Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 21, 2023
Crypto Market Update
Written by Van
Table of Contents:
Banking and Regulatory Updates
- Invesco and WisdomTree Revive Bitcoin ETF Plans Amid BlackRock’s Filing
- Bitcoin and Ether Rally, Equities Decline Ahead of Fed Interest Rate News
- U.S. House Committee to Vote on Clearer Crypto Regulatory Framework
- MakerDAO Buys $700 Million Worth of U.S. Treasurys to Diversify DAI Reserve
Crypto Exchanges and Platforms
- Bitcoin Briefly Spikes to $138,000 on Binance.US Due to Low Liquidity
- Binance Launches Digital Asset Platform in Kazakhstan Amid Regulatory Scrutiny
- Bitcoin Cash Surges Following Launch of Wall Street-Backed EDX Exchange
- Huobi Founder Li Lin Sues Huobi Global for Trademark Infringement
Crypto Assets and Blockchain Developments
- Ethereum Market Capitalization Tops All Altcoins Since February 2021
- Frog-Themed Meme Cryptocurrency PEPE Surges Amid Market Recovery
- Avalanche Unveils HyperSDK and Avalanche Warp Messaging Amid Price Rise
- Tether (USDT) Set to Launch on Cosmos' Kava Blockchain in July
- Vitalik Buterin Discusses Interoperability Challenges and Solutions in Ethereum
Security and Infrastructure
- Ledger Open-Sources Recovery Paper Ahead of Q4 2023 Seed Solution Launch
- Polygon Labs Proposes zkEVM Validium Upgrade to Improve PoS Chain
- Casa Extends Vault Services to Include Ethereum, Bolsters Self-Custody
- Arpa Network Launches on Ethereum Mainnet, Plans for Community Staking
Community and Ecosystem Developments
- Optimism's Third RetroPGF Round Distributes 30 Million Tokens to Contributors
- OPNX Partners with 3AC Ventures Amid Backlash from Crypto Community
Invesco and WisdomTree Revive Bitcoin ETF Plans Amid BlackRock’s Filing
Invesco and WisdomTree have both reactivated their efforts to launch Bitcoin Spot exchange-traded funds (ETFs) in the United States. Invesco previously collaborated with Galaxy Digital and has also introduced a Bitcoin product in Europe. WisdomTree's previous attempts were rejected, but analysts believe recent filings by BlackRock have increased the chances of approval.
Bitcoin and Ether Rally, Equities Decline Ahead of Fed Interest Rate News
Bitcoin and Ether rose while equities declined as investors awaited interest rate news. Bitcoin briefly surpassed $30,500 before settling at around $30,100, gaining 9.7%. Ether increased by nearly 6.5% while equities suffered losses. The market is monitoring signs of the Federal Reserve's interest rate hike conclusion. Analysts predict further cryptocurrency rally due to institutional interest from Banco Santander and BlackRock's proposed Bitcoin ETF.
Bitcoin outperformed other digital assets, and major financial institutions like Deutsche Bank, BlackRock, and EDX Markets announced crypto initiatives, boosting sentiment amid regulatory pressure. The crypto futures market saw $268.12 million in liquidations, primarily involving short traders, as Bitcoin surged. The total cryptocurrency market capitalization reached $1.19 trillion, a 7.8% increase. Bitcoin's rally caused significant gains for ADA, ETH, BCH, STX, and CFX, resulting in $217.31 million in short liquidations within 24 hours.
U.S. House Committee to Vote on Clearer Crypto Regulatory Framework
The U.S. House Financial Services Committee will vote on legislation in July that aims to provide clearer regulations for digital assets transitioning from securities to commodities, as well as establish a comprehensive framework for stablecoins. The proposed laws were drafted by Chair Patrick McHenry and Rep. Glenn 'GT' Thompson, but will require support from Democrats and President Joe Biden to become law. The committee will have the opportunity to introduce changes to the legislation before voting on its final version.
MakerDAO Buys $700 Million Worth of U.S. Treasurys to Diversify DAI Reserve
MakerDAO, a stablecoin issuer and decentralized finance protocol, has purchased $700 million worth of U.S. Treasurys, bringing the total in its DAI stablecoin reserve to $1.2 billion. This move is part of Maker's strategy to diversify the assets backing the stablecoin and increase the role of traditional financial assets. The acquisition was approved in March to expand the real-world asset (RWA) vault investing in government bonds. Maker is restructuring by creating smaller units called SubDAOs and investing in yield-generating assets to boost protocol revenue.
