Feb 8 AI Newsletter

Let's turn our attention to today's overall Crypto market situation.
As of 5:59 PM on February 8, 2024, according to sosovalue, the total market cap of the crypto market stands at 1.71 trillion US dollars, witnessing an increase of 3.15% compared to the previous day; the total trading volume is 56.06 billion US dollars, marking a rise of 24.6% from the previous day.

According to sosovalue, the price of $BTC is 44,693 USD, an increase of 3.59% from yesterday. The market cap of $BTC is 876.93 billion USD, accounting for 51.3% of the total market cap; $BTC's 24-hour trading volume is 17.13 billion USD, making up 30.6% of the total trading volume.
The price of $ETH is 2,424.4 USD, up 2.23% from yesterday; the market cap of $ETH is 291.37 billion USD, representing 17.1% of the total market cap; $ETH's 24-hour trading volume is 10.53 billion USD, comprising 18.8% of the total trading volume.
The combined market capitalization of $BTC and $ETH accounts for 68.4% of the total cryptocurrency market cap, and their combined trading volumes constitute 49.4% of the total trading volume.

After reviewing the overall crypto market situation, let's shift our focus to the top 5 token gainers of the day:
As of 17:55, the top five gainers are:
Top 1 gainer is Petals. As of 17:55 today, its market cap is 41.25M, with a coin price of 0.0029201, witnessing a 24-hour increase of 63.5%.
The second is BitTorrent. As of 17:55 today, its coin price is 0.0000010500, with a 24-hour increase of 34.6%.
The third is Cellframe. As of 17:55 today, its coin price is 0.56700, showing a 24-hour increase of 30.4%.
In fourth place is dogwifhat. As of 17:55 today, its coin price is 0.22700, with a 24-hour rise of 28.2%.
In fifth place is Dymension. As of 17:55 today, its coin price is 6.5420, increasing by 28.2% over the last 24 hours.


Moving on, let's take a look at the sector performance in crypto market.
Acccording to sosovalue, out of 15 sectors, 13 are up and 2 are down. Notably, Layer1 sector has risen 4.49% relative to the UTC 0 time, led by gains in tara (19.4%), xprt (19.2%), and kas (18.3%).
DePIN sector has increased 4.48% relative to UTC 0, with btt (33.3%), hns (15.5%), and rlc (8.1%) leading the rise.
Layer2 sector has risen 3.86%, with ALT (11.5%), MANTA (11.4%), and boba (9.26%) leading the rise.

Let's go through the Crypto news worth paying attention today according to sosovalue:
The first is:The Ethereum Dencun upgrade is set to be activated on the Holesky test network. BlockBeats reported on February 7th that the Ethereum Dencun upgrade is set to activate on the Holesky testnet in less than 12 hours. This is the final testnet fork before the mainnet launch, which is expected to be confirmed during tomorrow's AllCoreDevs conference call (all indications point to early to mid-March). EIP-4844 is coming soon.

The Ethereum network is set to launch the Dencun upgrade on the Holesky testnet today, as announced by core developer Christine Kim. This marks the last testnet launch before the upgrade goes live on the mainnet, with the mainnet launch date still to be announced. The Dencun upgrade, previously tested on the Sepolia testnet, aims to enhance Ethereum's scalability and reduce transaction costs through the proto-danksharding innovation. This upgrade is expected to significantly improve Ethereum's performance, making it faster and cheaper, and potentially outperforming its competitors.

The Ethereum Holesky testnet has activated the Dencun upgrade. Blockbeats reported on February 7th that this is the final testnet fork before the mainnet.

Ethereum's Dencun upgrade has reached its final testnet phase, named ‘Holesky’, starting the countdown to the introduction of data 'blobs'. This test simulated 'proto-danksharding', a technical feature aimed at reducing the cost of transactions for rollups and making data availability cheaper.

Ethereum's Dencun upgrade, featuring "Proto-Danksharding" introduced in EIP 4844, has successfully run on the Holešky testnet. Holešky replaced Ethereum’s Goerli testnet, widely used for testing validating and staking, in September last year. Testnets are a copy of the blockchain network used by developers to test smart contracts and protocols before deploying on the mainnet. Prior to running on Holešky, the Dencun upgrade also ran on Ethereum’s Goerli testnet and Sepolia testnet. Following the successful fork of each of these different testing environments, Ethereum’s development team is now planning to run the Dencun upgrade on Ethereum mainnet, with a date to be announced possibly within the next 24 hours. The Dencun upgrade will enable Proto-Danksharding to the Ethereum blockchain, introducing a new transaction type involving "blobs," or sharded data, that can live on the beacon node for a short period of time. This will guarantee data availability and will also be much more affordable than current methods. The upgrade aims to manage data throughput and network costs more efficiently, giving Ethereum a competitive advantage over other Layer-1 solutions.

