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Discover the excitement and rewards that await you at Stake.com with deposit bonus!Crypto Market UpdateTable of ContentsCrypto Market UpdatesBitcoin's Sharp Drop on Genesis DayMatrixport's Bearish ETF Outlook vs. Bitcoin's PerformanceEthereum and Layer 2 DevelopmentsChanges in Ethereum's Supply Since The MergeArbitrum's Dominance in Ethereum Layer 2 TVLTech and Blockchain IntegrationTech Transformation at Square EnixPredictions and Market Analysis2024 Crypto Market Predictions by The Block ResearchRegulatory and Compliance UpdatesIRS Rule 6050I Tightens Crypto Transaction ReportingUSDC Stablecoin's Temporary Depegging IncidentExchanges and Platform NewsFlash Loan Attack Impacts Radiant CapitalEtherscan Acquires Solscan to Broaden ScopeENS Token's Significant Rise Post-Buterin EndorsementRNDR Token's Price Fluctuation and MigrationWemade Faces Tax Challenges with WEMIX TokensCoinDCX Clarifies Recent Fraud Allegations2023's Surge in Cryptocurrency Investment InflowsJupiter and Dymension Plan Major Token AirdropsEquity Gifts in NFT Collections Spark Debate Bitcoin's Sharp Drop on Genesis DayBitcoin experienced a significant drop on its 15th genesis day, plummeting from an intraday high of $45,600 to as low as $40,700 before recovering to around $43,000. This sharp decline erased most of its 30-day gains. The crypto market witnessed a flash crash, with $100B wiped from its market cap in just three hours, bringing the total to $1.72T. Over $500 million in crypto trades were liquidated in this period, with speculation about insider knowledge of the crash. Matrixport's report, suggesting the SEC's likely rejection of Bitcoin spot ETF applications, is believed to have influenced the market. However, some analysts argue that the crash was part of standard Bitcoin bull market behavior rather than solely due to the ETF news. Despite Matrixport's bearish outlook on ETF prospects, they remain confident about other crypto operations in 2024. Meanwhile, Bitcoin has outperformed Ethereum for four successive quarters, reflecting its dominant market cap growth.Matrixport's Bearish ETF Outlook vs. Bitcoin's PerformanceMatrixport analyst Markus Thielen predicts the SEC will reject all Bitcoin spot ETF proposals in January, citing political dynamics and compliance concerns. Despite potential short-term volatility, Thielen remains bullish for 2024. Meanwhile, Bloomberg analysts Eric Balchunas and James Seyffart express confidence in ETF approval, questioning the source of rejection reports. The SEC is reportedly finalizing comments on Spot Bitcoin ETFs with stock exchanges, with potential approval imminent. CBOE anticipates that approving Spot Bitcoin ETFs will attract institutional investors, boosting investments. BlackRock plans to acquire $10 million worth of BTC as initial funding for its potential spot Bitcoin ETF, signaling a significant move in the crypto market.Changes in Ethereum's Supply Since The MergeEther's supply increased by 3,051 coins since a post-merge low on Dec. 30, with 54,000 ETH added in Sep. and Oct. but 86,825.5 ETH removed from Nov. to Dec. 30. Since The Merge, 337,333 ETH has been removed. The burn rate post-merge is 2.5 times less than pre-merge, with gas fees dropping and Layer 2 adoption increasing. Arbitrum's Dominance in Ethereum Layer 2 TVLArbitrum One, an Ethereum Layer 2 network, surpassed $10.22 billion in Total Value Locked (TVL), leading the sector with 48.03% of Ethereum Layer 2 TVL. It offers low transaction costs, attracting 470+ dApps, and holds a diverse asset portfolio. The ARB token surged 17.3% to its new all-time high over $2 and serves as a governance token, empowering user engagement. Tech Transformation at Square EnixSquare Enix is restructuring to prioritize AI, blockchain, and Web3. President Takashi Kiryu aims to aggressively apply AI and cutting-edge tech to content development. The company intends to embrace generative AI such as ChatGPT and integrate blockchain and Web3 in its products, evident in the launch of the "Symbiogenesis" NFT-based project. 2024 Crypto Market Predictions by The Block ResearchIn 2024, crypto experts at The Block Research predict rising prices, a Bitcoin ETF approval, and a bullish market. Expectations include the dominance of Ethereum, strong performances by Coinbase and AI-related projects, and increased adoption of Ethereum-based rollups. Major narratives revolve around decentralized infrastructure for AI, scaling solutions, DeFi innovation, and stablecoin market dynamics. IRS Rule 6050I Tightens Crypto Transaction ReportingNew IRS rule 6050I obliges U.S. businesses to report crypto transactions exceeding $10,000 within 15 days or risk felony charges. Recipients must disclose counterparties' details. Challenges persist in reporting block rewards and decentralized exchange transactions. U.S. Treasury Department targets crypto, sanctioning North Korean criminal entities, while Senator Warren pushes for stringent KYC regulations on web3 users. USDC Stablecoin's Temporary