Solana
Crypto SWOT: Solana just had its biggest rally in over a month
Strengths
- Among the cryptocurrencies tracked by CoinMarketCap, the best performer of the week was Kaspa, with an increase of 23.04%.
- Ether briefly pared losses after a report said the U.S. could approve exchange-traded funds holding the second-largest cryptocurrency as early as July 4. The SEC and fund companies are in the final stages of negotiations, Bloomberg writes.
- Solana saw its biggest rise in more than a month after VanEck, an exchange-traded fund issuer, filed for a product based on the digital asset, Bloomberg reports. The token rose as much as 11%, its highest level since May.
Weaknesses
- Among the cryptocurrencies tracked by CoinMarketCap, the worst performer of the week was Gnosis, down 13.14%.
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Losses are mounting in the cryptocurrency market after its second-worst weekly decline of 2024. Bitcoin hit a record high of $73,798 in March, Bloomberg reports, but it has lagged traditional investments such as stocks, bonds and gold this quarter. The 200-day moving average at around $57,500 is now in focus as a possible support area.
- Point72 Ventures, the venture capital arm of billionaire Steven Cohen, is moving away from fintech and cryptocurrency after laying off its five investors who focused on those areas. The departures include three fintech investors and two investors from Point72 Ventures’ digital asset team, according to Bloomberg.
Opportunities
- State Street Global Advisors and Galaxy Asset Management are developing a cryptocurrency exchange-traded fund aimed at protecting investors from the sector’s notorious volatility. The planned fund would target “the digital asset ecosystem” by investing in a combination of crypto-related stocks and other ETFs that hold physical Bitcoin or futures contracts, Bloomberg writes.
- Bybit surpassed Coinbase in March to become the world’s second-largest cryptocurrency exchange after Binance, Bloomberg reported. The launch of Bitcoin spot ETFs in the US helped Bybit double its market share to 16% in March from 8% in October 2023.
- Jesse Powell, founder of cryptocurrency exchange Kraken, announced on X that he has donated $1 million to former U.S. President Donald Trump’s campaign. Trump has recently expressed strong support for the blockchain and crypto industry, according to Bloomberg.
Threats
- Bitcoin investment products saw about $600 million in outflows for the second week in a row, the largest in a two-week period since the U.S. approved ETFs to hold cryptocurrencies in January, Bloomberg reports.
- Coinbase Global has sued two federal financial regulators in a bid to obtain documents about their oversight of cryptocurrency trading, Bloomberg reports, the latest twist in a series of legal fights between one of the largest platforms in cryptocurrencies and Washington agencies.
- The SEC has sued crypto firm Consensys for failing to register as a broker-dealer. The company violated rules by failing to register as a brokerage and collecting millions of dollars in fees, Bloomberg writes.
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