Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | July 29 - August 4, 2023
Crypto Weekly Market Update
Written by Van
Table of Contents:
Crypto Market Overview
- Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments
Regulatory and Legal Updates
- Curve Finance Exploit Raises DeFi Security Concerns
- SEC Files Lawsuit Against Crypto Wizard Richard "Heart" Schueler
Market Performance and Trends
- BALD Meme Coin and LeetSwap Exploit Highlight Market Risks
- Litecoin's Third Mining-Reward Halving and Market Response
- Revolut to Halt Cryptocurrency Services in the US Amid Regulatory Challenges
- Ethereum Futures ETFs Awaiting SEC Approval
- MicroStrategy Aims to Amplify Bitcoin Holdings with Stock Sale
- Binance Receives MVP License in Dubai and Expands to Japan
- Tether's Q2 2023 Report Reveals Profit Surge and Asset Exposure
- Coinbase's Layer 2 Network, Base, Set for Mainnet Launch
NFT Market Updates
- Web3 Developers Remain Bullish Despite Decline in NFT Trading
- Ethereum Gas Usage in NFT Marketplaces Sees a Significant Dip
- ApeCoin Price Hits an All-Time Low Amid Market Decline
- Beeple's First PFP NFT Acquisition from CryptoPunks Collection
- Kraken Partners with Williams Racing for NFT Display at US Grand Prix
Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments
- Weekly change: +0.24%, Monthly change: -4.02%
- BTC's price stayed consistent with strong PCE data.
- The Bitcoin price was stable at $29,300 after the Bank of Japan's firm policy.
- Kaiko revealed a 2-year low in Bitcoin and Ethereum volatility on Saturday.
- Bitcoin reached $29,400 on Sunday, then slightly rose above that on Monday.
- BTC fell to a six-week low under $29,000 on Tuesday.
- The decline followed disappointing Q2 earnings and further impact from the Curve hack.
- Bitcoin hit weekly high at $29,900 on Wednesday after MicroStrategy's announcement to buy more BTC.
- Bitcoin's funding rates were the highest since February 2023.
- BTC later retraced but maintained $29,000.
- Addresses in loss reached a one-month high at about 14.043 million amid mixed market signals.
- Bitcoin and Ether remained stable as the U.S. added 187,000 jobs in July.
- Weekly change: -0.66%, Monthly change: -3.99%
- Ethereum celebrated its eighth birthday, now the second-largest blockchain with a $227 billion market cap.
- EIP-6968 suggests revenue sharing for dApps on Ethereum Layer 2.
- Ethereum reached weekly highs above $1880, then fell to a low of $1822 on Monday due to the Curve Finance exploit.
- Despite climbing to $1870 on Wednesday amid broader market positivity, ETH failed to reach its weekly peak.
- Six asset managers filed to launch Ethereum ETFs on Wednesday, possibly aiding the rise.
- The surge was brief, with ETH settling back to the $1830 - $1850 range.
- Ethereum's price is predicted to soar as Bitcoin loses momentum, according to Glassnode.
- The Ether LSD market is expected to add $24 billion in 2 years; staked ETH could reach 31%-45% of the total supply by Q2 2025, says HashKey.
- PancakeSwap: PancakeSwap to share trading fees with CAKE stakers
- Celo: Google Cloud validating on Celo network
- Dogecoin: Dogecoin price up amid Twitter trading feature reports
- FTX: FTX creditors criticize reorganization plan; Report: Social bots manipulated prices on FTX
- Hedera Hashgraph: Hyundai and Kia use Hedera for emissions tracking
- IoTeX: IoTeX launches W3bstream Devnet
- Kaspa: Kaspa launches exchange listing campaign, KAS price surges
- Kannagi: DeFi project Kannagi rugpulled, $2M lost
- Maker: MKR rallies 23%, metrics suggest top reached
- SUI: Sui enables liquid staking with upgrade
- Polygon: Matter Labs CEO denies copying Polygon code
- Shiba Inu: SHIB surges 10% amid identity service and Binance integration as as a collateral asset
- SushiSwap: BALD signals SushiSwap as next target, SUSHI price up
- The Sandbox: Sandbox implements KYC for staking
- Justin Sun said Huobi losses last 4 quarters
- USD Coin: USDC market cap at 2-year low
- Voyager: Voyager allegedly hacked during bankruptcy payments
- Woo Network: Suspicious wallet dumps $1.8M WOO tokens, price drops 8%
- Worldcoin: Worldcoin suspended in Kenya over privacy concerns
- Ripple: XRP price drops 25% despite SEC victory
- Arbitrum: Arbitrum DAO proposes $5M in grants
- ENS: Whale reclaims $74M ETH from ENS auction
- Trader Joe: Trader Joe debuts on Ethereum, JOE up 3%
- Gala Games: Gala titles Town Star and Spider Tanks launching on Elixir Games Launcher
- Australia ASIC sues eToro over lax crypto derivatives oversight, consumer losses
- Hong Kong introduces retail crypto trading with HashKey and OSL
- Bearish week affected DeFi blue-chip tokens following the hack of Curve Finance
- Others: Whale activity detected in IMX, LDO, COMP, APE, AAVE, MDT. Volume spikes seen in BTG, STEEM, ANKR, SNT, TRX on Upbit
Curve Finance Exploit Raises DeFi Security Concerns
The recent exploit of Curve Finance, a decentralized finance (DeFi) protocol, has caused concern in the DeFi landscape. The exploit involved the manipulation of a stablecoin pool resulting in a loss of approximately $47 million.
