Nov 25, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Trump's Planned Crypto Advisory Council

President-elect Donald Trump has pledged to establish a crypto-friendly administration, which includes forming a new advisory council for the cryptocurrency industry. Major companies like Ripple, Kraken and Circle are vying for positions on this council to influence U.S. digital asset policy.

The council is expected to be based within the White House, likely under the National Economic Council, and will coordinate policies related to cryptocurrencies, advise Congress and help create a national Bitcoin reserve. Industry leaders, including executives from Coinbase and Circle, have expressed interest in joining.

Trump’s transition team is also considering appointing a "crypto tsar" to lead the council. Former CFTC officials, such as Heath Tarbert and Brian Quintenz, are advising on crypto policy as the administration seeks to roll back Biden-era enforcement actions against crypto companies.

While excitement over a pro-crypto administration has contributed to Bitcoin's surge toward $100,000, some consumer groups have raised concerns about the industry shaping its own regulations. 

Weekly Crypto Highlight — Bitcoin Tests $100,000 as ETF Flows Intensify

U.S. Spot Bitcoin exchange-traded funds (ETFs) have achieved a significant milestone, accumulating over $30 billion in total net inflows since their inception in January 2024. This surge in investment reflects a growing interest in Bitcoin, as well as a favorable market environment.

The rise in net inflows and trading volume can be attributed to heightened bullish sentiment in the market, particularly following the re-election of former president Donald Trump. His return to the political forefront has sparked optimism among investors, contributing to increased confidence in cryptocurrency investments.

As a result of this influx of capital, the total net asset value of these Bitcoin ETFs has exceeded the $100 billion mark as of Wednesday, Nov 20, 2024. This achievement underscores the growing acceptance of cryptocurrencies in mainstream finance, and highlights the potential for continued growth in this sector. The strong performance of these funds signals a robust demand for Bitcoin, and could pave the way for further developments in cryptocurrency investment.

Advanced

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Weekly Institutional Insights: Bitcoin Tests $100K as ETF Flows Intensify

Sui Name Service (SuiNS) enables blockchain users to register human-readable web3 names, ensuring secure, seamless transactions and a user-friendly on-chain identity.

Some people have no trouble remembering new cell phone numbers, and there are even a select few among us who wouldn't find it hard to memorize a 16-digit bank card number. However, very few people would choose to tackle the job of reliably recalling an alphanumeric blockchain address. Network addresses on 

 (ETH) are 42 characters long, while on the 

 (SUI) blockchain they span 66. These complex and length addresses are virtually impossible for most users to remember, and are among the least user-friendly features of 

 networks. Not only are long blockchain addresses distinctly user-unfriendly, but they also lead to many instances of wrongly executed transactions due to incorrectly input characters. 

Sui Name Service (NS), a solution on the Sui blockchain, has been specifically designed to tackle this problem. The service allows users to create human-readable and easy-to-remember web3 names linked to their underlying blockchain addresses. Using SuiNS, you can transact within web3 using your preferred username and, optionally, an avatar, rather than a long, complex blockchain address.

 (NS), or simply SuiNS, is a decentralized naming service that allows you to create and use a human-readable, user-friendly web3 handle to interact with the blockchain environment, instead of using a typical long and complicated network address. 

At the underlying level, your SuiNS name is linked to your blockchain address, but all the interaction and operations on the chain happen via your registered name.

SuiNS was first conceptualized and launched in 2022, inspired by the popular 

 (ENS). In many ways, SuiNS and ENS are similar, the obvious difference being that each one applies to its own respective blockchain environment. In May 2023, SuiNS was introduced on the Sui blockchain's newly launched mainnet. The service was developed and is supported by Mysten Labs, the development studio behind the Sui blockchain project. Since the beginning of the Sui blockchain's conceptualization, SuiNS has been among the core projects of the entire Sui ecosystem. As of late November 2024, SuiNS has managed to achieve the remarkable milestone of having registered nearly 330,000 names.

Using SuiNS, you can register your preferred username (as long as it's not been taken) for one year by paying a registration fee, currently charged in SUI coins. The name can be renewed at expiration for up to five years. All interactions with the blockchain environment through your wallet use your preferred username, rather than your blockchain address.

