Coin360 Daily Dispatch | Crypto Market Updates & Highlights | February 27, 2024

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Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Soars, Market Cheers
• Ethereum Hits New Heights
• Explosive Growth in Bitcoin ETFs
• Ethereum ETFs: A Future Possibility

Investment and Institutional Interest

• Stablecoin Market Expands
• Babylon: Bridging Bitcoin and PoS

Tech and Platform Developments

• Starknet's Impressive TVL Growth
• Blast Launches with High Hopes
• GalaSwap: Gala's New DEX
• Arweave's Scalability Testnet

Exchanges and Ecosystems

• OKX Expands to Turkey
• Gauntlet's New Path with Morpho

Legal and Regulatory Landscape

• Legal Delays for Do Kwon
• Increased SEC Enforcement in Crypto

Community and Events

• Renaissance: Solana's Hackathon Challenge
• Justin Sun Teases TRX ETF
• Theta Network Leaps Forward

Security and Governance

• KyberSwap's Security Challenges
• Yuga Labs Advocates for NFT Royalties

Bitcoin Soars, Market Cheers

Bitcoin's ascent above $57,000 has triggered a widespread bullish sentiment across the cryptocurrency market. Analysis reveals that nearly 95% of Bitcoin addresses are now in profit, marking a significant shift towards positive market dynamics. This rally has not only benefited long-term holders but also ignited discussions around the potential for further gains, with veteran analyst Peter Brandt raising his Bitcoin price target for 2025 to $200k. 

The surge is attributed to factors such as institutional buying pressure, anticipation around the Bitcoin halving event, and significant inflows into Bitcoin ETFs. However, a note of caution is introduced by the emergence of a bearish divergence signal, suggesting potential overheating and a need for market vigilance. 

Despite this, the breaking of key resistance levels hints at the possibility of Bitcoin reaching new highs, challenging the last cycle's peak of $69,000.

Ethereum Hits New Heights

Ethereum (ETH) has experienced a significant bullish sentiment and institutional interest, with its price rising to a 22-month high. The coin has outperformed Bitcoin, with a 33% rally year-to-date, attributed to its deflationary supply, low levels on exchanges, and increased staking activity. U.S. investors have been key drivers, particularly due to speculation around a possible spot ether ETF, contributing to its 11% rally. 

The anticipation of the Dencun upgrade has further fueled interest. Institutions now favor ETH over Bitcoin, reallocating assets to achieve an 80% concentration in these two cryptocurrencies. This shift in portfolio allocation from Bitcoin and stablecoins to Ethereum among institutions underscores Ethereum's growing appeal. Additionally, three Ethereum whales abruptly accumulated over $64 million worth of ETH from Binance and Kraken, highlighting increased activity and interest in the asset. 

Bitfinex analysts believe the market could be at the beginning of an altcoin rally, driven by Ethereum's performance and various ecosystem developments, including the Dencun upgrade and scaling solutions.

Explosive Growth in Bitcoin ETFs

Bitcoin ETFs have seen explosive growth, with $520 million inflows in 24 hours, led by Fidelity's FBTC and BlackRock's IBIT. Spot Bitcoin ETFs now hold over 303,000 BTC, nearly 1.5% of Bitcoin's total supply, with BlackRock's IBIT leading with over 128,000 BTC. The ETFs' trading volume hit a record $2.4 billion, with BlackRock's IBIT accounting for $1.3 billion. Despite this, Grayscale's GBTC experienced a decline, with holdings falling by over 28% since January. The robust performance of these ETFs reflects significant investor interest, with total net inflows surpassing $6 billion.

Ethereum ETFs: A Future Possibility

Bitwise researcher Ryan Rasmussen predicts a 50% chance of SEC approval for spot Ethereum ETFs. Bitwise's success with Bitcoin ETFs has driven $1 billion in assets. Rasmussen forecasts that ETFs will increase crypto prices. He anticipates Bitcoin reaching $88,000 by 2024. Other factors impacting the market include Ethereum's Dencun upgrade and NFT trading volumes.  

Stablecoin Market Expands

The stablecoin market cap has surged to $138 billion, a 1.95% rise and the fifth consecutive month of growth. USDC's market cap hit $28.5 billion, up 14% since December 2023, driven by institutional investments and non-US market presence. USDC outpaced USDT's growth, closing the gap through strategic expansions and key partnerships.  

Babylon: Bridging Bitcoin and PoS

Binance Labs has strategically invested in Babylon, a native Bitcoin staking protocol aiming to integrate Bitcoin with PoS blockchains. The undisclosed investment supports Babylon’s mission to enhance PoS security using Bitcoin. Babylon plans a mainnet launch by 2024 and aims to bridge Bitcoin with PoS networks, fostering interoperability within the blockchain space.  

