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

Bitcoin's Rally Amidst ETF Flows and Upgrades

Bitcoin soared past $42,000, marking a 5.3% growth and a five-day high before slightly pulling back, amidst significant ETF flows and a Coinbase stock rating upgrade. Despite a 42% dip from its all-time high, historical trends suggest a potential rally post-halving, possibly reaching new highs by 2025. However, Bitcoin miners face profitability issues post-halving, especially if prices stagnate. Bitcoin's safe-haven status is reinforced, outperforming gold and bonds, as per the latest Kaiko research. Notably, Bitcoin whales transferred $910 million to Coinbase Institutional, signaling robust market activity.

Shift in Crypto Investment: ETFs and Bitcoin Holdings

BlackRock's IBIT ETF now holds nearly 50,000 BTC, with assets surpassing $2 billion. Grayscale's GBTC experienced a significant outflow, losing 104,435.12 BTC, worth $4.3 billion. Nine new Bitcoin ETFs, including BlackRock and Fidelity, amassed 132,170.59 BTC, valued at $5.46 billion. Grayscale's sell-off continued, transferring over 10,000 BTC, totaling a $5.1 billion loss, reducing holdings to 518,281 BTC. This reflects a notable shift in cryptocurrency investment trends.

Ether Options Trading Hits Record High in January

In January 2024, Ether options trading soared to a record $17.9 billion, with a bullish put-call ratio of 0.31. A 60% chance exists for SEC's approval of spot Ether ETFs by May 23, according to Bloomberg Intelligence analyst James Seyffart. Ethereum staking reached a new high with 30 million ETH staked, over 24% of the total supply, showcasing robust confidence in Ethereum's Proof-of-Stake mechanism.

TrueUSD's Market Challenges and De-Pegging

TrueUSD (TUSD) plummeted to $0.96, a three-year low, with its market cap dropping 58% to $1.6 billion in three months. Speculation suggests Justin Sun used TUSD to acquire Bitcoin and Ethereum. TUSD's de-pegging coincided with a market sell-off and Prime Trust's collapse. Sun minted $800 million TUSD (25% of total supply), transferring it to HTX, his exchange. HTX temporarily disabled its proof-of-reserves amid TUSD's struggles, raising collateralization concerns. TUSD has consistently traded below $1 since January 7th.

Coinbase's Stock Surge Post Analyst Upgrade

Coinbase's stock rose after being upgraded to "outperform" by Oppenheimer, with a $160 price target. Analyst Owen Lau expects success in the SEC lawsuit or a dismissal. Factors such as interest rate hikes, Bitcoin's upcoming halving, and increased digital asset adoption are projected to drive Coinbase's growth. Currently trading at $126, a 27.5% increase is anticipated.  

XRP Ledger's Growth and Potential ETF Launch

XRP Ledger has witnessed a significant increase in small wallet holders, reaching over 5 million, the highest in its 10+ year history. This marks a 104% growth in wallet network expansion in three years. Meanwhile, Ripple's recent job posting for a Senior Manager for Business Development in New York, focusing on ETFs, hints at a potential XRP ETF launch. This move aligns with the pattern seen in Bitcoin's ETF approval, where a Futures ETF preceded a Spot ETF. The crypto community is abuzz with speculation about this development, considering the regulatory challenges and the recent Spot Bitcoin ETF launch.

Regulatory Hurdles for Binance US in Alaska and Florida

Binance US, facing regulatory challenges after CEO Zhao's resignation and DOJ investigations, has had its operations suspended in Alaska and Florida. Florida regulators cited public safety concerns, resulting in a suspension despite a 2020 money services license. Alaska's banking division refused to renew Binance US's license. The company's leadership change and criminal charges exacerbate its challenges.  

Algorand CEO's Account Hacked, No System Compromise

The Algorand Foundation CEO, Staci Warden's X account was hacked for 15 hours, with the hacker posting racial slurs and insults. Algorand is working to regain control, stating no system compromise. Previous similar incidents included the United States SEC's hacked account. The hacker posted fake news about Bitcoin ETF approval using a SIM swap attack.  

Insider Trading Allegations in AltLayer

Accusations of insider trading surround AltLayer's head of growth, Dorothy DeFi, who allegedly profited $200,000 from a recent airdrop. Suspicious NFT sales and subsequent token transfers to Binance sparked the allegations. AltLayer has not issued a statement, while on-chain analysts and a second crypto sleuth have explored the situation. Insider trading remains prevalent in the crypto market.  

WEN Meme Coin Airdrop Causes Market Excitement

The WEN meme coin airdrop on Solana targeted over a million wallets, leading to wild price spikes. Each eligible wallet can claim 643,652 WEN, valued at over $58. Despite initial chaos and extreme price fluctuations, the Solana network held steady during the drop, with nearly 118,000 wallets active at the same time.  

USDC Supply Increase Post-SVB Crisis

USDC's supply increased by $1.23 billion since the start of 2024, marking a 6% rise in the circulating supply. Following the SVB crisis in 2023, USDC experienced a 44% drop in circulating supply, but the recent growth has led to a 5% increase in presence on exchanges, with a 70% rise in daily transfers.  

Avalanche's Vryx Aims for High Transaction Speed

Ava Labs introduces Vryx, a scaling solution for Avalanche aiming for 100,000 transactions per second (TPS). Benchmarks for Vryx are expected soon, and it will be enabled on the first HyperSDK testnet in Q2. Vryx employs a pipelined transaction process for optimal performance and is designed to excel in adversarial environments.

Optimism's Ethereum Dencun Upgrade Plans

Optimism prepares for Ethereum Dencun upgrade, implementing the Ecotone hardfork and EIP-4844. Anticipated changes include reduced transaction fees. TVL data reflects Optimism's dominance, with over 25% of the space and $5.2 billion locked. Transaction volume has decreased after peaking at 500,000. Despite some recent declines, OP's value is up more than 4% at around $3.  

Top Altcoin Gainers and Losers

Gainers:

Manta Network MANTA (+21.87%) 

SATS 1000SATS (+19.93%) 

Sui SUI (+17.28%) 

Losers:

Chiliz CHZ (-3.80%) 

Bittensor TAO (-1.45%) 

Toncoin TON (-1.38%)