• Optimism [OP] has announced plans to become a “Superchain” in order to unite various siloed L2s into one cohesive and interoperable system.
• On-chain metrics and market indicators have been bullish, with OP’s revenue increasing constantly since its launch in 2021.
• Coinbase has also announced the development of Base on Optimism’s OP Stack, with the goal of creating a standard, modular Superchain powered by Optimism.

Optimism Announces Plans for Superchain

Optimism [OP] has made a bold announcement on 23 February, revealing its plans to become a „Superchain.“ The Superchain aimed to combine various siloed L2s into one cohesive and interoperable system. Moreover, Optimism stated that it needed to work toward a future when launching an L2 was as simple as deploying a smart contract on Ethereum [ETH].

On-Chain Metrics & Market Indicators Bullish

Token Terminal’s data pointed out that Optimism’s revenue has been increasing constantly since its launch in 2021, which was a positive trend. Apart from this, Coinbase announced that it was developing Base on Optimism’s OP Stack with the goal of developing a standard, modular, rollup agnostic Superchain powered by Optimism in order to facilitate the path toward decentralization.

Price Surge Following Developments

OP’s price responded to these developments by painting its daily and weekly charts green. According to CoinMarketCap, OP’s price increased by over 8% in the last 24 hours, and at press time, it was trading at $3.09 with a market capitalization of over $725 million.

On-Chain Performance Supports Surge

Moreover, OP’s on-chain performance supported this surge in price, increasing the chances of registering more gains in the coming days. For instance, the token’s MVRV Ratio went up considerably, which was a bullish signal. OP’s network growth and velocity both registered upticks in the last few days as well as an increase in social volume. However, daily active addresses declined over the last week.

Next Wave Of Adoption Approaching?

It appears that optimism is preparing for another wave of adoption as it continues to step up its game with regards to unifying different L 2 chains into one platform for chains. With all these developments taking place along with positive market sentiment surrounding OP’s token performance it looks like optimism might be ready for another push towards further adoption!

Overview

• According to Chainalysis, revenue from cryptocurrency scams went down by 46% in 2022.
• Investment scams generated the most revenue last year, at $3.4 billion.
• Romance scams had the most destructive impact on a revenue-per-victim basis.

Investment Scams

Investment scams were the dominant category of crypto scams in 2022, with all ten of the top scams being investment scams. Hyperverse was the top scam of 2022, generating almost $1.3 billion in revenue. Crypto fraudsters adopted stablecoins for their schemes as a hedge against a market crash and to capitalize on potential victims who hoped to take advantage of rising prices in Bitcoin (BTC). The data also revealed that investment scams were most correlated with Bitcoin’s price movements, likely due to promises of outsized returns.

Romance Scams

Despite generating lower overall revenue than investment scams, romance scams had an average victim deposit of almost $16,000 which is nearly triple the next closest category. The total revenue and reach of romance scams are likely higher than reported due to underreporting by victims because of the personal nature of these schemes. Moreover, 1% of victim payments to crypto-related frauds come from crypto ATMs, indicating this payment method is not commonly utilized for illicit activities.

Regional Data

Chainalysis‘ report found that most scam revenue disproportionately comes from the U.S., particularly NFT-related frauds. Furthermore, centralized crypto exchanges and DeFi protocols sent significant amounts towards scammers as well.

Conclusion

Overall, cryptocurrency scam revenue has significantly decreased since 2021 despite various types of fraud still impacting users around the world today. Investment scammers remain dominant but other categories such as romance and NFT related schemes are also prevalent amongst fraudsters with varying effects on victims depending on their individual circumstances and intentions behind their investments into digital assets or services related to them

• 1inch network has commenced the distribution of funds set aside as gas refunds for December and January.
• 1inch users can now migrate from its V1 staking protocol to its staking protocol V2.
• There is a wave of FUD triggered by the SEC’s assault on crypto staking on exchanges causing a bearish outcome in the market.

1INCH Network Commences Distribution of Funds

The 1inch network recently revealed positive news, especially for members of its resolver incentive program. The network has begun distributing funds that were set aside as gas refunds for December and January. Up to 10 million INCH are allocated, with already over 1.5 million being paid out so far. This provides an incentive for stakers to delegate Unicorn Power to resolvers which will benefit from arbitrage trading.

Migration From V1 Protocol to V2

In addition, 1inch confirmed that users can now move from their V1 staking protocol to its new V2 protocol. Refunds associated with this migration will be issued in March, covering fees incurred during the first two months of 2021. These incentives could potentially encourage more participation in the network and more investors joining in the long-term outlook for 1INCH tokens.

Supply Reduction On Exchanges

Exchange outflows have also been observed which is likely due to retail buyers pushing up demand and reducing supply on exchanges significantly over the last few days. The largest amount of token supply is held by addresses holding between 10 million and 100 million tokens who have been selling off over the past two days having a negative impact on market prices.

SEC’s Assault On Crypto Staking

The bearish effect seen recently is mostly attributed to FUD caused by the SEC’s attack against crypto staking on exchanges. This had caused prices for 1INCH token at press time to drop 11% down from $0 .52 previously traded at .

