Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 20, 2023

Bitcoin's Surge Fuels Market Excitement

Bitcoin's recent surge above $44,000 has sparked a market buzz, especially with the potential introduction of a Bitcoin ETF. This surge, representing a significant increase from its early 2023 value of under $17,000, has brought other cryptocurrencies along for the ride. 

However, this rally also raises concerns about a possible price correction. Analysts point out that a large portion of Bitcoin's circulating supply is now in profit, which historically precedes corrections. Despite short-term risks, longer-term projections remain bullish, with targets reaching as high as $160,000 in this cycle. 

Key Players Meet on Bitcoin ETF Listing

BlackRock, Nasdaq, and the SEC had their second meeting in a month to discuss rule changes needed to list the Bitcoin ETF. The discussion focused on Nasdaq's rule change proposal to list shares of the iShares Bitcoin Trust. 

Nasdaq Rule 5711(d) outlines specific criteria for listing Commodity-Based Trust Shares, including requirements for initial and continued listing and measures to ensure market integrity. BlackRock has recently revised its spot Bitcoin ETF proposal to include cash redemptions, aligning with SEC preferences. 

Ethereum's Mixed Market Movements

Ethereum faces contrasting fortunes: a 28% decline against Bitcoin but a significant gain of 82% against the dollar. Vitalik Buterin's 500 ETH transfer to Coinbase raises questions. Controversy surrounds Ethereum's ICO, with 70% of pre-mined ETH allegedly distributed to founders. Despite market fluctuations, Ethereum's strong fundamentals and layer-2 growth signal a bullish future.

Solana Overtakes XRP, Marks Growth

SOL has recently flipped XRP to be the fifth-largest cryptocurrency. Solana's Q4 activity skyrocketed, outperforming Ethereum with a 400% increase in user activity, driven by token airdrops and a surge in its DeFi and NFT sectors. Trezor hardware wallets now support Solana and SPL tokens, coinciding with Solana's price rally and growing interest. 

Ondo Finance expanded its tokenized U.S. Treasury offerings to Solana, enhancing its DeFi ecosystem. Despite these advancements, running Solana nodes is costlier than Ethereum, with a 5X higher expense but offering higher throughput.

UK to Address Crypto Banking Challenges

UK Finance Minister Jeremy Hunt has agreed to discuss banking challenges faced by crypto firms with lawmakers. The UK aims to become a global crypto hub and has passed regulations recognizing crypto and stablecoins. Despite this, regulated firms encounter difficulty accessing banking services. The Economic Secretary of the Treasury will meet with the APPG to address this issue.  

Senators Debate Crypto Regulations

Senator Elizabeth Warren criticized crypto firms for hiring ex-government officials, citing regulatory concerns. Meanwhile, Senator Roger Marshall, co-sponsor of Warren's bill aimed at restricting Bitcoin, admitted bankers' involvement in its drafting, highlighting the financial sector's impact on crypto legislation.

China's NFT and DApp Development Plan

China's Ministry of Industry and Information Technology plans to boost NFT and decentralized app development, emphasizing governance and industry. The government intends to formulate strategy documents and launch pilots related to distributed digital identity. This initiative follows several local governments' pledges to develop the metaverse industry, aiming for a market size of 250 billion yuan by 2025.  

Cardano and Petrobras Partner Up

The Cardano Foundation has partnered with Petrobras, Brazil's largest corporation, to offer blockchain education to 45,000 employees. The program includes workshops, interactive quizzes, and the issuance of certificates and NFTs. This collaboration aligns with Cardano's strategy to engage with Fortune 500 companies and expand blockchain use cases in various industries.  

Justin Sun's Major SHIB Withdrawal

Tron creator Justin Sun recently withdrew $5.22 million worth of Shiba Inu (SHIB) from Binance, amidst a trend of significant withdrawals totaling $7.35 million in various assets. This suggests strategic accumulation in anticipation of a potential altseason. Analysts speculate on Sun's motives, emphasizing the need for independent investment decisions in the volatile cryptocurrency market.  

