Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 2, 2024

Crypto Market Update

Table of Contents

Market Updates

• Bitcoin Drops Below $63,000 Amid Market Selloffs
• Whale Withdraws $206 Million in Ethereum from Bitfinex
• Bitcoin ETFs See $129.5 Million Inflow
• SEC Reviews Hashdex's Nasdaq Crypto Index ETF

Regulatory and Legal Developments

• Silvergate Bank Settles with Regulators for $63 Million
• Consensys Gets Expedited Hearing Against SEC
• Binance Scores Partial Legal Victory Against SEC
• Denmark Clarifies Stance on Self-Custodial Wallets
• Paxos Gets Approval for Stablecoin Launch in Singapore

Crypto Platforms and Projects

• Robinhood Crypto Expands to All US States
• Polkadot Stakeholders Confident in Treasury's Sustainability
• Grayscale's Top 20 Crypto List for Q3 2024
• Kaiko's Analysis on Solana ETF Impact
• ZKsync Upgrades to 3.0 and Launches Elastic Chain
• Blast Introduces Governance for BLAST Holders
• ASI Token Merger Begins with AGIX and OCEAN Integration
• Pendle Faces 40% Drop in Total Value Locked
• 'Pixels' Creators Expand Crypto Gaming Portfolio
• Astar Network to Burn 350 Million ASTR Tokens
• Solana Meme Coin Billy Reaches $117 Million Market Cap
• Trump Meme Coins Surge After Supreme Court Ruling
• HashKey Group Launches Community Airdrop via Telegram
• Chromia to Launch Mainnet in Mid-July

Funding and Investments

• Sentient Labs Secures $85 Million in Seed Funding
• Lombard Raises $16 Million for Liquid Bitcoin Solution
• Pudgy Penguins NFT Floor Price Surges to 12.25 ETH

Bitcoin Drops Below $63,000 Amid Market Selloffs

Bitcoin's price fell below $63,000 following a $114 million BTC transfer to Binance, adding to ongoing market selloffs. Federal Reserve Chair Jerome Powell's stance on interest rates also contributed to market declines, with Bitcoin down 2% and Ethereum down 1.5%. 

The German government continues to sell its Bitcoin holdings, transferring $52 million worth on July 2, contributing to the downward pressure. Forced BTC selling by miners is ongoing due to unsustainable network fees and reduced block rewards post-halving. Market sentiment remains bearish with potential for Bitcoin to drop below $60,000, as technical indicators suggest.

Whale Withdraws $206 Million in Ethereum from Bitfinex

On July 2, 2024, a whale withdrew over $206 million in Ethereum from Bitfinex, potentially linked to Abraxas Capital Management. Ethereum's first US-listed ETF is expected in July, boosting institutional demand and ETH/BTC ratio. Ethereum ETFs could absorb up to 1% of all ETH within five months, enhancing ETH's relative strength, as per K33 Research.

Bitcoin ETFs See $129.5 Million Inflow

Bitcoin ETFs saw a substantial inflow of $129.5 million on July 1, marking the largest since June 7. Fidelity led with $65.0 million, boosting its total net inflow to $9.2 billion. Bitwise followed with $41.4 million. Overall, Bitcoin ETF inflows now total $14.7 billion, signaling robust investor interest amidst price consolidation above $60,000.

SEC Reviews Hashdex's Nasdaq Crypto Index ETF

The U.S. SEC has acknowledged Hashdex's 19b-4 application for the Nasdaq Crypto Index ETF, focusing on Bitcoin and Ethereum without including crypto securities or stablecoins. The ETF proposes a 70% Bitcoin and 30% Ethereum allocation, with a decision expected by March 2025. This move follows recent approvals of U.S. spot Bitcoin ETFs and upcoming Ether ETF launches.

