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XRP
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XRP And DeFi: The Roadmap That Tells It All

by admin September 24, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Ripple has unveiled the next phase of its roadmap for the XRP Ledger (XRPL) in relation to institutional DeFi. The roadmap focuses on tokenization, privacy, and native lending, and plans to introduce more stablecoins on the network, which is a positive for XRP’s utility. 

Ripple Reveals Latest Roadmap For Institutional DeFi On The Ledger

In a blog post, Ripple noted that tokenization remains the central enabler of the XRP Ledger’s institutional strategy. Therefore, plans are in place to introduce the Multi-Purpose Token (MPT) standard by October on the network. The crypto firm explained that these MPTs are a flexible token standard that can carry essential metadata without relying on complex smart contracts. 

In relation to institutional DeFi on the XRP Ledger, Ripple noted that the MPT enables assets of bond issuers, money market funds, and structured products to be represented faithfully and traded natively on the network. The crypto firm further revealed that the next phase will enable the integration of MPTs into the DEX for easy trading, AMM liquidity pools, and cross-token payments. 

Furthermore, Ripple also plans to introduce a native lending protocol on the Ledger, which it described as the “most significant near-term milestone.” The lending protocol is set to go live in XRPL Version 3.0.0 later this year. The crypto firm said that the protocol introduces pooled lending and underwritten credit directly at the ledger level. 

Ripple remarked that the appeal of a native lending protocol on the Ledger is clear for institutions. The firm claimed that no financial institution will turn down low-cost capital if it can be sourced within KYC/AML standards. 

The protocol will pool liquidity from a global base of smaller investors into institutional-sized loans while maintaining compliance. For loan managers, this will be an opportunity to meet the rising demand for liquidity from TradFi by tapping into the growing crypto liquidity, specifically on the XRP Ledger. 

The Push For Programmable Privacy

Ripple revealed that one of the XRP Ledger’s next major upgrades is programmable privacy. The firm noted that for financial institutions, full transparency doesn’t always work, but that privacy features must still meet compliance and auditability standards. The first privacy-focused application, confidential MPTs, is said to already be in development and is scheduled to launch in the first quarter of next year. 

These confidential MPTs will support privacy-preserving collateral management, which Ripple noted is a critical requirement for institutional adoption of tokenized finance. As a whole, the crypto firm indicated that the goal is to introduce more stablecoins, RWAs, lending, compliance tooling, and privacy directly at the protocol level at a global scale. Meanwhile, Ripple stated that over the last year, the Ledger has broken into the top 10 chains for RWAs and has reached its first $1 billion month in stablecoin volume. 

At the time of writing, the XRP price is trading at around $2.84, down in the last 24 hours, according to data from CoinMarketCap.

XRP trading at $2.87 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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September 24, 2025 0 comments
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A Kraken, the symbol of the exchange
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Kraken preps for crypto ‘fight’ as US economy hits sour note

by admin September 24, 2025



Crypto firms are jockeying for a political presence, and Kraken is one of them. Co-CEO Arjun Sethi announced Wednesday that the exchange has committed $2 million to two crypto-aligned political action committees.

Summary

  • Kraken is doubling down on political influence, pledging $2 million to pro-crypto PACs—the Freedom Fund and America First Digital.
  • While the exchange frames the move as a fight for digital freedom, both PACs largely support Republican candidates and Trump.
  • The donations come amid a booming crypto market, now up 45% since January. Most Americans fear the rest of Trump’s economy is on the wrong track, a Reuters/Ipsos poll shows.

Kraken will give $1 million to the Freedom Fund PAC and $1 million to the America First Digital (A1stDigital) PAC.

The fight for crypto in the United States is far from over.

That is why Kraken is donating $1 million to @FreedomFundPAC and increasing our 2025 commitment to @a1stdigital to $1 million.

Congress has made real progress. Market structure bills are advancing. The tone in…

— Arjun Sethi (@arjunsethi) September 23, 2025

According to the company, these types of donations are crucial to defend “core individual rights in the digital age.”

“We are not backing a party,” Sethi said, yet both PACs are explicitly aligned with the Republican Party and support President Donald Trump’s political initiatives.

“We are not backing a party. We are backing principles,” said Kraken co-CEO Arjun Sethi, mentioning self-custody, permissionless decentralized systems, freedom from surveilance in finance, and open infrastructure. “We will keep defending the right to own, move, and build with crypto in the United States,” he added.

