Cryptocurrencies To Watch

Author: Jonathan Agozie

  • Curve Finance Faces $27M Liquidation Crisis Amid Historic CRV Plunge

    Curve Finance Faces $27M Liquidation Crisis Amid Historic CRV Plunge

    The token has now lost 98.88% of its value at its highest price ever.

    Michael Egorov, the founder of Curve Finance, faced a major setback today as the CRV token dropped to a new low of $0.219, leading to many CRV liquidations. The token has now lost 98.88% of its value at its highest price ever.

    On-chain analyst EmberCN reported that Egorov’s lending positions were mostly liquidated, totaling about 100 million CRV, valued at $27 million. Despite this, he still holds 39.35 million CRV and has secured $5.4 million in stablecoins on a lending platform. These assets are currently safe from liquidation.

    Egorov’s $140M CRV Position Triggers Liquidations

    Arkham Intelligence had previously warned that if the price of CRV dropped by 10%, Egorov’s CRV positions worth $140 million across five protocols would be at risk of liquidation. They noted that $50 million of his CRV borrowing is on Llamalend, which is costing him around 120% APY because there is almost no crvUSD left to borrow against CRV on Llamalend. Egorov’s accounts make up over 90% of the borrowed crvUSD on this platform.

    Even though Egorov didn’t create direct selling pressure, he profited in another way that might hurt lenders and former CRV investors. An Ethereum core developer tweeted that Egorov didn’t lose much from the CRV liquidation. He gained $100 million from his $140 million CRV position, avoiding the backlash that would have come from selling the tokens on the open market. Though his $140 million CRV will be fully liquidated, he won’t have to repay nearly $100 million in stablecoins he borrowed, avoiding accusations of “maliciously dumping tokens.”

    However, the Curve Finance founder stated that he and his team have been working to resolve the liquidation risk issue that occurred. In a recent tweet, he mentioned that he has already repaid 93% and intends to repay the remainder shortly, which will help mitigate the impact on users.

    This isn’t the first time Egorov’s large borrowings on Curve have disrupted the market. Last year, a hacking incident caused a sharp drop in CRV’s price, prompting several DeFi protocols to stop additional CRV borrowing to avoid risks from Egorov’s actions. After the hack, some venture capital firms bought CRV tokens to support Curve and stabilize the price, paying $0.4 per CRV. However, with the current price at $0.26, those investors have seen a 35% loss.

  • Bitcoin Price Hits $69K as U.S. CPI Inflation Falls

    Bitcoin Price Hits $69K as U.S. CPI Inflation Falls

    The lower inflation numbers have created optimism about the economic outlook and the potential for a more relaxed stance on interest rates from the Federal Reserve.

    The highly anticipated U.S. Consumer Price Index (CPI) data released on Wednesday showed that U.S. inflation stayed at 0.3% in May, higher than the market expected. Investors and analysts were keenly awaiting this inflation data to understand the current state of the economy and predict the possible actions of the U.S. Federal Reserve regarding interest rates.

    According to the U.S. Bureau of Labor Statistics, the CPI for May remained at 0.3%, while the market had predicted it would drop to 0.1%. Although there was a slight increase, the overall CPI inflation decreased to 3.3% in May from 3.4% in April. Additionally, the Core CPI, which excludes food and energy prices, dropped to 0.2% in May from 0.3% the previous month. Core CPI inflation also decreased to 3.4% for the year from 3.6% in April. These signs of cooling inflation have led to market optimism.

    May CPI Spark Optimism in the Crypto Market

    The lower CPI inflation numbers have boosted investor sentiment, leading to a rally in the cryptocurrency market, including Bitcoin. The positive data has led the market to expect a more lenient approach from the Federal Reserve on interest rates. Following the CPI release, Bitcoin’s price increased by over 4% to $69,980 after a slow week, with a low of $66,123.60 in the past 24 hours. Bitcoin Futures Open Interest also grew by 2.29% to 523.38K BTC, worth $36.37 billion, according to CoinGlass.

    The altcoin market also saw gains. The price of Ethereum rose nearly 3% today to $3,637.36, while Solana’s price increased by about 4% to $158.43. These gains in the cryptocurrency market reflect the overall positive sentiment among investors due to the cooling inflation figures. The lower inflation numbers have created optimism about the economic outlook and the potential for a more relaxed stance on interest rates from the Federal Reserve. This has, in turn, fueled a rise in the prices of cryptocurrencies as investors seek higher returns.

