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Bitcoin Slips Into Distribution Phase Amid Drop to $95K: Here’s What This Means for the Market  

Albert Brown
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On-chain data suggests Bitcoin has slipped into a distribution phase amid the latest market pullback.

Bitcoin began the new year on a strong note, briefly reclaiming $100,000 on Jan. 6 with a 4% surge. However, the asset has since faced a pullback, correcting by 5.22% on Jan. 7 and sliding further to $95K today. 

Glassnode Highlights Bitcoin Shift to Distribution  

Amid the turbulence, a Glassnode report today revealed that Bitcoin’s market has entered a distribution phase at the start of the year. 

For context, its Accumulation Trend Score, a metric tracking changes in wallet balances, now stands at 0.21. This low score suggests net selling among most Bitcoin holders, marking a change from the accumulation trend seen since October.  

To break this trend further, Glassnode called attention to the behavior of large wallet holders. The report confirmed that entities holding more than 10,000 BTC have been distributing consistently since September, with an increase in selling activity in recent weeks. 

Similarly, whales with 1,000 to 10,000 BTC have ramped up their sales over the past two weeks. Notably, this change in behavior shows reduced confidence or profit-taking among some of the largest market participants, which could weigh heavily on Bitcoin’s price in the short term.  

Profit-Taking on the Rise  

Data from CryptoQuant supports the Glassnode report, showing that many investors are now selling Bitcoin at a profit. The Adjusted Spent Output Profit Ratio (aSOPR), a key indicator of profitability, has risen to 1.04. 

Bitcoin Adjusted SOPR aSOPR
Bitcoin Adjusted SOPR | CryptoQuant

This level indicates that most recent transactions involve selling at a gain, a positive sign on its own. While this signals healthy market activity, it can also suggest that the market might be approaching a local peak if profit-taking continues.  

Meanwhile, Darkfost, an on-chain analyst at CryptoQuant, also noted sharp behavior changes among retail investors. He explained that retail activity surged as Bitcoin neared $100,000, with demand variation increasing by over 30%. Such spikes often coincide with market tops. 

Bitcoin Retail Investor Demand CryptoQuant
Bitcoin Retail Investor Demand | CryptoQuant

After Bitcoin hit $108,000 last year, retail demand fell drastically, dropping by 16%. Darkfost highlights that this decline in retail activity may provide a buying opportunity, as similar conditions in the past have preceded price rebounds.  

Bitcoin Currently in a Cooling-off Phase

Avocado, another on-chain analyst, believes the current market conditions represent a cooling-off phase rather than the end of the bull market. In a report on CryptoQuant, he pointed to several metrics supporting this view.  

For one, the Spent Output Profit Ratio (SOPR), smoothed over seven days, remains above 1 but is trending downward. This indicates declining profitability but has historically preceded rebounds during bullish cycles. 

Further, the Miner Position Index (MPI) shows no significant miner sell-offs, suggesting that mining companies remain confident about Bitcoin’s long-term potential. In fact, Marathon Digital has instead been accumulating. 

Other metrics, such as declining network fees and funding rates, further indicate a cooling phase. Reduced fees signal a slowdown in on-chain activity, while falling funding rates suggest that market sentiment is tempering. These conditions typically set the stage for future price recoveries.  

Bitcoin currently trades for $95,590 at press time, down 1.39% today. The token initially gave up the $95,000 support earlier today but has since recovered it. A push toward the Jan. 4 highs around $98,000 could help the bulls with a recovery campaign.

Bitcoin, Ethereum, and BNB Now Strategic Reserve Assets in Bhutan

Okoya David
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Bitcoin, Ethereum, and BNB Now Strategic Reserve Assets in Bhutan

Bhutan’s Gelephu Mindfulness City (GMC) takes a bold step with Bitcoin, Ethereum, and BNB.

The adoption of crypto, particularly Bitcoin, by more nation-states is increasingly gaining momentum as a major crypto narrative for 2025. 

Now, following a recent announcement from Bhutan, some believe the dominos are already falling.

Bitcoin, Ethereum and BNB Get Bhutan Nod

Bitcoin, Ethereum, and BNB are now strategic reserve assets in Bhutan. Specifically, these crypto assets are now reserve assets in Gelephu Mindfulness City (GMC), a special administration region in Bhutan aimed at fostering innovation and economic development.

GMC disclosed this in a Wednesday, January 8 press release, noting that it expects that integrating these crypto assets as strategic reserves will help bolster its economic resilience while contributing to the growth of its digital asset ecosystem.

