US Spot ETF's hit $70 Billion in AUM in 6 months ❗️

Welcome to the daily Coinsauce Newsletter, its good to be back. Lets get straight into today’s newsletter!

📅 Today

🔍️ Market Outlook

• Overall Bias - Neutral 📈 

• Bitcoin is dipping, but has held it’s crucial support at $67,200 so far. As long as we are above this level, things are good, and Bitcoin’s up-trend remains intact.

• There are multiple wicks as resistance for BTC as it is now aiming for new all-time-highs. There is no particular price point to pin-point for a rejection.

• Dominance has broken out. If it continues it’s uptrend, alts might continue to bleed.

• Overall, BTC looks strong fundamentally. We have great ETF inflows, neutral funding rates, ETH ETF approvals, liquidation map more or less neutral, and a lot of leverage flushed out of the market during the 3 month consolidation phase.

Paraguay Powers Bitcoin Mining

The Paraguayan government has decided to keep selling surplus energy from the Itaipu dam to Bitcoin miners, due to their consistent demand.

Currently, only 20% of the dam's power is utilized, and the surplus could support 10,000 industries. However, for now, only Bitcoin miners are able to take advantage of it.

The government aims to eventually replace Bitcoin mining with more labor-intensive industries.

Paraguay has also cracking down on illegal mining, recently disconnecting a farm of 2,700 miners for power theft.

ETF’s surpass $70 Billion in AUM ⚡️ 

Last week, U.S. Bitcoin ETFs recorded net inflows of $1.8 billion, marking 18 consecutive record days of demand.

In just 6 months since launch, Bitcoin ETFs now hold over $70 billion, equating to 5% of supply. To put that to perspective, $100 million in inflows in a year for a new ETF is generally considered a success.

ETFs acquired around 25,700 BTC, while only 2250 BTC were mined in the period, which means demand from ETFs outpaced new supply by over 11.4X.

Source : Coingape

📕 Educational

🌐 Solana vs. Ethereum: A Comparative Outlook

Over the past year, Solana has surged ahead of Ethereum in several key metrics:

• NFT Trading Volume: Leading in activity.

• Daily Transactions: 33M vs. Ethereum's 1.2M.

• Active Addresses: Exceeding even BTC and ETH combined.

• DEX Trading Volume: $2.5B vs. Ethereum's $1.23B.

🏛 Regulatory Dynamics

• Ethereum: Positive momentum with potential ETFs, possibly drawing $4.8B in inflows soon as per K33.

• Solana: Faces hurdles as the SEC can classify it as a "security," complicating ETF approvals.

🌐 Narratives & Ecosystems

• Ethereum:

  • Declining NFT dominance; Solana and Base are challengers.

  • Leading in Real-World Assets with $571M in value.

  • Post-Dencun upgrade, ETH is becoming inflationary.

• Solana:

  • Attracts memecoins with 500K tokens launched in a month.

  • Excelling in Decentralized Physical Infrastructure Networks (DePIN), with projects like Helium and Render.

🔑 Catalysts & Moats

• Ethereum:

  • ETFs could boost liquidity and price.

  • Coinbase Smart Wallet targets 100M users through Base L2 network.

  • Strong network effects in developer count, liquidity, and security.

  • High revenue: $1.17B in Q1 transaction fees.

• Solana:

  • Saga Mobile: 100K+ pre-orders for mobile tech integration.

  • PYUSD Integration: PayPal’s stablecoin available on Solana.

  • High retail engagement and transaction volumes.

📊 Outlook

Despite Solana’s strong fundamentals and retail traction, Ethereum's impending ETF approval and institutional interest might drive it ahead in the short term. Ethereum's market cap of $370B vs. Solana's $80B suggests more growth potential for Solana, but ETH's regulatory clarity offers a safer bet for investors.

🔍️ Conclusion

In our opinion, Ethereum is poised to benefit from ETFs, institutional interest, and regulatory clarity, potentially leading to outperformance in the near term. However, if Solana continues to dominate on the fundamental metrics for the foreseeable future, it can catch up with ETH when alts start rallying.

📊 Stats

📈 Chart of the day

• $66000 - $67,200 is the line in the sand for BTC.

• As long as we hold this level, new ATH’s are close.

• However, if this support breaks, then we might have to chop around between 60k - 70k for longer, or potentially even go lower.

• Note : None of the content in the newsletter is financial advise. This is for educational purposes only.

• Source : Cointraction 

🤣 Meme of the day

Relatable 😂 

That concludes our update for today!

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