  • Ripple Labs Acquires Standard Custody for USD Stablecoin Plans

    Ripple Labs Acquires Standard Custody for USD Stablecoin Plans

    This acquisition follows Ripple’s 2023 purchase of another digital asset custody firm, Metaco, for $250 million.

    Ripple Labs announced on June 11 that it has completed the purchase of Standard Custody, a company that handles digital assets. This deal, first announced earlier this year, is important for Ripple’s plans to launch a U.S. dollar stablecoin and expand its efforts in real-world asset tokenization.

    As a result of the deal, Standard Custody CEO Jack McDonald will become Ripple’s senior vice president of stablecoins. Ripple emphasized that Standard Custody has a license from the New York Department of Financial Services (NYDFS), which is one of the toughest regulators for digital assets. This licensing is a key feature that Ripple values highly.

    Ripple’s Strategic Moves

    This acquisition follows Ripple’s 2023 purchase of another digital asset custody firm, Metaco, for $250 million. Ripple believes that the market for institutional crypto custody will grow significantly, reaching $10 trillion by 2030 as more banks start offering digital asset services to their customers.

    Real-world asset tokenization is a growing field with enormous potential. According to Chainlink, if all the world’s capital assets were tokenized, the market could exceed $800 trillion. Companies like Ripple, Chainlink, and Algorand are focusing on this area, believing it to be the next big opportunity in the world of cryptocurrencies and blockchain technology.

    In May, the Depository Trust and Clearing Corporation (DTCC) released a report about a real-world asset tokenization test. This test was conducted with major banks like JP Morgan, Edward Jones, and BNY Mellon using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). 

    The purpose of the test was to tokenize fund data and simulate bringing real-world data onto the blockchain. According to the DTCC report, several benefits of blockchain tokenization were identified. These include automated data management, reduced need for manual record-keeping, transparent APIs for customers, and dynamic data management throughout the life cycle of an asset.

    The pilot program provided valuable insights into future applications of blockchain tokenization for banks and institutions. Potential uses include brokerage services, automated data feeds, and other financial services benefiting from blockchain’s efficiency and transparency. Ripple and other companies are leading the way in exploring these opportunities to revolutionize the financial industry through advanced digital asset management and tokenization.

  • Bitcoin Falls Amid Miner Capitulation and Fed Rate Decision Anxiety

    Bitcoin Falls Amid Miner Capitulation and Fed Rate Decision Anxiety

    The increase in bitcoins being sold has caused a temporary dip in prices, which is seen as a necessary step to remove less efficient miners from the market.

    The Bitcoin market is facing a downturn, partly due to a rare event known as miner capitulation, as highlighted in a recent X post. This event occurs approximately every four years during the halving event and significantly impacts the cryptocurrency landscape by cutting mining rewards in half.

    The latest halving reduced rewards from 6.25 to 3.125 bitcoins per block. This drastic reduction makes it increasingly difficult for less efficient miners to cover their operational costs. Consequently, many of these miners are forced to cease their mining activities and sell off their Bitcoin holdings, leading to an increased supply in the market and exerting downward pressure on prices.

    This increase in bitcoins being sold has caused a temporary dip in prices, which is seen as a necessary step to remove less efficient miners from the market. This “dumping” phase is crucial for maintaining a healthy market equilibrium. At the same time, the futures market is experiencing a surge in liquidations. Futures contracts allow traders to speculate on Bitcoin’s future price and have seen high open interest. This means many traders have active positions, which increases volatility. Recent price movements have triggered these liquidations, forcing traders to close their positions due to insufficient margins and causing abrupt price drops.

    The Fed’s Decision Anxiety

    The upcoming inflation data and the Federal Reserve’s outlook could further increase worries about high interest rates, negatively affecting speculative assets like cryptocurrencies. The Federal Reserve’s stance on interest rates is particularly influential. Despite recent rate cuts by the European Central Bank and the Bank of Canada, strong U.S. labor data suggests that the Fed might adopt a more hawkish approach, potentially prolonging the period of high interest rates.

    Despite these challenges, many industry experts remain optimistic about Bitcoin’s long-term prospects. Historical trends suggest that Bitcoin often experiences robust recoveries following periods of miner capitulation and market liquidations. As the market stabilizes post-capitulation, the reduced selling pressure and improved market conditions are expected to drive a price rebound. This resilience highlights Bitcoin’s potential to recover and thrive after significant market disruptions.

