The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Tueday! Here's what you need to know today in crypto: |
- Crypto markets don't react much to PayPal's entry into stablecoins.
- PayPal becomes the first major financial company to issue a stablecoin.
- Bitstamp raises money to expand the number of markets it serves.
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CoinDesk Market Index (CMI): 1,217 +0.3%
Bitcoin (BTC): $29,314 +0.8%
Ether (ETC): $1,833 −0.0%
S&P 500: 4,518.44 +0.9%
Gold: $1,966 +1.7%
Nikkei 225: 32,254.56 +0.2% |
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Bitcoin and ether remained little changed over the past 24 hours, another sign of just how tepid the market is, as even the entry of payment giant PayPal (PYPL) into the stablecoin market failed to move the needle. Both bitcoin and ether haven't moved much in price on the day and have seen low trading volumes over the past few weeks. "The prevailing outlook suggests that in the absence of an ETF-triggered catalyst or substantial cryptocurrency-related drama, these price levels could persist for an extended period," Matteo Bottacini, at Crypto Finance AG, wrote in a morning note. |
PayPal USD (PYUSD) is the latest stablecoin to come to market. Stablecoins are digital tokens tied to a stable asset, typically the U.S. dollar. PayPal's Ethereum-based token will soon be available to PayPal users in the U.S. This is the first time a major financial company is issuing its own stablecoin. Users can transfer PYUSD between PayPal and supported external digital wallets, use the tokens to pay for goods and services or convert any of PayPal's supported cryptocurrencies to and from PYUSD. Crypto exchange Bitstamp is raising a round to expand the number of markets it serves around the world, according to a report from Bloomberg. "Bitstamp is not for sale, and we are not actively looking to sell the company," CEO Jean-Baptiste Graftieaux said in a statement to Bloomberg. "Our current and exclusive priority is to raise money through strategic investors to accelerate Bitstamp's growth by providing new products and services to retail and institutional crypto customers." Galaxy Digital Holdings is said to be an adviser in the round. Bitstamp will use the funds raised to launch a licensed derivatives trading operation in Europe and expand in more markets in Asia. |
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Market Insight: Holding More in Vogue Now |
More than 13.3 million bitcoins worth $388.7 billion have been dormant on-chain for at least a year, according to data tracked by blockchain analytics firm Glassnode. The tally equals 68.54% of the circulating supply of 19.5 million BTC and shows a persistent bias for holding the cryptocurrency for long-term gains, according to analysts at the cryptocurrency exchange Bitfinex, though some of the inactive supply could include coins lost. The level hit an all-time high of 69.2% two weeks ago. The percentage of circulating supply inactive for at least two years recently jumped to a record 56%, with 40% inactive for at least three years. Dormant coins are those that have not been spent on-chain over the relevant period. The increasing figure suggests a decline in the supply available in the market and the potential for a sharp price rally, assuming the demand side strengthens. |
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- The chart shows the daily trading volume for First Digital's FDUSD stablecoin, which went live on Binance on July 26.
- The bitcoin-FDUSD (BTC/FDUSD) volume has averaged less than $100 million per day, barring the Aug. 1 spike.
- "The lackluster market response to the zero-fee FDUSD pairs is surprising given that these types of promotions typically have a strong impact on overall trading activity. For example, TUSD volume skyrocketed after Binance heavily promoted the stablecoin's zero-fee pairs. This suggests that traders are reluctant to engage with the stablecoin," Kaiko said.
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State of Crypto: Policy & Regulation |
It is now more important than ever to set industry standards and align on practical short-term and long-term objectives through pointed conversations with the best legal minds and Washington D.C.'s most important decision makers.
Join us at State of Crypto: Policy and Regulation on October 24 in Washington D.C. for an unprecedented opportunity to evaluate, dissect and ultimately shape crypto regulatory frameworks that support a vibrant, secure and healthy future for the digital economy. Save 10% with code FM10. Learn more and register. |
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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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PayPal's New Stablecoin Fails to Move Market