Overview
- ETH becomes deflationary.
- Markets: Quiet weekend.
- Visa partners with FTX.
- Brasil goes after the “Crypto Sheik.”
Good morning Banter Fam,
Ethereum experienced its first boat of deflationary tokenomics this weekend after a hyped project released its free-to-mint tokens. The culprit? Xen Crypto is a mysterious crypto project created by a former Google employee.
The XEN token produced a spike of activity on the Ethereum blockchain when 349k participants minted the free tokens. Although minting was free, users paid for gas in ETH, and for the first time since the Merge, the ETH token became notably deflationary. The minters burned 2,157 ETH in 48 hours.
Source: ultrasound.money
Source: ultrasound.money
What’s impressive is how quickly Ethereum became deflationary after one hyped project burned more than a day’s supply issuance of ETH. Moreover, it provides a slight glance at ETH’s future when the chain begins experiencing increased demand.
Regarding Xen Crypto, it’s probably best if we all keep our distance.
Market update 🌍
BTC/USDT 1W
It’s been nearly a month of BTC hovering around the $19.2K support zone and four months between $18.5K and $24.5K. BTC hadn’t experienced such a tight range for this long since May 2020, before the bull run kicked off. Trading volumes remain at all-time highs, indicating a structural basis change. Unless any major events unfold in macro, it’d be safe to assume BTC has exited a bearish cycle and entered a neutral cycle of accumulation and ranging price action. BTC completed the weekly candle up +2.01% to $19,439.
High-resolution chart
ETH/USD 1W
Unlike its predecessor, ETH remains in a downtrend until the price breaks the major resistance trendline. Price has begun to consolidate on the weekly charts as it enters more deeply into a triangle pattern. Wait for a solid breakout to confirm the pattern, signaling an end to the downtrend. Historically, ETH tends to outperform BTC during these types of breakouts. ETH completed the weekly candle up +3.58% to $1,321.
High-resolution chart
| US markets close | Gain/Loss |
| S&P 500 | *Weekend closed |
| Nasdaq | |
| Dow | |
| VIX |
Notable Gainers (24h):
| Protocol (Coin) | Price ($) | Gain (%) |
| Maker (MKR) | 917.98 | +5 |
| Elrond (EGLD) | 56.50 | +4 |
| Tokenize Xchange (TKX) | 11.49 | +4 |
| Quant (QNT) | 156.53 | +4 |
| TerraClassicUSD (USTC) | 0.033 | +18 |
| Decentralized Social (DESO) | 20.07 | +6 |
| Kujira (KUJI) | 1.36 | +15 |
| Bitcoin Fear and Greed Index | 22 Extreme Fear |
| “Crypto” Google Trends 90d | 49 |
| “Bitcoin” Google Trends 90d | 58 |
Newswatch 📰
FTX and Visa. The crypto exchange FTX has partnered with Visa to release crypto-based debit cards across 40 nations within South America, Europe, and Asia. In an interview with CNBC, FTX CEO Sam Bankman-Fried noted, “There’s a decision you have to make as a traditional payments company: do you want to lean into this or do you want to fight against it? I respect the fact that many of them are leaning into it.”
Brasil issues warrants for the “Crypto Sheik”. The Brazilian courts have issued over 20 warrants for Francisco Valdevino da Silva aka the “Crypto Sheik.” Hundreds of police officers in six cities were tasked with serving the search and seizure warrants across the country. Da Silva ran a crypto-based pyramid scheme that raised an estimated $767 million by promising high returns as far back as 2016.
News tidbits:
- Iranian Bitcoin advocate mysteriously arrested in Tehran.
- Dapper Labs agrees to Russian sanctions.
- California resident charged after using Bitcoin to launder $5.3m in drug proceeds.
- NFT marketplace X2Y2 introduces NFT lending service.
NFT & metaverse update 🐵
- OpenSea CFO resigns after ten months.
Banter’s take
Another quiet weekend. That makes two in a row for the crypto markets. It highlights how macro-driven the markets are at the moment. Unfortunately, it’s a fact of life we’ll have to live with for now.
Stay tuned this week for the Core PPI (inflation) print on October 12th and CPI y/y on the 13th. Both will significantly affect whether the Federal Reserve continues aggressive monetary tightening or considers loosening.
Gabri
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Disclaimer
Good Morning crypto (issued by Crypto Banter) is a newsletter for entertainment purposes only.
All opinions expressed by the publisher, writers, and chartists should not be construed as financial advice and do not necessarily reflect the views of Crypto Banter. The publisher, writers, and chartists may hold positions in the tokens and assets discussed. Readers are encouraged to do their own research.
