On The Pulse - Edition #013
Welcome to On The Pulse, with Maui.

Hey everyone, welcome back to this week's edition of 'On The Pulse.' Thanks as ever to all who have subscribed and are reading this via email. If you're currently browsing, please consider subscribing! If you find today's newsletter valuable, please recommend it to a friend and feel free to suggest topics or ask questions on my Twitter @jordymaui.

On our 13th issue of the FREE OTP Newsletter i’ll be teaching you about what Layer Twos are, diving into my thoughts on the markets & going into this weeks major headlines such as Coinbase beating the SEC & Doodles new announcement! Get going, it’s all below.

🎓 Lesson of the Week: Understanding Layer Twos in Crypto

Layer twos are a critical concept in the crypto world, providing solutions to scalability issues on blockchain networks like Ethereum. These layers sit on top of existing blockchains, offering enhanced transaction throughput and reduced fees while maintaining security. Layer twos encompass various protocols and technologies, each with its unique approach to scalability and decentralisation. There are many popular ETH layer twos you may have heard of such as Polygon, OP or Arbitrum - alongside several more across alternative chains.

🌐 What are Layer Twos? 
Layer twos are secondary protocols built on top of existing blockchains to alleviate congestion and scalability issues. Think of them as way to make something large and slow, fast and compact. They operate independently while relying on the security and consensus mechanisms of the underlying blockchain. Layer twos come in different forms, including sidechains, rollups, state channels, and more, each with its advantages and trade-offs.

🔄 How do Layer Twos Work? 
Layer twos work by processing transactions off-chain or in a parallel environment, reducing the burden on the main blockchain. This allows for faster transaction confirmation times and lower fees, making them ideal for high-volume applications like decentralised finance (DeFi), non-fungible tokens (NFTs), and gaming.

🛠️ Types of Layer Twos 
There are various types of layer twos, each catering to specific use cases and scalability needs. Sidechains like Polygon (formerly Matic) and xDai operate independently but periodically synchronize with the main blockchain. Rollups, such as Optimistic Rollups and zk-rollups, bundle multiple transactions off-chain before submitting them to the main chain for verification. State channels enable direct interactions between participants off-chain, reducing the number of on-chain transactions required.

⚖️ Benefits and Challenges 
Layer twos offer significant benefits, including increased scalability, reduced transaction costs, and improved user experience. However, they also present challenges such as interoperability with the main chain, security concerns, and potential centralisation risks depending on the implementation.

🔍 Choosing the Right Layer Two 
Selecting the appropriate layer two solution depends on factors like transaction speed, cost-effectiveness, security, and ecosystem support. Evaluating the trade-offs and considering specific project requirements is essential for choosing the most suitable layer two solution. It also depends on what you’re trying to achieve as their is often more lucrative options on the layer ones - for example ETH NFTs > Polygon NFTs.

💡 Conclusion 
Layer twos play a crucial role in addressing scalability challenges in blockchain networks, enabling decentralised applications to scale to millions of users while maintaining security and decentralisation. Understanding the different types of layer twos and their implications is essential for navigating the evolving landscape of decentralised finance and Web3 applications.

Major Headlines: "The Weekly Roundup"

This week the headlines are focused on Coinbase and their lawsuits with the SEC, Doodles & Metamasks new announcements & news on the ETH ETF!

🛡️ Coinbase Emerges Victorious in Lawsuit Over Crypto Transactions:

In a significant legal win, Coinbase clears its name in a lawsuit concerning on-chain transactions. The outcome marks a pivotal moment for the exchange, reinforcing its compliance with regulatory standards. This won’t be the end of Coinbase’s ongoing legal battles however - thats for sure. Read in full here.

🌈 Pharrell and Lil Wayne in Spotlight for Doodles NFT Animated Film:

Doodles NFT takes center stage with music icons Pharrell and Lil Wayne headlining an upcoming animated film project. This collaboration marks a significant milestone for the NFT project, showcasing the fusion of art, music, and blockchain technology. Get all the colourful details about this groundbreaking project here.

