Author: Faith Yakubu

Bitcoin Depot, the largest Bitcoin ATM operator in the United States, has defied the highly volatile nature of cryptocurrency prices, revealing robust revenues in its recently filed 10-K annual report. Despite the rollercoaster ride of cryptocurrency prices, the company’s revenues in 2023 and 2022 amounted to $689 million and $647 million, respectively, showcasing resilience to Bitcoin’s price fluctuations.

Bitcoin Depot’s success amid market turbulence is attributed to its strategic approach to services primarily used for non-speculative purposes, such as money transfers, international remittances, and online purchases. The company’s user surveys indicate a preference for practical utility over speculative trading. Unlike entities heavily involved in cryptocurrency trading or mining, Bitcoin Depot maintains a relatively low balance of Bitcoin, typically less than $1 million, at any given time, minimizing exposure to volatility.

The company’s proactive measures include purchasing Bitcoin through reputable liquidity providers rather than engaging in mining activities. This approach, coupled with a sophisticated Bitcoin management process, effectively mitigates exposure to price volatility and differentiates Bitcoin Depot from competitors.

Bitcoin Depot’s operational model does not act as an agent or exchange for users in transactions but maintains Bitcoin balances to fulfill user demand from kiosk or BDCheckout transactions. Cash in Bitcoin ATM kiosks represents approximately 21% of the company’s average monthly revenues, highlighting a dual approach to managing Bitcoin and cash balances that contributes to stability and resilience.

Despite a decline in installations witnessed in the Bitcoin ATM market in 2023, Bitcoin Depot remains a dominant player, operating over 7,000 BTMs globally. Its competitors, CoinFlip and BitStop, operate 4,800 and 2,500 machines, respectively. While the overall trend saw a decrease in installed Bitcoin ATMs globally, Bitcoin Depot’s CEO, Brandon Mintz, remains optimistic about the industry’s future, anticipating a rebound following the anticipated Bitcoin halving event. This event, often associated with increased market activity and interest in cryptocurrencies, could further bolster Bitcoin Depot’s position in the market.

Featured Image: Freepik

Please See Disclaimer

With the upcoming Bitcoin ‘halving’ on the horizon, cryptocurrency traders are abuzz with speculation about whether the digital currency’s current rally is just the beginning of a larger surge this year. The halving, a pivotal event in Bitcoin’s blockchain technology, aims to reduce the rate at which new bitcoins are generated, historically triggering substantial price rallies.

Previous bitcoin halvings in 2012, 2016, and 2020 were followed by significant price surges, with bitcoin soaring over 545% within a year after the May 2020 halving. Scheduled for April 20 according to CoinGecko, the next halving has divided market sentiment regarding Bitcoin’s potential trajectory.

During a halving, the rewards for bitcoin miners are halved, leading to decreased profitability and a slowdown in token production. Some enthusiasts argue that Bitcoin’s increased scarcity adds intrinsic value to the digital asset. Bitfinex analysts predict a potential 160% surge in Bitcoin’s price over the next 12-14 months post-halving, potentially surpassing $150,000.

However, skeptics, such as David Mercer of LMAX Group, caution against overly optimistic projections, suggesting that the impact of previous halvings may not necessarily repeat. Mercer highlights the possibility that Bitcoin’s recent rally, reaching an all-time high of $73,803.25 in March, could have already priced in the effects of the upcoming halving.

Analysts note that while historical precedent is significant, other factors beyond the halving could influence Bitcoin’s price movements. These include looser monetary policies, increased retail investor participation, and the recent introduction of U.S. spot bitcoin exchange-traded funds (ETFs).

Despite differing opinions, many analysts agree that the ETFs could be one of several catalysts supporting Bitcoin’s price post-halving. Additionally, expectations of a U.S. Federal Reserve interest rate cut this year could further bolster risk assets like cryptocurrencies.

As speculation mounts and market dynamics evolve, the crypto community eagerly awaits the outcome of Bitcoin’s halving and its subsequent impact on prices.

Featured Image: Freepik

Please See Disclaimer

Adidas and the crypto fitness app Stepn have joined forces, marking the beginning of a collaboration set to encompass both NFTs and physical merchandise. The partnership’s inaugural offering will be an NFT collection, with plans for tangible products in the pipeline, as per Stepn’s announcement.

The collaboration will commence with the Stepn x Adidas Genesis Sneakers collection, featuring 1,000 NFTs inspired by some of Adidas’s most renowned running silhouettes. Stepn stated that this initial Genesis collection marks the start of a year-long partnership, with further NFT drops and wearable items slated for release.

