The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk Markets Reporter Was this newsletter forwarded to you? Sign up here. |
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Good morning. Here's what matters in the crypto world today. |
- Meta makes an upgrade to Instagram that leads to a Web3 token surge.
- Huobi Global is going tropical, appearing to confirm a move to the Caribbean.
- Divisions blur between the parts of Sam Bankman-Fried's crypto empire.
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Meta, parent of Facebook and Instagram, said it would use decentralized storage solution Arweave to archive creators' digital collectibles. That prompted a 60% price surge in AR, the Web3 platform's native token, boosting AR's market cap to $838 million and making it the third-largest Web3 token worldwide. The effect rippled through the metaverse: Web3 platforms Filecoin and Storj gained 10% and 25%, respectively. |
Crypto exchange Huobi Global, one of the largest crypto platforms in Asia, appeared to confirm it plans to move to the Caribbean by retweeting a post by Justin Sun, founder of the Tron blockchain network and an adviser to the company. The exchange, founded in China in 2013, is currently based in the Seychelles. On paper, billionaire Sam Bankman-Fried's cryptocurrency empire is split into two parts: FTX, his exchange, and Alameda Research, his trading firm – both giants in their respective industries. However, a private financial document shows Alameda's balance sheet includes billions of dollars in FTT, the native token of FTX, blurring the line between the two companies. |
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Market Insight: Crypto's Stadium Snafu |
Remember the "Crypto-Bowl?" Over the past year a number of crypto companies have sponsored sports stadiums in the U.S., including FTX and Crypto.com. However, those campaigns have not led to sustained user growth when you look at the number of active crypto wallets holding the exchanges' native tokens. |
For example, after Crypto.com sponsorship announcement in Nov. 2021, the number of active addresses holding the exchange's Cronos (CRO) token, spiked to almost 10,000 – or 5x the number prior to the deal – but sank back to Earth shortly after. Crypto.com, which is said to have laid off 40% of its staff this past summer, is reported to be quietly looking for an exit from its pricey sponsorship. Read the full story by Sam Reynolds. |
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Chart of the Day: The Layer 2 Surge |
- Adoption of layer 2 blockchains, led by Ethereum, has recently soared, with the number of transactions processed by these platforms reaching a record high of 5.78 million.
- The data from Orbiter.Finance, shown above, measures the number of transactions processed by layer 2 solutions over the past 12 months.
- Networks like Arbitrum and Optimism promise fast, scalable and secure networks, as well as a cheaper option when compared to the Ethereum mainnet.
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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