Golden Weekly is a weekly blockchain industry summary column launched by Jinse Finance, covering the week's key news, mining information, project dynamics, technological progress and other industry dynamics. This article is one of the news weekly, taking you through this week's blockchain industry events.
Headlines
▌Nvidia becomes the world's most valuable stock
Nvidia rose more than 3% during the day, with a total market value of US$3.33 trillion, surpassing Microsoft and Apple to become the world's highest-valued stock.
▌Ethereum EIP-7702 proposal faces challenges
EIP-7702, proposed by Ethereum co-founder Vitalik Buterin, is included in the next upgrade "Pectra", but developers have not yet finalized the details. The proposal allows externally owned accounts (EOAs) to temporarily act as smart contracts in a single transaction, enhancing flexibility and security.
At a recent core developer meeting, the integration challenges and potential risks of EIP-7702 were discussed. Developers unanimously agreed to address these issues before the next meeting on July 4 to ensure its timely implementation into the development testnet. Ethereum's next major upgrade is expected to go live between November 2024 and early 2025.
▌Total market value of cryptocurrencies exceeds $2.5 trillion
Data shows that the total market value of cryptocurrencies has exceeded 2.5 trillion US dollars, currently at 2.568 trillion US dollars, with a 24-hour increase of 0.7% and a 24-hour trading volume of 45.7863 billion US dollars. Currently, BTC has a market share of 51.1% and ETH has a market share of 16.8%.
▌Rune 's market value fell below the $1.9 billion mark
According to Geniidata data, Rune's market value fell to US$1.88 billion, a drop of 0.02%. Today, Rune's total transaction volume fell to US$5.63 million, a decrease of 12.92% from yesterday. In addition, the unit price of Rune DOG•GO•TO•THE•MOON was US$0.0073, and the daily trading volume fell to US$741,600, and its market value fell to US$711 million.
policy
▌El Salvador government proposes to include Bitcoin and other cryptocurrencies in its investment banking industry
The government of El Salvador has proposed an initiative to accelerate the inclusion of Bitcoin and other cryptocurrencies in its investment banking industry. Banking law reforms submitted to the National Congress will allow private investors to form banks that provide Bitcoin and stablecoin services to sophisticated investors.
If passed, the initiative will allow the creation of these banks that can provide different services, including economic risk management, purchase of financial products, investment management, hedging and other financial derivatives. These services will support any legal currency in El Salvador, such as the US dollar and Bitcoin. In addition, the bill explicitly supports stablecoin-based instruments, opening the door to crypto-based investment tools. Nevertheless, the requirements for the establishment of private investment banks are high: these companies must have $50 million in capital at the time of their establishment.
Additionally, the banks will not serve all Salvadorans, as their services will be focused on "professional investors," who must prove they have at least $250,000 in assets and pass a knowledge test for the bank, or prove they have $500,000 in assets.
▌ Cumberland DRW obtains BitLicense, a virtual currency license, from the New York Department of Financial Services
Digital asset trader and liquidity provider Cumberland DRW said on Monday that the New York State Department of Financial Services (NYDFS) granted its New York entity a virtual currency license, known as a BitLicense.
▌Opinion : Biden’s nomination of two CFTC commissioners may affect the agency’s cryptocurrency policy
Investment bank TD Cowen said President Biden’s nomination of two commissioners to the U.S. Commodity Futures Trading Commission (CFTC) could influence the agency’s future approach to cryptocurrencies.
Last week, Biden nominated CFTC Commissioner Christy Goldsmith Romero to head the Federal Deposit Insurance Corporation (FDIC) and Kristin Johnson to serve as Assistant Secretary for Financial Institutions at the Treasury Department. Both commissioners pushed for the agency to issue rules or guidelines to protect consumers and address conflicts of interest in cryptocurrencies.
If Romero and Johnson are successfully appointed to their new positions, the CFTC will be left with Democratic Chairman Rostin Behnam and Republican commissioners Caroline Pham and Summer Mersinger, giving the Republicans a majority.
