TronWeekly

Crypto World News

You are here: Home / Search for "USDC"

Search Results for: USDC

Singapore’s MAS Bet $150M To Accelerate Web3 Innovation

by

The Monetary Authority of Singapore [MAS], the nation’s financial watchdog, declared that it will invest up to $150 million over three years, with a ceiling of S$2 million per project, in creative FinTech solutions resulting from cutting-edge technology like Web 3.0.

The latest fund outlay is part of the updated Financial Sector Technology and Innovation Scheme [FSTI 3.0], through which MAS is stepping up its efforts to support a thriving technology ecosystem for the financial sector while also accelerating and strengthening innovation by supporting initiatives that make use of emerging technologies or have a regional focus, as per the press release.

FSTI 3.0 was first unveiled by Deputy Prime Minister and Minister for Finance and Chairman of MAS, Mr. Lawrence Wong, at the Singapore FinTech Festival in 2022.

In June this year, the nation’s de facto central bank released a whitepaper that outlined a standard protocol to lay out the requirements for the use of digital currency like CBDCs, tokenized bank deposits, and stablecoins on a distributed ledger. PBM, or purpose-bound money, was discussed in the whitepaper.

As reported by TronWeekly, PBM is a component of MAS’ Project Orchid, which enables senders to include conditions while sending digital currency between various systems, such as validity periods and the kinds of stores.

Another exciting development that recently emerged from the city-state is the Singapore Red Cross, the local subsidiary of the largest humanitarian network in the world, which recently accepted cryptocurrency as a newly accepted form of donation. The organization, which spearheads one of the biggest community services in the nation, will accept Bitcoin, Ethereum, Tether [USDT], USD coin [USDC], etc. for donations.

Singapore Red Cross Opens Door For Crypto Donations

This was made possible by its collaboration with Triple-A, the first cryptocurrency payment gateway granted authorization by the Monetary Authority of Singapore to allow for the possibility of anonymous cryptocurrency donations. The announcement dated August 7 stated that all donations would be converted into fiat money and paid out through bank transfer within one business day.

“By accepting digital currencies, we open our doors to a new segment of donors who are tech-savvy and wish to make a difference through their digital assets.” Benjamin William, secretary general and CEO of the Singapore Red Cross, said in a statement.

Coinbase Q2 Report: $97M Net Loss But Still Exceeded Investor Estimates

by

Coinbase released its second-quarter financial report, posting $663 million in net revenue and a net loss of $97 million on $708 million in revenue. This is deemed significant given recent regulatory actions. The top exchange attributed this to being selected by many leading asset managers to provide critical infrastructure underpinning their proposed Bitcoin spot ETF products.

Although net sales were 10% lower than in Q2 2022, Coinbase’s earnings still exceeded investor expectations, demonstrating its market dominance in the United States, where its closest rivals, like Binance, have come under regulatory scrutiny. The $97 million net loss is also significantly less than the corresponding quarter last year.

This was the first quarter where recurring revenue [e.g., USDC income, staking, subscription] exceeded transaction revenue [51% to 49%]. It is also the first time it has generated positive Adjusted EBITDA and increased its USD resources, a feat last seen in late 2021.

Moreover, its quarterly recurring operating expenses have dropped nearly 50% Y/Y [defined as technology and development, general and administrative, and sales and marketing]. The report also highlighted how the 30% Y/Y layoffs, which were a difficult decision, have paved the way for a more efficient environment where teams exhibit stronger execution and yield results.

Coinbase Eyes Crypto Use Cases Beyond Trading

In Q2, we made further progress toward this bold goal such as expanding access to derivatives
products to customers outside the US and taking tangible steps to move our Base product from pilot to general availability. As we look ahead, we are expanding our focus toward crypto use cases beyond trading.

Another significant statement made by the exchange was its intention to file a request for the Securities and Exchange Commission to dismiss the lawsuit on August 4, with the legal counsel for the cryptocurrency exchange stating that they anticipate winning the case.

