Author: Jonathan Agozie

Digital asset investment surged to $2 billion in May, pushing year-to-date inflows to over $15 billion.

Digital asset investment products saw their fourth consecutive week of inflows, totaling $185 million, which boosted May’s total inflows to $2 billion. CoinShares reported that this surge has pushed year-to-date inflows beyond the $15 billion mark, setting a new record. However, despite this positive trend, weekly trading volumes dropped to $8 billion from $13 billion the previous week.

The United States led the inflows with $130 million, although existing ETF issuers faced significant outflows of $260 million. Switzerland recorded its second-largest weekly inflow of the year at $36 million. Canada saw a reversal of its earlier trend, with $25 million in inflows following a net outflow of $39 million in May. Modest inflows were observed in Hong Kong, Australia, and Germany, which saw $1.7 million, $1.4 million, and $0.5 million, respectively. In contrast, Sweden and Brazil experienced outflows, with Sweden losing $5.1 million and Brazil $4.4 million.

Market Dynamics

Bitcoin (BTC) continued to dominate the inflow landscape with $148 million, while short-bitcoin products saw outflows of $3.5 million. This indicates sustained positive sentiment among ETF investors towards Bitcoin. Ethereum (ETH) also witnessed its second consecutive week of inflows following the SEC’s approval of a spot-based ETF, which is set to launch in July 2024. Ethereum garnered $33.5 million in inflows, pushing its monthly inflows to $21 million and marking a significant turnaround after a 10-week outflow streak totaling $200 million. The positive momentum for Ethereum also benefited Solana (SOL), which attracted $5.8 million in inflows last week. Other notable inflows included Chainlink with $1 million, XRP with $0.8 million, Litecoin with $0.6 million, and Cardano with $0.3 million.

Conversely, blockchain equities faced challenges, experiencing $7.2 million in outflows last week and $516 million year-to-date. Despite the mixed performance in some areas, the overall trend in digital asset investments remains robust, reflecting growing investor confidence and interest in the sector.

The increasing inflows into digital asset investment products, particularly Bitcoin and Ethereum, suggest a positive outlook for the market. The record-breaking year-to-date inflows highlight digital assets’ growing acceptance and integration into mainstream investment portfolios. As regulatory clarity improves and new investment products like Ethereum’s spot-based ETF are introduced, the digital asset market will likely see continued growth and diversification.

The Republic of Tatarstan is preparing to build Russia’s largest Bitcoin mining facility, worth $100 million.

The Republic of Tatarstan is preparing to build Russia’s largest Bitcoin mining facility with an investment of around $100 million, according to local news reports. The project, set to be undertaken by Innopolis Tech, a fintech company controlled by Nikolai Nikiforov, Russia’s former communications and press minister, was announced by Roman Shaykhutdinov, a deputy prime minister of Tatarstan, at a crypto forum in Kazan.

Shaykhutdinov revealed that the facility’s hash rate is expected to reach 3 exahashes per second, potentially making it a significant force in the global crypto-mining industry, though the construction timeline and investor details remain undisclosed.

Russia’s Bitcoin Adoption Grows 

Despite these ambitious plans, Russia needs clear regulations for crypto miners. Recently, lawmakers introduced a bill to regulate the crypto mining market, allowing only registered Russian legal entities and entrepreneurs to mine. Individuals can mine without registration but must follow government energy consumption limits.

Anatoly Aksakov, one of the bill’s authors, stated that the bill could be enacted as early as September this year. The proposed legislation would require miners to provide the authorized body with information about the digital currency they receive from their activities, as well as their identifier addresses. Additionally, the bill proposes granting the government the authority to ban mining in certain regions.

According to a local news report, In February, BitRiver-B, a subsidiary of BitRiver and a Bitcoin mining company targeted by OFAC sanctions, announced plans to launch the largest data center for energy-intensive computations in Eurasia in the second half of 2024. Sergey Bezdelov, director of the Association of Industrial Mining, reported that the data center is expected to have a capacity of 100 megawatts.

