Blockchain

Crypto Weekly Update: Ethereum Spot ETF Approval, Breaking News, and Market Analysis

Published

6 months ago

25 May, 2024

Crypto Weekly Update: Ethereum Spot ETF Approval, Breaking News, and Market Analysis

Welcome to your go-to source for all things Web3, Blockchain and Crypto! Our Weekly report dives into the freshest updates and game-changing developments in the fast-paced world. We curate the best data from trusted sources to keep you ahead of the curve. Ready to stay informed and inspired? Let’s explore the latest trends and insights together!

1. Web3, Blockchain & Crypto Breaking News This Week

Here are this week’s major breaking news reports related to Web3, Blockchain, and crypto that you should never miss.

US Supreme Court Rules Against Coinbase in Arbitration Case

The United States Supreme Court unanimously decided that courts must determine which contract takes precedence when multiple agreements exist, ruling against Coinbase in a dispute over a 2021 Dogecoin sweepstakes.

US House Votes to Ban Federal Reserve Issuing CBDCs

The US House passed the CBDC Anti-Surveillance State Act, blocking the Federal Reserve from directly issuing digital currencies, aiming to prevent potential surveillance of American citizens.

US House Passes Crypto Clarity Legislation

The Financial Innovation and Technology for the 21st Century Act passed with bipartisan support, providing legal clarity on the classification, registration, and custody of crypto assets, moving away from the SEC’s enforcement-led regulation.

Trump Campaign Accepts Cryptocurrency Donations

The Trump campaign will now accept cryptocurrency donations, making it the first major party presidential campaign to do so, aligning with its agenda of prioritising freedom over government control.

Polimec Launches on Polkadot for Web3 Fundraising

Polimec, a decentralised funding protocol, was launched on Polkadot. It aims to transform Web3 project fundraising by providing a transparent, regulatory-compliant platform for connecting investors with startups globally.

UN Report: North Korean Hackers Launder Stolen Crypto

A UN report revealed North Korean hackers funnelled millions in stolen cryptocurrency through Tornado Cash last year. The Lazarus Group transferred $147.5 million taken from crypto exchange HTX in 2023.

1.1. This Week’s Web3, Blockchain & Crypto Special News Report You Can’t-Miss

SEC Approves Spot Ether ETFs; ETH & BTC Witness Volatility

The SEC approves spot Ether ETFs for trading on national exchanges. Recently, Ethereum saw a boost in its price from $3,100 to a peak of $3,930. This followed experts’ approval prediction. Bitcoin also surged to $72,000. However, both cryptocurrencies dropped due to high volatility before the approval and struggled to recover. The price of Ethereum at present, on 25th May 2024 (8:30 AM GMT-4), stands at $3,741.22, and Bitcoin’s price is $69,273.19. Despite the approval, it may take weeks for an Ether ETF to go live, meaning the full impact on the crypto market will be realised later.

2. Blockchain Weekly Analysis

The weekly blockchain analysis covers the blockchain dominance analysis and 7-day change analysis. To clarify, the Layer 1 chains and Layer 2 chains are analysed separately.

2.1. Blockchain Dominance Analysis

Ethereum, TRON, BNB Smart Chain, Solana, and Arbitrum One are the top five blockchains as per dominance and TVL.

Blockchains	Dominance	TVL
Ethereum	64.34%	$63,308,692,822
TRON	8.81%	$8,664,627,023
BNB Smart Chain	5.49%	$5,403,408,858
Solana	4.74%	$4,659,519,009
Arbitrum One	3.05%	$2,998,844,013

Ethereum dominates the blockchain sector with 64.3%. TRON and BNB Smart Chain follow with 8.81% and 5.49%, respectively. Solana displays 4.74% dominance, and Arbitrum One shows 3.05% dominance.

2.1.1. Top Five Layer 1 Chains By Dominance

Ethereum, BNB Smart Chain, Solana, Bitcoin and Avalanche are the top five Layer 1 Blockchain by dominance and TVL.

Layer 1 Blockchains	Dominance	TVL
Ethereum	80.74%	$63,280,623,806
BNB Smart Chain	6.89%	$5,401,013,162
Solana	5.94%	$4,657,453,129
Bitcoin	1.46%	$1,142,885,950
Avalanche	1.26%	$989,858,224

In the layer 1 chain segment, Ethereum dominates with 80.74%. BNB Smart Chain and Solana follow with 6.89% and 5.94%, respectively. Bitcoin records 1.46% dominance, and Avalanche registers 1.26% dominance.

2.1.2. Top Five Layer 2 Chains By Dominance

Arbitrum One, Blast, Base, Polygon POS, and Optimism are the top five Layer 2 Blockchains based on dominance and Total Value Locked.

Layer 2 Blockchains	Dominance	TVL
Arbitrum One	29.79%	$2,997,202,414
Blast	18.61%	$1,871,893,206
Base	16.74%	$1,683,987,107
Polygon POS	9.58%	$963,814,055
Optimism	8.52%	$857,522,817

In the layer 2 chain segment, Arbitrum One dominates with 29.79%. Blast and Base closely follow with 18.61% and 16.74%, respectively. Polygon POS shows 9.58% dominance, and Optimism displays 5.52% dominance.

