Author: Jonathan Agozie

Despite Bitcoin’s price briefly rising above $65,000 before falling below $64,000, on-chain data shows that 87% of BTC holders remain in profit, having acquired BTC at lower average prices.

MicroStrategy recently bought 11,931 BTC for $786 million using proceeds from a convertible note offering. Despite a slight rise in Bitcoin’s price to over $65,000, it has since fallen below $64,000. However, on-chain data from IntoTheBlock shows that 87% of BTC holders are still in profit. Most holders acquired BTC at average prices lower than the current level.

The on-chain data reveals that 46.72 million addresses are currently profitable, while 5.68 million addresses, or nearly 11%, are holding their coins at a loss. Only 2.67%, or 1.44 million addresses, bought BTC at prices close to the current trading level.

Sell-Off Pressure and Miner Capitulation

Bitcoin, which hit an all-time high above $73,000 in March, has struggled in recent weeks. It dropped to $56,000 in early May before rising above $71,000. However, it faced rejections at this level on May 21 and again in early June. On Friday, Bitcoin’s price fell over 3% to below $64,000, while Ethereum also dropped to under $3,500.

Currently, BTC is priced at around $63,700 and ETH at about $3,503. Over the past 30 days, Bitcoin is down 8% and Ethereum is down 6%. Several factors have contributed to this decline, leading to bearish market sentiment. IntoTheBlock analysts see the $61,900 to $63,800 range as a key support area.

As spot Bitcoin ETFs experience net outflows, miners have continued to sell post-halving. On-chain data indicates that miners sold more than 30,000 BTC in June. Bitcoin analyst Willy Woo commented on X that miner capitulation might remain a significant downside factor for BTC in the short term. He believes this capitulation is taking longer than in previous post-halving periods, possibly due to ordinal inscriptions that have increased miner profits. “I’ll break it down in simple terms. When does Bitcoin recover? It’s when weak miners die and hash rate recovers,” Woo tweeted.

Additionally, there has been increased sell-off pressure this week, potentially due to the German government. Earlier this year, German police seized 50,000 BTC, worth $2.1 billion at the time, from the pirated film site “Movie2K.” The value of these coins has since risen to over $3 billion. Recently, the address linked to this seizure moved over $110 million worth of BTC to exchanges like Kraken and Bitstamp.

Historically, significant token burns have positively impacted cryptocurrency prices, and the Shiba Inu community hopes this recent surge will yield similar results.

Shiba Inu Coin (SHIB) is in the spotlight again with a massive 1000% increase in its burn rate over the past 24 hours, according to Shibburn data. This recent surge saw 37.53 million SHIB tokens burned, including 10.02 million from a single wallet (0xa9d…d3e43).

Burning tokens is a strategy to reduce the total supply of a cryptocurrency. Making the currency scarcer could raise the price. The Shiba Inu community has been actively burning SHIB to boost its value. So far, 410 trillion SHIB tokens have been burned, leaving a circulating supply of 583.31 trillion.

Shiba Inu Burn Rate Fuels Optimism

This sharp rise in the burn rate has sparked optimism among SHIB investors, who hope for a price increase. Historically, significant token burns have positively impacted cryptocurrency prices. The Shiba Inu community hopes this recent surge will have a similar effect.

Adding to the excitement, Shiba Inu’s lead developer, Shytoshi Kusama, announced plans to use revenue from the Shiba Eternity Web3 game’s in-app purchases to support more SHIB and LEASH token burns. This initiative is part of the Shiba Inu project’s strategy to increase token value. They will use the Shibarium layer-2 scaling solution to create more opportunities for token burns.

However, the broader market, investor behavior, and regulatory news will also influence SHIB’s price. The crypto market remains volatile, and investors should proceed with caution. Prices can change rapidly due to various factors, making it essential to stay informed.

Meanwhile, Whale Alert reported that a major investor accumulated 2.2 trillion SHIB from the Robinhood exchange. This shows significant interest from large investors, which can also impact the price positively.

