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April promises to be a milestone for the cryptocurrency sector, bringing impactful events. We’ll see everything from the reduction in mining rewards for Bitcoin (COIN:BTCUSD) and Bitcoin Cash (COIN:BCHUSD), which affects coin supply and spurs speculative interest, to significant regulatory matters. The legal battle between the SEC and Coinbase, along with the pending judgment for Binance’s founder, Changpeng Zhao, might set new standards for crypto regulation. Moreover, the anticipated launch of the EigenLayer mainnet could revolutionize Ethereum’s security and efficiency. Economic indicators like the US CPI for March are also expected to illuminate economic trends influencing the crypto market. Therefore, this month is pivotal for understanding the sector’s evolution and its interplay with the broader economic and regulatory landscape.
Bitcoin (COIN:BTCUSD) has seen a decline of more than 6% in the last 24 hours, marking a total drop of about 7% in two days, affected by the strengthening dollar and the rise in US Treasury yields. Over the past 12 months, the digital asset has accumulated a gain of 130%. The leading cryptocurrency has moved away from its historical peak of March 14 by 11%, while Ether (COIN:ETHUSD) also followed the downward trend. This trend occurs at a time of strong economic data in the US and market readjustments regarding Fed policy.
Scheduled for this month, the next Bitcoin halving (COIN:BTCUSD) will decrease the block reward from 6.25 to 3.125 BTC, marking a critical moment for the sector. This adjustment in cryptocurrency issuance aims to strengthen its scarcity and potentially its value, but also poses challenges to mining operations, influencing profitability and network security. The industry anticipates this event with expectations of significant changes in mining dynamics and the Bitcoin ecosystem as a whole.
Arkon Energy, a prominent figure in Bitcoin mining, has announced the acquisition of 27,700 state-of-the-art mining machines from Bitmain, including the T21 and S21 models, with deliveries starting from June 2024. The company, which is expanding from hosting to self-mining, expects to significantly increase its operational efficiency, especially after the next halving, aiming to become one of the most efficient miners in the market.
In March, Bitcoin miners achieved historic revenue, exceeding $2 billion between block rewards and fees, surpassing the previous peak of $1.74 billion in May 2021. Approximately $85 million came from transaction fees, while the bulk, $1.93 billion, originated from block rewards. This success is attributed to intense activity on the network and the increase in bitcoin value.
In March, spot Bitcoin ETFs saw their trading volume jump to $111 million, nearly triple the $42.2 billion from February, marking a growing interest in these financial instruments. Following a month full of trading since its launch on January 11, this increase highlights the attraction to these new cryptocurrency-based products. ETFs issued by Grayscale (AMEX:GBTC), BlackRock (NASDAQ:IBIT), and Fidelity (AMEX:FBTC) dominate the scene, with Grayscale’s GBTC ETF observing a significant decline from 619,000 BTC to 333,619 BTC. The funds from BlackRock and Fidelity, in turn, reached approximately $18 billion and $10 billion in assets under management, respectively, solidifying the relevance and growth potential of Bitcoin ETFs.
Coinbase Global (NASDAQ:COIN) highlights in a report restaking as an emerging pillar in decentralized finance (DeFi) on Ethereum (COIN:ETHUSD), foreseeing its crucial role in the ecosystem’s infrastructure. Despite its promise, the report points to potential financial and security risks. The EigenLayer protocol, essential for restaking, is praised for its ability to generate Ether rewards for validators, but concerns revolve around the risks associated with liquid restaking tokens (LRTs) and restaking strategies. Coinbase cautions on the importance of risk-adjusted rewards, emphasizing that restaking drives innovation but requires caution.
MakerDAO (COIN:DAIUSD) is considering allocating 600 million DAI to support USDe through Morpho Labs, signaling confidence in Ethena’s synthetic dollar. The decision coincides with the launch of Ethena Labs’ ENA token. Analyses indicate demand for USDe pools within the MakerDAO ecosystem, highlighting the potential for yield and the attraction of ENA tokens. The strategy aims for benefits such as lower liquidity risk and reinforcement of Ethena’s insurance fund.