“This is the largest facility among all data centers in the Republic of Buryatia and the Far Eastern Federal District. As of today, BitRiver’s investments in the project exceed 1.4 billion rubles [~$15.1 million],” Bezdelov said.

Overall, Tatarstan’s new project highlights the region’s commitment to becoming a significant player in the Bitcoin mining industry, despite the regulatory uncertainties surrounding cryptocurrency mining in Russia.

Notcoin has surged over 30%, reaching an all-time high of $0.01244

Notcoin (NOT) has recently emerged as the top gainer among the leading 100 cryptocurrencies, despite the broader crypto market experiencing a bearish trend. In the past 24 hours, NOT has surged by over 30%, reaching an all-time high of $0.01244.

With a market cap of $1.23 billion, NOT is currently the 72nd-largest cryptocurrency. This impressive rally is largely attributed to a significant increase in user engagement following the introduction of passive earning features in the Notcoin ecosystem. These features have captivated the interest of many crypto enthusiasts, driving up the demand for NOT.

According to data from Santiment, the relative strength index (RSI) for NOT is 83. This high RSI value indicates that Notcoin is overbought amid the broader crypto market downturn. The market has currently entered a consolidation phase, characterized by range-bound movements. Bitcoin (BTC), the leading cryptocurrency, struggles to hold above the $68,000 price level. Also, several other crypto assets, such as Shiba Inu (SHIB) and Pepe (PEPE), are experiencing significant price declines.

Notcoin Unveils Passive Earning

Notcoin has introduced “earnings missions” in its Telegram-based game, allowing players to earn crypto passively. These missions offer continuous rewards for engaging with partner crypto projects. Players can enhance their earnings by staking Notcoin and progressing through various in-game levels, with higher levels offering greater returns.

Following the launch of its NOT token, Notcoin achieved a substantial market cap, making it the largest gaming token launch of the year. This milestone was highlighted in a post by CryptocurrenciesToWatch (CTW) on X.

Notcoin has just become the largest gaming token launch of the year. https://t.co/6aDI2rb28U

— Cryptocurrencies To Watch (CTW) (@CryptosToWatch) May 18, 2024

Upon launch, NOT was listed on major exchanges like Binance, Bybit, OKX, and KuCoin. However, this widespread use contributed to a significant price drop as airdrop recipients quickly sold their holdings, causing the token to plummet by 55% shortly after its debut. The downtrend continued for over a week, reaching a low of $0.004583 on May 24. Despite this, the low price marked the start of a recovery for NOT.

As Notcoin continues to evolve and introduce new features, it remains a cryptocurrency to watch closely. The community’s response to passive earning opportunities and strategic developments will play a crucial role in shaping its future trajectory.

The integration allows PayPal to reach over 30 million merchants globally and offer lower transaction costs for users via PYUSD and Solana. 

PayPal’s USD stablecoin (PYUSD) has been launched on the Solana blockchain, as announced on Wednesday. According to PayPal’s blog post, users can onboard PYUSD to Solana via Crypto.com, Phantom, and Paxos.

1/📣Breaking News: @PayPal USD (PYUSD) is live on Solana!

PayPal USD stablecoin issued by @Paxos will leverage Solana and token extensions to serve over 30m+ merchants, empowering users with fast and secure stablecoin transactions. pic.twitter.com/h66iejTv50

— Solana (@solana) May 29, 2024

PayPal chose Solana for its cost-effectiveness and ability to support features like confidential transactions, transfer hooks, and customizable fields. These features enhance PYUSD’s utility and strengthen its market position.

Adopting Solana’s Speed and Low Costs

The collaboration between PayPal and Solana offers significant benefits, potentially giving millions of users access to PYUSD with faster transactions. This integration allows PayPal to reach over 30 million merchants globally and offer lower transaction costs for users.

This partnership marks a milestone for USD-pegged stablecoins, with PYUSD expanding beyond the Ethereum ecosystem. It broadens PYUSD’s use for small and everyday purchases. Since its launch, PYUSD has evolved to compete with Tether (USDT) and USD Coin (USDC).

