cryptocurrency widget, price, heatmap
arrow
Burger icon
cryptocurrency widget, price, heatmap
News/Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | May 18 - May 24, 2024

Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | May 18 - May 24, 2024

Van Thanh Le

May 24 2024

4 weeks ago6 minutes read
Coin360 weekly crypto news, cryptocurrency updates, market movement

Crypto Weekly Market Update

Table of Contents

Crypto Market Updates

  • Crypto Weekly Recap
  • SEC Approves Ethereum ETFs Amid Market Uncertainty
  • Grayscale Undergoes Leadership Shift Amid Market Challenges
  • Gala Games Overcomes $200 Million Token Hack
  • Crypto World Mourns Kabosu, the Face Behind Dogecoin

Crypto Exchanges and Platforms

  • Bybit Refutes Insolvency Rumors, Ensures Asset Security
  • Gate.io and OKX Respond to Hong Kong's Tightened Crypto Regulations
  • Coinbase Restores XRP Trading, Supreme Court Weighs In
  • Binance Revises Listing Strategy Amid Token Unlock Concerns

Banking and Regulatory Updates

  • Genesis's Bankruptcy Settlement Returns Billions to Creditors

Crypto Innovations and Market Developments

  • Blockchain Gaming Investment Hits Record Levels
  • Azuki and Magic Eden Introduce Dual-Chain NFT Hoodie
  • Yuga Labs Halts Controversial NFT Project Amid Backlash
  • AI Firm Rabbit Defends Against NFT Scam Allegations
Coin360.png

Crypto Weekly Recap

Bitcoin

  • Weekly change: +4.71%
  • BTC began the week below $67,700, then soared Monday afternoon, while new weekly addresses dropped to 2018 levels.
  • On Monday, IntoTheBlock data showed whales accumulated over $16.8 billion in Bitcoin after the SEC approved a BTC ETF, with big institutions like Millenium Management dominating ownership of addresses holding over 1,000 BTC; smaller wallets sold off, signaling a bullish market.
  • Digital Asset Investment Products saw inflows of $932 million following the CPI report CPI report.
  • On Tuesday, BTC hit a mid-April high of over $71,300 as analysts predicted an Ethereum ETF approval, enhancing market sentiment.
  • The FIT21 bill's passage and the debut of Bitcoin and Ethereum ETPs on the London Stock Exchange post-FCA approval kept BTC fluctuating between $69,000 and $70,000 during Bitcoin Pizza Day, marking a surge of over 17,400% in the past decade.
  • The US House approved the FIT21 bill 279-136, aligning US crypto regulations with global standards and designating the CFTC for regulatory duties while setting crypto business registration guidelines US crypto regulations.
  • Opinions on the FIT21 bill vary within the crypto community; some appreciate the regulatory clarity and classification of certain assets as commodities, while others worry about the CFTC's increased power potentially stifling DeFi crypto community.
  • The U.S. House passed the CBDC Anti-Surveillance State Act requiring the Fed to secure congressional approval before issuing a digital dollar.
  • On Thursday, a decline in Bitcoin demand indicated by a Glassnode report saw BTC fall to $66,800, affected by dwindling hopes for a spot Ethereum ETF, with the Realized Cap showing slowed growth since the all-time high.
  • BTC returned to $68,000 near the SEC's decision, dipped to $66,771 post-approval in a potential 'sell-the-news' event, then climbed back, with 95% of holders in profit according to IntoTheBlock.
  • Spot Bitcoin ETFs experienced nine consecutive days of inflows, with BlackRock nearing Grayscale by 4,561 BTC, despite Grayscale's outflows on three of those days Grayscale.
chart (1).webp

Ethereum

  • Weekly change: +24.88%
  • ETH saw a significant week as the SEC approved spot Ethereum ETFs, though trading has not commenced.
  • Amidst ETF approval uncertainties, Ethereum funds witnessed $23 million in outflows in the previous week.
  • Discussion on ETF approval dominated the community, causing ETH's price to leap from $3,151 to nearly $3,800 in two days, then stabilize between $3,665 and $3,800 as the market awaited the SEC's decision.
  • On Wednesday, Ether's value hit a two-month high against Bitcoin; trading volume of Ethereum futures ETF soared to a record $47.75 million, a 40% increase from the previous high.
  • A 30% rally in Ether prompted over 81,840 ETH to flow into crypto exchanges, totaling around $306 million, the highest in nearly four months, indicating potential profit-taking by holders. (Nansen)
  • ETH soared above $3,900 before the announcement, fell to $3,700 following a sale of 6,968 ETH by Symbolic Capital Partners, and rebounded to $3,800 after the SEC's evening approval, but later dropped back to $3,700.
  • ETH's price showed little volatility during the week, possibly because traders anticipated the approval was priced in.
  • Hong Kong is considering a divergent approach to the US by potentially allowing staking for Ethereum ETFs, which could impact the attractiveness of Ethereum ETFs versus direct investments.
  • Following the ETF approval, capital shifted towards memecoins on the Ethereum chain, driving PEPE to a new all-time high.
  • Nvidia reported positive earnings, briefly boosting AI and AI meme tokens, though the surge was short-lived.
  • Post ETF approval, growth is expected in RWA, LSDfi, LRT, DeFi, and Layer 2 sectors. The approval has led to a surge in deposits into the restaking protocol Ether.fi. Over $995 million worth of ETH has been deposited into the protocol in the past ten days, pushing its total value locked (TVL) to a record $5.4 billion.
  • The SEC's approval sparked speculations about the next cryptocurrencies for ETFs, with Solana considered a strong candidate, though complications arise due to the SEC's stance and lack of a CME-regulated futures market for Solana and others. 
  • Crypto firms predict ETH's price might rise 60%, while Lyra sees a 20% chance of Ether reaching $5,000 by June 28.
  • Similar to BTC's trend post ETF approval, which was down for around 2 weeks before massively soaring to its new ATH, some traders expect ETH to initially fall before a significant rise.
  • Currently, 91% of ETH holders are profiting, while 6% are at a loss.
chart.webp

