Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 11, 2024

Bitcoin ETF Launches Amid Market Volatility and High Trading Volume

Bitcoin's value surged to nearly $49,000 at one point before retracing, coinciding with a record-breaking $2.2 billion trading volume on its opening day for a spot ETF as per The Block. At the same time, Bloomberg analyst Eric Balchunas proposed that the figures are lower, around $1.8 billion, but still impressive. 

However, it swiftly plummeted by $3,000, causing widespread liquidations totaling over $340 million. The initial surge happened as the U.S. experienced an unexpected rise in inflation rates with annual headline inflation at 3.4% (projected 3.2%) and core inflation at 3.9% (projected 3.8%). 

In another development, large Bitcoin transactions were observed moving to Coinbase, totaling over $800 million. This movement led to speculation about a potential sell-off, especially as Bitcoin's price approached the critical $50,000 mark.

Ethereum's Surge: ETF Anticipation and Vitalik's Proposal

Ethereum co-founder Vitalik Buterin suggests a 33% gas limit increase to 40 million for improved throughput. Anticipation of a spot Ethereum ETF, following Bitcoin ETF approvals, has elevated ETH's price above $2,600. Analysts see a 70% chance of Ethereum ETF approval by May. Ethereum's 20-month high rally is linked to Bitcoin ETF approval, boosting altcoin gains. BlackRock's Ether ETF filing in November 2023, with a May 2024 decision, intensifies these expectations, potentially spurring Ethereum ecosystem growth.

Ethereum Classic Rallies: ETF Hopes and Hard Fork Anticipation

Ethereum Classic (ETC) surged 42% in 24 hours, reaching an intraday high of $30.25 with increased trading volume. The anticipation of SEC approval for a spot ETF for Ethereum and the upcoming Spiral hard fork on January 31, 2024, are driving positive sentiment. Traders anticipate a potential bullish outlook towards $50.  

SEC Greenlights 11 Bitcoin ETFs: Robinhood's Rapid Listing and Industry Giants' Involvement

SEC approves 11 spot Bitcoin ETFs, Robinhood pledges quick listing. Notable providers include Bitwise, Grayscale, and BlackRock. Franklin Templeton adopts 'laser eyes' meme, signaling a shift towards crypto trends. CEO Jenny Johnson expresses interest in blockchain, stressing its potential to enhance financial products. The company plans to explore tokenized funds and blockchain-based shareholder recordkeeping.  

Global Crypto ETF Stances: Hong Kong's Advocacy vs. South Korea's Resistance

In Hong Kong, lawmaker Johnny Ng advocates for the introduction of spot crypto ETFs, inspired by the U.S. approval of spot bitcoin ETFs. He emphasizes Hong Kong's potential to lead in the crypto space and urges the government to prioritize crypto education and public awareness. 

Meanwhile, South Korea maintains its stance against crypto ETFs, with the Financial Services Commission reaffirming the ban despite U.S. developments. South Korea's regulations limit investment contract securities to traditional financial instruments and commodities, excluding cryptocurrencies. The country is working on comprehensive crypto regulations, aiming for clarity in crypto issuance, listing, and delisting.

Circle's Confidential IPO Filing: USDC Stablecoin Enters Public Market

Circle Internet Financial, the USDC stablecoin issuer, has confidentially filed to sell shares to the public for the first time. The company filed a draft S-1 document with the U.S. Securities and Exchange Commission. The number of shares and price range for the offering hasn't been determined. USDC has a market cap of about $25 billion.   

Elon Musk Reconsiders Bitcoin for Mars, Lightning Network's Potential

Elon Musk initially rejected using Bitcoin on Mars due to slow transaction settlement. However, he later reconsidered the possibility, mentioning the potential use of a localized Lightning Network to address transaction speed. Glassnode data indicates that the Lightning Network is significantly cheaper than traditional payment processors. Musk denied plans to launch a crypto token on X. 

Aave Integrates PayPal's PYUSD Stablecoin with Overwhelming Approval

Aave's governance vote shows 99.99% approval for integrating PayPal's PYUSD stablecoin. The proposal aims to strengthen the relationship between PYUSD and AAVE's GHO stablecoin. Trident plans to contribute $5-10 million in liquidity for PYUSD on AAVE, aiming to create organic borrowing demand. AAVE is the world's third-largest DeFi protocol with nearly $5 billion in locked assets.

Near Foundation's Staff Cut Despite Strong Treasury and Growth

The Near Foundation plans to reduce its team by 40%, affecting 35 employees in marketing, business development, and community roles. Despite this, its treasury remains strong with $285 million in cash, 305 million NEAR tokens ($1.1 billion), and $70 million in investments and loans. The Near Protocol saw significant growth in 2023, with multiple top web3 apps and a surge in daily users and transactions.  

DeRec Alliance: Hedera and Algorand's Digital Asset Recovery Initiative

Hedera and Algorand have collaborated to establish the DeRec Alliance, introducing a recovery protocol to simplify digital asset retrieval. Notable contributors include the HBAR Foundation and Algorand Foundation. The protocol was unveiled at the CFC St. Moritz conference in Switzerland. Dr. Leemon Baird and John Woods, CTO of Algorand Foundation, emphasized the focus on user experience and industry collaboration.  

Injective's Volan Upgrade: Real-World Assets and Enhanced Cosmos Connectivity

Injective's Volan upgrade focuses on real-world asset support and enhanced connectivity with Cosmos chains. It offers tokenized fiat currency pairs, treasury bills, and credit products. The upgrade also implements the Inter-Blockchain Communication (IBC) protocol to improve interactions with other chains in the Cosmos ecosystem. Additionally, changes to the INJ token's inflation parameters aim to make it increasingly deflationary.  

Top Altcoin Gainers and Losers

Gainers:

Ethereum Name Service ENS (+43.18%)

Ethereum Classic ETC (+42.51%)

Tezos XTZ (+23.06%)

Losers:

Akash Network AKT (-8.70%)

Lido DAO Token LDO (-4.17%)

First Digital USD FDUSD (-0.21%)