After an interesting first half of the year, the crypto market continues to regain momentum despite significant drawdowns. July 2024 is off to a fantastic start, showcasing several positive developments across several fronts.
This Week’s Crypto News
The emergence of Circle’s USDC as a leader in compliant stablecoins and the anticipated launch of a spot Ethereum ETF (Exchange Traded Fund) have enhanced optimism among several crypto communities. Moreover, political endorsements ahead of the US presidential elections promise to ease regulatory pressures, which is a positive note for many crypto lovers and investors.
Today’s news roundup focuses on regulatory and market advancements, political support, shifts in the gaming sector, and more.
Circle’s USDC Emerges as EU’s Top Compliant Stablecoin
Circle’s USDC stablecoin has seen its trading volume soar to $23 billion, becoming a major beneficiary of the EU’s push for compliant stablecoins under the new MiCA (Markets in Crypto Assets) regulation.
Rising Demand for USDC
French blockchain analytics firm Kaiko reports that USDC is leading the pack among regulated stablecoins. With the MiCA regulation implemented on June 30, 2024, market makers favor compliant stablecoins over non-compliant ones.
This shift has seen USDC gain momentum as prominent exchanges like Binance, Bitstamp, Kraken, and OKX delist non-compliant stablecoins, including Tether’s USDT, for European users.
Kaiko’s report further shows that non-compliant stablecoins account for 88% of total stablecoin volume. This trend is expected to change with delisting operations in full swing, thus increasing USDC’s popularity.
As a result, USDC’s weekly trading volume hit $23 billion, up from $9 billion in 2023 and $5 billion in 2022. This growth has propelled USDC’s market share to an all-time high.
Major CEX Drives USDC’s Growth
Centralized exchanges (CEXs) have significantly boosted USDC volumes over the past year. Binance’s decision to re-list USDC in March 2023 saw the stablecoin’s market share on CEXs jump from an average of 60% to over 90%.
USDC’s growing demand is also linked to its use in settling perpetual futures contracts. On Binance, the proportion of Bitcoin perpetual contracts denominated in USDC rose from 0.3% to 3.6% since January 2024. For Ethereum perpetual contracts, the volume grew from 1% to over 6.8% in the same period.
Spot Ethereum ETF Launch Expected on July 18, Says Bloomberg Analyst
Bloomberg ETF analyst Eric Balchunas has predicted that July 18 will be the likely launch date for the much-anticipated spot Ethereum ETF. This comes after the SEC (Security and Exchange Commission) issued amendments requiring companies to update their registration statements and applications.
Recent Filings
On July 8, 2024, several asset managers made significant filings for their spot Ethereum ETFs. VanEck led the way by updating its registration statement and renaming its product The VanEck Ethereum Trust.
This was quickly followed by similar filings from 21Shares, Grayscale, Franklin Templeton, Fidelity, and BlackRock. Despite these updates, none of the filings disclosed the planned fees for the ETFs.
Notably, Balchunas mentioned that the SEC is yet to mandate this information, but a final round of updates, including fee details, is expected before the July 18, 2024 launch.
Details of Amendments
VanEck’s filing removed specific regulatory language about custody, particularly how Ethereum withdrawals would be managed through the fund’s chosen custodian.
Similarly, 21Shares included new disclosure language reflecting the SEC’s regulatory efforts and minor details. Grayscale’s update for its “mini” Ethereum ETF introduced a section clarifying that none of the Ethereum in the product will be staked.
The amendments align with recent compliance trends within crypto, emphasizing the SEC’s concerns about investor protection on crypto exchanges. Notably, None of the applications include plans for Ethereum staking, and some have proactively removed related language from their proposals.
The final updates, including fee details, will signal the go-ahead as we approach the anticipated launch date. Stay tuned for more developments as the launch date draws near.
Republican Party Pledges to “End Crypto Crackdown”
On the political side of crypto, the Republican Party has officially positioned itself as pro-crypto, aligning with their Bitcoin-bullish leader, Donald Trump.
A New Grand Old Party Platform at Hand
The Republican National Committee released its 2024 platform, echoing Trump’s “America First” policies. A key part of the platform is dedicated to protecting Bitcoin and crypto, reflecting Trump’s strong support for the industry.
In chapter 3 of the platform, Republicans pledge to “build the greatest economy in history” by championing innovation. This includes ending the Democrats’ “unlawful crypto crackdown” and opposing the creation of a Central Bank Digital Currency (CBDC).
This stance follows the recent partisan passage of Congressman Tom Emmer’s anti-CBDC bill, which received strong Republican support but little Democrat backing. The GOP also promises to defend citizens’ rights to mine Bitcoin, self-custody their crypto, and ensure transactions are free from government surveillance and control.
Supporting Trump and Innovation
This platform marks the GOP’s first official endorsement of crypto as part of its agenda, aligning with Trump’s sector support. Trump has vowed to oppose anti-crypto politicians like Senator Elizabeth Warren and free Ross Ulbricht, founder of the Silk Road marketplace.
The Republicans also aim to protect innovation in artificial intelligence (AI). The platform criticizes President Joe Biden’s executive order on AI, promising to replace it with policies promoting free speech and human flourishing in AI development.
Mt. Gox Begins Bitcoin Repayments: What it Means
After a decade, Mt. Gox, the infamous Japanese Bitcoin exchange, has started repaying its creditors in Bitcoin and Bitcoin cash. This announcement comes after the exchange collapsed into bankruptcy in 2014 following a massive hack that resulted in the loss of up to 950,000 bitcoins.
