In the fast-paced world of cryptocurrencies, every week brings its own set of surprises and developments.
This week has been no exception, with Ethereum (ETH) and Binance USD (BUSD) making headlines for their historic dormant movements.
Additionally, the crypto market as a whole has shown resilience, bringing a sense of optimism among investors.
In this blog post, we will dive into the latest crypto news, explore the reasons behind Ethereum and BUSD’s dormant movements, and analyze the overall market performance.
Ethereum and BUSD: Historic Dormant Movements
The crypto community was abuzz with the recent dormant movements of Ethereum (ETH) and Binance USD (BUSD).
On-chain analytics firm Santiment noted this unusual activity in a tweet, shedding light on the intriguing data.
Ethereum, the second-largest cryptocurrency by market capitalization, and BUSD, a popular stablecoin, both experienced significant decreases in the average age of coins held in wallets.
To put it into perspective, BUSD’s average age dropped by a staggering 378 days, while Ethereum’s average age saw a notable decline of 26 days.
This shift in the age of dormant coins raised eyebrows and led to various speculations within the crypto community.
Speculations Surrounding Dormant Movements
One prominent theory regarding these historic dormant movements suggests a connection to recent events involving FTX, a major cryptocurrency exchange.
This decision came with certain restrictions, including selling in weekly batches, with an initial limit of $50 million, followed by weekly increments of $100 million.
Notably, Bitcoin (BTC) and Ethereum (ETH) holdings can only be sold after providing a 10-day notice to the creditors’ committee, ad hoc committee, and the U.S. trustee.
The timing of these sell-offs and the coinciding dormant movements have led some to speculate that FTX’s liquidations played a role in the shifting dynamics of Ethereum and BUSD.
The crypto market is no stranger to the domino effect, where one significant event can trigger a series of reactions throughout the ecosystem.
Ethereum’s Dormant ICO-Era Whale Wallets Come Alive
Adding another layer of intrigue to the story, Ethereum witnessed the reawakening of dormant ICO-era whale wallets in recent weeks.
One such wallet, which had been dormant for a staggering 8.1 years, suddenly sprung back to life.
This particular address held 185 ETH, valued at over $302,000.
The revival of these long-dormant wallets raises questions about the motivations behind these movements.
Are these early investors taking advantage of the recent price surges, or is there a larger strategy at play?
Binance’s Move to End Support for BUSD
In a separate development, Binance, one of the largest cryptocurrency exchanges in the world, took steps to gradually phase out support for the BUSD stablecoin.
As part of this process, Binance initiated the burning of several idle Binance-pegged tokens.
This move, which occurred on September 14, involved burning tokens like TUSDOLD (BSC), BUSD on the MATIC network, BUSD on both the BSC and BNB networks, and BUSD on the TRX network.
Binance’s decision to discontinue support for BUSD comes as the crypto exchange faces regulatory challenges.
The company urged its users to convert BUSD holdings into other crypto assets by February of the following year.
It’s worth noting that Paxos had already stopped issuing BUSD in February, citing regulatory pressures.
Positive Performance in the Crypto Market
Despite the various developments and uncertainties in the crypto space, the overall market has maintained a positive trajectory in recent times.
Major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Toncoin (TON), have displayed notable price surges.
This resurgence in crypto prices reflects a growing sense of confidence among investors.
Bitcoin’s Price Surge
Bitcoin, often considered the flagship cryptocurrency, has shown resilience in the face of recent challenges.
At the time of writing, Bitcoin’s price was up by 0.50%, trading at $26,547.25.
Over the past seven days, Bitcoin recorded a 2.67% increase in price, reaching as high as $26,840.50 during intraday trading.
This marked Bitcoin’s highest level for the month of September, alleviating concerns of a potential downturn.
Ethereum’s Steady Growth
Ethereum, the second-largest cryptocurrency, also demonstrated positive growth.
Its price surged by 0.97% to reach $1,636.73.
