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Coinbase Leads On-Chain Ops: Move Funds On L2 Base

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Coinbase is moving both corporate and customer USDC balances on its L2 network, Base, to manage and secure user funds with lower fees and faster settlement times, VP Max Branzburg recently announced. This transition will not impact the Coinbase user experience, Branzburg reassured users. Furthermore, he expressed excitement about advancing their operations on-chain. He encouraged other firms to embrace similar approaches.

If you’re curious about how Coinbase manages and secures your funds, you can learn more here. We always store your assets 1:1. We will never repurpose your funds. We do not lend or take any action with your assets, unless you specifically instruct us to.

CEO Brian Armstrong lauded the move, emphasizing that the crypto industry needs to bridge the gap to traditional finances [tradfi] to facilitate the flow of fiat into crypto. “For that, I think Coinbase is providing the most trusted infrastructure globally, including now for derivatives,” he said.

Coinbase is moving its business on-chain. Eventually, all crypto exchanges will move on-chain Then banks Every asset is a future token. Every bank is a future chain Ethereum is the world’s settlement layer.

The reaction has been mixed. Some expressed concerns about whether a centralized player holding customer assets can truly be considered decentralized or not, or if it is safe against hacks or exploits.

Meanwhile, since the launch of EIP-4844, commonly called proto-danksharding, Ethereum layer-2 solutions like Base have posted a 5x increase in demand, driving fees back up. Gas fees skyrocketed by a staggering 2000% on March 20, reaching an average of $2 during periods of intense network congestion.

Coinbase L2 Team Plans To Hike Gas Fees By 50%

Although fees swiftly returned to their usual $0.2 level as activity levels subsided, they surged once more over the weekend, reaching $1.9—an 1100% increase. To reduce fees and scale, Base Contributors is set to increase the gas target by 50% [to 3.75 mgas/s] soon and then to 5 mgas/s following an observation period, targeting early next week.

Following Ethereum’s Dencun upgrade, Base’s TVL metrics reach unprecedented levels. As reported by TronWeekly, the total value locked hit a new all-time high of $2.16 billion. The current total locked-up volume of the Ethereum Layer 2 network is over $36 billion.

Bitcoin ETFs Bounce Back, Attracting $418 Million in Net Inflows

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After a brief period of investor jitters, the U.S. spot Bitcoin ETF (exchange-trade­d fund) market seems to be re­gaining stability. According to the HODL15Capital, the te­n newly launched spot Bitcoin ETFs witnesse­d a combined $418 million net inflow on March 26th. This signifies a major turnaround from the­ preceding five conse­cutive days of net outflows.

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Source: HODL15Capital

Prominent Bitcoin ETF provide­rs Fidelity and BlackRock drove this rene­wed interest through substantial inflows. Fide­lity’s Bitcoin ETF attracted a mammoth $279.1 million inflow – its largest single-day inflow since­ March 13th. Concurrently, Fidelity added around 4,000 BTC to its holdings. It marke­d the second day with inflows exce­eding $260 million.

BlackRock’s iShares Bitcoin Trust (IBIT) also expe­rienced positive $162.2 million inflows. Howe­ver, these re­main lower compared to earlie­r March when daily inflows averaged ove­r $300 million. Other notable inflows include Ark 21Share­s Bitcoin ETF ($73.6 million), Invesco Galaxy, Franklin Templeton, and Valkyrie­’s respective Bitcoin ETF offe­rings (over $26 million each).

Grayscale Loses Ground Amid Bitcoin ETFs Surge

While the overall spot Bitcoin ETFs outlook is positive­, Grayscale’s Bitcoin Trust (GBTC) continued witnessing outflows. On March 26th, the­ trust recorded a $212 million daily outflow. Neve­rtheless, this negative­ figure couldn’t outweigh competitors’ combine­d inflows. Since January 11th, 2024, whe­n Grayscale transitioned from a trust to an ETF, it has faced a major se­tback. It lost 277,393 BTC, roughly $19.5 billion at current rates. This repre­sents a significant decline in its holdings.

