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What is Alephium?
The Triple Scoop
February 09, 2024
SCOOPāS TL;DR
š MARKET SENTIMENT
The bulls are back and taking charge for now, pushing BTC to $47.5K, and Alts are being pulled up with it, crypto Twitter is screaming for higher. Whilst this is great, we have to be careful we donāt fall into a left-translated cycle. But why?..
š„ THE TRENDING NARRATIVE
ERC-404 - Continues
šļø BARBELLāS WEEKLY PICK
$ALPH - Alephium
šļø TOP STORIES
Highest Activity Since 2022
Sharp Rise Liquidates Shorts
Thai Tax Breaks
š WEEKLY WINNER
Flood
š” REKT SECTION
Bitsonic CEO
š PREMIUM SCOOP
Crypto Total Market Cap $1.79T - 24/hour change 4.37%+
Total Crypto Market Vol $66.64B - 24/hr change 16.83%+
Majors - 24/Hour change
ETH - $2558 - 3.69%+
Trending Tokens - 24-hour
$DYM - 11.2% - Roll ups / IBC
$MEMEAI - 14% MEME
$MAVIA - 55% - Gaming
The bulls are back and taking charge for now, pushing BTC to $47.5K, and Alts are being pulled up with it, crypto Twitter is screaming for higher. Whilst this is great, we have to be careful we donāt fall into a left-translated cycle.
So what is that? For the bull run to deliver its maximum returns possible, we need to follow the 4-year cycle and extend into late 2025. Think of it like a marathon, not a sprint. A longer extended cycle allows the market to mature, gather sustained growth & absorb new market participants. But how could the 4-year cycle be broken, leading to a left-translated cycle?
If we exceed the previous Bitcoin $64K, before the Bitcoin Halving in April, it would result in a Left translated cycle, meaning the Cycle top would accelerate, being brought forward to Nov 2024, instead of Q3 2025. Now whilst this may sound great, it would mean the total crypto market cap would be smaller at cycle top than if we experience the full 4-year cycle.
The lesson here is to be careful what you wish for, so far the 4-year cycle is intact. We will keep you posted on this!
Bitcoin sending, but we think it is likely to push down.
Dominance for BTC is pushing right up 53.6%, and alts are pulling up alongside it, donāt be fooled into thinking it is ALT season yet, this is simply the King (BTC) dragging his merry men along for the ride, We will need BTC dominance to push higher first then retrace before ALT season fully occurs. Expect BTC to lead the charge for now.
Remember dominance can increase, whilst Bitcoin prices come down, and vice versa.
DEGEN
Solana is having a bit of a cool-off period, following the surge of opportunities we saw last month, that are still to be had for sure, just not as parabolic as a few weeks.
Looks like some interest is cycling back around to ETH shitcoins with the 404 meta.
From a 404 price action perspective, if you can catch new 404 projects launching, a lot of them run hard, but from what we have seen, they look to aggressively run up once, and then lose momentum struggling to regain their highs.
You have to be cautious with 404 new launches, we have seen a huge amount of rugs in the last few days with even the smartest of āDegensā being caught off guard.
Overall defo gains to be had in #404, but exercise caution, their price action is weird & rugs are plenty.
šØBREAKING
ETF Inflows go BRRRRRR
Bitcoin ETFs record third-largest inflow day as BTC price rises above $47,000
š® NARRATIVES TO FOCUS ON IN 2024
- AI Infrastructure / Autonomous agents
- DEPIN (Decentralised Infrastructure)
- RWA - Real-World Asset tokens
- Memes - (youāre not too good for them)
- Eigen Layer
- BTC Defi / BRC20
- New Layer 1ās
- Parallelization EVM / Modular Blockchains
- Solana Killers
Be the envy of friendsā¦
š„ THE TRENDING NARRATIVE
Crypto is a narrative & trend-driven game, where attention goes, the money flows. So whatās hot?
CONTINUEDā¦
If you had scooped some $PANDORA then, you would be up over 100% right now. Nice.
But how is the market taking these new ERC-404ās
Well, as mentioned above, whilst projects are launching left, right, and center, rugs are happening daily. A lot of the liquidity pools aren't locked with these new launches of 404, meaning that devs can pull the liquidity out of the protocol at any time.
Winners since we posted earlier this week have been:
$PANDORA / $DEFROGS / $ALPHABET $PEPE
Some hard rugs have been:
$PARCEL & ENGINE to name a few. (Personally got rugged on $PARCEL yesterday after being up 230%).. That hurt
Honestly, the price action is super weird, with hard runs out the gate, and then struggling price action thereafter, we can only think this has something to do with tokens being fractionalized NFTs and the supply/demand mechanics being slightly off.
Keep an eye on the narrative. It will be interesting how it develops. When NFTs first & BRC20ās hit the market they were met with skepticism before the world jumped on board, will this be the case for #404 or will it be a passing fad?
Already we have seen another Iteration of the tech and that is ERC 20721 standard, a recent example of this is Wrapped Cellmates, where the tech eradicates the high gas & rarity issues found in 404s. (Very new, but something to be aware of) letās see if it catches on.
šļø BARBELLāS WEEKLY PICK
In each issue, our Founder āJack Barbellā delivers a hot rising star crypto asset that is yet to explode.
You can Follow Jack Barbell on X - @thebarbell_
So I shared Alephium $ALPH in the premium section a few weeks back, and it is since 30% up, as predicted, the snowball effect would start & influencers would start to shill. Today itās trending in finance on Twitter, despite being up, itās still a very strong contender for the bull run. As a trade idea, we feel itās a very strong ecosystem play & a long-term hold for the portfolio, you can either dollar-cost average in or find an entry, and let the bull run its course to maximize value.
