Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | September 7 - September 13, 2024

Crypto Weekly Market Update

Table of Contents

Market Movements and Trends

• Crypto Weekly Recap

Coinbase and Token Updates

• Coinbase's cbBTC Nears $100.3M Market Cap
• XRP Trust Launch Boosts Ripple's Market Value
• Friend.tech Token Drops After Control Transfer
• BitGo Expands WBTC to Avalanche and BNB Chain

Exchange Security Breaches

• Indodax Faces $22M Hack Amidst Security Concerns

Blockchain and Staking Developments

• Binance Lists POL Token Amid Polygon Labs Investment
• Solana's Liquid Staking Poised for Major Growth
• Starknet Staking Vote Passes with 98.94% Support

Regulatory and Legal News

• ParaFi Tokenizes $1.2B Fund Amid RWA Market Surge
• eToro Settles with SEC, Limits US Crypto Trading
• Tether and Tron Fight USDT-Linked Crimes with New Unit
• Digital Chamber Pushes Congress for NFT Regulation Change

NFT and CryptoPunk Market

• DeGods NFTs Secure Lifetime Revenue Share Partnership
• Trader Acquires $1.5M CryptoPunk for 10 ETH in Buyout

Crypto Weekly Recap

Bitcoin:

• Weekly performance: +5.94%
• As of Friday, BTC approached $60K again after failing to break it earlier in September.
• BTC ETFs saw a $140.74M weekly inflow after two weeks of outflows (-$706.19M and -$277.12M).
• This week’s BTC rise was steady, without sudden surges.
• The first half of the week was bearish, with investors pulling nearly $1.2 billion from 12 Bitcoin ETFs by September 6.
• BTC didn’t show upside until Monday night, rising above $57.8K.
• The US election debate didn’t affect BTC price, but it dropped to $55.6K after the CPI release on Wednesday.
• CPI data showed inflation slowing, with a 0.2% monthly and 2.5% yearly increase, the smallest since February 2021, shifting market expectations for the Fed’s September 18 meeting.
• The ECB cut rates by 0.25% for the second time in 2024, ahead of the Fed, due to weak growth and inflation nearing 2%.
• MicroStrategy bought 18,300 BTC for $1.11 billion at $60,408 per BTC, raising their total holdings to 244,800 BTC worth $14 billion.
• Long-term holders continued accumulating capital while short-term holders sold, dropping STH holdings below 18%, according to CryptoQuant.
• ARK Invest identified critical support levels for BTC at $52K and $46K, with weakness raising concerns over the $46K level.
• Investors shifted to gold, which hit a new record high, as Bitcoin lagged behind in the current risk-averse environment.

Ethereum:

• Weekly performance: +2.5%
• ETH surged past $2.4K on Friday but remains half its 2021 value of $4.8K, with whales slowing accumulation since July (Glassnode).
• Co-founder Vitalik Buterin & the Ethereum Foundation’s sales added to bearish sentiment, but he clarified the sale was from an automated cowswap twap order set on Aug 29.
• Vitalik stressed his focus on layer-2 decentralization, saying he'd only recognize scaling solutions at "stage 1" of his scale.
• U.S. ETH ETFs saw a fifth consecutive week of outflows, totaling -$176.78M, with -$14.44M this week.
• This week had only one day of positive inflow ($11.44M), with the rest being outflows.
• ETH was more volatile than BTC but had smaller weekly gains.
• Coinbase cited Ethereum's unique market structure, investors shifting to altcoins, and network inactivity as reasons for underperformance.
• David Duong from Coinbase said ETH needs a catalyst to spark interest, with Total Value Locked dropping and institutional focus on bitcoin products due to confusion about Ethereum's supply and utility.

