April 5 Crypto Report: What You Missed

Crypto News- Thinking that mining profitability will drop after the Bitcoin halving? Think again, says an insider interviewed by Cointelegraph. Reports indicate Solana’s non-vote transaction failure rate has soared to a record 75%, leading to a less-than-stellar user experience. Meanwhile, memecoins have taken center stage in the 2024 crypto bull market frenzy.

Contrary to expectations, Bitcoin mining profitability might not plummet after the upcoming halving event, according to Laurent Benayoun, CEO of Acheron Trading, as reported by Cointelegraph. Despite a 50% reduction in Bitcoin’s supply issuance, Benayoun believes that miners won’t necessarily be worse off due to a compensatory surge in network fees.

April 5 Crypto Report: What You Missed

The Bitcoin halving, slated to slash block issuance rewards from 6.25 BTC to 3.125 BTC on April 20, has historically pushed smaller mining operations out of business. However, Benayoun argues that this time around, the rise in network fees, fueled by initiatives like Ordinals inscriptions and Bitcoin-native DeFi (BTCFi), could counterbalance the reduction in block rewards. He noted the emergence of NFTs and DeFi projects on the Bitcoin blockchain as factors contributing to increased network fees.

Solana Struggles: Record High Failure Rate in Non-Vote Transactions

Meanwhile, Solana has been grappling with a staggering 75% failure rate in non-vote transactions, fueled by a surge in activity linked to the memecoin craze. Despite claims that the data is misconstrued, reports from Dune Analytics reveal the highest failure rate on record as of April 4. Social media platforms have been inundated with complaints from Solana users about transaction failures and deteriorating user experiences.

Although some remain optimistic about Solana’s potential for retail adoption, such as Altcoin Sherpa, who described the current user experience as “brutal,” others like Mert Mumtaz, CEO of Helius, refute claims of widespread transaction failures, attributing most failures to “bot spam.”

In the midst of these developments, memecoins have surged to unprecedented popularity, attracting a surge in traders and investors. Market intelligence firm IntoTheBlcok reports a record high in the number of wallet addresses holding memecoin tokens for under 30 days. Memecoins have been dubbed “the most profitable crypto narrative” of 2024 by CoinGecko, boasting average returns of 1,312.6% in Q1. Notable projects like Dogwifhat (WIF) and Book of Meme (BOME) have led the charge, with social media flooded with stories of traders turning modest investments into multimillion-dollar fortunes.