Here’s what happened in crypto today
Today in crypto, Coinbase CEO Brian Armstrong has called for US government spending to be done transparently on the blockchain, a crypto venture capitalist says the crypto market may be “near the bottom,” and tokens and coins on CoinMarketCap near 11 million unique listings.Coinbase CEO calls for blockchain-based US TreasuryElon Musk’s Department of Government Efficiency (DOGE) has saved US taxpayers $36.7 billion, prompting calls from crypto industry leaders for greater transparency in government spending through blockchain technology.According to Doge-tracker data, the savings represent just 1.8% of Musk’s goal to reduce US government spending by up to $2 trillion. Musk outlined this vision during a Jan. 9 interview with political strategist Mark Penn.Applauding the Musk-led agency’s progress, Brian Armstrong, Coinbase’s co-founder and CEO, took to social media to call for more transparency around government spending.“Great progress DOGE,” Armstrong wrote in a Feb. 9 X post.The distributed blockchain can offer a more transparent foundation for financial systems since decentralized blockchain ledgers are publicly verifiable in real time by anyone with an internet connection.A potential blockchain-based treasury could also implement mandatory spending proposals, which would only allow a certain transaction if the majority of the population voted on it.Crypto VC mulls whether market is “near the bottom”A crypto venture capitalist said the market may be nearing a local bottom, citing extended negative funding rates and widespread bearish sentiment — which he says is “often the best signal.”“I might be early, but it feels like we’re near the bottom,” Hartmann Capital founder Felix Hartmann said in a Feb. 8 X post.Hartmann said that crypto funding rates — payments that help keep trading fair by aligning futures and spot market prices — have been “negative for a while,” meaning there are more sellers than buyers.Sustained negative funding rates can signal bearish sentiment among traders, hinting at a market bottom and the potential for a near-term rebound.Hartmann also said “quality alts” have retraced to long-term trendlines, “wiping out” most of the gains made in Q4 2024.In December 2024, Ether (ETH) traded above $4,000, with speculation it could be on its way to retesting its November 2021 all-time high of $4,878. However, the asset has since pulled back to $2,639 at the time of publication.Solana (SOL) reached new all-time high of $295 on Jan. 19 but has since pulled back to $201.15 at the time of publication.Total cryptocurrencies listed on CoinMarketCap near 11 million unique offeringsThe total number of crypto tokens and coins listed on CoinMarketCap is nearing 11 million unique digital asssets.Traders and investors have raised concerns about the proliferation of cryptocurrencies and the effect on markets, which analysts argue are already overcrowded.Popular market trader and analyst Ali Martinez predicted that the over-saturation in cryptocurrencies might cancel out the anticipated rotation of capital into altcoins and the sustained price rally known as altcoin season.As the total supply of unique cryptocurrencies grows, so will the strain on mindshare and limited capital flowing in the space — potentially causing projects and tokens to consolidate.