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- Bitcoin, Ethereum, Cosmos and more Week 52 2024
Bitcoin, Ethereum, Cosmos and more Week 52 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
MicroStrategy's Bold Bitcoin Expansion and Share Plans
Russia Adopts Bitcoin to Circumvent Sanctions
Ethereum ETFs Gain Amid Bitcoin Decline
Vitalik Buterin Adopts Moo Deng with 88 ETH
Uniswap V3 Launches on Saga’s Appchain
Tokenized GPU Marketplace Launched by Aethir and Injective
IRS Confirms Taxation of Staking Rewards
Trump-Linked Strive Files for Bitcoin Bond ETF
and much more!
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Bitcoin Highlights of the Week
MicroStrategy has strengthened its position as a leading Bitcoin holder by acquiring 5,262 BTC for $561 million, raising its total holdings to 444,262 BTC purchased at an average price of $62,257 per coin.
The firm, led by Michael Saylor, also announced plans to increase its authorized share count by $10 billion, potentially expanding shares by 3,000%, to fund further Bitcoin purchases. These moves come as the company reports strong year-to-date BTC yields of 73.7% and celebrates its inclusion in the Nasdaq 100 index, reflecting its growing market influence and commitment to a Bitcoin-centric strategy.
Russia is leveraging Bitcoin and digital assets to bypass Western sanctions and bolster international trade. Finance Minister Anton Siluanov confirmed ongoing Bitcoin transactions and expressed confidence in expanding their use in 2025. Recent laws legalized Bitcoin mining and trade while introducing tax exemptions to boost financial stability.
Russia, the second-largest Bitcoin miner globally, produced 54,000 BTC in 2023, generating $550 million in tax revenue. Despite energy-based mining restrictions, the government views Bitcoin as critical to reshaping global trade and reducing reliance on the US dollar. President Putin advocates for Bitcoin’s decentralized nature and suggests a national Bitcoin reserve.
KULR Technology Group, listed on the NYSE, has launched its Bitcoin treasury with a $21 million purchase of 217.18 BTC at an average price of $96,556 per Bitcoin. The energy management company plans to allocate up to 90% of surplus cash into Bitcoin, utilizing Coinbase Prime for custody services.
Inspired by MicroStrategy’s strategy, CEO Michael Mo described Bitcoin as "digital energy" aligning with KULR's mission. This move reflects a growing trend among firms adding Bitcoin to their balance sheets, including Matador Technologies and Quantum BioPharma, further cementing Bitcoin’s role as a strategic asset in corporate finance.
Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission for the "Bitwise Bitcoin Standard ETF." This ETF targets companies that hold at least 1,000 Bitcoins in their corporate treasuries, reflecting the rising trend of businesses adopting the "Bitcoin standard." The fund aims to track firms leveraging Bitcoin as a strategic asset.
While this move aligns with corporate Bitcoin adoption, it comes with the inherent risks and regulatory scrutiny associated with cryptocurrency investments. This filing highlights the growing institutional interest in Bitcoin as part of corporate financial strategies.
Matador Technologies, a Canadian blockchain company, has added Bitcoin to its corporate treasury with a $4.5 million purchase. The decision is driven by the desire to shield against potential depreciation of the Canadian dollar, given the nation's economic risks.
The company views Bitcoin as a hedge and store of value, citing its liquidity, security, and institutional adoption. Matador is also integrating Bitcoin into a digital gold platform launching in early 2025, combining physical gold with blockchain technology. This move aligns with the growing trend of corporations incorporating Bitcoin into their financial strategies, like MicroStrategy and Tesla.
Ethereum Highlights of the Week
On December 23, 2024, Ethereum spot ETFs saw a notable surge, with net inflows totaling $130.8 million. BlackRock's ETHA ETF led with $89.5 million, while Fidelity’s FETH ETF received $46.4 million. In contrast, Bitcoin spot ETFs experienced significant outflows of $226.5 million.
This shift suggests a growing institutional preference for Ethereum, potentially marking the onset of an "altcoin season," where investor focus moves from Bitcoin to other cryptocurrencies. The trend indicates a shift in market sentiment and investment strategy towards Ethereum and its increasing institutional adoption.
Vitalik Buterin, Ethereum's co-founder, adopted Moo Deng, a viral pygmy hippopotamus, with an 88 ETH donation, worth approximately $292,000, to the Khao Kheow Open Zoo in Thailand. The donation is part of the zoo’s Wildlife Sponsorship Program. Buterin also pledged an additional 10 million THB (around $290,000) to support Moo Deng’s family over the next two years.
The hippo became famous in September 2024 due to her expressive social media presence. Buterin’s contribution aligns with his history of charitable donations, including substantial ETH gifts to other causes, showcasing his ongoing support for charitable initiatives.
Metamask has introduced its Gas Station feature to address the challenges of transaction fees on the Ethereum mainnet. Integrated into Metamask’s Smart Transactions with Swaps, the feature provides gas-included transaction quotes, helping users avoid running out of ether (ETH) to cover network fees.
Previously, replenishing ETH required time-consuming exchanges, potentially missing key DeFi opportunities. Gas Station aggregates data from decentralized exchange sources, ensuring competitive rates and smoother interactions. Initially available on Metamask’s browser extension, it supports assets like USDT, USDC, DAI, and WETH, with mobile functionality expected in future updates.
Aave is considering integrating Chainlink’s Smart Value Recapture (SVR) oracle service to capture profits from maximum extractable value (MEV) and distribute them to users. The SVR service, introduced on Dec. 23, targets MEV generated through Aave liquidations, which currently benefit liquidators more than protocol users.
