Bitcoin's layer-2 scaling networks, particularly rollups, might not be sustainable long-term. That's the word from Galaxy Research in a new report. Despite their popularity as a method to keep Bitcoin payments cheap, fast, and decentralized, these networks face significant challenges. Gabe Parker, a Galaxy analyst, highlighted the cost of posting data as a key issue. He explained this in the report published on Friday. Bitcoin rollups use the blockchain as a "data availability layer". They post enough data for any Bitcoin node to reconstruct the rollup network's state. But here's the rub: Bitcoin blocks have a 4 megabyte (MB) storage limit. Each data posting transaction can use up to 0.4MB. That's a whopping 10% of a block. With multiple rollups expected to post data frequently, base-layer fees could skyrocket. To survive, rollups need to generate substantial revenue from their own network fees. This revenue must come from users willing to pay for layer-2 transactions. It's a dog-eat-dog world out there. Rollups must outdo each other in fee generation to secure block space priority. Galaxy Research crunched the numbers. In a low-fee environment, rollups could face monthly expenses of $460,000 to maintain Bitcoin's security. In high-fee scenarios, this could balloon to $2.3 million per month. Yikes! Rollups work by compressing many transactions into a single batch. They then post a summary back to the main blockchain. It's clever, but is it sustainable? Alexei Zamayatin, co-founder of "Build on Bitcoin" (BOB), chimed in on Twitter. He believes Bitcoin rollups can be as cost-effective as Ethereum rollups. However, he argues against using Bitcoin's main chain for data availability. Instead, Zamayatin suggests using Celestia or a merge-mined Bitcoin sidechain. It's cheaper, but there's a catch. This approach sacrifices some of Bitcoin's complete decentralization and security. Talk about being stuck between a rock and a hard place. "No one will use Bitcoin L2s if they are 100x more expensive than Ethereum L2s, just because 'it is on Bitcoin.' Good news: They won't be more expensive," Zamayatin tweeted. Bold claim, mate. The future of Bitcoin rollups hangs in the balance. It'll depend on continued innovation in data compression and scalability. The race is on, and only time will tell who'll come out on top. One thing's for sure: it's gonna be one hell of a ride.

Crypto analyst Benjamin Cowen is sounding the alarm. He reckons altcoins are about to take a nosedive against Bitcoin. Cowen, with a whopping 839,200 followers on X, warns of pain ahead for altcoin holders. He thinks the crypto market is mirroring the 2019 cycle. In April, Cowen spotted a pattern. The total altcoin market cap against Bitcoin looked eerily similar to 2019. He predicted a bigger Bitcoin correction once ALT/BTC pairs collapse. This would lead to altcoins capitulating against the US dollar. Now, with ALT/BTC breaking support, Cowen says it's showtime. He expects a repeat of the 2019 scenario. "We should finally see ALT/BTC pairs break down soon," Cowen states. "Last cycle, they broke down one month before the 1st rate cut, and something similar could play out here too." The CME FedWatch Tool backs this up. It shows 100% of traders expect a Fed rate cut next month. Cowen's not done yet. He predicts Bitcoin Dominance will hit 60% before altcoins catch a break. He explains, "With some indicators flashing recessionary signals, it means the Fed will begin to cut rates soon, in order to try and minimize the damage and hope for a soft landing." This spells trouble for altcoins. Cowen adds, "This means BTC dominance will top soon (probably sometime between Sept.-Dec. 2024). But first, 60% dominance." As of now, Bitcoin Dominance sits at 56.73%. If Cowen's 2019 comparison holds water, altcoins are in for a rough ride. The crypto market's no stranger to volatility. But Cowen's prediction suggests we're in for a wild one. So, what's a crypto investor to do? Keep a close eye on Bitcoin Dominance and those Fed rate decisions. Remember, though, this is just one analyst's take. The crypto market's full of surprises, and nothing's set in stone. Still, Cowen's track record and massive following make his predictions worth considering. Altcoin holders, you've been warned.

