Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 5, 2024

Major Crypto Market Updates

• Bitcoin Drops Below $57K Amid U.S. Economic Concerns
• Ethereum Underperforms Bitcoin, Faces Bearish Sentiment
• US Spot Bitcoin ETFs Experience Significant Net Outflows
• Monochrome Applies to Launch Ethereum ETF in Australia

Political Developments in the Crypto World

• Trump Leads Harris in Polymarket Betting Odds by 7%

Crypto Exchange & Platform Innovations

• Mercuryo Introduces Virtual Debit Cards in Europe
• EigenLayer Begins 86M Token Stakedrop Amid Decreased TVL
• Nvidia Denies DOJ Subpoena, Shares Rise in After-Hours Trading
• Changpeng Zhao Receives Lifetime Ban from Binance
• Synthetix Develops SNAXchain on Optimism Superchain Infrastructure
• Worldcoin Expands Global Distribution Amid Privacy Concerns

Tech and Security Advancements

• Superintelligence Alliance Pushes for Decentralized Cloud Services

Token Developments and Founder Moves

• Aave Founder Sells $6.67M AAVE Amid Rising Social Interest
• ApeCoin Reveals BluePrint Initiative Ahead of ApeChain Launch

Market Activity in Altcoins and Staking

• SunPump Token Creation Declines Amid Pump.fun Resurgence
• Injective Launches Tokenized Index for BlackRock's BUIDL Fund

Legal and Regulatory Updates

• Robinhood Crypto Settles $3.9M Penalty for Withdrawal Issues
• Ripple Requests Delay in $125M SEC Payment Amid Appeal

Crypto Adoption in Global Commerce

• Travala Integrates with Skyscanner for Global Crypto Payments

Stablecoin Developments

• DWF Labs Finalizes Synthetic Stablecoin Backed by Digital Assets

Staking Services on Major Blockchains

• Binance and Bybit Launch Solana Liquid Staking Services
• Competition Heats Up in Bitcoin Liquid Staking

Token Unlocks and Market Reactions

• Vitalik Buterin Unlocks 2.1M STRK Tokens, Sparks Market Speculation

Airdrops and Community Reactions

• Grass Airdrop Faces Backlash Over Low Token Rewards

Bitcoin Drops Below $57K Amid U.S. Economic Concerns

Bitcoin dropped below $57K, as concerns over the U.S. economy persisted, and large investors continued accumulating BTC, now holding 20.3% of its circulating supply. U.S. job openings hit a 3.5-year low at 7.67 million, missing the expected 8.09 million. This weak labor data fueled speculation about Federal Reserve rate cuts. Bitcoin's transaction volume dropped by 30% over six months due to market disinterest, with active addresses hitting three-year lows. Meanwhile, a Satoshi-era Bitcoin wallet holding 31 BTC was reactivated, yielding a 500,772% profit. Analysts predict BTC might retest $49.5K or rally between $85K and $120K, depending on whale accumulation and upcoming market conditions.

Ethereum Underperforms Bitcoin, Faces Bearish Sentiment

Since Ethereum's shift to proof-of-stake two years ago, Ether has underperformed Bitcoin by 44%, with further declines predicted (CryptoQuant, September 5, 2024). On July 23, U.S.-approved Ethereum ETFs failed to boost its performance. Meanwhile, the Ethereum Foundation recently sold 100 ETH, making the community worry of further sell-offs, as its total sales since January reached 2,616 ETH for $7.64 million. These factors have contributed to bearish market sentiment, with Ethereum’s price falling to $2,394 amid declining transaction fees and network activity.

US Spot Bitcoin ETFs Experience Significant Net Outflows

US spot Bitcoin ETFs experienced $37.29 million in net outflows on Wednesday, with Grayscale's GBTC leading the negative flows. Fidelity's FBTC and VanEck's HODL also saw significant outflows, while Bitwise's BITB was the only fund with net inflows. Total daily trading volume for the 12 ETFs decreased to $1.41 billion. Ethereum ETFs also recorded outflows of $37.51 million, marking the second consecutive day of negative flows.

Monochrome Applies to Launch Ethereum ETF in Australia

Monochrome Asset Management has applied to launch an Ethereum Exchange-Traded Fund (IETH) on Cboe Australia, aiming to offer retail investors regulated access to Ethereum. The fund, expected to be listed on major Australian brokerage platforms, aligns with new regulations and reflects the growing demand for transparent crypto investments in Australia's expanding crypto market.  

