Our experts talked about trends in the staking cryptocurrency niche after the Shapella update and its impact on cryptoasset prices

The price of Ethereum cryptocurrency (ETH) crossed the $2,000 mark for the first time since August 2022. After a major blockchain update of the second largest cryptocurrency took place. And fears of a massive outflow of funds from the network were not confirmed. Since the beginning of the year, the coin has grown by more than 60%.

The fears of many market participants were not justified

The April 13 update to the Ethereum blockchain, working title Shanghai. Which was made as part of the Shapella update group gave investors the opportunity to withdraw coins on a first-come, first-served basis. Which they placed as collateral in a special Beacon Chain smart contract, launched back in 2020. This gives them the status of a transaction validator on the network and allows them to be rewarded by issuing new coins, a process called staking.

Accumulated rewards also became available for withdrawal to the wallets. According to the analytical service Nansen, in the first 12 hours after the activation of the update, investors withdrew only 0.3% of the 18 million ETH. Which were placed in the contract for staking.

Contrary to the fears of many market participants, the rate of ETH tested $2,000. It’s safe to say that traders and investors took the update positively. The possibility of withdrawal of coins [from staking] is limited. As it can put pressure on the price.

Only 43.2 thousand ETH can be unlocked in a day. About 170 ths ETH will be sold at market price in the near future. But even if coins will be withdrawn at the maximum allowed limit per day. That figure would fit into the average ETH inflow to the exchanges and would not critically affect the price of the coin. It’s important to understand that many validators are just now starting to test the new feature. And they are withdrawing exactly the earned funds and not the deposit of 32 ETH. Accordingly, they plan to validate transactions further, our experts explain.

What will happen to the price of ETH in the next week

According to Coin Metrics analyst company, about 1.2 million ETH are expected to be withdrawn from staking in the next five days. Which is equivalent to about $2.3 billion at current prices. About $36.7 billion in Ethereum coins remain in the Beacon Chain.

The price of ETH could experience fluctuations in the coming weeks. As some investors will rush to withdraw coins and sell them. But those who were not ready to freeze their assets before. Then now on the contrary, may decide to place coins in a smart contract. Most likely, the upgrade of the network in the medium to long term will lead to the growth of ETH exchange rate. But before that, a period of increased volatility is possible, our experts say.

Staking as a service

Self-staking Ethereum involves setting up equipment. And mandatory minimum deposit of 32 ETH. But even more private investors use stacking services on cryptocurrency exchanges. And decentralized platforms that provide the service of so-called liquid staking.

In this case, exchanges or services act as a validator. Which pools users’ funds into a single pool with a user-friendly interface. And also with the reward for staking in proportion to their investment. The largest staking platform Lido. At the same time, being a validator, manages about 31% of all ETH in staking. Binance, Coinbase and Kraken crypto exchanges are also in the top five largest validators.

Staking from crypto exchanges

The main advantage of staking services from exchanges is simplicity. The user does not need to understand the intricacies. The user only has to press a couple of buttons and be assured that staking works. Interest payments are made by the exchanger. And it also takes the rights and responsibilities. If there are any difficulties, you can write to the support service and get an answer in a short time. This is always suitable for beginners. That is why the popularity of staking through exchanges or platforms will not suffer much from Ethereum updates.

The possibility of unlocking coins is unlikely to have much effect on the popularity of staking services. Their target audience is not so much those investors who were not ready to freeze their assets. But those who simply don’t have 32 ETH to place in a smart contract. The demand for the service, even if it falls, is insignificant, our experts say.

Kraken leads in the number of applications to withdraw coins from staking. The U.S. exchange accounts for more than 86% of the total amount of ETH. Which are now “in line” for withdrawal. The exchange was forced to stop its staking service in the U.S. and pay a $30 million fine when the Securities and Exchange Commission (SEC) recognized its staking service as the equivalent of illegal sales of securities. Because of such bans in the U.S., it is the decentralized platforms where coins will be put. The use of which the SEC will not be able to prohibit technically.

