Coin360 Daily Dispatch | Crypto Market Updates & Highlights | October 3, 2024

Crypto Market Update

Table of Contents

Market Updates

• Bitcoin Dips Trigger Whale Purchases
• Ethereum ICO Investor Dumps 19K ETH
• U.S. Spot Bitcoin ETFs Face Net Outflows
• Visa Unveils Tokenized Asset Platform

Investment and Trusts

• Grayscale Aave Trust Launches Access to AAVE
• Metaplanet Adds 23.9 BTC to Holdings
• Franklin Templeton Proposes Bitcoin & Ethereum ETF
• Credbull Launches $500M On-Chain Credit Facility

Legal and Regulatory

• Ripple Case Appeal Stalls XRP ETF
• WazirX Forms Committee After $230M Hack

Blockchain and Technology Developments

• Aptos Labs Acquires HashPalette in Japan
• LayerZero, EigenLabs Introduce Decentralized Verifier Networks
• Axelar’s Mobius Stack Connects Blockchains
• Binance Labs Invests in Sophon Elastic Chain

Exchange and Trading News

• OKX Expands with ETH/BTC Trading Pair

Revenue and Financials

• Tron Network Revenue Hits $577 Million

Personalities in Crypto

• Arthur Hayes Faces Meme Coin Losses
• Melania Trump Launches NFT Necklace Collection

Bitcoin Dips Trigger Whale Purchases

Bitcoin briefly dipped below $60K, sparking large buy-ins, with whales purchasing over 50K BTC ($3.14B). A whale on Hyperliquid, dubbed 2themoon6691.eth, closed $120M long positions amidst a leveraged market. Market uncertainty from Middle East tensions caused subdued Bitcoin demand, dropping net taker volumes by over $150M. Bitwise analysts noted negative trends in net buying volumes and signs of short-term seller exhaustion. Despite this, JPMorgan suggests geopolitical risk may drive investors towards Bitcoin as a "debasement trade." 

Ethereum ICO Investor Dumps 19K ETH

An Ethereum ICO participant aggressively offloaded 19,000 ETH, valued at $47.5 million, over the past two days as Ether prices slumped almost 10%. The ETH/BTC ratio fell to 0.039, reviving Ethereum's critics and FUD. Meanwhile, Ethereum garnered continued support and gained inflows from institutional investors, particularly BlackRock. It came as Ethereum co-founder Vitalik Buterin proposes lowering the minimum deposit for staking on the network to enhance accessibility for solo stakers. This initiative seeks to address the issue of centralization, as 11 staking providers currently control about 48% of Ethereum staking. Buterin aims to make Ethereum staking more accessible and decentralized.  

U.S. Spot Bitcoin ETFs Face Net Outflows

On October 3, 2024, U.S. spot bitcoin ETFs experienced net outflows of $91.7 million, with Ark and 21Shares' ARKB leading the way at $60.28 million. The total trading volume for these ETFs decreased to $1.66 billion, down from $2.53 billion the previous day. In contrast, U.S. spot Ethereum ETFs saw $14.45 million in net inflows on the same day.  

Visa Unveils Tokenized Asset Platform

Visa's new Visa Tokenized Asset Platform (VTAP) enables banks worldwide to issue fiat-backed tokens seamlessly on blockchain networks, emphasizing security and efficiency. It offers programmability via smart contracts, interoperability across blockchain ecosystems, and is being tested by BBVA, with a planned live pilot in 2025 focused on Ethereum. 

Grayscale Aave Trust Launches Access to AAVE

Grayscale Investments has introduced the Grayscale Aave Trust, facilitating access to AAVE, identified as one of the top 20 potential crypto assets for Q4 2024. The trust is available for daily subscription to eligible individual and institutional accredited investors, functioning similarly to other single-asset investment trusts. Aave V3 boasts total value locked of over $8.9 billion, marked by key enhancements including isolation mode and high-efficiency mode, promoting capital optimization and risk mitigation alongside cross-chain functionality.  

Metaplanet Adds 23.9 BTC to Holdings

Metaplanet Inc., a Tokyo-listed firm, leveraged Bitcoin options to add 23.972 BTC, approximately $1.46 million, enhancing its total holdings to 530.717 BTC, worth around $32.4 million. The practices reinforce its balance sheet, aligning with a long-term Bitcoin strategy, in combination with recent stock acquisition rights, without undue financial risk.  

