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- Bitcoin, Ethereum, Cosmos and more Week 30 2024
Bitcoin, Ethereum, Cosmos and more Week 30 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
China Rate Cuts Cause Market Instability
Ferrari Expands Bitcoin & Crypto Payments to Europe
Ethereum ETFs Launch Amid Market Uncertainty
Ethereum ETF Launch Triggers Sell-Off, Signals Market Shift
USDY Launches on Cosmos via Noble
Cosmos (ATOM) Down 56% Despite Advances
Crypto Reacts to Biden’s Withdrawal
Mark Cuban: Kamala Harris More Crypto-Friendly Than Biden
and much more!
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Bitcoin Highlights of the Week
Bitcoin and broader equities tumbled on Thursday as China's surprise rate cut intensified market instability. The People's Bank of China (PBoC) slashed its one-year medium-term lending facility rate to 2.3%, injecting 200 billion yuan to support a weakening economy. This unexpected move, alongside earlier rate cuts, exacerbated concerns over China's economic health, leading Bitcoin to drop nearly 2% and ether to fall over 5%.
European equity markets also declined, with Germany's DAX and France's CAC both losing more than 1.5%. The steepening of the U.S. Treasury yield curve added to market anxieties. The spread between 10-year and two-year Treasury yields increased, reflecting rising long-term yields and persistent short-term inflation fears. This shift has historically signaled risk aversion, as investors adjust their expectations for Federal Reserve policy and inflationary pressures.
Ferrari will soon accept Bitcoin and other cryptocurrencies at its European dealerships, starting this month. This expansion follows the introduction of crypto payments at its U.S. dealers last year. The rollout, which Ferrari plans to complete by the end of July, will be facilitated through its partnership with BitPay, which converts Bitcoin into fiat currency to mitigate volatility.
The move is aimed at offering more flexibility and convenience to customers and aligns with the growing trend of mainstream adoption of cryptocurrencies. This initiative reflects Ferrari's strategy to cater to its tech-savvy, high-net-worth clientele and reinforces the legitimacy of cryptocurrencies as a viable payment method.
Proton has introduced early access to its new Proton Wallet, a self-custodial Bitcoin wallet featuring end-to-end encryption. This open-source wallet is designed for enhanced security, incorporating advanced features like 2FA and Proton Sentinel to protect users from cyber threats.
It supports Bitcoin transactions in over 150 countries and integrates seamlessly with Proton Mail, allowing users to send Bitcoin directly to other Proton accounts. Currently available only to Proton Visionary and Lifetime users, the wallet is set to expand its public access soon, enhancing Proton's suite of privacy-focused tools. This launch marks a significant addition to Proton's offerings, aligning with its mission to provide secure, privacy-oriented solutions.
Bitcoin miner MARA has invested an additional $100 million in Bitcoin, raising its total holdings to over 20,000 BTC, nearly 0.1% of Bitcoin’s total supply. This acquisition reflects MARA's strategy to adopt a full "HODL" approach, retaining all mined Bitcoin and making periodic purchases to capitalize on favorable market conditions.
The recent purchases, estimated to be around 1,500 BTC, were made at prices between $54,000 and $68,000. MARA's CFO Salman Khan highlighted that the company strategically benefited from current market conditions, while the CEO, Fred Thiel, emphasized Bitcoin's value as a reserve asset. MARA, formerly known as Marathon Digital, plans to continue this strategy, leveraging its balance sheet and capital markets for future operations.
OKX has introduced "OKX Racer," a Telegram mini-app that invites users to guess short-term Bitcoin price movements in five-second intervals. This move marks OKX as the first major centralized crypto exchange to develop a Telegram mini-app, joining the growing trend of interactive, blockchain-linked games on the platform. Players can predict whether Bitcoin’s price will rise or fall, earning points and rewards for accurate guesses. The game also offers referral incentives and in-game upgrades.
The launch of OKX Racer aligns with Telegram's expanding blockchain initiatives, including plans for a mini app store and web3 support. As Telegram evolves into a hub for crypto engagement, OKX’s game aims to capitalize on this trend, enhancing user interaction and participation within the crypto community.
