Day: October 12, 2023

Ethereum’s validator queue clears out amid staking demand decline

Ethereum validator queue at an all-time low.
Staking demand wanes as wait times plummet.
At press time, the entry queue for Ethereum only had 377 validators.

The Ethereum network’s validator queue once jam-packed with applicants eager to participate in the blockchain’s proof-of-stake system, has reached an all-time low. Data reveals that the queue has dwindled to just 598 validators, a stark contrast to the staggering peak of over 96,000 seen in early June.

This significant reduction in the validator queue marks a remarkable development in the Ethereum ecosystem, as it has not been this empty since the major “Shapella” upgrade in April, which finalized Ethereum’s transition to a fully functioning proof-of-stake network.

Staking demand declines

The shrinking validator queue is indicative of the diminishing staking demand on the Ethereum network. At its peak, individuals seeking to become validators faced a daunting 45-day wait, driven by pent-up demand to stake Ethereum’s native token, ETH.

However, as of Thursday, the expected waiting time to add a new validator to the network has plummeted to less than four hours according to data on Validator Queue. This swift decline reflects a change in the staking landscape following the Shapella upgrade, which allowed for the withdrawal of staked ETH for the first time, reducing the risk for investors.

The Shapella upgrade had initially sparked a surge in staking activity on the Ethereum network, with ETH staking growth described as “exceptionally strong” following Ethereum’s transition to proof-of-stake in September 2022. However, the initial fervour seems to have cooled in recent times.

The decline in staking demand has resulted in a decrease in staking rewards, which have fallen from 5%-6% earlier in the year to around 3.5%. This is partly due to lower network activity generating fees and an increasing number of stakers.

In comparison to other prominent proof-of-stake networks, Ethereum’s staking ratio, measuring the share of tokens staked relative to the total supply, has grown to over 22% since April. Nevertheless, it still lags behind competitors like Solana, Cardano, and Avalanche, with their staking ratios ranging from 53% to 69%.

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Memeinator vs. Sushi price prediction: Buy MMTR or SUSHI?

Sushi price is near the key support level of $0.50 while Memeinator is set to jump to $0.0118.
But what’s the price prediction for SUSHI and MMTR?
What makes Memeinator stand out among meme coins?

Sushi is a top DeFi protocol, whose governance token SUSHI reached a high of $23.38 in May 2021. Memeinator on the other hand is a new meme cryptocurrency that recently launched its presale. The project’s approach in the quest to disrupt the meme world is attracting enthusiasts, with over $680k raised just days after it went live.

But what’s the outlook for these two projects? Let’s dive in for more.

What is Memeinator?

Memeinator is the “Terminator” of the crypto meme world. It comes with a mission – marshalled from the future of memesphere to bring order and clarity to the market by taking down weak meme tokens. To achieve this mission, the Memeinator has tapped into artificial intelligence to create a Memescanner that will identify and bring into view worthless memes for judgement. A target of $1 billion market cap means many will fall.

This is expected to start after the final presale stage, with the roadmap including the launch of the Meme Warfare game. Expanding on meme utility in this way adds to the unique value proposition of Memeinator that has the crypto community excited and looking to make an early kill via the presale.

Other than the game, other enticing aspects of the Memeinator that add to MMTR’s utility is the support for staking and NFTs. There’s more in an advertised $250k Virgin Galactic trip to space, more of which can be gleaned from the presale page and via the project’s social media channels.

What is Sushi?

SushiSwap is a community-driven DeFi protocol that offers opportunities such as yield farming, staking and liquidity providing. It’s an automated market maker (AMM) powered by smart contracts.

The project was announced in September of 2020, with the native governance token SUSHI giving holders the right to vote on ecosystem initiatives. Holders also earn from the fees collected.

Sushi price prediction

SUSHI traded to lows of $0.47 in 2020 before skyrocketing during the last bull market to break above $23 in May 2021. However, it’s edged lower amid the crypto winter and has lost 97% of that value given the current price. Negative sentiment remains, but if bulls hold the long-term support zone at $0.50, a rebound to $1 might signal fresh momentum.

With several innovative products, SushiSwap has become one of the key DeFi platforms in the market. As part of the latest development plans, the Sushi team has organised an AMA on X. The event is scheduled for October 16 at 10 pm UTC and will feature Origin DeFi, Boba Network, PopcornDAO, and others in a discussion centred on continued building even as the bear market drags.

