Dogecoin News
Weekend Movers: Filecoin (FIL) and Dogecoin (DOGE)
Bitcoin rose in early Monday morning and tried to reclaim the $30,000 support level, only to briefly fall under $29,000. In tandem with BTC, altcoins also plunged before seeing a bounce while still remaining in red.
This comes after the volatile last week, during which the largest cryptocurrency traded in the $29,500 and $30,400 range.
For now, the spot market continues to drive prices with the perpetual futures market showing that traders remain risk averse with the ratio of open interest (OI) in BTC perpetual futures to bitcoin's market cap over the past month locked in a tight range of 1.5% to 1.7% and well below last Sep. high of 2.6%.
So, while Bitcoin holds $30k, there hasn't been a change in the risk appetite of futures traders. When looking at leverage in the market, by dividing the OI by BTC's value of BTC held in wallets tied to derivative exchange wallets, it shows that it has been largely stagnant since late June.
At the time of writing, BTC/USD has been trading at $29,292, down 2.1% in the past 24 hours and 1.9% in the past week. Similarly, Ether is in red and is now exchanging hands at $1,847.
These losses come after the US House Republicans introduced a new digital assets oversight bill that intends to create a protective regulatory framework for investors in the crypto sector last week. The bill was originally drafted in early June to pave the way for crypto exchanges to register with the US Securities and Exchange Commission (SEC) to facilitate the trading of stablecoins, commodities, and digital securities within a single platform.
On the regulatory front, another development came from the SEC, which hinted at challenging the Ripple ruling. The agency said on Friday that a portion of the court's recent verdict in the Ripple case was “wrongly decided,” as revealed by documents filed in the regulator's ongoing lawsuit against Singapore-based Terraform Labs. SEC chairman Gary Gensler has also expressed disappointment over the court's ruling on XRP's securitization.
This adds to the uncertainty in the market amidst the lack of retail interest and slow recovery following the 2022 collapse.
Besides the regulatory uncertainty and profit-taking, sending the prices lower, the crypto market is also anticipating selling pressure from the US government's sale of confiscated BTC. Overall, the crypto market seems to be consolidating, and while sentiments are positive, both bulls and bears need to be cautious.
Now, all eyes are on the Federal Reserve's decision on rates on July 27, which at this time, is priced in. The market has been expecting a 0.25% increase in rates which are currently in the 5%-5.25% range.
With the FOMC decision on interest rate policy due Wednesday and many companies, including Microsoft, Alphabet, and Meta, to release their second-quarter earnings, it will be a busy week. Moreover, this week, the European Central Bank (ECB) is expected to raise its rates as well, and while Japan's central bank will also be meeting, there is little likelihood of any change to its ultra-loose monetary policy.
Best Weekend Performer
Last week was particularly good for Cardano's ADA token after Input Output Global said the projects' stake-based signature scheme Mithril was nearing its mainnet launch to improve the node syncing and security of the Cardano network. But as the market took a hit on Monday, ADA took a hit.
Despite the latest losses, XDC Network is still up 42% in 7-day gains to lead the market, followed by Kaspa (20%), Chainlink (15.4%), Stellar (15.3%), Maker (9%), Casper Network (9%), and ApeCoin (6.5%). Now, ahead of this new week, FLEX Coin is leading the gains with a 7.3% upside.
Filecoin (FIL)
The price of FIL started trending up well before the weekend to surpass $4.67 on Sunday. Since then, the price has fallen to now trade at $4.40 while managing $106.8 mln in volume, which is seeing a 6.70% decline from a day ago.
With its Relative Strength Index (RSI) fluctuating above the neutral level, the price was expected to take a hit though Balance Volume registered an uptick, indicating improved demand. FIL's OI also dropped 14% in the past 24 hours to 19.24 million FIL ($84.64 million).
While down 23.7% over the past year and a whopping 98% from its almost $237 peak, FIL is still up about 50% this year so far.
Filecoin is a decentralized storage project that aims to turn cloud storage into an algorithmic market and is powered by the FIL token. Miners earn the token for providing storage to clients, while clients spend tokens to hire miners to store or distribute data.
The project had a rough 2022 in tandem with the broad crypto market, but it started to get back into shape in 2023. However, it suffered a setback when the SEC listed FIL and many other altcoins as a potential unregistered security. However, like most altcoins, the native token of Filecoin has made an impressive recovery since mid-June, with $5 acting as a resistance to further upside. The token does have immediate support present at $4.25, helping it from falling significantly.