While Sethi praised recent progress in Congress, he argues that core crypto freedoms remain at risk.

Regulatory overreach and bans on privacy tools, he says, are still an issue.

Crypto PACs build $140 million midterm war chest

Recall last October when the crypto industry spent $160 million on lobbying efforts.

The money helped. Since Inauguration Day, the crypto industry has enjoyed loose regulations and at least two White House-hosted parties. There was the March 2025 Digital Asset Summit, featuring major crypto firms to discuss a U.S. Strategic Bitcoin Reserve, as well as a May 2025 event for 220 top holders of the TRUMP meme coin.

Both events drew attention to the Trump administration’s engagement with crypto, while also raising ethical concerns over potential conflicts of interest.

However, with the 2026 midterm elections approaching, the industry hopes to cement its gains by doubling down on political spending.

So far, crypto PACs have amassed $140 million in contributions from key industry players. These funds will go to candidates who support a pro-crypto agenda. In many cases, these candidates lean Republican, with Trump himself supporting the agenda.

It’s worth noting that the most significant piece of pro-crypto legislation, the GENIUS Act, was a bipartisan effort. Senator Bill Hagerty introduced the bill, which establishes a regulatory framework for payment stablecoins in the U.S. It passed the Senate 68–30 and the House 308–122, with support from both parties, and was signed into law by Trump on July 18.

Still, Kraken wants more.

“The fight for crypto in the United States is far from over,” Sethi said.

Kraken’s donations come as Trump’s most recent approval rating among Americans falls to just 41%.

Approximately 54% of those polled believe the economy is headed in the wrong direction, up from previous months, according to a Reuters/Ipsos poll.

Since January, the cryptocurrency industry has experienced significant growth, with the global market capitalization increasing from approximately $2.76 trillion in April to over $4 trillion by September.

That’s a spike of around 45% in just eight months.





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September 24, 2025 0 comments
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Crypto Traders Have a New Fave in Aster as It Jumps 2,000% in 7 Days: How High Can It Go?

by admin September 24, 2025



In brief

  • Aster is the flavor of the week for crypto degens, up a staggering 2,180% in just seven days.
  • The Aster token today surged another 19% to $2.35, breaking above key resistance levels with strong volume.
  • How high will Aster go? Technical indicators and prediction market data show mixed signals.

After a choppy start to the week, the crypto market is slowly inching back upwards today.

But with Bitcoin and most other major cryptocurrencies stuck in rangebound trading, there’s one coin out there getting degens excited: the Hyperliquid rival, Aster.

The Aster token is currently trading at a $3.8 billion market cap, and an $18 billion fully diluted valuation, after debuting just one week ago.



Here’s what’s going on, what the charts have to say about Aster’s rapid rise:

Aster: An explosive rise

Aster is the native token of a decentralized perpetual futures exchange by the same name that’s challenging Hyperliquid’s dominance in the sector. It runs on multiple blockchains, including Ethereum and Solana, but it primarily exists on BNB Chain, formerly known as Binance Chain.

Aster, the exchange, has been around for over a year, but activity on the platform exploded following the launch of the Aster token, which trades as ASTER, last week on BNB Chain. Since then, Aster, the DEX, has flipped Hyperliquid in daily volume and revenue, generating $534 million in volume and over $7 million in revenue in the last 24 hours, according to DefiLlama.

The Aster token today is up almost 20%, trading at around $2.30, after skyrocketing by over 2,000% in value since its launch on September 17. It’s a remarkable rally that seems to only be intensifying. The token has already reached a market cap above $3 billion—enough to claim the number 35 spot among all coins on CoinMarketCap, and the 47th spot on CoinGecko. (These indexes track different cryptocurrencies outside of the top 25 or so.)

Aster price data. Image: Tradingview

The technical picture for ASTER shows powerful bullish momentum. It’s worth noting, though, that since the token is only a week old, technical analysis isn’t as reliable as it typically is for assets with more trading history.

Nevertheless, the Relative Strength Index, or RSI, for Aster stands at 65, which indicates strong buying pressure. RSI measures momentum on a scale of 0-100, where readings above 70 typically signal overbought conditions that often precede pullbacks. At 65, Aster still has room to run before hitting levels where profit-taking typically emerges.

The Average Directional Index, or ADX, for the Aster token is at 34, which confirms a strong trending environment. ADX measures trend strength regardless of direction, with readings above 25 indicating a confirmed trend. At 34, we’re seeing powerful directional movement for Aster that traders typically use as confirmation to stay with the trend rather than fight it. This suggests the recent momentum isn’t just noise but represents genuine market conviction.

