Cryptocurrencies To Watch

Author: Abigail Michelle

  • First Bitcoin-Backed USDa Stablecoin Surpasses $400M in Just Two Weeks

    First Bitcoin-Backed USDa Stablecoin Surpasses $400M in Just Two Weeks

    In a testament to the growing demand for innovative financial solutions, USDa, a Bitcoin-backed overcollateralized stablecoin, has shattered expectations, surpassing a staggering $400 million in supply in a mere two weeks after its launch.

    In addition to its impressive adoption rate, the stablecoin also reached a notable milestone, surpassing $700 million in total value locked (TVL) within the same two-week period following its launch.

    Avalon Labs Unveils Pioneer Bitcoin-Backed Stablecoin

    Earlier this month, Avalon Labs, a Bitcoin-based finance firm, introduced USDa, which it calls “The Bitcoin Money.”

    Apart from its pioneering work in blockchain and financial technology, the firm leverages its credibility as a winner of the second round of the prestigious BNB Incubation Alliance competition.

    To further enhance the offerings on the USDa project, Avalon Labs introduced an incentive program. This program features a $50 million deposit cap that enables participants to earn impressive annual percentage yields (APY) ranging from 20% to 50%, coupled with a generous 3x points rewards system.

    What is Avalon Labs’ USDa?

    Avalon Labs’s USDa project allows Bitcoin holders to access liquidity with a fixed 8% borrowing rate without selling their BTC. Built on LayerZero technology for cross-chain compatibility, the project integrates with DeFi and CeFi ecosystems, bridging the gap between institutional liquidity and decentralized innovation.

    Users seeking to acquire USDa stablecoins can do so through two primary channels. They can either purchase USDa on accepted decentralized exchanges (DEXs) or directly through the Avalon Finance website.

    Avalon Labs also offers two distinct methods for minting USDa tokens. Users can deposit collateral, such as Fractional Bitcoin or Wrapped Bitcoin (FBTC), into the Avalon CeDeFi platform to mint USDa.

    Alternatively, they can deposit USDT at a 1:1 ratio to receive USDa tokens. However, at the time of launch, the USDT deposit option was not available to users.

    USDa’s impressive supply of $400 million catapulted it to the third spot among CDP stablecoins, trailing only MakerDAO and JustStables. In a recent article, MakerDAO underwent a significant transformation. The DeFi platform rebranded as Sky and introduced its revamped stablecoin and governance token, $SKY.

  • First Time! Solana’s DEX Volume Surpasses $100B in Monthly Trades

    First Time! Solana’s DEX Volume Surpasses $100B in Monthly Trades

    Solana’s decentralized exchange (DEX) trading volume has crossed the $100 billion mark for the first time, signaling a major milestone for the platform.

    According to data from DeFiLlama, the Solana network has recorded a total of $109.8 billion in DEX trade volume through November.

    With a staggering $100 billion in monthly DEX volume, Solana’s record-breaking DEX volume has surpassed Ethereum’s monthly total by nearly 100%, up from $52.5 billion in October.

    Solana’s Explosive Growth

    As of press time, Solana’s price stands at $241.28, reflecting a significant 43% increase over the past month, according to CoinMarketCap data.

    Experts believe that SOL’s price surge and DEX volume growth can be attributed to the rising popularity of memecoins, which has been driven by the launch of innovative platforms like Pump.fun and Raydium DEX. 

    Additional data from DeFiLlama revealed that the two platforms achieved unprecedented success in November, posting record highs in trading volume of $71.5 million and $182 million, respectively.

    Solana’s competitive transaction fees and user-friendly interface have also created an ideal environment for memecoin adoption and growth.

    Last week, on November 19, Solana’s daily transaction fees skyrocketed to $11.84 million, setting a new record.

    This surge, as with its recent DEX volume, was fueled by heightened memecoin activity, contributing to the network’s revenue of $5.92 million. Notably, Raydium, Solana’s leading DEX, experienced substantial fee growth, accumulating $15 million over two consecutive days, with daily revenue reaching approximately $1 million.

    Will Solana’s Recent Gains Spark a Full-Blown Bull Run?

    In October, Geoffrey Kendrick, Global Head of Digital Assets Research at the British multinational bank Standard Chartered, predicted that Solana could outperform Bitcoin and Ethereum and increase by 5X by the end of 2025 if Donald Trump wins the United States presidential election.

    Given the impressive performance of Solana’s network in recent times, it appears that Geoffrey Kendrick’s prediction may indeed materialize, paving the way for a significant bull run in 2025.

