Bitcoin trades below $55,000 as crypto undergoes largest liquidation event since FTX
Weekly Market Update #37
Key Takeaways:
Last week Bitcoin ETF products saw net inflows of approximately $238.4 million
Mt Gox started repayments
Last week marked the second largest liquidation day since the collapse of FTX
The Aave DAO is launching the GHO stablecoin on the Arbitrum network
Tether announced that it will be developing decentralized AI models
Fantom Foundation provided update on judgement against multichain
Sui Foundation announced the Sui Overflow Hackathon Winners
XAI will unlock 71.59% of its circulating supply on July 9th 2024
Last week Bitcoin ETF products saw net inflows of approximately $238.4 million
The ETF flows for the week of July 01 to July 05 showed significant activity. FBTC recorded the highest inflow with $117.4m on 05 July, totaling $194.3m for the week. Conversely, GBTC experienced substantial outflows, particularly on 02 July (-$32.4m) and 05 July (-$28.6m), resulting in a total weekly loss of $88m. IBIT saw an inflow of $14.1m on 02 July. ARKB and HODL had moderate inflows, with ARKB peaking at $12.7m on 01 July and HODL at $12.8m on 05 July, totaling $26.5m and $21.7m respectively. The overall ETF flows for the week amounted to $238.4m.
Mt Gox started repayments
In other important Bitcoin related news, Mt. Gox announced on Friday that it has begun repaying customers, concluding a nearly 10-year wait following a 2014 hack that led to the exchange's bankruptcy. Once the leading crypto exchange, Mt. Gox managed over 70% of all Bitcoin transactions in its prime. The hack resulted in the loss of approximately 740,000 bitcoins. This announcement increased selling pressure on bitcoin and the broader crypto market, following Mt. Gox's statement last month about starting repayments in July.
The selling pressure was also further exacerbated by the German Government selling seized Bitcoin. As detailed by Arkham Intelligence, they have approximately 23,700 BTC left, a $1.34 billion equivalent:
Overall this sell off accounted for the second largest liquidation event in Bitcoin’s history, right after FTX collapse in November 2022.
This equated to a $10 billion dollar wipe in open interest as depicted by the chart from Coinglass above.
The Aave DAO is launching the GHO stablecoin on the Arbitrum network
In other news, Aave announced that it is launching its GHO stablecoin on the Arbitrum blockchain as part of its cross-chain expansion strategy. The GHO stablecoin, which is multi-collateralized and native to the Aave Protocol, will use the Chainlink Cross-Chain Interoperability Protocol (CCIP) and will be gradually rolled out, starting with Arbitrum and later expanding to other networks.
According to Aave DAO, the GHO stablecoin is fully backed and transparent, with assets within the Aave Protocol available to back GHO. The stablecoin was initially released on the Goerli testnet in February 2023 and activated on the Ethereum mainnet almost a year ago.
The expansion to Arbitrum and other networks aims to enhance access and adoption while reducing transaction costs. According to The Block, Aave Labs founder and CEO Stani Kulechov stated that integrating with other networks will lower fees, provide faster transactions, and improve liquidity, making GHO more appealing to users and introducing new use cases, including GHO digital payments.
Sui Foundation announced the Sui Overflow Hackathon Winners
As Sui's first global hackathon, Sui Overflow allowed builders to showcase their innovative ideas and Move programming skills, creating projects from developer tools to games. The hackathon's tracks were divided into Technology and Product categories. Running from April 21 to June 21, participants presented their projects to 47 judges, including domain experts, investors and established builders, during Demo Days on the weekend of June 15.
The Sui community awarded 10 Community Favorite Awards through online voting. Additional recognitions included 10 awards for university teams, emphasizing student builders and awards from Sui ecosystem projects.
Participants from 79 countries submitted projects, with significant representation from India, China, Nigeria, Vietnam and the United States. Teams included students and seasoned blockchain developers, many with experience on Solana, Polygon and EVM-based chains. Judges shortlisted 65 projects, from which the track winners were chosen.
XAI will unlock 71.59% of its circulating supply on July 9th 2024
The final update of this week comes from the protocol XAI which is set to unlock 71.59% of its circulating supply this week which equates to $70.7 million. The Team holds 71.43 million XAI, valued at $25.45 million, which constitutes 25.78% of the circulating supply and 28.46% of the market cap. Investors have 103.95 million XAI, worth $37.04 million, representing 37.51% of the circulating supply and 41.41% of the market cap. The Reserve holds 3.38 million XAI, valued at $1.20 million, accounting for 1.22% of the circulating supply and 1.34% of the market cap. Lastly, the Ecosystem holds 19.64 million XAI, valued at $7.00 million, which is 7.09% of the circulating supply and 7.83% of the market cap.
Note: The content in this weekly report has also been utilized in our weekly collaborative series with stock/crypto trading platform eToro.
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