Monday, 11 September 2023

Market Summary

Market Summary 11 September 2023

Bitcoin Price: US$ 25,841.61 (-0.23%)
Ethereum Price: US$ 1,617.42 (-1.11%)  

 

Decentralised social media platform Friend.tech has defied earlier predictions of its decline, experiencing a rapid resurgence in Total Value Locked (TVL), which has doubled to surpass $20 million within four days, driven by a substantial increase in daily trading volume. Just weeks ago, critics had pronounced the platform “dead” due to dwindling user activity, but it has now outperformed OpenSea in trading volume on September 9. The reasons for this resurgence remain unclear, with some attributing it to users discovering that Friend.tech chats offer yield farming opportunities, while others point to the influx of non-crypto influencers and recent app updates improving user experience. In a separate development, bankrupt crypto exchange FTX is pursuing a lawsuit against LayerZero Labs to recover $21 million in allegedly illegally withdrawn funds before FTX’s November 2022 shutdown. The dispute involves complex transactions between Alameda Ventures, LayerZero, and Alameda Research. Additionally, Bitcoin is showing signs of a concerning trend as a surge in loss-making unspent transaction outputs (UTXOs) suggests parallels with the “black swan” event of March 2020, possibly indicating market anxiety and selling pressure despite Bitcoin’s stable price range.

Recent trading data from Kaiko indicates that despite the initial excitement generated by Worldcoin’s (WLD) launch and its emphasis on artificial intelligence (AI), AI-related tokens have experienced stagnation. While the trading volume of AI tokens had been steadily increasing over the past month, going from $570 million to $870 million from July to August, it has sharply declined since the start of 2023 when it exceeded $7 billion, remaining stagnant thereafter. This waning enthusiasm for AI tokens is attributed to shifting global risk sentiment, with open interest in major AI tokens (excluding WLD) dropping from $170 million in February to $60 million in August. Meanwhile, Terra Classic is considering raising the minimum deposit requirement from 1 million LUNC to 5 million LUNC to combat spam proposals following a drop in Luna Classic (LUNC) prices, and Ethereum co-founder Vitalik Buterin’s X account was allegedly hacked, resulting in victims losing over $691,000 after clicking on a malicious link, prompting discussions about security measures and potential vulnerabilities.

Leaders from the G20 nations are intensifying their efforts to implement a global framework for regulating crypto assets, focusing on enhancing transparency and facilitating cross-border information exchange from 2027. The Crypto-Asset Reporting Framework (CARF), introduced by the Organization for Economic Cooperation and Development in October 2022, will enable automatic information exchange between jurisdictions, covering transactions on unregulated crypto exchanges and wallet providers. Meanwhile, Coinbase’s CEO, Brian Armstrong, is exploring the concept of “flatcoins” as the next step in stablecoin evolution, aiming to peg their value to a diversified basket of on-chain assets rather than a single fiat currency, potentially offering a more robust solution in the crypto space. In contrast, the recent bankruptcy of crypto custodian Prime Trust has exposed systemic issues surrounding self-custody practices within the industry, emphasising the need for comprehensive standards and technical proficiency to ensure secure asset storage and management. The Prime Trust incident revealed a critical integration failure as the company struggled to use its technology effectively, ultimately losing access to millions in deposited assets and exacerbating the situation by making risky investments before its collapse in May 2022.

 

Source:

https://cointelegraph.com
https://theblock.co
https://decrypt.co 

 

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