Crypto Goes Green as Altcoin Season booms, But Biden Has Other Plans
Goooood morning Lion’s I trust you’re safe and well it is an epic Monday morning here on the East coast with the Crypto currency market exploding and there also appears to be a slight dip in Bitcoin but, if we look at the data it looks to be more people taking profits and taking risks in Altcoins. There still continues to be one stand out Crypto so far and that is Solana that just keeps peaking.
But the resent rises has many questioning when the current Bull marker bubble will pop and prices will come back down. It is a lot harder to guess this time around due to the increased liquidation. But typically the market does cool around U.S Tax periods where people need to take profits to report on their funds and cover their tax bills. So keep an eye out on that period.
Solana Out Performs Ethereum
There is some interesting news with the Blockchain platform Solana which has achieved a monumental milestone by surpassing Ethereum and other Ethereum Virtual Machine (EVM)-based Layer-2 solutions in 24-hour trading volumes..
These data sets can be viewed on DefiLlama which track all crypto data. Although Solana has moved quite a lot, it still has a long way to go to even get close to Ethereum. But Sol is getting closer to Binance’s market hold.
Solana's total chain volume soared to USD 3.654 billion eclipsing Ethereum's USD 2.397 billion. This change in investment patterns has not only solidified Solana's position as a frontrunner in blockchain transactions but has also ignited a greed rush among investors to acquire the SOL token.
Ethereum Loyalists Hit Back at Solana
The news of Solana's growing investment achievements is doing the rounds throughout the crypto currency sector capturing the attention of industry insiders and people looking to make a quick dollar. Anatoly Yakovenko, the co-founder of Solana broke his silence in response to the milestone succinctly acknowledging the platform's remarkable ascension.
Critics, although aligned to Ethereum have began to raise some concerns regarding Solana's centralized staking system, raising apprehensions about its susceptibility to exploitation. In response, Yakovenko clarified the distinctions between Solana's quorum control and the multisig control mechanisms prevalent in Layer-2 solutions. He stood by the robustness of Solana's quorum control, assuring users of its security and reliability.
Further discussions were had regarding blockchain resilience in the face of regulatory challenges emerged in the wake of Solana's triumph. As governments worldwide contemplate stricter regulations on crypto currencies the ability of blockchain networks to adapt becomes paramount. Yakovenko actively engaged in these discussions advocating for Solana's adaptability and proposing potential adjustments to navigate regulatory hurdles successfully.
President Has Other Ideas
The huge shift in trading volumes between Solana and Ethereum show how quickly the landscape of decentralized finance (De-Fi) can change. With Solana's huge rise Ethereum's longstanding dominance faces formidable competition. The rise of Solana signifies a potential paradigm shift in the decentralized finance ecosystem that could bring in a new form of innovation and competition.
But Solana's success isn’t the only news today with some more turmoil on the horizon with the crypto currency market faces renewed uncertainty due to regulatory concerns. Allegations have surfaced suggesting that President Joe Biden of the United States aims to enact stringent regulations that could jeopardize the future of crypto currencies in the country.
The Biden administration's proposal to impose a 30% tax on bitcoin and crypto miners has sent shockwaves across the industry. The proposed tax aimed at firms using high-powered computers for mining, has drawn widespread criticism for its potentially devastating impact on the sector. Industry experts warn that such a tax could drive miners out of the country, reminiscent of the exodus from China following regulatory crackdowns in 2021.
The prospect of regulatory crackdowns has cast a shadow over the crypto currency market, prompting concerns among investors about the future of their investments. Despite the bullish sentiment surrounding Solana's achievement, the looming uncertainty of regulatory change provides a caution of the need for vigilance and adaptability within the crypto currency ecosystem.
So with Solana's surpassing of Ethereum in Layer 2 trading volumes marks a significant milestone in the evolution of decentralized finance. As investors flock to capitalize on Solana's success, the crypto currency market braces for potential regulatory headwinds.
Although even with all these what if’s arising the biggest one that remains is what will happen in the near future with the increase of liquidity being brought in and mainstream investors continuously looking for new assets to gamble on.
Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.