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Crypto: Bitcoin Cash Surges Post-Halving, PayPal Launches PYUSD International Transfers and More Updates

Fernanda T
Latest News
April 04 2024 3:15PM

Bitcoin Cash jumps post-halving

Bitcoin Cash (COIN:BCHUSD) experienced a surge in value following its recent halving, standing out in a generally static crypto market. BCH reached a peak price of $683.87, a level not seen since 2021, yet still 80% below its December 2017 record high. At the time of writing, Bitcoin Cash’s price was at $645.45, up 8.9% in the last 24 hours. Historically, halvings, which halve the mining reward, have preceded bull markets, as seen with Bitcoin (COIN:BTCUSD) in 2020.

Pendle reaches $4 billion in crypto with yield trading popularity

Pendle (COIN:PENDLEUSD) records $4 billion in held crypto assets, driven by its innovative approach to yield trading, which allows the separate division and trading of yield assets and their underlying value. The platform’s popularity is evident with a trading volume that hit the $10 billion mark, notably on a day that saw over $400 million in trades. The growth is partly attributed to interest in Ether’s liquid staking tokens and developments around the Ethena synthetic dollar protocol. Pendle also innovates with leveraged trading of loyalty points, adding a new dimension to cryptocurrency investment strategies.

Wormhole’s W token yields explosive returns on Kamino

According to CoinDesk, the new W token from the Wormhole app is providing weekly gains of up to 999% for traders on the Kamino platform, a DeFi environment on Solana, as long as the $7.5 million fund cap is not exceeded. Profits come from pairing W with JitoSOL (JTO) in a liquidity pool, yielding over 3,300 W and 666 JTO daily, which amounts to about $7,000, plus trading fees. This pool, which already amassed nearly $5 million, captured $17,000 in fees from $6 million in volume in a single day. JitoSOL represents staked Solana tokens, while W serves as Wormhole’s governance token, introduced with a market cap of $3 billion.

Cryptocurrency portfolio gains signal recovery in 2024

According to CoinLedger, the average crypto portfolio grew by $2,804 in 2024, indicating a recovery after a 2023 with moderate gains of $887.60 and a tumultuous 2022 with losses of over $7,000. This resurgence is attributed to the rise in key currencies like Bitcoin and Ethereum. The study, based on data from over 500,000 investors, identifies Bitcoin and Ether as the primary drivers of this year’s unrealized gains.

PayPal innovates with international transfers via stablecoin

PayPal (NASDAQ:PYPL), the payments giant, is expanding the functionalities of its stablecoin PYUSD (COIN:PYUSDUSD), now allowing American users to make international money transfers without fees through Xoom, covering about 160 countries. This initiative reflects the company’s commitment to cryptocurrency adoption and the search for more efficient global money transfer methods, in line with the growing stablecoin market trends, where competitors like Ripple are also innovating.

DWS and Galaxy Digital launch Bitcoin ETCs in Germany

DWS, a fund manager with assets over $900 billion, in partnership with Galaxy Digital, introduced new Bitcoin ETCs, allowing German investors to easily invest in Bitcoin through exchange-traded instruments. Listed on the Deutsche Börse, the ETCs provide direct exposure to Bitcoin, with security and clarity, and are physically backed, ensuring the authenticity of the investment.

Frax Finance broadens horizons with Cosmos

Frax Finance (COIN:FRAXUSD), responsible for the seventh-largest stablecoin, has partnered with Noble to bring FRAX and its staked variant, sFRAX, to the vast Cosmos ecosystem of about 80 blockchains. This expansion aims to boost the use of FRAX and sFRAX across various applications within Cosmos, offering a decentralized alternative to USDC.

Google sues developers for crypto scams in the Play Store

Google (NASDAQ:GOOGL) has legally targeted Yunfeng Sun and Hongnam Cheung, app developers, accusing them of spreading 87 deceptive apps in the Play Store, harming about 100,000 individuals, including 8,700 in the US. The apps promised cryptocurrency investments but extorted fees from victims under the guise of unlocking funds and profits, often with no return. Using interfaces that mimicked legitimate platforms, the scams also involved the “pig butchering” tactic, establishing false connections to coax investments into a fictitious app, TionRT. Google argues that these acts violated anti-corruption and electronic fraud laws.

