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- Bitcoin, Ethereum, Cosmos and More Week 51 2024
Bitcoin, Ethereum, Cosmos and More Week 51 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
Bitcoin Reserve Act: A Game-Changer?
BlackRock Sparks Debate Over Bitcoin's 21M Supply Cap
Synthetix Launched Perpetual Trading on Base
Ethereum Gas Limit Increase Proposal
Injective Enhances Security with Hypernative
Initia Mainnet Code Frozen, Events and Audits Underway
Bitcoin Drops to $100K Amid Fed’s Hawkish Stance
Binance Australia Sued Over Consumer Protection Violations
and much more!
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Bitcoin Highlights of the Week
The proposed Bitcoin Reserve Act could revolutionize crypto markets by enabling the U.S. government to accumulate Bitcoin as a reserve asset, potentially disrupting the traditional four-year halving cycle. Advocates believe this move, alongside global FOMO from other nations, could stabilize Bitcoin’s price and spark a historic supercycle.
A pro-crypto U.S. administration and legislative backing add credibility to the initiative, signaling institutional and geopolitical shifts. Critics, however, caution against betting on a supercycle, citing past disappointments. Whether the Act triggers a new market era or follows historical patterns, its passage could mark a pivotal moment for Bitcoin’s global adoption.
Ohio has introduced the Bitcoin Reserve Act, making it the third state to explore holding Bitcoin as a treasury reserve, after Texas and Pennsylvania. Sponsored by Rep. Derek Merrin, the bill allows the State Treasurer to allocate Bitcoin as part of Ohio's asset strategy, highlighting its role as a hedge against inflation.
While the current session may delay its passage, it will be reintroduced in 2025. Advocates, including the Ohio Blockchain Council, praise the initiative for technological leadership. Critics cite Bitcoin’s volatility, but proponents argue cautious allocation can mitigate risks and position Ohio at the forefront of digital finance innovation.
MicroStrategy has purchased 15,350 BTC for $1.5 billion at an average price of $100,386 per coin, raising its total holdings to 439,000 BTC, valued at $45 billion. The acquisition was funded by selling 3.88 million company shares. With $7.65 billion in equity and $21 billion in fixed-income securities, the firm is well-positioned for future purchases.
Its stock, up 490% this year, rose 4.2% following the announcement. As Bitcoin approaches $100K, MicroStrategy strengthens its role in the Bitcoin ecosystem, leveraging its Nasdaq 100 inclusion and aggressive acquisition strategy to maintain a leadership position in the corporate adoption of digital assets.
El Salvador has agreed to make Bitcoin acceptance voluntary and limit government involvement in Bitcoin-related activities as part of a $1.4 billion loan agreement with the IMF. The deal, aimed at reducing the nation's debt-to-GDP ratio, includes measures to phase out the state-backed Chivo wallet and confine public sector Bitcoin engagement.
Despite these adjustments, El Salvador's National Bitcoin Office reaffirmed its commitment to accumulating Bitcoin. This agreement concludes four years of negotiations following El Salvador's adoption of Bitcoin as legal tender in 2021, while surveys indicate limited public usage of the cryptocurrency for transactions.
BlackRock's recent video on Bitcoin reignited the debate on its 21 million supply cap, suggesting there’s “no guarantee” it can’t change. Bitcoin developers argue altering the cap through consensus would result in a new blockchain, no longer aligning with Satoshi Nakamoto's vision. Critics highlight risks to Bitcoin’s value proposition as a scarce asset.
While miners benefit from current incentives, sustainability concerns grow as subsidies halve over time. Historical resistance, like the 2016–17 Blocksize War, demonstrates the community's reluctance to compromise Bitcoin's core principles, emphasizing that changes, while theoretically possible, face significant resistance from stakeholders.
Ethereum Highlights of the Week
Synthetix has launched multi-collateral perpetuals on Coinbase’s Base, allowing traders to use assets like cbBTC and cbETH as collateral. This update provides improved margin control, hedging opportunities, and exposure to top crypto assets.
Additionally, Synthetix introduced its own perpetuals trading app, transitioning from solely supporting third-party platforms to offering in-house trading solutions. These changes follow a governance overhaul initiated in October, which addressed missed deadlines and included acquiring platforms like Kwenta and TLX.
Ethereum liquid restaking protocols experienced explosive growth in 2024, with total value locked (TVL) surging from $284 million in January to $17.26 billion by December, driven by the increased utility of liquid restaking tokens (LRTs). LRTs enable stakers to secure Ethereum and participate in additional networks, enhancing capital efficiency.
Ether.fi, the leading liquid restaking platform, controls over 50% of this market, thanks to its user-friendly model. Despite its benefits, liquid restaking carries risks like depegging, price volatility, and potential compounded losses from network failures, highlighting the trade-offs of this evolving DeFi innovation.
Ethereum whale wallets now hold a record 57% of the total Ether supply, according to Santiment. This dominance is driven by 104 whale wallets, each containing over 100,000 ETH, collectively valued at approximately $333 billion. Meanwhile, wallets holding between 10 and 100,000 ETH have reached a historic low of 33.5%, signaling potential bullish market conditions.
Analysts predict Ether could surpass its all-time high in the first quarter of 2025, fueled by increasing whale accumulation and growing daily address activity. Ether’s recent price rebound above $4,000 further strengthens the optimistic outlook for the cryptocurrency.
