Daily News | BTC and ETH Experienced Weak Volatility; Trading Volume of Ethereum Spot ETFs Exceeded $1B on the First Day; Telegram CEO Promotes Crypto Game Catizen

2024-07-24, 03:52

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## Crypto Daily Digest: The trading volume of Ethereum spot ETFs exceeded 1 billion on the first day; Telegram CEO promotes crypto game Catizen; SingularityNET invests $53 million in AI infrastructure
First, let's examine the trading activity of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETFs. According to Farside Investor data, on July 23, Grayscale Bitcoin Spot ETF (GBTC) had a fund outflow of $27.3 million, the Bitwise Bitcoin Spot ETF (BITB) had an outflow of $70.3 million, while the ARK 21Shares Bitcoin Spot ETF (ARKB) had an outflow of $52.3 million.

The net inflow of Bitwise Ethereum Spot ETF (ETHW) on the first day was temporarily reported at $204 million; Fidelity Ethereum Spot ETF (FETH) had a net inflow of $71.3 million on the first day; The Grayscale Ethereum Spot ETF (ETHE) had a net inflow of $71.3 million on its first day.

Overall, current data shows that the Bitcoin spot ETF has ended several days of net inflows, while the Ethereum spot ETF had a first day trading volume exceeding $1 billion.

**Telegram CEO promotes crypto game Catizen**

Telegram CEO Pavel Durov announced in his messaging app that the “click-to-earn” crypto game Catizen has earned $16 million through in-App purchases. He said, "Catizen has exposed millions of people to blockchain technology because it utilizes TON based smart contracts to provide in-game rewards. The team has also built tools for other developers to easily launch games on Telegram and TON.”

Catizen is a mini game on Telegram with over 26 million players, published by Pluto Studio. The game is built on the Open Network (TON) blockchain and, like other similar games such as Hamster Kombat, can be accessed through the Telegram application. The project team also expressed their consideration for public welfare. Currently, 1% of the $16 million in revenue from the game will be donated to rescuing stray cats.

Durov revealed that Telegram currently has approximately 950 million global users. This user base provides support for the richness of the Telegram ecosystem. Recently, “click-to-earn” games such as Notcoin, Yescoin, Hamster Kombat, and Catizen have attracted millions of users. Catizen and Hamster Kombat are expected to launch tokens soon.

**Vitalik Buterin launched Circle STARKs to enhance blockchain efficiency**

Ethereum co-founder Vitalik Buterin has launched a new crypto protocol called Circle STARKs, aimed at improving the security and efficiency of blockchain. Buterin explained that this technological leap utilizes smaller fields such as Mersenne31 to significantly improve proof speed without sacrificing security.

The post points out that traditional Scalable Transparent Knowledge Argumentation (STARK) runs on 256 bit fields, which is secure but inefficient. Circle STARK utilizes smaller fields to reduce computational costs and accelerate proof speed. For example, 620,000 Poseidon2 hash values can be verified per second on an M3 laptop.

Buterin pointed out that the previous STARK implementation made smaller fields "naturally compatible with signature verification based on elliptic curves," but due to the large number involved, the efficiency was low. Circle STARK overcomes this issue by conducting multiple random checks and using extended fields to ensure security and efficiency.

**SingularityNET invests $53 million in AI infrastructure and modular supercomputers**

AI platform developer SingularityNET announced an investment of $53 million to build a modular supercomputer dedicated to decentralized general artificial intelligence (AGI). According to the announcement on July 23, the first phase of the investment will allocate $26.5 million for the purchase of modular data center solutions, GPUs and processors, AI servers, and other hardware. These devices come from companies such as Ecoblox, Nvidia, AMD, and Tenstorrent.

Modular supercomputer is a high-performance computing system that adopts a flexible and scalable architecture, allowing developers to add or replace modules as needed without having to replace the entire system. According to SingularityNET, this will be the world's first supercomputer dedicated to decentralized AGI and artificial intelligence research.

The SingularityNET supercomputer will optimize the training of deep neural networks (DNNs), large language models (LLMs), and hybrid neural symbolic computing architectures. CEO Ben Goertzel said, “The tremendous progress in the AI field stems from the integration of complex learning algorithms, cognitive architectures, large amounts of data, processing infrastructure, and energy.”

The development of artificial intelligence has driven the increasing demand for high-performance hardware. On July 20, Taiwan Semiconductor Manufacturing Company became the first Asian company with a market value exceeding one trillion US dollars, thanks to the growing demand from technology and manufacturing giants that rely on its Semiconductors, such as major customers like Apple, AMD, Intel, Nvidia, and Qualcomm.

In addition, the Monetary Authority of Singapore (MAS) recently allocated $74.36 million for the development of quantum computing and AI based solutions. <a href="/price/fetch-ai-fet" target="_blank" class="blog_inner_link">Fetch.ai</a> announced a $100 million investment in its infrastructure project, Fetch Compute, to deploy Nvidia GPUs and enhance the developer platform.

## Market Trends: BTC and ETH are experiencing weak fluctuations, while market hotspots are scarce
This morning, BTC fell below the key support level of $65,500 and is currently in a weak and volatile state. It is worth noting that the compensation from Mt. Gox has been distributed to some user accounts, which has temporarily caused selling pressure on the market. It is expected that BTC will continue to fluctuate and decline in the short term.

