Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 2, 2024

Crypto Market Update

Table of Contents

Market Trends and Investment

• Bitcoin Faces Selling Pressure Amid Weak September
• Ethereum Underperforms Bitcoin; Whales Show Bullish Signs
• Crypto Investment Products See Massive Outflows
• Spot Bitcoin ETFs Experience Record Outflows

Platform Updates and Developments

• Metaplanet Partners with SBI for Bitcoin Custody
• Solana Fund Flows Surge Despite Meme Coin Slump
• Coinbase Conducts First AI-to-AI Crypto Transaction
• OKX SG Secures Major Payment Institution License
• SEC Raises Concerns Over FTX's Bankruptcy Plan

Technology and Innovations

• Cardano's Hardfork Introduces User-Led Governance
• LayerZero Foundation Launches Community Program
• Frax Finance Launches Decentralized Identity Platform
• Libre Tokenizes Funds on NEAR Blockchain

Market Performance and Statistics

• Toncoin Drops Amid Telegram Deepfake Investigation
• DYAD Protocol Sees 950% Surge in TVL
• DeFi Protocol Fees Decline Sharply in August
• NFT Market Hits Low Amid Declining Sales

Bitcoin Faces Selling Pressure Amid Weak September

Bitcoin faces continued selling pressure, with prices down 8.6% in August, reaching a 2-week low under $58,000 before reclaiming this level, and historically weak September ahead. Despite this, Bitcoin whale wallets hit a 17-month high, with over 283 new wallets holding 100+ BTC. Analysts note that on-chain indicators like the Puell Multiple suggest a neutral market, advising caution. 

It happened as U.S. Vice President Kamala Harris's election odds fell to 47%, while Donald Trump's rose to 50%, surpassing Harris after being tied at 50-50. Key U.S. economic events this month, including CPI, PPI, and Fed rate decisions, could influence Bitcoin's trajectory amid ongoing market volatility. 

Ethereum Underperforms Bitcoin; Whales Show Bullish Signs

Ethereum significantly underperformed Bitcoin in August, dropping 22.2% compared to Bitcoin’s 8.6% decline, largely due to Jump Trading's alleged selling. Despite bearish trends, two Ethereum whales recently bought $19 million worth of ETH, indicating bullish sentiment. Ethereum’s RSI is in oversold territory, signaling a potential price reversal. 

Additionally, Ethereum's exchange inflows hit a 30-day low, further suggesting a buy signal, while technical indicators show possible short-term price fluctuations around $2,420 and $2,530. Analysis suggests that September might continue the bearish trend for major cryptocurrencies. Historically, September has been bearish, with six out of the last seven Septembers resulting in negative returns, averaging a 4.5% decline. 

Crypto Investment Products See Massive Outflows

Last week, cryptocurrency investment products faced significant outflows totaling $305 million, fueled by stronger-than-expected US economic data. Bitcoin saw the highest outflows at $319 million, while short Bitcoin products attracted $4.4 million in inflows, while Ethereum lost $5.7 million.

Spot Bitcoin ETFs Experience Record Outflows

On August 30, 2024, spot Bitcoin ETFs experienced its fourth consecutive day of outflows, totaling $479.8 million; notably, Fidelity’s FBTC, Bitwise’s BITB, ARK’s ARKB, Invesco’s BTCO, and Grayscale’s GBTC faced significant outflows. In contrast, Ethereum ETFs showed no activity on the same day, a first since the launch of US spot crypto ETFs. Despite the outflows, total ETF inflows stand at $17.6 billion. 

Metaplanet Partners with SBI for Bitcoin Custody

Metaplanet partnered with SBI for enhanced Bitcoin custody and trading, aligning with its corporate accumulation plan. Access to tax-efficient custody services and collateralized financing was emphasized. Metaplanet's Bitcoin investments, aiming for innovative funding mechanisms, have been substantial. Noteworthy is SBI's crypto involvement, evident through various partnerships and its licensed trading platform.  

Solana Fund Flows Surge Despite Meme Coin Slump

Solana experienced a significant 7,600% surge in fund flows, rising from $100,000 to $7.6 million during the week in anticipation of potential ETF approval. Contrary to claims of record-low on-chain volume, Solana's DEX volume hit $42 billion in August, its third-highest ever. Meanwhile, Solana's meme coins, particularly those from Pump.fun, have slumped, with some tokens dropping over 30% as interest wanes and traders shift to other platforms like Tron.