Depegging IncidentUSDC stablecoin briefly depegged to $0.74 on Binance due to a market sell-off related to Bitcoin ETF uncertainty. Despite three temporary drops, USDC quickly rebounded to $1. The USDC/USDT pair on Binance displayed a skewed market depth and $6.2 million followed by $4.3 million in volume at 12:10 and 12:21 UTC, respectively. Flash Loan Attack Impacts Radiant CapitalRadiant Capital paused its lending and borrowing markets on Arbitrum after a reported $4.5M flash loan attack. The incident exploited a known rounding issue in the codebase, resulting in a $4.5M Ether siphon. The protocol reassured investors that no additional funds are at risk and promised a detailed postmortem. Radiant Capital currently has around $315M in total value locked. Etherscan Acquires Solscan to Broaden ScopeEtherscan acquires Solscan, expanding beyond EVM to Solana. Solscan offers detailed address, token, and transaction information for the Solana network. The acquisition aims to enhance exploration and analysis capabilities across both platforms, elevating user experience. Solana's value surged significantly since Sept. 2023, reflecting a resurgence in the Solana ecosystem. ENS Token's Significant Rise Post-Buterin EndorsementENS token surged over 50% after Vitalik Buterin endorsed it as "super important." It reached its highest level since April at $12.54 with a 600% increase in volume. ENS aims to improve the user experience in DeFi by integrating with layer-2 blockchains. Currently, there are 2.1 million registered ENS domains with 800,000 unique participants.RNDR Token's Price Fluctuation and MigrationThe Render Foundation covers gas fees for RNDR to RENDER token migration until January 31, 2024, incentivizing holders with 1.14 million RENDER. RNDR's price rallied by 32% in the last month due to Solana network migration but declined by 6% in the last week. Metrics like CMF, MACD, and Aroon indicator confirm a decline in bullish momentum. Wemade Faces Tax Challenges with WEMIX TokensWemade, a Korean gaming firm, owes $41M in unpaid taxes for WEMIX tokens issued from 2019 to 2022. The tax debt amounts to approximately 10% of the company's equity, with a penalty of up to $38M imposed by local authorities. WEMIX tokens, launched in 2020, have seen a 635% return and currently trade at $2.64 with a diluted market cap of $2.5B. CoinDCX Clarifies Recent Fraud AllegationsCoinDCX clarifies recent fraud allegations, attributing them to a fake website scam, and affirming no security breach occurred on its platform. It emphasizes user education and collaboration with law enforcement to combat such scams. The company's proactive approach, including reporting suspicious activities, underscores its commitment to user safety and platform security. Clarification on the recent news regarding fraud on CoinDCX APP:We've learnt of this user having reported fraud related to the use of CoinDCX's App through the recent media outlet's article.We would like to confirm that no such incident has occurred on the CoinDCX App or…— CoinDCX: Made in India, for the World (@CoinDCX) January 3, 2024 2023's Surge in Cryptocurrency Investment InflowsIn 2023, cryptocurrency investment products saw total inflows of $2.2 billion, with Bitcoin accounting for 86% of the inflows. Solana and Multi-Asset followed with $167 million and $320 million in inflows, respectively. This marked a significant increase from 2022. The market saw a shift from outflows to inflows during the year. Jupiter and Dymension Plan Major Token AirdropsJupiter, a decentralized trading aggregator on Solana, plans a JUP token airdrop by late January. This event, involving nearly 1 million Solana wallets, will distribute 40% of JUP's total supply. It's seen as a stress test for both Jupiter's trading infrastructure and the Solana network. Meanwhile, Dymension, a layer-1 blockchain built on Cosmos, announced a "genesis rolldrop" of DYM tokens, targeting over a million crypto users across various chains. This airdrop, excluding U.S. residents, offers 70 million DYM tokens (7% of the total supply) until January 21. Eligible participants include those who staked TIA tokens, users of Ethereum layer-2 networks, Cosmos Hub, Stride, and Osmosis DEX users, as well as over 500,000 Solana users. Additionally, owners of specific NFTs on Ethereum, Solana, and Cosmos-based Stargaze chain can claim DYM tokens. Top Altcoin Gainers and LosersGainers:Arbitrum ARB (+17.13%)Lido DAO Token LDO (+12.66%)Maker MKR (+10.67%)Losers:Terra Classic LUNC (-14.92%)Conflux CFX (-14.84%)Bonk BONK (-14.38%) NFT Market MapEquity Gifts in NFT Collections Spark DebateTwo NFT collections, The Plague and Rektguy, announced gifting company equity to NFT holders during the holiday season. Total sales volume exceeds $35 million. The moves sparked debates on legality and implications within the community. Azuki's Researcher in Residence Waleswoosh claims it may be legal under specific circumstances involving NFT sales and equity offerings. This article has been refined and enhanced by ChatGPT.