Venezuela bans crypto mining to protect its power grid

May 20, 2024

Hot projects + Market overview

I. Mainstream exchange news

• Binance Square launches a content mining event, allowing social posts to earn a 5% commission.
• Kraken will list USDT in Europe with no plans to delist.
• Coinbase had a brief outage due to a Card reward service error, yet assured that all customer funds are safe.
• Coinbase to list Drift Protocol (DRIFT).
• KuCoin suspends P2P services for Nigerian Naira.

II. Mainstream projects and trending events

• Bounce Brand Bounce Booster is a new revenue product integrating multiple income sources
• Ethereum Foundation researcher Justin Drake was named as an advisor to the Eigen Foundation.
• ETF Store President says that the US SEC may approve the 19b-4 file of Ethereum spot ETF this week, while the approval of the S-1 will be a “slow play.”
• Gnosis DAO community proposes $30 million GNO buyback; voting ends May 24th.
• The TVL of the Ethereum Layer2 network is currently $40.35 billion, with a 7-day increase of 4.17%. The top five TVLs are: Arbitrum One ($16.51 billion, 7-day increase 5.24%); OP Mainnet ($7.08 billion, 7-day increase 2.06%); Base ($5.79 billion, 7-day increase 3.75%); Blast ($2.73 billion, 7-day increase 3.79%); Mantle ($1.16 billion, 7-day increase 0.89%);
• Aevo launches Aevo Airdrops with initial projects Swell Protocol and Zerolend Finance.
• The Fantom community proposes Sonic network governance, allowing FTM to migrate to S at 1:1.
• The Livepeer community explores integrating AI into its streaming platform.

III. Funding news

• Web3 social application Focus Tree completes a $2 million seed round.
• Web3 football fantasy game GOALAI secures $3 million in funding, led by IDG Capital.

IV. Regulatory news

• Venezuela bans crypto mining to protect its power grid.
• The pump.fun attacker was detained by British law enforcement and later released on bail.
• SEC Policy Director Corzo resigns. The commission is expected to remain skeptical on crypto.
• South Korean digital assets investors transferred KRW 25 trillion to foreign exchanges in 2H 2023.
• Tether holds more US Treasury bonds than Germany, ranking 19th worldwide.

V. Popular projects 

Market Overview

BTC continues to fluctuate at high levels, displaying a strong trend. The high resistance level is $68,000. Once breached and stabilized, it will signal an exit from the current declining trend of $73,777-$56,553. The low support levels are $65,000 and $63,000. In the short term, if a pullback to these support levels occurs, it can serve as a phased increase in positions. However, a drop below $61,000 could indicate further market retreat, prompting a reduction in positions and continued observation.

BTC Spot ETF

Data as of May 17th shows a $12.63 billion net inflow into BTC ETFs, with a daily inflow of $221 million and a turnover of $1.79 billion. ETF net assets represent 4.27% of BTC's market value. Key observations are as follows:

GBTC: The single-day net inflow was $32 million, with a cumulative net outflow of $18 billion, a single-day trading volume of $328 million, and a current net asset value of $19.4 billion;

IBIT: The single-day net inflow was $38 million, with a cumulative net inflow of $16 billion, a single-day trading volume of $972 million, and a current net asset value of $18.51 billion;

FBTC: The single-day net inflow was $99 million, with a cumulative net inflow of $8 billion, a single-day trading volume of $313 million, and a current net asset value of $10.58 billion;

ARKB: The single-day net inflow was $10 million, with a cumulative net inflow of $2 billion, a single-day trading volume of $73.73 million, and a current net asset value of $3.17 billion;

Ethereum Layer2 networks reach $40.35 billion TVL

The Ethereum Layer2 network is showing growth with its total value locked (TVL) at $40.35 billion, a 4.17% rise over the last week.

Leading the pack is Arbitrum One with a TVL of $16.51 billion, noting a 5.24% increase in a week. Following it are OP Mainnet and Base, with a TVL of $7.08 billion and $5.79 billion, showing a 2.06% and 3.75% rise respectively.

Completing the top five are Blast and Mantle, each with a TVL of $2.73 billion and $1.16 billion. They’ve noticed a weekly uptick of 3.79% and 0.89% respectively.

