DePIN tokens defy expectations

June 25, 2024

Reading time: 5 minutes

Bitcoin ETF outflows reach $1.3 billion amid price decline, market embraces fear

Key points:

  • Bitcoin saw a $1.3 billion outflow from U.S. spot ETFs in the last two weeks.

  • Its price has dropped 11.6% since 10 June.

News - The price of Bitcoin continues its downward spiral, coinciding with a significant exodus of capital from U.S. spot Bitcoin exchange-traded funds (ETFs).

Data from Farside Investors reveals a staggering $1.3 billion outflow from these ETFs over the past two weeks. Grayscale, the world's largest digital currency asset manager, led the pack with outflows exceeding $517.3 million during the same period.

Interestingly, BlackRock's Bitcoin ETF stands out as the sole exception, attracting a positive inflow of $43.1 million over the last two weeks.

Volatility increases - This trend aligns with the 11.6% price drop Bitcoin has experienced since 10 June. The recent outflows mark the steepest decline for spot Bitcoin ETFs since April when these investment vehicles witnessed net outflows surpassing $1.2 billion in a month-long stretch.

Analysts offer mixed predictions on the future of Bitcoin's price. Jonathan de Wet, chief investment officer at ZeroCap, anticipates a further dip to the $57,000 support level in the coming weeks. He attributes this potential drop to a combination of factors, including broader market weakness and the upcoming Mt. Gox creditor repayments expected in July.

Bullish take - However, de Wet maintains a long-term bullish outlook, citing the upcoming launch of an Ethereum ETF and potential easing measures later in 2024.

Other analysts downplay the potential impact of Mt. Gox repayments. Farhan Badami, an analyst at eToro, argues that Bitcoin is "forward-looking" and often factors in major events beforehand. He predicts a price stabilization in the coming weeks, followed by a renewed rally toward new highs in the near future.

Bitcoin DeFi platform Alex Lab blames North Korean hackers for $4M exploit

Key points:

  • Alex Lab DeFi platform suffers $4 million exploit.

  • Lazarus Group, North Korean hacking group, suspected culprit.

News - Alex Lab, a Bitcoin DeFi protocol, has accused the Lazarus Group, a notorious hacking collective believed to be backed by North Korea, of a $4 million exploit last month.

In a recent announcement, Alex Lab revealed that "substantial transaction evidence" links the attack to the Lazarus Group. The project claims to have identified two key addresses crucial in tracking the stolen assets: one linked to the initial exploit and another connected to the Lazarus Group itself.

"We are actively collaborating with international law enforcement and cybersecurity experts" to address the attack's implications and recover lost funds, Alex Lab stated.

Details about the exploit - The exploit, which occurred on 16 May, involved compromised private keys obtained through a phishing attack. The stolen assets were estimated at $4.3 million by security firm Certik.

Since then, Alex Lab has reportedly facilitated communication between Singaporean police and relevant cryptocurrency exchanges to safeguard the stolen assets during the ongoing investigation.

"Many of the traced STX tokens on centralized exchanges are currently frozen," Alex Lab confirmed. The exchanges have indicated continued freezing of these stolen assets until the police investigation concludes. The Alex Lab Foundation will announce further details regarding the return of recovered funds to affected users once possible.

DePin tokens surge amid Bitcoin's decline, highlighting sector strength

Key points:

  • DePin tokens surge while major cryptocurrencies dip.

  • The sector’s market cap reaches $25.8 billion.

News - While Bitcoin and other major cryptocurrencies struggle, Decentralized Physical Infrastructure Network (DePin) tokens are defying the trend with a surge in the last 24 hours. This sector is capturing the attention of investors seeking the next big innovation in the crypto space.

DePin tokens, representing a novel intersection of blockchain technology and real-world infrastructure, have seen their collective market capitalization balloon to $25.8 billion, a 7.49% increase in the past day according to CoinMarketCap. This impressive growth comes even as Bitcoin dips below $58,500.

Which token is leading the charge? Leading the charge are Arweave (AR) and Render (RNDR), with respective gains of 12.71% and 12.19% in the last 24 hours. Akash Network (AKT) isn't far behind, boasting a 10.56% increase.

Analysts credit DePin tokens' unique value proposition for this surge. These projects are bridging the gap between blockchain and the physical world, fostering innovation in sectors like computing, energy, telecommunications, and mapping.

