ETF Approval Coming In November?

We’re just going to leave this here by one of the top analytics firms in the industry. We’re not saying it's the beginning of the bull market…. But it’s the beginning of the bull market

ICYMI

• Valkyrie CIO foresees potential approval of spot Bitcoin ETF by late November

• Elon Musk introduces 'xAI GROK' – a ChatGPT competitor

• A16z backed crypto index platform shifts on-chain with v2 release

• Ledger CEO expects launch of Recover service by year's end

• OpenSea trims workforce as CEO reveals new strategic direction

• PayPal receives SEC subpoena regarding PYUSD stablecoin

• SEC lawsuit alleges securities fraud by SafeMoon

Catalysts Of The Week

• Monday: Cartesi Dev Recap Call, Gods Unchained Crafting, COTI treasury voting, Floki AMA

• Tuesday: Seedify Chappys listing, Phala Network demo day, FluxOS V4 15.0, Sushi Swap AMA

• Wednesday: Oasis Network meet the team, Concordium AMA, Fantom Sonic Insight

• Thursday: PancakeSwap expand to 10th blockchain

• Friday: Terra V2.6.0 Proposal, Concordium tokenomics AMA, Lords BIB-17 vote

State of the Market: Things Are Looking Good

• In 2023, BTC has experienced an unprecedented period of stability with volatility rates consistently ranging between 20% to 40%, a stark contrast to the higher volatility seen in previous years

• Despite reduced volatility, BTC's performance has remained robust, delivering 100% returns year-to-date and surpassing the $35K mark 

• This stability, combined with solid performance, has resulted in a higher Sharpe Ratio, indicating that investors are receiving more significant returns for each unit of risk, making their investments more attractive

• DeFi has seen a 14% rise in TVL. Ethereum has maintained its dominance in DeFi, while Solana has experienced a 40% surge

• Security within web3 has significantly improved, with a 93% reduction in funds stolen through hacks and exploits, indicating a growing awareness among web3 users

• The NFT market experienced a notable resurgence in October, with trading volume increasing by $99M compared to the previous month, marking a 32% growth. This trend suggests a potential revival of interest in NFTs

• Despite the recent layoffs at OpenSea and a challenging year for many NFT projects, the overall trading volume of NFTs reached levels not seen since August, signalling a break in the yearlong downward trend

• Gaming dApps have gained prominence, now representing 62% of active wallets, with a 17% increase in activity since September according to a recent industry report by Dapp Radar

• The supply of the top five stablecoins, including USDT, USDC, BUSD, TUSD, and DAI, has started to grow again after a period of contraction, marking the first such growth since April 2022

Industry

• The U.S. Department of Justice has seized 30K of ETH worth $54M linked to illegal narcotics distribution in New Jersey, with the assets originally obtained during Ethereum's ICO in 2014

  The 30K of ETH was initially worth $9K, and was seized and linked to Christopher Castelluzo, who is currently serving prison sentences for drug distribution convictions

• HSBC, the London-based financial giant, has ventured into gold tokenization, allowing clients to own tokenized physical gold held in its London vault. This initiative leverages distributed ledger technology to create digital representations of clients' gold holdings

  Each token on HSBC's platform corresponds to 0.001 troy ounce of physical gold. HSBC's move into gold tokenization aligns with the broader trend of tokenizing real-world assets in the financial industry

• The trial of crypto trader Avi Eisenberg, accused of commodities manipulation and wire fraud in connection with the Mango Markets exploit, has been postponed until April 8, 2024, to allow more time for trial preparation

  Defense lawyers cited the complexity of the case, involving intricate crypto-native concepts, as a reason for needing more time to prepare. The trial is being held in the Southern District of New York, where recent convictions, including that of Sam Bankman-Fried, occurred in relatively quick turnaround cases

• ZachXBT warns against fake Ledger live app on the official Microsoft App Store

• Treehouse, a Singapore-based Web3 data firm, has acquired NFT analytics platform Origins to enhance its NFT product offerings and expand into the NFT analytics sector

• The Sandbox unveils open publishing and introduces a new Game Maker Fund worth 100 million SAND tokens during its inaugural Global Creators Day event held in Hong Kong

• The Securities and Futures Commission of Hong Kong released regulations for the tokenization of digital assets

• The US Supreme Court has decided to review the Coinbase arbitration dispute

• Bitfinex experiences a 'minor' phishing attack 

• Short sellers on Coinbase incur losses of $2.2B as Bitcoin ETF excitement reaches its peak

Projects

• Magic Eden is partnering with Yuga Labs to create an Ethereum NFT marketplace committed to enforcing creator royalties, launching by year-end

  This move follows Yuga Labs' plan to sever ties with OpenSea due to its shift towards a royalty-free model, causing a decline in revenue

• The Dubai International Financial Centre has approved Ripple's XRP and TON, expanding the list of crypto allowed within its special economic zone to five, including Bitcoin, Ethereum, and Litecoin 

  Over 4,000 financial institutions and companies in the DIFC can now use XRP and TON for transactions and services

• Lido has approved a proposal to incorporate a simple distributed validator technology module from Obol and SSV Network. This move aims to enhance diversification and decentralization within the Lido Node Operator

  The proposal also approved the use of the Lido DAO cover fund to cover module-slashing penalties and other associated costs

• Aave temporarily halts V2 operations on Ethereum and restricts specific assets on V3 in response to a reported issue

• The 19th Gitcoin Grants program is now open for participation

• The core team behind DEX aggregator CoW Swap suggests implementing fees as part of a six-month testing phase

• Nomic activates the nBTC upgrade to introduce tokenized Bitcoin into the Cosmos ecosystem

• Synapse Labs introduces Synapse X, a modular bridging solution

• Users can now safely use Frax Finance domains once again

• Dune is set to launch Dune AI

• Butter Finance has launched

• Voyager token surges as token supply is burned

In 2023, the digital asset market has shown impressive returns: BTC and ETH have outperformed traditional assets like gold by 93% and 39%, respectively. Notably, market corrections for BTC and ETH have been shallower than in previous cycles, indicating strong investor support and positive capital inflows

The dApp market is showing signs of resurgence in 'Uptober’: Crucial metrics are stabilizing or growing, hinting at a potential bull run. NEAR Protocol leads with the highest daily average unique active wallets (dUAW), growing by 7% to 687,000

There has been a notable shift in Bitcoin exchange flow: This has been marked by a significant increase in BTC withdrawals, indicating a growing preference among investors to hold their Bitcoin assets long-term off-exchange. This trend suggests a stronger belief in the long-term value of Bitcoin

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