Ethereum's Dencun upgrade has been successfully implemented on the Holesky testnet, marking a significant step towards its mainnet launch scheduled for March. This upgrade, integrating features from both Cancun and Deneb, includes the introduction of proto-danksharding (EIP-4844) to enhance the Ethereum network's efficiency and scalability. Proto-danksharding introduces 'blobs' for temporary storage and retrieval of large volumes of off-chain data, aiming to reduce storage requirements and transaction costs for decentralized applications (DApps) on Ethereum. The successful testnet deployment, following staged launches on the Goerli and Sepolia testnets, raises expectations for a smooth mainnet launch. Additionally, the Ethereum network has seen a price increase of 2.46% following the upgrade, with $ETH priced at $2415.9132.

Ethereum's Dencun upgrade, introducing "Proto-Danksharding," has successfully completed its final stage of testing via the Holesky testnet and is now awaiting a date for its mainnet deployment. The upgrade, expected to significantly reduce transaction costs on Ethereum layer-2s, was forked on Holesky at about 11:35 AM UTC on Feb. 7. Dencun will introduce Proto-Danksharding through Ethereum Improvement Proposal-4844, which features "blobs" for the temporary storage and access of large amounts of off-chain data by Ethereum nodes. The implementation of Dencun on the Ethereum mainnet could lower rollup costs by up to 10 times. A date for the mainnet deployment of Dencun is expected to be decided on Feb. 8 in an AllCoreDevs call, with early to mid-March being the anticipated timeframe for deployment. Dencun combines the Cancun and Deneb upgrades, focusing on network scalability at the execution layer and improving Ethereum’s consensus layer, respectively. It is set to be the most significant upgrade of Ethereum since the Shapella upgrade last April.

