Tue, February 6, 2024 | 2:15PM ET

MetaMask and Robinhood Team Up, Solana Network Suffers an Outage

Name: FS Insight
Price range: $$$

Tom Couture ^AC

Vice President of Crypto Strategy

Market Update

Crypto markets are rising today, with BTC (+1.45%) trading above $43k and ETH (+2.33%) surpassing $2,350. Dymension, a new layer-1 network focused on providing rollups-as-a-service, processed its first block, marking its mainnet launch. The first phase of the protocol is focused on enhancing economic security, after which the focus will shift to launching RollApps, a way for developers to deploy consensus-free blockchains easily. DYM, Dymension’s native token, has gained 15.3% in early trading, bringing the protocol’s FDV to over $4 billion. U.S. equities are declining despite a retreat in rates and the dollar. The SPY (-0.12%) is holding up better than the QQQ (-0.73%), as many are beginning to call attention to the number of announced layoffs at various technology firms.
Consensys, the software company behind MetaMask, has partnered with Robinhood to integrate Robinhood Connect with MetaMask. Robinhood Connect is the platform’s fiat on-ramp that connects customers directly to dApps. With the partnership, MetaMask users will be able to leverage Robinhood’s low-cost order engine, and Robinhood users can use MetaMask’s purchase aggregator. Consensys recently conducted a survey, finding that a third of respondents cited the complexity of Web3 technology as a barrier to entering the crypto ecosystem. The partnership should reduce friction for crypto purchasers and offer a self-custodial option for users who prefer, as Robinhood customers can send crypto assets directly to their MetaMask wallets.
The Solana network suffered a major network outage Tuesday morning. Laine, a Solana validator, stated in an X post, “Solana Mainnet-Beta is experiencing a performance degradation, block progression is currently halted, core engineers & validators are actively investigating.” Core engineers quickly built a patch for validators to upgrade to, which also required a network restart. After almost five hours of downtime and a network restart, Solana was restored at approximately 10 AM EST. Although validators can process blocks, it will take additional time for dApps to restart and be fully functional. SOL fell approximately 3% during the downtime but has since turned positive on the day, rising 0.56%.

Daily Technical Strategy

Mark L. Newton, CMT

Head of Technical Strategy

For the second time in the last two weeks, ETHBTC has risen to multi-day highs, and appears to be carving out a bottoming process which should lead higher in the weeks to come. Following the initial breakout back in early January, ETHBTC consolidated back lower to test the area of the initial breakout. On 1/30/24 this turned sharply higher but then settled, but is making a similar move today, Tuesday 2/6 which stands to reach the highest levels since late January. The technical setup looks favorable and I expect ETHBTC follows through higher to test and break out above the peaks from last month, which might be possible into late February. While cryptocurrencies could experience some further consolidation in March before bottoming again, it's becoming increasingly more favorable to overweight Ethereum vs. Bitcoin ahead of its own possible spot ETF in the months to come. Daily ETHBTC charts show this recent consolidation as being an appealing risk/reward to buy following the early January breakout.

Daily Important Metrics

Crypto Size

Bullish signal is tied to the crypto market growing

Market cap $1.64T

$-18.6B (-1.12%)

BTC Dominance

51.14% (-0.12%)

Stablecoins

Increase in circulating stablecoins is a Bullish signal

In Circulation $96B	(+0.01%)
In Exchanges $16B	(-0.20%)

BTC Metrics

A decrease in Bitcoin on exchanges is bullish, indicates investors are moving coins to cold storage

# BTC in Exchanges 2.4M

(0.04%)

Funding Rates

Positive funding rates indicate traders are Bullish

Aggregate	0.88 (0.27)
Binance	1.00 (0.28)
Bitfinex	2.30 (1.54)
Bitmex	1.00 (0.23)
ByBit	1.00 (0.49)
Deribit	0.37 (0.35)
Huobi	1.00 (0.00)
Kraken	0.65 (0.77)
Mean	0.88 (0.27)
OKex	0.40 (-0.27)

