9.6 AI Daily Report on Crypto Assets Market Dynamics: Institutional Layout and Industry Innovation Advance Together

1. Headlines

1. The Ethereum treasury company Fundamental Global has completed its renaming and expanded the number of external circulating shares.

Fundamental Global Inc. announced that the amended and restated certificate of incorporation has become effective, and the company name has officially changed to "FG Nexus Inc." According to the amendments, the number of publicly traded common shares of the company will increase from 1.3 million shares to 35.4 million shares to support its continued accumulation of ETH.

The company, as a Nasdaq-listed Ethereum treasury company, aims to further expand its influence within the Ethereum ecosystem. By issuing additional shares, the company can raise more funds to purchase and hold Ether, thereby increasing its voice and decision-making power within the Ethereum network.

Industry insiders believe that this move reflects institutional investors' optimism about Ethereum's long-term prospects. As the second-largest cryptocurrency, Ethereum plays an important role in decentralized finance, non-fungible tokens, and other areas. FG Nexus Inc.'s actions may attract more institutional funds into the Ethereum ecosystem, promoting its further development.

2. WLFI has implemented blacklist treatment on 272 wallet addresses, causing controversy.

WLFI stated that in the past few days, a total of 272 wallet addresses have been blacklisted, which accounts for a very small proportion of total holders. The purpose is to prevent asset theft and assist users in regaining control. Among them, 215 addresses are related to phishing attacks, 50 addresses were reported by users who requested freezing after being stolen, 5 were temporarily reviewed due to high-risk exposure, and 1 is under internal investigation for suspected misappropriation of others' assets.

WLFI stated that it will not ban normal trading activities and will take immediate action when it receives alerts about malicious or high-risk activities that may harm community members. However, this move has caused dissatisfaction and doubts among some community members. RMRK founder Bruno Skvorc expressed that his address was mistakenly marked as high risk by WLFI and was locked.

The cryptocurrency community has long debated whether project teams should have control over user assets. Supporters argue that this helps protect user rights and prevents funds from being stolen; opponents worry that it may lead to project teams abusing their power and infringing on user ownership. WLFI's actions have reignited this debate, and its subsequent handling may affect its reputation within the community.

3. The Solana ecosystem conference Breakpoint 2024 has received high praise, showcasing the community's cohesion.

The Breakpoint 2024 conference has received unanimous praise from attendees for its innovative format and rich content, reflecting the strong cohesion of the Solana community. The conference featured compact 5-minute sharing sessions and debates, showcasing novel designs that are distinctly different from traditional conference formats.

Participants highly praised the interactive experience of the conference. From left to right, and from right to left, attendees continuously shuttled between the two venues to ensure they did not miss any important segments. During the conference, almost every session was fully packed.

In addition to the innovative format of the conference, many project teams in the Solana ecosystem launched new products and significant advancements at the event, such as Pyth, Wormhole, and Birdeye, fully demonstrating the vitality of the Solana ecosystem. Industry insiders believe that the successful hosting of Breakpoint 2024 strongly highlights the cohesiveness of the Solana community, as well as its pragmatic attitude towards pursuing user growth and ecological breakthroughs.

4. The cryptocurrency exchange Coinbase has added two new tokens to its listing roadmap.

According to official news, Coinbase's listing roadmap has added Keeta(KTA) and Noice(NOICE). As a result, Noice surged 155% in a short time, currently priced at $0.0003, with a market capitalization reported at $17.25 million.

As one of the largest cryptocurrency exchanges in the world, Coinbase's changes to its listing roadmap often have a certain impact on token prices. The addition of two new tokens reflects Coinbase's supportive attitude towards ecological diversification.

Analysts point out that the support of exchanges is significant for token projects. Once listed on mainstream exchanges, the liquidity and visibility of the tokens will significantly increase, thus attracting more investors' attention. In the future, Coinbase may continue to expand its variety of tokens to meet the needs of different investors.

5. The BRICS report mentions XRP, aiding cross-border trade.

The XRP ledger of the BRICS countries has actually become the key technology for the cross-border trade solution mentioned in the official BRICS documents.

The application of blockchain technology in fields such as cross-border payments and trade financing is receiving increasing attention. As a leading distributed ledger technology, XRP is seen by BRICS countries as an important tool to promote cross-border trade due to its efficiency and low cost.

