Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 8, 2024

Crypto Market Update

Table of Contents

Market Updates

• Bitcoin Price Falls Amid Economic Concerns

Ethereum Developments

• Ethereum Foundation's Major ETH Deposit Spurs Fears

Network and Transaction Issues

• Bitcoin Network Congestion Skyrockets Transaction Fees

Regulatory and Legal Actions

• Call for Transparency in SEC's Ethereum ETF Decision
• NY AG Sues Companies Over Crypto Pyramid Schemes

Political Involvement

• Donald Trump Declares Himself the Crypto President

Platform Upgrades and Developments

• zkSync Mainnet Upgrade and Governance Transition

DeFi and Stablecoins

• Ethena Labs Integrates USDe Into Aave

Community and Social Impact

• Andrew Tate Burns Solana Tokens, Shaking Crypto Space

Security and Exploits

• Exploit in ANDY Meme Coin Leads to $2M Loss
• Suspected Rug Pull in Gemholic Project

Bitcoin Price Falls Amid Economic Concerns

Bitcoin's price fell below $70,000 due to a complex US jobs report and a surprise ECB interest rate cut, revealing economic vulnerabilities. Despite adding 272,000 jobs, the US unemployment rate rose to 4%, hinting at potential "growth-stagflation." Zerohedge reported that Bitcoin hedge funds hit record net shorts, signaling bearish sentiment and possible market volatility. Crypto traders view this downturn as a brief shakeout, anticipating a bullish rebound if key support levels hold. Bitcoin's price, currently at around $69,500, faces critical support at $68,500, with analysts predicting a potential 30% decline if the support level fails.

Ethereum Foundation's Major ETH Deposit Spurs Fears

A wallet associated with the Ethereum Foundation deposited 15,254 ETH ($56.1 million) into Kraken, triggering concerns of a further price drop as ETH fell below $3,700. Meanwhile, a dormant pre-mine address containing $21.9 million worth of ETH was reactivated for the first time in nearly nine years. Amid the price volatility, Ethereum's Pectra upgrade, set for Q1 2025, will introduce EIP-7702 for smart contracts, PeerDAS for scalability, and increase staking limits from 32 ETH to 2,048 ETH. This upgrade is expected to be a major milestone in Ethereum's development.

Bitcoin Network Congestion Skyrockets Transaction Fees

Bitcoin's 24-hour average transaction fees hit an all-time high of $195 on June 8, 2024, despite a 3-month price range and low exchange and on-chain volumes. This surge, attributed to a UTXO consolidation spiral on OKX, reflects intense competition for limited blockchain space. Other cryptocurrencies tackle fee issues differently.

Call for Transparency in SEC's Ethereum ETF Decision

Bloomberg ETF analyst James Seyffart has called for FOIA requests into the SEC's approval of spot Ethereum ETFs, citing a lack of transparency and potential political influence. He believes the SEC's decision was politically motivated, pointing to the use of delegated authority, which obscures voting records. Seyffart argues for a less politically driven SEC, where decisions are based on logic and reason rather than predetermined justifications. 

NY AG Sues Companies Over Crypto Pyramid Schemes

New York Attorney General Letitia James has filed a lawsuit against two companies, AWS Mining and Novatechfx, for operating crypto pyramid schemes. These schemes targeted vulnerable immigrants and religious communities, resulting in over 11,000 individuals losing more than $1 billion in cryptocurrency. AG James seeks to ban their operations and provide restitution to victims.

Donald Trump Declares Himself the Crypto President

Donald Trump, the Republican nominee for the 2024 presiden election, declared himself the "crypto president" at a San Francisco tech fundraiser, raising $12 million. While he expressed support for the cryptocurrency sector, he did not outline specific policy plans. Trump has launched his own cryptocurrency and accepts crypto donations for his campaign, aiming to appeal to the crypto community. 

zkSync Mainnet Upgrade and Governance Transition

zkSync developers completed the zkSync V24 mainnet upgrade on June 7, enhancing platform performance. They plan to transfer network governance to the community by the end of June, coinciding with an expected token airdrop event. Matter Labs, the company behind zkSync, raised $458 million and aims to issue tokens soon.

Ethena Labs Integrates USDe Into Aave

Ethena Labs integrates USDe into Aave, broadening its DeFi presence. Users can deposit stETH, weETH, ETH, and WBTC on Aave to borrow stablecoins in USDe or sUSDe. This move signifies USDe's maturity and acceptance in DeFi. Aave's Marc Zeller confirms its sound risk parameters. Despite initial skepticism, USDe climbs the stablecoin ranks, now fourth by market cap. The integration with Aave taps into a $13.2 billion lending ecosystem, offering potentially cheaper leveraged exposure.

Andrew Tate Burns Solana Tokens, Shaking Crypto Space

Andrew Tate, the internet personality, recently made waves in the crypto community by burning over 587 million tokens of a newly launched Solana meme coin, worth $38 million. He vowed to crash the Solana network, causing a 130% surge in the TOP G coin's price. Tate's provocative actions divided opinions within the crypto space.

Exploit in ANDY Meme Coin Leads to $2M Loss

According to ZachXBT, a recent exploit in a meme coin called ANDY led to a $2 million loss, with the exploiter still holding $1 million worth of the cryptocurrency. ZachXBT, a prominent investigator, flagged the incident, revealing the exploit drained $2 million worth of coins. ANDY's value plummeted by over 20% following the attack.

Suspected Rug Pull in Gemholic Project

The Gemholic project on zkSync network is suspected of a $3.5M rug pull, causing uproar in the crypto community. Investors allege fraud as funds were transferred post-unlock, questioning SolidProof's KYC process. Community members aim to track the creator's address, allegedly funded by Binance. The incident raises concerns about the reliability of KYC providers.