Decentral Block Post

Solana (SOL) tumbled on June 16 amid a broader retreat across the top cryptocurrencies, led by the Federal Reserve's 0.75% interest rate hike a day before.

Solana price rebound fizzles

Notably, SOL/USD plunged nearly 17% to $30 a token, wiping out almost all the gains from the day before. The SOL price volatility liquidated almost $10 million worth of contracts in the past 24 hours across multiple crypto exchanges, data from Coinglass shows. 

The latest declines come as an extension to SOL's broader correction, where it dropped by more than 90% after peaking out near $267 in November 2021. SOL also fell to its lowest level since July 2021 near $25.

In addition, a higher interest rate environment and the collapse of high-profile crypto projects like Terra have strengthened SOL's downside prospects. 

SOL paints "ascending triangle"

Solana's pullback move on June 16 began after testing a horizontal trendline resistance near $34 that constitutes what appears to be an "ascending triangle" pattern.

Can a fully-functional oracle network ecosystem that anonymously collects and validates geospatial (location-specific) data exist? One blockchain firm seems to have gotten the gist of the idea. Founded in 2012, XY Labs and its namesake protocol XYO, which is built on the Ethereum blockchain, seek to reward participants for the genesis, interpretation, analysis and storage of data to be called upon for specific problems. There are currently over 4 million nodes worldwide on the XYO network. 

In a recent ask-me-anything (AMA) session with Cointelegraph Markets Pro, Arie Trouw, founder of XY Labs, explained that fundamental to the XYO system is a special type of payload called BoundWitnesses. It contains a list of user-input data points that are signed by one or more nodes in the XYO network. They can be modified to include time, date, and location, and be signed by nodes as to reflect the certainty of the embedded data.

"The job of an oracle is to provide an answer with as much certainty as possible. We use blockchain to memorialize these answers and provide transparency into the process of creating the solutions by linking to supporting data using immutable hashes."

To ensure security, BoundWitnesses only shares the hashes of payloads while keeping the payloads themself private. Each node has its own blockchain, and with BoundWitnesses, those blockchains are linked together and, as a whole, provide one reflection of the imperfect data of reality. Since its inception, over 77.4 million BoundWitnesses and 244.7 million payloads have been submitted to the XYO Main Net.

Together with the firm's COIN mobile application, which rewards users for data collection and production and the XYO token as a payment channel, a fully-functional marketplace is born where users can exchange data for incentives. There are approximately 12 billion XYO tokens with no fixed supply. Factors such as token inflation and burn mechanisms will affect its supply-side tokenomics.

Bitcoin (BTC) ran out of steam near $23,000 on June 16 after the biggest United States key rate hike in nearly thirty years.

Dollar strength wobbles after rate hike news

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching highs of $22,957 on Bitstamp after the Federal Reserve confirmed a 0.75% hike in June — its largest since 1994.

Momentum did not last long, however, and at the time of writing, the pair had shed $2,000 to return to $21,000 at the new Wall Street open.

Popular trader Crypto Tony eyed the U.S. dollar on the back of the Fed's decision, with an about-turn in USD strength key to a possible Bitcoin bottom.

The U.S. dollar index (DXY), after spiking to twenty-year highs again after the announcement, began retracing through June 16.

The core principles of cryptocurrency were based on financial independence, decentralization and anonymity. With regulations being the key to mass adoption, however, the privacy aspect of the crypto market seems to be in jeopardy.

In 2022, even though no particular country has come up with a universal regulatory outline that governs the whole crypto market, most countries have introduced some form of legislation to govern a few aspects of the crypto market such as trading and financial services.

While different countries have set different rules and regulations in accordance with their existing financial laws, a common theme has been the strict implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

A majority of crypto exchanges operating with a license obtained from the government body or government-affiliated bodies have discouraged any form of anonymous transactions. Even in countries where there is no particular law on privacy coins, there is a ban on private transactions over a certain threshold.

The governments of the United States and the United Kingdom have also demanded regulatory action against the use of coin mixing tools, a service used to obscure the origin of a transaction by mixing it with multiple other transactions.