Altcoins:

• PayPal and Venmo added Ethereum Name Service for smoother transactions (Source)
• SunPump introduced a ranking feature as meme coin prices soared (Source)
• Tokocrypto, owned by Binance, secured a full Indonesia license for its exchange (Source)
• Sonic launched wallet credit scores without KYC, achieving 720ms finality (Source)
• BBVA expanded its crypto services by integrating the USDC stablecoin (Source)
• Ether.fi partnered with Scroll for its L2 settlement and announced a crypto credit card (Source)
• Pantera and ParaFi bought FTX Metaplex tokens along with other investors (Source)
• Kujira formed an alliance to build an app layer on THORChain after merging with Rujira (Source)
• FET and TAO surged following the iPhone 16 AI feature announcement (Source)
• Fractal launched its Bitcoin sidechain, but faced criticism over pre-mining (Source)
• Merlin Chain and BitcoinOS unveiled a ZK-powered bridge to connect with Bitcoin (Source)
• Paxos expanded to Arbitrum, enhancing the Ethereum Layer 2 ecosystem (Source)
• Standard Chartered introduced Bitcoin and Ether custody services in the UAE (Source)
• Wintermute repurchased NEIRO on Ethereum, acting as a market maker (Source)
• Nansen expanded its staking services across 20+ blockchains after acquiring StakeWithUs (Source)
• Sony Bank and Soneium launched Japan’s first yen-linked stablecoin (Source)
• A Monero expert debunked Chainalysis' claim that XMR transactions could be traced (Source)
• EigenLayer announced the upcoming launch of restaking rewards for ARPA (Source)
• DIA revealed ‘Lumina’ to shake up trustless oracle networks (Source)
• Atomic Wallet won dismissal of the $100M class-action lawsuit over jurisdiction (Source)
• Trump meme coins fell after the debate, while Harris coins gained traction (Source)
• Animoca Brands Japan joined Orbs Layer 3 network as a guardian node operator (Source)
• Nubank halted trading of its native crypto token following a 97% price plunge (Source)
• India and Nigeria led global crypto adoption, with Indonesia as the fastest-growing market (Source)
• Osmosis expanded beyond its Cosmos roots by launching the cross-chain token portal Polaris (Source)
• Dune users can now access on-chain data for Polkadot’s 50+ parachains (Source)
• AI-focused ASI Alliance aimed to onboard Cudos as its fourth member (Source)
• Caroline Ellison requested time served due to cooperation with the US government (Source)
• Ethervista transactions froze after a record start (Source)
• PancakeSwap introduced a Telegram bot for predicting BNB prices (Source)
• The UK granted legal clarity to digital assets with a new crypto bill (Source)
• Kalshi listed election contracts after defeating the CFTC in court (Source)
• Cypherpunk Holdings rebranded to SOL Strategies after going all-in on Solana (Source)
• Pump.fun fee account sold another $1.3M of SOL, bringing total revenue to $95.87M (Source)
• Stablecoins on Layer 2 networks exceeded $10 billion in total value (Source)
• Vega passed a governance vote to shut down its Layer 1 blockchain (Source)
• A Consensys and Hashkey-backed accelerator launched with $50M to support CARV’s data layer (Source)
• Bitget Wallet introduced a tool to help traders find meme coins with 100x potential (Source)
• Worldcoin denied being under investigation in Singapore (Source)
• 1inch Network published a white paper on cross-chain innovation (Source)
• Circle moved its headquarters to New York City (Source)
• Uniswap's CEO denied allegations regarding high deployment costs (Source)
• WeWork founder's climate firm refunded crypto token holders after a failed launch (Source)
• Anchorage Digital Bank and BitGo joined Coinbase to custody 21Shares crypto ETFs (Source)
• YieldNest introduced the first liquid-restaking token on the BNB Chain (Source)
• Raydium launched a burn-and-earn feature for coin creators to lock liquidity (Source)
• Solana apps can prioritize human users with Wormhole’s World ID integration (Source)
• Tada ride-hailing app integrated TON crypto payments for rides in Singapore (Source)
• Kraken responded to SEC allegations, claiming digital assets are not securities (Source)
• ZKSync introduced a governance model on mainnet with token voting and security controls (Source)
• Trump's crypto venture World Liberty Financial announced its launch during the election campaign (Source)
• The Supreme Court of Montenegro expected to rule on Do Kwon's case this month (Source)
• Binance offered a $1M BNB airdrop to users affected by Typhoon Yagi (Source)
• The SEC acknowledged regret for confusion regarding some tokens being classified as securities (Source)
• Prominent listings: 
  • OKX: BasedBrett (BRETT), Simon’s Cat (CAT), Neiro on ETH (NEIRO), Catizen (CATI)
  • Binance: Neiro on ETH (NEIRO), Rocket Pool (RPL) Futures, Hamster Kombat (HMSTR) - 58th Launchpool, Catizen (CATI) - 59th Launchpool
  • Kraken: Popcat (POPCAT)
  • Upbit: Nervos Network (CKB)
  • Crypto.com: Neiro on ETH (NEIRO)
• Fundraising: DRiP (Solana-based NFT creator platform), Huma Finance (tokenised RWA), Blum (Telegram-integrated DEX), OpenEden (tokenised RWA)

