Golden Weekly is a weekly blockchain industry summary column launched by Golden Finance, covering the week's key news, mining information, project dynamics, technological progress and other industry dynamics. This article is one of the news weekly, taking you through this week's blockchain industry events.
Headlines
▌Bitcoin’s market capitalization share reaches highest level since April 2021
According to Coinglass, over $757 million worth of long liquidations were recorded on centralized exchanges on Saturday, but only $261 million was held in Bitcoin positions. While most crypto assets do fall into the “risky” category for traders, Bitcoin is arguably the least risky cryptocurrency, with the largest market cap and a proven track record of institutional adoption. On the other hand, something like Dogecoin is more speculative, with the cryptocurrency falling nearly 30% from Friday’s high to Saturday’s low. On Sunday, Bitcoin’s dominance, or its share of market cap relative to the total market cap of all cryptocurrencies, jumped to 52.86%, its highest level since April 2021.
▌RuneStone’s total transaction volume exceeds 5,000 BTC
Data shows that RuneStone’s transaction volume in the Magic Eden market is currently 2,249 BTC, and its transaction volume in the OKX Web3 wallet market is currently 2,810 BTC, with the total transaction volume of the two markets reaching 5,059 BTC. As of press time, the floor price is 0.075 BTC.
▌Rune craze pushes up Bitcoin transaction fees
Bitcoin is about to halve, but in addition to this exciting event, a new protocol called Rune has also attracted market attention. The protocol was launched by Bitcoin developer Casey Rodarmor and aims to achieve more efficient token issuance through the UTXO model. Rune is expected to become the next hot topic after its launch, and the transaction volume of the existing token PUPS on the BRC-20 market has soared. However, the Rune frenzy has also led to an increase in Bitcoin transaction fees. The average transaction fee in 7 days has risen from US$4.11 to US$12.17, even exceeding the fee level of Ethereum. This development shows the market's pursuit of new technologies and protocols, as well as concerns about congestion in the Bitcoin network.
policy
▌Fiji Central Bank: Prohibit the use of cryptocurrencies for payment or investment
The Central Bank of Fiji has issued a warning to the public against using cryptocurrencies for payment or investment. The Central Bank of Fiji stated that no license has been issued to any person or entity to provide cryptocurrency investment or virtual asset trading.
▌Grayscale ETF Global Director: Cryptocurrency ETFs other than Bitcoin and Ethereum ETFs will be 100% approved
Grayscale ETF global head David LaValle said he is 100% confident that exchange-traded funds (ETFs) based on cryptocurrencies other than Bitcoin and Ethereum will eventually be available to investors.
Cyprus regulator extends suspension of FTX EU license until September 30
The Cyprus Securities and Exchange Commission (CySEC) has again extended the suspension of the license of FTX (EU) Ltd, the local subsidiary of the now defunct cryptocurrency exchange FTX, with the latest suspension lasting until September 30, 2024. It is reported that the Cyprus Securities and Exchange Commission initially suspended the FTX EU license in November 2022 and has since extended the suspension several times. Although FTX EU has entered bankruptcy proceedings, the Cypriot regulator stressed that as long as the license is suspended, the exchange cannot "provide/conduct investment services/activities, enter into any commercial transactions with any person and accept any new transactions."
▌South Korean, Japanese and Singaporean regulators may follow Hong Kong’s lead in approving spot Bitcoin ETFs
After Hong Kong regulators approved spot Bitcoin and Ethereum ETFs in principle, other Asian regulators may also take similar actions, and South Korea, Japan and Singapore may follow Hong Kong's lead in approving virtual asset ETFs. Karim Saber, a research assistant at cryptocurrency ETP issuer 21Shares, said that the victory of the pro-Bitcoin South Korean opposition party in the April election may lead to regulators approving Bitcoin ETFs as early as this year; Tim Bevan, CEO of cryptocurrency ETP issuer ETC Group, expects Japan and South Korea to approve such products in the next 6 to 12 months.
Cyprus regulator extends suspension of FTX EU license until September 30
The Cyprus Securities and Exchange Commission (CySEC) has again extended the suspension of the license of FTX (EU) Ltd, the local subsidiary of the now defunct cryptocurrency exchange FTX, with the latest suspension lasting until September 30, 2024. It is reported that the Cyprus Securities and Exchange Commission initially suspended the FTX EU license in November 2022 and has since extended the suspension several times. Although FTX EU has entered bankruptcy proceedings, the Cypriot regulator stressed that as long as the license is suspended, the exchange cannot "provide/conduct investment services/activities, enter into any commercial transactions with any person and accept any new transactions."
▌Nebraska man arrested for stealing computing power to mine $1 million worth of cryptocurrency
According to the U.S. Department of Justice, Charles O. Parks III, 45, is suspected of stealing $3.5 million worth of cloud computing services to mine $1 million worth of cryptocurrency through a so-called "cryptojacking" scheme. Cryptojacking involves using the computing power of others to mine cryptocurrency for yourself. According to the official government release, Parks is suspected of defrauding two "well-known" cloud computing providers, committing wire fraud, money laundering and illegal currency transactions. Parks will make his first appearance in federal court on April 16, following his initial arrest in Nebraska on April 13.
