Volumes surged from just over $1 million at the start of May to $18 million on Tuesday, data from Minswap shows.
Transaction volumes on Cardano-based decentralized exchange (DEX) Minswap spiked over the past few days as traders likely scoured the network for profit opportunities on meme coins.
Volumes surged from just over $1 million at the start of May to $18 million on Tuesday, data from Minswap shows. Minswap is the largest application on Cardano by locked value, holding 37% of over $175 million worth of tokens held on the network.
Volumes and TVL bumped on Minswap. (Minswap)
Such activity could bolster prices of Minswap’s min (MIN) tokens, which accrue value from platform usage and are used as a governance token.
A significant part of the increased volumes came from Cardano-based meme coins snek (SNEK) and bank (BANK). Prices of the two tokens surged as much as 34% in the past 24 hours, data shows, with a cumulative $40 million traded on Minswap alone.
The surge pushed snek to a market capitalization of $80 million on Tuesday morning, making it the eighth-largest meme coin by that metric.
Version 2 of Jimbos protocol was attacked over the weekend for $7.3 million, just days after going live.
Developers behind the Arbitrum-based Jimbos Protocol are gauging the best way for the project to move forward after its version 2 (V2) faced a $7.5 million exploit over the weekend.
Jimbos said it was working with security researchers to reclaim lost funds – the same people who’ve previously helped Euler Finance recover over $200 million – and added that they would contact law enforcement by 4 P.M. UTC on Monday if the attacker failed to return the money.
Jimbos lost 4,090 ether (ETH) late on Saturday, which security analysts blamed on the lack of slippage control in the main contract. This allowed the yet-unidentified attackers to take out a $5.9 million flash loan, manipulate the prices of jimbo (JIMBO), and walk out with treasury funds.
The protocol planned to issue a semi-stable token backed by a basket of crypto tokens, alluring traders to this concept as similar projects have seen brief success.
Flash loans are a popular way for attackers to gain funds to conduct exploits on decentralized finance (DeFi) systems. The loans allow traders to borrow unsecured funds from lenders using smart contracts instead of third parties.
These do not require any collateral because the contract considers the transaction complete only when the borrower repays the lender – meaning a borrower defaulting on a flash loan would cause the smart contract to cancel the transaction, and the money would be returned to the lender.
Meanwhile, JIMBO, its token, traded at nearly 18 cents on Monday, slightly recovering in Asian morning hours as developers floated their protective plans.
Floki prices rallied on Sunday amid a bitcoin-led market push and bets on the token’s “China narrative.”
Floki (FLOKI) spiked over 10% on Sunday and saw its highest trading volumes in over three weeks as traders bet on the tokens amid a China-focused push for its Valhalla metaverse game.
Trading volumes for the tokens, which are fashioned after the Shiba Inu dog breed, jumped to over $60 million, up from last week’s $25 million average. The spike comes as ads for its Floki game featured in some Chinese sporting tournaments. This could have attracted some speculators who hypothesized that the move might attract new traders from China.
In a tweet, Floki developers said they saw an influx of Chinese-based community members on their social media groups.
Floki previously said it was targeting China in its latest push toward attracting more users for its Valhalla game, as previously reported. The game’s content and technical documents will be available in both traditional Chinese and simplified Chinese and are specifically targeted toward the Chinese gaming market, developers added at the time.
The “China narrative” has caught on among some on Crypto Twitter ahead of lax laws for retail trading in Hong Kong, driving up prices of some Asia-focused tokens, such as conflux (CFX) in the past few weeks.
Starting June 1, Hong Kong will allow traders to invest in some tokens, such as bitcoin, ether and solana, on regulated exchanges in the country. Traders are not allowed to hold any stablecoins, but the move has fuelled sentiment that wealthy Chinese speculators could soon plough money into the crypto markets.
“While most major economies are expected to slow down this year, the Chinese economy is projected to grow strongly,” said Floki core developer @100bviking in a Twitter message to CoinDesk. “J.P. Morgan projects a 4% GDP growth for China in 2023; that’s 2.5 times more than what is projected for the global economy and 4 times more than projected US economic growth.”
“This strong growth will spill over into crypto, especially with Hong Kong legalizing crypto in a few days’ time which is a sign of China warming up to crypto. There is a very high probability that China will drive the next crypto bull run,” @100bviking added.
The move is part of an initiative to drive demand for block space, which help add to the value proposition of FTM tokens.
Fantom blockchain will reward projects that utilize its network and contribute toward high usage of gas fees in a bid to drive increased demand for block space, developers said Sunday in a tweet.
Eligible applications will be rewarded 15% of the gas fees they produce, providing developers with marginal extra income.
This is part of a planned move called the “dApp Gas Monetization Program,” which passed a community governance vote earlier this year.
That proposal sought to reduce fantom’s current burn rate in order to redirect more network fees directly to applications building on Fantom. Now that it has passed, the implementation will reduce Fantom’s burn rate from 20% to 5% and redirect the 15% reduction toward gas monetization.
This gas monetization will reward in-demand applications, retain developers and is said to help support Fantom’s network infrastructure.
