Grayscale Solana Trust Premium Shoots 870% As SOL Price Hits $150

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12 Mar 2024

The major premium on Grayscale Solana Trust indicates robust institutional interest, signaling a potential Solana price move towards $200.

STORY HIGHLIGHTS

Grayscale Solana Trust heavy premium suggests strong institutional interest.
Solana's daily transactions surpasses some of the top blockchains like Ethereum.
If Solana bulls hold the price above $150, the next rally to $200 can come soon.

Solana, a competitor to Ethereum’s Layer-1 network, has demonstrated resilience by gaining an additional 10% in the last 24 hours. Currently, the Solana (SOL) price stands at $151, marking a 7.5% increase, with a market capitalization of $66.6 billion. Should the bullish momentum persist and SOL maintain a position above $150, there’s potential for a further rally toward the $200 mark.

Grayscale Solana Trust Premium Shoots 800%

Grayscale Solana Trust (GSOL) made headlines as its secondary market price soared to an unprecedented high of $540 on March 8, with the premium rate hitting an astounding 873%, according to data from Grayscale.

However, by March 11, the price of GSOL experienced a decline, settling at $317 at the closing bell. Despite the decrease in price, the premium rate remained remarkably high, standing at 472%. This volatility in GSOL’s secondary market price has drawn significant attention from investors and analysts alike.
This shows that there’s a strong institutional demand for Solana. As reported by CoinGape, the Solana investment products registered net inflows of $24 million last week.

SOL New Addresses Rise

Solana (SOL) is witnessing a remarkable surge in new addresses, reaching an all-time high. Data from The Block’s Data Dashboard reveals that the daily count of new addresses on the Solana network, based on a seven-day moving average, has surpassed 691,000. This surge in adoption is being interpreted as a strong indication of genuine user engagement on the network.
The increase in new addresses suggests more than just speculative interest, indicating that Solana is poised to achieve new all-time highs. Solana is already surpassing other major blockchains in terms of daily transactions, including Ethereum, Arbitrum, Optimism, BNB Chain, Tron, and Avalanche combined.

Additionally, Solana has experienced a significant surge in trading volumes on decentralized exchanges (DEXs), consistently exceeding $2 billion daily since the beginning of March. This surge in activity underscores the growing momentum and robust ecosystem surrounding the Solana blockchain.
The rise to $150 can be credited to the prevailing positive sentiment within the market. The continuous oscillation within the rectangular pattern presents investors with an opportunity to re-acquire SOL for potential long-term gains. Surpassing the resistance at $150 could trigger a significant rally fueled by FOMO, with investors setting their sights on the $200 mark.

Bitcoin ETFs Soar To $55 Billion, Double Volume In Just 2 Months

Bitcoin ETFs Soar to $55 Billion, Double Volume in Just 2 Months

Spot Bitcoin ETFs see an astonishing $55 billion growth in early 2024, with Fidelity and BlackRock leading the charge.

STORY HIGHLIGHTS

Bitcoin ETFs launched in January 2024 have amassed $55 billion in assets, doubling the expected trading volume.
Eric Balchunas of Bloomberg labels the Bitcoin ETFs' success as “simply absurd,” highlighting the standout performance of Fidelity's FBTC and BlackRock's IBIT.
The Bitcoin Spot ETF segment in the U.S. exceeded $50 billion in total liquidity volume in the past week.

The recent launch of spot Bitcoin ETFs in early January 2024 marked a significant milestone for the cryptocurrency industry. In an astonishing turn of events, these ETFs have amassed $55 billion in assets. Additionally, they registered a trading volume 100% larger than anticipated. This unprecedented success has drawn the attention of industry analysts and investors alike.
Eric Balchunas, a Senior ETF Analyst at Bloomberg, described the success of Bitcoin ETFs as “simply absurd.” The rapid accumulation of assets and the surge in trading volume surpassed expectations. Even if these were the year-end figures for 2024, Balchunas admitted, the success would be undeniable. Among the standout performers in this burgeoning sector are Fidelity’s FBTC and BlackRock’s IBIT products. These have notably outpaced their competitors in terms of performance.

