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- Crypto Alpha - Week 42 2024
Crypto Alpha - Week 42 2024
All things Crypto, Web3 and Blockchain to keep you updated
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TL;DR
Kraken Launches kBTC Wrapped Bitcoin
Tesla Moves 11,509 BTC, Sparking Speculations
Robinhood to Launch Bitcoin and Ether Futures Trading
Vitalik's Vision for Ethereum's Surge: 100K TPS
Solv Launches Bitcoin Staking Token on Solana
Cardi B Launches $WAP on Solana
ZetaChain Integrates with Base and Welcomes Coinbase
Elys Network and Agoric Strategic Partnership
Grayscale Seeks ETF Conversion for Mixed Crypto Fund
Avalanche Plans Token Repurchase From Luna
Kamala Harris Proposes Crypto Support for Black Men
Polymarket Surpasses $2 Billion in Election Bets
And much more!
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THORChain is a liquidity protocol that facilitates native asset settlement between Bitcoin, Ethereum, BNB Chain, Avalanche, Cosmos Hub, Dogecoin, Bitcoin Cash & Litecoin.
THORChain is secured by its token, RUNE, which deterministically accrues value as more assets are deposited into the network.
Anyone can use THORChain to swap native assets between any supported chains or deposit their assets to earn yield from swaps.
Bitcoin Highlights of the Week
Kraken has introduced a new wrapped bitcoin product called kBTC, now available on Ethereum and OP Mainnet. The ERC-20 token is fully backed by BTC held at Kraken Financial on a 1:1 basis. Initially, 100 BTC have been deposited, with 80 kBTC on Ethereum and 20 kBTC on OP Mainnet.
Early partners supporting the launch include deBridge, Definitive, Gauntlet, ParaSwap, and Yearn. Kraken plans to expand compatibility to non-EVM networks. While Kraken’s transparency and strong reputation could challenge WBTC’s market share, dethroning WBTC may still prove challenging.
On October 15, 2024, Tesla moved its entire bitcoin holdings—11,509 BTC worth approximately $765 million—into unknown wallets, after two years of inactivity. This unexpected transfer has ignited speculation about Tesla’s next steps regarding its bitcoin strategy.
In 2021, Tesla made headlines with a $1.5 billion bitcoin purchase and briefly considered accepting bitcoin for vehicle payments. While some believe the move could signal an imminent sale, others argue that Tesla might be repositioning for security purposes. Tesla’s upcoming Q3 financial results on October 23 may offer more clarity.
The FBI has arrested Eric Council Jr., a 25-year-old from Alabama, for allegedly hacking the U.S. Securities and Exchange Commission’s X account in January. The hack led to a false tweet claiming the approval of bitcoin spot ETFs, causing a temporary surge in bitcoin’s price.
Council reportedly used a "SIM swap" to gain access to the account and was paid in bitcoin by unknown accomplices. This incident occurred just one day before the actual ETF approval, which has since attracted billions in investments. The case highlights the vulnerability of social media accounts in financial market manipulation.
Italy is set to increase the capital gains tax on bitcoin and other cryptocurrencies from 26% to 42%, according to Vice Economy Minister Maurizio Leo. This increase will apply to gains above €2,000, a change from the current 26% rate implemented in 2023. The hike is intended to generate additional revenue to support families, youth, and businesses.
Additionally, Italy plans to crack down on tax evasion by limiting cash transactions. This move aligns with global trends but may discourage crypto investment and drive capital to more tax-friendly countries.
Since 2020, MicroStrategy's stock has surged by 1,540%, far outpacing the S&P 500's 111% growth over the same period. This remarkable performance highlights the company's strategic focus on Bitcoin, positioning it as one of the first publicly traded firms to hold Bitcoin on its balance sheet.
Despite its substantial gains, analysts caution that MicroStrategy may not qualify for an S&P 500 listing due to its profitability challenges. However, the stock’s momentum remains strong, driven by increased retail interest in leveraged Bitcoin ETFs.
Daily Alphas of the Week
Ethereum Highlights of the Week
Kraken has introduced an ETH restaking feature through its integration with EigenLayer, enabling users outside the U.S. to restake their staked ETH directly from Kraken’s platform. This service makes restaking, previously more accessible only to on-chain users, available to a broader audience.
