Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 17, 2023
Crypto Market Update
Written by Van
Table of Contents:
Banking and Regulatory Updates
- NAB Implements Restrictions on Cryptocurrency Platforms
- Vote on U.S. Crypto Legislation Postponed by a Week
Developments in Cryptocurrency Exchanges and Platforms
- Uniswap Launches UniswapX: A New Blockchain Protocol
- Binance Integrates Bitcoin Lightning Network for Cheaper Transactions
- Perpetual Futures Market Sees BNB Token Shorts Surge
Market Sentiment and Analysis
- Social Media Activity Indicates Bitcoin's Market Direction
- Coinshares Reports Inflow of $137.4 Million into Crypto Funds
- Crypto VC Investment Declines for Fifth Consecutive Quarter
Tech Developments and Innovations
- Boojum: A New STARK-Based Proof System for Ethereum
- Chainlink Launches Cross-Chain Interoperability Protocol
- Gnosis Reveals Gnosis Card for Real-World Payments
Crypto Asset Performance
- Bitcoin Hashrate Soars in Anticipation of Next Halving
- Terra (LUNA) Experiences Price Surge Following Binance Announcement
- 1inch Network Token Sees Surge on South Korean Exchange
- Celsius Network Deposits $59.4 Million in Altcoins to FalconX
Blockchain and Crypto Adoption
- Unstoppable Domains Integrates with Ethereum Name Service
- Reddit's MOON Tokens Surge Following TOS Amendment
- Ripple's Legal Victory May Boost Cross-Border Payments
- Aave Launches GHO, Its Algorithmic Stablecoin, on Ethereum
- Lens Protocol Update Allows On-Chain User Blocking
- Beijing to Train Talent in Emerging Tech Fields
- Ethscriptions Marketplace Suffers Major Hack
- Patrick Mahomes Announces Launch of NFT Platform
- Canadian Scammer "Soup" Accused of Phishing Crypto Assets
NAB Implements Restrictions on Cryptocurrency Platforms
National Australia Bank (NAB) has announced blocks on certain cryptocurrency platforms due to the “high risk of scams.” NAB did not specify which platforms would be affected, but it is believed that Binance could be one of them. NAB's measures are part of its "bank-wide scam strategy" to protect customers from fraud, as cryptocurrency scams are one of the fastest-growing security threats in Australia.
Vote on U.S. Crypto Legislation Postponed by a Week
The House Financial Services Committee has postponed its scheduled vote on legislation for the regulation of stablecoins and crypto trading in the US by a week, to July 26. The delay follows skepticism from Democratic lawmakers during a hearing last month.
The House Agriculture Committee also holds jurisdiction over the bill and is expected to hold its own debate and vote. Rep. French Hill, one of the authors of the stablecoins bill, hopes that both bills will advance before the end of July.
Uniswap Launches UniswapX: A New Blockchain Protocol
Uniswap, the largest decentralized exchange, has launched a new blockchain protocol called UniswapX. The protocol aims to address pain points in on-chain trading and self-custody swapping by offering better prices, gas-free swapping, protection against maximal extractable value (MEV), and no cost for failed transactions. UniswapX is initially being launched as an opt-in beta on the main Ethereum network, with plans to expand to other chains in the future.
The protocol engages with third-party fillers to ensure continuous liquidity in the pools and reduce transaction costs for swappers. It also aims to thwart MEV by redirecting it through the use of private transaction relays.
Binance Integrates Bitcoin Lightning Network for Cheaper Transactions
Cryptocurrency exchange Binance has integrated the Bitcoin Lightning Network, allowing users to make faster and cheaper BTC withdrawals and deposits. This move comes after Binance temporarily paused BTC withdrawals due to high transaction fees. Binance joins other exchanges like Bitfinex and Kraken in embracing the Lightning Network.
Perpetual Futures Market Sees BNB Token Shorts Surge
Traders are heavily shorting BNB token in the perpetual futures market, with CoinDesk reporting funding rates reaching their lowest levels in nearly three months. The negative sentiment is attributed to recent high-profile staff exits, inconsistencies in BCH withdrawals from Binance.US, and the pending Department of Justice case against Binance's CEO.
The market remains nervous, and a short squeeze could occur if BNB surpasses $265. As of now, BNB is trading at $244. These shorts may serve as a hedge, potentially related to Binance's recent launchpad projects.
