OVERVIEW

Crypto Comeback: Market Green Ahead of Weekend

Looking green almost everywhere in crypto! The altcoin market is outperforming Bitcoin, a sign of Alt Season? That’s a topic we’re going to hit on today. 🟢

In today’s Litepaper, we’re looking at Chainlink’s successful tokenization, Cardano’s next major upgrade, and the CME looking at spot Bitcoin trading. 📰

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

CHAINLINK
LINK Soars on DTCC, Chainlink Tokenization Succes 🔗 

Smart NAV, a pilot aiming to streamline fund data across blockchains, just wrapped up. The Depository Trust and Clearing Corporation (DTCC), teamed up with Chainlink ($LINK) and some heavy-hitting U.S. financial institutions to push fund tokenization into the fast lane. According to DTCC's Thursday report, mission accomplished. 🤩 

Smart NAV’s goal? Establish a standardized way to broadcast net asset value (NAV) data across any blockchain you can think of, thanks to Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

Participants in this data nerd fest included American Century Investments, BNY Mellon ($BK), Edward Jones, Franklin Templeton, Invesco, JPMorgan ($JPM), MFS Investment Management, Mid Atlantic Trust, and State Street ($STT).

The real kicker: Chainlink’s token, LINK, shot up over 11.89% yesterday, reaching $15.87 for the first time since April 24. And it’s continued that move into today to $16.72, the highest since April 12.

This pilot lands amid a growing frenzy around tokenizing real-world assets (RWAs) like bonds, funds, and other traditional investments. Financial juggernauts like BlackRock ($BLK), Citi ($C), and HSBC ($HSBC) are jumping on this bandwagon, chasing the holy grail of operational efficiencies, faster settlements, and transparency that puts traditional finance to shame. 🕯️ 

CARDANO
Ouroboros Genesis: Cardano’s Next Big Upgrade ⏺️ 

Charles Hoskinson, ever the showman, got the crypto crowd buzzing with a tease on X: “Genesis is coming.” 📫️ 

The Hosk’s post linked to a blog by Nicholas Frisby at IOHK, dropping the details on Ouroboros Genesis—Cardano’s ($ADA) latest attempt to beef up its blockchain.

Here's the tech breakdown:

• Ledger Peers: Ensures nodes connect to trustworthy network participants, cutting down eclipse attack risks.

• Lightweight Checkpointing: Provides a fallback option in critical times, helping the network quickly establish the correct blockchain history.

• Limit on Eagerness (LoE): Prevents nodes from committing to an unverified blockchain, stopping premature commitments.

• Genesis Density Disconnections (GDD): Disconnects from peers pushing potentially dishonest versions of the blockchain.

• Limit on Patience (LoP): Ensures nodes only stay connected to peers that deliver data promptly, reducing stalling attack risks.

Genesis keeps the rollback limit at 2,160 blocks, balancing flexibility and stability. The updated peer selection logic now uses recent stake distributions, making it easier to connect with honest nodes. Plus, dynamic network adjustments help maintain strong defenses against segmentation or isolation.

Sooooo… what the hell does that mean?

Think of Cardano's blockchain like a really long train track. Genesis allows us to fix up to 2,160 sections of the track if there are any problems, so the train keeps running smoothly and safely.

Imagine the track is guarded by people to make sure it's safe. The new method for picking these guards is based on who has been doing a good job recently (they show up on time, they always do their work, they’re not assholes, they’re a good team player, etc), so it's easier to pick reliable ones.

Lastly, Genesis can adjust how the guards work together to make sure no parts of the track are left unguarded, keeping the whole train route secure.

Ouroboros Genesis is set to drop in Q3 2024. It's in the final testing phase, ensuring these new features play nice with the existing system. 💪

NEWS
CME Group's Big Bitcoin Bet: Spot Trading on the Horizon? 😲 

$CME Group is reportedly planning to launch bitcoin spot trading, according to the Financial Times. This move could challenge the dominance of Binance and Coinbase ($COIN) in the crypto space. CME has been in discussions with traders eager to buy and sell Bitcoin in a regulated marketplace. 👍️ 

Since 2017, CME has led the Bitcoin futures market, and now it seems poised to expand its crypto offerings. Rumors suggest the spot trading business could operate through CME’s EBS currency trading venue in Switzerland. This would complement CME’s popular Bitcoin futures contracts, allowing traders to execute complex strategies in one regulated platform.

Markus Thielen of 10x Research believes this move could impact existing crypto exchanges, noting, "Crypto exchanges might lose some business with the potential debut of a Bitcoin spot market on CME, as institutions prefer regulated avenues." 🧑‍🎓 

With Binance currently leading the spot market and Coinbase as a major U.S.-traded exchange, CME’s entry could shift the landscape significantly. While the plan isn't finalized, the anticipation highlights the growing demand for regulated crypto trading.

