Crypto
UAE cryptocurrency investors realised gains worth $204m in 2023
Investors in the UAE realised capital gains worth $204 million from their cryptocurrency investments last year, according to a new report by blockchain data company Chainalysis.
The global cryptocurrency investor community achieved total gains worth $37.6 billion in 2023, it said.
While this is much smaller than the $159.7 billion in gains made during the 2021 bull market, it represents a significant recovery from 2022, which recorded estimated losses of $127.1 billion, the report found.
With the crypto community in Saudi Arabia cashing out gains of $351 million, the UAE placed second in the GCC in terms of absolute gains realised by investors, Chainalysis said.
None of the other GCC countries ranked among the companyâs list of top 50 countries globally.
Bitcoin was identified as the cryptocurrency of choice for UAE investors. This asset class accounted for 70 per cent of total gains made by UAE investors last year.
Ethereum was the second most popular cryptocurrency for UAE investors, delivering 24 per cent of the gains that the countryâs investors realised.
XRP, the native token of the Ripple network, which placed third accounted for only 3 per cent of the gains on UAE investorsâ deposits through 2023.
âThe outsize popularity of Bitcoin and Ethereum indicates a level of maturity among UAE investors,â said Kim Grauer, director of research at Chainalysis.
âThe community is clearly backing well-established digital assets with steady and proven performance, rather than backing more speculative cryptocurrencies. This isnât surprising given that we have also observed that institutional investments by and large account for the greatest proportion of crypto transactions in the UAE.â
Bitcoin, the worldâs largest cryptocurrency by market capitalisation, surged past $72,100 to reach a record high on March 11, driven by the UKâs financial services regulator opening the door to applications for crypto asset-backed exchange-traded notes (cETNs) to trade on the London Stock Exchange.
On March 5, Bitcoin hit $69,202, eclipsing its record of $68,991.85 set in November 2021.
The cryptocurrency was trading at $69,080.64 at 1.18pm UAE time on Saturday.
The recent cryptocurrency bull run has been fuelled by strong demand for US-listed spot Bitcoin ETFs, which the US Securities and Exchange Commission approved in January.
The approval marked a pivotal moment for the cryptocurrency sector, clearing the way for a regulated path for institutional and retail investor participation in the cryptocurrency asset class â and signalling the end of the sector’s âWild Westâ era.
The SEC approved 11 spot Bitcoin ETFs offered by major asset management companies including BlackRock, VanEck, Fidelity, Franklin Templeton and Cathie Woodâs ARC.
The expected Bitcoin halving next month, when the amount paid to miners is slashed in a programmed move every four years to reduce supply and maintain its scarcity value, is adding to the current rally.
âOver 90 per cent of Bitcoinâs total capped supply is already in circulation, and with the imminent halving, the daily addition of new Bitcoins will again halve,â said Matt Carstens, director of product experience at neo-broker amana.
âWith markets already front-running and institutional money flooding in, coupled with the uncertainty of global debt, this halving promises to redefine cryptoâs trajectory, albeit with potential sharp corrections along the way.â
Meanwhile, the Chainalysis report showed that cryptocurrency investors in India, the Philippines, Pakistan and Bangladesh collectively realised gains of $2.07 billion, placing sixth, 20th, 25th, and 49th respectively on the global top 50 list.
âWhile past performance shouldnât be taken as indication of potential future outcomes, the outlook is encouraging,â Ms Grauer said.
âSo far, the positive trends of 2023 have carried over into 2024, with notable crypto assets like Bitcoin achieving all-time highs in the wake of Bitcoin ETF approvals and increased institutional adoption.
âIf these trends continue, we may see gains more in line with those we saw in 2021.â
Updated: March 16, 2024, 9:44 AM
Crypto
[Analysis] “Cryptocurrency Holders Surge Over the Past Two Years”
Image=Santiment
It has been observed that the number of cryptocurrency holders has surged over the past two years.
