growth. It serves as a reference for determining whether monetary policy is expansionary or restrictive.
• Soft Landing
  The Fed successfully reduces inflation without causing a severe recession.
• Hard Landing
  The Fed raises rates aggressively, triggering a recession.
• Hawkish
  A strong stance against inflation, favoring higher interest rates and QT.
• Dovish
  A more flexible stance, favoring lower interest rates and QE to stimulate growth.

It is not only necessary to understand these terms, but analyzing each Fed meeting and statement is an art in itself. In these statements, every word carries a very precise meaning and is intentionally placed to emphasize, or downplay, what the Fed wants to communicate.

There are even analyses that track which words have changed from previous statements, as well as the tone and expressions of the Fed’s chief, currently Jerome Powell, during press conferences and Q&A sessions.

At the very least, understanding all of this is essential to having even a basic idea of what happens during each Fed event and why it affects (for better or worse) our investments.

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