  • Justin Sun Moves to Cash Out $21M in Crypto as Market Struggles

    Justin Sun Moves to Cash Out $21M in Crypto as Market Struggles

    The combination of Sun’s significant deposits and the current market conditions has led to intense speculation.

    Today, Spot On Chain reported that Justin Sun, the founder of TRON, has made substantial deposits into Binance, the world’s largest cryptocurrency exchange. These deposits amount to a significant $21 million across four different assets. This unexpected move has generated considerable buzz and speculation regarding potential market implications.

    Sun’s deposits included 93,979 AAVE tokens, valued at $11.26 million, and 3,800 MKR tokens, worth $9.3 million, among other assets. The sheer volume and value of these deposits, especially coming from a high-profile individual like Sun, have led to widespread speculation about his intentions. The crypto community is abuzz with theories and concerns about what might be driving these actions.

    Large Deposits Spark Speculation

    In the world of cryptocurrency, large deposits on exchanges are often interpreted as a bearish signal. This interpretation stems from the idea that such deposits are usually made to sell the assets. When a significant quantity of tokens is moved onto an exchange, it often suggests that the holder is preparing to liquidate their position. This can result in an increase in supply on the market, potentially driving down prices.

    Given Justin Sun’s prominent position in the crypto space and the notable size of his deposits, many are speculating that he might be planning to sell these assets. Sun’s actions are always closely watched, and his latest move is no exception. The timing of these deposits, amidst a broader market downturn, adds another layer of intrigue and concern.

    Currently, the overall cryptocurrency market is experiencing a downturn. Bitcoin, the leading cryptocurrency, has seen its price fall by 0.3%, now trading below $70,000 per BTC. Ethereum, which is closely tied to many of the tokens Sun has deposited on Binance, is also seeing a decline. The market’s primary altcoin is now valued at $3,669, reflecting a general trend of negative performance.

    The combination of Sun’s significant deposits and the current market conditions has led to intense speculation. Some wonder if Sun’s actions are a strategic move in anticipation of further market declines, while others believe he may have different plans altogether. Regardless of the motive, the crypto community is closely monitoring the situation, eager to see what unfolds next.

  • Base TVL Hits $8B, Becomes Second Largest Ethereum Layer 2

    Base TVL Hits $8B, Becomes Second Largest Ethereum Layer 2

    Base Network processed about 64.86 million transactions in the past 30 days, highlighting its growing adoption and usage.

    The total value locked (TVL) on the Ethereum layer-2 network Base has surpassed $8 billion, reaching $8.05 billion as of June 10, according to L2Beat data. This impressive sum comprises $2.14 billion of assets bridged from Ethereum and $5.92 billion in assets natively created on the Base network.

    Base has distinguished itself as the leader among Ethereum layer-2 networks for transactions per second (TPS), averaging 30.36 over the past month. This outpaces Arbitrum One, which recorded 23.52 TPS during the same period. 

    Base Network’s Rapid Growth

    Recently, Base surpassed OP Mainnet to become the leading chain in the Superchain ecosystem, making it the second-largest Ethereum layer-2 network in terms of Total Value Locked (TVL). Arbitrum One remains the largest, with a TVL of $18.27 billion. Base reached the milestone of $1 billion TVL on February 27, just seven months after its launch in August of the prior year. In the subsequent 104 days, it witnessed an eight-fold increase in TVL, indicative of its rapid expansion and increasing popularity. Moreover, Base processed about 64.86 million transactions in the past 30 days, highlighting its growing adoption and usage.

    For profitability, Base has been the most successful Ethereum layer-2 network over the past three months. It recorded an all-time high of $16.9 million in on-chain profits in March. Although its profits declined by 58.6% to $6.98 million in May, Base still outperformed the next most profitable Ethereum layer-2 network, OP Mainnet, which reported $1.57 million in profits for the same month.

    The surge in Base’s profits can be attributed to the memecoin mania that swept through the network in early 2024. However, this surge in popularity also attracted malicious actors, leading to an 18-fold increase in funds stolen through phishing scams from January to March. This shows the security challenges that come with rapid growth and widespread adoption.