Bitcoin Briefly Spikes to $138,000 on Binance.US Due to Low Liquidity
Bitcoin briefly surged to $138,000 on Binance.US due to low liquidity on the btc/tether trading pair, according to exchange data. Market depth data shows a $400,000 bitcoin buy on this trading pair can increase prices by 2%, compared to a minimum of $842,000 for the same impact on a BTC/USD trade pair.
Binance Launches Digital Asset Platform in Kazakhstan Amid Regulatory Scrutiny
Binance has announced the launch of a digital asset platform in Kazakhstan, offering cryptocurrency and fiat-focused services for Kazakhstani users in the Astana International Financial Centre. The move comes as the crypto exchange battles regulatory issues in the US and, including investigations in France and warnings in Italy, the UK, the Netherlands and Thailand. This has led other crypto platforms, such as Gemini, to look at entering and focusing on the Asian market.
Bitcoin Cash Surges Following Launch of Wall Street-Backed EDX Exchange
Bitcoin Cash (BCH) nearly surged to $140 following the launch of Wall Street-backed crypto exchange EDX, which initially supports four cryptocurrencies. BCH outperformed other top gainers and even Bitcoin (BTC), benefitting from positive sentiment driven by major companies, including BlackRock, filing for spot ETFs. Currently, BCH/USD is hovering around $130, up 22% in the past 24 hours.
Huobi Founder Li Lin Sues Huobi Global for Trademark Infringement
Huobi founder Li Lin has filed a lawsuit against crypto exchange Huobi Global for trademark infringement. The lawsuit alleges that Huobi resumed using the "Huobi" trademark without permission from Li Lin's company, which retained exclusive rights to the trademark. The lawsuit also claims that Huobi began reusing the trademark after Tron Founder Justin Sun accused Li Lin's brother of dumping large amounts of Huobi's native token. There has been no official statement from Huobi Global or Justin Sun regarding the lawsuit.
Ethereum Market Capitalization Tops All Altcoins Since February 2021
The market capitalization of Ethereum has surpassed all other altcoins, including major projects like Solana and Cardano, for the first time since February 2021. Ethereum's success can be attributed to its first-mover advantage, adoption of smart contracts, and dominance in decentralized finance and non-fungible token activity. Additionally, the global distribution of validators enhances the network's security.
Frog-Themed Meme Cryptocurrency PEPE Surges Amid Market Recovery
The frog-themed meme cryptocurrency, PEPE (PEPE), saw a 36% surge in price and a 140% increase in 24-hour trading volume. The market recovery was fueled by optimism surrounding BlackRock's potential filing for a U.S. Bitcoin ETF. EDX, a new cryptocurrency exchange, backed by Citadel Securities, Fidelity Investments, and Charles Schwab, has been established and will allow trading in BTC, ETH, LTC, and BCH.
Avalanche Unveils HyperSDK and Avalanche Warp Messaging Amid Price Rise
Avalanche (AVAX) is experiencing a rise in price and has introduced two important innovations: HyperSDK and Avalanche Warp Messaging (AWM). HyperSDK allows developers to create customizable virtual machines, while AWM facilitates seamless communication between subnets. The innovations are still being developed but show promising potential.
Ava Labs has also launched AvaGPT, an AI-powered chatbot based on OpenAI's ChatGPT technology, to provide quick answers and support for users of the Avalanche network. Developed in collaboration with Kapa AI, AvaGPT is trained specifically on Avalanche documentation. It is the first GPT-based product introduced by Ava Labs, with more to come.
Tether (USDT) Set to Launch on Cosmos' Kava Blockchain in July
Tether (USDT), the largest stablecoin, is set to launch on Cosmos' Kava blockchain on July 3, 2023. Kava offers benefits of Ethereum Virtual Machine (EVM) and Cosmos SDK. KAVA price surged from $0.82 to over $0.94 upon the announcement, outperforming other altcoins with a 15% surge.
Vitalik Buterin Discusses Interoperability Challenges and Solutions in Ethereum
Vitalik Buterin, co-founder of Ethereum, discusses the technical challenges of enhancing interoperability between Ethereum Layer 1 (L1) and Layer 2 (L2) solutions. He highlights the need for users to change access keys across multiple accounts and securely hold funds in addresses not yet registered on-chain. Buterin proposes an asset/keystore separation architecture, with two implementation options. He suggests different proof schemes and emphasizes the importance of optimized cross-chain proofs. Buterin also suggests reducing costs through proof aggregation and minimizing latency in Layer 2 solutions. Ethereum aims to improve cross-chain interactions, asset/keystore separation, and privacy.
