KTX Finance Market Edge š¶š©
Summary of Key Crypto Market Developments in Feb 2024
TLDR š
- BTC ETF inflows hit how much??
- Have we commenced Up Only?
- EIP-4844 is live, whatās this mean for ETH L2s going forward?
March Madness: Green Markets š
January leading into February was indeed a choppy time in the markets for all participants. The ETF inflows and peopleās opinions on how that would affect BTC price action, caused a lot of uncertainty during this time period.
But February turned out to be a great month as BTC took off from 41k and went up to 64k, leading the charge for the rest of the markets to follow suit. Everything from ETH to SOL to you name it, pumped hard throughout all of February.
This led us to another pivotal moment in Bitcoinās history: New All Time Highs.
Bitcoin: All Hail the King š
March 5th was the day as BTC poked its head just barely above previous all time highs and brought about memories of the 20k break a few years ago. That memory unlock is one of pain as BTC nuked almost immediately down to 59k, causing a 14% drop in price.
However, if you were patient this proved to be a legendary buying opportunity across the board as crypto rebounded heavily, with BTC even managing to scrape 73k at current time of writing.
Thatās a huge bounce and that will be more clear as we discuss ETH and some other altcoins!
Weāre also still counting down the days until the BTC halving to see what kind of effect that will have on the price action, and will it hit everyoneās moonshot prediction of 100k BTC??
Could this potentially happen due to the BTC inflows from the many ETFs?
Its very possible as weāve seen roughly $7.5B in inflows since the ETF launch in January!
TradFi is learning not to fade the King!
Ethereum: EIP 4844, Nuff Said š„
Ethereum has had a great run of form in the past few months, although not necessarily to the extent of the king, as ETH is still below prior all time highs. For the last year or so, ETH has roughly underperformed many coins like SOL and BTC but is starting to catch a few more headwinds as of late.
Weāve spoken many a time about the potential that an ETH ETF would have on its price action but it all still rings true. As weāve seen with BTC, the buy pressure from the ETF inflows is immense and could cause ETH price to catapult upwards.
But thatās not the only thing that ETH still has going for it!
Iām talking about EIP 4844, the proto-danksharding upgrade known as Dencun. This upgrade lowered fees on all ETH L2s considerably, which should help to drive more traffic and adoption towards those chains.
Some of these chains saw up to 99% decrease in gas fees after this upgrade which is massive!
It brings a lot of on-chain eyes back to ETH and might give people a reason to start looking for that next memecoin on ETH L2s instead of Solana!
Solana: Memecoin Market Leader š¤”
Speaking of Solana, on-chain autists are buzzing with the latest trend in crypto.
Whatās that trend you ask? Memecoins galore!
Solana has managed to create a monopoly on this niche corner of the market, so much so that Dexscreenerās top coins page was completely dominated by Solana shitcoins.
Has this stranglehold on the crypto attention economy culminated in good prices for SOL? It sure has!
SOL bottomed out in February around $93 and proceeded to absolutely rocket up toward $137! Now SOL, like every other coin on March 5th, crashed alongside BTC.
It cratered out near $105 leaving a long wick in its wake as it teleported to a recent high at $188. Those dip buyers are feeling pretty pre-rich right now Iād bet!
Arbitrum: Benefitting from the Blob šµ
A thesis roaming around on crypto Twitter was that the launch of proto-danksharding with EIP-4844 would be bullish for the L2 tokens, including ARB.
From what the charts are telling us, that wasnāt necessarily correct, nor was it wrong. How does that make sense?
Well currently, ARB is just consolidating above prior all time highs, and its doing so a bit quietly. This could be that other coins are taking the spotlight away from them for now, but itās been quite resilient.
ARB is a bet on the Arbitrum ecosystem though, which has been booming recently. Not only did we launch a new iteration of KTX on Arbitrum, but numerous other protocols are thinking of doing the same, like the highly acclaimed Ethena project!
With EIP-4844 drastically lowering gas fees, will this herald the start of L2 season?
BNB: Near All Time Highs š
Bet you werenāt prepared to read that headline were ya?
Thatās right readers, BNB is almost back to all time highs like a silent killer. BNB got within 8% of the top and is seemingly catching a huge bid!
BNB has had a few different catalysts causing some attention to rotate back to it, including the AI darling Netmind along with the hugely popular Binance Launchpool.
Launches like AEVO, PORTAL, PIXEL, and now ETHFI have driven people to buying BNB in order to take part in these events. BNB is up over 95% since February, one of the top gainers in the market!
Will this trend continue? We definitely hope so!
Mantle: Puff the Magic Dragon š²
Behold, another beneficiary of EIP-4844! Mantle, like many other ETH L2s, also saw their gas fees significantly decrease in the last few days.
Mantle had plenty of catalysts on our last edition of Market Edge, as they had launched their mETH LST and were in the process of onboarding new projects like Merchant Moe.
MNT as a token has performed well, moving from a low point of $0.56 to over $1.08. This moves in tandem with how well the ecosystem has been doing and the mETH launch brought about a large amount of attention to Mantle.
Speaking about mETH, they had something big that went under the radar for a lot of crypto twitter. What was it you ask?
It was the Puff the Magic Dragon! mETH holders were able to mint some Mystic Potions that gave them allocations for Puff.
We love to see a good memecoin get exposure in other ecosystems especially when its one of our favorites!
Wrap Up š
Weāre pretty deep into bull market territory and we still have plenty more exciting things to look forward to in the market. These are things like the BTC halving, potential ETH ETF, upgrades going live on ETH L2s, and the continued dominance of SOL and BNB in the market.
There will be so many money-making opportunities for the ones that are able to take advantage of these situations and for the traders that can do so, make sure youāre trading on KTX!
You can earn multiple rewards and take part in the many different campaigns we deploy throughout the year!
We can assure you that you arenāt ready for what KTX has in store for the rest of the year, so stay tuned on all our socials!