Ethereum's Dencun upgrade, featuring Proto-Dank Sharding (EIP-4844), has successfully been deployed on the Holesky testnet, marking the final testnet deployment before the mainnet launch. This upgrade, which follows the Shapella upgrade in March 2023, aims to significantly reduce transaction costs for decentralized applications (DApps) by enabling the temporary storage and retrieval of off-chain data by Ethereum nodes. The upgrade is expected to benefit Layer 2 rollup chains by making data processing more cost-effective and scalable. Despite the anticipation of reduced transaction fees on Layer 2 solutions, Ethereum's total value locked (TVL) has seen a recent increase, rising by about $3 billion between February 5th and 7th, reaching around $35.3 billion. Additionally, Ethereum's price experienced a notable rise of over 3% on February 6th, maintaining a new price region around $2,372.
Next news: Just two months after the merger between Hut 8 and US Bitcoin Corp, the combined Bitcoin miner has named a new CEO, Asher Genoot, replacing Jaime Leverton. This leadership change aligns with Hut 8's aim for a new strategic direction following the merger. The merger, described as transformational, aimed to diversify geographic presence and add new business lines, including AI infrastructure. Genoot, a co-founder of US Bitcoin Corp and its former COO and President, is tasked with defining a new strategy for Hut 8, which holds a significant Bitcoin balance and has a strong mining capacity.
Next news: BAKKT, a digital asset platform, has issued a warning in documents submitted to the US Securities and Exchange Commission, stating that the company may not be able to continue operating. The warning indicates that BAKKT believes its cash and restricted cash may not be sufficient to support its operations for the 12 months following the filing. This announcement was reported by BlockBeats on February 8th. Crypto firm Bakkt, backed by the owner of the NYSE, warned it might not be able to remain in business. The company was introduced in 2018 with the initial goal of helping Starbucks customers buy coffee with Bitcoin. Bakkt, once hailed as Bitcoin's 'savior,' is facing financial difficulties, revealing it may not have enough cash to continue operations over the next 12 months. Launched in 2019 with support from the Intercontinental Exchange (ICE), Bakkt warned in a recent SEC filing that it might not be able to continue as a going concern. The company, which was founded in 2018 amid significant excitement for its potential to open Bitcoin to institutional investors, now faces uncertainty due to the rapidly evolving crypto asset environment. Bakkt is considering raising up to $150 million in registered securities in the public markets to fund its long-term vision. Crypto firm Bakkt, once hailed as the 'Bitcoin saviour', is facing severe financial difficulties, with a possibility of shutting down in the next 12 months if it fails to secure additional capital. In a recent filing with the U.S. Securities and Exchange Commission (SEC), Bakkt revealed its concerns about its financial stability, stating that its current cash reserves may not be sufficient to sustain operations for the next year. The company is exploring options such as debt financing or equity dilution to raise the necessary funds. This announcement has raised concerns among investors, especially given Bakkt's ambitious plans to expand into new markets and grow its revenue base in the volatile cryptocurrency landscape. The company also anticipates operating losses and existing cash burn to continue, which could hinder its ability to maintain sufficient liquidity and effectively operate. Additionally, Bakkt's stock price saw a significant drop of 7.5% in aftermarket hours following the filing. Founded by Intercontinental Exchange (ICE) and initially aimed at facilitating Bitcoin payments for Starbucks customers, Bakkt has since pivoted its focus towards providing business-to-business technology services. Bakkt, a publicly-traded company backed by the Intercontinental Exchange (ICE), which also owns the New York Stock Exchange, has announced it may not have enough cash reserves to stay in business for the next 12 months. Founded in 2018 to allow corporations like Starbucks to accept crypto payments, Bakkt quickly expanded its services, including the introduction of a digital wallet in 2021. However, in February 2023, Bakkt announced the discontinuation of its wallet app to focus on business-to-business solutions. Despite this pivot, a recent amendment to its quarterly report to the SEC indicates the company is struggling financially, warning it may not be able to operate for the next 12 months. Bakkt has submitted an S-3 form to potentially sell up to $150 million in equity to stay afloat, but it's unclear if this will be approved or if the deletion of a related post on X was due to this information being sensitive. Bakkt, the digital asset firm once backed by major partners like Starbucks and Mastercard, has informed regulators that it is running out of money due to the rapidly evolving environment in the crypto industry. In an SEC filing, Bakkt disclosed that it may not have enough cash to continue operations for the next 12 months and cited uncertainty associated with its expansion and revenue growth.
Next news: Prometheum Capital LLC, a subsidiary of the digital asset firm Prometheum, Inc., is set to offer crypto custodial services, starting with Ether as its initial offering. The services, aimed at institutional clients such as asset management firms, hedge funds, banks, and registered investment advisors, are scheduled to launch in the first financial quarter of the year. The firm plans to extend these services to retail clients in 2024. Prometheum, Inc. Co-CEO Aaron Kaplan highlighted the alignment of these services with federal security laws' regulatory and compliance mandates. The offering follows the Financial Industry Regulatory Authority's approval for Prometheum to provide crypto clearing and settlement services, a license granted by the SEC in May 2023. Amidst regulatory debates over Ether's classification, Prometheum's move could prompt a decision from the SEC. The firm's progress occurs as the SEC intensifies its scrutiny over crypto exchanges, urging registration. Despite criticism from some quarters, Prometheum emphasizes the importance of working within regulatory frameworks.
Next news: Farcaster's Dan Romero explains how 'Frames' did what X (Twitter) doesn't. The decentralized social network Farcaster is enjoying a breakout after last week's introduction of "Frames"
a new feature that could attract attention from developers and, eventually, mainstream users. CoinDesk's Jenn Sanasie sat down with co-founder Dan Romero in an exclusive interview.
Next news: The U.S. Treasury Department has released its 2024 National Risk Assessments on money laundering, terrorist financing, and proliferation financing, highlighting the increasing use of virtual assets by criminals, scammers, and illicit actors for activities such as fraud, drug trafficking, human smuggling, and corruption. The reports detail the challenges in regulating virtual asset service providers (VASPs) and decentralized finance (DeFi) platforms, which often fail to comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations. The Treasury plans to release a strategic plan addressing these issues, emphasizing the growing concern over the use of virtual assets in illegal activities and the need for stricter compliance and regulation.
Next news: The in-game currency Berry in Pixels surged over 57% due to Binance's new coin mining news. Additionally, the blockchain game PIXELS announced the gradual phase-out of the BERRY currency, allowing players to exchange BERRY for the main coin PIXEL at a certain ratio.
Next news: Chainlink (LINK) has experienced a surge in price and market value due to aggressive accumulation by whales and institutions. Multiple large transactions involving the withdrawal of LINK tokens from Binance have been observed, indicating a focused strategy to accumulate the cryptocurrency. The timing of these withdrawals coincided with significant price increases for LINK, further fueling speculation about the influence of these entities on the market. The crypto community is closely monitoring the situation to assess the impact on Chainlink's trajectory.
Next news: Bitcoin tops $44K, with whale accumulation suggesting conviction in more price gains. $BTC broke above $44,000 for the first time since Jan. 12, the day after the spot ETF debuts.
Next news: Coinbase's latest "State of Crypto Report" reveals that blockchain technology could have saved American consumers at least $74 billion in credit card transaction fees in 2022. The report, which utilized data from the SEC, U.S. Census Bureau, and Statista, highlights the potential for blockchain to make financial transactions cheaper, faster, and more accessible. It also notes that merchants could significantly reduce their costs, with credit card processing fees being their second largest expense after labor. Additionally, Coinbase is expanding its reach globally, while continuing to lobby for clearer digital asset regulations in the U.S. The company also plays a key role in the custody of newly launched spot Bitcoin ETFs, which have seen over $30 billion in trading volume.

Okay that's all for today. Thank you for tuning in, and we hope you found it helpful. Visit sosovalue.xyz, our one-stop financial research platform for crypto investors, to stay abreast of the latest market trends and key information. Until next time, goodbye.