Building Blocks #32
Your route to web3 alpha in the MENA region. Whether you’re a seasoned HODLer or just getting into crypto - we’ve got something for everyone to keep you ahead of the curve. By the community, for the community - Building Blocks.
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Birds Eye View (vs Last 7 Days)
💵 Overall Crypto Market Cap: $3.23 Trillion (+5%)
🔶 BTC Dominance: 54.94% (-2.06 PPT)
💵 Price Snapshot:
🟠 Bitcoin: $93328 (+0.28%)
🔵 Ethereum: $3417 (+9.38%)
🟣 Solana: $233 (-1.84%)
🟡 BNB: $620 (+0.9%)
On-Chain Data Suggests Bitcoin has a 50-50 chance of reaching $100K by Year-End
A substantial portion of Bitcoin options investors anticipate prices reaching six figures before 2024 ends, with select traders predicting values up to $150,000 despite recent declines to $90,000, blockchain data indicates.
"The probability of BTC crossing $100,000 has increased to 45% compared to 34% last week, with a new 4% chance of breaking $150,000," stated onchain options DeFi protocol creator Nick Forster in his November 26 market analysis.
Forster noted that the robust demand for Bitcoin options, especially call options predicting price increases, "demonstrates market participants' strong interest in both upside opportunities and downside protection."
Derive statistics reveal that 41.3% of traded contracts were calls, while 38.3% were puts anticipating Bitcoin declines with "minimal selling activity." These contracts provide holders the right, but no obligation, to buy (call option) or sell (put option) Bitcoin before expiration at a specified price (strike price).
Currently, Bitcoin trades at $92,680, showing a 7.02% decline from its recent peak near $100,000, which reached $99,541.
The analysis suggests Bitcoin has a 68% likelihood of either falling to $81,493 or climbing to $115,579 by 2024's end. Additionally, there's just a 5% chance of dropping under $70,000 to $68,429 or reaching $137,645.
Nevertheless, several experts maintain that deeper corrections remain possible.
CryptoQuant's CEO and founder Ki Young Ju mentioned in a November 26 X post that "even during parabolic bull markets, Bitcoin can experience -30% corrections."
Ju emphasized that "these corrections occurred repeatedly" in the 2021 cycle when Bitcoin moved from $17,000 to $64,000.
"This isn't predicting a correction — simply manage risk and avoid panic selling at temporary lows. We're in bullish territory," Ju noted.
Simultaneously, respected crypto analyst PlanC expresses satisfaction with Bitcoin's "consolidation phase in the 90s."
"Evidence increasingly suggests we might experience extended consolidation in the 90s," PlanC observed in a November 26 X post.
"Should this occur, it would represent the optimal scenario for sustaining this bull market's momentum," he concluded.
Base sees record 106 TPS as Total Value Locked (TVL) crosses $10B
Data reveals that approximately half of Bitcoin options traders are anticipating prices to exceed $100,000 by late 2024, with some optimistic predictions reaching $150,000, despite recent price corrections to $90,000.
"The probability of Bitcoin crossing the $100,000 threshold has increased substantially to 45% compared to 34% last week, while chances of breaching $150,000 now stand at 4%," according to Nick Forster, founder of an onchain options DeFi protocol, in his November 26 market analysis.
Forster emphasized that the robust demand for Bitcoin options, especially call options predicting price increases, "indicates strong market confidence in both upward potential and downside protection."
Derive data shows that call options comprised 41.3% of traded contracts, while put options betting on price decreases made up 38.3%, with notably few sellers in the market. These contracts provide buyers the right, but not the obligation, to either purchase (call option) or sell (put option) Bitcoin at a specified price (strike price) before or on the expiration date.
Currently, Bitcoin trades at $92,680, showing a 7.02% decline from its recent peak of $99,541, as reported by CoinMarketCap data.
Statistical analysis suggests a 68% probability that Bitcoin will either retrace to $81,493 or climb to $115,579 by the end of 2024. The likelihood of prices falling below $70,000 to $68,429 or surging to $137,645 remains at just 5%.
Nevertheless, some market experts haven't dismissed the possibility of more significant corrections.
In a November 26 X post, Ki Young Ju, CEO and founder of CryptoQuant, noted that "even during a parabolic bull run, Bitcoin can experience -30% pullbacks."
Ju referenced similar corrections during the 2021 bull cycle when Bitcoin rallied from $17,000 to $64,000.
