Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 25, 2024

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Crypto Market Update

Table of Contents

Market Movements

• Bitcoin dips below $65,000, market sentiment, and seasonal trends
• Ethereum's price drops after spot ETH ETFs launch
• Bitstamp begins repaying Mt. Gox creditors
• Marathon Digital Holdings acquires $100M worth of Bitcoin

Investment and Funds

• SBI Holdings and Franklin Templeton launch digital asset venture
• Hashdex submits S1 for dual-crypto ETF
• Ego Death Capital secures $43M for Bitcoin startups
• Galaxy Digital raises $113M for crypto VC fund
• Kuru raises $2M in seed funding

Regulatory and Compliance

• Coinbase fined £3.5M by UK regulator
• HSBC Australia blocks crypto exchange payments
• Revolut secures UK banking license

Stablecoins and Staking

• Stablecoin market surges to $164.359 billion
• Core Foundation introduces dual staking model
• ZkSync sees decline in network activity
• AltLayer experiences 17% drop before token unlock
• Aave proposal considers activation of fee switch
• EigenLayer's total value locked drops by 13%

Crypto Platforms and Services

• Jito releases restaking service for Solana
• Save Finance rebrands to offer diverse DeFi products
• Clearpool launches Clearpool Prime on Arbitrum
• TON launches W5 smart wallet for gasless transactions
• Deutsche Telekom expands Web3 services to XDC Network
• AgriDex completes first agricultural trade on Solana

Tokens and Blockchain Integrations

• Yona Network integrates Ethereum features into Bitcoin
• Wenia integrates Chainlink’s Proof of Reserve

Other Market Updates

• Celebrity coins on Solana plummet by over 99%
• dYdX price declines amid falling trading volume
• Lumerin's decentralized AI project goes live on Arbitrum

Crypto Community and Governance

• eToro delists Terra Luna Classic
• Mystiko Network faces insider trading allegations
• Magic Eden partners with D3 Global for .magic domain

Bitcoin dips to $65,000, market sentiment, and seasonal trends

Bitcoin’s dip below $65,000 on July 25 was attributed to market sentiment, not Mt. Gox sales, with the dip linked to seasonal trends and the launch of the spot Ether ETF on July 23. Bitcoin's recent dip coincides with a 2.3% drop in the S&P 500 and a 3.6% fall in the Nasdaq, with the "Magnificent Seven" tech stocks losing $768 billion in value. 

Despite the dip, Bitcoin whales added 358,000 BTC in July, marking an unprecedented $23 billion buying spree. The market remains volatile with concerns over China's rate cuts, US macroeconomic data, and upcoming Federal Reserve decisions.

Ethereum's price drops after spot ETH ETFs launch

Ethereum’s price dropped 8.75% to $3,170 following the launch of spot ETH ETFs, driven by $113.3 million in outflows. Analysts noted the weaker-than-expected performance of ETH ETFs compared to Bitcoin’s, with the former attracting 10-20% of the latter’s day-one inflows. On the same day, the Ethereum Foundation moved 92K ETH ($290M) after seven years. 

BlackRock’s ETH ETF amassed 77K ETH ($277M) soon after launch. Despite initial outflows, the long-term potential remains strong. Ethereum’s on-chain activity increased, with L2 addresses up 127% in 2024. Analysts predict potential ETH price surges influenced by ETF inflows, institutional interest, and macroeconomic factors.

Bitstamp begins repaying Mt. Gox creditors

Bitstamp began repaying Mt. Gox creditors with Bitcoin, Bitcoin Cash, and Ether, distributing part of the $9.4 billion fund to creditors. Despite concerns, many creditors chose to hold rather than sell, as evidenced by CryptoQuant data showing no significant trading volume increase. Mt. Gox still holds 90,000 BTC valued at $6 billion. VanEck's model projects Bitcoin could reach $2.9 million by 2050, driven by its integration into the international monetary system and significant market share gains from major currencies.

Marathon Digital Holdings acquires $100M worth of Bitcoin

Marathon Digital Holdings, the world’s largest BTC miner, recently acquired $100 million worth of Bitcoin to strengthen its strategic treasury reserve. The company aims to "go full hodl", indicating a long-term bullish outlook. With over 20,000 BTC valued at $1.28 billion, Marathon's decision not to sell any BTC further underscores its confidence in Bitcoin's long-term value.  

SBI Holdings and Franklin Templeton launch digital asset venture

Japan’s SBI Holdings and U.S. Franklin Templeton announced a joint venture to establish an investment management company focusing on digital assets, with SBI holding a 51% stake. This move targets the anticipated launch of digital asset ETFs in Japan. Franklin Templeton, managing $1.5 trillion in assets, is exploring a potential Solana ETF. SBI's extensive interests in digital assets and its long-time partnership with Ripple have led to speculations about a possible XRP ETF, following SBI's previous use of XRP for international money transfers.

