This week, the crypto market has rebounded following last week’s short term dip. The total crypto market cap now stands at $2.43 trillion. While the market remains in a consolidation phase within an overall bullish trend, several key developments have influenced long-term growth for cryptocurrencies while also indicating signs of sustained market confidence. Here are the key highlights from the past week:
Summary
- VanEck and 21Shares file for Spot Solana ETFs
- Sony Group Plans to Launch Bitcoin and Crypto Exchange
- Over 1 million addresses now hold at least 1 BTC for more than a year
- Biggest Gainer and Loser of the Week
Asset Managers, VanEck and 21Shares apply for Solana ETFs
Following the approval of the Bitcoin and Ethereum ETFs, Solana (SOL), the fifth largest cryptocurrency is next in line to be considered for a Spot ETF in the United States. Big institutional players like VanEck and 21 shares have filled applications for a solana exchange traded fund. The fillings of a Solana Spot ETF represents a significant milestone, indicating that Wall Street is increasingly recognizing the value and potential of not just bluechip cryptocurrencies but also promising altcoins like Solana.
If approved, the Solana ETF will track Solana’s spot price and be listed on the Cboe BZX exchange. The announcement of this application on June 27th had an immediate positive impact on the market, with Solana prices rising nearly 8%. An approval could indicate a growing trend towards diversifying crypto investment products for traditional investors, enabling them to gain exposure to cryptocurrencies without directly holding the assets.
Sony Prepares to Launch a Crypto Exchange in Japan
Sony, the Japanese multinational conglomerate, is entering the crypto space by launching its own cryptocurrency exchange. The company plans to achieve this by reviving a crypto trading platform it acquired in August 2023. According to a press release, Amber Japan, the parent company of the Japanese crypto exchange WhaleFin that Sony acquired last year, has rebranded to S.BLOX. The tech giant is set to commence its digital asset trading services soon.
While Sony’s entry into the cryptocurrency market is new, the company has already been making strides to expand its presence in Web3. Last year, Sony Network Communications, a division of the conglomerate, partnered with Japanese blockchain firm Startale Labs to develop Sony’s own public blockchain network.
Over 1 Million Addresses now Hold 1+ BTC for Over a Year
The number of Bitcoin addresses holding at least 1 Bitcoin has surpassed 1 million for over a year. Currently, there are more than 1,010,000 wallets holding 1 Bitcoin or more, commonly referred to as “wholecoiners.” Since reaching the one million “wholecoiner” milestone in May 2023, when BTC was trading at $27,000, Bitcoin has rallied over 120%.
This trend signifies broader adoption and confidence in Bitcoin as both a store of value and an investment asset. The rising number of wholecoiners demonstrates the growing belief in Bitcoin’s potential for long-term growth and stability. The economics of supply and demand play a crucial role here. As more investors become wholecoiners and choose to hold onto their Bitcoin, the available supply on exchanges decreases. Bitcoin’s finite supply—capped at 21 million coins—amplifies this dynamic, potentially leading to increased scarcity over time.
Biggest Gainer of the Week: Ethereum Name Service (ENS) up by 36.78%
Figure 1: ENS Technical Analysis
ENS is the top gainer of the week, rising by 33%. This growth was initially driven by the anticipated ETH ETF inflow. However, the recent surge is primarily due to the announcement of ENS V2.
ENS has broken the crucial $30 resistance level after multiple retests. This previous resistance has now turned into support. We can expect ENS to consolidate above $30 for a while until the next surge.
ENS is currently trading well above the Bull Market Support Band. The RSI is moving towards the oversold zone, indicating that a minor correction might be imminent.
Biggest Loser of the Week: Fetch.ai (FET) down by 23%
Figure 2: FET Technical Analysis
Fetch.ai experienced a 17% correction, making it the week’s biggest loser. This correction is healthy, given that FET gained over 30% the previous week.
The crypto market is currently anticipating the AGIX-OCEAN-FET token merger into ASI tokens in the coming week. This merger is expected to boost the ASI token price due to increased optimism and liquidity.
With AI being a prominent narrative in the crypto space, holding some ASI tokens in your portfolio could be a wise decision.
Conclusion
This week, investors should also closely monitor the upcoming Bitcoin reimbursements to creditors from the bankrupt Mt. Gox exchange platform, scheduled to commence from this week onwards. Approximately 140,000 bitcoins, valued at around $9 billion, are set to be distributed between July and October. Significant portion of these reimbursements could happen this month, potentially leading to substantial sales of Bitcoin in the market. While July has historically been bullish for Bitcoin and cryptocurrencies, vigilance regarding macroeconomic developments remains crucial.