2.2. Blockchain 7-Day Change Analysis

Let’s analyse the top five Layer 1 chains using the 7-day change index.

Layer 1 Blockchains	7-Day Change
Ethereum	+21.1%
BNB Smart Chain	-9.7%
Solana	+5.8%
Bitcoin	+3.6%
Avalanche	+5.7%

Among the top five layer 1 blockchains by TVL, only one shows negative 7-day change. BNB Smart Chain displays the negative 7-day change of -9.7%. The highest 7-day positive change is shown by Ethereum, with +21.1% change. Solana dnd Avalanche follow with +5.8% and +5.7%, respectively. Bitcoin registers the change of +3.6%.

Let’s analyse the top five Layer 2 chains using the 7-day change index.

Layer 2 Blockchains	7-Day Change
Arbitrum One	+13.6%
Blast	+24.7%
Base	+11.4%
Polygon POS	+8.0%
Optimism	+10.5%

Among the top five layer 2 blockchains by TVL, all of them display positive 7-day change. Blast displays the highest 7-day positive change of +24.7%. Arbitrum One and Base follow with +13.6% and +11.4%, respectively. Optimism records +10.5% change, and Polygon POS registers +8.0% change.

3. Cryptocurrency Weekly Analysis

The Cryptocurrency Weekly analysis covers a wide range of analyses, from the general cryptocurrency market cap analysis and the top gainers and losers analysis to the Stablecoin, Memecoin, AI Coins and Metaverse Coins analyses.

3.1. Top Cryptocurrency Categories By Market Cap

Layer 1 (LI), Smart Contract Platform, Andreessen Horowitz (a16z) Portfolio, Alameda Research Portfolio, and Alleged SEC Securities are the top five cryptocurrency categories by Market Cap. The Layer 1 (L1) category, with $2,075,024,162,080 market cap, is the one with the highest market cap. The Smart Contract Platform category follows with a $759,692,397,902 market cap.

Crypto Categories	Market Cap	7-Day Change
Layer 1 (L1)	$2,075,024,162,080	+47.2%
Smart Contract Platform	$759,692,397,902	+15.7%
Andreessen Horowitz (a16z) Portfolio	$610,522,744,828	+19.4%
Alameda Research Portfolio	$556,666,727,766	+20.8%
Alleged SEC Securities	$251,715,895,182	+1.8%

Among the top five crypto categories by market cap, all the five top categories show positive 7-day change. Layer 1 (L1) records the highest 7-day change of 47.2%. Alameda Research Portfolio and Andreessen Horowitz (a16z) Portfolio follow with +20.8% and +19.4%, respectively. Smart Contract Platform also registers an impressive change of +15.7%. Meanwhile, Alleged SEC Securities displays a minimal change of +1.8%.

Music Tokens, Liquid Restaking Governance Tokens, LRTfi, Yield Tokenization Coins, Elon Musk-inspired coins, and AI Meme Coins are the most trending categories this week.

Trending Categories	Market Cap
Music Tokens	$627,121,599
Liquid Restaking Governance Tokens	$1,524,880,216
LRTfi	$989,429,410
Yield Tokenization Coins	$965,345,342
Elon Musk-Inspired Coins	$23,760,570,550
AI Meme Coins	$975,478,321

Among the top trending categories, the category of Elon Musk-Inspired Coins has the highest market cap of $23,760,570,550. The Liquid Restaking Governance Tokens category follows with a $1,524,880,216 market cap. LRTfi, AI Meme Coins, and Yield Tokenization Coins record $989,429,410, $975,478,321, and $965,345,342 market cap, respectively.

3.2. Top Cryptocurrencies By Market Cap

Bitcoin, Ethereum, Tether, BNB, and Solana are the top five cryptocurrencies by market cap. Bitcoin has the highest market cap of $1,326,998,613,001. Etheruem follows with a market cap of $444,659,154,199.

Cryptocurrencies	Market Cap	7-Day Change
Bitcoin	$1,326,998,613,001	+1.2%
Ethereum	$444,659,154,199	+22.1%
Tether	$111,958,979,692	-0.1%
BNB	$91,693,466,328	+2.9%
Solana	$74,431,437,048	-1.5%

Among the top five cryptocurrencies, Ethereum shows the highest 7-day change of +22.1%. BNB and Bitcoin display minimal positive changes of +2.9% and +1.2%, respectively. Solana and Tether record negative changes of -1.5% and -0.1%, respectively.

Gearbox, Apu Apustaja, Turbo, Opulous and Ondo are the most trending cryptocurrencies at the time of preparing this analysis.