▌US Senators request investigation into CFTC Chairman's multiple meetings with SBF
U.S. Senators Elizabeth Warren and Chuck Grassley have called for an investigation into the multiple meetings between U.S. Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam and former FTX CEO Sam Bankman-Fried (SBF). Warren and Grassley pressured the CFTC on SBF, asking Behnam to take inventory of all meetings and communications between his office and SBF. Behna previously told Congress that he met with SBF and his team multiple times to process the company's applications to the agency. It is reported that the CFTC confirmed that it had received the letter from Warren and Grassley, but declined to comment further.
▌US IRS releases new tax form draft: Cryptocurrency investors may face new regulations
The U.S. Internal Revenue Service (IRS) has revealed important news that could affect cryptocurrency investors. The agency previewed a draft of a future tax form that aims to dictate how brokered sales of digital assets should be reported. The new 1099-DA form will purportedly help calculate taxable gains or losses when brokering digital asset transactions and may include filling in personal token codes and providing information such as wallet addresses. While the preview is still preliminary and may change depending on the outcome of the final tax rules, the move is seen as a step towards resolving uncertainty and confusion among cryptocurrency investors. The new rule is expected to play a key role in promoting standardization of cryptocurrency tax practices. The IRS has now invited public comment on the draft form, and it is unclear when the final version will be released.
Blockchain Applications
▌Trust Wallet: iOS iMessage has a high-risk vulnerability, it is recommended to disable it until the vulnerability is patched
Trust Wallet posted on the X platform that it had discovered a high-risk vulnerability in iMessage for iOS users, which could hack into the user's iPhone without clicking on any links. It is recommended to disable iMessages as soon as possible until Apple fixes this vulnerability.
Tokenization company PV01 tokenizes $5 million in treasury bills and plans to consider corporate bond tokenization
PV01, a tokenization company led by the founder of cryptocurrency market maker B2C2, has completed its first tokenized bond sale under UK law, marking a key step towards the goal of creating a bond market (including corporate debt) on blockchain rails. The asset is an Ethereum blockchain tokenized version of a single $5 million U.S. Treasury note issued on April 8 and redeemed a week later. Market makers B2C2, BlockTower Capital and Keyrock invested in PV01's "proof of concept" issuance. The company "hopes" to facilitate a tokenized corporate bond sale for a cryptocurrency company in the "coming months."
87.4% of Solana network validators have updated to V1.17.31
According to SolanaFloor’s post on X platform, 87.4% of Solana network validators have updated to V1.17.31. The completion of this update will help solve the ongoing congestion problem on the Solana network. Earlier news, Anza, who is responsible for handling Solana’s congestion problem, posted on X platform that MainnetBeta validators generally use V1.17.31. This version contains improved features that will help alleviate the ongoing congestion problem on the Solana network; and will continue to be improved in V1.18.
▌Tether announces new corporate framework: data, finance, energy and education
Tether announces new corporate structure:Tether Data – Strategic Investments in Technology Division; Tether’s Technology Division focuses on the development and strategic investments in emerging technologies such as artificial intelligence and peer-to-peer platforms.Tether Finance – Digital Asset Services Division; Tether Finance is poised to pioneer the use of blockchain technology to build unstoppable financial infrastructure, including an upcoming digital asset tokenization platform, thereby facilitating mainstream adoption of digital assets.Tether Power – Sustainable Bitcoin Mining and Energy Division; Tether’s Mining and Energy Division is engaging in sustainable Bitcoin mining operations, taking responsible practices to ensure the integrity of the world’s most powerful monetary network.
Cryptocurrency
▌Nigerian court postpones Binance executive hearing date to April 22
The Federal High Court in Abuja, Nigeria, has again postponed the hearing of the bail application of Binance executive Tigran Gambaryan, who remains incarcerated at the Kuje Correctional Centre. The court had originally scheduled the hearing for April 18, but has now rescheduled it to April 22. During the court session, the Economic and Financial Crimes Commission (EFCC) told the court that Gambaryan’s lawyers filed an additional affidavit in response to his bail application on April 16. Senior Counsel E. Iheanacho highlighted the new arguments raised by the defence, which require time to respond appropriately in the pursuit of justice.
