Newsletter Volume 53
The Market This Week
In the cryptocurrency landscape, the U.S. Securities and Exchange Commission (SEC) has extended its decision window on Hashdex’s Bitcoin futures ETF conversion and Grayscale’s ether futures ETF. Despite this delay, Bitcoin surged 5% to $37,500, and Ethereum rose over 3% to $2,060 on Wednesday, with altcoins like Solana and Avalanche leading gains. The broader trend indicates increasing mainstream acceptance of both Bitcoin and altcoins.
Uniswap Labs expanded accessibility by launching a mobile wallet app with built-in swap capabilities, initially exclusive to iOS and now available on Android. The decentralized exchange integrated within the app eliminates the need for a separate web browser extension, boasting over $3 billion worth of cryptocurrency within its contract. Additionally, Commerzbank in Germany obtained a crypto custody license, marking it as the first full-service German bank to offer custody services for crypto assets, showcasing the evolving regulatory landscape.
In company news, the South Korean National Pension Service made a strategic move by purchasing $20 million worth of Coinbase (COIN) shares in Q3, now valued at $27.74 million. Meanwhile, blockchain security firm CertiK raised concerns about a potential vulnerability in Solana’s crypto-enabled Saga phone, a claim dismissed by Solana, emphasizing user participation in unlocking bootloaders. Finally, Paxos received initial approval from the Monetary Authority of Singapore for Paxos Digital Singapore Pte. Ltd., paving the way for the launch of a U.S. dollar-backed stablecoin and digital payment token services upon full approval. Immunefi’s report highlighted that nearly 46.6% of crypto losses in Web3 exploits in 2022 were attributed to infrastructure weaknesses, emphasizing the importance of addressing security vulnerabilities in the crypto space.
KEY METRICS
Total Crypto Market Cap : $1.43 T
Bitcoin Market Cap : $707.90 B
Ethereum Market Cap : $236.34 B
ETH/BTC Ratio : 0.05
Ethereum Gas Price : 22 gwei
DeFi TVL : $69.36 B
Fear and Greed Index : 63 (Greed)
Federal Reserve Balance Sheet : $8.09 T
Weekly Spotlight on IC15
The global crypto market declined, with the IC15 Index dropping 870 points to 45,844 at 4 p.m. except for Avalanche and Solana. Australia introduced a capital gains tax for wrapped tokens, and South Korea’s Democratic Party mandated crypto holdings disclosure for candidates. French adults owning crypto stand at 9.4%. The market saw its first inflow in over a year, mainly through stablecoins.
Following Powell’s warning of interest rate hikes, the crypto market rose, with the IC15 Index up 830 points to 46,817 at 4 p.m. Ethereum led gains, along with Solana, Polygon, and Uniswap, while XRP, Shiba, and Dogecoin experienced losses. Indian banks plan to launch a CBDC for SMEs by January 2024. Deutsche Börse AG plans a regulated crypto exchange in 2024. Lightspeed Faction introduced a $285 million fund for blockchain startups, and SBI Holdings will launch a $6.62 billion fund for Web3, AI, and metaverse startups.
The Battle of Bulls and Bears
On November 15, various altcoins, including DYDX, Solana’s SOL, and Avalanche’s AVAX, posted double-digit gains alongside Bitcoin, reaching an intra-day high of $37,400. DYDX platform noted a 77.5% increase in fees and revenues to $8.67 million in 30 days, projecting an annual potential of $105.5 million. Solana’s SOL token, despite a 30-day return of over 166%, remains 4x below its record high of $259.96. Bitcoin experienced a brief drop to $35,000, rebounding to around $35,600 amidst positive US inflation news, while Ethereum faced selling pressure but found support at $1,921.
On November 10, Ethereum layer-2 organizations achieved a milestone with $13.5 billion in total value locked (TVL), a significant rise from the 2021 bull market. Despite a $1.4 trillion crypto market cap, layer-2 TVL stands at an all-time high. Fnality secured $95 million in Series B funding led by Goldman Sachs and BNP Paribas, with participation from various institutions. However, XRP futures traders lost $7.26 million due to misleading rumors, causing a surge from 65 cents to 73 cents. The overall market turbulence coincides with increasing Wall Street interest in the crypto space.
Weekly Spotlight
In the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) extended decisions on Hashdex’s Bitcoin futures ETF and Grayscale’s ether futures ETF. Despite the delay, Bitcoin surged 5% to $37,500, and Ethereum rose over 3% to $2,060, indicating growing mainstream acceptance of both major and alternative cryptocurrencies. Uniswap Labs launched a mobile wallet app, initially on iOS and later on Android, boasting built-in swap capabilities and a decentralized exchange, eliminating the need for separate browser extensions and managing over $3 billion in cryptocurrency.
Regulatory developments included Commerzbank in Germany obtaining a crypto custody license, becoming the first full-service German bank to offer such services. In company news, the South Korean National Pension Service made a strategic investment, purchasing $20 million of Coinbase (COIN) shares, now valued at $27.74 million. Solana’s Saga phone faced security concerns from CertiK, dismissed by Solana, emphasizing user involvement in unlocking bootloaders. Paxos received initial approval from the Monetary Authority of Singapore for its entity, Paxos Digital Singapore Pte. Ltd., aiming to launch a U.S. dollar-backed stablecoin and digital payment token services.
On a global scale, the crypto market experienced a decline, with the IC15 Index dropping to 45,844, except for positive performances from Avalanche and Solana. Notable events included Australia introducing a capital gains tax for wrapped tokens and South Korea’s Democratic Party mandating crypto holdings disclosure for candidates. A market inflow occurred following Powell’s warning of interest rate hikes, with Ethereum leading gains alongside Solana, Polygon, and Uniswap. Indian banks planned to launch a CBDC for SMEs, Deutsche Börse AG aimed for a regulated crypto exchange in 2024, Lightspeed Faction introduced a $285 million fund for blockchain startups, and SBI Holdings planned a $6.62 billion fund for Web3, AI, and metaverse startups.
Altcoins like DYDX, Solana’s SOL, and Avalanche’s AVAX posted double-digit gains alongside Bitcoin on November 15. DYDX platform reported a 77.5% increase in fees and revenues, reaching $8.67 million in 30 days, projecting an annual potential of $105.5 million. Ethereum layer-2 organizations achieved a milestone with $13.5 billion in total value locked (TVL), despite a $1.4 trillion crypto market cap. Fnality secured $95 million in Series B funding, and XRP futures traders experienced losses due to misleading rumors. The market turbulence coincided with growing Wall Street interest in the crypto space.
