Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 15 - June 21, 2024

Crypto Weekly Market Update

Table of Contents

Crypto Market Updates

• Crypto Weekly Recap

Crypto Market Updates

• SEC Affirms Ethereum as Commodity, ETH Price Surges
• Kraken Faces $3 Million Bug Exploit, Recovers Funds
• LayerZero Launches ZRO Token with Proof-of-Donation Airdrop
• zkSync Token Launch Faces Trading and Network Challenges

Regulatory and Legal Developments

• CFTC Investigates Jump Trading's Crypto Activities
• Ripple Faces SEC Challenges, Plans Stablecoin Launch

Financial Services and Investments

• Standard Chartered to Launch Spot Bitcoin and Ethereum Trading Desk
• 3iQ Applies for North America's First Solana ETP
• Ethena Labs Introduces New Tokenomics Rule
• Binance Navigates Regulatory Fines, Expands Services

Crypto Platforms and Projects

• Bitwise Ethereum ETF Ad Now an NFT
• Doodles Shifts Stoodio Platform to Coinbase's Base Network
• Azuki Appoints New COO to Expand Beyond NFTs
• Konami Launches "Resella" NFT Solution on Avalanche

Crypto Weekly Recap

Bitcoin

• Weekly change: -1.52%
• Bitcoin's price declined from $67K to $65.5K on Monday due to selling by long-term holders, whales, and miners. The sell-off occurred mainly through exchanges and OTC transactions. (Source)
• New whales aggressively accumulated 206,783 BTC, boosting their holdings to 1.78 million BTC. Meanwhile, old whales reduced their BTC holdings by 7,266 BTC to 3.61 million BTC. Addresses holding over 10,000 BTC saw holdings rise by 74,340 BTC to 1.57 million BTC, with a realized cap climbing to $55.43 billion. (Source)
• BTC rebounded to $67.3K on the same day but quickly dropped to a one-month low of $64.6K on Tuesday. US spot Bitcoin ETFs saw $581 million in weekly outflows.
• Bitcoin's market dominance surged past 56%, but it traded sideways around the previous all-time high for 3.5 months, the longest period of consolidation. (Source)
• Bitcoin's price rose above $65.8K but crashed again due to the German Federal Criminal Police Office moving $425 million in BTC to exchanges for sell-off, and whales sold over $1 billion in the past two weeks. (Source)
• Bitcoin traders faced fatigue as its price stayed around $65,000-$66,000 amidst prolonged FUD. Investor sentiment was negative for four weeks, prompting sell-offs, but large holders accumulated coins, anticipating a rebound. Analysts suggested that favorable U.S. macroeconomic conditions could support recovery. BTC dropped to $64.7K from $66.5K again on Thursday, after MicroStrategy announced its $786M purchase. (Source)
• Bitcoin miner reserves hit multi-year lows, last seen in 2021. OTC selling by miners surged to its highest daily volume since March.
• Bitcoin's price dipped below $64,000 on Friday, crossing the short-term holder cost basis for the first time since the 2022 bear market. (Source)
• Bitcoin needed to reclaim the $64,097 mark to surpass the short-term holder’s realized price. (Source)
• Bitcoin's price volatility was influenced by miner sell-offs, ETF outflows, governmental actions, and market speculation. The German government's Bitcoin sales and increased short positions pressured the market. Despite challenges, institutional investors like MicroStrategy continued to buy, along with new fund launches, indicating long-term confidence. Potential interest rate cuts could favor recovery. (Source)

