Coin360 Daily Dispatch | Crypto Market Updates & Highlights | April 8, 2024

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Crypto Market Update

Table of Contents

Market and Investment Trends

• Bitcoin Eyes All-Time High in Robust Rally
• Ethereum's Surge Amid Whale Accumulation
• Investor Confidence Peaks in BlackRock Bitcoin ETF
• USDe's Breakthrough: A New Era in DeFi
• Crypto Investments Surge to New Heights
• Memecoin Frenzy: Market Cap Soars in Q1 2024

Crypto Exchanges and Platforms

• 1inch Network Unveils Groundbreaking Crypto Card
• dYdX Bolsters Security with Massive Token Stake
• Coinbase's Base: A Rising Star in DeFi
• PancakeSwap Innovates with CLAMM Options Trading
• ParaSwap DAO Takes Stand on AugustusV6 Hack
• HashKey's Strategic Expansion into Bermuda

Regulatory and Legal Updates

• Binance's Legal Challenges in Nigeria Intensify
• DeFi's Legal Dilemma: The Mango Markets Case
• BitMEX Founder Cashes Out, Affects GMX Price

Banking and Liquidity Developments

• FTX Estate Liquidates SOL Tokens Amidst Recovery
• Genesis's Bitcoin Strategy for Creditor Repayment

Security and Fraud Concerns

• Phishing Scam Hits Etherscan Users Hard
• Bitcoin NFTs: Market Impact and Investor Caution
• Tensor Foundation Launches Governance Token TNSR

Bitcoin Eyes All-Time High in Robust Rally

Bitcoin regained $72,000 earlier today, edging close to its all-time high, with a 4.45% price surge amid increased futures open interest and $58 million in short position liquidations. Factors behind the surge include reduced selling pressure, a strong USDT market cap correlation, and substantial profits realized. Bitcoin ETF volumes reached $111 billion in March, indicating sustained interest ahead of the halving. 

The halving poses risks for home miners, with break-even prices ranging from $70,000 to $79,000, necessitating Bitcoin's price increase to maintain profitability. Analyst Ali Martinez predicts Bitcoin could reach $85,000 if it maintains above $70,800, marking a significant breakout from a consolidation phase.

Ethereum's Surge Amid Whale Accumulation

Ethereum (ETH) has seen a significant uptick in whale activity, with purchases totaling millions of dollars as the price surges above $3,600. Notably, two whales bought 10,322 ETH for $35.1 million, while another two whales acquired 11,675 ETH worth $40.28 million, indicating strong bullish sentiment. This buying spree coincides with a broader crypto market rally, with Bitcoin also experiencing a surge. 

Ether options open interest for the end of April expiry reveals a bullish sentiment, with $3.3 billion in notional ether options set to expire. Approximately two-thirds of this amount are bullish call options, concentrated between the $3,700 - $4,000 range. The ether put-call ratio for the end of April expiry sits at 0.45, indicating a slightly bullish position compared to bitcoin options.  

Investor Confidence Peaks in BlackRock Bitcoin ETF

BlackRock's IBIT ETF surged with a noteworthy $308 million inflow, nearing $15 billion total, signaling investor confidence. BTC ETFs show a bullish trend with the fourth consecutive day of net inflows. The firm also expands its Bitcoin ETF, increasing liquidity via new Authorized Participants like Citadel and Goldman Sachs.

USDe's Breakthrough: A New Era in DeFi

Ethena's USDe synthetic dollar has amassed over $500 million in Bitcoin collateral within a week, boosting its market capitalization to $2.14 billion, driven by substantial adoption and collaborations with major DeFi projects. Amid the growth, Frax Finance's governance proposal approves a $250 million USDe allocation for a new liquidity pool, aiming to create one of the largest DeFi liquidity pools, diversify backing yield, and mint new FRAX tokens.  

Crypto Investments Surge to New Heights

Crypto fund inflows reached $646 million last week, hitting a year-to-date peak of $13.8 billion, surpassing the 2021 record of $10.6 billion. Despite this, enthusiasm for Bitcoin ETFs is cooling, with inflows still robust at $663 million but not reaching early March's peak. Short Bitcoin products saw $9.5 million outflows, marking a bearish retreat. 

Ethereum experienced its fourth week of outflows, totaling $22.5 million, contrasting with inflows into Litecoin, Solana, and Filecoin. Solana, seen as a strong competitor to Ethereum, saw a significant price increase, outperforming Ethereum in the same period. The overall crypto investment sentiment remains positive, yet there's a moderation in ETF investor appetite, with weekly flows not matching early March's highs.

Memecoin Frenzy: Market Cap Soars in Q1 2024

The market cap of memecoins surged to $56 billion in Q1 2024, the highest since 2021, with Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB) among the winners, as per IntoTheBlock. DOGE saw 100% gains, SHIB 2.5x, and PEPE nearly 5x, with dogwifhat (WIF) on Solana (SOL) being the top performer with 20x yearly returns. The meme frenzy recently shifted back to Ethereum due to lower gas fees post-Dencun upgrade. 

Separately, a new class of 'culture coins' focusing on politics, religion, and consumer brands could outperform traditional memecoins like Dogecoin. Solana-based memecoins Jeo Boden (BODEN) and Doland Tremp (TREMP) emerged as examples, with BODEN gaining over 700,000% since launch. The top 10 memecoins averaged gains of 1,312.6% in Q1 2024, proving significantly more profitable than other crypto narratives.

