Market update

Cointree Crypto Market Update - November 13th 2024

Market report for traders

🔮 BTC and altcoins

Over the last 7 days, Bitcoin ends at AU$134,780 moving +28.72% at the time of writing. Meanwhile, Ethereum ends at AU$4,982 moving +36.11% week-on-week. On the Altcoin side, Solana gains +29.22%, Cardano +74.84%, and XRP +40.68%.

🗞 What’s happening in the news?

🚀 Ethereum's 'Beam Chain': A New Era Unveiled

Ethereum is gearing up for a big transformation. Justin Drake, a researcher at the Ethereum Foundation, introduced a new consensus layer proposal called "Beam Chain" at Devcon on Tuesday. This ambitious plan aims to usher in the "ZK era" of Ethereum, focusing on faster transactions, lower staking requirements, and enhanced security.

Key Highlights:

Faster Block Times: Beam Chain proposes reducing slot times from 12 seconds to just 4 seconds, accelerating transaction speeds.
Lower Staking Barrier: The minimum requirement to run a validator node could drop from 32 ETH to 1 ETH, making network participation more accessible.
Advanced Security: By integrating SNARKs (Succinct Non-interactive Argument of Knowledge), Ethereum aims to become post-quantum secure, safeguarding against future technological threats.

Drake emphasised community involvement, stating:

"It's early days, and your participation is key should this new approach to tackling the consensus layer roadmap ever achieve rough consensus."

The roadmap suggests starting specifications next year, with building from 2026 and thorough testing until 2027.

🇩🇪 German Government Misses Out on AU$2.5 Billion by Selling Bitcoin Early

It's true. The German government missed out on up to AU$2.5 billion by selling its Bitcoin holdings just months before a significant price surge. Back in July, they sold 50,000 BTC for approximately AU$4.5 billion (an average of AU$90,000 per Bitcoin). Today, that same stash would be worth around AU$7 billion, marking a 56% increase.

Not an Isolated Incident:

United States: The U.S. government has sold 195,091 BTC over the past decade, netting AU$574 million. At current prices, this would be nearly AU$26 billion, representing an opportunity cost of AU$25.4 billion.
Future Strategies: Former President Donald Trump has indicated plans to hold onto seized Bitcoin instead of selling. Additionally, Senator Cynthia Lummis proposed a bill for the U.S. to purchase 1 million BTC, currently valued at AU$133 billion.

Senator Lummis commented:

"Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation’s standing as the global financial leader for decades to come."

🔮 Solana Surpasses Ethereum in Economic Metrics for the First Time

Solana has been achieving some big milestones - this time by surpassing Ethereum in key economic indicators during October. According to a report by hedge fund Syncracy Capital, Solana's Real Economic Value (REV) reached 111% of Ethereum's REV, a dramatic increase from just 1% in the same month last year.

Driving Factors:

Transaction Fees and MEV Tips: REV includes these components, indicating heightened economic activity on Solana.
Total Application Revenue (TAR): Solana's TAR was 109% of Ethereum's, showcasing the network's growing ecosystem.

While some attribute this surge to speculative memecoin trading, Syncracy Capital views it positively. They stated:

"This phenomenon of on-chain speculation is exactly what happened during the birth of DeFi on Ethereum in 2020. In either case, what's important is that experiments are conducted and infrastructure gets tested."

Despite past outages—including a five-hour interruption in February 2024—Solana is attracting significant projects. It now hosts nine "unicorns" (startups valued over AU$1.5 billion), compared to Ethereum's 18, indicating robust growth and investor confidence.

📖 What we’ve been reading

Dogecoin ETFs Aren’t as Crazy as They Sound

The meme coin was created as a joke in 2013, but analysts say Dogecoin has a serious chance at making a Wall Street debut.

Trader who lost $26M to copy-paste error says it’s been ‘max pain’

A trader who lost $25 million after accidentally copying and pasting the wrong transfer address is offering a $2.5 million reward to white hackers in the hopes of getting their money back.

Charts Rocket 48% as Traders Target Doge $1 Price Next

Much of the current rally has been fueled by bullish sentiment around the meme’s endorsement by technology entrepreneur Elon Musk in the Trump administration.