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- Bitcoin, Ethereum, Cosmos and more Week 48 2024
Bitcoin, Ethereum, Cosmos and more Week 48 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
Cantor, Tether Partner for $2B Bitcoin Lending
Bitwise Files for 10 Crypto Index Fund ETF
Starknet Introduces Phase 1 Staking on Ethereum L2
Ethereum Reclaims USDT Dominance
SwissBorg Adds $INJ Staking to Earn
Rivalz AI Collaborates to Advance World Abstraction
UK Targets 2026 for Crypto Regulation
MicroStrategy's Bitcoin Bank Strategy to Boost Market Cap
and much more!
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Bitcoin Highlights of the Week
Cantor Fitzgerald is collaborating with Tether on a $2 billion Bitcoin lending initiative, enabling clients to borrow dollars against Bitcoin collateral. This strategic move aims to boost liquidity as cryptocurrency adoption grows.
The announcement aligns with Cantor CEO Howard Lutnick's transition to U.S. Commerce Secretary under President-elect Donald Trump, with Lutnick set to divest his Cantor interests to meet ethics regulations. Cantor already manages most of Tetherâs $132 billion reserves and holds a 5% stake in the stablecoin issuer. This partnership signals Wall Streetâs increasing confidence in crypto-backed financial instruments.
Bitwise has filed for an ETF based on its 10 Crypto Index Fund, aiming to provide investors indirect exposure to top cryptocurrencies. The fund, launched in 2017, holds 75.14% Bitcoin and 16.42% Ether, alongside Solana, XRP, Avalanche, and others, with $1.4 billion in AUM.
Coinbase Custody manages the crypto assets, while BNY Mellon oversees cash holdings. The SEC has yet to decide on the application. Bitwise has also pursued ETFs featuring spot Bitcoin, Ether, and Solana, capitalizing on a potentially pro-crypto U.S. administration following the recent election, signaling expanding institutional crypto adoption.
Brazilâs Congressman Eros Biondini has introduced a bill to allocate up to 5% of the countryâs international reserves to Bitcoin, creating the Strategic Bitcoin Reserve (RESBit). The initiative aims to diversify national assets, shield the economy from geopolitical risks, and boost leadership in the digital economy.
If passed, Brazil could purchase up to $3 billion in Bitcoin, supporting its digital currency, Drex, and advancing blockchain education. Inspired by nations like El Salvador and Bhutan, Brazilâs move could solidify its role in global financial innovation and encourage broader Latin American Bitcoin adoption, despite challenges like volatility and political resistance.
The Canton of Bernâs parliament has approved a motion to explore Bitcoin mining as a solution to utilize surplus energy and stabilize its electricity grid. Passed by an 85-46 vote, the initiative tasks the government with identifying unused energy sources, partnering with Swiss Bitcoin mining firms, and assessing its potential to balance energy supply.
Proponents highlight economic and renewable energy development opportunities, drawing inspiration from Texas, where Bitcoin miners collaborate with grid operators. Despite government resistance citing energy concerns, this move positions Bern as a potential hub for innovative Bitcoin strategies.
Marathon Digital (MARA) acquired 6,474 Bitcoin through a $1 billion convertible notes offering, as announced on Nov. 27. The purchase includes an initial acquisition of 5,771 BTC at an average price of $95,395 per coin, followed by an additional 703 BTC. MARAâs Bitcoin treasury now holds 34,797 BTC, valued at approximately $3.3 billion.
Taking cues from MicroStrategy, MARA plans to use $160 million from its remaining funds to buy more Bitcoin during price dips. This move underscores the growing trend of corporate debt-financed Bitcoin acquisitions, aimed at leveraging market opportunities.
Ethereum Highlights of the Week
Starknet has launched its initial staking phase, enabling STRK token holders to enhance network security and functionality. Solo staking requires a 20,000 STRK minimum, while delegation allows broader participation. This phased rollout begins with validators running nodes and staking contracts, advancing to block validation over time.
StarkWare CEO Eli Ben-Sasson highlighted its decentralization potential, emphasizing gradual implementation for stability. The staking mechanism will eventually support governance and community control. Starknet recently demonstrated scalability by reaching 857 transactions per second during stress tests.
Flashbots has launched BuilderNet, a decentralized block-building network designed to address Ethereum's centralization and censorship concerns. Currently, Beaverbuild and Titan Builder produce 88% of Ethereum blocks, raising worries about systemic chokepoints and exclusive order flow deals.
BuilderNet distributes block-building tasks across multiple operators, ensuring decentralization and preventing rent extraction from users. By redistributing maximal extractable value (MEV) to users and compensating builders through a "refund rule," it disrupts the centralized block-building process.
From November 22-27, spot Ether ETFs saw $225 million in net inflows, significantly surpassing the $35 million recorded by Bitcoin ETFs. This surge coincided with a nearly 8% price rally for Ether, pushing its value above $3,590.
The rally followed a key legal victory for Ethereumâs decentralized finance (DeFi) platform, Tornado Cash, and news that Paul Atkins might replace Gary Gensler as SEC chair, signaling a potentially more crypto-friendly regulatory environment. Meanwhile, Bitcoin ETFs had a record month in November, with over $6.2 billion in inflows despite a slight dip in Bitcoinâs price.
Uniswap reached a record $38 billion in monthly volume across Ethereum Layer 2 networks in November, surpassing its previous high by $4 billion. The surge is attributed to increasing demand for assets and stablecoins within the DeFi ecosystem, signaling a possible Ethereum outperformance.