Trending Cryptocurrencies	Market Cap
Gearbox	$111,343,734
Apu Apustaja	$233,632,808
Turbo	$201,554,316
Opulous	$92,410,047
Ondo	$1,621,280,118

Among the top five most trending cryptos, Ondo has the highest market cap of $1,621,280,118. Apu Apustaja and Turbo follow with $233,632,808 and $201,554,316, respectively. Gearbox has a market cap of $111,343,734, and Opulous marks a market cap of $92,410,047.

3.2.2. Top Gainers & Losers This Week

AMATERASU OMIKAMI, Wojak, Turbo, Higher, and BOB Token are the top gainers of the week as per the 7-day gain index.

Top Gainers	7-Day Gain
AMATERASU OMIKAMI	+286.6%
Wojak	+125.3%
Turbo	+120.0%
Higher	+110.3%
BOB Token	+105.0%

AMATERASU OMIKAMI shows the highest 7-day gain of +286.6%. Wojak and Turbo follow with +125.3% gain and +120.0% gain, respectively. Higher has a 7-day gain of +110.3%, and BOB Token records a 7-day gain of +105.0%.

Michi, Jeo Boden, Kitten Haimer, Shark Cat, and Notcoin are the top losers of the week as per the 7-day loss index.

Top Losers	7-Day Loss
michi	-53.3%
Jeo Boden	-39.8%
Kitten Haimer	-38.9%
Shark Cat	-32.0%
Notcoin	-31.2%

Michi registers the highest 7-day loss of -53.3%. Jeo Boden and Kitten Haimer follow with -39.8% and -38.9%, respectively. Shark Cat shows a loss of -32.0%, Bitcoin records a loss of -31.2%.

3.3. Top Stablecoins Analysis

Tether, USDC, Dai, First Digital USD, and Ethena USDe are the top five stablecoins as per market cap.

Stablecoins	Market Cap
Tether	$112,018,679,115
USDC	$32,739,425,716
Dai	$5,308,052,511
First Digital USD	$3,230,327,487
Ethena USDe	$2,681,694,776

In the stablecoin market, Tether has the highest market cap of $112,018,679,115. USDC and Dai follow with $32,739,425,716 and $5,308,052,511, respectively. First Digital USD showcases a market cap of $3,230,327,487. Ethena USDe enjoys a $2,681,694,776 market cap.

3.4. Top Memecoins 7-Day Change Analysis

Dogecoin, Shiba Inu, Pepe, dogwifhat, and Bonk are the top five Memecoins as per market cap. Dogecoin has the highest market cap of $23,526,356,272. Shiba Inu and Pepe follow with $14,268,797,326 and $5,813,405,981 market cap, respectively.

Memecoins	Market Cap	7-Day Change
Dogecoin	$23,526,356,272	+7.9%
Shiba Inu	$14,268,797,326	-2.0%
Pepe	$5,813,405,981	+39.2%
dogwifhat	$2,787,008,032	-1.9%
Bonk	$2,184,863,206	+37.0%

Among the top five memcoins, Pepe and Bonk mark impressive 7-day changes of +39.2% and 37.0%. Dogecoin shows a +7.9% change. Conversely, Shiba Inu and dogwifhat records negative changes of -2.0% and -1.9%, respectively.

3.5. Top AI Coins 7-Day Change Analysis

Fetch-ai, Internet Computer, Render, The Graph, and Bittensor are the top five AI Coins as per market cap. Fetch.ai has the highest market cap of $5,815,503,794. Internet Computer and Render closely follow with $5,675,753,251 and $3,932,965,819 market cap, respectively.

AI Coins	Market Cap	7-Day Change
Fetch.ai	$5,815,503,794	+2.0%
Internet Computer	$5,675,753,251	-4.0%
Render	$3,932,965,819	+1.0%
The Graph	$3,068,789,601	+2.5%
Bittensor	$2,932,775,704	+13.6%

Among the top five AI coins, only one coin shows a negative 7-day change. Internet Computer records a 7-day change of -4.0%. The highest 7-day positive change is recorded by Bittensor, with +13.6% change. The graph and Fetch.ai show a change of +2.5% and +2.0%, respectively. Render registers a minimal change of +1.0%.

3.6. Top Metaverse Coins 7-Day Change Analysis

Render, FLOKI, Axie Infinity, The Sandbox, and Decentraland are the top five Metaverse Coins on the basis of market cap. Render has the highest market cap of $3,928,015,314. FLOKI, Axie Infinity, and The Sandbox closely follow with $2,150,126,952, $1,132,240,710, and $1,005,070,619 market cap, respectively.

Metaverse Coins	Market Cap	7-Day Change
Render	$3,928,015,314	+0.8%
FLOKI	$2,150,126,952	+6.4%
Axie Infinity	$1,132,240,710	+7.1%
The Sandbox	$1,005,070,619	+0.3%
Decentraland	$844,788,666	+4.5%

Among the top five metaverse coins, all of them show positive 7-day changes. Axie Infinity displays the highest 7-day change of +7.1%. FLOKI and Decentraland follow with +6.4% and +4.5% change, respectively. Render and The Sandbox mark minimal changes of +0.8% and +0.3%, respectively.

