Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 22, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin briefly crossed $61,000 amid dovish FOMC signals
• Spot Bitcoin ETFs saw $39.42M inflows; Ether ETFs struggle
• AVAX surged to $25 after Grayscale's Avalanche Trust launch
• Tron's SunPump outpaces Solana's Pump.fun in token launch

Blockchain Developments

• Coinbase supports MATIC to POL upgrade, boosting token values
• FTX reorganization plan gains 95% approval from creditors
• Former Binance CEO CZ moves to a residential reentry facility

Security and Regulatory News

• WazirX canceled orders after $230M exploit, faces backlash
• Coinbase offers fee-free euro-to-EURC conversions for users
• Near Protocol's Nightshade 2.0 boosts transaction speed by 400%
• TON Society enhances TON ecosystem with onchain ID system

Stablecoin and Institutional News

• Anchorage Digital introduces PYUSD reward program for institutions
• Bitcoin transaction fees spiked after native BTC staking launch
• Conduit launches marketplace to boost scalability for rollups

Crypto Project Launches and Promotions

• Donald Trump promotes family crypto project, "The DeFiant Ones"
• Magic Eden to launch ME Token for cross-chain trading

Bitcoin briefly crossed $61,000 amid dovish FOMC signals

Bitcoin briefly crossed $61,000 following the release of dovish FOMC minutes suggesting a potential September rate cut, sparking a $2 billion surge in Open Interest. Some news outlets reported late Wednesday that Robert Kennedy Jr. was planning to drop out of the U.S. presidential race by the end of this week and would endorse Donald Trump, who has positioned himself as a pro-crypto president if elected. 

However, investor preference remains tilted towards stocks and bonds amid economic uncertainty, with Bitcoin struggling to maintain momentum. The market faces key resistance at $62,000, with liquidity pressures signaling a possible short squeeze. Meanwhile, Bitcoin's price recovery coincides with increased miner sales through OTC desks, signaling potential bearish pressure, though some analysts remain cautiously optimistic about a further price surge to $72,000.

Spot Bitcoin ETFs saw $39.42M inflows; Ether ETFs struggle

The spot Bitcoin ETFs saw strong positive flows on Wednesday, totaling $39.42 million, with significant inflows for Grayscale's mini Bitcoin trust at $14.2 million. Fidelity, Bitwise, BlackRock's IBIT, Franklin Templeton's EZBC, and Invesco's BTCO also received notable inflows. However, Grayscale's converted GBTC fund was the only one with outflows. Conversely, Ether ETFs faced continuous net outflows.

AVAX surged to $25 after Grayscale's Avalanche Trust launch

AVAX saw a rebound as Grayscale and Franklin Templeton announced new blockchain initiatives on the network. The price surged to $25 following Grayscale's launch of the Avalanche Trust, offering direct exposure to AVAX. Franklin Templeton expanded its on-chain money market fund to Avalanche, aiming to enhance access and innovation in blockchain finance. Despite recent market challenges, AVAX remains down 82% from its peak in November 2021, yet continues to lead in real-world asset tokenization through strategic partnerships.

Tron's SunPump outpaces Solana's Pump.fun in token launch

Tron’s SunPump outpaced Solana’s Pump.fun, launching 7,352 tokens in 24 hours. Justin Sun considers reducing Tron fees to boost transactions to 20M+ daily, aiming for $3-4 billion revenue. An anonymous trader turned $1,000 into $750,000 with the SunWukong memecoin. Despite skepticism, Tron’s liquidity and growth continue to dominate the market.

Coinbase supports MATIC to POL upgrade, boosting token values

Coinbase announced support for Polygon's token upgrade from MATIC to POL, causing a more than 10% surge in token values. Starting August 26, Coinbase will facilitate the migration, disabling MATIC transactions on Polygon until September 10. They plan to support trading and Ethereum network integration for both MATIC and POL. This move aligns with Polygon's strategy to enhance network efficiency and utility through its new token, POL, which will play a crucial role in staking and network security.

FTX reorganization plan gains 95% approval from creditors

FTX has reported significant support for its reorganization plan, claiming over 95% approval from creditors who have already voted. This includes 99% of the total voted claims by value, signaling strong backing for the plan. The amended plan promises a full repayment plus interest for non-governmental creditors. FTX intends to finalize these results ahead of a court hearing scheduled for October 7, aiming to meet all necessary acceptance thresholds under US bankruptcy regulations. 

