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- Bitcoin, Ethereum, Cosmos and more Week 31 2024
Bitcoin, Ethereum, Cosmos and more Week 31 2024
Keeping you updated on crypto, web3 and blockchain
TL;DR
Bitcoin 2024 Conference Highlights
US Moves $2B Bitcoin After Trump’s Reserve Pledge
Hong Kong's Largest Broker Launches Ether Trading
Ethereum ETFs Struggle Post-Launch
Lava Public Mainnet Launch
Tria Launch Chain-Abstraction on Injective
Russia Legalizes Crypto Mining
Bank of England Cuts Rates for First Time in Four Years
and much more!
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Bitcoin Highlights of the Week
The Bitcoin 2024 Conference, held in Nashville, concluded on July 27th with significant announcements. BlackRock's Bitcoin Spot ETF has seen consistent positive inflows, and Robert F. Kennedy Jr. proposed a plan for the US Treasury to buy 550 Bitcoin daily, aiming to make Bitcoin transactions non-reportable and tax-free. Edward Snowden discussed Bitcoin’s role in combating corruption but warned of political exploitation, while Senator Lummis suggested the US government purchase and hold 5% of the total Bitcoin supply for 20 years.
Michael Saylor forecasted Bitcoin’s future value ranging from $3M to $49M per coin.The conference also featured bold statements from Trump, who pledged to acquire 1M Bitcoin for the US reserve, reject CBDCs, and address SEC issues. Despite ambitious commitments and projected valuations, Snowden’s caution highlights the complex political landscape surrounding Bitcoin.
David Solomon, CEO of Goldman Sachs, recently discussed Bitcoin's potential as a store of value rather than a practical use case. In an interview from the Summer Olympics in Paris, Solomon described Bitcoin as a speculative investment, acknowledging its intriguing technology but expressing doubts about its utility. Despite this, he conceded that Bitcoin could serve as a store of value, comparable to gold reserves.
Goldman Sachs, which launched a crypto desk in 2021, has been increasingly involved in digital assets, including testing the Canton Network and planning tokenization projects. The bank's growing engagement with crypto assets reflects heightened interest from hedge funds and a strategic push into digital markets.
The U.S. government transferred $2 billion worth of Bitcoin, previously seized from the Silk Road, to unknown wallets just two days after former President Donald Trump’s pledge at the Bitcoin 2024 conference. Trump had vowed not to sell any U.S. Bitcoin holdings and proposed creating a strategic national Bitcoin reserve.
This move, which critics have labeled "tone deaf," follows Trump’s promises to make the U.S. a global crypto hub and Senator Cynthia Lummis’s proposal to buy 5% of Bitcoin’s total supply. The transfer has sparked mixed reactions within the crypto community, highlighting ongoing debates about Bitcoin’s role as a reserve asset.
The University of Wyoming will open the UW Bitcoin Research Institute (BRI) in August, aiming to enhance the quality of Bitcoin research. Directed by Bradley Rettler, an Associate Professor and Bitcoin activist, the institute will focus on producing high-quality, peer-reviewed studies on Bitcoin. Rettler has criticized current Bitcoin research for its inaccuracies, citing a 2018 study that overlooked critical aspects of Bitcoin’s technical adjustments.
The BRI, which accepts Bitcoin donations and invests a portion in BTC, will offer annual workshops, academic prizes, and weekly seminars. Wyoming continues to position itself as a Bitcoin hub, supported by pro-Bitcoin figures like Senator Cynthia Lummis and Caitlin Long. Recent legislation includes Lummis’s strategic Bitcoin Reserve bill and state laws that protect digital asset privacy.
Following his keynote at the Bitcoin 2024 conference, former U.S. President Donald Trump promoted limited edition Bitcoin-themed sneakers on social media. In a Truth Social post, Trump announced that the sneakers are available for purchase using Bitcoin or other cryptocurrencies.
This move comes after his speech in Nashville, where he vowed to fire SEC chair Gary Gensler and establish a strategic Bitcoin reserve if elected. Trump has previously embraced cryptocurrency through political donations and NFT collections, reflecting his ongoing engagement with digital assets.