Ledger to Compensate Exploit Victims

Ledger will fully compensate victims of the $600k ConnectKit exploit by February 2024, addressing the recent $600,000 theft. They will also disable blind signing for EVM dApps by June 2024, emphasizing Clear Signing to enhance security. Collaboration with the DApp ecosystem and a commitment to bolstering security measures demonstrate Ledger's proactive approach.  

Atomic Wallet's New Security Initiative

Atomic Wallet launches a Bug Bounty Program with a $1,000,000 prize pool. It invites experts worldwide to identify security vulnerabilities, emphasizing the global community's contribution to security. The program covers various platforms and offers rewards up to $100,000 for critical risks. Clear guidelines prioritize responsible and ethical testing for enhanced security.  

Messari's 2024 Crypto Predictions

In 2024, Messari analysts expect Bitcoin (BTC), Solana (SOL), and AI tokens like OLAS, AKT, TAO, and RNDR to rise. They anticipate potential growth for altcoins TIA, PEPE, MKR, and RUNE. Despite positivity around stablecoins and retail-focused CBDCs, analysts are bearish on Ethereum as it faces competition from other chains. Messari CEO asserts technological advancements amidst past industry challenges and expects clearer trends in 2024.  

Notable Airdrops in the Crypto World

Access Protocol airdropped $250 in ACS tokens to Saga phone users post a BONK buying spree. Concurrently, Frame, an Ethereum NFT trading platform, announced a token airdrop for users active in the last two years, focusing on trade volume and creator royalties. FRAME tokens will initially be governance-focused and transfer-locked.

SEI Blockchain Hits Record High

SEI, a Layer 1 blockchain for high-speed trading, surged over 60% to reach an all-time high of $0.38, with an $850M market cap. While its TVL is $5M, the resurgence of Solana has renewed interest in parallelized blockchains. SEI's V2 will bring Ethereum compatibility, fusing Solana speed with EVM tooling.  

Frax Finance Diversifies with U.S. Treasuries

Frax Finance has allocated $20M of stablecoin collateral into U.S. Treasuries via Centrifuge Prime. Centrifuge offers infrastructure for DAOs to invest in real-world assets. This move signifies the continued trend of tokenizing non-crypto assets and the growing interest in diversifying DAO holdings. The total value of tokenized Treasuries currently stands at $775.4M.  

Coq Inu's Meteoric Rise in the Market

A trader turned a $450 investment in Coq Inu (COQ) into over $2.5 million. COQ, a meme token on the Avalanche network, has surged to a $230 million market cap and gained over 30,000 unique holders. The token's rapid growth, despite being labeled as having no intrinsic value, reflects the potential of meme coins in the crypto market.  

Ark Invest Adjusts Crypto Holdings

Ark Invest sold $5.5 million worth of Coinbase shares and $1.6 million of Robinhood shares. Coinbase stock reached new yearly highs, trading at $161.16, up 5% for the day, 66% over the past month, and 342% year-to-date. Robinhood stock also surged, trading at $13.17, up 10% and 65% over the past month.  

Avail and StarkWare Collaborate

Avail is collaborating with StarkWare to bring data availability to Starknet Layer 3 appchains on testnet. This solution will be integrated into Starknet app-chains developed using Madara, a customizable sequencer, and is scheduled for mainnet release in Q1 2024. Avail aims to optimize costs and performance for Layer 3s settling transactions on Starknet's Layer 2 and Ethereum.  

Bitfinex's First Tokenized Bond

Bitfinex Securities issued the first tokenized bond on the Liquid Network, raising over $5 million in USDT. The bond, in collaboration with Mikro Kapital, has a 36-month tenor, a 10% coupon, and uses the ticker ALT2612. Tether CEO Paolo Adoino aims to bridge traditional and crypto investors through asset tokenization and the use of USDT.  

Top Altcoin Gainers and Losers

Gainers:

Stacks STX (+27.60%)

NEAR Protocol NEAR (+25.06%)

Mina MINA (+20.49%)

Losers:

WOO Network WOO (-5.29%)

FTX Token FTT (-3.72%)

Bitget Token BGB (-3.41%)