The mention of XRP in the official documents of the BRICS countries marks a broader recognition of XRP. In the future, XRP may play an important role in cross-border trade in more countries and regions, aiding the process of global economic integration. At the same time, this will further enhance the application scenarios and value of the XRP token.

2. Industry News

1. The expectation of the Federal Reserve's interest rate cuts has triggered significant fluctuations in the cryptocurrency market.

On September 5, the U.S. non-farm payrolls for August increased by only 22,000, far below the expected 75,000, and the unemployment rate rose from 4.2% to 4.3%. This weak data intensified market expectations that the Federal Reserve will make significant interest rate cuts in September, triggering violent fluctuations in the cryptocurrency market. Major coins like Bitcoin and Ethereum saw a sharp decline after the non-farm data was released, but quickly rebounded thereafter.

Analysts point out that the expectation of interest rate cuts is beneficial for the cryptocurrency market in the short term, as lower rates may stimulate demand for risk assets. However, if the Fed's future rate cuts are too aggressive, it could trigger rising inflation and economic recession, which would have a negative impact on the crypto market. Investors need to closely monitor the Fed's policy direction.

The trading data shows that after the non-farm data was released, the cryptocurrency market experienced a large number of leveraged contracts being liquidated, with trading volume surging. Analysts warn that in a high volatility environment, excessive use of leverage can pose significant risks.

2. Ethereum and Bitcoin ETFs faced significant capital outflows.

On September 5, Ethereum and Bitcoin experienced fund outflows of $447 million and $160 million respectively in the spot ETF, leading to a short-term decline in the prices of the two major cryptocurrencies. Analysts indicate that this reflects a cautious sentiment among investors regarding the current market and highlights the significant impact of ETFs on the crypto market.

Nevertheless, in the long term, institutional investors' interest in cryptocurrencies remains strong. Data shows that Bitcoin spot ETFs had a net inflow of $250 million this week, reflecting that institutional investors are taking advantage of the price drop to increase their holdings of leading cryptocurrencies.

Industry insiders point out that the launch of ETFs helps in the mature development of the cryptocurrency market and provides institutional investors with more participation channels. However, at the same time, the flow of funds into ETFs may exacerbate short-term fluctuations in cryptocurrency prices. Investors need to remain patient and focus on long-term trends.

3. The dominance of altcoins is forming a bottom structure, analysts are optimistic about a rebound.

Despite the overall sluggishness of the cryptocurrency market, there has been a positive change in the dominance of altcoins recently. Well-known analyst Michael van de Poppe observed bullish divergence signals in the dominance of altcoins relative to Bitcoin (TOTAL2/BTC), believing that this indicator has formed a bottom structure near historical cycle lows.

He pointed out that technical indicators such as the RSI rebound, volume accumulation, and trend line breakthroughs all suggest that the dominance of altcoins may rise to the range of 0.20-0.25 in the medium term. This means that altcoins may perform better relative to Bitcoin and other large-cap cryptocurrencies in the future.

Analysts believe that altcoins often perform actively at the beginning of a bull market, so their stabilization in dominance may signal the arrival of a new bull market. However, there are also views that the high-risk, high-reward characteristics of altcoins may be favored by investors during a bear market.

Regardless, the changes in the dominance of altcoins are worth investors' close attention. Amid increasing volatility, carefully selecting altcoin projects with solid fundamentals may bring good returns to the investment portfolio.

3. Project News

1. Solayer: A breakthrough in the Solana ecosystem

Solayer is a decentralized finance ( DeFi ) protocol based on Solana, designed to optimize the staking process through re-staking and liquidity re-staking. As an infrastructure project within the Solana ecosystem, Solayer offers users a unique mechanism that enhances security and expands the potential of DeFi.

The main features of Solayer include a unique re-staking mechanism and liquidity provided through the sSOL token. This innovative design allows users to maintain liquidity without sacrificing staking rewards. Through Solayer, users can re-stake their staked SOL tokens into other DeFi protocols to earn additional returns. At the same time, the sSOL token allows users to unstake at any time when needed, enhancing the liquidity of funds.