Coinbase Chief Legal Officer Paul Grewal expressed confidence that the exchange will prevail in the legal action initiated by the regulator during the company’s August 3 second-quarter 2023 earnings call. “With respect to the litigation with the SEC, I want to be very clear. We do think we can win. We expect to win.”

Tether’s Tightrope: Stablecoin Holders Stay Put Amidst Market Turmoil

by

In the ever-growing landscape of cryptocurrencies, a curious trend has caught the attention of analysts and investors alike. Santiment, a prominent analytics firm, recently tweeted about the behavior of active dolphin and shark wallets containing Tether and USDCoin, the two most popular stablecoins in the market. The firm observed a notable lack of conversion attempts into other crypto assets among these stablecoin holders.

Santiment’s keen insight report, titled “Stablecoin Reactions to Market Shifts: a User Behavior Indicator,” dives deep into the activity of a specific subset of stablecoin holders – those maintaining balances ranging from $10,000 to $100,000. 

Often referred to as “dolphins” or “sharks,” these users have remained reluctant to shift their stablecoins into other assets over the past week. Such behavior, interpreted positively, suggests market stability, but further investigation is needed to draw concrete conclusions.

image 91

The burning question remains: will these “dolphin” and “shark” holders view the current fallen prices as an opportunity to “buy the dip,” or will they err on the side of caution and “abandon ship” in the face of growing market uncertainty? 

However, seasoned investors know that basing decisions on a single parameter can be risky, as market trends are multifaceted. Santiment emphasizes considering diverse indicators and parameters for a comprehensive investment strategy.

Tether’s Rising Market Cap Despite Lackluster Volume

Meanwhile, Kaiko, a research firm, released its report on the market performance. Surprisingly, Tether’s market cap continued to rise, reaching an all-time high of over $83 billion in early June. 

image 92

The increase in USDT issuance was largely attributed to rising demand for Tron, which offers lower fees than Ethereum. However, it is puzzling that over 60% of USDT’s supply is on Tron, with less than 40% on Ethereum, despite the latter’s dominance in on-chain crypto activity.

Interestingly, while Tether’s market cap increased significantly, stablecoin’s total market capitalization declined for the fifth consecutive quarter in Q2. BUSD and USDC were the primary drivers of this decline. 

Additionally, stablecoin trading activity on both CEXs and DEXs remained lackluster during the past few months, with only TUSD bucking the trend. Binance’s zero-fee trading promotions for several TUSD pairs caused a volume surge, but the collapse of technology partner Prime Trust later affected its market share.

Related Reading | Surging Altcoin Dominance Shakes Crypto Market Amidst Ripple Ruling Fallout

Surging Altcoin Dominance Shakes Crypto Market Amidst Ripple Ruling Fallout

by

In a week full of twists, the cryptocurrency market experienced a surge in altcoin dominance following the SEC’s response to the Ripple ruling. The regulatory uncertainty surrounding Ripple had an unintended effect on altcoins, with Bitcoin’s volume dominance plummeting 8% since the beginning of July. 

According to the latest report from Kaiko research, this shift has put altcoins at their highest level of market control in the last four months, with BTC’s dominance across the top 25 centralized exchanges dropping to 27%, the lowest since April.

image 85 9

Offshore exchanges felt the impact even more profoundly, as South Korean altcoin volume spiked, causing BTC dominance to fall by a significant 20% since the start of 2023. Meanwhile, on U.S. exchanges, altcoins showed resilience, indicating that regulatory actions have yet to dampen demand for alternative digital assets thoroughly.

