Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | August 26 - September 1, 2023

Table of Contents

Crypto Market Overview

• Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments

Market Movers and Shakers

• Grayscale's Legal Win Shakes Up Bitcoin Market
• Chainlink and SWIFT's Banking Breakthrough
• Binance and EOS Thrive in Japan's Crypto Landscape
• The Ethereum Market Reacts to Big Investments

Regulatory and Legal Developments

• SEC Delays Decision on Bitcoin ETFs
• Ronaldinho Denies Involvement in Crypto Scam

Crypto Exchanges and Platforms

• Binance's Struggle with New Stablecoin FDUSD
• StarkWare Unveils On-Chain Data Verification Tech
• Polygon Rolls Out Development Kit for Layer 2 Chains
• Friend.tech Faces Backlash Over User Policy

NFTs and Gaming

• SEC Targets Impact Theory in NFT Securities Case
• OpenSea's Shaky NFT Volume and User Engagement
• Yuga Labs Unveils Legends of the Mara Game
• Art NFTs Shine in Nansen's Market Analysis
• Lufthansa Expands NFT Rewards with Uptrip

Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments

Bitcoin:

• Weekly change: -1.29%
• BTC fluctuated between $25,800 and $26,100 from last Friday to Tuesday afternoon (UTC).
• On Tuesday at 2pm, BTC surged to $27,500, then hit a 2-week high of $27,981 after Grayscale's legal win.
• Trading volume spiked to a 2-week high following Grayscale's court victory and a drop in US bond yields.
• Whales purchased $388M in Bitcoin before the Grayscale-SEC news broke.
• BTC corrected to $27,500 and slid to $27,000 due to disappointing US GDP figures.
• BTC dipped to $25,900 but recovered to $26,100 after U.S. Core PCE data met expectations and lower-than-expected Initial Jobless Claims.
• It plummeted to $25,700 following SEC's rejection of 7 ETF applications.
• Despite Grayscale's win, Bitcoin couldn't surpass last summer's highs; analysts caution it could drop to $20,000 if it retraces below the $25,000 resistance level.

Ethereum:

• Weekly change: -1.56%
• ETH mirrored BTC's trading behavior.
• It peaked at $1,741 before sliding to a weekly low of $1,630.
• ETH transaction fees hit an 8-month low of $2.8M on Monday.
• Fenix International's $20M ETH investment is now valued at $8.5M.
• Whales and sharks extended their 4-month selling streak.
• 1inch Investment Fund bought $10M of ETH at $1,655, defying bearish sentiment.
• Fidelity estimated ETH's value at $2,090 based on network fees.
• A crypto whale snapped up 10,000 ETH at $1,714 post-Grayscale's legal win.
• Robinhood holds the 5th largest Ethereum wallet, valued at $2.54B, as per Arkham.
• ETH staking contracts hit record highs with over 28.1M tokens locked.
• Staking services cap validators at 22% of the total.

Altcoins:

• Balancer suffered $900,000 breach despite warnings; TVL fell $164M.
• LimeWire used Polygon for AI Studio, LMWR rose 18%.
• Aerodrome attracted $150M to Base blockchain on first day; PancakeSwap expanded to Base.
• Aptos to unlock 24.8M APT tokens on November 12, 2023. 
• DWF Labs invested in FET, becoming the 21st largest whale.
• Cryptocurrency funds saw highest outflows since March.  
• ApeCoin & Axie Infinity to unlock 11% of market cap on September 16 and October 20, respectively.
• Bitcoin Cash jumped 15% due to its increased exposure after the ETF news, but then retraced.
• Cosmos voted on liquid staking plan for DeFi.
• DYDX unlocked 6.52M tokens worth $14M for community treasury, rewards on August 29. 
• Base to receive 118M OP tokens over six years in revenue and governance agreement.
• 16 Bitcoin mining companies had $4.47 billion in losses in a year.
• 1inch Fund acquired $10M of Ethereum.
• DOGE jumped as Elon Musk's X got closer to crypto payments.
• Robinhood added 200+ Ethereum and Polygon tokens to in-app swaps on Robinhood Wallet.
• MakerDAO’s MKR jumped 10% as platform returned to profits.
• Nexo launched crypto Mastercard for EEA citizens.
• Ripple unlocked 1 billion tokens worth $500 million. 
• Shibarium crossed 600K wallets as SHIB whale moved $38M worth of tokens.
• Lira-backed TRYB Token became world's second-largest non-dollar-pegged stablecoin.
• Theta and Google Cloud unveiled project at Google conference.
• Mercado Libre, Circle brought USDC to Chile; USDC to expand to Base & Optimism.
• Worldcoin hit new sign-up record despite huge decline in price. 
• Tokenized U.S. Treasuries arrived to XDC Network as digital bond market grows.
• Wintermute failed to ask Yearn Finance for YFI token loan.