Staking on decentralized platforms

Decentralized liquid staking services allow you to invest in staking coins from Ethereum and other blockchains. Which work on the Proof-of-Stake (PoS) algorithm. And receive derivative tokens of equal value in return. Which are also traded on cryptocurrency exchanges. And can be used for additional earning strategies. Examples of such platforms include Lido, Rocket Pool, Stakewise, and others. Many of them issue their own tokens. Which give you the right to vote in DAOs or get discounts on fees for services.

Our Crypto Upvotes experts point out that the investment appeal of such platforms’ tokens depends not only on the set of their services. But also their overall marketing performance, turnover and trends in the market. Some platforms don’t have a token. But this does not prevent them from attracting users. For example, stake.fish is popular due to the experience and reputation of the f2pool behind it. It is a well-known brand in the niche of mining pools.

Tokens of the largest staking platforms also benefited from the successful Ethereum update. The tokens of Lido (LDO), Rocket Pool (RPL) and Stakewise (SWISE) showed growth of 6-7%.

Individual legislative reforms will not solve the problem of cryptocurrency risks. Therefore, this requires coordinated action by all countries, said Minister of Finance of India Nirmala Sitharaman.

India, which holds the G20 presidency, intends to develop a common regulatory framework for all countries to combat cryptocurrency risks. This was announced by Minister of Finance of India Nirmala Sitharaman, according to The Indian Express.

Speaking at the Peterson Institute for International Economics (PIIE) in Washington. She noted that the multiple upheavals in the digital asset ecosystem have severely affected investors around the world. And piecemeal legislative reforms won’t solve the problem. Sitharaman stressed that coordinated action by all countries is needed.

“Cryptocurrencies are a very important part of the discussion during India’s G20 presidency, given the large number of crashes and shocks in the cryptocurrency industry. We aim to develop common rules for all countries to address this issue,” Sitharaman said.

The issue of global regulation of cryptocurrencies has been discussed for years by the heads of central banks and finance ministries of the G20 countries. However, multiple bankruptcies, hacks and collapses of cryptocurrencies in 2022 have increased regulators’ attention to the industry.

In 2018, G20 finance heads discussed the situation with cryptocurrencies and concluded that, despite the obvious risks. But they did not pose a threat to global financial stability at the time. But all participants of the meeting were in favor of continuing to monitor the situation at that time. And many of them supported the need to develop common regulatory principles.

Financial Stability Board (FSB)

Our experts note that at the same time, the Financial Stability Board (FSB). Which oversees and develops legal measures in the area of financial policy of the G20. It rejected several states’ request for an international legal framework to regulate the digital money market.

Over the past five years, the FSB has not developed any meaningful proposals for global regulation of the industry. The only document that covers several states. That is the bill Markets in Crypto-Assets (MiCA), relating to the regulation of cryptocurrencies in the EU. The provisions of this document will not come into force until early 2024.

Last December, the then FSB Secretary General Dietrich Domanski told the Financial Times in an interview. That the organization would introduce global regulations for cryptocurrencies in early 2023 and “put them into effect quickly.”

According to a program of publications on the FSB website, the final recommendations for regulating Stablecoin. As well as other crypto-assets will appear in July of this year.

The NFT community Own the Doge and the PleasrDAO project, which bought the rights to the DOGE meme for $4 million. Now they involve Hollywood producers and streaming companies to promote the story of the dog Kabosu, the symbol of a Dogecoin coin

Proponents of Dogecoin (DOGE) have made a “documenal” film about the meme cryptocurrency, writes Decrypt. The NFT community Own the Doge and the PleasrDAO project, which bought the rights to the image of the DOGE meme for $4 million in 2021. They created and financed an as yet untitled feature film. It is about the transformation of an abandoned Shiba Inu puppy, nicknamed Kabosu, into a Dogecoin cryptocurrency symbol.

