TronWeekly

Crypto World News

You are here: Home / All Posts

All Posts

Shiba Inu’s Shibarium Unlocks New Milestone: Cross 100M Transactions

by

Shiba Inu’s layer-2 scaling protocol, Shibarium, has triumphantly surpassed a significant milestone by clocking over 100 million transactions. This noteworthy achievement prompted enthusiastic acknowledgments from SHIB marketing specialist Lucie and lead developer Shytoshi Kusama, expressing joy and pride in the new feat. Delving into the statistics, the Shiba Inu trifecta tokens, namely BONE, SHIB, and LEASH, collectively associated with Shibarium, have collectively powered this impressive transaction count.

The protocol has been registering a consistent surge, particularly in recent days, where daily transactions have consistently exceeded 7.5 million. The most recent weekend witnessed a remarkable spike, with an additional 30 million transactions propelling the cumulative count beyond the 100 million mark since the protocol’s inception three months ago.

Shiba Inu
Shiba Inu's Shibarium Unlocks New Milestone: Cross 100M Transactions 2

Shibarium’s giant strides are further emphasized in the 12th edition of SHIB magazine, which highlights the influx of new participants, with over 30,000 fresh accounts created within the past five days alone. This surge brings the total account count to an impressive 52,000, showcasing a steady upward trajectory in user engagement.

The heightened activity coincides with an imminent release on the main network scheduled for later this year. As a strategic move toward continuous innovation, the Shibarium team has announced the retirement of Puppynet on December 15th. This marks the prelude to an upcoming upgrade slated for release in January, underscoring the project’s unwavering commitment to progress and development.

Shiba Inu Goes Live On Coincheck

In parallel developments, Coincheck, a prominent Japanese exchange, has expanded its roster of supported crypto assets by incorporating SHIB into its offerings. This development enables Coincheck users to seamlessly engage in buying, selling, sending, and receiving the Shiba Inu-themed token.

Additionally, the trading firm has ambitious plans to extend its support for Shiba Inu by incorporating it as a payment currency on its NFT marketplace. Users leveraging SHIB on the Coincheck NFT marketplace gain the ability to make payments for a diverse array of digital collectibles using the canine-inspired token.

To ensure a seamless trading experience, Coincheck advises users to update their trading app to the latest version, as the accurate price of Shiba Inu may not be displayed without the update. This proactive approach aims to enhance the user experience and maintain accurate asset valuations within the CoinCheck ecosystem.

Ethereum’s Comeback: JPMorgan Predicts 2024 Outperformance Over Bitcoin

by

In a recent report, JPMorgan has forecasted that Ethereum (ETH) is poised to outperform Bitcoin (BTC) and other cryptocurrencies in 2024. Despite the bank maintaining an overall cautious stance on the crypto markets, JPMorgan analysts, led by Nikolaos Panigirtzoglou, expressed confidence in Ethereum’s resurgence next year. 

image 49
Ethereum's Comeback: JPMorgan Predicts 2024 Outperformance Over Bitcoin 4

Catalyst For Ethereum’s Resurgence

The catalyst for this predicted upswing is the anticipated EIP-4844 upgrade, also known as Protodanksharding, scheduled for the first half of 2024. According to the analysts, this upgrade will significantly enhance Ethereum’s network activity and contribute to its outperformance.

Protodanksharding represents an initial step toward implementing Danksharding, a more efficient form of sharding for Ethereum. Unlike the initially planned sharding technique, Danksharding introduces data blobs—temporary data packets attached to blocks.

These data blobs can hold more information than blocks but are not permanently stored or accessed by the Ethereum virtual machine, improving the network’s overall efficiency.

JPMorgan highlighted the advantages of this upgrade for Layer 2 networks like Arbitrum and Optimism, as it provides additional temporary data space to boost network throughput and reduce transaction fees. Importantly, this enhancement is achieved without altering the Ethereum block size.

In contrast, JPMorgan analysts are less optimistic about Bitcoin’s prospects in the coming year. Factors traditionally considered bullish for Bitcoin, such as the potential approval of spot ETFs and the upcoming halving, are already priced in. 

