SnapShot 195

Grayscale files for Polkadot ETF, Pectra goes live on Holesky, and USDT launches on Optimism Superchain

Hello SnapShotters,

Bitcoin fell below $80,000 this week amid wider market uncertainty, as U.S. President Donald Trump announced he is planning to move forward with tariffs next week. Additionally, the crypto market has also been influenced by scandals surrounding high-profile meme coin projects.

Yet, Standard Chartered’s Global Head of Digital Assets expects a mid-term price rebound — and Bernstein experts predict a shift in the crypto market away from meme coins toward DeFi, stablecoins, and real-world assets (RWAs).

More details on that below.

Market Spotlight

Note: Market prices captured in USD at the time of sending. Explore more on Crypto‌.com/Price. 
Want more? Get weekly Market and DeFi Updates from Crypto.‌com’s Research Team.

News Snaps

📉 BTC Price Slides Amid Broader Market Dip

BTC’s price dipped past the $80,000 mark, as bearish sentiments have entered the broader market, but could be forming a bullish breakout and retest pattern. The price dip mirrors the slump in the S&P 500 and Nasdaq Composite indices, with the latter closing lower on Monday.

🏦 Grayscale Files for Polkadot ETF

Grayscale Investments recently filed for a Polkadot exchange-traded fund (ETF), named the Grayscale Polkadot Trust, with the U.S. Securities and Exchange Commission (SEC). The crypto asset management company also has an XRP and Cardano ETF filing pending review.

🔧 Ethereum Developers Reviewing Testnet Finality

Ethereum’s Pectra upgrade went live on the Holesky testnet, but did not manage to achieve finality during the process. While the developers are still debating on a resolution to the issue, this is not uncommon, as the Goerli testnet faced a similar hurdle during the Dencun upgrade.

🇦🇪 Dubai Recognizes USDC, EURC Stablecoins

The Dubai Financial Services Authority approved USDC and EURC as recognized stablecoins within the Dubai International Financial Centre, allowing finance tech companies and institutions within the hub to integrate the tokens into their digital asset services and financial applications.

⛓️ Cross-Chain USDT Launches on Optimism Superchain

Blockchain protocols Celo, Chainlink, Hyperlane, and Velodrome released a cross-chain version of USDT on Optimism’s Superchain in a concerted effort to improve the token’s interoperability. Funds backing the tokens are locked on Celo, while Chainlink and Hyperlane support cross-functionality with interoperable frameworks.

What’s Ahead

The Rebirth of DeFi?

With regulations easing on cryptocurrency, analysts at research and brokerage firm Bernstein expect the market to move away from meme coins and back to more utility-driven segments like DeFi. With anticipated regulations on stablecoins and digital asset securities, analysts expect stablecoins and real-world assets to be another focus for the space in the near future. 

The rise in meme coin activity in recent years was driven by the regulatory crackdown on utility tokens and NFT projects under the previous SEC Chair Gary Gensler, “forcing the market toward ‘useless’ memecoins to escape regulatory action,” Bernstein analyst Gautam Chhugani concluded in the Monday report.

Number of the Week

Chart of the Week

Ether reserves on crypto exchanges hit a nine-year low of $18.5 million on February 21, according to data from CryptoQuant. 

A lower supply of ether on exchanges may indicate lower selling pressure as traders move their assets to cold storage. This is generally interpreted as a positive price signal.

Research & Insights

Monthly Feature Article | DeFAI: DeFi x AI

DeFi is witnessing a fresh wave of innovation, with the fusion of DeFi and AI — often referred to as DeFAI — one of the most exciting developments. In this report, we look into the DeFAI landscape, and delve into Griffain and HeyAnon as case studies, both of which are notable examples in the abstraction protocol category.

Read the report here.

Crypto Trivia

What is it called when users add crypto to a pool and earn rewards?

A) Yield farming
B) Liquidity mining
C) Staking

Scroll for the correct answer at the end of this newsletter. 👇

NFT Spotlight

Welcome to the Croginal Cats community, a project born on the Cronos blockchain that combines “entertaining Web2 content with the power of Web3, all wrapped up in the form of cute pixilated cats.”

Dropping on Wednesday, March 5, ‘Croginal Nine: Origins’ is “an expansion of the Croginal Universe.” Learn the backstory of the Nameless Cat and his mission to retrieve “all nine pieces of his soul.” 