"This observation isn't meant to predict a correction — rather, it's advice to manage risk and avoid panic-selling during local price bottoms. We're currently in a bull market," Ju clarified.
Concurrently, respected crypto analyst PlanC expressed satisfaction with Bitcoin's current "consolidation phase in the 90s."
"The consolidation in the $90,000 range could be more prolonged than initially expected," PlanC elaborated in his November 26 X post.
"Such a consolidation period would actually strengthen the foundation of this bull market's longevity," he further explained.
According to L2BEAT data, Base's Total Value Locked (TVL) has surpassed $10.7 billion, following its breakthrough of the $10 billion threshold on November 15. This achievement positions Base as the second-largest Ethereum layer 2 platform by TVL, behind only Arbitrum One's $18.3 billion, after surpassing OP Mainnet for the runner-up position in June.
The cumulative value locked across Ethereum layer-2 solutions has now reached $49.3 billion, as reported by L2BEAT.
Base's increasing transaction throughput emerges amid broader competition among Ethereum layer 2s to rival Solana's renowned processing speed.
Among these competitors, Starknet has announced ambitious plans to quadruple its transaction processing speed to exceed 1,000 TPS, while simultaneously reducing fees by 80% within the next quarter, as confirmed by StarkWare's CEO Eli Ben Sasson in a recent interview.
Base recently achieved a significant milestone of 1 billion total transactions, driven largely by the surge in memecoin trading activity during the current bull market.
However, Base's growing popularity in the memecoin sector has attracted malicious actors, resulting in a concerning 1,800% increase in phishing-related theft from January through March.
In a move toward greater decentralization, Base implemented fault proof mechanisms in late October, marking a crucial step in Coinbase's strategic roadmap to progressively decentralize their Ethereum layer 2 solution.
"Fault proofs represent a critical milestone in Base's evolution, facilitating the transition from Stage 0's complete oversight ('full training wheels') to Stage 1's reduced supervision ('limited training wheels')," Base explained.
The Five projects that scored the top spot in the Dubai DMCC Web3 hackathon
DMCC and Bybit's Web3 Unleashed #2 hackathon concludes with five innovative projects claiming the $160,000 grand prize.
Hackathons serve as catalysts for creative minds to collaborate and pioneer new solutions, with Dubai establishing itself as a fertile ground for Web3 innovation. The emirate's progressive regulations, key collaborations, and substantial investments in emerging technologies have successfully drawn leading innovators and industry pioneers globally.
Spearheading this innovative wave are the Dubai Multi Commodities Centre (DMCC) and prominent cryptocurrency exchange Bybit, who recently wrapped up their second iteration of the Web3 Unleashed hackathon.
The Web3 Unleashed #2 event, hosted in Dubai on Nov. 20, saw 15 finalist teams competing to develop innovative solutions for real-world challenges. The competition culminated with five outstanding projects securing their portions of the $160,000 prize pool.
Participants demonstrated innovative solutions across various domains, including artificial intelligence, Web3 infrastructure, decentralized physical infrastructure networks (DePIN), digital identity, and zero-knowledge protocols. The judging panel comprised industry veterans including Bybit's Gerik Wang, CV VC's Mathias Ruch, Hacken's Dyma Budorin, Blockchain for Good Alliance's Daniel Zou, DMCC Crypto Centre's Zaher El Orm, and DWF Labs' Alessia Baumgartner. Projects were evaluated based on their business viability, innovation, and potential impact.
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From numerous submissions and 15 finalists, five exceptional projects emerged as winners:.
The hackathon, backed by industry giants including DWF Labs, Injective, 1inch, and CV VC, provided an exceptional platform for innovative projects to gain exposure while making substantial contributions to Web3 advancement.
The event culminated in a vibrant afterparty that brought together participants, investors, and industry leaders, creating an ideal environment for networking, idea exchange, and partnership development.
Ahmed Bin Sulayem, DMCC's CEO, emphasized the significance of the DMCC-Bybit hackathon in Dubai's innovation ecosystem, stating:
Web3 Unleashed #2 has successfully established itself as a cornerstone event for Web3 innovation and collaboration. By uniting creative minds with industry leaders in Dubai's strategic location, the event created invaluable opportunities for developing transformative solutions that will shape the future of Web3.
Sui, Franklin Templeton launch ecosystem partnership
Asset management firm Franklin Templeton has officially announced a strategic partnership with Sui, aimed at the development of innovative blockchain technologies and various use cases on the layer-1 network, as stated by Sui on November 22.
