Stablecoin Adoption Grows: USDT Reaches $90 Billion Market Cap

Leonardo Perez
-
0
Stablecoin Adoption Grows: USDT Reaches $90 Billion Market Cap

Tether (USDT) hit a new market capitalization high of $90 billion in December 2023, commanding a 70% market share. Tron founder Justin Sun revealed that 17.2% of Tron users now hold USDT, indicating the growing use of stablecoins. The third French bank, Société Générale, is going to launch its own stablecoin, the EUR CoinVertible.

The first week of December 2023 marked a major milestone as Tether (USDT) reached a new market capitalization high, while its competitors saw their market capitalization decline.

This achievement positions Tether as a dominant force in the stablecoin market, with a staggering 70% market share. This increase in market capitalization reflects Tether’s growing influence. It also shows the increased acceptance and use of stablecoins in the digital economy.

Tether: USDT Still the Most Popular Stablecoin

This dominance is reinforced by the volumes traded. As Rob Hadick, general partner at Dragonfly, points out, “USDT volumes are nine times higher than USDC,” indicating that “these tokens are serving different use cases today.”

This disparity highlights the preference of traders outside of US/UK regulated firms and emerging markets for USDT as a transaction mechanism. In contrast, USDC is mainly used today to make secure holding for US-based companies.

Additionally, Tether’s dominance appears to be gaining ground among other major stablecoins. The recent rise in market capitalization to a new all-time high clearly indicates a divergence between the second largest stablecoin, USDC.

As of July 2023, Tether has seen a 36% increase in its market capitalization. However, USDC has seen its market cap fall below its July 2023 market cap of $27 billion, a 5-month low. Moreover, what was previously the third-largest BUSD stablecoin has lost appeal following its removal from Binance as a stablecoin. Allowing DAI and TrueUSD to surpass it.

Stablecoin: 17.2% of TRON Users Hold USDT, according to Justin Sun

Tether’s growing influence is also evident on the Tron platform. Commenting on Tron’s growth, Tron founder Justin Sun pointed out an impressive statistic:

“34,500,061 users on Tron, representing 17.2% of all our users, now hold #USDT.”

This not only marks a significant milestone for Tron. But it also attests to the growing use of USDT and other stablecoins in the market.

TRON (TRX) is currently the 12th largest cryptocurrency project by market cap. It is one of more than forty projects that currently use the popular stablecoin within their ecosystems.

Stablecoin Adoption Extends to Banks

The rise of stablecoins is not limited to Tether alone. In a pioneering move, France’s third largest bank, Société Générale, is about to launch its own stablecoin, the EUR CoinVertible. The stablecoin will launch on Bitstamp, an exchange based in Luxembourg.

It is the first time that a major bank has offered a wide range of investors digital tokens that track the price of hard currencies. Jean-Marc Stenger, CEO of SocGen Forge, the bank’s digital assets unit, referred to this adventure by stating the following:

“The cryptocurrency ecosystem is very concentrated on a few existing stablecoins, 90% denominated in US dollars… we definitely believe there is a place for a bank in this space and there is a place for a stablecoin [denominated] in euros.”

This step by Société Générale may pave the way for other traditional financial institutions to follow suit, which could lead to a more diversified stablecoin market.

The stablecoin market, currently valued at $130 billion, is largely dominated by Tether and the US-based Circle. Both have faced questions about audits of the reserves backing their tokens.

By Leonardo Perez

Robinhood CEO Explains Reasons for Current Cryptocurrency Market Rally

Audy Castañeda
-
0
Robinhood CEO Explains Reasons for Current Cryptocurrency Market Rally

Robinhood CEO Vlad Tenev addressed the sharp increase in cryptocurrency trading volume. He mentioned how optimism around the potential launch of a Bitcoin ETF in the United States could lead to changes in the rate environment with the Federal Reserve. He also highlighted the growing perception of cryptocurrencies such as Bitcoin as a hedge against inflation.

