TL;DR

• Over the past 24 hours, BTC price decreased 0.54% but rebounded to above $59,500, with short-term support at $59,500.
• Bitcoin spot ETFs saw a net outflow of $110 million yesterday, while Ethereum spot ETFs saw a net Inflow of $3.06 million yesterday.
• In the fifth season of Optimism’s airdrop, the number of active addresses surged to a near one-year high of 38,000 yesterday.
• Ripple launched a cryptocurrency custody service to assist banks and fintech companies.
• The IRS is facing a new lawsuit over its tax policy on crypto staking.
• Uniswap has launched Unichain, a Layer-2 network based on Optimism technology, to accelerate decentralized finance transactions.

Market Analysis

Based on Gate.io market data, as of 4:00 AM on October 11 (UTC+0)[1]:

• BTC – In the past 24 hours, BTC decreased by 0.54%, currently trading at $60,619. The highest price reached $61,308, showing a short-term downward trend overall. At 6:00 PM on October 10, BTC experienced a significant drop, reaching a low of $58,937 before the hourly candlestick recovered to above $59,500. The current support level is at $59,500,with potential for further decline if breached[2].

• ETH – Over the past 24 hours, the price of ETH has risen by 0.65%, currently trading at $2,407. The highest price reached $2,421, but similar to BTC, it shows a short-term downward trend, with a low of $2,331. In the past 24 hours, ETH tested the $2,355 support level twice. It is important to monitor this support level, as breaking below it may lead to further declines[3].

• ETF – According to SoSoValue data, on October 10, U.S. Bitcoin spot ETFs saw a total net outflow of $121 million[4], while U.S. Ethereum spot ETFs recorded a total net inflow of $3.06 million[5].
• Altcoins – Sectors such as cross-chain communication, infrastructure, and privacy coins increased by 158.17%, 15.85%, and 7.80%, respectively[6].
• U.S. Stock Market Indices – The S&P 500 index dropped by 0.21%, the Nasdaq index fell by 0.05%, and the Dow Jones index declined by 0.14%[7].
• Spot Gold – Spot gold prices rose to $2,636 per ounce, up by 1.07% for the day[8].
• Fear and Greed Index – The Fear and Greed Index dropped from 39 yesterday to 32, signaling increased market fear[9].

Top Performers

According to Gate.io market data[10], based on trading volume and price performance over the past 24 hours, the following altcoin is trending:

KARRAT – It saw a single-day increase of approximately 23.8%, with a circulating market cap of $59.06 million.

The KARRAT protocol is a decentralized gaming infrastructure layer, powered by $KARRAT, and supported by a truly decentralized community committed to embracing the new era of gaming, entertainment, and AI products.

The recent price surge could be attributed to the growing popularity of AI and gaming concepts, driving sector-wide momentum.

KMNO – It experienced a single-day increase of approximately 11.5%, with a circulating market cap of $134 million.

Kamino Finance is an innovative decentralized finance (DeFi) protocol designed to offer users the simplest way to provide liquidity and earn on-chain yields. The protocol combines features such as lending, liquidity provision, auto-compounding, and leverage, quickly becoming the most popular liquidity provision product on Solana, solidifying its position in the DeFi space.

Recently, KMNO gained widespread attention following its listing on a new centralized exchange, a development that benefited from the ongoing growth of the DeFi market. This development has been seen as a recognition of Kamino’s liquidity management solutions, further drawing the market’s focus, which likely contributed to the token’s price increase.

UNI – It experienced a single-day increase of approximately 10.6%, with a circulating market cap of $6.1 billion.

Uniswap is a leading decentralized cryptocurrency exchange that allows users to trade without relying on intermediaries. The UNI token empowers holders the right to participate in protocol governance, enabling users to vote on key decisions, such as treasury usage and future upgrades.

Yesterday, Uniswap Labs launched a new Layer-2 network called Unichain, which aims to improve transaction speed and reduce costs while enhancing liquidity. This development has drawn market attention to Uniswap, likely increasing demand for the UNI token and driving its price up. As the decentralized finance market continues to evolve, UNI’s potential for future growth is increasingly recognized[11].

Data Highlights

Optimism’s Fifth Season Airdrop Sees Active Addresses Surge to Nearly 38,000, a One-Year High
Ethereum Layer-2 network Optimism announced the launch of its fifth season airdrop, distributing over 10 million OP tokens to 54,000 unique addresses. Eligibility for the airdrop was based on users’ interaction levels, with varying multipliers applied. Users who interacted with at least 20 unique contracts on the Superchain between March and September 2024, and maintained a contract-to-transaction ratio of 10%, qualified to claim tokens[12].

Driven by the latest airdrop, active addresses on Optimism surged to 38,000 yesterday, the highest level since September 2023. At the same time, the number of zero-balance addresses increased to 4,420, suggesting some users immediately sold their tokens upon receipt. This behavior may indicate a preference among participants for short-term arbitrage rather than long-term holding[13].