On the 23rd (local time), the on-chain analysis platform Santiment reported on X (formerly Twitter) that “the number of cryptocurrency holders has significantly increased over the past two years. The number of non-empty wallets for the top 4 cryptocurrencies by market capitalization has generally increased.”
Specifically, Bitcoin (BTC) has 54.7 million wallets (a 27% increase), Ethereum (ETH) 134.9 million wallets (a 47% increase), Tether (USDT) 657 million wallets (a 66% increase), and Ripple 575 million wallets (a 28% increase).
Crypto
Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com
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The global logistics industry is undergoing a seismic shift, driven by the integration of blockchain technology and cryptocurrency.
These innovations promise to enhance transparency, efficiency, and security across the supply chain. From tracking shipments to streamlining cross-border payments, the synergy between blockchain and cryptocurrency is setting new benchmarks for the logistics sector.
1. Blockchain’s Role in Logistics
Blockchain technology, essentially a decentralized ledger system, enables secure and transparent recording of transactions. For logistics, this translates into the ability to track goods in real-time, authenticate the origin of products, and mitigate fraud. Key benefits include:
- Enhanced Traceability: Every transaction, from the manufacturing stage to delivery, is recorded on an immutable ledger. This ensures that stakeholders have a comprehensive view of the supply chain.
- Reduced Paperwork: By digitizing documents such as bills of lading and certificates of origin, blockchain eliminates the inefficiencies of manual processes.
- Improved Trust: Smart contracts, self-executing agreements coded on the blockchain, reduce disputes and enhance trust between parties.
2. Cryptocurrency in Cross-Border Transactions
Traditional cross-border payments in logistics are often marred by high fees, long processing times, and currency exchange risks. Cryptocurrencies, like Bitcoin and stablecoins, are addressing these challenges by:
- Lowering Transaction Costs: Cryptocurrency transactions bypass intermediaries, significantly reducing fees.
- Speeding Up Payments: Transactions settle in minutes, eliminating delays common with traditional banking systems.
- Enhancing Financial Inclusion: For businesses in emerging markets, cryptocurrencies provide access to global trade without reliance on conventional banking infrastructure.
3. Use Cases Transforming the Sector
Several real-world applications highlight the impact of blockchain and cryptocurrency in logistics:
- Walmart’s Blockchain Initiative: Walmart leverages blockchain to track the origin of produce, ensuring food safety and traceability within its supply chain.
- Maersk’s TradeLens Platform: Developed in collaboration with IBM, TradeLens uses blockchain to digitize and streamline global shipping documentation, reducing inefficiencies.
- Cryptocurrency-Powered Freight Payments: Startups like Slync.io enable shippers to pay carriers using digital currencies, enhancing payment speed and reliability.
4. Challenges to Adoption
Despite its potential, the adoption of blockchain and cryptocurrency in logistics is not without hurdles:
- Regulatory Ambiguities: The legal status of cryptocurrencies varies across countries, complicating implementation.
- Scalability Concerns: Processing thousands of transactions per second remains a challenge for blockchain networks.
- Skill Gaps: The logistics workforce often lacks the technical expertise to deploy and manage blockchain systems.
5. The Road Ahead
The integration of blockchain and cryptocurrency in logistics is still in its nascent stages but holds immense promise.
Industry players are investing in pilot projects to explore scalability and operational viability. The convergence of these technologies with artificial intelligence and IoT will further revolutionize the sector, enabling predictive analytics, autonomous supply chains, and more.
Conclusion
Blockchain and cryptocurrency are not just buzzwords but transformative tools reshaping the logistics landscape.
By fostering transparency, reducing costs, and expediting processes, these technologies are addressing long-standing inefficiencies in the supply chain.
As adoption accelerates, businesses that embrace this revolution stand to gain a significant competitive edge in an increasingly digital and globalized economy.
