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- Crypto Alpha - Week 48 2024
Crypto Alpha - Week 48 2024
All things Crypto, Web3 and Blockchain to keep you updated
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TL;DR
Cantor, Tether Partner for $2B Bitcoin Lending
Bitwise Files for 10 Crypto Index Fund ETF
Starknet Introduces Phase 1 Staking on Ethereum L2
Ethereum Reclaims USDT Dominance
21Shares Launches Solana-Based Token ETPs
Solana Co-founder Pushes for Multi-Signature Era
SwissBorg Adds $INJ Staking to Earn
Rivalz AI Collaborates to Advance World Abstraction
AVAX Price Targets $50 Amid Bullish Momentum
Suzaku Joins Avalanche's InfraBUIDL() Program
UK Targets 2026 for Crypto Regulation
MicroStrategy's Bitcoin Bank Strategy to Boost Market Cap
And much more!
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Bitcoin Highlights of the Week
Cantor Fitzgerald is collaborating with Tether on a $2 billion Bitcoin lending initiative, enabling clients to borrow dollars against Bitcoin collateral. This strategic move aims to boost liquidity as cryptocurrency adoption grows.
The announcement aligns with Cantor CEO Howard Lutnick's transition to U.S. Commerce Secretary under President-elect Donald Trump, with Lutnick set to divest his Cantor interests to meet ethics regulations. Cantor already manages most of Tether’s $132 billion reserves and holds a 5% stake in the stablecoin issuer. This partnership signals Wall Street’s increasing confidence in crypto-backed financial instruments.
Bitwise has filed for an ETF based on its 10 Crypto Index Fund, aiming to provide investors indirect exposure to top cryptocurrencies. The fund, launched in 2017, holds 75.14% Bitcoin and 16.42% Ether, alongside Solana, XRP, Avalanche, and others, with $1.4 billion in AUM.
Coinbase Custody manages the crypto assets, while BNY Mellon oversees cash holdings. The SEC has yet to decide on the application. Bitwise has also pursued ETFs featuring spot Bitcoin, Ether, and Solana, capitalizing on a potentially pro-crypto U.S. administration following the recent election, signaling expanding institutional crypto adoption.
Brazil’s Congressman Eros Biondini has introduced a bill to allocate up to 5% of the country’s international reserves to Bitcoin, creating the Strategic Bitcoin Reserve (RESBit). The initiative aims to diversify national assets, shield the economy from geopolitical risks, and boost leadership in the digital economy.
If passed, Brazil could purchase up to $3 billion in Bitcoin, supporting its digital currency, Drex, and advancing blockchain education. Inspired by nations like El Salvador and Bhutan, Brazil’s move could solidify its role in global financial innovation and encourage broader Latin American Bitcoin adoption, despite challenges like volatility and political resistance.
The Canton of Bern’s parliament has approved a motion to explore Bitcoin mining as a solution to utilize surplus energy and stabilize its electricity grid. Passed by an 85-46 vote, the initiative tasks the government with identifying unused energy sources, partnering with Swiss Bitcoin mining firms, and assessing its potential to balance energy supply.
Proponents highlight economic and renewable energy development opportunities, drawing inspiration from Texas, where Bitcoin miners collaborate with grid operators. Despite government resistance citing energy concerns, this move positions Bern as a potential hub for innovative Bitcoin strategies.
Marathon Digital (MARA) acquired 6,474 Bitcoin through a $1 billion convertible notes offering, as announced on Nov. 27. The purchase includes an initial acquisition of 5,771 BTC at an average price of $95,395 per coin, followed by an additional 703 BTC. MARA’s Bitcoin treasury now holds 34,797 BTC, valued at approximately $3.3 billion.
Taking cues from MicroStrategy, MARA plans to use $160 million from its remaining funds to buy more Bitcoin during price dips. This move underscores the growing trend of corporate debt-financed Bitcoin acquisitions, aimed at leveraging market opportunities.
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Ethereum Highlights of the Week
Starknet has launched its initial staking phase, enabling STRK token holders to enhance network security and functionality. Solo staking requires a 20,000 STRK minimum, while delegation allows broader participation. This phased rollout begins with validators running nodes and staking contracts, advancing to block validation over time.