Sentiment

MetaMask and Robinhood Team Up, Solana Network Suffers an Outage

BMI : 49 (63%)

Futures

A positive spread between Futures Prices and Spot Prices is Bullish

CME BTC Price

$42,920 (-1.25%)

Spot Basis

$294 (0.69%)

Volume

550,323 (98%)

Open Interest

261,839 (2.64%)

Options all exchanges

Higher open interest change in a bull market is bullish for the sector

Volume	21,397 (217%)
Open Interest	236,599 (3.42%)
Volume Put/Call Ratio	0.7483 (3.28%)
Open Interest Put/Call Ratio	0.4459 (6.20%)

All metrics as of February 6, 2024 1:43 PM

All Funding rates are in bps

Crypto Prices

Symbol	Market Cap	Last Price	Daily Change	Year to Date	Relative to BTC YTD
BTC	$846B	$43,119	↑ 0.90%	↑ 2.09%
ETH	$284B	$2,362	↑ 2.55%	↑ 3.79%	↑ 1.70%
SOL	$42B	$96.16	↑ 0.08%	↓ -5.47%	↓ -7.56%
ADA	$18B	$0.4980	↑ 0.93%	↓ -16%	↓ -18%
DOGE	$11B	$0.0790	↑ 0.13%	↓ -11%	↓ -13%
LINK	$11B	$18.56	↓ -3.58%	↑ 24%	↑ 22%
DOT	$9.1B	$6.75	↓ -0.32%	↓ -17%	↓ -19%
MATIC	$7.7B	$0.7976	↑ 1.53%	↓ -17%	↓ -19%
NEAR	$2.8B	$2.74	↓ -1.25%	↓ -24%	↓ -26%

Exchange Traded Products (ETPs)

Symbol	Premium to Nav	Last Price	Daily Change	Year to Date	Relative to BTC YTD
GBTC	↓ -0.70%	$37.25	↑ 4.78%	↑ 1.09%	↓ -1.01%
BITW	↓ -36%	$24.10	↑ 3.88%	↓ -1.87%	↓ -3.97%
ETHE	↓ -14%	$19.73	↑ 4.50%	↑ 1.39%	↓ -0.71%
BTCC	↓ -0.10%	$8.07	↑ 3.46%	↓ -1.34%	↓ -3.44%

News

MARKET DATA

Bitcoin.com

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BTC Manager

Ordinals surpasses 6k Bitcoins in total fees

The total amount of Ordinals commissions paid exceeded 6,000 Bitcoins (BTC).

DOSE OF DEFI

The Block

Solana network restarts after outage that lasted five hours

The Layer 1 network Solana restarted after around four hours of halted block progression.

REGULATION

The Block

SEC adopts rule to have stricter oversight over dealers, looping in crypto and DeFi

The SEC voted to adopt rules that require market participants who have significant liquidity-providing roles to comply with its laws.

BTC Manager

Janet Yellen calls for Congress to regulate stablecoins, crypto spot markets

Treasury Secretary Janet Yellen addressed Congress today, calling for comprehensive legislation to regulate non-securities crypto assets, emphasizing stablecoin...

GAMING

BTC Manager

Epic Games Store to open early access for web3 video game Shrapnel

Upcoming web3 shooter game Shrapnel is about to become available for early access on the Epic Games Store marketplace. A Call of Duty-style blockchain video gam...

PRODUCT UPDATES AND PARTNERSHIPS

BTC Manager

Consensys, Robinhood announce MetaMask integration to simplify crypto purchases

Consensys, in collaboration with Robinhood, announced the integration of Robinhood Connect with MetaMask.

GAMING

BTC Manager

Epic Games Store to open early access for web3 video game Shrapnel

Upcoming web3 shooter game Shrapnel is about to become available for early access on the Epic Games Store marketplace. A Call of Duty-style blockchain video gam...

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