Be­yond individual players, a recent Bloombe­rg post by senior ETF analyst Eric Balchunas highlights Bitcoin ETFs’ impressive first 50 trading days. His March 26th analysis showe­d a chart with the 30 largest asset funds during the­ir initial launch period. Remarkably, four Bitcoin ETFs made the­ global funds list. BlackRock’s IBIT and Fidelity’s FBTC led the pack.

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Source: Bloomberg Intelligence

Balchunas furthe­r emphasized these­ Bitcoin ETFs’ dominance. Even the 18th-ranke­d Bitwise Bitcoin ETF (BITB) by assets under manage­ment holds more than the world’s le­ading gold ETF, SPDR Gold Shares (GLD). The rece­nt influx into spot Bitcoin ETFs and positive industry data suggest growing inve­stor appetite for this new asse­t class. While Grayscale struggles, the­ overall spot Bitcoin ETF market sentime­nt seems upward.

Related Reading | Ethereum Co-Founder Vitalik Proposes Anti-Correlation Penalties To Boost Decentralization

UK Cracks Down on Crypto Memes to Combat Influencer Scams

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The Financial Conduct Authority (FCA), the UK’s financial watchdog, has issued new guidelines targeting social media influencers, or “finfluencers,” who use memes to promote cryptocurrencies and other investments. This move aims to tackle a concerning rise in scams perpetrated through these lighthearted online messages.

Lucy Castledine, director of consumer investments at the FCA, highlights this tension: “Social media will not always be the best place to promote complex products. Firms need to consider whether a platform that offers limited characters or space is the right place to do so.”

The FCA isn’t just focusing on traditional advertising channels. Influencers who promote financial products on social media platforms like Reddit and Telegram, popular with crypto enthusiasts, will also face stricter oversight. These platforms, with their chatroom-like features, have become breeding grounds for meme-based promotions.

The FCA emphasizes that user-generated content on these platforms isn’t exempt from regulations. “Users of chatrooms and forums should be aware that financial promotions on those channels will still be subject to its rules,” the FCA stated. This includes requiring influencers to have the approval of an FCA-appointed representative before publishing financial promotions, even in meme form.

Crypto Memes Spark Regulatory Concern

The FCA’s heightened focus on crypto advertising isn’t surprising. With their inherent volatility and complexities, Cryptocurrencies are a hotbed for potential scams. The FCA took down over 10,000 misleading adverts about financial services in 2022 alone. Memes, with their ability to spread virally, can be particularly deceptive tools in this space.

Moreove­r, the surge in meme­-based financial advice parallels the­ rise of scams during the COVID-19 outbreak. As more­ individuals sought financial services online, fraudste­rs seized the chance­. The FCA’s new guideline­s aim to safeguard investors navigating this evolving digital landscape­.

The FCA’s actions do not signal an end to humor in financial communication. Howeve­r, they underscore the­ importance of responsible me­ssaging. Financial influencers employing me­mes to promote investme­nt prospects must adapt strategies to comply with re­gulations. This shift could usher in a new era of financially savvy me­mes prioritizing accurate information and humor.

Related Reading | Ethereum Co-Founder Vitalik Proposes Anti-Correlation Penalties To Boost Decentralization

Litecoin ETF Hype Hits the Market

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Litecoin’s resurgence has sparked fresh enthusiasm as rumors of potential ETF approval swirl across the crypto space. Adding weight to the speculation are LTC’s functional similarities to Bitcoin, which might pave the way for smoother regulatory approval than Ethereum. Recent developments concerning LTC have steered institutional sentiment toward the token.

Just a week ago, Coinbase filed applications with the CFTC seeking approval to launch futures trading on Litecoin, Dogecoin [DOGE], and Bitcoin Cash [BCH] on April 1. Surprisingly, the submissions made on March 7 went unnoticed. A total of three letters were sent addressing Christopher J. Kirkpatrick, Secretary of the Commission.

