The Crypto Compass Issue #48

Hello to our dear readers!

In our latest newsletter, we dive into pivotal developments in the crypto world. Robinhood reports a significant surge in crypto trading, signaling revived market interest. In the NFT arena, Blur has impressively surpassed OpenSea in trading volume. El Salvador announces profits from its Bitcoin investments, underscoring its role in crypto adoption. Finally, digital asset investment products have seen substantial inflows, indicating sustained market confidence. These highlights reflect the dynamic and evolving nature of the cryptocurrency and digital asset sectors.

Robinhood Reports Significant Surge in Crypto Trading Volumes

Robinhood, the popular trading platform, revealed a substantial increase in cryptocurrency trading activity in November. According to a recent SEC filing, the platform's crypto trading volumes in November were approximately 75% higher than in October 2023. This surge marks a potential turnaround for the company, which had previously reported declining revenues from cryptocurrency trading, including a 55% drop to $23 million in the third quarter.

The increase in trading activity coincides with an ongoing rally in the crypto market. Additionally, Robinhood announced plans to expand its crypto trading services to the European Union, following its launch in the UK, indicating a strategic move to broaden its market presence and offerings in the digital assets space.

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El Salvador's Bitcoin Investment Yields Modest Profit Amid Market Fluctuations

El Salvador's President Nayib Bukele announced that the country's Bitcoin investments have yielded a 2.84% net profit, totaling $3.6 million on a cumulative investment of $131 million. Despite the volatility in Bitcoin's value, which saw a significant drop of over 50% following their initial investment of $10.3 million in September 2021, Bukele affirmed El Salvador's commitment to not selling its Bitcoin holdings, viewing them as part of a long-term strategy.

During Bukele's tenure, El Salvador made history by becoming the first nation to adopt Bitcoin as legal tender, although the International Monetary Fund has cautioned about the associated risks. Despite limited adoption within the country and mixed experiences in using Bitcoin for everyday transactions, the Salvadoran government plans to introduce Bitcoin education in state schools next year. This announcement comes shortly after Bukele's resignation as president on December 1, to focus on his 2024 reelection campaign, marking a significant period of El Salvador's engagement with cryptocurrency.

Blur NFT Marketplace Dominates Trading Volume, Overtaking OpenSea

Blur, a relatively new NFT marketplace launched in October 2022, has rapidly gained a significant market share in the Ethereum-based NFT sector. According to The Block's Data Dashboard, Blur now accounts for almost 80% of the non-fungible token (NFT) trading volume, a dramatic shift from the earlier dominance of OpenSea, which has fallen to about 17%.

The NFT market itself has witnessed a considerable increase in activity, with Ethereum-based NFT trading doubling from $306 million in October to $605 million in November. Early December trends show continued growth, particularly on Blur, contributing nearly $70 million out of $90 million in total NFT trades.

In addition, the Solana-based NFT marketplaces have also seen a rise in trading volumes, reaching daily highs not observed since April. This shift indicates a changing landscape in the NFT market, with professional traders increasingly favoring platforms like Blur, known for its zero-fee structure.

Happenings of the week

• Crypto Firm Phoenix Jumps 50% After $371 Million Abu Dhabi IPO

• Bitcoin roars past $40,000 as SEC’s next window to approve spot ETFs draws near

• Week in DeFi: Solana Airdrop Season in Full Swing

• Coinbase Stock Triples in 2023 After Firm Survives Crypto Chaos

Crypto Investment Products See Record Inflows, Bitcoin and Ether Values Surge

Digital asset investment products have experienced significant growth, with a 10-week inflow streak totaling $1.76 billion, marking the highest influx since the peak of the bull market in October 2021. This surge coincides with the launch of futures-based bitcoin ETFs in the U.S. Bitcoin funds led the charge with $133 million in inflows, while Ether products contributed $31 million, as both cryptocurrencies hit their highest price levels in 18 months.

Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!