Silvergate Bank Settles with Regulators for $63 Million

Silvergate Bank, known for its crypto-friendly stance, has agreed to a $63 million settlement with the SEC, Federal Reserve, and California regulators over allegations of inadequate anti-money laundering controls. The SEC accused Silvergate's executives of being aware of serious compliance deficiencies, including failing to monitor suspicious transactions, notably involving major customer FTX. Former executives face penalties and bans from public company roles.

Consensys Gets Expedited Hearing Against SEC

A Texas court has granted Consensys' request for an expedited hearing against the SEC, aiming to resolve their dispute sooner. The case challenges the SEC's attempt to regulate Consensys and its MetaMask platform as a securities broker. This decision could potentially provide clarity on regulatory oversight in the cryptocurrency market by late 2024 or early 2025.

Binance Scores Partial Legal Victory Against SEC

Binance celebrated a partial victory as a U.S. federal court dismissed several SEC claims, ruling that crypto tokens like BNB and stablecoin BUSD are not securities. However, some allegations proceed. Binance.US remains prepared for the legal battle, maintaining compliance with U.S. laws, ensuring 1:1 reserves, and criticizing the SEC's regulatory approach.

Denmark Clarifies Stance on Self-Custodial Wallets

Denmark's Financial Supervisory Authority clarified it has no intention to ban self-custodial wallets, contrary to social media claims. The exemption of such wallets from MiCA regulation doesn't imply a ban. The DFSA emphasized these wallets are not regulated under MiCA as they do not involve custody by service providers.

Paxos Gets Approval for Stablecoin Launch in Singapore

Paxos has secured regulatory approval from the Monetary Authority of Singapore to launch a stablecoin, partnering with DBS, Southeast Asia’s largest bank. This marks Paxos’ third international market for authorized stablecoin issuance, enhancing their global footprint in regulated digital assets. The collaboration aims to leverage DBS’s banking services for stablecoin operations.

Robinhood Crypto Expands to All US States

Robinhood Crypto is available in all 50 US states, Puerto Rico, and the Virgin Islands, trading 15 assets including Bitcoin, Ethereum, and Dogecoin. In May, $7.1 billion in crypto was traded on Robinhood, a 30% decrease from April. Robinhood is also exploring crypto futures in the US and Europe following its $200 million Bitstamp acquisition, with global crypto derivatives volumes hitting $3.69 trillion in May, surpassing spot trading.

Polkadot Stakeholders Confident in Treasury's Sustainability

Polkadot stakeholders have dismissed concerns about the network's Treasury running dry within two years. They assert that the Treasury, funded by token inflation, is sustainable. Ben McMahon from Hydration clarified that spending decisions are made by DOT holders via on-chain voting. Despite recent worries, stakeholders like Giotto de Filippi and Filippo Franchini remain confident in the Treasury's resilience.

Grayscale's Top 20 Crypto List for Q3 2024

Grayscale has unveiled its "Top 20" crypto list for Q3 2024, optimistic despite mixed market performance. Bitcoin surged 50%, but the Crypto Sectors Market Index fell 3%. The list emphasizes Ethereum and AI-related tokens, anticipating catalysts like potential U.S. Ethereum ETP approvals. Grayscale's approach aims to navigate market volatility with cautious optimism and strategic insights.

Kaiko's Analysis on Solana ETF Impact

Kaiko's analysis reveals that the introduction of spot Solana exchange-traded funds (ETFs) initially sparked market optimism, briefly boosting Solana's price by 6%. However, the excitement quickly dissipated as regulatory challenges loomed large. Despite the brief surge, Solana struggled to sustain momentum amidst skepticism over ETF approval and regulatory hurdles.

ZKsync Upgrades to 3.0 and Launches Elastic Chain

After upgrading to 3.0, ZKsync transitions from a singular L2 solution to an interconnected ecosystem of ZK Stack-based Layer 2 rollups called Elastic Chain. This move aims to enhance interoperability and reduce Ethereum's liquidity fragmentation, supporting over 20 new chains by 2024. ZKsync emphasizes improved capital efficiency and user experience through native protocol-level integration.

