Table of Contents
Top Stories This Week
VanEck and 21Shares Send Amended Ether ETF Filings to SEC
Asset managers VanEck and 21Shares amended their S-1 forms for their prospective Ether exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC) on July 8. Although a specific launch date wasn’t disclosed, many industry experts anticipate a July debut for these Ethereum ETFs. This development indicates the growing interest and confidence in Ethereum as a viable asset for traditional financial products.
- Background: ETFs are investment funds traded on stock exchanges, similar to stocks. Ether ETFs allow investors to gain exposure to Ethereum without directly purchasing and managing the cryptocurrency.
- Market Impact: These filings suggest a significant step toward mainstream adoption of Ethereum-related financial products, which could potentially boost Ethereum’s market value and increase its integration into traditional finance frameworks.
Lionel Messi Promotes Solana Memecoin ‘WaterCoin’ on Instagram
Soccer legend Lionel Messi has stirred the digital asset market by promoting WaterCoin on his Instagram stories. WaterCoin, based on the Solana blockchain, is marketed as a charity initiative focusing on water conservation. It aspires to evolve into a full-fledged ecological coin. However, it’s crucial to exercise caution, as investments in memecoins can be highly lucrative but often come with substantial risks.
- Investor Precaution: Prospective investors should always conduct thorough research before venturing into memecoins, as these assets are known for their volatility and speculative nature.
Significant Drop in Bitcoin Transfer Fees to 2020 Levels
On July 7, the average Bitcoin transfer fee fell to $38.69, reaching lows not seen since 2020. This metric, derived by dividing miner profits by the total number of transactions posted to the blockchain, indicates a reduction in network congestion and transaction costs. Additionally, data from CryptoQuant shows that the Bitcoin hashrate drawdown reached levels last seen in December 2022, suggesting a trend towards less intensive mining operations.
- Implications: Lower fees may encourage more transactions, potentially increasing the number of active users and improving Bitcoin’s utility as a medium of exchange.
Goldman Sachs to Launch Three New Tokenization Products This Year
Goldman Sachs is set to introduce three tokenized products aimed at the U.S. and European markets. Matthew McDermot, Goldman’s global head of digital assets, noted the bank’s plans to create an institutionally focused marketplace for the exchange of tokenized real-world assets (RWA). Despite the scarcity of specific details, this move underscores the investment bank’s commitment to expanding its footprint in the burgeoning RWA tokenization industry.
- Current Trends: This aligns with a broader institutional trend towards RWA tokenization, which involves converting rights to an asset into a digital token on a blockchain.
FDIC Nominee Goldsmith Romero Supports Banks Custodying Digital Assets
During a Senate nomination hearing on July 11, Federal Deposit Insurance Corporation (FDIC) chair nominee Christy Goldsmith Romero voiced her support for allowing banks to custody digital assets. Her stance marks a significant moment as it aligns with the growing acceptance of cryptocurrencies within the banking sector.
- Regulatory Environment: Romero’s position indicates potential shifts in regulatory approaches to digital assets, potentially paving the way for more banks to offer crypto custody services.
Winners and Losers
Market Overview
At the close of this week, Bitcoin (BTC) stands at $58,192, Ethereum (ETH) at $3,132, and XRP at $0.46, with the total market capitalization listed at $2.15 trillion according to CoinMarketCap.
Top Gainers
- Notcoin (NOT): +45.33%
- Mantra (OM): +37.23%
- Celestia (TIA): +30.36%
Top Losers
- Dogwifhat (WIF): -19.71%
- Brett (Based) (BRETT): -9.33%
- Flare (FLR): -7.33%
For the latest insights on crypto prices, refer to Cointelegraph’s market analysis.
Most Memorable Quotations
"Ethereum has unique strengths as a robust base layer, including some that are not even held by Bitcoin."
- Vitalik Buterin, Co-founder of Ethereum
“Nothing gets the SEC to act faster than shilling a memecoin.”
- David Chung, Founding Director at Creo Legal
"AI and memecoins captured the spotlight [in 2024], pushing GameFi down the pecking order."
- Russell Bennett, CEO of Metacade
Prediction of the Week
Bitcoin Price Faces Potential ‘Summer of 2021’ Style Correction
According to CryptoQuant, Bitcoin might be poised for a correction reminiscent of the summer of 2021. Despite ongoing accumulation by whales, various metrics suggest a downturn. The Profit & Loss metric shows Bitcoin hovering close to its 365-day moving average. The Bull-Bear indicator indicates bears might be gaining control, hinting at a steeper market correction.
Current Observations
- Bitcoin’s price trades near or below the 200-day simple moving average, reflecting ongoing price weaknesses.
- Selling pressures from the German government’s holdings and Mt. Gox reimbursement are additional concerns.
FUD of the Week
Paxful Co-Founder Schaback Faces 5 Years Jail, Admits AML Failure
Artur Schaback, Paxful’s co-founder, and former CTO could face up to five years in prison after pleading guilty to failing Anti-Money Laundering (AML) compliance and Know Your Customer (KYC) implementation. Schaback has agreed to pay $5 million in fines and step down from Paxful’s board.
German Government’s $342M BTC Sell-Off Raises Volatility Fears
The German government’s plan to sell an additional $342 million in Bitcoin is adding pressure to the already volatile market. Coupled with the anticipated Mt. Gox reimbursement, this could trigger more market fluctuations as participants brace for potential sell-offs.
Compound Finance Website Potentially Breached
On July 11, 2024, blockchain detective ZackXBT warned that Compound Finance’s website may have been compromised. Users reported being redirected to phishing sites, posing significant security risks. Compound Finance has acknowledged the breach and advised users to avoid the site for now.
Top Magazine Pieces of the Week
Meet the Hackers Who Can Help Get Your Crypto Life Savings Back
Lost your crypto password? Meet the experts who specialize in recovering lost digital assets.
Earn Bitcoin for Eating Tickets, Immutable Says ‘Big Studios Are Showing Up’ — Web3 Gamer
Robbie Ferguson from Immutable discusses the exciting developments in the Web3 ecosystem, including Notcoin’s price surge.
Decade After Ethereum ICO: Blockchain Forensics End Double-Spending Debate
Cointelegraph and Gray Wolf’s investigation debunk the myth of double-spending during Ethereum’s 2014 Initial Coin Offering.
FAQs
What is an Ether ETF?
An Ether ETF is an Ethereum-based exchange-traded fund that allows investors to gain exposure to Ethereum’s price movements without directly owning the cryptocurrency.
Why are Bitcoin transfer fees significant?
Bitcoin transfer fees reflect the cost of processing transactions on the Bitcoin network. Lower fees can make Bitcoin more attractive for daily transactions.
Who can benefit from Goldman Sachs’ tokenized products?
Institutional investors interested in tokenized real-world assets (RWA) can benefit from Goldman Sachs’ upcoming marketplace for token exchange.
What are the risks associated with memecoins like WaterCoin?
Investments in memecoins carry high risks due to their volatile nature and speculative market behavior. It’s crucial to research thoroughly before investing.
How does the German government’s Bitcoin sell-off affect the market?
The sell-off can introduce additional volatility and downward pressure on Bitcoin prices, influencing market dynamics.
This comprehensive article aimed to provide a detailed exploration of the past week’s top stories in the cryptocurrency market, supported by insights, examples, and qualitative evaluations.