The film was directed by John Lynn and is currently in production. Despite the initially niche nature of the project, its creators hope to extend it to a mass audience. And are on the lookout for new partners to promote this film.

At this point, according to one of the producers of the film under the pseudonym of tridog. This project has secured the support of Jim Toth, a former Hollywood casting agent. He is also the producer and ex-husband of actress Reese Witherspoon. Also, according to tridog, they were joined by “Feels Good Man” documentary director Arthur Jones and producer Evan Rosenfeld.

The creative team behind the film is also trying to attract major film distributors. For example the streaming platforms Netflix, Hulu or Amazon Prime Video. The filmmakers believe they can offer these companies an asset. Which may be of interest to them, namely the audience interested in the success of the project.

Our experts say that Dogecoin is a cryptocurrency, which is one of the top ten largest digital assets by market capitalization, with an indicator of $11.7 billion. We think all Dogecoin followers would love to see this movie.

Our experts assessed whether decentralized autonomous organizations can be recognized as an official form of business governance. After the Arbitrum blockchain project token voting scandal

The issue with the multi-million dollar funding of the Arbitrum project developers’ fund has resulted in a conflict with the owners of its tokens. And it set a precedent in the field of decentralized management of blockchain services.

A DAO is a decentralized, autonomous organization that is governed by the voting of the owners of the blockchain project’s management tokens using smart contracts. Any token owner can independently put forward a proposal for the development of the project. Or vote for other proposals. Most often, they concern the distribution of specially reserved funds – the project treasury .

Before the release of their own token and Arbitrum’s sensational Airdrop, the developers often stressed the need for a decentralized autonomous organization (DAO). In which ARB token holders will be able to choose by voting the directions of the project’s development, including the distribution of budget funds. The only function of ARB tokens is to be able to vote and put forward their own proposals for consideration by the DAO. This is because their owner receives no other technical benefits when interacting with any project in the Arbitrum ecosystem.

Scandal at Arbitrum

Last week, the Arbitrum Foundation. which includes project developers and cronies, put forward a proposal to allocate 750 million ARB (about $1 billion in U.S. dollar equivalent) to the foundation’s own controlled purse for future grants. As well as to cover its administrative and operating expenses. The amount seemed to be too high to the participants. Therefore, about 80% of ARB token holders voted against the proposal.

As it turned out later, even before the voting was completed and without the approval of the participants of the DAO. These funds had already been transferred from the project’s coffers. And some of them were converted into dollars on exchanges or issued as a loan to large market makers. Arbitrum Foundation managers were quick to release a statement saying that the vote was only meant to “ratify a decision that had already been made.” And that further angered both the participating token holders and the cryptocurrency community at large.

The project team’s behavior shows a lack of thought into the financial strategy. Of course, any project needs funds for operating expenses. But they need to be reported on in advance, not post-facto. This is a decentralized organization. Therefore, the opinion of the community must be taken into account. This will be a lesson for the team for the future, our experts say.

Under pressure from FAO members and faced with a wave of negative responses on external resources. Arbitrum Foundation was forced to accept the community’s terms and refuse the offer. And subsequently splitting it into several separate ones and changing the terms in favor of greater transparency. In official publications, the developers acknowledged “communication problems.”

Our experts believe that this event clearly shows how a decentralized autonomous organization can identify problems. Such as corporate abuse, financial manipulation and ineffective financial planning.

Positive and negative aspects of DAO

The Arbitrum Foundation situation has set a precedent and provoked a wave of discussion about the effectiveness of the DAO as such. Despite the lack of a legally recognized form, decentralized organizations are created around many large blockchain projects. And votes from their token owners tend to matter a lot indeed. The process is similar to the decision-making process of shareholders of companies in traditional businesses.

The incident highlights some of the vulnerability of the voting process within a DAO. As well as the mechanism for governing DAOs through voting in general. Due to the lack of conditions enshrined in legally binding documents, questions inevitably arise. For example, is it possible to oblige developers to execute the decision of voting token owners. And on what, apart from the credibility of the project alone, the voting mechanism holds in principle.