While Ethereum’s 24-hour trading volume decreased by 10.90% to $4,079,256,763, it still managed to maintain an upward trend over the past week, with a 0.16% price increase and an intraday high of $1,652.
Toncoin’s Impressive Gains
Toncoin, a lesser-known cryptocurrency, made headlines with a remarkable price increase of 12.79% on Saturday, trading at $2.20.
Its 24-hour trading volume saw a substantial spike of 115.61%, reaching $79,388,871.
Toncoin’s performance over the past seven days has been equally impressive, with a 22.70% gain and an intraday high of $2.25 on September 16.
Cardano’s Mixed Performance
Cardano (ADA), another prominent cryptocurrency, experienced a 0.56% price increase, trading at $0.2505.
However, over the course of the week, Cardano’s price declined by 1.34%. This mixed performance underscores the diversity of outcomes within the crypto market.
Meme Coins Struggle
While major cryptocurrencies thrived, meme coins faced challenges.
Dogecoin (DOGE) and Shiba Inu (SHIB), two popular meme coins, saw marginal declines in their prices.
Dogecoin’s price decreased by approximately 1.76%, while Shiba Inu’s price dipped by 2.42%.
However, within the past 24 hours, Dogecoin recorded a modest 0.88% price increase, reaching $0.06226, while Shiba Inu saw a slight uptick of 0.63%, trading at $0.000007413.
Crypto Exchange CoinEx’s Peculiar Plea to Hackers
In a rather unconventional move, cryptocurrency exchange CoinEx has taken an unusual step by publishing an open letter, addressing the hackers responsible for a recent $70 million heist.
In this letter, CoinEx extends an unexpected invitation for the hackers to engage in dialogue regarding the potential return of the stolen funds.
However, what truly makes this plea stand out is the cryptic call to action it includes.
The open letter begins with a cordial tone, stating,
“We sincerely invite you to work with us to resolve this issue in a secure, more reasonable, and more user-friendly manner. We encourage you to communicate and negotiate with us actively on the blockchain or through our official email address.”
This initial appeal seems like a customary request for cooperation, similar to what hacked firms often do when they seek to recover stolen assets.
What sets CoinEx’s approach apart, however, is the unexpected twist that follows.
The exchange goes on to express its willingness to offer the hackers a “generous” bug bounty as a reward for returning the pilfered funds.
#CoinExResponseUpdate – CoinEx’s Open Letter to Hackers
We entered this industry with a vision of “making the world a better place via blockchain.” Like millions of blockchain enthusiasts who share the same faith, we strive to build an open, interconnected, and…
— CoinEx Global (@coinexcom) September 15, 2023
While such offers are not uncommon in the crypto world, the strangeness of CoinEx’s request lies in the compliments it showers upon the hackers.
In an unusual turn of events, CoinEx applauds the hackers for their “technical expertise” and even extends an invitation to discuss how the exchange can enhance its security system.
This gesture raises eyebrows and adds a layer of complexity to the situation.
It’s rare for a hacked entity to commend the very individuals responsible for the breach, let alone seek their advice on security improvements.
U.S. Prosecutors Object to Jury Questions in SBF Trial
Moving on to a different facet of the cryptocurrency world, we find ourselves in the midst of legal proceedings involving Sam Bankman-Fried (SBF).
However, it appears that the questions posed by SBF’s legal team to prospective jurors have drawn objections from United States prosecutors.
In a letter dated September 15, addressed to U.S. District Court Judge Lewis A. Kaplan, the prosecutors expressed their disapproval of the proposed questions.
They argued that these questions are “unnecessarily intrusive” and could potentially prejudice a fair trial.
Specifically, the prosecutors take issue with inquiries about the jurors’ opinions of SBF and FTX, whether they can disregard information they’ve encountered in the news, and whether they’ve already formed opinions about SBF’s guilt or innocence.
The prosecutors contend that these questions exceed the bounds of voir dire, which is the process by which prospective jurors are questioned and selected for a jury.