    Analysts at asset manager VanEck have projected that Ethereum layer-2 scaling networks could collectively achieve a market cap of $1 trillion by 2023. This optimistic outlook reflects the increasing importance and potential of layer-2 solutions in scaling the Ethereum network and addressing its scalability issues. Base’s remarkable growth in terms of TVL and transaction volume exemplifies the significant impact that layer-2 networks can have on the broader Ethereum ecosystem.

  • Bitcoin Whales Buying $1B Daily: Signs of Demand Recovery?

    Bitcoin Whales Buying $1B Daily: Signs of Demand Recovery?

    The continuous daily inflows of substantial capital from Bitcoin wahles signify a burgeoning interest and investment in the crypto asset.

    The recent CryptoQuant report has shed light on an intriguing development in the Bitcoin market. According to their findings, there’s been a notable influx of approximately $1 billion per day from new, significant investors into Bitcoin. Over the past two months, Bitcoin whales have collectively added around 70,000 bitcoins to their portfolios, marking a monthly growth rate of 4.4%. This trend underscores a growing confidence among these investors in the future performance of Bitcoin, suggesting that they anticipate its value to increase over time.

    Another report from CryptocurrenciesToWatch (CTW) has drawn attention to the increasing dominance of these large investors, referred to as “whales,” in the Bitcoin market. CTW reported that whales control over 40% of the total Bitcoin supply. This growing influence is evidenced by a consistent trend since mid-March, wherein large investors have been steadily accumulating more Bitcoin.

    Signs of Demand Recovery?

    Bitcoin whales’ continuous daily inflows of substantial capital into Bitcoin signify a burgeoning interest and investment in the cryptocurrency. This influx of funds bolsters demand and supports the current price levels, potentially driving further upward momentum.

    Moreover, the CryptoQuant report indicates a decline in the selling pressure exerted by traders, as evidenced by resetting the unrealized profit ratio to 0%. This suggests a possible equilibrium in the market dynamics, with reduced selling pressure contributing to stability and the potential for upward movement in Bitcoin prices.

    In addition to the direct investment in Bitcoin, there has been a notable increase in BTC acquisitions through Spot Bitcoin ETFs in the United States. These investment vehicles have witnessed consistent inflows over the past 18 days, with a total inflow of $218 million recorded on June 6th.

    While certain ETFs experienced fluctuations in daily flows, such as GBTC with a single-day outflow of $37.574 million and IBIT with a single-day inflow of $350 million, the cumulative historical net inflow for IBIT has reached an impressive $17.431 billion. This trend highlights a growing interest among investors in gaining exposure to Bitcoin through ETFs.

  • Dogecoin Catches the Eye as Whales Move Over $150M in 24 Hours

    Dogecoin Catches the Eye as Whales Move Over $150M in 24 Hours

    Many investors are still realizing gains from their Dogecoin holdings, even with recent price fluctuations.

    The Dogecoin blockchain has seen substantial transaction activity recently. Over the past 24 hours, there have been thousands of transactions, including around 150 high-value transfers exceeding $1 million each. This has contributed to a total transaction volume surpassing $150 million.

    Crypto analyst Ali has observed that “Dogecoin whale activity is on the rise!” These whales, or large holders of Dogecoin, might be positioning themselves for anticipated price movements. These movements could be based on market analysis, upcoming news, or other strategic factors.

    Dogecoin Sees Growing Interest

    The recent surge in Dogecoin’s large transactions is likely driven by strategic movements from major holders, growing institutional interest, and activities linked to DRC-20 tokens. This rise in activity highlights Dogecoin’s evolving role beyond a memecoin and its potential for more serious financial applications.

    Following the death of Kabosu, the Shiba Inu dog that inspired Dogecoin, the memecoin has stayed above the 50-day simple moving average (SMA) of $0.1547. This shows strong demand near this level. If this trend continues, Dogecoin could surpass the short-term barrier of $0.174, potentially rising to $0.21 and then $0.23. However, a fall from the current level or the 50-day SMA could trigger short-term selling, with a breach below the SMA possibly reversing the trend and sending Dogecoin to $0.14.

    At the time of writing, Dogecoin was down 1.38% in the last 24 hours to $0.161. Despite this, data from IntoTheBlock shows that the majority of Dogecoin holders are currently profiting. Specifically, 84% of holders are in the green, 14% are experiencing losses, and 2% are breaking even at current market prices. This suggests that many investors are still realizing gains from their Dogecoin holdings, even with recent price fluctuations.