▌Binance CEO: The approval of Bitcoin ETF has boosted demand for Bitcoin and expanded its influence
Binance CEO Richard Teng said this year's Bitcoin halving is unique because it occurs amid a series of other major events happening in Bitcoin and the broader crypto ecosystem. In addition to the ETF breakthrough that has sparked institutional interest and participation, another major trend in the crypto space today is the boom in Layer 2 and DeFi activity on the Bitcoin network, thanks to the popularity of the Ordinals protocol and Bitcoin Inscription. Teng pointed out that historically, the price of Bitcoin has risen within six months of each halving event. The halving occurs every four years and cuts the number of Bitcoin rewards given to miners in half. He said the reduction in the supply of new coins is likely the reason why the market reacts to each event. However, he noted that the room for further growth depends on a series of factors, including overall market sentiment and adoption. He added that the approval of a Bitcoin ETF has already driven demand for Bitcoin and expanded its reach.
▌Deutsche Bank: The positive effects of Bitcoin halving have been partially digested
Deutsche Bank (DB) said in a research report on Thursday that it expects the Bitcoin reward halving to be partially digested by the market in the next few days, and the cryptocurrency is unlikely to rebound sharply after the halving. The report pointed out that Bitcoin prices are expected to remain high due to market expectations for the approval of future spot Ethereum ETFs, future central bank rate cuts, and regulatory changes. In addition, with the surge in Layer2 solutions and DeFi activities, the practicality of the network has been enhanced, and the prospects for the entire Bitcoin ecosystem and the broader cryptocurrency field have begun to become extremely favorable.
▌Analyst: The US spot Bitcoin ETF market is larger than the entire Hong Kong ETF market
Bloomberg ETF analyst Eric Balchunas said on the X platform that the size of the U.S. spot Bitcoin ETF market is larger than the entire Hong Kong ETF market. According to Dune data, the current size of the U.S. spot Bitcoin ETF market is about $54.3 billion. According to data disclosed by Bloomberg ETF analyst James Seyffart, the size of the entire ETF market in Hong Kong, China is about $50 billion, the size of the ETF market in mainland China is about $325 billion, and the size of the U.S. ETF market is about $9 trillion.
▌Coinbase releases Bitcoin halving commercial: Bitcoin drives currency forward
According to Bitcoin Magazine, Coinbase has released a Bitcoin halving commercial that says: Bitcoin moves money forward.
▌Messari: Livepeer network usage increased by 31% month-on-month, reaching a record high in the first quarter of this year
Messari said in a statement that driven by the live broadcast platform, the usage of the Livepeer network increased by 31% month-on-month and reached an all-time high in the first quarter of 24. In addition to transcoding, Livepeer also plans to introduce AI video computing capabilities to its network.
▌EigenLayer: All LST asset caps have been lifted, and re-staking is now open
Ethereum re-staking protocol EigenLayer announced on the X platform that all Liquid Staking Token (LST) caps have been removed, and LST re-staking is now open, and ETH can be re-staked through EigenPod on the EigenLayer application.
▌Pyth Network launches PRCL/USD price feed service
Decentralized oracle service Pyth Network announced the launch of PRCL/USD price feed service on X platform and will be available on more than 55 blockchains.
▌Ethereum has about $50.67 million in on-chain loan liquidation quota around $2831
According to DefiLlama data, Ethereum has an on-chain loan liquidation amount of approximately US$50.67 million around US$2,831.
Important economic developments
▌Inflation remains sticky, Powell hints at delaying rate cuts
Fed Chairman Jerome Powell said recent inflation data suggests it may take longer for the central bank to gain the confidence it needs to cut interest rates. Powell pointed to the lack of further progress on inflation after a rapid decline late last year. He said the Fed could keep interest rates steady as long as needed if price pressures persist. He said given the strength of the labor market and progress on inflation so far, it would be appropriate to give restrictive policies more time to work and let the data and the changing outlook guide the Fed.
▌The probability of the Federal Reserve keeping interest rates unchanged in May is 95.4%
According to CME's "Fed Watch": the probability of the Fed keeping interest rates unchanged in May is 95.4%, and the probability of a 25 basis point rate cut is 4.6%. The probability of the Fed keeping interest rates unchanged in June is 7.5%, the probability of a cumulative 25 basis point rate cut is 21.7%, and the probability of a cumulative 50 basis point rate cut is 0.9%.
▌BlackRock executive Watson: It is reasonable for the Federal Reserve to cut interest rates twice this year
Marilyn Watson, BlackRock’s global head of fundamental fixed income strategy, said the firm expects the Federal Reserve to cut interest rates about twice this year as resilient economic data and an “unexpectedly strong” labor market prevent the Fed from easing policy more quickly. “We did expect at the beginning of the year that rates would be higher and more persistent,” Watson said. “We do still think there is a good chance that there will be some rate cuts this year, but I think it’s probably quite reasonable at this point to look at about two rate cuts. There is a chance that they could cut in June.”
▌Fed Kashkari: It may take until 2025 to cut interest rates
Federal Reserve's Kashkari said that he was surprised by the resilience of the U.S. housing market; once inflation continues to fall back to 2%, we can cut interest rates; we need to be patient until we are sure that inflation has fallen; it may take until 2025 to cut interest rates; as political heat rises, the Fed is more concerned about its own mission.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
