Crypto Daily Alpha - September 6, 2024

Doc here, bringing you the freshest insights and news in today’s Crypto Daily Alpha, keeping you sharp and ready to take on the markets.

Project Updates

Eigen Layer & EIGEN Token Claims Deadline Approaching
Eigen Layer, a key player in the blockchain space, has set a crucial deadline for its users: September 7th, 2024. This marks the end of the claim window for the EIGEN token, part of their broader initiative to distribute tokens via a "stakedrop." Those engaged with staking or using DeFi platforms like Kelp, Pendle, or Equilibrium before a set date are eligible to claim these tokens. The EIGEN token, while non-transferable for now, holds future potential in enhancing decentralised security and validation services, making it a pivotal part of Eigen Layer’s ecosystem.

Fractal Mainnet Set to Launch on September 9th
Fractal is preparing for a major milestone with its Mainnet launch scheduled for September 9th, 2024. This transition from development to a fully operational network is expected to bring innovations in scalability, interoperability, and consensus mechanisms, addressing key challenges within the blockchain space. Developers, investors, and users are watching closely, as the Mainnet's debut could pave the way for Fractal’s broader adoption.

Tether partners with Reku for crypto literacy roadshow
Tether has partnered with Reku to launch a seven-month educational roadshow across ten major cities in Indonesia, starting in September 2024 and continuing until March 2025. This initiative aims to improve crypto literacy and blockchain knowledge in one of the fastest-growing crypto markets. The roadshow is designed to reinforce adoption, helping to educate communities on the potential and risks of blockchain technology.

Infinity AI: Pioneering AI-Generated NFTs on Bitcoin Layer2
Infinity AI is emerging as the first AIGC (Artificial Intelligence Generated Content) platform on the Bitcoin ecosystem, now in its testnet phase. The project enables users to generate and mint NFTs on the Bitcoin Layer2 network, blending AI and blockchain in a cutting-edge innovation. With platforms like X buzzing about users earning $InfinityAI points and inviting others to join, this project exemplifies how AI can revolutionise creative expression and community engagement within the blockchain space. As AI’s influence on Web3 technologies continues to grow, Infinity AI is positioned at the forefront of this transformative trend.

News

Telegram Introduces Private Chat Moderation Features
Telegram has updated its policies to enable moderation in private chats, a significant move towards enhancing security on the platform. According to CoinDesk, this new feature allows greater oversight in managing content, raising questions about the balance between user privacy and security. This change could have long-term implications for crypto communities that rely heavily on Telegram for communication and coordination.

Pavel Durov Addresses Arrest for the First Time
In a statement reported by Cointelegraph, Telegram’s founder Pavel Durov has broken his silence regarding his recent arrest. He provided clarity on the situation, addressing concerns about how this legal challenge could impact Telegram and its users, including those in the crypto space. His response has shed light on the ongoing discussions surrounding legal issues and their broader implications for technology and crypto.

Regulation Updates

UK Crypto Registration Failures
The UK Financial Conduct Authority (FCA) recently reported that 87% of crypto firms failed to secure registration due to inadequate anti-money laundering (AML) controls. Only 4 out of 35 firms received approval. This underscores the importance of stronger compliance standards as regulatory scrutiny tightens. The FCA’s stance highlights the ongoing challenges in aligning crypto services with traditional financial regulations, a trend likely to continue shaping the market landscape.

Political and Crypto Convergence

Kama Memecoin Surges Following Putin’s Endorsement of Kamala Harris
In a surprising twist, the Kama Memecoin surged 10% after an endorsement from Putin of Kamala Harris. This unlikely endorsement has sparked significant market interest, as political events often have unpredictable effects on the value of cryptocurrencies. The surge in Kama highlights the strong interplay between political figures and crypto assets, especially in the volatile memecoin space.

Security and Scams

DOJ Investigates Fake AI-Generated Music in Streaming Platforms
The Department of Justice (DOJ) is investigating the use of fake AI-generated songs in streaming services, according to Decrypt. This probe focuses on the authenticity of streaming data and its impact on the music industry, raising concerns about the broader implications of AI-generated content. This case underscores the increasing need for regulatory oversight in AI-driven innovations, including how they affect digital and blockchain-based content.

Airdrop Opportunities and Community Engagement

Unstoppable Domains Expands to Base, Hinting at Future Airdrops
Unstoppable Domains has expanded its platform to Base, offering new opportunities for users and developers. This expansion signals the potential for future airdrops, particularly for early adopters looking to engage with the platform at its growth stage. For those seeking ways to accumulate tokens, staying active within the Unstoppable Domains ecosystem could prove rewarding in the near future.

Claim EIGEN Tokens
As mentioned in the project update section of this newsletter, the claim window for EIGEN tokens from Eigen Layer’s stakedrop ends on September 7th, 2024. Users involved with staking or specific DeFi platforms like Kelp, Pendle, or Equilibrium before the cut-off are eligible. Be sure to claim before the deadline to secure your tokens.

DuckCoop Gains Momentum with Engaging Airdrop Campaign
DuckCoop has rapidly gained attention across the crypto community for its innovative and engaging airdrop campaign. The project rewards users with $DUCKS tokens, with rewards determined by factors like their Telegram account age and participation in various tasks and mini-games. This approach has effectively combined gamification with financial incentives, sparking enthusiasm among users who are eager to take part. The campaign has been widely discussed on social platforms like X, where it has become a focal point for community-driven growth in the crypto space.

