Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | September 28 - October 4, 2024

Crypto Weekly Market Update

Table of Contents

Market Movements and Trends

• Crypto Weekly Recap

ETF and Investment Funds

• Top Bitcoin ETFs of the Decade Revealed

Blockchain and Asset Platforms

• Visa Unveils Tokenized Asset Platform for Banks

Token Launches and Market Dynamics

• EigenLayer’s Token Launch Sparks Market Concerns

Documentaries and Probes

• New HBO Documentary Probes Bitcoin Creator’s Identity

Crypto Exchanges and Funds Distribution

• FTX Plans $6B Distribution to Collapse Victims
• Bithumb Eyes Nasdaq Listing by 2025

Blockchain Developments

• Aptos Blockchain Surges Amid Franklin Templeton Launch

Stablecoin and Regulations

• Coinbase to Delist EU Stablecoins by December

NFT Market Updates

• CryptoPunk Sales Stir Market Suspicion
• NFT Sales Plummet, SEC Scrutiny Increases
• Ubisoft, Lamborghini Drive Web3 NFT Gaming
• Pudgy Penguins Launch Arcade-Style NFT Game

Crypto Weekly Recap

Bitcoin:

• Weekly performance: -4.67%
• US spot Bitcoin ETF weekly netflow was -$327.13M.
• Digital asset funds had $1.2 billion in net inflows last week, the highest since July 19. Bitcoin funds saw over $1 billion in inflows.
• BTC closed its best September ever and its first three-week winning streak since February but began October with a plunge, casting doubt on 'Uptober.'
• Price crashed to $60,500 on Monday (Oct 1) after reports of Iran launching missile attacks on Israel.
• BTC ETFs experienced outflows since Oct 1 for three days in a row. Largest outflow on Oct 1: -$242.53M, the biggest since early September.
• BTC bounced above $62,300 on Tuesday but fell back to $60,000 as rising oil prices shifted focus to commodities like oil and gold.
• Bitcoin surpassed $62,000 on Friday, rebounding after a U.S. jobs report revealed lower unemployment.
• Analysis by CryptoQuant founder Ki Young Ju indicated large BTC holders hadn’t realized enough profits to sell. New whales could only gain 1% if they sold now. Older whales, holding for over five months, had an unrealized profit ratio of 1.27. Whales are likely to wait for retail liquidity to push prices.
• Retail Bitcoin trading activity remained normal, lower than previous bull and bear markets, per data from OKX and Binance. Market observers speculate retail investors might provide exit liquidity.

Ethereum:

• Weekly performance: -8.1%
• US spot Ethereum ETF weekly netflows dropped by $38.09M.
• Ether investment products gained $87M, ending a five-week losing streak and marking the first inflows since early August.
• Ethereum Foundation sold over $10M in ETH this year, including a recent sale of 100 ETH. Vitalik Buterin sold 649 ETH to Paxos. An ICO whale offloaded another $47M, sparking FUD.
• ETH started October bearish, then extended its decline to $2,300 on Thursday.
• Factors like Vitalik’s sell-off, reduced dApp demand, and strategic changes in coin issuance kept ETH under $2,800, despite rising institutional adoption.
• Vitalik proposed reducing the staker deposit minimum from 32 ETH to 16 or 24 ETH to increase network accessibility. He aims to lower it to 1 ETH in the future, with advancements like OrbitSSF and PeerDAS.
• Ethereum’s inflation rate surged to 0.74%, its highest in two years, due to reduced on-chain activity and burn rates.
• IntoTheBlock reported Ethereum's recent weekly drop, with key support around $2,350. The $2,100-$2,350 zone remains a crucial Fibonacci retracement area, impacting Ethereum's medium to long-term trend.

Altcoins:

• Metaplanet gained $1.4M in BTC from put options, raising holdings to 530 BTC.
• Coinbase planned proof of reserves for cbBTC.
• ANZ teamed up with Chainlink for RWA tokenization.
• SEC accused Mango DAO, Blockworks of illegal sales.
• Zilliqa Blockchain issued a ‘permanent fix’ after malfunction.
• World Liberty Financial introduced KYC verification online.
• October token unlocks expected to release $1.3B in crypto.
• Kin launched a $100M tokenized real estate fund on Chintai.
• Gemini decided to exit the Canadian market by Dec 2024.
• Taurus collaborated with Chainlink for institutional tokenization.
• Ava Protocol partnered with Sony’s Soneium for no-code blockchain.
• Telegram provided IP addresses, phone numbers since 2018, per CEO.
• Christie’s offered blockchain-based certificates for photo collection.
• ByBit planned to launch trading for major stock indices.
• Tron Network reported a record $577M revenue in Q3.
• WazirX formed a creditors committee as 13% users claimed 92% funds.
• Credbull rolled out a $500M private credit fund with high yield.
• PayPal settled an invoice with EY using PYUSD.
• Binance's market dominance hit a 4-year low.
• US government supported a lawsuit claiming Nvidia misled investors.
• ENA governance voted 99% for Ethena-Ethereal integration.
• Prominent Listings:
  • EigenLayer (EIGEN): Spot - Most popular exchanges
  • Coinbase: Artificial Superintelligence Alliance (FET) - Perpetual futures, Degen (DEGEN), io.net (IO) - Listing roadmap
  • Upbit: Wormhole (W)
  • OKX: Moo deng (MOODENG), First Neiro on Ethereum (NEIRO) - Perpetual futures, Paypal USD (PYUSD) - Spot
  • Kraken: Monero (XMR) - Delist
• Funding:
  • Pantera Fund V: $1B - Pantera Capital - launch in 2025
  • SecondLive: $12M
  • Mawari: $10.6M
  • Mind Network: $10M
  • RD Technologies $7.8M

