Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | June 17 - June 23, 2023

Crypto Weekly Market Update

Written by Van

Table of Contents:

Crypto Market Updates

• Weekly Crypto Market Report: Bitcoin Regains Dominance, Altcoins Show Mixed Performance
• Valkyrie Seeks SEC Approval for Bitcoin ETF
• EDX Markets: New Crypto Exchange Backed by Industry Giants

Crypto in Banking

• JPM Coin Expands to Facilitate Euro Payments

Network Developments

• Ethereum Proposes Significant Increase in Validator Stake
• BNB Chain Launches High-Speed Testnet opBNB

Regulatory Updates

• Ripple Granted Regulatory Approval in Singapore
• Binance Grapples with Regulatory Issues Globally
• Federal Reserve Chair Weighs in on Stablecoin Classification

Industry Recognition

• Crypto Companies Make TIME100 Influential Companies List

Troubles in Crypto Custody

• Prime Trust Fails to Honor Customer Withdrawals

NFT Market Update

• Yuga Labs to Launch HV-MTL Forge Game with Robot NFTs
• Gods Unchained Joins Epic Games Store, Broadening Blockchain Games Reach
• Slim Jim Launches 'Meataverse', Gives Away 10,000 NFTs
• German Intelligence Agency Uses NFTs to Attract Blockchain-Savvy Recruits
• FC Barcelona and World of Women Team Up for Soccer NFT Auction

Weekly Crypto Market Report: Bitcoin Regains Dominance, Altcoins Show Mixed Performance

Bitcoin Market Trends

• Bitcoin had been trading around $25,500 at the start of this week, before BlackRock kicked off the Bitcoin ETF race among institutions, and caused a nice uptrend in BTC’s price.
• On June 20, amid the Bitcoin ETF race, Bitcoin reached 50% market dominance for the first time in 2 years.
• It reached a weekly high of $30,588 on June 21, posting a weekly gain of 17.66%.
• On June 22, Bitcoin saw a brief dip to about $29,575 after BitGo terminated acquisition of rival Prime Trust, but quickly recovered.
• Short traders experienced their largest loss in two months as Bitcoin surged to $30,000.
• BTC experienced its strongest weekly close since March, despite criticism from "Mad Money" host Jim Cramer who told his audience to get out of crypto on January 9 when Bitcoin was trading at $17,093. BTC has increased by 80% YTD.
• Market cap increased by $80 billion due to the recent surge.
• $537 million profits were booked in the recent rally, marking the second-largest profit-taking event in the past year.
• The surge was driven by BlackRock's filing for a Bitcoin spot ETF and other institutions' crypto interest. BlackRock, Invesco, WisdomTree, and other institutions show significant interest in Bitcoin ETFs.
• Powell’s positive comments, which stated that cryptocurrencies have "staying power," contributed to the weekend rise.
• Before this price jump, whales had accumulated 131,600 BTC ($3.5 billion) amid market downturn in the past 11 weeks.

Ether Market Trends

• ETH followed similar path to BTC, dipping and then regaining ground; trading near $1,900 at the time of writing.
• As of June 20, a user reported that the market capitalization of Ethereum has exceeded that of all alternative cryptocurrencies in the crypto market, marking the first occurrence since February 2021.
• Ethereum saw a weekly increase of 13%, but the price ratio between Ether (ETH) and Bitcoin (BTC) has reached a two-month low of 0.0615.
• Bitcoin's price has surged by 10% this month, while ETH has only increased by 1%.
• If the ETH/BTC ratio declines further to the 0.05 to 0.055 range, it can be an opportunity for investors to favor Ethereum over Bitcoin.
• Over 23.1 million ETH staked ($43 billion at current price); staked ETH makes up 19.4% of total circulating supply.
• Staking's popularity grew after Shapella upgrade enabled withdrawals; net inflow of 3.6 million staked ETH ($6.9 billion) post-Shanghai upgrade.