4. Crypto ETF Weekly Analysis

The crypto ETF weekly analysis covers Bitcoin Spot ETFs, Bitcoin Futures ETFs, and Ethereum Futures ETFs.

4.1. Bitcoin Spot ETF Price Change Analysis

GBTC, IBIT, FBTC, ARKB and BITB are the top five Bitcoin Spot ETFs based on Asset Under Management. GBTC marks the highest AUM of $24.33B. IBIT closely follows with an AUM of $17.24B.

Bitcoin Spot ETFs	Price	Change	AUM
Grayscale (GBTC)	$59.70	-3.63%	$24.33B
BlackRock (IBIT)	$38.27	-3.63%	$17.24B
Fidelity (FBTC)	$58.72	-3.88%	$9.90B
Ark/21 Shares (ARKB)	$67.13	-3.62%	$2.85B
Bitwise (BITB)	$36.63	-3.51%	$2.16B

Among the top five Bitcoin Spot ETFs, none of them register positive changes. Fidelity (FBTC) marks the highest negative price change of -3.88%. Grayscale (GBTC) and BlackRock (IBIT), both showcase a change of -3.63%. Ark/21 Shares (ARKB) records a change of -3.62%, and Bitwise (BITB) displays -3.51% change.

4.2. Bitcoin Futures ETF Price Change Analysis

BITO, XBTF, BTF, BITS, and ARKA are the top five Bitcoin Futures ETFs as per Asset Under Management. BITO has the highest AUM of $598.78M. XBTF follows with $42.41M AUM.

Bitcoin Futures ETFs	Price	Change	AUM
ProShares (BITO)	$27.20	-3.78%	$598.78M
VanEck (XBTF)	$39.22	+0.33%	$42.41M
Valkyrie (BTF)	$21.08	-1.08%	$38.20M
Global X (BITS)	$66.20	-4.42%	$26.10M
Ark/21 Shares (ARKA)	$64.66	-2.82%	$8.01M

Among the top five Bitcoin Futures ETFs, only VanEck (XBTF) displays a positive change; it records a change of +0.33%. The highest negative price change is shown by Global X (BITS), with -4.42%. ProShares (BITO) follows closely with a -3.78% change. Ark/21 Shares (ARKA) and Valkyrie (BTF) register negative changes of -2.82% and -1.08%, respectively.

4.3. Ethereum Futures ETF Price Change Analysis

BITW, BTF, EFUT, EETH, and AETH are the top five Ethereum Futures ETFs based on Asset Under Management. BITW has the highest AUM of $478.00M. BTF follows with $25.93M AUM.

Ethereum Futures ETFs	Price	Change	AUM
Bitwise (BITW)	$36.22	-4.48%	$478.00M
Valkyrie (BTF)	$21.08	-1.08%	$25.93M
VanEck (EFUT)	$29.46	+1.45%	$7.84M
ProShares (EETH)	$82.16	+1.37%	$6.43M
Bitwise (AETH)	$49.51	+0.57%	$585.75K

Among the top five Ethereum futures ETFs, at least three record positive price changes, though mild. When VanEck (EFUT) and ProShares (EETH) show impressive changes of +1.45% and +1.37%, respectively, Bitwise (AETH) displays a mild positive change of +0.57%. Conversely, Bitwise (BITW) registers an unimpressive change of -4.48%, and Valkyrie (BTF) marks a mild negative change of -1.08%.

5. DeFi Protocols Weekly Analysis

Lido, EigenLayer, AAVE, Maker and JustLend are the top five DeFi protocols as per Total Value Locked. Lido marks the highest TVL of $34.568B. EigenLayer and AAVE follow with $18.189B and $12.727B, respectively.

DeFi Protocols	TVL	7-Day Change
Lido	$34.568B	+21.54%
EigenLayer	$18.189B	+19.87%
AAVE	$12.727B	+16.53%
Maker	$8.921B	+8.13%
JustLend	$6.515B	+1.29%

Among the top five DeFi protocols, Lido shows the highest 7-day change of +21.54%. EigenLayer and AAVE display changes of +19.87% and +16.53%, respectively. Maker registers a satisfactory change of +8.13%, and JustLend records a minimal change of +1.29%.

6. Crypto Exchange Weekly Analysis

6.1. Top Crypto Centralised Exchanges

Binance, Coinbase Exchange, Bybit, WhiteBIT, and OKX are the top five crypto centralised exchanges on the basis of Monthly Visits.

Crypto Centralised Exchanges	Monthly Visits	Trust Score
Binance	75.3M	10/10
Coinbase Exchange	46.3M	10/10
Bybit	31M	10/10
WhiteBIT	24.8M	8/10
OKX	24.1M	10/10

Binance has the highest number of monthly visits of 75.3M. Coinbase Exchange follows with 46.3M. Bybit marks 31M monthly visits. WhiteBIT and OKX record 24.8M and 24.1M, respectively.