SuiNS names can be between 3 and 63 characters. Users can check the availability of their preferred handle and register it using the 

, where a lookup textbox is prominently displayed. Shorter names cost more than longer handles. As of the time of this writing (Nov 21, 2024), a three-character-long name costs 500 SUI ($1,785) and a four-character name will cost 100 SUI ($357), while names with five or more characters are priced at 20 SUI ($71.40).

A SuiNS name can only be registered for one year, but it can be renewed for up to four years (excluding the initial registration year). There's a 30-day grace period after the expiration of your SuiNS name, during which you may still renew it. If you don't renew during the grace period, your registered name will be up for grabs by anyone on the market. Optionally, you can buy an NFT avatar linked to your SuiNS name.

 (DApp) ecosystem on the Sui blockchain. Developers can use off-chain remote procedure calls (RPCs) to integrate the Sui service into their application environments. They can also take advantage of the native, on-chain SuiNS SDK to interact with the service.

Thanks to SuiNS, you can enjoy short, comprehensible names for your own address, as well as the addresses of the parties with whom you transact (if they also sign up for the service). No more forgettable string combinations that are hard to read and virtually impossible to remember!

However, a SuiNS name isn't just a tool of convenience. It also represents your decentralized identity on-chain. The identity is fully owned by you, the user, rather than by a centralized entity.

SuiNS minimizes the likelihood of lost assets due to sending funds to the wrong address: short, easy-to-remember names are way less prone to incorrectly executed transactions than standard blockchain addresses.

Security is also among the benefits of SuiNS. The service runs on the Sui chain, which prides itself on developing and enforcing high-grade security standards. Among these are 

, a framework that maintains a list of malicious websites and on-chain assets, thus protecting the Sui ecosystem from 

 launched by these known nefarious entities.

The SuiNS service launched its native token, NS, on Nov 14, 2024. Initially, NS is envisioned to support 

 processes on the platform, and will also be used for purchasing and trading SuiNS names. Currently, names are traded using SUI, the blockchain's native cryptocurrency. It's likely that NS will replace SUI in this capacity in the near future. The project team has also hinted that there could be additional uses for the NS token beyond governance and payment for SuiNS names. More announcements on this issue are likely to follow.

During the initial phase of the token's existence, governance will be its most prominent function. Holders of NS will be able to vote on important issues concerning the protocol's rules and future direction. One NS equals one vote, with more NS tokens giving you a greater say in the overall decision-making process. You can also increase your voting power by locking your NS tokens for from one to 12 months. For every additional month locked, you obtain 10% voting power. To encourage voting, 5% of the NS token's supply has been allocated for governance rewards. NS is a 

 token, with a total and maximum supply set at 500 million. The token's supply distribution shares are per the chart below.

NS is available on Bybit's Spot market as a swap pair with USDT (

). You can also take advantage of Bybit's campaign dedicated to the token to grab a share of the 

. Three campaign events for eligible users run through Nov 27, 2024, 8AM UTC:

Thanks to Sui Name Service, interacting on-chain has become easier and more user-friendly. However, easy-to-remember names aren't the only benefit: advantages also include lower likelihood of lost funds, better security and a completely decentralized, user-owned identity on-chain. So far, around 330,000 names have been registered, and with the impressive suite of benefits, expect this number to grow as we move with SuiNS into 2025.

Intermediate

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Sui Name Service (NS): Your On-Chain Identity Made Simple

The cryptocurrency market is witnessing an influx of speculative trading, particularly with meme coins like DOGE, PEPE and BONK experiencing extraordinary gains. 

November 2024 has marked a significant milestone for Bitcoin, with its price soaring to $94,105. This unprecedented growth has been driven by global events and heightened social media discussions, with predictions of six-figure valuations. Historically, peaks in social media chatter often precede market corrections, signaling traders to exercise caution. Currently, while whale accumulation remains strong — with wallets holding over 10 Bitcoin adding 53,006 more BTC in just one month — retail traders remain surprisingly cautious. This wary sentiment contrasts sharply with the bullish behavior usually seen during price surges, suggesting a potential correction.

