Quick Take

• Bitcoin monthly active addresses dropped to lowest point since 2019; U.S. SEC requested S-1 resubmissions of U.S. Spot Ethereum ETFs by 8 July; VanEck and 21Shares filed for Solana ETFs with the U.S. SEC.

• U.S. Spot Bitcoin ETFs had a third consecutive week of net outflows (past five trading days) totaling US$37 million last week, compared to $544 million net outflows the week before. Grayscale Bitcoin Trust ETF’s (GBTC) weekly net outflow settled at $155 million. 

• On the macro side, the U.S. Personal Consumption Expenditures Price Index (PCE) was flat in May month-on-month, and up 2.6% on a year-on-year basis. This is the first time in six months in which the PCE inflation remained unchanged on a monthly basis. Latest CME FedWatch Tool shows a 63% probability for a September rate cut. 

• Notable updates: Near (NEAR) is expected to upgrade to Protocol version 67; Tether (USDT) will halt minting of USDT on EOS and Algorand starting 24 June 2024; Crypto.com App listed Popcat (POPCAT), Ponke (PONKE), and Neuron (NRN).

• Notable events in the coming week: Speeches by ECB President Lagarde and Fed Chairman Powell, U.S. FOMC Minutes and Nonfarm Payrolls.

Weekly Market Index

Price and volume indices decreased by -3.11% and -4.21% last week, while the volatility index increased by +86.81%. Volatility changes were led by SOL (+110.97%), which coincided with two filings from VanEck and 21Shares for Solana ETFs with the U.S. SEC.

Check price

Chart of the Week

Bitcoin monthly active addresses dropped to their lowest since 2019, recording 11.7 million monthly active addresses in June 2024, representing a 6% month-on-month and 34% year-on-year drop. A decline in active addresses generally indicates a lack of trading activities among Bitcoin holders, which potentially coincides with a phase of market consolidation.

Weekly Performance

BTC and ETH increased by +3.8% and +2.5%, respectively, in the past seven days. The price action for other selected top market cap tokens was mixed, AVAX (+16.0%) led the increase and LDO (-16.1%) led the drop.

Key categories showed mix performances in terms of market capitalisation changes in the past seven days, with the meme category leading the increase.

Notable Token Updates

News Highlights

ETFs & TradFi

• VanEck and 21Shares have filed for Solana ETFs with the U.S. SEC. VanEck’s proposed VanEck Solana Trust is the first application for a U.S. Spot SOL ETF while 21Shares Core Solana ETF is the second. Both the ETFs are planning to list on the Cboe BZX Exchange. 

• U.S. SEC commented on S-1 forms of proposed U.S. Spot Ethereum ETFs, and requested resubmissions by 8 July.

• Tidal Investments and Quantify Chaos Advisors filed for an ETF aiming to provide exposure to BTC and Gold via futures and ETFs. The ETF, named STKD Bitcoin & Gold ETF, aims to reduce the impact of short-term market fluctuations on investments.

• State Street Global Advisors filed an application with U.S. SEC for a crypto-based fund, SSGA Active Trust. Galaxy Asset Management will be responsible for daily management of the fund’s investments. 

Adoption

• Tether and Web3 e-commerce platform, Uquid partnered to introduce a new crypto payment option for social security system contributions in the Philippines, using stablecoins on The Open Network. 

Regulations

• European Union’s Markets in Crypto-Assets Regulation (MiCA)’s new rules on stablecoins came into effect on 30 June. This implies that crypto exchanges may delist non-compliant stablecoins or restrict services for EU and European Economic Area (EEA)-based users.

• The U.S. Treasury issued a crypto tax regime starting 2025. Crypto brokers will have to submit disclosures on movements and gains of customers’ assets. Non-custodial crypto businesses for example decentralised exchanges and unhosted wallet providers will have to wait for rules later this year.  

• Central Bank of Bolivia lifted the ban on using Bitcoin and other cryptocurrencies in the national financial system. This is a milestone for the country in enabling cryptocurrencies in the country since the original ban was passed in 2020. 

• France and Hong Kong regulators announced a collaboration focusing on wholesale central bank digital currencies (CBDC) and financial asset tokenisation. The partnership marked a milestone in promoting financial innovation and interoperability. 

Others

• Cryptocurrency Exchange Mt. Gox will start processing payments to investors who lost funds in 2014, starting July 2024. This amounts to more than $9.4 billion worth of Bitcoin, with payments in Bitcoin and Bitcoin Cash. 

Recent Research Reports

• Points Farming – Development, Significance, and Controversies: Points farming has become ubiquitous in crypto recently. Our report looks into its development and two examples Friend.tech and EigenLayer, before delving into its significance and controversies.

• SocialFi – Business Models and New Developments: SocialFi in Web3 empowers users with enhanced data control and direct creator compensation without intermediaries, leveraging blockchain for better user engagement and innovative monetisation methods. 

• Research Roundup Newsletter [May 2024]: We present to you our latest issue of Research Roundup, featuring our deep dives into points farming and SocialFi, and many more.

Recent University Article

• Blast Blockchain: What It Is and Why It’s on the Rise: Fast transactions, low fees, and native yield: Find out what’s behind Blast’s meteoric rise to Layer-2 with the second highest TVL.

• What Are Yield-Bearing Stablecoins and How Do They Work?: Yield-bearing stablecoins sound like the best of both worlds — earning interest without volatility. Here’s how they work and how much yield holders can earn.

• What Is Stacks (STX) and How Does Stacking Work?: As a Bitcoin Layer-2, Stacks allows developers to build Bitcoin dapps and create new use cases for the ecosystem. Here’s how it works.

Catalyst Calendar

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