Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Ethereum-focused YouTube channel Bankless claims it has been been banned from the social media platform without warning or explanation. Clicking on the link to the channel, which had over 10,000 hours of content, leads to a notice that says, “This page isn’t available.” YouTube has not responded to comment and this is not the first time it has shut channels down without justification; it has removed channels in the past, only to reinstate them later without explanation. Bankless is the latest in a string of educational Web3 crypto accounts (including Gabriel Haines.eth and the Optimism Collective) to have been removed.
In the past month, the total value locked (TVL) in DeFi protocols has fallen by 17.77%, from $221.67 billion to $182.27 billion. Curve Finance, the largest DeFi protocol by TVL, saw a 16.55% dip in value to $17.24 billion, while Lido saw a 13.28% loss, Anchor 10.15%, MakerDAO 20.48% and Aave 21.12%. Conversely, Aave’s v3 and Tron’s Sunswap saw substantial gains in the last 30 days. In the last 24 hours alone, TVL in DeFi has seen a 6.25% dip, amid a 5.1% loss of value in the wider crypto economy.
Ethereum co-creator Vitalik Buterin has urged Elon Musk to support “non-intrusive” anti-COVID technology, tweeting this request after Musk laughed at Deep Instinct founder Dr. Eli David’s joke that he should buy the WHO from Bill Gates to “make it about health”. Buterin said the world required a “sane middle” that recognized the high cost of anti-COVID measures, and needed to “move past them”. Buterin also shared a link to his newly founded charity, Balvi, to which a portion of his $100 million in SHIB has been deployed.
The Luna Foundation Guard (LFG) will loan $1.5 billion in BTC and UST to defend its algorithmic stablecoin’s peg to the USD. The Singapore-based non-profit tweeted that it would lend $750 million in BTC to trading firms to protect the peg and $750 million in UST to accumulate BTC to help normalize the market. This comes amid Terra’s continuous buying of BTC; its latest $1.5 billion purchase means it now holds 80,394 BTC in reserves, almost double that of Tesla’s. Furthermore, it could soon become the biggest BTC holder, especially with the current down-trend making it a good time to buy BTC on the cheap.
In a slew of London ‘crypto muggings’ in the second half of 2021, thieves targeted crypto investors on the street, with victims reporting thousands of pounds stolen as a result. Based on anonymized crime reports from City of London police, the perpetrators worked in gangs to approach individuals on the street, grab their mobile phones and force them to access their crypto accounts so they can drain their wallets. Unlike bank transactions, crypto transfers are irreversible, making crypto investors more attractive to thieves. However, according to FBI veteran and Chainalysis’ public sector CTO Gurvais Grigg, police should be able to track stolen crypto due to transactions being logged on the blockchain.
Show me the money
BTC has continued its decline, falling below the $34,000 mark to $33,594.50 early this morning (EST). It is now trading at its lowest level since late Jan, with its price having fallen over 50% from its Nov 2021 peak of $68,990.90. Vijay Ayyar, crypto exchange Luno’s VP of corporate development and international, said that if BTC were to fall below $30,000, it could hit a low of $25,000 before any “significant” increase.
Simultaneously, BTC whales have been jumping ship at a rapid rate not seen since early 2022, possibly due to the three-month high of token inflows to cexs. This suggests whales may be exiting the market by selling tokens to prepare for a longer market down-trend. Data from BTC market tracker Glassnode implies a market exit for whales holding at least 1,000 tokens and exchange inflows of over 1.7 million tokens, the highest since Feb. In addition, negative market outlook has resulted in the BTC Fear and Greed Index to fall to 11, i.e., the ‘Extreme Fear’ region.