Drawing on historical trends, the analysts pointed out that Bitcoin’s market price-to-production cost ratio decreased after the 2020 halving, suggesting a similar move after the 2024 halving is plausible.

The report also highlighted the “biggest disappointment” in decentralized finance (DeFi). JPMorgan analysts expressed concerns about DeFi’s inability to penetrate the traditional financial system, hindering the crypto ecosystem’s transition from native applications to real-world use. 

Issues such as slow tokenization evolution, fragmentation, lack of cooperation, interoperability between platforms, and delays in central banks’ digital currency introductions were cited as obstacles.

Regarding the crypto venture capital funding outlook, JPMorgan analysts noted a tentative improvement in the fourth quarter compared to a subdued earlier part of the year. They cautiously suggested that if this positive trend continues into the first quarter of 2024, it could signify the end of the “crypto winter,” marking a significant development for the industry.

Related Reading | Chainlink (Link) Drops 12% As Link V0.2 Pool Limits Signal Short-Term Impact

Avalanche Overtakes Dogecoin: Climbs To 9th Position With Soaring Market Cap

by

Avalanche has successfully surpassed Dogecoin to secure the ninth position on CoinMarketCap’s leaderboard of the top 100 cryptocurrencies. The current market value of Avalanche stands at an impressive $14,259,273,712, outshining Dogecoin’s market cap of $13.72 billion.

image 47
Source: CoinMarketcap

Over the past month, AVAX has experienced a remarkable surge in its price trajectory, coinciding with a peak in open interest for the cryptocurrency. The monthly chart reveals an astounding 130% rise in AVAX, accompanied by 21 out of 30 (70%) green days and a 22.30% price volatility over the last 30 days. 

This outstanding 30-day performance has propelled the altcoin’s price from $16 to $42, with the surge attributed to Avalanche’s strategic focus on real-world assets (RWAs) and GameFi leading up to 2024. Notably, the yearly performance of AVAX has also turned heads, with IntotheBlock highlighting on Twitter that Avalanche has outperformed Bitcoin, boasting an impressive 200+% yearly return.

As of the latest data from CoinMarketCap, Avalanche is currently trading at $40.85, with a 24-hour trading volume of $2,440,986,022.  The token has experienced an 8.96% increase in the last 24 hours, showcasing a circulating supply of 365,756,605 AVAX coins and a max supply of 720,000,000 AVAX coins.

AVAX 1Y graph coinmarketcap
Source: CoinMarketcap

Examining the weekly chart, Avalanche has exhibited notable gains, recording a 47.6% increase over the last 7 days. This upward trend has sparked considerable interest in the token, presenting a potential investment opportunity.

Avalanche (AVAX) Price Prediction

The latest insights from Changelly bring forth an intriguing short-term forecast for AVAX, suggesting a modest increase in its value. According to the most recent prediction, the token is expected to experience a subtle uptick, with a projected growth of -1.89%. If this forecast holds true, AVAX could reach a value of $40.02 by December 15, 2023. 

Delving deeper into the technical indicators, the current market sentiment for Avalanche appears to be predominantly bullish, with a 90% confidence in a positive trajectory. However, the remaining 10% suggests a bearish undertone, underscoring the unpredictability that often characterizes cryptocurrency markets.

image 48

The Fear & Greed Index, a widely-watched metric gauging market sentiment, provides further context to AVAX’s current standing. As of the latest analysis, the Fear & Greed Index score for Avalanche stands at 65, indicating a prevailing sense of greed among market participants. 

Related Reading | Binance’s Turbulent Year: Declining Market Share & Regulatory Headwinds

Bitcoin Mempool Surge: Inscriptions Drive 2023 Blockspace Boom

by

In a report by Glassnode, Lead On-chain Analyst Checkɱate reveals that the Bitcoin mempool is currently teeming with unconfirmed transactions, leading to a mixed reaction among Bitcoin enthusiasts. The culprit behind this congestion appears to be the growing prevalence of a novel feature called “Inscriptions,” introduced in February 2023.