Altcoin liquidity, measured by 1% market depth, also increased slightly since July’s beginning, indicating a growing interest in the altcoin space. Kaiko’s market depth data revealed that the top 10 altcoins by market cap saw an increase of approximately $20 million in liquidity. This liquidity boost coincided with the ongoing altcoin rally, suggesting that traders and investors are finding opportunities in the altcoin market.

image 85 10

The week also saw two new tokens gain attention. Aave’s GHO, a decentralized stablecoin pegged to the USD and overcollateralized, rapidly reached a $2.5 million market cap within two days of launch. However, it faced challenges with liquidity and traded at a discount to established stablecoins like USDT and USDC. 

Stablecoin market activity experienced mixed fortunes. Tether’s USDT market cap reached an all-time high, while the total market capitalization for stablecoins declined for the fifth consecutive quarter, primarily driven by drops in BUSD and USDC. 

image 85 11

Concentration Of Crypto Trading Activity Shifts To Binance

Additionally, the concentration of crypto trading activity shifted towards Binance, with the exchange losing dominance on both spot and derivative markets, sparking bearish bets on its BNB token amid rumors of mass layoffs.

The correlation between Bitcoin and the U.S. Dollar weakened significantly in 2023, falling from -60% to -10%. This shift in correlation coincided with a decline in the share of USD-denominated BTC trade volumes. On a positive note, Bitcoin showed resilience to rising real yields, gaining 20% since June despite a rebound in U.S. real yields.

image 85 12

Related Reading | Crypto Miners Rush to Comply With New Rules: Arkansas County

Chainlink (LINK) Attracts Whales Amid Price Surge and Reversal Risk

by

Chainlink (LINK), the decentralized oracle network, has recently captured the­ attention of large-scale investors, or whales, who have been scooping up the token in massive amounts, resulting in a re­markable surge in its price.

As a result, the price of LINK has surge­d by more than 15% within the past 24 hours, surpassing the critical re­sistance level of $8. Ne­vertheless, ce­rtain technical indicators raise concerns that a corre­ctive decline in LINK’s value­ may be imminent.

One of the most notable whale transactions occurred recently, with an anonymous buyer purchasing 411,142 LINK at an average­ price of $8.06, totaling 1,757 stETH and approximately $3.3 million in value. This particular whale bought 65,723 LINK using 500,000 USDC at $7.61 per token on July 20.

These­ significant purchases indicate an optimistic sentime­nt for LINK. Furthermore, the­ increased demand for LINK re­flects the growing adoption of Chainlink’s oracle se­rvices. These se­rvices provide reliable­ and secure data fee­ds for various smart contract platforms and applications.

Chainlink Price May Face Correction Despite Whale Accumulation

Despite­ the positive outlook for LINK, traders should be­ cautious of a possible price reve­rsal in the near term. Te­chnical indicators reveal that LINK’s Relative­ Strength Index (RSI), which gauges mome­ntum and overbought/oversold conditions, is indicating a double-top patte­rn. 

RephraseThis particular pattern is often see­n as bearish, suggesting a potential pullback afte­r reaching its peak. At the same time, whale­ accumulation can boost LINK’s price, and the prese­nce of a double-top pattern in RSI se­rves as a warning sign that downward pressure may be­ imminent. 

It’s important for investors to do their own rese­arch and consider market volatility, as whale move­ments may offer insights into potential future­ price movements.

According to CoinMarketCap, LINK is currently trading at $8.1089703, with a market cap of $4.36B USD. Over the last  24 hours, Chainlink has seen a notable­ increase of +15.36% with a 24-hour trading volume of  $1.55B USD. Additionally, its circulating supply is 538.10M.

Some analysts believe that Chainlink’s strong infrastructure and partne­rship with the NaturesGold token position it as a corne­rstone of the dece­ntralized finance ecosyste­m. They project a potential incre­ase to $8.36 for Chainlink by the end of 2023.

Related Reading | Shiba Inu’s Future Price: Millionaires Dream or Fantasy Scheme?

Bitcoin Ascends While Altcoins Struggles: CoinGecko’s Q2 2023 Analysis

by

The second quarter of 2023 has proven to be an eventful one for the crypto market, with Bitcoin emerging as a clear winner amidst a series of unfortunate events for altcoins. CoinGecko’s comprehensive 2023 Q2 Crypto Industry Report sheds light on the market landscape and highlights key developments within the crypto space.

