Synopsis
- Ethereum’s major Dencun upgrade
- AI tokens take center stage
- Bitcoin ETFs reach record high for weekly inflows
- Biggest gainer and loser of the week
Key Observations
Analysis
Ethereum’s major Dencun upgrade
Ethereum underwent an important upgrade called Dencun, also known as Duncan or EIP-4844 in March. Ethereum is the second most valuable crypto platform, but it faces stiff competition because transactions on the network can be slow and expensive. To tackle these issues, Ethereum has already made improvements like the Shanghai Upgrade in 2023 to become more efficient. Now, with the Dencun upgrade on March 13, Ethereum aims to become even faster and cheaper to use. Jesper Mathias Nielsen, COO of Northstake, says this upgrade could make Ethereum much cheaper to use. Transactions might cost a fraction of what they are now. This could be a big step forward for Ethereum, making it even more attractive to investors.
AI tokens take center stage
Coins associated with AI-focused crypto projects have surged in value, mirroring the rise of tech stocks like Nvidia, as investors show a strong interest in machine-learning applications. Over the past year, these AI crypto tokens have experienced significant growth, outpacing even the remarkable rise of Bitcoin. Their total market value has soared from $2.7 billion to $26.4 billion since last April, according to data from CoinGecko. Tokens linked to these projects have seen gains ranging from 145% to 297% in the last 30 days alone. Many experts believe that there’s still plenty of growth potential, especially if industry predictions prove correct. Some analysts suggest that blockchain technology, combined with cryptocurrencies, could address key challenges in the AI sector, such as privacy concerns and the need for more computing power. Markus Levin, co-founder of blockchain data storage company XYO Network, predicts that as both AI systems and blockchain networks continue to expand, we’ll witness more use cases that merge the strengths of these two industries.
Bitcoin ETFs reach record high for weekly inflows
Last week, both weekly net inflows and trading volume for U.S. spot bitcoin exchange-traded funds (ETFs) hit record highs as bitcoin reached new all-time highs before dropping sharply. Combined net inflows for the ten spot bitcoin ETFs amounted to $2.57 billion, marking a 15% increase from the previous week’s inflows of $2.24 billion. This data comes from BitMEX Research and Farside Investors.
Leading the pack was BlackRock’s IBIT, which attracted $2.48 billion in inflows. Fidelity’s FBTC followed with $717.9 million, and VanEck’s HODL came in third with $247.8 million. However, Grayscale’s converted GBTC fund experienced $1.25 billion in outflows, while Invesco’s BTCO saw $29.4 million in outflows.
Biggest gainer of the week: Solana (SOL) up by 18.56% 🔼️
Technical Analysis: Last week, Solana (SOL) saw a surge in popularity, with both SOL and its ecosystem, including meme tokens, delivering impressive returns to investors. SOL rose by 18.56% to reach $209.4, approaching its ambitious all-time high of $259.6. However, it is currently experiencing profit-taking and an overall market correction, finding support around the $168 range, where significant order block levels are observed.
Currently, SOL is showing signs of a rebound, with its price trading around the $178 mark. Maintaining this level could indicate further upward momentum for SOL, depending on overall market conditions. Both oscillators and moving averages suggest a strong buying sentiment for SOL across all time frames.
Biggest loser of the week: Optimism (OP) down by 30.63% ⬇️
Technical Analysis: Optimism (OP) is currently hovering at a critical support level of $3. On the hourly time frame, OP is following a steep downward trend, indicating a bearish trajectory. While oscillators indicate a neutral stance on the daily and weekly charts, moving averages signal a strong sell-off. Optimism stands to benefit from Ethereum’s Dencun Upgrade, which reduced gas fees considerably. Hence, the current downturn could be attributed to routine profit-taking and panic selling. Zooming out to the weekly view, Optimism is forming a megaphone chart pattern. A reversal from the current support level could propel it to new all-time highs (above $4.5) during the next bullish phase. Monthly analysis of oscillators and moving averages strongly suggests buying opportunities. If Optimism is in your portfolio, consider accumulating during dips.
Conclusion
The cryptocurrency market was filled with several events. The market cap surged to $2.7T, with credit largely attributed to AI and Meme tokens. Commencing with Ethereum’s significant Dencun upgrade, AI tokens have shown strong performance, while Bitcoin ETFs have reached record highs in weekly inflows. These developments highlight a positive sentiment prevailing in the markets.
