Coin360 Daily Dispatch | Crypto Market Updates & Highlights | June 30, 2023
Crypto Market Update
Written by Van
Table of Content:
Blockchain and Cryptocurrency Regulation
- SEC Rejects Bitcoin ETF Filings due to Inadequate Protection
- UK Takes Lead in Cryptocurrency Regulation with New Legislation
- South Korea Passes Crypto Bill for Investor Protection
Economic Updates and Reports
- US Q1 GDP Shows Resilience Despite Economic Challenges
- Kaiko Report Showcases Altcoin Liquidity Improvement
Cryptocurrency Exchanges and Platforms
- Celsius Network to Offer Bitcoin and Ether as Collateral
- OKX Expands Sponsorship Deal with Manchester City
- Coinbase to Launch Ethereum L2 Scaling Solution
- Revolut US to Delist ADA, MATIC, and SOL in September
- Binance Loses Euro Payment Partner Amid Regulatory Woes
Cryptocurrencies Market Performance
- Bitcoin Price Plummets Following SEC's ETF Rejections
- Litecoin Surges Above $100 Amid High Hash Rate
- Investor Confidence in Ethereum as Passive Income Source Grows
- Bitcoin Cash Surges 168% in 10 Days
- Liquid Staking Popularity Fuels Solana’s Price Surge
- XEC Price Surges 48%, Optimism Grows for eCash Growth
Blockchain Interoperability and Security
- Polkadot Joins Cosmos Interchain, Ushering in Interoperability
- Polygon 2.0 Set to Utilize Matic Re-staking and Interoperability Layer
Crypto Projects Developments
- Terra (LUNA) Passes Proposal to Revive LUN and USTC to 1:1
- Lido Considers Staking Treasury ETH to Generate Extra Yield
- Sui Network Announces Gradual Token Unlocking over 10 Years
- PayPal Veterans Launch Versal to Compete with SWIFT
NFT Market Developments
- Fashion Brand Lacoste Ventures into NFT Space
- Candy Digital Announces Layoffs and Merger with Palm NFT Studio
- Melania Trump's 'The 1776 Collection' Expands Family's NFT Endeavors
SEC Rejects Bitcoin ETF Filings due to Inadequate Protection
The US Securities and Exchange Commission (SEC) has rejected all spot Bitcoin exchange-traded fund (ETF) filings, citing inadequate documentation. The SEC has stated that the filings did not meet the necessary requirements to protect investors. The decision comes after several companies, including Fidelity Investments and VanEck, submitted applications for spot Bitcoin ETFs.
The rejection highlights the SEC's cautious approach towards cryptocurrency-based financial products and its concerns about market manipulation and investor protection.
UK Takes Lead in Cryptocurrency Regulation with New Legislation
The UK has passed a bill to regulate cryptocurrencies, making it the first major economy to do so. The law aims to prevent money laundering and terrorist financing by requiring crypto firms to register with the Financial Conduct Authority. It also grants the FCA more power to supervise and enforce compliance.
The legislation could help boost investor confidence in the crypto industry and attract more institutional players. However, critics argue that the law may stifle innovation and hinder the growth of the sector.
South Korea Passes Crypto Bill for Investor Protection
South Korean lawmakers have passed a crypto bill to protect investors. The bill aims to establish a framework for the regulation and supervision of digital assets. It requires cryptocurrency exchanges to register with the Financial Intelligence Unit and comply with anti-money laundering regulations. The bill also introduces penalties for illegal activities related to digital assets. The legislation is expected to enhance investor protection and promote the development of the cryptocurrency industry in South Korea.
US Q1 GDP Shows Resilience Despite Economic Challenges
US Q1 GDP grew at 2.0% with strong consumer spending, but business investment and exports declined. GDP growth indicates recovery, but supply chain disruptions and labor shortages remain challenges. Federal Reserve's bailout fund reaches $756 billion, up 37% from last year, reflecting ongoing economic challenges and the central bank's commitment to support the financial system.
Kaiko Report Showcases Altcoin Liquidity Improvement
Kaiko’s second-quarter altcoin liquidity report has been released, alerting token owners. The report reveals that the liquidity of altcoins has improved significantly, with the top 50 altcoins experiencing a 32% increase in liquidity.
The report also highlights the top 10 altcoins with the highest liquidity, including Bitcoin, Ethereum, and Binance Coin. Additionally, it mentions the top 10 altcoins with the lowest liquidity, such as Nano, Dogecoin, and Verge.
Celsius Network to Offer Bitcoin and Ether as Collateral
Starting from July 1st, Celsius Network will allow its debtors to exchange altcoins for Bitcoin and Ether as collateral. This move aims to provide more flexibility and options for borrowers, as well as reduce the risk associated with holding altcoins as collateral.