Repayment Process
The trustee for Mt. Gox stated that initial payments are being made to some creditors. Further repayments will follow once conditions like account verification and subscriptions to designated digital asset exchanges are met. This long-awaited move has significant implications for the crypto market.
Impact on Bitcoin Prices
Bitcoin’s price has dropped nearly 15% since the start of July 2024. Crypto analysts expect that the influx of bitcoins from these repayments could lead to more heavy selling, although this is predicted to be short-lived.
John Glover, chief investment officer at Ledn, suggests many creditors will cash out their gains, potentially leading to significant sales. Despite the potential for increased selling pressure, experts believe the market can handle it. With 140,000 bitcoins to be repaid, accounting for roughly 0.7% of the total bitcoin in circulation, there’s enough liquidity to absorb these sales.
Long-Term Outlook
While some volatility is expected in the short term, analysts predict a price rebound from August onwards. They believe that the market will stabilize as the selling pressure eases.
Bitcoin Rebounds Toward $60K, but Volatility Remains
Bitcoin (BTC) edges near the $60,000 region as it recovers from last week’s dip. The broader cryptocurrency market also showed strength, with notable gains seen in Solana (SOL), Filecoin (FIL), and Avalanche (AVAX).
Expert Insights
Despite the positive momentum, analysts caution that this rally may be temporary. Markus Thielen, founder of 10x Research, noted, “While BTC could touch $60,000, we foresee only a short-term bullish trend. The $55,000-$56,000 range is forming a technical base, but we expect another decline to the low $50,000 range.”
Vetle Lunde, a senior analyst at K33 Research, pointed out that Bitcoin’s third quarter is historically weak. The German state of Saxony selling amplifies this period’s challenges in seized assets and the distribution of Mt. Gox refunds. He further explained that the market will need to absorb 75,000 to 118,000 BTC from these sources, valued at $4.3 billion to $6.8 billion.
While Bitcoin’s recent rebound is encouraging, market analysts advise caution due to ongoing selling pressures and seasonal trends.
Tap-to-Earn: The New Era of Blockchain Gaming
Play-to-earn (P2E) games had short-lived hype but failed to achieve mass adoption. The new trend—tap-to-earn—offers a more accessible and engaging way for crypto enthusiasts to earn.
Telegram Mini Apps and Viral Success Stories
Telegram Mini Apps is a major driver of this adoption, with tap-to-earn games leading the charge. Games like Notcoin have attracted over 40 million players since January 2024, with 11.5 million claiming Notcoin ($NOT) tokens after listing on major exchanges. Their strategy of starting with off-chain gameplay to avoid user friction and introducing token airdrops has proven highly effective.
What makes these games so successful? The simplicity of the gameplay, such as clicking and completing easy tasks, and the promise of community airdrops. A prime example is Notcoin’s token distribution strategy, where 90% of the supply went to the community. Social elements, like inviting friends and competing in squads, also play a crucial role.
In the past three months, Hamster Kombat has turned 210 million people into CEOs of a simulated crypto exchange. TapSwap boasts 50 million users, and Yescoin surpassed 26 million active players in under a month. These numbers, comparable to traditional Web2 games, mark significant progress in Web3 adoption within Telegram’s ecosystem.
Beyond Gaming
The tap-to-earn approach is extending beyond games. For instance, Blum’s hybrid crypto exchange used a simple clicker mechanism to attract 30 million users before launching its core product. This trend highlights tap-to-earn as a powerful onboarding tool and revenue source.
While some question this trend’s sustainability, early successes indicate strong potential. As users seek apps that reward their time and effort, the next big hit in the industry might be just a few taps away.
Final Thoughts
The cryptocurrency market’s outlook for July has spurred positive discussions and optimism among enthusiasts and investors. With cryptos gaining support from the world’s political elements and new trends emerging, we can expect bullish momentum in this second half of the year.
What are your thoughts on this week’s crypto news? Did any development stand out? Leave a comment below and let us know!
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How does the EU’s MiCA regulation affect stablecoins?
The MiCA regulation, implemented in June 2024, aims to ensure that stablecoins like USDC comply with EU standards. This will promote their use and increase trading volumes while reducing the presence of non-compliant stablecoins.
What is a spot Ethereum ETF, and why is it significant?
A spot Ethereum ETF allows investors to buy and sell shares representing Ethereum without directly owning the asset. Its launch is significant as it offers a regulated investment vehicle, which potentially attracts more institutional investors.
How does the Republican party’s stance on crypto impact the market?
The Republican party’s promises to end regulatory crackdowns. This could create a more favorable environment for crypto businesses and investors and boost market confidence.
What is the significance of Mt. Gox’s Bitcoin repayments?
Mt. Gox’s Bitcoin repayment to its creditors marks the resolution of a long-standing bankruptcy case. While increased selling pressure may cause short-term market volatility, it’s a step toward market stability.
How does the tap-to-earn model differ from play-to-earn in crypto gaming?
The tap-to-earn model simplifies earning crypto by requiring minimal user interaction, such as tapping or clicking. This contrasts with play-to-earn, which involves complex gaming activities.
Zypto blogs are definitely becoming the go to for everything crypto and the blockchain the most interesting and informative crypto related topics
Yeah i agree, it gives a wide range of news but doesnt bombared you with info. I have been checking back more regular.
Not heard of these tap to earn games, especially not on telegram. Going to investigate. I imagine the takings are minimal but it may kill some time at work.
Adding to this, is there any people recomend? Might try the hamster kombat listed above.