Daily market update (December 29, 2024, 20:35)
ChainDD's market report on December 29 shows the comprehensive ChainDD index and CoinMarketCap quotations:
BTC is quoted at $94,822.78, with a 24-hour increase of about 0.40%;
ETH is quoted at $3,392.27, with a 24-hour increase of about 1.38%;
BNB is quoted at $709.3, with a 24-hour increase of about 0.64%;
DOGE is quoted at $0.3249, with a 24-hour increase of about 1.23%;
DOT is quoted at $7.01, with a 24-hour increase of about 2.14%.
Crypto market dynamics
Data: Bitcoin mining's clean energy usage rate exceeds 56%
According to data from Woocharts, the share of clean or sustainable energy used in mining currently stands at 56.76%. Since April 2021, the use of clean energy for BTC mining has steadily increased. The platform uses the Cambridge Centre for Alternative Finance's definition of sustainability to measure the amount of clean energy used, with relevant metrics depending on the share of energy from wind, solar, hydro, and even nuclear power in crypto mining operations.
A newly created wallet accumulated 2,700 BTC from Binance in the past 14 hours, worth over $250 million.
According to Onchain Lens monitoring, a newly created wallet accumulated 2,700 BTC from Binance in the past 14 hours, worth $256.35 million.
US and EU banks are accelerating stablecoin efforts amid regulatory advancements and growing demand.
Driven by increasing regulatory transparency and sustained market demand, banks across the United States and Europe are ramping up their issuance of stablecoins. The introduction of the EU's Markets in Crypto-Assets regulation (MiCA) and growing global interest in blockchain-based payment solutions have prompted traditional financial institutions to compete with established crypto firms like Tether Holdings.
Many European banks have begun deploying their own stablecoins to capture a market share that could reportedly generate billions in profits each year. Societe Generale's digital asset subsidiary SG-Forge has now opened its euro stablecoin to retail investors. Similarly, Frankfurt's Oddo BHF SCA and London's Revolut are also considering launching euro stablecoins, while another issuer supported by Deutsche Bank's asset management division, DWS, is expected to launch its euro stablecoin in 2025.
Jean-Marc Stenger, CEO of SG-Forge, stated that more banks will adopt bank-issued stablecoins. SG-Forge is currently in discussions with about ten banks as potential partners or users of SG-Forge's stablecoin issuance technology.
Similarly, global payment technology company Visa Inc. is also collaborating with banks like BBVA to create stablecoin solutions using blockchain technology. Visa's cryptocurrency head Cuy Sheffield stated that the company is currently in talks with institutions in Hong Kong, Singapore, and Brazil.
In the United States, with discussions around the regulatory environment, some banks such as JPMorgan have begun testing blockchain-based payment systems. While JPMorgan has used its deposit token JPM Coin for internal transfers, it lacks the open connectivity unique to stablecoins, which can be accessed through any crypto wallet.
Naveen Mallela, co-head of JPMorgan's digital asset division Kinexys, stated that JPM Coin is expected to gain more market recognition in the next three years. He noted that stablecoins and tokenized deposits can coexist as different payment methods.
However, there are still some issues that could be problematic for American banks. It remains unclear what types of reserves can support stablecoins and whether these deposits qualify for federal insurance, which could lead to some confusion during financial turmoil.
The MiCA regulatory rules will take effect on December 30, 2024, marking an important milestone for stablecoin issuers in Europe. MiCA ensures that stablecoin providers have the proper licenses to operate in the EU and establishes guidelines for reserve management and investor protection. Circle's USDC has been approved under MiCA and can now be used more broadly across the region. However, market leader Tether Holdings has yet to mention plans to obtain a euro stablecoin license. Experts say this could open possibilities for banks and their competitors to enter this field.
Meanwhile, the European Central Bank has expressed concerns about the potential impact of stablecoins on traditional banking. A recent study by the ECB found that converting retail deposits into stablecoins could weaken banks' liquidity coverage ratios.
As commercial banks begin to issue stablecoins, central banks are also actively developing CBDCs. These government-backed digital currencies may ultimately compete with or replace bank-issued stablecoins in wholesale payment systems.
Avtar Sehra, CEO of Libre Capital, pointed out: "Everyone is exploring some form of commercial bank digital currency. However, many may prefer consortium coins." It has been reported that several banks are considering forming a consortium to create a blockchain-based shared token for greater interoperability and efficiency.
FEG: has requested additional support from PeckShield to investigate fraudulent transactions
FEG (Feed Every Gorilla) announced on the X platform that FEGrox is actively investigating fraudulent transactions and has requested additional support from PeckShield to identify the root cause. Furthermore, FEG expressed understanding of the community's frustration, stating that its team has worked tirelessly on this project over the past four years, making countless sacrifices along the way. Therefore, they are committed to finding answers and resolving issues, and the centralized exchange has been notified to halt trading. More updates will be shared as information becomes available.
Preliminary investigations suggest that there may be vulnerabilities in the Wormhole bridging that have previously been audited. It should be emphasized that the SmartDeFi contract code appears to be unaffected, and the SmartDeFi protocol has been paused as a precaution. Projects built on this protocol remain safe for now.
(Fortune): Tether's high profits "stimulate" several banks globally to join
Tether is expected to achieve a net profit of over $10 billion by the end of this year, "stimulating" several banks globally to join the stablecoin market and share in the profits, including:
1. Societe Generale-Forge, a subsidiary of Societe Generale, launched a euro-backed stablecoin;
2. Oddo BHF SCA is also developing a euro-denominated stablecoin;
3. London-based Revolut is considering issuing its own stablecoin;
4. DWS, a subsidiary of Deutsche Bank, plans to launch a stablecoin next year;
5. BBVA also plans to enter the stablecoin market and has partnered with Visa to launch a tokenized network for banks to issue stablecoins, with a pilot scheduled for 2025;
6. Standard Chartered Bank and Animoca Brands, along with Hong Kong Telecommunications, have been selected by the Hong Kong Monetary Authority as one of the first banks to issue a Hong Kong dollar stablecoin in the pilot project.
