Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 17, 2024

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin rallies to $61K as altcoins struggle.
• DeFi loses $5B, while ETH flows to LSDs.
• Bitcoin ETFs see sharp drop in net inflows.
• MicroStrategy plans $700M debt for more Bitcoin.
• Deutsche Digital Assets launches Bitcoin Macro ETP.
• Bitcoin expands use cases on Aptos and EigenLayer.
• Fantom price surges ahead of Sonic upgrade.
• Uniswap's UNI token unlocks with minimal impact.

Banking and Institutional Adoption

• DBS to launch crypto options trading for clients.
• Bhutan ranks 4th in global bitcoin mining.
• WalletConnect introduces WCT token with 185M airdrop.
• Hedera launches asset tokenization studio.
• Dragonfly aims to raise $500M for new crypto fund.
• Prager Metis settles SEC charges over FTX audits.

Crypto Platforms and Partnerships

• Hamster Kombat to launch HMSTR airdrop after snapshot.
• Binance denies involvement in WazirX hack.
• MoviePass partners with Sui for USDC payments.
• TON Foundation partners with Curve for stablecoin swaps.
• IoTeX integrates with Polygon for cross-chain liquidity.
• Lens Protocol integrates Avail for Layer 2 scaling.
• Trust Wallet refutes TWT delisting and hacking rumors.

U.S. Election and Political Developments

• Trump's platform boosts political meme coins.
• Wintermute launches U.S. election betting platform.

NFT and Tokenization Projects

• Mocaverse and Magic Eden launch NFT platform.
• SEC overreach criticized over Flyfish Club NFT penalty.

Bitcoin rallies to $61K as altcoins struggle

Bitcoin briefly surged to $61,000, leading the crypto rally, while Binance order books show sell orders between $61,000 and $62,500, suggesting a cap on further gains. The yen hit a one-year high against the dollar at 140.69, reflecting market anticipation of a 37% odd of 50-basis-point Fed rate cut. Bitcoin's market dominance increased, especially as altcoins, including Ethereum, underperformed, as Ethereum ETFs failed to attract demand. Meanwhile, U.S. Treasury yields dropped significantly, and investors focus on central bank policies, with Bitcoin continuing to be viewed as a safe-haven asset amidst economic uncertainty.

DeFi loses $5B, while ETH flows to LSDs

Over the past 38 days, $5.07 billion left DeFi, but 400,000 ETH, valued around $943 million, flowed into Liquid Staking Derivatives (LSDs), according to DefiLlama data. Total ETH in LSDs grew from 13.59M to 13.99M, with Lido holding 69.85%. Rocket Pool dropped to 3rd, while Binance's Staked Ether app surged to 2nd place with 1.32M ETH.  

Bitcoin ETFs see sharp drop in net inflows

On September 16, Bitcoin ETFs experienced a substantial drop in net inflows, dwindling to $12.8 million from $263.2 million. Five out of nine spot ETFs, like Bitwise and Ark, saw zero flows, while Grayscale's $20.8 million outflow contributed to the decline. Ethereum ETFs registered a 9.51M outflow on the same day, pushing its total outflow to $590.8 million, with Grayscale's ETHE leading with a $13.8 million outflow. 

MicroStrategy plans $700M debt for more Bitcoin 

MicroStrategy is planning its third debt offering of 2024, aiming to raise $700 million through convertible senior notes. The firm intends to use the proceeds to pay off existing debt and acquire more Bitcoin, reinforcing its commitment to a BTC strategy. With 244,800 BTC holdings worth around $14.24 billion, the company's overall unrealized profit from aggregate BTC purchases is approximately 50%. However, MicroStrategy's stock has mirrored Bitcoin's price, declining 30% since March.  

Deutsche Digital Assets launches Bitcoin Macro ETP

Deutsche Digital Assets launched the world's first Bitcoin Macro ETP, BMAC, on Euronext Paris, offering investors dynamic, systematic exposure to Bitcoin and USDC. The ETP tracks the Compass FT DDA Bitcoin Macro Allocation index, is 100% physically backed by cryptocurrencies, and has a total expense ratio of 2.00%. BTC's price fluctuated between $52,000 and $64,000 in the past 30 days. 