Altcoins


SEC Approves Ethereum ETFs Amid Market Uncertainty

The SEC's approval of eight Ethereum ETFs, including those from BlackRock, Fidelity, and Grayscale, has generated mixed reactions in the market. Despite the approval, Ethereum's price dropped by 3.5%, suggesting that the news was already priced in. 

While the approval suggests Ether's non-security status, the SEC may still regulate staking activities. The SEC's decision-making process remains uncertain, as approvals for ETF trading might take weeks or months. Market analysts predict inflows of $15 billion to $45 billion in the first year, with some expecting a 75% price rally for Ether, similar to Bitcoin's post-approval surge.


Grayscale Undergoes Leadership Shift Amid Market Challenges

Grayscale Investments, a major player in cryptocurrencyet management, is undergoing a leadership change with Michael Sonnenshein stepping down as CEO on August 15, 2024 after a decade-long tenure. Peter Mintzberg, a former Goldman Sachs executive with extensive experience in asset and wealth management, will take over. Mintzberg's appointment comes as Grayscale navigates challenges in the dynamic crypto market, including competition from new bitcoin ETFs and asset outflows. 

The transition signifies a strategic shift for Grayscale, with Mintzberg's background suggesting a possible focus on structured financial products and an aggressive growth strategy. The market is cautiously optimistic, anticipating Grayscale to maintain its leadership position under Mintzberg's vision for innovation and expansion. 


Gala Games Overcomes $200 Million Token Hack

Gala Games, a prominent crypto gaming platform, suffered a $200 million hack this week. The exploit involved unauthorized minting of GALA tokens due to vulnerabilities in the platform's smart contracts. The hacker initially sold $29 million worth of stolen tokens, causing a 15% drop in GALA's value. Gala Games responded swiftly, freezing the hacker's wallet and implementing a new contract. 

The hacker subsequently returned $22 million worth of Ether, contributing to an 11% price surge in GALA. DWF Labs, a partner of Gala Games, purchased 28 million GALA tokens to stabilize the token's value. Gala Games is currently working on burning the 4.4 billion illegitimate GALA tokens to restore market integrity.

chart (2).webp

Crypto World Mourns Kabosu, the Face Behind Dogecoin

Kabosu, the Shiba Inu whose image became synonymous witgecoin and sparked a memecoin revolution, passed away on May 24 at the age of 18. Her passing triggered a wave of tributes from the crypto community, including Dogecoin, Shiba Inu, and Floki, which all saw price declines in the wake of the news. 

While Dogecoin has recovered to $0.165 per token, Kabosu's legacy is firmly etched in blockchain history. Her impact on the crypto world is undeniable, with her story serving as a testament to the enduring power of memes and the unexpected ways in which internet culture can shape financial markets.

chart (3).webp

Bybit Refutes Insolvency Rumors, Ensures Asset Security

Rumors of Bybit's insolvency, sparked by a dashboard error from Arkham Intelligence, led to substantial user withdrawals, totaling $115 million by May 23, 2024. Bybit CEO Ben Zhou refuted the claims, sharing proof-of-reserves showing the exchange's assets exceed user deposits, with reserves for Bitcoin, Ethereum, USDT, and USDC at 116%, 106%, 107%, and 129% respectively. 

Despite concerns amplified by recent regulatory challenges in France and heightened distrust in centralized exchanges post-FTX collapse, Zhou emphasized the platform's stability. Ethena's $2.5 billion stablecoin USDe was also implicated, but Bybit assured users of their asset security.

chart (4).webp

Gate.io and OKX Respond to Hong Kong's Tightened Crypto Regulations

Gate.io’s Hong Kong entity, Gate.HK, announced it will cease operations and has withdrawn its crypto trading platform license application. Users must withdraw assets by August 28. From May 31, only licensed exchanges can operate, prompting similar actions from major players like OKX

OKX, effective May 31, 2024, will halt centralized trading services, though withdrawals remain unaffected until August 31. Both Gate.HK and OKX are responding to strict Hong Kong regulations requiring compliance by May 31, reflecting broader industry challenges and regulatory pressures.