Former Binance CEO CZ moves to a residential reentry facility

Former Binance CEO Changpeng Zhao (CZ) has transitioned from FCI Lompoc II prison to RRM Long Beach, a residential reentry management facility. Despite this move, he remains under custody, not yet free. Misinterpretation led to speculation of early release, but CZ is slated for full release on September 29, amidst ongoing legal challenges including recent allegations of lax anti-money laundering controls at Binance. Binance is ramping up its compliance efforts with plans to hire 1,000 employees in 2024, aiming to expand its compliance workforce to 700. Annual spending on compliance has exceeded $200 million, reflecting heightened regulatory scrutiny. 

WazirX canceled orders after $230M exploit, faces backlash

WazirX recently canceled all open orders, returning reserved INR and crypto assets to users amid efforts to resolve balance issues following a $230 million exploit in July. The exchange faced backlash for its recovery strategy and froze trading temporarily. Mandiant confirmed no compromise of WazirX laptops during the attack.

Coinbase offers fee-free euro-to-EURC conversions for users

Coinbase will introduce fee-free conversions between euros and EURC, a stablecoin compliant with EU's MiCA regulation, starting August 28. Users can swap euros for EURC at a 1:1 ratio on Coinbase Advanced, promoting easier access to stablecoin benefits. This move aligns with MiCA guidelines, ensuring regulatory compliance and enhancing trading options for European users. Additionally, Coinbase plans to launch a EURC-USDC order book on August 29, further bolstering its position in the European crypto market.

Near Protocol's Nightshade 2.0 boosts transaction speed by 400%

Near Protocol has launched its Nightshade 2.0 upgrade on mainnet, aiming to enhance node efficiency and transaction speed by 400%. This upgrade introduces stateless validation, reducing validator operational costs and improving scalability with a sharded architecture. Near anticipates increasing shard capacity and accelerating transaction throughput, signaling a significant advancement in blockchain scalability.

TON Society enhances TON ecosystem with onchain ID system

TON Society, launched by former TON Foundation executives, aims to enhance decentralization and community involvement within The Open Network (TON) ecosystem. Led by Jack Booth and Ekin Tune, the initiative introduces an onchain ID system to foster member engagement and governance. Additionally, TON Ventures, a $40 million fund, supports early-stage projects to boost innovation and ecosystem growth.

Anchorage Digital introduces PYUSD reward program for institutions

Anchorage Digital has introduced a new reward program for PYUSD holders in celebration of the stablecoin nearing a $1 billion market cap milestone. This initiative targets institutional investors using Anchorage's services or its self-custody wallet, Porto. Unlike typical programs involving rehypothecation or staking, this program allows participants to earn rewards while maintaining full asset accessibility and segregation. With PYUSD's recent surge on the Solana blockchain, where its supply has grown by 60% to nearly $960 million, this move aims to further enhance the stablecoin's utility and appeal to institutional users.

Bitcoin transaction fees spiked after native BTC staking launch

Bitcoin transaction fees surged to $132 early Thursday following the launch of native BTC staking on Babylon. Users rushed to participate, causing a temporary spike in fees. This new staking feature aims to enhance Bitcoin's utility and attract more users to participate in network activities. However, high fees during such events can deter smaller investors and users, impacting accessibility and transaction affordability.

Conduit launches marketplace to boost scalability for rollups

Conduit, backed by Paradigm, has launched a marketplace aimed at enhancing scalability for rollups. Following a $37 million funding round in June, the startup introduced a platform featuring 48 partners. This marketplace facilitates seamless integration for rollup teams, potentially saving 3 to 6 months in deployment time.

Donald Trump promotes family crypto project, "The DeFiant Ones"

Donald Trump promoted a family crypto project, “The DeFiant Ones,” on Truth Social, signaling a deeper engagement with DeFi. Meanwhile, on Polymarket, Trump's odds rose to 53%, while Kamala Harris stood at 46%. Trump’s strong crypto stance, including opposition to SEC policies and support from the crypto community, contrasts with Harris's limited crypto engagement.