Coinbase's cbBTC Nears $100.3M Market Cap

Coinbase's recent launch of cbBTC has led to rapid adoption, reaching a nearly $100.3 million market cap within 24 hours. Supported by actual Bitcoin reserves held by Coinbase, cbBTC offers seamless integration into DeFi, enabling users to provide liquidity and use it as collateral in various protocols. Its circulating supply of 1,720 tokens is split between Base and Ethereum. Despite Justin Sun's criticism, the token's successful adoption and partnership proposals from DeFi platforms like Aave DAO and Solv Protocol highlight its potential industry impact. With increasing interest, cbBTC may pose a challenge to BitGo's WBTC as Coinbase aims to capitalize on its reputation and user base in the evolving on-chain economy.  

XRP Trust Launch Boosts Ripple's Market Value

Grayscale's launch of the XRP Trust fuelled an 8% surge in XRP's value, hitting $0.582, showcasing the cryptocurrency's potential impact on cross-border payments. This new trust aligns with Grayscale's strategic expansion beyond Bitcoin and Ethereum. Additionally, the introduction of the SUI Trust further diversifies the investment opportunities in altcoins, with significant growth and access for accredited investors, bolstering Grayscale's institutional offerings. The potential speculation around an XRP ETF postulates regulatory challenges but hints at broader acceptance in the growing crypto market, indicating a positive trajectory for institutional and individual investors to engage in alternative digital assets.  

Friend.tech Token Drops After Control Transfer

After the transfer of control to Ethereum's null address, Friend.tech's FRIEND token plummeted by 28%, from $0.81 to $0.057, with the market cap also dropping sharply. Despite once thriving, the platform's revenue declined significantly, with total fees of $63.4 million but a drop from $2 million per day to $2,000 daily. The transfer sparked community backlash, fearing project abandonment. The team clarified the move was to secure smart contract fees but not shut down, leading to a temporary 40% token value increase. Yet, declining engagement and deposits reflect a climate of uncertainty and doubt.  

BitGo Expands WBTC to Avalanche and BNB Chain

BitGo expanded Wrapped Bitcoin (WBTC) to Avalanche and BNB Chain using LayerZero’s OFT standard, allowing WBTC to operate across 80+ chains, with a market cap of $8.8 billion. On September 12, 2023, Sky (formerly Maker) proposed removing WBTC as collateral, citing Justin Sun’s potential involvement in its control, raising counterparty risk concerns. SparkLend has $73 million in debt collateralized against WBTC, and legacy vaults hold $127 million in debt. The transition to reduce WBTC exposure is expected to begin by September 26, with alternative Bitcoin-backed assets under consideration.

Indodax Faces $22M Hack Amidst Security Concerns

Indodax, Indonesia's leading crypto exchange, was hit by a $22 million hack, affecting 6.7 million users. The attack involved theft from hot wallets, with losses across various cryptocurrencies including ERC-20 tokens, Polygon, Tron, Bitcoin, and Ethereum. Suspicions point to the Lazarus Group from North Korea, known for previous high-profile crypto crimes. The exchange took immediate action by disabling its services and promising to cover customer losses. Government agencies urged calm, while Indodax offered a monetary giveaway during the outage. With reserves reportedly at $369 million, the incident raises concerns about the broader Indonesian crypto market's stability and security.  

