Weekly Yields

Altcoins Bleed: Crypto Weekly Newsletter #056

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Binance.US Halts USD Trading. SEC Charges Coinbase. Ethereum's Roadmap for Scaling. JPMorgan Bullish on Bitcoin Retail Demand. Arbitrum Outage Locks $2B in Crypto.

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Weekly Yields
Danail Velchovski
June 12, 2023
Jun 12

Welcome to the latest edition of Crypto Weekly.

While the SP500 is slowly moving into a bull run (led by just 7 companies), the DeFi world is facing one of its toughest challenges yet. As the regulatory scene heats up, the SEC continues to take legal actions against centralized exchanges following its recent lawsuit against Binance.

Market update:

Bitcoin maintained its $25,500 level with just a +0.27% change from 7 days ago. The overall crypto market, however, is currently bleeding, with Solana (-24.33%), Polygon (-24.09%), Cardano (-21.68%), and BNB (-16.86%) suffering from the increased sell pressure.

Data from Jun 12, 2023, at 18:15 UTC via Messari.io.

Latest news:

1. Binance.US Suspends USD Trading

Binance.US suspended USD deposits, preparing for a pause in fiat (USD) withdrawal channels due to aggressive tactics from the SEC. The company plans to transition to a crypto-only exchange while maintaining a 1:1 ratio for customer assets. USD trading pairs will be delisted, but Tether (USDT) trading pairs will continue.

2. SEC Charges Coinbase After Binance

The SEC has accused Coinbase, the largest U.S. cryptocurrency exchange, of unlawfully operating as an unregistered exchange. The SEC claims that Coinbase’s prime brokerage, exchange, and staking programs violate securities laws and identifies 13 assets listed on the platform as crypto asset securities. This charge against Coinbase follows a similar action taken against Binance, highlighting the SEC’s intensified scrutiny of major crypto exchanges.

3. Crypto.com Suspends Institutional Services In The US

Crypto.com has announced the suspension of its institutional service in the United States, effective from June 21. The decision was driven by limited demand from institutional clients and challenging market conditions. While the institutional offering will be halted, Crypto.com's retail mobile application and platform will continue to operate in the US.

4. Vitalik Buterin Outlines Ethereum’s Roadmap for Layer 2 Scaling

Ethereum co-founder Vitalik Buterin has presented a roadmap for Ethereum, highlighting the importance of Layer 2 scaling, wallet security, and privacy. These components must be addressed together to ensure a global, permissionless experience for users. Layer 2 scaling prevents centralized workarounds, wallet security builds trust in on-chain storage, and privacy protects users’ on-chain activity. The upcoming Dencun upgrade and the rise of Layer 2 networks like ZK rollups contribute to these goals.

5. JPMorgan Bullish on Bitcoin Retail Demand

JPMorgan predicts strong retail demand for Bitcoin as the April 2024 halving event approaches. The halving, which cuts mining rewards, is expected to double Bitcoin’s production cost and create a positive effect. Previous halvings have led to bullish price trends. Institutional demand for Bitcoin has declined due to fraud, volatility, and regulatory concerns. Retail investors see Bitcoin as a hedge, while institutions turn to gold.

6. Coinbase CEO Armstrong Says Not Shutting Down Staking Service

Coinbase CEO Brian Armstrong confirmed that the exchange would continue its crypto-staking service despite ongoing lawsuits. The service contributes approximately 3% of Coinbase’s net revenue. The company views the staking service as a means to diversify its revenue base, which heavily relies on trading fees. Armstrong emphasized that the company’s funds are audited and backed one-to-one, ensuring their security.

7. Arbitrum Outage Leaves $2.2 Billion in Crypto Locked

Arbitrum, the Ethereum Layer 2 scaling solution, faced a two-hour outage due to a software bug affecting its sequencer. Over $2.2 billion in crypto was left locked inside dapps running on the platform. The incident caused delays in processing transactions on the Ethereum mainnet. Despite previous outages, developers stated that the system was functioning as intended. The incident underscores the reliance on centralized sequencers in layer-2 solutions and the need for decentralization efforts.

Other news

DeFi weekly stats:

Overall (Single Exposure Filter)
Tangible’s USDR pool on Polygon became the leader by 30d average APY with 17.10%, followed by Convex’s CVXCRV at 13.67%.

The top 5 Yield Pools By 30d Average APY (TVL>$30M) as of Jun 12, 2023. Data: DefiLlama

Top Stablecoin Yield Pools (Single Exposure Filter)
In the stablecoin category, Credix’s USDC pool at 13.30% and Conic’s USDC one at 10.19% are the challengers with a combined TVL of over $125M.

The top 5 Stablecoin Yield Pools By 30d Average APY (TVL>$30M) as of Jun 12, 2023. Data: DefiLlama

Top ETH Liquid Staking Derivatives Pools
After dropping by nearly $800M in TVL, Lido’s STETH pool dropped to 5th place in the ETH LSDs category with a 30d Avg APY of 4.91%.

The top 5 ETH LSD Pools By 30d Average APY (TVL>$30M) as of Jun 12, 2023. Data: DefiLlama

One Click Crypto updates

We are launching on Product Hunt

I am thrilled to share that One Click Crypto is launching on Product Hunt in 4 days. If you want to follow our journey there you can do so from this link: https://www.producthunt.com/products/one-click-crypto-ai-defi

Final Word

This week, the crypto market faces several important events and data releases that could drive volatility. Here’s what to watch for:

  • Tuesday: US CPI data, Hinman documents becoming public, SEC’s Coinbase rulemaking response, and the Binance US hearing.
  • Wednesday: US PPI data and the FOMC meeting.
  • Thursday: US jobless claims and retail sales data.
Max Yampolsky,
CEO at One Click Crypto
ir@oneclick.fi

DISCLAIMER:
This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.

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Danail Velchovski

Danail masterfully combines his deep knowledge of blockchain technology and his strong writing skills to deliver crisp, comprehensive content. With his early immersion in the web3 domain, he navigates the complexities of this revolutionary technology with ease, turning intricate concepts into engaging, digestible pieces. His research acumen and keen insight into the rapidly evolving world of decentralized networks make him an invaluable asset in educating audiences about web3's potential and its ever-evolving landscape.

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