Worldcoin set to launch L2 as Bitcoin ETFs saw net outflows of $204.3 million last week

Weekly Market Update #36

Major developments for the week:

• Bitcoin ETF product’s saw net outflows of $204.3 million last week 

• Binance has converted its billion-dollar 'SAFU' emergency fund into USDC

• Tether has revealed plans for a company restructuring to introduce various new decentralized infrastructure solutions

• EY has introduced the OpsChain Contract Manager solution to facilitate secure private business agreements on the public Ethereum network

• Uniswap Labs has increased its interface fee by 0.1% for all token swaps, except specific stablecoin and wrapping transactions, across its mainnet and supported Layer 2 networks

• TON Foundation introduces Memelandia 

• Jupiter exchange announced JupSOL, the highest yield LST on Solana 

• Lido announced that its simple Distributed Validator Technology module is ready for mainnet 

• Worldcoin is set to launch its own Layer 2 blockchain, named World Chain

• Aptos Labs is teaming up with Microsoft, Brevan Howard and SK Telecom to develop an institutional platform named “Aptos Ascend”

• Optimism will unlock 2.31%  of its circulating supply on the 29th of April 

Bitcoin ETF product’s saw net outflows of $204.3 million last week 

Since their inception in January, Bitcoin ETFs have seen a net flow of $12.3 billion. Despite this, the past week has witnessed a slight setback, with a net outflow of $204.3 million. IBIT saw the largest total inflow at $165.40 million, while GBTC faced the largest outflow, summing to $458.40 million over the same period. FBTC saw a significant increase on April 19th, with a single-day inflow of $54.8 million. ARKB’s flows varied notably, with a peak outflow of $42.7 million on April 17th.

Today, April 22nd, total on-chain holdings for ETF products stand at 835,000 BTC which equates to 4.24% of the available BTC supply . However, a more granular look at recent trends reveals that the total on-chain holdings over the last 14 days, if annualized, project a decrease in Bitcoin supply absorption by 0.46%.

When analyzing Bitcoin holdings per respective entity, Grayscale leads the group with a portfolio of 304,961 BTC valued at $20.2 billion, capturing 36.5% of the market share. BlackRock follows closely, managing 273,142 BTC with a total value of $18.1 billion, representing 32.7% of the market. Fidelity holds a significant position as well amounting to $9.9 billion, which equates to 18% of the market share amongst ETFs. On the smaller end of the spectrum, 21Shares and Bitwise have also made substantial inroads with $2.8 billion and $2.2 billion in assets respectively. 

Tether announced their plan to reorganize into four new divisions
Last week saw an intriguing development from Tether, as it expanded beyond its well-known USDT stablecoin to develop a comprehensive range of infrastructure solutions aimed at enhancing inclusivity and building resilient financial systems. This strategic shift includes the introduction of four new business divisions:

The restructuring demonstrates Tether's move towards a broader and more varied approach, focusing on sustainable solutions and conscientious investments across different technological and financial sectors.

EigenLayer removed all Liquid Staking Token (LST) caps

In other news, EigenLabs announced the final phase of its staggered launch, which included lifting all limits on Liquid Staking Tokens and resuming deposits from the 16th of April 2024 at 9:00 AM PST. This development marks a significant milestone in EigenLayer's evolution, aimed at creating a more accessible and flexible staking ecosystem.

Since its launch in Early June 2023, the protocol has amassed over $15.2 billion in TVL which can be further segregated into the following assets:

Most recent discussions within the EigenLayer community are regarding the implementation of future protocol awards. One proposal being considered would limit these awards to a maximum of 33% for any single LST (or user), in an effort to maintain a balanced and decentralized ecosystem.

TON Foundation introduces “Memelandia”

TON, the decentralized blockchain network developed by the creators of the messaging app Telegram, has launched a new initiative named Memelandia, following in the footsteps of protocols like Fantom and Avax in the memecoin sphere. This platform is dedicated to supporting and showcasing community tokens and meme coins, demonstrating their role in fostering community engagement, loyalty and creativity.

Memelandia features "The Open League," where selected communities can compete and showcase their tokens, aiming for rewards and recognition. 

Moreover, TON facilitates the launching of meme coins with no-code solutions, allowing creators with limited technical skills to design, mint and manage their tokens. This setup promotes community engagement through tools like TON Raffles or TonUP.

Overall, the TON Foundation's Memelandia and The Open League represent strategic efforts to improve the fair launch and support of meme coins, fostering a more inclusive and safe environment.

OP will undergo a $60.4 million unlock on April 29th, 2024

Lastly, the primary unlock event this week features OP. Scheduled for April 29th 2024, $OP plans to release 2.31% of its circulating supply. This comprises $31.88 million for Core Contributors and $28.52 million for Investors. $OP’s vesting schedule is estimated to reach completion by August 28th, 2027.

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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