Binance Lists POL Token Amid Polygon Labs Investment

Binance listed Polygon's new POL token, completing the migration from the MATIC token, contributing to a surge in POL’s value post-listing. Meanwhile, Polygon Labs announced its $5 million investment in servers equipped with custom cryptography chips, called VPUs, developed by Fabric. These chips are designed to accelerate zero-knowledge proof generation for Polygon’s AggLayer, aiming to cut the adoption timeline for zero-knowledge technology from several years to months. This collaboration is part of a broader strategy to streamline blockchain interoperability and reduce costs. 

Solana's Liquid Staking Poised for Major Growth

Solana's liquid staking is experiencing substantial growth, with platforms like OKX, Bybit and Binance promoting enhanced incentives, security, and flexibility. Renzo's ezSOL allows users to triple rewards through staking and MEV extraction, while Binance's BNSOL provides staking without lockups. A Bybit Research report predicts Solana's liquid staking could grow from $3.8 billion to $18 billion due to rising retail adoption. Exchange-backed liquid staking tokens (LSTs) such as bbSOL are expected to drive this trend, making DeFi opportunities more accessible. Additionally, Solana's price could rally to $160 if it surpasses key resistance levels.  It came as a wallet linked to FTX unstaked $23.75M in Solana, raising concerns of a potential sell-off. However, the wallet still holds 7.1 million SOL valued at $967M.

Starknet Staking Vote Passes with 98.94% Support

Starknet's governance vote in 2024 approved the STRK token staking, aiming for greater network decentralization. With a staking minimum of 20,000 STRK tokens, a 21-day withdrawal time-lock, and a minting mechanism to balance rewards with inflation, staking is set for late 2024. Snapshot X's decentralized voting platform was utilized for the vote, with 98.94% support. The staking system aims to enhance community involvement and governance, yet only 0.08% of eligible voters participated. Additionally, Starknet plans future governance updates, including decentralizing the sequencer and prover roles in their Layer 2 Ethereum scaling solution.

ParaFi Tokenizes $1.2B Fund Amid RWA Market Surge

ParaFi Capital announced the tokenization of a $1.2 billion fund via Securitize. Meanwhile, the tokenized real-world assets (RWA) market surged to $12 billion in 2024, led by US Treasuries, which grew from $769 million to $2.2 billion due to high interest rates. BlackRock’s BUIDL leads this category. A survey between May 29 and June 13, 2024, found that stablecoins settled $2.6 trillion of value in emerging markets, with use cases like remittances and salary payments. Tether (USDT) dominates the stablecoin market with $118 billion in circulation, primarily on Ethereum's blockchain.

eToro Settles with SEC, Limits US Crypto Trading

eToro settled with the SEC, agreeing to pay $1.5 million and limit US crypto trading to Bitcoin, Bitcoin Cash, and Ethereum after allowing the trading of securities without proper registration. This aligns with the SEC's crackdown on crypto firms. CEO Yoni Assia emphasized the company's commitment to compliance and hopes for a clear US regulatory framework for cryptoassets. Users can close positions or transfer supported coins to the eToro wallet before March 11, 2025, or have remaining assets sold with proceeds credited to their accounts. 3% of the total dollar value of US customers' cryptoassets will be liquidated.  

Tether and Tron Fight USDT-Linked Crimes with New Unit

Tether, Tron, and TRM Labs launched the T3 Financial Crime Unit to combat USDT-linked crimes on the Tron blockchain, which accounts for 45% of illicit crypto transactions. USDT has been a common tool in scams, with Tether freezing over $230 million in 2023. On September 13, 2024, the English High Court ruled that Tether's USDT qualifies as property under English law, enabling its tracing and inclusion in legal trust cases. This ruling followed a crypto scam involving $3.3 million in USDT and USDC, reinforcing growing regulations around digital assets.