Among the top five crypto centralised exchanges, except WhiteBIT, all of them show an impressive trust score of 10/10. WhiteBIT registers a trust score of 8/10.

6.2. Top Crypto Decentralised Exchanges

Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum One), Jupiter, Orca, and Pancakeswap V3 (BSC) are the top five crypto decentralised exchanges on the basis of Market Share by Volume.

Crypto Decentralised Exchanges	% Market Share by Volume	24-Hour Volume
Uniswap V3 (Ethereum)	29.0%	$3,287,743,930
Uniswap V3 (Arbitrum One)	12.5%	$1,421,920,117
Jupiter	6.7%	$759,282,905
Orca	4.9%	$550,453,053
Pancakeswap V3 (BSC)	4.6%	$518,919,427

Uniswap V3 (Ethereum) dominates with 29.0% market share by volume. Uniswap V3 (Arbitrum One) follows with 12.5%. Jupiter displays 6.7%. Orca and Pancakeswap V3 (BSC) register 4.9% and 4.6%, respectively.

Among the top five crypto decentralised exchanges, Uniswap V3 (Ethereum) has the highest 24-hour volume of $3,287,743,930. Uniswap V3 (Arbitrum One) follows with $1,421,920,117 volume.

6.3. Top Crypto Derivative Exchanges

Binance (Futures), Bybit(Futures), Deepcoin (Derivatives), Bitget Futures, and BYDFi (Futures) are the top five crypto derivative exchanges by 24-hour open interest.

Crypto Derivative Exchanges	24-Hour Open Interest	24-Hour Volume
Binance (Futures)	$19,722,149,258	$103,686,158,764
Bybit (Futures)	$12,800,682,172	$36,848,564,789
Deepcoin (Derivatives)	$10,874,699,192	$11,528,611,309
Bitget Futures	$10,279,715,000	$24,457,277,642
BYDFi (Futures)	$9,845,579,609	$11,501,719,346

Binance (Futures) has the highest 24-hour Open Interest of $19,722,149,258. Bybit (Futures), Deepcoin (Derivatives), and Bitget Futures are followed by $12,800,682,172, $10,874,699,192, and $10,279,715,000 respectively. BYDFi (Futures) marks an open interest of $9,845,579,609.

Among the top five crypto derivative exchanges, Binance (Futures) has the highest 24-hour volume of $103,686,158,764. Bybit (Futures) and Bitget Futures follow with $36,848,564,789 and $24,457,277,642, respectively.

7. NFT Marketplace Weekly Analysis

Blur, Blur Aggregator, Cryptopunks, Gem, and X2Y2 are the top five NFT Marketplaces by Market Share. Blur has the highest market share of 70.40%. Blur Aggregator and Cryptopunks follow with 20.71% and 4.20% market share, respectively.

NFT Marketplaces	Market Share	Volume Change (Change of last 7-D Volume over the Previous 7-D Volume)
Blur	70.40%	+14.30%
Blur Aggregator	20.71%	+3.32%
Cryptopunks	4.20%	-39.47%
Gem	1.54%	+54.65%
X2Y2	1.46%	-19.43%

Among the top five NFT marketplaces, at least three NFT marketplaces show positive volume change. The highest volume change is recorded by Gem, with +54.65% change. Blur and Blur Aggregator follow with +14.30% and +3.32%, respectively. The highest negative volume change is registered by Cryptopunks, with -39.47% change. X2Y2 follows with -19.43% change.

7.1. Top NFT Collectibles This Week

CryptoPunks #8796, CryptoPunks #3259, CryptoPunks #5406, CryptoPunks #5335, and CryptoPunks #2685 are the top NFT collectibles based on Price.

NFT Collectibles	Price
CryptoPunks #8796	$191,472.92
CryptoPunks #3259	$148,803.08
CryptoPunks #5406	$143,877.09
CryptoPunks #5335	$141,559.55
CryptoPunks #2685	$141,200.36

CryptoPunks #8796 marks the highest price of $191,472.92. CryptoPunks #3259, and CryptoPunks #5406 follow with $148,803.08 and $143,877.09, respectively. CryptoPunks #5335, with $141,559.55, is the one with the fourth highest price, and CryptoPunks #2685, with $141,200.36, is the fifth highest.

8. Web3, Blockchain & Crypto Funding Analysis

8.1. Crypto Fundraising Trend

Week	Funds Raised	Number of Fundraising Rounds
May 20 – 26, 2024	$245.00M	27
May 13 – 19, 2024	$157.40M	30

As per this week’s crypto fundraising trend, from May 20, 2024 till now, nearly $245.00M have been raised. In the previous week, between May 13 and 19, 2024, only $157.40M was raised. Clearly, the fund raised this week is at least 87.6M higher than the fund raised previous week.

8.2. Most Active Investors This Week

OKV Ventures, Laser Digital, No Limit Holdings, Haun Ventures, and DuckDAO are the most active investors this week, based on Deals.

