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.
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.
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.
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%.
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.
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%.
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
This week, the crypto market faces several important events and data releases that could drive volatility. Here’s what to watch for:
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.
We regularly prepare insightful reports and case studies about crypto trading and the blockchain industry.
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