Bitget Hot Takes (August 29 - September 04)
Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts.
Bitget Hot Takes last week can be found here.
BGB shows resistance in 7-day cumulative returns and volume.
BTC and SP500 correlation recorded the summer’s peak.
Cardano’s Vasil Upgrade is confirmed to take place on September 22.
Japan’s regulator proposes tax breaks for crypto retail investors to stimulate the country’s economy.
KyberSwap suffered from a US$265,000 frontend exploit and is offering a 15% bounty for attackers.
Polygon (MATIC flipped DAI for the 12th place and Cardano (ADA) flipped Ripple (XRP) for the 7th place on the market cap ranking.
BGB Hanging Tough
Clearly, we are in challenging times, hence the increased volatility and a drop in investors’ activities. Exchange tokens were in red this week, with BNB and BGB being the two most stubborn (-0.12% and -5.06%, respectively). However, interest in BGB remained roughly the same with a negligible decline of 0.7%, while the others’ volume suffered greatly from ‘market conditions’. One more thing to note is that BGB average price increase (calculated by summing positive daily returns and dividing this result by the number of green days) stands at 3.5% compared to BNB’s 1.2%, OKB’s 1.8%, and HT’s 1.5%.
BGB has indeed shown, time after time, the tendency to resist unfavourable market circumstances especially well when compared to other exchange tokens. Need more proof on BGB’s self-sustained growth? Here are our BGB reports for the last three months:
Don’t forget to check out BGB Earn to make sure that you are generating even more BGB!
When Bear Ends
The flagship cryptocurrency Bitcoin has been holding on US$20,000 for its own (and the industry’s) dear life despite several buy indicators. How come?
Take a look at the correlation between BTC and SP500 below:
The U.S.’ FOMC July 2022 took place on July 26-27 with a 75bps interest rate hike. Bitcoin and the stock market have been moving more in tandem ever since, and with the 1.25-trillion sell-off on August 27 after the August meeting, we are seeing the highest correlation between these two this summer. With the scene of a glooming recession, this means that Bitcoin could potentially bleed more if U.S. equities see a new low.
Buidlers continued to receive investments to fund their projects, including oracle provider Redstone (US$7 million), automation network Clockwork (US$4 million), DeFi-focused L1 Sei Labs (US$5 million), data infrastructure builder Luabase (US$4.5 million), staking protocol GoGoPool (US$5 million) and banking platform LevelField (US$50 million).
The Ethereum-native Curve Finance hints at the possibility of its stablecoin crvUSD next month. With The Merge coming soon, this could contribute to the scaling of activities on the PoS Ethereum. Also on the scaling topic, DEX aggregator 1inch has announced the new token airdrop for their users on Optimism. 300,000 OP tokens will be distributed equally between 1inch wallet users on Optimism in the near future. In opposition to its peers, Compound Finance has executed a price feed upgrade that resulted in a temporary broken frontend and frozen cETH (Compound ETH) markets.
Ethereum is not the only one trying to solve the scalability problem. After the Ethereum Foundation announced the date for The Merge (September 15/16), Cardano also confirmed September 22 as the official date for its Vasil upgrade. The Vasil upgrade promises to bring ‘increased network capacity, lower cost transactions and enhancements for the smart contract platform Plutus’. Cardano has also flipped Ripple to become the 7th largest cryptocurrency with a market cap of US$16.4 billion after Robinhood announced their support for ADA and Binance.US launched ADA staking program.
Metaverse Crypto In Commercial Inevitable
Meta is expanding their roll-ups of NFT services to Facebook, whereas the 34-year-old VMAs introduces the first metaverse category, which features Snoop Dogg and Eminem as Bored Apes. Clearly, mainstream adoption is inevitable for the Metaverse sector, but there also comes the need for standard alignment. Andreessen Horowitz, also known as a16z, is about to launch their NFT copyright project to provide users with intellectual property licences. That is one necessary step to clear up confusion for NFT holders as well as creators.
Bitcoin can soon become a popular alternative payment method, as countries and authorities are adding it to their balance sheet. Iran, facing sanctions by the U.S., has approved the use of cryptocurrencies for import purposes, and Mendoza, the Argentine province famous for their wine-making traditions, now allows residents to pay for taxes and fees in crypto as well. The leading event organiser Ticketmaster, who is present in 32 countries globally and host of the ticket sale for Dota2’s The International 2022, joins the club with the plan to release tickets as NFTs, once again bringing us back to the topic of Metaverse.
The Latest Bitget News
This week marks the launch of Bitget Pop Grab - our new feature that helps connect friends and acquaintances in a fun way. As it comes with the exclusive, time-limited BGB Pop Grab, we have one word for you: Hurry up!
Don’t forget your plan of the week with the exclusive Live Trader AMA in our community group! This AMA takes place on a weekly basis and can be of great help for you, especially in these volatile conditions.
Regarding The Ethereum Merge, which is scheduled to commence on September 15/16, Bitget’s take on the event is as follows:
- ETH transactions will not be affected during The Merge;
- After The Merge, all ETH assets, perpetual swaps, futures and relevant products on Bitget will denote the PoS ETH token;
- The listing of potential newly forked tokens of ETH will be announced publicly on our website and other social media channels. Stay tuned!
More details can be found here.
Let’s celebrate this achievement with us! Data from BCG shows that the derivatives trading volume of Bitget has surpassed FTX and ranks third worldwide. Forbes also published an article two weeks ago with objective and unbiased data, ranking Bitget as the fifth largest exchange overall by real bitcoin volume. With the support of our trusted traders and partners around the world, we look forward to reaching many milestones in the years ahead.