Coin360 Daily Dispatch | Crypto Market Updates & Highlights | March 6, 2024

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Crypto Market Update

Table of Contents

Crypto Market Dynamics

• Bitcoin Surges and Dips in Volatile Market
• Solana Meme Coins Witness Massive Gains
• Binance Pauses Solana Withdrawals Amid High Volume
• Spain Blocks Worldcoin Over Data Concerns

Investments and Partnerships

• Mirana Ventures Backs TON with $8M Investment
• Revolut Partners with MetaMask for Easy Crypto Purchases
• Io.net Secures $30M for Decentralized AI Computing

Regulatory and Security Updates

• WOOFi Faces Major Exploit on Arbitrum Market
• SEC Settles with ShapeShift Over Securities Issue
• Nexo Gets Preliminary Approval from Dubai's VARA
• SEC Examines Binance.US for Compliance Issues

Blockchain and Technology Innovations

• $66M Ecosystem Grant by Magic Square for Web3 Projects
• India Utilizes Blockchain for Official Records
• Astar Integrates zkEVM for Enhanced Cross-Chain Security
• EigenLayer Tops Aave with $11B TVL

Market Trends and Performance

• Shiba Inu's Value Soars Despite Market Downturn
• Coachella to Launch Exclusive NFTs on Avalanche

Bitcoin Surges and Dips in Volatile Market

Bitcoin rebounded from a sharp correction below $60,000, with traders swiftly leveraging the dip for potential gains. This period saw Bitcoin surging past $69,000, only to experience a notable drop, attributed to factors including profit-taking by miners and leveraged positions. Amidst these fluctuations, the BlackRock iShares Bitcoin ETF (IBIT) recorded unprecedented inflows, adding over 12,600 bitcoins in a single day, a testament to investor interest despite market jitters. The market also witnessed a widening gap in liquidity between sell and buy orders, hinting at a possible slowdown in the rally due to profit-taking. 

Meanwhile, analyses from CryptoQuant and other experts suggested that the correction could foster market positivity, viewing it as a healthy consolidation phase and debunking fears of a protracted bear market. Despite a $10K drop, the sentiment remains bullish with experts emphasizing the market's underlying strength and the sustained interest from institutional investors, particularly in the United States, fueling optimism for Bitcoin's trajectory.

Solana Meme Coins Witness Massive Gains

Solana's meme coins, including dogwifhat (WIF) and BODEN based on President Joe Biden, saw significant surges in value. Dogwifhat rose by 60%, while BODEN spiked by 830% on Wednesday, reaching over $23 million in trading volume. Dogwifhat (WIF) became the first major meme coin to surpass $2, reaching a $2.11 price and $2 billion capitalization. 

Anticipation of more exchange listings and a surge in retail popularity contributed to the 48% surge, with crypto whales making significant purchases during a price dip, acquiring millions of WIF. The token's memetic value, derived from a dog with a hat image, and its listing on Binance were key drivers.  

Binance Pauses Solana Withdrawals Amid High Volume

Binance has suspended Solana withdrawals due to high transaction volumes. Binance plans to restart withdrawals on March 9 following a new solution, as announced on March 6. Despite this, Solana's native token, SOL, has seen a minimal 3.8% dip and is trading at $129. Several major exchanges also faced outages due to increased trading activity. In 2024, Binance received a cybersecurity award.  

Spain Blocks Worldcoin Over Data Concerns

The Spanish data protection agency imposed a temporary block on Worldcoin, ordering a halt to collecting and processing personal data. The AEPD cited significant concerns like inadequate information, data collection from minors, and the inability to withdraw consent. Worldcoin faces a three-month ban in Spain following regulatory scrutiny for biometric data practices.  

Mirana Ventures Backs TON with $8M Investment

Mirana Ventures invests $8 million in TON ecosystem. Bybit plans to engage with Telegram's new ad platform on the TON blockchain aiming to access its large user base. TON Foundation integrates MNT tokens with TON Space to offer gamified campaigns. Animoca Brands becomes the largest TON validator with an undisclosed investment in Toncoin.  