SCOOP (with fixed ticker): Hearing rumblings on the institutional level about possible interest in a Litecoin ETF. The logic is that because of LTC’s functional similarities to BTC, the SECGov may be more inclined to approve it, possibly even more so than ETH. Last week, Coinbase Derivatives announced plans to launch CFTC-approved futures contracts for Dogecoin, Litecoin, and Bitcoin Cash on April 1st (next Monday).

The futures contracts are set to begin trading by April 1. If approved by the CFTC, these contracts will offer investors new opportunities to engage with these popular cryptocurrencies in a regulated environment. Moreover, the crypto exchange is leveraging self-certification with the U.S. CFTC to quickly list and ensure compliance. All three cryptocurrencies are derived from Bitcoin and are considered commodities by the SEC.

In January, rumors for an exchange-traded fund on the leading altcoin began to gather steam after Grayscale Investments, the world’s largest digital asset manager, announced that its single asset products, including Grayscale Litecoin Trust [LTCN], have become SEC reporting companies. This move suggests a growing institutional interest in LTC as a viable investment option.

Litecoin Breakout Achieved, Next Hurdle At $100

Price-wise, the 21-ranked token is displaying signs of a potential price breakout after remaining stagnant for a while. Alongside a daily gain of 9%, the token ecosystem is garnering accelerated community interest, with a 314% surge in the number of creators posting about LTC, per LunarCrush.

Litecoin
Image Source: LunarCrush

Meanwhile, in the 1-week timeframe, the trendline breakout has already occurred. However, experts caution that a potential trend reversal might occur if buying pressure weakens, as a strong supply around $100 looms large. With recovery momentum rising, LTC is anticipated to breach the $100 resistance level. It is also worth noting that a retest at a $100 breakout could temporarily stall bullish momentum.

KuCoin Bleeds $100M In 3 Hours Post-DOJ Indictment

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KuCoin’s reserves in stablecoins have decreased by more than $100 million in three hours after the US Department of Justice [DOJ] announced that it initiated an indictment. According to CryptoQuant, the mass exodus of stablecoins is primarily driven by clients based in the United States who were apprehensive about their accounts being blocked or frozen by the US or their broker. It is worth noting that the reserves consist solely of ERC-20 stablecoins compatible with Ethereum. 

The focus of the indictment is KuCoin’s two founders, Chun Gan, a.k.a. “Michael,” and Ke Tang, known as “Eric.” In addition to “conspiring to violate the Bank Secrecy Law,” the DOJ has accused the top execs of multiple charges, such as failing to maintain an adequate anti-money laundering [“AML”] program and operating without a license.

Reports from SpotOnChain further shed light on the withdrawal. After lodging a criminal complaint against KuCoin, roughly $500 million in assets have been withdrawn from KuCoin on Ethereum in the past few hours, including 274 million USDT, 15,500 ETH, 50 million ONDO, 12 million FET, 95.38 million GHX, etc. At present, KuCoin hot wallets still hold over $3.6 billion worth of assets on Ethereum.

Data from 0xscope showed that KuCoin’s overall assets have posted a net outflow of approximately U$1.195 billion in the past 24 hours, and it still holds $4.02 billion in assets [including its exchange tokens].

KuCoin Responds to DOJ Charges

The platform has been grappling with legal and operational woes since the Luna Blowup, which crippled many major industry players, exposing their liquidity crises. Subsequently, the firm was banned by the Canadian Regulator, the Ontario Securities Commission [OSC], and faced a lawsuit from the Attorney General of New York State, accusing the trading platform of violating the Martin Act in three different ways.

KuCoin was launched into a criminal investigation by the U.S. in 2023 and has also been subject to multiple investigations in China. All these factors prompted the Seychelles-based crypto exchange to consider ceasing operations and selling the exchange last year.

KuCoin
KuCoin Bleeds $100M In 3 Hours Post-DOJ Indictment 5

As of the latest development, KuCoin’s CEO remained defiant, emphasizing that the challenges it faces are not unique but rather typical growth and regulatory issues encountered by emerging industries.

