Wednesday, 2 August 2023

Market Summary

Market Summary 2 August 2023

Bitcoin Price: US$ 29,705.99 (+1.62%)
Ethereum Price: US$ 1,873.47  (+0.93%)  

 

DeFi protocols are taking measures to protect against potential catastrophic liquidations, spurred by the hack of Curve Finance and founder Michael Egorov’s borrowing of millions of dollars in tokens against his CRV holdings. DAOs are implementing emergency measures to prevent inadvertent selling of CRV tokens to avoid bad debt accumulation. Nexus Mutual expects a wave of new claims from the Curve attack and is encouraging customers to wait for accurate assessments. Meanwhile, bitcoin’s Relative Strength Index (RSI) suggests an approaching oversold condition, but history indicates that price response may be mild. GameStop is removing support for crypto wallets due to regulatory uncertainty in the U.S., following the recent regulatory crackdown on crypto-related companies.

MicroStrategy reported a $24.1 million impairment charge on its bitcoin holdings in Q2 due to the decline in bitcoin’s price compared to the acquisition cost, despite adding 12,333 bitcoins in the quarter. The company aims to raise up to $750 million by selling more stock to buy more bitcoin. Meanwhile, Litecoin’s third halving is expected on Wednesday, which will reduce the pace of new issuance and potentially boost its price due to reduced supply. Litecoin’s creator, Charlie Lee, believes the halving helps achieve mass adoption without compromising network security.

Bitcoin briefly dipped below $29,000 as cryptocurrency markets erased overnight gains following a report that the Department of Justice (DOJ) is considering criminal charges against Binance, the world’s largest crypto exchange. Binance’s BNB token also dropped 4% on the news. However, some analysts believe the news may be less bearish than initially perceived, as the resolution to the ongoing Binance/DOJ concerns could be less severe than expected. In another development, Coinbase is looking into adding Bitcoin’s Lightning network for payments to offer more cryptocurrency payment options to users worldwide.

Kenya’s Ministry of the Interior has suspended the operations of Worldcoin, the identity crypto protocol co-founded by Sam Altman of OpenAI, over concerns related to financial security and data protection. Worldcoin aims to create a global identification mechanism based on iris scans, but the collection of biometric data and the signup process in developing countries have drawn criticism, leading to investigations by Kenyan authorities. In the cryptocurrency market, several entities have filed applications with the U.S. SEC for ether (ETH) futures-based exchange-traded funds (ETFs), and proposals are being made to prevent future loans against CRV tokens on Aave, a lending and borrowing platform, after a recent exploit that put the entire DeFi ecosystem under stress.

Abracadabra Finance, a DeFi protocol, is proposing an aggressive measure to protect itself from a massive loan taken against crv (CRV) tokens by raising interest rates on the loan to 200%, effectively liquidating the position. The loan was taken by Curve Finance founder Michael Egorov, and Abracadabra seeks to reduce its overall CRV exposure. Meanwhile, crypto market makers stepped in on Binance to support CRV after a recent exploit, doubling the bid-side market depth to absorb large orders at stable prices. In addition, THORSwap introduced Streaming Swaps, a feature aimed at reducing slippage and improving price execution for large DeFi trades.

 

Source:

https://coindesk.com 

 

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