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Market Review
In the greater scheme of things, not too much has changed compared to the last week - Bitcoin basically keeps crabbing. Even the FOMC meeting yesterday didn’t lead to too much action as the FED did exactly what most people expected - a 0.25% raise of interest rates to 5.25%. Bitcoin is currently trading at 28,828$ and Ethereum is at 1,875$ - remaining without a clear up or downtrend, just taking out those that are overleveraged.
Bitcoin did have a strong reaction yesterday though, less due to the FED decision but more due to the ongoing regional banking crisis. If the crisis continues, this might be developing into a strong narrative for Bitcoin as a high-quality anti-dollar liquid play for investors - especially those in the traditional financial markets. Hence, we could see a much-needed inflow of liquidity from new players, which is likely to be beneficial for the price as well.
While we hope this narrative plays out, in the short-term we do expect to revisit the previous resistance around 25.5k and ideally bounce from there. Bulls would need a reclaim of 30k as soon as possible and we could see us moving towards 33.5k rather quickly, this might especially be likely when the banking crisis continues without impacting too much of the broader economy.
Looking further ahead, we just want to remind you that it is very likely that you will get better entries than now at some point this year. No uptrend lasts forever and with the current economic situation, a dip below current levels seems likely at some point in the year. Afterwards it’s up only towards the halving (would be nice, wouldn’t it). It remains a great opportunity to dollar-cost averaging into the markets and sell in 2025.
What else happened this week:
Coinbase is launching Coinbase International Exchange, because, well, fuck you Gensler
We have a sale on Coinlist again - CyberConnect is launching on May 18
It doesn’t look too good for MicroStrategy - liquidation of his BTC stack is on the table
Questing in Web3
First of all, this is no sponsored content. We just like the product. And we believe it’s a great way to start your crypto journey or develop a deeper understanding of some of the most important and innovative projects. The gamified approach really reminds us of our early World of Warcraft days back in 2005, with lots of questing and grinding to make it to the next level. I wish this existed when I joined the space in 2016 (however with the number of projects available back then, it would have gotten boring real quick)…
Sooo, what is Layer3 exactly?
By this point, you probably noticed already that Layer3 is not a new blockchain solution built on Arbitrum or Optimism, but a platform that enables anyone to discover and (re)discover web3. You can earn rewards, badges, and POAPs by completing quests on various topics such as Ethereum, NFTs, DeFi, DAOs, and more. You can also join a vibrant community of learners and creators on Discord and Twitter.
Beyond Ethereum - What chains are on Layer3?
Quite a few luckily. Hope we will see Starkware and other new & upcoming chains soon as well. Also, Testnets would be great…
Is it just for beginners?
Definitely not - we are in the space for 6+ years now and we learned a ton. Every day new quests come in and they often cover new projects that recently went live or are about to launch. Especially with new chains like ZkSync launching, you can find shiny new protocols on there that might be the next big thing in DeFi. Check the overview for ZkSync here.
Where to start?
If you just getting started, we recommend sticking to a low-cost blockchain, like Optimism, Arbitrum or Polygon. Those Ethereum transactions are just too expensive at the moment. Then pick whatever quest you like.
What does a quest look like?
Every Quest starts with a simple overview. Just like you see in the screen below:
In this task, you got introduced to SyncSwap and were asked to do some basic tasks on the dApp to properly test the dex. For every step, it will tell you exactly what to do and will track your actions using the blockchain and your linked wallet.
After the action, you can verify your action using the button on the bottom right and you will go to the next steps. After all steps are done, you will get your XP, might level up a bit, and can keep on questing!
Can you make money with it?
Yes and No. There is no money to be made directly (unless you put in some nice trades in one of the supported protocols during a quest. You will actually lose money on transaction fees. But, have you heard of airdrops ser? Wen airdrop? As you are testing these new protocols, you might be qualifying for an airdrop from these projects or even the blockchain itself (looking at you ZkSync). And while speaking of airdrops - make sure to read our recent piece on airdrops again!
Are there any alternatives to Layer3?
A few.
Zealy - Probably the closest to Layer3. Zealy offers the possibility for projects to create quests and tasks for its community, in exchange for e.g. Discord roles (that then might lead to other benefits).
Galxe - Galxe lets you earn POAPs and NFTs and secures your on-chain credentials through subgraph queries or static snapshots.
Guild - Community management for Crypto projects. You can earn roles in Discords and qualify for e.g. airdrops by doing certain tasks
Action for this week
In this section, we will summarise the main actionable items from each newsletter and other posts that are worth reading
Just have a look at Layer3 and do your first quest. It will be fun, promise.
Oh, and follow us on Twitter, we might have a nice promotion coming up there soon 👀
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