Overall, the Shiba Inu community is hopeful. The increased burn rate and the strategic use of game revenue could lead to a price surge for SHIB. However, it is crucial to consider all market factors and stay cautious in the ever-changing crypto landscape.

The recent purchase suggests a positive outlook on Bitcoin’s future, sparking interest and speculation within the crypto community.

A savvy Bitcoin investor, known as a “smart whale,” has re-entered the market, buying 6,070 bitcoins worth $395 million during a recent dip. This marks the whale’s first purchase in over 18 months.

A smart whale bought 6,070 $BTC($395M) in the recent market drop!

This whale bought ~41K $BTC($794M) in the 2022 bear market at an average price of ~$19K.

He then sold 37K $BTC ($1.74B) at an average price of $46.8K in the 2023 and 2024 bull markets, making more than $1B!

This… pic.twitter.com/hBxxtlizgh

— Lookonchain (@lookonchain) June 20, 2024

Previously, the whale had bought about 41,000 BTC during the 2022 bear market at an average price of $19,000 per bitcoin, spending $794 million. These investments were sold during the bull markets of 2023 and 2024, with 37,000 BTC sold at an average price of $46,800 per Bitcoin, earning $1.74 billion and a profit of over $1 billion.

Whale’s Moves and Lower CPI Fuel Market Optimism

The blockchain analysis firm, Lookonchain, notes that the whale’s sales were well-timed with market highs, showcasing their market expertise. The recent purchase suggests a positive outlook on Bitcoin’s future, sparking interest and speculation within the crypto community. Many believe this might be the last chance to buy Bitcoin at a lower price before a new bull run begins.

Per a recent report, the U.S. Consumer Price Index (CPI) for May held steady at 0.3%, which was higher than the expected 0.1%. Overall CPI inflation decreased to 3.3% in May from 3.4% in April. The Core CPI, which excludes food and energy prices, dropped to 0.2% in May from 0.3% the previous month. Moreover, annual Core CPI inflation decreased to 3.4% from 3.6% in April. These lower inflation figures have increased investor confidence, resulting in a surge in the cryptocurrency market, including Bitcoin.

Currently, Bitcoin is facing challenges in maintaining a value above the $65,000 mark. In the last week, it has experienced a 4% decline and dropped below $65,000 for the first time since May 16. Over the past 24 hours, $72.60 million worth of BTC has been liquidated, with $49.62 million from long positions. The $65,000 level is considered a crucial support level. If the selling trend continues, Bitcoin’s value may decline to around $61,000. Many are closely monitoring this latest move by experienced traders, especially given the significant market fluctuations.

The XRP Ledger, ticker symbols, and names are not unique, making it easy for scammers to create a fake Ripple’s USD-backed stablecoin, RLUSD, ahead of its launch.

Vet, a validator of the XRP Ledger dUNL, has warned that the official RLUSD stablecoin is not yet available. He stressed that people need to be very careful. “Scammers are taking advantage of you if you don’t stay vigilant,” Vet tweeted.

On the XRP Ledger ticker and name is not unique, same on ETH, Solana you name it.

Only the issuer account is unique, if the issuer e.g Ripple is coming out and says "this is our account for RLUSD" you know its real. Else it's a fake RLUSD, same for any other token.
Simple! https://t.co/3FveKs6Xgx

— Vet 🏴‍☠️ (@Vet_X0) June 18, 2024

Scammers are creating a fake Ripple USD (RLUSD) token on the XRP Ledger ahead of Ripple’s launch of its own U.S. dollar stablecoin. This follows Ripple Labs’ June 11 announcement of its acquisition of Standard Custody, a digital asset management firm, as part of its efforts to expand the tokenization of real-world assets and innovate in digital finance.

Ripple’s Security Measures and Innovations

Vet explained that on the XRP Ledger, ticker symbols and names are not unique, making it easy for fraudsters to deceive users. He emphasized that only the issuer account is unique, and users should ensure the product is directly from Ripple.

