Coin360 Daily Dispatch | Crypto Market Updates & Highlights | November 6, 2023
Crypto Market Update
Table of Contents
Crypto Market Momentum
- Bitcoin and Ethereum See Inflows
- Surge in Crypto Fund Investments
- Ethereum Whale Activity Signals Bullish Trend
- DZ Bank Embraces Blockchain Technology
Global Regulatory Shifts and Financial Moves
- UK Authorities Plan Stablecoin Regulation
- FTX Seeks Asset Sale Amid Payout Strategy
- TON Sets New Transaction Speed Record
- Ripple's Legal Strides Boost XRP
Security and Platform Updates
- Microsoft Store Crypto Hack Incident
- ShuttleFlow Protocol Transitions Ownership
- Aave Reacts to Security Flaw
- Arbitrum DAO Introduces Token Staking
Tech and Entertainment Influence Crypto
- Elon Musk's AI Startup Unveils Grok
- Monero Wallet Compromised
- Legal Dispute in Crypto Space
Cultural and Social Impact on Crypto
- Bored Ape Yacht Club Event Sparks Safety Debate
- The Simpsons Satirize NFTs
- NFT Sales and Marketplaces Flourish
- Yuga Labs and Magic Eden Collaborate on NFT Marketplace
Bitcoin and Ethereum See Inflows
Bitcoin and Ethereum's $10.97 billion inflow signals a bullish market, as investors anticipate a Spot Bitcoin ETF approval. Bitcoin's surge past a crucial level hints at potential 99% rallies, with a spike in new addresses indicating network health. Long-term holders are profiting after a rough phase.
The market saw $114 million in liquidations, half on Binance, as Bitcoin jumped to $35k, squashing short positions. Tether's USDT hit an all-time high with an 84 billion supply, marking a 22% annual increase, underscoring its stablecoin dominance.
Positive market sentiment persists after U.S. job data, suggesting milder Fed rate hikes and a boost for crypto amid softer stock volatility and liquidity conditions, setting the stage for Bitcoin's continued ascent.
Surge in Crypto Fund Investments
Crypto funds have seen a surge, with a $767 million inflow over six weeks, the most robust since the 2021 bull market. Bitcoin funds led the charge, with $229 million last week, totaling $842 million year-to-date, hinting at anticipation for a U.S. spot-based bitcoin ETF and reactions to soft macroeconomic data.
Ether funds followed, with their largest gain since August 2022, at $17.5 million. Other notable inflows include Solana at $11 million and Chainlink at $2 million, signaling a growing investor appetite amid a recovering market.
Ethereum Whale Activity Signals Bullish Trend
An Ethereum whale has been on the move, pulling out a hefty 17,316 ETH (nearly $32 million) from Binance. This move aligns with a broader trend of ETH leaving exchanges, hinting at a bullish sentiment among holders. The whale's actions followed a deposit of 31.8 million USDT into Binance, swiftly followed by two large ETH withdrawals.
Meanwhile, Ethereum's price hovers around $1,900, which suggests a slight profit from the whale's entry point. This activity is part of a larger pattern of exchange supply reduction, with the supply dipping from over 10.7 million to approximately 10.6 million ETH since late October. Additionally, another whale was observed swapping ETH for a Dogecoin competitor, Pepe, after a series of trades with mixed results.
DZ Bank Embraces Blockchain Technology
DZ Bank, Germany's third-largest bank, has launched a blockchain-based platform for processing and custody of crypto assets for institutional clients. The bank believes that distributed ledger technology (DLT) will play a significant role in capital market business in the coming years.
DZ Bank has been granted licenses for custody and processing under the Electronic Securities Act. The bank has also applied for a crypto custody license from the Federal Financial Supervisory Authority to enable its clients to invest in cryptocurrencies. Ripple Labs subsidiary Metaco is providing infrastructural support for the platform.
UK Authorities Plan Stablecoin Regulation
The Bank of England and FCA are drafting regulations for sterling-denominated stablecoins, targeting a 2025 implementation. They seek feedback on proposals emphasizing full backing by central bank deposits and may directly regulate significant custodial wallet providers, with a phased crypto regulation approach starting in 2024.
FTX Seeks Asset Sale Amid Payout Strategy
FTX is pushing to sell trust assets from Grayscale and Bitwise, worth $744 million, to manage creditor payouts. These include one Bitwise trust at $53 million and five Grayscale trusts at $691 million. Meanwhile, SOL's value dipped by 5% as FTX's estate moved tokens to Binance and Kraken.
TON Sets New Transaction Speed Record
TON blockchain achieved a record-breaking 104,715 transactions per second during a test, outpacing all blockchains and major payment networks. Leveraging horizontal sharding, it enhances speed, security, and decentralization. TON integrates a Web3 ecosystem into Telegram, promoting user-controlled digital identity and assets, with the TON token's value ascending.
Ripple's Legal Strides Boost XRP
XRP's price once soared by over 11%, reaching $0.69 during the day, as Ripple gained operational clearances in Georgia and Dubai and engaged in CBDC projects. Legal expert Jeremy Hogan suggests Ripple could cut its $770 million SEC fine to under $100 million, focusing on net profit disgorgement and challenging the SEC's jurisdictional reach. In the past 24 hours, short positions on XRP worth $3.5 million were liquidated across the market, constituting 3% of total liquidations on the crypto market.