Gas refers to a type of fee paid by blockchain users in the native token of that blockchain, such as fantom (FTM) in this case. Fees on Fantom are fractions of a few cents per transaction, but add up to a significant amount over time – one that is borne by the users of Fantom-based projects.
Data shows some projects are already benefiting from the monetization program just hours after its Sunday implementation.
Cross-chain bridge Stargate Finance has been 8,300 FTM, worth just over $2,600 at current prices. Decentralized exchange SpookySwap earned 978 FTM, or just over $300.
Short-term holders’ renewed profitability is a positive signal for near-term price action, according to on observer.
Bitcoin’s (BTC) near-term outlook appears constructive as blockchain data show short-term holders of the cryptocurrency are moving coins at a profit.
The seven-day moving average of the short-term holder’s (STH) spent output profit ratio (SOPR) has recently moved back above 1, according to blockchain analytics firm Glassnode.
“After a brief stint of coins moving at a loss, STH-SOPR is now back above 1,” analysts at Blockware Solutions said in a weekly newsletter. “This is bullish for near-term price action as it shows capitulation from short-term holders.”
The short-term holder SOPR of more than 1 means the average short-term holder in the market is selling coins at a profit. A reading below 1 is considered a sign of capitulation, while a reading of 1 indicates the average short-term holder is just breaking even.
The SOPR is calculated by dividing the realized dollar value of a spent output (UTXO) by the value at output creation to reflect the degree of realized profit for all coins moved on-chain. The short-term holder SOPR is focused on all wallets that have held onto their coins for less than 155 days.
The STH SOPR has historically stayed above 1 during bull markets. That’s understandable, as rallies allow short-term holders – mostly new entrants, active traders or weak hands – to liquidate their holdings at a price higher than the acquisition cost.
Besides, the area around 1 tends to act as a support level during bull runs, as holders, expecting continued price rallies, see their cost basis as a profitable buying opportunity. On the flip side, level 1 acts as resistance during bearish trends.
The SOPR has moved above 1 (Glassnode) (CoinDesk/Glassnode)
The STH SOPR crossed above 1 in January, signaling a bullish trend reversal and has since tested the support twice. Bitcoin has rallied over 68% this year, according to CoinDesk data. At press time, the cryptocurrency was trading near $27,900, having put in a high of $28,441 during the overnight trade, CoinDesk data show.
Bitcoin’s long-term holders also turned profitable a month ago, signaling a major bullish period ahead.
A technical analysis indicator called Bollinger bandwidth suggests dogecoin’s unusual calm could soon end with a pronounced move in either direction.
Dogecoin (DOGE), the meme cryptocurrency known for its rapid price moves, has been unusually calm this year, underperforming market leaders bitcoin (BTC) and ether (ETH) by a significant margin.
One technical analysis indicator called Bollinger bandwidth suggests it may be the calm before the storm.
The indicator illustrates periods of varying volatility relative to the price gyrations and is calculated by dividing the spread between the Bollinger bands by the 20-day simple moving average (SMA) of the cryptocurrency’s price. Bollinger bands are volatility lines placed two standard deviations above and below the 20-day SMA average of prices.
Periods of rising volatility are marked by a sharp increase in the distance between the two bands and the widening of the bandwidth. Conversely, the two bands contract and the width narrows or declines during a volatility lull.
An usually wide or high bandwidth indicates the ongoing bullish/bearish trend is nearing an end. Meanwhile, an unusually low bandwidth suggests “the market may be about to initiate a pronounced move in either direction, as Fidelity
When the bandwidth is too high, it’s a sign the current bullish/bearish trend may be ending. Meanwhile, an unusually low bandwidth suggests the market may be about to exit a consolidation pattern with a pronounced move in either direction, as Fidelity’s explainer says.
Dogecoin’s daily chart shows the bands have recently tightened, pushing the bandwidth down to 0.06, the lowest since February 2019, according to TradingView.
The Bollinger bands have recently tightening, pushing the bandwidth to lowest in over four years. (TradingView/CoinDesk) (TradingView/CoinDesk)
So, dogecoin could soon see a volatility explosion in line with the bandwidth’s tendency to alternate between expansion and contraction. Note that the impending volatility explosion is agnostic to price direction, meaning the big move can be bearish or bullish.
At press time, dogecoin traded near $0.073. The world’s leading meme cryptocurrency, currently valued at $10.22 billion, has risen just 3% this year. Meanwhile, market leaders bitcoin and ether have gained 68% and 60% respectively, per CoinDesk data.
Companies that market crypto alongside traditional securities might mislead consumers about access to fair advice and compensation, the European Securities and Markets Authority worries.
Investment firms in the European Union that offer crypto alongside more traditional products could be misleading their consumers into a false sense of security, the European Securities and Markets Authority (ESMA) said in a Thursday statement.
The EU agency said it’s worried that firms may use a seal of regulatory approval they have to offer traditional finance (TradFi) stocks or funds to make customers believe they’ll have access to sound financial advice or compensation schemes in the event of crypto mishaps.
