NBA legend Scottie Pippen has reignited his interest in the crypto space by engaging with his followers on social media about Ethereum and Solana. Ethereum’s supply dynamics have raised concerns among analysts, potentially impacting its price following the potential launch of multiple spot Ethereum exchange-traded funds (ETFs). Meanwhile, Galaxy Digital has made a strategic acquisition of CryptoManufaktur LLC, enhancing its Ethereum staking capabilities and expanding its blockchain infrastructure.
Scottie Pippen’s Crypto Resurgence: The NBA Legend Explores Ethereum and Solana
In an era where sports legends are increasingly venturing into the world of cryptocurrencies, American basketball star Scottie Pippen has once again demonstrated his interest in digital assets. Widely regarded as one of the greatest small forwards in NBA history, Pippen recently engaged his followers on social media with a question that has sparked widespread interest: Should he invest in Ethereum or Solana?
Pippen’s question generated an immediate buzz, attracting responses from both fans and industry experts. Among those who weighed in was Mert Mumtaz, CEO of Helius, who highlighted the unique merits of both cryptocurrencies. Ethereum, known for its pioneering smart contract functionality, has long been a cornerstone of decentralized finance (DeFi) and non-fungible tokens (NFTs). Solana, on the other hand, has gained a reputation for its high-speed transactions and low fees, making it a popular choice for developers and investors seeking scalable blockchain solutions.
As expected, Pippen’s query also opened the floodgates for crypto enthusiasts to pitch their own favorite coins, showcasing the diverse and passionate community within the crypto space.
This is not Pippen’s first foray into the world of digital assets. The six-time NBA champion has previously partnered with Web3 company Orange Comet to launch his own collection of NFTs. The collection’s success was nothing short of remarkable, selling out in less than two minutes. Pippen expressed his gratitude in a tweet, stating he was ”humbled” by the rapid sellout, which notably surpassed the record set by iconic actor Anthony Hopkins’ NFT collection that sold out in seven minutes.
Pippen’s successful NFT venture demonstrates his ability to leverage his brand and fame within the rapidly evolving world of blockchain technology. The record-breaking sale not only showed the growing interest in NFTs but also highlighted Pippen’s influence in the crypto community.
Beyond the Court: Pippen’s Diverse Legacy
While Pippen’s basketball career is filled with accolades, including six NBA championships and an Olympic gold medal, his ventures off the court have also garnered significant attention. Despite his reluctance to tip at restaurants, a quirk that has become part of his public persona, Pippen has remained a prominent figure in the media, partly due to his ongoing feud with former Chicago Bulls teammate Michael Jordan.
Last year, Pippen made headlines with a controversial statement during a podcast appearance, calling Jordan a ”horrible player.” This remark added fuel to the long-standing tension between the two basketball legends. Interestingly, Jordan himself has also shown interest in the crypto world. In 2021, he launched HEIR, a Solana-based Web3 platform designed for fan engagement. The following year, HEIR introduced its first NFT collection, ”6 Rings,” inspired by the Chicago Bulls’ six NBA championships in the 1990s.
The involvement of high-profile athletes like Pippen and Jordan in the crypto space signifies a broader trend of celebrities embracing digital assets. Their endorsements and active participation bring mainstream attention to cryptocurrencies, driving adoption and innovation within the industry.
For Pippen, the renewed interest in Ethereum and Solana signifies more than just a casual curiosity; it represents a strategic engagement with an industry that holds the potential for significant financial and technological growth. As the crypto market continues to evolve, the participation of influential figures like Pippen could play a crucial role in shaping its future.
Potential Decline in Ethereum’s Price Amid Rising Supply and Spot ETF Launch
The price of Ethereum (ETH) may face downward pressure as the initial excitement surrounding the launch of spot Ethereum ETFs subsides, particularly if the cryptocurrency’s supply continues to increase at the current rate. This forecast comes from a recent analysis by Benjamin Cowen, a prominent crypto trader and founder of Into The Cryptoverse.
In a July 19 post on X, Cowen highlighted the potential implications of Ethereum’s supply dynamics on its price. He pointed out that if Ethereum’s supply keeps increasing by approximately 60,000 ETH per month, as it has since April 2024, the total supply could revert to levels seen before the highly anticipated Merge. The Merge, which occurred in September 2022, transitioned Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, making ETH a deflationary asset. By April 2024, the supply had decreased by roughly 455,000 ETH.
However, the trend has reversed since then, with the supply growing by about 150,000 ETH. Cowen’s analysis suggests that if this rate of increase continues, the supply will reach pre-Merge levels by December 2024. “If the supply of ETH keeps increasing at 60,000 ETH per month, then we will see the supply revert to what it was back at the merge,” Cowen stated.
Cowen also drew parallels to historical market behavior, speculating that Ethereum’s final capitulation against Bitcoin (ETH/BTC) might not occur until September 2024. He theorized that this timeline could align with the waning novelty of the spot Ethereum ETFs relative to Bitcoin.