TD Cowen said in a report on Monday that given the change, the Biden administration will quickly fill the two vacancies. However, replacements may not be confirmed until the fall.
▌The issuer of the spot Ethereum ETF is responding to the comments of the US SEC and is expected to submit a reply this week
Potential spot Ethereum ETF issuers are responding to comments on the S-1 form received from the U.S. Securities and Exchange Commission (SEC) last week, and plan to submit responses by Friday this week. Sources described the comments as "minor" and "reasonable" and expect approval soon. In May, after the issuer's 19b-4 form was approved, they submitted a preliminary draft of the S-1 form, but it took the SEC two weeks to provide feedback. Eric Balchunas, senior ETF analyst at Bloomberg, expects the product to go live in early July. SEC Chairman Gary Gensler said the approval time depends on how quickly the issuer responds to feedback. Analysts predict that the flow of Ethereum ETFs could reach 20% of that of Bitcoin ETFs.
▌ Bitwise submits revised S-1 filing for its spot Ethereum ETF to the US SEC
Bloomberg analyst James Seyffart said on the X platform that Bitwise has submitted a revised S-1 document for its spot Ethereum ETF to the US SEC, which will include changes after the SEC's first round of comments. It is not clear whether more rounds of comments are needed, and the cost of the product has not yet been disclosed. The S-1 document contains some new details, including a description of a $2.5 million seed investment.
“Based on this filing, there is no way to know when these products will launch. They may not require any additional updates, and may need to be adjusted. But they need final approval from the SEC, and the launch timing depends largely on the SEC. Eric Balchunas and I believe they should be launched before July 4th,” the analyst said.
▌Nigerian High Court dismisses Binance executive detention lawsuit
The Nigerian High Court has dismissed a lawsuit filed by Binance regional manager Nadeem Anjarwalla for lack of diligence in prosecution. Anjarwalla alleged that the Nigerian government violated his fundamental rights when it detained him and seized his passport. Anjarwalla's lawyers applied to withdraw their representation so that he could hire new counsel. Anjarwalla has now fled to Kenya and failed to appear in court. Nigeria is seeking his extradition. Meanwhile, Binance's head of financial crime compliance, Tigran Gambaryan, has also been detained on similar charges and filed a separate lawsuit against the NSA and EFCC, which is scheduled to go to court on July 9.
Blockchain Applications
▌ Rodeo, the new social network to be launched by Foundation founders, is powered by the Farcaster social graph
Kayvon Tehranian, founder and CEO of NFT market Foundation, posted on social media, “A new social network called Rodeo is being developed. It is designed to be fun, simple and very social. It is currently only available by invitation.”
Farcaster co-founder Dan Romero said that the upcoming new social network (Rodeo) is supported by Farcaster's permissionless and decentralized social graph.
AO releases "AI on AO" plan and launches open source large language model on the chain
The AO ecosystem released the "AI on AO" plan and launched an open source large language model (LLMs) on the chain, aiming to bring any AI model (not just LLMs) to the chain. Based on the Apus Network, using Arweave's permanent on-chain storage, a decentralized, trustless GPU network is built, dedicated to providing reliable, efficient and low-cost computing power for AI training and reasoning. AI data on AO can be uploaded to Arweave's model through ArDrive.
▌ Sui developers release preview of 'Walrus' data storage platform
Mysten Labs, the lead developer of the Sui blockchain, has released a developer preview of "Walrus," a new decentralized data storage and data availability (DA) platform. According to the project documentation, "Walrus" offers two main advantages.
▌ Polkadot co-founder proposes Plaza system to enhance network scalability
Polkadot co-founder Rob Habermeier proposed the Plaza system chain, which aims to integrate parachain functions and improve network scalability. Plaza will integrate functions such as asset issuance, smart contracts, pledges, cross-chain bridging and near-zero fees into one chain to simplify operations for users and developers. Habermeier believes that Plaza will become the center of the Polkadot network, promote the development of the entire ecosystem, and herald larger-scale expansion in the future.