After designating Bitcoin, Ethereum, and BNB as strategic reserves, the region can use these assets to do everything from backing its currency to facilitating trade and providing a buffer against economic shocks.

Crypto proponents have long pined for moves like this as it introduces new demand for the reserve asset, which could positively impact the value of their holdings.

GMC said its selection of Bitcoin, Ethereum, and BNB was due to their large market capitalization and liquidity, allowing trades with minimal price impacts.

The move follows the enactment of “GMC Law No. 1 of 2024,” establishing a legal framework for firms seeking to offer crypto services in the region.

The region disclosed that it would meet with senior Bhutan officials and industry leaders in March 2025 to further discuss the move and plans to form an international advisory committee.

“A Powerful Example to the World”

Unsurprisingly, GMC has received nods from several crypto community members for its decision, including Binance CEO Richard Teng.

In an X post on Wednesday, Teng lauded Bhutan as “a powerful example to the world,” claiming that the small South Asian country was leading the way in crypto innovation.

Bhutan’s romance with crypto, especially Bitcoin, has been long documented. The small country has been deeply invested in the space since at least 2019, launching a Bitcoin mining operation through its sovereign investment arm, Druk Holding & Investments. 

Wallets believed to be linked to the country hold over $1 billion in Bitcoin and about $2 million in Ethereum, per Arkham Intelligence data at the time of writing. For context, Bhutan’s GDP for 2022 was $2.9 billion.

Ethereum Crashes Below $3,500, Bears Eye $3,095 Support

Albert Brown
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Ethereum Crashes Below $3,500, Bears Eye $3,095 Support

Amid the ongoing crypto market crash, will Ethereum (ETH) maintain dominance at the $3,000 psychological support level?

With Bitcoin retreating to the $95,000 range, Ethereum has fallen by nearly 10% over the past 24 hours. It is currently trading below the $3,400 mark, maintaining a market capitalization of around $401 billion.

With massive liquidations and an outflow in the Ethereum spot ETF market, bears are gaining control of the trend.

Ethereum Price Analysis

On the 4-hour chart, the bullish breakout above the $3,500 zone failed to sustain momentum, reversing at the $3,700 level. This reversal coincided with the drop in Bitcoin prices, triggering a sharp decline.

COINBASE:ETHUSD Chart Image by Trojan69420

Following a series of bearish candles, the Ethereum price has dropped to $3,333, falling below its 200 EMA line on the 4-hour chart. Ethereum is now back within its previous range, which spans from $3,400 to $3,150, with support at $3,244.

With frequent price rejections and a continuing streak of bearish candles, it is likely that bears will challenge the critical support level. Additionally, the increase in selling pressure has pushed the 4-hour RSI into the oversold region.

Moreover, the 50 and 200 EMA lines suggest a higher likelihood of a death cross, signaling further downside. As a result, the technical indicators are flashing a sell signal.

Ethereum ETFs Bleed Amid High Liquidations

In the wake of crypto market liquidations, Ethereum derivatives have experienced a 5.51% drop in open interest. Currently, it stands at $30.42 billion, with the long-to-short ratio turning notably bearish at 0.8968.

Ethereum Derivatives
Ethereum Derivatives

With $146 million in liquidations, bulls have lost $131.54 million. Additionally, funding rates have declined to 0.052% compared to 0.093% in the past 24 hours.

Furthermore, the daily net outflow from U.S. Ethereum Spot ETFs reached $86.79 million, contributing to a bearish trend. Notably, Fidelity saw $67 million in liquidations, while the Grayscale Ethereum Trust lost $11.19 million.

Ethereum ETFs
Ethereum ETFs

ETH Price Targets

Based on the current price action, the breakdown of the $3,244 support level will determine Ethereum’s next price movement. As the RSI enters the oversold region, there is a chance of a reversal due to bearish exhaustion.

This could drive a potential bounce back toward the $3,415 resistance level with a V-shaped reversal. However, with the broader market still under pressure, Ethereum’s next immediate bearish target is the $3,095 support level.

Cardano Price Falls Under $1: Sellers Target $0.94

Albert Brown
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Cardano Price Falls Under $1: Sellers Target $0.94

With Cardano (ADA) falling below the $1 mark, will the bears break the crucial 200 EMA at $0.968?

Amid the declining crypto market, Cardano has dropped 12.39% in the past 24 hours, slipping under the psychological $1 level. The market cap of Cardano is now down to $34.94 billion.

