Daily Digest 1/11
Insight on the biggest stories of the day. “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”
JPMorgan Chase CEO Hints at Four 0.25% Rate Hikes, Here's What It Means for Crypto
Fear of rapid interest rate increases sparked a bit of a sell-off in the crypto market recently as many other economic factors start to pile onto the downward movement. JPMorgan Chase CEO Jamie Dimon thinks that the four .025% key interest rate increases would change the shape of the economy. A high key rate would mean investors would be looking to take on less risk at the moment and put their money into commodities to offset that. Both times that the fed has previously announced a rate increase the crypto markets crashed as well.
The next few months could continue to be affected by these poor market conditions but for the moment Bitcoin is having a bit of a bounce-back day currently trading at a 3% increase in the past 24 hours. Ethereum is having an even better day as it is up 6% bringing a bit of optimism heading into the middle of the week.
Dimon as well as other also mentioned that the market is currently oversold and could bounce back in the short term for a moment. Sentiment has not been positive even before the announcement of the increase in rates as markets are in a state of extreme fear but all it takes is one big purchase to swing things around.
Ethereum-compatible smart contract parachain Moonbeam is live on Polkadot
Ethereum has many competitors coming up but that does not have to be a bad thing for both of the projects. Just recently Polkadot launched its para chain slot auctions which allow projects to essentially bid for a spot on Polkadots chain. This process allows owners of the DOT token to choose which projects are able to build on the Polkadot blockchain adding an extra layer of decentralization.
Moonbeam was the second project to win a slot in DOTs ecosystem and they would help bring two of the biggest blockchains together. The goal of Moonbeams project is to be an Ethereum compatible smart contract para chain that is now live. This will allow developers the ability to build dapps on Polkadot using the same programming language as they would on ETH.
They are not the only exciting Web3 project coming to DOT. Soon they will see The Graph as well as Chainlink in the next couple of weeks. So far Moonbeam had a lot of crowd loan supporters with a total of 200,000 people that raised $944 million dollars. The founder of Polkadot, Gavin Wood, is a former founder of Ethereum and interoperability is what he wanted to focus on the most.
New NFT platform LooksRare has burst onto the scene in the past day and even has people talking about it as an instant competitor to OpenSea. They peaked at over $10 million in volume in just one hour with a lot of talk about an airdrop and high APR returns which is not always a good sign unless you can say you absolutely trust the marketplace.
NFTs as a whole have been booming the past month and that means that people are going to want to try and eat away at the market share that OpenSea controls. With the market in a bit of a downswing, it may be a good time to sweep some NFTs for cheap if gas prices are low. Projects receiving a lot of attention recently has been Psychedelics Anonymous, Prime Apes, and the Staxx Invaders all beginning to roll out as just as the new year began and all have amazing teams behind them.