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Solana’s Co-Founder Questions Ethereum’s Utility Without Base L2

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6 hours ago

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In a recent discussion, Solana’s co-founder, Anatoly Yakovenko, raised questions about the vitality of the Ethereum ecosystem without the contributions from Base, a Layer 2 solution. This query comes amidst observing the metrics of growth shown by Base, particularly in user activities and transaction volumes.

Rapid Growth In Base Layer 2 Solutions

Base has seen an exceptional increase in key activity metrics such as Active Addresses, Transaction Count, and Throughput, all achieving new peaks recently. This growth trajectory is also mirrored in its Stablecoin Market Cap and Total Value Locked (TVL), which are reported at all-time highs. 

Base Layer 2 integration with Coinbase’s existing large user base is seen as a significant factor driving its demand and subsequent rise in these metrics.

Additionally, the surge in Base’s activity is attributed partly to the popularity of meme coins within its ecosystem, notably MOG and BRETT. These coins have ascended into the top 100 cryptocurrencies by market cap and are nearing their peaks. 

According to DefiLlama reports, Aerodrome Finance has played a significant role in the surge of Base’s Total Value Locked (TVL), with memecoin trading as a key driver. The platform has contributed to $1.36 billion TVL on Base Layer 2, making it a substantial force behind the rapid growth. 

Following the impressive performance by Base Layer 2, Anatoly Yakovenko commented,

“So basically without Base, Ethereum ecosystem would be dead in the water right now.”

However, on-chain economist Lily Liu highlights a potential issue with how the visualization groups active addresses, suggesting it could be misleading. According to Liu, Solana reports significantly higher monthly active addresses, about 100 million, more than four times the 22 million reported by Base. This substantial difference shows that the grouping used in the visualization is not an accurate representation of the ecosystem’s activity levels.

Liu proposes a more precise method of presenting this data would be to use a single bar chart with EVM and non-EVM bars shaded differently. This would allow for a clearer distinction and more accurate comparison. 

Additionally, the claim that “Base and Solana” have the highest monthly active addresses overlooks that the NEAR Protocol has 31 million MAA, outpacing Base. Liu highlighted,

“The headline should therefore read, …Solana and Near as the most active.”

Source: State of Solana ReportSource: State of Solana Report
Source: State of Solana Report

Impact on Ethereum Market Position

Conversely, Ether has faced challenges since its Dencun upgrade, marked by an inflationary supply and declining revenues. In contrast, Base Layer 2 rise has been conspicuous, capturing a notable share of transactions and revenues. This has positioned it as a leading contender among Ethereum’s Layer 2 solutions.

The divergence in performance between Ethereum and Base highlights the evolving dynamics within the blockchain ecosystem. Layer 2 solutions are becoming ecosystems in their own right with distinct communities and economic activities.

At press time, ETH price is $2,678, showing a slight 7-day increase of 2%. The 24-hour trading volume surged by 68% to $19.68B showing heightened trading activity and investor interest.

Moreover, most recently, Anatoly Yakovenko shed light on the differences between Solana and ETH. Despite its technological advantages, Solana has not gained the same institutional attention as Ether. He pointed out that the contrasting scaling methods of the two platforms might impact institutional interest. Solana emphasizes hardware scaling, while Ethereum focuses on software solutions.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ripple Moves 200M XRP Ahead Of US SEC Appeal, What Next?

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2 hours ago

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October 22, 2024

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Ripple has moved 200 million XRP tokens worth about $109 million to an unknown wallet. This is notable especially at this time as it happens ahead of the next phase in Ripple’s legal case against the U.S. Securities and Exchange Commission (SEC).

The appeal is a significant moment in Ripple’s fight against the SEC, which claims that Ripple’s XRP sales constituted an unregistered securities offering.

Ripple’s 200 Million XRP Transfer Ahead of US SEC Appeal

The large XRP transfer has elicited questions on what Ripple may be up to given that the transfer was made at the time of the SEC appeal. The appeal is expected to be a direct challenge to the ruling made by Judge Analisa Torres, who had earlier granted a motion in favour of Ripple stating that the sale of XRP through exchanges was not a violation of the U.S securities laws.

