Cryptocurrency
Andreessen Horowitz Invests $100 Million In ETH Restaking Platform EigenLayer
Tech-focused venture giant Andreessen Horowitz (a16z) has invested $100 million in the Ethereum-based EigenLayer, suggesting that VC funding in crypto may be on course for a revival.
As reported by Bloomberg on Thursday, a16z was the sole backer of the funding round, which marks the largest investment ever received in EigenLayer by a wide margin.
Restaking With EigenLayer, Explained
The next largest investment in the platform was a $50 million raise in March during a funding round led by Blockchain Capital, a firm that has also supported platforms like Coinbase, Kraken, Aave, and OpenSea.
EigenLayer is a decentralized Ethereum “restaking” protocol, allowing users to repurpose their already staked ETH to also secure Ethereum sidechains. These sidechains may have different scalability and development properties from Ethereum’s base layer.
“It will enable all sorts of new kinds of applications to be built,” said a16z partner Ali Yahya during an interview with Bloomberg. “People will stake capital in order to gain rewards from new services that get spun up on top of EigenLayer.”
Ethereum introduced staking in September 2022, and has since become the most dominant proof of stake blockchain in history. According to Etherscan, over 39.6 million ETH are now staked on Ethereum, amounting to $118 billion worth of economic security at current prices.
Ethereum’s Inherent Security
“The idea is that when you stake on Ethereum, you are promising that you’re going to run the Ethereum network nodes correctly,” said EigenLayer founder Sreeram Kannan, a former associate professor at the University of Washington.
In return for locking up their ETH, stakers receive periodic ETH-based payouts from the network. Data from ultrasound.money suggests that current rewards provide a roughly 3% APR in ETH terms.
“With restaking, you are taking the same Ether and making additional promises that you will also validate other networks correctly,” continued Kannan.
He added that EigenLayer provides a point system for those who restake using its platform, but that they still have no plans to launch a native token.
A16z raised a whopping $4.5 billion crypto fund in 2022. General Partner Chris Dixon has confirmed that the company is still seeking crypto investments ahead of the 2024 presidential election.
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Cryptocurrency
Bitcoin Price Analysis: Can BTC Bounce Back to $100K Following 8% Weekly Drop?
Bitcoin has been navigating an ascending consolidation phase near its critical $108K resistance level, recently encountering a sharp decline.
However, strong support zones suggest a potential for a short-term bullish rebound.
Technical Analysis
By Shayan
The Daily Chart
Bitcoin has undergone an ascending consolidation phase near the $108K resistance region, only to face increased selling pressure and distribution activity from large market participants.
This wave of selling led to a significant 15% decline, with the price finding support around the $90K mark and the middle boundary of a long-standing bullish price channel. These levels represent a critical defense line against further declines.
A rebound from this support could set the stage for a renewed attempt to reclaim the $108K mark. Conversely, a failure to hold it may lead to a deeper correction, with the channel’s lower boundary near $75K serving as the next key level of support.
The 4-Hour Chart
On the 4-hour chart, Bitcoin has been consistently trending upward within a multi-month bullish channel. The recent rejection at $108K triggered a sharp decline, bringing the price down to the channel’s middle boundary near $95K, a crucial dynamic support level.
A bounce from this region is anticipated, allowing the price to stabilize and potentially resume its uptrend. However, concerns over a hawkish monetary policy for 2025 may amplify selling pressure, increasing the likelihood of a bearish breakout.
In such a scenario, Bitcoin could face further downside, with $90K as an immediate target and $75K as long-term support.
On-chain Analysis
By Shayan
The Bitcoin Long-Term Holder SOPR metric provides valuable insights into market behavior and investor sentiment. Between 2022 and mid-2023, the SOPR remained below 1 for an extended period, indicating that long-term holders were selling at a loss associated with market capitulation.
By mid-2023, the SOPR began trending closer to or above 1, marking the beginning of a recovery. This shift was aligned with a broader market rebound as Bitcoin prices rose, reflecting renewed confidence among investors. The upward trend in SOPR suggested that long-term holders were no longer selling at a loss, a key sign of improving sentiment.
As the market moved into 2024, Bitcoin prices continued to climb, and the SOPR consistently stayed above 1. This shift signified that long-term holders realized profits, but the selling pressure remained controlled.