Solayer has built a bridge between security, liquidity, and DeFi utility, providing tools to maximize asset value and rewards within the Solana ecosystem. This innovation is expected to drive further development of the Solana ecosystem, attracting more users and capital into the space.

Industry insiders have welcomed Solayer, believing that the project brings new vitality to the Solana ecosystem. Some analysts think that Solayer may become a key infrastructure within the Solana ecosystem, laying the groundwork for the development of other DeFi protocols and applications. At the same time, there are concerns that the project may increase the complexity and risks of the system.

Overall, Solayer represents an important innovation within the Solana ecosystem. It provides users with greater flexibility and returns, while also injecting new momentum into the development of the entire ecosystem. As more users and capital enter the field, Solayer's impact may further expand.

2. Ethena Foundation launches a new $310 million buyback plan

Ethena is an algorithmic stablecoin issued and managed by the Ethena Foundation. Recently, the Ethena Foundation announced the launch of a new $310 million buyback plan aimed at supporting the price of ENA tokens and enhancing its position in the cryptocurrency market.

As an algorithmic stablecoin, Ethena aims to maintain its 1:1 peg to the US dollar. However, due to the volatility of the cryptocurrency market, the price of the ENA token sometimes deviates from its peg target. To address this situation, the Ethena Foundation has implemented various measures, including token buybacks.

The $310 million buyback plan is the latest initiative taken by the Ethena Foundation to stabilize the price of the ENA token. According to the plan, the foundation will purchase ENA tokens on the open market, thereby reducing the circulating supply and supporting the token price. This initiative aims to enhance market confidence in Ethena and ensure its status as a stablecoin.

The decision by the Ethena Foundation has garnered widespread attention in the market. Some analysts believe that this move will help enhance Ethena's competitiveness in the cryptocurrency market and strengthen its position as a reliable stablecoin. However, there are also concerns that the buyback plan could consume a significant amount of funds and negatively impact the foundation's financial status.

Overall, Ethena Foundation's $310 million buyback plan reflects its determination to maintain the stability of the ENA token. This move may have a certain impact on the cryptocurrency market, especially in the stablecoin sector. Over time, the market will closely monitor the implementation of this plan and its effects on Ethena.

3. Sui Network: A New Star in the Move Ecosystem

Sui Network is an emerging blockchain project built on the Move language, aimed at providing high-performance and scalable infrastructure for web applications. As a rising star in the Move ecosystem, Sui Network has garnered widespread attention and is viewed as a potential leader in the field.

Move is an emerging programming language specifically designed for blockchain and web applications. Compared to other languages, Move offers higher security and verifiability, making it very suitable for building decentralized applications. The Sui Network leverages the advantages of the Move language, aiming to provide developers with an efficient and secure platform.

One of the main innovations of the Sui Network is its unique parallel execution model. This model allows multiple transactions to be executed simultaneously, significantly increasing throughput and scalability. Additionally, the Sui Network adopts a novel data model that effectively manages and shares state, thereby simplifying the application development process.

Since its launch, the Sui Network has attracted significant attention from developers and investors. Some analysts believe that the project has the potential to become a leader in the Move ecosystem, providing strong infrastructure support for the development of web applications. However, there are also concerns that the Move ecosystem may face competitive pressure from other mature ecosystems.

Overall, Sui Network represents an important innovation in the Move ecosystem. It offers new possibilities for the development of web applications and is expected to drive the growth of the entire industry. Over time, the influence of Sui Network may further expand, becoming an indispensable part of the Move ecosystem.

4. Aptos: An emerging blockchain created by former Meta employees.

Aptos is an emerging blockchain project created by former Meta( Facebook) employees, aimed at providing high-performance and scalable infrastructure to support the development of web applications. As an emerging project, Aptos has already attracted widespread attention and is seen as a potential new star in the blockchain industry.

The founding team of Aptos consists of a group of experienced engineers who previously worked at Meta and participated in some of the company's key projects. With expertise in large distributed systems, the Aptos team is dedicated to building an efficient and secure blockchain platform.

One of the core innovations of Aptos is its unique consensus mechanism, called "AptosBFT". This mechanism aims to improve throughput and scalability while maintaining a high level of security and decentralization. In addition, Aptos also employs a novel data model that effectively manages and shares state, thereby simplifying the application development process.