Blast Introduces Governance for BLAST Holders

Blast introduces governance for BLAST holders, allowing them to propose and vote on platform changes swiftly. This enhances community engagement and decision-making efficiency. Key features include two councils for balanced governance and the ability to influence decisions like new staking programs, fostering active participation and rapid evolution within the Blast ecosystem.

ASI Token Merger Begins with AGIX and OCEAN Integration

In the first phase of the ASI token merger, AGIX and OCEAN tokens have been integrated into Fetch.ai's FET, resulting in their delisting from major crypto exchanges. This $7.5 billion merger aims to consolidate AI tokens under ASI, with some exchanges opting out, like Coinbase. Users can manually migrate tokens to FET using supported platforms.

Pendle Faces 40% Drop in Total Value Locked

Pendle, a DeFi protocol known for yield tokenization, faced a significant setback with a 40% drop in Total Value Locked (TVL) over the past week, plummeting from $6.2 billion to $3.7 billion. This decline correlates with a 15% decrease in PENDLE token price during the same period, amidst broader market pressures and maturation issues in its liquid staking markets.

'Pixels' Creators Expand Crypto Gaming Portfolio

The creators of 'Pixels' are expanding their crypto gaming portfolio, with potential new games within the franchise and exploring ventures on Telegram. This initiative aims to capitalize on the growing interest in blockchain-based gaming and expand their community outreach through different platforms.

Astar Network to Burn 350 Million ASTR Tokens

Astar Network is set to burn 350 million ASTR tokens, equivalent to 5% of its circulating supply, through an auction. This decision follows a community vote aimed at enhancing token scarcity and potentially boosting its market value. Alongside the burn, another 70 million ASTR will be allocated to the community treasury, signaling strategic asset management by the protocol.

Solana Meme Coin Billy Reaches $117 Million Market Cap

Solana-based meme coin Billy has surged to a $117 million market cap, making it Pump.fun's second-largest meme coin after Michi. This milestone underscores the growing popularity of meme coins within the Solana ecosystem, driven by speculative interest and community-driven memes.

Trump Meme Coins Surge After Supreme Court Ruling

Following a recent US Supreme Court ruling in favor of Donald Trump, several Trump-related meme coins saw significant gains. Coins like PolitiFi and Trump-themed tokens such as TRUMPIE and STRUMP surged in value. Trump's evolving stance on crypto, including accepting digital asset donations and advocating for increased BTC mining in the US, further fueled this market excitement.

HashKey Group Launches Community Airdrop via Telegram

HashKey Group, a prominent Asia-based crypto financial services firm, has launched a community airdrop of its native token, HSK, via a unique Telegram tap-to-earn game. Participants engage with the "DejenDog" bot to earn HIT points convertible to HSK tokens, aimed at building community engagement ahead of the token's upcoming listing in Q3.

Chromia to Launch Mainnet in Mid-July

Chromia, a Layer 1 blockchain platform, is set to launch its mainnet in mid-July. Designed to simplify web3 app development, Chromia uses an SQL-like language called Rell for efficient programming. The launch includes bridging its CHR token for staking and network operations. This move marks a significant step toward enhancing decentralized application functionality and scalability.

Sentient Labs Secures $85 Million in Seed Funding

Sentient Labs has secured $85 million in seed funding led by Founders Fund, Pantera Capital, and Framework Ventures, with contributions from MH Ventures and Arrington Capital. The open-source AI development platform aims to democratize AI with blockchain technology via Polygon, accelerating open-source AI model development and distribution.

Lombard Raises $16 Million for Liquid Bitcoin Solution

Polychain-backed Lombard has raised $16 million in funding to scale its yield-bearing liquid Bitcoin solution. Led by Polychain Capital, the funding round included BabylonChain, dao5, Franklin Templeton, and others. Lombard's LBTC token aims to make Bitcoin accessible in DeFi without wrapping mechanisms, leveraging Babylon’s staking protocol for interest. The project plans to integrate with Ethereum and expand to other blockchains.