Ethereum

• Weekly change: +0.95%
• ETH soared to near $3.7K on late Sunday, then fell to $3.5K on Monday as investors moved over 1.1 million ETH, valued at $3 billion, out of exchanges (source).
• The cryptocurrency market experienced a significant downturn following BTC's drop, including ETH. The Ethereum Foundation, known for selling assets before price drops, transferred 18,089 ETH, valued at $64.4 million on Monday.
• ETH dropped to under $3.4K on Tuesday. Reports showed that a prominent Ethereum whale, holding 150,000 ETH acquired during the 2015 ICO, sold off $35.4 million worth of ETH on Monday and Tuesday (source).
• On Wednesday, another whale withdrew 5,603 ETH from Binance, accumulating 16,605 ETH in 3 weeks (source).
• Ethereum rose back near $3.6K following the SEC's decision to close its investigation into ETH without filing charges. This positive movement reflected market relief and renewed investor confidence in Ethereum's regulatory standing. Bitwise’s updated spot Ethereum ETF S-1 revealed Pantera’s $100 million potential stake.
• According to Bloomberg analysts, the SEC was poised to approve spot Ethereum ETF S-1 filings by July 2, driven by several factors. Firstly, the resolution of ConsenSys' inquiry into Ethereum's regulatory status signaled increasing clarity, easing concerns over its classification as a security. Secondly, proactive amendments to S-1 filings by applicants like Bitwise demonstrated responsiveness to SEC feedback, enhancing transparency and investor confidence. Lastly, SEC Chair Gary Gensler indicated potential summer approvals for such products, underscoring a favorable regulatory environment (source).
• BTC's crash under $64K drove ETH close to $3.5K again on Friday, while Fidelity Investments recently updated its S-1 filing for a spot Ethereum ETF with the US SEC, raising anticipation for the ETF's imminent trading approval. Analysts speculated this delay indicated final preparations.
• Quant analyst Ki Young Ju suggested that Ethereum's Market Value to Realized Value (MVRV) metric signaled an early start to altcoin season, potentially influenced by anticipated SEC approval of Ethereum ETFs. The MVRV ratio for ETH rose faster than Bitcoin's, indicating increased market activity relative to on-chain fundamentals. Historically, such trends sparked broader altcoin rallies following Ethereum's surge (source).
• Memecoin dominance declined after a recent peak, with WIF crashing to a 3-month low amid Solana price recording a 50-day low, while other big cap memecoins saw double-digit losses this week.
• In contrast, Ethereum betas and AI cryptos had a bullish week following spot Ethereum ETF anticipation, Nvidia's surge in market cap, and Pantera's preparation for AI project investments.

