Issue #55

ETH Futures ETH ready to launch, Opensea to remove creator royalties, Coinbase approved to offer BTC and ETH futures in the US & more...

Market Overview

As of the time of writing (Monday 5pm), the total market cap of the crypto asset market is $US1.09T, down (10.7%) from last week.

Below is the weekly performance of the top crypto assets. 

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News Headline Highlights

 Crypto Asset Project Updates

  • ThorChain launched a lending product, where users can deposit bitcoin or ether and receive a no-interest, no-liquidation loan against their collateral. In doing so, there are risks introduced to the protocol, which is the counterparty to the loans. 
  • Average daily transactions on Base, the Ethereum Layer 2 network incubated by Coinbase, jumped past Arbitrum and Optimism, the dominant Ethereum layer 2 networks, last week. Base's seven-day moving average daily transaction count reached 610k, compared to Optimism’s 597k and Arbitrum's 576k.
  • OpenSea announced that it will soon stop enforcing creator royalty fees on secondary sales of NFTs. This development will impact artists and teams who receive passive income when their work trades hands following the initial sale. Beginning August 31, artists who list new projects on OpenSea will not be able to require buyers to pay a creator fee.
    • In light of this decision, Yuga Labs intends to sever ties with OpenSea over the NFT platform's shift to a royalty-optional model.

Regulation Station

  • Ripple Labs, the issuer of the XRP crypto asset, has filed a response to the SEC’s anticipated interlocutory appeal (claiming the original ruling that the sale of XRP was declared not a security is incorrect).  Ripple opposes the appeal on the grounds that: No controlling question of law is involved, the SEC cannot show a substantial ground for difference of opinion and an immediate appeal will not advance the termination of the litigation.
  • Financial Service Committee Chairman, Patrick McHenry, and other Republicans on the Financial Services Committee, wrote letters to FINRA and the SEC regarding the suspicious approval of Prometheum, the only Special Purpose Broker-Dealer for digital assets.
  • The Federal Deposit Insurance Corporation (FDIC) released a report highlighting the novel and complex risks that crypto could introduce to financial stability. The organisation dedicated 2 of 90 pages to crypto in itannually-published report titled Risk Review.

The Weekly Deal Room

Metric of the Week

As Bitcoin's price crashed 15% last week, many investors were caught in high leverage trades, with , $855m in long positions and $194m in short positions liquidated.

Total BTC liquidations numbers are far greater than when the FTX exchange collapsed in November 2022. Nearly $2 billion in open interest evaporated in the last 24 hours.

Source: Velo Analytics

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