Bitcoin expands use cases on Aptos and EigenLayer

Bitcoin's integration on Aptos and EigenLayer highlighted new use cases. Stacks introduced sBTC to Aptos, enabling BTC use across decentralized apps. EigenLayer allowed Bitcoin restaking through tBTC, unlocking $45,000 in incentives and increasing Bitcoin's presence in DeFi. Approximately 3,411 BTC have been locked in tBTC, promoting further DeFi expansion through Threshold Network partnerships.

Fantom price surges ahead of Sonic upgrade

Fantom's (FTM) price surged by 40% in a month, reaching a high of $0.58. This growth, partly driven by the upcoming Sonic upgrade in November, includes a 25% rise in the last week. Whale accumulation and improved network performance signal bullish momentum, according to Santiment data, with the potential for a further 13% increase to $0.63.

Uniswap's UNI token unlocks with minimal impact

Uniswap's 1 billion UNI tokens are fully unlocked, with only 25.83% in circulation, largely due to holdings by community treasury, team members, investors, and advisors. Notable is over 700 million tokens held by key stakeholders, contributing to a stable market. Recent net outflows suggest potential accumulation, while a relatively stable price reflects effective absorption of changes.  

DBS to launch crypto options trading for clients

Singapore's largest bank, DBS, intends to launch crypto options trading and structured notes for institutional clients. The move will allow clients to invest in Bitcoin and Ethereum through sophisticated financial instruments. Clients can use options strategies to manage market exposure, while DBS explores blockchain technology to streamline liquidity management and government processes.

Bhutan ranks 4th in global bitcoin mining

Bhutan has emerged as a major player in bitcoin mining with holdings estimated at $780 million, ranking it fourth globally. Unlike other countries, Bhutan's cryptocurrency wealth is from its mining operations powered by abundant hydropower. Strategic mining facility locations and a partnership with Bitdeer aim to boost capacity to 600 megawatts by 2026, showcasing Bhutan's eco-friendly and diversification efforts.  

WalletConnect introduces WCT token with 185M airdrop

WalletConnect is launching its native Connect Token on Optimism's Layer 2 network OP Mainnet, airdropping 185 million WCT tokens to users. Registration for the airdrop begins on September 24, with eligibility based on WalletConnect Network usage. The WCT token will have an initial supply of 1 billion, with a focus on governance and ecosystem development.  

Hedera launches asset tokenization studio

Hedera launched an asset tokenization studio on Sept. 17, aimed at promoting real-world asset (RWA) proliferation. The toolkit facilitates issuance of bond coupons, stock dividends, and compliance with regulations. This move coincides with the BIS's Project Agorá, which attracted 41 new members to work on integrating tokenized bank deposits with central bank digital currencies for more efficient cross-border payments.  

Dragonfly aims to raise $500M for new crypto fund

Crypto VC firm Dragonfly is aiming to raise $500 million for its fourth fund and has raised $250 million according to Bloomberg. The San Francisco-based firm has recently invested in Agora, MyShell, Morph, and MegaLabs. The fund targets early-stage crypto projects and plans to close by the end of the first quarter next year. Such funding aligns with the sector's upward trajectory, including a $1.9 billion rise in Q1 2024 for Web3 startups. Additionally, the firm previously raised $650 million for its third fund in 2022, and industry peers have also been active in pursuing early-stage crypto opportunities.

Prager Metis settles SEC charges over FTX audits

Prager Metis settled SEC charges, agreeing to pay $745,000. The SEC alleged misconduct in audits for FTX, noting misrepresentation of compliance and failure in risk assessment. Prager faces negligence-based fraud charges, a civil penalty, and remedial actions, emphasizing the importance of auditor independence and investor protection amidst FTX's collapse due to fraud and a liquidity crisis.