Market Sentiment

• Over 75% of Bitcoin holders in profit at spot rates of around $30,000; only 3% at break-even; 22% are currently losing money, as per IntoTheBlock.
• Matrixport's Bitcoin Greed & Fear Index (GFI) rose from under 10% to 93% in a week. GFI readings above 90% indicate greed or excess optimism, while below 10% represents extreme fear or pessimism.

Stablecoin Market Trends

• Largest stablecoins' market cap increased by over $1 billion, as of June 19.
• USDT and USDC flowing to centralized cryptocurrency exchanges; net flow of stablecoins to exchanges at +$153.3 million as of June 22.
• On June 13, there was a $364.72 million outflow of stablecoins from exchanges.
• The recent flow indicates stablecoins are being withdrawn less from exchanges. This suggests that more users are moving their coins to ramps and fewer are withdrawing. Users are keen to buy or trade crypto assets to ride the emerging trend.
• On June 18, Kaiko reported that USDC most liquid stablecoin on centralized exchanges (CEXs) followed by USDT, BUSD, TUSD, and DAI.

Altcoin Market Trends

• XRP increased by 45% YTD, outperformed Bitcoin and Ethereum in the last 90 days thanks to new positive developments.
• Stacks (STX) surged by 46% over the past 7 days due to increased demand for Ordinals NFTs and regulatory approval by the US SEC.
• Conflux (CFX) surged by 43% in one week due to the partnership with dappOS and its role as China's only public blockchain.
• Litecoin (LTC) soared 16% this week. The upcoming Litecoin halving on August 26 led to increased wallets and active users, with a 28% 7-day increase in daily active addresses and a 54.6% 7-day increase in new addresses.
• PEPE, one of the top gainers, has seen a 70% rise this week, up 40% in just one day. It now sits at the #68 spot globally despite lacking utility or tech upgrades. 
• Shiba Inu’s 15.7% weekly gain has it nearing a $5 billion market cap again, thanks to burning procedures and Shibacals.  
• Dogecoin is gaining momentum, marking a 7.7% growth this week. It is now ranked #8, priced at $0.0665. DOGE’s recent rise is linked to the buzz about Elon Musk's upcoming fight with Mark Zuckerberg.
• Bitcoin's bullish sentiment is positively affecting larger-cap altcoins, including PEPE.
• On the downside, Bob Token (BOB) has seen a 8% value drop over the past 7 days. This is due to Elon Musk's Twitter suspending an associated BOB account.

Valkyrie Seeks SEC Approval for Bitcoin ETF

Valkyrie Digital Assets has filed an application with the US Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). The company joins BlackRock, Fidelity, SkyBridge, and several other firms in the race to launch the first Bitcoin ETF in the US. The SEC has yet to approve any Bitcoin ETFs due to concerns over market manipulation and volatility. However, with growing institutional interest in cryptocurrencies, the pressure to approve a Bitcoin ETF is increasing. More details here.

JPM Coin Expands to Facilitate Euro Payments

JPMorgan has expanded the use of its blockchain-based payment system, JPM Coin, to facilitate euro-denominated payments for corporate clients. The system has been designed to enable multinational firms to transfer euros to and from their JPMorgan accounts instantly and 24/7. It is an attempt to improve upon traditional banking transactions, which are usually processed only during business hours. 

Launched in 2019, JPM Coin is part of JPMorgan's blockchain-based platform known as the Onyx Coin System, which is aimed at improving wholesale payment transactions. The bank reportedly processed about $300 billion of transactions in JPM Coin since its launch. More details here.

EDX Markets: New Crypto Exchange Backed by Industry Giants

EDX Markets, a new cryptocurrency exchange, has launched with backing from financial institutions including Citadel Securities, Fidelity Investments and Charles Schwab. The exchange aims to attract "industry leaders" by offering liquidity, competitive quotes and a noncustodial model designed to minimise conflicts of interest. EDX currently supports trading of four cryptocurrencies: Bitcoin, Ether, Litecoin and Bitcoin Cash. The exchange plans to introduce EDX Clearing, a clearinghouse aimed at settling trades executed on its platform. More details here.

