Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | July 6 - July 12, 2024

This article comes to you with the generous support of Betplay.io. Discover the excitement and rewards that await you at Betplay.io with a 100% welcome bonus and 10% weekly cashback!

Crypto Weekly Market Update

Table of Contents

Market Updates

• Crypto Weekly Recap

Regulatory and Institutional Developments

• SEC Concludes Investigation Into Paxos, No Enforcement Action
• Goldman Sachs to Launch Three Tokenization Projects

Blockchain and Partnership Initiatives

• TON and Polygon Launch TON Applications Chain
• Worldcoin Launches World Chain Developer Preview

Crypto ETFs and Market Listings

• Cboe Files to List VanEck, 21Shares' Solana ETFs

Company and Financial Restructuring

• Terraform Labs to Sell Subsidiaries Amid Bankruptcy

Security Incidents in DeFi

• Multiple DeFi Platforms Hit by DNS Hijacking

Market Performance and Challenges

• Arbitrum Faces Challenges Despite Recent Gains

Staking and Data Integration

• Starknet to Introduce Staking by End of 2024

Whale Activity and Market Trends

• Chainlink Sees Significant Whale Accumulation

Pre-Market and New Listings

• Bybit Lists Hamster Kombat for Pre-Market Trading
• Upbit and Bithumb List New Cryptocurrencies

NFT and Token Launches

• Animoca Brands Launches MOCA Token

Crypto Weekly Recap

Bitcoin:

• Weekly change: +0.98%
• After trading above $56,000 over the weekend, BTC fell to $54,500 on Monday as the German government transferred 16,400 BTC ($917M) to major exchanges. The Crypto Fear & Greed Index dropped to 28 from 53 on July 1.
• On Monday, Metaplanet bought 42,466 BTC. Bitcoin ETFs saw $143.1 million inflows. Digital Asset Funds turned positive for the first time in four weeks. (source)
• BTC regained $57,000 as exchanges sent $163 million worth of bitcoin back to the German government. It peaked at $59,250 on Wednesday as RSI bounced from oversold conditions. BitMEX saw a significant outflow of 5,486 BTC, its second-largest ever.
• The price continued to drop due to the German government's ongoing BTC transfers until surpassing $59,000 again after US inflation data.
• US inflation fell to 3% in June, the lowest since April 2021. The Consumer Price Index (CPI) rose 3% year-over-year in June, down from 3.3% in May. Monthly prices fell by 0.1%. The unemployment rate rose to 4.1%, the highest since the pandemic. Traders expected two interest rate cuts this year.
• The surge lasted only an hour as BTC dropped to $56,800 after being rejected at $60,000. The Fear & Greed Index hit 25, an Extreme Fear level, due to the German government's action and a Genesis Trading-labeled address moving $720M BTC to Coinbase, indicating asset liquidations.
• While short-term holders sold, whale wallets holding over 10 BTC increased by 261 in July, showing confidence. Whales added 71,000 BTC worth $3.9 billion during the market pullback. (source)
• The price briefly recovered to $58,000 as the Producer Price Index (PPI) for June exceeded expectations, US spot bitcoin ETFs saw a fifth consecutive day of positive flows with a net inflow of $78.93 million on Thursday, and expectations for a potential bottom as the German government neared the end of its BTC sales, holding 3,846 BTC worth $223.66M. (source)
• CryptoQuant predicted a Bitcoin bull run starting in Q3 2024 based on historical data. Patterns in 2016 and 2020 preceded price surges. Miners' profitability drops suggested a potential bull rally. A decline in non-empty wallets indicated patient investor behavior. Negative MVRV ratios pointed to a buying opportunity. (source)

Ethereum:

