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- Bitcoin, Ethereum, Cosmos and more Week 42 2024
Bitcoin, Ethereum, Cosmos and more Week 42 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
Kraken Launches kBTC Wrapped Bitcoin
Tesla Moves 11,509 BTC, Sparking Speculations
Robinhood to Launch Bitcoin and Ether Futures Trading
Vitalik's Vision for Ethereum's Surge: 100K TPS
ZetaChain Integrates with Base and Welcomes Coinbase
Elys Network and Agoric Strategic Partnership
Kamala Harris Proposes Crypto Support for Black Men
Polymarket Surpasses $2 Billion in Election Bets
and much more!
Market & Airdrop Update
Before we dive in, make sure to check out our recent Market and Airdrop update:
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Bitcoin Highlights of the Week
Kraken has introduced a new wrapped bitcoin product called kBTC, now available on Ethereum and OP Mainnet. The ERC-20 token is fully backed by BTC held at Kraken Financial on a 1:1 basis. Initially, 100 BTC have been deposited, with 80 kBTC on Ethereum and 20 kBTC on OP Mainnet.
Early partners supporting the launch include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn. Kraken plans to expand compatibility to non-EVM networks. While Kraken’s transparency and strong reputation could challenge WBTC’s market share, dethroning WBTC may still prove challenging.
On October 15, 2024, Tesla moved its entire bitcoin holdings—11,509 BTC worth approximately $765 million—into unknown wallets, after two years of inactivity. This unexpected transfer has ignited speculation about Tesla’s next steps regarding its bitcoin strategy.
In 2021, Tesla made headlines with a $1.5 billion bitcoin purchase and briefly considered accepting bitcoin for vehicle payments. While some believe the move could signal an imminent sale, others argue that Tesla might be repositioning for security purposes. Tesla’s upcoming Q3 financial results on October 23 may offer more clarity.
The FBI has arrested Eric Council Jr., a 25-year-old from Alabama, for allegedly hacking the U.S. Securities and Exchange Commission’s X account in January. The hack led to a false tweet claiming the approval of bitcoin spot ETFs, causing a temporary surge in bitcoin’s price.
Council reportedly used a "SIM swap" to gain access to the account and was paid in bitcoin by unknown accomplices. This incident occurred just one day before the actual ETF approval, which has since attracted billions in investments. The case highlights the vulnerability of social media accounts in financial market manipulation.
Italy is set to increase the capital gains tax on bitcoin and other cryptocurrencies from 26% to 42%, according to Vice Economy Minister Maurizio Leo. This increase will apply to gains above €2,000, a change from the current 26% rate implemented in 2023. The hike is intended to generate additional revenue to support families, youth, and businesses.
Additionally, Italy plans to crack down on tax evasion by limiting cash transactions. This move aligns with global trends but may discourage crypto investment and drive capital to more tax-friendly countries.
Since 2020, MicroStrategy's stock has surged by 1,540%, far outpacing the S&P 500's 111% growth over the same period. This remarkable performance highlights the company's strategic focus on Bitcoin, positioning it as one of the first publicly traded firms to hold Bitcoin on its balance sheet.
Despite its substantial gains, analysts caution that MicroStrategy may not qualify for an S&P 500 listing due to its profitability challenges. However, the stock’s momentum remains strong, driven by increased retail interest in leveraged Bitcoin ETFs.
Ethereum Highlights of the Week
Kraken has introduced an ETH restaking feature through its integration with EigenLayer, enabling users outside the U.S. to restake their staked ETH directly from Kraken’s platform. This service makes restaking, previously more accessible only to on-chain users, available to a broader audience.
Clients can earn additional rewards by participating in Actively Validated Services (AVS) on Ethereum. Kraken’s subsidiary, Staked, will act as the validator for restaked ETH. This integration simplifies the process for less technical users, potentially boosting EigenLayer’s adoption among everyday investors seeking increased staking rewards.
An Arbitrum DAO member has proposed recalling $120 million worth of tokens from the Gaming Catalyst Program (GCP) due to missed deadlines. The GCP was designed to drive growth in Arbitrum's gaming ecosystem but has faced criticism for its slow progress.
The proposal highlights a failure to meet initial goals, including issuing grants and setting up communication channels. Despite this, Offchain Labs, Arbitrum's developer, has defended the delays, citing the complexity of setting up the program and ongoing biweekly status calls.
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Base has surpassed Arbitrum to become the leading Ethereum Layer 2 (L2) by total value locked (TVL), now holding $2.49 billion. This places Base just behind Ethereum, Tron, Solana, and BNB Chain in overall blockchain rankings. Much of Base’s growth is driven by MetaDEX Aerodrome, which accounts for over $1.35 billion of its TVL.
Additionally, Base leads in user activity with 1.35 million daily active addresses, making it the most active L2. Backed by Coinbase’s marketing power, Base is poised to continue its dominance in the L2 space.