Despite maintaining its position among the top 10 cryptocurrencies, this short-term pullback increases the likelihood of a sustained bearish trend.

Cardano Price Analysis

On the 4-hour chart, the Cardano price trend indicates a failure to maintain the $1.117 resistance level after a breakout. This failure, combined with broader market declines, led to a significant correction, trapping many bullish traders.

Cardano Price Analysis
Cardano Price Analysis

Further price declines have broken the $1 psychological level, and Cardano is now retesting the 100-EMA at $0.991. The 100-EMA line acts as support, mitigating the bearish trend and guiding the price in a sideways direction.

Additionally, the 200-EMA provides lower price rejection, signaling strong underlying demand at lower levels. As Cardano shifts sideways after a sharp pullback, the 20-EMA shows a significant decline, raising the likelihood of a bearish crossover with the 50-EMA.

Furthermore, the 4-hour RSI has bounced below the halfway mark, hinting at a potential reversal during the consolidation phase.

Overall, technical indicators suggest a neutral stance despite the short-term downturn.

ADA Price Targets

Based on the current price action, Cardano is at a crossroads just below the $1 psychological level.

However, increased volatility in the crypto market adds uncertainty to ADA’s price trajectory. While the sharp drop below $1 may present a buying opportunity at a key psychological level, the broader market selloff suggests the pullback could continue.

In the event of a V-shaped recovery, immediate resistance for Cardano will likely be at the 20-EMA line at $1.044, followed by the $1.117 resistance level. Conversely, a bearish continuation could target support levels such as the 200-EMA at $0.968 and the $0.94 horizontal level.

Bhutan’s SAR Recognizes Bitcoin, Ethereum, and BNB as Official Strategic Reserve Assets

Albert Brown
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Bhutan’s SAR Recognizes Bitcoin, Ethereum, and BNB as Official Strategic Reserve Assets

Bhutan’s newly established Special Administrative Region (SAR), Gelephu Mindfulness City (GMC), has announced plans to include digital assets such as Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) in its strategic reserves.

According to a press release, this decision makes GMC one of the first regions globally to officially integrate digital assets into its reserve strategy. The move also builds on Bhutan’s previous involvement in Bitcoin mining.

Criteria for Strategic Reserve Assets

GMC’s approach to its strategic reserves prioritizes digital assets with high market capitalizations and deep liquidity. This ensures these assets can be traded with minimal price impact. Additionally, the region intends to recognize only assets issued on mature and secure blockchains that allow for robust monitoring of on-chain transactions.

Located at the crossroads of South Asia’s burgeoning economies, GMC aims to leverage its geographical position to promote blockchain technology. The region seeks to attract businesses and investors by embracing digital assets while enhancing its economic resilience.

Legal and Regulatory Framework

Per the release, the inclusion of digital assets in strategic reserves follows the enactment of GMC Law No. 1 of 2024, also known as the Application of Laws Act 2024.

Introduced in late December 2024, this legislation established a comprehensive legal and regulatory framework for digital asset financial services within GMC. The law aims to provide a secure environment for businesses while fostering the growth of a robust digital asset ecosystem.

Further, the SAR plans to hold a high-level meeting in March 2025 to discuss incorporating digital assets into strategic reserves. Senior officials and industry leaders worldwide are expected to attend, and an international advisory panel on digital assets is set to be established.

Bhutan’s Broader Role in Bitcoin

Notably, Bhutan has also emerged as a notable player in the Bitcoin space. In September 2024, it became the second nation, after El Salvador, to disclose Bitcoin holdings. Unlike most governments, Bhutan’s holdings result from state-backed mining operations utilizing its abundant hydroelectric resources.

At the time, Arkham research revealed that Bhutan held 13,036 BTC, valued at $770 million, accounting for nearly 27.9% of its GDP in 2023. This surpassed El Salvador’s 5,876 BTC holdings, highlighting Bhutan’s growing prominence in the global Bitcoin ecosystem.

Expert Predicts Cardano Price if Dogecoin Reaches $1

Lele Jima
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Expert Predicts Cardano Price if Dogecoin Reaches $1

A famous crypto expert speculates that Cardano (ADA) could surge to an all-time high (ATH) of around $12 over the next few months if Dogecoin rises to $1. 

Cardano recorded an impressive performance in the second phase of the bull run, which began immediately after the U.S. election. Specifically, ADA surged above the $1 mark post-election, reaching $1.32 on December 7, up from $0.40 in November before the election.

