Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 28, 2023

Bitcoin Dominance’s Two-Month Low Triggers Altseason

Bitcoin's dominance dips to its two-month low at 51.43%, fueling an altseason led by altcoins like Ethereum. Despite Bitcoin's 156% rally, traders stay cautious amid regulatory uncertainties and the potential approval of Bitcoin ETFs. Concerns of a "sell the news" event loom, with possible corrections if a spot Bitcoin ETF is greenlit.  

Short-term Bitcoin holders sent $2 billion to exchanges on Dec. 27, with a majority experiencing losses. However, over $1.2 billion in profits were transferred, marking the third-largest single day profit event. Despite this, short-term holders increased their Bitcoin supply, while long-term holders sold off approximately 60,000 Bitcoin.  

Ethereum's Surge Outshines Bitcoin and Solana

Ethereum outperforms Bitcoin and Solana with an 8.9% spike to nearly $2,450, driven by broader altcoin rallies and Bitcoin purchases. Analysts predict a bullish future, eyeing a $3,485 target. Ethereum's surge to $2,400 hints at a 2024 bull run, with potential resistance at $2,500 and $2,550, despite cautious institutional investors. Ethereum's surge is overshadowed by scaling project tokens: Optimism (OP), Arbitrum (ARB), and Polygon's MATIC.

Vitalik Buterin's Proposal to Streamline Ethereum's PoS

Vitalik Buterin proposes simplifying Ethereum's PoS, reducing validator signatures to ease blockchain load. Arbitrum, reportedly praised by Buterin, sees a price surge in its token following its advancement to stage 1 rollup, indicating decentralization and market optimism. Ethereum's price movements closely influence Arbitrum's market trends.

Hong Kong Introduces Rules for Bitcoin ETFs

The Hong Kong Securities and Futures Commission (SFC) has introduced rules for spot bitcoin exchange-traded funds (ETFs), allowing both cash and in-kind creation models. The SFC emphasizes investor protection and requires transactions to be conducted through licensed platforms. Meanwhile, the U.S. SEC insists on the exclusive use of the cash creation model for spot bitcoin ETFs.  

Ledger Live's User Tracking Raises Privacy Concerns

Ledger Live, associated with Ledger crypto hardware wallets, reportedly tracks users. Developer REKTBuilder found a code in Ledger Live that logs apps on users' devices, revealing their network usage. Efforts to remove this tracking failed, suggesting an inherent tracking mechanism. Despite privacy issues, users persist with Ledger Live, lacking alternatives for certain cryptos. REKTBuilder previously highlighted balance tracking and offered a "tracker-free" alternative.

Binance's Legal Challenges and BNB's Resilience

In 2023, Binance faced legal challenges, including a multi-billion dollar SEC lawsuit and scrutiny from the DoJ and CFTC, leading to fines and severed US bank ties. Despite this, Binance Coin (BNB) showed resilience, recovering from a decline with increased DApp usage on the Binance Smart Chain. BNB's market cap reached $48 billion, reclaiming the 4th position from Solana, with predictions suggesting new all-time highs surpassing $686 in early 2024.

GBA Capital's $10 Billion Web3 Fund in China

Chinese VC GBA Capital plans to launch a $10 billion Web3 fund, targeting virtual reality, the metaverse, and nonfungible tokens. Backed by China’s National Engineering Laboratory, the firm aims to establish the region as the "meta-asset capital" and conduct global tours. Its subsidiary Zhongrong Global secured angel funding for Web3 project incubation and AI industrial services.  

Tether's Market Value Hits $91 Billion

Tether's CEO, Paolo Ardoino, announced the company's market value reaching $91 billion, with $4 billion added to its stablecoin reserves in 2023. Ardoino emphasized Tether's growth, resilience, and plans for new product launches and consolidation in 2024. The company has also invested in diverse projects, expressing anticipation for more announcements.  

Worldcoin's Global Expansion with Orb Technology

Worldcoin expands globally, offering personhood verifications in Singapore through its Orb technology. The project collaborates with local entities and has seen recent growth in Spain and Germany. The World ID verification initiative expands in Asia and Europe, reflecting global interest in proof of personhood and the project's iris recognition pipeline.  

Ordinals.com Hit by DDoS Attack Amid Bitcoin Impact

The Ordinals.com website has suffered a DDoS attack, causing connection issues and instability. Critics point out the irony of the attack, given Ordinals' impact on the Bitcoin network. The attack follows a code script launch aimed at censoring Ordinals blocks. However, experts note that Ordinals are a small part of the Bitcoin economy and pose no significant threat.  

Curve Finance Founder's CRV Transfer Sparks Sell-Off Fears

Curve Finance founder Michael Erogov transferred over 23 million CRV to Binance, sparking concerns of a potential sell-off. However, CRV has seen a 60% rise over three months, trading above $0.60. Erogov previously liquidated CRV after a hack to prevent DeFi loan defaults. Tron's Justin Sun and others intervened to prevent this from happening.  

