Bitcoin ETF potential boosts BTC to $112K, Ethereum NFT volume spikes, ERC-404 token prices drop, and FTX sells subsidiary at a loss.
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Bitcoin ETFs Expected to Boost BTC to 112K

Bitcoin ETFs Expected to Boost BTC to 112K

Date:
Feb 13, 2024
| Issue
#
212

Welcome to the first edition of Datawallet Daily for the week. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

Bitcoin ETFs Could Boost BTC to $112K: CryptoQuant

Bitcoin ETF inflows could potentially drive BTC prices to $112,000 this year, according to CryptoQuant. With over 192,000 Bitcoins held by spot ETFs since their launch a month ago, the current buying trend may significantly impact Bitcoin’s value. CryptoQuant’s CEO Ki Young Ju suggests a “worse case” scenario of $55,000, marking a 15% increase from current levels. 

These projections are based on inflows’ effect on market capitalization and a historical metric ratio indicating market valuation. “Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly,” Ki said. Despite outflows from GBTC, a $76B rise could push the realized cap to $527-565B. The ratio tracking market to realized capitalization suggests a potential top at $104,000 to $112,000. 

Ethereum NFT Volume Soars As Pudgy Penguins Target #2 Spot

The Ethereum NFT market is experiencing a significant upsurge, reaching its highest trading volume since late February of the previous year. This surge is particularly notable as Pudgy Penguins is on the brink of surpassing the Bored Ape Yacht Club in market cap, aiming for the second spot after CryptoPunks. Pudgy Penguins, ranking third in market cap, is nearing its competitor, Bored Ape Yacht Club, owned by Yuga Labs. 

Pudgy Penguins is developing “Pudgy World,” an interactive game for Apple Vision Pro, while Yuga Labs is advancing the Otherside metaverse. However, while NFT trade volume surged in the past year, NFT minting remained stagnant, suggesting that the volume spike was majorly driven by NFT sales rather than new mints.

ERC-404 Token Prices Decline as DN-404 Emerges

The ERC-404 token standard, an innovative blend of ERC-20 tokens and NFTs allowing for native fractionalization of NFTs, has experienced a decrease in token prices following its initial excitement. The first token utilizing this standard, Pandora, saw its market cap halve from $324 million to $150 million, with individual token prices dropping below $15,000. Other tokens following the ERC-404 standard, like DeFrogs, also witnessed significant declines. 

Amidst these price drops, an alternative “Divisible NFT” standard, DN-404, is being introduced by developers aiming for more efficient transaction fee management. This development has sparked interest but also tension between the original ERC-404 developers and those behind DN-404, leading to speculation about which version will dominate the market.

FTX to Sell Subsidiary Acquired for $10M to CoinList for $500k

FTX plans to sell Digital Custody (DC) to CoinList for $500K, significantly below its original $10M purchase price, as part of its bankruptcy proceedings. This decision follows the non-revival of FTX US, rendering DC of little value to FTX’s estate. Despite DC’s custodial license, the sale to CoinList was favored for its swift completion potential and positive relationship with DC’s original CEO, Terence Culver, expected to aid in regulatory approval. This move aligns with FTX’s focus on repaying customers, avoiding the restart of the firm, amidst user concerns over cryptocurrency deposit valuations.

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