Coinbase Conducts First AI-to-AI Crypto Transaction

Coinbase facilitated the first-ever AI-to-AI crypto transaction on Aug. 30. CEO Brian Armstrong highlighted the use of AI agents purchasing AI tokens through crypto wallets, signaling a significant milestone. This development enables instant, global, and fee-free transactions, showcasing the potential for an AI-driven economy.  

OKX SG Secures Major Payment Institution License

Global crypto exchange OKX's Singapore branch, OKX SG, secured the Major Payment Institution license from MAS, enabling digital payment tokens and cross-border services. Gracie Lin, a former MAS official, was appointed as CEO. With a crucial focus on developing tailored crypto solutions, OKX aims to cater to Singaporean investors, a key priority market.  

SEC Raises Concerns Over FTX's Bankruptcy Plan

The SEC expresses reservations over FTX's bankruptcy repayment plan, particularly concerning the potential distribution of stablecoins to creditors. The filing emphasizes the SEC's authority to challenge such transactions under US securities laws. The upcoming October 7 hearing will be crucial in determining the plan's feasibility under SEC scrutiny.  

Cardano's Hardfork Introduces User-Led Governance

The recently implemented Chang hardfork enables Cardano's ADA holders to steer the platform's governance and decision-making. The first phase introduced user-led governance bodies, limiting prior committees' authority. Despite the successful upgrade, ADA's price dropped by 5%, likely influenced by market conditions. However, the hardfork marks a significant milestone as the platform transitions towards decentralized governance. 

LayerZero Foundation Launches Community Program

LayerZero Foundation introduced a Community Program, aiming to enhance community engagement with 5 million ZRO tokens as rewards for early participants. Members joining before June receive 25,000 ZRO tokens and must complete the migration process to qualify. The program encourages active involvement and offers various roles for community members, builders, and content creators.

Frax Finance Launches Decentralized Identity Platform

Frax Finance recently launched the Frax Name Service (FNS), a decentralized identity platform tailored for the Frax ecosystem. FNS integrates with Fraxtal, the layer two solution, and incorporates a token-burning mechanism. With 1 million FXS tokens burned annually for every 1,000 FNS names registered, aiming to enhance token utility and value. 

Libre Tokenizes Funds on NEAR Blockchain

Libre, in collaboration with Nomura's Laser Digital, Brevan Howard’s WebN group, and Hamilton Lane, has tokenized funds on the NEAR blockchain, surpassing $100 million in assets under management. NEAR's "Chain Signatures" tool allows seamless cross-chain transfers. Upcoming features include collateralized lending and secondary asset transfers. Additionally, a market-neutral fund is set to launch in October 2024.

Toncoin Drops Amid Telegram Deepfake Investigation

Toncoin's (TON) value has fallen to $5 following reports stating South Korean police's probe into Telegram for distributing deepfake pornography. The investigation was triggered by reports of explicit deepfake content circulating in Telegram chat rooms, prompting the president's call for a thorough investigation into digital sex crimes. 

Meanwhile, the TON blockchain surpasses 1 billion transactions, as recent growth led by a partnership with Telegram yielded 280,000 daily users and 800,000 daily transactions. DOGS memecoin airdrop caused network outages, with 20 million transactions leading to high fees and synchronization issues among validators.  

DYAD Protocol Sees 950% Surge in TVL

DYAD, a decentralized stablecoin protocol, has seen a remarkable surge in total value locked (TVL) by over 950% in the past month, reaching a record $36 million. Its success is attributed to generous yields and attractive yields targeting an annual percentage rate (APR) of over 45%. WETH is the most deposited token, accounting for over 53% of the token value. Kerosene's price has escalated by about 1,000% due to the surge in DYAD liquidity, and the project appears to be defying the broader DeFi market's struggle.  

DeFi Protocol Fees Decline Sharply in August

In August 2024, DeFi protocol fees declined significantly, dropping by 24.4% to $288 million compared to July’s $381.45 million. This decrease signaled diminished user engagement. Additionally, both DeFi and Bitcoin miner revenues experienced drops, with DeFi revenue falling by 19.7% to $59.53 million and Bitcoin miners facing a 10.5% revenue decrease amid market uncertainties and declining yields.