In a recent appearance on CNBC’s “Squawk Box,” Robinhood CEO Vlad Tenev addressed the sharp increase in cryptocurrency trading volume on the platform, as well as the consequences that this entails, both for the cryptocurrency market and for your own company.

Tenev highlighted a notable 75% increase in cryptocurrency trading volume from October to November. He attributed this increase to various factors, among them the growing presence of Robinhood in the cryptocurrency industry.

Robinhood CEO: Crypto Trading Volume Increases

The company has been constantly innovating and expanding in this area, with a focus on ensuring that customers get favorable terms on their cryptocurrency transactions. This strategy has resulted in an increase in Robinhood’s market share, especially notable as the overall market experiences growth.

Tenev noted that the recovery could be due to several theories, while it is not possible to identify a definitive cause due to the decentralized nature of cryptocurrencies. He mentioned how optimism around the potential launch of a Bitcoin ETF in the United States could lead to changes in the interest rate environment with the Federal Reserve, possibly curbing aggressive rate hikes. He also highlighted the growing perception of cryptocurrencies such as Bitcoin as a hedge against inflation.

Addressing the impact of cryptocurrencies on Robinhood’s value and earnings, Tenev emphasized the company’s diversified business model. This benefits from the increase in cryptocurrency markets, but does not depend exclusively on them.

Unlike companies exclusively focused on cryptocurrencies, Robinhood offers distinctive features, such as a 24-hour market for stocks and an expansion of its offering to more than 200 symbols. This diversification allows users to engage in overnight trading of cryptocurrencies and stocks related to blockchain technology, thus highlighting the solidity of the platform.

Robinhood Reiterates its Commitment to Cryptocurrencies, Especially Bitcoin

Tenev shared that Bitcoin is the most popular recurring investment on Robinhood, indicating a strong customer preference for including it in their portfolios. He also discussed the impact of Robinhood’s introduction of fractional shares, which allows users to invest in any stock regardless of its price, enabling diversified portfolios without necessarily relying on ETFs.

Regarding market cycles and the future of meme stocks, Tenev stated that the market experiences cycles and that similar trends can be expected in the future. He underscored Robinhood’s commitment to being an unbiased platform and focusing on being there for customers, especially during periods of high market activity.

Robinhood, among the Biggest Beneficiaries of the Cryptocurrency Rally

Robinhood shares saw a 10.3% surge on Tuesday and rose another 3% in pre-market trading on Wednesday, after the platform revealed in a Monday filing that cryptocurrency trading volumes in November increased 75% as compared to the previous month.

Cryptocurrencies have become an increasingly crucial part of Robinhood’s business in recent years. The most recent quarterly results revealed that token trading revenue was just shy of that of stocks.

During periods of crypto frenzy, the broker has made more money from cryptocurrencies than from conventional stock trading. This phenomenon highlights the growing relevance of cryptocurrencies in the financial landscape and the prominent role that Robinhood plays in this new paradigm.

By Audy Castaneda

Bitcoin ETF Spot Trading to Begin in Q2 2024

Leonardo Perez
-
0
Bitcoin ETF Spot Trading to Begin in Q2 2024

The SEC will approve a similar tool based on Ethereum. Crypto products market assets under management will grow from $41 billion to $600 billion. The integration of TradFi and the industry will continue. The development of Ethereum will create the preconditions to attract one billion users

The exact timing of the Bitcoin spot ETFs launch is still unknown, but it is very likely that it will begin in the second quarter of 2024. This forecast is contained in the Hashdex review for 2024.

Hashdex, a global pioneer in crypto asset management, posted on December 4 the following via X (formerly Twitter):

“In our latest Hash Insider

  • Hashdex releases our 2024 #Crypto Investment Outlook
  • SEC continues its work on #spot #bitcoin ETFs
  • UK asset managers given go-ahead to launch ‘tokenized’ funds.”

According to experts, investors will receive a similar product based on Ethereum.

The day before, the SEC delayed consideration of Grayscale’s application to convert a trust based on the second-largest cryptocurrency into a spot exchange-traded fund.

On November 16, the Commission made a similar decision regarding proposals by Hashdex and Grayscale to launch a spot ETF based on digital gold. The regulator is currently considering 13 such applications.

