Market update

Cointree Crypto Market Update - December 4th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$148,060 moving +4.25% at the time of writing. Meanwhile, Ethereum ends at AU$5,589 moving +8.90% week-on-week. On the Altcoin side, Solana +2.68%, Cardano +26.69%, and XRP with a huge +88.47% change.

🗞 What’s happening in the news?

🏦 Chainlink’s Surges 29%, Questioning XRP’s True ‘Bank Coin’ Status

Chainlink’s native token, LINK, has seen an impressive 120% increase in just 30 days.

This rally is partly influenced by recent developments in Chainlink’s ecosystem and comparisons with XRP. The coin surged as the community anticipated a more favourable political climate for crypto in the United States and progress in Ripple’s stablecoin project.

Some Chainlink supporters believe that LINK is the real “bank coin” due to its partnerships with traditional finance. Aylo, a researcher and adviser to DeFi protocol Kamino Finance, stated that XRP’s rally might draw attention to Chainlink’s collaborations with financial institutions.

Chainlink advocate Zach Rynes, also known as ChainLinkGod, said:

“Chainlink is working with the largest institutions worldwide to connect banks to blockchains. LINK is the true ‘bank coin’.”

Rynes also referred to XRP as a “banker-themed memecoin” that hasn’t gained significant traction. He emphasised that with the rise of stablecoins and central bank digital currencies (CBDCs), there’s less need for a bridge currency like XRP.

As the debate intensifies, one can’t help but wonder: will it be Chainlink’s growing network of global financial ties that makes it the true “bank coin,” or will XRP continue to grow and claim that title?

♠️ XRP Climbs to Third Place as Prices Soar

XRP has made a significant comeback, becoming the world’s third-largest cryptocurrency by market cap. The token’s price has increased by over 81% this week.

This surge has allowed XRP to surpass Tether (USDT), a major stablecoin, and previously overtake Solana (SOL) for the fourth spot.

Why this surge?

There are a few of reasons - however one stands out the most. This price jump most likely comes from a newfound optimism amongst traders, as they anticipate the departure of SEC Chairman Gary Gensler, which could lead to a more crypto-friendly regulatory environment in the U.S.

Why does this matter?

The SEC’s lawsuit against Ripple Labs in December 2020 accused the company of conducting unregistered securities offerings using XRP. With potential changes in regulatory leadership, investors speculate that XRP could see increased adoption in financial applications, including spot exchange-traded funds (ETFs).

Despite these gains, XRP is still below its all-time high of AU$5.90 reached in January 2018. However, it’s now closer to that peak than it has been in nearly seven years.

🎰 Polymarket Retains Loyal Users Post-Election

Polymarket, a crypto-based prediction market platform, has successfully retained its user base a month after the U.S. election. During the election, the platform saw a surge in activity, with open interest peaking just above AU$770 million on Election Day.

There were concerns that user engagement might drop after the election. However, data shows that open interest dipped to AU$152 million on 12th November but rebounded to AU$187 million by 30th November.

This resurgence brings open interest back to levels seen in mid-September, indicating sustained user engagement. Daily trading volumes have stabilised in the high eight-figure range, higher than pre-election figures.

Additionally, the number of active wallets has remained steady, hovering around 35,000 users.

While Polymarket faces legal challenges, there is optimism that these issues may be resolved if the incoming administration adopts a crypto-friendly regulatory approach.