Investors (or Fund’s Name)	Deals (19 May – 24 May, 2024)	Investments	Lead Investments
OKV Ventures	4	3	1
Laser Digital	3	2	1
No Limit Holdings	2	2	0
Haun Ventures	2	1	1
DuckDAO	2	2	0

OKV Ventures displays the highest number of deals of 4. Laser Digital and No Limit Holdings follow with 3 and 2 deals respectively. Haun Ventures and DuckDAO record 2 deals each. Among the top five most active investors, at least three register lead investment. OKV Ventures, Laser Digital and Haun Ventures mark one lead investment each.

8.3. Crypto Fundraising By Category

Blockchain Infrastructure, Blockchain Services, CeFi, Chain, DeFi, GameFi, NFT and Social are the categories raised funds this week.

Category	Number of Fundraising Rounds (May 20 – 26, 24)	Funds Raised
Blockchain Infrastructure	2	$22.00M
Blockchain Service	5	$12.70M
CeFi	1	$9.50M
Chain	5	$27.90M
DeFi	7	$17.90M
GameFi	4	$5.00M
NFT	1	N/A
Social	2	$150.00M

Social, with a $150.00M fundraised, is the highest fund raised category this week. Chain, Blockchain Infrastructure, and DeFi are followed by $27.90M, $22.00M, and $17.90M, respectively. Blockchain Services, CeFi, and GameFi, show $12.70M, $9.50M, and $5.00M funds raised, respectively.

8.4. Top Crypto Investment Locations

Apart from the undisclosed category, the US, Cayman Islands, Greece, and Russia are the top crypto investment locations, on the basis of funds raised.

Investment Location	Funds Raised (May 19 – 24, 2024)	Funds Raised %	Number of Rounds
The United States	$162.00M	66%	5
Undisclosed	$58.40M	24%	20
Cayman Islands	$10.00M	4%	1
Greece	$7.70M	3%	1
Russia	$6.90M	3%	1

The United States, which accounts for around 66% of the total investment raised, is the top investment location this week; the total amount it raised is around $162.00M. The undisclosed category accounts for nearly 24%, followed by $58.40M in funds raised. Interestingly, the Cayman Islands, Greece and Russia mark $10.00M, $7.70M, and $6.90M funds raised, respectively.

8.5. Most Active Crypto VC Jurisdictions

The US, Singapore, the UK, China and Seychelles are the most active crypto venture capital jurisdictions.

Crypto VC Jurisdiction	Number of Projects (May 19 – 24, 2024)
The US	57
Singapore	13
The UK	8
China	8
Seychelles	5

Among the most active crypto venture capital jurisdictions, The US has the highest number of projects of 57. Singapore and The UK follow with 13 and 8 projects, respectively. China also records 8 projects, and Seychelles registers five projects.

9. Web 3, Blockchain & Crypto Hack Updates

The total value hacked is $7.9B. The total value hacked in DeFi is $5.96B, and total value hacked in Bridges is $2.83 billion.

Total Value Hacked

$7.9B

Total Value Hacked in DeFi$5.96BTotal Value Hacked in Bridges $2.83B

Project Name	Amount Lost	Date
Gala	$22M	20 May, 2024
ALEX	$23.9M	16 May. 2024
pump.fun	$2M	16 May, 2024
Sonne Finance	$20M	15 May, 2024

Gala, ALEX, pump.fun and Sonne Finance are the top four project hacks reported this month. The Sonne Finance hack is the first reported this month. In this hack reported on 15th May, 2024, the project lost nearly $20M. ALEX and pump.fun were reported on 16th May. In the ALEX hack, nearly $23.9M was lost. It is the biggest hack reported this month in terms of amount lost. In the pump.fun hack, only $2M was lost. It is the smallest hack this month in terms of amount lost. The Gala hack, reported on 20th May, in which Gala lost over $22M, is the latest hack reported.

Endnote

This report provides a comprehensive analysis of the current performance of various blockchains and cryptocurrencies, including Bitcoin, Altcoins, Stablecoins, AI Coins, Memecoins and Metaverse. It highlights trending coins, top gainers and losers, and delves into Crypto ETFs such as Bitcoin Spot ETFS, Bitcoin Futures ETFs, and Ethereum Futures ETFs. Additionally, it examines centralised, decentralised, and derivatives crypto exchanges, DeFi protocols, and NFT marketplaces. The report also covers crypto fundraising activities, prominent investors, key investment locations, and notable crypto hacks reported lately.

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Blockchain

Bitcoin (BTC) Price Crashes as Donald Trump’s Win Odds Dip

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Markets received nominally good news on Thursday morning, with the US ISM manufacturing PMI for July falling much more than economists expected, sending interest rates to multi-month lows across the board. Additionally, initial jobless claims in the US jumped to their highest level in about a year. Taken together, the data adds to the sentiment that the US is on the verge of a cycle of monetary easing by the Federal Reserve, which is typically seen as bullish for risk assets, including bitcoin.