Sheraz Shere, GM of Payments at the Solana Foundation, said that Solana’s speed and scalability make it ideal for new, cost-effective, and instant payment solutions. “Continued adoption by industry leaders like PayPal helps drive the next generation of fintech innovation,” she said.

Transactions on Solana are much faster and cheaper than on Ethereum. Solana transactions take seconds and cost about $0.0025, while Ethereum transactions can take minutes and cost $1 to $50. Jose Fernandez da Ponte, PayPal’s Senior Vice President of Blockchain, stated, “Making PYUSD available on the Solana Blockchain furthers our mission of enabling a digital currency with a stable value designed for commerce and payments.”

Faster Borderless Transactions

Xoom, PayPal’s cross-border money transfer service, now allows U.S. users to fund international transfers with PYUSD. These transfers to over 160 countries are free of transaction fees when using PayPal USD

In a similar move, Visa enhanced its stablecoin settlement capabilities last September using Solana-based USDC. Other major companies, like Stripe and WorldPay, have also adopted Solana for faster and more efficient payments.

Deaton has called for the resignation of SEC Chairman Gary Gensler following the agency’s loss in the lawsuit against crypto firm Debt Box. 

Pro-XRP lawyer John Deaton has stirred controversy in the crypto community by calling for the resignation of SEC Chairman Gary Gensler. This demand comes in the wake of an ongoing court case and growing criticism of the SEC’s regulatory approach to cryptocurrency.

I am very proud of the fact that I was one of the very first people to battle @GaryGensler’s @SECGov, serving as amici curiae in the @Ripple, @LBRYcom and @coinbase cases. I sued the SEC on January 1, 2021 and for more than three years I argued lawyers at the SEC were… https://t.co/ssOgWzgGuK

— John E Deaton (@JohnEDeaton1) May 28, 2024

Deaton alleges that the SEC, under Gensler’s leadership, is deliberately undermining key figures in the crypto space through bad-faith actions and persistent harassment. This includes targeting Ripple’s executives, such as Brad Garlinghouse and Chris Larsen.

Calling for a Change in SEC Chair

Following a ruling in which the SEC was fined $1.75 million for misleading conduct in the Debt Box case, pro-XRP lawyer John Deaton has called for the resignation of SEC Chairman Gary Gensler. Deaton argues that the SEC, under Gensler’s leadership, has overreached its authority, leading to financially damaging investigations into companies like Ripple, LBRY, and Coinbase. He has participated as amicus curiae in major cases against these firms, criticizing the SEC’s tactics, particularly in the LBRY case.

Deaton highlighted that SEC representatives publicly admitted their goal was to bring LBRY to its knees through exorbitant legal fees, sparking outrage within the crypto community. He also pointed out similar harassment of Ripple executives Brad Garlinghouse and Chris Larsen, citing these actions as evidence of the SEC’s bad faith under Gensler. This aggressive regulatory stance has prompted Deaton and others to call for accountability and reform within the agency.

The debate primarily centers on the SEC’s approach to enforcing securities laws within the digital asset market. The SEC has initiated several enforcement actions, asserting that certain digital assets are securities and thus fall under its regulatory jurisdiction. This approach has led to litigation with significant implications for the legal framework governing crypto markets.

Beyond the Debt Box case, the SEC’s confrontations with various crypto organizations have been contentious. Notably, Ripple Labs is engaged in a legal battle over whether its XRP token qualifies as a security. Critics, including John Deaton, argue that the SEC’s regulation is unpredictable and overbearing, potentially stifling the growth of the emerging digital asset industry.

Solana has approved proposal SIMD-0096, which aims to increase rewards for the validators.

Solana has approved proposal SIMD-0096, which allocates 100% of priority fees to network validators. This change aims to increase rewards for the validators, who are crucial for the network’s reliability and performance. It marks a shift from the previous model, where fees were evenly split between being burned and rewarding validators.