Inscriptions, described as a significant buyer of Bitcoin blockspace, have triggered a surge in fees and consequently impacted miner profitability. The Bitcoin mempool, essentially a collection of unconfirmed transactions awaiting inclusion in a block, has been consistently data-full since February, with a notable increase in pending transactions observed since May. These unconfirmed transactions seem to be characterized by a smaller data footprint, allowing more of them to fit within the 300MB capacity of the Glassnode mempool.

image 49

The driving force behind this surge in demand for blockspace is the adoption of Inscriptions, enabling users to encode files into the witness portion of the transaction data structure. Two distinct waves of inscriptions have been identified: the first dominated by images and files, creating Bitcoin native NFTs using the Ordinal protocol, and the second characterized by text, particularly the emergence of the experimental BRC-20 token.

The impact of inscriptions is evident in the expanding Unspent Transaction Output (UTXO) set, witnessing a historic weekly increase. Notably, the BRC-20 token called SATS has contributed significantly to this surge, accounting for over 45% of the uptick in UTXOs.

image 50

Bitcoin Blocks: Filler or Thriller?

Interestingly, the report suggests that text-based inscriptions are acting as ‘filler’ for blocks, consuming a relatively stable 20% or less of the available block space. This analogy is further supported by the share of fees paid by inscriptions, with both waves consistently attributing around 20% of transaction fees to this new feature.

image 51

However, while positive, the impact on miner incomes remains relatively modest. Although there was a substantial fee spike in May, total fees and their share of miner income are still relatively low compared to historical levels. The growing hash rate competition has driven the hash price to new all-time lows, posing potential challenges for miners.

While inscriptions have become a significant buyer of last resort for cheap blockspace, the increasing competition among miners and the impending halving event may put miners on the edge of income stress unless Bitcoin prices see a substantial increase in the near term. 

Related Reading | Bitwise’s Bold Call: Bitcoin to Break $80K, ETFs to Reign Supreme

DeFi: Over $58 Billion Lost In Exploits Since 2020, But 2023 Shows Hope

by

Blockchain analyst firm IntoTheBlock has reported that the decentralized finance (DeFi) ecosystem has witnessed a staggering loss of over $58 billion since July 2020 due to various exploits. The findings, available on their latest Perspectives Dashboard, present a comprehensive overview of the tumultuous landscape of DeFi vulnerabilities.

Since mid-2020, a total of 123 significant incidents have been documented, resulting in a jaw-dropping cumulative loss of $58.78 billion. Notably, despite periodic spikes in losses, 2023 is poised to record the lowest amount of funds lost, estimated at around $1 billion, since the tumultuous year of 2020.

The exploits in the DeFi space are categorized into two main types: Economic Exploits and Technical Exploits. Economic Exploits involve the strategic manipulation of vital protocol parameters, while Technical Exploits are executed through adversarial manipulation of the protocol’s programmatic functions, often leading to unauthorized fund withdrawals. A vivid chart showcases the prevalence of each exploit type over time, revealing that while technical risks are more common, economic risks have also inflicted substantial damage.

image 52

A deeper dive into the data exposes that mechanism design flaws and smart contract bugs are the primary culprits behind the majority of losses. Private key management-related exploits alone accounted for over $1.4 billion in losses, underscoring the critical need for thorough audits and robust security measures.

Furthermore, IntoTheBlock’s analysis reveals that specific protocol types, such as lending protocols and decentralized exchanges (DEXes), are more frequently targeted. This emphasizes the urgency for robust risk management strategies in these areas. Lending protocols, in particular, have suffered the most, with at least 34 exploits leading to losses totaling $1.3 billion.

image 52 1

DeFi’s Silver Lining

Despite the alarming figures, there seems to be a glimmer of hope. IntoTheBlock’s Head of Research, Lucas, highlighted in a recent tweet thread that 2023 is on track to have the least amount of funds lost since 2020, signaling a potential improvement in the overall security of the DeFi ecosystem. However, the report highlights the importance of ongoing efforts to address vulnerabilities and implement robust security measures within the rapidly evolving DeFi landscape.