DLT expert Krippenreiter recommends checking the “r-address” using an XRPL-based explorer and examining the account’s history to avoid falling for such scams. He advised users to look for official press releases from Ripple and RippleX, the company’s developer arm, to confirm the authenticity of a stablecoin. Official sources are crucial in verifying whether a stablecoin is genuine or fake.

XRPScan, a leading XRPL explorer, has flagged an issuer of the fake RLUSD stablecoin as suspicious. It was noted that this account has already amassed a significant amount of XRP by trading the fake token on the decentralized exchange (DEX) and automated market maker (AMM). This highlights the importance of being cautious and using reliable tools to check the validity of digital assets.

A recent report revealed that Ripple expects the market for institutional crypto custody to grow significantly. The market is projected to reach $10 trillion by 2030 as more banks start offering digital asset services to their customers. Ripple aims to revolutionize the financial industry with advanced digital asset management and tokenization. They are determined to make financial transactions more efficient and secure with their cutting-edge technology and innovative solutions.

The win only resolves some of the industry’s issues, as many projects, such as Ripple, still need help with the SEC’s strict crypto enforcement practices.

Consensys, a blockchain software company, announced that the SEC’s Enforcement Division has concluded its investigation into Ethereum 2.0. This means the SEC will not pursue charges claiming that the sales of ETH are securities transactions.

ETHEREUM SURVIVES THE SEC.

Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0.

This means that the SEC…

— Consensys (@Consensys) June 19, 2024

The decision came after Consensys sent a letter on June 7 asking the SEC about the implications of recent Ethereum ETF approvals, which implied that ETH is classified as a commodity. However, the company stressed that the “fight” continues. In April, it filed a lawsuit against the SEC, seeking a declaration that offering the UI software MetaMask Swaps and Staking does not violate securities laws.

Over the past year, Consensys has received three subpoenas from the SEC, with the most recent in March. Additionally, the company received a Wells notice in A, indicating possible upcoming enforcement action.

SEC’s Recent Actions in the Crypto Ecosystem

The SEC’s jurisdiction over Ethereum has been a contentious issue, with the agency issuing subpoenas to firms affiliated with the Ethereum Foundation. SEC Chair Gary Gensler has previously avoided stating whether ETH is a security, although he has suggested that many cryptocurrencies could fall under SEC regulation. In contrast, Commodity Futures Trading Commission Chair Rostin Behnam has classified ETH as a commodity.

Consensys views the classification of ETH sales as a non-security transaction as a positive outcome for Ethereum builders, technology providers, and other stakeholders, suggesting a supportive regulatory environment and marking a significant milestone. However, this only resolves some of the crypto community’s issues, as many members, such as Ripple (XRP), still need help with the SEC’s strict cryptocurrency enforcement practices.

Bill Morgan has criticized the SEC for what he sees as unfair treatment towards Ripple. He pointed out that Ethereum received favorable treatment nearly six years after the Hinman speech, which stated that Ethereum was not a security. Morgan also highlighted the SEC’s inconsistent approach to crypto regulations.

Ethereum’s second free pass from the SEC almost exactly 6 years after the Hinman free speech.

Ethereum’s and Ripple’s different treatment will forever show how arbitrary the SEC has been in crypto. https://t.co/Coxf6czO9r pic.twitter.com/WNcacVYhNE

— bill morgan (@Belisarius2020) June 19, 2024

In a recent SEC filing, a calculation based on the settlement with Terraform Labs suggested a much lower penalty than the proposed $2 billion, demonstrating further inconsistency in the SEC’s enforcement actions.

This surge highlights a renewed interest and activity within the veCRV ecosystem.

The Convex Finance token (CVX) price experienced significant gains over the last 24 hours, driven by record inflows into the vote-escrowed CRV (veCRV) ecosystem. According to data from Curve Finance, these inflows totaled 19.76 million CRV tokens, a remarkable six times the weekly inflation rate. This surge highlights a renewed interest and activity within the veCRV ecosystem.

Inflows into veCRV are already 6x the inflation of this week. These include direct locks, as well as locks via @ConvexFinance, @StakeDAOHQ and @yearnfi.