• Weekly change: +0.38%
• ETH had a bearish start to July due to several market-shaking events.
  • Spot Ethereum ETFs did not debut as expected on July 2.
  • US and German governments reportedly sold large amounts of BTC.
• Besides BTC's bearish move, ETH dipped to $2,855 on Monday due to whale offloads, including Golem's $100M ETH transfer to exchanges within one month and two whales unloading 13,680 ETH worth $41 million (source).
• Nate Geraci, an expert in ETFs, predicted that spot Ethereum ETFs would debut within two weeks, targeting July 15 (source).
• Thanks to the ETF anticipation and indirect sell pressure, ETH rose modestly but steadily after rebounding from Monday's low.
• It nearly reached $3,200 on Thursday following the CPI bullish push, but soon fell off this level, holding $3,100 as market sentiment slightly improved.
• Other positive news for ETH: Major issuers like BlackRock, Fidelity, and VanEck updated their S-1 forms for spot Ethereum ETFs. Bloomberg analyst Eric Balchunas predicted possible approval by July 18; Ethereum's ETH2 Beacon Deposit Contract surged to a record 47.36 million ETH, marking a substantial milestone with 33.9% of the total supply staked; Tron founder Justin Sun recently purchased 1,614 ETH for $5 million USDT; Golem appeared to have stopped selling ETH and staked 40,000 ETH ($124.6M).
• This week, the TON ecosystem is buzzing with activity. Whale transactions; Hamster Kombat's plan for airdrop; and new projects like Dogs House, which garnered 1.5 million users in its initial days, are capturing attention.

Altcoins:

• Crypto whale deposited 1.1M PENDLE to Binance.
• Nuklai and Filecoin decentralized data for training AI models.
• Pancake Bunny hacker siphoned $2.9M Ether through Tornado Cash.
• Binance ceased trading BOND, DOCK, MDX, POLS on July 22.
• Astar Network burned 350M ASTR tokens after community vote.
• EOS Network announced a new staking rewards program.
• Pink Drainer was scammed by an address poisoning attack.
• Ronin Network integrated PHPC stablecoin on its platform.
• SSV Network reached 1 million ETH staked.
• Coinbase Ventures invested in Ampleforth's flatcoin, SPOT launched on Base.
• Doja Cat's X account was hacked, pushing scam token DOJA on Solana.
• MetaMask Developer Consensys released a new toolkit for seamless onboarding.
• Multichain Foundation paid $2.1M to Fantom for losses.
• Decentralized crypto exchange WOOFi used gaming-style NFTs to boost DeFi.
• BONK price climbed after a proposal to burn 84 billion tokens.
• USDC led regulated stablecoins with $23 billion volume.
• Storj acquired cloud computing firm Valdi; terms undisclosed.
• API3 launched OEV Network for DeFi projects.
• Stellar Network brought DeFi to the unbanked with a smart contract platform.
• Animoca Brands reported a 72% increase in bookings for Q1 2024 over Q1 2023.
• Messi-promoted memecoin faced backlash over hefty insider allocations.
• Curve Finance users locked record amounts of CRV tokens in the DEX.
• Bitwise faced a multi-million dollar lawsuit for fraud, negligence, and a ‘pump and dump’ scheme.
• Donald Trump to join Bitcoin 2024 Conference
• Microsoft and Apple renounced OpenAI board membership.
• Elliptic exposed an $11B scam network via Huione Guarantee.
• SD token price soared as Coinbase listed Stader in asset roadmap.
• Nomic and Osmosis waived BTC bridging fees in a landmark DAO-to-DAO partnership.
• SingularityNET and Filecoin partnered for AI and DePIN.
• Jack Dorsey’s Block supplied 3nm mining ASICs to Core Scientific.
• Notcoin, 1inch, and Sign launched an accelerator for Telegram and TON ecosystems.
• Skale Labs unveiled a 'huge technical upgrade' for blockchain popular with web3 video games.
• Crypto VC Hypersphere opened a $130 million liquid fund, seeking $75 million for a new VC fund.
• 6.57 trillion Shiba Inu (SHIB) whale withdrawals stunned crypto exchanges.
• Lyra Finance offered leveraged exposure to ETH through Ethena.
• CFTC chair reiterated BTC and ETH are commodities in testimony.
• PYUSD saw a dramatic 61% surge on Solana.
• Inferno Drainer failed to launder ETH and was ‘not welcome’ in Railgun.
• Tanzania fintech startup Nala secured $40 million via Series A round.
• BitMEX expected ‘no further fines’ for an ‘old’ AML violation in the US.
• EigenLayer was threatened by a Sybill attack with up to 50% fake delegations.
• Coinbase Ventures bought 4.7 million tokens of Aerodrome Finance (AERO).
• Binance finalized the sale of a majority stake in Gopax.
• Illegal crypto miners in Malaysia stole $723M worth of electricity since 2018.
• Asset manager DWS planned to release the first EUR stablecoin by 2025.
• Render got Binance support for a token swap and rebranding.
• OPSEC crypto plummeted amid a security breach.
• Portal introduced ‘PortalPay’ interoperability for blockchain gaming.
• Coinbase launched a ‘one-stop’ app for managing crypto, NFTs, and DeFi positions.
• Whale withdrew Uniswap (UNI) and Aave tokens from Kraken.
• Large ETHFI deposit to Binance sparked questions on the token’s dynamics.
• Morgan Creek Digital raised up to $500M for a new web3 venture capital fund.
• Machi Big Brother sold all his BLUR holdings, losing $3.16M.
• MakerDAO launched a $1B tokenization competition for real-world assets.
• Partior raised $60M in a Series B round.
• SEC accepted SAB 121 exceptions to crypto accounting rules for banks and brokerages.
• Celo unveiled Dango L2 Testnet to scale Ethereum.
• Hashkey revealed Ethereum Layer 2 mainnet launch timeline.

