This week in cryptocurrency saw a flurry of activity, with major players making headlines alongside price fluctuations and industry developments. While Bitcoin and Ethereum remained relatively stable, other coins experienced significant swings, influenced by a mix of factors.
Meme Coin Rollercoaster
Shiba Inu (SHIB), a prominent meme coin, took a hit after a $230 million hack on the WazirX exchange, believed to be linked to the Lazarus Group. The price dropped by 8% before recovering slightly. However, meme coins weren’t all doom and gloom. BONK, another dog-themed meme coin, saw a price increase of 2.31% following a collaboration announcement with Manta Network, sparking a “Meme-ta szn” celebration. This partnership offered users rewards and fueled a potential recovery for the meme coin category.
Layer 2 and DeFi Developments
Layer 2 solutions, designed to scale Ethereum transactions, witnessed a positive trend. Italy’s state-owned bank issued a digital bond on Polygon, an Ethereum Layer 2 scaling solution, signifying potential real-world applications for these technologies. Additionally, DeFi protocol Ether.Fi launched season two of its airdrops, offering rewards to users.
Industry Buzz and Regulatory Updates
- Vitalik Buterin, the co-founder of Ethereum, urged the crypto community to prioritize a candidate’s values over their stance on crypto, suggesting a long-term perspective.
- The Artificial Intelligence (AI) sector surged by 34% with the launch of a new crypto fund by Grayscale, focusing on AI-related projects.
- Rumors swirled about the US Securities and Exchange Commission (SEC) potentially greenlighting Spot Ether ETFs from BlackRock, Franklin Templeton, and VanEck, with a possible launch date as early as July 23rd.
- USD Coin (USDC) circulation increased significantly, reflecting growing adoption of stablecoins.
Bitcoin and Ethereum Options Expiry
With approximately $1.79 billion in Bitcoin and Ethereum options set to expire on Friday, the market anticipated potential volatility. The approval of a Spot Ethereum ETF could significantly impact prices in the coming days.
Looking Ahead
While Bitcoin and Ethereum maintained their positions, the coming week could see price movements depending on ETF approval news. Meme coins like BONK might lead a recovery in the meme coin category, while Layer 2 tokens could benefit from the anticipated launch of the Spot Ethereum ETF. Overall, the crypto market continues to evolve, with established players and emerging trends shaping the landscape.