Memeinator price prediction

Memeinator will be in presale for 29 stages, a period that will see the price of MMTR rise to $0.049. Currently, the token sale is at $0.0112 with the presale at stage three. Over $687k has been raised so far and with the price set to jump to $0.0118 at the next stage, gem hunters might yet get this at what looks like a mighty bargain. If the token launches as expected during the next bull market, it could target $1 in 2024.

Why Memeinator?

While Sushi remains one of the altcoins to watch in the market, the potential for far more gains starting from the presale suggests Memeinator could be a stand out buy between these two.

The Memeinator is quickly progressing through its initial development phase, with a strong community set to grow with the launch of MMTR across the market in phase two of the project. That will also include partnerships, staking and NFTs launch, with weaker meme tokens annihilated as MMTR targets the $1 billion market cap. The roadmap lists this as phase three of the project.

Learn more here.

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USDR liquidity crisis costs a trader 131,350 stablecoins

USDR suffered a liquidity crisis, revealing its illiquid assets.
A trader lost everything swapping USDR for USDC during the crisis.
An MEV bot profited $107,002 from the arbitrage opportunity.

The Real USD (USDR) stablecoin recently found itself in the eye of a storm, revealing the pitfalls of the DeFi space.

A liquidity crunch on October 11 led to a trader swapping 131,350 USDR for 0 USDC, incurring a complete loss. Here’s what transpired:

The USDR liquidity crunch

USDR, a real-estate-backed US dollar stablecoin, faced a liquidity crisis when users requested over 10 million stablecoins in redemptions.

Although it was advertised as 100% backed, a shocking revelation emerged: less than 15% of its $45 million in assets were backed by liquid TNGBL tokens, with the majority relying on illiquid tokenized real-estate assets.

The illiquidity of these real-estate assets stemmed from their tokenization under the ERC-721 standard. This unique standard made it nearly impossible to fractionalize these assets, creating a liquidity conundrum for investor redemptions. Furthermore, the underlying real estate properties could not be swiftly sold to meet withdrawal requests. Consequently, the USDR treasury was incapable of honouring these redemptions, resulting in a crisis of confidence among investors.

Why USDR depegged despite being fully backed: Using Illiquid asset backing liquid Asset

– USDR is 100% backed. 50% of them come from stablecoins and the remaining comes from Real-Estate

– When there is a bank-run (Huge Redemption of USDR), the Stablecoin liquidity in the…

— Tom Wan (@tomwanhh) October 12, 2023

The costly DEX swap

During the USDR liquidity crisis, a trader attempted to withdraw their USDR holdings by executing a swap on the BNB Chain via the decentralized exchange (DEX) OpenOcean. The catch was the severe depegging of USDR, which had plummeted nearly 50% from its par value due to the liquidity crunch.

In a disastrous turn of events, the trader received a grand total of 0 USDC in return for their 131,350 USDR. This meant a complete and crippling loss on their initial investment. In the volatile world of DeFi, where slippage rates on DEXs can reach up to 100% during periods of poor liquidity, such incidents serve as a stark reminder of the risks at play.

Due to the decoupling of the stablecoin USDR, this guy accidentally swapped 131,350 $USDR for 0 $USDC while panic selling $USDR.

And a MEV bot successfully arbitraged $107K.

— Lookonchain (@lookonchain) October 12, 2023

The story took an interesting twist as a maximal extractable value (MEV) bot swooped in to seize an arbitrage opportunity. Recognizing the substantial price discrepancy, this automated trading algorithm profited handsomely, netting a staggering $107,002 in gains through a well-timed arbitrage trade.

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Mastercard’s successful CBDC wrapping trial for NFTs

The trial involved wrapping CBDCs for use in purchasing NFTs on blockchains.
Mastercard’s Multi Token Network played a pivotal role in the trial.
There is a growing importance of CBDCs and blockchain in the financial industry.

In a groundbreaking development, Mastercard has announced the successful completion of a trial involving wrapping central bank digital currencies (CBDCs) for use in purchasing nonfungible tokens (NFTs) on blockchains, particularly Ethereum.

This milestone experiment demonstrates the fusion of traditional financial systems and blockchain technologies, promising innovative possibilities for commerce.