    In conclusion, Dogecoin is showing signs of maturation and increased significance in the cryptocurrency market. Its ability to maintain key support levels and attract high-value transactions indicates its growing appeal among both retail and institutional investors.

  • Nigeria Responds to U.S. Lawmakers on Detention of Binance Exec

    Nigeria Responds to U.S. Lawmakers on Detention of Binance Exec

    The Minister noted that Gambaryan was denied bail because he is considered likely to flee the country, especially since his co-defendant, now wanted by Interpol, fled the country illegally.

    The Nigerian Minister of Information, Mohammed Idris, stated that the trial of Binance and its executive, Tigran Gambaryan, for illegal cryptocurrency trading is strictly adhering to Nigeria’s legal procedures. This clarification came after an appeal by 12 U.S. politicians to President Joe Biden, urging the U.S. government to use its hostage affairs unit to facilitate Gambaryan’s release.

    These politicians assert that Gambaryan is facing baseless charges, including money laundering and tax evasion, which they believe are tactics by Nigerian authorities to extort Binance. However, Minister Idris emphasized that Binance has received appropriate consular access from the U.S. government and that all diplomatic protocols and the rule of law are being observed.

    Gambaryan’s Bail Denial

    The Minister highlighted that the legal proceedings have followed due process at every stage, and prosecutors are confident in their case based on the evidence gathered. He mentioned that Gambaryan was denied bail because he is considered likely to flee the country, especially since his co-defendant, now wanted by Interpol, fled the country illegally.

    In February, Nigerian authorities arrested U.S. citizens Tigran Gambaryan and Nadeem Anjarwalla on charges of money laundering and tax evasion. Anjarwalla escaped custody and fled to Kenya, while Gambaryan remains detained in Abuja’s Kuje correctional center.

    These arrests were part of the federal government’s broader campaign to curb currency speculation, which included a ban on cryptocurrency channels. As part of this crackdown, the court mandated that Binance provide the Nigerian government with data and details of Nigerian traders using its platform.

    Binance and its executives face two lawsuits: one from the Federal Inland Revenue Service for tax evasion and another from the Economic and Financial Crimes Commission for money laundering and foreign exchange violations. They will defend against these charges in court, with the next hearing set for June 20, 2024.

    The case underscores the complex international legal challenges faced by cryptocurrency companies operating across different jurisdictions. It also highlights the tension between national regulatory efforts and the global nature of digital financial platforms.

  • Crypto Exchanges See $5.2T Trading Volume in 31 Days

    Crypto Exchanges See $5.2T Trading Volume in 31 Days

    The drop in trading volume may indicate market stabilization, decreased speculative trading, or growing investor confidence.

    In May 2024, centralized crypto exchanges recorded a $5.27 trillion trading volume, marking a 20.1% drop from the previous month. This decline, marking the second consecutive month of reduced trading activity, can be attributed to the stable price of Bitcoin following its halving event in April.

    Spot trading volumes within centralized exchanges decreased by 21.6% to $1.57 trillion, while derivatives trading also fell by 19.4% to $3.69 trillion. This drop may indicate market stabilization, decreased speculative trading, or growing investor confidence.

    The Surge in Market Dominance

    Despite the drop in trading volume, the derivatives market saw increased dominance as the United States Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs). This approval drove a 50.3% surge in open interest for Ether derivatives, reaching $14 billion.

    In the derivatives market, Binance continued to lead with a dominance of 45.4%, trading $1.68 trillion in monthly volume. Binance maintained its position as the largest spot exchange with a 34.6% market share, even though its volumes declined by 19.8% to $545 billion.

    Among the exchanges, Bybit stood out by achieving an all-time high spot market share of 7.36%, despite a 12.7% drop in spot trading volume to $116 billion. OKX and Bitget followed with market shares of 21.3% and 14.5%, respectively.

    Additionally, the U.S. CME exchange saw mixed performance, with overall derivatives trading volume falling by 7.42% to $115 billion. However, ETH futures volumes surged by 37.5% to $20.5 billion, while ETH options trading volume hit a new all-time high, increasing by 115% to $931 million, reflecting heightened institutional interest post-SEC approval.

    Despite the initial increase in trading activity following the approval of spot Ether ETFs, traders are selling off their positions. Nonetheless, some analysts remain optimistic about Ether’s potential to break its November 2021 all-time high of $4,870 once spot Ether ETFs begin trading, possibly this month, driven by increased demand pressure.