Hamster Kombat to launch HMSTR airdrop after snapshot

Hamster Kombat, the leading Telegram tap-to-earn game, is concluding its first in-game rewards season on September 20 before the HMSTR token launch on TON on September 26. With over 300 million total players, Hamster Kombat plans a significant airdrop, aiming to distribute billions of tokens to Binance customers through a Launchpool campaign. The team is set to take a snapshot of player earnings and status on September 20 to determine token allocations, potentially adding technical pressures to the TON network.  

Binance denies involvement in WazirX hack

Binance denies responsibility for the $230M WazirX hack, refuting claims of controlling the Indian exchange. They emphasized that the acquisition never materialized, clarifying the relationship between the two. Binance called out WazirX's CEO for inaccurate statements and its attempt to shift blame. The dispute revolves around the need for WazirX to be accountable for user funds.  

MoviePass partners with Sui for USDC payments

MoviePass partnered with the Sui network to allow USDC payments and offer digital rewards and collectibles. Circle also expanded USDC availability in Brazil and Mexico via PIX and SPEI banking systems, targeting businesses. USDC's global market cap reached $35.50 billion. Mercado Pago and Tether are also advancing stablecoin initiatives in these regions.

TON Foundation partners with Curve for stablecoin swaps

The TON Foundation partners with Curve Finance to incubate a TON-based stablecoin swap project, aiming to enhance stablecoin trading efficiency on the TON blockchain. By leveraging CFMM technology, the collaboration seeks to improve user experience, support various assets, and respond to the growing demand for stablecoins, particularly USDT, reaching $730 million in circulation within four months of launch.  

IoTeX integrates with Polygon for cross-chain liquidity

IoTeX collaborates with Polygon Labs to integrate IoTeX 2.0 blockchain with AggLayer for cross-chain DePIN liquidity. This partnership enables rewards distribution and user settlements on preferred chains. AggLayer promotes unified liquidity and security through ZK proofs. The integration enhances DePIN project scalability in a multi-chain environment, fostering growth and interoperability.

Lens Protocol integrates Avail for Layer 2 scaling

Lens Protocol has partnered with Avail to integrate its data availability solution into the upcoming Layer 2 chain, the Lens network, tailored for social networking infrastructure. Utilizing Avail's DA, Lens will enhance scalability and reduce storage demands. The DAS technique enables efficient data verification, crucial for high-traffic applications like social media.  

Trust Wallet refutes TWT delisting and hacking rumors

Trust Wallet dismissed Binance delisting rumors and hacking claims regarding TWT as false. The baseless FUD triggered a 25% drop in TWT's price, leading to Trust Wallet's clarification. Despite previous security incidents, Trust Wallet backs TWT but does not own it. Currently, TWT is trading at $0.825, down nearly 13% from Tuesday's session. 

Worldcoin brings IDs and micropayments to Solana

Worldcoin's integration of World IDs into Solana through Wormhole aims to enhance user verification and enable faster micropayments. This move addresses real-world issues like spam and bot mitigation on the Solana network. World ID adoption by Solana projects like DRiP, DSCVR, and Flojo is already underway, with potential for various micropayment use cases.  

Trump's platform boosts political meme coins

Former President Donald Trump's livestream focused on national plans, not revealing his family's new crypto platform, World Liberty Financial. However, according to Zak Folkman, a leader from the World Liberty Financial team, the platform will reportedly have a token sale, distributing 63% to U.S. accredited investors. The governance tokens will offer voting rights only, with no economic benefits. 

The platform aims to simplify DeFi for regular users. Following the Trump family interview introducing World Liberty Financial, Trump-themed meme coins surged against the USD, with maga up 10%, MAGA up 9.6%, TREMP up 7.9%, and STRUMP up 2.7%. Political meme coins rose by 2%, driven by Trump's comments on Kamala Harris and endorsement of cryptocurrencies.

Wintermute launches U.S. election betting platform

Wintermute is launching OutcomeMarket on Ethereum, Base, and Arbitrum in September 2024, offering TRUMP and HARRIS tokens as betting options for the U.S. election. Simultaneously, dYdX plans to introduce perpetual futures for prediction markets through its Unlimited upgrade, which includes the MegaVault for liquidity. dYdX aims to challenge centralized platforms with leveraged bets on binary outcomes, expanding its DeFi offerings.