Coin360 Daily Dispatch | Crypto Market Updates & Highlights | April 25, 2024

This article comes to you with the generous support of Xtreme.game. Discover the excitement and rewards that await you at Xtreme.game with a 100% deposit bonus!

Crypto Market Update

Table of Contents

Crypto Market Overview

• Cryptocurrency Market Experiences Major Downturn
• Spot Ether ETFs Likely Denied Amid Bearish Outlook
• Post-Halving Satoshi Sells for Over $2 Million

Regulatory and Compliance News

• Samourai Wallet Founders Arrested by U.S. Authorities
• EU's New AML Regulations to Impact Crypto Providers
• Bipartisan Stablecoin Legislation Announced in the U.S.

Exchange and Platform Updates

• Visa Introduces Analytics Dashboard for Stablecoins
• Chivo Wallet Refutes Hack and Data Leak Claims
• BNB Chain to Launch Native Liquid Staking

Banking and Investment Insights

• Morgan Stanley to Offer Bitcoin ETFs to Clients?
• Turkey Leads Global Stablecoin Purchases

Technological and Operational Developments

• Merlin Chain Experiences Explosive Growth in Bitcoin Layer-2
• Proposal for Smart Contract Functionality on Bitcoin Network
• Bitcoin Miner Revenues Drop Post-Halving
• Avail to Partner with Major Ethereum Layer-2 Networks

Venture Capital and Funding

• Movement Labs Secures Funding for Ethereum Enhancements
• Ethereum Verification Protocol Raises $20 Million

Community and Cultural Impact

• Crypto Influencer Spreads False WW3 News
• Andreessen Horowitz CTO Criticizes Meme Coins
• Renzo Adjusts Airdrop Allocation Amid Community Feedback

High-Value Transactions and Auctions

• Alien Punk CryptoPunk Sells for Over $12 Million
• "Buy Bitcoin" Notepad Auctioned for 16 BTC

Cryptocurrency Market Experiences Major Downturn

The cryptocurrency market is experiencing significant outflows and a downturn in trader confidence, influenced by multiple factors including macroeconomic uncertainty, legal actions against crypto entities. Persistent concerns over U.S. interest rates and inflation have dampened market optimism, causing major cryptocurrencies like Bitcoin and Ethereum to decline. The recent charges against Samourai Wallet founders have exacerbated market fears, contributing to a pullback in Bitcoin recovery. 

Furthermore, the anticipation surrounding the Bitcoin halving has not sustained bullish momentum, with spot ETF inflows decreasing sharply. On April 24, eight Bitcoin ETFs reported zero inflows, with BlackRock's IBIT fund seeing its first non-inflow day. The overall sentiment is cautious, with reduced trading volumes and a wary outlook on upcoming regulatory and economic developments. BTC once fell to as low as $63,000 before recovering to $64,600 at the time of writing.

Spot Ether ETFs Likely Denied Amid Bearish Outlook

The U.S. SEC is likely to deny the approval of spot Ether ETFs next month, with discussions indicating a lack of substantial details being shared with issuers, according to new reports. This follows the approval of spot Bitcoin ETFs after a court victory by Grayscale Investments. 

Despite the bearish information, Justin Sun has transferred roughly $500 million worth of Ethereum to a wallet linked to him, highlighting confidence among large Ethereum holders despite recent price volatility. Ethereum has seen a $57 million purchase by whales even as its price faces downward pressure, illustrating the continuing influence and strategic positioning of major players in the market despite market conditions and immediate price movements.

Post-Halving Satoshi Sells for Over $2 Million

After mining the first post-halving satoshi, ViaBTC sold it for $2.13 million through an auction on CoinEx, revealing the potential value of individual sats. The Ordinals protocol enabled the identification and trade of sats, leading to the categorization of rarity levels. The "epic" sat, mined after Bitcoin's fourth halving, attracted considerable interest, evidencing the growing significance of individual sats.  

Samourai Wallet Founders Arrested by U.S. Authorities

U.S. authorities arrested the founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, for operating a Bitcoin mixer involved in over $2 billion of unlawful transactions and facilitating $100 million in money laundering transactions from illegal dark web markets. Both face charges of conspiracy to commit money laundering and operating an unlicensed money transmitting business, with Rodriguez arrested in Pennsylvania and Hill in Portugal, pending extradition. The crackdown reflects increasing U.S. government action against crypto mixers, with significant implications for privacy and regulatory compliance in the cryptocurrency domain.

EU's New AML Regulations to Impact Crypto Providers

The European Union's new anti-money laundering regulation (AMLR) will impact crypto asset service providers (CASPs), introducing enhanced due diligence measures and requiring customer due diligence for transactions above €1K. The legislation, not specific to crypto, aims to combat money laundering and terrorist financing, with CASPs being categorized as obliged entities under the broader AML/CFT framework.  

Bipartisan Stablecoin Legislation Announced in the U.S.

US Representative Maxine Waters announces bipartisan consensus on stablecoin legislation, reflecting prolonged negotiations and collaboration. The bill, under discussion for nearly two years, prioritizes investor protection and market stability. Input from key financial authorities enhances credibility with asset-backed guarantees. Complementary legislation by Senators Gillibrand and Lummis indicates broader cryptocurrency oversight push.  

Visa Introduces Analytics Dashboard for Stablecoins

Visa's new Online Analytics Dashboard for stablecoins aims to simplify complex data. By filtering out bot activity and adjusting transaction volumes, the platform provides clear insights, offering information on stablecoin supplies, transactions, and users. Visa's commitment to blockchain and stablecoin adoption, along with its collaborations and support for USDC, signifies its deep involvement in the crypto space.  

