February 5, 2024
I. Mainstream exchange news
- Binance’s former senior vice president of compliance, Steven Christie, has returned to Binance
- Binance Finance, Swap, Leveraged, and Regular Investment platforms have launched PYTH
- Binance Margin adds CREAM, IRIS & more FDUSD and USDC pairs
- HashKey Exchange has launched a fiat currency exchange service that supports two-way currency exchange between the Hong Kong dollar and the US dollar
- From February 5th, Bithumb will charge a 0.04% fee on crypto asset trades
- Binance will launch a 1x ~50x leveraged perpetual contract for ZETA
- Justin Sun said 20 million HT will be burned which will result in the total circulation of HT decreasing to 134 million.
II. Mainstream projects and trending events
Puffer Finance's TVL exceeds $300 million, with a 24-hour increase of over 12%
- Bounce Launchpad will launch the Bitcoin L2 project XRGB, only open to users who have staked AUCTION on BounceBit
- The accumulated fee income from the minting of Ordinals inscriptions has reached 5987 BTC
- Shardeum plans to carry out airdrops in three phases, distributing a total of 25.4 million tokens
- ARKB's total assets under management break through $700 million
- Registration for the ALT airdrop to Celestia stakers is now open, and eligible participants can start claiming their rewards from February 20th
- NAVI Protocol unveils the token economics of NAVX, with a total supply of 1 billion, and 45.8% earmarked for airdrops and incentive activities
- Hong Kong financial company VSFG plans to apply for a spot ETH ETF in the second quarter
- Dymension community administrators reveal that the project's mainnet is set to launch on February 6th
- Former JPMorgan executive Andreas Koukorinis has been appointed as the new Head of Trading at GSR, a crypto market maker.
- Fed’s Powell said rate hikes are coming, but it's unlikely to be in March
- BTC's on-chain transaction volume reached $1.21 trillion in January, a new high since September 2022
- The ApeCoin DAO community is voting on whether to establish a dedicated blockchain "ApeChain", with voting ending on February 8th
- The Aave community is advancing the progression of the GHO Stability Module and the Frontier, a Staking-as-a-Service (StaaS) product for the Aave DAO, through funding management proposals
- Inflows into its Bitcoin ETF are expected to increase as WisdomTree becomes available on additional financial advisor platforms
- Farcaster, the decentralized social protocol, reaches a new all-time high in daily active user activity
- Applications for CoinList Seed Winter 2024 are open for crypto development teams eager to showcase projects to 10 million early adopters.
III. Funding news
- Bitcoin ecological composable DID protocol BRC-137 completed a $2.5 million seed funding round
- Stride Association completed $4 million strategic funding led by DBA
- Web3 accelerator Beacon has completed a $150 million funding round
- Variant and Coinbase have joined in a $9 million seed funding round raised by Clusters, the cross-chain domain service
- ABCDE leads investment in Bitmap.tech, which falls under BTC asset and capacity expansion ecology
IV. Regulatory news
- Thailand SEC has ordered crypto exchange Zipmex to temporarily suspend cryptocurrency exchange and brokerage businesses
- The Financial Secretary of the Hong Kong Monetary Authority, Christopher Hui Ching-yu, has declared that all virtual asset service providers in Hong Kong must apply for a license by the end of the month
- The Beijing Development and Reform Commission, along with twelve other departments, is initiating a crackdown on virtual currency mining activities
- The US Department of Energy has asked Bitcoin miners to provide power consumption statistics
IV. Popular projects
Market Overview: Positive US job data diminishes rate cut prospects
The US Labor Department reported a significant surge of nonfarm jobs to 353,000 in January, far surpassing the expected 185,000 and exceeding all analyst forecasts. Additionally, the figures for December were revised to 333,000, reflecting an upward adjustment. This positive report on jobs has led to a decrease in expectations for a March rate cut to below 40%, with analysts now foreseeing the possibility of the first cut in May. Amidst these developments, BTC continues to exhibit volatility, ETH experiences a decline, and overall market volatility diminishes. BTC is expected to reach the $42,000 level while closely hovering around the $40,000 support level.
BTC Spot ETF Update: 10 ETFs, $28.16B total assets, $1.58B net inflow
Major ETF data includes:
(1) Grayscale (GBTC): Asset value $20.39 billion, net outflow $5.97 billion, with a 1.5% management fee.