🔎 Metamask Introduces Airdrop and NFT Claim Verification Feature:

Metamask, the most popular Ethereum wallet, has rolled out a new feature that allows users to check their eligibility for airdrops and NFT claims directly within the wallet interface. This new functionality aims to provide greater transparency and convenience for users participating in various token distributions and NFT drops. With Metamask's latest update, users can easily verify their eligibility and claim their rewards without the need for external tools or platforms. Read more here:

🛑 SEC Indicates Unlikelihood of Approving Ethereum ETF:

The SEC has hinted at the improbable approval of an Ethereum ETF, following its reluctance towards Bitcoin ETF issuers. This decision casts a shadow over the prospects of an ETH ETF, dealing a blow to hopes within the crypto community. Despite growing interest in crypto ETFs, regulatory hurdles continue to present challenges for their introduction into traditional finance markets. Take a look at the full article on CNBC here.

Maui’s Weekly Analysis of Charts

Dive into the pulse of the crypto market with me for a quick overview. If there are elements you don’t understand here, don’t worry – feel free to ask me questions on Twitter. Interested in a specific chart analysis? Let me know! I’ll also be holding weekly polls based on your suggestions. Anyway, here are this week’s charts:

₿ BTC (Bitcoin):

• Recent Price Action: Over the last 7 Days, $BTC is up 4.5% and holding strong at around $69,000 but with CPI results yet to be priced in.

• Weekly Forecast: CPI comes in today and with speculation being all over the place, this week could very quickly become volatile and either break out of the range or continue to drop back into mid-low levels.
  
  I’m certainly remaining bullish this week through CPI data and want to see us exit this range and head towards $80,000 however until the data is released, we can’t be certain despite the ETF inflow/outflows. I’ll be remaining in my long positions unless it becomes clear to exit and likely adding to them at the opportunity of coming down to the lower range areas.

♦ ETH (Ethereum):

• Over the past 7 days, Ethereum is up 6% returning to $3,500 price points.

• Weekly Forecast: Again, we will await CPI coming later today however the strength on ETH is certainly visible in comparison to BTC.

It’s been a while since we’ve had ETH looking stronger than BTC but with Solana continuing to have congestion issues and BASE becoming a popular alternative, the time for ETH to run may well be here. I’m certainly shuffling my positions accordingly as after all - where the casino goes, users and price action goes!

Bitcoin Dominance (BTC.D) chart has spiked since last week pushing up to 55% after BTC bounces the strongest from the lows. Despite the grind upwards and alts staying relatively painful (non movers) the range is still intact for BTC.D and is failing to get anywhere significant as it stands.

As always, i’ll mention this: BTC.D up = Money is in Bitcoin, alts bleed or stay stagnant. BTC.D down = Money flowing into alternative coins & bitcoin ranges or bleeds out.

Now, let’s give an update on the altcoins we’re still looking at each week.

This week - we’ve hit price targets for buying areas and have been able to capitulate on purchasing more at lower prices ready to aim for our profit areas with the next leg up!

/ AVAX (next height target of $70, buying more/bids at $34 or lower.)
Currently still hovering around $47 after last weeks retrace and bounce, solid area for accumulation & staying strong at support. I’ve added to my positions.

/ SOLANA (next height target of $200, buying more/bids at $105 or lower.)
After congestion issues continue, Solana seems to be taking a hit and looking to retrace a little - I can see $160 area having a reaction if we don’t hold $170.

/ INJ (next height target of $54, buying more/bids at $32 or lower.)
Still holding support at our buying range after a big bounce but continued bleed back down. Many alts showing similar range lows but staying cautious to add capital if we go lower.

/ SEI (next height target of $1.30, buying more/bids at $0.63 or lower.)
SEI is currently bleeding at around $0.66 and heading towards our bidding areas of $0.63 - ready to add to this position.