Hashdex submits S1 for dual-crypto ETF

Hashdex submitted an S1 form for its Hashdex Nasdaq Crypto Index U.S. ETF on June 24. It plans to track Bitcoin and Ethereum initially and aims to add more cryptocurrencies later. The U.S. SEC has until March 2025 to approve or deny the ETF, which is set to be the first dual/multi-spot ETF in the U.S. 

Ego Death Capital secures $43M for Bitcoin startups

Ego Death Capital's $100 million second fund has secured over $43 million to invest in Series A Bitcoin startups. Founded by Jeff Booth, the fund targets rapidly scaling Bitcoin companies. With prominent venture funds raising substantial capital for Bitcoin startups, there is a surging appetite among investors, reflecting the maturity and growth of the ecosystem.

Galaxy Digital raises $113M for crypto VC fund

Galaxy Digital has raised $113 million for a crypto VC fund targeting startups with a focus on software and infrastructure. The fund aims to reach $150 million and has invested in firms like Monad and Ethena. With increased institutional interest in digital assets, the company welcomes outside investors and has observed significant institutional investment in the market.  

Kuru raises $2M in seed funding

Kuru, an on-chain order book DEX on Monad, raised $2 million in seed funding led by Electric Capital. On the same date, aPriori, a liquid staking platform, secured $8 million in seed funding led by Pantera Capital, bringing its valuation to $100 million. Additionally, Kintsu, another liquid staking protocol on Monad, raised $4 million in seed funding led by Castle Island Ventures. These funds aim to enhance team growth, audits, and platform launches in the Monad ecosystem.

Coinbase fined £3.5M by UK regulator

Coinbase's CB Payments Ltd. (CBPL) was fined £3.5 million ($4.5 million) by the UK's Financial Conduct Authority for allowing 13,416 high-risk customers to use e-money services, breaching restrictions. These customers deposited $24.9 million, leading to $226 million in crypto transactions. The lapses in compliance spanned almost two years due to monitoring failures.  

HSBC Australia blocks crypto exchange payments

HSBC Australia has started blocking payments to cryptocurrency exchanges as of July 24, 2024, joining a trend among major banks to protect customers from scams, with Australians having lost up to $171 million in investment scams in 2023. The move is a reflection of a larger trend of restrictions affecting the digital currency community. 

Revolut secures UK banking license

Revolut has secured a UK banking license after a three-year wait. The approval puts Revolut on the path to becoming a fully-fledged UK bank, authorized to offer crypto services. Recently valued at $45 billion, the fintech plans to sell $500 million worth of shares, showcasing its significant growth and market position.

Stablecoin market surges to $164.359 billion

The stablecoin market has surged to $164.359 billion, led by USD-pegged USDT with a market capitalization of $114.26 billion. The resurgence reflects renewed capital influx and showcases growing confidence in stablecoin demand. Additionally, looming regulatory impacts such as BIS and MiCA rules are seen as potential challenges for stablecoin operators.  

Core Foundation introduces dual staking model

Core Foundation introduces a dual staking model for the Bitcoin-powered Core blockchain, enabling users to stake both Bitcoin and CORE tokens for increased yields. Since launch, over 5,000 BTC ($309M+) has been staked on Core Chain, solidifying its position as a secure and Bitcoin-aligned platform with significant miner delegation. 

ZkSync sees decline in network activity

ZkSync (ZK) is experiencing a substantial decline in network activity, with daily active addresses plummeting by 66% and daily transactions hitting a year-to-date low, as per The Block’s dashboard. The Total Value Locked (TVL) has contracted to $96 million, marking its lowest since April 2023. The native token, ZK, hit an all-time low and technical indicators reflect a bearish outlook, suggesting significant selling pressure and potential further declines in the token's value.  

AltLayer experiences 17% drop before token unlock

AltLayer (ALT) experiences a 17% drop at one point before unlocking $100 million worth of tokens, increasing circulating supply by 42%. Concerns arise over potential heavy VC sell-offs. To mitigate this, further token unlocks are delayed until January 2025. AltLayer aims to stabilize market conditions with a structured release plan for the remaining tokens.  

Aave proposal considers activation of fee switch

A new Aave proposal is considering the activation of a fee switch to distribute excess revenue to users, potentially leading to Aave protocol restaking. Founder Marc Zeller initiated a "temp check," seeking governance insights. The platform boasts over $12.5 billion in total value locked and has advanced plans with the release of its V4 roadmap. AAVE token currently trades at $95.6, signaling a 2.72% decrease in 24 hours.  

EigenLayer's total value locked drops by 13%

In the past month, EigenLayer's total value locked dropped by 13% to $15.1 billion, with restaking protocols experiencing significant outflows. Factors contributing to this decline include limited returns, fickle investor behavior, and the attractiveness of higher-yielding platforms like Ethena. Notably, ether.fi demonstrated growth amid the sector's overall slide.  