The stability of the SOPR above 1 highlights sustained confidence among investors, reinforcing that market conditions support continued growth, with a potential for further market expansion.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
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Cryptocurrency
Dogecoin (DOGE) Price Can Skyrocket by 12,000% If History Repeats
TL:DR;
- Dogecoin was once the top-performing cryptocurrency after Donald Trump’s victory, going from under $0.15 to almost $0.5.
- Although it has lost its momentum, especially in the past week or so, history shows that its most spectacular price surge during this cycle could still be around the corner.
Can DOGE Pull a 2021-Like Rally?
Perhaps due to its affiliation with Elon Musk and his upcoming role in Donald Trump’s administration, Dogecoin skyrocketed after the US presidential elections. Its price exploded by more than 200% from its aforementioned bottom to $0.485 on December 8.
After these quite impressive gains, though, DOGE started to retrace but still maintained the $0.4 level. However, that all changed last week when the market-wide crash pushed it south hard. In just a few days, DOGE’s price tumbled by nearly 40% to $0.26.
Although such a massive correction sounds painful, it is not something unheard of for the crypto market, especially in the ever-volatile meme coin sector. Similar enhanced fluctuations have transpired in the past as well, which could actually suggest a more favorable future for DOGE.
Popular crypto analyst Ali Martinez compared the recent crash to similar developments that took place during the bull cycles in 2017 and 2021. In both instances, the largest meme coin surged by triple-digits, retraced by 40-60%, and then shot up by four or even five digits by the end of the respective runs.
In 2017, when #Dogecoin began a parabolic run, it surged 212%, retraced 40%, then rallied 5,000%. In 2021, it went up 476%, retraced 56%, then skyrocketed 12,000%.
Now, in 2024, $DOGE is up 440% and has retraced by 46%. If history repeats, another parabolic rally is on the way! pic.twitter.com/uhf2kMc0Id
— Ali (@ali_charts) December 23, 2024
Can DOGE Soar Above $10?
Skyrocketing by 5,000% or 12,000% sounds quite bullish, but let’s look at these predictions more realistically. In 2017 and 2021, DOGE’s price was a lot more modest, and posting such massive gains seemed easier, at least on paper.
If the OG meme coin is to surge by similar percentages from now on, its price and market cap would have to go to the stratosphere. For example, a 5,000% increase would put its price at over $13, and the market cap would be at over $1.9 trillion – or bigger than bitcoin’s current one.
If DOGE repeats the 2021 gains, then its price would go all the way up to $31-32, and its market capitalization would be north of $4.5 trillion – bigger than Apple’s.
Although these numbers sound quite far-fetched and history is no indicator of future price performances, this doesn’t necessarily mean that DOGE has peaked during this cycle. Dogecoin is still far away from its all-time high registered in 2021, and many other assets have managed to break their peaks, so DOGE might still have a lot of room for growth.
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Cryptocurrency
Why is the XRP Price Down Today? (Ripple Price Analysis)
Ripple is navigating a pivotal range between $1.8 and $3, with recent price action highlighting the likelihood of a consolidation phase.
A breakout from this range will likely determine its next significant trend.
By Shayan
The Daily Chart
XRP recently faced rejection at the critical $3 resistance, triggering increased volatility and initiating a sideways consolidation phase. After that, the price found support at the $1.8 level, a key zone filled with demand and buying pressure.
This support region can limit further downward movement and maintain the cryptocurrency within the $1.8-$3 range.
As the price consolidates, a bullish or bearish breakout will determine Ripple’s upcoming trajectory. While this could lead to a sustained uptrend, an unexpected bearish breakdown might trigger a significant liquidation event, causing the price to plummet toward lower levels.
The 4-Hour Chart
During the 4-hour timeframe, XRP consolidates within a descending wedge pattern, which often signals a potential bullish breakout if breached upward.
Currently, the price is testing the wedge’s lower boundary near the $1.8 support level, where increased buying activity is expected.
In the mid-term, Ripple seems likely to continue fluctuating within this pattern, with a bullish breakout aiming to reclaim higher levels near $3. Conversely, a bearish breakdown below the wedge’s lower boundary could initiate a decline, potentially driving the price toward the $1.5 threshold, a crucial support level.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
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