Daily Flash | SEC Gensler Stressed More Robust Enforcement On Crypto, Bitcoin Rallied to $23,800 while RSI Implies More Room For Growth

Today's Headline - Ethereum Staking Service Lido Announces Layer-Two Expansion

According to a blog post by crypto staking service provider Lido Finance, the service is planning to provide staked Ether (stETH) support across the ecosystem of Ethereum Layer two (L2) networks.

The Lido team stated that once the fully-fledged L2 staking support is available, it will initially begin with L2 powerhouses Arbitrum and Optimism before branching out to additional L2s that have enough "demonstrated economic activity."

The blog post read,

“There are several types of L2s. We believe that in the future, a large portion (if not a majority) of economic activity and transaction volume will migrate to both general use and purpose-specific Layer 2 networks. Each of these networks will benefit from or need staking solutions to support their users’ economic activities and ensure that all users of Ethereum ecosystem networks have the ability to participate in securing Ethereum.”

Chart of the Day - Bitcoin: aSOPR (Adjusted Spent Output Profit Ratio) on 14-day SMA

As of this writing,

Bitcoin (BTC) is changing hands at around $23,278, up 5.2% in the past 24 hours,
while Ether (ETH) has slowed down quite a bit and is trading at $1,538, or up 0.81% during the same period.
Major altcoins such as Cardano (ADA), Avalanche (AVAX), and Cosmos (ATOM) have seen gains ranging from 6% - 9%.

Notable gainers include:
Flow (FLOW) at $2.07 (+23.5%),
Waves (WAVES) at $6.3 (+16.9%),
dYdX (DYDX) at $2.38 (+16.5%),
Lido DAO (LDO) at $1.61 (+11.9%).

On Tuesday, Bitcoin ascended past the $23,000 threshold, reaching over $23,800 at one point, which is the highest point since June 14th.

Yet, Bitcoin's performance seemed somewhat lacking when compared to Ether, the token of the Ethereum blockchain, which has ascended past 50% over the past week as investors anticipate its September Merge. Ether's options market turned upward on Monday, showing a bias for strength for the first time in over six months.

The proposed date of the Merge is September 19th, as Ethereum developer Tim Beiko announced during an open developer’s call for the network to finally switch from PoW (Proof-of-Work) protocol, an energy-intensive way to secure blockchains, to the more environmentally friendly PoS (Proof-of-Stake) protocol.

From a technical perspective, Bitcoin’s Tuesday’s increase represents the second consecutive day of higher prices and the sixth day of higher prices over the past week. The average volume also appeared to be the highest in the past 20 days.

During the past month, the Relative Strength Index for Bitcoin has increased to 61.58 from a level of 20.36, which implies the upside isn’t over. (A level of 30 or below implies oversold conditions, while levels of 70 or above indicate overbought conditions.)

For Ether, the previous monthly resistance at $1,440 has now become a critical support zone, which coincides with the 23% Fibonacci Level (measured from the high point on April 3rd).

Influencer of the Day - SEC’s Gary Gensler Sees Plenty of ‘Noncompliance’ Across Crypto Industry

On Tuesday, SEC Chair Gary Gensler spoke out about how the broader cryptocurrency industry contains “a lot of noncompliance” and the U.S. Securities and Exchange Commission (SEC) is continuing to develop its regulatory framework.

He added that many crypto tokens have attributes of being promotional and raising money from the public and promised the SEC will “continue to bring robust enforcement actions.”

He stressed that the SEC will do what it can to the best of its ability to provide the necessary regulations and that the SEC already maintains “a lot of laws on the books that have been there for decades.”

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Staking Company Figment Will Support MEV After Ethereum Merge

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Final Fantasy Maker Square Enix Backs Bitcoin Gaming Startup Zebedee in $35M Round

GameStop’s NFT Marketplace opened to $7.2 million in weekly sales volume

Crypto Friendly Bank Silvergate's Q2 Net Income Jumps 85%, Shares Spike

FBI Seizes $500K in Crypto and Ransom Payments From North Korean Hackers

SEC Enforcement Head Asks Congress for More Resources to Tackle Crypto Issues

Author: Gate.io Researcher Peter L.
This article represents only the researcher's views and does not constitute any investment advice. Gate.io reserves all rights to this article.
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