Weekly Cryptocurrency News. Dec. 29


Here comes Friday, December 29th. As the very last week of the 2023 elapses, we can focus on the industry highlights over the past few days.

GameFi tokens market cap collapsed by 86% over 2023

Over the course of 2023, the combined market cap for 183 gaming tokens hovered between $4b and $7b, which is 86% far below the index’s all-time high, according to the latest Delphi Digital report.

However, they believe the crypto sector’s upside potential remains since traditional gaming giants seem to find Web3 market quite appealing.

The leading blockchain gaming markets include the Philippines, Nigeria, Pakistan, Singapore, Vietnam, South Korea, Hong Kong, China, Vietnam, and the UAE.

76 new blockchain networks focused on GameFi projects were launched during the year. Based on this data, the experts suggested that soon the rivalry for players’ liquidity will turn out to be the hot topic.

They also noted that the infrastructure for developing Web3 games is expanding in leaps and bounds. Optimism’s OP Stack framework is the most favoured by GameFi projects, with StarkNet ranking second. TON-based gaming apps have become a novel trend.

Notably, blockchain gaming generated on average 23 times more on-chain transactions than DeFi protocols during the same period. Experts at Delphi Digital predict that this will capture a lot of non-crypto platforms’ attention.

As of late 2023, 1.2 million daily unique active wallets are currently engaging with gaming protocol, resulting in a daily transaction range of 15 to 25 million.

That being said, as few as just over 5% of blockchain games boast a daily user base exceeding 100 gamers. The figure flatlined around this level throughout the year. According to experts, GameFi apps of the category in question alone can qualify as active.

Donald Trump-linked crypto wallet dumps nearly $2.5M in ETH

The public address, allegedly associated with former US President Donald Trump, sold Ethereum for about $2.4 million.

“3 weeks ago he started sending ETH to Coinbase after months of accumulating Trump NFT royalties. His peak balance was $4 million. Based on the deposits, so far he’s sold 1,075 ETH for $2.4 million,” Arkham Intelligence researchers noted.

According to the on-chain firm, the distribution and promotion of non-fungible tokens on behalf of the politician is handled by NFT INT LLC, which is “not owned, managed or controlled” by Trump or affiliates. 

“NFT INT LLC uses Donald J. Trump’s name, likeness and image under paid license from CIC Digital LLC, which license may be terminated or revoked according to its terms,” the project description also reads.

Trump is listed as CIC Digital LLC’s manager, president, secretary and treasurer. As previously reported, this is the company that owns the wallet that receives fees by virtue of the “NFTs Owner Agreement”.

Coinbase says no to Senator Warren’s crypto regulation undermining accusations

The renowned exchange has refuted allegations of hindering the development of cryptocurrency regulation voiced earlier by Elizabeth Warren, a member of the US Senate Banking Committee.

In her December 18 letter to Coin Center and Blockchain Association, Warren addressed the issue of hiring national security experts at a number of crypto-driven companies. Such an approach, she said, is aimed at cracking down on industry regulation, particularly the bipartisan Digital Assets Act. 

She demanded that the crypto businesses submit information on the number of former military, civilian, government officials and members of Congress working in the industry and their salaries by January 14. 

The head of the Blockchain Association, Kristin Smith, confirmed receipt of the letter in question and commented that Warren should focus her efforts on criminals rather than those working hand in glove with US law enforcement to catch the crooks. 

As a member of the Blockchain Association, Coinbase sent a response letter to Warren. Faryar Shirzad, Chief Policy Officer at Coinbase, described her allegation as incorrect and the accusations as baseless.

The recruitment of former officials and law enforcement officers is part of an initiative to safeguard crypto users in the US, he explained. 

Tether mints 1 billion USDT as reserves

On 24 December, Tether issued an additional $1 billion worth of USDT stablecoins running on the Ethereum. 

The firm’s CEO Paolo Ardoino later explained the purpose of the newly-coined units under WhaleAlerts’ post at X (Twitter). It was an authorized but not issued transaction, he said. 

The new stablecoins are used “to meet future issuance demands and accommodate chain swaps,” Ardoino also specified.

In traditional finance, replenishment is the process of suppliers maintaining reserves in order to meet customer demand for a particular asset. From Tether’s perspective, however, this is the creation of new USDTs held in treasuries. 

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