Coinbase shares took a nosedive yesterday, closing -9.3% lower after news broke that CME might start offering spot Bitcoin trading. The Chicago Mercantile Exchange is stepping up, holding meetings to test the waters for regulated Bitcoin trading. 🥹 

STOCKTWITS AD FREE
Go Ad Free Today 🧭

Dive into real-time discussions, breaking news, and expert insights without the distractions. Elevate your trading and investing experience with Stocktwits Ad Free today.

TECHNICAL ANALYSIS
Technically Speaking 📈 

Let’s take a look at the Total Market Cap and Altcoin Market Cap charts.

Don’t think of the image above as a triangle, even though it looks like one. The interior trendline goes back to June 2022 and has been a dominant support and resistance level for the whole market. Something very, very bad would have to happen for price close below that line.

For bulls, the upper trendline at $2.481 is likely going to be a tough nut to crack. In the short-term, there’s a good chunk of space for the Total Market Cap to move in either direction before facing any rejection.

Next up, the Altcoin Market Cap. ⏭️ 

The chart above shows the crypto market cap, excluding Bitcoin and Ethereum. It shows price moved above the upper trendline of a descending triangle, retested it the next day, and has continued to move up. There’s been a lot of talk about Alt Season coming soon, could this be the beginning of that move? 🤷‍♂️ 

It is hard to say, as Bitcoin has been dominating the entire space. Are there any signs Bitcoin’s dominance could be weakening? Let’s look at the Bitcoin Dominance chart:

If the breakout on the Altcoin Market Cap Chart is genuine, then we’ll likely see one of three scenarios play out. ⚾️ 

1. If fiat inflows continue to drive the entire market higher, very little change in Bitcoin’s market dominance will occur.

2. If fiat inflows remain targeted towards Bitcoin, it’s dominance will continue to rise and the Altcoin Market Cap chart could convert into one hell of a nasty bull trap.

3. If Bitcoin’s market dominance falls and the Altcoin Market Cap rises, it means there’s a strong rotation out of Bitcoin into the more speculative side of crypto: the Altcoin market.

Is that all of the scenarios? Most definitely not! Those three scenarios assume a bullish neutral outlook for Bitcoin and the broader crypto space. That’s a post for another time.

It’s the weekend, so make sure you keep alert because shenanigans happen during the weekend! 😎 

NEWS
Crypto News In Three Sentences 📰

💸 Solayer Hits $20M Cap in 45 Minutes 

Solayer’s restaking deposits on Solana hit $20 million faster than you can say "FOMO." In just 45 minutes, users restaked $SOL or deposited liquid staking products like mSOL and JITOSOL. With Polychain leading an $8 million raise at an $80 million valuation, Solayer is off to the races in Solana’s restaking game. From Blockworks.

🌌 Cosmos Network Passes Liquidity-Boosting Proposal #912 

Cosmos ($ATOM) Network’s Proposal #912 passed, aiming to make staked assets more liquid and efficient without breaking a sweat. Now, staked assets can be freely traded, which means more money moving around and less sitting idle. With strategic allocations to platforms like Stride and Persistence, Cosmos is ready to show off some serious financial muscle. More at Coinspeaker.

🔒 Crypto Adoption Hurdles: Onboarding Still a Nightmare 

Web3 might be the future, but getting there feels like pulling teeth thanks to clunky interfaces and security fears. Simplifying user experience and boosting cybersecurity knowledge are key to overcoming these hurdles. High-profile collapses and rug pulls haven't done any favors, but some solid PR and user-friendly tech could turn things around. Cointelegraph has more.

🎉 SEC’s Anti-Crypto Bill Gets Smacked Down, Ripple Celebrates 

The U.S. Senate slapped down the SEC’s anti-crypto bill SAB 121, dealing a blow to Gary Gensler’s crypto crackdown. Ripple’s ($XRP) Chief Legal Officer celebrated the bipartisan smackdown, calling it a big win for the crypto world. This comes as the SEC continues its crusade against Ripple and other crypto players. More from Bitcoinist.

📉 GameStop Craters 20% After Announcing Share Sale 

GameStop ($GME) shares cratered 20% after the company revealed plans to sell 45 million shares following its dismal Q1 results. The meme stock darling saw net sales drop 30% from last year, spooking investors. Despite a smaller net loss, the market wasn’t impressed, with shares now trading around $19. From Decrypt.

Links That Don’t Suck 🔗

🧠 Elon Musk says Neuralink needs a volunteer for 'Telepathy' brain implant

👴 Stolen antique weathervane recovered 40 years later and returned to Vermont

🐜 Antminer L9 coming soon: will change Litecoin and Dogecoin mining

🫵 Sony warns 700 AI devs, music streaming companies against content misuse

💵 Tether treasury mints 1 billion USDT, crypto market awaits impact

🤝 Tether and TON Foundation join forces to reach unbanked populations

Get In Touch 📬

Follow our social channels for great, real-time content on Stocktwits and Twitter. And check out our YouTube channel for in-depth video content! 📲

Email me (Jonathan Morgan) your feedback; I’d love to hear from you. 📧

Want to sponsor this newsletter and reach hundreds of thousands of crypto enthusiasts? Reach us here. 👍

Disclaimer: Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. Read the full terms & conditions here. 🔍