Reducing Lido’s concentration on the Ethereum Network could ease regulatory concerns

The decline in Lido’s (COIN:LDOUSD) share in Ether (COIN:ETHUSD) staking might reduce tension over centralization in Ethereum, potentially averting ETH’s classification as a security, according to JPMorgan’s (NYSE:JPM) analysis. The increasing decentralization, evidenced by Lido’s share reduction from one-third to one-quarter, along with the Dencun upgrade enhancing Ethereum’s competitiveness, reinforces the view of a less centralized network more in line with regulatory criteria to avoid security classification.

Coinbase stands out with robust growth amid blockchain expansion

Oppenheimer (NYSE:OPY) raised earnings projections for Coinbase Global (NASDAQ:COIN), highlighting its potential beneficiary in the growing blockchain adoption. Coinbase’s trading volume in the first quarter of 2024 is expected to see significant growth, driven by the approval of Bitcoin ETFs and increased liquidity, especially with the growth of USDC, a stablecoin backed by Coinbase. “We estimate COIN’s Q1 2024 trading volume would increase 95% quarter-over-quarter and 107% year-over-year to $300 billion,” wrote analysts Owen Lau and Guru Sidaarth. Despite a recent surge of over 100% in the shares, compared to 6% for the S&P 500, the brokerage maintains a long-term optimistic view, albeit cautious about short-term volatility and ongoing legal challenges.

Binance ends support for Bitcoin-based NFTs in service review

Binance has decided to discontinue support for Bitcoin-based NFTs as part of its strategy to refine its range of services offered. Holders of these NFTs need to withdraw them from the platform by May 18 and will no longer be eligible for future airdrops on the Bitcoin blockchain. This change follows a decline in demand for these NFTs, evidenced by a reduction in the number of buyers and trading volume. In a separate development, an Abuja, Nigeria, court postponed tax evasion case hearings against Binance and two of its executives due to the failure in judicial notification delivery. The sessions were rescheduled for April, keeping one executive in custody while the other fled. Binance disputes the charges, arguing that the detained executive has no operational authority in Nigeria.

Galaxy Digital launches a $100 million fund for crypto startups

Galaxy Digital, known for investing its own funds in cryptography, is now expanding its activities to include third-party capital, preparing a $100 million fund focused on emerging crypto startups. This fund, part of the company’s asset management division, plans to support up to 30 new companies over the next three years, especially targeting the development of financial applications and software infrastructures based on cryptography.

SEC seeks opinions on Grayscale, Fidelity, and Bitwise’s spot Ethereum ETFs

The SEC is requesting public feedback on Grayscale, Fidelity, and Bitwise’s applications to launch spot Ethereum ETFs, focusing on the regulatory changes needed to allow these funds to be listed on the Cboe BZX and NYSE Arca exchanges. The 21-day open consultation following the federal register publication is part of the standard ETF evaluation process, similar to what occurred with Bitcoin spot ETFs. Key discussion points include the correlation between ETH’s spot and futures markets and the adequacy of the spot market in relation to futures, essential issues given the SEC’s precedent in approving ETH futures ETFs.

Ethereum’s Layer 2 market could be worth $1 trillion by 2030

VanEck predicts that the valuation of Ethereum’s Layer 2 market will reach at least $1 trillion by 2030, considering growth driven by a mix of transactions and maximum value extraction. Applying a 25 multiple to the projected free cash flow, based on a 60% market share for smart contracts in the Ethereum ecosystem, VanEck estimates a net revenue of $41 billion for Layer 2. This optimistic scenario is supported by the continued success of Bitcoin and Ether and the growing scalability solution offered by Layer 2 technology, which is beginning to eclipse activity on Ethereum’s main network.

Positive inflows for Bitcoin ETFs after initial volatility in the week

On Wednesday, US Bitcoin ETFs recorded a net positive balance this week, rebounding from initial Monday outflows with significant inflows in the following days, totaling $113.5 million for the day. This movement reversed the trend of $87.5 million outflows observed at the start of the week. The Fidelity ETF (AMEX:FBTC) led the additions, followed by BlackRock (NASDAQ:IBIT) and Bitwise (AMEX:BITB). Despite the recovery, the Grayscale fund (AMEX:GBTC) continues to face outflows, reflecting market caution and adjustments in cryptocurrency investment strategies.