The Squeeze Momentum Indicator shows “off” status, indicating that price volatility has already been released and the current movement will continue for at least a short time, though potentially at a slower pace until a new contraction happens. Again, in young coins, this analysis is prone to inaccuracies, and traders looking for signals on very short time frames may be better off relying on price supports and resistances until other indicators gain more time to provide solid readings.

A lot of the excitement around Aster right now appears to be driven by the rewards program that the Binance-backed DEX has planned. The Aster token launched with an airdrop for early users, and the exchange has teased future rewards for current users, along with a token buyback program using revenue generated from trading fees.

But if sentiment signals are what you’re after, then there’s some insight to be gained from action on prediction markets for the token at the moment.

On Myriad, a prediction market developed by Decrypt’s parent company Dastan, users currently believe there’s a very strong chance Aster maintains its spot in the top 40 coins on CoinMarketCap by the end of the week, placing odds at above 87%. And those odds have risen rapidly over the last few days, up from just 35% on Monday, as you might expect with the coin jumping in value.



Myriad users are also placing roughly 40% odds that Aster continues its rapid rise up the ranks and doubles again in price before November, hitting a price of $4 per coin. That would be enough to claim a nearly $7 billion market cap and a spot near the top 30 coins.

Will it get there? Crypto markets are fickle, but the charts are bullish, and crazier things have happened.

Key Levels:

  • Immediate support: $2.20 (previous resistance turned support)
  • Strong support: $2.00 (psychological level)
  • Immediate resistance: $2.40 (recent high area)
  • Strong resistance: $2.60 (next major psychological barrier)

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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September 24, 2025 0 comments
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FTT token activity surges after SBF's post (The Tie)
NFT Gaming

Sam Bankman-Fried’s Sudden ‘gm’ Lifts FTT Token Drawing Crypto Community Ire

by admin September 24, 2025



“What”: a simple reply by crypto influencer Gainzy pretty much summed up the sentiment when the notorious convicted fraudster Sam Bankman-Fried, or SBF, seemingly posted on social media after a long hiatus (and despite being in jail).

To make matters worse, the token linked to defunct crypto exchange FTX surged nearly 24% in the last 24 hours, after his X account posted a simple “gm” on Tuesday.

This simple post seems to have been taken as an opportunity by speculative crypto traders to pump the FTT token, which now has no value associated with it, nearly 50%-60% within minutes, reaching a peak of around $1.20-$1.23. Despite his incarceration and clarification that the post was made by a “friend” on his behalf, the token is still up 25%, trading around $1.014, according to CoinDesk data.

The FTT token has also seen a sharp increase in activity and trading volumes following the post, according to data compiled by The Tie.

The number of active addresses reached 201, significantly outpacing the monthly average of 56, The Tie said. Additionally, centralized exchange deposits doubled, reaching 13, while withdrawals quadrupled to 38 compared to the monthly average, it added.

‘Wen memecoin’

The crypto community on X reacted swiftly with anger, skepticism and humor to SBF’s post.

One of the most scathing replies came from on-chain investigator ZachXBT. In a now-deleted post, he condemned SBF, stating that he “deserves zero human rights” due to the harm caused by FTX’s collapse. His view reflects a segment of the community’s lingering resentment towards FTX’s collapse, which hurt investors who are still waiting for some of their funds from its bankruptcy estate and the broader crypto community.

Read more: Who Won and Lost Most in Sam Bankman-Fried’s Criminal Scheme?

Other community members, including Laura Shin, mocked SBF’s sudden social media activity, saying, “That’s so 2021.”

Meanwhile, Arthur Hayes, the BitMEX co-founder who now runs crypto venture fund Maelstrom, took a humorous jab, replying “Wen memecoin?” — a likely playful reference to the speculative, meme-driven nature of the surge in FTT token after SBF’s unexpected post. This potentially underscores a view that the price movement was more about market psychology than substance.

Not the first time

The surge in FTT token — once a key utility token for trading fee discounts and staking benefits on the FTX exchange — has been largely dormant since the platform’s spectacular implosion that ushered in a brutal crypto winter that devastated many investors.

