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Flare Labs CEO Says Smart Contracts on XRP Ledger Will Make FXRP Even Better

Mark Brennan
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Flare Labs CEO Says Smart Contracts on XRP Ledger Will Make FXRP Even Better

Flare Labs CEO believes the XRP Ledger (XRPL) welcoming native smart contracts would bolster the functionality of XRP-based FAssets.

As Ripple moves forward with plans to introduce smart contracts to the XRP Ledger (XRPL), concerns have arisen about the potential impact on the Flare Network’s FAssets project. 

Flare’s FAssets and Smart Contracts on the XRPL

For the uninitiated, FAssets looks to bring smart contract capabilities to assets that do not natively support them, including XRP (FXRP), Bitcoin (FBTC), Dogecoin (FDOGE), and Litecoin (FLTC). 

Notably, the project operates by minting versions of these tokens on the Flare Network. It then allows network participants to use these versions for smart contracts and other decentralized finance (DeFi) applications. 

Originally, the FAssets project takes advantage of the lack of native smart contracts functionality on a blockchain. However, the project has yet to launch, with its development still in progress.

Meanwhile, The Crypto Basic recently confirmed that Ripple is planning to introduce smart contracts to the XRPL, possibly in 2025. The payment firm is looking to explore a dual approach, leveraging the EVM sidechain currently in development and a possible native smart contracts functionality.

Now, with Ripple’s recent focus on adding native smart contract functionality to XRPL, some in the community believe FXRP could become obsolete before it even gets off the ground. 

Flare Co-founder’s Stance

Addressing these concerns, Hugo Philion, co-founder of Flare Networks and CEO of Flare Labs, reassured the community that the introduction of smart contracts on XRPL would not diminish the value of FXRP. Instead, he argued that it would enhance the project. 

According to Philion, having smart contracts on XRPL would make FXRP more versatile and beneficial. He explained that this development would facilitate the integration of XRP with other assets on the Flare Network, such as FBTC and bridged assets through Flare’s Stargate protocol. 

This interoperability would allow users to leverage the strengths of different ecosystems. Philion also highlighted that for use cases where interoperability through Flare is not necessary, Flare’s Oracles could be utilized directly on the XRPL. 

Currently, Flare Oracles are limited in how they can interact with XRPL, but with smart contracts, they could be integrated more effectively. This would open up new possibilities for decentralized applications (dApps) on the XRPL that require real-time data and cross-chain functionality.

In response, a community member inquired whether the introduction of smart contracts on XRPL would necessitate additional testing on Flare’s test networks, including the Songbird (SGB) network, before being implemented on the main Flare network. 

Philion confirmed that any upgrade to FXRP to accommodate XRPL’s smart contracts would indeed require thorough testing. However, he assured that the first version of FXRP is progressing as planned and will be launched well before any potential smart contract upgrade to the XRPL is implemented. 

Bitcoin Holds Steady at $56K Despite Wall Street’s Massive Sell-Off and Nvidia’s 10% Plunge

Albert Brown
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Bitcoin Holds Steady at $56K Despite Wall Street’s Massive Sell-Off and Nvidia’s 10% Plunge

The price of Bitcoin saw a notable decline today, plummeting to around $56K, though lower than the massive price crash observed in the traditional market.

On Tuesday, the U.S. Department of Justice issued a subpoena to chipmaker Nvidia, sending shockwaves through Wall Street. As a result, Nvidia’s stock price crashed by 10%, leading to a broader market selloff that caused the S&P 500 to drop by 2.16%.

This marked one of the worst-performing days of 2024, driven primarily by the decline in large-cap tech companies. However, Bitcoin saw a less severe price drop than last month, when the stock market also crashed.

Bitcoin Volatility in August and September Compared

During the August 5 market crash, Bitcoin displayed significant volatility alongside traditional markets, crashing to $49K. The S&P 500 fell by 3.00%, while Bitcoin experienced a much sharper decline of 7.16%.

This indicated that Bitcoin was closely tracking the stock market at that time, reacting more dramatically to market turbulence. Investors viewed this as a sign that Bitcoin was still deeply influenced by broader economic conditions despite being a decentralized asset.

However, by September 3, a shift in Bitcoin’s market behavior was observed. The S&P 500 recorded another significant drop of 2.16%, but Bitcoin’s response was more muted, with only a 1.82% decline.