    An additional factor that may significantly contribute to the realization of Kendrick’s Solana prediction is the fact that the U.S. Securities and Exchange Commission (SEC) is already processing the S-1 applications that about three US-based asset managers have submitted,  filing for a spot Solana exchange-traded fund (ETF).

  • Institutional Investors Will Reduce BTC Price Volatility: Fred Thiel

    Institutional Investors Will Reduce BTC Price Volatility: Fred Thiel

    In a recent interview with CNBC, Fred Thiel, CEO of Marathon Digital Holdings, shared his insights on Bitcoin’s future price trend.

    According to Thiel, Bitcoin’s price volatility will decline in the coming years, paving the way for a stable and sustained upward trend driven by increasing institutional demand and adoption rates.

    “The volatility of past years where you would hit a peak and then see a 20% or 30% drawdown, I think (they) are gone at least for the near term future. I think what we’re going to see is essentially institutions just waiting to buy up Bitcoin… I think that for the foreseeable future, we’ll continue to see bitcoin price move up, you know, up and down, up and down, but generally, the trend will be upwards,” Fred Thiel predicted in the interview.

    Institutional Appetite for Bitcoin on the Rise

    Recent months have seen a surge in institutional investment in cryptocurrencies, with Bitcoin being the primary target.

    For instance, Thiel’s company Mara Holdings (formerly Marathon Digital) recently completed a $1 billion offering of 0% convertible senior notes due in 2030 to cover operational costs, including expanding its BTC holdings.

    Utilizing proceeds from the $1 billion 0% convertible senior notes offering, the company invested $572 million in its quarterly Bitcoin acquisition, securing around 5,771 BTC for $95,554 per bitcoin.

    Leading business intelligence firm MicroStrategy is another institution with a strong appetite for Bitcoin. The company’s numerous BTC shopping sprees have secured its position as one of the largest corporate holders of the cryptocurrency.

    After its latest purchase of 51,780 worth $4.6 billion at an average cost of $88,627 per BTC, the intelligence company announced its plans to raise $2.6 billion from senior convertible notes at a 0% interest rate to further expand its Bitcoin holdings.

    Not Left Behind: Pension Funds Enter the Bitcoin Bandwagon

    Fred Thiel also noted in his CNBC appearance that pension funds are also dipping into the Bitcoin market, with some investing in Bitcoin Exchange-Traded Funds (ETFs). A notable example is the Michigan State Pension Fund’s decision to invest $6.6 million in 110,000 shares of the ARK 21Shares Bitcoin ETF.

    Thiel cited an improving regulatory landscape, likely fueled by Donald Trump’s pro-bitcoin stance and the impending departure of SEC’s Gary Gensler, as a key driver of growing demand from both retail and institutional investors.

  • Spot Bitcoin ETFs Surge Past $100B as Rally Continues

    Spot Bitcoin ETFs Surge Past $100B as Rally Continues

    In a stunning display of market enthusiasm, spot Bitcoin exchange-traded funds (ETFs) have crossed a major milestone, blasting past the $100 billion mark, according to data compiled by Bloomberg.

    The new record set by the Bitcoin ETF comes as the underlying asset continues its record-breaking rally fueled by investors’ insatiable appetite for secure, compliant, and liquid exposure to the rapidly evolving and highly volatile cryptocurrency landscape.

    The first wave of spot Bitcoin ETFs, including those from BlackRock Inc., Fidelity Investments, Invesco, Valkyrie, VanEck, and others, have propelled the market past $100 billion, solidifying their place as one of the most remarkable fund category launches in industry history, just 10 months after their debut.

    Trump’s Triumph Sparks Bitcoin Boom

    Donald Trump’s presidential win has sent BTC soaring to record-breaking heights. Its value is marching towards the $100,000 mark as traders eagerly anticipate policy changes favoring the crypto industry. At press time, the crypto asset is selling at $97,600.

    This remarkable surge in BTC’s value and other crypto assets is driven mainly by Trump’s pro-crypto stance, which is expected to create a regulatory environment favorable to increased growth and adoption.

    Bitcoin’s value increased by about 90% in 2024, a remarkable surge attributed to key factors, including the debut of Bitcoin ETFs and the impact of Donald Trump’s reelection, driven by his pro-crypto stance.

    Consequently, the crypto asset emerged as the top performer in 2024, surpassing stocks, silver, and gold with a remarkable 49.2% year-to-date gain.

    With Trump’s victory, the market is betting on a potentially crypto-friendly shift in policy, fueling the rally.

    According to Caroline Bowler, the chief executive officer of BTC Markets Pty, “this price rally is being fed by the frequent pro-crypto news linked to the incoming Trump administration.”

