Solana Leads the Altcoin Surge as 2023 Closes
As we bid farewell to 2023 and welcome the new year, the cryptocurrency market has seen some remarkable movements. Solana (SOL) has been at the forefront of token price gains, with an impressive 700% increase since the year’s start. Avalanche (AVAX), Stacks (STX), and Helium (HNT) also made considerable strides, with HNT notably rising 500% after its foray into the mobile space. Analysts are eyeing the tokenization of real-world assets, with Chris Newhouse from Infiniti Labs highlighting the ‘Decentralized Physical Infrastructure (DePIN) narrative’ as a key trend.
Three Arrows Capital Founders’ Assets Frozen
In a significant development, a British Virgin Islands court has frozen over $1 billion in assets belonging to the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC). The founders, Su Zhu and Kyle Davies, along with Davies’ wife, Kelly Chen, are affected by this worldwide order as Teneo Restructuring seeks to recover funds for creditors.
Bitcoin Reacts to Market Dynamics; Grayscale’s Trust Fund Narrows Discount
Bitcoin (BTC) experienced a rollercoaster, nearing $44,000 but then facing a downturn following a dip in U.S. stocks. Despite this, Grayscale’s Bitcoin Trust Fund (GBTC) has seen its discount to net asset value (NAV) narrow, holding near its smallest since August 2021, fueled by optimism over a potential U.S. bitcoin spot ETF approval.
Solana and Optimism’s OP Token Rally
Solana’s SOL approached $100 as the hype around its speedy transactions and cost-effectiveness continued. The network’s trading volumes and fees even surpassed those of Ethereum on a rolling seven-day basis. Layer 2 Optimism’s OP token also saw a 23% rise in the past 24 hours, with its total value locked (TVL) nearing $900 million.
Hong Kong Regulators Open to Crypto ETFs; Coinbase Registered in France
Hong Kong regulators have expressed readiness to consider applications for spot crypto ETFs, reflecting a shift in their stance towards retail exposure to digital assets. Meanwhile, Coinbase received registration as a Virtual Asset Services Provider in France, marking a significant milestone in its expansion.
Leadership Changes at Grayscale Investments
Grayscale Investments announced that Barry Silbert resigned as chairman, to be replaced by Mark Shifke, amidst the SEC’s consideration of its application to turn GBTC into a U.S. spot ETF.
Marketwide Decline Triggered by High Funding Rates and Mt. Gox Repayments
The market experienced a decline due to high funding rates, low liquidity, and news of crypto exchange Mt. Gox starting repayments to victims of its 2014 hack. Bitcoin, along with altcoins like Solana and Bitcoin protocol Ordinals, faced significant liquidations.
South Korea Increases Transparency in Crypto Holdings
South Korea is set to make crypto and other asset holdings of public officials public in a move to enhance transparency, starting next year.
Holiday Season Trading and Transaction Fees
The holiday season saw lower trading volumes, with not much significant news. However, the average transaction fees on the Bitcoin blockchain spiked to the highest since 2018, primarily due to the rising popularity of Ordinals and resulting blockchain congestion.
Conclusion
The closing week of 2023 has been eventful in the cryptocurrency market, with significant gains in altcoins, regulatory shifts, and market reactions to global events. As we enter 2024, these developments set the stage for an intriguing year ahead in crypto..
Comments