Ethereum Highlights of the Week
Spot Ethereum ETFs have officially launched, with major players like BlackRock, Fidelity, and Grayscale entering the market. This debut follows months of SEC deliberation and informal approval in May. Nine ETFs are now available, managed by firms with over $15 trillion in assets. Despite initial excitement and a brief surge in Ether’s price, some analysts remain skeptical about immediate impacts.
While Ethereum ETFs could potentially boost Ether's value, especially with predictions of a 60% rally, others caution that expectations may be overly optimistic, given the complex regulatory landscape and varied market sentiment. The launch of Ethereum ETFs reflects a significant step in mainstream adoption, driven by major financial institutions embracing crypto assets.
An Ethereum Foundation-associated wallet has moved 92,500 ETH, valued at approximately $290 million, for the first time since 2017. The transfer, recorded on July 25, has sparked speculation due to the funds' long period of inactivity.
Blockchain analytics firm Arkham Intelligence reported the transaction, although it remains unclear if the Ethereum Foundation directly orchestrated the move. The wallet's previous lack of movement has led to widespread curiosity and analysis within the crypto community, given the substantial value and the timing of the transfer.
The debut of Ethereum spot ETFs, anticipated with high hopes, has led to an unexpected sell-off and price drop for Ether. According to 10x Research, this reaction follows a pattern seen in previous crypto ETF launches, including Bitcoin.
The report highlights that despite expectations of capturing significant inflows, Ethereum ETFs have faced substantial outflows, with Grayscale’s Ethereum Trust alone losing $807 million in the initial days. This sell-off is compounded by seasonal market weaknesses and a broader skepticism about Ethereum’s long-term value compared to Bitcoin, signaling potential further declines in Ether’s price.
BlackRock's head of digital assets, Robert Mitchnick, highlighted at the Bitcoin2024 conference that client interest in crypto ETFs is overwhelmingly focused on Bitcoin and Ethereum. According to Mitchnick, BlackRock does not anticipate a significant demand for ETFs beyond these two digital assets.
This sentiment aligns with the asset manager's offerings, including the popular iShares Bitcoin Trust (IBIT) and the recently launched iShares Ethereum Trust ETF (ETHA), which have garnered substantial assets under management. Contrasting views come from Franklin Templeton, which expresses optimism for additional crypto ETFs, such as a potential Solana product.
On their second trading day, U.S.-based spot Ethereum ETFs experienced net outflows of $113.3 million, largely due to significant withdrawals from Grayscale’s Ethereum Trust. Seven of the eight new ETFs saw net inflows, with Fidelity’s Ethereum Fund leading at $74.5 million, followed by Bitwise’s Ethereum ETF at $29.6 million.
However, Grayscale’s Ethereum Trust, recently converted to a spot fund, saw $326.9 million in outflows, impacting the overall performance of the ETFs. Since its conversion, Grayscale’s Ethereum Trust has faced $811 million in outflows, indicating a sell-off of over 9% of its holdings. The market reaction to the new ETFs mirrored past trends seen with Bitcoin ETFs, where initial trading days also showed net outflows.
Cosmos Highlights of the Week
Ondo Finance and Noble have introduced USDY, a yield-bearing stablecoin, to the Cosmos ecosystem. USDY, backed by short-term U.S. Treasuries and bank deposits, is the first native stablecoin offering yield within Cosmos, accessible across over 90 application-specific blockchains. This launch positions USDY to enhance DeFi projects on Cosmos, including Injective, Osmosis, Kujira, and Pyth, with a total value locked surpassing $300 million.
On Injective, USDY will be integrated as a spot asset and collateral for perpetual markets on Helix and Hydro, enabling yield generation through on-chain trading. Noble, known for its role in issuing Circle’s USDC on Cosmos, continues to expand its tokenized asset offerings, including recent collaborations with Hashnote for additional yield-focused projects.
Cosmos (ATOM) has experienced a 56% decline in value since March, trading at approximately $6.27. This downturn contrasts with notable advancements, including the v18.1 upgrade and significant integrations like Aviatrix’s web3 transition on Cosmos. Despite these promising developments, which include a new NFT marketplace and high-profile partnerships, the token's performance remains sluggish.
