- WAGMI
- Posts
- Crypto Alpha - Week 45 2024
Crypto Alpha - Week 45 2024
All things Crypto, Web3 and Blockchain to keep you updated
In partnership with
TL;DR
Bitcoin Soars on Trump’s Pro-Crypto Presidency Win
Fed Cuts Rates, Bitcoin and Equities Surge
Michigan Pension Fund Invests $10M in Ethereum ETF
Ethereum Researchers Resign from EigenLayer Advisory Roles
Coinbase Launches Wrapped Bitcoin on Solana to Boost DeFi
Eclipse Launches as First Ethereum Layer 2 on Solana
Injective & ASI Launch AI-Powered DeFi Integration
Drop Launches On-Chain Validator Referrals
Off the Grid's Impact on Blockchain Gaming
Avalanche Repurchases $53M in AVAX Tokens
Pro-Crypto Candidates Dominating U.S. Elections
Binance Labs Invests in BIO Protocol to Revolutionize DeSci
And much more!
Premium Content of the Week
Sponsor of the Week
Discover Simple Solana Exposure with Osprey Solana Trust (Ticker: OSOL)
Osprey’s Solana Trust (OSOL) provides secure exposure to Solana right from your brokerage account—no custodial wallets or private keys required. Plus, the fund is currently open for private placements, offering a unique opportunity for accredited investors.
Bitcoin Highlights of the Week
Following Donald Trump's presidential victory, Bitcoin reached an all-time high of over $75,000, driven by investor optimism around Trump’s pro-Bitcoin stance. Known for supporting deregulation and potentially beneficial tax policies, Trump has pledged to make the U.S. a global cryptocurrency hub, sparking excitement across digital asset markets.
His administration views Bitcoin as a strategic asset, countering foreign influences like Russia’s growing mining activities. With analysts forecasting significant future growth—some even eyeing $200,000 by 2025—Trump's win has fueled expectations that his policies could usher in a transformative era for Bitcoin and broader crypto adoption worldwide.
Following Donald Trump’s pro-Bitcoin election win, BlackRock’s iShares Bitcoin Trust (IBIT) saw an unprecedented trading volume of over $4.1 billion, surpassing major stocks like Berkshire Hathaway and Netflix. Trump’s victory sparked optimism in Bitcoin markets, driving IBIT to a record day and prompting net inflows of $621.9 million across 12 spot Bitcoin ETFs.
With Trump's commitment to pro-crypto policies, including SEC reform and a national Bitcoin reserve, Bitcoin surged to $76,500, raising its market cap to $1.48 trillion. This momentum may continue as political support bolsters investor confidence, pushing Bitcoin ETFs toward further growth in 2024.
The U.S. Federal Reserve reduced interest rates by 25 basis points to a 4.50%-4.75% range, driving Bitcoin and major stock indices higher. Bitcoin's price increased, reaching over $76,000 following Trump’s presidential victory, while the S&P 500 and Nasdaq also rose. The Fed cited ongoing economic expansion and progress on inflation control, though inflation remains slightly elevated.
Future rate decisions will hinge on economic indicators, labor conditions, and global developments. deVere Group’s CEO expressed concerns that Trump could push for further rate cuts to stimulate growth ahead of 2026 midterms, potentially seeking greater influence over the Fed’s policies.
A UK pension fund has become the first in the country to add Bitcoin to its balance sheet, allocating 3% of its portfolio to the cryptocurrency. This move, recommended by pensions advisory firm Cartwright, reflects Bitcoin's impressive long-term growth, with a nearly 100,000% increase in price since 2013.
Cartwright's director, Sam Roberts, hopes this groundbreaking decision will inspire other UK institutional investors to follow suit, similar to the trend seen in global markets. As institutional adoption of Bitcoin grows, Cartwright compares this shift to the adoption of equities by pension funds in the 1970s.
Joltz and Eulen have announced the launch of DePix, Brazil’s first stablecoin on the Bitcoin network using the Taproot Assets protocol. This innovative stablecoin integrates with Brazil’s popular PIX payment system, enabling secure, instant transactions.
DePix empowers users with greater financial autonomy, offering an alternative to traditional banking while prioritizing privacy and decentralization. Joltz's infrastructure enables seamless integration with the Lightning Network, ensuring low-cost, fast transactions.
Daily Alphas of the Week
Ethereum Highlights of the Week
The State of Michigan Retirement System disclosed a $10 million investment in Grayscale's Ethereum ETF, marking it as the first pension fund to buy into this ETH-based financial instrument since its debut in July. Michigan’s holdings make it a top-five stakeholder in Grayscale’s Ethereum Trust and show a greater Ethereum allocation compared to its $7 million Bitcoin ETF holdings.
This move signals a growing trend among U.S. pension funds and states investing in crypto. Notably, other states like Wisconsin and Florida have also made substantial crypto investments, underscoring increased institutional interest in digital assets.