Ethereum Highlights of the Week
Crypto hacks surged in Q2 2024, with losses totaling $572.7 million, marking a 112% increase from the previous year. Ethereum remained the most targeted blockchain, followed by BNB Chain. Two major attacks, including one on Japanese exchange DMM Bitcoin resulting in $305 million lost, and another on Turkey's BtcTurk, which saw $55 million stolen, accounted for 63% of these losses.
Centralized finance (CeFi) platforms were primarily affected, though decentralized finance (DeFi) remained a notable target. Despite the increase in losses, fraud-related incidents decreased by 81%, and about 5% of stolen funds were recovered.
Futu Securities International, Hong Kong's leading online brokerage, has initiated Bitcoin and Ether trading for its 22 million users. This move makes Futu the first brokerage to directly offer cryptocurrency trading to Hong Kong retail investors. The platform debuted on July 23, marking a significant milestone as investor interest surges, with Bitcoin’s open interest hitting a record $39.4 billion on July 29.
The launch follows a trend of growing institutional interest in crypto, highlighted by the debut of the first spot Ether ETFs in the U.S. and Franklin Templeton's collaboration with SBI Holdings to establish a crypto ETF management company in Japan. This expansion aligns with Hong Kong's ambition to become a global crypto and blockchain innovation hub.
BlackRock has issued a warning about an increase in scams targeting investors in its iShares Bitcoin and Ether ETFs. Impersonators posing as BlackRock representatives are using social media platforms like WhatsApp and Telegram to lure victims with false investment offers and training. The asset management firm emphasized that it never contacts users via social media to request payments or offer investments.
Despite these scams, BlackRock's iShares Bitcoin Trust has seen significant success, amassing $19.7 billion in Bitcoin since its launch in January. BlackRock's head of digital assets, Robert Mitchnick, noted that client interest remains primarily focused on Bitcoin and Ether, with little demand for other cryptocurrencies.
Arbitrum's community is set to pass a governance proposal allowing developers to launch Orbit chains outside the Ethereum ecosystem. With 83% support, the proposal responds to interest from projects wanting to deploy Orbit on non-Ethereum chains like Bitcoin, BNB Chain, and Cosmos. The Arbitrum Foundation's expansion program, launched in January, already enables third-party projects to use Arbitrum’s codebase on Ethereum-derived chains under a revenue-sharing arrangement.
Expanding Orbit chains is expected to increase revenue for Arbitrum, with new chains sharing 10% of profits back to the ecosystem. Orbit chains allow developers to create custom Layer 2 and Layer 3 rollup chains. Xai, a gaming-focused Layer 3 network, has become the top Layer 3 network by activity, consistently exceeding 100 transactions per second.
New Ether ETFs faced significant outflows, with nearly $750 million exiting in four out of five trading days. On July 30, net inflows of $33.6 million marked the first positive daily flow since launch. This trend contrasts with the successful debut of Bitcoin ETFs, highlighting differing regulatory impacts. Bitwise briefly surpassed BlackRock in trading volume by waiving its 0.2% fee, though BlackRock regained its position.
Regulatory concerns affect Ethereum due to its proof-of-stake consensus mechanism. The US SEC's stance against staking rewards has influenced investor sentiment. BlackRock noted minimal client interest beyond Bitcoin and Ethereum ETFs. Despite initial volatility, Bitwise's chief investment officer expects Ether ETFs to significantly impact ETH prices, predicting new highs by the end of 2024 due to widespread use and staking.
Cosmos Highlights of the Week
The Lava Public Mainnet has officially launched, marking a pivotal development in blockchain infrastructure. Initiated two years ago, Lava Network aims to revolutionize decentralized RPC access by offering a modular and scalable solution. With its Testnet debut in early 2023, Lava is now poised to support appchains and rollups, including Ethereum L2s and modular rollups.
It features a Cosmos SDK-based blockchain and a peer-to-peer off-chain protocol to ensure low latency, high uptime, and reliable access across various blockchains. The launch includes a Dex-first token strategy, higher float, and capped supply with no inflation. Lava’s approach contrasts sharply with the typical “CEX-first” launches.
Tria has launched 'Unchained,' a revolutionary chain-abstraction infrastructure for the Injective ecosystem, enhancing Web3 user experience by removing the need for multiple wallets, bridging, and gas tokens. This integration allows seamless asset usage across various chains, including both EVM and non-EVM blockchains.
