Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | September 30 - October 6, 2023

Crypto Weekly Market Update

Table of Contents

Crypto Market Overview

• Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments

Banking and Regulatory Updates

• FTX's Fallen CEO Faces the Jury
• Ethereum Futures ETFs Gain Momentum
• Ripple's Legal Wins Boost XRP
• Stars Arena's Meteoric Rise and Security Stumble

Challenges and Risks in the Crypto Market

• Ethereum's Balancing Act of Challenges
• Crypto VC Funding Plummets in Q3
• Ledger Slashes Workforce Amid Market Woes

Asset Performance and Investment Trends

• Solana Woos Institutional Investors

Crypto Exchanges and Platforms

• Kraken Sets Sights on European Expansion

NFT News

• OpenSea Simplifies NFT Creation
• Yuga Labs Invests in Metaverse Expansion

Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments

Bitcoin:

• Weekly change: +3.55%
• Bitcoin's been stuck below $30K since July, even with buzz about spot Bitcoin ETFs.
• Bitwise kicked off its Ether Futures ETFs this Monday, joined by seven others like Valkyrie, VanEck, ProShares, and VolShares.
• Bitcoin briefly touched a nearly 5-week peak at $28,434, then dipped to $27,500, amid market sentiment due to underwhelming ETF performances.
• On Thursday, Bitcoin's push past $28K fell flat. On-chain data and macro factors are to blame. Despite hopes for tackling $30K, key metrics show shaky support.
• Trust in Bitcoin as an inflation safeguard is on the rise.
• U.S. Consumer Price Index numbers for September are due next week and could shake up Bitcoin values.
• More investors are craving Bitcoin.
• Short-term Bitcoin holders aren't budging on selling, and data suggests they're actually making money.
• Another Fed rate bump could happen in November.
• Friday saw Bitcoin dip 1.3% to $27,369 after the U.S. job stats came in. But it rebounded, reclaiming the $27,700 support zone.

Ethereum:

• Weekly change: -0.25%
• Ethereum-focused financial tools like Bitwise's Ether Futures ETFs turned heads this week but let investors down with meager trading activity.
• Ether peaked at a weekly high of $1,736, only to retreat to $1,621 after the jobs numbers rolled in.
• When it comes to institutional bucks, SOL's outpacing ETH. SOL's on a 27-week inflow streak, while ETH's seen outflows for seven straight weeks.

Altcoins:

• Axie Infinity, Optimism, and Aptos to unlock tokens worth over $200M in October.
• Chainlink rolled out 'Data Streams' to speed up data, boosting decentralized computing.
• IOTA stepped into its 2.0 era with fresh upgrades.
• Rollbit raked in $38M in betting revenues last September, RLB Token rose.
• Friend.tech acted fast on SIM-swap issues, resulting in over 100 Ether drained.
• Binance to halt BUSD lending on October 25.
• Optimism's testnet deployed a fault-resistant system, eyeing true decentralization.
• Verasity's VRA skyrocketed 71% after burning a massive 10 billion tokens.
• Shiba Inu's Telegram Admin account got hijacked.
• TON secured 8-figure funding from MEXC, aiming to turn Telegram into a Web3 powerhouse.
• Hong Kong authorities teamed up for a crypto task force amid the unfolding JPEX drama.
• THORSwap's RUNE dived 9% as operations froze over suspected shady dealings.

FTX's Fallen CEO Faces the Jury

The trial of Sam Bankman-Fried, former CEO of FTX, is underway with SBF facing multiple serious charges, including wire fraud, securities fraud, and money laundering. The trial has attracted significant attention, with a diverse range of spectators in attendance. 

The jury selection process was meticulous to ensure impartiality, and the trial is expected to last up to six weeks. The financial repercussions of FTX's collapse have been significant, with substantial losses suffered by investors and creditors. The trial will shed light on the complexities and risks associated with the crypto industry.  

Ethereum Futures ETFs Gain Momentum

The rise of Ethereum futures ETFs, led by ProShares and VanEck, has garnered significant attention in the financial industry. While the launch trading volume was modest compared to Bitcoin futures ETFs, Ethereum's market cap and price saw a significant boost. The U.S. SEC has shown increased support for Ether futures ETFs, with 15 ETFs from nine issuers currently in the approval process. 

Market players like VanEck and Bitwise have outlined their strategies for growth and investment in Ethereum. However, Ether ETFs have faced challenges in attracting liquidity and institutional investors, and regulatory clarity remains a key issue.  

Ripple's Legal Wins Boost XRP

Ripple has gained legal victories against the SEC, with the court ruling that the SEC failed to provide sufficient proof of controlling legal disputes. Ripple has obtained a license from the Monetary Authority of Singapore, allowing it to operate without transaction limitations in Singapore. 

These developments have positively impacted the price and trading volume of the XRP token. The Ripple-SEC trial is scheduled for April 23, 2024. Legal experts believe the SEC could appeal post-trial. Ripple aims to expand its presence in the Asia Pacific region. The case's outcome may have broader legal implications for the crypto industry.  

