Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 29, 2024

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Crypto Market Update

Table of Contents

Market Updates

• US Government Bitcoin Move Causes Market Fluctuations
• Ethereum ETF Inflows and Outflows: Grayscale vs. BlackRock
• Trump's Bitcoin Endorsement Sparks Market Activity
• Digital Asset Inflows Reach $20.5 Billion YTD

Cryptocurrency Trading and Activity

• Major Cryptocurrencies Experience Trading Volume Surge
• 21Shares Ethereum ETF Integrates Chainlink Proof-of-Reserve
• Compound DAO Approves Contentious $25M COMP Allocation
• Jito Surpasses Lido in Fee Generation
• OKX Lists ONDO Token, Plans Hamster Kombat Futures

Exchange and Platform Developments

• WazirX Faces Criticism for Socialized Recovery Plan
• Neiro-Themed Tokens Linked to Scams and Rug Pulls
• Casper Network Suffers Security Breach, Trading Dips
• Layer3 Launches L3 Claim with Unique Staking Options
• NFT Sales Hit Nine-Month Low in July

US Government Bitcoin Move Causes Market Fluctuations

Bitcoin faced significant selling pressure, dropping from nearly $70,000 to a daily low of $66,728 as the US government moved $2 billion worth of BTC to a new wallet. Earlier in July, Bitcoin fell below $54,000 due to a German government sale. As of late July, the US national debt exceeded $35 trillion, influencing BTC's price, which fluctuated around $69,000-$70,000. Trump's recent pro-Bitcoin speech wasn't enough for a major breakout, and QCP analysts expect BTC to trade within a range. Dormant Bitcoin addresses, including a Satoshi-era wallet, have been activated, further stirring market interest.

Ethereum ETF Inflows and Outflows: Grayscale vs. BlackRock

Between July 23-26, 2024, Grayscale’s Ethereum Trust ETF experienced $1.5 billion in outflows, while BlackRock’s iShares Ethereum Trust ETF saw $87.2 million in inflows. The launch of U.S. spot Ethereum ETFs led to $2.2 billion in total net inflows, with BlackRock's ETHA leading at $442 million. Grayscale's ETHE faced significant outflows, totaling $341.8 million. Overall, Ethereum ETFs' trading volume reached $4.05 billion in the first week, with a substantial increase in trading activity.

Trump's Bitcoin Endorsement Sparks Market Activity

Bitcoin’s initial surge to $70,000 today was driven by Donald Trump’s endorsement and proposal to establish a national Bitcoin stockpile. Hong Kong legislator Johnny Ng advocated for adding Bitcoin to the region’s financial reserves. Tron founder Justin Sun urged China to reassess its stance on Bitcoin following Trump's speech at Bitcoin 2024, emphasizing competition between the US and China. Polymarket betting on the 2024 election shows significant investments favoring Trump, with top holders having 9.1 million shares.

Digital Asset Inflows Reach $20.5 Billion YTD

As of July 29, 2024, digital asset inflows have reached $20.5 billion YTD, driven by Bitcoin and Ethereum ETFs. Bitcoin saw $519 million in inflows last week, totaling $19 billion YTD. Ethereum ETFs, particularly Grayscale's new Mini Trust ETF, contributed significantly, though Grayscale experienced $1.5 billion in outflows. Former President Trump's pro-Bitcoin remarks and the anticipation of Federal Reserve rate cuts have bolstered investor sentiment.

Major Cryptocurrencies Experience Trading Volume Surge

Trading volumes surged towards major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), with SOL surpassing $190 amid optimistic market sentiment. BTC saw record open interest, indicating strong trader activity. Stablecoin supply also hit peaks, supporting liquidity. The market anticipates further growth in these top assets, influencing broader crypto trends.

21Shares Ethereum ETF Integrates Chainlink Proof-of-Reserve

The 21Shares Ethereum ETF has integrated Chainlink’s Proof-of-Reserve system to enhance transparency and enable real-time tracking of ETH reserves. This move follows the recent launch of spot Ether ETFs in the U.S., marking a significant step in crypto adoption. The integration aims to boost investor confidence by providing up-to-date data on asset reserves, leveraging off-chain feeds from Coinbase for decentralized verification.

Compound DAO Approves Contentious $25M COMP Allocation

Compound DAO faced a contentious vote with Proposal 289, resulting in the approval of $25 million worth of COMP tokens for a goldCOMP vault, despite concerns of a governance attack. This move, marking the third attempt by proponents, bypassed significant opposition within the DAO, raising alarms about protocol governance and decision-making transparency.

Jito Surpasses Lido in Fee Generation

Jito overtook Lido as the leading fee-generating protocol, collecting $3.27 million in 24-hour fees, compared to Lido’s $2.94 million. Simultaneously, Solana's memecoin creation tool pump.fun surpassed Ethereum in 24-hour revenue, generating $864,000 against Ethereum’s $550,000, according to DefiLlama. Pump.fun has previously achieved a high of nearly $2 million in 24-hour revenue.

OKX Lists ONDO Token, Plans Hamster Kombat Futures

On July 29, OKX listed Ondo Finance's ONDO token, which surged 7% at one point and has a market cap of $1.42 billion. ONDO, aiming to connect TradFi and DeFi, saw listings on various exchanges and a price spike to $1.02. On July 30, OKX will launch pre-market futures, featuring Hamster Kombat's HMSTR token, aiding early-stage price discovery despite regulatory concerns.

WazirX Faces Criticism for Socialized Recovery Plan

WazirX faces criticism for proposing a socialized recovery plan after a $230 million hack. The plan, involving distributing losses among all users, sparked community backlash. CEO Nischal Shetty clarified the poll's non-binding nature. WazirX seeks Binance's help, despite previous disputes, to assist affected users. The exchange continues to gather user feedback before finalizing its approach.

Neiro-Themed Tokens Linked to Scams and Rug Pulls

Neiro-themed tokens launched after Shiba Inu dog Kabosu's death, with uncertain popularity prospects. On July 28, blockchain sleuth Wazz warned that the $31M Neiro token on Ethereum is a honeypot scam. Meanwhile, Lookonchain found out that Solana’s Neiro memecoin developer profited $2.85M after an apparent rug pull, with a 5,169x return on an initial investment of 3 SOL. Despite speculations, "Kabosumama" Atsuko Sato clarified she doesn't endorse any Neiro crypto projects. 

Casper Network Suffers Security Breach, Trading Dips

Casper Network experienced a security breach, prompting a shutdown to contain the incident. The network is collaborating with stakeholders to resolve the issue and reassure users. While the breach affected few accounts, CSPR's trading dipped by 4.82%, with a significant drop in trading volume. Updates on the breach are forthcoming as investigations continue.

Layer3 Launches L3 Claim with Unique Staking Options

Layer3 has unveiled its L3 claim launch, sparking anticipation among users. Set to commence on July 30, this token distribution platform offers unique staking options alongside direct token claiming. Tokens vest after 12 months, ensuring fairness by excluding insiders from early participation. Layer3 aims to balance liquidity and staking rewards for a robust token economy.