Wednesday, 19 October 2022

Market Summary

Market Summary 19 October 2022

Bitcoin Price: US$19,327.44 (-1.14%)
Ethereum Price: US$ 1,310.72 (-1.55%) 

 

Gnosis Safe Grows as Multi-Sig Wallets Gain Adoption

  • Aptos, an L1 blockchain backed by a16z and FTX, is off to a slow start.
  • Dapper Labs enables NFT withdrawals to non-custodial wallets for users affected by the EU’s sanctions against Russia.
  • Azuki introduces the Physical Backed Token, an open-source token standard tying a physical item to a digital token.
  • The SEC and CFTC are looking into whether Three Arrows Capital misled investors about its balance sheet.
  • Shares of crypto bank Silvergate are down by 10% as the bank reports net income and revenue below expectations.
  • Gnosis Safe is a multi-signature smart contract wallet that requires a minimum number of pre-determined wallets to sign a transaction before it can be broadcast to the network.
  • This is a security feature intended to protect a wallet from being drained. Even if such a wallet is compromised, the exploiter would require the minimum number of signatures (e.g. 2 out of 3) before executing a transaction from the wallet.
  • Since 2021, the adoption of Gnosis Safe has been trending upward. The project grew from ~120 Safes created each week at the start of 2021 to ~1-2K today. During the same period, weekly transactions from Safes grew from under 1K to ~10-20k.
  • The growth is likely due to more protocols and companies using Gnosis Safe to secure their internal wallets. Users trying to remove a single point of failure (e.g. losing their seed phrase) can also use Gnosis Safe.
  • Furthermore, protocols and wallets like Prysm, Tally, and Metamask Institutional are continuously integrating Gnosis Safe for their users, driving even more adoption from external sources.
  • ATOM 2.0: Building the Hub’s Economy: Breaking it down, there will be four value drivers to ATOM. The Scheduler will capture MEV and split profits with partner chains.
  • The Allocator will take funding from the treasury through ATOM issuance and Scheduler profits to generate their own profits through various activities like LPing, seed investing, lending, etc.
  • The majority of Allocator profits will be reinvested, but there is the possibility to distribute some to token holders as well.
  • Interchain Security will provide additional income in the form of gas fees and Consumer Chain tokens which will be distributed to validators, delegators, and the community pool.
  • In the long-run, these four drivers are expected to yield sufficient revenues so that the Hub can stop ATOM issuance altogether.

 

Aptos Token Plunges in Trading Debut

  • Newcomer cryptocurrency Aptos plunged in value early Wednesday in its debut on major exchanges as traders welcomed APT into crypto winter.
  • The hotly anticipated layer 1 token was listed in the $9 range – down over 30% – on CoinGecko within its first hour of trading.
  • Coinbase, Huobi, OKX, FTX and Binance opened spot trading for APT at 1:00 UTC Wednesday.

 

Effort to Reverse Bitcoin Fund Rejection Wins Broad Crypto Industry Support

  • Three trade groups representing a wide swath of the crypto industry filed an amicus brief supporting a Grayscale Investments lawsuit against the Securities and Exchange Commission (SEC) for rejecting the firm’s proposal for a spot bitcoin (BTC) exchange-traded fund.
  • In the brief submitted Tuesday to the U.S. Court of Appeals for the District of Columbia Circuit, the Blockchain Association, the Chamber of Digital Commerce and Coin Center noted that the SEC had “categorically denied every proposal” to list ETFs that hold bitcoin, despite approving multiple ETPs that hold bitcoin derivatives (specifically, futures contracts).
  • “The Commission’s ‘thumb on the scale’ approach does not withstand scrutiny,” the groups said, calling spot ETFs “ideally suited” for investors who desire exposure to bitcoin. The groups added that the SEC had allowed “similar, riskier products to enter the market,” yet ETFs “plainly satisfy regulatory requirements for listing on a national securities exchange.”

 

Bitcoin Slips as Stocks Rise, Sparking Speculation Over Correlation

  • Crypto markets were lower in U.S. midday trading, underperforming stocks as the correlation between bitcoin and the Standard & Poor’s 500 Index fell to the lowest point since January.
  • The CoinDesk Market Index fell by 1.6% over the past 24 hours. Bitcoin (BTC), the largest cryptocurrency by market value, was down 1.7%, changing hands in a range between $19,300 and $19,700. Ether (ETH), the second-largest by market capitalization, followed a similar trajectory, down 2% to about $1,300 as of press time.
  • For most of this year bitcoin has traded in sync with stocks as the Federal Reserve tightened monetary conditions as part of a campaign to bring down soaring inflation – putting downward pressure on prices for risky assets including stocks and cryptocurrencies.
  • Recently, the strong correlation has faded, and digital-asset analysts are wondering whether cryptocurrencies might be decoupling from stocks.

 

Meta Platforms Follows Blockchain Firms in Joining Cryptographic Privacy Group MPC Alliance

  • Facebook parent Meta Platforms (META) has joined the MPC Alliance, a nonprofit group focused on cryptographic privacy and security, according to a press release on Tuesday.
  • The MPC Alliance is made up of 59 members, including Alibaba Group, engineering firm Bosch and a slew of blockchain firms, including Bolt Labs, Ciphermode Labs and Partisia Blockchain.
  • “Having major institutions like Meta join the organization strengthens the alliance and provides even greater market validation,” Frank Wiener, president of the MPC Alliance and marketing director at Blockdaemon, a blockchain infrastructure firm, said in the release.

 

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  • The #Bitcoin Spring is Coiled for High Volatility.
  • Our latest video report is now live covering:
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    • On-chain spending patterns at a decision point
    • $BTC Futures Open Interest at All-time-high

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