Coin360 Daily Dispatch | Crypto Market Updates & Highlights | September 23, 2023

Crypto Market Update

Written by Van

Table of Contents

Crypto Exchanges and Trading Platforms

• Coinbase Eyes FTX Europe, Pulls Back
• Arkham Unmasks Coinbase's Bitcoin Wallets
• CoinShares Makes U.S. Market Debut
• Binance's Mysterious LINK Token Movement

Crypto and Blockchain Technology

• Ether Inflates as Ethereum Activity Dips
• Dencun Upgrade for Ethereum Faces Delays
• Base Surpasses Solana in TVL

Banking and Regulatory Updates

• NYDFS Loses Lead of Virtual Currency Unit
• Valkyrie Funds Revamps Bitcoin ETF Plans

Country-Specific Developments

• Venezuela Raids Bitcoin Mining in Prison

Other Platforms and Services

• Unity Revises Controversial Fee Policies
• Krapopolis NFT Series Hits Fox Network

Coinbase Eyes FTX Europe, Pulls Back

Coinbase attempted to acquire FTX Europe twice to expand its derivatives business overseas. Coinbase dropped the deal but still eyes a future acquisition this month, according to Fortune. FTX Europe operated under a Cyprus license and offered popular derivatives products. 

Coinbase's revenue from spot trading declined, while global derivatives volumes increased. Coinbase gained regulatory approval to offer crypto futures in the US.  

Arkham Unmasks Coinbase's Bitcoin Wallets

Cryptocurrency analysis company Arkham has claimed that it has discovered the Bitcoin wallets of Coinbase, revealing that the exchange owns around 1 million BTC worth over $25 billion, making it the largest known Bitcoin holder. 

Arkham used its proprietary algorithm to identify and tag more than 36 million BTC addresses used by Coinbase, with ongoing analysis to find additional addresses. Arkham also listed the total cryptocurrency assets held by Coinbase in various wallets.

CoinShares Makes U.S. Market Debut

Crypto asset manager CoinShares is expanding into the US market with the launch of CoinShares Hedge Fund Solutions. The move is aimed at providing a range of investment products to US investors in the digital asset space. 

CoinShares wants to become a leading destination for institutions in the digital assets realm and aims to ensure that institutional clients have the tools and insights necessary for digital asset investments.

Binance's Mysterious LINK Token Movement

With 4.7 million LINK tokens, valued at $31.58 million, being moved to 81 new wallets, investors on Binance are drawing heightened scrutiny on cryptocurrency charts, prompting speculation about the motives behind the move and its implications for the LINK token. 

The large number of tokens moved and the simultaneous action is unusual and could indicate a bullish trend. However, it's important to approach these hypotheses with caution as the intentions are unknown and one event does not dictate the long-term trajectory of a cryptocurrency.

Ether Inflates as Ethereum Activity Dips

Ether (ETH) has become inflationary as activity on Ethereum declines, causing network fees to drop to a 9-month low. The adoption of layer 2 networks is partly responsible for the shift in the Ethereum market cap. As a result, the growing supply of ETH could have a significant ripple effect on crypto price trends. JPMorgan analysts and Matrixport also expressed bearish views on ETH. 

As per JPMorgan, the Shanghai upgrade for Ethereum fell short of expectations as key metrics like daily transactions, active user addresses, and total value locked in DeFi platforms decreased. The transition to proof-of-stake reduced energy consumption but didn't boost network activity. Staking increased by 50%, but concerns of centralization arose. Scalability and high transaction costs remain challenges for Ethereum.

Dencun Upgrade for Ethereum Faces Delays

Ethereum's major upgrade, Dencun, is likely to be delayed into 2024 due to the need for testing and deployment to a testnet. The Holesky testnet will be relaunched on September 28 for Dencun testing, and potential issues will be isolated to the soon-to-be-discontinued Goerli testnet. Dencun aims to improve Ethereum's scalability with the proto-danksharding feature.  

Base Surpasses Solana in TVL

Base, a layer 2 network on Coinbase, has surpassed Solana in total value locked (TVL) with $397.32 million. Base's TVL surged by 97.21% in the past month, while Solana's decreased by 9.64%. Aerodrome Finance and Friend.tech are the top projects contributing to Base's TVL. Base also hit an all-time high in daily transactions. 

Coinbase has not completely ruled out issuing a token for its Ethereum layer 2 chain, despite previous claims. Coinbase's Chief Legal Officer, Paul Grewal, stated that a token could be viable in the future. A potential Base token may be used for governance purposes.

NYDFS Loses Lead of Virtual Currency Unit

Peter Marton, who led the New York State Department of Financial Services' virtual currency unit, is leaving his position. Marton had been with the department since December 2021 and was praised for his role in transforming the Virtual Currency Unit. 

The department is now seeking a replacement for Marton's position. NYDFS has been active in regulating cryptocurrencies and recently proposed new guidance for crypto firms looking to list coins in the state.

Valkyrie Funds Revamps Bitcoin ETF Plans

Asset management firm Valkyrie Funds has announced a revised launch date for its leveraged Bitcoin Futures ETF, which will actively manage exposure to Bitcoin. The firm aims to launch the product on October 20th, offering a dynamic investment option for cryptocurrency enthusiasts. 

This comes as Valkyrie Funds joins other firms in pursuing approval for a spot Bitcoin ETF. Additionally, Bitwise Invest has withdrawn its application to convert its Bitcoin futures fund into a fund including both Bitcoin and Ethereum futures, focusing solely on Bitcoin exposure instead.

Venezuela Raids Bitcoin Mining in Prison

During a prison raid in Venezuela, authorities seized Bitcoin mining machines along with weapons from the country's most powerful organized crime group. The operation targeted the Tren de Aragua, involved in drug trafficking and extortion. 

Bitcoin miners earned $184 million in transaction fees from April to June, making the endeavor lucrative. This follows a recent discovery of a Bitcoin mining operation in a drug trafficking ring in Chile.

Unity Revises Controversial Fee Policies

Game engine maker Unity has backtracked on its recently announced Unity Runtime Fee policies following a backlash from game developers. Unity has modified the fees so that developers using the Unity Personal version will not have to pay at all, while Unity Pro and Unity Enterprise developers will only accrue fees if they install the 2024 long term support version. 

Developers will be able to choose between a revenue share or install-based fee calculation, and Unity will always bill the lesser amount. Rival game engine Godot applauded the changes but argued that using Unity still poses a "massive risk" for developers.

Top Altcoin Gainers and Losers

Gainers:

WEMIX WEMIX (+18.98%)

Theta Network THETA (+7.98%)

Radix XRD (+5.69%)

Losers:

Immutable X IMX (-6.62%)

Render Token RNDR (-3.00%)

XDC Network XDC (-2.63%)

NFT Market Map

Krapopolis NFT Series Hits Fox Network

Krapopolis, an NFT-linked animated series created by Dan Harmon, will premiere on Fox on Sept. 24. The show is set in ancient Greece and follows a dysfunctional family of humans, gods, and monsters. Krapopolis has 10,420 NFTs called "Krap Chickens" offering unique benefits and experiences to holders.  

This article has been refined and enhanced by ChatGPT.