Chivo Wallet Refutes Hack and Data Leak Claims

Chivo wallet, El Salvador's official cryptocurrency wallet, refutes allegations of a hack compromising the personal data of 5+ million Salvadorans linked to its KYC processes. It denies data leakage, attributing a recent source code hack to a stolen ATM incident. Chivo dismisses the reports as fake news, asserting the security and protection of user information.  

BNB Chain to Launch Native Liquid Staking

BNB Chain will introduce native liquid staking on BSC, replacing the closing Beacon Chain by June 2024. This move enhances network security and liquidity for users, supports DeFi activities, and aims to streamline operations while aligning with current technological needs. Liquid staking and MEV optimization will offer increased flexibility and rewards for BNB holders.  

Morgan Stanley to Offer Bitcoin ETFs to Clients?

Morgan Stanley reportedly plans to enable its 15,000 brokers to recommend bitcoin ETFs to clients, marking a potential first among its peers. This move follows SEC approval of 11 spot bitcoin ETFs earlier this year, with giants like BlackRock and Fidelity among the approved. Meanwhile, US pension plan managers are anticipated to significantly invest in bitcoin spot ETFs, influenced by the potential approval of a spot ether ETF. 

Turkey Leads Global Stablecoin Purchases

Turkey leads in stablecoin buying, with purchases representing 4.3% of its GDP, surpassing the U.S. at 0.5% and the EU at 0.3%. Stablecoin use, mainly Tether and USDC, accounts for over 50% of recent crypto transaction volume. Increased stablecoin purchases in various nations are attributed to local currency instability and devaluation.  

Merlin Chain Experiences Explosive Growth in Bitcoin Layer-2

Merlin Chain's Bitcoin layer-2 has experienced remarkable growth, surging by 2,000% in the past month to over $1 billion in total value locked. This positions Merlin as the largest Bitcoin sidechain, surpassing well-established layer-1 blockchains. The protocol integrates zero-knowledge proofs with Bitcoin's blockchain to enhance transaction privacy and efficiency.  

Proposal for Smart Contract Functionality on Bitcoin Network

The proposal to introduce OP_CAT, a smart contract functionality to Bitcoin, has been assigned BIP 347, marking the first step toward its potential implementation. Proponents seek to enable more complex applications and multi-signature setups on the Bitcoin network through the use of "covenants." The community debate on the proposal's future is imminent.  

Bitcoin Miner Revenues Drop Post-Halving

Bitcoin miner revenues plunged by 40% to $63.6 million post-halving as Runes hype faded. The halving event halved new Bitcoin issuance, causing a temporary surge in miner earnings which quickly dropped. Transaction fees hit an unprecedented $80 million on halving day, but have since normalized to 35% of total revenue. The hash price has fallen to $0.07 per TH/s, prompting sustainability concerns for mining operations. Leading companies like Riot Platforms and Marathon Digital Holdings are focusing on expansion and consolidation to navigate the challenging conditions.  

Avail to Partner with Major Ethereum Layer-2 Networks

Avail, self-claimed leader in data availability, will integrate with major Ethereum layer-2 networks (Arbitrum, Optimism, Polygon, StarkWare, zkSync). Users can opt in for streamlined data storage. Avail prepares for a token airdrop and expands with Nexus to connect rollups. The team emphasizes production readiness, promoting efficiency and security within the blockchain ecosystem.  

Movement Labs Secures Funding for Ethereum Enhancements

Movement Labs raised $38M in Series A funding to develop Move-EVM for Ethereum, aiming to enhance smart contract security and transaction throughput. Their Move VM-based layer-2 solution, M2, achieves over 30,000 TPS. The company also plans a cross-compatible execution layer, Move Stack, and supports localized fee markets for reduced gas spikes and resource expenditure.  

Ethereum Verification Protocol Raises $20 Million

Aligned Layer, an Ethereum verification protocol, secured a $20 million Series A funding led by Hack VC. The funding included contributions from DAO5, L2Iterative, NomadCapital_io, FinalityCap, Symbolic VC, and Theta Capital. Aligned Layer's EigenLayer technology facilitates faster and cheaper zero-knowledge (ZK) proofs, enhancing code verification and application development on Ethereum.

Crypto Influencer Spreads False WW3 News

Crypto influencer Matt Wallace shared a debunked CGI video falsely portraying the start of World War 3, gaining 22.5 million views. His past involvement in rug-pulling schemes with Dogecoin and Accept Doge drew criticism. Wallace's sensationalist rebranding focuses on breaking news, including misleading content like the debunked WW3 footage and false COVID-19 vaccine claims.  

Andreessen Horowitz CTO Criticizes Meme Coins

Eddy Lazzarin, CTO of Andreessen Horowitz, compares meme coins to a risky casino, believing they harm crypto's long-term vision. Meme coins' popularity diverts attention from real innovation. While some hedge funds invest, Lazzarin warns of the negative impact on adoption, regulation, and entrepreneurship. He emphasizes the need for the industry to prioritize genuine progress over meme-based speculation.  

Renzo Adjusts Airdrop Allocation Amid Community Feedback

Liquid restaking platform Renzo responded to community backlash by adjusting its airdrop allocation, increasing it from 5% to 7% in the first phase. The protocol plans to distribute 12% of its 10 billion token supply through user airdrops. Renzo rescheduled its claim date to coincide with the upcoming REZ token listing on Binance, generating significant market interest.