This surge coincided with a rally across the broader crypto market, with assets like Dogecoin also recording a considerable price increase. 

However, ADA has slumped below the $1 mark, as it currently trades at $0.9884 per token. Meanwhile, Dogecoin, which soared to $0.4835 on December 9, has plunged to $0.3436 in the hours leading up to press time. 

ADA to Hit $12 if Dogecoin Reaches $1

In a post on X, a pseudonymous market commentator projected that Cardano and Dogecoin would embark on significant rallies over the next couple of months. 

Specifically, the expert expects Dogecoin to clinch the highly anticipated $1 target over the next 6-12 months. This represents a surge of 191.03% from the current price. If Dogecoin reaches an all-time high of $1, its market cap will soar to $147.53 billion. 

Notably, the commentator expects this prediction to play out between May and November 2025.

Moreover, he suggested that if Dogecoin clinches the $1 target, Cardano might soar to between $10 and 12 simultaneously. For context, the $10-12 targets require ADA to surge between 911% and 1,114% from its current price of $0.9884. 

At $10, ADA will have a market cap of $351.51 billion, while the $12 target will take Cardano’s valuation to $421.81 billion.

To illustrate the significance of this surge, a portfolio of 1,000 ADA, which costs about $988.4 today, will be valued at $10,000 if the price hits $10 and $12,000 if it reaches $12.

Meanwhile, the analyst did not provide potential factors that could drive the price of Cardano and Dogecoin to these targets.

Similar Predictions 

Several market analysts have also expressed optimistic prospects about Cardano in the ongoing bull market. 

For instance, renowned market observer Lark Davis projected that ADA would soar to the $10 territory this year. Similarly, Dan Gambardello, the founder of Crypto Capital Venture, echoed a comparable sentiment regarding ADA reaching $10 this cycle. 

These analysts expect the market to be in a sharp, bullish phase over the next few months. Their optimism lies in widespread retail and institutional adoption, as well as regulatory clarity from U.S. lawmakers.  

ADA Set to Hit $3 Short-term

In the meantime, prominent market chartist Ali Martinez emphasized that ‘ADA is breaking out of a bull pennant.’ According to him, this breakout could potentially take ADA to $3, representing a surge of 203% from the current value. 

For context, a bull pennant usually forms on an asset’s chart after a brief period of consolidation following a sharp upward price movement. Upon breakout, the asset usually continues in the direction of the previous trend. 

Senator Lummis: Wouldn’t It Be Fun if the US Buys Bitcoin and Scares China and Russia?

Elendu Benedict
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Senator Lummis: Wouldn’t It Be Fun if the US Buys Bitcoin and Scares China and Russia?

Republican Senator Cynthia Lummis has insinuated that the US’s entrance into Bitcoin could scare rival countries like China and Russia.

Senator Lummis’ impeccable support for Bitcoin and digital assets has been an inspiration to lawmakers globally. Her Bitcoin Act bill has spurred legislative members in other countries to push for the adoption of the premier asset as a strategic reserve.

The staunch proponent delivered another Bitcoin masterclass speech on Tuesday. In a Bankless interview, Lummis called for the global adoption of the pioneering asset instead of an arms race for weapons.

Bitcoin Is a Secured Store of Value

The Republican senator suggested a paradigm shift in what countries view as a secured store of value. According to her, nations could evolve from heavily investing in military facilities to buying into an asset with the intrinsic qualities of an economic hedge.

She speculated on the idea of the United States purchasing Bitcoin and causing concern for nations like China and Russia, prompting them to start buying Bitcoin as well, and resulting in a competitive focus on the cryptocurrency rather than on weapons.

The Republican senator believes that Bitcoin is a reputable store of value, with this belief motivating her to propose global adoption. Her Bitcoin Act deal suggests the US acquire 1 million bitcoins over five years as a strategic reserve asset.

Moreover, she noted that the US can decide not to raise new capital for the acquisition. The senator proposed selling some of the country’s gold stockpile for the asset, an idea MicroStrategy’s Michael Saylor once teased.

Strategic Bitcoin Bill Drafted

Meanwhile, the Bitcoin Policy Institute has introduced an executive order to create a Bitcoin reserve in the United States. The agency filed the order under the Exchange Stabilization Fund (ESF) from the Treasury.

The draft proposes to create a US stockpile pending Donald Trump’s approval upon inauguration. Under the provision, the Treasury Secretary will ensure the Strategic Bitcoin Reserve (SBR) creation, allocating $521 billion to the course.

