Crypto Weekly Market UpdateTable of ContentsMarket Movements and TrendsCrypto Weekly RecapGlobal Developments in CryptoGlobal Crypto Regulations See Major DevelopmentsTornado Cash Token Rises After Court RulingCrypto ETFs and ETPs Gain MomentumMemecoin Launchpad Faces Backlash Over Content IssuesSecurity and InnovationUniswap Launches $15.5M Bug Bounty ProgramJustin Sun Eats $6.2M Banana for Crypto ArtCrypto Platforms and ExchangesCoinbase Criticized Over Celo and Solana IssuesCelsius Announces $127M Creditor PayoutKraken Shuts Down NFT Marketplace Amid Low SalesNFTs as Financial Assets$2.75M Loan Secured With CryptoPunk NFTCrypto Weekly RecapBitcoin:Weekly performance: +3.5%US Spot ETF netflow: -$458.08MBTC dipped to $90,800 before rebounding above $98,000 on Friday, holding steady above $90,000 support for ten consecutive days.Standard Chartered’s Geoff Kendrick attributed the dip to reduced term premiums in U.S. Treasurys, making them more attractive while signaling a BTC pullback after consecutive gains.Weekly inflows into digital asset investment products hit $3.13 billion, a 2024 record, pushing year-to-date inflows to $37 billion, with Bitcoin capturing $3 billion.MicroStrategy increased its holdings to 386,700 BTC with a $5.4 billion purchase, joined by bullish institutions like Rumble, Jiva Technologies, and Marathon Digital.The global stablecoin supply has reached a record high of approximately $191.6 billion, a 46% increase from the previous year. Tether minted over $5 billion in USDT within 72 hours, and kept printing more this week, boosting liquidity during the week.Bitcoin holders sold $60 billion worth of BTC this month, marking the heaviest profit-taking phase in the current cycle, per Checkmatey.Despite this, the price only briefly fell to $90,800 as whales accumulated 16,000 BTC worth $1.5 billion during the dip.Institutional demand, spot ETFs, and supportive policies—like Vancouver's Bitcoin reserves plan and Hong Kong's crypto tax exemptions—bolstered market momentum.US Spot Bitcoin ETFs saw their first week of outflow after 7 consecutive weeks of inflows totaling ~$12.336 billion. Coinbase ended its USDC rewards program in the EEA due to MiCA rules, signaling Europe may lag behind the U.S. in crypto adoption.U.S. Core PCE inflation rose to 2.8% in October, with Core CPI, PCE, and PPI increasing simultaneously for the first time since February 2022, raising fears of a hawkish Fed stance.Trump administration proposed shifting crypto oversight to CFTC, reducing SEC’s impact.Ethereum:Weekly performance: +7.49%US Spot ETF netflow: +$133.61METH outperformed BTC in weekly gains, with ETH's open interest hitting an all-time high above $24B on Thursday.BTC.D fell 4.15% in a week, ETH.D rose 3.14%, and USDT.D dropped 1.55% despite a supply spike, signaling capital flow from BTC to ETH and confidence in ETH's short-term growth.ETH briefly reached $3,700 as Ethereum co-founder Jeffrey Wilcke sold another 20K ETH, causing community dissatisfaction.The Ethereum Foundation invested tens of millions into Zero Knowledge Virtual Machines (zkVMs). Altcoins rallied ahead of ETH’s upward move, with L1, DeFi, and PayFi sectors leading the surge; XRP hit over $1.7 following its legal victory.GameFi and Metaverse pumped next, with AI Agent driving the weekend rally; Binance’s CZ and Elon Musk showed bullish sentiment on AI, with Musk saying AI gaming is “the future,” and announcing xAI’s AI gaming studio plans. Tokens like VIRTUAL spiked, hitting an ATH of $1.4 before slowing down.Memecoins slowed, especially after the Pump.fun scandal that led to CZ’s comment that memecoins were “getting weird,” but niche memes like AI-themed tokens continued performing well.L2 tokens gained momentum after ETH’s rise but slower than other sectors.In contrast, SOL and its ecosystem tokens have been lagging behind after weeks of stealing the spotlight.According to CryptoQuant’s Ki Young Ju, altcoin season is stalled by a Bitcoin rally, fueled by institutional investors and spot ETFs, which is restricting capital flow into altcoins. Unlike previous cycles, there's no movement of money from Bitcoin to altcoins. To reach new highs, altcoins require new retail capital, which is currently missing. However, if Bitcoin's bullish trend persists, retail FOMO could boost trading in altcoins. To draw independent capital, altcoins must offer innovative technology, strong communities, or unique use cases. He said only a few may see significant growth, while many could suffer without renewed retail investment.Altcoins:The Graph introduced GRC-20 tokens, enabling new functionalities.DCG launched an ecosystem accelerator to drive crypto innovation.VanEck extended the fee waiver for its HODL Bitcoin ETF until Jan. 10, 2026, or for the first $2.5 billion in assets.Starknet launched