Grayscale's Legal Win Shakes Up Bitcoin Market

The U.S. District of Columbia Circuit has granted Grayscale's petition to review their Bitcoin Trust, potentially allowing it to become a Bitcoin ETF. This decision follows Grayscale's lawsuit against the SEC, which criticized the SEC's inconsistent regulatory approach.

The court's ruling sent ripples through the crypto market, causing a 5% uptick in Bitcoin's price—a move that's sure to catch eyes on cryptocurrency charts. Grayscale's legal victory has reduced the discount on their Bitcoin Trust from -25% to -17% and has been seen as a milestone in the industry.

However, the SEC still has the power to appeal the court's decision. 

Chainlink and SWIFT's Banking Breakthrough

Chainlink and SWIFT have successfully tested blockchain interoperability with major banks, including Citi, BNP Paribas, and BNY Mellon. This collaboration, built on SWIFT's Cross-Chain Interoperability Protocol (CCIP), aims to enable seamless transfer of tokenized assets between the Ethereum testnet and other blockchains.

Tokenization, the conversion of traditional financial assets into blockchain tokens, is gaining traction in the industry. CCIP, already supported by popular DeFi platforms, could play a significant role in crypto price movements.

The vision is to create a multichain ecosystem where multiple blockchains coexist and interact, ultimately advancing the adoption of tokenization by banks and financial institutions. 

Binance and EOS Thrive in Japan's Crypto Landscape

With an eye on broadening its portfolio from 34 to a whopping 100, Binance Japan is teaming up with key Japanese exchanges and market makers, a move likely to shake up crypto coin prices. The focus is on company registration to become an intermediary in transactions involving fiat-backed stablecoins.

Binance Japan also aims to support a native Japanese crypto token. Meanwhile, EOS Network Foundation achieves regulatory approval in Japan, enabling trading of EOS tokens against the Japanese yen on regulated exchanges. This milestone signifies the significance of the Asian market for EOS's progression in gaming and tokenization. 

The Ethereum Market Reacts to Big Investments

The 1inch Investment Fund made significant purchases of Ethereum, totaling over $10 million, which impacted the Ethereum market cap. Fenix International, the company behind OnlyFans, also invested $20 million in Ethereum, contributing to its surge in popularity and revenue.

Ethereum's daily transaction fees experienced a dramatic drop, coinciding with the rise of Layer 2 scaling solutions like Friend.tech. Ethereum co-founder Vitalik Buterin made a notable transfer of 3,000 ETH, and Ethereum's price has been volatile, experiencing an 11% drop in the past month.

Despite the price fluctuations, Ethereum's staked supply and active addresses continue to increase. 

SEC Delays Decision on Bitcoin ETFs

The United States Securities and Exchange Commission (SEC) has delayed the decision on seven applications for spot Bitcoin exchange-traded funds (ETFs). Crypto influencers have shared their opinions on the delay, with some expecting it while others criticize the SEC for the slow process.

Scott Melker questioned who might have known about the delay in advance and sold off Bitcoin before the news. Grayscale's Chief Legal Officer also criticized the SEC for the perceived slowness in announcing the delays. 

Ronaldinho Denies Involvement in Crypto Scam

Retired soccer star Ronaldinho Gaúcho recently appeared before a Brazilian congressional hearing to deny any involvement in a $61 million crypto pyramid scheme. The scheme, called "18kRonaldinho," used his name and image without authorization.

Ronaldinho claimed to be a victim of the alleged fraud and stated that he was never partnered with the company. The hearing was part of an investigation into several companies accused of falsely promising high returns with cryptocurrency. 

Binance's Struggle with New Stablecoin FDUSD

Binance is planning to replace its BUSD stablecoin with FDUSD, but the new asset is struggling to gain on-chain adoption. BUSD, once a dominant stablecoin, has seen its market cap drop from $23 billion to $3 billion.

Binance accounts hold 95% of the circulating supply of FDUSD, indicating that it is primarily used by centralized Binance traders for liquidity. In contrast, BUSD was a vital source of liquidity for the BNB ecosystem. BNB Smart Chain currently relies heavily on Tether and other existing alternatives.

Before that, Binance had delisted five sanctioned Russian lenders from its peer-to-peer service, following scrutiny and investigations. 

StarkWare Unveils On-Chain Data Verification Tech

Herodotus and StarkWare have launched a new zero-knowledge proof technology called on-chain accumulator, which enables users to access and verify historical data from the Ethereum blockchain without relying on a third party.

This technology, using storage-proof cryptography and recursive proofs, drastically reduces the time needed to validate the Ethereum blockchain at any point in its history. It has the potential to revolutionize applications such as account recovery and insurance protocols by automating processes based on verified on-chain data.

Previously, StarkWare, the company behind the Starknet blockchain, has agreed to restore access to users' crypto after complaints flooded social media platform X. Users who did not update their Argent or Braavos wallets in time for the upgrade had their balances cleared, prompting frustration among the affected individuals.

StarkWare has since re-enabled the upgrade, but it may take some time for the funds to reappear in users' wallets. 