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Blockchain

Terra Blockchain Reboots After Reentry Attack Leads to $4M Exploit

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Terra Blockchain Reboots After Reentry Attack Leads to $4M Exploit

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CoinDesk is a awarded press agency that deals with the cryptocurrency sector. Its journalists respect a rigorous set of editorial policiesIn November 2023, CoinDesk has been acquired from the Bullish group, owner of Bullisha regulated digital asset exchange. Bullish Group is majority owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant digital asset holdings, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial board to protect journalistic independence. CoinDesk employees, including journalists, are eligible to receive options in the Bullish group as part of their compensation.

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Blockchain

$6.8M Stolen, ASTRO Collapses 60%

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

In the latest news in the blockchain industry, there has been a turn of events that has severely affected Terra and its users and investors, with the company losing $6.8 million. The attack, which exploited a reentry vulnerability in the network’s IBC hooks, raises questions about the security measures of the once celebrated blockchain protocol.

A web3 security company, Cyvers Alerts reported that the exploit occurred on July 31st and caused the company to lose 60 million ASTRO, 3.5 million USDC500,000 USDTand 2. 7 BitcoinThe flaw was discovered in April and allows cybercriminals to make payments non-stop by withdrawing money from the network.

Earth’s response

Subsequently, to the hack employed on the Terra blockchain, its official X platform declared the Suspension network operations for a few hours to apply the emergency measure. Finally in its sendTerra’s official account agreed, sharing that its operations are back online: the core transactions that make up the platform are now possible again.

However, the overall value of the various assets lost in the event was unclear.

Market Impact: ASTRO Crashes!

The hack had an immediate impact on the price of ASTRO, which dropped nearly 60% to $0.0206 following the network shutdown. This sharp decline highlights the vulnerability of token prices to security breaches and the resulting market volatility.

This incident is not the first time Terra has faced serious challenges. Earlier this year, the blockchain encountered significant problems that called into question its long-term viability. These repeated incidents underscore the need for stronger security measures to protect users’ assets and maintain trust in the network.

The recent Terra hack serves as a stark reminder of the ongoing security challenges in the blockchain space. As the platform works to regain stability, the broader crypto community will be watching closely.

This is a major setback for Terra. How do you think this will impact the blockchain industry?

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Blockchain

Luxembourg proposes updates to blockchain laws | Insights and resources

Published

4 months ago

1 August, 2024

BlockChainBulletin Staff

Luxembourg proposes updates to blockchain laws | Insights and resources

On July 24, 2024, the Ministry of Finance proposed Blockchain Bill IVwhich will provide greater flexibility and legal certainty for issuers using Distributed Ledger Technology (DLT). The bill will update three of Luxembourg’s financial laws, the Law of 6 April 2013 on dematerialised securitiesTHE Law of 5 April 1993 on the financial sector and the Law of 23 December 1998 establishing a financial sector supervisory commissionThis bill includes the additional option of a supervisory agent role and the inclusion of equity securities in dematerialized form.

DLT and Luxembourg

DLT is increasingly used in the financial and fund management sector in Luxembourg, offering numerous benefits and transforming various aspects of the industry.

Here are some examples:

Digital Bonds: Luxembourg has seen multiple digital bond issuances via DLT. For example, the European Investment Bank has issued bonds that are registered, transferred and stored via DLT processes. These bonds are governed by Luxembourg law and registered on proprietary DLT platforms.
Fund Administration: DLT can streamline fund administration processes, offering new opportunities and efficiencies for intermediaries, and can do the following:
- Automate capital calls and distributions using smart contracts,
- Simplify audits and ensure reporting accuracy through transparent and immutable transaction records.
Warranty Management: Luxembourg-based DLT platforms allow clients to swap ownership of baskets of securities between different collateral pools at precise times.
Tokenization: DLT is used to tokenize various assets, including real estate and luxury goods, by representing them in a tokenized and fractionalized format on the blockchain. This process can improve the liquidity and accessibility of traditionally illiquid assets.
Tokenization of investment funds: DLT is being explored for the tokenization of investment funds, which can streamline the supply chain, reduce costs, and enable faster transactions. DLT can automate various elements of the supply chain, reducing the need for reconciliations between entities such as custodians, administrators, and investment managers.
Issuance, settlement and payment platforms:Market participants are developing trusted networks using DLT technology to serve as a single source of shared truth among participants in financial instrument investment ecosystems.
Legal framework: Luxembourg has adapted its legal framework to accommodate DLT, recognising the validity and enforceability of DLT-based financial instruments. This includes the following:
- Allow the use of DLT for the issuance of dematerialized securities,
- Recognize DLT for the circulation of securities,
- Enabling financial collateral arrangements on DLT financial instruments.
Regulatory compliance: DLT can improve transparency in fund share ownership and regulatory compliance, providing fund managers with new opportunities for liquidity management and operational efficiency.
Financial inclusion: By leveraging DLT, Luxembourg aims to promote greater financial inclusion and participation, potentially creating a more diverse and resilient financial system.
Governance and ethics:The implementation of DLT can promote higher standards of governance and ethics, contributing to a more sustainable and responsible financial sector.

