Coin360 Daily Dispatch | Crypto Market Updates & Highlights | July 24, 2023

Crypto Market Update

Written by Van

Table of Contents:

Crypto Market Trends

• Worldcoin's Controversial Decentralized ID Protocol Launch
• Crypto Market Stumbles: Over $137M Worth of Liquidations
• Musk's Twitter Rebrand Sends Lesser-Known Token Soaring
• Bitcoin's Dominance: Long-Term Holders Control 75% of Supply
• Crypto Investment Products Record $6.5M Outflows
• Musk's Dogecoin Symbol Tweet Spurs 5% Price Increase
• Cryptocurrency Unlocking Wave: $44.95M Tokens on the Horizon

Exchange and Platform News

• Binance Rebuts SEC's Wash Trading Allegations
• Shibarium Beta: Shiba Inu's Layer 2 Testnet Milestone

Crypto in Social Media

• Musk's Twitter 'X' Logo Spurs Excitement and Speculation

Regulatory and Legal Developments

• US Regulatory Clarity Pursuit for Digital Asset Ecosystem

Banking and Stablecoin Developments

• KEB Hana Bank Teams Up with Bank of Korea on CBDC

NFTs and Blockchain Tech

• Ethereum's NFT Royalties: A Detailed Report by Nansen

Worldcoin's Controversial Decentralized ID Protocol Launch

The launch of Worldcoin's decentralized ID protocol has sparked mixed reactions in the cryptocurrency community. While major exchanges like Binance support the project, concerns have been raised about centralization, privacy, and security. Worldcoin uses biometric proof-of-personhood through iris scans, but critics worry about privacy leaks and potential erosion of internet anonymity. 

Ethereum co-founder Vitalik Buterin and other industry figures have weighed in, discussing the benefits and potential risks of such protocols. Worldcoin's white paper states that it initially deployed on Polygon and currently runs on the Ethereum mainnet, with over 2 million users enrolled. 

Crypto Market Stumbles: Over $137M Worth of Liquidations

In the past 24 hours, the crypto market experienced a significant selloff, resulting in over $137 million worth of liquidations. Bitcoin fell 2.9%, trading around $29,000, while Ethereum dropped over 1.8%, currently trading at $1,843. The global crypto market fell 2.68% to $1.18 trillion. 

Long liquidations coincided with reports that Binance CEO Changpeng Zhao hinted at wash trading by affiliates. The US SEC has already filed a lawsuit against Binance, accusing it of securities law violations. Meanwhile, China's Politburo warned of economic challenges but did not announce significant stimulus, adding to Bitcoin's decline. 

Musk's Twitter Rebrand Sends Lesser-Known Token Soaring

The price of the little-known digital asset, X, surged over 1,000% following Elon Musk's Twitter rebranding venture. X is linked to Project X, a decentralized NFT marketplace, and has a governance token called veX. Musk plans to transform Twitter into X to create a revolutionary "super app" similar to WeChat. The X token experienced unprecedented price action, reaching a 24-hour rally of 1,628.2% and a seven-day surge of 1744.2%. 

Bitcoin's Dominance: Long-Term Holders Control 75% of Supply

Long-term bitcoin holders now control 75% of the circulating supply, with a record 14.52 million BTC held for at least 155 days. This month, the balance in these wallets increased by $1.83 billion. The data suggests that HODLing is preferred by mature investors, with continued accumulation by illiquid entities. 

The number of Bitcoin whales has stagnated while the number of smaller retail investors remains unchanged. However, the "sharks" (holders of 1-100 BTC) have continued to accumulate, indicating ongoing interest in buying the cryptocurrency. 

Crypto Investment Products Record $6.5M Outflows

Last week, crypto asset investment products saw a net outflow of $6.5 million, breaking a four-week inflow streak. Bitcoin experienced outflows of $13 million, while Ether attracted $6.6 million in inflows, suggesting a changing sentiment. XRP also showed investor confidence, with $2.6 million in inflows. Overall trading volumes fell, and North America contributed to most of the outflows. Bitcoin and Ether prices dipped during the period. 