Jito releases restaking service for Solana

Jito released an open-source restaking service for Solana, enabling protocols to provide economic security to on-chain applications using any crypto asset. Concurrently, Solana whales staked $41 million amid discussions of a potential Solana ETF, reflecting strong confidence in the asset's future prospects.

Save Finance rebrands to offer diverse DeFi products

Save Finance, previously Solend, rebrands to offer diverse DeFi products including $SUSD Stablecoin for interest-free borrowing against SOL, saveSOL Liquid Staking Token enabling yield for SOL stakers, and Dumpy.fun for memecoin shorting. Achieving a peak TVL of nearly $1 billion, Save empowers users with innovative solutions on the Solana network.  

Clearpool launches Clearpool Prime on Arbitrum

Clearpool has launched Clearpool Prime on Arbitrum, the largest Ethereum Layer 2 network by TVL. $18 million in loans have been originated to Flow Traders and Bastion Trading. It received an ARB token grant to support its growth from the Arbitrum Foundation and has facilitated over $70 million in loans. The collaboration aims to enhance Clearpool's offerings in terms of security and scalability for on-chain credit transactions.

TON launches W5 smart wallet for gasless transactions

TON has launched the W5 smart wallet for gasless transactions on the TON blockchain using USDT and Notcoin. The wallet allows up to 255 simultaneous transactions and aims to enhance user experience and accessibility. TON has also become the 10th-largest blockchain in total value locked (TVL), with a focus on security and development of play-to-earn (P2E) mini-games.  

Deutsche Telekom expands Web3 services to XDC Network

Deutsche Telekom's subsidiary expands Web3 services to XDC Network, operating a standby masternode, not validating transactions but ready if needed. Dirk Röder, head of web3 unit, emphasizes enterprise-grade infrastructure enabling secure blockchain-based finance applications. The company plans to mine Bitcoin and already runs nodes on Bitcoin, Lightning, Ethereum, Polygon, and Polkadot. XDC claims fast transaction speed and "near-zero" gas fees, hosting stablecoins and tokenized real-world assets.

AgriDex completes first agricultural trade on Solana

AgriDex completes the first agricultural trade on Solana, showcasing near-instant settlements and reduced fees. It shipped 200 bottles of olive oil and wine from South Africa to London, charging only 0.15% in fees. AgriDex aims to solve transparency issues, promoting fair trade benefiting farmers and consumers globally.  

Yona Network integrates Ethereum features into Bitcoin

Yona Network integrates Ethereum features into Bitcoin using Neon Stacks, unlocking $1 trillion liquidity. This brings Solana's speed to Bitcoin, attracting more EVM-based DeFi projects. Neon Stacks enhances interoperability and scalability, making Bitcoin a universal programmable layer.  

Wenia integrates Chainlink’s Proof of Reserve

Wenia, a digital asset company under Bancolombia Group, has integrated Chainlink’s Proof of Reserve to enhance transparency for its Colombian peso-backed stablecoin. Stablecoins make up 31% of crypto acquisitions in Colombia, with monthly transactions estimated at $200 million. Wenia also plans to expand collaboration with Chainlink for market data and cross-chain interoperability.  

Celebrity coins on Solana plummet by over 99%

The recent launch of celebrity coins on the Solana blockchain saw over 30 tokens endorsed by famous figures like 50 Cent and Caitlyn Jenner plummet by over 99%. Analysts noted that only a few retained more than 25% value, with many down over 90%. Scams and insider activities plague this volatile celebrity coin space.  

dYdX price declines amid falling trading volume

dYdX's price declined by 9% in a week, currently at $1.23 with a 7.53% reduction in 24 hours. The market capitalization is $773 million, ranking 83rd. Trading volume fell by 57% to about $18 million. Season 5 distributed $5 million to 2,700 account holders, and Season 6 aims to promote engagement.

Lumerin's decentralized AI project goes live on Arbitrum

Lumerin's decentralized AI project Morpheus goes live on Arbitrum's public test network, aiming to address the limitations of centralized AI models prone to censorship and monopoly. Leveraging smart contracts, it introduces "smart agents" for user engagement and decentralized Chat GPT-like interface. The project holds promise for Web3 functionality, dApps, and DeFi interactions.

eToro delists Terra Luna Classic

eToro delisted Terra Luna Classic (LUNC), angering the community. The decision was based on TerraForm Labs' bankruptcy case. LUNC validators demanded answers from TerraForm's CEO, claiming TFL misled eToro about owning LUNC. The delisting affects 78,000 LUNC holders on eToro. LUNC's price dropped 7.2% to $0.000081. Neither eToro nor TerraForm Labs have explained the decision.

Mystiko Network faces insider trading allegations

Mystiko Network faces insider trading allegations after an airdrop, where two wallets received significantly more tokens. The majority of participants received between 400 and 5,740 XZK tokens, sparking community outrage. Mystiko claims the recipients were early protocol contributors, but concerns remain over airdrop squatters affecting decentralized finance ecosystems.