Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 1, 2024

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Crypto Market Update

Table of Contents

Bitcoin and Ethereum Market Updates

• Bitcoin hits two-week lows amid market volatility
• Grayscale Ethereum Trust sees significant net outflows
• Tether pauses Bitcoin purchases despite $1.3 billion profit
• Mt. Gox creditors prefer holding BTC despite repayments

Trading Platforms and Exchanges

• Futu Securities launches Bitcoin and Ether trading
• Coinbase’s Base blockchain hosts 80% of Uniswap traders

Global Developments and Trends

• Global crypto ETFs and ETPs see net increase in 2024
• $900 million in token unlocks set for August 2024
• Bitcoin Layer-2 projects raise $94.6M in Q2 2024

Legal and Regulatory Updates

• Do Kwon extradited to South Korea over $40B fraud

Stablecoins and Financial Health

• DWF Labs to enter stablecoin market with new asset
• Ripple and OpenEden introduce tokenized T-bills on XRPL
• Kujira token drops 40% amid market volatility

Investment and Funding News

• Ark Invest sells Coinbase shares to rebalance fund
• Morpho raises $50M in strategic funding round
• Binance Labs invests in Particle Network for interoperability
• DuelNow secures $11M for decentralized sports betting

Security and Network Operations

• Casper Network resumes operations post-security breach

Innovations and New Features

• Telegram launches in-app browser for Web3 access
• Raydium meme coin launch sees significant losses

Web3 and Gaming Initiatives

• Notcoin launches Web3 game with NFTs
• Manchester United introduces Web3 fantasy football game

Accelerators and Ecosystem Growth

• Aptos Foundation and OKX Ventures launch $10M accelerator

High-Profile Launches and Events

• Trump’s Bitcoin NFT sneakers sell out rapidly

Bitcoin hits two-week lows amid market volatility

After closing July with a modest 2.95% gain, Bitcoin experienced volatility, hitting two-week lows under $62,500 despite the Federal Reserve's dovish stance and the possibility of a September rate cut, which markets had already priced in at 100%. Cautious comments from Chair Jerome Powell on the possibility of a rate cut in September were compounded by escalating tensions in the Middle East. Some suggest that the US government's actions relating to Bitcoin could also be affecting its market performance. 

Despite the volatility, Bitcoin whales accumulated $5.4 billion worth of BTC in July, the highest since October 2014, signaling strong market confidence. Despite potential supply pressures from Mt. Gox distributions, the market remained stable. Analysts suggest a rate cut could enhance market liquidity and bullish sentiment for cryptocurrencies. 

Grayscale Ethereum Trust sees significant net outflows

On July 31, Grayscale's Ethereum Trust (ETHE) recorded $133.33 million in net outflows, while Grayscale's Ethereum Mini Trust (ETH) saw a seven-day inflow streak totaling over $200 million. Spot Ethereum ETFs saw a $77.21 million outflow on July 31, with Ether prices falling below $3,200. 

Ethereum ended up July with a 5.88% loss, holding firm at its $2,860 support level, with potential highs of $4,500 predicted after recent ETF approvals, which generated positive market sentiment and increased institutional interest. Bitcoin ETFs experienced their smallest net inflow on record, with just $0.3 million entering the market, per Farside data. Meanwhile, Grayscale's new BTC mini trust debuted positively, attracting an $18 million inflow on its first trading day. 

Tether pauses Bitcoin purchases despite $1.3 billion profit

Tether paused Bitcoin purchases despite a $1.3 billion Q2 profit, maintaining reserves at prior levels. Their financial report reveals $11.9 billion in net equity, $97.6 billion in US Treasuries, and $8.3 billion in USDT issuance, underscoring robust financial health amid market fluctuations.

Mt. Gox creditors prefer holding BTC despite repayments

As of July 31, 2024, Mt. Gox has returned 41.5% of the 140,000 BTC it owed, with 59,000 BTC distributed to creditors via Kraken and Bitstamp. Despite repayments, selling activity remains low as creditors prefer to hold BTC, reflecting confidence in its future value. Mt. Gox still holds 32,899 BTC ($2.1 billion), after transferring 33,960 BTC to BitGo. The creditor distribution scheme totals $9 billion, with the majority opting for BTC over fiat.