However, strangely enough, this is not the first time this has happened. The same thing unfolded in February of last year, when the SBF’s account posted on X for the first time in two years. At the time, he was detained in the Metropolitan Detention Center in Brooklyn, and his lawyers were working through an appeal of his conviction (the appeal is ongoing, with arguments currently scheduled for November 2025).

The new social media post also came as the FTX estate continues to work to repay creditors.

The FTX Recovery Trust is set to release $1.6 billion to creditors at the end of this month, marking the third major payout since the crypto exchange’s implosion nearly three years ago.

This recent activity, though potentially short-lived, shows the token still reacts sharply to headlines and sentiments — especially those tied to its controversial founder.

Read more: Private Jets, Political Cash Among $1B in Sam Bankman-Fried’s Forfeited Assets: Court



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September 24, 2025 0 comments
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Bitcoin (BTC) Price Prediction for September 24
NFT Gaming

Bitcoin (BTC) Price Prediction for September 24

by admin September 24, 2025


The market is neutral in the middle of the week, according to CoinStats.

Top coins by CoinStats

BTC/USD

The rate of Bitcoin (BTC) has gone up by 0.15% over the past day.

Image by TradingView

On the hourly chart, the price of BTC is trying to fix above the $113,188 level. If it happens and the bar closes far from that mark, the upward move is likely to continue to the $114,000 area.

Image by TradingView

On the longer time frame, the rate of the main crypto is far from main levels. In this case, traders should pay attention to the daily candle’s closure in terms of yesterday’s bar’s peak. 

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If it happens above it, bulls may again seize the initiative, which may lead to a test of the $114,000-$115,000 zone by the end of the week.

Image by TradingView

From the midterm point of view, none of the sides has seized the initiative yet. Such a statement is also confirmed by the low volume. All in all, sideways trading in the area of $110,000-$114,000 is the most likely scenario.

Bitcoin is trading at $113,199 at press time.



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September 24, 2025 0 comments
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Bitcoin
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Bitcoin Whale Deposits To Binance In Record Volumes – Is Another Major Sell-Off Brewing?

by admin September 24, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

This week in the cryptocurrency sector began on a significant bearish note, and Bitcoin, the leading digital asset, has declined strongly toward the $112,000 price level. With the crypto king experiencing a persistent decrease in price, key BTC investors are seen shifting their coins into crypto exchanges at a rapid rate.

Whales Moving Bitcoin Into Binance

Bitcoin’s recent downward trend in the last few days appears to have impacted the sentiment of major investors on crypto exchanges. In a recent post on X, CryptoQuant, a leading on-chain and data analytics firm, has outlined a growing shift among investors on Binance, the largest crypto exchange.

Presently, Bitcoin is witnessing a fresh wave of investor activity as massive whale inflows of BTC are being funneled into Binance. Such a trend frequently occurs before periods of increased volatility, as whales seek to either profit from the current state of the market or prepare for impending market drivers.

With large holders possibly getting ready for big trading or positioning moves, this rise in high-volume transactions indicates renewed market intensity. While BTC is seeing robust downward movement, Maartuun highlighted that whale activity on Exchanges typically corresponds with these fluctuations.

BTC large investors’ inflows to Binance | Source: Chart from CryptoQuant on X

According to the market expert, whales continue to have a huge impact on the market and usually utilize the Binance exchange as their main trading platform. This implies that the development could reshape BTC’s current price dynamics and trajectory in the short term.

In the meantime, the expert has underscored the importance of monitoring the Whale to Binance Flow ratio. Data shows that inflows from large holders to Binance reached about $120 million during the sell-off on September 22. After these massive deposits, an additional $52 million was observed flowing into the platform in the early hours of September 23. 

Maartuum noted that these transfers suggest that whales are constantly moving a substantial portion of their coins into Binance, with the aim of executing on the market. Combining the transfers between September 22 and 23, it marks the second-largest inflow to Binance in the past month, around the current high of $116,000.

BTC Future Open Interest Moves Downward

Given Bitcoin’s decline in price, several key metrics are beginning to exhibit bearish action. One of the metrics highlighted by Glassnode that is showing a negative trend is the BTC Futures Open Interest Perpetual.

In its post on X, the leading data analytics platform reported that the metric experienced a drop from $44.8 billion to $42.8 billion, as BTC’s price pulled back to $113,000. According to Glassnode, the flush in leverage reflects reduced exposure to market speculation. Furthermore, it is frequently a healthy reset that can reduce the likelihood of forced liquidations and stabilize derivatives markets.