Trump Leads Harris in Polymarket Betting Odds by 7%

Recent Polymarket data shows Trump leading Harris by 7% on September 5, 2024. The betting odds indicate a 53% chance of victory for Trump, with Harris at 46%. Trump is ahead in four out of six swing states. It came as Future Forward, a Super PAC tied to Kamala Harris, is now accepting crypto donations via Coinbase Commerce. The move signifies Harris's increasing engagement with the crypto industry, with reports indicating talks with various crypto entities.

Mercuryo Introduces Virtual Debit Cards in Europe

Mercuryo has introduced Spend in Europe, enabling the creation of virtual debit cards linked to non-custodial crypto wallets for transactions at over 100 million merchants. The euro-denominated Mastercards facilitate seamless integration with Apple Pay or Google Pay, converting 40 cryptocurrencies into fiat instantly. Available across the European Economic Area, the service incurs nominal fees and plans international expansion.  

EigenLayer Begins 86M Token Stakedrop Amid Decreased TVL

EigenLayer is distributing 86 million EIGEN tokens in its Season 2 "stakedrop." The allocation includes 70 million tokens for stakers and active operators, 10 million tokens for AVSs and other contributors, and 6 million tokens for the community. Participants must claim their tokens by September 17, with the community requiring social identity verification. The TVL has decreased recently, while platforms like Symbiotic have experienced an increase.  

Nvidia Denies DOJ Subpoena, Shares Rise in After-Hours Trading

Nvidia denied receiving a DOJ antitrust subpoena, leading to a slight share price increase in after-hours trading. The DOJ reportedly questioned tech firms about Nvidia’s business practices, causing a temporary market capitalization drop. Despite recent challenges, Nvidia's share price rose slightly in after-hours trading, with a 120.5% increase in 2024.  

Changpeng Zhao Receives Lifetime Ban from Binance

Changpeng Zhao, the former CEO of Binance, has received a lifetime ban from managing the exchange due to legal violations. His departure left Binance with a seven-member board, and he retains influence as the largest shareholder. Despite a four-month prison sentence, his reported net worth is approximately $33 billion. Zhao is set to be released from incarceration on September 29 and plans to focus on investments in blockchain, AI, and biotechnology. He has stated that he will not hold any executive positions in future companies.

Synthetix Develops SNAXchain on Optimism Superchain Infrastructure

Synthetix has developed SNAXchain on Optimism's Superchain infrastructure, aiming to serve as a neutral hub for governance and protocol decisions. The network, a partnership between Synthetix, Conduit, and Wormhole, utilizes optimistic rollups to reduce transaction costs. This development coincides with a new governance epoch for Synthetix, initiating nominations for various governance councils.  

Worldcoin Expands Global Distribution Amid Privacy Concerns

Worldcoin, a project by Tools for Humanity, prioritizes global scalability through iris-scanning "Orbs." CEO Alex Blania focuses on mass distribution for usefulness, with over 6.5 million verified World IDs across 160+ countries. Upcoming updates on the next-gen Orb device are expected soon, aiming to enhance operational models and potentially collaborate with South Korean gaming industry players. Regulatory challenges have arisen in various jurisdictions due to privacy concerns around iris data collection.  

Superintelligence Alliance Pushes for Decentralized Cloud Services

The Artificial Superintelligence Alliance emphasizes decentralized cloud services to mitigate vulnerabilities in developing artificial general intelligence (AGI). Centralized cloud structures are deemed vulnerable to cyberattacks, underscoring the need for resilience and security. Decentralization is described as fostering innovation, democratizing computational resource access, and reducing barriers for smaller businesses. 

Aave Founder Sells $6.67M AAVE Amid Rising Social Interest

Aave's founder has sold $6.67 million AAVE since February amid rising social interest and strong price recovery, encouraging profit-taking. Metrics suggest potential overvaluation due to holders' unrealized profits and challenging price levels. Notably, AAVE could still offer good opportunities given its rising mindshare and support from crypto venture capitalists for the lending protocol.

ApeCoin Reveals BluePrint Initiative Ahead of ApeChain Launch

ApeCoin revealed the BluePrint initiative to boost community development ahead of ApeChain launch. The project plans to launch consumer applications and attract new users. A Yuga Labs employee confirmed the impending ApeChain launch. The ApeCoin token is currently trading around $0.61, showing a 97% decrease from its all-time high of $27.

SunPump Token Creation Declines Amid Pump.fun Resurgence

SunPump experienced a notable decline in token creation, with just 1,258 tokens generated, a significant drop from its peak. This decline contrasts with Pump.fun's resurgence, creating 5,824 tokens in the past 24 hours. Justin Sun teased a "celebrity season" for Tron amid SunPump's slipping metrics, hinting at upcoming developments. 

