Several key developments in various altcoin projects are set to potentially influence cryptocurrency market dynamics this week. This week's focus is on Ripple (XRP), Polygon (MATIC), and Avalanche (AVAX) along with its associated GameFi project, Shrapnel (SHRAP).
#1 XRP: Ripple awaits crucial legal developments
As February 12 approaches, the XRP community is eagerly awaiting the next developments in the ongoing lawsuit against Ripple-SEC. This date marks the deadline for the discovery phase of related remedies, which requires a ruling by Judge Torres on the SEC's motion to compel.
The motion, filed on January 11, seeks Ripple's financial statements for 2022 and 2023 and details of post-complaint contracts with institutions. Ripple's Jan. 19 response argued that disclosure of these contracts could lead to unnecessary legal scrutiny of its post-complaint institutional sales.
The SEC, in its Jan. 23 response, downplayed the possibility of a mini-trial and noted that Ripple had already cataloged post-complaint sales contracts through June 2023 in a separate legal matter (Zakinov v. Ripple). Ripple responded to this, stating that the SEC's statement on cataloging and production was misleading.
This developing legal dynamic could significantly influence the performance of the XRP market over the next week. At press time, XRP was just above the crucial support at $0.4989 (0.786 Fib retracement level).
#2 Polygon (MATIC) prepares for Etrog upgrade
Polygon is on the verge of a major upgrade, transitioning its zkEVM to a ZK-EVM Type 2. Scheduled for February 6, the Etrog upgrade, currently available for testing on the new Sepolia-anchored Cardona testnet, promises improved compatibility and efficiency for both crypto developers and users.
This update will allow developers to deploy their code on Polygon zkEVM exactly as it is on ethereum. Additionally, it will introduce five additional pre-built smart contracts, improving EVM equivalence and making it easier to deploy existing dApps without modifications.
It also restructures transaction batch processing to increase network efficiency. Notably, the Etrog update follows Polygon's governance model, which includes a 10-day time lock period. This allows users to verify the update and withdraw their crypto funds if they wish. The time lock was activated on January 27 and ends on February 6.
The upcoming Polygon zkEVM update will effectively turn the network into a ZK-EVM Type 2. What does that mean for developers? It means you can deploy your code on Polygon zkEVM exactly as it is on ethereum – just copy, paste and go, no modifications necessary.
The 10 days… pic.twitter.com/GThNxj7V6F
– Polygon Foundation (@0xPolygonFdn) January 27, 2024
At press time, MATIC was trading at $0.7825, just above the 200-day EMA. If this support holds, the resistance at $0.7932 (Fibonacci retracement level) could be the next target.
#3 Avalanche (AVAX) / Shrapnel (SHRAP) prepare for crypto GameFi launch
Avalanche's highly anticipated GameFi project, Shrapnel, developed by Neon Machine (a spin-off from HBO Interactive), will begin early access on February 8. This blockchain-based shooter has already attracted a lot of attention in the crypto space with a successful gross of $7. million token sales, attracting investments from notable entities such as Dragonfly, Three Arrows Capital, and notable angel investors.
Shrapnel presents an engaging game concept in which players, as mercenaries, compete for a resource known as compound sigma. The in-game economy leverages NFTs, allowing players to create, mint, and trade in-game items and maps. Additionally, the SHRAP token plays a central role in the transactional, governance, and participation aspects of the game.
STX1 – Launch Alert!
WEN? Our first STX event (STX1) starts on February 8th and concludes on February 10th.
Get ready for intense competition with a $100,000 STX1 prize pool at SHRAP thanks to @RNGFoundation – extract Sigma and dominate the leaderboard!
Unlock exclusive… pic.twitter.com/0vLgR0onjN
— METRALA
(@playSHRAPNEL) January 29, 2024
While still in its nascent stages, Shrapnel's unique integration of gaming and blockchain technology could impact SHRAP and AVAX prices in anticipation of its launch. In recent weeks, AVAX has gone through a consolidation phase after a strong rally. Now, AVAX price is targeting a break above 0.236 Fib to $41.92.