BTC trading at $112,502 on the 1D chart | Source: BTCUSDT on Tradingview.com

Featured image from Pixabay, chart from Tradingview.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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September 24, 2025 0 comments
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Dow retreats 200 points amid Walmart earnings miss
NFT Gaming

Bitcoin is up while S&P 500, Nasdaq are down: Midday Update

by admin September 24, 2025



The S&P 500 and Nasdaq both dipped around midday Wednesday, while Bitcoin surpassed $113,800 at last check.

Summary

  • Major U.S. indexes slipped at midday: Nasdaq -0.53%, S&P 500 -0.37%, Dow Jones -0.17%.
  • Alibaba jumped 7.34% after unveiling plans to exceed its $50B AI spending budget, fueling Wall Street optimism on AI.
  • Micron fell 3.9% despite beating earnings, while gold held record highs and cryptocurrencies stalled.

Bitcoin (BTC) swung near the $113,800 price level, according to CoinGecko. See below.

Source: CoinGecko

  • Nasdaq is down 0.53% in midday trading.
  • The benchmark index S&P 500 is down 0.37%.
  • The blue chip index Dow Jones Industrial Average is down 0.17%.

Stocks showed bulls were set for another big day as Wall Street cheered fresh artificial intelligence-related news from Alibaba (BABA), which rallied 7.34% at last check on Wednesday.

The Alibaba stock soared more than 9% in premarket trading and extended the gains as traders bet on AI spending budget. While it planned to spent $50 billion on AI initiatives, Alibaba says it will go beyond this in a push to keep pace with competitors. 

And Micron Technology (MU), despite surpassing Wall Street’s expectations in its latest earnings report, dipped 3.9% at the time of reporting.

Meanwhile, gold held at record highs while top cryptocurrencies stalled.

Wall Street also eyes inflation report

Federal Reserve chair Jerome Powell spoke this week, days after the U.S. central bank cut its interest rate by 25 basis points. 

While investors have priced in more cuts in 2025, Powell’s speech indicated the Fed remains largely cautious. His remarks also alluded to the stock market’s rally as one that sees stocks “fairly highly valued.” 

Although the major indices are near record highs, Wall Street’s immediate attention is on the upcoming release of the Personal Consumption Expenditures index. CPE is the Fed’s preferred inflation gauge and the latest inflation report on this is set for release on Friday, September 26, 2025.

Investors will be keen on CPE data that does not impact the anticipated interest rate cuts.



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September 24, 2025 0 comments
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Franklin Templeton Taps BNB Chain for BENJI Expansion After Binance Team-Up

by admin September 24, 2025



In brief

  • Franklin Templeton’s tokenization platform is being integrated with BNB Chain
  • Franklin Templeton is also working with Binance on separate crypto products.
  • BNB hit an all-time high of $1,079 on Sunday

Franklin Templeton’s tokenization platform is expanding to BNB Chain, bringing one of the world’s largest asset managers to the Binance-created blockchain.

The asset manager, which has $1.6 trillion in assets under management, said the move would allow Franklin Templeton to use BNB Chain’s “low-cost, compliance ready” infrastructure, while expanding the availability of its products, according to a press release.

The Benji Technology Platform is used to administer shares in Franklin Templeton’s OnChain U.S. Government Money Fund. The product debuted on layer-1 network Stellar in 2021 and has grown to $732 million since then, according to crypto data provider RWA.xyz.



The money market fund, which is backed primarily by government securities, cash, and repurchase agreements, has 938 holders across eight different blockchains, including Ethereum, Solana, Avalanche, and layer-2 network Base.

“Our goal is to meet more investors where they’re active,” Roger Bayston, head of digital assets at Franklin Templeton, said in a statement. “Together, Franklin Templeton and BNB Chain will work to deliver tokenized assets with greater utility.”

Franklin Templeton and Binance said in a joint statement earlier this week that the two are working on separate digital asset products that are “tailored to a broad range of investors.” More details are expected later this year.

BNB Chain debuted as an alternative to Ethereum in 2020 under the name Binance Smart Chain. It serves as a layer-1 network and dovetails with opBNB, a layer-2 network, and BNB Greenfield, a blockchain used for data storage.

BNB Chain was home to $12.5 billion worth of stablecoins on Thursday, while registering 2.27 million active addresses over the past day, according to crypto data provider DefiLlama.