Injective Launches Tokenized Index for BlackRock's BUIDL Fund

Injective launches tokenized index for BlackRock's BUIDL fund, managing $517 million. The BUIDL Index, based on the fund's supply, allows investors to take long, short, and leveraged positions. The fund, exclusive to accredited investors, offers monthly payouts and runs on Ethereum. INJ's market cap is $1.6 billion, showing a 7% increase. On-chain Treasury funds see 150% growth, with Ethereum hosting 74%.  

Robinhood Crypto Settles $3.9M Penalty for Withdrawal Issues

Robinhood's crypto arm settled a $3.9 million penalty with the California Department of Justice for preventing users from withdrawing their cryptocurrency between 2018 and 2022. As part of the settlement, the company must enable crypto fund withdrawals, clarify its storage practices to users, and address security threats tied to the cryptocurrency network, emphasizing its commitment to providing cheaper cryptocurrency solutions.

Ripple Requests Delay in $125M SEC Payment Amid Appeal

Ripple requested a delay of a $125 million payment in its SEC case, offering to deposit 111% ($139 million) into a bank until the appeal is resolved. IOHK and Hedera joined the DeRec Alliance, collaborating with Ripple and Algorand to simplify crypto recovery and improve user experience. Ripple's case appeal remains pending.

Travala Integrates with Skyscanner for Global Crypto Payments

Travala, a crypto-focused travel platform, has integrated with global marketplace Skyscanner, accessing its 110 million monthly users. This marks Skyscanner's first partnership with a crypto-native platform. Travala offers access to 2.2 million properties in 230 countries and over 600 airlines, with over 100 cryptocurrency payment options and a crypto-based loyalty program.  

DWF Labs Finalizes Synthetic Stablecoin Backed by Digital Assets

DWF Labs recently announced the finalization of its synthetic stablecoin backed by a combination of digital assets, including Bitcoin and Ethereum. The stablecoin will be overcollateralized and supported by fiat stablecoins and select altcoins, each offering different APYs to encourage community adoption. This move aims to generate significant liquidity in the market and enhance the expanding stablecoin sector, addressing the demand for stable digital assets with high yields.

Binance and Bybit Launch Solana Liquid Staking Services

Binance announced plan to launch its Solana liquid staking service (BNSOL) in late September, boosting liquidity while maintaining control of staked SOL. Meanwhile, Bybit’s bbSOL token launch on Solana offers staking rewards with enhanced liquidity. Currently, 65% of SOL is staked, and Solana’s total value locked in liquid staking exceeds $3.79 billion, suggesting potential for Ethereum-like growth.

Competition Heats Up in Bitcoin Liquid Staking

Competition in Bitcoin staking intensifies as BNB Chain welcomes pSTAKE Finance's yBTC and Core unveils LstBTC, both offering liquid staking options. pSTAKE established Bitcoin liquidity on BNB Chain, with a TVL of $4.79 billion. Core's Layer 2 network, including Pell Network, has $317.5 million TVL. Additionally, the Babylon protocol rapidly reached its 1,000 BTC deposit limit. Zest Protocol on Stacks also introduces BTCz, a liquid staking token generating yield through the Babylon staking system, allowing Bitcoin holders to earn staking yield. Zest users deposit BTC to receive BTCz, appreciating over time, enhancing security with Stacks' ability to read Bitcoin state independently. 

Vitalik Buterin Unlocks 2.1M STRK Tokens, Sparks Market Speculation

Vitalik Buterin, co-founder of Ethereum, initiated the unlocking of 2.1 million STRK tokens, sparking community speculation and market analysis. The transfer signifies the end of the asset's vesting period, leading to concerns about potential token dumping. Despite this, STRK saw a 4.15% increase, trading at $0.401, with a 105.62% rise in market volume over the last 24 hours.  

Grass Airdrop Faces Backlash Over Low Token Rewards

The Grass airdrop, part of the DePin project, is under scrutiny due to low token rewards, frustrating over 2 million participants. The allocation of GRASS tokens, amounting to 10% of the total supply, and the absence of specific distributions have triggered discontent. Users expressed dissatisfaction, comparing their rewards to the cost of a "Big Mac." The rapid user growth diluting the airdrop's value is a significant concern. Despite the challenges, Grass remains influential in transforming public web data and has garnered $4.5 million in funding from prominent venture capitalists.