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Published on: Blog Posts | ChainMyne

Scaling, Regulation. What is next?

Discussions regarding crypto regulation are circulating through the news cycle once more and its release is often timed during dips. This week, we saw articles referencing audits on terrorist activities funded through crypto and governing bodies that believe its citizens must be protected from themselves.

While regulation is viewed negatively by the casual trader, traditional investors view it as a sign of maturity. Either way, there is no avoiding it. At this year’s Consensus event, there was a panel on regulation with some interesting highlights and one particular quote stood out:

However, this recent push on crypto regulation has not been able to continue the downtrend as many alts have begun to climb. Many tokens have seen over 25% increases while one token worth mentioning is Matic. Matic has neared its all-time high following a 50% pump after Mark Cuban’s endorsement.

After the dust settled over last week’s dramatic crash, it would be wise to follow institutional players. “Over-the-counter (OTC) desks have also seen substantial outflows over the past two weeks, signifying dip-demand from institutional investors.” 

Glassnode charts have reported that Grayscale holdings are stable:

'Purpose Bitcoin ETF' holdings have bought BTC:

Meanwhile, 'The Bitcoin Fund' (QBTC) Holdings have sold 100 BTC, bringing their total from 23,560 BTC to 23,460 BTC:

Coin inflows to exchanges are a selling signal which represents a bearish signal and coin outflows are a bullish sign for long-term holders moving assets into self custody. Recycled FUD around China regulations and ESG concerns left Bitcoin floating sideways over the past week. Net inflows to exchanges rose to a 14 month high on May 17 which triggered the double crash. Prior to this, we saw consistent outflows from March 2020 to April 2021 that drove the market from a $5K to $60K high this year with 615,000 BTC leaving exchanges.

The seven-day average of net bitcoin inflows to exchanges turned negative for the first time since April 22 as shown below:

We are indeed at a pivotal spot and the market can certainly go lower, however, we must assess the field in which we are operating. Other than the fact that DeFi has an alluring service, there is a new catalyst that we have previously discussed, scaling Ethereum. Today, we are watching L2’s unveil. As mentioned above, Matic has proven to be very popular, migrating over a big-time DEX player: SushiSwap. While FTM, which was mentioned in the link to our previous article, ‘The race to scale ethereum,’ has shown great promise. Its token price has reflected that too. Arbitrum, a Layer 2 solution powered by ChainLink, will go live on Ethereum mainnet this weekend. Although Arbitrum does not have a native token, it will assist in one of the biggest migrations having already confirmed Uniswaps V3 on Arbitrum’s L2.

Here at ChainMyne, we are ready to help first-time buyers enter the market through a safe exchange along with long-term investors who are looking for reliable service. As a proud Canadian exchange, ChainMyne is building towards a new future of financial independence, transparency, trust and accessibility. Start trading with ChainMyne today and experience for yourself how we provide our clients with the best-in-class customer service, a tailored personalized experience, and easy access to building wealth … all through a secure and reliable platform! 

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