Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 13, 2023

Crypto Market Update

Written by Van

Table of Contents

Market and Regulatory Updates

• Nasdaq Files for Ethereum ETF with SEC
• Arbitrum Network's Resilience Despite Whale Losses
• Glassnode Reveals Bitcoin Holder Profitability Stats
• Oil Prices and Inflation's Impact on Crypto

Crypto Exchanges and Platforms

• Telegram's TON Space Wallet Launch
• Huobi Global Rebrands to HTX
• Binance Unveils opBNB Layer-2 Platform
• CoinEx Faces Security Breach

Banking and Financial Developments

• DCG's Recovery Plan for Genesis Global Creditors
• FTX Gets Court Approval for Asset Management

Token and Asset Performance

• Curve DAO Token Price Takes a Hit
• Ethereum Addresses in Profit Decline
• Stellar's New Website Fails to Impress

Country-Specific Developments

• Astar Network Partners with Polygon Labs
• US Lags in Hosting Crypto ETPs

Technology and Adoption

• Cosmos Rolls Out Gaia v12 Upgrade
• Sony's Blockchain Venture with Startale Labs

Regulatory Actions and Legal Matters

• SEC Charges Stoner Cats NFT Project

Luxury and Lifestyle

• Panerai's NFT Digital Passport for Watches

Nasdaq Files for Ethereum ETF with SEC

The Nasdaq stock exchange has filed with the SEC to list a proposed Ethereum exchange-traded fund (ETF) from Brazilian asset manager Hashdex. Aiming to diversify its portfolio, the proposed ETF will hold both spot ether and futures contracts, thereby impacting the Ethereum market cap and reducing vulnerability to price manipulation. 

The SEC has thus far approved crypto ETFs that hold futures contracts but not those that hold spot funds. Last week, Ark Invest and 21Shares also applied for a spot ether ETF with the SEC. 

Arbitrum Network's Resilience Despite Whale Losses

Despite whales in the Arbitrum network facing losses of over $8 million, the platform maintains the highest total value locked (TVL) among Layer 2 networks at $2.3 billion. Additionally, its daily active user count remains above 100,000, indicating continued faith in the network.

Glassnode Reveals Bitcoin Holder Profitability Stats

Glassnode data shows that 83.7% of short-term holders of Bitcoin are currently holding at an unrealized loss, while only 16.3% are in profit. The decline in BTC price has caused short-term holders to be underwater, while long-term holders have seen their profitability increase. The digital asset market is experiencing a liquidity crunch, with both on-chain and off-chain volumes at historical lows. 

Stablecoin supplies are declining, while both Bitcoin and ether inflows have turned neutral or negative, adding a layer of complexity to crypto price analysis. Long-term holders hold a record high of 14.7 million BTC, while short-term holders have dwindled to their lowest level since 2011.

Oil Prices and Inflation's Impact on Crypto

Oil prices reached a 10-month high on Wednesday due to concerns about tight crude supply. The International Energy Agency cut its Q4 oil demand growth outlook by 600,000 bpd, predicting a significant market deficit. In addition, annual inflation in the US rose higher than expected to 3.7% in August. Inflation increased in August, but core inflation showed signs of cooling. 

The Federal Reserve is closely monitoring inflation and may raise interest rates in the coming months. Higher inflation could make cryptocurrency investments more expensive and dampen demand. Despite the economic turbulence, BTC and ETH remain steady, with cryptocurrency charts showing them trading at above $26,100 and $1,600, respectively.

Telegram's TON Space Wallet Launch

The TON Foundation and Telegram have launched a new crypto wallet called TON Space, aiming to onboard 30% of Telegram's user base and increase crypto adoption. The wallet is designed to connect users to The Open Network ecosystem and is expected to simplify the process of creating a wallet. 

However, TON Space will not be available in the US due to cryptocurrency regulations. Following the announcement, the native token Toncoin (TON) experienced a surge, impacting crypto coin prices by rising over 10% before retracing to post a 2.9% gain.

Huobi Global Rebrands to HTX

Cryptocurrency exchange Huobi Global has changed its name to HTX as part of a rebranding strategy. The move coincides with the exchange's 10th anniversary and signifies a commitment to the TRON ecosystem. HTX aims to expand internationally and empower its community.

Binance Unveils opBNB Layer-2 Platform

Binance's opBNB layer-2 scaling platform, based on Optimism's rollup technology, has been publicly launched on the BNB Chain blockchain ecosystem. The platform offers lower gas fees and faster transactions for decentralized applications. During testing, the platform processed over 35 million on-chain transactions and saw over 150 DApps deployed. 

The solution is EVM-compatible and interacts with Ethereum-based smart contracts and ERC-20 tokens. Other major DeFi protocols such as Uniswap and Aave have also deployed on Optimism for scaling purposes.

CoinEx Faces Security Breach

Cryptocurrency exchange CoinEx is dealing with a security breach that has raised concerns in the crypto community. The exchange's Risk Control System detected unusual activity on hot wallets and has since shared a list of suspicious wallet addresses. 

CoinEx has promised to compensate affected users and is working to review and isolate the suspicious addresses before allowing withdrawals. The incident highlights the vulnerability of hot wallets and the importance of storing strategic reserves in cold wallets.

DCG's Recovery Plan for Genesis Global Creditors

Digital Currency Group (DCG) proposes a new plan for Genesis Global's creditors, offering 70-90% recovery with a significant portion in digital currencies. Gemini Earn users could recover almost all of their claims, projected at 95-110%, without contributions from Gemini. 