First two months officially in the books (it's felt like six) and the ten bitcoin ETFs now have over $55b in assets with exactly double that in volume at $110b. If these were the numbers at the end of year I'd call them a success. To do it in eight weeks is simply absurd. pic.twitter.com/8YvzQZdYyJ
— Eric Balchunas (@EricBalchunas) March 11, 2024

Bitcoin ETFs Set New Records in Growth

The impressive performance of Bitcoin ETFs has had a substantial impact on the market. Just a week prior to this report, the BTC Spot ETF segment in the U.S. surpassed $50 billion in total liquidity volume. Products from Grayscale, Fidelity, and BlackRock are responsible for a significant portion of this volume. The rapid growth and acceptance of Bitcoin ETFs reflect a growing confidence in cryptocurrency as a mainstream investment option.
Balchunas highlighted the “absurd” success of these financial instruments. His remarks on social media underscore the widespread surprise at the swift adoption and performance of Bitcoin ETFs. The market’s response has been overwhelmingly positive, setting a precedent for future cryptocurrency-related financial products.

Hong Kong May Pioneer Ethereum ETF Trading

As Bitcoin ETFs continue to captivate the market, attention is turning towards the potential approval of Ethereum ETFs in the United States. However, the path to launch spot ETH ETFs faces challenges. Political tensions and the unclear security status of Ethereum are significant hurdles. Amidst these discussions, Hong Kong emerges as a potential frontrunner in approving spot Ether ETF trading.
Reports by Coingape suggest that Hong Kong is actively discussing opportunities for Ethereum ETFs. If successful, Hong Kong could set a precedent for other markets. This development is keenly watched by industry analysts and investors, signaling a possible expansion of cryptocurrency ETFs beyond Bitcoin.
Read Also: Bitcoin (BTC) Dominance Slips Below 50% as Market Liquidity Hits ATH

Bitcoin (BTC) Dominance Slips Below 50% as Market Liquidity Hits ATH

Bitcoin dominance has slipped below 50% as stablecoin liquidity hits All-Time High, triggering likely liquidity accumulation

STORY HIGHLIGHTS

Bitcoin dominance is below 5% despite recent price boom
Stablecoin liquidity is at its highest level per CryptoQuant data
More market boom are ahead with important fundamentals ahead for Bitcoin and Ethereum

Bitcoin’s (BTC) price is seeing a slip in its overall dominance amid an encompassing rally in the broader digital currency ecosystem with altcoins seeing encompassing valuation boosts.

Bitcoin Dominance and Market Liquidity

According to data from crypto analytics platform IntoTheBlock (ITB), Bitcoin dominance is pegged at 48% amid a recent rally to an All-Time High (ATH) of $72,850.71 that pushed its market capitalization above $1,425,765,296,329.
The IntoTheBlock data pegs Ethereum dominance at 17% amid the altcoin’s momentum push to retest its ATH of $4,891.70. Stablecoins saw a 5% dominance boost while other digital currencies profiled on the platform held the remaining 30% dominance sway.
Despite the massive Bitcoin dominance, the cryptocurrency has lost its gait a bit in the market with a slip from 50% benchmark. The market’s growth underscores how liquidity is spreading to other altcoins in the industry. According to data insights shared by analytics platform CryptoQuant, the crypto market liquidity marked by stablecoin valuation surged to its ATH.

Crypto Market Liquidity Surges, Surpasses All-Time High
“The increase in stablecoin supply can indicate purchase demand not only for #Bitcoin but also for other coins, and to that extent, the current market atmosphere can be interpreted as positive.” – By @DanCoinInvestor
Link… pic.twitter.com/mSzvkmbOog
— CryptoQuant.com (@cryptoquant_com) March 11, 2024

Per the data presented, the circulating supply of all Ethereum stablecoins comes in at 76,150,161,366.21, up by 0.44% over the past week. As explained by CryptoQuant researchers, the increase in the stablecoin supply indicates a bump in not just liquidity to purchase Bitcoin but for other altcoins as well.
Per the current outlook in the market, the CryptoQuant analysis pegs the overall outlook in the market as a positive one that might boost valuations across the board.

Multiple Growth Catalysts – Bitcoin and Ethereum

The Bitcoin valuation adjustment in relation to Ethereum over the coming weeks judging by how investors adapt the upgrades and events within both asset’s ecosystems.
The Bitcoin market is expecting the sustained capital inflow into the spot BTC ETF products, the investment asset that has been stirring a massive growth through supply crunch. The Bitcoin halving event is also slated for the next 36 days, an event that will reduce Bitcoin’s supply by 50%, further complementing the spot Bitcoin ETF liquidity crunch and likely push price higher.
For Ethereum, there is less than 48 hours to the launch of the Dencun Upgrade on the mainnet. This upgrade will result in a massive fee slash on top Ethereum Layer-2 platforms like Arbitrum and Base. With the slash, the adoption of protocols resident on Ethereum are bound to grow, placing enormous demand on the coin overall.
While the likely approval of spot Ethereum ETF remains a divisive subject at this time, the most important ETH fundamental hinges on the Dencun Upgrade. The bull market is considered to just be starting and will likely stir BTC and ETH price from their current levels at $72,572.56 and $4,060.83 to new highs.