Luxembourg’s approach to DLT in finance and fund management is characterised by a principle of technology neutrality, recognising that innovative processes and technologies can contribute to improving financial services. This is exemplified by its commitment to creating a compatible legal and regulatory framework.

Short story

Luxembourg has already enacted three major blockchain-related laws, often referred to as Blockchain I, II and III.

Blockchain Law I (2019): This law, passed on March 1, 2019, was one of the first in the EU to recognize blockchain as equivalent to traditional transactions. It allowed the use of DLT for account registration, transfer, and materialization of securities.

Blockchain Law II (2021): Enacted on 22 January 2021, this law strengthened the Luxembourg legal framework on dematerialised securities. It recognised the possibility of using secure electronic registration mechanisms to issue such securities and expanded access for all credit institutions and investment firms.

Blockchain Act III (2023): Also known as Bill 8055, this is the most recent law in the blockchain field and was passed on March 14, 2023. This law has integrated the Luxembourg DLT framework in the following way:

Update of the Act of 5 August 2005 on provisions relating to financial collateral to enable the use of electronic DLT as collateral on financial instruments registered in securities accounts,
Implementation of EU Regulation 2022/858 on a pilot scheme for DLT-based market infrastructures (DLT Pilot Regulation),
Redefining the notion of financial instruments in Law of 5 April 1993 on the financial sector and the Law of 30 May 2018 on financial instruments markets to align with the corresponding European regulations, including MiFID.

The Blockchain III Act strengthened the collateral rules for digital assets and aimed to increase legal certainty by allowing securities accounts on DLT to be pledged, while maintaining the efficient system of the 2005 Act on Financial Collateral Arrangements.

With the Blockchain IV bill, Luxembourg will build on the foundations laid by previous Blockchain laws and aims to consolidate Luxembourg’s position as a leading hub for financial innovation in Europe.

Blockchain Bill IV

The key provisions of the Blockchain IV bill include the following:

Expanded scope: The bill expands the Luxembourg DLT legal framework to include equity securities in addition to debt securities. This expansion will allow the fund industry and transfer agents to use DLT to manage registers of shares and units, as well as to process fund shares.
New role of the control agent: The bill introduces the role of a control agent as an alternative to the central account custodian for the issuance of dematerialised securities via DLT. This control agent can be an EU investment firm or a credit institution chosen by the issuer. This new role does not replace the current central account custodian, but, like all other roles, it must be notified to the Commission de Surveillance du Secteur Financier (CSSF), which is designated as the competent supervisory authority. The notification must be submitted two months after the control agent starts its activities.
Responsibilities of the control agent: The control agent will manage the securities issuance account, verify the consistency between the securities issued and those registered on the DLT network, and supervise the chain of custody of the securities at the account holder and investor level.
Simplified payment processesThe bill allows issuers to meet payment obligations under securities (such as interest, dividends or repayments) as soon as they have paid the relevant amounts to the paying agent, settlement agent or central account custodian.
Simplified issuance and reconciliationThe bill simplifies the process of issuing, holding and reconciling dematerialized securities through DLT, eliminating the need for a central custodian to have a second level of custody and allowing securities to be credited directly to the accounts of investors or their delegates.
Smart Contract Integration:The new processes can be executed using smart contracts with the assistance of the control agent, potentially increasing efficiency and reducing intermediation.

These changes are expected to bring several benefits to the Luxembourg financial sector, including:

Fund Operations: Greater efficiency and reduced costs by leveraging DLT for the issuance and transfer of fund shares.
Financial transactions: Greater transparency and security.
Transparency of the regulatory environment: Increased attractiveness and competitiveness of the Luxembourg financial centre through greater legal clarity and flexibility for issuers and investors using DLT.
Smart Contracts: Potential for automation of contractual terms, reduction of intermediaries and improvement of transaction traceability through smart contracts.

Blockchain Bill IV is part of Luxembourg’s ongoing strategy to develop a strong digital ecosystem as part of its economy and maintain its status as a leading hub for financial innovation. Luxembourg is positioning itself at the forefront of Europe’s growing digital financial landscape by constantly updating its regulatory framework.

Local regulations, such as Luxembourg law, complement European regulations by providing a more specific legal framework, adapted to local specificities. These local laws, together with European initiatives, aim to improve both the use and the security of projects involving new technologies. They help establish clear standards and promote consumer trust, while promoting innovation and ensuring better protection against potential risks associated with these emerging technologies. Check out our latest posts on these topics and, for more information on this law, blockchain technology and the tokenization mechanism, do not hesitate to contact us.

We are available to discuss any project related to digital finance, cryptocurrencies and disruptive technologies.

This informational piece, which may be considered advertising under the ethics rules of some jurisdictions, is provided with the understanding that it does not constitute the rendering of legal or other professional advice by Goodwin or its attorneys. Past results do not guarantee a similar outcome.

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