Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Crypto trading volume in India has plummeted even further after payment service provider Mobikwik withdrew its services across all exchanges, though it did not explain why. Since the Indian government started imposing a 30% tax on crypto income while not permitting any loss offsets or deductions, trading volume in the country has been steadily declining. Crypto research firm Crebaco found that volumes across all major exchanges in India had fallen from last week, with Warzix seeing a 72% decrease, Zebpay 59% and Coindcx 52%. This is set to worsen from 1 July, when crypto transactions in India will be subject to a 1% tax deducted at source (TDS).
Despite BTC having fallen below $40,000 and into bear market territory, blockchain analytics firm Glassnode has reported that 70% to 75% of Bitcoin addresses are seeing an unrealized profit. Glassnode analysts said long-term BTC holders (those who have held BTC for over 155 days) were the least likely to be at a loss, with 67.5% at an unrealized profit. Among short-term holders, however, only 7.88% have seen any gains. Glassnode also said that 58% of the volume on the Bitcoin network is in “profit dominance”, a metric not clearly observed since Dec last year. While daily realized losses have decreased from 20,000 BTC in Jan to 8,300 BTC last week, daily realized profits of 13,300 BTC have been seen since mid-Feb.
Ethereum developers have implemented the network’s first-ever ‘shadow fork’, marking a crucial milestone in the ongoing shift to a proof-of-stake (PoS) consensus. Ethereum Foundation developer Marius van der Wijden also confirmed that PoS testing was underway, saying, “We’re roughly 690 blocks (~2 h) away from TTD.” This is the latest in a string of positive developments surrounding the merge, leading to a progressively more bullish narrative for Ethereum and temporarily breaking ETH out of a months-long down-trend.
British Virgin Islands-based IDEG Asset Management has unveiled its Ethereum Enhanced Portfolio, an actively managed fund tracking the ETH price while using what it calls a futures arbitrage strategy to boost returns and minimize volatility. The fund will be part of IDEG’s new TIMES (Trust, Interest, Mining, Yield Earnings and Structured Solutions) suite of products, and Coinbase Prime will be its prime broker and custodian. The fund will be available to qualified investors everywhere except the US, and will require a minimum investment of $100,000.
FTX Digital Markets co-CEO Ryan Salame has donated $4 million to American Dream Federal Action, a political action committee (PAC) aligned with the Republican Party that supports candidates “who want to protect America’s long-term economic and national security”. This comes after Salame’s $10 million donation to the crypto-focused GMI PAC, and is the latest example of crypto industry players making moves in the political scene. Notably, Sam Bankman-Fried, Salame’s co-CEO at FTX, was one of President Joe Biden’s largest financial backers during the last election cycle.
Show me the money
BTC recently fell below $40,000, a decrease of over 5.4% drop over the past 24 hours, while ETH saw a decrease of over 6% to slightly over $3,000 within the same period. Other major altcoins also declined, with LUNA and SOL both seeing a drop of around 3.5% over the past 24 hours and ADA falling by 5.5% in the same period. Memecoins DOGE and SHIB also declined considerably in the same period, with a respective decrease of 4.9% and 6.1%.