The Buzz Around ETFs

In November, the word “bitcoin” appeared in 1,074 SEC filings, the highest number ever recorded, according to The Block. The figure is 32.6% higher than the previous peak in May 2023 (810).

According to Hashdex, the approval of the tool will open a $50 trillion market to US retail and high-net-worth investors, more than Europe, Canada and Brazil combined. These products already exist in these jurisdictions.

For the first time, traditional asset managers with thousands of employees and trusted brands will offer Bitcoin ETFs to their clients. The four largest asset managers in the world [Franklin Templeton, Fidelity, BlackRock, Invesco] with AUM ~17 trillion dollars have submitted corresponding applications,” – says the report.

Experts explained that this will create the conditions for widespread acceptance of cryptocurrencies in distribution channels and among financial advisors, helping digital assets become mainstream as they are introduced into existing distribution channels and model wallets.

Market Estimates

According to analyst calculations, the AUM of the crypto products market will increase from the current $41 billion to $600 billion. In addition to the registration of spot exchange-traded funds, the determining factors will be the elimination of regulatory uncertainty by the US Congress, the dynamics of macroeconomic indicators and the halving.

Experts also predict active penetration Commerce into the crypto industry and its integration. In 2024, they expect new technological improvements that will guarantee the expansion of networks and create the preconditions to attract a billion new users.

Ethereum as a Driver

Analysts pointed to Ethereum as the relevant technological infrastructure. In his opinion, the development of the ecosystem of the second cryptocurrency by capitalization will copy the trajectory of the number of Internet users.

Previously, the SEC began collecting public comments on spot Bitcoin ETFs. Lawyer Scott Johnson saw this as a sign of the regulator’s willingness to simultaneously approve all applications for the instrument by January 10, 2024.

In November, representatives of the Commission and BlackRock held a meeting in which they discussed the details of a spot exchange-traded fund based on the first cryptocurrency. Prior to this, the regulator met with Grayscale management to discuss converting its Bitcoin trust into an ETF.

By Leonardo Perez

BlackRock Attracts Funding from Unknown Investor for its Bitcoin ETF, and Other News

Audy Castañeda
-
0
BlackRock Attracts Funding from Unknown Investor for its Bitcoin ETF, and Other News

An anonymous investor has funded BlackRock with $100,000 for its Bitcoin ETF scheduled for the middle of next year.

Financial giant BlackRock has secured seed funding of $100,000 from an unnamed investor for its Bitcoin exchange-traded fund (ETF). According to the latest filing with the United States Securities and Exchange Commission (SEC).

The presentation details that the agreement was closed on October 27, 2023, where the investor committed to purchase 4,000 shares at a price of USD 25.00 per share. This financing marks a significant step for BlackRock, the world’s largest asset manager, towards the launch of its Bitcoin ETF, scheduled to list in the second quarter of 2024.

Furthermore, the filing reveals that the investor played a crucial role as a statutory subscriber in connection with the Bitcoin ETF Seed Creation Baskets. Providing a more detailed view of the project financing structure.

Singapore Strengthens Regulations on Bitcoin and Cryptocurrencies to Protect Consumers and Investors

The Monetary Authority of Singapore (MAS) has concluded its response to the consultation on cryptocurrency regulations. Detailing key measures for business conduct and consumer protection in the area of ​​digital assets.

MAS, in its recently published final report, responds to the consultation paper issued in October 2022, which proposed regulatory measures for digital payment token service providers (DPTSP) in Singapore.

On December 4, Chainalysis publishes the following on X:

“The Monetary Authority of Singapore published the second and final part of its consultation response on conduct and consumer protection obligations for #digitalasset businesses, or DPTSPs.”

Notable measures include those related to consumer access, business conduct, technology management, cyber risks, and implementation timelines. MAS underlines the importance of all retail investors undergoing a risk awareness assessment before making investments, and prohibits DPTSPs from offering incentives to attract retail investors.

