| Reading time: 5 minutes | News | Crypto Converter | Profit Calculator | WEN vs. SHIB: Solana-based meme coin takes lead in trading volume, sparking investor interest | | Key points: | Despite the volume increase, WEN was trading at $0.00008714, displaying an unprecedented fall of 36.44% over the last day. SHIB maintained a high social volume, suggesting continued discussions across social networks and a potential positive impact on its price.
| News - Shiba Inu (SHIB), a long-standing favorite among meme coins in the crypto space, faced an unexpected challenge as WEN, a meme coin native to the Solana (SOL) network, surged ahead in trading volume over the past 24 hours. As per data from SolanaFloor, WEN reported a trading volume of $115.08 million, surpassing SHIB's $88.60 million. | The significant uptick in trading volume hinted at a potential shift in investor focus and trading inclinations within the meme coin sector. However, despite WEN's brief ascendancy, its rapid surge minimally influenced prices. At press time, WEN was trading at $0.00008714, displaying an unprecedented fall of 36.44% over the last day. | What about SHIB? Interestingly, SHIB's social volume remained high, indicating consistent discussions across social networks. SHIB, along with other established meme coins like Dogecoin (DOGE) and Bonk (BONK), continued to maintain a stable market trajectory. | Analysis of Santiment's data by AMBCrypto revealed that the market cap movements of these meme coins were largely synchronized, suggesting that SHIB's influence in the crypto sector remained resilient. Despite challenges from new entrants, SHIB's deep-rooted presence in the market seems unlikely to be significantly affected by short-lived trends. | Binance reclaims dominance, market share jumps to 49% following DOJ settlement | | Key points: | The hype surrounding Bitcoin spot ETFs boosted trading volumes across the industry, benefiting Binance. Despite the gains, Binance's market share remains below its 2023 peak of 65%.
| News - Binance, the world's largest crypto exchange, has seen a remarkable rebound in market share since its November 2023 legal settlement with the U.S. Department of Justice. After hitting multi-year lows towards the end of last year, Binance's share of trading volume relative to other centralized exchanges climbed to 49% in January, according to Kaiko, a leading crypto market researcher. | The turnaround can be attributed to a confluence of these factors - | Settlement boost: While the initial impact of the $4 billion fine and increased compliance measures was muted, key developments in December and January propelled Binance forward. Zero-fee frenzy: The reintroduction of zero-fee promotions for top assets like Bitcoin, Ethereum, and XRP in December proved popular, likely stimulating demand for First Digital USD. This program played a crucial role in Binance's 2022 expansion and its absence last year contributed to a sharp drop in volumes. Bitcoin ETF bonanza: The excitement surrounding the approval of Bitcoin spot ETFs in early January fueled trading across the industry, and Binance, with its significant stablecoin inflows, was not left behind.
| These factors have collectively pushed Binance's market share back towards the 50% mark, though it still sits below its 2023 high of 65%. | Avalanche network sees a spike in validators and staking, but overall activity dips | | Key points: | Staking activity on the network has also increased, with over 52% of AVAX tokens currently staked. DEX volumes on Avalanche are growing, with Trader Joe seeing a significant increase in activity.
| News - The Avalanche network has seen a surge in validator numbers and staking activity in recent weeks, reaching an all-time high of 1,729 validators at press time. Additionally, the total number of staked AVAX tokens reached 231.99 million on January 30th, representing a staking ratio of 52.82%. This indicates a growing interest in the Avalanche network from both validators and stakers, highlighting its potential and appeal. | What about DEX volumes? Decentralized exchange volumes on Avalanche also saw growth during this period. Trader Joe, one of the largest DEXes on the network, witnessed a 4.92% increase in unique active wallets and a 23.27% increase in trading volume. These figures suggest that there was significant activity happening on the Avalanche network, particularly within the DeFi space. | Despite the positive developments in validator numbers, staking, and DEX volumes, overall activity on the Avalanche network declined in January. The number of daily active addresses dropped from 87,000 to 44,000, and the number of transactions fell from 2.97 million to 208,000. This decrease in activity could be a cause for concern, as it indicates that the network is not yet being used to its full potential. | In conclusion - The decline in overall activity could have a negative impact on the price of the AVAX token. If things continue in this direction, it could lead to a decrease in demand for the token and a subsequent drop in its value. | China revamps Anti-Money Laundering regulations, targets cryptocurrency transactions | | Key points: | China is set to make a major amendment to its AML regulations, expanding its scope to include cryptocurrency-related transactions. The first revised draft of the AML regulations was proposed in 2021.