Futu Securities launches Bitcoin and Ether trading

Futu Securities, Hong Kong's largest online broker, has launched Bitcoin and Ether trading for its 22 million users. This move makes Futu Securities the first brokerage in Hong Kong to directly offer cryptocurrency trading to retail investors. The platform debuted the new trading options on July 23, reflecting a growing interest in cryptocurrencies among traditional financial institutions and retail investors alike. This development aligns with Hong Kong's ambitions to become a hub for crypto and blockchain innovation amidst evolving regulatory frameworks.

Coinbase’s Base blockchain hosts 80% of Uniswap traders

Coinbase's layer-2 blockchain, Base, now hosts 80% of Uniswap's active traders, surpassing Ethereum mainnet and Arbitrum with nearly 42 transactions per second (TPS). Launched in August 2023, Base has quickly gained traction among decentralized exchange users, benefiting from its integration with Coinbase's ecosystem and seamless fiat onramps.

Global crypto ETFs and ETPs see net increase in 2024

In the first half of 2024, global markets witnessed the introduction of 37 new crypto exchange-traded funds (ETFs) and exchange-traded products (ETPs), marking a significant uptick with a total of 877 new products launched. Despite 253 closures, this period saw a net increase of 624 products, highlighting growing investor interest and market dynamism in digital assets.

$900 million in token unlocks set for August 2024

In August 2024, significant token unlocks are set to release over $900 million worth of tokens into circulation. Key unlocks include Avalanche, with 9.54 million AVAX tokens; Wormhole, releasing 600 million tokens; Aptos, distributing 11.31 million APT tokens; The Sandbox, unlocking 205.59 million SAND tokens; and Arbitrum, releasing 92.65 million ARB tokens. These events, while increasing liquidity, pose both opportunities and challenges for traders and investors due to potential market volatility and strategic token allocations across various projects. Understanding these unlocks is crucial for navigating market dynamics effectively.

Bitcoin Layer-2 projects raise $94.6M in Q2 2024

Bitcoin Layer-2 projects have seen a significant funding surge, raising $94.6 million in Q2 2024, marking a 174% increase from the previous quarter. These solutions aim to boost Bitcoin's scalability and transaction efficiency, potentially sparking a bullish trend for Bitcoin and related tokens amid growing investor confidence in scaling technologies.

Do Kwon extradited to South Korea over $40B fraud

The Court of Appeal of Montenegro has finalized the extradition of Do Kwon to South Korea, rejecting the US request. Kwon, former CFO of Terraform Labs, faces allegations of a $40 billion crypto fraud linked to TerraUSD and Luna's collapse. This decision marks a significant legal move amidst ongoing international scrutiny over financial fraud in the crypto sector.

DWF Labs to enter stablecoin market with new asset

DWF Labs, a major crypto market maker, is set to enter the stablecoin sector with a new synthetic stablecoin. Managed by Andrei Grachev, the firm aims to introduce a CeDeFi asset offering high yields while maintaining asset flexibility. This move underscores growing institutional interest in stablecoins, which provide stability amidst crypto market volatility. Despite stablecoins like Tether and USDC dominating the $164 billion market, DWF Labs' entry reflects a trend of expanding use cases for stable assets, particularly in emerging economies facing currency instability.

Ripple and OpenEden introduce tokenized T-bills on XRPL

Ripple partners with OpenEden to introduce tokenized US Treasury bills (T-bills) on the XRP Ledger (XRPL), aiming to tap into Ethereum's dominant market share in tokenized Treasuries. OpenEden facilitates T-bill tokenization, attracting institutional clients with stringent compliance measures. The tokenized Treasury sector, led by Ethereum, exceeds $1.8 billion across various blockchains.

