Coin360 Daily Dispatch (Apr 16, 2023): Crypto Market Updates & Highlights
Apr 16 2023
Crypto Market Update: US House of Representatives Proposes Regulatory Framework For Stablecoins
Written by Van - Perfected by ChatGPT
The US House of Representatives has published a draft bill proposing a regulatory framework for stablecoins, which puts the Federal Reserve in charge of non-bank stablecoin issuers, such as Tether and Circle. Insured depository institutions seeking to issue stablecoins would fall under the appropriate Federal banking agency supervision. Issuers out of the US would have to seek registration to do business in the country, and failure to register could result in up to five years in prison and a fine of $1 million.
Issuers must maintain reserves backing the stablecoins with US dollars or Federal Reserve notes, Treasury bills, or repurchase agreements. Furthermore, they must demonstrate technical expertise and established governance, as well as the benefits of offering financial inclusion and innovation through stablecoins. The draft bill also includes a two-year ban on issuing, creating, or originating stablecoins not backed by real assets.
This draft bill allows the US government to establish standards for interoperability between stablecoins. The Congress and the White House would support a Federal Reserve’s study about the issuance of a digital dollar, while the Treasury Department would conduct a study regarding “endogenously collateralized stablecoins.”
Former US Treasury Secretary Hank Paulson Warns Of Banking Panic And Global Economic Isolation
Hank Paulson, former US Treasury Secretary, believes that the panic in the banking sector is not over and the first recession since 2007 may be inevitable, and it seems that depositors have pulled out about $1 trillion of the banking system so far this year. Paulson predicts that the traditional forms of borrowing and lending will shift outside of the regulated banking system, which will spark further uncertainty and potential panic. He also states that global economic isolation is now a serious risk for the US, especially with China and a group of economically-aligned countries known collectively as BRICS preparing to develop an alternative currency to circumvent the dollar. Paulson believes that China’s power and relationship with so many other countries should not be underestimated.
Bitcoin Halving Could Fuel a New Rally Ahead of 2024
Bitcoin’s price traded near $30,500 on April 16, with analysts and traders predicting higher levels due to the flat US equities market. Stockmoney Lizards, a cryptocurrency analyst, said the current gains are part of a pre-halving rally that mirrors the 2020 surge of around 320%. The next Bitcoin halving is expected to occur in April or May 2024, when the block reward will fall to 3.125, which is expected to be a bullish sentiment for Bitcoin. The Bitcoin rainbow chart indicates that BTC might have embarked on a new rally ahead of the halving event.
Source: Blockchain Center
However, $30,000 is considered the vital support level for BTC, as not all traders and analysts predict that Bitcoin’s price will continue to rise. The number of Bitcoin addresses holding over 100 BTC decreased significantly, while the number of addresses in profit reached a 16-month high. Trading suite Decentrader cautioned against the decline in large-balance wallets holding BTC, while data showed 1,000+ BTC wallet numbers remaining steady.
Source: Decentrader/ Twitter
Daily ETH Staked Drops by 2.8% as Network Validators Face Missing Credentials
The ETH price has seen a small decline of -0.5% to under \(2,100. Developers have successfully executed the latest Shapella upgrade to [Ethereum](https://coin360.com/coin/ethereum-eth), allowing them to swap out key parts of the network mid-flight. However, 18.5% of Ethereum network validators still don't have the correct validator credentials, meaning that \)596 million cannot be withdrawn from the system unless these credentials are updated.
Following a -487,006 ETH net deposits over the past 24 hours, the amount of ETH staked has dropped by 2.8% within the same period, driving the total ETH on Beacon Chain (including rewards) to 18,656,314.
Source: Nansen
Crypto Investor Makes $2.24 Million Purchase of ARB Post Governance Drama
A proposal to return 700 million ARB governance tokens to Arbitrum’s DAO Treasury was rejected by a large majority of votes. Whales who voted against the proposal argued that the proposal was a “power play” that would delay the Foundation’s ability to support the growth of the Arbitrum ecosystem. Another whale argued that there is a balance needed between advocating for decentralization and preventing progress in the ecosystem.