Altcoins

• Crypto startup funding eclipsed $100B.
• The crypto sector secured $317M in venture capital deals in early June.
• A new South Korean law required exchanges to review token listings regularly.
• Waka Flocka Flame's token launch faced insider trading allegations.
• Soaring Xai adoption propelled L2 and L3 TVL to all-time highs.
• Rocket Pool (RPL) experienced a high-volume rally.
• Solana’s Raydium DEX displaced Uniswap as a leading activity hub.
• Tether introduced its new gold-backed digital asset called Alloy.
• Crypto chief bid SEC farewell after 9 years of service.
• Malaysia tightened the noose on crypto taxation with a nationwide initiative.
• TON Blockchain’s TVL doubled in three weeks, reaching a record high.
• Velodrome (VELO) price increased as a US lawmaker disclosed a stake.
• RISC Zero launched ZkVM 1.0 for DApp development.
• FTX debtors sought SBF’s seized assets, customers filed a counterclaim.
• Uphold delisted several stablecoins ahead of EU’s crypto regulation.
• Aave’s parent firm Avara sought $50M for Lens Protocol, the token plunged 8%.
• Transak listed Paypal’s PYUSD for easier crypto access.
• Harbour partnered with Aleph Zero to launch Magic Ramp.
• Renzo capitalized on the restaking frenzy to raise $17M from Galaxy, Brevan Howard.
• Cosmos Hub (ATOM) launched a new cross-chain protocol dubbed Valence.
• Fox, Time used blockchain to combat fake news.
• Ronin launched zkEVM to enhance blockchain gaming.
• Sonic secured $12 million to boost Solana’s gaming ecosystem.
• Brazil’s tax authority called on foreign crypto exchanges for information.
• USDC issuer launched Circle Credits to combat AWS dominance.
• Helium Mobile’s developer licensed its tech stack.
• The crypto community backed Tornado Cash devs with a $2.3M legal fund.
• Mode integrated Chainlink CCIP as a cross-chain interoperability standard.
• dYdX got isolated margin, isolated markets, and Raydium support in its latest upgrade.
• Sandbox invested in meme coins like PEPE, SHIB, and DOGE to strengthen Web3 influence.
• The Montenegrin PM’s hidden investment in Terraform Labs was revealed.
• SynFutures TVL hit $62 million amid Base expansion.
• Binance Labs invested in Rango, a cross-chain DEX aggregator.
• Frankfurt Exchange welcomed the first HBAR ETP by Valour Inc.
• Bitstamp listed BONK amidst Robinhood's acquisition plans.
• DeFi Technologies slammed a report that tanked its stock 28%.
• Manta Network launched a $10 million meme grant for ecosystem growth.
• Fuse Network launched a second airdrop with 2.5 million FUSE tokens.
• Io.net explored new partnerships with OpSec.
• Singapore flagged digital payment tokens as high-risk in the AML landscape.
• EigenLayer launched claims for the second phase of Season 1 airdrop.
• Stablecoin issuers became the 18th largest holder of U.S. debt.
• Italy increased surveillance of the crypto market with fines as high as 5M euros.
• BNB Chain activated a hard fork and reduced fees.
• Japanese exchange BitFlyer acquired FTX Japan.
• Donald Trump’s former advisor cleared the air about Trump's involvement with DJT Meme Coin.
• Blast readied to airdrop tokens next week.
• 1inch partnered with Blockaid to combat DeFi fraud and cyber threats.
• Polkadot proposed to slash unstaking time to 2 days.
• Worldcoin token surged after Ecuador expansion and Kenya probe closure.
• Floki Inu smart money staked 14 billion tokens.
• Elon Musk confirmed his son 'Lil X' still holds Dogecoin.
• Modular blockchain Particle Network raised $15 million in a token round.
• A new AI portfolio management tool came to PancakeSwap.
• FCA busted suspects in a $1.2B illegal crypto asset business.
• Arthur Hayes bought Pendle.
• Fantom launched a $120 million crypto fund to support migration to the new Sonic blockchain.
• Arbitrum's daily revenue soared to a record $3.4 million amid LayerZero token claims.
• Cosmos DEX Osmosis' DAO voted to adopt a 'fee-free' bitcoin bridge via Nomic.
• Winklevoss Twins donated $2 million in BTC to Donald Trump's campaign.

SEC Affirms Ethereum as Commodity, ETH Price Surges

The SEC's decision to end its investigation into Ethereum marks a significant milestone, affirming ETH as a commodity rather than a security. This regulatory clarity sparked a 4.9% surge in Ethereum's price and triggered a $58.6 million whale transaction from Binance. ConsenSys, instrumental in pushing for this classification through legal action, hailed the outcome as a victory for Ethereum and the broader blockchain industry. The move paves the way for potential Ethereum ETF approvals, with analysts predicting launches as early as July 2, 2024. 

Kraken Faces $3 Million Bug Exploit, Recovers Funds

The $3 million bug exploit at Kraken unfolded when a critical vulnerability allowed users to manipulate account balances, enabling fraudulent withdrawals before detection. Triggered by a January 2024 system update, the exploit was initially reported by a researcher but led to theft by associates who exploited the flaw. Kraken accused CertiK, a security firm, of extortion, claiming they leveraged the bug for profit. After legal intervention, Kraken recovered most funds, emphasizing improved security practices amidst rising crypto threats. 

LayerZero Launches ZRO Token with Proof-of-Donation Airdrop

LayerZero launched its ZRO token with a unique "Proof-of-Donation" airdrop, requiring users to donate to specific charities to receive tokens. Initially valued at $4.5 each, the tokens saw a market cap of $1.1 billion post-airdrop. Approximately 1.28 million wallets qualified, but dissatisfaction arose over small allocations despite heavy protocol usage. 

LayerZero V2, launched earlier, introduced enhanced security and cross-chain interoperability across 20 blockchains. Despite technical advances, user dissatisfaction underscores the challenges in balancing project goals with community expectations in token distributions.

zkSync Token Launch Faces Trading and Network Challenges

zkSync's token launch on June 17, 2024, saw significant trading activity, with initial peaks followed by a drop to $0.22 per token. Despite a robust $485.42 million global trading volume and listings on major exchanges, network strain affected RPC services, impacting transaction speeds. 