Revolut Partners with MetaMask for Easy Crypto Purchases

Revolut has partnered with MetaMask to enable direct crypto purchases through Revolut Ramp. This integration allows UK and European Economic Area customers to swiftly buy crypto tokens into their MetaMask wallets, with existing Revolut users benefitting from speedy transactions. The partnership aims to make crypto more accessible and foster broader adoption globally.  

Io.net Secures $30M for Decentralized AI Computing

Io.net, a DePIN project on Solana blockchain, raised $30 million in Series A funding. The project aims to build a decentralized GPU network and solve the AI computing shortage. It has aggregated over 25,000 GPUs, processed 40,000 hours of computation, and plans to expand its team to meet demand, all while launching its native token, IO.

WOOFi Faces Major Exploit on Arbitrum Market

Cross-chain DEX WOOFi faced an $8M attack on its Arbitrum lending market. Exploiter manipulated sPMM algorithm for substantial gains. Security firms alerted to flash loan attacks. WOOFi paused affected contracts, investigating the issue. Recovery efforts ongoing. WOOFi Swap v2 paused, v3 release planned. 10% bounty for fund recovery.  

SEC Settles with ShapeShift Over Securities Issue

The SEC settled with ShapeShift for $275,000 over unregistered security listings due to the Howey Test. ShapeShift agreed to cease violations. Erik Voorhees clarified that FOX is not a security. U.S. court ruled crypto trades on secondary markets as securities in a case involving Ishan Wahi and associates for insider trading.  

Nexo Gets Preliminary Approval from Dubai's VARA

Nexo's Dubai entity received initial approval from the emirate’s Virtual Assets Regulatory Authority (VARA). The approval allows Nexo to offer virtual asset lending, borrowing, management, investment, and broker-dealer services. The company will navigate through subsequent phases to obtain preparatory and final operating licenses. Nexo aims to expand its services to regional clients.  

SEC Examines Binance.US for Compliance Issues

Binance.US faces intensified SEC scrutiny over asset control and compliance disclosure. The SEC lawsuit pivots on Binance employees' influence over American customers' funds. The aftermath of a Temporary Restraining Order led to a $1 billion asset outflow, a 75% revenue loss, and a two-thirds staff reduction. Legal costs surged to $10 million.  

$66M Ecosystem Grant by Magic Square for Web3 Projects

Magic Square's Ecosystem Grant Program allocates $66M in SQR tokens, 12% of total supply, to boost projects on its Web3 platform. SQR tokens value $0.55, market cap $550M. Supported by Binance Labs, Crypto.com Capital, Magic Square offers 1,100+ apps, 3.6M unique wallets, aiming to enhance app visibility and user engagement.  

India Utilizes Blockchain for Official Records

India's National Informatics Centre hosts 8M gov’t documents on Hyperledger Fabric, Hyperledger Sawtooth, and Ethereum. Documents include education, property, judiciary, and drug logistics records. Blockchain initiatives verify ownership and supply chain management in six states and three government departments. The motive is to combat document forgery, and the nation widely supports blockchain adoption.  

Astar Integrates zkEVM for Enhanced Cross-Chain Security

Astar Network launched Astar zkEVM, the first zero-knowledge layer-2 chain integrated into Polygon's AggLayer. This facilitates cross-chain transactions with cryptographic security and atomic composability. The move aligns with Japan's national tech strategy and positions Astar as a leader in web3 innovation, accelerating growth in enterprise, retail, and government sectors.   

EigenLayer Tops Aave with $11B TVL

EigenLayer, a restaking protocol, surpassed Aave, reaching a peak TVL of $11B before settling at $10.4B. EigenLayer allows restaking stETH and wETH, experiencing a 382.5% TVL surge after removing its staking cap. With 115,000 depositors, 41% locked wETH, and 30% stETH, it's now the 2nd largest DeFi protocol, next to Lido.  

Shiba Inu's Value Soars Despite Market Downturn

Despite recent crypto market retracement, Shiba Inu (SHIB)'s value remains significantly up over the week, with a 230% increase. 72% of SHIB holders are in profit, up from 90% underwater in September. Aggregated trading volume has surged 90% to exceed $2 billion, with daily active addresses growing by 70% to nearly 50,000.