Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 10, 2024

Crypto Market Update

Table of Contents

Market Trends and Volatility

• Bitcoin Faces Volatility Despite $57K Reclaim
• Ethereum Selling Pressure Eases Amid ETH Transfers
• Spot Bitcoin ETFs Attract Fresh Investments
• Metaplanet Expands Bitcoin Holdings with Debt Strategy

Regulatory and Financial Updates

• Tether and Partners Launch Financial Crime Unit
• PayPal and Venmo Integrate Ethereum Name Service
• New Crypto ETFs from State Street and Galaxy
• Paxos Boosts Ethereum Layer 2 with Arbitrum Expansion
• Japan Introduces Yen-Backed Stablecoin

Technological Innovations and Partnerships

• Polygon Labs Develops Zero-Knowledge Chips
• Aave Enhances Liquidity for Ether and Stablecoins
• Singapore Investigates Unauthorized Worldcoin Transactions
• Standard Chartered Expands Crypto Services in UAE
• Lawmakers Debate DeFi Regulation Challenges

Exchange and Trading Updates

• Kraken Regulated for Fiat Margin Trading in Australia
• Wintermute Boosts NEIRO Price as Market Maker
• Nansen Acquires StakeWithUs to Expand Staking Services
• AI Crypto Market Surges After Apple’s iPhone 16 Announcement
• Tron’s TRX Drops as Meme Coin Interest Wanes

Emerging Trends and Developments

• Friend.tech Sees Surge Amid Shutdown Concerns
• DOGS Game Gains Popularity on Telegram
• Monero Privacy Defended Against Chainalysis Claims
• Merlin Chain Deploys Zero-Knowledge Bitcoin Bridge
• ARPA Network Rewards Restakers with ARPA Tokens
• FTX Proposes Settlement to Regain Robinhood Shares
• Kujira Forms Alliance to Build DeFi App Layer
• DeGods NFT Partners with BlockBetGG

Bitcoin Faces Volatility Despite $57K Reclaim

Bitcoin still faces potential challenges despite reclaiming $57,000 amid a historically poor September performance. Volatility has surged by 70%, with options markets signaling a 3.3% price swing due to macroeconomic factors like the U.S. Consumer Price Index release and the upcoming election. Historically, September’s market struggles are attributed to factors like risk asset rebalancing and SEC enforcement actions. Despite ongoing uncertainty, some analysts predict a rally in Q4, supported by a potential Federal Reserve rate cut and Bitcoin ETFs recovering losses after an eight-day streak.

Ethereum Selling Pressure Eases Amid ETH Transfers

Hope for decreased Ethereum’s selling pressure is rising, with exchange inflows hitting a low of 37,415 ETH. However, Metalpha, a Hong Kong-based firm, moved 23,589 ETH (worth $54.1 million) to Binance over three days, potentially impacting ETH prices. Ethereum traded at $2,370, with bearish sentiment persisting but signs of a potential breakout.

Spot Bitcoin ETFs Attract Fresh Investments

On Monday, spot Bitcoin ETFs reversed an eight-day outflow trend by attracting $28.72 million in fresh investments. Fidelity’s FBTC led with $28.6 million inflow, while Grayscale’s GBTC and Blackrock’s IBIT faced losses. The 12 funds collectively hold $51.31 billion in assets. In contrast, nine spot Ether ETFs saw outflows of $5.2 million.  

Metaplanet Expands Bitcoin Holdings with Debt Strategy

Metaplanet recently acquired 38.6 Bitcoin for $2.2 million, increasing its holdings to 398.8 BTC. The strategy of using debt to expand Bitcoin reserves mirrors MicroStrategy's approach. Marathon Digital and Semler Scientific also leverage debt to boost Bitcoin holdings, predicting significant appreciation potential and highlighting the evolving landscape of corporate finance and cryptocurrencies.

Tether and Partners Launch Financial Crime Unit

Tether, TRON, and TRM Labs initiated the T3 Financial Crime Unit, targeting USDT misuse on the TRON blockchain. The collaboration facilitated the freezing of over 12 million USDT associated with fraudulent activities via law enforcement agencies. TRM Labs' 2023 report revealed that a significant portion of illicit crypto activity occurs on the TRON blockchain, emphasizing the need for proactive measures. This aligns with Tether's previous initiatives to freeze substantial sums linked to illicit activities, reinforcing its stance against cybercrime and emphasizing the significance of strategic collaborative efforts in the crypto space.