In particular, Bitcoin stayed above its previous lows from August, suggesting that the crypto’s correlation with traditional equities may be weakening. This relative stability in the face of stock market losses hinted at Bitcoin’s growing resilience amid broader market fluctuations.

Diverging Performance Observed Previously 

In July, Bitcoin and the stock market diverged sharply. While Bitcoin hit a four-month low on July 11, dropping 13.22% and dragging the global crypto market cap to $2.17 trillion, U.S. equities surged. The NASDAQ Composite rose 7.57% and the Dow Jones by 2.34%.

This decoupling was driven by unique selling pressures in the crypto market, wherein the German government dumped about $3 billion in Bitcoin on the open market.

Meanwhile, U.S. stocks benefited from a strong jobs report and optimism for rate cuts, contrasting sharply with Bitcoin’s decline.

Bitcoin Traders’ Liquidation Risk

Citing data from Coinglass, popular crypto analyst Ali Martinez highlighted that $246.64 million in leveraged positions are at risk of liquidation if Bitcoin drops below $56,840. 

As of the latest data, Bitcoin has already fallen below this critical level, raising concerns about potential further liquidations.

Here’s Why Bitcoin is Falling Today: Tanks to $56,480—Will $53K Support Prevent a $50K Test?

Albert Brown
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Here’s Why Bitcoin is Falling Today: Tanks to $56,480—Will $53K Support Prevent a $50K Test?

As Bitcoin falls under $57K with the US market sell-off, will $53K support stand strong to avoid a correction to $50K?

With a boost in the bear cycle, the price of Bitcoin fell under the $57,000 mark, with a massive crash of 2.77% on Wednesday. The downfall aligns with multiple bearish catalysts in the global and ETF markets. 

As the deteriorating sentiments warn of an extended correction, Bitcoin hangs by a thread above $56,000. Will the correction phase lead to a test of bullish dominance at the $50,000 mark?

Negative Turn For Bitcoin Price

In the daily chart, the Bitcoin price action reveals another bullish failure to surpass the 200-day EMA following the 3.18% jump on Monday. Undermining the bullish recovery, the Bitcoin price dropped by 2.77% on Tuesday and continues the declining trend with a 1.76% intraday drop. It is currently trading at $56,480.

Bitcoin price Chart
Bitcoin price Chart

The bearish trend intensifies as Bitcoin’s price breaches the critical support level of $57,557. The next notable support level is near $53,550, increasing the likelihood of a death cross forming between the 50-day and 200-day EMAs.

Notably, the daily Relative Strength Index (RSI) remains above the 40% threshold, exhibiting a minor bullish divergence. This subtle indication of potential buying interest may suggest that the downward momentum is not entirely one-sided.

Amid $1.05T US Stock Market Loss, Bitcoin Holds Ground

Bitcoin’s latest bear cycle comes from the U.S. stock market, which registered a massive correction. The S&P 500 plummeted 2.1%, while the NASDAQ suffered a steeper 3.2% decline, with over $1.05 trillion in market value evaporating. The Department of Justice’s subpoena against NVIDIA exacerbated the downturn, causing the company’s stock to plummet 10%.

However, compared to previous corrections in U.S. markets, BTC fell by only 2.16% compared to the last correlated correction of 7.16%. Hence, the idea of Bitcoin being a hedge to the stock market might soon materialize.

Meanwhile, the Japanese stock market has also been severely impacted as the effect of the yen carry trade continued to unfold.

Even the Bitcoin ETF market failed to showcase any signs of recovery. Instead, it revealed a 288% million net outflow, the biggest outflow in the past four months. 

All these bearish events unfolded in a single day; the crypto market witnessed $170 million in long position liquidations with the start of panic selling.

Will Bitcoin Hold Above $50,000?

As the bearish sentiments overflow, the panic selling can result in an extended correction in Bitcoin and the crypto market. However, with immediate support near the $53,550 mark, the BTC price can avoid a correction to the $50,000 mark. 

Further, the RSI divergence and the lower price rejection reveal solid underlying demand near the $56,000 level. Hence, the bearish run in Bitcoin to challenge the $50,000 mark seems the worst-case scenario in current situations. 

