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Key Takeaways

Major cryptocurrencies saw further losses over the past 24 hours, with prices dropping between 1.1% to 6.5%. However, investor confidence appears to be stabilizing in platforms like Binance after the FTX collapse. Meanwhile, capital flows indicate growing interest in alternative cryptocurrencies beyond just Bitcoin.

Cryptocurrency Prices Decline

According to data from CoinGecko, the cryptocurrency markets continued their bearish trend over the past day. The price of Bitcoin declined 3.2% to around $16,650, while Ethereum fell 3.6% to $1,230. Among the top ten cryptocurrencies by market cap, BNB saw a small gain of 2.1% to $365.52, suggesting improving sentiment towards centralized exchanges in the aftermath of FTX’s troubles.

Stablecoins Tether (USDT) and USD Coin (USDC) remained pegged to the US dollar, preserving investor capital. The global cryptocurrency market cap declined 2.2% to $2.04 trillion, according to CoinGecko. Despite short-term volatility, billionaire investors like Bill Ackman of Pershing Square remain optimistic about long-term value in the sector.

Shift in Investor Capital to Altcoins

Analysis from blockchain data firm Glassnode indicates that investor capital has started rotating away from Bitcoin and towards alternative cryptocurrencies since October. Interest is focused on large-cap altcoins such as Ethereum, Solana, Polkadot, and Cosmos. Among these, Solana delivered the strongest returns over the past year according to metrics like Bitcoin dominance and altcoin market share.

Ethereum’s staking sector continues attracting consistent inflows, with over $20 billion worth of ETH staked in the network. Data from decentralized exchange Uniswap shows altcoins represented 12% of its trading volumes, nearing the previous bull market peak of 17.4%. Bitcoin-backed WBTC and Ethereum-based WETH each account for about 47% and 40% of Uniswap trades respectively.

Crypto Fraud Trial Begins in London

In London, the trial started against Jian Wen, accused of laundering Bitcoin derived from a massive Chinese investment scam, as outlined in a recent Financial Times article. Chinese fugitive Yadi Zhang is alleged to have defrauded £5 billion ($6.3 billion) between 2014-2017 in a Ponzi scheme, with British authorities seizing over £1.4 billion in cryptocurrency said to be connected to the fraud. Wen has pleaded not guilty, claiming ignorance of the funds’ criminal origins despite his access to one wallet involved.

Hack VC Closes $150 Million Crypto Fund

In other news, venture capital firm Hack VC announced the successful closing of its oversubscribed $150 million Venture Fund I, as disclosed in a press release. This adds to the $200 million previously raised, bringing Hack VC’s total assets under management to approximately $425 million. The new fund will target early-stage web3 opportunities, with one-third already allocated towards emerging infrastructure projects according to managing partners Alex Pack and Ed Roman. Their goal is supporting foundational technology to help bring cryptocurrencies into the mainstream.

Sources

Twitter: Hack VC Fund Announcement
CoinGecko: https://www.coingecko.com/

Financial Times: https://www.ft.com/content/16e7be6f-875c-4f2f-856f-441d155b4894
Glassnode: https://insights.glassnode.com/the-week-onchain-week-08-2024/
Hack VC: https://www.hack.vc/
WebWire: https://www.webwire.com/ViewPressRel.asp?aId=318111

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