The Crypto Compass Issue #58

Hello readers,

Happy Chinese New Year! Hope you had an awesome break and is now recharged to invest and participate in the crypto space!

In this week's edition, we navigate through pivotal shifts and strategic expansions in the cryptocurrency and blockchain sector. We kick off with Bitcoin's market capitalization soaring past the $1 trillion mark, underscoring a bullish sentiment and its comparative stature alongside global financial giants.

Following this, we spotlight Yuga Labs' acquisition of Proof and its celebrated Moonbirds collection, marking a significant consolidation within the NFT space. The narrative then shifts to the Uniswap Foundation's announcement of the tentative Q3 2024 launch for its version 4 protocol, promising enhanced functionality and efficiency.

Lastly, we delve into the contrasting fortunes of gold and Bitcoin ETFs in 2024, with gold facing outflows amidst Bitcoin's surging investment inflows, highlighting a pivotal moment in investor preference between traditional and digital assets. Join us as we explore these developments, each signifying key milestones and evolving trends in the digital finance realm.

Bitcoin Market Cap Hits $1 Trillion: A Comparison to Global Giants

Bitcoin's market capitalization has once again reached the $1 trillion milestone, signaling a strong bullish sentiment in the cryptocurrency market. This achievement puts Bitcoin in perspective with the world's largest companies and assets, highlighting its significant growth and potential for further expansion.

Microsoft leads the chart as the largest company with a $3 trillion market cap. In comparison, gold's market cap stands at $13.25 trillion, and the S&P 500 exceeds $41.5 trillion. With only seven publicly traded companies valued over $1 trillion, Bitcoin's achievement underscores its stature alongside global giants like Microsoft, Apple, and Saudi Aramco. This milestone not only demonstrates Bitcoin's capacity to rival traditional assets like gold but also its potential to redefine digital payments infrastructure on a global scale.

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Yuga Labs Acquires Proof and Moonbirds Collection to Expand NFT Empire

Yuga Labs, the powerhouse behind the Bored Ape Yacht Club, has announced the acquisition of Proof, the creator of the Moonbirds NFT collection, further cementing its position as a leading force in the NFT space. While the financial details of the acquisition remain undisclosed, Yuga Labs aims to integrate Moonbirds into its Otherside metaverse, highlighting the collection's potential and brand synergy.

This move comes as overall NFT trading volumes show signs of recovery, albeit still below the peak levels of 2021 and 2022. Despite Moonbirds achieving nearly $500 million in trading volume at its peak, its sales have since tapered off, in contrast to the sustained success of Yuga Labs' own collections. This acquisition marks a significant step in Yuga Labs' strategy to champion blockchain-based art, culture, and community engagement.

Uniswap Foundation Announces Tentative Q3 Launch for Version 4 Protocol

The Uniswap Foundation has set a tentative Q3 2024 launch date for Uniswap's version 4 (v4) protocol, contingent on the Ethereum Dencun hard fork in March. The v4 upgrade will introduce a modular design with "hooks" for customized liquidity pools, dynamic fees, and on-chain limit orders, alongside a "flash accounting" system to lower liquidity provider fees. This next iteration follows Uniswap's tradition of innovation since its 2018 debut, aiming to enhance the platform's functionality and user experience.

Happenings of the week

• Elizabeth Warren signed a certificate to honor Bitcoin creator Satoshi Nakamoto with a ceremonial flag

• AltLayer closes $14.4 million strategic round co-led by Polychain and Hack VC

• Starknet Foundation unveils STRK token distribution plan to nearly 1.3 million eligible wallets

Gold ETFs Face Outflows as Bitcoin ETFs Attract Billions in 2024

In a striking contrast to the traditional safe-haven asset, gold ETFs have experienced significant outflows amounting to $2.4 billion in 2024, while Bitcoin ETFs have garnered $3.89 billion in inflows. This trend highlights a shift in investor interest, with Bitcoin ETFs achieving record volumes since their launch in January. Despite the outflows from major gold ETFs like BlackRock’s iShares Gold Trust, analysts suggest that the movement isn't necessarily a direct migration from gold to Bitcoin ETFs, but rather an indication of the broader market dynamics favoring US equities. Meanwhile, gold's price has dipped by 3.4% since the year's start, whereas Bitcoin has surged 23.5%, reaching a two-year high. This divergence underscores the evolving investor sentiment towards traditional and digital assets amidst economic fluctuations.

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!