Coin360 Daily Dispatch | Crypto Market Updates & Highlights | May 29, 2023

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May 29 2023

2 years ago3 minutes read

Markets360

Crypto Market Update

Written by Van

Temasek Reduces Pay Following FTX Investment Debacle

Singapore's Temasek has reduced the pay of senior management and the investment team involved in the failed investment in FTX cryptocurrency exchange, which collapsed last November. Temasek had written off $275 million invested in FTX, citing fraudulent conduct. The Monetary Authority of Singapore stated it couldn't protect local users from the fallout as FTX operated offshore. FTX's bankruptcy had a ripple effect on other crypto businesses.

USDT Dominates Stablecoin Market, USDC Declines

Over the past year, Tether's USDT stablecoin has gained market dominance, while Circle's USD Coin (USDC) has declined. Tether's market share is now at 65.89%, with a market cap of $83.1 billion. Circle CEO Jeremy Allaire attributes USDC's decline to US regulators' crypto crackdown. Tether has faced criticism for lacking transparency but is working on providing greater financial transparency and reducing its exposure to the banking system.

Bali Government Bans Crypto Payments, Sparks Mixed Reactions

The government of Bali, Indonesia, has banned crypto payments, causing mixed reactions among the community. Tourists using crypto could face punishments, and businesses accepting it may be forced to close. Some argue the ban is reasonable, while others reconsider their vacation plans. The tourism sector contributes significantly to Bali's economy, and a decline in visitors could impact income.

Dog-Themed Crypto Floki Surges after Chinese TV Feature

Floki (FLOKI), a dog-themed cryptocurrency, experienced a 10% surge in value after appearing on Chinese TV before giving up the gains. The coin's daily trading volume rose by 400% and it gained popularity in China. Floki also launched a metaverse game called Valhalla, while its rival memecoin, Shiba Inu (SHIB), is working on a similar game. However, Floki still faces a monthly deficit. The full version of Floki's Valhalla game is yet to be released.

Bitcoin Trades Near $28,000 Amid Debt Ceiling Uncertainties

Bitcoin traded near $28,000 on May 28, with traders still wary of a full correction of weekend upside. BTC shorts increased as the US markets closed for the Memorial Day holiday, while traders were waiting for a Congressional vote on the proposed deal to extend the US debt ceiling. Despite the Wall Street holiday, US dollar strength continued to play out in a trend which formerly spelled significant headwinds for cryptoasset performance.

Bitcoin's near-term outlook is positive as short-term holders are moving coins at a profit, with the short-term holder's spent output profit ratio (SOPR) rising above 1. This indicates capitulation from short-term holders and historically suggests bullish price action. Bitcoin has rallied 68% this year and long-term holders also turned profitable recently. Bitcoin shrimps defy market trends by accumulating record-breaking volumes of BTC. Shrimp holdings have increased significantly, reaching an all-time high of 1.3 million BTC. Active addresses and the price of BTC have shown slight uptrends.

Ethereum Gains Traction: Up 5.5% on the Week

Ethereum and the overall cryptocurrency market are experiencing an upward swing, with Ethereum up 5.5% in the past week. The rise can be attributed to recent on-chain and macro developments, including a US debt deal. Ethereum's balance on centralized exchanges is decreasing, indicating investors' inclination to hold ETH.

The upcoming Cancun-Deneb upgrade will enhance Ethereum's scalability and security, with Danksharding increasing data availability on-chain. Traders and investors can expect a bullish momentum in the long term. However, caution is advised as Ethereum may return to $1,700 if the market corrects.

Increased User Adoption Drives Solana’s Market Momentum

Solana's unique active users have increased, indicating higher blockchain adoption. However, daily transactions and DEX volume have declined. SOL's price has risen, accompanied by increased trading volume and positive sentiment. Bullish market indicators suggest further price growth is possible.

BONE Outperforms Doge, SHIB Amid Shibarium Beta Growth

The price of Shiba Inu's governance token, BONE, has risen by 21% in the past week, outperforming popular dog-themed coins like Dogecoin and Shiba Inu. BONE experienced significant gains and is currently approaching the $0.90 barrier. Its price increase may be attributed to its growing utility on the Shibarium beta platform, which has reached one million blocks and has over 16 million interacting wallet addresses.

Multichain Token Price Surges Despite Co-Founder Mystery

Multichain token price surges 35% before retracing, despite lack of updates on co-founder's whereabouts. The protocol remains partially offline with no clear explanation, causing concerns among users and leading to reduced exposure from various crypto entities.

PancakeSwap Launches Crypto Game, Boosts CAKE by 20%

PancakeSwap, the largest decentralized exchange on the Binance Smart Chain, has launched its own crypto game called Pancake Protectors. The game offers unique NFTs and rewards in its native token CAKE. The game is powered by the Mobox GameFi protocol and allows players to use third-party NFTs as avatars. The announcement has caused the price of CAKE to jump by over 20% at one point.

Fantom Rolls Out DApp Gas Monetization Program

Fantom blockchain has implemented a "dApp Gas Monetization Program" to reward projects that contribute to high gas fees and increase demand for block space. Eligible applications will receive 15% of the gas fees they generate, helping developers earn additional income and supporting Fantom's network infrastructure. The program aims to reduce Fantom's burn rate and redirect the saved funds toward gas monetization. Several projects have already benefited from the program shortly after its implementation.

Trezor Hardware Wallet Sales Surge Despite Phishing Warnings

Sales of Trezor hardware wallets increased by 900% week-over-week, despite warnings of fake phishing websites being promoted on social media. This comes after rival Ledger proposed a feature that would allow users to export their private keys to the company, causing concerns over the security of users' crypto assets. However, Trezor has had its own security issues in the past. Despite this, hardware wallets remain the most secure option for storing cryptocurrency.

Top Altcoin Gainers and Losers

Gainers:

NEO NEO (+19.52%)

IOTA MIOTA (+15.79%)

Kava KAVA (+10.47%)

Losers:

eCash XEC (-11.11%)

Pepe PEPE (-9.36%)

GMX GMX (-7.69%)

NFT Market Map

Reddit's Collectible Avatars, launched in July 2022 on Polygon, have seen a surge in uptake, with over 90,000 holders needed to hit the 10 million milestone. The majority of holders only have one avatar, and the market capitalization has risen to $38.4 million. However, issues with bots have been raised, and Polygon co-founder Sandeep Nailwal has suggested launching a secondary marketplace and artist Launchpad. Reddit has also announced support for Ubisoft's Rabbids NFT collection.