1inch Network Unveils Groundbreaking Crypto Card

1inch Network, in partnership with Baanx and Mastercard, has introduced the 1inch Card, a crypto debit card. Users can utilize their digital assets for online and in-person purchases, as well as make cash withdrawals through seamless crypto to fiat conversion at supported ATMs. The card is designed to bridge the gap between traditional finance and the crypto world.  

dYdX Bolsters Security with Massive Token Stake

The dYdX platform faced its first major network outage after migrating to Cosmos, due to issues following a v4.0.0 protocol upgrade aimed at enhancing features like conditional orders. Despite halting block production, DYDX's market cap was unaffected. 

Concurrently, the dYdX community voted to stake 20 million tokens ($60 million) with Stride to boost network security and encourage stake diversity. This move aims to decentralize voting power and enhance economic security, addressing vulnerabilities in protocol control. Skeptics fear it may lower APR for existing stakers, potentially impacting token attractiveness and long-term growth.

Coinbase's Base: A Rising Star in DeFi

Coinbase's layer-2 network, Base, has surged in total value locked (TVL) by over 13.2% to surpass $4 billion, with 30-day transactions outpacing Ethereum and Arbitrum. Base is the third-largest Ethereum layer 2 by TVL, and its 30-day transaction count has exceeded Ethereum and rival Arbitrum. Additionally, Base's meme token market capitalization has risen significantly.  

PancakeSwap Innovates with CLAMM Options Trading

PancakeSwap collaborates with Stryke to introduce CLAMM Options Trading on Arbitrum blockchain, offering American-style options with flexible expiration durations. Users can trade options, contribute to liquidity pools, earn premiums, and leverage v3 pool liquidity. PancakeSwap's upcoming Version 4 promises enhanced on-chain trading features for increased efficiency and cost-effectiveness across Ethereum and BNB Chain networks.  

ParaSwap DAO Takes Stand on AugustusV6 Hack

The ParaSwap DAO has decided to compensate victims of the AugustusV6 contract vulnerability by using treasury funds after a community vote. Despite losing approximately $864,000, the recovery of around $500,000 was announced. In broader trends, a significant portion of hacked funds in March were successfully recovered, totaling nearly $100 million.  

HashKey's Strategic Expansion into Bermuda

HashKey Group has launched a global trading platform in Bermuda, targeting international users. With over 20 cryptocurrencies and stablecoins available, the platform aims to serve investors excluded from its Hong Kong services. The company's focus on regulatory compliance and plans to introduce futures trading demonstrate its strategic expansion and aim for market advancement.  

Binance's Legal Challenges in Nigeria Intensify

In Nigeria, detained Binance executive Tigran Gambaryan pleads not guilty to four money laundering charges. The court ruled he acted as Binance's representative. Hearings on bail and substantive charges are adjourned. Gambaryan remains in Kuje prison, while Nadeem Anjarwalla, Binance’s Africa manager, fled. Investigation reveals alleged manipulation of the Nigerian naira and tax fraud accusations.  

DeFi's Legal Dilemma: The Mango Markets Case

Avraham Eisenberg faces a criminal trial for allegedly manipulating Mango Markets to acquire $110 million in cryptocurrencies. Prosecutors claim he inflated futures contracts by 1,300%, exploiting a DeFi loophole. The case challenges the core DeFi principle that “code is law,” raising questions about legality. Civil suits by SEC, CFTC, and Mango Labs LLC further complicate the situation.  

BitMEX Founder Cashes Out, Affects GMX Price

Arthur Hayes, founder of BitMEX, transferred 237,000 GMX tokens to Wintermute probably for selling, realizing $3.2 million profit from his two-year investment if it was true. Initially acquiring 218,337 GMX for $6.5 million in 2022, he staked and accumulated rewards, growing his holdings to 237,672 GMX. Despite a 10% price drop post-news, GMX was valued at $41. 

FTX Estate Liquidates SOL Tokens Amidst Recovery

FTX Estate has liquidated $1.9 billion worth of SOL tokens at $64 each to pay off debts, attracting buyers despite being non-tradable. Galaxy Trading's $620 million fund and other firms' asset acquisition reflect interest in discounted Solana. The cryptocurrency's value plummeted before rebounding to a $76.9 billion market cap, making it the fifth-largest cryptocurrency.  

Genesis's Bitcoin Strategy for Creditor Repayment

Genesis Global Capital sold 36 million GBTC shares for $2.1 billion and used the proceeds to acquire 32,041 Bitcoin at a market price of $65,685. The Bitcoin will be distributed to creditors as part of its repayment plan. The company owes $3.5 billion and is set to commence repayment pending court approval, despite opposition from its parent company, Digital Currency Group.  

Phishing Scam Hits Etherscan Users Hard

A widespread phishing campaign targeting users of Etherscan, a popular Ethereum blockchain explorer, has been uncovered. Malicious advertisements on Etherscan and other platforms aim to trick users into connecting their cryptocurrency wallets to fraudulent websites, leading to fund theft. The scam has spread to search engines and social media, requiring vigilance from users and improved ad filtering.