Chart of the Day
Ether is staging a strong rally as it cleared the $3.5k pivot level and climbed above $3,800 briefly to test the resistance near $3,850. On-chain metrics show that a solid price wall is building up near $3,200, while not many active wallets are holding Ether between $3,500 and $3,800, giving the second-largest cryptocurrency another leg of bull run. The bullish momentum can be partly attributed to a sharp decline in the ETH inflation rate since the implementation of EIP 1559. Prior to the upgrade, the inflation had been held steady above 4%. It has since trended down significantly and even dipped below 1%. Although the sub 1% inflation rate is unlikely to sustain until a major paradigm shift — the transition to PoS consensus, the impact of EIP 1559 on ETH’s monetary policy is, at least, on par with BTC halvings.
Talk of the Town
Crypto tipping jar. According to multiple reports, Twitter is apparently testing the function of tipping in bitcoin on the Lightning network. The new service would allow users to send small amounts of bitcoin to each other and support both custodial and non-custodial wallets. Count it as a step to materialize Jack Dorsey’s belief in Bitcoin becoming the reserve currency of the Internet. Although it remains unclear when this product will roll out, there is no doubt that this revelation will lead to infinite possibilities of new use cases. Or would it open a fresh can of worms, especially considering the tightened regulatory grip on the crypto industry.