Welcome to the first edition of Datawallet Daily for the week. As always, we’re sharing the top stories that have influenced the crypto world over the last day.
- Bitcoin Outflows Reach $33M, Ending 11-Week Inflow Streak
- Ordinal Inscriptions Clogging Bitcoin and Other Networks
- Stolen Apes NFTs Returned Following Bounty Payment
- FTX Submits Plan to End Bankruptcy
Bitcoin Outflows Reach $33M, Ending 11-Week Inflow Streak
Crypto funds from asset managers like CoinShares, Bitwise, Grayscale, ProShares, and 21Shares experienced their first net outflows in 11 weeks, totaling $16 million, with Bitcoin funds leading the outflow at $32.8 million. This reversal, following an 11-week influx, coincides with Bitcoin’s price drop, ending its eight-week gain streak. The outflows, primarily in the U.S. and Germany, suggest profit-taking rather than a shift in asset sentiment.
In contrast, Switzerland and Canada saw inflows. Ethereum and Avalanche funds also faced outflows, while Solana, Cardano, XRP, and Chainlink funds gained inflows. Moreover, blockchain equities continued to attract positive attention, with inflows totaling $122 million last week.
Despite the outflows, Bitcoin showed resilience with a 3% surge at Monday's market open, buoyed by optimism for a year-end ETF launch. Investor enthusiasm grew following Bitwise's recent Bitcoin ETF advertisement, anticipating a forthcoming marketing campaign.
Ordinal Inscriptions Clogging Bitcoin and Other Networks
The cost of sending Bitcoin on-chain has soared, reaching an average of nearly $40 per transaction as of December 17, marking the highest level since April 2021. This spike in fees, driven by the wave of Bitcoin Ordinals inscriptions, has led to a divide in the Bitcoin community. While some argue that high fees are inevitable and a glimpse into Bitcoin’s future, others are frustrated by the impact on transaction costs.
The craze for Ordinals inscriptions has significantly increased network transaction fees across various blockchains, not just Bitcoin. EVM chains experienced a surge in inscriptions over a recent weekend, pushing gas fees to a record $8.3 million on December 16, with the Avalanche network experiencing the highest spend at over $5.6 million. This trend has also affected the BNB Chain and caused a significant outage on the Arbitrum One network.
Stolen Apes NFTs Returned Following Bounty Payment
A hacker who stole Bored Ape Yacht Club and Mutant Ape Yacht Club NFTs from NFT Trader returned all assets after receiving a 120 ETH bounty, approximately $267,000. The theft, involving NFTs worth nearly $3 million, occurred due to a vulnerability in a smart contract upgrade. The hacker initially demanded ransom but eventually agreed to the bounty payment.
The return of the NFTs was facilitated by a community-led initiative, including Boring Security and Greg Solano, co-founder of Yuga Labs, creators of the BAYC and MAYC collections. The incident has led to calls for users to revoke permissions granted to two old contracts to prevent further unauthorized transfers.
FTX Submits Plan to End Bankruptcy
FTX has submitted a reorganization plan to a Delaware court to conclude its bankruptcy proceedings. The plan, following initial proposals, aims to return up to 90% of funds to creditors. The creditor and customer claims in the plan are categorized based on their priority level, with claim values calculated using asset prices from the date FTX filed for bankruptcy.
The estate’s objective is to ensure efficient and maximal distribution of value to all creditors. As commonly seen in similar crypto bankruptcy cases, the plan might encounter resistance from various creditor groups until it receives court approval, with a hearing anticipated in 2024.
Other breaking news
- Solana Saga Phone Priced at $5,000 on eBay Amid BONK Hype
- Aurory’s USDC Pool Drained on Camelot DEX
- GameFi Execs Predict “Tens of Millions” Joining Web3 via Gaming in 2024
- Blockchain Private Loans Double to $582M Since 2022
- Analyst: Spot Bitcoin ETF Could Spell “Bloodbath” for Crypto Exchanges
Wrapping up
Wrapping up today’s edition: Bitcoin outflows hit $33 million as investors lock in recent gains, yet optimism persists with rising altcoin inflows suggesting a potential altcoin rally. In other news, the growing interest in ordinals has raised concerns, as they increasingly clogging blockchain networks. On a positive note, the saga of the stolen Bored Apes has come to an end, with the return of the NFTs following a bounty payment. Lastly, FTX has put forward a plan to resolve its bankruptcy situation. Stay with us for more updates!