Genesis' bankruptcy and withdrawal freeze affected Gemini Earn users. This is the second proposal in the case. Genesis has also filed a lawsuit against DCG and its affiliate for defaulted loans. Genesis Trading plans to eliminate its crypto spot trading service.  

FTX Gets Court Approval for Asset Management

FTX has been given permission by a US Bankruptcy Court to sell and invest its crypto assets in order to repay its creditors. The bankrupt exchange claims its crypto holdings are worth over $3.4bn. The court ruling allows FTX to sell, stake, and hedge these assets. 

The estate will be limited to selling $100 million per week of most tokens, with the potential for a higher limit on a token-by-token basis. FTX filed for bankruptcy protection in November and holds $3.4 billion in crypto assets. 

Curve DAO Token Price Takes a Hit

The price of Curve DAO tokens (CRV) fell below $0.40 after tokens bought from the project's founder, Michael Egorov, were transferred to Binance. These tokens were initially purchased in August to reduce Egorov's DeFi debt liquidation risks and were supposed to be locked for six months. 

The motivation behind the transfer is uncertain, but the tokens were eventually sent back to the original counterparty. CRV is currently trading at $0.40, down 3% in the last 24 hours. Egorov previously sold 106 million CRV tokens for $46 million in deals to mitigate potential liquidation risks.  

Ethereum Addresses in Profit Decline

Approximately 53.5% of Ethereum addresses are currently in profit, down from a high of over 70% in May and July. The decrease is attributed to Ether's price falling by 13% in the past month. The percentage of addresses in profit could increase if there are positive developments in the cryptocurrency market. However, the ongoing bearish trend could continue or worsen. 

Recent analysis from K33 Research reveals that Ether futures on the Chicago Mercantile Exchange (CME) have entered discount territory, indicating an unusual bearish outlook. This comes ahead of the expected launch of ether futures ETFs. Additionally, the market is showing signs of increased volatility, with concerns about short-term selling pressure.  

Stellar's New Website Fails to Impress

Stellar (XLM) made a highly anticipated announcement, revealing a new website for the token with the motto, "Bringing Stellar to the Real World." However, the cryptocurrency community reacted with disappointment, causing a 2.5% drop in the XLM price. Despite this, CEO Jeremy Allaire of Circle, a previous collaborator with XLM, expressed his support for the announcement.  

Astar Network Partners with Polygon Labs

Blockchain platform Astar Network is partnering with Ethereum scaling developer Polygon Labs to launch Astar zkEVM, a Layer 2 scaling solution. The collaboration aims to enhance blockchain adoption in Japan, with a focus on sectors such as entertainment and gaming. 

Astar zkEVM will utilize the Polygon Chain Development Kit (CDK) to build zero-knowledge-powered Layer 2 chains for Ethereum. This move aligns with Japan's web3 vision and the country's efforts to strengthen its position in the international web3 space. Astar Network has previously collaborated with Sony on a web3 incubation program.

US Lags in Hosting Crypto ETPs

Only four of the top 25 crypto exchange-traded products (ETPs) are currently hosted in the US, but the approval of more than two dozen offerings by the Securities and Exchange Commission could change that. The largest crypto ETPs are COINXBT and COINETH, which have $4.4bn and $2.6bn in assets respectively. 

Canada is home to six of the top 25 ETPs globally. Grayscale Investments' court win against the SEC last month could lead to spot Bitcoin ETF approvals in the next year, while more than a dozen ETFs planned for ether futures contracts are awaiting SEC approval.

Cosmos Rolls Out Gaia v12 Upgrade

Cosmos has implemented the "Gaia v12" upgrade on the Cosmos Hub, introducing a liquid staking module (LSM) that allows users to convert their staked Atom into liquid staked Atom without having to wait for the unbonding period. 

The upgrade enables over $1 billion worth of staked Atom to be used as capital across DeFi protocols in the Cosmos ecosystem. The LSM is currently limited to 25% of all staked Atom, but this cap can be adjusted in the future via a governance vote.

Sony's Blockchain Venture with Startale Labs

Sony has partnered with Startale Labs to launch a joint venture company called Sony Network Communications Labs, dedicated to developing blockchain technology. The collaboration aims to create a global infrastructure for the Web3 era. 

Startale Labs previously received a $3.5 million investment from Sony Network Communications and has developed the Astar Network, a smart contract platform. This move follows Sony Interactive Entertainment's patent filing for transferring non-fungible tokens between games and consoles.

Top Altcoin Gainers and Losers

Gainers:

Kaspa KAS (+15.54%)

Compound COMP (+7.33%)

Rollbit Coin RLB (+6.22%)

Losers:

Stellar Lumens XLM (-2.67%)

XDC Network XDC (-1.55%)

Internet Computer ICP (-1.64%)

NFT Market Map

SEC Charges Stoner Cats NFT Project

The creators of the NFT-based cartoon project Stoner Cats have been charged by the SEC for selling unregistered securities. The company has agreed to a cease-and-desist order, pay a $1 million civil penalty, destroy any remaining NFTs, and establish a "Fair Fund" to refund investors. 

The NFTs were sold as entrance tickets to the show and featured the voices of celebrities such as Mila Kunis, Ashton Kutcher, and Jane Fonda. This is the latest action taken against celebrities for selling NFTs.

Panerai's NFT Digital Passport for Watches

Italian luxury watch brand Panerai will include an NFT-based digital passport with all watches purchased from October 3. The passport, developed with Web3 solutions provider Arianee, will contain comprehensive information about the timepiece to prove its authenticity, and is transferable to future owners. 

The passport will also extend the watch's international limited warranty up to eight years and will be issued through Panerai's digital platform, Pam.Guard.

This article has been refined and enhanced by ChatGPT.