Notably, this draft differs from Senator Lummis’ Bitcoin Act. The means would serve as an executive order to create the stockpile while the Senate deliberates on the Bitcoin bill.

Bitcoin Dips Below $96K Amid HMPV Virus Threat: Is a Drop to $90K Imminent?

Albert Brown
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Bitcoin Dips Below $96K Amid HMPV Virus Threat: Is a Drop to $90K Imminent?

Will Bitcoin drop below $90K as global markets decline due to the HMPV virus threat and the U.S. market weakens amid reduced rate-cut expectations?

The crypto market has dropped by 6.15% in the past 24 hours, returning to $3.36 trillion. This downturn includes a significant 5.60% decline in Bitcoin, which has lost its $2 trillion mark valuation.

As Bitcoin dips below the $100,000 mark, market fear intensifies, driving the Fear and Greed Index down to 54. With rising liquidations and a sudden shift into a bearish trend, Bitcoin’s decline signals a possible pullback to $90,000.

Bitcoin Price Analysis

The 4-hour Bitcoin chart shows a failure to break above the $102,557 supply zone, leading to a sharp pullback below the $96,000 mark.

BITSTAMP:BTCUSD Chart Image by Trojan69420

Currently, Bitcoin is trading at $95,846, breaking below its 200-EMA line on the 4-hour chart. This has caused a significant pullback in the 4-hour RSI, reflecting increased selling pressure.

Additionally, the downturn in the 20-EMA line suggests upcoming bearish crossovers between the average lines. Overall, technical indicators signal a bearish outlook amid the ongoing crypto market crash.

Crypto Market Bleed $650 Million 

During the pullback, the crypto market has lost nearly $650 million over the past 24 hours. This constitutes $588.24 million in long liquidations, with just $61.13 million on the short side.

The most significant single liquidation order occurred on Binance in the ETH-USDT pair, amounting to $17.74 million.

Crypto Liquidations
Crypto Liquidations

Derivatives Turn Bearish 

As the pullback continues, Bitcoin’s derivatives data analysis reveals a 3.85% drop in its open interest to $62.80 billion. The long-to-short ratio has turned bearish, now standing at 0.9421. In addition, the OI-weighted funding rate has risen to 0.076%, up from 0.0044%.

Bitcoin Derivatives
Bitcoin Derivatives

BlackRock Continues to Buy Bitcoin

Amid the sharp pullback, the daily total net inflow in the U.S. Bitcoin spot ETF stood at $52.39 million. On the positive side, BlackRock remains bullish, with an inflow of $596.11 million. Meanwhile, the ARK and 21Shares Bitcoin ETF saw outflows of $212.55 million.

Bitcoin ETFs
Bitcoin ETFs

Surging U.S. Treasury Yields Weaken Rate Cut Expectations

Amid fears of the HMPV virus crashing global markets, strong economic reports from the U.S. have emerged as a key bearish catalyst.

On Tuesday, U.S. Treasury yields spiked, with the 10-year yield rising 6.8 basis points to its highest closing level since April 2024, currently standing at 4.684%. The 30-year yield also increased 7.3 basis points, reaching its highest closing level since November 2023.

Currently, the U.S. 10-year bond stands at 4.678%, and the 30-year Treasury bond stands at 4.914%. As strong economic data impacted the Nasdaq and S&P 500, bearish effects spread across the crypto market.

Moreover, the bearish narrative has been reinforced as the likelihood of federal interest rate cuts in 2025 declines due to strong job openings.

BTC Price Targets

As the pullback phase intensifies, immediate support is at $95,119. Given the declining global market conditions due to the HMPV virus threat, liquidations in the crypto market are likely to escalate.

If the $95,000 support level breaks, a retest of the $92,654 support level is likely. Meanwhile, the downward trend in the RSI line signals a potential buy-the-dip opportunity at these critical support levels.

Expert Says 0.001 Bitcoin Worth $96 Could Make You a Multi-Millionaire: Here’s How

Abdulkarim Abdulwahab
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Renowned crypto commentator Aaron Arnold, host of Altcoin Daily, recently sparked a conversation about the potential for a fraction of Bitcoin to transform an individual into a multi-millionaire.

Specifically, Arnold boldly stated in a tweet today that holding 0.001 BTC could make an investor a multi-millionaire in the years to come.

He cited a chart from trillion-dollar asset manager Fidelity, which highlighted Bitcoin’s projected path over the next two decades. The chart depicted a future where Bitcoin’s floor price would gradually rise to around the billion-dollar mark by 2037.

