Crypto markets were mixed Tuesday morning, with some cryptocurrencies rising higher and others falling. This is in contrast to trends over the past few weeks, where crypto assets have consistently amplified the market’s movement either up or down.
coin base (COIN -2.85%) Down as much as 5.4% in early trade and is still down 2% as of 11:30am ET. Two of the big climbers in crypto were ApeCoin (MONKEY -0.79%)which climbed up to 9.8% in a rapid jump, and Stellar Lumens (XLM 2.15%)which increased by 10.5%.
On the other hand, it has been reported that cryptocurrency market maker Wintermute has lost $160 million in a hack by the decentralized finance company. Management said over-the-counter services were unaffected and the company remained solvent.
There was also some small but overall significant news from the industry. Solana NFT project Okay Bears signed a global licensing deal with IMG, which represents actors and other media stakeholders. This is another step into the mainstream for crypto and NFTs.
Colorado also announced that its residents could use cryptocurrency to pay their taxes PayPal.
ApeCoin is specifically awaiting stake for the token. It’s not clear when staking will be available, but Horizen Labs, which was chosen to provide the staking platform, is hosting one Twitter Room to discuss updates on Thursday September 22nd.
Coinbase could be down for announcing a lower fee structure yesterday. Less trading is required to reach lower fee levels, and the fees themselves have fallen slightly, which could hurt crypto exchange earnings.
Finally, FTX founder Sam Bankman-Fried’s trading firm Alameda said it will repay a $200 million loan to Voyager, which is in bankruptcy. This continues the slow and steady de-risking of the crypto market over the past six months.
This might seem like a jumble of news, but I think all of these things point to a mature crypto industry. Big companies are taking crypto more seriously, states are accepting crypto, and fees are falling as the industry matures.
All of these trends bode well for the future of cryptocurrencies and the companies that are being built in the industry. What’s still worrying is that hacks remain the order of the day. There may still be a long way to go to develop more durable technology that is safe for users, but that was the case even in the early days of the internet.
However, I don’t think this should change investors’ thesis about cryptocurrencies in the long term. It will likely be years before Congress or regulators come up with clear rules for the industry to abide by, and there’s still a lot of internal maturing to do. But this is still an asset class to be bullish on, and that’s why I remain bullish today.
Travis Hoium has positions in Coinbase Global, Inc. and PayPal Holdings. The Motley Fool has positions in and recommends Coinbase Global, Inc., PayPal Holdings, and Twitter. The Motley Fool has a disclosure policy.