Coin360 Daily Dispatch | Crypto Market Updates & Highlights | March 5, 2024

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Crypto Market Update

Table of Contents

Market Updates and Predictions

• Bitcoin Reaches New Heights Ahead of Halving Event
• Ethereum Faces Regulatory Hurdles and ETF Uncertainty
• Trading Surge Triggers Coinbase and Binance Issues
• Nigeria Intensifies Scrutiny on Binance Operations

Spotlight on ETFs and Institutional Moves

• BlackRock's Bitcoin ETF Ambitions Highlight Market Optimism

Meme Coin Madness

• Meme Coins Make Noise Amid Market Surge
• Meme Coins Surge on Listings and Whale Transactions

Exchange and Platform Innovations

• New Crypto Exchange Platform by Deutsche Börse Group

Legal and Regulatory Developments

• Do Kwon Faces Legal Challenges Abroad
• Fantom Fights to Recover $200 Million Lost to Hack
• MicroStrategy's Bold Bitcoin Acquisition Move
• Grayscale's Bitcoin Strategy Shifts Post-ETF Conversion

Emerging Trends and Technologies

• Solana Sees Record Decentralized Exchange Volume
• Stacks Network Boosts Security and Speed
• Baanx Raises $20 Million for Crypto Payment Growth
• Osprey Bitcoin Trust Evaluates Future Strategies
• Blockchain Project OrdiZK Suspected of Exit Scam
• Bored Ape Yacht Club NFT Floor Price Hits New Low

Bitcoin Reaches New Heights Ahead of Halving Event

Bitcoin's recent surge to a new all-time high above $69,000 before a 7% correction sparked market volatility, with nearly $150 million in liquidations. This peak precedes a significant halving event, marking an unprecedented milestone in Bitcoin's history. Concurrently, CME recorded record BTC futures contracts, indicating intense derivatives market activity. With a surge to ATH, Bitcoin's market cap briefly exceeded silver, placing it as the 8th largest global asset, highlighting its growing financial influence. 

Notably, a dormant Bitcoin whale moved 1,000 BTC after 10 years, showcasing the potential impact of large-scale transactions on market dynamics. Analysts predict a forthcoming major rally, viewing current trends as a precursor to a more substantial bull market. This optimism is bolstered by over $10 billion inflows into Bitcoin ETFs, reflecting strong investor confidence and the anticipation of continued capital influx.

Ethereum Faces Regulatory Hurdles and ETF Uncertainty

ETH briefly reached $3,800 just to see a correction later. The SEC has delayed decisions on Ethereum ETF applications from BlackRock and Fidelity, extending the timeline for public comments and raising concerns about Ethereum's proof-of-stake model. Analysts suggest a final decision may not come until a deadline in May, emphasizing the importance of this date for Ethereum ETFs. Despite this, the SEC's hesitation reflects uncertainty over Ethereum's susceptibility to fraud and manipulation due to its consensus mechanism and control concentration. 

Meanwhile, Bloomberg analysts argue that Ethereum ETFs are overhyped compared to Bitcoin, predicting less market interest. They note that Ethereum's market cap and ETF demand are significantly smaller than Bitcoin's, citing Canada's ETF market as evidence. Additionally, the amount of staked Ethereum has grown to $116 billion ahead of the DenCun upgrade, aimed at improving transaction efficiency and staking processes, signaling strong community support and anticipation for future network enhancements.

Trading Surge Triggers Coinbase and Binance Issues

Coinbase encountered another technical issues amid heavy trading, with users reporting $0 balances. The exchange assured users their assets were safe, attributing glitches to a surge in market activity, particularly as Bitcoin approached an all-time high. Coinbase and Binance crashes were also linked to increased workloads from algorithmic trading firms, per dYdX's chief strategy officer. This surge in activity overwhelmed exchanges, resulting in latency and zero-balance issues. Coinbase stock (COIN) rose over 10% amidst the turmoil, signaling bullish market sentiment despite technical challenges.

Nigeria Intensifies Scrutiny on Binance Operations

Binance is ending support for the Nigerian naira due to government scrutiny, stopping naira deposits from March 5 and withdrawals shortly after, converting remaining naira to USDT. Nigeria's House of Representatives summons Binance CEO over allegations of terrorism financing, demanding tax compliance and a physical office for complaints. Meanwhile, Binance warns of significant Bitcoin transfers due to wallet maintenance, aiming to avoid speculation amid Bitcoin's all-time high price, stressing the internal nature of these transfers.

BlackRock's Bitcoin ETF Ambitions Highlight Market Optimism

BlackRock aims to incorporate Bitcoin ETFs into its Strategic Income Opportunities Fund, stressing investment risks and potential costs, while the SEC has green-lit 11 spot Bitcoin ETFs, fostering a massive surge in popularity. CCData's report reveals significant interest in U.S. spot Bitcoin ETFs, with inflows hitting $6.03 billion, driven by price rises and notable contributions from BlackRock's iShares and Fidelity's FBTC. 

Meanwhile, the U.S. spot Bitcoin ETFs' assets have surpassed $52.5 billion, more than half of gold ETF assets, hinting at a potential surpassing within two years. Noteworthy is the Grayscale Bitcoin Trust's conversion and leading asset contribution, alongside BlackRock and Fidelity's substantial holdings, as comparisons between Bitcoin as "digital gold" and traditional gold investments grow, highlighting Bitcoin ETFs' rapid market adaptation and investment allure.