Related Reading | S&P Global Ratings Launches Stablecoin Stability Assessment

Blockchain.com’s Ambitious Workforce Expansion Plan: A 25% Surge

by

Crypto exchange Blockchain.com has unveiled plans to bolster its workforce by 25% in the first quarter of 2024. This expansion thrust includes venturing into untapped territories such as Nigeria and Turkey. Adding further firepower to its ambitions, Blockchain.com has enlisted the expertise of Curtis Ting, the former head of global operations at Kraken, to spearhead the establishment of a new hub in Paris.

image 52 2
Blockchain.com's Ambitious Workforce Expansion Plan: A 25% Surge 14

However, this move is not just about geographical reach; it’s a proactive measure to navigate the intricate web of regulatory frameworks, with the company intending to create local entities across Europe.

Blockchain.com’s Resilience Amid Downsizing

This development comes on the heels of a tumultuous period for the exchange. In January, reports surfaced indicating that Blockchain.com had downsized its workforce by 28%, a decision attributed to the crypto industry facing formidable challenges over the past year. The company had previously grappled with a $270 million hit on loans extended to the failed hedge fund Three Arrows Capital, resulting in the necessity to trim its operational costs. 

Blockchain.com representative acknowledged the challenging landscape, stating:

The crypto ecosystem is facing significant headwinds as it course corrects from the challenges of the last year.

Despite the earlier setbacks, Blockchain.com is now adopting a proactive stance to reposition itself in the ever-evolving crypto landscape. The CEO, Peter Smith, highlighted the company’s intent to enter the Nigeria and Turkey markets in the coming year. Smith expressed confidence in the strategic timing of their expansion, likening the industry’s current phase to an “early spring” after the crypto winter of 2022.

In an interview, Smith underscored the company’s impressive financial trajectory, with revenue experiencing accelerated month-over-month growth. The CEO refrained from disclosing specific figures but acknowledged the market dynamics that played to Blockchain.com’s advantage, stating:

There’s probably 60-70% less competition right now than there was at the end of 2021 — brokerages, exchanges, any line you look at.

To fortify its position and fund its ambitious expansion plans, Blockchain.com recently secured $110 million in a Series E strategic financing round led by Kingsway Capital, a UK-based investment firm. This funding round valued the company at less than half of its $14 billion valuation in the spring of 2022. However, with the latest infusion of capital and strategic moves, Blockchain.com is poised to navigate the crypto landscape, eyeing opportunities amid the changing tides of the industry.

Related Reading | Crypto Crackdown: US Seizes $500,000 From Asian ‘Pig Butchering’ Scam

Binance Faces Three-Month Deadline To Register In The Philippines

by

The Philippines Securities and Exchange Commission (SEC) has given Binance, the world’s largest cryptocurrency exchange by trading volume, a three-month grace period to register as a virtual asset service provider (VASP) in the country or face a ban, according to a report from local news BitPinas.

The SEC issued an advisory to Binance on Nov. 28, 2023, stating that the exchange was operating without a license and warning the public of the risks of dealing with unregistered entities. The advisory also said that Binance was not authorized to solicit investments or offer securities in the Philippines.

The advisory came after the SEC received complaints from Filipino investors who claimed they lost money on Binance’s platform due to technical glitches, unauthorized transactions, and account hacks.

According to Kelvin Lee, the head of the SEC, there has been a lot of confusion on the internet about the ban. In a panel on Dec. 13, 2023, he clarified that the ban would take effect three months after the advisory was issued, which was on November 29, 2023.

Depending on how feedback is, we can actually extend that, but currently, we should feel lucky with the three months, said Lee.

Binance Not the Only Target

Lee also said that Binance was not the only exchange that was issued with an advisory for unregistered operations. He said that OctaFX and MiTrade, two other exchanges, also faced bans after three months.

He said that the SEC had a sizable list of unregistered exchanges that would gradually emerge. However, he said that the SEC was also trying a “wait-and-see” approach on whether or not the exchanges would register after seeing the action taken against Binance.

He said that the SEC was not against cryptocurrency or innovation but rather concerned about consumer protection and compliance.