Arbitrum led with $19.5 billion, while Base followed at $13 billion. This uptick is seen as part of a broader DeFi renaissance, with rising on-chain yields and a growing ETH/BTC ratio. Uniswapâs native UNI token has risen by over 42%, reflecting the increased activity, outperforming other decentralized exchange tokens.
On November 21, Ethereum surpassed Tron as the top blockchain for Tether (USDT), marking its first reclaim of the position since August 2022. Ethereum's USDT supply increased by 9.3%, reaching $60.3 billion, while Tronâs dropped by 1.5%, totaling $58.1 billion.
This shift comes as USDTâs overall supply hits an all-time high of $132.9 billion, signaling potential bullish market conditions. Ethereum continues to be favored for tokenizing real-world assets, while Tron remains popular for its low fees and use in inflation-impacted regions. Ethereum also leads in USDC dominance, securing 67.5% of USDCâs market cap.
Cosmos Highlights of the Week
SwissBorg now supports staking for Injective ($INJ) through its SwissBorg Earn feature. INJ token holders can stake their assets with ease using a seamless one-click solution, all within the SwissBorg app.
Injective, known for its robust financial applications like derivatives, decentralized exchanges (DEXs), and DeFi protocols, operates as a high-performance Layer 1 blockchain offering efficient and scalable solutions. This integration enhances accessibility for INJ staking, reinforcing Injective's position as a leader in decentralized finance.
Osmosisâ Top-of-Block auction mechanism, introduced in the v25 upgrade, has generated nearly $60,000 in proceeds. Powered by Skip Protocolâs Block SDK, this innovative feature enhances transaction efficiency by segmenting blocks into âlanesâ for specific transaction types.
Users can now bid for transaction priority using AuctionTx bundles, with strict parameters like a $1 minimum reserve fee. Revenue allocation includes 95% for community initiatives and 5% for validators. The mechanism improves arbitrage speed, pricing, and transaction filtering. Future plans include zero-fee lanes for governance and staking rewards, fostering network inclusivity and engagement.
Rivalz AI is integrating OCY DePIN and ADCS technologies in collaboration with Kyve Network, Orange Protocol, and Laika AI to drive progress toward World Abstraction. This strategic alliance emphasizes the importance of diverse data and synergistic partnerships in AI development.
By leveraging these cutting-edge tools and technologies, Rivalz AI aims to enhance its ecosystem, ensuring robust and scalable growth for AI agents in a rapidly evolving digital landscape.
Persistence One integrates Botanixâs Spiderchain into its decentralized BTC swapping platform, uniting fragmented Bitcoin variants across networks. Spiderchain, a Proof-of-Stake Layer 2 solution on Bitcoin, employs decentralized multisigs for secure BTC staking and synthetic Bitcoin creation.
Its innovative design allows transactions to inherit Bitcoin's security and immutability without altering the Bitcoin Core code. With over 1.6 million transactions and 336,000 unique wallets, Spiderchain showcases Botanixâs EVM compatibility, enabling Ethereum-like applications on Bitcoin.
Sui is unlocking Bitcoin's $1.9 trillion liquidity by integrating the Babylon bitcoin staking protocol, enhancing its DeFi ecosystem with lending, borrowing, and liquidity services. Unlike centralized wrapped Bitcoin solutions, Babylonâs trustless, non-custodial system ensures user control and security while enabling native Bitcoin use without intermediaries.
Users earn staking rewards and receive liquid staking tokens (LSTs) on Sui, which can be deployed across DeFi protocols. Supported by infrastructure provider Cubist, this integration boosts Suiâs TVL growth by 80% over 30 days, with top DeFi platforms preparing LST adoption.
Other Highlights of the Week
The UKâs Financial Conduct Authority (FCA) aims to establish a comprehensive cryptocurrency regulatory framework by 2026, focusing on areas like stablecoins and staking. With input from crypto exchanges, banks, and regulators, the initiative seeks to provide clarity to the growing UK crypto market, where 7 million adults now own digital assets.
While the move could offer much-needed oversight, the 2026 timeline raises concerns that it may lag behind rapidly evolving technologies like zero-knowledge proofs and decentralized identities, potentially leading to outdated policies. The success of this initiative will depend on balancing innovation with effective regulation.
MicroStrategyâs plan to become a de facto âBitcoin bankâ could drive its market cap to $135 billion, according to analysts from Bernstein. By targeting a $600 share price, the software company could see a 42% increase in its current $95 billion valuation.
With 386,700 BTC, making it the largest corporate Bitcoin holder, MicroStrategy continues its aggressive strategy of issuing debt to acquire more Bitcoin, capitalizing on its long-term value. This strategy positions the company as a leader in Bitcoin adoption, with potential growth to 4% of the total Bitcoin supply in the next decade.
In November 2024, cryptocurrency hackers stole over $71 million, bringing the total value stolen this year to $1.48 billion. While this marks a 15% decrease compared to the previous year, the threat of large-scale attacks remains.
According to Immunefi, the industry continues to be vulnerable, with hackers evolving their tactics to target projects and exploit system weaknesses. The growing value of cryptocurrencies and decentralized finance (DeFi) assets makes the ecosystem an attractive target. Despite the decrease in losses, vigilance and proactive security measures are critical as the industry moves into 2025.
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