    Crypto Rally to Continue on Trump’s Pro-Crypto Agenda

    During his campaign, Trump made bold commitments to the crypto community, pledging to foster an environment conducive to Bitcoin adoption and growth.

    His promises include dominating the Bitcoin mining sector, creating a strategic crypto reserve, releasing the founder of the famous Silk Road, Ross Ulbricht, and firing the current SEC head, Gary Gensler.

    Trump’s ability to fulfill his crypto-friendly promises is crucial in determining whether Bitcoin’s rally will continue. Time will tell if Trump’s administration will be a game-changer for the crypto space.

  • The Main Ether (ETH) Support Level to Watch as Price Eyes $4,000

    The Main Ether (ETH) Support Level to Watch as Price Eyes $4,000

    Ethereum (ETH) is poised for a significant rally, with its price targeting the $4,000 milestone. However, market participants are zeroing in on a critical support level at $3,000, which could propel the cryptocurrency’s upward momentum to the $4,000 mark and beyond.

    According to Ali Charts, a popular X personality and cryptocurrency analyst, Ethereum’s crucial support level lies at $3,000, a threshold bolstered by substantial investor interest, as evidenced by the significant accumulation of ETH at this price point.

    With about 2.82 million addresses accumulating over $6.14 million worth of ETH in the $3,000 price range, this robust demand zone serves as a ‘safety net’ and pivotal foundation for Ethereum’s future price movements, supported by the several buying activities of numerous market participants.

    Institutional Interest Ignites Ether’s Ascent

    As institutional interest in Ethereum continues to surge, a breakout above the $4,000 threshold appears increasingly likely.

    In a recent report, the State of Michigan Retirement System revealed in a 13F filing to the United States Securities and Exchange Commission (SEC) that it invested more than $11 million worth of crypto assets in Grayscale’s Ethereum exchange-traded fund.

    The Michigan pension agency bought 460,000 shares of the Grayscale Ethereum Trust (ETHE) and an additional 460,000 shares of the Grayscale Ethereum Mini Trust ETF (ETH), both worth about $10 million and $1.1 million at the time of the report.

    Ahead of Ethereum’s ETF debut, Bybit’s institutional head, Eugene Cheung, observed increased optimism towards Ether among institutional investors compared to retail investors.

    Data collected revealed a pronounced uptick in institutional investor appetite for Ether, as they substantially boosted their holdings from 6.54% to 14.29%, representing a 118% increase. Meanwhile, retail investors moderately expanded their allocation from 7.4% to 9.52%, signaling a broadly optimistic sentiment towards ETH price.

    Ahead of the SEC’s approval, Matt Hougan, Bitwise Asset Management’s CIO, predicted that the launch of Ethereum ETFs would catapult ether prices above $5,000. With a solid support base at $3,000, Ethereum is poised to extend its upward momentum to $4,000 and beyond.

  • Crypto User Loses $25 Million to Accidental Transfer

    Crypto User Loses $25 Million to Accidental Transfer

    In an unfortunate turn of events, a cryptocurrency investor has suffered an unprecedented financial setback after accidentally transferring $25 million worth of Renzo restaked ether tokens to their safe module rather than their intended secure wallet.

    Renzo is a decentralized finance (DeFi) protocol built on EigenLayer. The protocol is specifically designed to streamline Ethereum restaking, enhance yield optimization, and improve liquidity provision. The project’s platform utilizes innovative liquid restaking technology to streamline the staking process, optimizing yields and efficiency for users.

    The crypto user inadvertently transferred their tokens to the protocol’s safe module, designed for storing assets securely, thereby rendering them inaccessible or frozen.

    User Offers $2.5M to Recoup Lost Funds

    In a desperate bid to recover the $25 million worth of misplaced Renzo tokens, the affected crypto user has tweeted an offer of $2.5 million to anyone who can help retrieve the assets.

    In the comments section of the post, numerous X users empathized with the victim’s predicament and suggested seeking assistance from the Renzo team, emphasizing that it may be the sole viable solution for recovering the lost funds.

    Specifically, DefiLlama’s anonymous founder, 0xngmi, recommended that the Renzo team potentially implement a contract upgrade, adding a specialized function that could rescue and restore access to the stranded assets.

    Not the First

    Crypto users are increasingly suffering significant financial losses due to erroneous transfers resulting from either human error or exploitation by malicious entities.

    In May, an unsuspecting trader lost about $68 million in Wrapped Bitcoin (WBTC) due to an address-poisoning scam. The attacker manipulated the transaction’s destination address, redirecting the funds to their own wallet.