Following Donald Trump’s election win, Ether (ETH) is positioned for a breakout, with analysts targeting a rise to $3,200. Positive inflows into Ether ETFs reached $132 million in two days, highlighting renewed investor interest, especially as Bitcoin’s dominance nears 60%, potentially paving the way for Ether’s growth.
Bitfinex analysts report a spike in open interest, further supporting expectations for an imminent price surge. A pro-crypto stance from the new administration may also expedite the approval of a staked Ether ETF, enhancing ETH's appeal. The combination of these factors could propel Ether beyond its long-term accumulation range.
Prominent Ethereum researchers Justin Drake and Dankrad Feist resigned from their advisory roles at EigenLayer, addressing concerns over potential conflicts of interest. The controversy began in spring when the researchers' involvement with EigenLayer, an ETH restaking protocol, raised questions about ethical boundaries, as they were offered EIGEN token allocations in exchange for their roles.
Both Drake and Feist apologized to the community, with Drake committing to avoid future advisory or investment positions. Their decision reflects Ethereum’s emphasis on transparency and integrity, prioritizing the community's trust over personal gain.
Sponsor of the Week
VaultCraft launches V2, TVL skyrockets above $100M
VaultCraft launches V2, partners with Safe, and secures $100M+ in Bitcoin
Matrixport, Asia’s leading crypto providers, commits $100M+ in Bitcoin
OKX Web3 to launch Safe Smart Vaults with $250K+ in rewards
The U.S. SEC is evaluating a proposal to list options tied to Ether-based ETFs on the NYSE American, potentially signaling a shift in its crypto stance following Donald Trump’s election win. The options under review include Bitwise’s Ethereum ETF, Grayscale’s Ethereum Trusts, and any trusts holding Ether.
This follows approvals in recent months for Bitcoin ETF options on NYSE, Nasdaq, and Cboe. If approved, additional oversight from the CFTC and OCC is required before trading can commence. The SEC also postponed its decision on Cboe’s Ethereum ETF options until December, and it's reviewing broader ETF proposals, including altcoin baskets.
The Ethereum Foundation has launched the Mekong testnet, a temporary environment allowing developers to test new user experience (UX) and staking updates before Ethereum's upcoming Pectra fork. Announced on Nov. 7, Mekong offers a "playground" for wallet developers to explore UX changes and for stakers to test new workflows, including enhancements to staking deposits and exits.
This testnet includes all Ethereum Improvement Proposals (EIPs) planned for Pectra. While Mekong won’t affect the mainnet or other testnets, it provides valuable insights to refine Pectra’s deployment across Ethereum's broader ecosystem.
Solana Highlights of the Week
Coinbase has introduced its wrapped Bitcoin token, cbBTC, on Solana’s blockchain to expand the use of Bitcoin within the DeFi market. Issued as a Solana Program Library (SPL) token, cbBTC enables users to access Bitcoin-backed assets across several Solana-based DeFi platforms, including Jupiter, Raydium, and Drift.
Coinbase’s initiative aims to fill the void left by soBTC, a former wrapped Bitcoin token that depegged during FTX's collapse. With $10 million in cbBTC already deployed, this new asset is positioned to compete with BitGo’s Wrapped Bitcoin (WBTC) and has contributed to Solana DeFi’s impressive $8.25 billion total value locked growth in 2024.
Eclipse, a groundbreaking Layer 2 solution bridging Ethereum and Solana, launched its mainnet on Nov. 7 after raising over $65 million. Designed to combine Ethereum's liquidity with Solana's speed, Eclipse leverages the Solana Virtual Machine (SVM) to process transactions quickly and affordably, then settles them on Ethereum’s mainnet.
The network launched with 60 decentralized applications, including DeFi and gaming. Eclipse’s funding included major investors like Placeholder and Hack VC, alongside strategic supporters such as Solana co-founder Anatoly Yakovenko. New CEO Vijay Chetty emphasizes Eclipse’s mission to unite both blockchain ecosystems for unprecedented DApp growth.
Sponsor of the Week
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.
Solana’s validators, responsible for verifying its blockchain, are experiencing a revenue upswing as daily earnings surpassed $30 million since mid-October, bolstered by SOL’s recent price surge above $200. Validators previously faced challenges from declining fees and tips, prompting the Solana Foundation to limit commission rates.
In response, Solana Labs' Anza team released software update v2.0.14, which improves validator performance, reportedly enhancing transaction speed and maximal extractable value (MEV) rewards. Although the network's node count dropped to 1,358 over the past year, recent metrics have spurred renewed interest, with 58 nodes added since late September.
Subscribe to WAGMI Premium to read the rest.
Become a paying subscriber of WAGMI Premium to get access to this post and other subscriber-only content.
Already a paying subscriber? Sign In.
A subscription gets you:
- • No Ads
- • Weekly News Summary
- • Weekly Market Summary
- • Weekly Airdrop Summary