Bitcoin’s $300K Soar Promise Shadowed by Kiyosaki’s Ponzi Alarm

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In recent comments regarding Bitcoin, renowned investment guru Robert Kiyosaki, author of “Rich Dad, Poor Dad,” has ignited controversy. On the X platform, Kiyosaki openly implied Bitcoin might resemble a Ponzi scheme.

Kiyosaki admitted,

“It is possible Bitcoin is a scam and a Ponzi scheme.”

Despite his concerns, he drew parallels between BTC and fiat currencies like the US dollar and the euro, implying that they share similar risks. Kiyosaki even went as far as acknowledging the possibility of BTC’s price plummeting to zero, a fate he believes fiat currencies are equally susceptible to.

However, amidst his skepticism, Kiyosaki remains a staunch advocate for the leading cryptocurrency. He recently made headlines by forecasting a bullish trajectory for BTC, envisioning its price soaring to an impressive $300,000 by the end of 2024.

Bitcoin’s Value Proposition

Kiyosaki’s optimism is underpinned by Metcalfe’s Law, which he views as a pivotal model for understanding Bitcoin’s value. According to this law, the value of a network increases exponentially with the number of its users. Kiyosaki argues that BTC’s growing adoption will fuel its value proposition, contrasting it with other cryptocurrencies, particularly those spawned from the Ethereum platform, which he believes lack the robust network necessary for sustained growth.

In Kiyosaki’s analogy, owning Bitcoin is akin to being part of a thriving cellular network, while holding other cryptocurrencies is like being the sole user of a defunct network—a futile endeavor. He deems BTC as “the perfect asset at the right time” and expresses regret for not accumulating more of it during its earlier stages when prices were lower.

As of the latest data from CoinGecko, Bitcoin is trading at $70,467, reaffirming its position as the premier cryptocurrency by market capitalization. Kiyosaki’s polarizing views on BTC continue to stimulate discussions within the investment community, underscoring the ongoing debate surrounding the future trajectory of digital assets in the financial landscape. Whether Bitcoin proves to be a transformative innovation or a speculative bubble remains a subject of fervent speculation, with proponents and skeptics alike closely monitoring its trajectory.

Bitcoin’s Next Stop Is $100K? Traders Bet On Continuation Of Rally: QCP Report

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After weeks of whiplash volatility, the Bitcoin bulls are back in charge, breathing new life into the tantalizing prospect of the cryptocurrency vaulting past its new all-time highs to breach the fabled $100,000 level.

According to QCP, the latest upswing has been powered by a confluence of catalytic forces, chief among them the bombshell announcement that the venerable London Stock Exchange will begin trading Bitcoin and Ethereum exchange-traded notes in May. This is a watershed moment that promises to blow open the institutional investment floodgates, providing a regulated on-ramp for deep-pocketed players to gain crypto exposure.

On the ground, there are unmistakable signs of surging demand. At elite private banks, wealth advisors have been caught off-guard by a veritable tsunami of inquiries from clients desperate to load up on BTC, whether through spot ETFs or sophisticated products like accumulators and forwards. Fund managers, too, are making room for crypto in their portfolios, drawn to Bitcoin’s purported virtues as an effective diversifier.

In the trading arena, investors are actively exploring opportunities to capitalize on this bull run. The elevated Bitcoin spot-forward basis, with yields exceeding 20% across the front-end curve, presents an attractive entry point. Additionally, deploying accumulators could prove a strategic move, allowing investors to gain exposure to Bitcoin at a discount while benefiting from the influx of traditional finance interest.

Bitcoin Decouples From Traditional Correlations

To be sure, Bitcoin’s price gyrations have been dizzying, with volatility measures spiking markedly during the U.S. trading session. Yet, in a striking show of resilience, the digital token has managed to power through a steady rise in real yields over 2% – a dynamic that has historically acted as a headwind by amplifying the attractiveness of risk-free Treasuries, according to Kaiko research.

