Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 29, 2024

Bitcoin Price Dynamics and ETF Launches

Bitcoin's price was fluctuating around $42,000 before crossing $43,000. U.S. spot Bitcoin ETFs launch amidst whale accumulation of $3 billion, increasing holdings by 76,000 BTC. New Bitcoin addresses surged 48%, indicating growing investor interest. Market volatility could trigger $1 billion in liquidations. Analysts predict a potential rise to $50,000 by Q1 2024. Upcoming FOMC decisions could impact short-term price movements. USDT supply increase correlates with Bitcoin price rises, suggesting a bullish outlook.

Hong Kong's Stablecoin Regulation and ETF Plans

Hong Kong is swiftly moving to regulate stablecoins, drawing attention from global financial powerhouses. The HKMA's upcoming stablecoin regulatory sandbox is a key step in overseeing the $135 billion market. Concurrently, Harvest Fund Management in Hong Kong seeks to launch the city's first spot bitcoin ETF, reflecting the region's growing role as a digital asset hub and market stabilizer.

FTX's Bitcoin Shorting Amidst Financial Struggles

In a bid to settle sizable debts, FTX has reportedly engaged in high-stakes Bitcoin shorting, raising $4.4 billion through asset sales and Bitcoin derivatives trading. However, this strategy is risky; if Bitcoin's value rises, it may deepen FTX's financial challenges. Complicating matters, FTX's bankruptcy estate is linked to substantial outflows from Grayscale's Bitcoin fund.  

MakerDAO's MKR Experiences Market Fluctuations

MakerDAO's MKR faced volatility after a co-founder's wallet sold 2,235 MKR ($4.5M), causing a 3.39% price drop. Trading volume decreased from $84M to $43M, signaling investor caution. Despite this, net inflows suggest accumulation. MKR's market cap is $1.786B, with a current trading price of $1,952.

Diverse Approaches in Bitcoin ETF Market

In the Bitcoin ETF arena, Fidelity's FBTC ETF witnessed a notable $14.8 million daily net inflow. BlackRock's iBIT ETF holds over 52,000 BTC, valued above $2 billion. In contrast, Vanguard remains wary, avoiding Bitcoin ETFs due to their perceived immaturity and lack of inherent value. Meanwhile, YieldMax has proposed a Bitcoin Options Income Strategy ETF (YBIT), focusing on income generation through a synthetic covered call strategy, indirectly exposing investors to Bitcoin ETPs.

Solana DEX Jupiter Outperforms Ethereum's Uniswap

Solana-based DEX Jupiter surpassed Ethereum's Uniswap in 24-hour trading volume, strengthening Solana's DeFi presence. Solana matched Ethereum's trading volume and outperformed in DEX and NFT metrics. The WEN airdrop drove significant attention, signaling growing liquidity and potential for mainstream adoption. Jupiter's upcoming JUP token airdrop is anticipated to further boost Solana's DeFi ecosystem.  

US Senators' Stance on Cryptocurrency

At least 18 US Senators are pro-crypto, with Republicans Cynthia Lumnis and Ted Burr leading the charge. However, 30 senators oppose crypto, including Elizabeth Warren, who introduced three anti-crypto bills. President Biden and 23 other Democratic senators are against digital assets. Presidential candidates Trump and Kennedy favor crypto.  

Stellar's Delayed Protocol 20 Upgrade

The Stellar Development Foundation delayed the Protocol 20 upgrade due to a bug in the Stellar Core code related to fee-bump transactions for Soroban smart contracts. The decision aims to mitigate potential impacts on applications and services. Protocol 20 will introduce smart contract functionality through Soroban and coordinate with validators to determine a new upgrade date.  

Unibot's UNISOL Token Launch in Solana Ecosystem

Unibot plans to issue UNISOL token in the Solana ecosystem, initially causing concern among UNIBOT holders. However, developers state that UNISOL could boost UNIBOT's value accrual. UNIBOT holders will receive 80% of UNISOL supply. The platform boasts over 20,000 users and $130m in total volume since its January launch, with $74,000 in fees generated on Sunday alone. Unibot's average daily volumes sit around $5.5 million.  