▌ Coinbase and CoinSwitch launched the "OnChain India" plan, intending to use Base to support the Indian on-chain ecosystem
Coinbase has launched the "OnChain India" program with Levitate Labs and CoinSwitch, intending to use Base to support the Indian on-chain ecosystem. The program includes enhancing the Indian Web3 startup ecosystem through grants and funds, ecosystem partnerships, community activities, etc. It is reported that the "OnChain India" plan will include about 50 projects by 2025, and the main initiatives and activities include providing funds and grants, such as the basic grant program and cooperative venture capital companies, as well as community activities.
io.net and OpSec collaborate to develop proof-of-concept for node deployment
Decentralized computing network io.net announced a strategic partnership with OpSec to strengthen cloud computing services. It is reported that this cooperation aims to combine io.net's decentralized GPU resources with OpSec's innovative cloud infrastructure to simplify and improve cloud operations for developers and enterprises. The two parties will also develop a proof of concept to demonstrate how to efficiently deploy OpSec's nodes in io.net's distributed network.
Cryptocurrency
▌ HectorDAO filed for Chapter 15 bankruptcy protection due to tens of millions of dollars in losses
The decentralized autonomous organization HectorDAO filed for Chapter 15 bankruptcy protection in the United States due to the collapse of the Terra ecosystem and multiple market crashes in 2022, as well as financial losses caused by hacker attacks. According to the documents, HectorDAO suffered a loss of $16.4 million and suffered a $2.7 million hacker attack in 2023. The move led to Interpath Advisory being appointed as an expert in bankruptcy management and restructuring to investigate the possibility of internal hacking by former managers. The Chapter 15 bankruptcy filing allows HectorDAO to handle legal matters involving its international investors in the US court system.
▌ IBIT's trading volume yesterday was US$555 million
According to HODL15Capital's monitoring, data from the US spot Bitcoin ETF yesterday (June 20) showed that IBIT's trading volume was US$555 million, FBTC's trading volume was US$205 million, GBTC's trading volume was US$199 million, ARKB's trading volume was US$83 million, and BITB's trading volume was US$65 million.
▌ Azuki hires former Hollywood executive Steve Chung as COO
NFT project Azuki announced on Thursday that it has hired veteran entertainment executive Steve Chung as chief operating officer. Chung aims to use his expertise in Hollywood and Silicon Valley to expand Azuki's fan base and revenue as the company seeks to expand beyond digital collectibles. Prior to joining Azuki, Chung worked at Fox and served as chief global officer of South Korean entertainment giant CJ ENM Entertainment.
▌ FTX victims seek criminal forfeiture of company assets
In the criminal case against former FTX CEO Sam Bankman-Fried (SBF), who is currently serving a 25-year sentence in federal prison, different groups have made competing claims to some or all of the assets involved.
In a filing with the U.S. District Court for the Southern District of New York, lawyers representing FTX debtors and the company's Bahamian entity, FTX Digital Markets, argued that they have "preemptive rights" to assets that can be used to satisfy the court's $11 billion judgment against SBF. The legal team claims that FTX's aircraft, funds held at Signature Bank, Farmington State Bank, and Silvergate Bank, the sale of Robinhood stock, and political donations associated with former FTX executives should not be used to apply to SBF's judgment, but rather to victims of the defunct exchange.
“The preliminary forfeiture order is modified to provide for the return of specified property to the Debtors and/or FTX Digital, which will benefit all creditors and stakeholders in the Debtors’ Chapter 11 bankruptcy proceedings and FTX Digital’s liquidation in the Bahamas, including the victims of SBF’s crimes,” the filing said.
▌JPMorgan Chase questions sustainability of $12 billion crypto inflows
JPMorgan analysts raised questions about the sustainability of the $12 billion inflows into crypto assets so far this year. They noted that while much of the money has moved through spot Bitcoin exchange-traded funds (ETFs), they are skeptical about the sustainability of inflows given the current high price of Bitcoin relative to production costs and gold. While annualized net inflows could reach $26 billion based on this trend, analysts remain skeptical, consistent with their early concerns about the impact of spot Bitcoin ETF approval on attracting new capital into the crypto space.