The cryptocurrency market took a nosedive on Sunday evening. Bitcoin plunged to levels not seen since February burying the expectations for the colossal surge the BTC maximalists have been hoping for so long. Ethereum fell back to December prices. Bears are cheering, and nobody know under what tree are the bears hiding. Bitcoin dropped 12% in 24 hours. It's down 20% week-over-week. Ethereum plummeted 21% in a day. It's lost 30% in a week. Ethereum erased all its 2024 gains. It's now 3% lower than on January 1st. The CoinDesk 20 Index fell 12% in 24 hours. The Bank of Japan might've kicked off this mess. They hiked interest rates last week. The yen shot up. The Nikkei stock index tanked. Japan's woes spread to the U.S. The Nasdaq dropped over 5% in two days. Nasdaq futures are down 2.5% on Sunday evening. The Fed also threw a curveball. They held rates steady but seemed iffy about a September cut. Markets had banked on that cut. Traders aren't waiting for the Fed. They've priced in a 100% chance of lower U.S. rates in September. There's a 71% chance of a 50 basis point cut. The 10-year Treasury yield has nosedived. It's at 3.75% Sunday evening. That's down from 4.25% a week ago. The current yield is way below the fed funds target. The target sits at 5.25%-5.50%. Talk about a gap! Markets are in full panic mode. The Nikkei's down another 6% early Monday. That's a 15% drop in three days. It's off 20% from its mid-July peak.

July saw a fierce crypto showdown. XRP emerged as the dark horse. It outperformed Bitcoin, Ethereum, and Dogecoin among the top 10 cryptocurrencies by market cap. XRP's price skyrocketed from $0.4 to $0.65. CryptoRank data shows a 35.3% monthly gain. Bitcoin crawled up by 6.09%. Dogecoin managed a measly 1.37% increase. Ethereum actually dipped by 3.46%. What's behind XRP's surprise win? It's all about the legal drama. The ongoing battle with the SEC is the key player here. Judge Analisa Torres ruled that some XRP sales weren't securities. But Ripple's not off the hook yet for its $1.3 billion ICO. The SEC initially demanded $2 billion. Ripple shot back with a $10 million offer. This tug-of-war left investors feeling pretty miffed. It's been dragging on for ages, hitting XRP's price hard. But things took a turn this month. Ripple CEO Brad Garlinghouse hinted at a light at the end of the tunnel. He said the lawsuit would wrap up soon. No specific date, though. Talk about keeping us on our toes! Garlinghouse's comments lit a fire under XRP. The price jumped from under $0.58 to $0.65. Investors perked up. Daily trading volume spiked 14% on Wednesday, crossing $2.36 billion. The crypto community is buzzing with anticipation. Many expect XRP to rally once the lawsuit concludes. It's been a long four years in the legal trenches. One analyst, Common Sense Crypto, is particularly bullish. They reckon the end of the legal saga could push XRP to a whopping $100. That's some serious optimism right there. But let's not get ahead of ourselves. The crypto world is as unpredictable as ever. XRP's July performance was impressive, no doubt. But in this game, today's underdog can be tomorrow's top dog.

Block Inc, Jack Dorsey's payment powerhouse, is on a roll. Its Bitcoin revenue hit $2.61 billion in Q2 2024. That's a 9% jump year-on-year, a pretty nice result for one of the most prominent Bitcoin maximalist. Yes, that's who Jack Dorsey, ex-chief of Twitter, really is nowadays. Total net revenue? A cool $6.16 billion. Up 11% from 2023. Block's bread and butter isn't just Bitcoin. Strip that out, and revenue still climbed 13% to $3.54 billion. Cash App, Block's mobile payment service, is killing it. It raked in $4.13 billion. Bitcoin transactions alone netted $67 million in gross profit. That's up 52% from last year. Why the surge? Bitcoin's price, mostly. The crypto's been on a tear, up over 45% in 2024. It's trading at $64,777 as we speak. Block's not just facilitating trades. They're hodling too. They've got 8,211 BTC on their books. That's worth $515 million. But it's not all sunshine and rainbows. Block took a $70 million hit on their Bitcoin holdings. Still, things are looking up. Total gross profit jumped 20% to $2.23 billion. Net income? $195 million. That's nearly double last year's $102 million. Block's got big plans. In May, they announced a $2 billion debt offering. They're sitting on a $10.3 billion war chest. What's the endgame? Debt repayment, acquisitions, strategic moves. Block's not messing around. The crypto rollercoaster's been good to Block. But can they keep the momentum going? Only time will tell.