Our experts believe that such situations undoubtedly attract the attention of public and government authorities. It can be assumed that they can contribute to the development of a proper legal regulation in the DAO sphere. They can also encourage community and, in particular, investors in such projects to verify the information in more detail. At the same time requiring guarantees of execution of decisions made by a general vote in the DAO.

Opinions of our lawyers

According to our lawyers, the DAO model itself still looks “too utopian for our world”. However, transparency and speed of decision-making are important advantages of DAO. This is due to voting on the blockchain. However, our experts list serious disadvantages. And the main ones are the almost complete lack of legal regulation.

Because in the case of problems, fraud and abuse, the affected persons simply have nowhere to turn. And it is not clear how to get their money back. Decentralization and autonomy from the law are good exactly until they violate the rights of the individual. And then he will seek protection and restoration of his rights through traditional legal mechanisms.

Prospects for DAO development in the ordinary world

Our experts believe that DAO is unlikely to become a recognized legal form of organization in the coming years. This is despite the fact that crypto-assets are already in the legal field in many places. This governance structure makes it difficult to distribute responsibility.

So far, it is just a kind of community, a club of interest. But the potential of this form is very large. Because DAO takes into account the interests of all community members and helps choose the development path for any project.

Of course, progressive company owners will appreciate these advantages and use DAO mechanism. If such a mechanism will be in the legal field. Therefore, our experts believe the co-existence of DAO along with the usual forms of organization is possible. But if it will be properly regulated.

Our experts told about the prerequisites for Bitcoin price growth. And assessed the prospects for further price movement of the first cryptocurrency

On April 11 Bitcoin rate exceeded $30.3 thousand for the first time since June 1, 2022. Within a day, the first cryptocurrency rose in price by $2 thousand. And its value increased by 7%.

Leading altcoins also rose in price, though not as much as the first cryptocurrency. Ethereum (ETH) price went up by 3.5%, to $1.91, BNB (BNB) – by 4.6%, to $327, Polygon (MATIC) – by 3.2%, to $1.13. Cardano (ADA) gained 4.7% to $0.4 and Ripple (XRP) rose 2.7% to $0.51.

The first goal for Bictoin is to fix it at $30,000

Bitcoin for the first time in 10 months broke through the key level of $30 thousand. The main trigger for the price increase was the investors’ confidence in the near completion of the US Federal Reserve’s tight monetary policy phase. In fact, the strengthening of BTC could happen a few days earlier. But most investors were absent in trading because of Good Friday and Easter in Catholic world.

On Monday traders returned to work and reacted to Friday’s set of statistics about employment market in the USA. And quite naturally – with a rise in prices. NFP employment data showed that employers feel confident and leave hiring rates high.

BTC has gained 6.74% since the beginning of April versus a 23% appreciation in March. The important thing now is to get a foothold above $30k. And the next ambitious goal is $35k, but it will take time to reach it.

Bitcoin price prospects

Bitcoin moved to the growth after a long period of consolidation between $27 thousand and $28.5 thousand. BTC accumulated momentum and was able to overcome the resistance level around $28.5 thousand. And then on a wave of “bullish” sentiment took a new top – the long-awaited mark of $30 th.

It is hard to say whether there will be correction, because the market is waiting for the publication of data on consumer price growth in the USA (CPI). Which will be unveiled on April 12. This index always influences the situation on the cryptocurrency market. Here we should understand that it can both push up. And it can also push down and stop the growth of Bitcoin. And the continuation of high inflation can have both effects. That is, if inflation is still quite high and fails to meet expectations for a decline. BTC rate may react with both decrease and growth in the short term.

In the long term high inflation will most likely help Bitcoin to grow. Because BTC is seen by some investors as an instrument to hedge against inflation risks. The collapse of the banking system, which is not expected to fully manifest itself yet, also contributes to the growth of bitcoin. Part of the deposits that have been withdrawn from U.S. bank accounts. It eventually settles on the crypto market, as retail investors in a panic are looking for tools to preserve value. And they’re also afraid of a repeat of the 2008-2009 crisis.