The cryptocurrency market is witnessing an influx of speculative trading, particularly with meme coins like DOGE, PEPE and BONK experiencing extraordinary gains. Despite their volatility, these tokens reflect a broader appetite for high-risk investments. Notably, whale investors holding 1M–100M DOGE are accumulating, while smaller holders are selling, creating conditions for potential breakouts. However, if new capital stops flowing, these speculative assets could face significant downturns. Additionally, while discussions around Bitcoin reaching $100K are increasing, they haven’t reached the levels seen earlier this year, indicating that fear of missing out (FOMO) may not yet be fully realized.

Institutional Interest and Ethereum's Resurgence

Demand for Bitcoin ETFs has surged, with daily trading volumes hitting a record $8.21 billion, signaling increased institutional interest. This activity often coincides with market peaks, but could also indicate new investments flowing into the crypto space. Meanwhile, Ethereum has also gained momentum, breaking above $3,100 for the first time in over 14 weeks. Additionally, whale accumulation is on the rise, suggesting that as Bitcoin leads the market, profits may soon be redirected into Ethereum. In contrast, Solana's price movements remain highly sentiment-driven, with funding rates indicating potential entry points for investors. Overall, altcoins are experiencing growth, particularly following the U.S. elections, which have reignited optimism in the crypto market.

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Bitcoin's Resurgence: Analyzing Market Dynamics and Speculative Trends in November 2024

Crypto market makers play a crucial role in providing liquidity by consistently placing buy and sell orders. Learn more about how they work here.

The cryptocurrency market is notorious for its high volatility and sometimes low liquidity, making it a challenging environment for traders and investors. Executing trades can be difficult, often resulting in significant price 

Market making is a strategic approach that provides the necessary liquidity to stabilize markets, ensuring smoother trades and reducing volatility. By creating buy and sell orders around the current market price, market makers help maintain a healthy trading ecosystem. This article examines the fundamentals of market making, its benefits for traders and exchanges and the way it enhances the overall efficiency of the cryptocurrency market.

A crypto market maker is an entity or individual who primarily provides liquidity in cryptocurrency markets by continuously placing buy and sell orders for digital assets. This activity ensures efficient trading and helps maintain stable prices.

Crypto market makers play a key role in keeping markets liquid by continuously placing buy and sell orders on exchanges. Here's a closer look at how they operate.

Key Characteristics of a Crypto Market Maker

Crypto market makers provide liquidity and stabilize prices in the cryptocurrency market. The following are the key traits that enable them to operate effectively.

Market makers continually place buy and sell orders, ensuring the availability of transactions for traders. This constant availability reduces wait times for trades and minimizes the price impact of large orders, making the market more efficient and accessible for everyone.

One of the fundamental roles of market makers is that of managing the bid-ask spread. By consistently quoting competitive prices, they narrow this spread, thereby enhancing trading efficiency and reducing costs for other market participants. This spread is also their primary source of profit.

Market makers leverage advanced algorithms and HFT strategies to analyze market conditions and optimize their order placements. This technology allows them to react swiftly to price changes and maintain a balanced inventory of assets, which helps to manage risk and maximize profitability.

Due to the inherent volatility of cryptocurrency markets, effective risk management is vital for market makers. They employ various techniques, such as hedging and real-time market analysis, to minimize exposure to sudden price swings. This ensures their operations remain stable even in the face of market fluctuations.

By providing continuous liquidity and facilitating smooth trading operations, market makers enhance overall market efficiency. Their presence attracts more traders, which increases transaction volumes, boosts exchange activity and contributes to a healthier trading environment.

Given the quickly evolving nature of the cryptocurrency landscape, market makers must be adaptable, continually refining their strategies in response to new technologies, regulatory changes and shifts in market dynamics. This ensures they remain competitive and relevant.

Crypto market makers play a critical role in the cryptocurrency ecosystem by providing liquidity and stabilizing prices. Despite the integral role they play, however, their operations come with both advantages and disadvantages. 

Additional Importance of a Crypto Market Maker

Crypto market makers play a vital role in maintaining the efficiency and stability of the cryptocurrency market. Their presence on crypto exchanges ensures trading environments operate smoothly. 