DuckCoop’s partnerships with key players, such as Bitget, have further bolstered its reputation, allowing the project to expand its reach within the crypto space. Alongside the $DUCKS airdrop, the project is also offering additional staking rewards in $DUMP tokens, providing more opportunities for users to earn through engagement. This multi-faceted approach to token distribution has positioned DuckCoop as a standout project in the current landscape, drawing interest from both seasoned investors and newcomers alike as they explore new opportunities in the ever-evolving world of crypto.

Token Unlocks

 Here are some of the token unlocks happening today and over the weekend, which may lead to price fluctuations due to increased supply and potential selling pressure:

• Neon ($NEON): $18.14M worth of tokens unlocking today, representing a significant 93.43% of the market cap. Expect major price impact.
• Hashflow ($HFT): $1.85M tokens unlocking, making up 3.10% of the market cap. Monitor for potential volatility.
• Fort ($FORT): $321.13K worth of tokens unlocking, representing 0.57% of the market cap. Likely minimal price fluctuations.
• Immutable X ($IMX): $37.99M tokens unlocking, accounting for 2.06% of the market cap. Keep an eye on potential price shifts.
• Galxe ($GAL): $3.93M worth of tokens unlocking, 1.59% of the market cap. Watch for potential movement.
• Worldcoin ($WLD): $7.01M tokens unlocking, 1.30% of the market cap. Expect some volatility.
• Myria ($MYRIA): $1.37M worth of tokens unlocking, representing 2.96% of the market cap. Monitor for fluctuations.
• SmarDex ($SDEX): $8.56M tokens unlocking, accounting for 10.9% of the market cap. Prepare for possible volatility.
• Conflux ($CFX): $11.30M tokens unlocking, representing 2.01% of the market cap. Watch for price fluctuations.
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Bitcoin and Crypto Market Update

In a recent tweet by Oz, he acknowledges the current mood among many crypto investors, stating that he understands the prevalent sense of depression within the market. This sentiment likely stems from recent price declines or stagnation in major cryptocurrencies, which can be emotionally draining for those heavily invested. However, Oz points out a critical step towards recovery, emphasising the importance of Bitcoin reclaiming the $59.3k price level. This threshold represents a psychological barrier for many traders, where breaking through could signal a potential reversal in the market's downward trend. He then highlights the $64k mark as another key resistance level that, if surpassed, could propel Bitcoin to new highs and potentially spark a bull run. His optimism suggests that reaching and maintaining these levels could renew investor confidence and turn the tide, indicating a brighter future for Bitcoin holders. Essentially, Oz is offering a glimmer of hope in the face of uncertainty, implying that once these hurdles are cleared, the market could see significant upward momentum, and the rest will be history.

According to Oz, Dogecoin’s price movements appear to be on track following its halving, reflecting familiar patterns from previous cycles. Oz points to two key moments in DOGE's history, first in 2016, where it surged by 8,965.80% over 153 days, and again in 2020, with a massive 28,063.27% rise over the same time frame. Both instances suggest that Dogecoin tends to experience explosive growth post-halving. Oz highlights DOGE as an ideal representation for altcoins due to its extensive price history, hinting that a similar rally could be forthcoming.

Arthur Hayes Predicts Bitcoin Could Fall Below $50K
With the Bitcoin Fear and Greed Index dropping, market sentiment is at a low. Arthur Hayes predicts that this level of extreme fear may push Bitcoin’s price below $50,000. Investors are cautious, as fear-driven market conditions often lead to volatility. Hayes’ analysis aligns with broader concerns about potential price downturns, emphasising the need for a more cautious approach to investing in the current market climate.

Bitcoin’s Market Activity and User Engagement

According to Token Terminal, Bitcoin’s fully diluted market cap has grown to $294.80 billion, rising 1.3% over the last 30 days. Trading volume stands at $489.76 billion, though fees have dropped by 58.5%, settling at $42.14 million. Despite the fee decline, Bitcoin maintains strong user engagement with 328.92k daily active users and 6.46 million monthly active users.

Ethereum’s Network Growth and Fee Decline

Also according to Token Terminal, Ethereum’s fully diluted market cap has increased to $1.20 trillion, up 7.8%, with a 30-day trading volume of $993.96 billion. Fees have decreased by 7.7% to $19.90 million, but daily active users grew to 407.63k, indicating healthy network activity.

Market Sentiment

Bitcoin Fear and Greed Index at 22 (Extreme Fear)
Today’s Bitcoin Fear and Greed Index has dropped to 22, signalling Extreme Fear. This marks a steep decline from yesterday’s reading of 29 (Fear), reflecting heightened concerns among traders. Bitcoin’s current price is $56,159, down from its recent highs, further fuelling uncertainty. Historically, such extreme fear levels can precede buying opportunities, but they also indicate a fragile market where even minor negative news can trigger larger sell-offs. While some analysts remain optimistic about Bitcoin’s long-term prospects, the immediate market sentiment is cautious, with many investors holding off on major moves as they await further clarity.

That’s it for today’s edition of Crypto Daily Alpha. Keep an eye out for the next update on Monday. Do your own research and invest wisely. Have a great weekend!

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