Our experts answering a possible question whether investors will have an opportunity to buy Bitcoin “cheaply” for $15 thousand. Our experts remind that between $15k and $25k Bitcoin was trading for 275 days. That means investors had almost a year to decide to buy this asset. If they didn’t do that, now they’ll have to buy bitcoin at $30k. In short and medium term the price of BTC will hardly go lower than $20k.

Expect inflation data

Bitcoin for quite a long time was in the “sideways position”, accumulating strength for a breakthrough to the level of $30 thousand. This happens today the coin has overcome this mark.

Now the US inflation data is expected to be released in March. A slowdown in price growth will be positive for the stock market. And BTC usually follows it. A decline in inflation gives the odds that the Fed will move to easing monetary policy. And this will also push indices and cryptocurrencies up.

Also amid forecasts of a global recession, more and more investors are moving into crypto as a way to protect funds. This explains the influx of capital into the crypto market. Now everything depends on inflation data. Because its decline will give a chance for Bitcoin to rise to $32,000-34,000. And the increase in prices will be negative – then we can expect a fall to $27-28 thousand. By the end of the week, these trends will manifest themselves in full force.

The number of BTC “hodlers” is increasing as fast as it did in the spring of 2021. When the asset first reached $64,000.

The number of long-term Bitcoin holders earlier this year is growing at its fastest pace since spring 2021. When the BTC exchange rate first rose to $64,000. The growth in the number of “hodlers” may be due to the fact that more and more traders stop operations and decide to just keep the asset.

Since the beginning of this year, Bitcoin’s exchange rate has increased by 71%. The asset was trading at $16.5 thousand on January 31, while on April 10, its price was around $28.3 thousand. The maximum value for this period was $29.1 thousand, which BTC crossed on March 30 for the first time since June 2022.

During the 2021 Bitcoin rally, the number of BTC holders rose from about 34 million to 39 million. The growth rate then slowed. And by early 2023, that number had risen to about 44 million. But then the number of “hodlers” started growing faster again. And by April, it exceeded 46.1 million.

Our experts note that over the past 24 hours, BTC rose in price  by 6%, to $30 thousand. Following the first cryptocurrency, prices for other digital assets are increasing.

Regulators in Dubai intend to bring local companies and major exchanges into the legal sphere. At the same time securing the region from illegal cryptocurrency transactions

After the FTX exchange went bankrupt last November, regulators in Dubai are tightening their grip on the crypto business. This followed the closure of a number of illegal cryptocurrency exchanges, and now officials at the Dubai Virtual Asset Regulation Authority (VARA) have started sending out requests for information to cryptoservices operating in Dubai.

What are the Dubai authorities doing and what are the consequences for crypto business

The authorities in Dubai have to find a balance between encouraging innovation. And the need for proper oversight of the crypto industry. One of the experts interviewed, who advises fintech companies on expansion in the Gulf region. Says the regulator intends to turn Dubai into the capital of the digital economy. And while retaining business ties with Western jurisdictions and not causing complaints from them.

The Middle East, represented by the UAE, is trying to strike a balance between remaining an attractive region for investment. And not to become a “global laundry”. Given the recent trend and the claims to the region by the international community.

The United Arab Emirates, of which Dubai is a part, has already cracked down on dozens of cryptocurrency exchangers that opened there without licenses. Our experts point out that this was part of a broader program to remove the UAE from the FATF’s gray list.

This trend is related to the authorities’ growing concern about the risks associated with the use of cryptocurrencies. Such as fraud, money laundering and terrorist financing. As a result, authorities are seeking to tighten regulation and oversight of companies. That deal with cryptocurrency transactions.