Letās dive into the project.
As a TLDR, it is being described as a KAS but with the ability to deploy and implement smart contracts.
Onto some technicalsā¦
Alephium is revolutionizing the blockchain landscape through its visionary approach. Founded by Cheng Wang, the exceptional team brings expertise in finance, technology, open-source software, and academia, with Wang's background in cryptography and distributed computing itās fair to say he knows his way around a blockchain. The BlockFlow sharding algorithm powers Alephium's scalability, supporting over 10,000 transactions per second for a seamless user experience. Security is held high, Alephium enhances smart contracts and dApps with a new VM, setting higher standards in blockchain security.
Itās green?..
Remember when all the tree huggers were shunning Bitcoin for its environmental impact? $ALPH embraces decentralization and GreenTech, Its Proof of (Less) Work consensus reduces energy consumption by over 87%, offering a more green, decentralized network. With a user-first approach, Alephium offers beautifully crafted wallets that prioritize intuitive interactions. Boasting a thriving ecosystem in 2023, with over 150,000 GPUs and a dApps TVL exceeding $30M+, Alephium is on track to make a name for itself.
Given the market cap of around $180M right now, itās in that sweet zone, not too small to be a low-cap flop, but not so large that the upside is capped. Certainly confident as a staple in our bags for 2024.
So why could Alephium Moon like $KAS?
Follow the Hashrateā¦
$Kaspa's Soaring Heights: Witnessing an all-time high, $Kaspa's hashrate stands strong at 141 PH/s, equivalent to a massive 171,000 TH/s. Price has proceeded with their rise in Hash Rate, making a compelling case for price action, following Hashrate.
$ALPH's Hash Surge: Enter Alephium, matching the stride with its record-breaking hash rate at an impressive 375 TH/s, up 75 TH/s since we posted in premium, The table below tells the story of Alephium's ascent, mirroring the upward momentum in hash rate witnessed by $Kaspa in 2023.
Hashrate-Price Synchronicity: Drawing parallels between the price action and hash rate charts reveals an intriguing pattern. As $Kaspa's hash rate began its ascent from August 2023, the price action closely followed suit. Notably, the hash rate of KAS being 470 times that of ALPH signals the exciting potential for $ALPH's price trajectory.
With a strong hash rate foundation and a narrative akin to $Kaspa's success, the sky seems the limit for $ALPH. As history suggests, the hash rate could pave the way for an exciting journey towards new highs.
Now trending on Twitter, KOLās are certainly waking up, and each week this gem becomes more compelling.
š TOP STORIES
Highest Activity Since 2022 - Let the bull commence
At a glance š
Spot trading across centralized crypto exchanges grew for the fourth month on the bounce.
The levels of trading witnessed in January 2024 are the highest since June 2022.
January saw a 4.45% increase from December in terms of volume, which stood at $1.40 trillion.
šµļø Scoops take:
$1.40 trillion of volume in trading, can you hear the bulls charging?
Whether this is those who abandoned returning or the ETF bringing in the newbies, crypto is thriving.
We repeat, the ETF has allowed Crypto to be portrayed as a genuine top-tier sector and its acceptance globally will benefit everyone.
These bulls donāt need any red capes to get charging.
At a glance š
Bitcoin has soared through the $47,000 mark over the last week up from a 7-day low of $42,300
With the rise came the short liquidations with over $44m in Bitcoin short positions being wiped in the last 24 hours.
The wider Crypto market saw liquidations of over $88m in short positions in the last 24 hours.
šµļø Scoops take:
Each passing day just now is one closer to halving, and with halving comes a rise.
We arenāt saying that shorts on Bitcoin are a bad play, but they are certainly carrying a lot more risk with all the bullish intent around us.
It feels as if the $45k mark was a big barrier to break through, especially when 2 weeks ago Bitcoin was floating at the $38k mark.
Short with care.
Thai Tax Breaks - a new haven on the horizon
At a glance š
Thailand is the latest country to announce Crypto tax breaks.
They want to become the leading hub for trading digital assets in Asia.
The tax decision is the exemption of the 7% value-added tax (VAT) on earnings made from trading crypto and digital tokens.
šµļø Scoops take:
This is very much like Argentina where an attractive tax position is always welcomed.
It is well documented that India and the UK are heading the opposite way so donāt be surprised to see more traction from the favourable nations.
Thailand is not short of competition in the region with Singapore also making it well-known they want to be the Asian hub.
The more that follows suit the better.
Less Tax = Happier Traders.
š WEEKLY WINNERš
Flood
Ethereum-focused DEX aggregator Flood has raised $5.2m in a seed round led by Bain Capital Crypto.
Flood provides decentralized application (dApp) developers with a variety of tools for owning and managing the entire lifecycle of their applicationās order flow. Developers use the system to monetize their applicationās order flow which allows users gassless trading, optimal routing and an ideal execution quality.
The company intends to use the funds to grow its team and expand its integrations with new blockchains and DEXs.
š” THE REKT SECTION š”
Bitsonic CEO
The CEO of the Crypto exchange, Bitsonic, has been sentenced to 7 years in prison for $8.4m in fraud and market manipulation.
He was found guilty of inflating the market value and trading volume of a coin issued by the exchange and embezzled $8.4m in customer deposits.
Another sour story for the space.
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