Conclusion

Overall, despite a current pullback in prices due to FUD surrounding crypto staking regulations, it appears that incentives such as these are encouraging long-term investments into 1INCH tokens which could help support price recovery going forward

• Aave’s treasury funds saw significant growth due to consistent revenue generation.
• Compared to its competitors such as BenQI and Compound, Aave’s treasury funds grew materially in the last three months.
• Uniswap [UNI], MakerDAO [MKR] and Aave [AAVE] tokens could not generate interest from new addresses, according to data from Santiment.

Aave Treasury Growth

Decentralized lending protocol Aave [AAVE] has seen a growth in its treasury funds, according to a 1 February tweet from Delphi Digital. The growth in treasury funds is an indicator of consistent revenue generation for the protocol, which can be used for various initiatives, such as development, marketing, and strategic planning. This strong and growing treasury can also provide stability and assurance to investors and stakeholders, which can increase confidence in the protocol and lead to increased demand for its tokens.

Competitors Witness Surge

Other competitors also witnessed a surge in their treasury funds. Compared to its competitors such as BenQI and Compound, Aave’s treasury funds grew materially in the last three months. However, other DEXes such as Uniswap [UNI] and MakerDAO [MKR] also witnessed growth in this area. According to Dune Analytics, Uniswap’s treasury funds increased over the last few months despite the volatility observed in the crypto market. Similarly, MakerDAO weathered the storm and saw growth in terms of assets held by the protocol mostly consisting of stablecoins accounting for 59% of its overall assets but it was MakerDAO’s Real World Assets that generated most revenue for the protocol.

Declining Network Growth

Despite these protocols‘ growing funds however, their tokens couldn’t generate interest from new addresses according data from Santiment; UNI took a significant hit with network growth declining significantly whereas AAVE outperformed other protocols despite declining network growth too.

Conclusion

Aave’s growing treasury fund is a positive sign for the protocol showcasing consistent revenue generation providing stability & assurance to investors & stakeholders increasing confidence leading to increased demand for its tokens – compared with competitors like Uniswap & MakerDAO highlighting financial strength albeit decreased network growth amongst all tokens involved lessening investor interest overall.

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• Litecoin’s whale transactions around the $1 million region hit 2023 highest on 25 January.
• According to Glassnode, the Litecoin reserve risk was 0.00069— a considerably low value.
• The whales‘ actions were in contrast to what they were involved in a few days back as most sold off part of their holdings.

The cryptocurrency market has been a rollercoaster of late, with Litecoin [LTC] leading the charge. After reaching a January high of $1 million in whale transactions, the digital asset is potentially pointing to a new direction that could be dependent on continued whale activity.

Data from the on-chain platform Santiment indicated that there were over 100 transactions within the $1 million range on the said date. This spike in large whale transactions is a sign that investors are regaining confidence in the coin and believing in its long-term potential. Despite the coin only gaining 1.07% in the last 24 hours, the faith of its long-term holders remains.

Glassnode reported the Litecoin reserve risk to be 0.00069, a value that is considered to be low and depicts the confidence of holders in the digital asset. With the LTC price still down from its all-time high (ATH), it reflects the unwavering trust in the coin.

Although the whales‘ actions were in contrast to what they had been involved in a few days ago, as most sold off part of their holdings, the recent spike in whale transactions has indicated a surge in investor confidence. This could be a good sign for the future of the coin, as the last two times it hit such a peak there were notable increases in the LTC price. The cryptocurrency community will be watching closely to see if the digital asset can repeat its previous success.

• FTX crypto exchange filed for bankruptcy in November 2022
• The new CEO, John J. Ray III, is looking into the possibility of rebooting the exchange
• The price of FTT – the exchange’s token – has increased by over 60% in the past seven days

FTX, a global crypto exchange, filed for bankruptcy in November 2022 after customers started withdrawing their assets from the platform aggressively. With this, Sam Bankman-Fried – founder of FTX – resigned from the post of CEO and assigned the role to John J. Ray III, the American lawyer who oversaw the liquidation of Enron.

In a recent interview with the Wall Street Journal, Ray revealed that he is considering bringing the dead crypto exchange back to life. He mentioned that a task force has been set up to investigate the possibility of reviving the exchange, as its technology received a positive response from the customers. The team is looking into whether this move would bring more value to the exchange’s customers than liquidating the assets or selling the exchange. Ray added that „If there is a path forward on that, then we will not only explore that, we’ll do it.“

The news of the potential revival of FTX has boosted the price of FTT – the exchange’s token. According to CoinMarketCap, the token was trading at $2.24 at press time and had seen an increase of over 25% in the last hour. In addition, the coin’s value has increased by over 60% in the past seven days.

Ray also commented on the recent claims made by the former CEO – Sam Bankman-Fried. He remarked that SBF’s statement was unhelpful. He also dismissed the need for having a conversation with the former chief.