The SEC Must Judicially Determine Whether the Crypto Assets in the Terraform Labs Case Are Securities

The US SEC has filed a request with the US District Court for the Southern District of New York. Urging the judge handling the civil case against Terraform Labs and its co-founder, Do Kwon, to make a direct decision on the nature of certain cryptoassets. Instead of leaving it in the hands of a jury.

Likewise, the SEC argues that the crucial question of whether these cryptoassets should be considered securities, according to the commission’s guidelines, is essentially a “legal question for the Court to determine, not a question of fact for the jury.” In its December 4 filing, the SEC seeks to avoid the complication of opening the debate over whether the cryptocurrencies in the Terraform Labs case meet the Howey test, which establishes the criteria for defining a security.

The Sandbox and Hungama Partner to Create a New Experience in the Metaverse

A new strategic alliance between SandBlock and Hungama will allow the creation of Hungama World, an experience in the Bollywood Metaverse that will feature several attractions that will show the futuristic city of Mumbai up close, which will also include attractions such as a museum, a nightclub, a concert on the beach, shops and much more.

The Sandbox project, a play-to-earn game that combines blockchain, DeFi and NFT technology in a 3D world, recently posted on its X account, formerly known as Twitter, that it will launch Hungama World on December 4. According to The Sandbox’s latest tweet, the platform will celebrate the magic of Bollywood.

By Audy Castaneda

BTC Price Hits $44,000, Why is Bitcoin Price Rising?

Leonardo Perez
-
0
BTC Price Hits $44,000, Why is Bitcoin Price Rising?

This rally marks a notable rebound from its previous positions, suggesting the start of a bull market.

Bitcoin has recently witnessed a significant rally, surpassing the $44,000 mark for the first time since the early months of 2022. This impressive rise is driven by a combination of factors, including a decline in interest rates and growing enthusiasm for the possible launch of a Bitcoin ETF (Exchange-Traded Fund) in the United States.

The Catalysts Behind Bitcoin’s Momentum

A key element driving Bitcoin’s rise is growing interest from institutional investors along with the anticipation of regulatory green lights for BTC spot ETFs in the US. This combination has not only driven Bitcoin’s value above of the psychological threshold of $42,000, but has also led market analysts to project ambitious future valuations for the cryptocurrency.

Bloomberg, for example, has suggested that this could be the start of a new supercycle, potentially catapulting Bitcoin’s value to unprecedented heights, even beyond $500,000, as it becomes increasingly integrated into major financial systems.

The indicator to watch is Bitcoin’s ability to maintain and extend its gains above the $45,000 mark. Doing so could transform current resistance levels into support zones, paving the way for the cryptocurrency to reach and potentially surpass the $50,000 mark.

In an extremely bullish scenario, Bitcoin’s rise could even reach the $55,000 resistance level and extend towards the $65,000 mark, representing a more than 50% increase from current levels.

The Role of Market Mechanics

Several market indicators support such optimistic forecast. The Relative Strength Index (RSI), for example, shows increasing momentum in Bitcoin’s value.

Furthermore, the green bars of the Awesome Oscillator (AO) histogram in positive territory indicate strong market dominance by the bulls. These indicators collectively reinforce the bullish sentiment surrounding Bitcoin.

Historically, Bitcoin has shown significant price increases following halving events. With this pattern, it is speculated that Bitcoin could reach $150,000 in the second half of 2024 and potentially skyrocket to $250,000 in 2026.

Did Retail Traders Miss Recent Bitcoin and Ether Gains?

On December 5, USDT’s premium against the yuan reached 1%, a modest improvement from previous weeks. However, it remains within the neutral range and has not exceeded the 2% threshold for more than half a year. Whether retail flow leans towards bitcoin or altcoins, China-based investors primarily need to convert cash into digital assets.

Turning attention to Google Trends, searches for “buy bitcoin” and “buy crypto” reveal a stable pattern over the past three weeks. Although there is no definitive answer as to what sparks the interest of new retail traders, these queries usually revolve around how and where to buy cryptocurrencies.

