3 days ago

Ethereum Market Turns Optimistic: Funding Rates Hint At Potential $4K Comeback

Amid the broader decline in the global crypto market, Ethereum emerged as one of the major cryptocurrencies that has been impacted significantly. Despite already being underperformed in the recent bull run, Ethereum has now experienced a notable correction, dropping to as low as below the $3,500 price level in recent weeks. While this price performance from ETH might have led investors to lose interest in Ethereum for now, recent data from the CryptoQuant platform suggests a possible turnaround, with key indicators pointing towards renewed market confidence. Related Reading: Is Ethereum Ready To Break Out? Key Indicators Suggest Strong Market Confidence Funding Rates Indicate Renewed Confidence Among Traders A CryptoQuant analyst, ShayanBTC, highlighted Ethereum’s futures market developments in a recent analysis titled “Ethereum Futures Market Signals Potential Rebound After $3K Correction.” The analysis from Shayan reveals that the futures funding rates, which act as a sentiment gauge for traders, have shown signs of stabilization after the price drop, hinting at a potential recovery. According to the analyst, Ethereum funding rates have shown an increase after the recent sharp correction, indicating a higher appetite among traders for long positions. Notably, funding rates are a mechanism in perpetual futures contracts where traders holding long positions pay short sellers, or vice versa, depending on market sentiment. When funding rates rise, it typically suggests that traders are leaning towards a bullish outlook. Shayan disclosed that the spike in funding rates implies increased demand for Ethereum at its current price level, signaling that traders expect a bounce-back from the $3,000 region. The analyst further explained that such behavior often precedes significant upward price movements, particularly when combined with a period of market consolidation. In his words: The recent spike in funding rates suggests an influx of buyers, which, if sustained, could drive a substantial bullish rebound. This renewed buying pressure has the potential to push Ethereum toward the crucial $4K resistance in the short to mid-term. Ethereum Market Performance After weeks of consistent decline, Ethereum currently trades at a price of $3,310, at the time of writing down by 1.5% in the past day. This market price marks a 32.2% decrease away from its all-time high (ATH) of $4,878, recorded in November 2021. Interestingly despite the drop in ETH’s price, the asset has still managed to see a slight increase in trading volume in the past day. Related Reading: Ethereum Price Guns For A Mid-High Timeframe Reversal Against Bitcoin In Bullish Q1 2025 Particularly, as of this time yesterday, ETH’s daily trading volume stood at a valuation below $15 billion, however, at the time of writing, the asset’s daily trading volume valuation sits at $20.6 billion. Featured image created with DALL-E, Chart from TradingView

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FCA Struggles to Enforce Crypto Advertising Ban Effectively

The FCA faces difficulties in enforcing its ban on cryptocurrency advertisements. Regulatory challenges stem from inadequate collaboration with technology platforms. Continue Reading: FCA Struggles to Enforce Crypto Advertising Ban Effectively The post FCA Struggles to Enforce Crypto Advertising Ban Effectively appeared first on COINTURK NEWS . NewsBTC

2024 Crypto Narratives: DeSci And AI Surge As Legacy Trends Fade

Kaito data reveals a dramatic reshaping of crypto narrative mindshare in 2024, with decentralized science (DeSci) and artificial intelligence (AI) leading the charge. While some trends like DeFi and memecoins showed resilience, others, including layer routing technologies (LRTs) and DePIN, experienced a steep decline. Breakthrough Narratives DeSci saw an astounding 2,640% increase in mindshare, marking a breakthrough year for blockchain’s application in scientific research. While DeSci is still far from dominating Web3 discussions, its growth signifies a pivotal moment for the space. AI narratives also continued their impressive trajectory, growing by 116%, even with an already high baseline of interest. Similarly, trusted execution environments (TEE) and chain abstraction gained traction, with respective increases of 192% and 160%. Established Leaders Stay Strong Despite the rise of new narratives, DeFi and memecoins remained strong, demonstrating their enduring relevance in the crypto ecosystem. These sectors sustained their high levels of awareness from the start of the year and continued to attract attention. We can finally unveil the biggest mindshare growers of 2024 It’s still far for DeSci to dominate the Web3 mindshare, but the increase in interest over the last year can definitely be seen as a breakthrough moment It’s also worth noting how strong DeFi and memecoins… pic.twitter.com/E4XqsX5PaC — Michał Moneta (@michmoneta) January 2, 2025 Trailing and Disappointing Trends On the flip side, older trends saw a significant decline. LRTs, a major focus in 2023 and early Q1 2024, dropped by 82%, while account abstraction and BRC-20 tokens decreased by 71% and 77%, respectively. Surprisingly, decentralized physical infrastructure networks (DePIN) underperformed, failing to meet expectations. Meanwhile, GameFi, ETFs, and Layer 2 solutions also saw reduced interest, with declines of 41%, 63%, and 58%. According to Kaito data, compared with the beginning of 2024, the narrative mindshare of AI concepts increased by 116%, DeSci increased by 2640%, TEE increased by 192%, and chain abstraction increased by 160% at the end of 2024; LRT decreased by 82%, account abstraction decreased… pic.twitter.com/aY2rGA5JTa — Wu Blockchain (@WuBlockchain) January 1, 2025 As 2024 comes to a close, it’s evident that the crypto industry is undergoing a shift. Emerging narratives like DeSci and AI are defining the future, while older trends continue to fade into the background. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: burdyak/ 123RF // Image Effects by Colorcinch NewsBTC