Crypto Weekly Report -Bitcoin Spot ETF Net Inflows In 5 Days
1. SOLANA SETS NEW RECORD THANKS TO WEN AIRDROP
According to data compiled by The Block, the number of new wallets created on Solana in January 2024 has surpassed 10 million addresses. This number shows no signs of slowing down and has already broken the network record set in May 2022.
The "surge" comes from the success of a series of meme coins on the Solana ecosystem in recent times. From the Bonk airdrop for Solana Saga phone owners to the recent emergence of the memecoin Wen (WEN).
On the morning of January 26, the DEX Jupiter exchange announced an airdrop of 70% of WEN tokens to over 1 million users. The airdrop targets include those who have traded on the DEX Jupiter, owners of Solana Saga phones, or some other NFT projects on the ecosystem.
New Wallets on Solana | Source: The Block
2. BINANCE LABS INVESTS IN LIQUID RESTAKING PROTOCOL PUFFER
Binance Labs, the venture capital arm of Binance, has announced an investment in Puffer, a liquid restaking protocol built on EigenLayer. The investment amount was not disclosed.
Puffer is a decentralized liquid restaking protocol that allows users to stake their ETH and earn rewards without locking up their assets. Puffer is built on EigenLayer, a Layer-2 solution that provides scalability and security for Ethereum.
The investment from Binance Labs will be used to develop Puffer's Layer-2 network and launch a liquid restaking token for BNB Chain users. The Layer-2 network will allow Puffer to scale its operations and provide faster and cheaper transactions for users. The liquid restaking token will allow BNB Chain users to earn rewards from staking their ETH without locking up their assets.
The project is still in the testnet phase, and has the task of working with the scoring system to reward users for restaking on the platform. Binance Labs said that Puffer's mainnet is expected to go live soon.
3. RIPPLE (XRP) CO-FOUNDER CHRIS LARSEN WAS HACKED FOR $112,5 MILLION
Chris Larsen, co-founder of X, announced that hackers accessed and stole funds from "a few" of his personal accounts. The stolen amount is estimated to be around $112.5 million.
Larsen emphasized that the hack was limited to his personal accounts and did not involve any X company assets or systems. He assured users that X itself remains secure.
He further stated that he has contacted the authorities and is pursuing legal action against the hackers. Following the news of the hack, the price of X dropped by approximately 4.3%, reaching $0.5.
4. FED HOLDS RATES STEADY FOR FOURTH CONSECUTIVE TIME, BITCOIN TAKES A HIT
On January 31, 2024, the Federal Open Market Committee (FOMC), the Fed's policymaking body, voted to keep interest rates unchanged for the fourth consecutive time, at a range of 5.25% to 5.5%, the highest in nearly 23 years.
History of Fed interest rate adjustments since March 2022 to present. Source: CNBC
This is a further indication that the Fed is ending its rate hike cycle, but the committee is not yet ready to cut rates, as inflation remains above its 2% target. The FOMC stated: "The Committee does not expect to begin reducing the target range until it is confident that inflation is on track to return to 2 percent sustainably."
The Fed's statement also suggests that it is not ruling out the possibility of raising rates again. In a press conference after the meeting, Fed Chair Jerome Powell noted that a rate cut in March is "unlikely," as more economic data is needed to determine the trend going forward.
Following the news, Bitcoin took a dive, losing over $1,800 in value, from $43,700 to $41,884. Altcoins also followed suit, with losses ranging from 5% to 10%. Overall, the world's largest cryptocurrency is still expected to rebound, in anticipation of the upcoming Bitcoin spot ETF and Halving.
5. BINANCE FREEZES $4.2 MILLION IN XRP FROM RIPPLE CO-FOUNDER HACK
Richard Teng, CEO of Binance, announced on X that the exchange has frozen $4.2 million worth of XRP tokens stolen from the hack that occurred earlier this week. The hack targeted the personal wallets of Ripple co-founder Chris Larsen, resulting in the theft of approximately 112 million XRP tokens.
Binance was able to identify and freeze the stolen XRP tokens through its collaboration with law enforcement and blockchain analytics firms. The exchange has also pledged to continue assisting Ripple in the investigation and closely monitoring the attacker's wallets to ensure that the stolen funds can be recovered.
6. BITCOIN SPOT ETF MARKET SEES NET INFLOWS IN 5 CONSECUTIVE DAYS
The Bitcoin Spot ETF market recorded its fifth consecutive day of net inflows on Thursday, Day 15 of trading.
Grayscale Bitcoin Trust (GBTC) saw net outflows decline for the second consecutive session. GBTC outflows decreased from $188 million to $182 million on Thursday.
Total net inflows on Thursday were $38.5 million. iShares Bitcoin Trust (IBIT) led the way with net inflows of $163.9 million. However, the Fidelity Bitcoin Wise Origin Fund saw net inflows decline from $232.1 million to just $35.8 million on Thursday.
Bitcoin Spot ETF on day 15 | Source: Bloomberg Intelligence
BitMEX Research shared GBTC statistics for Trading Day 16 (02 Feb, 2024). GBTC net outflows decreased from $182 million (Day 15) to $145 million (Day 16). GBTC saw outflows decline to a new low, suggesting that inflows into the BTC spot ETF market could be about to surge.