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This apparent decoupling from past correlations hints that the crypto’s phenomenal 50% year-to-date gains may be underpinned by stronger structural forces – namely, the deepening institutionalization of the asset class and the capital flows this immense shift unleashes.

As the market dynamics mature from speculative frenzies to rational investment theses, everyone is watching closely on whether bitcoin can keep up with its renewed rally. If bitcoin could break past previous highs, this might help bulls that have been battered and wish for six-digit valuations while simultaneously reviving a fear-of-missing-out storyline which has repeatedly been boosting crypto’s growth.

Related Reading | Ethereum Layer 2 Base Shatters Record

Avalanche and Chainlink Collaborate for Seamless Tokenized Asset Settlement

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The financial landscape is undergoing a transformation, driven by the potential of blockchain technology. A recent SWIFT report highlights this shift, with a staggering 97% of institutional investors believing tokenization holds the key to revolutionizing the asset management industry.

This week, a successful collaboration between Australia and New Zealand Banking Group (ANZ), Chainlink Labs, and Avalanche has taken a significant step towards this future. Their project focused on leveraging blockchain technology for the global movement and settlement of tokenized assets.

Traditionally, the settlement of securities relies on a process known as Delivery versus Payment (DvP). This ensures that payment and delivery occur simultaneously, minimizing risk. However, legacy DvP processes are often cumbersome. Blockchain technology, with its smart contract capabilities, offers an opportunity to streamline this process.

“Chainlink CCIP played a key role in abstracting away the blockchain complexity of moving tokenized assets across different chains and ensuring atomic cross-chain DvP,” said Lee Ross, Technology Domain Lead, ANZ.

In this project, ANZ utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to demonstrate seamless cross-chain DvP settlement. This involved simulating the purchase of tokenized assets on Ethereum, denominated in one stablecoin, with the transaction initiating and settling on Avalanche using another stablecoin.

ANZ Leverages Avalanche’s Evergreen Subnets

For this initiative, ANZ employed its own Avalanche Evergreen Subnet. These subnets offer several advantages, including compatibility with the Ethereum Virtual Machine (EVM), permission access control, and the ability to utilize customized gas tokens.

“Avalanche’s Evergreen Subnets have allowed ANZ to join the list of institutions exploring new use cases and business models while leveraging customizable networks like Avalanche,” said Anurag Soin, Product Lead Digital Added Services at ANZ.

The ANZ project serves as a testament to the burgeoning On-Chain Finance (OnFi) ecosystem on Avalanche, which bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi). This collaboration signifies a growing trend of established financial institutions exploring the possibilities of blockchain technology.

“This ANZ project illustrates how innovative traditional financial service providers are preparing for a new version of capital markets enhanced by blockchain,” said John Wu, President of Ava Labs.

This collaboration between ANZ, Chainlink, and Avalanche represents a significant leap forward in streamlining the settlement of tokenized assets. As the technology continues to develop, we can expect to see further innovation and adoption within the financial sector.

Related Reading | Bitcoin Correction Looms As Long-Term Holders Start Dumping Coins

Binance Labs Doubles Down on Restaking with StakeStone Investment

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Binance­ Labs, the venture arm of the­ renowned crypto exchange­, has invested in StakeStone­, a Singaporean firm establishing a cross-chain liquidity network. This strate­gic move underscores Binance­ Labs’ confidence in restaking’s pote­ntial for generating higher yie­lds for digital asset holders.

StakeStone­ aims to be an extensive­ platform, not just for restaking. According to Charles K, co-founder, it’s an “omnichain liquidity distribution ne­twork.” It can merge various sources that ge­nerate returns. The­se include popular choices like­ Ethereum staking. Howeve­r, it also explores new are­as with real-world assets, artificial intellige­nce, and even de­centralized physical infrastructure ne­twork assets.

Staking Ethere­um on StakeStone offers two advantage­s. Firstly, users receive­ rewards for their initial stake. Se­condly, and more significantly, they obtain STONE, a “yield-be­aring ETH” token. This token enable­s users to further enhance­ their gains by utilizing it for additional rewards within the Stake­Stone ecosystem, compounding the­ir earnings.

