Daily Market Report November 7, 2022

8 min readNov 7, 2022

Crypto News:

● Binance to liquidate its entire FTX Token holdings after ‘recent revelations’: The CEO of cryptocurrency exchange Binance, Changpeng “CZ” Zhao, said his company will liquidate the entirety of its position in FTT Token, the native token of competing exchange FTX. CZ explained in a tweet that the FTT liquidation was “just post-exit risk management,” referring to lessons learned from the fall of Terra’s Luna Classic (LUNC) and how it impacted market players. He also added: “we won’t support people who lobby against other industry players behind their backs.” Zhao didn’t state how much FTT Binance would sell but revealed the exchange held around $2.1 billion United States dollar equivalent in Binance USD (BUSD) and FTT due to its exit from FTX equity last year. He added Binance would try to sell the tokens in a way that “minimizes market impact”, stating that he expects the token sales to take “a few months to complete.”

● Vitalik reveals a new phase in the Ethereum roadmap: The Scourge: Ethereum co-founder Vitalik Buterin has added a new stage to the Ethereum technical roadmap, one that aims to improve censorship resistance and decentralization of the Ethereum network. Following Ethereum’s shift to a proof-of-stake (PoS) network on Sept. 15, Ethereum has been in the second stage: the Surge. The updated technical roadmap now inserts the Scourge as the new third stage, which will then be followed by the previously-known stages: the Verge, the Purge and the Splurge.

● Blockchain startup Elrond rebrands to focus on metaverse: In order to better represent its shift toward metaverse exploration, blockchain firm Elrond has changed its name to MultiversX. Elrond will aim to build on its prior work as a layer 1 blockchain with a focus on scalability to advance Web3 technology in the form of metaverse-related products.

● Fintech Uala launches cryptocurrency trading in Argentina: Argentine fintech Uala, which is backed by the likes of billionaires George Soros and Steve Cohen, ventured into crypto for the first time Friday, allowing customers to buy and sell Bitcoin and Ether with pesos through its app.

● EU delays vote on MiCA crypto legislation until February: European Union lawmakers won’t vote on the Markets in Crypto Assets regulation (MiCA) until February, likely meaning further delays in the landmark licensing regime for crypto companies within the bloc.A previous tentative plan for the Parliament to vote at its December plenary session, has been abandoned, given the length and complexity of the text.

● SEC issues subpoena to influencers promoting HEX, Pulsechain and PulseX: The SEC issued the subpoena as part of the investigation, which demanded the influencers in question produce the required documents by Nov. 15, 2022.

World Economy:

● The United States midterm elections will be held Tuesday. Owing to time differences, polls will not start closing until late Wednesday morning AEDT.

All 435 House of Representatives seats are up for election, as well as 35 of the 100 senators. Democrats won the House by 222–213 in 2020, and hold the Senate on a 50–50 tie with Vice President Kamala Harris’ casting vote.

The FiveThirtyEight forecasts now give Republicans an 83% chance to win the House and a 54% chance to win the Senate. There’s a 53% chance of Republicans winning both chambers, a 30% chance of Democrats holding the Senate while Republicans win the House, and a 16% chance of Democrats holding both chambers.

● Facebook parent company, Meta Platforms (NASDAQ:META), is preparing to lay off thousands of workers this week, the Wall Street Journal reported Sunday citing people familiar with the matter. The announcement is expected as soon as Wednesday.

Meta will be just the latest in a string of technology companies to announce layoffs or hiring freezes in recent weeks as the industry prepares for a period of slowing sales.

● The U.S. is to release inflation figures for October on Thursday with market watchers on the lookout for indications that price pressures are cooling after a barrage of outsize rate hikes by the Fed.

Fed Chairman Jerome Powell said last week that policymakers will likely take rates higher than envisioned in their attempt to curb soaring inflation, so a hotter-than-expected reading would likely cement expectations for the Fed to continue its hawkish path.

● German industrial production grew in September, official data showed on Monday, despite a fall in the energy-intensive industrial branches and ongoing delivery bottlenecks.

Industrial output was up 0.6% on the previous month, the Federal Statistical Office said. In a Reuters poll, analysts had pointed to a 0.2% increase. By contrast, production in energy-intensive industrial branches fell by 0.9% in September, the office said. For August, the office revised its figure to -1.2% from a previous -0.8%.