HashKey Group launched the Ethereum layer-2 HashKey Chain mainnet on Dec. 18, following a successful testnet phase. The testnet saw over 860,000 wallet registrations, 24.72 million transactions, and 50 projects deployed. The mainnet, utilizing OP-Stack and Rollup technology, achieved 400 transactions per second (TPS) and low gas fees of 0.1 gwei.
On launch, the network handled 43,300 transactions with a TPS of 0.5 and gas fees around 0.001 gwei. This launch is part of a broader effort to advance blockchain infrastructure in the Asia-Pacific region, coinciding with Hong Kong’s push for crypto-friendly legislation.
As of December 19, 10% of Ethereum validators are signaling support for raising the network's gas limit, a significant increase from just over 1% previously. This follows advocacy for a 36 million gas limit, which Ethereum developers claim could reduce layer-1 transaction fees by 15% to 33%.
The initiative aims to accommodate high-demand applications and improve user experience. However, there are concerns about potential risks to Ethereum's stability and decentralization if gas limits are raised too quickly, which could challenge solo node operators' ability to validate transactions effectively.
Cosmos Highlights of the Week
Initia has officially frozen the code for its mainnet release as full security audits begin. The team announced a series of events to kick off the holiday season, including a special opportunity for Jennie NFTs (Lvl 2+) to "freeze" until January 31st.
In addition, the community is invited to join the "Interwoven Townhall" on Discord on December 19th and watch a livestream on "How To Get Rugged" by @ret2jazzy on December 20th. The Initia community continues to grow, with new members encouraged to get involved through various activities and events.
Injective has integrated Hypernative Labs' real-time threat monitoring solution, strengthening security across its ecosystem. The platform utilizes advanced machine learning models and heuristics to proactively detect and mitigate risks before they cause damage.
This integration covers key DeFi dApps like Helix and MitoFinance, offering protection against security, technical, financial, and governance threats. Hypernative's system monitors attack surfaces such as bridges, smart contracts, multisig wallets, and treasury allocations.
Saga introduces a new economic model by eliminating gas fees, instead generating revenue through value captured within its ecosystem. With Mainnet 2.0, Saga forms strategic partnerships with Evmos, Squid Router, and OKU to enhance token swapping, routing, and smart contract deployment.
This foundation sets the stage for the Q1 2025 launch of the Liquidity Integration Layer (LIL), promising a unified liquidity solution to transform DeFi and multichain operations. By unifying liquidity and removing unpredictable fees, Saga enables developers to build without constraints, ushering in a gasless, seamless multichain future.
Elys Network has officially launched its airdrop claiming process and application. Users can now claim their airdrop by depositing a small amount of USDC or ATOM via the platform’s interface. To participate, simply click on "Wallet," deposit crypto, choose either ATOM or USDC, and complete the process.
Additionally, the Reward Center is now live, allowing users to create affiliation codes. Activities like staking and adding liquidity will contribute to future rewards. Stay cautious of external links and ensure to use the official Elys Network platform for secure participation.
Side Protocol has introduced its Mainnet Delegation Program, aiming to enhance decentralization and strengthen its blockchain ecosystem. The program offers validators an opportunity to scale operations, gain recognition, and contribute to securing the Side Chain network.
Validators demonstrating past contributions or future commitment will receive token delegations. Of the 100 available slots in the mainnet active validator set, up to 50 will be delegated tokens, with 21 selected Side Bridge operators receiving additional delegations. Delegations will last for six months, with regular performance reviews, ensuring alignment with the network's goals.
Other Highlights of the Week
FTX has revealed its repayment timeline for customers and creditors, with payments beginning in early 2025. Creditors with claims of $50,000 or less will be the first to receive payments, accounting for about 90% of all creditors. Customers will need to complete KYC verification, submit tax forms, and onboard to Kraken or BitGo to receive their funds.
The first round of customer repayments is expected within 60 days of January 3, 2025. This marks a significant step in resolving the aftermath of FTX's collapse over two years ago, offering a long-awaited resolution for many affected parties.
Deutsche Bank has introduced Project Dama 2, a Layer 2 platform utilizing ZKsync technology to tackle regulatory concerns surrounding public blockchains. Developed in collaboration with Memento Blockchain and Interop Labs, Dama 2 ensures scalability and privacy while staying connected to Ethereum.
This project is part of Singapore’s Project Guardian, with 24 institutions exploring asset tokenization. A minimum viable product is expected in 2025, pending regulatory approval. The initiative highlights the trend of banks seeking permissioned blockchain solutions, balancing integration with Ethereum and addressing concerns such as unknown validators and transaction fees.
Bitcoin fell 4.6% to $100,300, and Ethereum dropped 5.96% to $3,600 following the Federal Reserve’s announcement of a 25 basis point rate cut. While the cut met expectations, Fed Chair Jerome Powell’s remarks about only two rate cuts in 2025 and an inflation outlook increase from 2.1% to 2.5% unsettled markets.
The Fed cited potential policy changes, including tariffs and deficit expansion, as influencing factors. Analyst Skew highlighted that Bitcoin cleared positions on both sides and must reclaim the $100,000–$101,400 range to regain stability. The hawkish tone signaled the Fed’s commitment to adjusting policies as needed for economic conditions.
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