Celsius Network has seen significant growth in its lending business, with over $17 billion in loans originated and $10 billion in assets under management. The platform offers competitive interest rates and has a user-friendly mobile app.
OKX Expands Sponsorship Deal with Manchester City
Cryptocurrency exchange OKX has expanded its sponsorship deal with Manchester City Football Club in a $70 million agreement. The partnership will see OKX gain global exposure through various marketing initiatives, including branding on matchday LED boards and player jerseys.
OKX aims to tap into the football club's massive fanbase to increase awareness and adoption of cryptocurrencies. The exchange previously signed a smaller sponsorship deal with Manchester City in 2019.
Coinbase to Launch Ethereum L2 Scaling Solution
Cryptocurrency exchange Coinbase plans to launch its Ethereum Layer 2 scaling solution called "Coinbase Ethereum L2" on the mainnet. This will allow users to access decentralized applications (DApps) more efficiently and at a lower cost. Coinbase Ethereum L2 aims to tackle the scalability issues faced by Ethereum by processing transactions off-chain and settling them on-chain.
The Layer 2 solution has already been successfully tested on the Ethereum testnet, achieving significant improvements in transaction speed and cost reduction.
Revolut US to Delist ADA, MATIC, and SOL in September
Revolut US plans to delist three cryptocurrencies - ADA, MATIC, and SOL - from its platform in September. The decision is based on low trading volume and liquidity concerns. Revolut US aims to offer a diverse range of cryptocurrencies and will continue to monitor market conditions for potential additions.
Binance Loses Euro Payment Partner Amid Regulatory Woes
Binance, the world's largest cryptocurrency exchange, has lost its euro payment partner, Clear Junction. Clear Junction has been denied licensing in Germany, leading to the termination of their partnership with Binance.
This comes after Binance faced regulatory scrutiny in various countries. The exchange has also been banned from operating in the UK by the Financial Conduct Authority. Binance's regulatory challenges continue to grow as it faces increased scrutiny and restrictions from authorities worldwide.
Bitcoin Price Plummets Following SEC's ETF Rejections
Bitcoin's price dropped by 8% to $29,900 after the Wall Street Journal reported that several Bitcoin ETF filings were deemed inadequate by the SEC. The report stated that the SEC is concerned about the lack of transparency and potential market manipulation in the Bitcoin market. BTC's price dropping below $30,000 led to $236 million in liquidations, causing panic selling.
This drop resulted in the largest number of liquidations in a single day since May. Traders holding long positions were forced to sell their assets to cover losses, leading to a cascading effect. It is now recovering to above $30,500.
Litecoin Surges Above $100 Amid High Hash Rate
Litecoin has surged past $100 as its hash rate reaches an all-time high. The upcoming halving event, which will reduce the mining reward from 25 to 12.5 LTC, is seen as a key factor in the price increase.
The hash rate has increased by 200% in the past six months, indicating growing interest and investment in Litecoin mining. This surge in price and hash rate suggests that Litecoin is gaining momentum and attracting more attention in the cryptocurrency market.
Investor Confidence in Ethereum as Passive Income Source Grows
The number of addresses holding at least 32 ETH, the minimum required to participate in Ethereum 2.0, has also surged to a record high of 138,018. These figures indicate growing interest in Ethereum as a means of generating passive income.
Bitcoin Cash Surges 168% in 10 Days
Bitcoin Cash (BCH) experienced a 168% surge in just 10 days, largely driven by South Korean investors. The surge was due to a combination of factors, including increased trading volume, a positive market sentiment, and the launch of BCH trading pairs on major Korean exchanges.
The surge in BCH price was also influenced by a pump and dump scheme orchestrated by a South Korean group. Despite the volatility, BCH remains one of the top cryptocurrencies in terms of market capitalization.
Liquid Staking Popularity Fuels Solana’s Price Surge
Solana's price has surged by 18% to 20% due to the growing popularity of liquid staking. This is driven by the launch of the mSOL token, which allows users to earn staking rewards while maintaining liquidity. The mSOL token has seen significant demand, with its supply increasing by 690% in just a week. This surge in demand for liquid staking on Solana has contributed to the overall bullish sentiment in the market.
XEC Price Surges 48%, Optimism Grows for eCash Growth
eCash (XEC) has seen a 48% surge in price within a single day, likely due to the recent news of Bitcoin Cash (BCH) doubling in value. XEC is a spin-off from the Bitcoin Cash blockchain, which was split from Bitcoin. Supporters of eCash are optimistic about its potential for similar growth.
Polkadot Joins Cosmos Interchain, Ushering in Interoperability
Polkadot has joined Cosmos Interchain, potentially transforming the blockchain industry. Polkadot's integration with Cosmos will enable cross-chain communication and interoperability, allowing different blockchains to connect and share data. This collaboration aims to solve the scalability and interoperability issues faced by the blockchain industry.
