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Crypto World

here’s why Pepe Coin, Zcash, Morpho, and Dogecoin are rising

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here’s why Pepe Coin, Zcash, Morpho, and Dogecoin are rising

A crypto market rally is going on today, February 15, as investors buy the recent dip after the encouraging US consumer inflation report.

Summary

  • The crypto market rally restarted today, with Bitcoin and most altcoins rising by double digits.
  • This rally ignited after the recent US inflation report, which showed that prices retreated in January.
  • The rally is also happening as the Crypto Fear and Greed Index remains in the extreme fear zone.

Bitcoin (BTC) price jumped to $70,000, while the market capitalization of all coins soared to over $2.4 trillion. Pepe Coin (PEPE) jumped by over 30% in the last 24 hours, while Zcash (ZEC), Dogecoin, and Bonk were up by over 10% in the same period. 

Most of these tokens have soared by over 50% from their lowest levels this year. Other top gainers were coins like Shiba Inu, Jupiter, Morpho, and Pippin.

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Crypto market rally triggered by US inflation report

The ongoing crypto market rally is happening because of last Friday’s macro report, which showed that the headline consumer inflation continued falling in January. This report showed that the headline Consumer Price Index dropped to 2.4% in January from 3% a few months ago. It is slowly moving towards the 2% target..

Another report showed that the labor market is making strides despite some notable layoffs announced this year. The unemployment rate dropped to 4.3% as the economy created over 130k jobs during the month.

These numbers mean that the Federal Reserve will likely cut interest rates more time than expected this month. While Fed officials have hinted at one interest rate cut this year, most analysts expect that the bank will deliver more cuts than that.

The crypto market rally is also happening as the futures open interest continues rising. Data compiled by CoinGlass shows that the futures open interest rose by nearly 2% to $100 billion, a sign that investors are adding more leverage to their positions. 

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Crypto Fear and Greed Index has rebounded

Additionally, the rally is happening because of the ongoing performance of the Crypto Fear and Greed Index, which has remained in the extreme fear zone in the past few weeks. It has jumped from the extreme fear zone of 8 to the current 13. 

Historically, crypto bull runs normally start whenever the Fear and Greed Index falls to the extreme fear zone. A good example of this is what happened earlier this year when Bitcoin and other cryptocurrencies rallied.

Still, there is a need for caution as this rebound may be a dead-cat bounce, a situation where financial assets in a freefall rebound briefly and then resumes the downtrend trend.

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Crypto World

Polymarket Revenue Jumps as New Fees Take Effect

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Polymarket Revenue Jumps as New Fees Take Effect

Prediction market Polymarket’s recent fee expansion has started to affect its numbers, with daily fees and revenue climbing sharply in the days following a March 30 price overhaul. 

According to DefiLlama data, daily fees rose from about $363,000 on Monday to over $1 million on both Wednesday and Thursday, while revenue (the portion retained after incentives) reached as high as $995,000 on Wednesday before easing to about $899,000 on Thursday. 

Polymarket fees and revenue data since March. Source: DefiLlama

The jump follows the rollout of a broader fee model on Monday, when the platform expanded taker fees beyond crypto and sports to categories including finance, politics, economics, culture, weather and tech, while keeping geopolitical and world events fee-free. 

The spike shows how aggressively Polymarket is monetizing trading activity to maintain continued investor interest amid regulatory scrutiny in the US, Europe and other countries worldwide. Last week, Intercontinental Exchange, the parent company of the New York Stock Exchange, invested $600 million in Polymarket.

Prediction markets face growing regulatory scrutiny

The fee and revenue spike comes as prediction markets, including Polymarket, face growing regulatory scrutiny across multiple jurisdictions.

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In Europe, Polymarket has faced mounting restrictions, with Hungary and Portugal moving to block or limit access in January over concerns that the platform operates as unlicensed gambling. Regulators in both countries cited licensing issues and, in Portugal’s case, concerns around political betting.

Related: Peter Brandt, Polymarket traders don’t see new Bitcoin highs this year

On March 17, a court in Argentina ordered a nationwide ban on Polymarket, arguing that the platform allowed users to place bets without sufficient identity and age verification. The court said this meant that even children and adolescents could access the platform and place bets without any control. 

According to Polymarket’s website, the platform is currently blocked in 33 countries. Kalshi, on the other hand, reports that it’s banned in 52 jurisdictions. 

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List of jurisdictions where Kalshi is restricted. Source: Kalshi

In the United States, at least 11 states have taken legal action against prediction markets such as Polymarket and Kalshi, with several issuing cease-and-desist orders or considering new legislation.

Despite regulatory crackdowns, Polymarket and Kalshi are looking to expand, with both reportedly exploring new funding rounds that could value each platform at around $20 billion.

On March 24, Polymarket and Kalshi introduced new trading restrictions to curb insider trading following criticism over well-timed bets and growing concerns around market integrity.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?

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