The collection features 999 NFTs, each containing “a single panel from the Croginal Nine manga.” There are four rarity variations, and collectors who find an ‘Epic’ or ‘Legendary’ NFT will have the “opportunity to collect a physical print of the manga.”

Meow. Uniting Web2 and Web3 through cute pixilated cats.

Product Updates

Staking Is Now Available in Singapore

Accredited investors in Singapore can now get up to 212% p.a. on over 30 tokens, including ETH, SOL, and CRO, with on-chain Staking and DeFi Staking. They can also unlock utility on their staked tokens with Liquid Staking. Get Started Now. 

Staking Is Now Available in the U.S.

Crypto.com App and Exchange users in select U.S. states can now get rewards on 29 tokens with on-chain Staking, including ETH, SOL, and CRO, and up to 14% p.a. on select tokens. Put your idle assets to work while supporting the blockchains you believe in. Stake Now.

New Listings Are Now Available for Sports

Two major championships have been added to Crypto.com Sports: U.S. College Basketball Tournaments and Professional Hockey Championships. You can now profit by correctly predicting the outcomes of these events using the Crypto.com App or on the Crypto.com web. Sports Event Trading is regulated in all 50 states and available nationwide. Make your prediction now.

TON Now Available for On-Chain Staking

Toncoin (TON) is now available for on-chain Staking in the Crypto.com App and on the Crypto.com Exchange. Users can now stake these tokens in addition to ETH, DOT, SOL, CRO, and more. Staking enables you to conveniently put idle assets to work and help secure the underlying blockchain, receiving rewards of up to 5% as often as three times a week. Stake Now.

New Token Listings

Kaito (KAITO)

Kaito is an AI-powered distribution platform powered by artificial intelligence and facilitates the transfer of information, attention, and capital. 

Tokenbot (CLANKER)

Tokenbot is an AI-driven token creation bot that simplifies the process of deploying ERC-20 tokens on the Base blockchain.

Plume (PLUME)

Plume is a public blockchain specifically designed and optimized for the integration of Real World Assets (RWAs). It aims to bridge the gap between traditional finance and crypto by making RWAs more accessible, liquid, and efficient through DeFi infrastructure. 

This is informational content only and should not be considered as an investment recommendation. Some Crypto.com products may not be available in some jurisdictions.

Crypto Learn

What Is DeFi Lending?

DeFi lending enables users to borrow and lend cryptocurrencies through smart contracts, eliminating intermediaries. Lenders can earn interest on deposits while contributing liquidity to the DeFi ecosystem. 

It offers several potential advantages, including:

1. Attractive interest rates compared to traditional banks.
2. Accessibility to anyone with an internet connection and cryptocurrency.

3. Instant processing of loans via automated smart contracts.

However, it can also carry potential risks:

1. Bugs in smart contracts.

2. Sudden market drops that could lead to collateral liquidation.

3. High gas fees that may make small positions unprofitable.

Weigh all the pros and cons of DeFi lending here.

CryptoIRL

What caught your eye? The Icy White Card adding to an illuminating evening with @Jessedakilla.

Hashtag #CryptoIRL with your Crypto.‌com Card on your social profiles to get featured! Your 15 minutes of fame in the #CROFam awaits you!

Security Tips

$290 Million Allegedly Stolen Through Crypto Ponzi Scheme

A Brazilian national is facing charges for his role in a massive $290 million crypto Ponzi scheme. Douver T. Braga allegedly masterminded the fraudulent Trade Coin Club, which promised high returns through a “sophisticated algorithm.” In reality, it was a Ponzi scheme, as the platform had no actual trading, and early investors were paid with the deposits of later participants. Investors were also encouraged to recruit others.

Here’s how to stay safe from scams:

1. Be wary of opportunities promising suspiciously high returns.

2. Ensure the platform you are trading on is legitimate and has a transparent record.

3. Avoid opportunities that require recruiting — they could be Ponzi schemes.

Crypto Trivia Answer

B) In DeFi, liquidity mining is when users provide crypto to a liquidity pool and earn rewards, usually in the form of tokens or a share of trading fees.

That’s it for this week’s SnapShot. Want more? Find out what’s trending in the crypto world.