Crypto

• Since the Ethereum merge on September 15, 2022, Ethereum has dropped 48% compared to Bitcoin.
• This Sunday marked the two-year anniversary of the Ethereum merge, during which it switched from Proof-of-Work to Proof-of-Stake.
• As part of this transition, Ethereum’s issuance of new Ether was sharply reduced from 4% to less than 1% annually.

• This report discusses the recent focus on transaction ordering policies and value accrual mechanisms in Layer 2 (L2) networks like Arbitrum, Optimism, and Polygon. 
• MEV extraction across L2 networks has become significant, with over $3.9 billion in atomic arbitrage and $400 million in sandwich attacks occurring on major L2 platforms.
• The focus on value accrual highlights how different networks design transaction ordering mechanisms to balance user experience, efficiency, and the fair capture of MEV.

• ZetaChain simplifies Web3 by making blockchain interactions as easy as Web2, lowering barriers for non-technical users.
• It enables omnichain smart contracts, expanding developer capabilities and use cases across multiple blockchains.
• ZetaChain enhances DeFi with advanced cross-chain operations and supports non-smart contract chains like Bitcoin, broadening participation in decentralized finance.

• It is becoming increasingly clear that the first U.S. interest rate cut is just around the corner.
• The next Federal Open Market Committee (FOMC) meeting, scheduled for September 18, will determine the Federal Reserve’s (FED) next move on U.S. Dollar interest rates.
• The FED has strongly indicated its intent to reduce rates by at least 25 basis points, with a slim possibility of a 50 basis point cut, although this is highly unlikely following the release of a slightly higher-than-expected U.S. Consumer Price Index (CPI) yesterday.

• TradFi shows resilience, while crypto struggles—BTC is down, and ETH underperforms US Treasuries.
• Powell’s Pivot promises hope, but crypto markets await the real demand catalyst for recovery.
• Despite market weakness, short-term opportunities exist—learn to navigate price action and volume dynamics.

• Since the release of our Crypto Moves #42 on Friday, the market experienced further declines but has since regained some of its lost ground.
• Our outlook remains unchanged: at best, the market will move sideways throughout September, and at worst, we may see further declines.
• However, starting in October, the market will most likely show signs of life similar to those we saw in the early months of this year.

• Austin from Solana tweeted about Solana’s new network extensions
• Kyle Samani discussed how Solana rollups will differ from Ethereum’s
• Prasad observed developments in Solana rollups, including SVM separation and new apps like Magic Block and Spicenet.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• In Monday’s Crypto Crisp, we took a bearish stance, driven by a worsening economic outlook, with growth falling short of expectations and liquidity conditions looking grim for September.
• Since then, the crypto market has continued its decline.
• While we believe September will likely be challenging for digital assets, it is too extreme to claim the bull market is over.

• Bitcoin and other cryptocurrencies are experiencing significant price fluctuations
• Stablecoins like Tether and USDC have remained stable, providing a store of value
• The narrative around stablecoins as the killer app of crypto raises questions about reliance on existing financial infrastructure and potential systemic risks

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• As we enter a new month, it is a good time to reassess the market outlook.
• Throughout August, we held the belief that the crypto market would gradually recover from its early-month lows.
• While this expectation was partly fulfilled, we now recognize several indicators suggesting a downward trend or, at best, sideways movement throughout September.

• In last week’s Crypto Moves #40, we highlighted that we are on the verge of a significant surge in interest toward decentralized finance, or DeFi. We believe that only a select few DeFi-focused cryptocurrencies truly have the potential to benefit from this anticipated increase in DeFi interest, as this interest is likely to translate into greater monetary rewards for their token holders.
• As we have consistently emphasized, apart from Bitcoin, we only invest in productive cryptocurrencies – those that offer monetary rewards to their token holders, much like dividends from equities.
• In some cases, we may consider investing if we are confident that the cryptocurrency in question will soon become productive.

• Powell’s Pivot: A New Era for Crypto Markets as Interest Rates Shift. Discover how the Fed’s changing stance may ignite new demand in the crypto market.
• BTC’s Rally: Can It Sustain Its Momentum Amidst Shifting Economic Policies? Explore the critical market movements and the implications of BTC’s recent surge.
• Stablecoin Growth: The Catalyst for the Next Crypto Boom? Understand the vital role of stablecoins and credit in the future of crypto market growth.

• Over the weekend, both Bitcoin and Ethereum reached their highest levels since the crash three weeks ago.
• As we have emphasized repeatedly in recent weeks, we continue to anticipate a gradual yet steady recovery of the crypto market, with prices to return to their pre-crash levels over the next month.
• Now, let us dive into this week’s top news.