This promising new frontier has attracted the attention of investment giants like Franklin Templeton. In their recent report, "DePIN: Traction in Supply & Early Signs of Increasing Demand," the firm highlights how DePin projects optimize operations by utilizing third-party participants within the blockchain network.

Mark Cuban offloads NFTs including Pudgy Penguins amidst market volatility

Key points:

  • Mark Cuban sells multiple NFTs from his collection.

  • Sales spark speculation within the NFT community.

News - Mark Cuban, the outspoken billionaire and owner of the Dallas Mavericks, has sent shockwaves through the NFT community with the sudden sale of multiple non-fungible tokens (NFTs) from his vast collection.

Data shows that Cuban's "markcuban.eth" wallet has offloaded 14 NFTs in the past two days, with most belonging to lesser-known collections. While the specific reasons remain unclear, Cuban's decision has sparked significant interest and speculation.

One notable sale involved Cuban's Pudgy Penguins NFT #6329, which fetched 9.065 Ethereum (ETH), roughly $30,000 at the time. Additionally, Cuban listed a Dallas Mavericks-themed NFT from the Proof of Culture series for a price of 15 ETH (approximately $50,194).

Despite these sales, Cuban's NFT portfolio remains substantial. OpenSea data indicates that his wallet, linked to both him and the Mavericks, still holds around 1,600 items with a combined value exceeding 1,900 ETH, or roughly $6.2 million.

This move comes as a surprise considering Cuban's previous bullish stance on NFTs. A vocal advocate since the 2021 boom, he has invested heavily in NFT projects and platforms. Notably, in late 2023, Cuban encouraged collectors to prioritize passion over speculation when buying NFTs.

The timing of Cuban's NFT sales coincides with a recent dip in the NFT market. The floor price of popular Bored Ape Yacht Club (BAYC) NFTs fell below 10 ETH last week, fueling speculation about Cuban's motivations.

CryptoSlam data further highlights a broader market decline, with NFT sales volume dropping by a significant 48.52% over the past 30 days.

Interesting facts

  • In the United States, people making over $100,000 annually constitute over 25% of all crypto-holders, but only 15% of the general population.

  • Over 21K cryptocurrencies have entered circulation since Bitcoin’s inception.

  • According to Digiconomist, one BTC transaction’s carbon footprint is equal to over 760K Visa transactions.

Top 3 coins of the day

Key points:

  • Unlike Ethereum, LINK was trading with bulls in charge.

  • At press time, it was valued at $14 with investors hoping for further gains.

What you should know - Chainlink defied the bearish trend by surging 6.65% in the last 24 hours, even as the broader cryptocurrency market struggles. While LINK has been stuck in a downtrend since late May, recent buying pressure has sparked a potential breakout. Daily charts show LINK trading within a downward channel since 30 May. A break above the channel on 24 June suggests a shift in sentiment, with the RSI also indicating a potential recovery. Additionally, LINK's correlation with Bitcoin has weakened recently, suggesting it could outperform Bitcoin in the near future (assumed 90-day trading horizon).

Arweave (AR)

Key points:

  • At press time, AR was trading at $29.92.

  • Its derivatives market’s trading volume has fallen considerably after 5 June.

What you should know - Arweave (AR) has been a standout performer, gaining an impressive 22.35% in the past week, placing it among the top gainers. This surge comes after a brief dip towards its $25 support level on 18 June. Since then, AR has rebounded a strong 32%, showcasing resilience. Looking ahead, analysts anticipate a potential resistance zone between $34 and $37. Additionally, RSI suggests room for further price increases. This confluence of a strong rebound and positive technical signals paints a bullish picture for Arweave in the short term. However, keeping an eye on price movements around the resistance zone will be crucial for gauging the sustainability of this upswing.

Polygon (MATIC)

Key points:

  • MATIC was up 3.34% over the last seven days.

  • Buying pressure and greed have been dominating MATIC’s market.

What you should know - MATIC has been charting its own course, defying Bitcoin's recent movements. Encouragingly, buying pressure has emerged on both higher and lower timeframes, suggesting a potential shift in momentum. The key hurdle to overcome is the near-term resistance level around $0.7268. Technical indicators are hinting at a possible bullish breakout. The Moving Average Convergence Divergence (MACD) is on the verge of a bullish divergence, which often precedes a price surge. Overall, the short-term outlook for MATIC appears cautiously optimistic. A confirmed bullish MACD divergence and a surge above $0.7268 could signal further price gains.

How was today's newsletter?

Login or Subscribe to participate in polls.