Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 4, 2023

Bitcoin's Surge and Market Impact

Bitcoin's surge to $42,000 at one point, driven by market dynamics and investor behavior, sparked significant liquidations and a rise in global crypto market cap. Influenced by factors like ETF anticipation and gold price movements, expert predictions suggest a bullish future, with significant gains in stocks like Coinbase and MicroStrategy.

Ethereum's Price and Supply Dynamics

Ethereum's price soared past $2,200, supported by bullish trends and key resistances at $2,250 and $2,320. Over 106,000 ETH were burned in a month, exceeding the 70,000 ETH issuance, turning Ethereum deflationary. This shift, fueled by validator exits and heightened network activity, strengthens Ethereum's market position.

Inflows into Digital Asset Investment Products

Last week saw a $176 million inflow into digital asset investment products, marking a 10-week streak of $1.76 billion, the highest since October 2021. Bitcoin funds received $133 million of inflows, while ether products saw $31 million. Bitcoin and ether hit 19-month highs, with Bitcoin trading at $41,682 and ether at $2,223.  

Brazil's Largest Bank Enters Crypto Trading

Brazil's largest bank, Itau Unibanco, launched a cryptocurrency trading service offering Bitcoin (BTC) and Ethereum (ETH) to clients. The expansion aims to navigate regulatory considerations for future crypto asset inclusion. This move aligns with global trends, as financial institutions worldwide, including HSBC and JPMorgan, explore cryptocurrency and blockchain technologies to meet evolving client demand.  

Dominance of Liquid Staking in ETH Supply

According to this analysis, liquid staking dominates ETH token supply, primarily on Lido. Binance leads in CEX ETH supply, while Arbitrum tops Layer-2 networks. Lido holds over 9.2 million ETH worth $20.95 billion. Binance, Coinbase, Bitfinex, and Robinhood lead CEX ETH supply. Figment, Kiln, and Staked.us lead Ethereum staking pools. Arbitrum One leads Layer-2 ETH supply. 

SEC Discussions on Bitcoin ETFs

The SEC has engaged in discussions with various asset managers, including Grayscale and BlackRock, regarding proposed spot Bitcoin ETFs. The recent surge in Bitcoin's price, surpassing $41,532, reflects growing investor confidence amid changing regulatory actions. Analysts anticipate the SEC's official announcement on spot Bitcoin ETF approvals by early 2024.  

Institutional Traders' Crypto Preferences

Bybit Research's report reveals institutional traders favor bitcoin, have mixed feelings about ether, and are skeptical about altcoins. Institutional traders have doubled their BTC holdings by September 2023. This contrasts with retail traders. 

Altcoin holdings declined from August, reflecting caution. Ether holdings decreased post-Shapella upgrade but surged in September. In October, K33 Research advised a shift to bitcoin due to ether's prolonged slump against BTC and low response to ETH ETFs.  

Poloniex's TRX Premium Following Hack

Poloniex experienced a 17% TRX premium due to a recent hack and subsequent withdrawal freeze. Justin Sun confirmed TRX withdrawals are open, though the exchange is still phasing in other withdrawals. TRaders can take advantage of the TRX price disparity between Poloniex and Binance, but must consider locked assets on Poloniex.  

KyberSwap's Response to Exploit

KyberSwap, a decentralized exchange, plans to compensate victims of a $54.7 million exploit by granting victims the USD value of their stolen assets. While investigating the incident, Kyber Network's total valued locked dropped by 98.28% to $7.2 million. The hacker demanded control of the company in return for the stolen funds, and the deadline for a response is approaching.  

Dogecoin Speculation with Tesla Cybertruck

The Tesla Cybertruck page contains numerous mentions of Dogecoin, sparking speculation about potential integration. Elon Musk's known affinity for Dogecoin adds to the speculations. However, Tesla has not confirmed plans to accept Dogecoin for Cybertruck payments. Despite the news, Dogecoin's price has not significantly changed, showing an 8.4% increase in seven days and a 25% rise in 30 days.  

Zodia Custody's Global Expansion

Zodia Custody, backed by Standard Chartered, joins Metaco’s network for global sub-custody, enabling safekeeping and settlement of digital assets for institutions worldwide. The integration aims to facilitate cross-border asset storage and regulatory compliance. Zodia expands its operations to Singapore, while Zodia Markets gains OTC crypto broker-dealer approval in Abu Dhabi.  

Paris Court Acquits Platypus Hackers

The Paris criminal court acquitted Platypus hackers, citing no prohibition of protocol hacks in French law. The Decentralized Finance platform lost $9.03 million in a crypto pool due to a code error exploited by Mohammed M. The court cleared the brothers of all charges, underscoring the need for improved security in the DeFi sector.  

Osmosis and UX Chain Merger Proposal

Osmosis and UX Chain are proposing a merger to create a comprehensive DeFi hub within the Cosmos ecosystem. The merger aims to integrate UX Chain's lending logic with Osmosis' decentralized exchange, potentially forming a unified token. The process will involve separate governance votes from each network's community, and the collaboration could lead to enhanced security and advanced DeFi functionalities. 

Stargate Finance Phishing Scam Impact

A phishing scam on Stargate Finance's platform led to over $50,000 stolen from users. The scam involved a fake voting proposal on Stargate Snapshot, luring over 1,000 users to a phishing site. The hacker stole assets worth $30,146 on Arbitrum, $14,135 on Optimism, and $7,626 on Ethereum, showcasing the rising risks in DeFi platforms.   

ORDI Token's Market Performance

ORDI, a BRC-20 token, surged 30.75% in 24 hours to $42.27, correlating with Bitcoin's new yearly high at $41,000. Its connection to Bitcoin and functionality on the Bitcoin blockchain contributed to the increase. ORDI has the highest market cap among BRC-20 tokens and its performance mirrors strong demand, with bulls in control and a strong RSI.  

Mantle's Liquid Staking Protocol Launch

Mantle has launched a liquid staking protocol on Ethereum, offering mETH tokens for ETH staking. Governed by Mantle DAO, it aims to diversify liquid staking and reduce stake concentration. With a $470 million treasury, Mantle seeks to become a top liquid staking provider, competing with Lido and Rocket Pool.

Crypto.com's UK Market Expansion

Crypto.com received a UK EMI license, expanding its financial services. The UK Treasury Committee urges extended trials for a digital pound, highlighting significant costs, the need for transparency, and a balanced risk-benefit analysis, focusing on financial inclusion and realistic expectations for the digital currency's impact.

Franklin Templeton CEO's Crypto Investments

Franklin Templeton CEO Jenny Johnson disclosed small personal investments in BTC, ETH, UNI, and SUSHI tokens. She believes in blockchain's potential to democratize private markets and expressed uncertainty about the approval timeline for a spot bitcoin ETF. The company has been actively adopting blockchain technology and is a believer in the crypto space.  

India's Crypto Business Regulations

In March, India mandated crypto businesses to register with the FIU and comply with the PMLA. 28 Indian virtual digital asset (VDA) or crypto service providers have registered with the FIU. The guidelines apply to offshore exchanges servicing the Indian market. Non-compliant offshore platforms face action under PMLA, while major exchanges like CoinDCX, WaxirX, and CoinSwitch have registered.  

Top Altcoin Gainers and Losers

Gainers:

Terra Classic LUNC (+29.35%)

Stacks STX (+29.24%)

Ordinals ORDI (+27.73%)

Losers:

Radix XRD (-7.42%)

dYdX DYDX (-7.12%)

Injective INJ (-6.36%)