Weekly Crypto Digest: Historic Liquidation Event Wipes $700M in Long Positions
Weekly Crypto Digest for 01/07/24 - 07/07/24
Market Overview
The past week has seen heightened fear in the cryptocurrency market, marked by a notable downturn on the fear & greed index and alarming news events. This turbulent period witnessed the second-largest liquidation event in history, erasing $700 million in long positions and driving Bitcoin below $55,000. The ensuing cascade of sell-offs triggered widespread panic among investors.
Contributing to the market downturn were announcements from Mt. Gox Exchange, flooding the market with additional BTC supply at discounted prices. Furthermore, exchange-traded funds (ETFs) and recent cryptocurrency sell-offs by the US and German governments intensified selling pressure.
As a result, altcoins faced significant downward pressure and liquidation events, with some setting new all-time lows. Additionally, this month's scheduled unlocks for major projects are poised to impact market dynamics significantly.
Top 10 Gainers and Losers
Weekly News Highlights Summary
The trustee overseeing Mt. Gox, the Japanese bitcoin exchange that collapsed in 2014, has initiated payments in bitcoin and bitcoin cash to certain creditors. Repayments to other users are contingent upon meeting specified conditions, including account verification and registration with designated digital asset exchanges. Customers, who have awaited restitution for a decade, are now seeing progress, with significant bitcoin movements and market implications anticipated amid expectations of potential selling pressure followed by a market rebound.
Solana-based memecoin launchpad Pump.fun has surpassed Ethereum in daily revenue, generating $1.99 million compared to Ethereum's $1.91 million, according to DefiLlama. Pump.fun's popularity, fueled by its ease of use and Solana's low transaction fees, has led to the creation of over 1.19 million tokens and a cumulative revenue of $51.3 million. This surge reflects the recent meme-token boom and highlights Pump.fun as the top revenue-generating platform among blockchains.
The EU's Markets in Crypto Assets (MiCA) regulation for stablecoins is now in effect, requiring users to switch from non-compliant stablecoins to regulated ones like USDC within the bloc. The new rules restrict stablecoins from exceeding one million daily transactions for payments, whether settled on-chain or off-chain. This move aims to standardize stablecoin usage and protect users under the latest market regulations, discouraging the use of unregulated stablecoins on offshore platforms due to potential legal and financial risks. MiCA's implementation poses challenges for issuers but sets a precedent for global cryptocurrency regulations.
The German and U.S. governments have attracted significant attention by executing substantial transfers of crypto assets totaling $150 million. Germany moved 1,500 BTC valued at about $95 million to various exchanges on July 1, while the U.S. government transferred 3,375 ETH worth $11.75 million to an undisclosed address from seized assets. These transactions, closely monitored by market analysts, indicate strategic management of government-held funds, potentially impacting market dynamics and prompting investor caution amidst concerns over increased selling pressure and market volatility.
Analysis of Crypto Projects
Featuring 2 crypto projects that cover different categories which may trend (Restaking and DePin).
Restaking Category - EtherFi Summary
🌐 EtherFi Socials
Website: https://www.ether.fi/
DePin Category - Nosana Summary
🌐 Nosana Socials
Website: https://nosana.io/
Top 10 Highlight Events of The Week
🔧 MetaMask launches Smart Transactions enhancing transaction privacy and efficiency 🌐
Zircuit launches second season of its Points Program 🎉
Vela Exchange releases V2 alongside updated tokenomics 🔄
XAI unlocks 198M tokens (worth $83M) 💰
Gomining Token listed on HTX Global 🌍
Galaxe launches migration portal from Galaxe (GAL) to Gravity (G) 🚀
Deso transitions from Proof of Work to Proof of Stake 🔧
Portal launches infrastructure for cross-chain transactions 🌐
Binance announces support for the BNB Beacon Chain (BEP2) network upgrade and hard fork to enhance user experience and stability 🔄
Abu Dhabi emerges as a Web3 Hub 🏙️
Web3 AI firm Raiinmaker raised $7.5M to develop AI-driven solutions 💡
Excellent news and information of the market.