While Cowen believes that Ethereum’s price will likely be higher in 1.5 years than its current value, he cautioned that there is a “decent chance” of a decline within the next three to six months. This potential drop could be influenced by the increasing supply and the fading excitement around the new ETFs.
Onchain Analysis and Supply Dynamics
Adding to the discussion, onchain analyst Leon Waidmann highlighted a ”supply crisis” facing Ethereum in a July 16 post on X. He pointed out that exchange balances have dropped to 10.2%, while 39.3% of ETH is locked in smart contracts. This scenario suggests a tighter supply side than many investors might realize. “Most investors don’t realize how tight the ETH supply side is,” Waidmann stated.
The impending launch of five spot Ethereum ETFs on the Chicago Board Options Exchange (CBOE) is a significant development for the cryptocurrency. Scheduled to begin trading on July 23, these ETFs are expected to attract considerable attention from investors. The ETFs include the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF. The United States Securities and Exchange Commission (SEC) approved rule changes on May 23, permitting the listing of these spot Ether ETFs.
The approval and subsequent trading of these ETFs mark a pivotal moment for Ethereum, potentially leading to increased institutional investment and greater mainstream acceptance. However, the broader market dynamics and supply concerns raised by analysts like Cowen and Waidmann cannot be ignored.
Kaiko, a notable analytics firm, recently suggested that Ethereum could outperform Bitcoin following the spot ETF launch. This optimism stems from the expectation that the ETFs will drive demand and price appreciation for ETH. However, this bullish outlook must be balanced against the potential supply increases and the possible market corrections forecasted by analysts.
Galaxy Digital Expands Ethereum Staking Capabilities with Acquisition of CryptoManufaktur LLC
In a strategic move to bolster its blockchain infrastructure and Ethereum staking capabilities, Galaxy Digital, the publicly traded crypto firm led by Michael Novogratz, has acquired all the assets of CryptoManufaktur LLC (CMF). This acquisition, announced in a recent press release, marks a significant expansion for Galaxy Digital in the blockchain staking space.
While the financial terms of the deal were not disclosed, a spokesperson from Galaxy Digital confirmed that the acquisition includes the operations and engineering teams of CMF, as well as the assets associated with those teams. This transaction is set to increase Galaxy Digital’s serviced assets under stake by approximately 43%.
CMF’s founder, Thorsten Behrens, will join Galaxy’s blockchain infrastructure team along with his three-person engineering team. This team is known for providing staking and blockchain validator services to qualified investors, protocols, and digital-asset platforms. The integration of CMF’s expertise and assets is expected to significantly enhance Galaxy’s technical capabilities and support infrastructure.
Founded in 2020, CMF initially focused on building infrastructure for the blockchain oracle project Chainlink. Over time, the company expanded its operations to include automated proof-of-stake node deployment infrastructure on Ethereum. The acquisition brings about $1 billion of Ethereum assets under stake into Galaxy’s portfolio, raising the firm’s total staked assets to $3.3 billion.
Strategic Expansion
Galaxy Digital’s acquisition of CMF is a clear indication of the company’s commitment to expanding its footprint in the blockchain infrastructure sector. The firm, which has traditionally been known for its crypto trading and investment management services, is now making significant inroads into providing enterprise-grade technical expertise and support to the digital-asset ecosystem.
Novogratz, the CEO of Galaxy Digital, is a prominent figure in the crypto industry, often featured on business TV networks like CNBC due to his extensive background on Wall Street. Novogratz has served as an executive at Goldman Sachs and the hedge fund Fortress Investment Group. His leadership continues to drive Galaxy Digital’s strategic initiatives, including this latest acquisition.
Zane Glauber, head of Galaxy’s blockchain infrastructure team, emphasized the importance of this acquisition in the press release. ”Galaxy is rapidly expanding its blockchain infrastructure and staking capabilities and capacity to provide enterprise-grade technical expertise and support to strategic corners of the digital-asset ecosystem,” Glauber stated. ”Our acquisition of CMF is an important milestone that significantly enhances our position as a leading technical partner to protocols and builders.”
The acquisition of CMF comes at a time when the crypto industry is witnessing rapid growth and increased institutional interest. Staking, in particular, has emerged as a crucial component of the Ethereum ecosystem following its transition to a proof-of-stake consensus model. By expanding its staking capabilities, Galaxy Digital is positioning itself to capitalize on the growing demand for secure and reliable staking services.
This move also reflects a broader trend of consolidation within the crypto industry, as established firms acquire specialized startups to enhance their service offerings and technical capabilities. For Galaxy Digital, integrating CMF’s assets and expertise represents a strategic enhancement of its blockchain infrastructure, allowing it to offer more robust services to its clients.
This article was originally Posted on Coinpaper.com