ETH also fell below $3,400. Although the Ethereum ETF has been approved, Grayscale's ETHE has been heavily sold, which may create sustained selling pressure on the market, similar to the BTC ETF's previous approval. Overall, Altcoins have generally declined, and there are no obvious hotspots in the market.
### Data Indicators
From the data indicators, the AHR999 index is 0.88 today, and the current market price is still suitable for long-term fixed investment. The Fear Greed Index is 69, indicating that the market sentiment has been in a greedy state for three consecutive days, and a short-term correction seems inevitable.
### Macroeconomic Impact
The three major US stock indices collectively closed down, reflecting the market's uncertainty about the future. Hasley has become the Democratic presidential candidate, with a current winning probability of 38%, while Trump's chances of being elected have dropped to 60%. Biden's withdrawal from the election has led to a delay in market expectations of interest rate cuts, which has also had a negative impact on overall risk asset market sentiment.
### Market Hotspots:
Ethereum ecosystem: Despite the overall market being weak, some tokens within the Ethereum ecosystem have performed relatively strongly. After the ETH ETF was approved, Ethereum ecosystem tokens such as ENS, REZ, MKR, etc. experienced an increase. ENS has received support from Vitalik Buterin multiple times, and its token performance is significantly stronger than other Ethereum ecosystem tokens.

New coin: The modular blockchain network Avail airdropped coins, but the market response was mediocre. Avail was developed under the leadership of Anurag Arjun, former co-founder of <a href="/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a>, and has received nearly $75 million in funding from investment institutions such as Dragonfly. However, Avail has not yet launched a major trading platform, which may be one of the reasons for the lackluster market response.
### To Sum Up
Overall, BTC and ETH are currently in a weak and volatile state, and the market lacks obvious hotspots in the short term. The compensation from Mt. Gox and the shipment of Grayscale ETHE have temporarily exerted selling pressure on the market, and may continue to fluctuate downward in the short term. The uncertainty of the macro economy and the greedy state of market sentiment also imply the risk of short-term pullback. However, based on the AHR999 index, the current market price is still suitable for long-term fixed investment.

## Macro: Disappointing returns in technology stocks, volatility in US and Asian stock markets
On July 23, the major stock indexes on Wall Street closed slightly lower. In the last few minutes of trading, investors turned their attention to Alphabet and Tesla, which were about to release their results.

Tesla's revenue unexpectedly increased, benefiting from price reductions and preferential policies, and the number of cars delivered exceeded analysts' expectations. Meanwhile, Alphabet's revenue exceeded expectations, thanks to the growth in digital advertising sales and strong demand for cloud computing services. However, prior to the release of the data, Tesla's stock price fell by 2%, while Alphabet's stock price rose by 0.1%.

Index performance: The Dow Jones Industrial Average fell 0.14%, the S&P 500 index fell 0.16%, and the Nasdaq Composite Index fell 0.06%. However, the small cap Russell 2000 index rose 1% on the same day.

The profitability of tech giants will determine whether the record breaking rise in 2024 can be sustained or whether the US stock market is overvalued. Whether investors will continue to shift from large cap stocks to underperforming industries is also a focus of attention.

On July 24, Asian stock markets performed poorly in early Wednesday trading, with the Japanese yen hitting a six week high before next week's central bank meeting, increasing market expectations for a possible interest rate hike.

The MSCI Asia Pacific stock index fell 0.08% to 566.26 points, the Nikkei index in Japan fell 0.23%, and the Taiwan financial market was closed due to a typhoon. China's stock market fell in volatile trading, with the Shanghai Composite Index falling 0.18% and the blue chip CSI 300 Index falling 0.2%, marking the largest daily decline since mid January.

A business survey released on Wednesday showed that manufacturing activity in Japan slightly shrank in July due to decreased production and new orders, and companies still face pressure from rising prices. Nevertheless, the expansion of the service industry drove the overall private sector activity in Japan to resume growth in July. The Purchasing Managers' Index (PMI) for Japan's manufacturing industry, released by the Australian branch bank, fell from 50.0 in June to 49.2 in July.

Investors are waiting for Thursday's US GDP data and Friday's Federal Reserve favored inflation indicator PCE data to assess their expectations of interest rate cuts this year. The Chicago Mercantile Exchange's Federal Reserve Watch tool shows that the market expects a rate cut of 62 basis points this year, and the September rate cut has reached 95%.

The overall strength of the US dollar is high, and traders are paying attention to Friday's inflation data and next week's Federal Reserve meeting. The Bank of Japan will also hold a meeting next week, with a 44% chance of raising interest rates by 10 basis points.

The exchange rate of the Japanese yen against the US dollar rose to 155.25 during the Asian session, the highest level since June 7th. On Tuesday, it rose nearly 1%, while the Japanese yen fell to a 38 year low of around 161.96 against the US dollar at the beginning of this month. A round of intervention by the central bank has prompted speculators to close popular and profitable arbitrage trades, where traders borrow Japanese yen at low interest rates and invest in assets denominated in US dollars for higher returns.

Regarding commodities, oil prices have risen due to the decrease in US crude oil inventories. Brent crude oil futures rose 0.25% to $81.21 per barrel in September, while West Texas Intermediate crude oil futures rose 0.26% to $77.16 per barrel in September.

Gold prices struggled to gain momentum on Wednesday as investors waited for US economic data that could affect the Fed's interest rate cut schedule. Spot gold remained almost unchanged, at $2,408.88 per ounce. US gold futures rose 0.1% to $2,408.80.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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