Another Friday,
Another Newsletter,
To keep you up to speed with the crypto world!
We have got some really interesting developments to share with you today:
2 Reasons Behind Ethereum’s Rise
Elon Arrives in Twitter Head Quarters
The Reason why NFTs on Reddit are Exploding
Let’s get Started!
2 Reasons Behind Ethereum’s Rise
Ethereum breached $1500 for the first time in 5+ weeks.
You may now be questioning what caused this,
Well there are 2 potential causes
1) ETH supply keeps decreasing, and there is less daily selling pressure.
The supply of ETH has quietly reduced by 12,000 ETH since October 8. The levels will soon match those from before the Merge.
Additionally, since there are no longer significant mining fees being paid out, there is a lot less selling pressure. Since the Merge, Ethereum has saved almost 750 million dollars in mining costs.
As ETH supply decreases and the daily sell pressure decreases, ETH prices will increase.
2) ETH Liquidations
More than $400 million worth of short positions in ETH were liquidated in the last day.
All of these individuals are betting against the price of ETH. However, as ETH increased, they lost their bets.
The intriguing thing about liquidations is that they can cause both price pumps and price dumps. You'd better hold on once movement occurs on either side since things move quickly.
Elon Arrives in Twitter Head Quarters
Elon is aware that many people had doubts about whether he would truly purchase Twitter. He wanted it to truly hit him yesterday when he stepped inside the building.
So he tweeted this,
According to reports, the Twitter acquisition will be completed by this Friday. He is already the "Chief Twit," though, according to his new Twitter bio.
Team IA’s thoughts: This is huge for crypto as:
It was revealed earlier this week that Twitter is developing a cryptocurrency wallet.
Elon has discussed cryptocurrency payments on Twitter and even suggested using Dogecoin as a payment method. After Elon arrived at Twitter HQ, DOGE rose by about 20%.
Recent text message dumps demonstrate Elon's consideration of developing a decentralized social networking application.
Elon has admitted that he owns some Doge, ETH, and Bitcoin.
Bitcoin is held by Tesla, Elon's other company. Will Twitter come after?
The Reason why NFTs on Reddit are Exploding
Reddit introduced NFTs in July. Reddit users can modify and put these digital avatars as their profile images to stand out.
Since then:
3 million wallets were created. The top NFT marketplace, OpenSea, has 2.3 million wallets.
There have been 86k+ NFT launches. The first 40k were purchased for $10-$100, while the rest were distributed for free to top Reddit commenters (85% unique holder percentage). Superior to top NFT projects like Doodles (54%) and Bored Ape Yacht Club (64%)
$100m+ market cap
Top ten lists on OpenSea
The average price of a top Reddit NFT is 7 ETH.
Team IA’s thoughts: The irony is that 6 months ago, Reddit was flooded by NFT critics. Now nowadays, all of their profile pictures are NFTs.
All of this happened due to Reddit "tricking" people into entering NFTs without their knowledge.
Collectible Avatars are what Reddit refers to them as instead of NFTs.
Reddit uses the Polygon blockchain and offers a custodial wallet (no seed phrases) instead of gas costs and seed phrases (no fees).
Reddit allows users to use credit cards to make payments rather than cryptocurrency.
Talk about “How to Onboard Millions Without Them Knowing.”
MEME of the week
That’s all for today,
We’ll see you on Tuesday with the Technical Analysis!
Lastly, Team Inspired Analyst wishes you, Jummah Mubarak!
Until then,
Zain - signing off
From Inspired Analyst’s Team.
Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.