The airdrop faced controversy over eligibility and exclusion of major protocols like ZeroLend, sparking community scrutiny. Post-launch, 73% of top addresses sold or transferred tokens, totaling 509 million ZK tokens. zkSync continues to address technical challenges and refine its distribution strategy amidst cautious investor sentiment regarding future market performance.

CFTC Investigates Jump Trading's Crypto Activities

The CFTC has initiated an investigation into Jump Trading's activities in the crypto market, focusing on its trading operations. This move follows a period of turbulence for Jump, known for its algorithmic trading prowess but marred by incidents like the $325 million Wormhole hack and losses from the FTX collapse. Although Jump wasn't directly accused in recent SEC actions involving Terraform Labs, its role in crypto remains under scrutiny. 

Ripple Faces SEC Challenges, Plans Stablecoin Launch

This week, Ripple faced ongoing legal challenges from the SEC and a civil lawsuit against CEO Brad Garlinghouse for alleged misleading statements. 

Despite legal pressures, XRP's price stabilized around $0.48, with analysts predicting potential gains if certain technical patterns emerge. Ripple also announced plans to launch a stablecoin named Ripple USD (RLUSD) on the XRP Ledger and Ethereum later in 2024. Market sentiment varied, with bullish forecasts suggesting significant price increases, while others cautioned about ongoing legal uncertainties affecting Ripple's future trajectory. 

Standard Chartered to Launch Spot Bitcoin and Ethereum Trading Desk

Standard Chartered announced the upcoming launch of a spot Bitcoin and Ethereum trading desk to expand its digital asset services for institutional clients, placing it under its FX trading division. 

On June 18, 2024, Hashdex proposed an ETF to hold both Bitcoin and Ethereum, marking another milestone in US crypto fund offerings. The Hashdex Nasdaq Crypto Index US ETF, with a 70% BTC and 30% ETH weighting, would not invest in crypto securities, tokenized assets, or stablecoins. VanEck's first Bitcoin ETF on the Australian Securities Exchange debuted with a trading volume of $1.3 million on its first day, significantly lower than US spot Bitcoin ETFs' $4.5 billion debut.

3iQ Applies for North America's First Solana ETP

On June 20, 2024, 3iQ applied to launch North America's first Solana ETP on the Toronto Stock Exchange under the ticker QSOL, aiming to provide Canadian investors exposure to SOL without using blockchain technology. However, Bloomberg analyst Eric Balchunas criticized 3iQ's claim, arguing the fund doesn't meet the true criteria of an ETP or ETF. 

The Solana fund, using Coinbase Custody’s staking infrastructure, intends to offer exposure to Solana price movements and staking yields. Critics noted 3iQ’s misleading marketing tactics, likening them to borrowing from the popularity of ETFs without adhering to strict structural criteria. Solana has surged in the blockchain space, capturing 60% of DEX trading volume in May 2024. 

Ethena Labs Introduces New Tokenomics Rule

Ethena Labs enforced a new tokenomics rule requiring airdrop recipients to lock up 50% of their ENA tokens, causing a price drop to $0.58 before recovering. Bitget, on June 20, announced using Ethena’s USDe as collateral for perpetual futures, spot pairs, and in its Earn program. 

Midas, supported by Coinbase Ventures, launched the yield-bearing token mBASIS, aiming to compete with Ethena’s sUSDe by utilizing a delta-neutral basis trading strategy. mBASIS offers dynamic adjustments across major cryptocurrencies, with a current APY of 12%, and expects its TVL to surpass $100 million by year-end.

Binance Navigates Regulatory Fines, Expands Services

Binance navigates a complex regulatory landscape while simultaneously expanding its service leveraging blockchain technology. India’s FIU fined Binance $2.25 million for AML violations. Binance appealed a $4.4 million fine from Canada’s FINTRAC, citing intent to exit the Canadian market due to regulatory challenges. 

Meanwhile, Binance launched a loyalty program on June 19, rewarding long-term BNB holders with airdrops. Additionally, Binance integrated USDT on TON, improving transaction speeds and reducing fees. New altcoin listings also landed on the exchange this week, including ZK, ZRO, and LISTA.