EU rules known as the Markets in Financial Instruments Directive (MiFID) ensure investment intermediaries promote only appropriate financial products to clients – but don’t always apply to more exotic investment opportunities like gold, real estate or non-transferable loans.
The EU’s Markets in Crypto Assets regulation (MiCA) is set to bring MiFID-style rules to the sector, but the regime will only take effect in around 18 months. In the meantime, ESMA, a Paris-based agency that groups and coordinates national regulators, is worried some companies are encouraging and exploiting the ambiguity.
“ESMA recommends that investment firms take all necessary measures to ensure that clients are fully aware of the regulatory status of the product/service they are receiving and clearly disclose to clients when regulatory protections do not apply,” ESMA said, adding that regulatory approval shouldn’t be used as a promotional tool.
ESMA has previously warned people crypto can be risky, while an October paper highlighted novel threats such as hacks and consensus manipulation. The agency is also set to consult shortly on detailed secondary laws that will put MiCA into effect.
A lawyer for the accused reportedly said he admits “the facts of the prosecution,” during a May 25 trial hearing.
A former executive of South Korean cryptocurrency exchange Coinone, who was accused of taking bribes in return for listing certain coins, has acknowledged the charges, local news agency Yonhap reported on Thursday.
“Mr Jeon,” Coinone’s former director of listing, was accused of receiving nearly 2 billion won ($1.51 million) in return for listing virtual assets such as “Furiever Coin,” which was listed exclusively on the exchange, and has since been linked to a kidnapping and murder investigation in the Gangnam district in Seoul. Jeon’s broker, known as “Mr Ko,” is accused of facilitating the listings.
At a trial hearing on May 25, a lawyer for the two reportedly said: “I admit the facts of the prosecution.”
“Basically, we are acknowledging the facts of the prosecution, but since we have not been able to view all the evidence, we will present a final opinion after review,” the lawyer added.
Coinone’s listing team leader and another broker have also been accused, but their lawyers said they have yet to finish reviewing evidence and will respond to the charges at the next trial hearing on June 15.
Coinone didn’t immediately respond to a CoinDesk request for comment.
The latest price moves in crypto markets in context for May 26, 2023.
This article originally appeared in First Mover, CoinDesk’s daily newsletter putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.
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Digital Currency Group (DCG), the parent company of CoinDesk is closing down its trade execution and prime brokerage services unit, TradeBlock, citing crypto winter and regulatory uncertainties. The shutdown of the unit, which provides trading services to institutional investors, will be effective as of May 31, a DCG spokesperson told CoinDesk. TradeBlock was acquired in 2020 by CoinDesk, and was later spun out as its own standalone business. CoinDesk kept the index data operating from the deal, which was rebranded as CoinDesk Indices, and “has proven to be a successful acquisition,” the spokesperson said. The story was first reported by Bloomberg.
The number of ether (ETH) on exchanges has hit a low not seen since July 2016 as staking saps up available tokens. Data from Glassnode shows that as of Thursday, 14.85% of all ether was held in wallets owned by centralized exchanges. That’s the smallest proportion since ether was in its infancy during the summer of 2016. In contrast, during the bull market of 2021, the exchange balance was around 25%. Low exchange balances are typically thought to be a bullish sign as it means the supply of ether available for purchase is limited.
U.S. Bitcoin Corp. (USBTC) is set to become one of the largest miners in America following a deal to buy mining assets from bankrupt lender Celsius. The company is part of the Farenheit consortium that won a bankruptcy auction for the Celsius assets, which include a lending portfolio, cryptocurrencies and 121,800 mining machines. Once it brings all the mining rigs online, its fleet will total at least 270,000 mining rigs and computing power of 12.2.exahash/second (EH/s), the firm told CoinDesk, putting U.S. Bitcoin Corp. alongside other U.S. mining giants likes Riot Platforms (RIOT), Core Scientific (CORZ) and Marathon Digital Holdings (MARA).
More than 9.3 million tokens will be unlocked Sunday, representing 1.2% of AXAX’s total supply.
Millions of AVAX tokens – the native crypto of the Avalanche blockchain – will be unlocked on Sunday and distributed to key players in that ecosystem, adding a major 1.2% increase in total supply.
The 9.3 million tokens entering circulation on May 27 were worth roughly $130 million at press time. They’re set to go to the Avalanche Foundation, strategic partners and Ava Labs, as well as an airdrop, said Patrick Sutton, Avalanche’s communications chief.
“Tokens from unlocks aren’t automatically put to use. It just means the Foundation can now use them, but it is at their discretion when and how to use them,” added Sutton.
AVAX is the gas to Avalanche’s smart contracts ecosystem and also used to secure the blockchain via staking. It has remained stable in the past 24 hours, standing at $14.20, CoinDesk data shows.
“Token unlocks freak people out in general, but the upcoming Avalanche unlock has been mapped out for a while now and most sophisticated actors have adjusted for it,” said Lindsey Winder, CEO of token infrastructure firm Hedgey Finance.
Data from crypto analytics firm Token Insights shows 358.55 million AVAX remains locked, though Sutton says the figure of remaining locked tokens is 96.06 million, about a quarter of Token Insights’ figure.