Stuart Alderoty, the Chief Legal Officer of Ripple, shared his thoughts on the potential scenarios of the appeal. He said the optimal outcome of the proceedings for the Securities and Exchange Commission could be to have the case sent back to Judge Torres. 

Nevertheless, Alderoty explained that the Securities and Exchange Commission would struggle to challenge the decision, saying: “The SEC could end up arguing to Judge Torres that she wasn’t a person of ‘ordinary intelligence’ when she ruled against them.” Concurrently, Ripple’s legal team remains optimistic about their position in the case, despite the ongoing litigation.

XRP Price Movement and Market Reaction

During this legal fight, XRP has seen an increase in both derivatives and spot trading Data from CoinGlass revealed that XRP’s derivatives trading volume jumped more than 130%, with spot trading volume rising by 108% from the previous day. 

With the total market trading volume at $2.5 billion for both futures and spot markets, the trading volume/market cap ratio is 8%, which indicates that traders are paying more attention to the asset. Concurrently, crypto analysts continue to share varying predictions for XRP’s price movement. 

Crypto analyst Amonyx also identified the bullish pennant formation on the XRP weekly chart and expects a breakout that may take the price to as high as $589. As noted by CoinGape, the current consolidation within the pattern, together with the overall market conditions, may open the door to major price fluctuations in case of positive change in the legal status of Ripple.

MetaMask Integrates with XRP Ledger Amid XRP Transfer

During the massive XRP transfer, Ripple revealed that the XRP Ledger (XRPL) is now integrated with MetaMask, a Web3 wallet service. By integrating XRPL Snap, users of MetaMask can now engage with the XRP Ledger from their wallets. 

This integration enables XRP account management, transaction signing, and interaction with the XRPL-based decentralized applications (dApps).

In addition, the integration will enable the XRP Ledger to be taken to MetaMask’s 30 million monthly active users making XRP and the XRPL more accessible to developers and the retail audience. The new tool provides functionalities such as network flexibility, security checks, and developer documentation for developers seeking to integrate with the XRP Ledger.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Litecoin Founder Comments On ETF Approval Following Canary Capital Filing

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10 hours ago

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October 21, 2024

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Litecoin founder Charlie Lee recently spoke about enthusiasm for the ETF application, especially regarding rising institutional interest in Litecoin and possible approval.

He also pointed out the importance of the demand, reflected by the more than daily 2% growth of the Grayscale Litecoin Trust, which is currently trading at more than double its NAV.

He added comparisons with Litecoin’s peer-to-peer transactional similarities with Bitcoin, saying the likelihood of the Litecoin ETF approval anytime soon is extreme.

Litecoin Founder Charlie Lee Says ETF Approval Coming Soon

Litecoin founder Charlie Lee recently expressed delight over Canary Capital’s recent filing for a Litecoin ETF because this indicated that the cryptocurrency was finding interest among both institutional and retail investors.

Sounding confident, he projected that permission for the LTC ETF would not take much time because crypto ETF products were gathering pace in the market. If this happens, some market experts predict the Litecoin price will jump to $400 and more than $1,100 by 2026.

At the same time, market sentiment reflects the rising demand for Litecoin, which may also serve to justify the approval of this ETF. This interest follows a wider trend of institutional adoption of cryptocurrencies, underlining the changing dynamics across the digital asset landscape.

With the recent approval of Bitcoin and Ethereum ETFs by the SEC, the door is finally open for spot ETF applications to be approved for other cryptocurrencies, including Solana’s SOL, XRP, and Litecoin LTC.

Of course, one of the big surprises last week was Canary Capital’s application for a Litecoin ETF alongside its XRP request. Litecoin is up 6% weekly at the time of writing, trading at $70.88.

Rollercoaster Ride: ETF Filing Fuels Volatility

The Litecoin founder pointed to the growing interest in Litecoin, using the increasing value of Grayscale’s Litecoin Trust as proof that this institutional demand is on the rise. He said the trust was trading at more than double its net asset value, NAV, which was a sign of excellent market interest in the cryptocurrency.