SEC Concludes Investigation Into Paxos, No Enforcement Action

The SEC has concluded its investigation into Paxos without recommending enforcement action, marking a pivotal shift in stablecoin regulation. Initially facing scrutiny over its Binance USD (BUSD), Paxos argued that BUSD, backed 1:1 by dollar reserves, didn't qualify as a security. 

Following a favorable court ruling in June 2024 and amid political pressures, the SEC's decision signals reduced regulatory uncertainty for stablecoins in the U.S. This development is seen as a positive for the crypto market, initially boosting Binance's BNB token to $539, though it later retreated amidst broader market pessimism, reflecting ongoing volatility.

Goldman Sachs to Launch Three Tokenization Projects

Goldman Sachs is set to launch three new tokenization projects by the end of 2024, targeting institutional clients with digital asset solutions. These initiatives aim to meet growing demand for tokenized real-world assets (RWAs), leveraging private blockchains for regulatory compliance. Projects include focusing on the US fund complex, European debt issuance, and improving transaction speeds with diversified collateral assets. 

The move follows heightened interest in crypto assets post-success of Bitcoin ETFs, with firms like BlackRock and Franklin Templeton also exploring digital liquidity. Goldman Sachs aims to innovate asset management and influence capital markets significantly through these strategic tokenization efforts.

TON and Polygon Launch TON Applications Chain

TON and Polygon have collaborated to launch a new layer-2 network, TON Applications Chain (TAC), aiming to integrate Ethereum's ecosystem into Telegram. TAC leverages Polygon's technology to support EVM-compatible decentralized applications, enhancing user engagement and DeFi opportunities within Telegram. Toncoin has surged with a 376% increase in whale transactions, trading at $7.28 with a TVL of $702 million. 

In contrast, Polygon's MATIC faces bearish trends, with a negative return of 48.63% year-to-date and concerns over price stability. This partnership marks a significant step towards blockchain interoperability, potentially reshaping the crypto landscape with new developer and user prospects.

Worldcoin Launches World Chain Developer Preview

Worldcoin has launched its World Chain developer preview, bypassing traditional testnets to allow early infrastructure deployment on a "gated mainnet." Scheduled for a full 2024 release, World Chain integrates World ID for human transaction verification, targeting over 10 million users globally. Despite recent price fluctuations, with WLD trading at $1.85 and a market cap of $644.7 million, strategic partnerships with Alchemy, Safe, and Elliptic bolster the project's infrastructure. 

Positioned within Ethereum's Superchain network, World Chain aims for scalable, low-cost transactions, enhancing decentralized finance and identity apps. This initiative underscores Worldcoin's ambition to reshape digital identity and blockchain technology.

Cboe Files to List VanEck, 21Shares' Solana ETFs

Cboe filed with the SEC to list VanEck and 21Shares' Solana ETFs, with a 240-day decision window. Bloomberg analyst Eric Balchunas predicted a final deadline in March 2025, noting the U.S. presidential election's impact, suggesting approval is likelier if Trump wins. 

On July 10, 2024, Jump Crypto announced a $1M bug bounty for Firedancer's debut, aiming to bolster Solana's validator diversity and security. Additionally, Solana's liquid staking TVL surged to $3.73B, 7% of its market cap, driven by protocols like JITO, mSOL, and jupSOL, challenging Ethereum's dominance in the sector.

