06 Nov, 2024

Crypto’s Regulatory Headwind Has Turned Into a Tailwind Following Trump’s Victory

Quick Take① Analysts at Bernstein said that crypto’s regulatory headwind had turned into a tailwind following Donald Trump’s election victory.② The analysts also reiterated their call for bitcoin to approach $90,000 by the end of this year and reach a bull cycle target of $200,000 in 2025.Crypto's regulatory headwind has turned into a tailwind following Trump's victoryFollowing Donald Trump’s win in the U.S. presidential election, analysts at research and brokerage firm Bernstein said that crypto’s regulatory headwind had now turned into a tailwind — and the market is “nowhere close to factoring in this shift.”The analysts, led by Gautam Chhugani, told clients in a Wednesday note they expect a new “crypto-friendly” Securities and Exchange Commission Chair and Senate Banking Committee to accelerate regulatory clarity for the industry. Under current Chair Gary Gensler, the SEC has embarked on several legal battles with key players, including Coinbase, Binance, Kraken and Robinhood, as well as against DeFi, NFT and stablecoin projects.The crypto industry seeks new rules on defining digital assets as something other than securities, the applicability of broker/dealer laws to crypto exchanges and DeFi, accelerated approvals for investment products like ETFs and enabling banks to own and custody crypto, Chhugani noted.In particular, the analysts predict faster progress on stablecoin and market structure bills, positively impacting stablecoin issuers such as Circle and Paxos and U.S crypto exchanges. They expect progress on other crypto rules and definitions over the medium term, leading to a re-rating of broader crypto assets outside of bitcoin and ether, which have been “suppressed due to regulatory overhang and lack of clarity on [their] security status.”Trump’s newfound pro-crypto stance put forward many policy promises during the campaign, including firing Gensler on “day one,” turning the U.S. into a bitcoin mining "powerhouse" and creating a national strategic bitcoin reserve, which the analysts also expect the new administration to make positive steps toward.The Republicans are also set to pull off a sweep of the presidency, House and Senate, with Trump winning the popular vote, to the surprise of many. “The crypto super PACs were instrumental in sending crypto friendly representatives to the Senate and the House. We expect a new regime of crypto rule making and this transformational shift is not priced in,” the analysts said.Bitcoin to reach $90,000 by year-end, $200,000 in 2025The total crypto market cap breached $2.5 trillion as news of the election result became clear, Chhugani noted. Bitcoin hit a new all-time high above $75,000 earlier on election night and is currently trading for $73,815, according to Bitcoin Price Page — up 7% over the past 24 hours. DeFi tokens such as Aave and Uniswap posted double-digit gains, alongside positive pre-market and early trading activity for crypto-related stocks like Coinbase and MicroStrategy on Wednesday.The analysts warned that the market’s initial reaction might be to “sell the news” but suggested any such dip was a buying opportunity for crypto and related stocks, reiterating their call for bitcoin to move closer to $90,000 by the end of this year, and reach a bull cycle target of $200,000 by the end of 2025 under the president-elect.Gautam Chhugani maintains long positions in various cryptocurrencies.

01 Nov, 2024

Sony Launches A New Era for Creators on Ethereum’s Layer 2

Sony Launches Soneium: New Ethereum Layer 2 Solution for CreatorsIn an exciting announcement, consumer electronics leader Sony has introduced Soneium, its proprietary Ethereum Layer 2 (L2) solution, set to go live on testnet in the coming weeks. This launch comes amid rising concerns in the crypto market over infrastructural inefficiencies and the need for more consumer-friendly applications.Focus on Creator Rights and Profit SharingAlthough details regarding Soneium's specific on-chain use cases are still unfolding, Sony’s primary emphasis is on supporting creators. The official Soneium blog highlights the importance of protecting creative rights and establishing innovative profit-sharing mechanisms that benefit both creators and their fans. This commitment to empowering content creators aligns with current industry trends, underscoring the growing recognition of their role in driving engagement and innovation.Built on Optimism’s Rollup Development KitSoneium will leverage Optimism’s rollup development kit, known as the "OP Stack," which currently supports 29 L2 chains within its Superchain ecosystem. This robust technological foundation ensures scalability and efficiency—critical factors for any successful blockchain project.Collaboration with StartaleThe Soneium launch will occur under Sony Block Solutions Labs, a joint venture between Sony Group Corporation and Startale, a Singapore-based blockchain infrastructure startup. With a recent $3.5 million funding round in June 2023, Startale brings valuable expertise, particularly its role in developing the Astar Network zkEVM chain, which will transition to Soneium.ZKsync Welcomes CREATOR ChainAt the same time, ZKsync is enhancing its ecosystem with the introduction of the CREATOR chain, a project incubated by ZTX (ZepetoX). This initiative seeks to leverage ZEPETO’s extensive user base of 20 million monthly active users to bridge Web2 and Web3. The CREATOR chain aims to provide personalized decentralized finance (DeFi) services for creators, capitalizing on ZKsync's zero-knowledge technology to enhance scalability and reduce transaction costs.Record Growth in Layer 2 TransactionsRecent metrics indicate that Layer 2 transactions are experiencing unprecedented growth, with Blast L2 nearing 2.5 million transactions in the past week alone. This positions it as the second most utilized L2 solution, following Base, according to data from Growthepie.As these developments progress, the focus on creator-centric blockchain solutions signals a transformative shift in the digital economy, presenting opportunities for mainstream adoption and innovative applications in the ever-evolving landscape of blockchain technology.