Ethereum Proposes Significant Increase in Validator Stake

Ethereum developers have proposed raising the minimum amount of staked Ether required to become a validator from 32 ETH to 2,048 ETH. The move aims to make the Ethereum network more efficient over time. Additionally, Ethereum Foundation researcher Michael Neuder has called for the implementation of auto-compounding validator rewards. The proposal has generated mixed reactions within the crypto community, with some expressing concerns that such a significant increase in staked ETH would lead to a more centralized network. 

Meanwhile, a new protocol called "Ethscriptions" has launched on the Ethereum blockchain, offering users a unique way to create NFTs and other digital assets. More details here.

BNB Chain Launches High-Speed Testnet opBNB

BNB Chain has launched opBNB, a testnet based on Optimism's OP Stack that is expected to reach speeds of 4,000 transactions per second at a cost of 0.005 US cents per transaction. The EVM-compatible blockchain could help alleviate network congestion and reduce transaction costs by batching multiple transactions into one and submitting them to a base blockchain. Developers say the platform enables the creation of open ecosystems and facilitates the migration of applications to Binance Smart Chain, expanding their user base.

Ripple Granted Regulatory Approval in Singapore

Ripple has received regulatory approval from the Monetary Authority of Singapore (MAS) to offer digital asset payments and token products in the country. This marks a significant milestone in Ripple's global expansion plans and allows its subsidiary, Ripple Markets Asia Pacific, to expand its On-Demand Liquidity (ODL) service in Singapore. Ripple's CEO praised Singapore's regulatory approach and its commitment to promoting innovation while ensuring consumer protection and financial stability. The approval comes as Ripple faces legal challenges from the US Securities and Exchange Commission regarding the alleged offering of XRP as an unregistered security. More details here.

Binance Grapples with Regulatory Issues Globally

Binance faces regulatory challenges in multiple countries. Its UK subsidiary, Binance Markets Limited (BML), withdrew registration with the FCA, deeming it unnecessary. Coin trading remains unaffected. Binance also encountered registration issues in the Netherlands and Cyprus. Binance Nigeria Limited, declared illegal by Nigerian authorities, is separate from the real Binance, which issued a cease-and-desist order to the entity for fraud. 

Investigations are underway in the US, Australia, the Netherlands, and Brazil, with allegations of misleading statements by the SEC. Binance is probed in Brazil for aiding pyramid schemes and evading crypto investment restrictions. Despite this, Binance launched a regulated platform in Kazakhstan, while others target the Asia-Pacific region. Legal teams accuse the SEC of issuing misleading statements in an ongoing lawsuit.

Federal Reserve Chair Weighs in on Stablecoin Classification

At a recent meeting, Federal Reserve Chair Jerome Powell gave his opinion on a draft stablecoin bill. He stated that payment stablecoins should be classified as a form of money and that the Federal Reserve should have a "robust" role in their oversight. This stance is contrary to that of SEC Chair Gary Gensler, who considers most cryptocurrencies to be securities, and CFTC Chair Rostin Behnam's view that stablecoins may be classified as commodities. Former CFTC Chair Chris Giancarlo called for a government fix for a "glaring omission" in the proposed bill, which could allow a government policy like Operation Choke Point to be implemented. 

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Crypto Companies Make TIME100 Influential Companies List

The TIME100 Most Influential Companies list for 2023 includes four cryptocurrency companies, as well as other businesses that embrace the asset class. The list recognizes the profound influence and potential of the crypto industry in reshaping traditional financial systems and revolutionizing various sectors worldwide. Among the recognized companies are Chainalysis, Circle Internet Financial, Polygon Labs, and Mercado Libre. The inclusion of these trailblazers sheds light on the transformative potential of cryptocurrencies and blockchain technology.

Prime Trust Fails to Honor Customer Withdrawals

Crypto custodian Prime Trust is in a "critically deficient" financial condition and has been unable to honour customer withdrawals since 21 June, according to Nevada's business regulator. The state's Department of Business and Industry claimed Prime Trust had breached its fiduciary duties by failing to safeguard assets under its custody. The firm has 30 days to respond to the cease and desist order. 