Coinbase Restores XRP Trading, Supreme Court Weighs In

Coinbase announced the reinstatement of XRP trading for New York residents after a multi-year hiatus due to a legal dispute over XRP's status as a security. Concurrently, the U.S. Supreme Court ruled that state and federal courts, not arbitrators, will handle disputes related to Coinbase's Dogecoin sweepstakes from June 2021, which had conflicting clauses on dispute resolution. This ruling affirms the Ninth Circuit's judgment, emphasizing that arbitration agreements are a matter of contract, allowing courts to determine the governing contract when multiple agreements are involved.

chart (5).webp

Binance Revises Listing Strategy Amid Token Unlock Concerns

Binance Research estimated that $155 billion worth of tokens will unlock between 2024 and 2030, posing risks of significant selling pressure. Binance announced a shift in its listing strategy to support small and medium-sized projects with strong fundamentals, a sustainable business model, and a dedicated team. 

This move aims to address the trend of launching tokens with high fully diluted valuations (FDVs) and low initial circulating supplies, which leads to rapid, unsustainable price appreciation. The exchange emphasized the importance of equitable token distribution and realistic valuations to foster a healthier market environment.


Genesis's Bankruptcy Settlement Returns Billions to Creditors

Judge Lane approved Genesis's bankruptcy plan, allowing the return of $3 billion in credits to creditors, with dollar credits prioritized over crypto credits. Genesis will return 97% of funds to Gemini Earn creditors initially, in cryptocurrencies, potentially of higher value. 

Concurrently, New York's Attorney General secured a $2 billion settlement with Genesis to compensate defrauded investors, banning Genesis from operating in New York. The lawsuit, filed in October 2023, continues against Digital Currency Group, its CEO, and former Genesis CEO, alleging they defrauded investors of over $1.1 billion through the Gemini Earn program.


Blockchain Gaming Investment Hits Record Levels

Blockchain gaming experienced a surge in April, with investmeneaching nearly $1 billion, marking the highest level since January 2021, as per a DappRadar x BGA report. This surge, attributed to renewed consumer interest in digital assets within gaming and the "play-to-airdrop" trend, propelled daily unique active wallets to a record 2.9 million. 

Ronin's "Pixels" emerged as the top platform, surpassing Polygon. The metaverse also showed positive growth, with Mocaverse leading in trading volume. Despite industry challenges, the blockchain gaming sector exhibits strong signs of resurgence and growth, fueled by major players' involvement and new technologies. 

Top Weekly Altcoin Gainers and Losers

Gainers:

Screenshot_2.png

Bonk BONK (+44.36%

Lido DAO Token LDO (+41.76%

Gnosis GNO (+36.37%

Pepe PEPE (+39.97%)

Ondo ONDO (+28.05%

Losers:

Screenshot_1.png

Core DAO CORE (-14.52%

Arweave AR (-9.21%

AIOZ Network AIOZ (-9.20%

TRON TRX (-8.23%

Toncoin TON (-7.35%

NFT Market Map

nft.webp

Azuki and Magic Eden Introduce Dual-Chain NFT Hoodie

The Azuki NFT project and marketplace Magic Eden have launched what they claim is the first product represented as an NFT on both the Bitcoin and Ethereum blockchains. It's a limited edition hoodie inspired by Bitcoin creator Satoshi Nakamoto. Each of the 98 hoodies contains a chip that allows owners to mint a corresponding Ethereum NFT as well as an inscription on Bitcoin. 

The hoodie utilizes Azuki's Physical Backed Token technology, with ownership transfers requiring a signature from the embedded chip for decentralized verification. The dual-chain NFT product aims to enable collecting and trading across both blockchains.


Yuga Labs Halts Controversial NFT Project Amid Backlash

Yuga Labs faced significant backlash for its new CryptoPunks NFT collection, "Super Punk World," created by artist Nina Chanel Abney. The project, part of the Punk in Residence program, aimed to integrate CryptoPunks traits with Abney's style, addressing digital ownership and societal biases in NFTs

Critics labeled the art "woke" for its focus on race and gender, leading to accusations of diluting the original CryptoPunks. Following the controversy, Yuga Labs CEO Greg Solano announced the project’s cessation and plans to distribute the NFTs to Super Cool World holders via randomized airdrop.


AI Firm Rabbit Defends Against NFT Scam Allegations

AI company Rabbit has refuted claims by YouTube investor Coffeezilla that it facilitated an NFT scam and attempted to conceal it. Rabbit maintains that the Gama NFT project was separate from its AI ventures and was open-sourced after its conclusion. The company highlights that over 80% of its current employees joined after its rebrand in December 2023 and that its Rabbit R1 AI product is receiving positive user feedback, with 10,000 users generating over 600,000 interactions in the past 30 days.

This article has been refined and enhanced by ChatGPT.

cryptocurrency widget, price, heatmap
v 5.6.19
© 2017 - 2024 COIN360.com. All Rights Reserved.