This collaboration will primarily focus on “supporting builders within the Sui ecosystem and deploying groundbreaking technologies that leverage the Sui blockchain protocol,” according to Sui's official statement here.
Although the announcement did not provide specific details regarding the plans for this partnership, the emerging role of Franklin Templeton in the blockchain sector is noteworthy and indicative of a broader trend in the financial industry.
As Cointelegraph recently reported, Franklin Templeton has already made significant strides by launching its flagship tokenized money market fund, known as the Franklin OnChain US Government Money Fund (FOBXX), on the Aptos blockchain. Remarkably, within a month of this launch, the firm also introduced FOBXX on Coinbase’s layer-2 network, Base, further demonstrating its commitment to blockchain innovation as reported here.
Sui is recognized as a decentralized layer-1 blockchain that is specifically designed for the rapid deployment of smart contracts. It has garnered attention in the industry and is often referred to as a potential competitor to Solana due to its emphasis on low-latency applications.
In a related development, asset manager Grayscale launched the Grayscale SUI Trust in 2024, which is an investment fund centered around Sui’s native SUI token. Additionally, several stablecoins, including USD Coin, have also been introduced on the Sui network, further expanding its ecosystem.
Morocco central bank to legalize all cryptocurrencies: Report
Morocco is set to reverse its 2017 cryptocurrency ban with new legislation to legalize digital assets across the nation.
Reports from Reuters indicate that Bank Al-Maghrib, Morocco's central bank, has drafted new cryptocurrency regulations that are currently under review.
The initiative was announced by the central bank's governor, Abdellatif Jouahri, who confirmed to Reuters that they have "developed a regulatory framework for crypto assets that is now moving through the approval process."
Despite Morocco implementing a nationwide prohibition on Bitcoin and cryptocurrency transactions in November 2017, the ban proved partially ineffective, with a considerable portion of the population continuing to hold digital currencies.
This announcement coincides with growing Bitcoin enthusiasm, following BTC's recent approach toward $100,000. On Nov. 22, Bitcoin came within $200 of reaching this unprecedented milestone in cryptocurrency history.
The Moroccan central bank is simultaneously investigating the possibility of a central bank digital currency (CBDC). As Jouahri stated:
CBDCs operate on controlled blockchain networks, typically managed by central financial institutions, unlike decentralized public networks such as Bitcoin and Ethereum.
Morocco's enhanced focus on cryptocurrencies aligns with a worldwide trend toward developing digital asset regulations.
Recently, the UK's Financial Conduct Authority (FCA) unveiled plans to regulate cryptocurrencies by 2026, after discovering that more than 12% of British adults possess crypto assets.
European initiatives have become a catalyst for other nations to establish digital asset regulations.
The European Union is advancing toward implementing the pioneering Markets in Crypto-Assets Regulation (MiCA), scheduled to become effective in late 2024.
Central Bank of Iran promises CBDC launch to Fight Sanctions
The Central Bank of Iran (CBI) will soon introduce a central bank digital currency (CBDC), announced Governor Mohammad Reza Farzin during a national banking summit on Nov. 25. He emphasized the nation's sophisticated digital financial framework and vowed to pursue innovation despite ongoing sanctions.
Speaking at the Modern Banking and Payment Systems Conference in Tehran, Farzin explained that the CBDC rollout aligns with efforts to sustain contemporary banking practices, as reported by Tasnim news agency. Farzin stated:
The digital rial project, which began in 2018, reportedly utilizes open-source Hyperledger Fabric technology. By mid-2023, major Iranian banks had participated in completing the "pre-pilot" research phase.
The CBI initiated a retail CBDC pilot program in June on Kish island, an Iranian free trade zone attracting 12 million visitors annually. Currently, the digital rial appears to operate without intermediaries and focuses on domestic applications.
Addressing sanctions, Farzin acknowledged them as a "major challenge" for the CBI but highlighted ongoing progress. Referring to the October integration of Russian MIR and Iranian ACU payment systems, he remarked:
“Developing innovative banking systems is a central bank’s responsibility worldwide, and we are determined to fulfill this duty in Iran.”
Furthermore, Farzin highlighted that the Iranian Shetab payment network "processes transactions in under two seconds, ranking among the region's most efficient systems." Initial steps are underway to connect it with Russia's MIR system.
The two nations have jointly developed other cross-border payment solutions, including a gold-backed stablecoin. Iran has also tested cryptocurrency for international trade transactions, though cryptocurrency exchanges risk penalties for engaging with Iran in violation of U.S. sanctions.
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