GM, and welcome to another edition of CoinStats Scoop! 🥂 In this week’s newsletter, you'll find:
The usual market overview featuring the latest updates on the consistently upward-trending market
Weekly updates on this week’s noteworthy news and developments
Analysis of Hong Kong’s upcoming adoption & the global case for crypto
Reads about internet identity and how crypto changes it for the better
Tweets & Memes capturing last week's highlights
Weekly wrap-up: predictions & takeaways.
Market Overview
In tune with the month's prevailing trend, crypto markets remained relatively calm until Sunday evening's fireworks. This sudden surge sparked remarkable gains, with BTC and ETH witnessing a notable week-long ascent of approximately 6%. 💪
In lockstep with the BTC and ETH gains, the entire crypto asset class surged higher this week, with the total crypto market cap gaining ~3% in the past 24 hours. Although 3% may appear modest at first glance, it represents a substantial market-wide gain of $3.4 billion when applied to the colossal sum of $1.2 trillion. This upward trajectory resonated across the entire crypto ecosystem, with tokens experiencing impressive rallies that outpaced even BTC and ETH.
Some of the tokens that made significant movements this week are highlighted below:
Infrastructure Tokens — AKT +65%, HT +14%, RNDR +13%, LPT +8%, FIL +8%, AR +7%, RUNE +5%,
Liquid Staking Tokens — RPL +7%, SD +14%, LDO +2%
DeFi — RBN +18%, STG +17%, JOE +14%, AAVE +9%, SNX +7%, COMP +7%,
Scaling Tokens — CFX +13%, ARB +12%, MATIC +11%, INJ +9%, KLAY +9%, AZERO +8%,
Meme Coins — BONE +25%, FLOKI +14%, FET +12%
Gaming Tokens — MAGIC +19%, RON +14%, IMX +9%, SAND +9%, ILV +6%, AXS +6%,
Alternative L1s — ADA +7%, SOL +7%, XRP +6%, ZCASH +7%,
Miscellaneous Tokens — NEO +22%, KAVA +14%, MASK +8%
NFT Tokens — BLUR +16%, LOOKS +9%
When the market is continuously green and positive gains permeate the entire ecosystem, it becomes advantageous to categorize tokens into specific sectors. This practice proves valuable in the long run, enabling quick identification of trending sectors/tokens, regardless of whether the ongoing rally persists.
When it comes to long-term prospects, the trajectory of crypto growth has never looked more promising. 🤑 While the markets have demonstrated unexpected activity this week, it remains crucial to maintain our focus on the future of the crypto space, even during periods of price stagnation. As Cobie says in the must-watch video below, “Find a way to stay interested, and it will pay!”
While the video below may appear to shed light on potential challenges ahead for the crypto industry, Cobie's insights provide invaluable lessons on timing and investing. Focus on the long-term trajectory of the crypto space, disregarding the short-term chart noise. Developing unwavering confidence in crypto, staying engaged during “bear markets” (read the CoinStats Scoop), and keeping a keen eye on expanding sectors are all vital aspects as crypto continues to flourish despite global macroeconomic headwinds! Whether the world is ready for it or not, the ongoing upward trend in crypto markets will inevitably reach a point where it becomes impossible for anyone to ignore. 😤
News & Developments
Hong Kong is positioning itself as a key crypto hub across the world, enabling retail investors to buy, sell, and trade select crypto assets from June 1st
Ava Labs, the core developer team behind AVAX, launches Ava Cloud, a Web3 launchpad for deploying and scaling no-code, fully managed custom blockchains
Base, Coinbase’s highly anticipated L2, is gearing up for a mainnet launch with safety and security as its top priorities
Tools for Humanity, the team behind Worldcoin, raises $115 million to continue building its decentralized open-source protocol
Dispersion Capital, a new venture capital fund focused on investing in crypto infrastructure protocols and tooling, raises $40 million
Beijing, the capital of China, released a Web3 Innovation and Development White Paper stating that the Web3 technology is an “inevitable trend for future Internet industry development”
JPMorgan, one of the United States’ largest financial institutions, says BTC could reach $45,000 in correlation with rising gold prices
Binance, the world’s largest crypto exchange, launches support for NFT loans allowing users to borrow ETH against “blue-chip” NFTs starting with BAYC, MAYC, and Azuki
Circle, the team behind the second most popular stablecoin USDC, launches a euro-backed stablecoin on AVAX
Matter Labs, the developer of the zero-knowledge L2 scaling solution zkSync, hires a former Activision Blizzard (one of the world’s top gaming companies) to boost zkSync crypto gaming
Stably, a fiat-to-crypto on-ramp service provider, plans to launch a dollar-backed stablecoin in Bitcoin’s burgeoning ordinals and inscriptions (NFTs on BTC) ecosystem
Hong Kong Embraces Crypto
Amidst the prevailing regulatory uncertainty in the United States, the rest of the world continues to embrace cryptocurrencies and recognize the benefits they offer to citizens. In last week's CoinStats Scoop, we highlighted the significance of Hong Kong's forthcoming legalization of crypto, anticipating a substantial boost for the entire ecosystem.
As the days passed, the probability of Hong Kong embracing cryptocurrencies grew stronger, instilling a sense of bullishness within the community. Although there was a fair share of speculation and assumptions surrounding the future of Hong Kong's involvement, recent developments have all but confirmed their active participation this week.