Base Network’s USDC Transfer Volume Hits New High, Accounting for 36% of Top Chains’ Monthly Volume
On October 10, the Base network reached a historic milestone in USDC transfer volume, handling nearly $15 billion in a single day. This significant transaction volume indicates that more users and projects are opting to use the Base network for large-scale fund transfers. Particularly in the stablecoin space, Base has become a critical platform for capital flow due to its superior processing efficiency and liquidity advantages.

Additionally, the total USDC transfer volume processed by the Base network this month has surpassed $100 billion, accounting for 36% of the total circulating USDC volume across leading blockchains. This data further highlights Base’s growing share in the stablecoin transfer market, underscoring its influence and appeal in the crypto space. As more capital flows through the Base network, its central role in the DeFi ecosystem continues to strengthen, signaling that the network is poised to drive further innovation and progress in financial services[14].

Bitcoin ETFs Saw a Net Outflow of $121 Million Yesterday
According to SoSoValue data, U.S. Bitcoin spot ETFs experienced a net outflow of $121 million on October 10, with a total daily trading volume of $1.356 billion. The cumulative net inflow to date stands at $18.554 billion, while the total value of BTC managed by these ETFs is $55.151 billion, representing 4.67% of the total market capitalization.

Ethereum ETFs Saw a Net Inflow of $3.06 Million Yesterday
According to SoSoValue data, U.S. Ethereum spot ETFs recorded a net inflow of $3.06 million on October 10, with a total daily trading volume of $131 million. The cumulative net outflow to date is $559 million, while the total value of ETH managed by these ETFs stands at $6.472 billion, representing 2.27% of the total market capitalization.

Spotlight Analysis

Ripple Launches Cryptocurrency Custody Service to Support Banks and Fintech Companies
On October 9, 2024, U.S. blockchain company Ripple announced the launch of Ripple Custody, a cryptocurrency custody service specifically designed for banks and fintech companies. This move marks Ripple’s expansion into the crypto asset custody space, aiming to help clients securely store and manage digital assets. Ripple Custody integrates the XRP ledger and offers pre-set operations and policy configurations, along with anti-money laundering (AML) monitoring capabilities.

Ripple is well-known for its XRP cryptocurrency and the blockchain payment platform RippleNet. The introduction of this custody service marks a significant step in diversifying its business. Through this service, Ripple aims not only to provide secure storage but also to enable clients to tokenize real-world assets (such as fiat currencies, gold, oil, etc.) and facilitate fast, low-cost transactions on decentralized trading platforms.

With the rapid growth of the cryptocurrency custody market, Ripple’s custody business has seen remarkable growth, with a year-over-year increase of over 250%. The service is already operational in seven countries, serving major clients such as HSBC and Société Générale. Meanwhile, Ripple continues to navigate the legal challenges posed by the U.S. Securities and Exchange Commission (SEC) regarding its XRP token[15].

IRS Faces New Lawsuit Over Cryptocurrency Staking Tax Policy
Recently, with support from the U.S. cryptocurrency think tank Coin Center, American citizen Josh Jarrett has once again filed a lawsuit against the Internal Revenue Service (IRS), challenging its tax policy on cryptocurrency staking rewards. According to current IRS regulations, block rewards are treated as taxable income when received by validators. However, Jarrett and Coin Center argue that this approach is flawed, asserting that block rewards should be considered as newly created assets, similar to crops or minerals, and should only be taxed when sold or exchanged for cash, not upon receipt[16].

Jarrett emphasizes that staking rewards are a new type of asset, not direct income, and taxing them before they are sold is unfair and could lead to double taxation. He believes that the current tax policy places unnecessary regulatory pressure on crypto node operators and hinders the growth of the entire cryptocurrency industry. This is Jarrett’s second legal action on this issue, aimed at prompting the IRS to revise its current policy, particularly regarding the taxation of cryptocurrency staking rewards. The lawsuit claims that the IRS’s stance could stifle innovation and adoption of blockchain technology, imposing a heavy burden on industry development.

In a broader context, lawsuits like this highlight the tension between regulatory bodies and emerging technologies. As a novel form of economic activity, the tax policy for cryptocurrency staking rewards needs to evolve to strike a balance between protecting the tax base and avoiding excessive restrictions on innovation. If the IRS does not adjust its policies soon, it may drive more industry participants to relocate their operations to regions with more accommodating tax regulations, potentially weakening the U.S.’s competitiveness in the global blockchain sector.

Uniswap Launches Unichain, a Layer-2 Network Based on Optimism Technology to Accelerate DeFi Transactions
On October 10, Uniswap Labs launched Unichain, a new Layer-2 network built on Optimism technology, aimed at enhancing the speed and liquidity of decentralized finance (DeFi) transactions. Unichain utilizes Optimism’s OP Stack architecture and has officially gone live on its test network, marking a significant step for Uniswap towards building its own blockchain. The goal is to provide users with a more efficient and cost-effective trading experience. To enhance network security, Unichain will establish a decentralized validation network, allowing nodes to participate in block validation, thereby reducing the risk of block conflicts or invalid blocks.