They assert that a fair trial should not be compromised by SBF’s public image, and it would be unrealistic to expect jurors to disregard information readily available in the public domain.
Grayscale CEO’s Optimism Regarding U.S. Crypto Legislation
Shifting gears to the legislative arena, there appears to be optimism regarding the potential passage of cryptocurrency-related bills in the United States Congress by the end of the year.
Grayscale Investment CEO Michael Sonnenshein expressed this positive outlook during an interview with Yahoo Finance on September 14.
Sonnenshein noted a palpable momentum surrounding cryptocurrency-related legislation in Washington.
He stated, “I’m optimistic that we absolutely could [see legislation passed] if any Congress to date could do it, it certainly could be this Congress.”
Grayscale’s CEO went on to express encouragement based on the interactions the firm has had with lawmakers over the past year.
Of particular note is Sonnenshein’s appreciation for the efforts of Patrick McHenry, the Chairman of the U.S. House Financial Services Committee.
This presumably relates to the Digital Asset Market Structure Proposal draft that McHenry co-released on June 2.
The proposal has been a significant topic of discussion in the crypto industry and is seen as a potential stepping stone towards comprehensive cryptocurrency regulation in the United States.
Additional News Highlights
In other developments in the cryptocurrency space:
Bankrupt cryptocurrency exchange FTX has taken steps to restore its customer claims portal, implementing tighter security protocols.
This portal had previously been shut down due to a cyberattack.
Claimants can now resume submitting claims for assets they held on the exchange before it became insolvent.
The United States House Financial Services Committee is progressing with legislation aimed at preventing the issuance of a central bank digital currency (CBDC).
One of the bills, announced by Chairman Patrick McHenry, seeks to prohibit the Federal Reserve from initiating pilot programs to test CBDCs without approval from Congress.
Another bill aims to prevent banks from offering certain financial products to individuals.
These recent developments in the cryptocurrency landscape highlight the multifaceted nature of the industry, from unexpected pleas to hackers and legal proceedings to the potential for significant legislative changes on the horizon.
The crypto world continues to evolve and present new challenges and opportunities for all stakeholders involved.
Weekly Highlights and Market Sentiment
The positive performance of major cryptocurrencies amid ongoing global economic concerns has been a focal point in the crypto market.
Investors appeared to have brushed aside worries about the U.S. consumer price index (CPI) and producer price index (PPI) data, which exceeded expectations.
The prevailing belief is that the Federal Reserve may temporarily ease its hawkish stance on interest rate hikes, despite lingering concerns about high inflation.
The week introduced some uncertainty into the crypto market, particularly following the news of FTX receiving approval from a federal judge to liquidate its holdings.
In the midst of ongoing regulatory challenges, FTX’s decision to liquidate $3.4 billion worth of assets triggered panic among some investors.
However, the market’s recent performance suggests a more optimistic outlook among participants.
Global Crypto Market Overview
Taking a broader perspective, the global crypto market cap increased by 0.96% from the previous day, reaching $1.06 trillion.
However, the trading volume experienced a decline of 5.40%, settling at $25.28 billion.
These statistics reflect the dynamic nature of the crypto market, where rapid fluctuations are the norm.
In conclusion, the crypto market continues to be a source of intrigue and excitement, with Ethereum and BUSD’s historic dormant movements adding a layer of mystery to the ongoing narrative.
The resilience shown by major cryptocurrencies like Bitcoin, Ethereum, and Toncoin demonstrates the enduring appeal of digital assets.
While regulatory challenges persist and uncertainties loom, investors remain cautiously optimistic about the future of cryptocurrencies.
As we move forward, it’s essential to keep a close eye on the ever-evolving crypto landscape, as it has the potential to surprise us at every turn.
Whether you’re a seasoned crypto enthusiast or a newcomer to the space, staying informed and adaptable is key to navigating the exciting world of digital currencies.