Starknet's Impressive TVL Growth

Starknet's TVL surged by 194% to $1.32 billion post Mainnet launch, indicating regained market trust. Although facing controversies and a decrease in development activity, an increase in stablecoin supply held by whales could impact STRK's price positively. ETH's performance and token unlock schedule changes are likely to influence future price movements.  

Blast Launches with High Hopes

Blast announced its eagerly awaited Mainnet launch for February 29, achieving a Total Locked Value (TVL) of $2.1 billion. As an Ethereum Layer 2 scaling solution, it promises high yields and rewards for user participation. Despite facing criticism and a recent rug pull, it plans to launch various dApp projects, coinciding with extended developer airdrops.    

GalaSwap: Gala's New DEX

Gala Games has launched GalaSwap, a decentralized exchange built on GalaChain, boasting a capacity of 2 million transactions per second. The DEX supports Ethereum-based tokens and plans to include NFT trading soon. Additionally, GalaSwap offers token rewards and a referral model. Gala aims to expand its Web3 entertainment offerings beyond gaming.  

Arweave's Scalability Testnet

Arweave launched the public testnet for Arweave AO, aiming to enhance blockchain scalability and support a range of applications. The network has 220 machines and handles large data sets for AI models. The test phase evaluates the Gateway Address Registry and Observation Incentive Protocol, crucial for network scalability. Mainnet launch is anticipated later this year.  

OKX Expands to Turkey

OKX has launched OKX TR, a crypto exchange in Turkey, providing localized features and 24/7 customer support. Turkish crypto adoption is growing, prompting the pending introduction of crypto regulations. OKX aims to capture local market share and contribute to Turkey's emergence as a Web3 innovation hub while operating globally in multiple regions.  

Gauntlet's New Path with Morpho

Gauntlet abandoned Aave for Morpho, aiming for more money and freedom in risk management. Morpho's approach allows "risk curators" to directly manage lending pools, contrasting Aave's DAO-controlled model. Gauntlet's pursuit of non-exclusivity and greater compensation led to their split from Aave. The differing business models of Gauntlet and Chaos Labs further clarify the situation.

Legal Delays for Do Kwon

Do Kwon, Terraform co-founder, may not be extradited to the U.S. before March's end due to erroneous legal proceedings in Montenegro. Legal representatives cite unanticipated mistakes delaying the process. The SEC filed a lawsuit against Kwon and Terraform for alleged crypto asset securities fraud, with a trial scheduled to start on March 25, 2024.   

Increased SEC Enforcement in Crypto

In 2024, the SEC plans to intensify enforcement and regulation in the crypto space. Norton Rose Fulbright predicts increased actions against crypto platforms, with ongoing legal clashes, spurring backlash. The SEC faces a Texas lawsuit for overstepping its authority, notably battling Coinbase over alleged unregistered securities, raising concerns about regulatory scope.  

Renaissance: Solana's Hackathon Challenge

The Solana Foundation announces Renaissance, a global hackathon on Colosseum's platform, with a $1 million prize pool and pre-seed funding. The event runs from March 4 to April 8, 2024, featuring six tracks and additional awards. The Grand Champion receives $50,000 USDC and three conference tickets. Over 2,000 builders from 92 countries have already registered. 

Justin Sun Teases TRX ETF

Tron founder Justin Sun's post on the X platform sparked speculation about a potential TRX ETF. Community responses indicated enthusiasm, referencing an existing TRX ETF in Europe and precedent-setting Ethereum ETF applications. Sun's notable Ethereum purchases added to the intrigue. Meanwhile, Tron remains focused on decentralizing the internet and advancing decentralized finance initiatives.  

Theta Network Leaps Forward

Theta Network (THETA) surged by 60% in 24 hours, becoming the top gainer in the top 100 cryptocurrencies. The rally is driven by excitement over the upcoming Theta EdgeCloud launch, aligning with the market's AI-related token enthusiasm. This initiative democratizes access to GPU processing power, positioning THETA at the forefront of blockchain-based AI computing. 

KyberSwap's Security Challenges

KyberSwap suffered two major security breaches, totaling $51.5 million in stolen digital assets. The attacker transferred $2.5 million from Arbitrum to Ethereum, raising security concerns. Previous negotiations and a $4.6 million bounty failed to retrieve most stolen assets. KyberSwap's response involved cuts to its workforce and treasury grants for victims.