/ MAVIA (next height target of $12, buying more/bids at $4 or lower.)
MAVIA also showing blood as we are currently at $4.75 so will be interesting to see if we hit our bids or form a new support at this level. Ready regardless.

/ RNDR (next height target of $12, buying more/bids at $6 or lower.)
After a short lived pump back above $10, RNDR is currently hovering around $9 and seems to be having little volume, another one to wait for like most alts.

/ LINK (next height target of $24, buying more/bids at $17 or lower.)
Still holding our bids/buying area of $17 and looking to hold here - if we get lower i’ll be adding to the long term position but currently looks good here!

/ MATIC (next height target of $1.50, buying more/bids at $0.98 or lower.)
Currently lower than our bids and hovering around the 200day EMA - hoping we hold here otherwise some further blood can be in order. Holding anyway.

/ NEAR (next height target of $10, buying more/bids at $3.50 or lower.)
Currently a good looking alt after a super strong bounce from $6 and is now at around $7 - looking to continue with a higher low & push to our targets.

/ TIA (next height target of $24, buying more/bids at $13 lower.)
Unfortunately a continued bleeder as it stands at $11 - will not be adding anything until clear support is there but holding the position anyway.

(New coins from last week - will remove this statement next week!)

/ FET (aiming for ATH of around $4+, buying more here at $2.60 bounce)
Still at support, still holding this position at $2.50 and will be looking for a continuation when alts come alive again.

/ TAO (aiming for ATH of $850+ and bought at the $528 support region.)
One of the best looking alts we have right now as we continue to pump from the support and buy areas - at $615 today, aiming for the new ath!

/ WIF (aiming for ATH above $10 and bought at the $3.70 areas)
Slightly down from my entry and currently at $3.50 but I’ll likely add to this position if we see any further dips as we target a much, much higher price.

/ APT (aiming for $30+ and accumulating here at the $14-$15 range)
Another one thats continued to bleed and offer a lower buying opportunity at $12 which I have taken and look to hold for new highs.

If you would like me to take a look at any specific charts or go deeper into anything, please feel free to reach out to me on twitter or email!

📰 The Summary: From Crypto Trends to NFT Buzz

Each week, we will end the newsletter with a really brief TLDR (Too Long, Didn’t Read) assessment of what’s been going on this week across Crypto and NFTs. I hope this section provides additional value for those who read!

Crypto:

• 📊 Market Trends: Majors up while Alts continue to bleed - CPI today.

• 🔓 INJ sees huge unlock tomorrow: Injective is on schedule to burn 9million tokens tomorrow worth over $340,000.

• 🔍 Metamask to add Airdrop Reader: Wallet - Metamask will add the function to let users know if they are eligible for an aidrop or not.

• 📉 BASE out performs ETH and ARB: The rotation continues as Solana slows and BASE begins to outperform alternative majors.

• 💼 Coinbase clears SEC lawsuit: Another win for coinbase as they clear the SEC lawsuit for on-chain transactions.

NFTs:

• 🎨 NFT NYC happens: During the course of the last week, NFT NYC took place with several announcements, parties etc occurring.

• 💱 XCOPY sees sales volume again: Popular OG NFT collection XCOPY Editions has began seeing several sales again this week.

• 🚀 BASE memecoins surge: With the solana party slowing, BASE memecoins have started to see volume spikes across the board.

• 🛒 Opensea integrates with BLAST: Blast NFTs are now available to trade on Opensea as they try to compete with leaders Magic Eden.

• 🌈 Doodles announcement: Doodles are picking up steam again after announcing an activation led by Pharell named ‘Dullsville’.

And with that, we’re wrapped up for another week. If you have any suggestions for lesson of the week, please let me know! If you enjoyed this weeks newsletter, please feel free to support by following me on twitter @jordymaui

Until next time!