PayPal and Venmo Integrate Ethereum Name Service

PayPal and Venmo have integrated Ethereum Name Service (ENS), streamlining crypto transactions by replacing long wallet addresses with ENS usernames. This simplifies payments, reduces errors, and allows users to enter ENS names directly for accurate transactions. ENS, with over 2 million on-chain names, enhances usability, making crypto payments more secure and user-friendly.  

New Crypto ETFs from State Street and Galaxy

State Street Global Advisors and Galaxy Asset Management have introduced three new crypto-focused ETFs—DECO, HECO, and TEKX. These ETFs target different aspects of the blockchain and digital asset industries while managing volatility. Despite recent outflows from crypto investments, today marked the first day of modest spot Bitcoin ETF inflows.  

Paxos Boosts Ethereum Layer 2 with Arbitrum Expansion

Paxos expands to Arbitrum One, boosting Ethereum's Layer 2 ecosystem. The stablecoin issuer joins the popular Layer 2 network known for its fast transactions and security, with over $2.5B TVL. While specific products are not disclosed, Paxos' expansion emphasizes the growing importance of stablecoins and aims to lead adoption in the digital economy. 

Japan to Introduce Yen-Backed Stablecoin

Sony Bank and Soneium join forces to introduce Japan's first yen-backed stablecoin, focusing on reducing transaction costs and enhancing financial efficiency. The collaboration aims to leverage blockchain technology to streamline payments and ensure compliance with Japan's regulatory framework. This initiative could potentially revolutionize Japan's financial sector and support the country's Web3 adoption efforts.  

Polygon Labs Develops Zero-Knowledge Chips

Polygon Labs partners with Fabric to unveil custom zero-knowledge chips for the AggLayer, enhancing interoperability across blockchain networks. The $5M investment in VPUs accelerates ZK-proof generation, reducing adoption timeline to 6-12 months. This collaboration aims to bring real-time, cost-effective proofs, pushing development beyond previous expectations.  

Aave Enhances Liquidity for Ether and Stablecoins

Aave's EtherFi market within its v3 protocol enhances liquidity for wrapped Ether and stablecoins. It addresses high demand for stablecoin borrowing, providing leverage for USDC, PYUSD, and Frax. Positive outlook with price targets of $200 and $260. Analysts upbeat on Aave's potential for continued growth in decentralized finance with the EtherFi market.  

Singapore Investigates Unauthorized Worldcoin Transactions

Singapore is investigating unauthorized Worldcoin transactions, citing potential violations of the Payment Services Act 2019. Deputy Prime Minister Gan Kim Yong stressed compliance for safety. Five arrests were made for luring individuals to open Worldcoin accounts. Global scrutiny on privacy concerns adds significance to the investigation, as authorities emphasize the importance of consumer protection.  

Standard Chartered Expands Crypto Services in UAE

Standard Chartered has expanded its crypto service in the UAE, obtaining a license from the Dubai Financial Services Authority to offer digital asset custody within the DIFC. The bank's initial focus will be on Bitcoin and Ether, with plans to support more digital assets and expand to other financial hubs in the future.  

Lawmakers Debate DeFi Regulation Challenges

Lawmakers debate DeFi regulation, with divides on approach and uncertainty in defining DeFi. Recent bills have directed regulatory bodies to study DeFi, while the SEC has proposed rules and begun cracking down on DeFi projects. Rep. Waters criticized Trump-backed crypto project, World Liberty Financial, citing risks of hacks, scams, and conflicts of interest.  

Kraken Regulated for Fiat Margin Trading in Australia

Kraken’s fiat margin trading in Australia is now regulated by the Federal Court, contrasting with its unregulated crypto margin trading. The exchange restricted fiat margin trading to wholesale investors under the Corporations Act 2001, emphasizing the necessity of transparent cryptocurrency regulations and its commitment to compliance. This aims to address the implications of the ruling, underscoring the urgent need for clear and specific regulations in Australia.

