In a month marked by a challenging correction in the crypto market, Layer 2 (L2) blockchain protocol Optimism has emerged as a standout performer. Within the past 24 hours, Optimism’s native OP token skyrocketed by 9%, positioning it as the best-performing token among the top 100 cryptocurrencies. Behind this surge lies venture capital firm a16z, which has reportedly invested around $90 million in Optimism’s OP token, signaling further institutional support for the layer 2 protocol. OP Receives Major Investment Sources familiar with the matter have revealed to Unchained that a16z has acquired a significant stake in Optimism’s OP token. The investment, which comes with a two-year vesting period, underscores a16z’s interest in the Layer 2 protocol and aligns with its growing involvement in crypto. Notably, a16z’s portfolio already includes crypto exchange Coinbase. Related Reading: Machine Learning Algorithm Predicts Dogecoin Price For May 2024 The investment by a16z comes amidst notable activity and growth within the Optimism ecosystem. Optimism’s OP Stack has experienced increased usage, further validating its value proposition. The protocol’s ability to increase scalability and reduce fees on the Ethereum blockchain has also garnered significant attention. Optimism’s spokesperson expressed enthusiasm for the investment, acknowledging the energy and momentum surrounding the protocol. The partnership with a venture capital firm like a16z is expected to fuel further development and innovation within the Optimism ecosystem. On March 7, the Optimism Foundation disclosed the sale of approximately 19.5 million OP tokens, valued at nearly $90 million, to an undisclosed buyer. These tokens were reportedly sourced from a 30% pool of OP’s original treasury, dedicated to the foundation’s working budget. Reports indicated that the buyer could delegate their tokens to third parties, enabling them to participate in Optimism’s governance. The foundation clarified that, due to the private nature of the sale, specific details regarding the terms and purchaser were not disclosed. Key Levels To Watch For Optimism Despite the recent surge in the Optimism ecosystem and its native token OP, the token still trades well below its all-time high (ATH) reached on March 6, 2024, currently down over 47% from that level. However, OP’s trading volume has experienced a notable surge, indicating continued interest in the token. According to CoinGecko data, the OP trading volume has increased by over 113% compared to the previous trading day on April 30, amounting to nearly $600 billion in 24 hours. Related Reading: Bitcoin Euphoria Cools Off As BTC Distribution Enters Fear Zone Key levels to monitor for the token soon include OP’s significant resistance at the $2.62 price mark and a potential retest of the $3 zone. However, a clear indication of a positive trend for the Optimism token would require a successful consolidation above the $3.92 zone, marking the end of the month-and-a-half downtrend structure. Conversely, the $2.37 zone has proven to be a crucial support level for OP, as it has held for the past five days and prevented further price decline for the token. Digging deeper, the $2.25 mark is also a key support, with the most critical support level at $2.11. This level holds the key to Optimism’s macro bullish structure, as it initiated the token’s current uptrend. Featured image from Shutterstock, chart from TradingView.com
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Cardano Whales Accumulate ADA Tokens
Cardano whales have added 11% more ADA tokens to their wallets last month. ADA was trading at $0.4594 with over 1% increase in the last 24 hours. Continue Reading: Cardano Whales Accumulate ADA Tokens
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Ethereum L2 Eclipse Appoints New CEO Amid Sexual Misconduct Allegations
Neel Somani, Founder of Ethereum Layer-2 Blockchain Eclipse, has been replaced as Chief Executive Officer (CEO) due to accusations of sexual misconduct. Eclipse Labs announced Vijay Chetty, the company’s Chief Growth office (CGO), as the new CEO, taking over Somani’s responsibilities. Related Reading: Altcoin Season On The Horizon? Analyst Predicts Ethereum Breakout That Will Kickstart
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Major Success For Chainlink: US Banks’ Pilot Program Propels LINK Price Up 6%, Details
The Depository Trust and Clearing Corporation (DTCC) has partnered with blockchain oracle Chainlink and several prominent banking institutions in the United States to conduct a successful pilot aimed at accelerating the tokenization of funds. The collaboration has not only paved the way for the adoption of blockchain technology in the traditional asset management sector but has also had a significant impact on the price of Chainlink’s native cryptocurrency, LINK, which has surged past the $14 threshold. Major Asset Managers Join DTCC And Chainlink The pilot, called Smart NAV, was developed by DTCC to explore the extension of its Mutual Fund Profile Service I (MFPS I), an industry-standard platform that transmits “Price and Rate” data, also known as “NAV data.” Related Reading: Why Is This Crypto Pundit Warning XRP Investors To Be At Alert For The Next 3-12 Months By leveraging Chainlink’s cross-chain interoperability and blockchain abstraction capabilities, the pilot aimed to investigate the potential of on-chain price and rate data as a key enabler for new initiatives, particularly in the realm of mutual fund tokenization. To evaluate the industry value of a DLT-based price and rate dissemination solution, DTCC collaborated with asset managers, service providers, and distributors, including American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, and State Street. On-Chain Data Delivery For Fund Tokenization According to the announcement, the results of the pilot were positive. The collaboration between DTCC, the US banking institutions, and Chainlink reportedly showed that structured data can be delivered on-chain, enabling the embedding of foundational data into multiple on-chain use cases. This capability has far-reaching implications, including supporting brokerage portfolio applications and facilitating real-time, automated data dissemination. Moreover, Smart NAV aims to provide built-in access to historical data and simplify the relay of price and rate data through new interfaces for data consumption. Furthermore, the pilot reportedly achieved several key milestones, including validating user interfaces and applications that leverage on-chain data, establishing automation of data routing through smart contracts for dynamic data management, and preventing future fragmentation through Chainlink’s Cross-Chain Interoperability Protocol (CCIP). Related Reading: QCP Capital Sees Bitcoin Reclaiming $74K Highs – Here’s Why BTC Could Continue Its Rally Ultimately, the DTCC stated that the partnership with Chainlink has played a key role in the success of the Smart NAV use case. By providing an abstraction layer through its cross-chain interoperability capabilities, Chainlink has facilitated “seamless” transmission of data across multiple blockchains. This approach eliminates the need for DTCC to establish individual connections to each blockchain, mitigating costs and operational complexities while ensuring data accessibility and optimization. Bullish Momentum For LINK As of the time of this press release, the LINK token has successfully surged above the $14.88 mark, experiencing a notable 6.8% increase in price since the initial announcement on Thursday. Data from CoinGecko indicates that the token’s trading volume has also seen a significant surge of 17% in the last hours, reaching a substantial figure of $400 million. However, for LINK to recover from its 72% losses from its all-time high of $52.70 reached in May 2021, it faces two key resistance levels as shown on the token’s daily LINK/USD chart above. These resistance walls are located at $15.18 and $17.8 respectively, before potentially moving towards the $20 mark. It remains to be seen whether the current bullish momentum will persist and further propel the price of LINK beyond these levels. Featured image from Shutterstock, chart from TradingView.com
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Juno Addresses Banking Service Disruption — ‘This Is Outside Our Control’
Juno Finance acknowledges the disruption in banking services and is collaborating with its brokerage and banking service providers, Synapse and Evolve Bank & Trust, to restore full service as soon as possible. Juno is a financial platform that integrates checking and savings accounts with cryptocurrency trading. “Currently, Evolve Bank & Trust has frozen all card
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