Cryptogram - 24FEB2023

Bitcoin Ordinals is GREAT NEWS 💃💃💃💃

24 February 2023

The newsletter is put together by Giottus Crypto Platform and The News Minute’s Brand Studio. You can read all the previous issues of Cryptogram

.

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Hello!

I don’t know about you, but the story which grabbed our attention the most last week was that

🤯😱 Straight out of the season 2 finale of The White Lotus, eh?

Here are our Top 5 stories for this issue:

1

1. The new (Indian-origin) CEO of YouTube is

. YouTube Metaverse and tokens, here we come? When that happens, we are gonna be like…

2

The platform is piloting playlists which can be unlocked by token holders.

3

Speaking of NFTs,

.

4

5

Glassnode says about $370 billion in Bitcoin is lying dormant, a clear sign of it becoming a long-term asset for investors. Good for them HODLers. Why? Read our main piece today.

 WEEKLY MACROS

Total crypto market cap: $1.14 trillion - 

 1.7% 

Bitcoin market cap: $463.62 billion -

 1.8% 

The dollar index (DXY): 104.57 -

 0.7% 

Bitcoin Dominance: 40.17% - 

1%

Crypto Fear and Greed Index:

53

- The market is in neutral condition as the crypto industry fears heavy regulatory backlash with Binance forced to close all derivatives positions in Australia, SEC cracking down on staking services in US etc.

 WEEKLY PRICE TRACKER

Price movements from last Friday

BTC Watch

 a meagre 0.73% with the world's largest exchange Binance force closing all derivatives positions in Australia in addition to overhead resistance zone near $25,000. China's liquidity injection can boost BTC's move in the coming weeks.

ETH Watch

 0.7% as volatility in the market has skyrocketed due to shorts piling up. ETH will likely follow the market leader's price action.

Altcoins Watch

MATIC

:

 5% as Polygon fires 20% of its staff painting a bearish picture for its future

FIL

:

 19% with Filecoin token outperforming Bitcoin amid increased use of decentralized storage protocols

VET

: 

 16% as it emerges out of its accumulation zone catalysed by the China narrative.

 WHAT'S HOT

  Coins to watch out for

Alchemy pay (ACH)

-  Alchemy Pay (ACH) is a payment solutions provider that seamlessly connects fiat and crypto economies for global consumers, merchants, developers, and institutions. ACH is the ERC20 incentivising utility token issued on the Ethereum blockchain. It is integral to the Alchemy Pay network. It has been one of the strongest performing coins in terms of price action ever since China narrative started to pick pace.

Stacks (STX)

- The Stacks chain, a layer-2 for Bitcoin network, connects to its network through a Proof of Transfer consensus algorithm. Stacks native STX token also surged as Ordinals inscriptions revive interest in the Bitcoin NFT space. In a span of just 2 weeks, the price skyrocketed from ₹26 (8th Feb) to ₹ 67.42 as of yesterday.

Project to watch out for

BASE

- The world's second-largest centralized exchange Coinbase has announced its Ethereum layer-2 solution called BASE that allows developers to build Dapps on-chain. Although BASE has clearly mentioned no token in the future, it is worthwhile for developers to keep an eye as it claims low fees and better features. It uses Optimism's stack to build its architecture.

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 THE HOT TAKE

Thanks to Ordinals, Bitcoin will grow

Bitcoin has, for most of its existence, been a vehicle of asset value transfer as defined by its founder Satoshi Nakamoto in its

.  Many blockchains, led by Ethereum, have innovated to identify use cases for crypto and its ecosystem. Bitcoin hasn’t, until now.

The growth of Ordinals and other associated products has found value in using the Bitcoin blockchain. We cover key trends on the same and how you can leverage this trend.

(Wondering what Ordinals are? Read

.)

1. NFTs on Bitcoin are a reality

NFTs found on Ethereum or Solana are unique tokens which contain a reference pointer to the target file, which is hosted elsewhere. Inscriptions on Bitcoin, on the other hand, actually contain the raw file data, written directly into the Bitcoin blockchain, making them somewhat unique in character. 

Ordinals have seen a steady rise in popularity recently, with some even calling it a direct replacement for Ethereum NFTs including the most popular

.

2. Ordinals have led to a spike in Bitcoin transaction fees and block size

The average transaction fees on the Bitcoin blockchain are increasing. BTC started the year with $0.63 as the average transaction fee and grew significantly by 158%, thanks to the increase in inscriptions. It is now near $1.62 (as of 22 Feb 2023).

3. Ordinals are spurring innovation on Bitcoin

Adding NFTs to Bitcoin will eventually mean that developers find a way to build integrations with other blockchains – leading to an integrated blockchain ecosystem. This is great for the crypto community in general. We have to note that BTC is currently classified as a commodity by the US SEC. Innovation on the main blockchain will be beneficial and offset the risks of altcoins being termed as security (and avoid higher taxation/scrutiny).

Associated products have developed including .btc addresses.

New wallets (Hiro), Growth of Stacks (STX), Ordinals-based marketplaces and .btc domains are all growing well as this trend plays out. Developers have also successfully integrated ordinals into Litecoin, which is a copy of Bitcoin. 

You, as an investor, can benefit from this trend in multiple ways. 

  • Invest in the growth of Bitcoin (long term): new innovation will keep the adoption of BTC growing in the future thus aiding its inevitable price growth.

  • Transact Ordinal NFTs and .btc domains: just like how NFT marketplace BLUR did an airdrop this month, we anticipate some of the services to airdrop their tokens to early users with good value.

  • Identify other growth vehicles like STX and LTC: Stacks is a layer 2 on Bitcoin and has seen good adoption post Ordinals. Its token STX has surged by 150% in the past week. Litecoin is in a halving year and the narrative of Ordinals may drive LTC price momentum in the short term.

That’s it for this issue, see you next week.

If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

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