    In another incident that same month, a crypto user fell prey to a sophisticated phishing scam and lost 1,155 Wrapped Bitcoin (WBTC), valued at approximately $71 million.

  • a16z Back Crypto Policymakers with $23M War Chest

    a16z Back Crypto Policymakers with $23M War Chest

    In a bold move to promote regulatory clarity in the US cryptocurrency sector, renowned venture capital firm Andreessen Horowitz (a16z) has announced a $23 million pledge to support bipartisan efforts aimed at establishing clear crypto regulations.

    The $23 million investment will be allocated to Fairshake, a bipartisan political action committee advocating for pro-crypto legislation and its affiliated political action committees (PACs). The firm is seeking to drive progress on crypto regulation ahead of the crucial 2026 US midterm elections.

    Chris Dixon, a16z crypto founder, and managing director, said:

    Regardless of what happens in the 2024 elections, we’re committed to supporting policymakers, irrespective of party affiliation, who will work to establish a practical regulatory framework that protects consumers while allowing the industry to grow.

    a16z to Foster Crypto Adoption in the US

    Apart from contributing funds to Fairshake, Dixon noted that the firm will engage policymakers from both Democrat and Republican political parties to highlight blockchain’s benefits and regulatory challenges as part of its advocacy strategy to boost blockchain technology and cryptocurrency adoption in the US.

    The strategy will involve connecting lawmakers with entrepreneurs and developers to illustrate the real-world impact of unclear laws and numerous lawsuits. The goal is to encourage Congress to establish a clear compliance pathway for decentralized networks and legitimate crypto businesses.

    Dixon also emphasized that since regulatory clarity is vital for responsible growth and maintenance of the US’s tech innovation edge, the US needs a robust digital asset framework. He called on Congress to act quickly, emphasizing that clear regulations are vital for responsible growth.

    Crypto Giants Pump $78M into Fairshake

    Apart from a16z, Coinbase also made a significant contribution of $25 million to Fairshake. This investment is complemented by Andreessen Horowitz’s $23 million pledge. Combined with Fairshake’s prior fundraising efforts, totaling $30 million, the organization’s cumulative funds now stand at $78 million.

    During the 2024 election cycle, cryptocurrency companies invested significantly in political action committees (PACs) like Fairshake and its affiliates, Defend American Jobs and Protect Progress. Leading crypto firms, including Coinbase, Ripple, and Andreessen Horowitz (a16z), have collectively contributed over $200 million to these groups.

  • Michigan State Pension Fund Discloses Over $11M in ETH ETF

    Michigan State Pension Fund Discloses Over $11M in ETH ETF

    The State of Michigan Retirement System has invested over $11 million worth of crypto assets in Grayscale’s Ethereum exchange-traded fund, according to a 13F filing to the United States Securities and Exchange Commission (SEC). 

    The details of the 13F filing disclosed that the Michigan pension agency holds a considerable investment portfolio in Ethereum ETFs, consisting of 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at approximately $10 million, and an additional 460,000 shares of the Grayscale Ethereum Mini Trust ETF (ETH), currently valued at $1.1 million. 

    This substantial holding brings the agency’s total investment in ETH ETFs to over $11 million.

    Michigan Pension Fund Makes History

    The Michigan pension fund’s investment in ETH ETFs has achieved remarkable milestones, setting new precedents in the industry. 

    Notably, it has become the pioneering public pension fund to disclose an ETH ETF holding, marking a significant breakthrough in institutional investment. Furthermore, according to Matthew Sigel, Head of Digital Assets at VanEck, the fund’s substantial stake in Grayscale’s spot Ethereum ETFs has catapulted it to the top-five holder position.

    The Michigan State Pension Fund’s recent ETH ETF investment follows its initial crypto allocation in July, wherein it spent about $6.6 million to buy 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB).

    Institutional Capital Flows into Crypto Markets 

    Recently, traditional institutions have shown an increased appetite for cryptocurrency investments.

    Jersey City announced plans in July to allocate a portion of its pension funds to Bitcoin ETFs, while the Chief Financial Officer of Florida, Jimmy Patronis, also advocated for the American state to add Bitcoin (BTC) to its investment portfolio.

    A recent report highlights significant growth in traditional hedge funds holding crypto assets. The percentage of funds invested in cryptocurrencies rose from 29% in 2023 and 37% in 2022 to 47% in 2024. 

    Furthermore, the report revealed that existing cryptocurrency investors are committed to their allocations, with 67% maintaining current levels and 33% planning to increase their investments by year-end 2024. 