It is especially notable that the current rate for the last 90 days is approximately 50%, showing no signs of recent improvement. This data seems to contradict logic, given that bitcoin is up 53% over the last 50 days, while the S&P 500 is up 4.5% over the same period. Importantly, when viewed over a longer time frame, current search levels are still a staggering 90% below their all-time high in 2021.

Finally, it is crucial to delve into the derivatives markets, specifically perpetual futures, which are the preferred instrument of retail traders. Also known as reverse swaps, these contracts have a built-in rate that accumulates every eight hours. A positive funding rate suggests greater demand for leverage by longs (buyers), while a negative rate indicates that shorts (sellers) are seeking additional leverage.

By Leonardo Perez

XRP Price at $0.6, Will XRP Follow Bitcoin Bull Run in December?

Audy Castañeda
-
0
XRP Price at $0.6, Will XRP Follow Bitcoin Bull Run in December?

Although Bitcoin has surpassed XRP, the world’s fifth-largest cryptocurrency has also posted healthy numbers. Since December 1, XRP has grown more than 5%. It is also up over 21% in the last 3 months and over 78% since January. The price of XRP today is $0.6.

Although Bitcoin surpassed XRP in 2023, there is a chance that XRP will follow in Bitcoin’s footsteps for a bull run in December. Bitcoin has had a relatively good year, returning more than 144% to investors since January. The king currency is also up almost 14% in the last month and around 10% since December 1.

Currently trading above $42,000 according to data from CoinMarketCap, Bitcoin has gained almost 2% in the last 24 hours and appears to be on track to finish the year impressively. The rise in Bitcoin price raises the question of whether altcoins like XRP will follow suit.

XRP’s price trajectory has been relatively healthy, especially since Ripple partially won its court case against the United States Securities and Exchange Commission (SEC). After Ripple’s victory in July, XRP rose more than 70% in 24 hours, reaching $0.7938.

Factors in Favor of an XRP Bull Run Like Bitcoin

There are several factors that can be considered bullish for XRP’s chances. On a much broader level, there is the outcome of the upcoming Federal Open Market Committee (FOMC) that will decide whether or not to raise interest rates.

While most observers believe the Federal Reserve will likely leave rates unchanged, nothing is certain until then. The FOMC’s possible decision to raise rates at the December 13 meeting could significantly impact the current cryptocurrency rally and possibly end it.

In addition to the Fed’s decision on interest rates, there are other factors specific to Ripple and XRP. Ripple has successfully signed some partnerships with major clients looking to use the blockchain company’s technology for various purposes.

In early November, the price of XRP rose 10% in response to new partnerships with Ripple. For example, the Dubai Financial Services Authority (DFSA) announced that it added XRP to a list of approved assets for the Dubai International Financial Centre. The list already included Litecoin (LTC), Ether (ETH) and Bitcoin (BTC).

Ripple also announced an official partnership with the National Bank of Georgia (NBG), becoming the bank’s official partner for its Central Bank Digital Currency (CBDC) pilot project. The bank hopes to use Ripple’s “technical excellence and expertise” to build its Digital Lari (GEL) project.

These partnerships, in addition to any others Ripple successfully achieves, are potentially bullish situations for XRP. The current sentiment may be causing XRP to accumulate as the Ripple and SEC case progresses. For example, an unknown whale recently transferred 24.2 million XRP, around $14 million from an unknown wallet to the Bitstamp exchange. Interestingly, the total gas fee for the transaction was only 0.000015 XRP.

What’s Next for XRP?

In other bullish XRP news, a recent forecast from crypto analyst Egrag Crypto predicted that XRP could reach $27.

In an X post, the analyst pointed out that “Since June lows and XRP has been chugging along the tracks, and guess what? The train has officially left the station and is on its way to Valhalla!”

Egrag Crypto has predicted that the next major stops for XRP are $1.3, $3, $5.8, and $27. The bullish post describes $3 and $5.8 as “critical milestones,” and also notes that XRP would experience “some turbulence” around $6 and $7.

By Audy Castaneda

1...360361362...1,654Page 361 of 1,654