Breaking: Coinbase Files First Brief In SEC’s Rulemaking Denial Lawsuit

Breaking: Coinbase Files First Brief In SEC’s Rulemaking Denial Lawsuit

Coinbase files opening brief in a lawsuit against the SEC, contesting the lack of clear regulatory guidelines in the cryptocurrency industry.
By Kelvin Munene Murithi11 hours ago

STORY HIGHLIGHTS

Coinbase sues SEC over unclear crypto regulations, citing refusal to consider a regulatory framework.
SEC's regulatory stance under Gensler criticized for enforcement-centric approach.
Outcome of Coinbase lawsuit may shape future of U.S. crypto regulation.

Coinbase, a U.S. cryptocurrency exchange, has officially filed its opening brief in a lawsuit against the Securities and Exchange Commission (SEC). This lawsuit has come about as a result of the SEC’s failure to set clear regulatory guidelines for the cryptocurrency industry, which Coinbase claims was a decision taken arbitrarily without adequate explanation.
The filing, submitted to the U.S. Court of Appeals for the Third Circuit, represents a major move in the ongoing war between the crypto exchange and the regulatory body.

Today @coinbase filed our opening brief in the Third Circuit challenging the SEC’s denial of our rulemaking petition. Tl;dr: the SEC’s denial is arbitrary and capricious, an abuse of discretion, and a violation of the Administrative Procedures Act. 1/7 https://t.co/v09uE2OHsb
— paulgrewal.eth (@iampaulgrewal) March 11, 2024

Coinbase’s Legal Argument

In the lawsuit, Coinbase argues that the SEC’s refusal to consider its rulemaking petition violates the fundamentals of sound administrative practice. Though the exchange had asked the regulatory body to formulate a formal framework that would provide an orderly regulatory path for digital assets, the SEC is said to have turned down the request in December, with a nonspecific reason for the rejection.
The lawyers of Coinbase, as a result, argue that such a refusal can’t be transparent since it leaves out individual characteristics of crypto assets and operates through certain imposed actions aimed at regulating the industry.
This lawsuit is unrelated to an ongoing lawsuit between Coinbase and the SEC in which the commission accuses the exchange of operating without proper registration and listing unregistered securities. Both cases, however, highlight issues within the cryptocurrency sector, such as undefined definitions and regulations by the regulatory authorities, especially regarding what crypto security would be considered.

Implications of SEC’s Regulatory Approach

The SEC, under Chair Gary Gensler, has been actively working on crypto-related regulations, albeit not in the form the industry had hoped for. The proposals under consideration could impact the operational model of businesses, such as defining what an exchange is and setting new requirements for investment advisors and DeFi platforms.
However, these attempts have been criticized for having the enforcement approach as the SEC’s main strategy rather than proactive rulemaking, which pushes the crypto sphere into uncertainty and chaos.
The result of the legal action against Coinbase might end up having major implications for the whole cryptocurrency industry and its regulation in the U.S. A ruling in favor of Coinbase could push the SEC to a more open and collaborative rulemaking, which would end up in a regulatory environment better suited for the distinct features of digital assets. Conversely, a win for the SEC may affirm the current enforcement-centric stance, creating ambiguity in regulatory practice.

Ongoing Debate Over Crypto Regulation

Coinbase’s lawsuit is part of a broader debate in the cryptocurrency industry and between the regulators about the best method to regulate this fast-growing area.
The argument is broader than the courtroom, with other parties, such as some Congress members and various regulators, having distinct opinions of the necessity of specialized crypto regulations This legal battle between Coinbase and the SEC is just one facet of a complex dialogue on how to balance innovation, consumer protection, and financial stability in the digital age.
Read Also: Millionaire Wallets Created by Bitcoin Rise Lower than Previous Bull Run

Israel To Introduce CBDC With Interest-Bearing Features

Israel to Introduce CBDC with Interest-Bearing Features

The Bank of Israel outlines a digital shekel with 24/7 transactions, privacy protection, and the unique feature of accruing interest.
By Maxwell Mutuma11 hours ago

STORY HIGHLIGHTS

The Bank of Israel plans to introduce an interest-bearing digital shekel CBDC.
The digital currency will ensure privacy by limiting central bank access to personal data.
Commercial banks may include the digital shekel in their liquidity buffers without interest.