While the chaos in Arbitrum governance are making waves, a crypto investor who made millions trading Polygon (MATIC) has purchased \(2.24 million worth of Arbitrum (ARB) using 1,057 [ETH](https://coin360.com/coin/ethereum-eth), according to [blockchain](https://coin360.com/glossary/blockchain)\-tracking firm [Lookonchain](https://twitter.com/lookonchain/status/1646782244495970304?s=20). The investor had bought MATIC when it cost just \)0.50 and also profited from trading the token that powers the Magic (MAGIC), crypto staking solution Lido (LDO) and blockchain-based lending platform TrueFi (TRU). The total profit of the trader exceeds $7.3 million, according to Lookonchain.
Aave Expands into zkEVM and Whitelists New Protocols Amid Decline in Health
Aave, the decentralized lending and borrowing protocol, has made updates to its protocol, including venturing into the zkEVM space and whitelisting new protocols. Aave has entered the zkSync Era protocol to attract more users to the protocol and become the premier borrowing platform within the growing zk ecosystem. Aave is also set to whitelist liquidity transport protocol, Stargate, on its ecosystem.
However, the protocol’s health has continued to decline with the fees collected by the network falling by 17.7% over the last month, and the number of active developers working on the protocol falling by 35%, suggesting that new upgrades and updates could take longer than usual to go live.
Source: Token Terminal
DYDX Token Gains Interest Among High-Value Investors Through Accumulation
There are indications of significant action happening with dYdX (DYDX) even though it appeared inactive at first. Large investors, with balances ranging from 100,000 to 1 million tokens, have been steadily accumulating the token since March, indicating a strong interest in the token among high-value investors. This accumulation has led to decreased exchange availability, and many investors are choosing to hold onto their tokens rather than trade them.
Source: Santiment
However, social volume for the token recently experienced a decline, suggesting a lack of discussion and attention around the project. Nonetheless, for whales accumulating the token, this is a strategic opportunity to continue accumulation without attracting too much attention.
Shiba Inu Overtakes Binance USD in Market Cap, Targets Litecoin
Shiba Inu (SHIB) has surpassed Binance USD (BUSD) in market capitalization, moving into the 13th spot on Coin360’s rankings with a market cap of \(6.8 billion as of Apr. 16. The meme coin's next target is [Litecoin (LTC)](https://coin360.com/coin/litecoin-ltc), currently holding the 13th position with a market cap of \)6.9 billion.
The Shiba Inu network has burned almost 250 million tokens, which may increase scarcity and demand, potentially leading to an increase in price. The recent growth of SHIB can be attributed to the upcoming launch of the Shiba Inu Metaverse, a project that aims to expand the utility of the Shiba Inu ecosystem, slated to open by December this year. Additionally, the upcoming launch of the mainnet version of the Shibarium layer-2 solution has created a buzz.
Source: Shibburn
Summary of Market Events and Price Action
As a summary of today’s events and price action in the market, it is crucial to note the following key points:
- BTC near $30,500 as traders hope for further increases
- ETH briefly loses $2,100 while weekend withdrawals flip deposits
- ARB sustains $1.6 whereas whales criticize the latest proposal
- AAVE sees unhealthy fundamentals despite new updates
- DYDX whales show signs of accumulating
- SHIB flips BUSD in market cap
Top Altcoin Gainers and Losers
Gainers:
WOO Network WOO (+26.57%)
Frax Share FXS (+12.01%)
Losers:
Stacks STX (-2.45%)
EOS EOS (-1.89%)
NFT Market Map
Jimmy.eth, who is considered an original member of the Bored Ape Yacht Club (BAYC) and played a significant role in their early growth, left some rare and valuable items through a bidding process. Cirrus, an NFT influencer, suggested that he could have earned even more money if he had waited or negotiated better deals.
Meanwhile, whales keep selling Yuga Labs family collections on Blur, according to Blur dumping bot, which tracked a BAYC whale’s dump of 23 NFTs for 1,235 ETH. Bored Ape Yacht Club, MutantApeYachtClub, and BoredApeKennelClub all see a surge in daily trading volume.