This highlights the need for increased security measures in DeFi protocols as they continue to gain popularity. It also raises questions about the effectiveness of audits and the responsibility of developers to ensure the safety of user funds.
SEC Files Lawsuit Against Crypto Wizard Richard "Heart" Schueler
The Securities and Exchange Commission (SEC) has filed a lawsuit against crypto wizard Richard "Heart" Schueler, alleging his involvement in a $1 billion unregistered security offering. The lawsuit accuses Heart of misappropriating investor funds for personal luxuries and artificially inflating the price of his token, HEX.
Additionally, Heart is accused of promoting HEX as an investment opportunity without registering it as such. The SEC is seeking a jury trial, a permanent ban on selling crypto securities, the recovery of funds, prejudgment interest, and a civil penalty.
These allegations have led to a significant decline in HEX's value.
BALD Meme Coin and LeetSwap Exploit Highlight Market Risks
The BALD phenomenon emerged as a meme coin and quickly gained market capitalization of nearly $100 million before experiencing a significant drop. Speculation arose about its connection to Alameda Research, a prominent trading firm. Simultaneously, decentralized exchange LeetSwap fell victim to an exploit, resulting in a loss of 342.5 ETH.
BALD's trading volume and value plummeted, possibly due to a massive liquidity withdrawal. Coinbase's Base blockchain saw a surge in transactions, with meme coins like BALD driving the activity. The influx of Ether into the network reached $68 million in just 48 hours, highlighting both market potential and risks.
Litecoin's Third Mining-Reward Halving and Market Response
Litecoin's blockchain has experienced its third mining-reward halving, reducing the per-block reward from 12.5 LTC to 6.25 LTC. Despite historical precursors, Litecoin's price did not skyrocket as expected immediately after the halving. Market fluctuations suggest a "buy the rumor, sell the news" scenario.
In response to the halving event, KuCoin Pool decided to cease operations from August 15, 2023, until reassessment. The seemingly indifferent LTC response to past halvings may be intricately tied to Bitcoin's own battles with brutal bear markets, further strengthening the Bitcoin-Litecoin dynamics.
Ethereum Futures ETFs Awaiting SEC Approval
A significant trend in the crypto world is the submission of 12 applications for Ethereum futures exchange-traded funds (ETFs) to the U.S. Securities and Exchange Commission (SEC). Major players in the investment industry, including ProShares, Direxion, VanEck, Grayscale, Roundhill, and Bitwise, have filed for regulatory approval.
The filings include various types of ETFs, with ProShares showing particular interest by submitting four Ethereum ETF applications. Despite the interest, analysts express skepticism about the approval chances. The outcome could significantly impact the future landscape of crypto investments and traditional finance integration.
At the time of writing, the price of Ethereum (ETH) was $1,835.
Revolut to Halt Cryptocurrency Services in the US Amid Regulatory Challenges
Digital neobank Revolut will suspend its cryptocurrency services in the US from September 2, with US customers unable to buy, sell or hold crypto from October 3. The move comes in response to the complex regulatory environment surrounding the industry in the US.
The suspension only applies to Revolut users in the US, with customers in other markets unaffected. The decision follows similar moves by other leading crypto firms, including Binance and Coinbase, which are facing regulatory challenges in the US.
MicroStrategy Aims to Amplify Bitcoin Holdings with Stock Sale
MicroStrategy, a software company based in the US, intends to raise up to $750m by selling stocks, a portion of which will be utilized to purchase additional bitcoin. The company presently holds 152,333 BTC, equivalent to approximately 0.0078% of the entire cryptocurrency's supply as of June 27, 2023.
If it decides to invest the entire $750m in bitcoin at current market rates, it could potentially acquire around 25,000 coins.
Binance Receives MVP License in Dubai and Expands to Japan
Dubai has granted an MVP license to Binance, making it the first cryptocurrency exchange to receive such a license. Binance will provide services to institutional and qualified retail investors, including virtual asset exchange and broker-dealer services. Once it complies with VARA regulations, it will receive the Full Market Product license.