Franklin Templeton Proposes Bitcoin & Ethereum ETF

Franklin Templeton has proposed a Bitcoin & Ethereum Crypto Index ETF to offer combined exposure to Bitcoin and Ethereum without directly holding these assets. The fund will be monitored by BNY Mellon and Coinbase Custody. It aims to reflect the performance of an index comprising Bitcoin and Ether and is the first of its kind, issuing shares in blocks of 50,000. The SEC approval depends on stringent anti-fraud measures. 

Credbull Launches $500M On-Chain Credit Facility

RWA platform Credbull launches LiquidStone, a $500M fixed yield credit facility on Plume Network for on-chain lending and trade financing. Phase 1 offers 10% annualized yield with plans to raise to 15% by Q1 2025. Blockchain-based private credit market is valued at $9B, showing growth in tokenization of traditional assets.  

Ripple Case Appeal Stalls XRP ETF

The SEC's appeal in the Ripple case has stalled Bitwise's XRP ETF, causing regulatory uncertainty. The appeal puts a cloud of doubt over XRP's status, extending Ripple's legal saga. This has implications for the crypto market, affecting the chances for a successful XRP ETF. Ripple's victory in the case is on hold pending the court's decision.  

WazirX Forms Committee After $230M Hack

The Indian crypto exchange WazirX will form a Committee of Creditors (COC) to address the aftermath of the $230 million hack. Only 13% of creditors hold the majority (92%) of total claims, with about 500K high-value claims. The COC's role is consultative, offering feedback and monitoring the restructuring process, yet the company is not obligated to follow its recommendations.    

Aptos Labs Acquires HashPalette in Japan

Aptos Labs' acquisition of HashPalette enhances its presence in Japan's blockchain space. The move integrates businesses into Aptos' ecosystem, advancing Web3 innovation. APTOS coin surged by 1.48%, now at $7.98 with a market cap of $4.01B. The acquisition aims to empower Japanese enterprises with advanced technology and support local developers and NFT creators.  

LayerZero, EigenLabs Introduce Decentralized Verifier Networks

LayerZero Labs and Eigen Labs introduced the CryptoEconomic Decentralized Verifier Networks (DVNs) framework on October 2, enhancing the security of cross-chain messaging. The system combines technical verification with financial incentives, addressing issues in cross-chain security. It features mechanisms like token staking, message verification, and collateral slashing to ensure secure cross-chain communication. The framework is open source, allowing other teams to launch their own DVNs with customizable security parameters. LayerZero is currently a marketplace for DVN verifiers, with several entities participating. EigenLayer currently has $10.8 billion in total value locked.

Axelar’s Mobius Stack Connects Blockchains

Axelar has launched the Mobius Development Stack (MDS) as an interoperability platform designed to connect various blockchains. It offers customizable, self-service integration and promotes a holistic approach to interoperability across different systems, aiming to enhance user experience. The platform includes major L1 blockchains, an Interchain Amplifier, an Interchain Token Service, and advanced security features. 

Binance Labs Invests in Sophon Elastic Chain

Binance Labs invested an undisclosed sum in Sophon, a ZKsync "elastic chain". Sophon's total funding exceeds $70M, including a $60M node sale previously. Its mainnet launch is next month, releasing the SOPH token. With the ZK Stack framework, Sophon aims to create a seamless web3 ecosystem with retail-focused applications such as gambling and ticketing.  

OKX Expands with ETH/BTC Trading Pair

OKX expanded its offerings by introducing the ETH/BTC pair for direct crypto trading and listing MOODENG, NEIRO, PYUSD, and EIGEN. This move aims to enhance user experience and provide versatile trading solutions. 

Tron Network Revenue Hits $577 Million

The Tron Network achieved a record $577 million revenue in Q3, driven by a significant portion from staking and burning activities. The surge was attributed to increased stablecoin and memecoin market activities. Tron demonstrated strong performance compared to larger networks like Bitcoin and Ethereum, aligning with strategic expansion efforts in these sectors.  

Arthur Hayes Faces Meme Coin Losses

Arthur Hayes shifted his focus to meme coins but faced losses of $40,000 after exiting PEPE and Mog with a $500K investment. Despite this, he maintains positions in Pendle and Aethir. The market downturn, attributed to geopolitical tension, influenced Hayes' losses amidst a decline in meme coin market capitalization and Bitcoin's retracement.