This past week saw several notable developments in the digital assets and blockchain space. As widely reported, the US Securities and Exchange (SEC) is seeking feedback on proposed bitcoin ETFs by Franklin Templeton and Hashdex.
In other key updates, Interactive Brokers has now launched retail crypto trading in Hong Kong with OSL. And Circle and SBI Holdings collaborated in order to boost USDC adoption in Japan.
As noted in an update shared by Talos, the cryptocurrency markets witnessed a surge this week, “registering a 5.2% increase in the overall market capitalization” (as of November 29, 2023 but the market has been warming up even more with BTC recently surpassing $39,000 and approaching $40,000).
As stated in the report from Talos, the dominance of bitcoin continued “to hover below the 52% threshold.” During this timeframe, some noteworthy blue-chip cryptocurrencies demonstrated positive performance, “with bitcoin rallying by 5.6% and ether posting a weekly gain of 5.8%.”
In the latest developments related to ETF applications, on Tuesday, the Securities and Exchange Commission (SEC) stated its intent “to actively seek fresh input from the public.”
This pertains to both “the proposed spot-bitcoin ETF by asset manager Franklin Templeton and the bitcoin-futures ETF put forward by Hashex.”
A recent report from Bitfinex revealed that “the proportion of circulating bitcoin currently in a profitable state reached a peak of over 83% this week.”
This marks the highest level since November 2021 “when bitcoin’s market capitalization reached an all-time high.”
The report also notes “a historically low bitcoin velocity, indicating a reduced frequency of trading or usage in transactions. Such findings suggest a noteworthy shift in sentiment compared to the last bear market cycle.”
According to the report, the low-velocity level implies “that holders of the digital asset are currently disinclined to sell, while buyers are actively seeking new sources of supply.”
Among the prominent Layer 1 coins, Solana and AVAX have “demonstrated notable outperformance within the sector, recording gains of 11.9% and 8.4% respectively over the course of the week. While Solana has consistently impressed investors with its remarkable performance throughout the year, the protocol achieved a significant milestone by reaching a new 12-month high in total daily transaction count earlier this week. Similarly, AVAX maintained its upward momentum, establishing a new all-time high in daily transactions, signaling a considerable surge in network activity.”
Notably, the Talos report mentioned that the ecosystem received “a substantial boost from its developer and accelerator, Colony Lab, which recently announced a $10 million investment dedicated to fostering the sustained expansion of the AVAX network.”
Over the past few months, the company “acquired more than 500,000 AVAX tokens valued at $8 million.”
These funds will be directed “towards the establishment of a validators program designed to enhance the benefits for AVAX holders.”
Within the DEX (decentralized exchanges) landscape, Sushiswap experienced “a notable surge of 29.1%, while Uniswap exhibited an impressive rally of 26.1% over the week. Sushiswap recently introduced a new proposal aimed at addressing various challenges within the DEX platform.”
The proposal outlines “the deployment of Algebra Integral, presenting a streamlined core with essential functionalities and adaptable plugins to effectively tackle these challenges.”
The proposal emphasizes “that the incorporation of new plugins will open avenues for increased stakeholder engagement, thereby expanding revenue streams for the DEX.”
The strategic use of plugins allows “for the implementation of new features without necessitating a liquidity shift, ensuring that Sushiswap (SUSHI) can maintain its competitive edge.”
Meanwhile, data from the Dune Analytics dashboard indicates “that the aggregate trading volume of Uniswap X surpassed the $1 billion mark earlier in the week.”
Uniswap‘s team launched Uniswap X in July “with the mission of providing trading services across various Automated Market Makers (AMMs) and liquidity providers within the framework of a permissionless trading protocol.”
As stated in a blog post by Talos, in traditional financial assets, US equities rose “by 0.4%, as dovish remarks from the Federal Reserve’s Waller reinforced the belief that the Fed has concluded its cycle of interest rate cuts.”