DRIFT rebounds from its low point

DRIFT is a decentralized perpetual protocol built on the Solana network using a dynamic vAMM (DAMM) mechanism. On January 24, 2024, Drift announced that it will also become a member of points-meta, launching its own point system for three months. Currently, Drift's TVL is at $360 million, with continuous growth for over six months. The token DRIFT has a current market value of $66 million, with a valuation of $396 million.

SOMM rebounds

Sommelier Finance is a Layer 1 blockchain developed within the Cosmos SDK using the Tendermint POS consensus mechanism. It features a tailored application chain focusing on enhancing various DeFi protocols on Cosmos. Its premiere product is a customized strategy for Uniswap V3, enabling LP providers to automate position adjustment, thereby maximizing returns - a functionality akin to the V2 experience. Further improvements include protection from impermanent loss, automatic rebalancing, improved liquidity, batch transaction processing via Gravity Bridge (reducing costs), and enhanced capabilities with Cellars. Currently, the protocol's total value locked (TVL) stands at $64.39 million. The primary Ethereum strategy accounts for $38.55 million of the TVL and offers a current APY of 11.12%. Additionally, the principal BTC strategy has a TVL of $14.16 million, offering a current APY of 5.62%.

Omikami rebounds

Omikami is a memecoin on Ethereum, aimed at surpassing Shib and Doge. Its product contains an in-built OMIAI BOT, a text and image generator supported by Open AI and DALL-E, which also supports conversations. Another product is Apollo, which allows users to quickly purchase and analyze tokens within TG. The recent token OMIKAMI shows strong performance with a current market value of $23 million and on-chain liquidity of $666k. 

Significant token unlocks this week 

Tokens worth about $1.3 billion will be unlocked this week, including:

Pyth Network (PYTH) will unlock approximately 2.13 billion tokens on May 20th, accounting for 141.67% of the current circulation, worth about $943 million.

Avalanche (AVAX) will unlock approximately 9.54 million tokens on May 22nd, accounting for 2.49% of the current circulation, worth about $347 million.

SPACE ID (ID) will unlock approximately 18.49 million tokens on May 22nd, accounting for 4.29% of the current circulation, worth about $13.7 million.

On-chain Daily

1. MAGA: MAGA is a memecoin relevant to the American Presidential Election, an acronym for Make America Great Again, which also happens to be President Trump's hat slogan.

Current price: 0.0438 USDT

Historical high: 0.0464 USDT

24-hour change: +0.07%

Current market cap: $18M 

2. HADES: Combining AI and DePIN, HADES provides distributed computing power for CPU and GPU.

Current price: 0.0357 USDT

Historical high: 0.774 USDT

24-hour change: +88.2%

Current market cap: $3.5M 

3. ZACK: ZACK is a memecoin on the Solana network. Zack Morris is a Wall Street character who became famous for his millions earned from meme stocks and short squeezes.

Current price: 0.0394 USDT, which is also its historical high

24-hour change: +177%

Current market cap: $37.8M 

4. SLOTH: SLOTH is the Solana version of memecoin Sloth. It has the peculiarity that every time the price increases by 0.01 USDT, the team will burn 1 million tokens.

Current price: 0.047 USDT

Historical high: 0.056 USDT

24-hour change: +8.5%

Current market cap: $88.6M 

5. BUILD: BUILD is a SocialFi token on Base, originating from the Farcaster social platform to reward Builders. Each person gets three nomination chances daily to give the Builder Score reward to the nominee. Jessie, the founder of Base, has mentioned the project several times on Warpcast and Twitter.

Current price: 0.00027 USDT

Historical high: 0.00038 USDT

24-hour change: +27%

Current market cap: $27.8M 

6. SHIBA: SHIBA is a memecoin on Base. The full name is Shiba Armstrong. It's not just a Shiba memecoin, but also incorporates elements from Coinbase founder Brian Armstrong.

Current price: 0.00729 USDT

Historical high: 0.0112 USDT

24-hour change: +25%

Current market cap: $72.9M 

7. Hog: Hog is a Club on Friend Tech, founded by momind, the second largest holder of FRIEND. On May 9th, the initial price of entrance was 11.56 FRIEND, now it's about 800 FRIEND. After entering this Club, members often receive keys or token airdrops, which are worth about 400~500 USDT.

Current Club Entrance price: 796 FRIEND, this is its historical high. The total Club value is $3.8M.

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