Projects Upgrades:

● Kava (KAVA): Kava is a software protocol that uses multiple cryptocurrencies to allow its users to borrow and lend assets without the need for a traditional financial intermediary. The MINT token will serve as the governance token for the Kava Mint CDP protocol, separating the KAVA token from the dovernance of any of the KAVA App protocols and establishing it as the official governance token of the Kava DAO during the 4th quarter of 2022 (estimated before the 31st of December 2022).

● Axie Infinity (AXS): Axie Infinity is a blockchain-based trading and battling game that is partially owned and operated by its players. The Lunacia SDK Alpha will take place in the 4th quarter of 2022 (estimated before the 31st of December 2022). The Lunacia SDK will initially be a map editor where players can use Axie Infinity art assets to create games and other experiences.

Altcoin of the Day:

Solana is one of the biggest layer-1 blockchains competing against Ethereum to provide faster, lower cost transaction processing capabilities.

By combining software with hardware innovation, as well as using a novel Proof-of-History consensus mechanism in conjunction with the Proof-of-Stake (PoS) consensus algorithm, it offers some of the blockchain industry’s fastest rate of transaction processing time at 65,000 TPS, at a cost of $0.00025 per transaction. In tandem with its high throughput and low fees, Solana has also attracted developers to build NFT marketplaces on its blockchain. The largest of these is Magic Eden, trading over $10 million in daily volume.

$SOL token

SOL token is the utility token native to the Solana blockchain. It is an SPL token, which is the Solana blockchain’s token standard — in the same way that ERC-20 tokens are the token standard for Ethereum. SOL tokens have two primary functions:

● Staking

● Gas fees

Solana Supply

Circulating Supply 359,728,679 SOL

Total Supply 511,616,946 SOL

Max Supply No Data

$SOL has no max supply, and according to the Solana Foundation’s proposal, the team envisions a long-term inflation rate of 1.5% (defined as the annualized growth rate of the total current supply at any point in time).

Market Cap $11,604,218,301

News

Despite all those advantages that Solana offers, it has also suffered multiple outages (almost 10 outages in the last 12 months), attracting criticisms of centralization; some of these outages were:

● The most recent network outage occurred on Oct. 1, 2022, caused by a misconfigured node that caused an unrecoverable network partition. A validator propagated an invalid block, leading to a fork.

● In May 2022, a seven-hour outage caused by bots on a nonfungible token (NFT) application.

● In Sep. 2021, Solana went down for 17 hours because of a transaction overload of 400,000 transactions per second.

However, in the last few days, Solana had some really good news to deliver: During the ecosystem’s annual gathering at Breakpoint 2022 in Libson, Solana made a series of launch announcements as it prepares to go mainstream:

● Solana smartphones available for pre-order in early 2023: A differentiating feature of the Solana phone lies in its ability to securely store the private keys of crypto wallets.

● Solana dApp store: A promise of crypto-friendly policies

● Google Cloud is soon to become a Solana node validator: Google Cloud’s Blockchain Node Engine will feature on the Solana chain from 2023. The integration will allow users to launch a dedicated Solana node in the Cloud. Additionally, Google Cloud will index Solana data and bring it to BigQuery — a fully-managed, serverless data warehouse — by next year, making it easier for the Solana developers to access historical data.

● Payments firm Circle is bringing Euro Coin to the Solana blockchain and expanding its cross-chain protocol to Solana in the first half of 2023. Circle only launched Euro Coin as a European take on its popular stablecoin USDC in June. Euro Coin works in the same way but is pegged to the euro instead of the dollar. It’s currently live on the Ethereum blockchain. FTX will add support for the Euro Coin when it goes live on Solana, Circle said in a statement.

In house view

Solana was one of the fastest growing cryptocurrencies throughout the crypto bull runs of 2020 and 2021. However, it is still holding strong, rankin #10 in market cap. In addition, it has established strong partnerships and secured substantial institutional backing. Nevertheless, it should be noted that Solana’s network outages continue to be the Solana network’s biggest challenge, according to its co-founder Anatoly Yakovenko. However, recent update and the validator count doubling in the past year, puts Solana on the path to resolving the network performance issues, according to Yakovenko. Moreover, competition is fierce. There are plenty of coins out there that offer a solution to crypto’s “scalability problem,” meaning that Solana will have to fight hard to maintain its influence.