    Additionally, the adoption of digital asset derivatives rose, jumping from 38% in 2023 to 58% in 2024.

  • Solana’s Wallet Provider Phantom Goes Down Amid GRASS Airdrop

    Solana’s Wallet Provider Phantom Goes Down Amid GRASS Airdrop

    Phantom’s official status page is currently experiencing downtime. According to Phantom’s status page, the browser extension, mobile app, and website are up and running, but the backend is grappling with a major incident, indicating ongoing technical difficulties.

    With more than seven million users, Phantom is one of the largest and most popular wallets on Solana.

    Earlier today, the popular digital wallet alerted its user base to the technical issue via its official X account. In the update, Phantom acknowledged the problem with the website and guided users requiring immediate transaction processing.

    As a temporary workaround, users were advised to access decentralized applications (dApps) directly to execute urgent transactions, ensuring minimal disruption to their activities.

    GRASS Token Distribution Delayed

    The Phantom wallet’s unexpected downtime has disrupted the timely distribution of GRASS tokens, leaving users waiting.

    GRASS Airdrop was initially announced in September, with about 2 million active users qualified to receive tokens through the Phantom wallet.

    Scheduled for October 28, the airdrop aimed to distribute 10% of the total GRASS token supply, totaling 100 million tokens, and was listed on several popular crypto exchanges, including KuCoin, Bitget, and Bybit.

    However, the downtime has blocked users’ interaction with the Solana network through Phantom,  preventing them from claiming their tokens.

    Multiple Downtimes

    Phantom Wallet has faced multiple downtimes this year, with this incident being the latest.

    In February, it experienced delays in updating token balances and another issue in August, according to a tweet.

    The tweet read: “We have resolved a temporary issue that prevented users from properly seeing account balances. While this did not impact user funds, we know how serious incidents like this are. Our team is taking steps to make sure this doesn’t happen again. Thanks for your understanding.”

    Meanwhile, Phantom has not provided a timeline for restoring services following its latest downtime.

    In a recent report, Phantom integrated with Base network, a Coinbase-backed Ethereum layer-2 blockchain, giving its over three million users access to the network.

  • El Salvador Marks Three Years of Bitcoin Acquisition, Holds Nearly 6,000 BTC

    El Salvador Marks Three Years of Bitcoin Acquisition, Holds Nearly 6,000 BTC

    According to recent data, a glimpse into El Salvador’s government wallet confirms that the nation’s Bitcoin stash has reached an all-time high, now boasting almost 6,000 BTC.

    El Salvador’s total Bitcoin holdings, comprising both mined and purchased units, have exceeded $400 million in value, with a current balance of 5,917 BTC, supplemented by geothermal energy-powered mining operations at the Tecapa volcano

    Three Years of Making History

    Three years ago, El Salvador made history by becoming the first country to add Bitcoin to its national treasury.

    A few months after President Nayib Bukele proposed the bill to adopt the Bitcoin Law and the Legislative Assembly of El Salvador voted, the country made a pioneering purchase of more than 400 BTC worth about $20.9 million at the time of purchase.

    El Salvador’s decision received mixed reactions. Although some Salvadorans applauded the move as a breakthrough for mainstream cryptocurrency acceptance, the majority voiced concerns and skepticism.

    The International Monetary Fund (IMF) was among the critics, warning the country against accepting Bitcoin as legal tender due to the asset’s volatility and potential risks to the economy.

    Despite facing criticism and concerns, El Salvador, under President Nayib Bukele’s leadership, remains committed to its pioneering Bitcoin strategy.

    The country has continued to bolster its Bitcoin reserves, steadfastly purchasing one BTC daily since March 16, in fulfillment of President Bukele’s pledge to acquire one Bitcoin per day, continuing until the cryptocurrency’s value surpasses fiat currency affordability.

    El Salvador Boosts Bitcoin Adoption

    Inspired by El Salvador’s pioneering approach, Argentina is likely to follow suit and eventually incorporate Bitcoin into its treasury reserves.

    In May, Argentina’s National Securities Commission (CNV) president, Roberto Silva, and vice president, Patricia Boedo, met with Juan Carlos Reyes, president of El Salvador’s National Digital Assets Commission (CNAD), to discuss El Salvador’s groundbreaking experience with Bitcoin adoption.

    President Bukele’s commitment to Bitcoin adoption remains strong, as evidenced by the National Bitcoin Office’s plans to train and provide Bitcoin certificates to 80,000 public servants in El Salvador.

    In a recent report, the country’s President donated bitcoin (BTC) worth approximately $133,000 to support the construction of 1,000 schools across Honduras.