Musk's Dogecoin Symbol Tweet Spurs 5% Price Increase

Elon Musk's addition of the Dogecoin symbol to his Twitter profile led to a 5% price increase, reaching a two-month high. This follows Musk's previous impact on Dogecoin's price through Twitter and public appearances. Dogecoin remains the largest meme coin with a market cap of over $10.53 billion. Musk has faced accusations of manipulating DOGE's price in the past, resulting in a class-action lawsuit. 

Cryptocurrency Unlocking Wave: $44.95M Tokens on the Horizon

In the upcoming week, tokens worth over $44.95 million will be unlocked, with Optimism (OP) facing the largest unlocking of around $39.62 million. Additionally, AGIX and YGG will unlock tokens worth over $2 million each, while EUL and ACA will have smaller unlocks. 

OP's price decreased by 3.67% in the last 24 hours, trading at $1.52, but its weekly performance remains positive. AGIX and ACA also saw price drops, while YGG and EUL experienced price increases. 

Binance Rebuts SEC's Wash Trading Allegations

Cryptocurrency exchange Binance has denied the United States Securities and Exchange Commission's (SEC) claims that it engaged in wash trading. The SEC accused Binance of wash trading and named market maker Sigma Chain, owned by Binance CEO Changpeng Zhao, as a notable wash-trader. Binance.US, the US arm of the exchange, strongly refuted these allegations and stated that the SEC misunderstood the facts. 

However, a Wall Street Journal report suggests that there may be some truth to the SEC's claims. Wash trading is a form of market manipulation and is outlawed in most asset classes.

Shibarium Beta: Shiba Inu's Layer 2 Testnet Milestone

Shiba Inu's Layer 2 testnet, Shibarium beta, has surpassed 32 million total transactions, just days after reaching 31 million. The network has also seen an increase in the number of blocks and wallet addresses. Crypto lending platform CoinRabbit has expressed support for Shibarium, and Shiba Inu has experienced a significant increase in short-term traders.

Musk's Twitter 'X' Logo Spurs Excitement and Speculation

Elon Musk announces changing Twitter's logo to an 'X', sparking excitement from the XRP community. The logo change represents a new "super app" Musk wants to create. The XRP community applauds the image change due to its resemblance to the XRP logo, while some speculate about potential copyright infringement. 

The price of XRP has experienced a drop, down by 5.5% in the past 24 hours and 5% over the week. Trading volume has also decreased slightly by 2.05%. Despite the recent bearish sentiment, analysts believe XRP is oversold and anticipate a revival in the near future. 

US Regulatory Clarity Pursuit for Digital Asset Ecosystem

The Financial Services Committee Chairman, Patrick McHenry, is leading efforts to provide regulatory clarity in the digital asset ecosystem in the United States. The committee will review several legislations, including ones related to stablecoins, blockchain development, and digital asset market regulations. 

The proposed legislation aims to protect investors, establish consumer protections, and create clear rules for market participants. Meanwhile, the global cryptocurrency market has experienced a decrease in value in recent days.

KEB Hana Bank Teams Up with Bank of Korea on CBDC

South Korea's KEB Hana Bank is collaborating with the country's central Bank of Korea on its central bank digital currency (CBDC) pilot. They will also explore stablecoin alternatives, such as tokenized deposits, that aim to improve upon the design of conventional stablecoins and avoid price volatility. South Korean commercial banks are eager to establish a niche in the CBDC space to avoid being excluded from it.

Top Altcoin Gainers and Losers

Gainers:

XDC Network XDC (+7.01%)

Trust Wallet Token TWT (+4.64%)

Dogecoin DOGE (+2.21%)

Losers:

Pepe PEPE (-11.08%)

Compound COMP (-9.78%)

Toncoin TON (-7.50%)

NFT Market Map

Ethereum's NFT Royalties: A Detailed Report by Nansen

According to a report by Nansen, NFT projects on Ethereum received a total of 699,816 ETH as royalties. In 2021, 25.9% was paid, followed by 64.1% in 2022, and 9.4% in the first half of 2023. NFT volume this year has reached half of 2022 levels, but royalties received are significantly lower, with volumes at 50.6% and royalties at 14.7% of 2022 levels. The effective fee rate for royalties dropped from 2.5% in 2022 to 0.6% in July 2023. Yuga Labs' projects accounted for 9.4% of all royalties earned. 

This article has been refined and enhanced by ChatGPT.