| News - China is gearing up for a significant amendment to its Anti-Money Laundering (AML) regulations, signaling a targeted approach towards cryptocurrency-related transactions. Prime Minister Li Qiang chaired a State Council executive meeting on January 22 to discuss the revised AML law, addressing calls for increased scrutiny of the burgeoning crypto industry in the country. | The first draft of the revised AML regulations was proposed in 2021, with the legislative work plan of the State Council earmarking its signing into law by 2025. This marks the first substantial revision to China's AML regulations since 2007. | What do experts think? During discussions on the amended draft, scholars and financial experts highlighted the broad scope of the AML law, emphasizing the urgency of addressing issues related to crypto money laundering at the legal level. | Wang Xin, a professor at Peking University Law School, pointed out the lack of clear definitions for digital assets in current Chinese laws and stressed the mainstream trend of using cryptocurrencies for money laundering. | | More stories from the crypto ecosystem | | Interesting facts | Ruja Ignatova, accused of a $4 billion scam through fake crypto OneCoin, vanished in 2017. On the FBI's 10 Most Wanted list, she's believed to have armed guards and altered her appearance. BitClub Network was a $722 million fraudulent cryptocurrency scheme that solicited money from investors in exchange for shares of purported cryptocurrency mining pools and rewarded investors for recruiting new investors into the scheme. Sam Bankman-Fried, the founder of the FTX exchange, perpetrated one of the biggest financial frauds in American history. The exchange's downfall erased about $1 billion in customer funds.
| | Top 3 coins of the day | Bitcoin (BTC) | | Key points: | Based on the data, there was a marginal increase of 2% in BTC's volume of buy and sell orders. Bitcoin's put-to-call ratio declined minorly over the last few weeks. Thus, reflecting that the traders were mostly optimistic about BTC.
| What you should know - Bitcoin's month-long move of January hasn't been quite volatile, the king coin majorly traded within a demand saturation zone. Its press time price was $42,556, but bears were dominant over the last day. Short-term sell pressure was deciding the mood of the market. If the coin sees an influx of demand, it could go up to its immediate resistance of $46,000 soon. Aroon Down (orange line) crossing above 50 and approaching 100 while Aroon Up (blue line) remaining below 50 indicated a strengthening downtrend. | Dogecoin (DOGE) | | Key points: | Recently, Dogecoin's number of newly created addresses reached an all-time high. The weighted sentiment metric of Dogecoin showed that the market sentiment around DOGE was quite bullish.
| What you should know - DOGE has been following BTC's footsteps more closely. Its correlation to BTC has remained stable. The entire month of January saw the meme coin exchanging hands in a zone of consolidation, the market momentum favored neither the buyers nor the sellers. At press time, the coin was trading at $0.07895 with a 3.55% fall over the last day. The leading technical indicator RSI stood at 46.41 mark, highlighting that a further decline could be on the cards. | Polygon (MATIC) | | Key points: | AMBCrypto's analysis of Santiment's data revealed that Polygon's supply on exchanges decreased last week which was a bullish signal. Polygon recorded the second-highest number of "super user DEX swappers" in 2023, only behind Ethereum.
| What you should know - MATIC has been trading with the bulls of late, it saw a positive change of 9.14% over the last seven days. However, in January, the coin was majorly under sell pressure. The Fear and Greed Index metric was in the neutral category, at press time. And the Bollinger Bands indicated that the market was quite volatile in recent months. The volume has consistently moved down after 27 December. A bit more of a decline can, therefore, be expected. | How was today's newsletter? | | |
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