Dispatch #221: From ripples to waves: XRP’s rise

In this patch of your weekly Dispatch:

• Leverage in XRP markets
• ETH gains ground
• A call for BTC adoption

Market cast

The final plateau before $100,000?

Bitcoin is down 2% for the week just below $95,000, following a stretch of choppy price action over the last seven days. The price is currently consolidating, with oscillators retreating from the overbought zone—now only exceeding 70 on the weekly chart.

On the daily timeframe, the price is nearing the middle band of the Bollinger Bands, which is acting as a support level. This suggests the recent correction in the broader bullish trend may be approaching its end. Key levels to watch include the $91,000 support, marking the latest price floor, and the $100,000 milestone on the upside. However, for a breakout above $100,000 to hold significance, it must be accompanied by rising trading volumes to confirm market conviction. Michael Saylor, it seems, is convinced and then some as MicroStrategy recently added 15,400 BTC to its holdings for around $1.5 billion.

The big idea

XRP: The third largest asset returns

Ripple’s XRP has proven that the tides of market sentiment, regulatory shifts, and concentrated trading can propel even older crypto assets to new heights. Over the past month, XRP has achieved remarkable growth, surging by over 400% to reclaim its position as the third-largest cryptocurrency by market capitalization. This ascent, reaching $2.74—its highest since January 2018—has energized traders and market participants alike. Equally noteworthy is the shifting regulatory environment. Optimism soared with SEC Chair Gary Gensler's upcoming resignation and hints of the New York State Department of Financial Services (NYDFS) approving Ripple’s RLUSD stablecoin. 

For the icing on the cake, the prospect of XRP-focused ETFs promises to keep speculation alive until decision time. Where’s the catch, you say? CryptoQuant analysts warn the rise may be "leverage-driven" with open interest spiking 30% to $4 billion, raising volatility risks. With that said, it could be time to sit back and watch out for more fireworks with your XRP safely on Nexo’s fixed-term or flexible savings. It's our kind of a big idea.

Ethereum

A good week for ETH

Ether gained 8% on the week, but a series of notable developments suggest the price may still be undervalued.

Layer 2 ecosystem growth: Ethereum's L2 networks hit a record at $54 billion in total value locked (TVL), marking a 210% increase year-to-date. The Dencun upgrade has further stabilized Layer 2 fees, driving scalability and adoption.

ETF momentum: ETH ETFs are seeing strong traction – you’ll see how strong in this week’s most interesting data story below. Bernstein highlights these inflows as creating “favorable demand-supply dynamics” for Ethereum, with staking and regulatory tailwinds adding further upside.

Trader optimism: Futures funding rates for Ethereum have risen steadily, reflecting growing demand for long positions, according to a recent report by CryptoQuant. While spikes in funding rates can precede corrections, current levels suggest the rally remains robust and may have further room to grow.

Stablecoins

Crypto’s first killer app

Stablecoins are rapidly emerging as crypto's "first killer app," with transformative potential to reshape global finance. A new Standard Chartered report highlights their shift from being primarily used on exchanges to serving real-world needs, such as USD savings, cross-border payments, and transactions in emerging markets. In Brazil and Nigeria, 69% of respondents use stablecoins for currency substitution. The report also projects that stablecoins could account for 10% of the global M2 money supply, signaling massive growth potential.

TradFi trends  

Adopt Bitcoin, says Saylor

Michael Saylor, co-founder of MicroStrategy, presented a powerful Bitcoin adoption strategy to Microsoft’s board, highlighting how the tech giant could potentially reach $584 per share (from ~$423 currently) and create nearly $5 trillion in shareholder value by 2034. Saylor emphasized Bitcoin's unique qualities, comparing it to acquiring a $100 billion company growing at 60% annually, but without the usual complexities of mergers and acquisitions.

He positioned Bitcoin as a "universal, perpetual, profitable merger partner," showcasing its 62% annual return rate (ARR) versus Microsoft’s 18%. Saylor urged Microsoft’s leadership to "do the right thing for your customers, employees, shareholders, the country, the world, and your legacy.”

Macroeconomic roundup

Are crypto and labor markets correlated?

Key labor reports this week could shape Federal Reserve policy and crypto markets:

JOLTS Job Openings (Dec. 3): Forecasted at 7.49M, suggesting a slight rebound in labor demand.

ADP Payrolls (Dec. 4): The November jobs report follows October’s sharp slowdown, with expectations for recovery.

November Employment Report (Dec. 6): Over 250K payroll gains anticipated, driven by Boeing workers returning after strikes.

Hot in crypto

Dogecoin overtakes Porsche 🐕🏇

Dogecoin’s market cap has surged to over $60 billion, surpassing Porsche at $53.6 billion to mark a significant shift in market dynamics. This rise is fueled by whale accumulation, increased trading volume, and adoption of microtransactions. Recent data reveals a spike in whale transactions > $1 million and a 12% price surge in the past week. This may not be coincidental, as DeFi Technologies recently introduced the first Dogecoin exchange-traded product (ETP) in Sweden. 

The week’s most interesting data story

ETH’s ETFs beat Bitcoin’s

Spot Ether ETFs hit a milestone on Nov. 29, with $332.9 million in daily inflows, surpassing the previous record by $37.4 million. BlackRock led the charge, contributing $250.4 million and pushing its iShares Ethereum Trust inflows past $2 billion since July. Notably, Ether ETFs outpaced Bitcoin ETFs for the first time, with Ethereum’s DeFi ecosystem gaining momentum.

The numbers

Top 5 stats of the week

$26,400 – Bitcoin's record-breaking monthly gain in November.

$562 million – November’s NFT sales volume, surpassing October’s $356 million.

$135.4 billion – XRP's market cap, securing its position as the third-largest cryptocurrency.

12% – The percentage of UK adults now owning crypto, equating to 7 million people.

$2.71 trillion – November's spot crypto trade volume, the highest since May 2021.

Hot topics

What the community is discussing

Crypto bulls in the research labs.

Bitcoin bulls in the newsroom.

Altcoin bulls get ready!

Dispatch is a weekly publication by Nexo, designed to help you navigate and take action in the evolving world of digital assets. To share your Dispatch suggestions and comments, email us at [email protected].