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China is forcing markets and Solana is in the best shape

Igor Grigorchenko

News editor

Aug 16, 2023 at 11:23

As usual, we have collected all the most important news from yesterday. Our daily digests keep you up to date with the crypto world.

China is forcing its economy to grow

Last week, it was reported that China is showing signs of deflation (otherwise known as negative inflation) for the first time. To combat this phenomenon, China’s central bank has cut interest rates and is beginning to inject 204 billion yuan into the economy. China is now beginning to do what is so highly expected of the US economy, which is now conversely shrinking its money supply.

Why is this important for the world economy? You can clearly see the ratio of China to the US in the chart below — their economies are comparable in size, so China’s injection of money is a very important stimulus factor.

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Recall that any meaningful injection of liquidity into the global economy creates the preconditions for the growth of crypto. Therefore, it is worth keeping a close eye on the actions of giants like the US and China.

Binance is still fighting

Binance is the crypto-economy giant of the world. Any serious problems it faces could very much affect all the other players in the market.

  • News reports say that Binance has filed a court petition against the SEC — the exchange wants the regulator to be barred from questioning witnesses on matters outside the scope of the case against it. Binance claims that the SEC has gone on a crusade against it. This statement shows how much pressure is being put on Binance by the regulator, which is alarming for the exchange.
  • Binance is once again launching BTC trading with zero fees; the last time this happened, it led to a significant increase in trading volumes on the exchange. Despite the positivity of this news from the perspective of the average user, this decision has a downside.

    The fact is that by waiving the commission, the exchange loses a significant amount of revenue, and if Binance is taking such a bold step, it means that the circumstances are such that it is impossible to retain or attract traders otherwise. This suggests that Binance is not doing as well as it seems.

SOL is the most attractive altcoin at the moment

Just to cite a number of factors that make Solana stand out from the rest:

  • The largest influx of new money among all altcoins (we wrote earlier about this phenomenon in detail);
  • The emergence of the Solang language, which allows easy compilation of Solidity DApps into native Solana. This was done to make it as easy as possible for developers to port their platforms to Solana;
  • Solana has not yet had a retrodrop cycle;
  • Solana has a nascent new DeFi 2.0 with increasing TVL;
  • Solana has successfully survived the collapse of FTX\Alameda, with which it was previously associated. All the scary stuff is behind the project;
  • Value in USD of validation nodes have risen from the bottom several times; 
  • The network is much more stable and doesn’t go down regularly like it used to;
  • The NFT ecosystem on Solana is stronger than any other (since summer, according to the statistics we wrote about earlier).

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