Is Ethereum Over?
Let’s Dive Into It!
Happy Monday dear subscribers! In today’s Newsletter, Some are concerned about Ethereum…
In today’s bulletin, we are covering:
- Surfing the Market, with analysis about Big Caps Index and AI Index
- Don’t miss the News about SOL is Boosted, and Vitalik is concerned
- MASA is under the spotlight.
- Short article about CPI data & interest rates, two sides of the same coin
- Our selection of the best Gems on X
Nice consolidation over the weekend and we continue building up momentum. Price action continues following the provided projection 2 weeks ago:
Meanwhile the AI Index continues consolidating on the same monthly range. Really low volume, it needs more fuel to attack the $10,5 resistance range, which is the key to trigger the bull reversal:
Solana (SOL) Surges Amid Multiple Catalysts, Eyes New Highs
Solana’s native token (SOL) is experiencing significant gains due to multiple catalysts such as meme coin and DeFi activity, an upcoming network upgrade, and increasing interest in restaking.
- Solana’s native token (SOL) outperforms other digital assets, showing significant price gains.
- Multiple catalysts drive SOL’s performance: meme coin trading, stablecoin volumes, and DeFi activity.
- Upcoming network upgrade, including the highly anticipated Firedancer by Jump Crypto, aims to improve Solana’s performance.
- Growing interest in restaking within the ecosystem is contributing to SOL’s strength.
- Experts predict SOL could reach new record highs, possibly retaking the $200 level soon.
SOL recently hit $170, showing strong performance in the cryptocurrency market.
Vitalik Buterin Addresses Centralization Concerns in Ethereum
Vitalik Buterin, co-founder of Ethereum, addressed criticisms related to the centralization of the blockchain in a detailed blog post. He discussed three main issues: MEV (miner or maximal extractable value), liquid staking, and the hardware costs of running a solo node.
- Vitalik Buterin responded to criticisms about Ethereum’s centralization.
- He discussed issues around MEV, liquid staking, and hardware costs for solo nodes.
- MEV minimization and quarantining have centralization risks but promising solutions.
- The low number of solo Ethereum stakers is due to complexity, hardware requirements, and a 32 ETH minimum.
- Reducing node hardware requirements could involve innovations like Verkle Trees and EIP-4444.
- Buterin advocates for addressing these challenges to maintain Ethereum’s uniqueness and decentralization.
Buterin acknowledged these concerns but expressed optimism that they could be overcome with proper solutions.
MASA
Today under the spotlight there is MASA, “the world’s personal data network”
The objective of this AI and Big Data project is powering users to own, share and earn from their data. Just like that, anyone with an internet connection will be able to contribute their data and earn passive rewards without compromising their identity. But How?
The Masa Network’s data can be used by developers to train AI models, build apps, marketing and advertising, and more. This is all done privately and securely with Zero-Knowledge technology, in this particular case with ZK Soulbound Tokens (zkSBTs).
The $MASA token is the native utility token that powers the Masa Network. It has several key functions:
- Data supply incentivación.
- Data use payment.
- Personal data management.
- Node operators rewards.
- Network governance.
Looking at the tokenomics, there are 18% of the total token supply (1.59 Billion) in circulation with a market cap of $23.5 Millions. According to the next graphic the total supply will be in circulation by Jan 2028.
This project managed to raise over $17 Millions form different funding rounds (50%) and recently in the public sale (50%).
If you want to find more about the Masa project this are the official Twitter and Website.
Have a great week and see you next time!
CPI data & interest rates, two sides of the same coin
The boring definition is that the CPI (Consumer Price Index) is a measure of the average price change of a basket of consumer goods and services. But why is it such an anticipated measure every month and how it impacts market prices?
The CPI is key to estimating a country’s inflation level, and as we know, the US’s is the most important because if God exists, he operates on Wall Street.
And since inflation is closely related to monetary policy, i.e., raising or lowering interest rates, the CPI is a key data point used by central banks to adjust rates over time.
So, on one side of the coin, we have the CPI and on the other, interest rates. When inflation rises, central banks raise interest rates to try to curb inflation. This is because with high rates, borrowing money becomes more expensive, leading to a cooling of activity, which translates into lower inflation.
I know, it’s still boring. So let’s get to the fun part, its impact on the markets!
Stock markets tend to respond in the opposite direction to interest rates, i.e., rates rise, stocks fall because we can invest money at those high rates and get high returns with very little risk. Conversely, low rates mean that risk appetite increases in search of above-average returns, and this tends to push stocks higher.
And crypto is no exception; it’s perhaps the market most affected by interest rates since they are risky investments. That’s why we see rapid reactions when the CPI data comes out every month because this will influence the Fed’s decisions to raise or lower rates.
Let’s see what happened in the past, taking January as an example:
Clearly, volatility increases around CPI data every month.
If we analyze the volatility around FED meetings where monetary policy decisions are made with rate hikes or cuts, we see that it tends to decrease since there are usually certain indications in the weeks prior based on statements from its members, and it tends to be more predictable. The CPI is more of a shock data.
With this, we see that the crypto market is increasingly influenced and related to the traditional market. What was once a mere outsider is now another player, and we could say that its relevance increases each year to the point that it is already traded as another instrument through ETFs.
Therefore, it’s no longer just about looking at the crypto environment but also about having a broader vision considering not only the traditional market but also the monetary policy of the US and its implications.
We could reflect this as a great butterfly effect where a minimal decision can influence the other end of the world… or the market!
Is the Market Broken?
A Different Cycle
The Bull Case for Silver
Don’t sleep on this market, lots of opportunities to come, see you next week!
