BTC is currently trading around $26,500 and ETH around $1,800. Notable gainers in the last 24 hours are KAVA, LDO, and XRD. The global crypto market cap is ~$1.15T, down ~2.1% over the last day. DeFi Total Value Locked is ~$46b and BTC dominance is around 48%.
Equities are largely flat while crypto continued its downward slide. Treasury yields are rising for ultrashort tenors as heightened government default concerns continue to linger. The rise is predominantly captured in 1M and 2M yields, and 1M yields still sit at a nearly ~80 bp premium versus 2M yields due to fiscal cliff concerns. In crypto-specific news, Ethereum made headlines yesterday afternoon as the chain’s finality was unexpectedly delayed. While details on the catalyst remain sparse as we await a post-mortem, several media organizations have mischaracterized the event as Ethereum halting or going down. Ethereum continued to process transactions and blocks during this hiccup, and an individual transacting on the chain would not have noticed a difference during this period. The true implication is that there was a higher chance of a block reorganization for a few minutes longer than usual. Typically reorgs cannot ‘practically’ occur on Ethereum after about ~15 minutes, but this dragged on slightly longer yesterday. Ultimately a reorg did not occur, but for those interested in the details, see our previous coverage of safety versus liveness in the Beacon Chain section here.
Notable news includes: Congressman Brad Sherman penned a letter to the SEC inquiring about investor protections for GBTC holders; the Chair of the House’s Financial Services Committee wrote to the SEC voicing concerns that the proposed custody rule goes beyond the agency’s jurisdiction; Paradigm filed an amicus brief supporting Coinbase’s legal action against the SEC seeking clear regulatory guidelines; Binance US is reportedly contemplating a reduction in CZ’s stake due to concerns over the crackdown on Binance Int’l; Metamask added functionality for U.S. users to purchase ETH via PayPal; Uniswap’s trading volume outpaced Coinbase for the fourth consecutive month; Threshold Network went live to bridge bitcoin to 20 different blockchains; Do Kwon’s bail terms were accepted by a Montenegro court; and, SPONGE is the latest memecoin flying higher after being listed on Gate and Bitget.
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