Mintlayer's Bitcoin Layer 2 Mainnet Launch

Mintlayer, a Bitcoin layer 2 sidechain, launched its mainnet, featuring non-Turing complete smart contracts, Atomic Swaps, and a consensus combining PoW and PoS. With an initial supply of 400 million ML tokens and planned deflationary emissions, it aims to strengthen Bitcoin's L2 landscape and enable real-world asset tokenization while prioritizing security.  

Optimism Unlocks OP Tokens in Ethereum L2

Optimism, an Ethereum layer 2 scaling solution, is set to unlock $81 million worth of OP tokens on January 29, 2024. This will release over 24 million tokens, equivalent to 2.5% of the circulating supply. The project has unlocked 885 million tokens so far, and the token's market cap is approximately $2.9 billion.  

Orbiter Finance's Ethereum L2 Rollup Launch

Orbiter Finance, backed by OKX Ventures, plans to launch Orbiter Rollup, a zero-knowledge proof powered Ethereum Layer 2 network. The protocol's cross-chain bridge serves over 3 million users and aims to facilitate seamless asset and data transfer across all Layer 2 networks. Orbiter Rollup seeks to establish itself as the primary access point for Ethereum Layer 2 networks.  

Binance Labs Clarifies SkyArk Chronicles Funding

Binance Labs denies leading SkyArk Chronicles' $15M funding round, claiming unawareness. SkyArk Studio was incubated by Binance in 2021. SkyArk claimed Binance led its recent funding round, later retracted after Binance's denial. SkyArk apologized for the miscommunication and vowed to continue with the project. Multiple other institutions allegedly participated in the funding round.  

Friend.Tech's Decline Due to Security Issues

Friend.Tech's viral success saw a rapid decline due to security issues and a lack of user engagement. The platform hit a peak with 70,000 users and $50 million in TVL but now faces a 95% drop in activity. Security vulnerabilities resulted in a $20 million risk, while daily fees plummeted from $1 million to $50,000.   

Global Crypto Investment Products Face Outflows

Last week, global crypto investment products experienced $500 million in net outflows. Grayscale's GBTC saw the most prominent outflows, but these have begun to decrease. Nine new spot bitcoin ETFs received $1.8 billion in inflows. Bitcoin products had $479 million in net outflows, while Solana products saw inflows of $3 million.  

Manta Pacific's TVL Surge Post-Airdrop

Manta Pacific's TVL surged to $1.75 billion after a 50,000,000 MANTA token airdrop. The share of TVL grew to $921 million. Despite disappointment over low airdrop profits, crypto expert Miles Deutscher predicts a potential rally. The airdrop caused frustration among investors due to low returns and a remote procedure call attack that affected network performance.  

Amazon's Bitfinex Hack Feature Film Announcement

Amazon announces a feature film about the $4 billion Bitfinex hack, focusing on the exploits of Heather “Razzlekhan” Morgan and Ilya Lichtenstein. The couple confessed to stealing 120,900 Bitcoin, facing potential prison time and forfeiting ill-gotten gains. The film, directed by Hannah Marks and co-produced by Lili Reinhart, promises a captivating narrative of cybercrime and justice.  

OKX's Integration of Various Inscriptions

OKX will integrate Atomicals, Stamps, Runes, and Doginals, aiming to launch a marketplace soon. Inscriptions, like NFTs, will be supported, with plans to expand to various networks. OKX Wallet currently supports inscriptions minting on 23 networks. Bitcoin inscriptions have seen significant growth. OKX’s Chief Innovation Officer views inscriptions as a new canvas for Web3 creators.

Top Altcoin Gainers and Losers

Gainers:

Sui SUI (+13.66%) 

Conflux CFX (+8.89%) 

SATS 1000SATS (+6.24%) 

Losers:

Akash Network AKT (-6.19%) 

Ronin RON (-6.18%) 

Bittensor TAO (-4.99%)