Ledger Open-Sources Recovery Paper Ahead of Q4 2023 Seed Solution Launch
Hardware cryptocurrency wallet provider Ledger has open-sourced the Ledger Recover white paper, ahead of the Q4 2023 launch of its solution to allow users to back up and recover a Ledger device seed. The white paper assures that the new recovery service is "100% secure", users can run the protocol independently from Ledger and users' seed will not leave the device.
Polygon Labs Proposes zkEVM Validium Upgrade to Improve PoS Chain
Polygon Labs has proposed upgrading its proof-of-stake (PoS) chain to a zkEVM validium, aiming to improve security and performance. The upgrade would address issues such as fast block times, gas estimation inefficiencies, and chain reorganizations. The proposal suggests implementing a decentralized validator/sequencer set with deterministic, single block finality. The validium upgrade, which maintains data availability outside of Ethereum, could be implemented by Q1 2024 if community consensus is reached.
Casa Extends Vault Services to Include Ethereum, Bolsters Self-Custody
Bitcoin wallet provider Casa has expanded its services to include Ethereum vaults, allowing users to securely store their ETH. Casa emphasizes the importance of self-custody and eliminating reliance on third-party exchanges, which are prone to failures and security breaches. By using multi-signature technology, Casa ensures that multiple keys are required to access and send funds, providing enhanced security. The company aims to make self-custody accessible and user-friendly, offering support and guidance throughout the process. Casa also offers a high-security plan for users with significant holdings, featuring a five-key vault and additional support.
Arpa Network Launches on Ethereum Mainnet, Plans for Community Staking
Decentralized computation protocol Arpa Network has launched on the Ethereum mainnet, enabling users to conduct private blockchain activities. Ethereum developers can now build decentralized applications using Arpa, with plans for a community pool staking program and integration with other chains like BNB Chain. The remaining 500 million ARPA tokens will be minted and released gradually for staking rewards and ecosystem growth. The tokens currently have a market capitalization of $50 million.
Optimism's Third RetroPGF Round Distributes 30 Million Tokens to Contributors
Optimism, Ethereum's second-largest Layer 2 network, is launching its third "RetroPGF" round to reward contributors. The program will distribute 30 million OP tokens to builders, creators, and educators. RetroPGF offers an alternative to venture capital funding and encourages open repos and collaboration. Optimism's recent Bedrock upgrade has led to cost reductions and increased project deployments. Future upgrades will enable OP Stack-based networks to merge into a "Superchain."
OPNX Partners with 3AC Ventures Amid Backlash from Crypto Community
OPNX has partnered with 3AC Ventures to develop its ecosystem, but received backlash from crypto community due to its links with companies that have faced significant financial issues. The exchange offers crypto trading and its Claims product aims to help claimants affected by past crypto crises.
Top Altcoin Gainers and Losers
Pepe PEPE (+38.11%)
Conflux CFX (+28.41%)
Stacks STX (+26.00%)
Frax FRAX (-0.83%)
Gemini Dollar GUSD (-0.80%)
Toncoin TON (-0.72%)
NFT Market Map
Yuga Labs' controversial web game Dookey Dash generated $110 million in NFT trades, with the winning player selling his reward NFT for $1.63 million. The company has now announced HV-MTL Forge, a workshop-building game centered around its HV-MTL robot NFTs. Players can use their HV-MTL NFTs to access the game, where they compete to build and customize the best workshop. HV-MTL NFTs have generated $38 million in secondary trades so far. Yuga Labs is also working on the larger Otherside metaverse game.
The German intelligence agency, Bundesnachrichtendienst (BND), has launched an NFT collection called "Dogs of BND" as part of a gamified blockchain treasure hunt to recruit talent. Players must complete a cyber quest and find a hidden string of characters to mint the NFTs. The agency aims to attract young talent fluent in blockchain technology to combat cybercrime and has leveraged its Instagram following to reach social media-savvy individuals interested in NFTs. While the BND embraces NFTs for recruitment, not all government agencies, like the U.K. government, have pursued similar strategies due to concerns about speculation and financial risks.
This article has been refined and enhanced by ChatGPT.