Lee Advocates Compliance Amid Binance Ban

Lee said that he received criticism regarding the Binance ban because it was “cheaper” than other registered exchanges.

Of course, they are cheaper because they never bothered to register in the Philippines and bothered to comply […] Unlike the registered entities, there is of course compliance costs, said Lee.

Lee­ emphasized the importance of local investors channeling their inve­stments into registere­d entities. He highlighted that the country currently accommodates 17 VASPs that provide fiat-to-crypto services and are duly re­gistered.

Lee­ stressed the pivotal significance­ of registration and underscored its direct correlation with safeguarding consumer interests. He strongly advocated for collaboration with the­ registered e­ntities to ensure a secure and regulated inve­stment landscape.

Related Reading | Binance Challenges SEC’s Case: Asserting Irrelevance Of $4.3B Settlement

Invesco & Galaxy’s Ethereum ETF Approval in Limbo: SEC Extends Review

by

In an unexpected turn of events, the joint Ethereum Spot ETF application from Invesco and Galaxy faces a delay as the Securities and Exchange Commission [SEC] has decided to postpone its decision until February 6, 2024. The SEC, in a notice dated December 13, has opted for an extended evaluation period to determine whether to approve or disapprove of a proposed rule change enabling the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.

The original 45-day timeframe, starting from the notice’s publication on December 23, 2023, is now being prolonged, with the new decision date set for February 6, 2024, as outlined in the notice. In September of the current year, Invesco, a major asset management firm, collaborated with Mike Novogratz’s Galaxy Digital to submit the Ethereum spot ETF application to the SEC. The application involved Galaxy Digital Funds serving as an execution agent for the ETF, facilitating the buying and selling of Ethereum. Notably, this Ethereum application followed a joint Bitcoin product application in June.

Ethereum
Invesco & Galaxy's Ethereum ETF Approval in Limbo: SEC Extends Review 16

The ripple effect of this delay is felt across various spot crypto ETF applications, underscoring the SEC’s careful approach. The SEC attributes the delay to a thorough consideration of the risks and implications associated with approving a spot Ether ETF.

Grayscale Ethereum ETF

In a parallel development, the SEC has also extended the timeline for deciding on the Grayscale Ethereum Trust’s spot ETF application by 45 days, with the new decision date set for January 25, 2024. Grayscale Investments, the entity behind the Grayscale Ethereum Trust, applied to the SEC in October 2023, seeking approval to convert its trust into a spot ETF. Such an ETF would track the price of ETH, allowing investors to gain exposure to ETH without direct cryptocurrency acquisition and storage.

It’s worth noting that the SEC has yet to greenlight any spot for Ether or Bitcoin ETFs, consistently delaying decisions on all applications received. The delays stem from the SEC’s concerns about potential market manipulation and investor protection issues associated with spot ETFs, underscoring the regulatory body’s cautious stance in this evolving landscape.

S&P Global Ratings Launches Stablecoin Stability Assessment

by

S&P Global Ratings, a leading provider of credit ratings and risk assessments, has launched its stablecoin stability assessment, which evaluates a stablecoin’s ability to maintain its peg to a fiat currency. This is a significant advance in the firm’s commitment to supporting both TradFi and DeFi clients with its robust analytical and risk assessment capabilities.

S&P Global Ratings uses its analytical approach to assess a stablecoin’s stability on a scale of 1 (very strong) to 5 (weak). The approach considers various factors that can affect a pegged cryptocurrency’s stability, such as asset quality risks, over-collateralization requirements, and governance.

Eight Leading Stablecoins Ranked From Strong To Weak

As part of the launch, S&P Global Ratings has published public assessments of eight leading stablecoins: DAI, FDUSD, FRAX, GUSD, USDP, USDT, TUSD, and USDC. These pegged digital currencies have different designs and features, such as the type of assets backing them, the degree of decentralization, and the governance structure.