BREAKING: Voting has concluded for the @solana proposal to allocate 100% of priority fees to validators, with 77% of votes in favor, moving away from the previous 50/50 split between burning and rewarding. This change is now set to take effect. pic.twitter.com/hTMKdA0p1p

— SolanaFloor (@SolanaFloor) May 27, 2024

Priority fees are paid by users who want their transactions processed faster, especially during peak times. Validators prioritize these transactions to ensure the network functions properly. The recent vote concluded with 77% in favor of the proposal, demonstrating strong support from validators. 

To implement this proposal, a feature gate is required. While the payment structure for transaction submitters will remain unchanged, the new software will allocate a larger portion of fees to validators compared to previous versions. According to the project’s developer forum, the feature gate is essential to ensure a smooth transition for all validators to the new functionality at the epoch boundary, thereby maintaining consensus.

This feature is available in the Master of Agave repository, starting from version 2.0. It can only be activated on Mainnet Beta after a sufficient quorum of stake has been reached, following the standard feature-enabling rules.

The Community’s View

Previously, 50% of priority fees were burned, which many believed had a deflationary impact on the Solana token (SOL). Under the new model, all priority fees will go to validators, potentially increasing their revenue but also raising concerns about inflation due to more tokens being created.

The decision has sparked mixed reactions within the Solana community. Some members and validators worry about inflationary pressures resulting from the shift from burning fees to fully rewarding validators. Stakewiz, a prominent validator, expressed concerns about Solana token expansion and inflation, predicting a 4.6% increase. He emphasized that SIMD-0096 should be activated gradually and in conjunction with SIMD-0123 to mitigate potential financial impacts.

Conversely, supporters argue that this change will eliminate off-chain side deals, making the fee structure more transparent and fair.

A large-wallet memecoin investor has seen impressive gains of over $3.6 million in FLOKI and MAGA.

According to crypto intelligence tracker Lookonchain, a large wallet investor, known as theunipcs.eth, has accumulated significant amounts of FLOKI and MAGA Hat (MAGA) tokens in exchange for Ether (ETH) since April 8. The investor has seen impressive unrealized gains of over $3.6 million as the value of these assets has soared.

Since Apr 8, theunipcs.eth spent 276.4 $ETH($863K) to buy 4.56B $FLOKI($1.1M currently) and spent 18.45 $ETH($57K) to buy 6.27B $MAGA ($3.48M currently).

In less than 2 months, he earned $3.4M (+6005%) on $MAGA and 245K(+28%) on $FLOKI.https://t.co/KcHii3pdtt pic.twitter.com/rojnnhkH7K

— Lookonchain (@lookonchain) May 27, 2024

Over the past few weeks, there has been a consistent increase in the value of meme coins, possibly due to a shift of funds from established cryptocurrencies like Bitcoin and Ethereum or an uptick in demand from investors. According to Lookonchain’s data, the address theunipcs.eth used 276.4 ETH (worth around $863,000) to buy 4.56 billion FLOKI tokens, which are now valued at approximately $1.1 million. In addition, the investor spent 18.45 ETH (roughly $57,000) to acquire 6.27 billion MAGA tokens, which are now worth $3.48 million. As a result, the investor is currently sitting on unrealized gains of about $3.4 million from MAGA and $245,000 from FLOKI.

FLOKI and MAGA Bullish Trend

The value of FLOKI and MAGA has been consistently increasing during the current surge in memecoin popularity, which aligns with the overall rise in cryptocurrency prices. FLOKI saw a nearly 17% increase on Monday and has gone up by over 36% in the past week. Crypto metrics tracker Santiment reported a 10% increase in active addresses and a social dominance of 0.50% for FLOKI, indicating strong positive momentum for the token.

MAGA experienced an even bigger increase. The active addresses surged by almost 300%, from 626 on Saturday to 2,498 on Monday. At the same time, MAGA’s social dominance rose from 1.57% to 4.2%. The latest data shows MAGA’s price at $0.000614, reflecting an almost 24% increase in a day and a huge 770% gain over the week.

The substantial increase in active addresses and social engagement for FLOKI and MAGA indicates growing interest and participation in these memecoins. This trend suggests that memecoins continue to attract significant attention and investment, contributing to their sustained price rallies and increased market presence.