PancakeSwap Proposes CAKE Supply Reduction

The developers of PancakeSwap have proposed to reduce the maximum supply of CAKE tokens from 750 million to 450 million, aiming for a deflationary model. The proposal, if approved, will come into effect on Jan. 4, 2024. Currently, CAKE tokens trade at $3.58, with the DEX holding $1.64 billion in total value locked.  

Cardano's Chang Hard Fork Emphasizes Community Governance

In 2024, Cardano's Chang hard fork will commence, marking a shift toward community-driven governance. This move aims to empower ADA holders to shape the network's trajectory, transitioning to the Voltaire era. The agenda involves increased tokenization, simplified token issuance, third-party dApp development, and enhanced interoperability with other blockchain ecosystems.  

Indonesia Mandates Crypto Exchange Registration

Indonesia's government requires all crypto exchanges to register with the national bourse, CFX, by August 17, 2024, to continue operations. The aim is to ensure investor safety, monitor transactions for tax purposes, and transition prospective exchanges into licensed entities. Around 29 prospective exchanges are affected, with potential tax changes rumored for 2025.  

ARK Invest's Strategic Shift in Crypto Investments

ARK Invest, led by Cathie Wood, has sold significant holdings in Coinbase, Block Inc, and GBTC, totaling over $126.5 million. Concurrently, they invested in ETFs, purchasing 4.3 million ProShares Bitcoin Strategy ETF shares and 20,000 ARK 21Shares Active Bitcoin Futures Strategy ETF shares, marking a strategic shift in their crypto investment approach. Coinbase insiders also sold 247,423 shares totaling $42 million, coinciding with COIN's market high.

Stablecoins: The Next Multi-Trillion-Dollar Market?

Tether advisor Gabor Gurbacs predicts stablecoins to be the next multi-trillion-dollar market, citing attributes such as low fees, accessibility, and real-world use. The stablecoin market is currently over $130 billion, with significant growth potential. Leading stablecoins include USDT, USDC, DAI, and TrueUSD.  

Blast Blockchain Secures $1.1 Billion in Deposits

Blast, a layer-2 blockchain by Blur, has secured $1.1 billion in deposits, with $1 billion in wrapped Ether and $103 million in DAI. Users can anticipate a 5% yield on staked assets via airdrop in May 2024, along with a referral program. Controversy surrounds its marketing strategy, yet positive price movements for the native BLUR token persist.  

Levana Protocol on Osmosis Suffers $1.1M Exploit

Levana protocol on Osmosis blockchain suffered a $1.1M exploit due to congestion attack and oracle flaw. 10% of liquidity lost. A comprehensive solution is being developed for future security. Temporary halt on new positions and modifications. Users' positions and profits remain unaffected. Compensation planned includes airdrops and distribution of protocol fees.  

zkSync's Transaction Volume Surpasses Ethereum

zkSync, a Layer 2 scaling solution for Ethereum, processed 34.7 million transactions in the last 30 days, surpassing Ethereum's 34.2 million transactions. This surge was attributed to the adoption of inscriptions, initially developed for Bitcoin, on EVM networks. Inscriptions are data embeds in transaction call data, enabling the creation of alternate tokens and NFTs.  

MicroStrategy's Bitcoin Holdings Approach Government Levels

MicroStrategy's Bitcoin holdings near U.S. government levels, with a recent $615.7 million purchase bringing their total to 189,150 BTC. This aggressive strategy led to an unrealized profit of over $2.2 billion. Meanwhile, 10x Research suggests MicroStrategy's stock is overvalued by 26%, mirroring Bitcoin's price movements. Investors are advised to consider profits, as significant gains have been realized.

Bitcoin SV's Surge Driven by South Korean Traders

Bitcoin SV surged over 50% to $95, now at $87, 80% weekly and 109% YTD increase. South Korean traders fueled BSV's rise; 71% of trades and 66.89% of the volume from Upbit. Coinbase plans to liquidate BSV holdings. Craig Wright launched BSV by hard forking Bitcoin Cash. BCH rose 10% to $276, Bitcoin Gold up 17% to $20. Optimism about a possible BTC ETF approval influences market.  

Celsius' New Mining Entity Approved by Court

The United States Bankruptcy Court for the Southern District of New York approved Celsius' "MiningCo Transaction," forming a new entity with $225 million. NewCo must achieve 23 EH/s mining capacity within three years, and the court emphasized fair distribution of asset sales and estate administration costs. The ruling voided previous unsecured claims agreements and maintained the SEC's authority over crypto tokens.  

Top Altcoin Gainers and Losers

Gainers:

Bitcoin SV BSV (+31.34%)

eCash XEC (+9.88%)

Internet Computer ICP (+8.74%)

Losers:

Injective INJ (-9.44%)

Mina MINA (-9.36%)

Bonk BONK (-9.20%)