BNB changed hands around $1,015 on Wednesday, according to crypto data provider CoinGecko. The asset’s price has increased 58% over the past year, while hitting a fresh all-time high $1,079 on Sunday, as the fifth largest cryptocurrency by market capitalization.

The network is receiving renewed attention as Aster, a decentralized exchange, challenges Hyperliquid in terms of 24-hour perpetual trading volume. Binance co-founder Changpeng Zhao has praised its recent performance as a “good start.”

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September 24, 2025 0 comments
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Bitcoin (BTC) Mining Profitability Fell in August, Jefferies Says
NFT Gaming

AI Bet Means Big Upside for IREN

by admin September 24, 2025



IREN (IREN), one of the largest self-operated BTC$113,866.40 miners in the U.S., is breaking away from the pack, and Wall Street is taking notice.

Bernstein analysts raised their price target on IREN to $75 from $20, implying about 80% upside, as the miner doubles down on building its own AI cloud business rather than relying on co-location deals with partners like CoreWeave (CRWV).

IREN has already had a major move, ahead more than eight-fold from its 52-week low of $5.13 hit in April. The shares are higher by 365% year-over-year.

The broker now sees IREN’s AI pivot as credible, despite early skepticism about the miner’s ability to execute on a capital-intensive data center build-out and compete with AI cloud players tied to hyperscalers and Nvidia (NVDA).

IREN is guiding for rapid growth, the report noted, with $500 million in annual recurring revenue by Q1 2026 on 23,300 GPUs, up from roughly $14 million in Q1 2025.

Beyond AI, IREN retains flexibility with its 3 gigawatt (GW) power portfolio, balancing bitcoin mining and AI workloads to maximize revenue per megawatt, Bernstein analysts led by Gautam Chhugani wrote.

Its 50 EH/s mining operation generates an estimated $600 million in annualized EBITDA at current bitcoin prices, funding its AI expansion, according to the analysts.

Bernstein has shifted its valuation approach to a sum-of-parts model, assigning 87% of enterprise value to AI cloud and co-location potential at IREN’s 2GW West Texas site, with the remaining 13% coming from bitcoin mining.

At the revised target, IREN would trade at $7.5 million per megawatt (MW), above other AI-focused miners but still far below established data center peers like CoreWeave, suggesting further room for multiple expansion, the report added.

Read more: IREN Shares Jump 11% in Pre-Market Trading as Bitcoin Miner Doubles AI Cloud Fleet



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Shiba Inu (SHIB) Burn Rate at 0: Why Did It End?
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Shiba Inu (SHIB) Burn Rate at 0: Why Did It End?

by admin September 24, 2025


  • Why SHIB burns are useless
  • What’s next for SHIB?

The Shiba Inu burn mechanism was promoted as a deflationary instrument to lower the supply of tokens and encourage sustained price growth. The experiment has lost steam now that that rate has essentially fallen to zero. The answers are simple.

Why SHIB burns are useless

  1. First, there is no direct financial incentive for someone to voluntarily destroy their own tokens in order to burn SHIB. In contrast to Ethereum’s EIP-1559, which links burns to real network usage, SHIB’s procedure was optional and solely relied on community support. After the initial excitement subsided, participation declined. The protocol itself lacked a sustainable mechanism, so the burn movement was doomed to fail.

SHIB/USDT Chart by TradingView

  1. Second, the burn’s primarily symbolic nature was soon recognized by the larger market. Notwithstanding the destruction of millions of tokens, SHIB’s nearly 589 trillion total circulating supply far outstripped those figures. The only significant incident occurred in 2021, when Vitalik Buterin transferred 410 trillion SHIB to a dead wallet. Since then, every burn has been a rounding error, with no discernible impact on tokenomics or price.

What’s next for SHIB?

Burn activity’s collapse highlights how weak SHIB’s foundations are still. Its price has followed the general meme coin cycle, which saw sharp increases in 2021, followed by a protracted drop and stagnation. Due to its inability to recover its peak, and the lack of a structural reduction in supply, SHIB is now solely dependent on speculative demand. SHIB lacks a plausible deflationary driver, in contrast to Ethereum’s continuous burn or Bitcoin’s halving mechanism.

In the future, burn recovery is not likely. The community has shown that it is unable to sustain the endeavor, and developers have failed to incorporate significant burn mechanics into the ecosystem. It was never really a financial fact but rather a marketing ploy that token destruction could support value.

For investors, the fact that SHIB burns at zero reveals only one simple truth: the token’s prospects are bleak in the absence of fresh demand.



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