(2) BlackRock (IBIT): Asset value $3.12 billion, net inflow $3.06 billion, with a 0.25% management fee.
(3) Fidelity (FBTC): Asset value $2.66 billion, net inflow $2.6 billion, with a 0.25% management fee.
(4) Ark Invest and 21Shares (ARKB): Asset value $705 million, net inflow $683 million, with a 0.21% management fee.
(5) Bitwise (BITB): Asset value $658 million, net inflow $662 million, with a 0.2% management fee.
Despite a 1.5% management fee, GBTC witnesses consistent daily withdrawals, while BlockRock (IBIT) and Fidelity (FBTC) see steady inflows. The outflows from GBTC and inflows from IBIT & FBTC are relatively balanced, resulting in an overall BTC ETF inflow. The entry cost for new users ranges from $40,000 to $43,000. As the selling pressure on GBTC decreases, the accumulation of BTC in other ETFs is expected to rise.
Modular public chain Mode sees increased user interest in deposit activities
Mode, a modular blockchain developed using the OP Stack and supported by Optimism and other major chains like Base and Zora, has seen increased user interest due to its deposit campaign. Running from January 31 to February 7, this activity rewards users with points based on the duration of their deposits on the chain. Participants are advised to use older accounts, as initial scores are assigned based on attributes like DeFi participation, NFT ownership, and Layer 2 usage, leveraging its modular and OP concept attributes.
Puffer achieves record TVL
Puffer, a permissionless native liquidity re-staking protocol built on EigenLayer, has seen its TVL surge to a new high of $329 million following its seed funding of $5.5 million led by Lemniscap and Lightspeed Faction, and another strategic investment from Binance Labs. The recent launch of stETH and wstETH staking, offering dual rewards in Puffer and Eigenlayer stakings, has propelled this growth. With the rise of re-staking, projects with strong funding and high TVL like Puffer are gaining increased attention.
The original founder of dogwifhat, @issa, has released a new WIF token on ETH
@Issa, the OG founder of dogwifhat, has launched a new token on the Ethereum network. This token distinguishes itself from the Solana-based WIF which has a market cap of $450 million, and is unrelated to issa. Issa's Ethereum version of Dogwifhat, accompanied by a $4,500 meme campaign to engage the community, has a market cap of $7.84 million, liquidity of $769,000, and a 24-hour trading volume of $10.36 million - surpassing Solana's WIF by 20 times.
MOBOX's Brc-420 asset launch sparks BTC network gas fees and market excitement
MOBOX launches Brc-420 Dragon Ball project with 10,000 units through a Fair Launch and Free Mint, causing a surge in market attention and skyrocketing BTC network gas fees. The current price for a Dragon Ball is 77 USDT.
As anticipation for Merlin Chain's upcoming BTC Layer 2 solution token release grows, Brc-420 assets, including the Blue Box with a floor price of 0.7777 BTC ($33,463), continue to rise, reflecting the market's enthusiastic response to this innovative project.
FTX will fully repay creditors
FTX, grappling with a lack of buyers, has decided against restarting its crypto exchange. The plan is to fully repay creditors, primarily in USD, potentially impacting the valuation of the FTT token. The sell-off of various crypto assets to accumulate cash has doubled FTX's reserves to $4.4 billion by the end of December 2023. Following these developments, Su Zhu's founded exchange, OPNX, has officially declared its closure.
Significant token unlocks this week
Feb 5th - 657,000 LQTY (Liquity) tokens will be unlocked at 8:00 (UTC+8), valued at around $828,000, representing 0.69% of the circulating supply.
Feb 5th - 2.03 million GAL (Galxe) tokens will be unlocked at 8:00 (UTC+8), worth approximately $3.83 million, comprising about 2.26% of the circulating supply.
Feb 7th - 13.62 million HFT (Hashflow) tokens will be released at 8:00 (UTC+8), estimated at $4.25 million, making up 4.0% of the circulating supply.
Feb 11th - 3.04 million GLMR (Moonbeam) tokens will be unlocked at 8:00 (UTC+8), valued at about $1.06 million, accounting for around 0.37% of the circulating supply.
Feb 11th - 24.84 million APT (Aptos) tokens will be unlocked at 20:00 (UTC+8), valued at approximately $228 million, representing about 7.34% of the circulating supply.
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