Newer and smaller cryptocurrencies often struggle with liquidity. Market makers provide a market for these assets, promoting their growth and creating a more diverse and dynamic crypto ecosystem.

Through continual quoting of prices, market makers aid in fair price discovery, ensuring that cryptocurrency prices reflect actual market demand rather than extreme fluctuations. This promotes a more trustworthy and transparent trading environment that allows traders to make data-backed decisions. 

Crypto market makers are essential players in the cryptocurrency ecosystem, providing liquidity, stabilizing prices and ensuring smooth trade execution. Their use of advanced algorithms and real-time order placements encourages a more efficient, accessible and fair market. However, risks such as market manipulation, potential capital loss and lack of regulation can be problematic. Overall, the role of market makers in supporting emerging assets and maintaining market stability makes them indispensable for a healthy and growing crypto environment.

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Crypto Market Maker: Boosting Trades With Strategic Liquidity

Blockchain

web3

ERC-404 token standard is all hyped up despite that is it unofficial and yet to be vetted through the EIP. Find out now!

Imagine owning a piece of a rare digital artwork, like a fraction of a 

 with the ease of buying cryptocurrencies. This futuristic vision is what ERC-404, a novel yet controversial token standard, aims to achieve. Pandora — the first project adopting ERC-404 that allows multiple wallets to directly own a single NFT at the same time, allowing the assets to be tokenized and used to take out loans or stake holdings. With over 12,000% growth in token price within the first week of the launch of $PANDORA, many developers continue to explore different ways to emulate the success despite the fact that ERC-404 is not an official protocol recognized by the Ethereum Foundation. So, is it all hype — or does it hold the key to unlocking a new era of NFT accessibility and liquidity?

This article delves into the intriguing world of ERC-404. We'll explore its innovative concept of "semi-fungible" tokens, which blend the unique nature of NFTs with the traceability of fungible tokens like Bitcoin. 

ERC-404 tokens are semi-fungible, combining the characteristics of both fungible and non-fungible tokens and enabling fractional ownership and enhanced liquidity. The purpose of ERC-404 is to blend the best features of fungible and non-fungible tokens, providing new avenues for experimentation and for trading NFTs through native fractionalization.

However, the concept is relatively new and is only an experimental standard, yet to be formally proposed for inclusion in 

 (EIPs). Still, it blends elements from ERC-20 and ERC-721 to enable new capabilities for NFTs.

How Did ERC-404 (The Genesis) Come Around?

Designed to address liquidity issues prevalent among NFTs, the ERC-404 token standard was conceptualized and created by a team that included a designer and crypto trader who goes by the handle of 

. The inspiration for ERC-404 was rooted in blending traits of ERC-20 tokens and NFTs to produce a novel, semi-fungible token standard. Its name, ERC-404, was selected to symbolize the standard’s experimental essence and to anticipate its initial perplexing impact on existing protocols and 

What makes this protocol so intriguing is its ability to facilitate the purchase and sale of both whole and 

 NFTs, thereby introducing a new paradigm to NFT valuation and trade. During its development phase, ERC-404’s creators identified key challenges, such as the potential rise in transaction fees due to frequent minting and 

 processes, and focused on optimizing these aspects of the standard.

 became the pioneer in adopting the ERC-404 standard, deploying it through a unique mechanism of 10,000 “Replicant” NFTs, each one tied to 10,000 Pandora tokens, which allows potential alteration to the NFTs' rarity over time.

How Does ERC-404 Differ From Other Standards?

ERC-404 tokens represent semi-fungible assets within a single token standard, which makes them inherently different from fully fungible (interchangeable) 

. The ERC-404 standard aims to bridge the gap between ERC20 and ERC-721, offering an innovative approach to tokenization. 

Adoption of the ERC404 standard, as demonstrated by the Pandora tokens, has shown strong market interest due to its innovative blend, suggesting a positive impact on the value of such tokens.

However, as compared to other standards such as ERC-1404, which is designed with security measures as a core focus and incorporates input from issuers, securities law firms and exchanges, the ERC-404 token standard currently lacks a formal security-focused EIP.