Clients can earn additional rewards by participating in Actively Validated Services (AVS) on Ethereum. Kraken’s subsidiary, Staked, will act as the validator for restaked ETH. This integration simplifies the process for less technical users, potentially boosting EigenLayer’s adoption among everyday investors seeking increased staking rewards.
An Arbitrum DAO member has proposed recalling $120 million worth of tokens from the Gaming Catalyst Program (GCP) due to missed deadlines. The GCP was designed to drive growth in Arbitrum's gaming ecosystem but has faced criticism for its slow progress.
The proposal highlights a failure to meet initial goals, including issuing grants and setting up communication channels. Despite this, Offchain Labs, Arbitrum's developer, has defended the delays, citing the complexity of setting up the program and ongoing biweekly status calls.
Base has surpassed Arbitrum to become the leading Ethereum Layer 2 (L2) by total value locked (TVL), now holding $2.49 billion. This places Base just behind Ethereum, Tron, Solana, and BNB Chain in overall blockchain rankings. Much of Base’s growth is driven by MetaDEX Aerodrome, which accounts for over $1.35 billion of its TVL.
Additionally, Base leads in user activity with 1.35 million daily active addresses, making it the most active L2. Backed by Coinbase’s marketing power, Base is poised to continue its dominance in the L2 space.
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Robinhood has confirmed plans to support bitcoin and ether futures trading as part of its broader rollout of advanced trading tools, announced during the HOOD Summit. This follows earlier reports of the company's intention to offer these futures, which include Bitcoin Futures, Micro Bitcoin Futures, Bitcoin Friday Futures, Ether Futures, and Micro Ether Futures via the CME.
The rollout will occur in the coming months. Additionally, Robinhood is launching the “Legend” desktop trading application for active traders. Following this announcement, Robinhood's stock rose by 2.8% in pre-market trading, reflecting its 111% gain year-to-date.
Vitalik Buterin has unveiled ambitious goals for Ethereum's next phase, known as "The Surge," targeting over 100,000 transactions per second (TPS) across Ethereum's mainnet and layer-2 solutions. Emphasizing the need for interoperability, Buterin stated that Ethereum should function as a unified ecosystem rather than a collection of disparate blockchains.
While acknowledging the challenges posed by Ethereum's rollup-centric roadmap, he highlighted the importance of developing trustless rollups and improving the user experience across layer-2 networks. Buterin also discussed scaling solutions for the base chain and suggested enhancing gas pricing strategies to maintain decentralization as demand increases.
Solana Highlights of the Week
Solv Protocol has introduced a Bitcoin staking token, SolvBTC.JUP, on the Solana blockchain to attract BTC holders amid a growing landscape of yield opportunities. This initiative aims to enhance Bitcoin's role in decentralized finance (DeFi) as competition for BTC liquidity intensifies across emerging layer-2 (L2) and DeFi ecosystems.
The liquid staking derivative is designed to generate a yield of approximately 12% annual percentage return (APR) from transaction fees on the popular Jupiter Exchange. By employing a delta neutral strategy, Solv aims to mitigate risks associated with price volatility while capitalizing on the burgeoning DeFi landscape.
Blockchain analytics firm Nansen has integrated Solana analytics, offering users advanced tools to monitor wallet movements, token balances, and activity within Solana’s DeFi and NFT ecosystems.
Co-founder Alex Svanevik highlighted the complexities of integrating Solana’s unique data structure, which differs significantly from Ethereum’s, requiring extensive development to provide comprehensive onchain insights. This launch coincides with the rising popularity of memecoins, enabling traders to analyze onchain behaviors rather than relying on speculative sentiment.
Orderly Network has successfully deployed its omnichain orderbook on the Solana blockchain, enabling both EVM and non-EVM users to trade perpetual contracts from a unified platform. This integration allows Solana-based traders to deposit assets without transferring them off their parent network while trading against counterparties across all supported chains.
Currently operational on testnet, the mainnet launch is scheduled for November. With this initiative, Orderly aims to enhance liquidity and trading efficiency, supporting a diverse ecosystem of more than 50 markets.
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