While Q1 was marked by vitality, Q2 took a different turn as the crypto market focused on consolidating gains. The total market cap only saw a marginal 0.14% increase, reaching $1.240 trillion on June 30, 2023. 

April and May were notably quiet, lacking any dominant narrative. During this time, Bitcoin (BTC) and Ethereum (ETH) maintained stable positions, with BTC experiencing a 6.9% climb and ETH edging up by 6.0% in Q2.

image 63

Bitcoin’s Volatility Ends Q2 With A 6.9% Gain

BTC’s volatility shouldn’t be underestimated. It surged from $28,517 to $30,481, ending the quarter with a 6.9% gain. Bitcoin outperformed the overall crypto market, hitting a yearly high of $30,694 after BlackRock’s spot Bitcoin ETF filing on June 15.

The report also revealed that Stablecoins faced challenges in Q2, with the top 15 shrinking by 3.5%. USDC and BUSD saw significant drops, while Tether (USDT) gained 4.4%, securing a 66% market share.

image 64

ETH staking surged 30.3% in Q2, with 5.6 million ETH staked, reaching 23.6 million. Lido remained the leading provider, while Kraken and Coinbase lost dominance due to regulatory concerns.

Despite the growing popularity of Bitcoin Ordinals, NFT trading volume dropped by 35.0% in Q2. Ethereum continued to dominate NFT trading, but its temporary decrease in dominance in May allowed Bitcoin Ordinals to seize a notable portion of the market share. 

Solana experienced a significant decrease in trading volume, partially due to the migration of major collections to Ethereum and Polygon, as per the CoinGecko report.

Both CEX and DEX faced challenges in Q2. CEX spot trading volume declined by 43.2%, with Binance losing its market share from 61% to 52% due to mounting regulatory pressure. In contrast, DEX’s spot trading volume fell by 28.1%, with Uniswap maintaining its dominance, holding 70% of the market share in May.

image 65

Nevertheless, the CoinGecko report provides valuable insights into the crypto industry’s performance during Q2, shedding light on trends and changes within the market. 

Related Reading | Crypto Fraud: US Authorities Seize Millions from Deltec Bank In International Scam 

Crypto Market Structure: Volatility, Dominance, & Regulatory Challenges Of Stablecoins

by

In the ever-evolving landscape of cryptocurrencies, stablecoins have emerged as a significant force in the market. According to the latest report from Kaiko, stablecoins now account for a staggering 74% of all cryptocurrency trades on centralized exchanges (CEXs).

This dominance is fueled by the popularity of Tether (USDT), which holds a massive 70% market share. However, the stablecoin market is not without its challenges and risks.

In recent months, stablecoins have experienced notable volatility, raising concerns about their reliability. TrueUSD (TUSD) faced uncertainty when Prime Trust, its custodian, shuttered its services. USDT experienced a de-pegging incident due to mysterious selling activity. 

image 48 2

Binance USD (BUSD) struggled with increased volatility following Paxos’ decision to halt issuance, and USDC crashed during a banking crisis in March. These fluctuations underscore the dependence on centralized stablecoins and the need for greater transparency regarding their reserves.

Stablecoins Command 74% of Cryptocurrency Trades

Upcoming European re­gulations seek to address gove­rnance issues relate­d to stablecoins, but significant progress still lies ahe­ad. Currently, fiat currencies hold a re­latively minor position in global cryptocurrency markets, comprising only 23% of the­ market share. In contrast, stablecoins dominate­ the remaining 74%.

image 48

Upon examining the­ trade volume across centralize­d and decentralized e­xchanges, it becomes cle­ar that Tether stands unrivaled as the­ leader, commanding an impressive­ 70% market share on CEXs. 