Microsoft Store Crypto Hack Incident
Hackers stole 16.8 bitcoin ($770,000) after a fake Ledger Live app was posted on the Microsoft app store. The hacker received a total of 38 inbound BTC transactions before splitting them across numerous wallets. It is unclear how the fake app was approved by the Microsoft store. Cryptocurrency hacks have been on the rise during the recent increase in asset prices. Microsoft has not yet commented on the incident.
ShuttleFlow Protocol Transitions Ownership
ShuttleFlow, a multichain protocol by Conflux Foundation, is ceasing operations after two years. Ownership and development will transition to Web3 studio Zero Gravity under a new brand. User funds are safe and will be migrated, requiring no action from those who've already claimed bridged assets.
The ShuttleFlow dApp will partly function until January 2024 for asset claims before shutting down completely. Conflux, known for its hybrid consensus mechanism and as China's only regulatory-compliant public blockchain, had previously partnered with China Telecom to create a blockchain SIM card.
Aave Reacts to Security Flaw
Decentralized finance (DeFi) platform Aave has disabled stable borrow rates on all networks after a reported attack vector by a white hat, temporarily suspending certain market operations to safeguard user funds. Aave implemented measures to protect its markets, freezing affected markets and temporarily disrupting trading activities. AAVE, the platform's native token, has shown resilience and may experience a resurgence in momentum.
Arbitrum DAO Introduces Token Staking
The Arbitrum DAO's approval for token staking has sparked a notable uptick in ARB price, with an increase to $1.13, marking a 3.14% rise within a day. ARB holders now have the opportunity to stake their tokens and receive a yield of 7.84%-78.43%, calculated annually and based on the treasury-funded allocation of 1% (100 million tokens) of the ARB supply.
This decision, although contested by a third of the DAO members, introduces varied staking tiers, intended to foster community engagement and offering a fresh avenue for ARB holders to earn rewards. The DAO is set to deliberate further on the specifics of staking implementation, including technology partnerships and audits, followed by a community review period.
Elon Musk's AI Startup Unveils Grok
Elon Musk's AI startup xAI has launched Grok, a chatbot with a "rebellious streak," designed to answer bold questions and suggest inquiries. Despite Musk's past AI concerns, Grok aims to offer real-time knowledge and humor, styled after "The Hitchhiker’s Guide to the Galaxy." Grok-1, its engine, claims to outperform ChatGPT 3.5 in math and coding benchmarks.
It's in early beta, available to select U.S. users, with broader access planned at $16 on X Premium Plus. Meanwhile, Grok tokens, inspired by Musk's chatbot, have emerged on blockchains, signaling a crypto market response to the AI chatbot's debut.
Monero Wallet Compromised
Monero's community wallet was hacked, losing 2,675.73 XMR (~$460,000). The breach was disclosed two months later, with no clear source identified. Speculations suggest a compromised Ubuntu server or a Windows machine might be the attack vector. Monero's core team is seeking to cover losses with the General Fund.
Legal Dispute in Crypto Space
Crypto businessman Roger Ver sued Matrixport subsidiary Smart Vega Holding Limited in Seychelles over frozen cryptocurrency funds. Ver claims that he was unable to withdraw $8 million in June 2022 due to the actions of Jihan Wu, co-founder of Bitmain and Matrixport. Matrixport has provided a different account of events, stating that Ver breached contractual obligations and disputed penalties.
Top Altcoin Gainers and Losers
Trust Wallet Token TWT (+21.38%)
WEMIX WEMIX (+14.00%)
The Graph GRT (+10.95%)
MultiversX EGLD (-7.67%)
NEAR Protocol NEAR (-4.64%)
Immutable X IMX (-3.48%)
NFT Market Map
Bored Ape Yacht Club Event Sparks Safety Debate
At ApeFest, a Bored Ape Yacht Club event, attendees reported eye injuries, with theories suggesting UV light exposure as the cause. Yuga Labs acknowledged less than 1% of the 2,250 attendees were affected, actively reaching out to the 15 known cases. Critics cited poor health management, with some attendees facing significant medical bills. The incident has sparked discussions about event safety and the responsibilities of organizers.
The Simpsons Satirize NFTs
The Simpsons' latest "Treehouse of Horror" episode humorously critiqued NFTs and crypto. Titled "Wild Barts Can’t Be Token," it featured Bart Simpson becoming an NFT, prompting Marge's blockchain adventure to rescue him.
Iconic NFTs like Bored Ape Yacht Club were referenced, with the episode affecting their floor prices slightly: BAYC up by 1.59% and Mutant Ape Yacht Club by 1.83%. This follows a 2020 episode where the show explained blockchain and cryptocurrencies.
NFT Sales and Marketplaces Flourish
In November, NFT sales volumes soared to 68,342 ETH, crossing $129 million, according to Nansen. Blur led the NFT marketplace with over $305 million in 30-day trades, while OpenSea followed with $100 million. Bored Ape Yacht Club (BAYC) topped the collection charts with approximately $66.7 million, and there was a 12% uptick in NFT traders recently, with nearly six million wallets holding NFTs.
Yuga Labs and Magic Eden Collaborate on NFT Marketplace
Yuga Labs and Magic Eden are partnering to launch a new NFT marketplace that will prioritize creator royalties. The marketplace is expected to go live by the end of 2023 and will support Ethereum's blockchain.
This move comes after OpenSea made creator royalty fees optional, sparking controversy in the NFT community. The announcement has had a positive impact on the NFT floor price of Bored Ape Yacht Club, with a 2% increase.
This article has been refined and enhanced by ChatGPT.