💥 Imminent Collapse? No not Bitcoin

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Good Morning!

Despite Ethereum breaking back above $3000 yesterday, today there has been a small sell off, likely just a bull market dip.

Also, Starknet, who came under fire last week for their airdrop criteria and sketchy unlocking schedule has suffered from a rough launch, with the token down 53% on its first day.

Let’s jump in.

Markets

Ether hits $3,000 for the first time since 2022 (2 minute read)
On Tuesday, Ethereum surged to $3,000, marking its highest value in nearly two years, amidst anticipation surrounding the potential approval of spot ether exchange-traded funds (ETFs) in the US, possibly by May. Following a peak of $3,003.40 on Tuesday morning, the price slightly retreated.

Following the successful launch of spot bitcoin ETFs in January, industry focus has shifted to the possibility of spot Ethereum ETFs in the U.S., with major players like Fidelity, BlackRock, and Franklin Templeton having submitted applications in recent months. The growing speculation surrounding the approval of such products in 2024 has led to ETH outperforming bitcoin this year. Bloomberg ETF analyst Eric Balchunas has suggested a 70% likelihood of approval by May 23.

Starknet’s STRK Drops 53% Amid Token Issuance Criticism (3 minute read)
Following Starknet's STRK tokens going live for trading on Tuesday, they experienced a significant decline in value, losing half of their worth, amidst ongoing scrutiny surrounding a 2022 token generation event.

Data indicates a 55% decrease in STRK value over the past 24 hours, with trading volumes exceeding $1.2 billion. Approximately 728 million STRK tokens were distributed to about 1.3 million addresses based on predefined criteria, including blockchain participation and community engagement.

Starknet has been met with criticism which has has arisen within certain crypto circles regarding the schedule for team and investor unlocks.

VanEck's Bitcoin ETF Records 2,200% Volume Surge in a Day (2 minute read)
On Tuesday, trading volumes for VanEck’s HODL, one of the ten spot bitcoin ETFs in the U.S., skyrocketed by over 2,200%, largely fueled by individual traders. HODL saw trading volumes surpassing $400 million, a remarkable increase of 22-fold compared to its average daily volume of $17 million. This surge preceded a scheduled fee reduction on Wednesday, with VanEck planning to decrease its offering fees from 0.25% to 0.20%, as outlined in a filing. Bloomberg Intelligence analyst Eric Balchunas noted that the heightened volumes stemmed from 32,000 individual trades rather than one significant investor.

Tech

Imminent Collapse? Ethena Labs’ 27.6% Annual Yield Sparks Debate (2 minute read) 
Ethena Labs' recent introduction of the USDe stablecoin has ignited significant discussion, particularly concerning its notable 27.6% annual yield. Launched on February 19, USDe, operating on Ethereum's mainnet, presents an unusually high return compared to standard offerings, prompting comparisons to Terra's UST, which faltered after promising approximately 20% yield. Investors are wary of potential yield inversion, where costs outweigh earnings, potentially leading to losses, a concern echoed by 0xngmi from DefiLlama, reminiscent of past similar failures. Despite its allure, the elevated yield of USDe raises questions about its long-term sustainability. Ethena Labs has responded by offering reassurances in light of these concerns.

OFAC sanctions 10 wallets linked to LockBit takedown (2 minute read)
The Treasury's Office of Foreign Assets Control (OFAC) recently added multiple wallet addresses associated with two Russian nationals, Artur Sungatov and Ivan Kondratyev, to its list of specially designated nationals. Sungatov and Kondratyev face charges related to ransomware deployment, with ties to LockBit, a ransomware group that reportedly amassed over $120 million in ransom payments, as per the Department of Justice.

OFAC identified 10 wallet addresses connected to Sungatov and Kondratyev. Collaborating with the UK and various global law enforcement agencies, the US took action against LockBit. A press release from Europol highlighted the joint efforts of law enforcement agencies from 10 countries, resulting in the freezing of over 200 cryptocurrency accounts associated with the criminal organization.

Misc

Optimism’s fourth airdrop distributed nearly $41m in tokens (2 minute read)
Optimism, a Layer 2 network, recently launched its fourth airdrop, targeting web3 artists with a substantial distribution of over 10 million OP tokens, valued at approximately $40.8 million. The initiative aims to recognize and honor artists who have contributed creativity to the blockchain, acknowledging their role as vital contributors to the Optimism Collective's ecosystem. According to an official statement, 22,998 recipients have until Feb. 13, 2025, to claim their tokens. Optimism emphasized the importance of artists in society and expressed gratitude for their ability to inject creativity into the blockchain, framing the airdrop as an appreciation for their essential role in the success of the Optimism Collective.

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