Overall, the revival of the crypto exchange is still uncertain. However, it is clear that the new CEO is hoping to bring more value to FTX’s customers by exploring the possibility of restarting the exchange.

• Hong Kong’s securities regulator has proposed legislation to limit retail investors‘ exposure to highly liquid crypto assets.
• Samsung’s investment arm is planning to list a Bitcoin futures ETF on the local stock exchange.
• Hong Kong is embracing the crypto industry despite a bearish winter that has discouraged many countries from investing.

Hong Kong is embracing the crypto industry despite a bearish winter that has discouraged many countries from investing. The island city’s top securities regulator, the Securities and Futures Commission (SFC), recently issued a directive to drive investment in certain crypto assets with high liquidity. This move has attracted the attention of tech giant Samsung’s investment arm.

The SFC has hinted at the introduction of new legislation that will promote digital assets with high liquidity. According to a report by the South China Morning Post, the securities regulator has revealed that trading in virtual assets will be restricted to highly liquid products for retail investors. SFC CEO Julia Leung Fung-yee said: „Some virtual assets platforms have over 2,000 products, but we do not plan to allow retail investors to trade in all of them. We will set the criteria that would allow retail investors to [only] trade in major virtual assets.“ The SFC is planning to issue a consultation paper in the next two months. This paper will outline the products and conditions for retail investors who wish to trade in virtual assets. It will also detail the licensing requirements for virtual asset trading firms.

Samsung’s investment arm, Samsung Asset Management Hong Kong (SAMHK), a subsidiary of Samsung’s investment arm Samsung Asset Management, is also looking to capitalize on Hong Kong’s stance on the crypto market. SAMHK is planning to list the Samsung Bitcoin Futures Active ETF on the local stock exchange. This ETF, which is composed of Bitcoin futures contracts, will give investors exposure to the digital asset without the risk of direct ownership.

The move by the SFC to limit retail investors‘ exposure to highly liquid crypto assets and Samsung’s decision to list a Bitcoin futures ETF mark a significant shift in the attitude of the Hong Kong government towards the crypto industry. The island city is now taking steps to become an attractive destination for crypto investors, while also protecting retail investors from the volatility associated with crypto assets.

• Crypto bank Juno has asked its customers to either sell or self-custody their crypto assets in the light of its migration of assets to a new custodian.
• Juno’s decision comes as Wyre, its current custodian, prepares to close its doors in the upcoming weeks.
• Juno has employed other safeguards for user safety, including temporarily disabling crypto buying on its platform and converting stablecoins to US dollars into users‘ FDIC-insured accounts.

Crypto bank Juno has recently announced that it is transitioning from its current custodian Wyre to a new custodian in the upcoming weeks. The decision comes as Wyre is preparing to close its doors, leaving customers to either self-custody or sell their crypto assets.

In order to ensure the safety of its customers, Juno has taken a number of steps to protect user funds, including increasing the daily crypto withdrawal limits by five times for all users and temporarily disabling crypto buying on its platform. Additionally, the platform has converted stablecoins to US dollars and deposited them into users‘ FDIC-insured accounts.

Juno is a crypto platform that aims to provide users with an easy and fast on and off-ramp for crypto. Currently, 90% of its crypto native users use the platform as an on and off-ramp. To ensure a smooth transition, the team at Juno is already working with an unidentified new custodian to transfer all customer funds from Wyre to the new custodian.

Moreover, Juno has also disclosed that it currently holds $1.25 million in crypto assets on its platform. The platform has been reaching out to its customers to encourage self-custody of their holdings as a way to protect their funds.

The transition to a new custodian is a big step for Juno as it begins to scale and provide more services to its customers. By taking these precautionary steps, Juno is ensuring that its customers remain safe and secure. The platform is committed to providing the best service possible and looks forward to offering more services in the near future.

• Bitcoin HODLing reached a 12-month high indicating healthy accumulation.
• Upside potential is still limited amid low whale and institutional demand.
• Bitcoin [BTC] supply last active 2-3 years is now at a 12-month high.

The crypto market has been largely quiet recently and Bitcoin [BTC] has been unable to deliver any sizable performance. For those crypto enthusiasts who are wondering whether BTC will offer some redemption in 2023 or even this month, it is important to consider the amount of supply last active 2-3 years.

According to Glassnode Alerts, Bitcoin supply last active 2-3 years is now at a 12-month high. This means that the number of addresses hodling their BTC is increasing, indicating healthy accumulation. However, the amount hodled within this 1-year period still represents only 0.02% of the Bitcoin in supply, meaning the potential impact of this hodl is minimal and unlikely to drive up the price.

In order for Bitcoin bulls to show themselves strong, whale and institutional demand must increase. Unfortunately, an assessment of Bitcoin’s supply distribution reveals a mixed bag as far as whale addresses are concerned. While some addresses are contributing to buying pressure, others are contributing to the selling pressure, putting further downward pressure on the price.

In conclusion, while the amount of Bitcoin HODLing is rising, the potential impact is still limited. Whale and institutional demand must increase significantly in order to push up the price and offer some redemption to Bitcoin bulls.