According to reputable sources and reports, it's confirmed that Hong Kong will be welcoming crypto retail trading starting from June 1st. As a testament to the gravity of this news, the renowned crypto exchange OKX has recently announced the listing of tokens that will be available to all retail investors in Hong Kong, effective June 1st. The tokens include BTC, ETH, ADA, MATIC, SOL, DOT, UNI, LINK, SAND, LTC, AVAX, AXS, ATOM, XLM, USDT & USDC
OKX announces that “Hong Kong users can buy, sell, and convert 16 major virtual assets through the app, including BTC, ETH, and several others. Tokens can be purchased with HKD, peer-to-peer or via ApplePay, Visa, and Mastercard through third-party providers.”
Hong Kong's embrace of crypto is a powerful reminder that cryptocurrencies are inherently global in nature. While the regulatory environment in the United States may currently present challenges, it's crucial to recognize that crypto transcends national borders and remains accessible to anyone willing to participate. 💪
The long-term implications of Hong Kong's legalization of retail participation in crypto may not be immediately reflected in price action, but it's another significant milestone toward the eventual global adoption of cryptocurrencies. While the short-term buying pressure and price effects may appear subdued, Hong Kong's public support of crypto reinforces the signal that the next decade+ will revolve around the expanding trends of internet usage and mobile payments, something that crypto is uniquely positioned to tackle. 😤
Read of the Week
“Identity First, Apps Second: Beyond Gated Web 2 Platforms” — @mattigags
This week's read is by our recurring guest, mattigags, an eternal crypto optimist, just like us at CoinStats. Matti, an experienced crypto veteran who has witnessed numerous market cycles, is an explorer of the crypto space and its future and a lead investor at the crypto venture capital firm Zee Prime Capital.
Matti discusses the blockchain's remarkable ability to offer insights and opportunities previously unimaginable in Web2. While Web3's social landscape still has a long way to evolve, Matti maintains an optimistic outlook on its future. The insights provided in the picture below represent the powerful nature of Web3 social and the ability of an ETH/SOL address to act as your one-stop shop for information, future airdrops, and identity across the Internet moving forward. 🤓
“Whether fungible or non-fungible, these open identifiers are not gated and already allow us to begin describing crypto social graphs. We are upgrading our ability to ascribe identifiers based on user behavior. Our blockchain (mostly ETH) addresses are slowly becoming our user profiles. The web will become natively social, and users will not have to rely on gated social media platforms to facilitate connection to other users. The innovation is about creating new bundles as one unbundles the old. Our guess is that creating bundles in Web 3 will require a solution that will solve complex coordination on the financial graph while integrating savvy social functions.”
Along with the key quotes highlighted above, here are the main takeaways from Matti’s article:
The Web3 Social will bring forth the bottom-up indexing of identifiers linked to users’ blockchain address
New apps will aggregate these verifiable identifiers, enabling users to connect and interact in a social-platform-like experience
As the Web3 social graph is inherently open, applications face challenges in building moats.
CoinStats Reads
In this edition of the CoinStats Reads, we've curated a collection of insightful articles covering a wide range of topics, including the significance of fundamental analysis in evaluating a crypto asset's potential before investing, all the amazing benefits of connecting your Metamask wallet to the Avalanche DeFi, and the comprehensive analysis of Chainlink's price predictions. Our goal is to equip you with the essential knowledge and resources to navigate the dynamic crypto landscape with confidence. Stay informed, empowered, and ready to seize opportunities with the CoinStats Blog.
Unlock Chainlink's price prediction with a comprehensive analysis based on a multitude of influential factors, ranging from project updates and market sentiment to emerging trends in the crypto and global economies, partnerships, integrations, and the dynamics of supply and demand. Explore expert opinions to decide whether to invest in Chainlink (LINK) in 2023.
Learn how to connect your MetaMask wallet to the Avalanche Network to gain access to the thriving Avalanche DeFi ecosystem. Experience the advantages of low-cost, high-speed transactions and delve into a world of exciting applications and possibilities with AVAX tokens.
Explore the crucial factors of fundamental analysis, such as blockchain technology, project dynamics, and financial metrics, to confidently evaluate the potential of any crypto asset before investing. Gain the knowledge and tools you need to navigate the crypto market with confidence and make well-informed investment decisions that align with your financial goals and risk appetite.
Tweets & Memes
Santi provides some great insights into investing and navigating the crypto market
For those active in the markets, it’s worth scrolling through the replies to gain wisdom 🤓
Despite facing some pushback, BTC Ordinals continue to top NFT volume charts
Wrapping Up
We'll wrap up this week’s CoinStats Scoop with the last tweet highlighting the continued growth of the Ordinals ecosystem, providing another tailwind to the overall crypto market growth. 💫
As usual, we provided the regular market update, including insights on navigating volatile markets, covered this week’s noteworthy news and developments with a focus on Hong Kong’s embrace of crypto, talked through identity within the crypto realm, and highlighted the tweets and memes showcasing another week of building toward a promising future for crypto. 💪
CoinStats will continue to guide you through the world of crypto and DeFi. We'll see you next week for another edition of CoinStats Scoop! 😎
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