Unichain will also be deeply integrated with Optimism’s Superchain ecosystem, supporting cross-chain messaging and liquidity sharing. Uniswap Labs aims to create a more efficient and low-cost DeFi ecosystem through Unichain, promoting the widespread adoption of blockchain technology and encouraging developers to actively participate in its development[17].

From an industry development perspective, the launch of Unichain not only reflects Uniswap’s urgent need to address current blockchain performance issues but also sets a new benchmark for the future of DeFi. Amid the scalability challenges faced by the Ethereum mainnet, the implementation of Layer-2 solutions is expected to significantly lower transaction costs and improve network scalability, making it highly attractive to both users and developers. The synergy between Unichain and Superchain will facilitate cross-chain liquidity and interoperability, reducing isolation between blockchain networks and further accelerating the adoption and innovation of DeFi applications. However, as more Layer-2 solutions emerge, Uniswap and Unichain will face challenges in maintaining technological leadership and user retention. Moving forward, Uniswap must continuously optimize decentralized validation, security measures, and user experience, which will be critical for Unichain’s success.

Funding News

According to RootData, from October 10 to 11, three projects publicly announced financing, with the highest amount reaching $10 million and a total exceeding $24 million, covering sectors such as gaming, DeFi, and public blockchains:[18]

Yala Finance —— On October 10, Yala announced the completion of an $8 million seed funding round led by Polychain and Ethereal Ventures. The platform combines Bitcoin liquidity with the stablecoin yUSD, enhancing the efficiency of the Bitcoin ecosystem without the need for bridges. Yala offers broader use cases for Bitcoin holders and participants while maintaining the security of Bitcoin infrastructure.

Apex Fusion —— Also on October 10, Apex Fusion announced the completion of a $6 million private funding round, with a valuation of $180 million. The investors were not disclosed. Apex Fusion is a multi-chain Layer 1 network that merges the advantages of UTXO and EVM transaction execution methods, offering blockchain developers a decentralized and frictionless development experience.

Dragonz Land —— Dragonz Land announced on October 10 that it secured $9 million in funding, with participation from Syndicate Capital Group. As a Play-to-Earn game, Dragonz Land promotes the development of the Web3 ecosystem through NFTs, dynamic gameplay, and community interaction. Players can collect, upgrade, and trade cards from different factions, earning in-game tokens by completing tasks.

Airdrop Opportunities

OP Token Airdrop Overview
Early this morning, Optimism announced on the X platform its fifth OP token airdrop, distributing over 10 million OP tokens to more than 54,000 unique addresses. Details on how to check eligibility and claim tokens can be found via the provided reference[19]. Following the completion of this fifth round, approximately 550 million OP tokens remain for future airdrops. For “airdrop hunters,” this round offers valuable insights, as studying the rules from previous airdrops and maintaining active participation may increase the chances of receiving more tokens in future airdrops.

Steps to Participate in the Airdrop:

1. Visit the OP airdrop eligibility check and claim page.
2. Verify whether you meet the eligibility criteria for claiming.
3. Review the rules of previous airdrops for insights.
4. Keep your address active and stay informed about future ecosystem activities to increase chances for upcoming airdrops.

Reminder:
Airdrop plans and participation methods may be updated at any time. It is recommended that users follow OP’s official channels for the latest information. Additionally, users should exercise caution, be aware of risks, and conduct thorough research before participating. Gate.io does not guarantee the distribution of future airdrop rewards.

Reference：

1. Gate.io, https://www.gate.io/price
2. Gate.io, https://www.gate.io/trade/BTC_USDT
3. Gate.io, https://www.gate.io/trade/ETH_USDT
4. SoSoValue, https://sosovalue.xyz/assets/etf/us-btc-spot
5. SoSoValue, https://sosovalue.xyz/assets/etf/us-eth-spot
6. CoinGecko, https://www.coingecko.com/en/categories
7. Investing, https://investing.com/indices/usa-indices
8. Investing, https://investing.com/currencies/xau-usd
9. Gate.io, https://www.gate.io/bigdata/homeindex
10. Gate.io, https://www.gate.io/price
11. X，https://x.com/Uniswap/status/1844363396382408774
12. X, https://x.com/Optimism/status/1844066394440417398
13. IntoTheBlock, https://app.intotheblock.com/coin/OP/deep-dive?group=network&chart=addressStats
14. Artemis, https://app.artemisanalytics.com/stablecoins?tab=usage
15. CNBC, https://www.cnbc.com/2024/10/10/ripple-launches-crypto-storage-services-for-banks-in-bid-to-diversify.html
16. Coingape, https://coingape.com/us-irs-faces-new-lawsuit-over-crypto-staking-tax-policy/
17. Uniswap, https://x.com/Uniswap/status/1844363396382408774
18. Rootdata，https://www.rootdata.com/Fundraising
19. Optimism, https://app.optimism.io/airdrops/5

Gate Research
Gate Research is a comprehensive blockchain and crypto research platform, providing readers with in-depth content, including technical analysis, hot insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis.

Click the Link to learn more

Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they are purchasing before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.