Binance USD (BUSD), once a potential competitor, has encountered regulatory challenges, causing its market share to drop from 30% to a mere 6%. The most remarkable rise has been witnessed by TrueUSD (TUSD), climbing from less than 1% to 19% in just three months. Binance’s promotion of a zero-fee BTC-TUSD pair propelled its ascent.

On decentralized exchanges (DEXs), the landscape is different. DAI, the only decentralized top stablecoin, has seen its dominance eroded by USDC and USDT. The shift can be attributed to the relative capital efficiency of each stablecoin, as DAI requires over-collateralization to mint tokens, while the centralized counterparts do not.

image 48 3

Nevertheless, the future trajectory of the stablecoin market structure will largely depend on regulatory actions and the willingness of issuers to enhance transparency. Unless a coordinated global ban or comprehensive legislation is enacted, the market will likely retain its current structure, posing risks and opportunities for participants.

Related Reading | Ripple’s Legal Triumph: XRP Cleared of Security Status, Igniting Crypto Celebration & Price Surge

Terra: Seoul Authorities To Launch First-Ever Crypto Investigation Unit

by

South Korean authorities, who are presently looking into the $40 billion Terra-Luna scandal, plan to create a special investigation unit for crimes involving digital currencies, as per an announcement by the spokesperson of the Seoul Southern District Prosecutors’ Office on July 11. Sources revealed the team would study legal concerns like the securitization of virtual assets and concentrate on crypto crimes like fraud.

Specialized investigators will also be trained, the prosecutor’s office revealed. This is a noteworthy step because it marks the establishment of an investigating division for crypto-related offenses in a prosecutor’s office in South Korea for the first time. The Seoul Southern District Prosecutor’s Office has accused Terraform Labs chief executive officer Kwon Do-hyeong and his associates of defrauding investors, among other charges.

A few days earlier, Daniel Shin, a co-accused in the Terra fiasco, and seven other former employees of the failed cryptocurrency project commenced their first court trials in South Korea. According to a statement in an email, Shin made the decision not to show up as it was a preliminary hearing.

He and nine other Terraform Labs employees were charged with defrauding investors by promoting the Terra stablecoin as a means of payment while being aware that such activities were forbidden. While Shin’s partner and prime accused, Do Kwon, is currently incarcerated in Montenegro, serving a four-month sentence, the jailed founder appears to be moving $18 million worth of USDC stablecoins.

Terra Kingpin Transferred $18M To ‘Unfreezable’ Tokens

On-chain data revealed that the amount was transferred on July 10 from a cryptocurrency wallet linked to the indicted Terraform Labs chief executive officer, said South Korean university professor Cho Jae-woo.

The USDC was changed into cryptocurrencies, per Cho, the director of Hansung University’s blockchain data lab, which could make it difficult for law enforcement to recover Kwon’s assets because some of the tokens are deemed “unfreezable.”

The transfers, first reported by Whale Alert on Twitter, happened on the same day that 5,292 Bitcoin worth over US$160 million were transferred from a wallet connected to the Luna Foundation Guard, a division of Terraform Labs, according to South Korea’s Blockmedia.

Tether & USD Coin Hold The Key To Crypto’s Future: Santiment Report

by

In a world obsessed with Bitcoin’s every move, traders may be missing out on some crucial signals from stablecoins, specifically Tether (USDT) and USD Coin (USDC). According to a recent insights report from Santiment, these two stablecoins have historically provided valuable correlations that can hint at market-wide movements before they occur.

While Bitcoin continues its price dance between $29.7k and $31.1k, stablecoins quietly hold potential clues about the future direction of the crypto sector. Santiment highlights several key metrics that traders should keep a close eye on.

One such metric is the Mean Dollar Invested Age, which serves as a “validator” metric. When this line starts to decline, it suggests that an upswing in crypto markets is being validated by previously dormant coins entering the market, potentially driving prices even higher in the future.

image 34

Notably, the movement of older coins that have been sitting idly in wallets, particularly within top stablecoins, is a positive indicator. It indicates that these coins are being moved to buy other cryptocurrencies.