Stars Arena's Meteoric Rise and Security Stumble

Stars Arena, a decentralized social media app built on the Avalanche blockchain, gained significant popularity within seven days of its launch. It became the highest-ranked dApp on Avalanche, boosting daily transactions by 186%. However, the platform suffered a hacking exploit, with initial reports of over $1 million in losses, later downplayed to around $2,000. 

The incident led to controversy and accusations of inadequate security. Stars Arena quickly fixed the vulnerability but faced concerns about its future and the need for improved cybersecurity measures. The situation highlighted the risks and challenges of operating in the crypto world.  

Ethereum's Balancing Act of Challenges

Ethereum is facing a double-edged sword of challenges. On one hand, its newly launched Ether ETFs in the U.S. are struggling to gain traction, with less than $2 million traded on the first day. Analysts are pivoting to Bitcoin, citing a lack of institutional demand for Ether. 

On the other hand, JPMorgan analysts have raised concerns about Ethereum's growing centralization, particularly after its transition to a proof-of-stake model. Platforms like Lido control a significant portion of staking, posing risks of single points of failure. Additionally, staking yields have declined from 7.3% to around 5.5%, making Ether less attractive compared to traditional financial assets.

Crypto VC Funding Plummets in Q3

Crypto VC funding in Q3 2023 fell to $2.1 billion, a 36% drop from the previous quarter and nearly 70% lower than Q3 2022. Seed funding accounted for the largest category, with $488 million raised. Strategic financing rounds increased to over 22% of total deals, indicating a shift towards short-term bridge rounds and acquisitions due to market conditions. 

The United States dominated as the main source of venture capital investors. Blockchain infrastructure investments outperformed user-facing applications, but the importance of successful applications is being recognized.  

Ledger Slashes Workforce Amid Market Woes

Ledger, the hardware crypto wallet manufacturer, has announced a workforce reduction of 12% due to "macroeconomic headwinds." The CEO cited the 2022 bear market and the collapse of firms like FTX and Voyager Digital as reasons for the layoffs. Ledger had approximately 734 employees, suggesting around 88 people may have lost their jobs. 

This cost-cutting measure comes just months after Ledger raised over $109 million in funding, and amid similar staff cuts by other crypto firms in response to market uncertainty and regulatory changes.  

Solana Woos Institutional Investors

Solana is stealing the limelight in the crypto world, becoming a darling for institutional investors, according to CoinShares. The asset has seen inflows of $31 million this year, marking its 27th week of inflows. In contrast, Ethereum has been on a downtrend, experiencing outflows for seven consecutive weeks. 

On the other hand, Solana's DeFi ecosystem has surged to a yearly high of over $330 million, defying market headwinds. Both metrics underline Solana's growing appeal and robust performance in a fluctuating market.

Kraken Sets Sights on European Expansion

Kraken, a prominent US-based cryptocurrency exchange, has announced its plans for European expansion through the acquisition of the Netherlands-based exchange Coin Meester B.V. (BCM). The exact financial terms of the deal are undisclosed. This move comes in response to the European Union's implementation of the Markets in Crypto-Assets (MiCA) regulatory framework. 

Kraken has already obtained licenses to operate in Ireland, Italy, and Spain. The acquisition will allow Kraken to enter the Dutch market and provide enhanced services, while BCM's customers will benefit from Kraken's investment and innovations.  

Top Weekly Altcoin Gainers and Losers

Gainers:

Rollbit Coin RLB (+19.67%)

Solana SOL (+18.61%)

Trust Wallet Token TWT (+17.99%)

Render Token RNDR (+16.97%)

Avalanche AVAX (+15.33%)

Losers:

Radix XRD (-16.23%)

Frax Share FXS (-9.95%)

Compound COMP (-9.57%)

Terra Classic LUNC (-9.05%)

THORChain RUNE (-8.49%)

NFT Market Map

OpenSea Simplifies NFT Creation

OpenSea has launched a "no-code hub" tool, streamlining NFT collection creation without the need for third parties. This move aims to regain OpenSea's leadership in the NFT market. 

Despite OpenSea's recent expansions, Ethereum NFT transactions have declined, with a steady decrease in trading volumes since February. OpenSea plans to enhance its Studio, introducing new features like collection pages, a roadmap, and FAQs.

Yuga Labs Invests in Metaverse Expansion

Yuga Labs, the creator of Bored Ape Yacht Club NFTs, has invested in spatial computing startup Hadean to power their Otherside metaverse. Hadean will help scale the game for large player numbers, and with this funding, they will establish a US-based team to collaborate with Yuga Labs. 

The investment amount remains undisclosed but is considered "meaningful." Yuga Labs aims to build unique live experiences and deepen their commitment to Otherside through this long-term investment. They have also partnered with other startups and utilized tech from Improbable to enhance the metaverse.  

This article has been refined and enhanced by ChatGPT.