Wintermute Boosts NEIRO Price as Market Maker

Wintermute accumulates and serves as a market maker for NEIRO on ETH, boosting its price to $0.20 with a 10x gain. NEIRO gains attention among meme tokens, with 22,221 holders, aiming to rival top meme assets. Wintermute holds 0.54% of NEIRO supply, previously holding up to 15M NEIRO, and engages in high-frequency trading.  

Nansen Acquires StakeWithUs to Expand Staking Services

Nansen acquires StakeWithUs to expand staking services across 20+ blockchains, enhancing analytics for investors. The integration allows for seamless onchain staking of various assets like Solana and Cosmos. Plans include adding more tokens based on demand. Nansen partnerships with Aptos and future focus on maintaining uptime and security.  

AI Crypto Market Surges After Apple’s iPhone 16 Announcement

Following Apple's announcement of AI features in the iPhone 16, the AI crypto market has surged, with a 7% increase to a market cap of $22.22 billion. Tokens like FET and TAO led the rally with 10% gains. This surge was also influenced by Jim Cramer's remarks on Nvidia, boosting confidence in AI-related crypto tokens. This suggests growing adoption and utilization of AI technologies, driving further interest in the sector.  

Tron’s TRX Drops as Meme Coin Interest Wanes

Tron's TRX briefly slips out of the top 10 cryptocurrencies as meme coin traders lose interest in SunPump launchpad. With SunPump creating fewer tokens daily, TRX fell 9.5% from its recent peak, allowing Toncoin (TON) to take its place. Despite this, Tron's meme coins like SUNDOG and Muncat are performing well in the market.  

Friend.tech Sees Surge Amid Shutdown Concerns

Friend.tech team clarified concerns over shutdown, leading to a 40% surge in FRIEND token value. The decision to relinquish smart contract control sparked uncertainty and community backlash. Revenue and user engagement suffered a significant decline, with daily fees plummeting from $2 million to $10,000. The platform's future remains uncertain amid these developments.  

DOGS Game Gains Popularity on Telegram

DOGS, a tap-to-earn game on Telegram, has swiftly amassed 53 million users, distributing its native token widely across 4.5 million wallet addresses. This newly launched game has also introduced GhostDrive, a Web3 storage platform attracting 740,000 monthly users, encouraging secure data storage with opportunities for monetization through various channels.  

Monero Privacy Defended Against Chainalysis Claims

Former Monero committee member Csilla Brimer has refuted recent allegations claiming that Chainalysis could trace Monero (XMR) transactions. She explained that users can safeguard their IP address by running their own Monero node or using the privacy-focused web browser Tor. Monero, with a market capitalization of $3.1 billion, remains the world's largest privacy coin. 

Merlin Chain Deploys Zero-Knowledge Bitcoin Bridge

Merlin Chain and BitcoinOS have partnered to deploy the Grail Bridge, a zero-knowledge proof (ZKP) powered Bitcoin bridge, aiming to enhance cross-chain security and scalability. The collaboration introduces trustless bridging for Bitcoin-native assets and focuses on future developments like expanding the bridge's capabilities and launching new decentralized applications. The first verified ZKP on the BTC mainnet has been successfully achieved.  

ARPA Network Rewards Restakers with ARPA Tokens

ARPA Network, leveraging EigenLayer, will reward restakers in ARPA tokens soon. They also plan to introduce bonuses in EIGEN tokens. EigenLayer, a significant player in restaking with a TVL of $11 billion, aims to enhance yields. ARPA's integration with EigenLayer boosts its network security, now supported by over $2.9 billion in staked ETH.

FTX Proposes Settlement to Regain Robinhood Shares

FTX has proposed a $14 million settlement with Emergent to regain control of over $600 million in Robinhood shares. The motion aims to cover Emergent’s administrative expenses and avoid further legal battles. This settlement is part of FTX’s reorganization strategy to maximize creditor repayment value, with a court hearing set for October 22, 2024. 

Kujira Forms Alliance to Build DeFi App Layer

Kujira merged with ecosystem partners to form the Rujira Alliance, aiming to build a robust DeFi app layer for THORChain. The new layer plans to offer a range of DeFi products and solve issues like maximum extractable value. Despite Kujira's past controversies, the project looks to revitalize with a new token, RUJI. THORChain's native token, RUNE, saw an 8% rally post-announcement.