Crypto Assets Market Dynamics

Regulation and Policy

Korean crypto exchanges may face hefty fines.

A South Korean lawmaker stated that a certain crypto assets exchange could face fines of up to 183 trillion won due to KYC violations and other actions. The exchange has over 9.57 million violations, of which about 9.34 million are related to customer identity verification issues. The Financial Information Analysis Institute has implemented business suspension and personnel accountability, but the specific amount of the fine has not yet been determined.

A French lawmaker proposed using surplus nuclear power for mining.

Recently, French lawmakers submitted a bill to the National Assembly proposing a five-year pilot program for Bitcoin mining, utilizing surplus electricity from nuclear power plants for mining. It is estimated that using 1 gigawatt of surplus electricity could generate an annual revenue of $100 million to $150 million for France. This move not only helps cover the maintenance costs of nuclear power plants but also prevents electricity waste and contributes to grid balance. If the pilot program is approved, it will be launched immediately and assessed for feasibility after six months.

UK lawmakers call for a ban on Crypto Assets political donations

Several UK lawmakers have recently called for a ban on the use of Crypto Assets for political donations, expressing concerns about their traceability and the potential for foreign interference. The Minister for the Cabinet Office stated that existing legislation needs timely updates to ensure transparency and credibility in political financing. Previously, the announcement by the Reform Party in the UK to accept Bitcoin donations raised concerns. In addition to the UK, countries like Ireland and some states in the United States have also imposed bans on Crypto Assets political donations.

Thailand plans to launch a national Crypto Assets sandbox.

The Thai Securities and Exchange Commission and the central bank plan to launch a national Crypto Assets sandbox, allowing foreign tourists to use digital assets in Thailand. This move aims to promote the application of Crypto Assets in the tourism industry and provide valuable experience for regulators.

Market Analysis

CryptoQuant: Bitcoin still has room for short-term growth.

The cryptocurrency analysis agency CryptoQuant pointed out that the MVRV indicator for short-term Bitcoin holders shows that there is still room for growth in the current market. MVRV is an indicator that measures unrealized profits, currently at only 1.15, which is still some distance from the key point of 1.35. Analysts believe that the price of Bitcoin may have an upward potential of 20%-25% before entering a new round of profit-taking.

The trading volume of ETH perpetual contracts surpasses BTC.

The global perpetual contract trading volume of Ethereum reached $90.82 billion, surpassing Bitcoin's $82.93 billion for the first time, ranking first in the entire market. This change reflects the rising enthusiasm in the market for Ethereum.

Project Dynamics

Coinbase launched the Base App

Coinbase officially launched the Base App, upgrading the original Coinbase Wallet into a comprehensive platform that integrates social features, mini-apps, trading, and USDC instant payments. The new platform is based on the Ethereum Layer 2 Base ecosystem, allowing users to view friends' transactions in real-time on social feeds, directly exchange tokens, and monetize content creator earnings through the Farcaster protocol. Coinbase stated that this move aims to make on-chain operations simpler and more user-friendly.

Orca plans to launch a Launchpad

The liquidity protocol Orca of the Solana ecosystem plans to launch its new token issuance platform Launchpad at the end of July or early August. One of the main features of this platform is the development of a new mechanism designed to allow real users to have an advantage over automated bots when participating in new coin sales, in order to enhance fairness and user experience.

Data and Trends

Ethereum spot ETF hits an all-time high

Ethereum spot ETF daily net inflow reached $727 million, setting a new historical high. Among them, a certain large asset management company's ETF product net inflow was $499 million. The current total net asset value of the ETF has reached $16.41 billion, accounting for 4.02% of ETH's market value.

Bitcoin spot ETF has seen a net inflow for 10 consecutive days.

The Bitcoin spot ETF has recorded net inflows for the 10th consecutive day, with a single-day net inflow of $799 million. Currently, the total net asset value of the ETF reaches $153.762 billion, accounting for 6.45% of the BTC market capitalization, with a historical cumulative net inflow of $53.865 billion.

Tether's circulation surpassed 16 billion USD.

The stablecoin USDT currently has a net circulation of 160.261 billion USD, setting a new historical high. Among various public chains, Tron, Ethereum, and Solana dominate. Tether's CEO stated that this achievement highlights the importance of USDT as a digital dollar in emerging markets.

Institutional Dynamics

Crypto infrastructure giant acquires blockchain data company

A certain crypto infrastructure company announced the acquisition of blockchain data provider Coin Metrics for over $100 million. This acquisition aims to integrate on-chain data services to provide institutional clients with a one-stop solution for digital asset trading and portfolio management.

Public companies intensify investment in Bitcoin

Several listed companies have recently increased their investments in Bitcoin. A Nasdaq-listed company plans to accumulate 6,000 coins in the next few years, while another UK-listed company has increased its holding by 325 coins, bringing its total holdings to 1,600 coins. This reflects a growing confidence among enterprises in the long-term value of Bitcoin.