Get Smarter About Crypto

₿itcoin reached $70,203. -0.27%

♢Ethereum reached $3,584. -0.81%

What we will talk about today...

📉 Bitcoin: A Looming Supply Crisis? 📈

🌐 Socialfi: A New Chapter in Social Media

🚀 0G Raises $35 Million for AI in Web3 🤖

Bitcoin: A Looming Supply Crisis?

Bitcoin is heading towards a supply squeeze, a crisis that could happen within a year. Despite a price drop to $70,142, Bitcoin’s supply might soon be outpaced by demand.

📊 Emerging ‘Sell-Side Liquidity Crisis’

The recent “Weekly Crypto Report” from CryptoQuant shows a “sell-side liquidity crisis” brewing. The demand for Bitcoin has spiked this year, partly due to the launch of Bitcoin ETFs in the U.S.

This demand surge is starting to impact supply, with a shift expected by Q1 2025.

⏳ Bitcoin Supply Could Run Out in 12 Months?

With high Bitcoin demand and low sell-side liquidity, Bitcoin’s liquid inventory has dropped to its lowest ever, says CryptoQuant’s report.

The report suggests that at the current demand rate, the Bitcoin sell-side liquidity could last only twelve more months.

📉 Old Bitcoin Supply Activates

CryptoQuant CEO Ki Young Ju points out on social media platform X that old Bitcoin supply, including coins mined in 2010, is moving again.

Ki links this activity to the narrative of an upcoming supply squeeze due to ETF inflows.

💼 ETF Inflows: A Shift in Trend

While ETF inflows initially raised supply squeeze concerns, recent data from UK-based firm Farside shows a trend reversal. After consecutive net outflows, March 25 saw a significant increase in net inflows, hitting $400 million — a two-week high.

🚨 Market Alert: Upcoming Crisis

As Bitcoin’s sell-side liquidity keeps dropping and old BTC supply starts moving, the market could face a crisis that might change Bitcoin’s supply dynamics. Investors are advised to keep a close eye on these developments as Bitcoin enters uncharted territory with rising demand and shrinking supply.

Socialfi: A New Chapter in Social Media

Kevin Lu, the head of Friendzone, sees “socialfi” as an extension of Satoshi Nakamoto’s idea of a decentralized financial system, but now it’s for social media. It’s not about replacing old platforms, but filling in the gaps they left, creating a new, inclusive Web3 social scene.

🔄 Changing How Creators and Fans Interact

Lu imagines socialfi platforms changing the game by creating micro-economies. Here, everyone wins - creators and users get transparent rewards and fair shares. This encourages the growth of whole communities and content platforms, rewarding early joiners and creating strong network effects.

🔗 Friendzone: A New Kind of Social Marketplace

Friendzone is the first of its kind - an open Web3 social capital marketplace. It lets users make money from their social connections, trade into other networks, and even invest in others’ success. With adaptive bonding curves solving scalability issues, Friendzone is accessible to everyone, no matter when they join.

💡 Combining Engagement with Blockchain Benefits

The main challenge for Web3 social platforms is to combine traditional engagement with the unique benefits of blockchain. Lu suggests solutions that benefit everyone - users, platforms, and the Web3 tech stack. This includes addressing issues like managing intellectual property, distributing rewards, and gamification to boost user engagement and empower communities.

⚙️ Scalability with Adaptive Bonding Curves

Adaptive bonding curves are a game-changer for scaling socialfi platforms. They allow for adjustments based on current market conditions, promoting inclusivity, scalability, and engagement. This creates thriving micro-economies and encourages deeper fan engagement and monetization.

🚀 Dynamic NFTs: A New Era of Digital Ownership

Dynamic non-fungible tokens (NFTs) are leading the NFT world, changing how we see digital ownership and interaction. In the socialfi ecosystem, dynamic NFTs offer new ways for creators to connect with and reward their community. These tokens change over time, reflecting fans’ support and giving them access to exclusive content and experiences, strengthening the bond between creator and fan.

0G Raises $35 Million for AI in Web3

Web3 startup 0G, aptly named “zero gravity,” has raised a significant $35 million from over 40 strategic backers on March 26, 2024. The company aims to revolutionize Web3 infrastructure scalability and integrate onchain AI solutions seamlessly.

💰 Boosting Web3 Infrastructure

Backed by strategic investors like Hack VC, Stanford Builders Fund, and Orange, 0G is set to enhance infrastructure scalability through modular designs. A key focus is to address the challenges of deploying onchain AI applications in Web3.

🔍 Solving Key Challenges

In interview, 0G shared its solution to balance scalability and security. They’re developing a data availability layer that splits into a storage component and a data publication segment. This division allows efficient and secure processing of large data volumes.

⚡ Superior Technology

0G claims its method is unmatched in advancing AI technologies on the blockchain. The company boasts a data processing speed of 50 gigabytes per second, far exceeding competitors’ 1.5 megabytes per second. Plus, 0G achieves this at a cost 100 times lower than others.

🌐 Shaping Web3’s Future

Ed Roman, managing partner at Hack VC, praised 0G as the top modular data availability solution for Web3 and AI networks. He highlighted their technology’s speed and cost-effectiveness compared to ETH L1.

As 0G continues to innovate, the potential for seamless AI integration on the blockchain grows. With its commitment to scalability and security, 0G is set to influence the future of AI-driven Web3 ecosystems.

CAN YOU PREDICT THE PRICE?

HOW DID WE DO? 🤷

Stay tuned for more twists and turns in the crypto world & Happy Investing🚀💎