Social Media Activity Indicates Bitcoin's Market Direction
Bitcoin's recent local top came after a spike in bullish calls from social media users, according to on-chain analytics firm Santiment. The company said crowd calls for a bear or bull market can indicate where the BTC price may be headed next.
The "social volume" metric measures the total number of text documents on social media platforms that mention a given term or topic, and can be used to pinpoint sentiment in the market. Historically, the Bitcoin market has tended to move in a direction opposite to what the majority of investors are expecting.
Coinshares Reports Inflow of $137.4 Million into Crypto Funds
Coinshares' weekly report reveals a $137.4 million inflow in crypto funds last week, totaling $742 million over the past four weeks. Bitcoin dominated the inflows, with $139.8 million, while Ethereum experienced a $1.6 million outflow. The USA led in regional fund inflows with $109.1 million.
Crypto VC Investment Declines for Fifth Consecutive Quarter
A recent report from Galaxy Digital reveals that venture capital investment in the crypto sector has declined for the fifth consecutive quarter, with only $2.3 billion invested in Q2 2023 compared to $8 billion in the same quarter last year.
Despite this decline, deal activity has slightly increased, particularly in Series A funding deals. The US remains the top country for crypto VC investment, followed by the UK, Singapore, and South Korea. The report also highlights the challenging environment for fundraising in the crypto VC space.
Boojum: A New STARK-Based Proof System for Ethereum
zkSync Era introduces Boojum, a consumer-friendly STARK-based proof system for Ethereum's layer-2 scaling. Boojum enhances transparency, transaction speed, and accessibility, operating on personal computers with just 16 GB of GPU RAM. It reduces transaction costs and requires less storage compared to previous operations. Developers are testing the system before full migration.
Chainlink Launches Cross-Chain Interoperability Protocol
Chainlink has launched its cross-chain interoperability protocol (CCIP) in its "early access" phase. CCIP has already been adopted by Synthetix and will become available to other developers from July 20 on five testnets. CCIP enables cross-chain lending, data storage, liquid staking, gaming apps, and more. The use cases may extend to traditional finance, with Swift and financial institutions exploring CCIP for token transfers.
Gnosis Reveals Gnosis Card for Real-World Payments
Blockchain firm Gnosis has unveiled its Gnosis Card, a debit card that will utilize its payment network, Gnosis Pay. The card, which will be available in various countries starting with the EU and UK, allows users to make real-world payments directly from their wallets, rather than pre-loading funds onto the card.
The card currently supports the stablecoin EURe, but integration with other cryptocurrencies, including MakerDAO's DAI, is planned. Gnosis Pay also plans to offer its infrastructure to other wallets to issue similar cards.
Bitcoin Hashrate Soars in Anticipation of Next Halving
The Bitcoin hashrate is reaching new all-time highs as miners compete ahead of the next halving event. JPMorgan warns that the upcoming halving, which will reduce miners' revenues, poses a challenge for miners with higher power costs.
The bank estimates that a change in electricity costs could significantly impact bitcoin production costs. The report also notes that the hashrate is unlikely to continue rising at the same pace without a sustained increase in bitcoin's price or transaction fees.
Terra (LUNA) Experiences Price Surge Following Binance Announcement
Terra (LUNA) rose nearly 9% in terms of 24-hour gains, while LUNC saw a nearly 3% increase. The price surge may be attributed to Binance's announcement that it will support the Terra network upgrade. Terra community has approved the Phoenix software upgrade v2.4, resulting in a 10% increase in the price of LUNA. Binance will suspend LUNA deposits and withdrawals during the upgrade.
1inch Network Token Sees Surge on South Korean Exchange
The native token of the 1inch Network experienced a surge in trading volume on South Korean exchange Upbit. The token saw a significant overnight gain of 19% and has increased by 67% in the past week. It was the second most traded coin on Upbit, with a 24-hour volume of $360 million.
The token's price surge has also led to short liquidations worth $2.49 million in perpetual swap markets. On-chain movements and high trading volumes suggest that the token's price is influenced by large unknown entities. Currently, the token is trading at $0.57, a three-month high.
