The Crypto Compass Issue #57

Hello readers,

In this week's update, we spotlight significant crypto fund inflows, highlighting a rejuvenated market interest. We also cover Ethereum Name Service's innovative partnership with GoDaddy, aiming to enhance Web3 accessibility. Next, we further address a security breach impacting Ripple co-founder Chris Larsen's XRP accounts, and concludes with Vitalik Buterin's reflective insights on his shifting role in the evolving cryptocurrency landscape, emphasizing the growth and mentorship within the ecosystem.

Crypto Funds Experience Significant Inflows, Led by Bitcoin ETFs

Crypto funds from leading asset managers, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, witnessed a notable rebound with $708 million in global inflows last week, according to CoinShares. This marks the second-largest weekly inflow since the U.S. launch of spot bitcoin ETFs in January and a significant recovery from prior outflows, bringing year-to-date net inflows to $1.6 billion and total assets under management to $53 billion.

The reduction in outflows from Grayscale's converted spot bitcoin ETF (GBTC) contributed to this positive shift, despite a decrease in trading volumes for the funds to $8.2 billion from the previous week's $10.6 billion. Bitcoin investment products dominated these inflows, capturing $703 million, nearly 99% of the total, while short bitcoin funds saw minor outflows. The focus remained largely on the U.S., which accounted for the majority of the inflows, contrasting with outflows seen in Canada and Sweden. Solana led altcoin-based funds with $13 million in inflows, whereas ether and Avalanche experienced outflows.

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Ethereum Name Service Partners with GoDaddy for Enhanced Web3 Integration

Ethereum Name Service (ENS), the domain name protocol built on the Ethereum blockchain, has reached a groundbreaking agreement with GoDaddy, the world's largest internet domain registry. This partnership will enable users to link their internet domains with ENS addresses at no cost, signaling a potential resurgence in Web3 adoption among mainstream companies. Highlighting the simplicity and utility of this integration, ENS founder Nick Johnson cited the example of Beyonce linking her domain to a wallet, making it a wallet identifier.

While currently limited to Ethereum addresses, the ambition is to extend this functionality across various blockchains, aiming to harmonize Web3 profiles with traditional domain systems. Despite an ongoing legal battle between ENS and GoDaddy over the sale of the "eth.link" domain, this collaboration marks a significant step towards bridging the gap between legacy internet infrastructure and blockchain technology.

XRP Price Drops After Hack on Ripple Co-Founder's Accounts

XRP's value experienced a significant decline Wednesday morning Eastern Time, following revelations of a hacking incident involving personal accounts of Ripple co-founder Chris Larsen. Despite initial concerns, Larsen clarified on Twitter that the attack was targeted at his personal XRP holdings, not Ripple, the fintech giant behind the sixth-largest cryptocurrency. He reassured that the compromised addresses had been frozen by exchanges and law enforcement was already taking action.

Blockchain investigator ZachXBT reported that the hackers stole approximately 213 million XRP, valued at around $112.5 million, and attempted to launder it through exchanges. Following the incident, XRP's market price fell nearly 5%, trading slightly above $0.50. This event has stirred attention due to XRP's prominence as a tool for fast, low-cost financial transactions among banks and institutions.

Happenings of the week

• Gmoney just took out a $1,000,000 half-year loan on his punk

• Andrew Tate Disavowed Crypto—Now He's Pitching His Own Coin

• Top sales from the Sotheby's Starry Night auction which just ended

• First $50M+ volume month for on-chain prediction markets

Vitalik Buterin on Passing the Torch in Crypto

Ethereum co-founder Vitalik Buterin reflects on the crypto landscape's evolution and his role within it. Observing younger leaders emerging, Buterin acknowledges a shift from being a crypto wunderkind to embracing a guiding role for new talent. Influenced by the industry's challenges and his own experiences, including a reflective encounter with Vladimir Putin, Buterin recognizes the need for intentional action in the crypto space. Moving forward, he emphasizes supporting the next generation of innovators, marking a transition from pioneering developer to mentor and supporter of crypto's future growth.

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!