But first, let's go over the key events of the day (trying to make sure you don't miss anything significant):

• U.S. inflation fell to 4.9 percent in April, according to the Bureau of Labor Statistics.
• Crypto exchange OKX tightened KYC requirements and also reduced the withdrawal limit for KYC Level 1 from 200 BTC to $5000.
• OpenSea PRO added the PEPE meme coin payment.
• The BBC has filed a trademark application for the NFT and a metaverse based on the Doctor Who TV series.
• The fake PeckshieldSec account spread untrue information about Uniswap being hacked and called for the revocation of active permissions using the fake revoke.cash website.
• South Korea will create a liberalized blockchain economic zone – (IFEZ).

Today we talk about the banking crisis in the U.S. and yesterday's default in California as precursors to even bigger economic problems ahead. Against this backdrop, we discuss the consequences of meme-crazy mania on the leading BTC and Ethereum blockchains.

The best analysis of the U.S. economy

Crypto prophet Arthur Hayes has published a new article about the banking crisis and the advantages of Bitcoin. Apparently, a detailed analysis of the doom of the US banking system didn't please Medium, and the service banned the article. Censorship of economic views is something completely new. A copy of the deleted article can be found at this link.

"Binance review" summarizes Arthur's analysis this way:

"In the essay, Hayes compares the current situation in the US banking sector to friends splitting the bill at a nightclub and tries to answer the question: Who will pay for the banking crisis ignited by the Federal Reserve's deflationary policies?

Hayes suggests that the crisis will be solved "at the cost of the lives" of medium and small banks, which he refers to as "not big enough to fail." According to Hayes, their assets will be absorbed by the big systemic banks, which have guarantees from the US government to cover customers' deposit losses.

However, Hayes also notes that the real value of $ in the pockets of citizens will certainly decrease as the Fed turns its policy around. Hayes ultimately sees salvation in Bitcoin and gold as means of preserving value outside the banking system. He urges readers to "get your Bitcoin, and get out!" if American politicians do not let the banking system collapse."

BTC and Ethereum networks captured by meme-mania

Meanwhile, Bitcoin has its own problems: the phenomenon of super-high fees within the network continues. Yesterday, the fees at their peak were as high as $30 per transaction; today they're down to about $20. And even that seems unbelievable because earlier the fees were less than a dollar.

Ethereum has a very similar situation: transaction gas has gone up a lot. Memecoin mania seems to have the effect of "pushing out" the traditional Ethereum market: the number of ERC-721 tokens is dropping while the daily transfers of ERC-20 tokens are increasing significantly. This is a rather unusual situation!

The meme economy displaces traditional activity in BTC and Ethereum networks. It's hard to know yet whether this is good or bad for the future of these networks (but definitely bad for networks like Solana, which traditionally specialized in NFT). Each of the opposing sides sees a different ideal implementation of BTC, but we urge each situation to be viewed from a different perspective:

💲 Ideas

[1] 🔔 A new pump from $PEPE soon?

Analysts found that the whales have redeemed the recent DIP from $PEPE. Based on this fact, the assumption is that we are witnessing a typical phase of preparation for the "pump and dump" scheme.

A closer look reveals that the total purchase amount is about $5 million, which is quite a lot for this market (about $700 million in market cap). This article discusses some cyclic patterns in the $PEPE market typical for pump&dump and draws conclusions about the high probability of the next rise of this memecoin.

[2] 🔔 Starknet games and NFT rewards

Starknet is a Layer 2 decentralized network that allows Ethereum to scale securely and dApps to achieve unlimited scale for transactions and computation.

In the game StarkFighter, you can get 3 NFTs (and part of $12,000 as one of the best players). You need a Starknet ID to participate; you can mint it inside Braavos wallet. The deadline is May 19. If you've previously done quests with shields, you don't have to mint anything.

How to get NFTs:

• Level 1 - play once
• Level 2 - fly over 50 seconds in one game
• Level 3 - fly more than 100 seconds in one game

[3] 🔔 A hope for Cardano (ADA)

Over the past five months, the value of the Cardano token has doubled. And even now, there is a possibility for the price of $ADA to rise because the price of the token managed to break out of the channel of the falling trend. However, buyers were not able to gain a foothold above the powerful liquid level of $0.43.

As noted by analysts from P_S_trade, in yesterday's market decline, buyers managed to keep the price in an uptrend, which gives a ray of hope.

With that in mind, BTC sellers might try to take the price below $26600-27000 in the coming days to break through the stops of long positions, and the $ADA/USDT might also go down. If it does not fall below $0.327-0.34, it could trigger an extension of the price drop to $0.27 and below.

In a positive scenario, if $ADA can break through to $0.55 and then consolidate above $0.43, then the way opens to $0.80 and maybe even to $1.

🚨 Attention!

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