Meme Coins Make Noise Amid Market Surge

Dog, cat, and frog-themed memecoins experienced surges, with dog-themed coins leading in trading volume, notably Dogecoin and Shiba Inu. Popcat and dogwifhat were among the top performers in their categories. Shiba Inu, Baby Doge Coin, and Memecoin emerged as the most whale-dominated meme coins, with significant concentrations of supply among top wallets. In contrast, Solana-based meme coins like Bonk and Dogwifhat showed less concentration. PEPE, FLOKI, and BONK gained significant market positions, with PEPE hitting a new all-time high. Massive transfers of FLOKI by whales indicated potential for further gains, underscoring the volatile yet significant impact of meme coins in the crypto market.

Meme Coins Surge on Listings and Whale Transactions

Robinhood's listing of BONK, a Solana star meme coin, saw a 19% price surge, reflecting its market cap surpassing PEPE's with a notable 90.5% increase. Meanwhile, Binance announced to list Dogwifhat (WIF), another Solana-based meme coin, enabling spot trading for multiple pairs; WIF experienced a 2,750% growth since inception and a 28% price move upon listing announcement. Meanwhile, over 197 million Dogecoin were purchased on Robinhood, coinciding with DOGE hitting a 3-year high of $0.2, as significant amounts were moved by whales, particularly to Coinbase and Robinhood, demonstrating increased whale activity and investor interest in meme coins across platforms.

New Crypto Exchange Platform by Deutsche Börse Group

Deutsche Börse Group launches the Deutsche Börse Digital Exchange (DBDX), a crypto spot platform for institutional clients, supporting trading, settlement, and custody services. This initiative aligns with the company's "Horizon 2026" strategy. Regulatory compliance underpins the venture, following the EU's Markets in Crypto-Assets legislation. Crypto Finance, a Deutsche Börse subsidiary, will provide settlement and custody services.  

Do Kwon Faces Legal Challenges Abroad

Do Kwon, Terra's founder, avoids US extradition as Montenegro's Appeals Court overturns the Supreme Court verdict citing procedural errors. The initial court did not properly consider the order of extradition requests, misconstruing a key US document's request for temporary detention. The case is sent for a new hearing for a more detailed analysis.  

Fantom Fights to Recover $200 Million Lost to Hack

Fantom Foundation is pursuing legal action to recover assets lost in a $200 million Multichain exploit. Having won a default judgment in Singapore, they aim to liquidate Multichain to recover assets and enable users to claim their losses. Fantom's FTM tokens surged up to 22% but later retreated, amid the broader crypto market's 3.57% rise.  

MicroStrategy's Bold Bitcoin Acquisition Move

MicroStrategy plans to offer $600 million in convertible senior notes due 2030 to acquire more Bitcoin. The offering targets qualified institutional buyers and leverages Rule 144A. The notes, unsecured senior obligations, will offer an option to purchase an additional $90 million. Bitcoin holdings currently total 193,000 BTC, valued at approximately $8.3 billion.  

Grayscale's Bitcoin Strategy Shifts Post-ETF Conversion

Grayscale's GBTC Bitcoin holdings have declined by 33% since its conversion to an ETF, totaling 420,682 BTC. Outflows of $9.26 billion have occurred, with speculation on when the decline may end. Meanwhile, other Bitcoin ETFs have seen significant volume increases, with BlackRock's IBIT exceeding $11 billion in assets under management and Fidelity's inflows offsetting GBTC outflows.  

Solana Sees Record Decentralized Exchange Volume

Solana's weekly DEX trading volume surged to an all-time high of over $11 billion, demonstrating its growth as an Ethereum competitor. Orca and Raydium led the frenzy, while Solana tokens like SOL reached a 22-month high. However, the total value locked (TVL) was just over $2.6 billion, far from its peak in November 2021 at $9.9 billion.  

Stacks Network Boosts Security and Speed

Stacks has onboarded six new signers, including Blockdaemon, NEAR Foundation, and others, aiming to strengthen security and decentralization. Stacks' STX token fell 5.55% in 24 hours but surged 93% in the past month. The network plans to release Nakamoto and sBTC for faster transaction speeds. 

Baanx Raises $20 Million for Crypto Payment Growth

Baanx, a UK FCA-authorized crypto payments specialist, secured a $20 million Series A funding round involving Ledger, Tezos Foundation, Chiron, and British Business Bank, raising total funding to $30 million. The company serves 150,000 users, recently partnered with Mastercard for the UK and Europe, and plans expansion into the US and Latin America.  

Osprey Bitcoin Trust Evaluates Future Strategies

Osprey Bitcoin Trust aims to find a buyer or merge with a Bitcoin ETF; otherwise, it plans to dissolve in 180 days. The trust competes with Grayscale's GBTC. As an alternative to liquidation, strategic options include merging with a Bitcoin ETF. The company previously filed a lawsuit against Grayscale over its ETF conversion.  

Blockchain Project OrdiZK Suspected of Exit Scam

OrdiZK, a blockchain project aimed at bridging Bitcoin, Ethereum, and Solana, reported an apparent rug pull, resulting in a $1.4 million loss and a 99% drop in its native token's value. CertiK, a blockchain security firm, revealed that developers conducted an exit scam, transferring substantial funds to their control and subsequently shutting down the project's online presence.