Coinbase predicts US regulation will fuel the next big moves in crypto

May 21, 2024

Hot projects + Market overview

I. Mainstream exchange news

• Upbit temporarily suspends services for ONT, ONG, and MBL.
• OKX releases updates on the token listing requirements.
• Binance announces an open recruitment plan for token listings.
• Binance's Web3 Wallet introduces new Yield Plus and Simple Yield features. 
• Coinbase predicts US regulation will fuel the next big moves in crypto.
• Binance will support the IRISnet (IRIS) network upgrade.

II. Mainstream projects and trending events

• Arthur Hayes says US-Japan currency swap policy could boost crypto, with Bitcoin eyeing $1 million.
• Several whales bought ETH during the Ethereum price rise, with most using leverage.
• Gala Games, a Web3 gaming platform, reportedly hacked for more than $200 million.
• The probability of a spot Ethereum ETF approval rose from 25% to 75%, according to Bloomberg.
• Hyperliquid L1 will support native EVM.
• Crypto lender Genesis settles $2 billion with New York regulators.
• Uniswap Labs and Across introduce new Ethereum token standard ERC-7683 for better cross-chain interoperability.
• The Aave community passes a proposal to deploy Aave V3 on Celo.

III. Funding news

• OKX Ventures invests in Bitlayer, a Bitcoin Layer 2 network based on the BitVM paradigm.
• Crypto market funding increased by 40.3% in Q1 to $2.4 billion.

IV. Regulatory news

• Brazil's Central Bank aims to gradually regulate crypto, proposing regulations by late 2024.
• Fed Governor Barr says US regulators are examining crypto deposit treatment.
• Paraguay proposes severe punishments for illegal Bitcoin mining.

V. Popular projects 

Market Overview

Senior Bloomberg analyst Eric Balchunas tweets that the SEC aims for Ethereum ETF review by May 21st, potentially approving as early as May 22nd. Upon the news, ETH went up by 20% in one day, while BTC surpassed the crucial $68,000 resistance level, peaking at $71,979.

There are two potential trends for BTC,  one is a swift break through $73,777 on an upward trend, another is a modest fallback to either $70,500 or $68,500 before returning to the major upward track. With ETH demonstrating strength, a price increase among copycat coins is anticipated, including those in LSD, AI, and GameFi sectors.

BTC Spot ETF

Data as of May 18th shows a $12.8 billion net inflow into BTC ETFs, with a daily inflow of $174 million and a turnover of $1.18 billion. ETF net assets represent 4.29% of BTC's market value. Key observations are as follows:

GBTC: The single-day net inflow was $9 million, with a cumulative net outflow of $18 billion, a single-day turnover of $443 million, and a current net asset value of $20.28 billion.

IBIT: No new data available.

FBTC: The single-day net inflow was $64 million, with a cumulative net inflow of $9 billion, a single-day turnover of $514 million, and a current net asset value of $11 billion.

ARKB: The single-day net inflow was $68 million, with a cumulative net inflow of $3 billion, a single-day turnover of $128 million, and a current net asset value of $3.35 billion.

AI Sector

Attention may be merited for certain low-market-cap AI initiatives exhibiting potential for Binance listing, such as BASEAI, OLAS, DEAI, ENQAI, and AIUS.

Memecoin Sector

Top memecoins on the ETH network may be subjected to notable attention and hype, with emphasis on PEPE, MOG, WOJAK, BITCOIN, and JOE.

Top projects across sectors

Top projects include VELO, a leading dex in the Op ecosystem; AERO, a top dex in the Base ecosystem; LDO, a premier project on LSD; AAVE, a key role-player in Defi lending; UNI, a leader in ETH based dex; along with interest rate swap platform PENDLE, multi-signature wallet SAFE, RWA-ONDO, cross-chain initiatives AXL&ACX, and BRC20-ORDI.

GameFi Sector

The GameFi sector hasn't been particularly hyped recently, primarily due to a lack of fund consensus. However, in light of ETH's upswing, funds appear to be trickling into the gaming sector. Key game-based endeavors to keep an eye on include PRIME, BEAM, ILV, BIGTIME, AGLD, ACE, and more.

On-chain Daily

1. MEGA: MEGA is related to the US election, but in full, it stands for Make Ethereum Great Again. Interestingly, the probability of the ETH ETF being passed has escalated from 25% to 75%, according to a statement from a Bloomberg analyst yesterday. Prompted by this, ETH has seen a significant increment of 25%, and fittingly, this memecoin has been able to ride this wave.

Current price: 0.0581 USDT

Historical high: 0.4144 USDT

6-hour decrease: 9.4% (Token online time: 05/20 07:40 UTC)

Current market cap: $3.4M 

2. TRUTH: TRUTH is another memecoin, which stands for Truth Inu. It is created by The Dude, an angel investor in the cryptocurrency wheelchair who has invested in more than 300 start-ups/ICOs and boasts over seven years of crypto trading experience.

Current price: 0.000127 USDT

Historical high: 0.0003759 USDT

6-hour decrease: 4.4% (Token online time: 05/20 14:30 UTC)

Current market cap: $1.2M 

3. PEEPA: PEEPA is a memecoin embodying Pepe's wife.

Current price: 0.08575 USDT

Historical high: 0.08775 USDT

24-hour increase: 1700%

Current market cap: $2.4M

4. MONKAS: MONKAS is a memecoin based on Pepe's classic emoticon on Twitch.

Current price: 0.05693 USDT

Historical high: 0.05779 USDT

24-hour change: +52%

Current market cap: $2.9M 

5. NORMILIO: NORMILIO is a Base-originated memecoin featuring Milady, colored entirely in blue.

Current price: 0.00666 USDT

Historical high: 0.0075 USDT

24-hour increase: 120%

Current market cap: $6M

6. WIFMAGA: WIFMAGA is a Solana-based memecoin that showcases the primary WIF wearing Trump's MAGA cap, instead of the typical fur hat.

Current price: 0.143 USDT

Historical high: 0.2 USDT

6-hour increase: 483% (Token online time: 05/20 18:25 UTC)

Current market cap: $2M 

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