Binance also launched Binance Japan, offering 34 tokens, including BNB, Bitcoin, Ether, Ada, and Dogecoin. The move aims to boost Japan's digital asset market amidst regulatory scrutiny faced by Binance globally.
Tether's Q2 2023 Report Reveals Profit Surge and Asset Exposure
Tether's Q2 report for 2023 reveals an increase in excess reserves to $3.3 billion. The company also discloses exposure to US Treasury bills worth $72.5 billion, with its total assets estimated at $86.4 billion.
Tether's operational profits for the quarter reach $1 billion, and 85% of its reserves are held in liquid investments. The report indicates a 30% increase in profits compared to Q1 2023, attributed to a surge in cryptocurrency markets, particularly Bitcoin.
The company plans a $115 million share buyback to strengthen its group.
Coinbase's Layer 2 Network, Base, Set for Mainnet Launch
On August 9, Coinbase's Layer 2 network, Base, will launch its mainnet and will feature more than 50 popular brands, such as Coca-Cola and Atari. Coinbase will provide support for Base throughout its products, and the network will mark the occasion with daily NFT drops.
Additionally, Coinbase plans to strengthen Base by introducing an Ethereum bridge. Although Base briefly ranked as the third-most active Layer 2 network, it experienced a decline due to rug-pulls and exploits.
However, Base will now launch OnChain Summer, which will offer grants and prizes to encourage development on the network, while users can earn up to $50 in cryptocurrency through quests and activities.
Top Weekly Altcoin Gainers and Losers
XDC Network XDC (+35.56%)
Bone ShibaSwap BONE (+28.22%)
FLEX FLEX (+26.87%)
Kaspa KAS (+21.77%)
Optimism OP (+16.07%)
Compound COMP (-17.22%)
Curve DAO Token CRV (-14.62%)
Synthetix SNX (-12.32%)
Stellar Lumens XLM (-11.65%)
Pepe PEPE (-9.80%)
NFT Market Map
Web3 Developers Remain Bullish Despite Decline in NFT Trading
NFT trading volume dropped by 41% in Q2 2023, but developers are still bullish on Web3, with nearly six million smart contracts deployed across Ethereum Virtual Machine-compatible networks. This represents a 302% increase since Q1 and a 1,107% increase since Q2 2022. While not all new smart contracts will be used to build NFTs, continued development is positive for Web3's growth and steps toward mass adoption.
The report highlighted several standout Web3 use cases last quarter, including Nike's Our Force 1 collection drop, the growth of decentralized social media platform Lens Protocol and gaming marketplace Google Play's support for games that have integrated NFTs.
Ethereum Gas Usage in NFT Marketplaces Sees a Significant Dip
Gas usage by NFT marketplaces on the Ethereum network has seen a significant decline, accounting for only 3% of the total gas consumption. This suggests a shift in the NFT landscape, with users holding onto their assets rather than actively trading them.
Top NFT projects that once dominated gas consumption have also experienced a sharp decline. This decline in gas usage coincided with a surge in Ether gas prices, leading to speculation that NFTs may have been a result of excess liquidity during the pandemic.
ApeCoin Price Hits an All-Time Low Amid Market Decline
ApeCoin, the Ethereum-based token associated with Yuga Labs' Bored Ape Yacht Club NFT collection, has reached an all-time low of $1.77. The token has since rebounded to $1.84 but remains down 1% over the past day and 9% over the last week. This decline comes as the market for Bored Ape NFTs and PFPs falters more broadly. Despite the decrease, ApeCoin still holds a market capitalization rank of #65 with a total value of $675 million.
Beeple's First PFP NFT Acquisition from CryptoPunks Collection
Mike Winkelmann, aka Beeple, the artist behind the $69m NFT sale, has purchased his first profile picture NFT (PFP) from the popular CryptoPunks collection. Beeple bought CryptoPunk #4593 for $208,463, and described the project as "ridiculously innovative artwork" that had altered the way in which people perceive identity and ownership.
The PFP is one of the less common Punks in the famous collection, with a rare trait: a red nose. Beeple previously suggested that he would be buying a Punk soon, tweeting that he was "in the market for a punk" and asking for tips and opinions.
Kraken Partners with Williams Racing for NFT Display at US Grand Prix
Crypto exchange Kraken is partnering with Williams Racing to display non-fungible tokens (NFTs) on the team’s Formula One cars during the US Grand Prix in October. Six NFTs will be incorporated on the cars, with four chosen by community vote and two by Williams team drivers.
The partnership aims to educate F1 fans about cryptocurrency and promote the NFT market. Similar crypto sponsorships have been signed by Red Bull Racing and Sui blockchain with the goal of bringing Web3 experiences to fans.
This article has been refined and enhanced by ChatGPT.