What controls the Dubai authorities plan to launch

Among the specific measures Dubai authorities could take. Our experts call for stricter licensing requirements for crypto-businesses. Such as more thorough verification of financial statements and strengthened compliance procedures. In addition, it is possible to increase fines and other sanctions for companies that violate the rules related to operations with cryptocurrencies. And in particular with ICOs. In general, these measures are aimed at increasing the transparency and reliability of operations with cryptocurrencies. And also to reduce the risks associated with these transactions.

The UAE has already received questions from the FATF in the context of the possibility of the country to be blacklisted. This was due to insufficient compliance with anti-money laundering measures, according to the regulator. The agency published evidence that the country directly and indirectly helps oligarchs evade Western sanctions. And this includes through cryptocurrency transactions. The country is currently on a gray list. Therefore, they do not need to be regulated, our experts believe.

Binance and other major exchanges are under supervision of the authorities

The world’s largest cryptocurrency exchange, Binance, has also faced inquiries from VARA. Its head, Changpeng Zhao, himself lives in Dubai and is working to make it the center of brand expansion in the Middle East.

The Dubai regulator is requesting more data from Binance than from other market participants. The agency is reviewing information on ownership structure, audit reports and governance procedures at the global group level. The process is complicated by the fact that Binance does not have a single headquarters. And instead of a board of directors, the usual form is a global board of experts. In addition, the exchange has a complex corporate structure, including several holding companies. And many legal entities in different regions. Representatives of Binance said that they had submitted to VARA a full set of data on requests. That included the results of an audit of the local unit.

In addition to Binance, the public registry of virtual asset service providers at VARA lists four other companies with licenses: Komainu, Hex Trust, GC Exchange and Crypto.com exchange. The latter, like Binance, has provisional minimum viable product (MVP) approvals. This means they cannot yet offer cryptocurrency-related services in Dubai. Which are officially regulated by local law.

All issued licenses are temporary, our experts explain. Obtaining higher level licenses will only be possible after the necessary changes in the legislation are adopted.

BTG Dol stablecoin token is available for buy from 100 Brazilian reals ($20) on the investment platform of BTG Pactual bank and in the cryptocurrency app Mynt

Brazilian investment bank BTG Pactual announced the launch of stablecoin BTG Dol. Which will be related to the U.S. dollar exchange rate. The token will be based on the Polygon blockchain, the bank told DeCrypt.

BTG Pactual noted that this is the world’s first ” dollar” stablecoin issued by the bank. Also according to André Portillo, head of digital assets at BTG Pactual.  This asset will allow its owners to transfer some of their capital into dollars in a simple, efficient and safe way.

Additionally, BTG Pactual will hold and manage reserves of stablecoin. It will also be responsible for regulatory compliance.

Also BTG Dol is available for purchase from 100 Brazilian reais (about $20). It can be purchased on the BTG Pactual investment platform and in the Mynt app. Which was launched by the bank in 2021 and currently supports 22 cryptocurrencies.

Also Polygon is a Layer 2 solution for Ethereum, one of several blockchain platforms. Which allows to optimize the processing of transactions on network. This blockchain is used by Mastercard, Adidas, Disney, Starbucks, Adobe and many others.

Our experts note that the Polygon token (MATIC) is ranked tenth by market capitalization among all cryptocurrencies with an index of $10.4 billion.

The capital of crypto billionaires for 12 months decreased by $ 110 billion. Review of Crypto Upvotes experts

The richest people in the cryptocurrency industry lost more than 75% of their capital in 2022. Forbes estimates that the combined fortune of crypto-billionaires has decreased by about $110 billion in 12 months.

Last year, the magazine counted 19 billionaires among cryptocurrency owners. At the same time, the total assets were estimated at about $140 billion. Lawsuits, bankruptcies and falling asset values during the “crypto winter” caused serious damage to the industry. Therefore, by March 10, 2023, the total capital of crypto billionaires decreased to $30 billion. And the title of a billionaire itself was retained by only nine people.