Ethereum layer-2 staking, with Bitwise as an initial validator.SEC recorded $8.2 billion in enforcement, mainly from Terraform Labs.Sky Mavis cut 21% of its workforce and announced a new Axie Infinity game.WBTC briefly dropped to $5,200 on Binance due to a glitch before returning to normal.Truth Terminal integrated with other AI models for experimental use cases.Heco Chain retired and urged users to redeem their assets promptly.Peanut pet owner launched a token and threatened a lawsuit against the crypto community.Avalanche tested a network update and allocated $40 million in rewards for the community.ASI Alliance launched Cortex, a decentralized AI platform for industrial needs.Phantom integrated Base Network to expand multi-chain token swapping capabilities.ACT launched a $1 million AI Meme Fund to encourage creative meme ideas.Tornado Cash token surged to a 2-year high after a US court ruled Treasury sanctions unlawful.Ton introduced Bitcoin liquidity to Telegram with trustless cross-chain bridgeCardano deployed its first zero-knowledge smart contract, enhancing blockchain features.Clanker upgraded to share more transaction fees with its users.Tether stopped minting euro-backed stablecoins, citing regulatory challenges; its CEO predicted commodities liquidity pools could reach $5 billion by 2026.DeSci game Pump Science was exploited after its private key became public.Telegram CEO Pavel Durov endorsed MAJOR token, pledging to “hold it for 10 years.”Vitalik Buterin converted meme coins to ETH and donated $1 million to a crypto policy group.SingularityNET partnered with Mina to develop privacy-focused decentralized AI solutions.GFT token fell after Gifto founders minted 1.2 billion tokens following Binance delisting.PancakeSwap introduced MEV Guard on the BNB Chain.XT Exchange halted withdrawals after a $1.7 million hack but claimed no user impact.A crypto user convinced AI bot Freysa to transfer a $47,000 prize pool.Hyperliquid airdropped over $1.2 billion in tokens as HYPE’s FDV surpassed $4 billion.A $21 million hack on DEXX impacted over 8,600 Solana wallets.Ethena and Securitize promoted a BlackRock-backed stablecoin in Spark’s $1 billion tokenization initiative.Global Crypto Regulations See Major DevelopmentsRecent developments in cryptocurrency regulation highlight significant global shifts. Coinbase will end its EEA USDC rewards program due to MiCA regulations starting December 1, while Hong Kong introduces tax exemptions for crypto gains to boost its financial hub status. In Russia, a law recognizing cryptocurrencies as property exempts them from VAT and imposes new tax structures. Taiwan enacts strict AML rules effective November 30, 2024. The UK plans comprehensive crypto regulations by early 2025, and Switzerland studies Bitcoin mining's economic potential. Morocco moves to legalize cryptocurrency, exploring a central bank digital currency alongside its regulatory framework.Tornado Cash Token Rises After Court RulingTornado Cash's TORN token surged to a two-year high after a U.S. appeals court overturned Treasury sanctions, reaching $33 with a staggering 1,000% increase in 24 hours before stabilizing at around $21. The court ruled that the Treasury exceeded its authority by targeting Tornado Cash's immutable smart contracts, which function autonomously and do not qualify as property under the International Emergency Economic Powers Act. This landmark decision is seen as a victory for decentralized finance and privacy rights, although experts caution that the platform may still face regulatory scrutiny in the future, reflecting ongoing challenges in blockchain regulation.Crypto ETFs and ETPs Gain MomentumRecent developments in the cryptocurrency investment landscape include Bitwise's SEC filing for an ETF based on its 10 Crypto Index Fund, featuring Bitcoin (75.14%) and Ether (16.42%). Grayscale reopened private placements for 19 trusts, targeting accredited investors as Bitcoin's market rises. WisdomTree seeks to introduce an XRP ETF, reflecting growing crypto ETF interest. The Dogecoin ETP launched in Sweden supports the Foundation’s decentralized payment initiative. Ripple invests in Bitwise's rebranded Physical XRP ETP, and 21Shares plans four new ETPs focusing on advanced blockchain technologies. Key metrics include Grayscale’s significant AUM and Bitcoin ETF inflows exceeding $30 billion.Memecoin Launchpad Faces Backlash Over Content IssuesPump.fun, a Solana-based memecoin launchpad, has indefinitely suspended its livestream feature due to backlash over harmful content, including a suicide threat and violent incidents linked to token prices. Critics have labeled the livestream a "pipeline of felonies," highlighting the need for effective moderation. Meanwhile, the memecoin market is in decline, with two-thirds of launched