Kujira token drops 40% amid market volatility

Kujira token plummeted 40% to $0.57 from $0.97 as the Kujira Foundation liquidated leveraged positions, causing a cascade of sell-offs. The foundation’s attempts to boost liquidity and activity backfired amid market volatility, leading to automated liquidations of undercollateralized loans totaling $2 million. Kujira operates a decentralized finance platform within the Cosmos ecosystem, including a DEX and lending services.

Ark Invest sells Coinbase shares to rebalance fund

Ark Invest, led by Cathie Wood, resumed selling Coinbase shares, offloading 12,077 shares worth $2.7 million to rebalance its fund weightings. This move marks their second recent sale of Coinbase stock, aligning with their strategy to prevent any single holding from dominating their ETF portfolios beyond 10%. Despite Coinbase's stock price rising 30% year-to-date, it remains below its previous all-time high.

Morpho raises $50M in strategic funding round

Morpho, a leading crypto-lending protocol, has raised $50 million in a strategic funding round led by Rabbit Capital. The investment also involved major players like a16z crypto and Coinbase Ventures. Launched in 2022, Morpho's platform, Morpho Blue, facilitates high-yield investment opportunities and offers competitive borrowing rates, helping it reach a TVL of $1.74 billion.

Binance Labs invests in Particle Network for interoperability

Binance Labs has made a substantial investment in Particle Network, a prominent Layer 1 solution focused on integrating blockchain networks. This investment aims to enhance blockchain interoperability through innovations like Universal Accounts and Chain Abstraction. It supports global expansion, ecosystem development, and the upcoming launch of Particle Network's L1 Mainnet, addressing critical challenges in blockchain fragmentation and user experience.

DuelNow secures $11M for decentralized sports betting

DuelNow, an Arbitrum-based sports betting platform, secured $11 million in funding led by GEM Digital. It joins a wave of Web3 gambling investments amid surging activity on platforms like Polymarket. Built on Ethereum's layer-2 solution, DuelNow aims to offer decentralized betting with lower fees and higher payouts, targeting sports fans with plans for future expansions.

Casper Network resumes operations post-security breach

Casper Network has resumed operations post a security breach, with validators voting unanimously to restore full functionality. Enhanced security measures have been implemented to safeguard the network. The incident underscores the need for vigilance in the evolving blockchain landscape.

Telegram launches in-app browser for Web3 access

Telegram launched an in-app browser supporting decentralized webpages and a mini-app store in its July 31 update. This update allows users to access Web3 via Telegram's platform, integrating decentralized sites called TON Sites. The mini-app store offers features like sending Stars for in-app purchases and enhancing app discovery with previews and sharing options.

Raydium meme coin launch sees significant losses

Raydium's meme coin launch backfired with two tokens created; the first dropped 92% in 10 minutes, while the second fell 70% shortly after. Despite this, one trader turned $8,000 into $800,000 within an hour by trading CTO, netting a 94-fold profit, and made significant gains on another token, PFI, with a 30-fold increase.

Notcoin launches Web3 game with NFTs

Notcoin is launching a story-driven Web3 game with Lost Dogs and Getgems, integrating NFTs to enrich gameplay. Users can earn Notcoin tokens and a new in-game currency. The move aims to shift from a tap-to-earn model, focusing on deeper engagement. Despite challenges, NFTs are seen as enhancing user experience by promoting ownership within the game.

Manchester United introduces Web3 fantasy football game

Manchester United has teamed up with Tezos to introduce the Premier League's inaugural Web3 fantasy football game, allowing fans to manage virtual teams of their favorite players. Developed on the Tezos blockchain, "Fantasy United" integrates digital collectibles with interactive gameplay, enhancing fan engagement through real-time player stats and unique trading cards.

Aptos Foundation and OKX Ventures launch $10M accelerator

Aptos Foundation and OKX Ventures have launched a $10M accelerator aimed at nurturing projects on the Aptos blockchain. Partnering with Ankaa, the program offers venture support, mentorship, and exposure to OKX's network. Focused on sectors like DeFi and gaming, it aims to bolster ecosystem growth with strategic investments and operational guidance.