This is the highest weekly inflow into CRV locking in years! pic.twitter.com/ADlDXWq5Zz

— Curve Finance (@CurveFinance) June 17, 2024

Given this backdrop, it’s no surprise that Convex Finance was a major beneficiary. The price of its native token, CVX, doubled to $4.55. These substantial inflows included direct token locks and locks facilitated through platforms such as Convex Finance, StakeDAO, and Yearn.

Convex Finance Leads the “Curve Wars”

CRV is the native token of Curve Finance, used to incentivize liquidity providers and in protocol governance. Users can lock up their CRV to acquire veCRV tokens, with lock-up periods ranging from one week to four years. The longer the lock-up period, the more voting power and rewards users receive. This mechanism allows veCRV holders to vote on CRV emissions, fostering competition among protocols to accumulate the most veCRV tokens and offer higher rewards in their liquidity pools. This competition, often called the “Curve Wars,” sees Convex Finance, StakeDAO, and Yearn emerging as the dominant players.

Convex Finance, in particular, allows liquidity providers on Curve Finance to stake their tokens on its platform, earning a share of trading fees in cvxCRV tokens without needing to provide liquidity directly on Curve Finance. Convex Finance holds the largest share of veCRV tokens, with over 41%, followed by Yearn Finance and StakeDAO.

In the past 24 hours, trading volume for the CVX/USDT perpetual trading pair on Bybit surged by 9,100%, reaching $134.5 million. Data from Santiment indicates that total open interest in CVX increased by 151%, reflecting heightened price volatility as traders seek to capitalize on the token’s rapid price movements.

Moreover, the market cap of CVX surged to $415 million, ranking it as the 155th-largest digital currency. Its daily trading volume also spiked by 2,800%, reaching $150 million, underscoring the intense trading activity and interest in CVX.

This marks a significant increase from $300 million just three weeks ago, showing rapid growth.

The Open Network (TON) blockchain saw its total value locked (TVL) soar to $609.78 million on Monday, according to DefiLlama data. This marks a significant increase from $300 million just three weeks ago, showing rapid growth.

Many of the top 10 protocols on TON have shown significant growth in TVL over the past week. For example, the TVL on DeDust, a decentralized exchange liquidity pool on TON, surged by 53% in the past week, reaching nearly $300 million. Smaller protocols like bemo and EVAA have also seen double-digit growth during the same period, which is quite impressive.

Telegram’s Massive User Base Boosts TON Ecosystem

TON blockchain is getting a lot of attention because it is Telegram’s chosen Web3 solution. Telegram is one of the most popular messaging apps in the world, with over 900 million users. This large number of users gives TON a strong foundation for its ecosystem. With such a large potential user base, there is a huge opportunity for growth and development.

Telegram’s integration with TON has led to the popularity of several play-to-earn mini-games, which can be played within the messaging app. Games like Notcoin, Yescoin, and Hamster Kombat have boosted the network’s popularity by offering token rewards. These simple yet engaging games attract users and encourage more activity on the network.

Additionally, Telegram recently introduced a digital mini-app payment system called Telegram Stars. This system offers app developers lower promotion fees compared to traditional platforms like the Apple and Google App Stores. This is a big advantage for developers looking to promote their apps more affordably.

Recent developments have also contributed to positive sentiment around TON. Last month, Pantera Capital, a crypto venture capital firm with over $5 billion in assets, announced its investment in TON, highlighting its connection with Telegram. In April, Tether, the issuer of the USDT stablecoin, announced a collaboration with the TON blockchain. These partnerships bring more credibility and resources to the network.

However, the increased popularity of TON has also attracted cybercriminals. Cybersecurity firm Kaspersky reported that scammers have used the messaging app and Toncoin, TON’s native cryptocurrency, to build a pyramid scheme targeting crypto users. This highlights the need for users to be cautious and vigilant.

The Commission stressed that memecoins lack fundamental value and are primarily speculative.

The Securities and Exchange Commission of Nigeria (SEC) has responded to concerns about a newly launched cryptocurrency called $DAVIDO, reportedly linked to Nigerian music star Davido. The SEC cautioned the public that investing in memecoins like $DAVIDO carries significant risks and should only be done with a thorough understanding of these risks.

