DeFi Sector Rockets Higher as Institutional Interest Grows
Welcome to another week of Datawallet newsletters, where we will cover all things crypto-related. So, whether you are a seasoned investor or just making your first steps in crypto, fear not; we’re here to provide you with the news you need. Read on!
Today’s drop will cover these key daily news items:
- DeFi sector rockets higher over the weekend
- Japan exempts crypto startups from capital gains tax
- Bybit gains crypto license in Cyprus
- BTC futures surge to $11 billion
- Riot inks MicroBT deal to build bitcoin miners in US
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DeFi sector rockets higher as institutional interest grows
A majority of the leading DeFi tokens are outperforming the wider markets, as the proprietary tokens of Uniswap, Aave, Compound, and Synthetix have recorded two-figure increases in the previous 24 hours.
The weekend saw a surge in DeFi assets, even as the top ten crypto assets by market value traded within a 2% range, as per CoinGecko. AAVE and COMP saw a significant leap of 30%, while SNX increased by 19%, and UNI by 12%. Other tokens such as Curve (CRV), dYdX (DYDX), and PancakeSwap (CAKE) also rose approximately 7% today.
The aggregate total value committed in DeFi protocols and the market valuation of DeFi assets have both risen over 10% in the last ten days. Market pundits believe this is a good sign of broader crypto health as the DeFi assets are typically associated with an institutional bid due to their deeper liquidity, product-market fit, and innovative use cases.
🚀 DeFi sector Rockets With AAVE and COMP Rallying 30%
— The Defiant (@DefiantNews) June 26, 2023
Top DeFi tokens are outperforming, with the native tokens of @Uniswap, @AaveAave, @compoundfinance, and @synthetix_io posting double-digit gains over the past 24 hours.https://t.co/RW3fkrcXrE
Japan exempts crypto startups from capital gains tax
The National Tax Agency of Japan has provided further explanation, stating that cryptocurrency issuers will not be required to pay capital gains tax on profits not yet realized, as per the notice issued on June 20. The tax committee of the governing Liberal Democratic Party (LDP) in the country gave the green light to a proposal in December of the previous year, which allows cryptocurrency startups issuing their own tokens to be exempted from paying corporate tax on unrealized profits.
CORRECTION: Japan's National Tax Agency @NTA_Japan has clarified that crypto issuers in the country will not have to pay taxes on unrealized gains from holding their own tokens.
— CoinDesk (@CoinDesk) June 26, 2023
By @amitojhttps://t.co/3EPN45nc5u pic.twitter.com/KeYKrAzg6E
Bybit gains crypto license in Cyprus
Bybit, a cryptocurrency exchange, has acquired a permit to operate and provide custody services for cryptocurrencies in Cyprus, according to a company announcement on Monday. Based in Dubai, the company asserts that this development underlines its dedication to adhering to local regulations. The license enhances the exchange's foothold in the European Union (EU), following regulatory challenges in Japan and its withdrawal from Canada and the UK.
Crypto exchange @Bybit_Official says it has gained a license to operate in Cyprus. @jackschickler reports.https://t.co/HwWlctAo0j
— CoinDesk (@CoinDesk) June 26, 2023
BTC futures surge to $11 billion
Bitcoin (BTC) futures markets are witnessing the most significant cash influx in more than a year, probably due to speculations on price variations in the wake of numerous crypto exchange-traded fund (ETF) submissions. The total count of unresolved contracts, or open interest, on Bitcoin futures escalated to over $11 billion during the weekend, reaching its peak since May of the previous year when the once-dominant Terra collapsed.
The rise in $BTC futures trading comes in parallel to a bump in volumes and buying activity in the crypto options markets, used mainly by sophisticated investors to hedge against price swings or take levered bets on bitcoin movements. By @shauryamalwa.https://t.co/lKnfu0EUwj
— CoinDesk (@CoinDesk) June 26, 2023
Riot inks MicroBT deal to build bitcoin miners in US
Riot Platforms is collaborating with MicroBT, a Bitcoin mining equipment producer based in China, aiming to establish a secure supply chain within the country and possibly increase its hash rate by threefold.
Riot's CEO, Jason Les, expressed to Blockworks that this partnership also aims to generally strengthen the domestic Bitcoin mining sector. Established in 2016, MicroBT is known for creating and marketing integrated circuits and Bitcoin mining devices under the WhatsMiner brand.
NEWS: Riot to develop a "pipeline of access to US-manufactured miners" via MicroBT dealhttps://t.co/PhnMx6vdIv
— Blockworks (@Blockworks_) June 26, 2023
Other breaking news
- ZkSync launches rival to Optimism’s OP Stack
- U.S. Supreme Court Rules in Favor of Coinbase in User Lawsuit
- Binance Reverses Decision to Delist Some Privacy Coins in EU
- BitGo Still Sees Consolidation in Crypto Custody
- Terra Classic Revival Plans Continue
Wrapping Up
That’s all for today, folks! The US will get new BTC miners as Riot inks a deal with MicroBT, meanwhile BTC futures surge to $11 billion in value. Similarly, the DeFi sector is skyrocketing, and Japan is exempting crypto startups from capital gains taxes. Stay informed and ahead of the game with our daily crypto scoop. See you tomorrow!