Arthur Hayes Says Bitcoin Bearish Short-Term, May Touch $50K

Mark Brennan
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Arthur Hayes Says Bitcoin Bearish Short-Term, May Touch $50K

Arthur Hayes has predicted that Bitcoin may hit $50,000 during its choppy run but would rebound in late September.

BitMEX founder Arthur Hayes has flipped bearish on Bitcoin in the short term, predicting it might tend slowly and steadily toward the $50,000 region. He based his speculations on the rising reverse repurchase agreement (RRP), a factor tied to the imminent rate cut from the Federal Reserve.

Hayes stated in a Substack post that if the Fed does not cut interest rates before the September 18 meeting, Bitcoin will continue to fall. He emphasized that Bitcoin has underperformed when the RRP is on the rise. Hence, the upward trajectory of the index has heavily impacted Bitcoin’s price.

For context, the RRP is a transaction where a party sells a security to the counterparty with the agreement of repurchasing it at a higher price in times to come. A desk conducts the RRP, and it is usually a means firms use to source for quick capital or liquidity.

Hayes noted that an altcoin dive will accompany the imminent Bitcoin capitulation. Altcoins have always performed worse than Bitcoin during market downtrends due to their greater volatility, and Hayes sees a repeat when Bitcoin tends towards $50,000.

Buying the Dip

Howbeit, the BitMEX co-founder stated that he would be busy accumulating altcoins at discounted prices during the dip. Hayes noted he would focus on “solid shitcoins” with real value and utility. 

Although Hayes didn’t mention any of the assets he would be buying, it is worth noting that he has endorsed a couple of tokens like Etherna and Pendle in the past. The Crypto Basic reported he had stacked an ample amount of PENDLE during the asset’s bullish run in May.

Meanwhile, Hayes maintained a long-term bullish stance on the crypto market. He noted he was long on Bitcoin in an unleveraged manner, insinuating he held a significant amount of the asset in his portfolio.

A Late September Rebound

The ex-BitMEX CEO insinuated that the choppy Bitcoin trend will be shortlived as he sees a massive rebound late in September. According to him, the market would resume an upward trajectory “once the fiat liquidity taps are predictably ratcheted higher.”

Part of what will propel the market rebound will be the Fed interest rate cut on September 18. Risk assets such as Bitcoin have heavily profited from a reduction in borrowing rates, which encourages investors to spend. Hayes noted that he sees a minimum of 5% to 5.25% Fed funding rate slash.

Per an earlier report, Hayes asserted that the altcoins would surge significantly when Bitcoin reclaims $70,000 and Ethereum climbs to $4,000. He predicted that the bull run would take full effect when this happened.

Crypto Market Suffers $129M in Liquidation as DOJ Subpoenas AI Chip Maker Nvidia 

Lele Jima
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Crypto Market Suffers $129M in Liquidation as DOJ Subpoenas AI Chip Maker Nvidia 

The broader crypto market sees fresh liquidation of $129 million in the past day following reports that the U.S. Department of Justice (DOJ) is close to filing an antitrust lawsuit against Nvidia. 

Bloomberg reported yesterday that the Justice Department issued subpoenas to AI chip maker Nvidia and other companies. Notably, the subpoena is part of the DOJ’s ongoing probe into whether Nvidia violated U.S. antitrust laws.

The investigation focuses on whether Nvidia’s dominance has hindered competition in the AI chip market. According to Bloomberg, sources familiar with the matter, including advocacy groups, claim that Nvidia threatens customers who use its AI chip alongside those manufactured by other companies. 

Probe Escalates 

Previously, the Justice Department had handled the investigations lightly, sending questionnaires to several businesses to obtain necessary evidence.  

However, things escalated recently, as the DOJ issued subpoenas to the AI chip maker and other companies. This indicates that the Justice Department might be closer to charging Nvidia with violating federal antitrust laws.  

Consequently, the escalating investigation triggered a sharp decline in the stock and crypto markets. 

Bitcoin and Ethereum Dip

Bitcoin (BTC) plunged below the $56,000 price territory, reaching $55,673 in the early hours of today, according to CoinMarketCap data.

However, the premier asset rebounded almost immediately, currently trading at $56,405. This reflects a decline of 4.39% in the past day and 4.71% in the weekly timeframe. 

