BNB ecosystem blooms as token breaks $710, Paxos launches yield-bearing stablecoin, Coinbase releases smart wallet, and US ETFs record $887m inflows.
BNB Ecosystem Blooms as Token Breaks $710 All-Time High

BNB Ecosystem Blooms as Token Breaks $710 All-Time High

Jun 6, 2024
| Issue

Not even halfway through the year, cryptocurrency is making serious noise. Following BNB's new all-time high of $710, Bitcoin is looking to surpass its May peak of $73,750. Meanwhile, hype is booming from all sides, with Paxos, Coinbase, and BNB Chain at the forefront.

In the macro world, Canada cut interest rates by 0.25%, becoming the first of the G7 nations to do so, while Nvidia became the third stock in history to reach $3 trillion in market capitalization and is battling Apple's for second place on the SP500 index, while Microsoft holds first at around $137 billion lead.

BNB Ecosystem Blooms as Token Breaks All-Time High of $710

Projects across the BNB Chain ecosystem saw drastic increases in activity, token prices, and trading volumes as BNB's native token reached a record high of over $710.86. Trading volumes of BNB Chain-based tokens rose by 127%, with memecoin FLOKI and PancakeSwap's CAKE leading gains. Smaller projects like Sensi's SENSI saw a 910% price increase.

The total value locked in BNB Chain projects increased by 8.5%, with net inflows topping $2.6 million. Market observers attributed BNB's price surge to long-term token burns and lock initiatives, cheaper gas fees, and an active user base. Approximately $400,000 worth of BNB tokens were burned in the past week. A Floki developer highlighted BNB Chain's strengths in speed, scalability, and usage.

Paxos Launches Yield-Bearing Stablecoin Lift Dollar (USDL)

Paxos International, a UAE-based entity, has launched a yield-bearing stablecoin called Lift dollar (USDL), starting in Argentina, which is issued on Ethereum and pays daily yield programmatically, fully backed by high-quality liquid assets and regulated by the FSRA of Abu Dhabi Global Market. USDL offers users a near-risk-free return of about 5%, distributed via a rebasing technique.

Paxos International will be charging minimal fees and safeguarding assets from bankruptcy risks. Currently unavailable in the U.S. and several other jurisdictions due to regulatory considerations, USDL aims to serve unbanked or underbanked populations globally, with Paxos anticipating significant market growth over the next five years. Stablecoins currently have a market capitalization of $161 billion.

Coinbase Releases Smart Wallet For Easier User Onboarding

Coinbase is releasing a new "smart wallet" to enhance user experience by simplifying onboarding, eliminating network fees, and removing the need for recovery phrases, allowing wallet creation through Face ID, Google Chrome profile, fingerprint, or Yubikey. The wallet addresses common issues like insufficient balance errors by enabling the use of self-custodial or Coinbase account balances.

The Coinbase Smart Wallet will support gasless transactions via paymaster integrations. Initially announced in February at EthDenver, the wallet currently supports eight networks, including Base, Ethereum, Arbitrum, Optimism, Polygon, BNB, Avalanche, and Zora. with plans to add more. By providing an easier user experience, Coinbase aims to open the gates for bringing 1 billion new users to crypto.

US Bitcoin ETFs Saw Second Best Inflows Day at $887 Million

United States-based spot Bitcoin ETFs saw their second-best day for joint net inflows with $886.6 million, led by the Fidelity Wise Origin Bitcoin Fund (FBTC) with $378.7 million, BlackRock’s iShares Bitcoin Trust (IBIT) with $274.4 million, and the ARK 21Shares Bitcoin ETF (ARKB) with $138.7 million. This influx is the highest since March 12, when net inflows hit a record $1.04 billion.

Two days after the previous record Bitcoin reached an all-time of $73,750. Additionally, the Grayscale Bitcoin Trust (GBTC) saw a rare inflow of $28.2 million, despite significant past outflows due to high management fees and narrowed discounts. ETF Store president Nate Geraci highlighted the unexpectedly strong demand for Bitcoin ETFs, countering critics who doubted their appeal.

Data of the day

According to data from TradingView, Nvidia has returned +3266% in the last five years, which is 2.08 times more than Ethereum's +1570% gain and 3.91 times more than Bitcoin's +834%. The stock is breaking new all-time highs every week in both market capitalization and trading volume.


More breaking news

  • Gary Gensler, chair of the Securities and Exchange Commission (SEC) said it will “take some time” before spot Ethereum ETFs begin trading in the US.
  • Swell plans to transfer governance power to SWELL holders, distributing tokens linearly, with a focus on rewarding long-term community members.
  • ETHU, by Volatility Shares, became the first 2x leveraged Ethereum ETF to operate in the US and hosted $5 million in volume on its first trading day.
  • Vitalik Buterin is not happy with celebrity memecoins and responded to a Iggy Azalea’s MOTHER token post with 'projects should brings value to society'.
  • Turkey denied plans to tax crypto and stock gains but is considering a transaction tax as part of the attempt to regulate financial transactions.

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