tokens becoming worthless; 86% lose over 90% of value within three months. Influencer promotions exacerbate issues, as 76% of endorsed projects are now defunct, leading to significant financial losses for investors, some reporting losses of up to $45,000 and severe emotional distress.Uniswap Launches $15.5M Bug Bounty ProgramUniswap Labs has launched what it claims to be the largest bug bounty program in history, offering up to $15.5 million for identifying critical vulnerabilities in its v4 core contracts. Payouts start at $2,000, escalating to the full amount for unique vulnerabilities that result in code changes. Vulnerabilities are categorized with critical issues qualifying for $15.5 million, high risk up to $1 million, and medium risk up to $100,000. Additional coverage includes other contracts, websites, and backend codes. This initiative follows a $2.35 million security competition that found no critical vulnerabilities, reinforcing Uniswap’s commitment to security ahead of the v4 launch.Justin Sun Eats $6.2M Banana for Crypto ArtJustin Sun, founder of Tron, ate a $6.2 million banana from Maurizio Cattelan’s conceptual artwork "Comedian," emphasizing parallels between cryptocurrency and art. The event spurred interest in related meme coins like Banana Tape Wall (BTW) and Comedian (BAN), which gained 10% and 9.5% in market value, respectively. Sun also announced a plan to buy and distribute 100,000 bananas worldwide from a New York fruit stand, celebrating the intersection of art and everyday life. Additionally, Sun invested $30 million in the Trump-backed World Liberty Financial project to advance blockchain-driven cross-border payments and enhance financial inclusion, reinforcing crypto's transformative potential.Coinbase Criticized Over Celo and Solana IssuesCoinbase announced it would not support Celo's migration to a Layer 2 Ethereum solution, prompting user withdrawal of CELO tokens by January 13, 2025, and sparking criticism about its alignment with Ethereum's scaling goals. Following the announcement, CELO's value dropped nearly 5%. Simultaneously, Coinbase resolved prolonged Solana transaction delays caused by internal system issues rather than Solana's infrastructure. The delays, lasting up to 45 minutes, frustrated the Solana community, which highlighted Solana's 12-second finality compared to Coinbase's Base network's 16-minute delays. Coinbase addressed these issues, emphasizing its broader industry contributions despite ongoing criticism.Celsius Announces $127M Creditor PayoutCelsius Network has announced a second creditor payout of $127 million, originating from its Litigation Recovery Account, which will help cover approximately 60% of creditor claims. Eligible creditors from Classes 2, 5, 7, 8, and 9 will receive payments in cash or Bitcoin, valued at $95,836 per unit. This follows an initial payout of $2 billion to over 171,000 creditors after Celsius filed for bankruptcy due to a $1.2 billion deficit in July 2022. The legal woes of former CEO Alex Mashinsky, facing fraud accusations, further complicate the company's recovery and impact the crypto lending industry's trust and regulatory landscape. Top Weekly Altcoin Gainers and LosersGainers:The Sandbox SAND (+84.96%)Stellar XLM (+84.68%)Algorand ALGO (+74.41%)Immutable IMX (+47.10%)Celestia TIA (+38.19%)Losers:Popcat POPCAT (-14.10%)Raydium RAY (-11.26%)Floki Inu FLOKI (-6.86%)Bonk BONK (-6.45%)Solana SOL (-5.85%) NFT Market MapKraken Shuts Down NFT Marketplace Amid Low SalesKraken is set to close its NFT marketplace, transitioning to withdrawal-only mode on November 27, 2024, and fully shutting down by February 27, 2025. This decision aims to reallocate resources to new initiatives and products. Despite launching in beta in November 2022, the marketplace faced stagnant NFT sales, with weekly trading volumes remaining below $200 million since April 2024. While some projects, like CryptoPunks, saw temporary increases, the overall market has not recovered. Kraken's team will assist users in transferring NFTs to their Kraken Wallet or preferred self-custodial wallet during this transition.$2.75M Loan Secured With CryptoPunk NFTA historic loan of $2.75 million was secured against CryptoPunk #8348, a unique NFT with seven traits, by notable collector Seedphrase through the NFT lending platform GONDI. The loan has a six-month maturity and a 20% interest rate, after which the Punk may be forfeited if not repaid. Seedphrase originally purchased the NFT for 85 ETH ($18,000) in May 2020. This deal highlights the growing legitimacy of NFTs as a valuable asset class, with GONDI facilitating loans totaling over $100 million. The CryptoPunk floor price has recently exceeded $100,000, indicating a resurgence in NFT valuations.This article has been refined and enhanced by ChatGPT.