Bitget Hot Takes (July 04 - July 10)
As your most credible source of crypto news and knowledge, Bitget Academy is proud to release Bitget Hot Takes - our weekly newsletter series, the 360-degree onboarding guide for all crypto enthusiasts.
Central Themes
BGB continued to follow BNB closely in the categories of exchange tokens, recording a 26.7% in 7D volume.
BTC and ETH volume reached new lows in June.
More crypto-related firms are wobbling since the collapse of Three Arrows Capital (3AC).
New investments are being injected into Web3 Gaming and NFTs.
BGB Ranks 2nd In Exchange Tokens
The whole market saw signs of recovery as Bitcoin holds above the US$20,000 mark. Exchange tokens, therefore, have been increasing in value, with BNB leading the pack in terms of 7-day performance. BGB is the second best of last week with a weekly growth of 10.3%, which is actually very impressive as its competitors are BNB, FTT and OKB - all with a market cap of over US$1 billion.
Last week’s volume was recorded at US$65,125,342, that is, a rise of 26.7% with regards to the week before. Looking at the new Community Chat on CoinMarketCap, the overall sentiment for BGB has been bullish since June.
Want more mid-term reports on BGB? Check out our BGB Report for May and June 2022.
Spreading Contagion
The latest victim of ‘financial challenges’ is Vauld, a Singapore-headquartered crypto lending platform that is backed by Peter Thiel, Coinbase Ventures and Panthera Capital. The firm reported to be facing US$198 million in customer withdrawals since June 12, hence the decision to suspend withdrawals and trading is necessary for it to avoid any further downturn. Its European peer CoinLoan also had to lower withdrawals by 100 times this week, citing ‘market conditions’.
Crypto broker Voyager Digital, who had taken the direct hit from the default of 3AC, filed for Chapter 11 Bankruptcy on June 5. One of the most complex and expensive bankruptcy proceedings, Chapter 11 allows a company to restructure its debts and obligations while remaining in operation. Meanwhile, Celsius refused to move forward with lawyers’ recommendations for Chapter 11 Bankruptcy. The firm had finished paying its loan to MakerDAO on July 7 and successfully withdrew its collateral of 23,962.63 Bitcoin. The three lenders to be paid back by Celius until now include MakerDAO, Aave and Compound Finance.
Data from Kaiko shows that all crypto sectors experienced a loss of over 25% in Q2, 2022, with DeFi tokens being the worst performers. Bullish.com, the crypto exchange serving institutional clients with US$10 billion in funding, is another exchange rumoured to be cutting jobs. Another attempt to deal with the situation is Bitstamp’s plan to charge its customers inactivity fee, although the plan was abandoned shortly afterwards due to huge community backlash.
Source: Kaiko Analytics
The highlight of the week was when the hacker agreed to return US$7.6 million worth of crypto to the Solana-based Crema Finance in exchange for a US$1.6 million bounty.
Bitcoin Ethereum Roundup
New records - but not necessarily good ones - were established for June and early July. Bitcoin on-chain volume was the lowest since September 2021. It was even worse for Ethereum: its June 2022 volume fell to the 18-month trough.
Meanwhile, Bitcoin reserves on exchanges hit the lowest since July 2018, meaning withdrawals are happening on a large scale. Crypto investors have a general tendency to take their BTC off exchanges when prices fall and vice versa.
Low exchange balance and high volatility has led to wider bid-ask spread across exchanges, data from Kaiko demonstrates.
Source: Kaiko Analytics
On the other hand, data from Glassnode shows that 83% of locked ETH are currently at a loss. To kick start Ethereum 2.0, which promises to switch completely from Proof-Of-Work to Proof-Of-Stake, holders have deposited at least 32 ETH each since November 2020.
NFT Word Of The Week: Gaming
Amid turmoil in the markets, capital is still deployed into crypto. An inflow of at least US$106 million for promising projects was recorded last week, with notable names being Planetarium Labs (US$32 million), Tenderize (US$3 million), Hidden Road (US$50 million) and so on. Planetarium Labs was not the sole gaming project to emerge recently. The Pakistan-based Game Storm Studios, together with Ready Games, is about to launch two pet-themed Web3 games.
Other aspects of the NFT space have been calling for attention as well. The social network Reddit has announced its plan to launch a NFT marketplace for users to mint their avatars on-chain and use them for their Reddit accounts. A marketplace for ‘digital collectibles’, LimeWire, has on the other hand partnered with over 100 artists, including Travis Baker, Nicky Jam and Brandy for exclusive collections. The Polygon-based Teller Finance promises to extend the NFT opportunity to more investors with its new ‘Buy Now Pay Later’ feature, which supports selected artwork from Bored Ape Yacht Club, Mutant Ape Yacht Club, Moonbirds, Doodles, Cool Cats, Azuki and Meebits.
The Latest Bitget News
Determined to bring our users the best crypto experience, Bitget constantly adds new trading pairs each week alongside the interesting, bountiful events:
New Listings
MITUSDT
MATIC/USDC
LUNC/USDC
AVAX/USDC
BGB/USDC
LATUSDT
LUFFYUSDT
SHIT/USDC
USDD/USDC
UNI/USDC
OLE/USDT
New Events
CoinRush Fantaland With $50K Prize Pool
100 BGB for Grab!
Follow us for the latest updates:
Twitter | Telegram | LinkedIn | Facebook | Instagram
