Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 26, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Bid Liquidity Drops Amid Price Weakness
• Ethereum Foundation's $96.9M Transfer Sparks Transparency Concerns
• Bitcoin Sees $543M Inflows After Powell's Rate Cut Hint
• Telegram Founder Arrested in France Over Serious Allegations

Meme Coins and Token Activity

• DOGS Meme Coin Drops 25%, Disrupting Major Exchanges
• Solana Faces Sharp Decline in Token Launch Activity
• Tron Raises Energy Cap to Combat Network Congestion
• Shiba Inu to Launch DAO for Decentralized Governance

AI and Blockchain Innovation

• AI Crypto Market Surges on Anticipated NVIDIA Earnings
• Stacks Network's Nakamoto Upgrade to Boost Bitcoin DeFi
• Chainbound Secures $4.6M for Ethereum Transaction Innovation
• Io.net Staking Program Drives 30% IO Token Price Surge

Security and Cyber Threats

• Rumpel Labs to Launch Marketplace for Airdrop Points Trading
• Discord Servers of Polygon, Avalanche, and ZKsync Hacked
• Cthulu Stealer Malware Targets Crypto Wallets on macOS

NFT Market Developments

• Bitcoin Runes NFT Protocol Processes $162.4M in Fees

Bitcoin Bid Liquidity Drops Amid Price Weakness

Bitcoin's bid liquidity dropped to $62,500, with price weakness observed at $63,128, sparking concerns over a potential sell-off. It showed a 40% recovery from August lows of $45,500, nearing $65,000. According to QCP Capital analysts, despite increased optimism following the Federal Reserve's dovish stance at Jackson Hole, derivatives data indicates cautious sentiment among investors. The market has seen significant call spread buying for longer-term options, signaling anticipation of potential price increases in a favorable monetary environment. However, heavy selling of calls around the $100,000 strike suggests a tempered bullish outlook in the near term. Bitcoin's current implied volatility favors put options, indicating hedging against possible price declines despite overall bullish sentiment.

Ethereum Foundation's $96.9M Transfer Sparks Transparency Concerns

The Ethereum Foundation transferred 35,000 ETH (~$96.9M) to Kraken, prompting criticism over transparency. The Foundation explained this as part of regular treasury management, needed for funding grants and salaries, some requiring fiat currency. As per The Block's Data Dashboard, Ethereum has seen a significant decline in trading volume and daily transactions during August. The seven-day moving average of daily trading volume dropped by 55%, now standing at $2.9 billion from a peak of $6.56 billion. 

Daily transactions hit a multi-month low of 1.07 million, down from 1.32 million earlier this year. Monthly transactions are also notably lower compared to July, signaling reduced activity on the network. Meanwhile, Ethereum's value against Bitcoin has dropped 25% in 2024, hitting a 40-month low, partly due to a stronger correlation with the weakening U.S. dollar. The upcoming Federal Reserve rate cuts could exacerbate Ether's decline, as capital shifts towards Bitcoin.

Bitcoin Sees $543M Inflows After Powell's Rate Cut Hint

After Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts, Bitcoin saw significant investor interest, with $543 million flowing into the cryptocurrency last week. This influx marks the highest weekly inflow in five weeks for crypto investment products, according to CoinShares. The bullish sentiment following Powell's remarks also drove up trading volumes, reaching $9 billion, indicating heightened market activity and optimism surrounding Bitcoin's price potential amid monetary policy expectations.

Telegram Founder Arrested in France Over Serious Allegations

Telegram founder Pavel Durov was arrested in France on August 23, 2024, over allegations including complicity in crimes like drug trafficking, child exploitation, and terrorism. French authorities can hold him until August 28, 2024. President Macron denied any political motivation, emphasizing judicial independence. The crypto community, including Justin Sun, who pledged $1 million to a DAO for Durov's legal defense, rallied in support. Polymarket bettors give a 36% chance of Durov’s release by August 31.

DOGS Meme Coin Drops 25%, Disrupting Major Exchanges

DOGS, a meme coin launched on major exchanges, dropped 25% after listing, causing service disruptions on Binance, Bybit, and OKX. The DOGS community banned bot farm users to ensure fair airdrop distribution, and trading began with a $614 million market cap. Over 43.8 million users hold DOGS, with ongoing on-chain withdrawals.