Polkadot's parachain technology and Cosmos' Inter-Blockchain Communication protocol will work together to enhance the overall blockchain ecosystem. This partnership could lead to increased adoption and development of decentralized applications, making blockchain technology more accessible and efficient.
Polygon 2.0 Set to Utilize Matic Re-staking and Interoperability Layer
Polygon 2.0 will utilize Matic re-staking and a new interoperability layer. It aims to improve scalability, security, and decentralization. The upgrade will reduce transaction fees by 90% and increase throughput by 1000x. Polygon will also introduce a new security model to protect against attacks.
The interoperability layer will allow seamless communication between Ethereum and other blockchains. The upgrade will enhance Polygon's position as a leading Layer 2 solution, attracting more developers and users to its ecosystem.
Terra (LUNA) Passes Proposal to Revive LUN and USTC to 1:1
Terra (LUNA) has passed a proposal to revive LUN and USTC to 1:1. The proposal aims to address the problem of low liquidity and high slippage on the Terra network. The move is expected to boost trading volume and attract more users.
The proposal received overwhelming support from the Terra community, with 94.5% voting in favor. This development comes as Terra continues to gain popularity in the crypto market, with its native token LUNA experiencing significant growth.
Lido Considers Staking Treasury ETH to Generate Extra Yield
Lido, a liquid staking provider, is considering staking its treasury ETH. With over 200,000 ETH ($380 million) in its treasury, Lido aims to generate additional yield by staking these funds. This move could potentially increase Lido's annualized yield by 7%. However, there are concerns about the potential risks involved in staking such a large amount of ETH. Lido is seeking community feedback before making a final decision.
Sui Network Announces Gradual Token Unlocking over 10 Years
Sui Network's tokens will be unlocked gradually over a period of 10 years. The unlocking process will start in January 2023, with 5% of the tokens becoming available. Each subsequent year, an additional 5% will be unlocked until the full supply is accessible in 2032.
This gradual unlocking aims to ensure the stability and long-term growth of the network. Sui Network is a blockchain platform that focuses on decentralized finance (DeFi) and aims to provide efficient solutions for users.
PayPal Veterans Launch Versal to Compete with SWIFT
PayPal veterans have launched a new blockchain-based network called Versal, aiming to compete with traditional payment systems like SWIFT. The network will provide faster and cheaper cross-border transactions, with claims of being 50% cheaper than SWIFT. Versal aims to connect banks, payment processors, and merchants globally, offering real-time transactions and settlement.
The network will use the XRP Ledger and Ripple's Interledger Protocol. Versal's goal is to disrupt the current financial system and provide a more efficient and cost-effective alternative for global payments.
Fashion Brand Lacoste Ventures into NFT Space
Lacoste has announced its entry into the NFT space by launching its own NFT ecosystem on the Web3. The fashion brand aims to leverage NFTs to offer unique digital experiences to its customers. The NFT ecosystem will include limited edition digital collectibles, virtual fashion items, and exclusive access to events and collaborations.
Lacoste plans to use blockchain technology to ensure the authenticity and ownership of its digital assets. This move reflects the growing trend of established brands embracing NFTs as a way to engage with their audience and tap into the digital market.
Candy Digital Announces Layoffs and Merger with Palm NFT Studio
Candy Digital, a digital collectibles firm co-owned by the Major League Baseball (MLB), has announced layoffs and a merger with Palm NFT Studio. The company, which sells NFTs of MLB players, has experienced declining sales and struggled to attract users.
The layoffs will affect less than 50% of its workforce. The merger with Palm NFT Studio aims to enhance Candy Digital's product offerings and expand its reach in the NFT market.
Melania Trump's 'The 1776 Collection' Expands Family's NFT Endeavors
The Trump family is expanding its NFT endeavors with Melania's "The 1776 Collection." The collection includes digital artworks and a physical copy of the US Constitution. The NFTs will be sold through the Mintable platform, with a portion of the proceeds going to charity.
The Trump family has previously released NFTs, including Donald Trump Jr.'s "The MAGA Collection" and former President Trump's own NFTs. This move highlights the growing popularity of NFTs and their adoption by prominent figures.
Top Altcoin Gainers and Losers
eCash XEC (+49.04%)
Bitcoin Cash BCH (+33.03%)
Litecoin LTC (+30.23%)
Radix XRD (-10.47%)
Toncoin TON (-2.98%)
Stacks STX (-2.00%)
NFT Market Map
Following a significant drop in price, the number of long-term Azuki token holders selling their holdings surged by 817%. The data from Nansen shows that the number of long-term holders selling their tokens increased from 1,000 to 9,170 after the price of Azuki dropped. After a failed collection launch, the platform made minor changes to its similar non-fungible tokens (NFTs), but critics argue that the changes are still inadequate.
This article has been refined and enhanced by ChatGPT.