According to S&P Global Ratings’ analytical approach, the pegged digital currency stability assessments for the eight stablecoins range from 2 (strong) to 5 (weak) in terms of their ability to maintain their peg to a fiat currency. The table below shows the summary of the assessments:

Screenshot 2023 12 13 152211

The quality of the assets backing the stablecoin is a critical driver of the final assessment. Stablecoins backed by crypto assets, such as DAI and FDUSD, have higher assessments than those backed by US dollars or other assets, such as USDT and USDC.

Crypto assets have lower credit risk and higher market value than fiat currencies or other assets. However, crypto-backed pegged digital currencies also face higher custody and volatility risks, which require over-collateralization and liquidation mechanisms to mitigate.

Pegged Cryptocurrencies Are Not Immune To Risks

As we look to the future, we see stablecoins becoming further embedded into the fabric of financial markets, acting as an important bridge between digital and real-world assets. Nonetheless, it’s important to acknowledge that stablecoins are not immune to factors such as asset quality, governance, and liquidity, said Lapo Guadagnuolo, senior analyst at S&P Global Ratings.

Pegged cryptocurrencies are not without challenges and risks. They face regulatory uncertainty, operational complexity, and technological vulnerabilities. They also depend on the trust and transparency of their issuers and operators. Therefore, robust stability assessments are essential to inform investors and users about the risks and benefits of using pegged digital currency.

S&P Global Ratings’ stablecoin stability assessment is a valuable tool for the digital asset ecosystem, as it provides an independent and objective evaluation of a pegged cryptocurrency’s stability. By applying its deep expertise in risk assessment, S&P Global Ratings aims to support the growth and innovation of both TradFi and DeFi with its pegged digital currency stability assessment.

Related Reading | Binance Challenges SEC’s Case: Asserting Irrelevance Of $4.3B Settlement

Bitwise’s Bold Call: Bitcoin to Break $80K, ETFs to Reign Supreme

by

Bitcoin has staged a robust comeback following a notable retracement, surmounting multiple resistance levels in its trajectory. As 2023 draws to a close, the crypto space is abuzz with predictions for Bitcoin’s performance in 2024. Ryan Rasmussen, a research analyst at Bitwise, has outlined the top 10 crypto forecasts for the upcoming year.

Foremost among the predictions is the anticipation that Bitcoin will ascend to trade above $80,000, marking a new all-time high. Two pivotal catalysts are expected to propel this surge: the imminent launch of a spot Bitcoin ETF in early 2024 and the halving of new Bitcoin supply around the end of April.

Bitcoin
Bitwise's Bold Call: Bitcoin to Break $80K, ETFs to Reign Supreme 19

Additionally, the Bitwise team foresees the approval of spot Bitcoin ETFs, collectively constituting the most successful ETF launch in history. With an estimated capture of 1% of the $7.2 trillion U.S. ETF market, these spot Bitcoin ETFs could amass $72 billion in assets under management within five years.

Coinbase, the prominent cryptocurrency exchange, takes center stage in the third prediction, with an anticipated doubling of revenue. This surge is expected to surpass Wall Street expectations by at least 10 times, fueled by historical surges in trading volumes during bull markets and the successful introduction of new products.

Bitwise also delves into the realm of stablecoins, predicting that more money will settle using stablecoins than via Visa. With stablecoins evolving into one of crypto’s “killer apps” and the market growing to $137 billion in the past four years, 2024 is earmarked for substantial growth in stablecoin usage.

For Ethereum, the crypto platform envisions a revenue surge to over $5 billion as users flock to crypto applications, with fees paid to use Ethereum expected to at least double in 2024. This projection positions Ethereum as one of the fastest-growing large-scale tech platforms globally.

25% of Financial Advisors will Embrace Bitcoin by 2024

A significant upgrade to Ethereum, as detailed in its sixth prediction, is anticipated to drive the average transaction cost below $0.01. The implementation of EIP-4844 could result in a remarkable 90%+ reduction in Ethereum transaction costs, paving the way for mainstream applications in the crypto space.

The final prediction foresees a pivotal shift among financial advisors, with 1 in 4 expected to allocate to crypto in client accounts by the end of 2024. This shift is predicated on the ease of Bitcoin accessibility, anticipating an increasing adoption trend among advisors as crypto gains prominence in client portfolios.