Unchained, built on the Cosmos SDK with EVM compatibility, enables users to access and utilize assets from any chain with a unified interface, eliminating complexity and streamlining transactions. The Unchained infrastructure simplifies onboarding with single sign-on (SSO) options, unifies asset management, and facilitates easy trading and staking across chains. It supports gas abstraction, allowing users to pay transaction fees with any token.
Amidst recent volatility for Cosmos (ATOM) and Uniswap’s upgrade challenges, BlockDAG has emerged as a standout with its $64 million presale. Under CEO Antony Turner, BlockDAG aims to revolutionize blockchain technology through improved speed, decentralization, and efficiency. The presale, which sold 12.5 billion BDAG coins, reflects high market confidence and positions BlockDAG as a promising altcoin.
Turner’s strategy focuses on addressing existing blockchain limitations, leveraging strengths in energy efficiency, and enhancing scalability. While Cosmos struggles with a 56% price drop despite positive ecosystem advancements, and Uniswap’s upgrade seeks to boost transaction speeds amid market challenges, BlockDAG’s success in fundraising and its strategic vision offer a strong counterpoint.
Secret Network has announced the integration of its Confidential Computing Layer with Gnosis Chain, a secure, decentralized EVM-compatible layer 1 network. This collaboration brings decentralized confidential computing (DeCC) tools to Gnosis, enhancing its ecosystem with features like private voting for DAOs, encrypted storage for dApps, and secure random number generation for games.
Powered by Trusted Execution Environments (TEEs), Secret’s Confidential Computing enables encrypted data processing without exposure. This integration unlocks new possibilities for Gnosis, supporting secure, scalable applications across Web3.
Aura Network has partnered with The Sandbox to enhance the management and utilization of intellectual property (IP) in digital environments. This collaboration aims to expand Programmable IP within the metaverse, enabling brands to seamlessly integrate their IP into The Sandbox's decentralized virtual worlds. Aura Network’s advanced IP solutions will provide robust management options, allowing brands to interact with their digital assets in innovative ways.
This partnership builds on The Sandbox's existing success with major brands like Warner Music Group and Gucci Vault. Together, Aura Network and The Sandbox will drive metaverse innovation, creating a more secure and versatile environment for IP development and engagement.
Other Highlights of the Week
Russia’s State Duma has passed legislation to fully legalize cryptocurrency mining starting November 1, 2024. The new law allows only registered entities and individual entrepreneurs to mine cryptocurrencies, with unregistered individuals subject to energy use limitations. The Bank of Russia will oversee mining operations, setting infrastructure requirements and regulating mining pools.
Miners must report their activities to the government, which can restrict transactions for economic stability. Additionally, advertising cryptocurrencies will be banned. A separate law, effective September 1, 2024, introduces an experimental framework for cross-border crypto transactions, permitting select companies to engage in international crypto settlements.
On August 1, 2024, the Bank of England (BoE) reduced its key interest rate from 5.25% to 5%, marking its first rate cut in four years. The decision, reached by a narrow 5-4 vote, comes as UK inflation has consistently met the BoE's 2% target over the past two months. This rate cut follows a prolonged period where the BoE maintained interest rates at a 16-year high since August 2023.
Governor Andrew Bailey described the decision as “finely balanced,” reflecting recent economic improvements and a focus on overcoming high inflation. The immediate impact on financial markets was noticeable, with the British pound dropping to a one-month low of $1.2763 against the US dollar. Additionally, yields on UK government bonds fell, with the 10-year gilt yield decreasing by 4 basis points to 3.932%.
Mt. Gox has transferred 33,964 BTC, valued at approximately $2.2 billion, to an undisclosed wallet, marking its first significant movement in nearly a week. Despite this large transfer, Bitcoin's price remains stable around $66,000. This movement follows recent transactions involving billions of dollars worth of Bitcoin to various exchanges.
Currently, Mt. Gox holds 80,128 BTC, valued at about $5.3 billion. Despite past market fluctuations due to such movements, the BTC market has shown minimal reaction, likely due to reduced fear, uncertainty, and doubt (FUD) about sell-offs. There may still be slight sell pressure depending on creditors' future decisions.
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