The CBDC wrapping trial

Mastercard’s trial was executed with the Reserve Bank of Australia (RBA), Australia’s Digital Finance Cooperative Research Centre CBDC, Cuscal, and Mintable. The primary aim was to assess the feasibility of integrating CBDCs into blockchain platforms. The live test involved a CBDC owner buying an NFT listed on Ethereum.

The process was straightforward yet pioneering. It “locked” a predetermined quantity of a pilot CBDC on the RBA’s pilot CBDC platform, creating an equivalent amount of wrapped pilot CBDC tokens on the Ethereum blockchain.

Notably, security measures were in place to ensure the transaction’s legitimacy. The Ethereum wallets of both the buyer and seller, along with the NFT marketplace’s smart contract, were meticulously vetted, permitting only authorized participants. This demonstration showcased the ability to exercise controls, even on public blockchains.

Role of Mastercard’s Multi Token Network

Mastercard’s Multi Token Network, introduced in June 2023, played a pivotal role in enabling this transformative trial. This network seamlessly bridges payment technology with blockchain, offering a dynamic way to link digital currencies and NFTs.

Zack Burcks, CEO and founder of Mintable acknowledged the potential of this collaboration, emphasizing its ability to combat fraud, enhance security, and streamline record-keeping.

In a broader context, the Reserve Bank of Australia has shown keen interest in the potential of an Australian dollar CBDC. It envisions the CBDC facilitating complex payment arrangements and fostering financial innovation that fiat currencies cannot replicate. However, it’s noted that further research is essential to fully comprehend the benefits and implications of such a digital currency.

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Dogecoin and Shiba Memu outlook as key DOGE metric stalls

Shiba Memu is a new meme coin that’s leveraging the AI revolution.
The project is in presale and has raised more than $3.8 million.
Dogecoin (DOGE) tops meme coins buts its price has struggled as daily transactions sink.

Dogecoin is struggling to keep prices above a key support level even as the leading meme cryptocurrency records a sharp drop in daily transactions. Meanwhile, the Shiba Memu (SHMU) presale has hit $3.8 million as price increases to $0.0334.

Here we examine the price outlook for the two tokens amid a broader lull in a crypto market that’s mirroring market reaction to the latest US inflation report. Stocks traded mixed after the Consumer Price Index (CPI) showed prices rose 0.4% versus 0.3% expected in September, with a 3.7% increase over the past year to match that of August.

Shiba Memu – an AI revolution for meme coins

Shiba Memu is a new cryptocurrency that combines the increasingly powerful artificial intelligence (AI) narrative and blockchain to bring a unique approach to crypto memes. The native token SHMU, launched on the Ethereum blockchain, will have a supply of 1 billion tokens, 85% of which is available to the community via a presale.

With AI at the heart of this new meme coin, the idea of a self-sufficient crypto ecosystem is envisioned. The Shiba Memu whitepaper outlines a project that’s unlike other meme coin projects – one that’s leveraging AI technology to create a powerful marketing system that doesn’t rely on celebrity or influencer hype to gain traction.

The AI dashboard will take care of this, with SHMU holders benefiting from additional utility as token staking and provision of liquidity to the Shiba Memu pool.

Dogecoin price: DOGE outlook as daily transactions sink

Dogecoin leads meme cryptocurrencies with a market cap of nearly $8.2 billion. DOGE’s status as the sector’s OG has seen it attract support from among others, Tesla CEO and X (formerly Twitter) owner Elon Musk.

However, the cryptocurrency has struggled to break to the coveted $1 level – its all-time high of $0.73 was reached in May 2021. Currently, Dogecoin price has settled below $0.58 with the 5.6% dip in the past 30 days indicative of this fact. It an outlook that echoes Bitcoin’s recent lull since the breakdown from $30k.

One indicator of the performance over the past few weeks is the 7-day average of Dogecoin’s daily transactions. According to on-chain data, the network has been recording an average of 37.3k daily transactions — which IntoTheBlock says shows a sharp decline from highs of 2.1 million in June and “a secondary spike of 616k in July.”

Is Dogecoin going to see a surge network activity as was seen in the previous quarter? And can this be reflected in DOGE price? 

The current outlook suggests this scenario is possible, with investors likely to watch out for an upcoming event around the dog meme that inspired Dogecoin’s creation. That event is scheduled for November 2. If price picks up in a bull market amid other positive triggers, the key short term target remains $1.

Shiba Memu price: can SHMU reach $1 in 2024?