Similarly, Ethereum (ETH) was not spared in the market rout, dropping below the $2,400 level. Priced at $2,375, ETH has witnessed a daily decline of 5.4%. 

$118M Liquidated in 4 Hours as Daily Liquidation Hits $129M

The sharp drop in BTC and ETH prices led to a massive liquidation across the crypto market. Famous blockchain reporter Colin Wu disclosed that $118 million worth of positions were liquidated within four hours. According to Lu, $107 million of this figure were long positions.

At press time, a total of $129 million have been liquidated in the past day, with $114.34 million being long positions. Binance witnessed the most liquidations at $65.37 million, followed by OKX, which saw $31.12 million in liquidation. 

The development comes a day after leading blockchain analytics firm Top 7 ICO reported that $1.01 billion has been liquidated in the crypto market over the past week. 

Ripple CTO Says “I Prefer Using XRP on XRPL” Over RLUSD

Abdulkarim Abdulwahab
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Ripple CTO Says “I Prefer Using XRP on XRPL” Over RLUSD

Ripple CTO David Schwartz has disclosed his preference for using XRP on the XRP Ledger (XRPL) rather than Ripple stablecoin (RLUSD) for payment processes.

Schwartz revealed this view in a recent post on X while responding to community inquiries concerning Ripple’s business pivots. Crypto enthusiast Green Sam sparked the conversation. He lamented Ripple’s direction, particularly its latest shift towards smart contracts, pivot to Ethereum, and pre-IPO stock buyback.

Sam questioned the rationale behind these moves, including Ripple’s decision to support RLUSD on the Ethereum chain. He raised doubts about the effectiveness of liquidity-building efforts on XRPL.

He also questioned the implications of a $1.4 billion buyback before Ripple’s anticipated IPO, suggesting that it might be an attempt to consolidate control or mitigate risks before going public.

Ripple CTO Reacts, “I Prefer Using XRP on XRPL”

Responding to these concerns, David Schwartz clarified that the only connection to Ethereum is the support for RLUSD on its chain. 

Meanwhile, Jungle, an XRP community figure, sought further clarification from Schwartz. He asked whether it was likely that at least half of Ripple’s RLUSD payments would be processed on XRPL. Jungle’s question hinted at concerns about the future role of XRPL in Ripple’s broader payment flow.

In response, Schwartz highlighted that he would prefer to see Ripple use XRP on XRPL rather than rely on RLUSD. He noted that most community members would likely agree that using XRPL for transactions is more desirable.

Schwartz also stressed the benefits of using XRPL, such as saving costs associated with centralized exchanges.

However, Schwartz’s responses did not fully address the concerns of some community members. Franco Cappello, for instance, proposed an alternative approach, asking, “Why not just embrace RLUSD for payments and use XRP as a gas token?” 

Cappello argued that with the introduction of smart contracts, Ripple could develop an overcollateralized stablecoin similar to DAI, which would eliminate counterparty risk and volatility while still leveraging XRP’s strengths.

Other Concerns Over Ripple’s Smart Contracts Pivot

In parallel, another commenter expressed deep concern over introducing smart contracts on XRPL, describing it as a “red herring.” The commenter highlighted that the previous inability to implement smart contracts was attributed to concerns about slowing down payments, but this issue is now irrelevant with RLUSD on Ethereum. 

He worried that this shift could undermine XRP’s value and betray those who supported Ripple during its legal challenges. He suggests that Ripple might be prioritizing its interests over those of the XRP community.

Notably, in a separate trend, Ripple’s CTO has clarified the essence of the strategic move to bring smart contracts to XRPL.

Here’s Why XRP Could Fall to $0.47 if $0.54 Support is Breached

Albert Brown
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Here’s Why XRP Could Fall to $0.47 if $0.54 Support is Breached

XRP has recently faced difficulties in rebounding from its two-week lows, with some analysts anticipating further declines. 

The current XRP price action shows that the $0.54 support level is critical, as noted by pseudonymous analyst “Lord Crypto.” This level, once a major resistance earlier this year, now acts as a crucial support. 

After testing this support multiple times since July, the price has consistently bounced back, reinforcing its significance. On the other hand, the upper resistance zone sits between $0.64 and $0.72, where XRP has struggled to sustain momentum. Additionally, resistance at $0.58 has proven difficult to maintain, signaling challenges for the token in its upward movement.