He finally added that Litecoin shares much in common with Bitcoin in many aspects since both are commodities. This optimism aligns with the broader trend of increasing institutional involvement in cryptocurrency.

In the wake of the latest filing, the LTC price increased significantly, reaching a monthly high of $75.88 and recovering from a low of $62.12. However, the uncertainty associated with the approval, along with general volatility in the market, has placed the Litecoin price at $71.44, a drop of 5.04%.

Canary Capital Files for Litecoin ETF, Following XRP Filing

At the time, James Seyffart, an ETF analyst at Bloomberg Intelligence, only confirmed that Canary, who previously filed for an XRP ETF, has now applied for a Litecoin ETF.

Seyffart agrees with the Litecoin founder but also said that Litecoin is already a member of Europe through listing exchange-traded products. “Some ETPs already hold Litecoin, such as $LITE in Switzerland from CoinShares and $ELTC in Germany from ETC Group,” Seyffart said. He further explained that in the US, the Grayscale Litecoin Trust traded under the symbol LTCN.

This latest ETF filing is very different because it’s a single ETF focusing on Litecoin, whereas previous filings have focused on major cryptocurrencies. Even Eric Balchunas, the senior ETF analyst at Bloomberg, added his voice to this regarding the importance of this filing. He explained that it’s not just the first Litecoin ETF in the U.S. but potentially the first one globally.

“Even 21Shares does not have one at this point,” he stated.

This move comes hardly a week after Canary Capital filed for an XRP ETF on October 8, gathering massive crypto community attention. Filing for XRP came after similar filings by Bitwise, a leading crypto asset manager. If approved, Litecoin founder Lee hopes that both the Litecoin and XRP ETFs will offer new ways for traditional investors to get exposure to the assets.

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Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Robinhood Launches Solana Transfers Amid ETF Hype, SOL Price to $200 Next?

Published

13 hours ago

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October 21, 2024

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In a bid to address the needs of its growing customer base, commission-free brokerage Robinhood has initiated transfers for Solana (SOL). This move is significant for both Robinhood and Solana, as the flexibility in handling SOL can bring value to both ecosystems.

Robinhood Solana Transfer, the Major Catch

For Robinhood that operates a somewhat closed system, activating transfers for Solana is a major validation. As the brokerage revealed, this option is only available to its users in the EU. Now, customers of the platform can now withdraw and deposit  Solana and earn with a 1% reward.

Robinhood Crypto has made several moves to expand its services over the past year. Last week, the platform launched Bitcoin and Ethereum Futures trading. This product helped it match up with some of its counterparts including Coinbase, Binance and Bybit with similar products.

Additionally, the community’s conversations around a stablecoin for the company has grown in the past months. While the firm has not officially announced plans for a stablecoin  yet, many believes this move is inevitable. With Ripple pushing for RLUSD stablecoin, and Paypal issuing PYUSD, it becomes natural for Robinhood to explore this payments niche.

Another major catch with the new product launch is the regulatory strain governing the operations of the exchange. After receiving a Wells Notice from the United States Securities and Exchange Commission (SEC), Robinhood has now concentrated its efforts to serving more offshore markets.

Before the Solana activation, Robinhood Crypto launched transfer service for 24 coins earlier this month.

Solana ETF Hype, SOL Price Uptick Underway

The Robinhood offering comes at a time when conversations around a Solana ETF is growing. Entities like VanEck and 21Shares have made a move to launch the product in US market. While the chances of a SOL ETF remains limited per expert’s projection under the current administration, there are advances in other regions.

For instance, Brazil has launched its first Solana ETF with Canada making a similar move in this regard. Earlier today, VanEck announced that it has launched staking service for its Solana ETP in the EU.

All these positive sentiment around the cryptocurrency has helped ignite the sentiment around price. As of writing, the coin is up 2.83% to $163.43. It has traded within two extremes in the past 24 hours from a low of $159.05 to a high of $171.43.

With the Robinhood allowance, its growing memecoin ecosystem and ETF hype, it remains to be seen if SOL price will finally breach the $200 level this month.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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