$DAVIDO was launched on May 29 in partnership with blockchain platforms Phantom and Solana, gaining popularity quickly. However, reports suggest that some investors have experienced losses and have criticized the project as potentially fraudulent.

SEC Clarifies its Position on Memecoins

In a recent statement, the SEC explained that memecoins are cryptocurrencies inspired by internet memes and jokes. They are often seen as playful and promoted heavily on social media, sometimes with celebrity endorsements. However, the SEC emphasized that these coins are not designed to be widely accepted as payment for goods and services, nor do they represent traditional financial products like stocks or bonds.

The SEC clarified its regulatory stance by stating that $DAVIDO is not recognized as an investment product or an asset class under its supervision. Therefore, individuals who choose to invest in it are doing so at their own risk. The Commission stressed that memecoins lack fundamental value and are primarily speculative. “The general public is further WARNED that investing in meme coins, including $DAVIDO, is highly risky and should be done with a full understanding of the associated risk,” the SEC stated.

Capital market operators were also warned against associating with such instruments that fall outside its regulatory oversight, emphasizing that they should not be distributed or monitored through capital market mechanisms. The SEC reiterated its commitment to monitoring developments in this space and will use its regulatory powers when necessary.

In conclusion, the SEC advised the general public to exercise caution when dealing with memecoins like $DAVIDO and to thoroughly research and understand the risks involved before investing. They emphasized the speculative nature of these coins and their limited use beyond internet communities. Investors and stakeholders are urged to stay informed and to avoid investments that are not within the SEC’s regulatory framework.

Gensler indicated a potential approval window extending from June to August, suggesting a possible end-of-summer resolution.

The wait for SEC feedback on the S-1 filings for spot Ethereum ETFs, submitted on May 31, is stretching longer than anticipated, with issuers still awaiting comments. SEC Chair Gary Gensler indicated a potential approval window extending from June to August, suggesting a possible end-of-summer resolution.

🚨NEW: @SECGov Chairman @GaryGensler just told Senator @BillHagertyTN he envisions $ETH Spot ETF S-1’s will likely be approved by the *end of the summer.*

— Eleanor Terrett (@EleanorTerrett) June 13, 2024

Initially, issuers expected comments on their drafts by June 7, based on insights from a source familiar with agency discussions. However, feedback is now anticipated by the summer’s end. Gensler mentioned on CNBC that approvals for the S-1 forms would take considerable time, but a final decision might come between June and August.

The S-1 forms represent the second phase in the two-step process to enable spot Ethereum ETFs for trading. The first step involved approving the 19b-4 forms on May 23 for various Ethereum ETF issuers, including VanEck and BlackRock, signaling increased crypto adoption. However, the S-1 forms, which require detailed ETF information, are still pending approval.

A Constructive Regulatory Framework

During a meeting, Tennessee Senator Bill Hagerty questioned Gensler about why the commission hadn’t fully approved ETFs. He claimed Gensler was not prioritizing constructive rules for the crypto industry. Gensler did not provide a clear answer regarding whether ETH is a commodity or a security, maintaining an unsure stance. Although Commodity Futures Trading Commission Chair Rostin Behnam stated Ether was a commodity, Gensler pivoted to discussing Ether ETFs instead of giving a direct answer.

Hagerty criticized Gensler’s rule-making for the crypto market, expressing concern that the agency’s obstacles prompted U.S. companies to move abroad. He emphasized the need for a constructive regulatory framework.

In contrast, the SEC approved 194-b filings for spot Bitcoin ETFs on Jan. 10, and these investment vehicles began trading on Jan. 11 after the SEC approved their S-1 prospectuses. BlackRock’s iShares Bitcoin Trust was among the first ETFs to start trading on the Nasdaq. The SEC has approved the 19b-4 filings for spot ETH ETFs from multiple firms, including Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, it is unclear when these will start trading and which company will be the first to trade once the S-1 registration statements are approved.