Solana Faces Sharp Decline in Token Launch Activity

Pump.fun, once a leader in token launches on Solana, has seen a sharp decline in activity, with daily launches dropping 47% in just two weeks. Solana's daily transaction fees have hit a multi-month low, dropping sharply to $639,000 from a peak of $1.83 million earlier in August and a record high of $5.08 million in March. This downturn, attributed partly to oversaturation and competition like Tron's sun.pump, signals a shift in meme coin traders' interests away from Solana.

Tron Raises Energy Cap to Combat Network Congestion

Tron has raised its energy cap to 120 billion to address network congestion and reduce transaction costs linked to meme coins. Justin Sun's Proposal No. 92 aims to lower gas fees and increase daily transactions to 20 million within three months. This move coincides with TRX's 21% price surge amid heightened meme coin activity, notably SUNDOG's 200% rise to $0.259.

Shiba Inu to Launch DAO for Decentralized Governance

Shiba Inu, known for its Dogecoin-inspired roots, is set to launch a decentralized autonomous organization (DAO). This move aims to empower SHIB holders by allowing them to vote on community initiatives. The DAO will feature councils focusing on charity and cultural projects, marking a significant shift towards decentralized governance within the meme coin ecosystem.

AI Crypto Market Surges on Anticipated NVIDIA Earnings

The AI crypto market is experiencing a bullish trend, largely driven by the anticipated surge in NVIDIA's earnings, projected to grow by 141% year-over-year. This optimism has propelled AI-related tokens like FET, TAO, and RENDER to outperform Bitcoin recently. Investors are eagerly awaiting NVIDIA's Q2 earnings report, expected to show substantial growth, which could further boost these tokens. Significant whale activity, such as large purchases of FET tokens, indicates growing confidence among major investors, suggesting continued bullish momentum in the AI crypto sector.

Stacks Network's Nakamoto Upgrade to Boost Bitcoin DeFi

The Stacks Network's Nakamoto Upgrade marks a significant leap for Bitcoin's DeFi capabilities. Scheduled for August 28, this upgrade promises to drastically improve transaction speeds on the Stacks layer-2 network, reducing settlement times from minutes to seconds. This enhancement, coupled with the introduction of sBTC, a decentralized asset backed by Bitcoin, is set to revolutionize DeFi applications on Bitcoin, addressing previous speed limitations and enhancing user experience across the ecosystem.

Chainbound Secures $4.6M for Ethereum Transaction Innovation

Chainbound, a leading Ethereum research firm, has secured $4.6 million to develop Bolt, a transaction preconfirmation protocol. This innovation aims to drastically reduce Ethereum's current seven-second transaction confirmation time to sub-second levels. Bolt will initially launch on the Helder testnet with plans for a mainnet rollout by year-end. Cyber Fund led the $4.6 million seed financing round, supported by Maven 11, Robot Ventures, and Bankless Ventures, among others.

Io.net Staking Program Drives 30% IO Token Price Surge

Io.net's recent launch of a staking program has quickly amassed $1.5 million, propelling its IO token price up by 30% before retracing. GPU suppliers are actively participating, staking IO tokens to enhance network security and earn rewards through Solana smart contracts. Analysts anticipate a potential supply shock, with staking potentially reducing IO's circulating supply by 10%. 

Rumpel Labs to Launch Marketplace for Airdrop Points Trading

Rumpel Labs, backed by investors like Dragonfly, plans to launch a marketplace for trading airdrop-related points in mid-September. Led by CEO Kenton Prescott, the startup aims to enhance liquidity and price discovery for these loyalty tokens, addressing gaps in current secondary markets. This initiative targets users seeking efficient ways to manage and trade their crypto rewards.

Discord Servers of Polygon, Avalanche, and ZKsync Hacked

Recently, the official Discord servers of Polygon, Avalanche, and ZKsync were hacked, shocking the crypto community. Hackers used these breaches to distribute malicious links, deceiving users into interacting with fraudulent schemes. This series of cyberattacks highlights a concerning trend of Discord-related exploits targeting blockchain networks. 

Cthulu Stealer Malware Targets Crypto Wallets on macOS

The "Cthulu Stealer" macOS malware is targeting crypto wallets, prompting users to be vigilant. The malware, recently banned from some marketplaces, is designed to siphon cryptocurrency from unsuspecting victims. Despite actions against its developer for payment withholding, users should remain cautious and update security measures to detect and prevent such threats effectively.