Celsius Network Deposits $59.4 Million in Altcoins to FalconX
Crypto lender Celsius Network has deposited $59.4 million in altcoins to FalconX, including $13.6 million in MATIC, $10.7 million in LINK, and $7.3 million in AAVE, possibly in preparation for their sale into Bitcoin and Ethereum. This move could place selling pressure on the tokens due to liquidity concerns. The U.S. bankruptcy court had previously allowed Celsius to sell its altcoin holdings for BTC and ETH.
Unstoppable Domains Integrates with Ethereum Name Service
Unstoppable Domains has integrated with the Ethereum Name Service (ENS) to offer .eth decentralized domains. Users can now purchase and manage .eth names through Unstoppable, with added payment methods and functionality.
The integration allows users to secure Web3 domains without initially needing a cryptocurrency wallet. Unstoppable is also developing .eth domain management tools and supports various other Web3 domains.
Reddit's MOON Tokens Surge Following TOS Amendment
Reddit's blockchain-based tokens MOON surged over 78% in 24 hours following changes to their Terms of Service. The amendments now permit the sale of avatars and Community Points, marking a distinct separation between virtual goods and verified virtual goods. MOONs are digital tokens awarded to users as recognition for their engagement and positive contributions on Reddit.
Ripple's Legal Victory May Boost Cross-Border Payments
Ripple hopes its recent legal victory against the SEC will encourage US financial institutions to use its on-demand liquidity solution for cross-border payments. Ripple's Chief Legal Officer, Stu Alderoty, said he was optimistic that the decision would give customers comfort to start conversations about moving value across borders without incurring high fees. XRP's trading volume increased 18-fold in July.
Aave Launches GHO, Its Algorithmic Stablecoin, on Ethereum
Decentralized finance protocol Aave has launched its algorithmic stablecoin GHO on the Ethereum mainnet. The stablecoin is over-collateralized with various digital assets, including Ether and Aave's native token AAVE.
The launch follows a community vote, and the transparency of GHO's reserves sets it apart from centralized stablecoins. While Tether and Circle dominate the stablecoin market, Aave aims to strengthen its DAO treasury through GHO's revenue.
Lens Protocol Update Allows On-Chain User Blocking
Lens Protocol, a crypto-powered social media platform, has released an update that allows users to block each other on-chain, similar to Twitter. The update also introduces features such as collect and mirror, which allow users to store content as an NFT and earn money through mirroring, respectively.
The platform aims to provide new opportunities for monetization and social engagement in the decentralized social media space. The update also includes improvements to user profiles, making them more like crypto wallets.
Beijing to Train Talent in Emerging Tech Fields
The Beijing Municipal Government plans to train 10,000 engineering talents each year in emerging technologies, including blockchain, AI, and big data. The move is part of Beijing's efforts to develop talent in Web 3.0 technologies and support the growth of the metaverse.
Ethscriptions Marketplace Suffers Major Hack
The Ethscriptions marketplace on Ethereum has experienced a major setback due to a hack, with about 202 Ethscriptions stolen. The protocol itself remains unaffected, and creator Tom Lehman plans to relaunch the marketplace after making necessary changes. Ethscriptions are unique digital objects stored in transaction-level data, and their emergence follows the popularity of Ordinals on Bitcoin.
Top Altcoin Gainers and Losers
Kaspa KAS (+8.70%)
XDC Network XDC (+5.75%)
Gala GALA (+5.05%)
Lido DAO Token LDO (-9.32%)
Bitcoin Cash BCH (-6.81%)
BitDAO BIT (-6.62%)
NFT Market Map
Patrick Mahomes Announces Launch of NFT Platform
Kansas City Chiefs quarterback Patrick Mahomes is launching his own NFT platform called Museum of Mahomes. The platform will offer digital collectibles tied to real-world perks and will debut in September with a collection of 15,000 NFTs. Proceeds from sales will benefit Mahomes' charitable foundation.
Canadian Scammer "Soup" Accused of Phishing Crypto Assets
Crypto sleuth ZachXBT has accused a Canadian scammer called "Soup" of stealing millions of dollars in assets through phishing tactics and fake Discord servers. Soup is alleged to have targeted crypto projects like Orbiter Finance and Pika Protocol. ZachXBT also claims that the main culprit bought expensive Roblox items using the proceeds from online theft.
This article has been refined and enhanced by ChatGPT.