Bitcoin and the broader cryptocurrency market experienced a downturn following the United States Federal Reserve’s decision to keep interest rates steady. Although Bitcoin has been range-bound for the last three months, its short-term price dropped from $70,000 to $65,000. Despite this volatility, there have been several bullish developments for the long term. Here are the key highlights from the past week:
Summary
- Telegram’s clicker games drive TON adoption
- Polygon launches $720 million treasury to boost blockchain innovation
- Telecom Giant T-Mobile announces plans to start Bitcoin Mining
- Biggest gainer and loser of the Week
Telegram’s clicker games boost TON to an all-time high of $8.25
Toncoin, the native cryptocurrency of the decentralized layer-1 blockchain The Open Network (TON), reached a new all-time high of $8.25 this past Saturday, defying short-term bearish macroeconomic headwinds. When examining the charts, it becomes clear that Toncoin’s price rally began as early as May 1.
Since then, the bulls have staged an impressive rally of over 60%. This surge is significantly driven by the rise of clicker games like Notcoin and Hamster Kombat within Telegram’s mini-app ecosystem. These games have massively impacted Toncoin’s price action by boosting the popularity and utility of the TON Blockchain. As players earn and transfer Toncoin through gameplay, its utility and demand increase, benefiting the entire TON network.
Telegram’s focus on community engagement and its play-to-earn (P2E) model provides strong incentives for user participation. Additionally, since Telegram’s clicker games are playable directly within the app, removing the need for extra downloads, this degree of accessibility enhances appeal and streamlines the onboarding process for new users.
Polygon launches $720 million treasury to boost blockchain innovation
Polygon announced the creation of a $720 million community treasury designed to foster blockchain innovation by supporting developers in the Polygon and Ethereum ecosystems over the next decade. This treasury will distribute around 100 million Polygon (MATIC) tokens annually, totaling one billion tokens over ten years. This initiative highlights Polygon’s commitment to its community and the advancement of a new wave of web3 projects.
The first round of the Community Grants Program offers two options. The general grants, open to all applicants, focus on areas like decentralized applications (dApps), developer tools, libraries, and protocol infrastructure. The consumer-focused grants aim to support innovative blockchain applications for everyday users, including developers, creators, and entrepreneurs.
Telecom giants, T-Mobile announces plans to start Bitcoin Mining
German telecommunications giant Deutsche Telekom, also known as T-Mobile, has announced plans to fully engage in Bitcoin mining in the near future. This strategic decision was revealed by Dirk Roder, Head of Web3 Infrastructure and Solutions at Deutsche Telekom, during BTC Prague, one of Europe’s largest Bitcoin events.
This news comes amidst the backdrop of T-Mobile making significant strides in the blockchain industry over the past few months. The telecommunications firm has been operating a Bitcoin node since 2023 and is currently running Bitcoin Lightning Network nodes. Furthermore, the firm has been actively involved in Web3 as a Polygon validator since June 2023, establishing its position to leverage its extensive infrastructure and secure new revenue streams.
Biggest Gainer Of The Week: Ethereum Naming Service (ENS) up by 10.44% 🔼️
ENS or Ethereum Naming Service is a distributed, open and extensible naming system based on the Ethereum blockchain. ENS is the top gainer of the week, up by 10.44%. Despite a heavily bearish market driven by BTC ETF outflows, ENS managed to outperform.
Earlier this month, ENS approached its 2024 all-time high near the $30 mark before correcting to $19. It then recovered to $24.61, forming a small cup and handle pattern. If news about ETH spot ETF trading emerges, a breakout to $30 and beyond could be on the horizon.
The moving averages and oscillators are giving a neutral signal in the daily time frame, but for the weekly time frame, both are showing strong buy signals.
Biggest Loser Of The Week: Wormhole (W) down by 34% ⬇️
Wormhole (W) has corrected around 34% over the last week, making it the top loser. Wormhole is a leading interoperability platform that supports multichain applications and bridges at scale.
As a newly listed coin, there isn’t enough price action to analyze from the chart. The $0.778 level is a crucial resistance where Wormhole has faced rejections.
The bearish market conditions have pushed Wormhole into a downward trajectory, reaching a low of $0.366. Currently, Wormhole is trying to establish resistance at this level, but if the bearish trend continues, further declines are likely.
On the daily time frame, oscillators show a neutral signal, while the moving average indicates a strong sell. In the weekly time frame, oscillators are very bullish, but the moving averages continue to suggest a strong sell.
Closing Thoughts
This week, investor sentiment has shifted following the Federal Reserve’s hawkish stance on interest rates. Currently, the cryptocurrency markets appear to be caught in a downturn. Despite these broader economic concerns, positive long-term narratives persist. For example, the SEC is signaling imminent trading possibilities for Ethereum ETFs. Additionally, global Ether product inflows reached a net inflow of $13 million, underscoring ongoing demand for digital assets.
Therefore, as the saying goes, “When in doubt, zoom out.” This is especially pertinent during these choppy market conditions.
