Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 27, 2023

Crypto Market Update

Written by Van

Table of Contents:

Market Trends

• Bitcoin Exchange Netflow Hits Negative Spike: A Bullish Sign?
• Underbought Altcoins Display Decline in Asset Prices
• Most Chainlink Holders Face Losses, Retail Investors Accumulate

Crypto Technologies and Updates

• Bitcoin Core 25.0 Release: New Features and Improvements
• Ethereum Layer 2 Fees Soar, zkSync Outperforms Optimism
• Andreessen Horowitz Launches Cicada for Anonymous Ethereum Voting
• MakerDAO's DAI Savings Rate Increase Proposal to Impact DeFi Market
• Token Holders Regain Control after Tornado Cash Governance Attack

Legal and Regulatory Developments

• Gemini and Genesis Seek Dismissal of SEC Lawsuit

Country-Specific Developments

• Beijing Unveils Web3 Innovation Whitepaper amid Crypto Interest

Bitcoin Exchange Netflow Hits Negative Spike: A Bullish Sign?

Bitcoin exchange netflow has seen a significant negative spike, suggesting accumulation by holders and potentially indicating a bullish trend for the cryptocurrency's price. Withdrawals by whales during price declines may contribute to the trend.

Underbought Altcoins Display Decline in Asset Prices

Altcoins like Polygon, Ripple, and Ethereum displayed underbought signals, with most Market Value to Realized Value (MVRV) residing in the underbought region, leading to weak-handed investors selling their holdings. Long positions dominated liquidations, suggesting a decline in asset prices.

Most Chainlink Holders Face Losses, Retail Investors Accumulate

IntoTheBlock data suggests that over 80% of Chainlink (LINK) holders are facing losses, while whales are reducing their holdings. However, retail holders are accumulating the token. Chainlink's price performance has affected its adoption, but development activity is increasing. LINK might continue to face selling pressure in the short term. Social volume indicates growing interest in the token.

Bitcoin Core 25.0 Release: New Features and Improvements

Bitcoin Core version 25.0 is released, featuring new features, bug fixes, and performance improvements. Changes include expanded transaction sizes, fast wallet rescans, RPC updates, build system changes, and enhanced user control. Users should report bugs and review release notes before upgrading.

Ethereum Layer 2 Fees Soar, zkSync Outperforms Optimism

Ethereum Layer 2 networks experienced a significant increase in mainnet publishing fees in May, reaching 9,000 ETH ($16.2 million). This surge is attributed to rising gas costs on the Ethereum network. Arbitrum and zkSync were the top contributors, with zkSync surpassing Optimism in performance. Layer 2 solutions provide a more affordable method for transaction execution compared to the Ethereum mainnet.

Andreessen Horowitz Launches Cicada for Anonymous Ethereum Voting

Venture capital fund Andreessen Horowitz has released Cicada, a Solidity library for anonymous voting on Ethereum. It uses homomorphic time-lock puzzles to allow votes to be counted even if users go offline, and requires voters to submit a zero-knowledge proof of ballot validity to prevent attackers from increasing their voting power. Cicada can be combined with zero-knowledge group membership systems to make the identity of the voter permanently unknowable.

MakerDAO's DAI Savings Rate Increase Proposal to Impact DeFi Market

MakerDAO's community will vote on a proposal to increase the Dai (DAI) stablecoin's savings rate (DSR) to 3.33%, potentially impacting rates across the DeFi market. The DSR allows users to earn interest on locked DAI, funded by stability fees. The proposal aims to adjust stability fees on certain collateral types as well. The previous increase to 1% led to 35 million DAI deposited in a month.

Token Holders Regain Control after Tornado Cash Governance Attack

Tornado Cash governance token holders regain control after a proposal by the attacker was passed with no opposition. The attacker stole 483,000 TORN tokens and swapped most of them for 485 ETH ($890,000), leaving 39,000 TORN ($160,000). Tornado Cash is a mixing service on the Ethereum blockchain that was sanctioned by the U.S. Treasury in August 2022 under allegations of money laundering.

Gemini and Genesis Seek Dismissal of SEC Lawsuit

Gemini and Genesis Global Capital have jointly filed for the dismissal of an SEC lawsuit against Gemini Earn, their crypto lending product. The companies argue that Gemini Earn should not be considered a security and request the court to dismiss the complaint. Gemini has also filed a claim to recover over $1.1 billion in assets for 232,000 Earn users. The SEC lawsuit has complicated the asset recovery process from the bankruptcy of Genesis, causing delays for Earn users.

Beijing Unveils Web3 Innovation Whitepaper amid Crypto Interest

Beijing released a white paper on web3 innovation, aiming to promote its development and strengthen policy support. The timing coincides with Hong Kong's upcoming crypto rules and China's recent interest in the crypto industry. Beijing seeks to establish itself as a global innovation hub, investing $14 million annually until 2025.

Top Altcoin Gainers and Losers

Gainers:

Render Token RNDR (+16.88%)

Huobi Token HT (+11.50%)

Kava KAVA (+11.49%)

Losers:

GMX GMX (-13.87%)

Sui SUI (-11.81%)

Fantom FTM (-11.04%)

NFT Market Map

Virtual land prices on top metaverses have dropped by around 90% from their peak values in 2022. The Sandbox, Decentraland, Somnium and Voxels all saw depreciations in value between January 1, 2022, and May 24, 2023. The cheapest land in the metaverse was found in Voxels, selling for 0.16 ETH as of May 24. Apple's upcoming mixed-reality headset could reignite global interest in the metaverse.

This article has been refined and enhanced by ChatGPT.