Polygon Rolls Out Development Kit for Layer 2 Chains

Polygon has open-sourced its Chain Development Kit (CDK) to support the creation of layer 2 (L2) protocols on Ethereum using zero-knowledge proof (ZK-proof) technology. CDK allows developers to build and deploy L2 chains that are connected to the Ethereum ecosystem, enabling fast and secure transactions.

It also provides access to liquidity across various chains, avoiding fragmentation. CDK supports customization for different appchains, execution environments, data availability solutions, and more. The technology aims to enhance Ethereum scalability and facilitate cross-chain communication.

ZK-proofs are seen as a vital element in improving bridges and securing chains without relying on social-economic components found in fraud proofs. 

Friend.tech Faces Backlash Over User Policy

Friend.tech, a decentralized social media app, faced backlash for threatening to punish users who use copycat versions of its platform. The company stated that users who switch to forks or copies will forfeit their existing points.

However, after receiving intense criticism, the founder of friend.tech issued an apology and retracted the decision. This controversy occurred less than three weeks after the app's public launch, and the platform has experienced a decline in key metrics such as activity and transaction volume.

Friend.tech has experienced a 95% drop in transactional activity, despite becoming the largest crypto platform on Coinbase in terms of revenue. However, the number of returning users has remained relatively steady.

Top Weekly Altcoin Gainers and Losers

Gainers:

Toncoin TON (+34.97%)

Rollbit Coin RLB (+16.20%)

IOTA MIOTA (+11.68%)

Maker MKR (+10.48%)

XDC Network XDC (+7.06%)

Losers:

KuCoin Token KCS (-18.65%)

Hedera Hashgraph HBAR (-15.46%)

Pepe PEPE (-14.70%)

Optimism OP (-14.64%)

Kaspa KAS (-12.67%)

NFT Market Map

SEC Targets Impact Theory in NFT Securities Case

The US Securities and Exchange Commission (SEC) has pursued charges against Impact Theory, an NFT project, for allegedly offering unregistered securities. Impact Theory agreed to pay $6.1 million and entered into a cease-and-desist order.

This case raises questions about whether NFTs could be considered securities, potentially impacting the broader NFT market. The SEC also targeted royalties in the sector, ordering Impact Theory to eliminate any future royalty payments. NFT transactions have declined significantly this year, and industry participants are calling for greater regulatory clarity.

The outcome of this case may lead to positive changes and increased accountability in the NFT ecosystem. 

OpenSea's Shaky NFT Volume and User Engagement

In August 2023, OpenSea, an NFT marketplace, experienced a significant drop in its monthly trading volume on Ethereum, reaching a two-year low of 60,200 ETH, which was similar to levels recorded in June 2021.

However, despite the overall decline, several top collections such as DeGods, Bored Ape Yacht Club (BAYC), and Mutant Ape Yacht Club (MAYC) saw significant increases in volume and sales. OpenSea also recorded its lowest monthly user engagement in the past year, with just 125,000 active users.

These developments have come alongside policy changes and increased competition in the Ethereum-based NFT marketplace. 

Yuga Labs Unveils Legends of the Mara Game

Yuga Labs, the creator of Bored Ape Yacht Club, is launching the open beta test for its game experience called Legends of the Mara (LotM) in September. LotM is a collection-based 2D strategy game that is part of the broader Otherside metaverse in development at Yuga Labs.

Players will be able to evolve their Mara into a more powerful Kodamara, harvest sediment, and protect their Otherdeed NFT lands. All Otherdeed NFT land holders will be able to claim a Vessel, which can evolve into a Mara character and further into a Kodamara.

The game will feature three main types of Maras and their evolution will be influenced by seasonal catalysts and the traits of the land they inhabit. Yuga Labs has also announced that the LotM experience will evolve further in the coming months with additional rewards for Otherdeed NFT holders. 

Art NFTs Shine in Nansen's Market Analysis

Nansen, a blockchain data analytics firm, highlighted the strong performance of art NFTs since January 2022. Art NFTs outperformed other NFT sectors, including Blue Chips and Metaverse NFTs. However, they have experienced market turbulence and a decline against the dollar.

GameFi and Play-to-earn NFTs saw a significant setback, with a 91% decline in value. Metaverse NFTs showed a slight improvement, while social NFTs performed better than the general market.

Blue Chip NFTs had a solid performance, and the Art-20 index NFTs led the pack with a higher value compared to the initial investment. 

Lufthansa Expands NFT Rewards with Uptrip

Lufthansa has partnered with Uptrip to expand its NFT trading card program, allowing passengers to receive Polygon-based NFTs by scanning their boarding passes in the Uptrip app. These NFTs can be collected to unlock benefits such as airport lounge access, flight upgrades, status, and award miles.

The program has gained significant interest, with 20,000 registered users and over 200,000 NFTs issued. Uptrip also plans to launch its own NFT marketplace in the near future. This initiative reflects the growing trend of integrating NFTs into ticketing and rewards programs. 

This article has been refined and enhanced by ChatGPT.