Scheduled for release later this week on April 17, the NFT collection will be available via Stepn’s affiliated non-fungible token marketplace, Mooar. Adidas has previously engaged in crypto-related partnerships with platforms such as Coinbase, Bored Ape Yacht Club, and Bugatti.

Stepn, recognized as a move-to-earn web3 app rewarding users for physical activity, boasts a user base of 5 million. This collaboration echoes Stepn’s past partnership with Asics in 2022.

Shiti Manghani, CEO of Stepn, emphasized the significance of bridging the physical and digital realms through partnerships like this, describing the alliance between Stepn and Adidas as a testament to the evolving landscape of lifestyle rewards.

In a recent development, Stepn conducted an airdrop of bonus points totaling $30 million worth of GMT tokens, further enhancing its engagement with users.

Featured Image: Unsplash

Please See Disclaimer

EigenLayer recently unveiled its presence on the Ethereum mainnet, marking a significant development in the Ethereum ecosystem. One of the primary avenues to participate in EigenLayer involves contributing to the security of Ethereum and amplifying interest in staking activities. Staking on Ethereum has gained considerable momentum, particularly with the surge in popularity of restaking methods, as discussed in recent discussions.

In a noteworthy update, EigenLayer made its debut on the Ethereum mainnet, introducing its EigenDA data availability layer. Notable operators such as Coinbase Cloud and Google Cloud have joined as the protocol’s initial participants. Additionally, EigenLayer revealed six actively validated services that would benefit from its restaking mechanism, reinforcing its position in the ecosystem.

This launch enables restakers on the platform to earn an additional yield on their staked ETH, a feature previously unavailable. Many users had initially deposited ETH into the protocol in anticipation of higher yields and speculated on potential airdrops as EigenLayer allocated restaking points.

Accessing EigenLayer necessitates staking ETH, either by setting up a validator or utilizing a liquid staking protocol to acquire staking derivative tokens. Liquid staking tokens (LST) offer holders liquidity and can be obtained by depositing into designated protocols or through direct purchase.

The surge in new validators underscores the increasing interest in contributing to Ethereum’s security through EigenLayer. Notably, Ethereum transitioned to Proof-of-Stake with The Merge in September 2022, allowing individuals to operate validators on the Beaconchain alongside the mainnet. Staking gained substantial traction following the Shapella upgrade in April 2023, which introduced the ability to withdraw staked ETH, enhancing user confidence in the security of their funds.

At its peak in June 2023, the validator queue reached 96,000, prompting measures to maintain network stability. However, the queue gradually subsided, remaining below 10,000 from October 2023 to March of the following year. The resurgence of interest in restaking has propelled the validator entry queue to 20,000, reflecting robust demand to fortify the Ethereum network.

Featured Image: Freepik

Please See Disclaimer

Following a volatile weekend, both Bitcoin and altcoins continue to face downward pressure, with Bitcoin retreating to the $64,000 level after an initial bounce on Monday.

Ether Struggles to Maintain Momentum

Ether (ETH), the second-largest cryptocurrency, hovers just above the $3,100 mark, showing signs of struggle in retaining gains made since the market’s panicky selloff on Saturday. Despite being up 4% over the past 24 hours, ETH remains lower by about 4% since briefly reaching nearly $3,300 earlier on Monday, fueled by unconfirmed reports of Hong Kong-based spot Bitcoin and Ether ETF approvals.

Bitcoin and Altcoins Face Renewed Downside Pressure

Bitcoin (BTC) also experiences renewed downside pressure, modestly lower over the past 24 hours to $64,200 after nearly reaching $67,000 earlier on Monday. The broader CoinDesk 20 Index reflects a 0.68% increase over the same period.

Solana (SOL) sees a significant reversal of its overnight gains, dropping to around $140 from highs of $155 early Monday morning and $175 reached on Friday.

Geopolitical Tensions Influence Market Sentiment

The crypto market plunged over the weekend as geopolitical tensions escalated, with Bitcoin dropping to the $61,000 area and Ether below $3,000 following Iran’s bombing campaign on Israel. Despite initial turmoil, some stability returned over the weekend.

Market Response and Outlook

Trading house QCP Capital notes that historically, buying the dip during major geopolitical conflicts has been profitable. Ed Goh, head of trading at B2C2, reports consistent buying in BTC, particularly during the weekend dip, with a notable bias towards purchasing altcoins.

As Bitcoin’s halving event approaches on April 19, traders anticipate a potential short-term “sell the news” reaction before and after the event.

Altcoins Show Mixed Performance

Despite setbacks in the broader market, some altcoins continue to see significant gains on Monday. Ondo Finance (ONDO) is up 15% over the past 24 hours, while Render’s RNDR and The Graph (GRT) rose by 12% and 9%, respectively.

Featured Image: Freepik

Please See Disclaimer