Potential for Further Declines

Per the analyst, if XRP fails to hold the $0.54 support level, a drop to $0.47 could be on the horizon, as this is the next solid line of defense.

The analyst has expressed concerns about these support levels, especially amid speculation surrounding the SEC’s potential appeal in the Ripple case. The uncertainty around this legal battle continues to weigh heavily on market sentiment, leaving XRP vulnerable to further losses.

XRP Showing Strength Against Bitcoin 

Despite the challenges, XRP has shown some strength against Bitcoin, which plummeted in the past 24 hours. While XRP recorded a 2% decline, Bitcoin dropped by over 4%, reflecting a broader market downturn. 

Screenshot 2024 09 04T095412975
XRPBTC 1D Chart

As of today, XRP is priced at $0.5516, with a 24-hour trading volume exceeding $1.3 billion. However, the uncertainty continues, and market participants are divided, with some expressing optimism for a possible rebound while others remain cautious.

XRP’s Potential to Reach $100

For instance, crypto analyst Zain Haider recently initiated a discussion on X, prompting XRP enthusiasts to consider how the token could reach $100. Grissom’s analysis highlighted the substantial role that Nostro/Vostro accounts could play in driving XRP’s price upward.

These accounts, which banks use to facilitate cross-border transactions, currently hold trillions of dollars in liquidity. Grissom speculated that if these accounts begin to shift towards XRP for liquidity solutions, demand for the token could significantly increase.

This liquidity shift, according to Grissom, would be a crucial factor in driving the price of XRP towards the $100 mark.

Here’s XRP Price if It Equals Tether Market Cap 

Lele Jima
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Here’s XRP Price if It Equals Tether Market Cap 

XRP’s price could register a dramatic surge in the event that its market cap equals that of the world’s largest stablecoin, Tether (USDT). 

Many investors expected the price of XRP to surge above $1 after U.S. District Judge Analisa Torres issued the final judgment in the SEC v. Ripple lawsuit. However, XRP has not made any major moves since the ruling. 

While some blamed XRP’s underperformance on the potential of an SEC appeal, others pointed to the price suppression theory. 

XRP Enthusiasts Remain Confident Despite Its Underperformance 

At the moment, XRP is stagnant around the $0.60 price territory. It is currently priced at $0.6084, with a 24-hour trading volume of $1.19 billion. This represents a drop of 0.81% over the past 24 hours and a Year-to-Date (YTD) decline of 2.5%. Conversely, XRP is up 7.84% in the past week and 0.69% in the monthly charts. 

Despite XRP’s inability to surge to greater heights, some investors and analysts are still confident about its prospects. They believe it could reclaim its position as one of the three biggest cryptocurrencies by market cap. 

For context, XRP was among the three most valuable cryptos in the early days, but it lost this status after rumors emerged that the SEC planned on labeling it a security in 2019. Currently, XRP is the seventh-biggest cryptocurrency, boasting a market cap of $34.03 billion. 

Data from CoinMarketCap shows that Tether (USDT) is now the third-largest cryptocurrency by market cap, with a valuation of $117.860,216,535 ($117.86 billion). Therefore, XRP must surpass USDT’s market cap to reclaim its position as one of the top three biggest cryptocurrencies. 

XRP Price If It Attains Tether Market Cap 

In this article, we analyzed how much XRP would be worth if it captured USDT’s market cap. Considering XRP’s circulating supply of 56,180,094,752 (56.18 billion) tokens remains stable, its price would increase to $2.0978. This would mark a dramatic surge of 244.8% from the current price of $0.6084. 

Meanwhile, XRP’s hypothetical surge to $2.09 is still below the token’s all-time high price of $3.84, registered on January 4, 2018. Nonetheless, the potential rally would take XRP closer to setting a new ATH. 

Ripple Partners With Futureverse to Provide Crypto Asset Custody

Mark Brennan
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Ripple Partners With Futureverse to Provide Crypto Asset Custody

Ripple has announced strategic partnerships in South Korea as it looks to bolster blockchain adoption in the Asia-Pacific region.

One of the partnerships is with South Korea-based AI and Metaverse firm Futureverse. Ripple confirmed it would provide self-custody services for Futureverse, ensuring that customers’ assets are safely received and stored, hence securing and protecting users’ cryptocurrencies.