The Cosmos ecosystem continues to innovate with upgrades such as CosmWasm and Fee Market integration, alongside AI-driven initiatives. Despite these efforts to enhance functionality and user engagement, ATOM's ongoing bearish trend raises concerns. Investors are hopeful that these advancements will eventually lead to a price rebound, though current market sentiment remains cautious.
Aviatrix, a popular online crash game with over 100,000 daily players, is making its web3 debut on the Cosmos ecosystem. This move, powered by Scorum, marks a major milestone in blockchain gaming, as Aviatrix becomes one of the first high-profile casino games to integrate with Cosmos. The transition promises a unified experience through shared liquidity between web2 and web3 versions and introduces Scorum Coin (SCR) into the gameplay and staking processes.
An accompanying NFT marketplace will allow players to trade over 1.5 million customizable planes. Scorum, a blockchain pioneer in on-chain entertainment, supports this innovative venture with its evolution into a Layer-1 blockchain within Cosmos. The integration aims to bridge web2 and web3 gaming, enhancing both player experiences and token utility.
Mountain Protocol has introduced USDM, the first yield-bearing stablecoin, to the Injective ecosystem. Backed by treasury bills, USDM offers users the opportunity to earn a 5% annual yield, setting it apart from conventional stablecoins. This integration enables USDM to be used within Injective’s decentralized applications (dApps), including as margin for derivatives, marking a significant innovation in on-chain finance.
The partnership between Mountain Protocol and Injective represents a new phase in blockchain financial services, with USDM providing secure, yield-bearing assets for various applications. This development reflects Injective’s commitment to advancing financial technology through novel asset tokenization and use cases.
Elys Network has launched the second phase of its testnet, marking the final stage before the mainnet release. Starting July 23, 2024, participants can engage in various on-chain activities like swapping, adding liquidity, and staking. Open to all, including those who missed Phase 1, this phase encourages daily interactions and social media connections through Discord and Twitter.
Specific criteria for participation will be revealed later to ensure genuine engagement and filter out fraudulent activities. Phase 2 continues the NFT rewards system from Phase 1, offering Tier 1 and Tier 2 NFTs based on participation. The rarest NFTs will be distributed at the end of the testnet, with trading options available on the Stargaze marketplace.
Other Highlights of the Week
Joe Biden’s announcement to exit the 2024 presidential race sparked significant onchain activity, particularly on Polymarket. Election-related contracts saw a surge, surpassing $28 million in daily volume and accumulating over $500 million overall. Polymarket data indicates Kamala Harris as the favored candidate for the Democratic nomination, while Michelle Obama trails significantly.
Biden’s departure led to a sharp 60% drop in the value of the BODEN token, whereas Trump-themed memecoins, TREMP and DJT, experienced gains. Conversely, the Kamala-themed KAMA token surged by 56%, with Michelle Obama’s OBEMA leading with a 100% gain. The abrupt shift in the political landscape has intensified market speculation, with crypto investors adjusting their positions accordingly.
Mark Cuban has suggested that Kamala Harris might be significantly more receptive to cryptocurrency and technology than President Joe Biden. In a recent interview, Cuban hinted that Harris, currently gearing up for the Democratic National Convention, could be a strong advocate for crypto and technological innovation, potentially implementing favorable policies.
Reports indicate that Harris’s campaign team is actively consulting with crypto industry leaders to shape her stance on these issues. This outreach is part of a broader strategy to attract support from tech executives and venture capitalists, potentially boosting her appeal within the tech sector and leading to substantial campaign contributions.
India's Narcotics Control Bureau (NCB) has intensified efforts to combat drug trafficking by closely monitoring cryptocurrency transactions on the darknet. During a Parliamentary session, Minister of State for Home Affairs Nityanand Rai outlined India's strategy, including the formation of a special task force dedicated to tracking suspicious crypto transactions linked to drugs.
The NCB has also initiated digital forensics training to enhance its capabilities. This crackdown follows an increase in drug seizures involving cryptocurrencies and is part of a broader 13-point action plan to tackle narco-terrorism and drug trafficking across India.
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