Is Native Fractionalization a Game Changer?

The ERC-404 token standard introduces native fractionalization, allowing NFTs to be owned fractionally and adding a layer of liquidity to these typically illiquid assets.

Fractional ownership within ERC-404 is built directly into an NFT's smart contract, facilitating the trade of fractions as if they were fungible tokens and creating built-in liquidity and trading engagement. ERC-404's approach to fractionalization promotes dynamic trading and engagement, extending the range of NFT market interactions and possibly leading to a significant shift in industry practices.

Native fragmentation ERC-via lowers investment barriers, increases NFT liquidity and broadens the investor base, making high-value digital assets more accessible and tradeable.

Pandora Tokens: Pioneering the ERC-404 Ecosystem

The Pandora project launched the first token under the ERC-404 standard on February 2, 2024, allocating 7% of the token supply to the team and early contributors.

The total supply of Pandora (PANDORA) tokens is capped at 10,000, reinforcing their scarcity within the market.

Pandora's token mechanics are designed such that holding a specific number of fungible tokens allows for the automatic minting of a new NFT, whereas reducing the number of fungible tokens below a set threshold leads to the NFT being burned.

Distinct from traditional NFT standards, the ERC-404 token standard as used by Pandora enables NFTs to be fractionally owned through the use of minting and burning of tokens.

Pandora implements the ERC-404 standard to include a rarity refresh mechanism for NFTs that activates upon transactions of FTs (fungible tokens). Each FT transfer results in the destruction and reissuance of NFT tokens, effectively refreshing their rarity and impacting their market value. This motivates users to actively transfer FT tokens within the Pandora ecosystem to avoid the destruction of rare NFTs, and to benefit from the rarity refresh of new NFTs.

Trading of FT Tokens on Decentralized Exchanges

Pandora tokens can be traded on decentralized exchanges that support 

, leveraging a mapping relationship that updates NFT ownership based on FT token transactions.

When FT tokens are sold on a DEX, the corresponding NFTs are destroyed, bringing up the issue of which specific NFT to destroy in case there are multiple NFTs linked to the FT tokens. Users have the option to employ tools like 

 to programmably select which NFTs to destroy, providing autonomy in preserving valuable NFTs during FT token trades.

Integration of Pandora tokens into the DeFi space, particularly on DEXs like 

, has resulted in less susceptibility to market manipulation and benefits for liquidity providers due to ERC-404's trading activity.

As mentioned, ERC-404 is still an experimental token standard that hasn’t undergone any official audit, which leaves potential vulnerabilities undiscovered and poses risks to users.

Users should take note that since ERC-404 is considered unofficial due to lack of vetting via the Ethereum Improvement Proposal process, the result is a lack of community scrutiny that could lead to potential vulnerabilities.

The smart contract of “No Handle ERC-404” is unverified, posing a critical risk for market participants and emphasizing the need for caution before trading.

The DeFrogs collection offers 10,000 meticulously crafted, non-fungible token (NFT) artworks, each depicting a unique frog boasting distinct traits and accessories. Built upon Ethereum blockchain, each DeFrog guarantees verifiable ownership and unparalleled individuality. Since its July 2022 launch, the project has garnered significant attention within the burgeoning NFT community.

DeFrogs' recent adoption of the ERC-404 standard has reignited its popularity. This novel approach allows for the simultaneous acquisition of a DEFROGS token and a randomly generated DeFrogs NFT upon purchase. While owning a full DEFROGS token guarantees an NFT, fractional ownership does not automatically trigger NFT minting.

DeFrogs tokens can be traded on decentralized exchanges like Uniswap, with the corresponding NFT automatically bundled for a streamlined transaction. Alternatively, individual DeFrog NFTs can be traded separately on established NFT marketplaces, catering to collectors seeking specific aesthetics.

The investment landscape for ERC-404 tokens presents a mix of opportunities for early adopters, while necessitating comprehensive research due to the novel mechanism underlying these assets. However, the launch of this token possesses considerable potential, with more use cases and refinement of the protocol on the way. 

ERC-404: Why This Unofficial Standard Could Shake up the NFT World

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