Amidst this, last week, the mining rig manufacturing giant, Bitmain announced that it would begin selling a new rig to mine FIL tokens. This is despite the project using proof-of-replication and proof-of-spacetime, which were originally designed to resist application-specific integrated circuits (ASICs) to encourage decentralization.
The new mining machine will have a hash rate of 4,300T per unit, and miners will begin earning immediately, but much like Bitmain's KAS Miner KS3, it carries a hefty price tag of $38,888 per machine.
Recently, a report by data analyst Messari revealed that Filecoin had revenue of $11.5 million from storage users in Q2 of 2023, up quarter-on-quarter from $1.3 million and year-on-year from $1.6 million, as per Messari.
Additionally, it has about 954.2 pebibytes (1.07 billion gigabytes) worth of storage on its network, in comparison to about 12.2 exbibytes (14.1 billion gigabytes) of raw storage capacity. The slowdown is anticipated to be due to high storage costs compared to the popular centralized alternative Amazon Web Services. A sharp drop in FIL prices could also be behind this slow pace, as prices can affect supply-side revenue through block rewards, transaction tips, and anchored storage deals.
However, a content delivery network (CDN) to serve storage retrieval needs for Filecoin and IPFS is currently being developed. The project called Saturn aims to serve Filecoin's retrieval market through fast and low-cost content delivery.
Click here to learn all about investing in Filecoin (FIL).
Worst Weekend Performer
The volatility of last week had liquid staking protocol Rocket Pool's RPL recording 7-day losses of 15.8%. While RPL led the losses, EGLD (12%), SOL (11%), RNDR (9.1%), COMP (9%), LDO (8.6), GMX (8.5%), FXS (8.4%), AVAX (8%), XRD (8.3%), and AAVE (7.8%), weren't far behind in terms of negative performance.
As we entered the week on Monday, we witnessed a significant drop in the SUI token, with its value declining by approximately 9%. This downtrend follows last week's gains, which are now seemingly reversed as COMP, XDC, and MKR are all experiencing a dip, with losses of 7.4%, 6%, and 6%, respectively. On the other hand, the weekend was particularly harsh for DOGE, which with a 6.6% drop, topped the list as the worst performer.
Dogecoin (DOGE)
DOGE had a pretty interesting last week. The meme coin surged 9.5% right before the weekend to $0.0769, which sent it to the 9th spot only for its price to drop by over 7% over Saturday and Sunday to $0.0695.
But these latest losses were soon wiped out on Monday as DOGE rallied even harder to $0.778. As of writing, DOGE/USD is trading at $0.0747 while managing over $1 billion in 24-hour trading volume, which is an increase of 200% from a day ago. Doge OI, meanwhile, has risen 11.6% during this period to 4.83 billion DOGE ($360 mln), as per Coinglass.
With these latest gains, DOGE is now up 9.2% over the past year and 6.5% year-to-date (YTD) while being down almost 90% from its all-time high. If the positive momentum continues, DOGE could very well rise to its February high of $0.096.
Dogecoin is the original meme coin that continues to lead the pack of meme coins category, whose total market cap has increased by more than half a billion dollars over the past month.
As for what is leading these gains, Twitter and Tesla CEO Elon Musk is yet again the reason. The crypto market noted that Tesla is keeping the cryptocurrency in its payment page source code. Dogecoin is the second crypto asset to be accepted by the automobile manufacturer after Tesla added Bitcoin as an option back in 2021, only to later discontinue the option to pay with BTC as well as delete it from the source code of its payment page.
Musk has often expressed his support for the meme coin, even referring to himself as the “Dogefather” in a Saturday Night Live appearance.
Moreover, during his recent appearance at the Wall Street Journal CEO Council Summit, Musk shared why the meme coin is his favorite cryptocurrency, which goes beyond the token's capabilities in the market. “Dogecoin is my favorite cryptocurrency because it has the best humor and has dogs,” he said at the time.
In addition to Musk's endorsement, which always sends DOGE's price skyrocketing, active addresses have risen by approximately 22.3% in the past seven days, while new addresses have recorded a growth of 53.28%. But at the same time, addresses without any coins have also grown by 17.47%
As for the total number of DOGE addresses, there are an average of approximately 4.71 million DOGE addresses available in the last 30 days. And the latest recovery in the coin's price has more than half of all DOGE addresses in profit.
According to IntoTheBlock (ITB), the total whale accumulation of DOGE has also jumped significantly amidst the green price action. The large DOGE transactions, which are defined as those with over a $100k valuation, have jumped from a low of 770 transactions as of July 16 to 1,300.
