Main Takeaway: Multi-day Recovery
The cryptocurrency markets rose by 4% on Monday, with coins such as Ethereum (up 7%), Solana (up 6%), Polkadot (up 7%), Polygon (up 14%), and Avalanche (up 8%) stealing the show. So it’s a good day for smart contract platforms and layer 2 Ethereum scaling.
Moreover, the entire crypto market cap has regained the $1 trillion milestone. However, under current circumstances, it’s impossible to predict how long and if we will retouch June lows. This will in part depend on how company earnings go over the next few weeks – as many prominent US banks such as Goldman Sachs, JP Morgan, and Bank of America put out signals and warnings about a potential economic recession.
Key Stories: Ripple Co-Founder Sells Final XRP
Ripple Co-founder Jed McCaleb has finally sold the last of his XRP, and is estimated to have earned over $3 billion from his XRP and BTC sales. Most of these sales occurred after the SEC’s lawsuit against the company Ripple. XRP, Ripple’s associated cryptocurrency, is aimed to increase the speed and reduce the cost of transferring money between final institutions. XRP is number eight on the top 10 cryptocurrencies by market cap with a $17 billion market cap.
Secondly, more details have emerged regarding the 3AC debacle – in particular, Kyle Davies’ wife and Zhu Su are both creditors who are owed money in the 3AC bankruptcy, and another crypto lender Genesis is owed over $2 billion by 3AC. Genesis is the biggest credit of 3AC. So this is bad news for them. However, more than 30 companies have given money to 3AC, most of which will likely never be regained.
Investor Insight: Polygon Going Parabolic
Polygon over the past month has been the best performing ‘blue-chip’ crypto – having increased 100% since June lows.
This is because of many reasons. First, partnerships – Polygon has recently announced partnerships with Disney (for an accelerator program), Reddit (for an avatar marketplace), Draft Kings (for an NFT marketplace), Meta (for an avatar marketplace), and Stripe (for global payments). So you can see that many famous global brands are choosing Polygon as their go-to cryptocurrency/blockchain solution.
Polygon Co-founder Mihailo Bjelic has also been tweeting lately that Polygon will be dropping a big announcement in the coming days to push its Web3 ambitions on Ethereum.