Foundations of the Bold Bitcoin Prediction

Notably, Bitcoin’s price journey has been one of exponential growth amid its scarcity and increasing adoption. The graph visualizes this evolution, aligning historical price trends with two predictive models: the Stock-to-Flow (S2F) model and an S-curve demand model inspired by the adoption of mobile technology.

In its early days, Bitcoin’s price surged from mere cents to thousands of dollars, closely following the projections of the S2F model. This model highlights Bitcoin’s fixed supply and the diminishing flow of new coins into circulation due to halving events.

The S-curve demand model then draws parallels between Bitcoin’s adoption and the widespread uptake of technologies like mobile phones.

In particular, the model cites Metcalfe’s Law, which posits that the value of a network expands exponentially as additional users join.

It is worth noting that the Bitcoin forecast presented by the chart was made several years ago. Interestingly, both models cited in the chart accurately predicted Bitcoin’s current 2025 price, hovering around the $100,000 level.

Image
Bitcoin price projections by Fidelity Investment

Bitcoin Price by 2037 and Becoming a “Multi-Millionaire”

Looking ahead, the models suggest even more optimistic futures for Bitcoin. The S2F model anticipates sharp price increases, with projections reaching astronomical levels as high as $1 billion in the 2030s.

Meanwhile, the S-curve model suggests a more conservative trajectory. Yet, it indicates that Bitcoin could be worth over $1 million by the same time. For context, Bitcoin is currently worth $96,000 per coin.

Based on these promising projections, Arnold confidently stated that even 0.001 BTC, worth $96 today, could translate into a significant fortune by 2037.

In the scenario where the $1 billion market price materializes, 0.001 BTC would indeed be worth $1 million. However, it would still be worth $1,000 under the more conservative forecast.

While past performance has shown strong alignment with the models, the authors of the projections stress that past performance does not guarantee future outcomes.

Why Ripple Snubbed Flare to Partner With Chainlink for RLUSD

Albert Brown
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Why Ripple Snubbed Flare to Partner With Chainlink for RLUSD

Flare Labs CEO Hugo Philion offers clarity as Ripple’s RLUSD Chainlink partnership sparks uproar.

Before Donald Trump’s election victory sparked anticipation of friendly regulatory conditions, the XRP community already had a looming development stoking excitement: the launch of Ripple’s enterprise-grade stablecoin RLUSD that promised to bring liquidity and a DeFi boost to the XRP Ledger.

Following a recent Ripple partnership to bolster RLUSD’s DeFi suitability for Ethereum, however, a section of the XRP community has been left feeling jilted.

Ripple’s Chainlink Partnership Sparks Flare Uproar

To bolster RLUSD’s use in DeFi, On Tuesday, January 7, Ripple announced that it had partnered with decentralized oracle provider Chainlink to offer reliable and secure price feeds for the stablecoin on Ethereum.

While the news had largely sparked excitement about RLUSD’s prospects, a cross-section of the community has been up in arms. These community members are also members of the Flare community.

Flare is a project with strong ties to the XRP community since it initially started out as a project promising to be the smart contract layer of the XRPL. While the project instead pivoted to a standalone Layer 1 blockchain seeking XRP liquidity through staking incentives for bridged tokens, it has maintained strong support from the XRP community through ongoing token airdrops to long-time XRP holders.

These XRP holders who have benefited from Flare view Ripple’s Chainlink partnership as a job for Flare. 

“Ripple should’ve had to partner with Flare. FLR is WAY more superior than Chainlink, and we all know it,” one such user wrote.

This view comes as the bulk of Flare’s marketing has been on its oracle and interoperability capabilities via its so-called Flare Time Series Oracle (FTSO) and Data Connector.

So why did Ripple partner with Chainlink instead? Flare Labs CEO Hugo Philion has presented an answer.

Flare Simply Can’t Do What Ripple Needs?

Responding to the uproar, Philion clarified that Flare did not yet provide oracles to other networks. He stressed that for now the focus of the network remained offering staking and DeFi incentives for bridged XRP, Bitcoin, and Dogecoin.

It is also unclear that Flare will ever expand its oracles beyond its network as Philion describes it as “something that MAY come.”

While the Flare co-founder’s statement has offered some calm, others have questioned the project’s prospects. Suppose Flare’s value proposition is offering DeFi opportunities to holders of assets like Bitcoin. In that case, it may have its work cut out for it as blockchains like Ethereum offer similar opportunities with more established DeFi ecosystems.

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