The post Kucoin Report: Ethereum ETF, Stablecoin Issuance, Layer 2 Trends, Sybil Attacks & More appeared on BitcoinEthereumNews.com.

TLDR The SEC’s approval of a Spot Ethereum ETF boosted market confidence and drove a rebound in cryptocurrency assets, along with strong performance in U.S. stocks and tech stocks. Stablecoin issuance showed mixed trends, with notable declines in USDC and FDUSD, while USDe reached a new high. The varying acceptance of different stablecoins suggests further evolution in the stablecoin market. ETH Layer 2 solutions showed diverging trends, with Layer 2 TVL denominated in ETH declining despite ETH’s price increase. New narratives around MEME coins and restaking are gaining traction over the previous focus on high performance and low fees. Large crypto projects are implementing stricter Sybil attack screening measures to ensure token distributions reach users who will contribute to ecosystem development rather than just seek to maximize profits. U.S. lawmakers passed the “Financial Innovation and Technology for the 21st Century Act” to establish a regulatory framework for digital assets, though full implementation may take significant time. Other key policy developments occurred in Hong Kong and Türkiye. The cryptocurrency market showed signs of revival and maturation in May 2024, driven by key regulatory developments, shifting market dynamics, and the rising prominence of new technologies and trends, according to the latest report from KuCoin Research. One of the most significant boosts to market confidence came from the U.S. Securities and Exchange Commission (SEC), which unexpectedly approved a Spot Ethereum ETF. This landmark decision, alongside strength in the broader U.S. stock market and surging interest in tech and AI-related stocks, helped propel a rebound across major cryptocurrency assets. However, the recovery was not uniform across all sectors. In the stablecoin market, total issuance of fiat-collateralized stablecoins stagnated, weighed down by declines in USDC and FDUSD. At the same time, USDe issuance hit a new high, surpassing FDUSD. The diverging trends suggest that the…

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Filed under: News - @ June 13, 2024 5:20 pm