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Crypto
My Top Cryptocurrency to Buy Right Now (Hint: It's Not Bitcoin) | The Motley Fool
The performance of Bitcoin (BTC -0.53%) this year has been nothing short of extraordinary. It’s now up about 46% since the election on Nov. 5, and 146% year to date. Best of all, Bitcoin recently broke through the $100,000 price level to hit another all-time high just north of $108,000.
But what if I told you that there is another top cryptocurrency that is up more than 120% since the election, and 430% year to date? And that this cryptocurrency also just set a new all-time high? That cryptocurrency is Sui (SUI -3.69%), which now ranks 14th among all cryptocurrencies with a $13 billion market cap.
What is Sui and why haven’t I heard of it before?
If you’ve never heard of Sui, that’s understandable. The cryptocurrency only launched in May 2023, just as the market was emerging from the crypto winter of 2022. So, in many ways, its launch flew under the radar of investors. There were bigger issues to consider. The industry was still coping with the aftermath of the collapse and scandal of crypto exchange FTX in November 2022, and nobody was very interested in hearing about another new cryptocurrency launch.
But fast-forward to August 2024. That’s when 21Shares — the company that partnered with Cathie Wood’s Ark Invest on the launch of spot exchange-traded funds (ETFs) for Bitcoin and Ethereum (ETH -0.79%) — released a research report on Sui, detailing all of its unique characteristics. For example, it described how a new technical upgrade suddenly made Sui faster than any other top blockchain by a substantial margin. It pointed out how Sui was rapidly growing in terms of total value locked (TVL), which is a key metric showing the relative strength of a particular blockchain.
The title of the report (“Is Sui a Solana (SOL -0.00%) Killer?”) was very provocative, at least for crypto investors. It suggested that Sui had the technological chops to take on Solana, which now ranks as the fifth-largest cryptocurrency. For several years now, Solana has been positioned as the next Ethereum, so Sui being tabbed as a potential Solana killer is a big deal. In fact, 21Shares suggested that there might be a $68 billion market opportunity for Sui if it was able to take on Solana and win.
How high can Sui go in 2025?
My primary concern right now with Sui is that it may be overheating. Just like Bitcoin, it is smashing through all-time high after all-time high. Right now, Sui is trading at about $4.50 after briefly testing the $5 price level. From the perspective of crypto traders, $5 presents the same psychological price barrier for Sui that $100,000 did for Bitcoin. It took Bitcoin a while to break through the $100,000 level, so Sui may not be able to break through the $5 price level by the end of this year.
But, in 2025, watch out. Just take a look at this comparison chart of Bitcoin and Sui since the presidential election. That leads me to think that the market is very bullish on Sui’s prospects under the Trump administration.
Moreover, consider the trading volume that Sui is now seeing on Coinbase Global (COIN 1.75%). Sui has become one of the 10 most popular cryptocurrencies on the platform in terms of 24-hour trading activity. Granted, the trading volume in Sui is nowhere near that of Bitcoin or Ethereum. But there’s more activity in Sui than in popular cryptocurrencies such as Chainlink, Litecoin, Cardano, Shiba Inu, and Avalanche.
Best of all, Sui has a major new product launch coming in 2025. It’s a $599 handheld gaming device that is currently available for pre-order online. If that product launch is a success, then it could be off to the races for Sui. It could easily double in price to hit the $10 price level.
This cryptocurrency could soar even higher if it ever realizes its full potential as the next Ethereum. Imagine if you had invested in Ethereum just 18 months after its launch. Most likely, you’d be a crypto millionaire by now. In December 2016, Ethereum was trading around $5, which is roughly where Sui is trading right now. Today, Ethereum trades for about $3,400.
That said, I can’t emphasize enough how speculative Sui is. It is still a baby in crypto terms. It has only been around for 18 months, and it can be difficult to get good data and reliable information about it. So, do your due diligence before investing in Sui, and keep your expectations in check. An investment opportunity like Ethereum might only come around once in a lifetime, so it’s asking a lot for it to happen with Sui as well.
Dominic Basulto has positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, SUI, and Solana. The Motley Fool has a disclosure policy.
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