StarkWare CEO Eli Ben-Sasson highlighted its decentralization potential, emphasizing gradual implementation for stability. The staking mechanism will eventually support governance and community control. Starknet recently demonstrated scalability by reaching 857 transactions per second during stress tests.
Flashbots has launched BuilderNet, a decentralized block-building network designed to address Ethereum's centralization and censorship concerns. Currently, Beaverbuild and Titan Builder produce 88% of Ethereum blocks, raising worries about systemic chokepoints and exclusive order flow deals.
BuilderNet distributes block-building tasks across multiple operators, ensuring decentralization and preventing rent extraction from users. By redistributing maximal extractable value (MEV) to users and compensating builders through a "refund rule," it disrupts the centralized block-building process.
From November 22-27, spot Ether ETFs saw $225 million in net inflows, significantly surpassing the $35 million recorded by Bitcoin ETFs. This surge coincided with a nearly 8% price rally for Ether, pushing its value above $3,590.
The rally followed a key legal victory for Ethereum’s decentralized finance (DeFi) platform, Tornado Cash, and news that Paul Atkins might replace Gary Gensler as SEC chair, signaling a potentially more crypto-friendly regulatory environment. Meanwhile, Bitcoin ETFs had a record month in November, with over $6.2 billion in inflows despite a slight dip in Bitcoin’s price.
Uniswap reached a record $38 billion in monthly volume across Ethereum Layer 2 networks in November, surpassing its previous high by $4 billion. The surge is attributed to increasing demand for assets and stablecoins within the DeFi ecosystem, signaling a possible Ethereum outperformance.
Arbitrum led with $19.5 billion, while Base followed at $13 billion. This uptick is seen as part of a broader DeFi renaissance, with rising on-chain yields and a growing ETH/BTC ratio. Uniswap’s native UNI token has risen by over 42%, reflecting the increased activity, outperforming other decentralized exchange tokens.
On November 21, Ethereum surpassed Tron as the top blockchain for Tether (USDT), marking its first reclaim of the position since August 2022. Ethereum's USDT supply increased by 9.3%, reaching $60.3 billion, while Tron’s dropped by 1.5%, totaling $58.1 billion.
This shift comes as USDT’s overall supply hits an all-time high of $132.9 billion, signaling potential bullish market conditions. Ethereum continues to be favored for tokenizing real-world assets, while Tron remains popular for its low fees and use in inflation-impacted regions. Ethereum also leads in USDC dominance, securing 67.5% of USDC’s market cap.
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Solana Highlights of the Week
21Shares has introduced two new exchange-traded products (ETPs) focused on Solana-based tokens, Render (RNDR) and Pyth Network (PYTH), on European exchanges. These ETPs provide regulated exposure to Solana’s ecosystem, highlighting growing institutional demand.
Simultaneously, the US SEC is engaging with firms, including 21Shares and VanEck, about proposed Solana ETFs, signaling potential regulatory progress. With Solana gaining prominence due to its increasing market share, robust network activity, and favorable political shifts toward crypto, institutional interest is surging.
Anatoly Yakovenko, Solana's co-founder, declared a pivot towards multi-signature solutions, marking a strategic shift for the blockchain. This announcement responds to Ethereum researcher Justin Drake's claim that Ethereum’s Layer 2 innovations may surpass Solana in speed and scalability, signaling the end of Solana's "golden age."
Yakovenko emphasized the role of multi-signatures in bolstering security and scalability, aligning with Solana's vision for technological enhancement. This shift highlights a competitive landscape where both Ethereum and Solana are redefining blockchain's future, with multi-signature adoption poised to become a critical factor in shaping the industry's next phase.
Pump.fun, Solana’s popular token creation app, is under fire for enabling livestreams showcasing extreme and inhumane behavior by streamers aiming to boost token values. Allegations include child abuse, violence, and racial abuse, sparking widespread calls for stricter moderation or the removal of livestream features altogether.
While co-founder Alon acknowledged the criticism, emphasizing ongoing moderation efforts, he defended the platform's commitment to decentralization and free expression. Despite the uproar, Pump.fun set a record on November 23, generating $13.8 million in revenue, highlighting its financial success amid ethical concerns. The incident raises questions about crypto's balance between innovation and responsibility.
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