Building upon its Ethere­um-focused offerings, StakeStone­ actively investigates me­thods for Bitcoin holders to generate­ yield, such as “yield-bearing BTC (STONE BTC).” Howe­ver, Charles stresse­s that restaking represe­nts merely one face­t of StakeStone’s ambitious plans. The platform’s long-te­rm vision entails a comprehensive­ ecosystem facilitating yield ge­neration across a diverse array of asse­ts.

Binance Labs Backs Restaking Trend

Binance Labs inve­sting in StakeStone aligns with their proactive­ support for restaking initiatives, having rece­ntly backed Bitcoin protocol Babylon, Ethereum-focuse­d Renzo, and Puffer Finance. This commitme­nt transcends restaking, as Binance Labs re­cently funded seve­n additional startups, underscoring their dedication to driving blockchain innovation across dive­rse domains.

While Binance Labs remains deeply connected to the crypto exchange giant, it recently spun off as a separate entity. This move, similar to the structure of the Binance-backed BNB Chain project, aims to foster greater independence. Operationally, things remain largely unchanged, but the separation highlights Binance Labs’ commitment to becoming a prominent player in the global blockchain venture capital scene.

The future of restaking appears bright. Binance Labs’ continued investment in the sector, coupled with innovative projects like StakeStone, suggests that unlocking additional yield for crypto holders will be a major theme in the coming years. As the space matures, it will be interesting to see how StakeStone integrates its ambitious vision of incorporating real-world assets and novel technologies into its yield generation platform.

Related Reading | RippleX’s New AMM Pools Hit Snag, Community Reacts

Dogecoin (DOGE) is Poised For Bull Run: Analyst Says

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Dogecoin (DOGE) has attracted more interest and is on a firm uptrend that could result in significant gains. Over the past month alone, DOGE has seen an impressive surge of nearly 103%, while the last week only recorded a considerable rise of 15%.

At the time of this writing, Dogecoin is priced at $0.172696, has a 24-hour trade volume of $4.33 billion, and with a market capitalization of $24.80 billion. It is important to mention that within the last day, DOGE’s price increased by 1.56%. This suggests a growing interest in Dogecoin, as evidenced by its upward movement.

DOGE 1D graph coinmarketcap 10
Source: CoinMarketcap

Dogecoin Breaking Trends & Bullish Signals

Rekt Capital, a popular cryptocurrency analyst, has recently highlighted several significant developments within the DOGE market. To start with, there has been a notable breakthrough, as Dogecoin effectively broke above its long-term downtrend resistance line. This breakout signifies that there is a significant change in the prevailing market sentiment, probably a sign of an entry into a more bullish phase.

Furthermore, after the first breakout, DOGE retested this macro downtrend, which has also proven successful. A successful retracement would underpin confidence in the emerging bullish momentum, suggesting that it might not be just another flash in the pan.

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In addition, Rekt Capital outlines that there is a developing bull flag pattern on Dogecoin’s market. It is usually seen as a sign of potential continuation of the bullish trend currently dominating the market. Nonetheless, one must note that these patterns are not definite indicators and they need to be confirmed by subsequent price movements.

All these new developments lead to one important question arising: will Dogecoin manage to maintain the current rate of increase and break the bull flag? A successful breakout requires some certain conditions such as DOGE’s weekly close over the upper boundary of distinct orange bull flag as noted by Rekt Capital.

Nonetheless, Dogecoin has successfully confirmed its position by having a weekly candle close above the critical level mentioned by the analyst, thereby validating its bullish flag pattern. This implies that DOGE is currently set for a significant rise. The initial target for this surge stands at $0.20. If this resistance is breached, Dogecoin is expected to go further upwards and reach $0.27.

DOGEUSDT 2024 03 25 13 43 50
Source: Tradingview.com

Related Reading | Weekly Highlights: Bitcoin & Ethereum Rebound Strongly While Some Altcoins Surges