Aave estimates SVR could capture about 40% of MEV profits, which would be redirected to Aave’s decentralized autonomous organization (DAO) for the benefit of its community. This integration aims to optimize Aave’s liquidation process, reduce MEV-related profits for third parties, and enhance user returns within the ecosystem.
Ethereum NFT trading volume surged to $186 million last week, marking a 67% increase from the previous week's $111 million and a three-month high. The spike was driven primarily by the Pudgy Penguins collection, which generated $108 million in volume following the launch of its $PENGU token.
Individual penguins traded above 29 ETH before experiencing a sharp decline. The token launch also spurred increased activity in other collections, like Azuki and Doodles, which saw $23 million and $17 million in trading volume, respectively. Ethereum remains the dominant platform for high-value NFT trading, despite competition from other chains.
Cosmos Highlights of the Week
Uniswap V3 has officially launched on Saga's multichain platform, marking the first-ever Uniswap appchain. This integration brings unlimited scalability, faster updates, and seamless liquidity across ecosystems like Ethereum and Polygon. Saga’s decentralized PoS protocol ensures security and efficient validator onboarding.
With Evmos integration, Saga merges Ethereum’s EVM with Cosmos interoperability, enabling Cosmos-native tokens as ERC-20s. Saga’s LIL ensures liquidity across major chains, powered by Squid for seamless swaps. Additionally, gasless Uniswap V3 is now possible, with gas fees returned to chainlet owners, making transactions free for users. Saga sets a new standard for DeFi and appchains.
Neptune Finance has launched its v2 protocol, bringing exciting upgrades to its design, fee structure, and staking rewards. The new UI enhances the user experience, while updated fees are designed to boost protocol buybacks. Staking rewards are now live, with new opportunities to earn through staking or liquidity provision.
Users can stake NEPT in three pools (7d, 30d, 90d), each offering increasing rewards and governance power. Liquidity providers can earn by supplying NEPT to Helix’s Mito Vault or Astroport. New utility features for stakers, including health boosts and flash loan access, are also now available.
Aethir, a decentralized cloud computing provider, has partnered with Binance-backed Injective to launch a tokenized GPU marketplace, democratizing access to GPU resources essential for AI and machine learning. Announced on December 26, the marketplace offers features like fractional ownership, composability for onchain use cases such as lending, and real-time trading for seamless GPU buying, selling, and leasing.
This solution addresses high GPU costs and limited availability, enabling users to access resources efficiently while providing sellers with global market exposure and revenue through GPU tokenization. The partnership blends Aethir’s infrastructure with Injective’s blockchain expertise to drive innovation in AI and blockchain.
Mercado Bitcoin, Brazil's largest crypto exchange with over 3 million users, has integrated INJ tokens, enabling direct access to the Injective ecosystem using fiat currencies like the Brazilian Real. This move simplifies DeFi engagement and promotes blockchain adoption in Latin America.
Meanwhile, MetaMask launched its card in Brazil and neighboring countries, bridging crypto and traditional finance. Coins.ph, originally Philippine-based, focuses on Brazil after a tenfold trading volume rise. Injective's partnership with the Artificial Superintelligence Alliance (ASI) further boosts AI and blockchain integration.
DojAI, the first AI launcher on Injective, introduces a platform for creating AI agents in the emerging Web4 era. Initially launching in beta, it will transition to a permissionless system, enabling builders to develop AI agents for Twitter, integrate tokens, and access fundraising tools.
DojAI boosts the Dojo ecosystem through $500 launch fees (burnt as DOJO tokens), liquidity on DojoSwap generating fee revenue, and airdrop incentives for babyDOJO holders. Its debut project, NatsukiWaifu, combines AI with interactive companionship. With 20% airdropped to babyDOJO holders and token buybacks planned, DojAI promises innovation, utility, and growth for the Injective network.
Other Highlights of the Week
The IRS has confirmed that cryptocurrency staking rewards are taxable income upon receipt, according to Revenue Ruling 2023-14. This decision has led to legal challenges, notably from crypto investor Joshua Jarrett, who is suing over the timing of the tax, questioning whether rewards should be taxed immediately or when the staked assets are sold or converted into fiat currency.
This ruling adds to the growing debate on how cryptocurrencies should be taxed, particularly regarding staking rewards, which could influence future tax policies in the cryptocurrency space and impact investor behavior.
South Korea has imposed sanctions on 15 individuals and one entity from North Korea involved in cyber activities, including cryptocurrency theft. These individuals, affiliated with Bureau 313, have carried out cyberattacks and stolen significant amounts of cryptocurrency.
In 2024 alone, North Korean hackers stole $1.34 billion, representing 61% of all cryptocurrency stolen that year. The sanctions target individuals and entities responsible for infiltrating IT companies worldwide and funding North Korea's regime. The U.S. and other nations have also taken similar actions in response to the growing threat posed by North Korean cyber actors.
Strive, led by Vivek Ramaswamy, has submitted a filing to U.S. regulators to launch an actively managed ETF focused on convertible bonds issued by MicroStrategy and other companies with significant Bitcoin investments. The fund aims to offer exposure to "Bitcoin Bonds," which are securities linked to Bitcoin purchases, either directly or through derivatives like swaps and options.
Strive’s ETF intends to capitalize on the growing trend of corporate Bitcoin treasuries. Although management fees are unspecified, the fund will likely charge higher fees due to its active management approach. MicroStrategy’s $27 billion Bitcoin investment strategy is a key component.
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