As noted, Shiba Memu has attracted over $3.8 million from global investors since its presale went live. The presale price has increased daily at 6 pm GMT, a novel approach that has seen the participation spike as early birds scoop SHMU at what’s likely to be bargain buys.

Price is set to jump from today’s $0.0334 to the final presale price of $0.0379. When the tokens launch on crypto exchanges, increased demand could unlock upside moves similar to what has greeted other meme coins in the market.

If Shiba Memu does a 2x after its launch, that could push its price to above $0.1. Then, with projections for crypto and AI huge going into 2024, SHMU could trade higher and target the $1 level. However, this could depend on prevailing market conditions and other factors specific to the project.

To buy Shiba Memu or learn more, visit the project’s presale page.

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Marathon Digital (MARA) stock price death cross forms as BTC recoils

Marathon Digital (NASDAQ: MARA) stock price continued plunging this week as Bitcoin resumed its sell-off. The shares crashed to a low of $7.85 on Thursday even as American stocks continued retreating. It has dropped by more than 60% from the highest level in September.

The key driver for Marathon stock price is Bitcoin’s price action. The same applies for other Bitcoin mining companies like Riot Platform and BitDigital (BTBT). These stocks jump when BTC is in an uptrend and vice versa. This happens because these companies make money mining and selling Bitcoin in the open market. 

It also happens because these firms hold substantial Bitcoin in their balance sheet. Therefore, MARA stock price has plunged as Bitcoin has remained in a consolidation phase in the past few months. It jumped to above $28,000 earlier this month and then retreated sharply to about $26,000.

The ongoing Bitcoin sell-off should not worry investors since it is in the range it has been in the past few months. Nonetheless, traders should pay a close attention to last month’s low of $24,800. A volume-supported move below that level will signal that there are still more shorts left in the market. 

The next key catalyst for Marathon Digital stock price will be the company’s earnings scheduled for November 14th. It will also keep an eye on Bitcoin prices and earnings by other Bitcoin mining stocks.

Meanwhile, MARA stock has formed a death cross pattern, which forms when the 200-day and 50-day moving averages make a bearish crossover. The pattern happened on September 28th and is a sign that the shares will continue falling in the coming weeks.

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CoinMarketCap’s new ChatGPT plugin offers personal analysis to users

Key takeaways

CoinMarketCap has launched a new ChatGPT plugin.

The plugin will allow users to gain access to up-to-date data directly sourced from CoinMarketCap.

CoinMarketCap launches a ChatGPT plugin

Crypto data aggregator CoinMarketCap, owned by crypto exchange Binance, announced the launch of its ChatGPT plugin on Wednesday, October 11th. 

In its blog post, the firm confirmed that it has developed a novel plugin for the large-language model (LLM)-based AI chatbot ChatGPT. Users can access the feature by signing in to their ChatGPT Plus account and enabling the plugin.

Thanks to this feature, CoinMarketCap users can now gain access to up-to-date data directly sourced from CoinMarketCap. Thus, enabling users to keep up with the rapidly changing crypto landscape.

Using the CoinMarketCap ChatGPT plugin doesn’t attract additional fees aside from the $20-per-month subscription fee for ChatGPT Plus

The plugin offers personal analysis to users

CoinMarketCap explained that the plugin will operate as an AI crypto analyst. The plugin is capable of answering complex queries instantly by tapping into CoinMarketCap’s real-time crypto data, all through simple chat prompts.

Thanks to this feature, questions that previously required time-consuming data analysis can now be answered instantly, the team explained.

While commenting on this latest cryptocurrency news, David Salamon, CoinMarketCap’s Director of Product, said,

“We’re very proud of what we’re delivering with the CoinMarketCap plugin for ChatGPT. Combining AI with a real-time, comprehensive data source like CoinMarketCap will transform the way people do research. It’s like giving every crypto investor their own personal Crypto Analyst.”

CoinMarketCap remains one of the leading data aggregator platforms for cryptocurrency users. It currently provides users with data on more than 1.8 million cryptocurrencies and 665 crypto exchanges. 

Its parent company, Binance, continues to expand its base despite its ongoing regulatory challenges. Last month, Binance partnered with Mitsubishi UFJ Trust and Banking Corporation (MUTB) to explore the possibility of issuing a stablecoin in Japan.

The cryptocurrency exchange also exited the Russian market last month and sold its business there to CommEX.

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