Payments subsidiary Banq filed for bankruptcy protection on 13 June and BitGo cancelled its acquisition of Prime Trust on 22 June. TrueUSD announced on Twitter that their stablecoin TUSD had no exposure to Prime Trust in light of regulatory challenges. TrueUSD reiterated that it had diversified its partnerships and maintained “multiple USD rails” elsewhere, reassuring users that all their funds were safe. 

Top Weekly Altcoin Gainers and Losers

Gainers:

Pepe PEPE (+65.98%)

Conflux CFX (+44.84%)

Stacks STX (+43.74%)

Bitcoin Cash BCH (+37.69%)

FTX Token FTT (+28.12%)

Losers:

BitTorrent New BTT (-11.01%)

KuCoin Token KCS (-2.41%)

Toncoin TON (-1.91%)

Tether Gold XAUT (-1.54%)

PAX Gold PAXG (-1.29%)

NFT Market Map

Yuga Labs to Launch HV-MTL Forge Game with Robot NFTs

Yuga Labs is set to launch its new game, HV-MTL Forge, on June 29. The workshop-building game will use HV-MTL robot NFTs that previous Sewer Pass holders claimed. The game challenges players to build and customize a workshop and try to earn community votes for having the best space. Owners of the Sewer Pass NFTs could swap the pass for a HV-MTL mech suit NFT back in March. To date, the HV-MTL NFTs have generated about $38 million worth of secondary trades.

Gods Unchained Joins Epic Games Store, Broadening Blockchain Games Reach

Gods Unchained, a popular web3 game based on the Immutable X blockchain, has joined the Epic Games Store, marking a milestone for blockchain-based games reaching mass audiences. The move is part of the company's efforts to expand its reach and capture the attention of a wider audience. 

Gods Unchained's parent firm, Immutable, develops the NFT-focused Layer 2 scaler Immutable X and raised $200 million in Series C funding last year, netting the firm a $2.5 billion valuation. The game held 92% of the non-Ethereum NFT trading volume for web3 games between June 11 and June 18, according to The Block.

Slim Jim Launches 'Meataverse', Gives Away 10,000 NFTs

Slim Jim, the snack brand, has launched an interactive "Meataverse" and is giving away 10,000 NFTs called "GigaJims" on Polygon's Ethereum scaling network for free. The NFTs will function as digital membership cards and give fans access to exclusive perks and benefits, as well as both online and physical world experiences that will be rolled out in the future. 

The GigaJims are available on a first-come, first-serve basis and will be procedurally generated with randomly selected visual attributes inspired by Slim Jim brand mythology and lore. Slim Jim said it will release a roadmap of additional enhancements and features set to be unveiled over upcoming seasons.

German Intelligence Agency Uses NFTs to Attract Blockchain-Savvy Recruits

The German Intelligence Agency, Bundesnachrichtendienst (BND), has launched a non-fungible token (NFT) collection to recruit young talent fluent in blockchain technology. The collection, called "Dogs of BND," features 999 generative dog-themed profile pictures and can only be acquired through a gamified blockchain treasure hunt. The BND aims to attract social media-savvy users interested in NFTs to help mitigate cybercrime. The treasure hunt will end when all 987 tokens have been minted.

FC Barcelona and World of Women Team Up for Soccer NFT Auction

FC Barcelona has collaborated with the NFT project World of Women to create a unique soccer NFT featuring Alexia Putellas, the captain of FC Barcelona's women's team. The NFT, titled Empowerment, will be auctioned on OpenSea from June 26 to June 28, 2023, with proceeds going to Barça Foundation. The collaboration is part of FC Barcelona's Masterpiece NFT Collection, which showcases the club's values and history through digital art. While soccer NFTs provide new revenue streams and engagement opportunities for clubs and leagues, critics argue that they are overhyped, unsustainable, and environmentally harmful.

This article has been refined and enhanced by ChatGPT.