▌ 21Shares: Lack of pledge for Ethereum ETF will not suppress strong institutional demand
Ophelia Snyder, co-founder of digital asset manager 21Shares, said institutional investors are unlikely to worry that a U.S. spot ether (ETH) exchange-traded fund (ETF) won’t provide additional returns by staking the underlying tokens, even though retail investors are eager to have that functionality built in. This difference in demand means there is a potential business case for providers to list separate, distinct products to cater to both camps.
“If you want to get institutional investors involved, you need to start by making things simple,” Snyder said. Non-collateralized products are “more palatable” to institutional investors, even if they are less popular among retail investors.
▌Opinion : Bitcoin will see mass adoption, mainly thanks to Bitcoin ETF
Bitcoin research analyst Tuur Demeester predicts that Bitcoin will see mass adoption due to ETF approval. He believes that this will provide easy access to Bitcoin for the global banked population and will hopefully enable institutions to include Bitcoin in their balance sheets.
Demeester stressed that Bitcoin's prominent position in the global market, especially in the U.S. financial system, has made it a global focus due to its well-organized financial products and deep liquidity. He expects Bitcoin to continue to attract adoption by public companies, driving its popularity around the world. Although he is cautious about the possible short-term impact of global liquidity, he is confident in Bitcoin's long-term prospects.
▌Bitcoin market dominance hits new high since April 2021
According to data from The Block, Bitcoin's market dominance soared to 52.92% over the weekend, a new high since April 2021. This growth was mainly driven by the approval of spot ETFs, despite the overall market volatility. Bitcoin's market dominance has remained between 44% and 53% over the past year. However, recent news that the Federal Reserve only expects one interest rate cut in 2024 has caused Bitcoin to fall 5.3% in the past week. In contrast, many small-cap tokens such as FLOKI, STRK, IMX and FIL have fallen by double digits in the past seven days. Despite this, Bitcoin is seen as a lower-risk asset due to its high regulatory recognition and institutional adoption. As the market rebounds, Bitcoin's dominance has begun to decline.
▌ Mechanism Capital: Spot Ethereum ETF may be launched one to two quarters later
Andrew Kang, co-founder and partner of crypto venture capital firm Mechanism Capital, wrote that he believes the launch of the spot Ethereum ETF may be delayed by one to two quarters.
▌At least 40 billionaires in the world hold BTC
According to HODL15Capital statistics, there are at least 40 billionaires in the world who hold Bitcoin (BTC).
Important economic developments
▌The probability of the Federal Reserve keeping interest rates unchanged in August is 88.6%
According to CME's "Fed Watch", the probability of the Fed keeping interest rates unchanged in August is 88.6%, and the probability of a 25 basis point rate cut is 11.4%. The probability of the Fed keeping interest rates unchanged in September is 34.6%, the probability of a cumulative 25 basis point rate cut is 58.5%, and the probability of a cumulative 50 basis point rate cut is 6.9%.
▌Fed voter: interest rate cuts can only be made after further clarification of the inflation path
Richmond Fed President Barkin said the Fed needs more clarity on the path of inflation before it can cut interest rates. Barkin, who votes on monetary policy this year, said policy is now well positioned, adding that the Fed has the power it needs to tame inflation. Asked whether the Fed could cut rates once and keep them there, Barkin said that depended on the economic data. If the current situation persists, now may not be the best time to provide guidance on the timeline for subsequent policy adjustments. "There are times when we want to provide forward guidance and we do that," he said. "This doesn't seem to me to be the time for that. It doesn't feel like the time to be giving forward guidance. Let's see where the data takes us."
▌Fed 's Goolsbee: If we see more good inflation reports, we can cut interest rates
Fed's Goolsbee said that if more good inflation reports are seen, interest rates can be cut; inflation does not need to reach 2% to cut interest rates; the Fed's 2% inflation target is a "sacred oath."
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