Top Bitcoin ETFs of the Decade Revealed

In this week’s ETF and investment funds recap, BlackRock's IBIT and Fidelity's FBTC Bitcoin ETFs ranked among the top 10 ETF launches of the decade, with IBIT now holding over $22 billion in Bitcoin. Franklin Templeton proposed a Bitcoin and Ethereum ETF to the SEC, offering exposure without direct ownership. Hashdex amended its S-1 for a Nasdaq Crypto Index ETF, including Bitcoin and Ether. Bitwise filed to launch an XRP ETF amid legal uncertainties and introduced “Trendwise” crypto-Treasury rotation strategies. Grayscale launched an Aave Trust, and Canary Capital released the first US HBAR Trust, providing institutional investors access to Hedera's network.

Visa Unveils Tokenized Asset Platform for Banks

Visa is launching the Visa Tokenized Asset Platform (VTAP), a global stablecoin and tokenized asset issuing platform, to enable banks to mint and manage fiat-backed tokens, including stablecoins, with live pilot programs expected to roll out on the public Ethereum blockchain in 2025. Through this initiative, traditional banks can seamlessly mint, burn, and transfer fiat-backed tokens on blockchain networks, integrating fiat currencies with the digital asset landscape. BBVA, Spain's second-largest bank, will take the lead in stablecoin development by actively participating in Visa’s sandbox program and is set to test its own stablecoin issuance, aiming for a prototype by 2025, with plans to launch the stablecoin by the end of that year, which aligns with its strategy to use blockchain for enhancing digital transactions and optimizing financial systems, as well as its vision for increasing financial access for underbanked populations.

EigenLayer’s Token Launch Sparks Market Concerns

EigenLayer’s EIGEN token debuted on October 1, 2024, trading at $3.90 and quickly achieving a fully diluted market cap of $6.51 billion, stabilizing at $4.28 with a $7.1 billion valuation. However, market unease was prevalent due to discrepancies in token distribution and the token's price volatility. The staking model allows users to stake ETH and use EIGEN as a "Universal Intersubjective Work Token," causing concerns about token distribution, staking rewards, and whale involvement. The launch of the Cryptoeconomic DVN Framework with LayerZero aimed to enhance blockchain communication security. Amidst its market journey, the token's volatility, staking dynamics, and whale activities are central to its narrative.

New HBO Documentary Probes Bitcoin Creator’s Identity

The upcoming HBO documentary "Money Electric: The Bitcoin Mystery," directed by Cullen Hoback, aims to reveal the identity of Bitcoin's creator, Satoshi Nakamoto, potentially impacting global financial and political landscapes due to Nakamoto's sizable Bitcoin holdings. Speculation on potential candidates such as Len Sassaman and Hal Finney adds to the intrigue, though skepticism remains high. The documentary's timing and historical context of failed attempts to uncover Nakamoto's identity are significant factors, with the crypto community emphasizing the necessity of concrete proof over speculative claims. Overall, the mystery surrounding Nakamoto's identity persists, maintaining the community's cautious approach.  

FTX Plans $6B Distribution to Collapse Victims

FTX plans to allocate $6 billion to users impacted by its 2022 collapse, aiming for distribution completion by year-end. EU creditors will receive repayments in euros, with processing fees of up to 30%. Most assets will be compensated at 2022 rates, with BTC holders repaid at $16,486.31 and ETH at $1,241.45. On October 2, 2024, FTX announced the auction of 22.3 million locked Worldcoin (WLD) tokens at a 40-75% discount, valued at $37.7 million. Notifications for accepted bids are expected by October 3. Concerns remain over the lengthy lockup periods for these tokens.

Bithumb Eyes Nasdaq Listing by 2025

Bithumb, South Korea’s second-largest crypto exchange, plans to pursue a Nasdaq listing in the latter half of 2025, appointing Samsung Securities as its primary underwriter. The exchange's preparation involves the establishment of a new entity, Bithumb Investment, focusing on bolstering its digital asset exchange business and overseeing investment and real estate brokerage divisions. Bithumb’s listing strategy remains open to both domestic and international markets, including the US. With approximately 10% to 20% of South Korea’s crypto market share and a spot trading volume of nearly $650 million in the last 24 hours, the exchange aims to join the ranks of crypto firms going public, solidifying crypto’s standing as a legitimate and globally recognized asset class.

Aptos Blockchain Surges Amid Franklin Templeton Launch

The Aptos blockchain experienced a significant rally after Franklin Templeton introduced its FOBXX fund on the platform, making it the third-largest tokenized treasury product with a market capitalization of $437 million. Additionally, Aptos Labs acquired HashPalette, leading to the migration of Palette's PLT token to APT and NFTs to the Aptos Network. Despite PLT seeing a 19% decline post-announcement, the Aptos native token, APT, showcased its strength with a notable price surge. This development positions Aptos as a rising force in the blockchain space, aligning with the broader adoption of tokenized assets and acquisitions within the industry.  

Coinbase to Delist EU Stablecoins by December

Coinbase announced it will delist unauthorized stablecoins in the EU by December 30 to comply with MiCA regulations. Circle’s EURC, the leading euro-based stablecoin, has doubled its supply since August, now at $75M. EURC activity surged on the Base chain, representing 42% of its supply, while 49% remains on Ethereum. Coinbase plans to provide affected users with options to switch to compliant stablecoins like EURC, which is backed by fiat assets, meeting MiCA requirements. Tether, the largest stablecoin issuer, lacks the necessary e-money license to operate within the EU.