Marc Zeller, leader of Aavechan, proposes to the Aave DAO to remove DAI from its loan collaterals due to MakerDAO’s decision to invest 600 million DAI in USDe and sUSDe via Morpho Labs. This proposal aims to protect Aave (COIN:AAVEUSD) from potential risks associated with future decisions by MakerDAO and Ethena’s performance, especially considering the significant DAI allocation that could affect its stability and security as collateral.
Telegram has increased the adoption of its blockchain technology, TON, by initiating payments in toncoin (COIN:TONCOINUSD) for ads and crypto remunerations for content creators, expanding activity on The Open Network (TON Blockchain). With the new functionality, a record 156,000 TON wallets were activated, indicating significant progress for the advertising economy on the platform. This movement suggests initial success in Telegram’s cryptographic implementation, promising a circular and innovative ecosystem in digital advertising.
The TRON Foundation (COIN:TRXUSD) and its founder, Justin Sun, urged a NY court to dismiss an SEC lawsuit, arguing the SEC lacks jurisdiction over international defendants. They contend that the SEC cannot apply US securities laws to predominantly overseas activities. The case, initiated by the SEC in March 2023, involves allegations of fraud and market manipulation. The defendants argue that the claims are baseless and criticize the SEC’s attempt to globally regulate the digital asset market without clear congressional authorization.
The US government transferred about 30,175 BTC, valued at approximately $2 billion, to a wallet associated with Coinbase (NASDAQ:COIN), sparking discussion in the crypto sector. The operation, highlighted by detective ZachXBT, included a preliminary test, indicating caution. The action occurred during a Bitcoin dip, which later slightly recovered, raising questions about the government’s future plans for these assets.
In response to regulatory violations in the US, Binance formed its first board of directors, led by former ambassador Gabriel Abed, to reshape its governance. Including internal members and two externals, this step aims to enhance compliance and corporate structure after a $4.3 billion court settlement with US authorities, signaling a significant change in direction for the largest cryptocurrency exchange.
Crypto.com announced the start of its retail trading services in South Korea on April 29, taking over from the closing exchange OK-BIT. Entering the South Korean market, known for its strict regulation, marks a significant step for Crypto.com, which will offer cryptocurrency and NFT trading, excluding institutional clients. The company seeks local banking partnerships to expand its services, following anti-money laundering and market manipulation requirements.
Singapore is tightening rules for cryptocurrency companies and digital tokens, with the Monetary Authority of Singapore expanding the sector’s regulation starting April 4. The new guidelines include increased control over digital asset custody, remittances, and international transfers, aiming for greater security and transparency. Affected companies will have specific deadlines to comply with the new requirements, aiming for consumer protection and financial stability.
Avail, a blockchain designed to integrate Web3 and enhance data accessibility, has partnered with dWallet Network to enable programmable Bitcoin use in its ecosystem. Anurag Arjun, co-founder of Polygon (COIN:MATICUSD), established Avail as an independent entity, aiming to launch its mainnet by the end of 2024. This innovative collaboration allows for the programmable management of BTC on Avail’s rollups, offering a more secure and efficient method that preserves user ownership without the need for risky bridge solutions. This advancement aims to unify the Web3 experience, addressing fragmentation and promoting a multi-chain rather than cross-chain approach.
The stablecoin issuer Tether (COIN:USDTUSD) contributed $100,000 to the BTCPay Server Foundation, reaffirming its support for the Free Software and Open Source movement. This donation highlights Tether’s commitment to driving the development of innovative digital payment solutions. BTCPay Server, an open-source payment processing platform, is crucial for adoption and customization by global merchants, promoting the democratization of access to digital financial technologies.
FixedFloat, a decentralized exchange based on Ethereum, faced suspicious withdrawals totaling $2.8 million, detected by Cyvers. In response, Tether froze about $400,000 in USDT in ten addresses linked to the incident, as reported by Peckshield. The assets were moved through a DEX before being transferred, resulting in the pausing of FixedFloat’s hot wallet operations and the site being put into maintenance mode.
Asset manager GoldenTree divested its digital asset division, GoldenChain, to Republic, a strategic move aimed at strengthening Republic’s presence in the digital space. Joe Naggar, former partner at GoldenTree, will lead as CEO and CIO at the new Republic Digital wing. The deal seeks synergies between the companies’ expertise to foster innovations in digital assets, marking GoldenTree’s exit from this sector while maintaining investments in the new venture.
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