Rating of crypto billionaires

• The head of the largest cryptocurrency exchange Binance, Changpeng Zhao, still occupies the first place in the ranking. His fortune last year was estimated at $65 billion. But now it is only $10.5 billion.
• In second place is the co-founder of blockchain projects Stellar and Ripple. As well as the creator of one of the first crypto-exchanges MtGox Jed McCaleb with a capital of $2.4 billion ($2.5 billion a year earlier).
• The third place ($2.2 billion) is shared by Coinbase CEO Brian Armstrong and Ripple chairman Chris Larsen. The former’s fortune last year was estimated at $6.6 billion, the latter at $4.3 billion.
• Next up are the founders of Web3 infrastructure developer Alchemy, Nikhil Viswanathan and Joseph Lau. And they each have a fortune of $1.8 billion ($2.4 billion a year earlier).
• The seventh and eighth places are held by the founders of the Gemini exchange, brothers Cameron and Tyler Winklevoss. Each of them owns $1.2 billion. A year earlier, the state of each of them was $4 billion.
• The list of billionaires closes the cryptoinvestor Matthew Roszak with a capital of $1.1 billion. In March 2022, his fortune was estimated at $1.4 billion.

List of who is no longer a crypto billionaire

Out of the list of billionaires are Upbit exchange founder Son Chee Hyun, Paradigm and Coinbase co-founder Fred Ehrsam. As well as MicroStrategy founder Michael Saylor (now valued at $760 million), venture capital investor Tim Draper. Also out are Devin Finzer and Alex Atalla, who founded the NFT marketplace OpenSea. And Barry Silbert, head of Digital Currency Group (his fortune dropped from $3.2 billion to $320 million).

Our experts note that Sam Bankman-Fried and Gary Wang of FTX were the hardest hit. Bankman-Fried last year ranked second with a capital of $ 24 billion. And now his fortune Forbes estimates less than $ 10 million. Experts estimate the state Wang the same amount, a year earlier it was $ 5.9 billion.

Using onchain metrics, Santiment analysts analyzed recent developments and actions of Whales in the cryptocurrency meme.

Santiment analysts have suggested that Whale is aware of the recent rise of Dogecoin (DOGE). Exploring onchain metrics, they analyzed the movement of the coin’s exchange rate. As well as the actions of its owners.

On April 3, Elon Musk swapped the Twitter logo for the Dogecoin symbol. According to analysts, most of the cryptocurrency community already knows. That if Musk does something on social media, his goal is to have fun, get attention or make money. Perhaps in this case, all three goals were met, Santiment noted.

The day after Twitter’s logo change, the Dogecoin token rate soared more than 33%, temporarily outpacing the growth of other cryptocurrencies. This happened in two waves: the big price jump started and ended almost immediately after the news (from $0.077 to $0.100), followed by the second wave of growth (to $0.102).

Studying transaction data and market indicators, Santiment analysts noted many signals. Which indicated when the big players (who, according to the authors, probably knew about the planned “pumping” of DOGE) were exiting the asset. Or at least recorded large profits.

Santiment explained that when the number of active addresses. As well as the volume of trades and transactions, and transactions of “whales” (addresses with more than $100k) together increase sharply in the period. And when an asset experiences growth independent of other markets, it is possible to assert with confidence. That here almost always forms a local top and fixation of profit at this moment.

Four types of DOGE holders

Analysts have studied the behavior of coin owners, dividing them into four categories based on the number of Dogecoin tokens:

“Fishes” (0-10 DOGE);
“Dolphins” (10 to 10 thousand DOGE);
“Sharks” (10 thousand to 10 million DOGE);
“Whales” (10 million or more DOGE).

According to the study, “fishy” addresses aggressively bought the coin the moment the price peaked. This is typical and is one of the signs of a price peak. “Dolphins” and “sharks” showed no signs of participating in this rally.

Our experts note that “Whales” were buying small quantities of the token in anticipation of replacing the Twitter logo. And as soon as the Dogecoin price jumped, the owners of such wallets fixed their profits.

Santiment suggests that something might have been known to the big DOGE holders. This is just a guess – the identities of address holders are unknown.