The Ripple Custody is a transitory storage for digital assets, as Futureverse will mint them on its Otto blockchain. Futureverse intends to provide users with safe, know-your-customer (KYC)-verified access to decentralized finance (DeFi) services.

The South Korea-based AI firm reiterated its adoption of XRPL non-fungible token (NFT) standards, leveraging on the cost-effectiveness and high performance of the XRPL network. The development also includes using XRP as Otto blockchain’s native gas fee token and the XRPL decentralized exchange as its liquidity provider.

Ripple Expands Its Horizon

Futureverse stated that with the crypto custody market tipped to reach $10 billion in the next six years, leveraging Ripple’s scalability and reliability was crucial. The AI firm also noted that it chose Ripple due to its “state-of-the-art governance framework to safeguard a wide array of digital assets.”

Futureverse’s Chief Customer Officer, Jeffrey McDonald, said the company turned to Ripple because of its magnanimous proficiencies and enduring relationship with the payment giant. Notably, Ripple accepts a wide array of cryptocurrencies, including stablecoins. It also remits local fiat to customers in over 80 different markets.

Futureverse and Ripple have a long-standing relationship dating back to 2023. The blockchain payments firm and 10T led a Series A fundraiser for Futureverse in July, which raised $54 million from investors for its metaverse push.

Ripple Announces Other Partnership

Ripple announced other partnerships on Tuesday in its push to spread blockchain adoption in Asia. Specifically, Ripple’s University Blockchain Research Initiative (UBRI) included South Korea’s Yonsei University as its partner. 

Yonsei University becomes its 58th partner and the 12th in Asia. The higher institution will receive grants from Ripple to bolster blockchain adoption and integration among its students. The UBRI would host hackathons and fund an XRPL validator launch in the school.

The research program began in 2018 and has received over $60 million in funding since its inception.

Pro-XRP Lawyer Wins Massachusetts Republican Party Senate Election

Lele Jima
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0
Pro-XRP Lawyer Wins Massachusetts Republican Party Senate Election

Pro-XRP lawyer John Deaton emerges as the winner of the Massachusetts Republican primary election for the U.S. Senate. 

In a tweet today, popular FOX Business journalist Eleanor Terrett called attention to the Associated Press’ early result. At the time of the journalist’s disclosure, Attorney Deaton led significantly over two opponents, Robert Antonellis and Ian Cain. 

Terrett also attached an image from the New York Times, showing the early results of the election. With only 4% of the votes counted at the time, representing 12,526 votes, Deaton led with 8,156 (65.1%) of the votes collated. 

On the other hand, Antonellis was in second place, having recorded 26.7% (3,350) of the votes. Cain was third, with 8.1% of the total votes, representing 1,020. 

Deaton Clinches Ticket 

In a follow-up update, the Associated Press revealed that Deaton has extended his lead to 124,598 votes, with 92% of the votes counted. This represents 64.6% of the collated votes, confirming Deaton as the winner of the election. 

Mass GOP Primary
Mass GOP Primary

Expectedly, XRP community members celebrated Deaton’s victory, characterizing it as a “nice win for crypto.” Attorney Deaton is widely recognized in the crypto industry for his role in the Ripple lawsuit. 

His Support for Crypto 

His involvement in the case played a part in helping Ripple secure a partial victory against the SEC, especially in the context of XRP programmatic sales, which were deemed non-investment contracts. Notably, the Judge backed her decision by citing the 3,000 XRP Holders’ Affidavits- an initiative led by Deaton. 

Deaton also extended his legal expertise beyond the Ripple case to other crypto-related lawsuits, such as LBRY and Coinbase. He has also been vocal in demanding clear crypto regulations that could foster the industry’s growth.  

A Challenging Task Ahead

Following Deaton’s impressive performance, he will face anti-crypto Senator Elizabeth Warren in the November general elections. 

Unlike the primaries, many believe Deaton faces a major challenge in the general elections against Warren, a veteran politician with over a decade of experience. 

Acknowledging this challenge, Attorney Deaton said the next phase of his campaign, which begins today, will focus on holding Warren accountable for her failures on issues like healthcare, the border, and the unaffordable cost of family support. 

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