Robinhood has confirmed plans to support bitcoin and ether futures trading as part of its broader rollout of advanced trading tools, announced during the HOOD Summit. This follows earlier reports of the company's intention to offer these futures, which include Bitcoin Futures, Micro Bitcoin Futures, Bitcoin Friday Futures, Ether Futures, and Micro Ether Futures via the CME.
The rollout will occur in the coming months. Additionally, Robinhood is launching the “Legend” desktop trading application for active traders. Following this announcement, Robinhood's stock rose by 2.8% in pre-market trading, reflecting its 111% gain year-to-date.
Vitalik Buterin has unveiled ambitious goals for Ethereum's next phase, known as "The Surge," targeting over 100,000 transactions per second (TPS) across Ethereum's mainnet and layer-2 solutions. Emphasizing the need for interoperability, Buterin stated that Ethereum should function as a unified ecosystem rather than a collection of disparate blockchains.
While acknowledging the challenges posed by Ethereum's rollup-centric roadmap, he highlighted the importance of developing trustless rollups and improving the user experience across layer-2 networks. Buterin also discussed scaling solutions for the base chain and suggested enhancing gas pricing strategies to maintain decentralization as demand increases.
Cosmos Highlights of the Week
ZetaChain has announced its integration with the Base network, enhancing its mission to create a universal blockchain that connects multiple assets, including Bitcoin, Ethereum, and Solana.
Users can now access Universal Apps on ZetaChain without switching networks, enabling seamless transactions like sending USDC from Bitcoin to Base or purchasing NFTs across chains. Additionally, Coinbase has expanded its support for ZetaChain, allowing users to stake ZETA through Coinbase’s validator, access ZetaChain on Coinbase’s mobile apps, and earn ZETA through upcoming Learning Rewards.
MilkyWay’s inaugural edition of “MILKIN’ IT” highlights Drop, a groundbreaking cross-chain liquid staking protocol that recently launched its mainnet, enhancing liquidity across the Interchain. MilkyWay aims to empower builders by addressing challenges like fragmented crypto-economic security through a customizable staking platform.
Drop’s mainnet introduces dATOM, a liquid staked ATOM secured by Interchain Security, leveraging advanced technology to provide scalable, trust-minimized staking services. The collaboration also features dTIA, a liquid staked Celestia token, which diversifies staking options for Actively Validated Services (AVSs).
Paxos has introduced Wrapped Lift Dollar (wUSDL), a yield-bearing stablecoin, to the Injective ecosystem, allowing users to earn yield while utilizing the asset across various DeFi protocols. Backed by short-term treasury bills, wUSDL provides users with daily dividends directly in their wallets.
Unlike traditional stablecoins, wUSDL’s value increases over time, eliminating the need for rebasing. This wrapped asset can serve as collateral for trading on decentralized exchanges and can be converted back to USDL on Ethereum.
Elys Network has partnered with Agoric to enhance cross-chain interactions and simplify user experiences. Agoric's newly launched Orchestration API enables seamless multi-chain application development, facilitating faster USDC transfers on the Noble blockchain.
This collaboration reduces the complexity of managing multiple wallets and transactions for users, allowing simplified operations with just one transaction. Additionally, the API enhances liquid staking functionalities, automating processes that typically require navigating multiple platforms.
Osmosis has launched Osmosis Pay, powered by Cypher HQ, allowing users to spend their assets on everyday purchases from coffee to lab supplies using the VISA network. With support for over 40 million merchants across 140 countries, users can fund their Osmosis Card with assets like USDC and USDY, with more options coming soon.
The card is compatible with Apple Pay and Google Wallet, offering a virtual card for online shopping and a sleek physical card for in-store transactions. Enhanced security features include 3D Secure, customizable controls, and international payment management to ensure fund safety.
Other Highlights of the Week
U.S. Vice President Kamala Harris has announced plans to support a cryptocurrency regulatory framework aimed at protecting Black men investing in digital assets as part of her "Opportunity Agenda for Black Men."
The proposal emphasizes the potential of new technologies to enhance access to banking and financial services, noting that over 20% of Black Americans have owned crypto. Harris's plan includes initiatives like one million forgivable loans for Black entrepreneurs and a focus on legalizing recreational marijuana.
Polymarket has reached a significant milestone, surpassing $2 billion in bets for the 2024 U.S. presidential election, doubling its previous record in less than a month. Donald Trump leads the betting odds with a 62.3% chance of winning, amassing $608 million in betting volume, while Kamala Harris trails at 37.5% with $405 million.
The platform's monthly betting volume soared to $1.14 billion in October, marking a 113.7% increase from September. This growth highlights the rising interest in prediction markets, although concerns over potential manipulation of Trump’s market could impact Polymarket's credibility as election day approaches.
Siam Commercial Bank (SCB) has officially launched a stablecoin-based service for international payments, marking Thailand's first use of stablecoins in traditional cross-border remittances.
Following its graduation from the Bank of Thailand's regulatory sandbox, SCB's new offering aims to enhance transaction efficiency by eliminating pre-funding requirements and reducing operational costs, allowing users to transact in local currencies. The bank partnered with Lightnet and Fireblocks to address infrastructure and custody needs.
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