Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 30, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Dips to $58K, Faces Potential $15B Sell Pressure
• Ethereum's 25% Drop Linked to Foundation's $100M Sale
• BlackRock's Bitcoin ETF Sees $13.5M Outflow on August 29

Protocols and Projects

• Cardano to Burn Genesis Keys Before Chang Hard Fork
• Layer 2 Chains on Ethereum Face Rising Blob Fees
• Proposal to Merge tBTC with WBTC Gains Traction
• Curve Funding Proposal Receives Overwhelming Support

Crypto Exchanges and Platforms

• WazirX Allocates $12M for Recovery Amidst Cyber Attack
• Hamster Kombat’s HMSTR Token to List on Bitget, OKX

Legal and Regulatory Updates

• Elon Musk's Dogecoin Manipulation Lawsuit Dismissed

Country-Specific Developments

• Solana Spot ETF Raises $2.75M in Brazilian Public Offering
• Naver Partners with Chiliz to Launch Crypto Wallet

Market and Investment

• Ethena Whales Dump ENA, Signaling Market Crash
• Robot Ventures Secures $75M for Crypto Projects

Gaming and Web3

• NFL Rivals Year 2 Update Launches with New Features

Bitcoin Dips to $58K, Faces Potential $15B Sell Pressure

Bitcoin experienced significant volatility, slipping below $58,000 before reclaiming this level, with losses wiping out $178 million in liquidations. The market struggles continue, with Mt. Gox and U.S. government sell pressures potentially adding $15 billion in additional selling, threatening further downside. Exchange reserves reached yearly lows, possibly indicating reduced selling pressure, which could be bullish if demand rises. 

However, Bitcoin remains underperforming against stocks since the August deleveraging event, with its price 0.50 standard deviations below its three-month average. The broader crypto market, including Ethereum and Solana, also saw steep declines today. Analysts remain cautious, citing September's historically negative performance for Bitcoin.

Ethereum's 25% Drop Linked to Foundation's $100M Sale

ETH has lost more than 25% of its value in the last 30 days. In August, the Ethereum Foundation faced criticism for a $100 million ETH sale on Kraken. Vitalik Buterin moved $10 million ETH to a new wallet, traded some for USDC. Notably, he transferred 800 ETH to a multisig wallet, which promptly exchanged 190 wETH for $477,312 in USDC. Additionally, Buterin deposited 3,000 ETH earlier, partially for liquidity mining. 

BlackRock's Bitcoin ETF Sees $13.5M Outflow on August 29

BlackRock's iShares Bitcoin Trust ETF faced a setback on August 29, with a $13.5 million outflow, marking its second day of outflows since January. Despite consistent net capital inflow post-debut, recent days saw significant outflows, totaling approximately $37 million on May 1. US spot Bitcoin ETFs experienced three consecutive days of net outflows, with a substantial amount withdrawn within this period.

Cardano to Burn Genesis Keys Before Chang Hard Fork

On September 1, Cardano will burn Genesis Keys ahead of the Chang hard fork, promoting decentralized governance. Binance, along with 92% of exchanges, will suspend Cardano transactions to support this upgrade, marking the transition to the Voltaire era. ADA’s price fell 6.23% to $0.3432 amidst heightened trading. Hoskinson’s temporary absence raised community concerns.

Layer 2 Chains on Ethereum Face Rising Blob Fees

Layer 2 (L2) chains on the Ethereum network, such as Arbitrum and Optimism, are experiencing increasing demand for blob space, leading to potential higher transaction costs. Blob fees can reach $3.70 during peak activity, particularly driven by L2 chains like Base and Taiko aggressively posting blobs, causing competition for available space and increased fees.  

Proposal to Merge tBTC with WBTC Gains Traction

The proposal submitted by MacLane Wilkison suggests merging Threshold Network's tBTC with WBTC, involving minting over $36 million worth of tokens. It aims to transfer WBTC's functions to Threshold, potentially giving BitGo control. The partnership aims to enhance custody and management of the underlying bitcoins while increasing Threshold's involvement in the WBTC network. 

Curve Funding Proposal Receives Overwhelming Support

The controversial Curve funding proposal allocating 44% of the Curve Community Fund for project development has garnered overwhelming support from veCRV holders, with over 99.9% in favor. The proposal aims to provide 21 million CRV to Swiss Stake AG for one year, including funds for audits and new protocol features. Voting closes on Sept. 3, 2024.  

WazirX Allocates $12M for Recovery Amidst Cyber Attack

WazirX allocates $12 million for stolen crypto recovery. Facing a 30-day moratorium for restructuring amid a lawsuit by CoinSwitch, WazirX addresses a $230 million cyber attack, suspends withdrawals, and plans to distribute assets to creditors. CEO ensures platform continuity and engages potential investors to restore user funds amidst ownership disputes with Binance.  

Hamster Kombat’s HMSTR Token to List on Bitget, OKX

Bitget and OKX are set to list Hamster Kombat’s HMSTR token on September 26. The game merges crypto exchange simulation with a tap-to-earn concept, where players manage hamster-operated exchanges using HMSTR tokens. Several engagement campaigns precede and follow the listing to enhance user participation in the game ecosystem. 

Elon Musk's Dogecoin Manipulation Lawsuit Dismissed

A federal judge dismissed the $258 billion lawsuit accusing Elon Musk of manipulating Dogecoin's price. The court reasoned that Musk's comments were aspirational puffery, not factual, and lacked the necessary detail for the suit. Although Musk's remarks influenced Dogecoin's rise, the judge ruled that no reasonable investor could rely on them for securities fraud. The ruling pleased Musk, potentially setting precedents for meme coin cases.  

Solana Spot ETF Raises $2.75M in Brazilian Public Offering

The first Solana spot ETF raised $2.75 million in its public offering on the B3, Brazil's stock exchange. Managed by QR Asset, it's only 15% of their bitcoin ETF. The QR Asset director highlighted Solana's growth potential, stating the ETF provides security for conservative investors and is vital for institutional investors. 

Naver Partners with Chiliz to Launch Crypto Wallet

South Korean internet giant Naver has partnered with Chiliz to launch its first crypto wallet for over 33 million users. The Naver Pay Wallet, in beta, will offer non-fungible tokens (NFTs) storage and plans to incorporate fan tokens and a loyalty program. This strategic move signifies Naver's entry into the growing appeal of digital assets and blockchain technology.  

Ethena Whales Dump ENA, Signaling Market Crash

Ethena whales dumped 22 million ENA at a $6.9 million loss, signaling a market crash. ENA is highly concentrated, with 90.09% owned by eight whales. Market manipulation concerns arise as 22 sharks own 6.55%. Major liquidation levels are at $0.232 and $0.260. Ethena's USDE market cap saw a significant $770 million decrease over less than two months due to a contraction in supply. Facing fierce competition, USDE's yield dropped from 30% to 4.3%. With its market supply reducing to 2.84 billion, Ethena aims to navigate a challenging market to maintain its position.

Robot Ventures Secures $75M for Crypto Projects

Robot Ventures, a New York-based VC firm raised its largest fund yet, securing $75 million for early-stage crypto projects. General Partner Tarun Chitra noted the fund's threefold increase from previous ones. Backed by investors like TrueBridge Capital Partners, Haun Ventures, and A16z, the firm focuses on pre-seed and seed stages, following a conservative, cycle-aware approach. The resurgence in Web3 venture funding, with $2.1 billion raised in Q2 2024, reflects a potential return to a bull market.