Terraform Labs to Sell Subsidiaries Amid Bankruptcy

Terraform Labs, amid bankruptcy proceedings and a $4.5 billion SEC settlement, plans to sell four subsidiaries to comply with legal obligations. The companies up for sale include Pulsar Finance, Station, Enterprise, and Warp, integral parts of its blockchain and crypto operations. This move aims to maximize value for creditors following the significant legal and financial challenges faced by the firm. The settlement, reached recently, also involves substantial penalties and marks a pivotal moment for Terraform Labs in restructuring its business amidst regulatory scrutiny.

Multiple DeFi Platforms Hit by DNS Hijacking

On July 11, 2024, multiple decentralized finance (DeFi) platforms, including Compound Finance and Celer Network, experienced front-end attacks via DNS hijacking, redirecting users to malicious phishing sites. Despite initial breaches, both platforms restored security swiftly, with Compound Finance assuring users that smart contracts remained unaffected. 

Pendle Finance also faced a similar domain hijacking, but user funds and protocols were reported safe. Investigations pointed to vulnerabilities linked to Squarespace DNS records, affecting up to 228 DeFi protocols. Inferno Drainer, a known attacker, exploited shared on-chain and off-chain infrastructure to conduct these attacks.

Arbitrum Faces Challenges Despite Recent Gains

Arbitrum, a leading Ethereum layer-2 solution, faces significant challenges. On July 5, 2023, ARB traded at an all-time low of $0.57, though it has since risen by 22%. Despite this, 97% of its holders suffer losses, with 1.15 million addresses holding $4.53 billion worth of ARB at current rates. 

Daily active addresses on Arbitrum have dropped by over 46% since June 21, leading to a 34% decrease in daily transactions. Network fees and revenue have plummeted by 98% and 99%, respectively. Analysts suggest whales are awaiting more market volatility before making significant moves.

Starknet to Introduce Staking by End of 2024

Eli Ben-Sasson, CEO of StarkWare, announced that Starknet will introduce staking by the end of 2024, starting on the testnet with a mainnet launch expected in Q4. The staking protocol includes a 21-day withdrawal time-lock and rewards based on a minting curve proposal. 

Additionally, Chainlink's Data Feeds are now available on the Starknet mainnet, enhancing DeFi capabilities by providing secure and reliable data for developers. This integration, part of the Chainlink SCALE program, aims to accelerate Starknet ecosystem growth with cost-effective and decentralized access to real-world data.

Chainlink Sees Significant Whale Accumulation

As of recent reports, Chainlink (LINK) has seen significant whale accumulation despite a decline in its value. Last week, LINK whales acquired over 6.2 million tokens, amounting to approximately $76 million. This surge in whale activity has driven a 43.8% increase in trading volume and a 3.99% price rise to $13.38. On-chain data reveals that the number of LINK whale addresses has grown by 3.3% since June 20, 2023, reaching their highest level since November 2023. 

Whales now hold 21% of the token's total supply, suggesting confidence in a price rebound. The Market Value to Realized Value (MVRV) ratios indicate LINK is undervalued, presenting a buying opportunity. However, bearish sentiment remains, with potential risks of further devaluation to $11.11, while a price recovery to $13.02 is possible if whale accumulation continues.

Bybit Lists Hamster Kombat for Pre-Market Trading

On July 8, 2024, Bybit listed Hamster Kombat (HMSTR) for pre-market trading. The game, a Telegram-based clicker with over 250 million users, plans a second season and airdrop within two years, aiming to eliminate bots before the token listing. The founders, inspired by Notcoin, emphasize the community and educational value. TON blockchain's Toncoin surged 983% in whale transaction volume, reaching $4.1 million. 

Upbit and Bithumb List New Cryptocurrencies

On July 11, 2024, Upbit, South Korea's largest cryptocurrency exchange, announced the listing of Galxe (GAL) on KRW trading pairs on the Ethereum network, leading to GAL's price increasing up to 30%. Bithumb, another major South Korean exchange, listed PolyMesh (POLYX) on KRW trading pairs on the Polymesh network, resulting in a 12% price increase for POLYX. Earlier this week, Bithumb also added two new cryptocurrencies: TAIKO, an Ethereum layer 2 project aimed at enhancing transaction efficiency and security, and BRETT, a meme coin on the Base blockchain.