Absolute Holdings of Wallets: Tether’s Sharks & Whales

Another metric of interest is the absolute holdings of wallets holding $100k to $10m worth of stablecoins. This range is often scrutinized to assess the behavior of major stakeholders, or “sharks and whales.” When stablecoins are being exchanged for Bitcoin while its price rises, it indicates a bullish sentiment. 

image 35

Conversely, when stablecoins are increasing while BTC prices decline, it suggests large stakeholders are selling off their cryptocurrencies and returning to stablecoins, signaling a bearish sentiment.

Monitoring the supply of stablecoins on exchanges as a percentage of the total supply is another critical metric. Rapid movements of Tether (USDT) and USDC supplies to exchanges have historically foreshadowed upcoming crypto price movements, as witnessed with USDC in March prior to market-wide price surges.

Additionally, analyzing the supply held by the top exchange addresses provides valuable insights. Comparing the top 10 largest addresses for both Tether (USDT) and USDC with the overall supply on exchanges reveals that most of the largest addresses are currently situated on exchanges.

image 36

While stablecoins may not be the most thrilling aspect of the crypto world, anomalies in these metrics can be vital signals for traders seeking alpha opportunities. Staying attuned to these indicators could present lucrative chances to profit while others remain oblivious to these often-overlooked insights.

Related Reading | Polygon’s MATIC Sparks A Mini Bull Run With 30% Price Jump

Embracing Web3: Circle CEO Optimistic About Hong Kong’s Digital Asset Future

by

Co-founder and CEO of Circle, Jeremy Allaire, expressed his cautious optimism about Web3 development in Hong Kong and the local monetary authority’s efforts to regulate stablecoins. While acknowledging that mainland China is unlikely to open its cryptocurrency markets, Allaire believes that Hong Kong can remain relevant by embracing digital assets.

Hong Kong’s Regulatory Focus On Stablecoins: Circle Encouraged

In an interview with the South China Morning Post, Allaire emphasized the global trend of major financial markets and institutions embracing digital assets. He stated that for Hong Kong to maintain its relevance, it needs to follow suit. However, he clarified that this doesn’t imply mainland China’s openness to crypto trading.

Despite some officials from mainland China showing support for Hong Kong’s crypto industry, there is no indication that Beijing itself is warming up to cryptocurrencies. 

Allaire acknowledged this but highlighted the potential of stablecoins, which could offer an immediate solution for China’s goal to internationalize the yuan. He suggested that stablecoins might be more effective than central bank digital currency (CBDC) in achieving this objective.

Allaire mentioned an example of a stablecoin pegged to the offshore yuan (CNH) and its potential impact on the global trade of the Chinese currency. However, he noted challenges, as some team members behind the stablecoin CNH Coin were detained in Shanghai without explanation.

Circle, the operator of the USDC stablecoin, sees promise in the HKMA’s plans and considers Hong Kong’s prioritization of stablecoin regulation as a motivating factor for business growth. Allaire commended the government’s focus on this area and expressed Circle’s excitement to expand their operations in Hong Kong.

Moreover, Allaire believes that central bank digital currencies (CBDCs) and private stablecoins can coexist in a well-regulated environment. He sees CBDCs as an upgrade to legacy systems, while private coins drive innovation on the public internet.

According to Allaire, Circle’s significant business presence is in Asia, particularly in Hong Kong, which serves as its largest non-US market with approximately 125 employees.

Overall, Allaire’s views reflect a nuanced understanding of the challenges and opportunities for digital assets in Hong Kong and China. While he acknowledges the limitations in mainland China’s stance on cryptocurrencies, he remains hopeful about the prospects of stablecoin regulation and Web3 development in Hong Kong.

Related Reading | Polygon’s MATIC Sparks A Mini Bull Run With 30% Price Jump