The Bank of Israel recently revealed plans to support a new central bank digital currency (CBDC) with unique features. This includes the potential for the digital shekel to accrue interest. The announcement came on March 11, outlining a vision for a digital currency that incorporates cutting-edge financial technology and privacy considerations. The proposed CBDC aims to enhance the efficiency of payment systems within the country.
The digital shekel will operate on a two-tier model. It promises instant transactions available 24/7, support for multiple payments, and offline functionality. Moreover, the CBDC will have built-in limitations on balances. One of its most notable features is the option for it to become interest-bearing. This positions the digital shekel as a potentially attractive asset for consumers and investors alike.

Privacy and Interest Rate Dynamics

In its announcement, the Bank of Israel emphasized on the issue of privacy. The digital shekel’s architecture is designed to limit the central bank’s access to personal data. Specifically, the central bank will not have information on end users’ balances and transactions. This approach aims to strike a balance between operational transparency and user privacy.
The interest-bearing potential of the digital shekel introduces a novel aspect to the CBDC landscape. While commercial banks in Israel currently offer a 4.86% interest rate on fiat shekel deposits, the digital shekel would allow banks to include it in their short-term liquidity without interest. The central bank has outlined that the CBDC’s data structure will support holding restrictions and the application of interest tailored to user types and balance sizes.

Bank of Israel Cautious on CBDC Launch

Israel has been exploring the idea of issuing a digital shekel since 2021. However, as of the latest updates, no pilot tests have been conducted. The Bank of Israel has stated that due to the interconnectedness of the digital shekel system’s components, decisions regarding its implementation remain provisional.
The bank has also indicated that the move towards a digital shekel could accelerate if there’s an increase in stablecoin usage within Israel. Despite this potential catalyst, the central bank noted that stablecoin adoption for payments has not yet reached significant levels in the country. This cautious, measured approach reflects the complexity of introducing a CBDC and the need for thorough planning and testing.
Read Also: Millionaire Wallets Created by Bitcoin Rise Lower than Previous Bull Run

Millionaire Wallets Created By Bitcoin Rise Lower Than Previous Bull Run

Millionaire Wallets Created by Bitcoin Rise Lower than Previous Bull Run

The Bitcoin bull run has caused 1,500 new wallets to reach $1 million daily, but this amount is still lower than in past bull runs.
By Nausheen Thusoo12 hours ago

STORY HIGHLIGHTS

1,500 new wallets are hitting $1 million every day due to the Bitcoin bull run.
Crypto wallets securely store and safeguard Bitcoin and other crypto private keys.
At present market participants are predicting a further ascending trend in BTC prices.

Bitcoin prices have soared to hit their all-time high value in the last couple of weeks. As the buying momentum in the Bitcoin market paces up, so does wallet activity. According to Bloomberg, 1,500 new wallets are hitting $1 million every day due to the Bitcoin bull run. However, the number still stands below the previous 2021 bull run.

Bitcoin Boom Generates Millionaire Wallets

Bloomberg highlights that approximately 1,500 new “millionaire wallets” are reportedly being created every day as a result of Bitcoin’s historic climb, according to crypto analytics company Kaiko Research. Millionaire wallets are those that hold cryptocurrency worth $1 million. According to Forbes, Crypto wallets securely store and safeguard Bitcoin and other crypto private keys. They enable users to transmit, receive, and spend a variety of cryptocurrencies, including Ethereum, Ripple, Bitcoin, and many more.
The price surge in BTC came after the approval of Bitcoin ETF trading. Back in January when the spot Bitcoin ETFs received the green signal from the SEC to trade on Wall Street, it opened the gates of the crypto world to a relatively nascent audience that was fairly interested in investing in it. Nevertheless according to Bloomberg, compared to the previous bull market run in 2021, when almost 4,000 wallets hit the million-dollar threshold per day, the rate at which new millionaire wallets are being generated is slower. March 1st marked the year’s peak with 1,691 wallets.
Read Also: Ripple CEO: Only RWA Can Validate “Crypto is Back” Hype

Bitcoin Prices Right Now

Bitcoin prices have surged almost nearly 7% in the last week. At the press time, they stood at $72,145.62, being up nearly 4% as compared to the same time last day. The trading volume of the OG-crypto currency stood at $65.9 billion, being up 100%. BTC’s market cap has also ascended to hit a whopping $1.4 trillion. At present market participants are predicting a further ascending trend in BTC prices. A good example of this is Michael Saylor’s latest interview. Given its inherent advantages over traditional precious metals and its significant development potential, co-founder and former CEO of MicroStrategy Michael Saylor thinks BTC is going to outperform gold.