Since its launch, Aptos has attracted significant attention from developers and investors. Some analysts believe that the project has the potential to become a leader in the blockchain industry, providing robust infrastructure support for the development of Web applications. However, there are also concerns that Aptos may face competitive pressure from other mature blockchain projects.

Overall, Aptos represents an important innovation in the blockchain industry. It offers new possibilities for the development of Web applications and is expected to drive the growth of the entire industry. Over time, Aptos's influence may further expand, becoming an indispensable part of the blockchain ecosystem.

5. Hyperliquid: A New Milestone for Decentralized Asset Token Layers

Hyperliquid is a decentralized asset token layer designed to provide high liquidity and tradability for various assets. Recently, the total locked value of the decentralized asset token layer Unit built on Hyperliquid surpassed $1 billion, marking an important milestone for the project.

Unit is a decentralized asset token layer built on Hyperliquid, allowing users to convert various assets ( such as cryptocurrencies, non-fungible tokens, etc. ) into tradable token forms. With Unit, users can easily trade and transfer these assets without dealing with the complexities of the underlying assets.

The innovation of Hyperliquid lies in its unique architecture, which effectively manages and shares asset states, thereby enhancing liquidity and tradability. The project employs a novel data model that makes the asset tokenization process more efficient and secure.

The milestone of Unit TVL breaking 1 billion USD reflects the market's recognition of Hyperliquid and its asset tokenization solution. Some analysts believe that the project has the potential to become a leader in the asset tokenization field, providing high liquidity and tradability for various assets. However, there are also concerns that Hyperliquid may face challenges from other competing solutions.

Overall, Hyperliquid represents an important innovation in the field of asset tokenization. It provides new options for liquidity and tradability for various assets, and is expected to drive the development of the entire industry. Over time, Hyperliquid's influence may further expand, becoming an indispensable part of the asset tokenization landscape.

( 6. Nomina: A New Milestone for Ethereum Interoperability Protocol

Nomina), formerly known as Omni Network###, is an Ethereum interoperability protocol aimed at facilitating the exchange of assets and data between different blockchains. Recently, Nomina has launched a new name, logo, and product narrative, marking a milestone for the project.

As an interoperability protocol, Nomina allows for the secure and efficient transfer of assets and data between different blockchains. It utilizes an innovative architecture that effectively manages and shares state, thereby achieving cross-chain interoperability.

One of Nomina's main innovations is its unique token model. The original OMNI token will be replaced by the new NOM token, with an exchange ratio of 1:75. The NOM token will become the main token of the Nomina ecosystem.

4. Economic Dynamics

( 1. The weak employment data in the U.S. for August has intensified concerns about an economic slowdown.

The data released by the U.S. Department of Labor on Friday showed that only 22,000 new jobs were added in August, far below economists' expectations of 75,000. This is the slowest month of job growth since December 2020. The unemployment rate rose slightly from 3.5% to 3.7%. The average hourly wage increased by 4.2% year-on-year, below expectations.

Economists say that weak employment data reflects a slowing U.S. economy, persistent inflationary pressures, and a cooling labor market. This exacerbates concerns about a recession and increases the likelihood of the Federal Reserve raising interest rates significantly again in September.

Goldman Sachs Chief Economist Jan Hatzius stated: "The labor market is losing momentum, which is consistent with signs of a slowdown in economic activity. We expect the Federal Reserve to raise interest rates by 75 basis points in September and to increase the federal funds rate to a range of 4% to 4.25% by the end of the year."

The U.S. economic growth slowed to 0.6% in the second quarter of this year, down from 1.6% in the first quarter. The inflation rate, which reached a 40-year high of 9.1% in June, slightly fell to 8.5% in July.

) 2. The European energy crisis continues to escalate, increasing the risk of economic recession.

The energy crisis in Europe continues to worsen, with Russia imposing restrictions on natural gas supplies to the European Union, leading to a surge in energy prices. This casts a shadow over the economic outlook for Europe, with the risk of economic recession increasing day by day.

According to data from the European Union Statistics Office, the inflation rate in the Eurozone rose to 9.8% in July, reaching an all-time high. Energy prices increased by nearly 40% year-on-year, pushing up the overall inflation level. Germany's inflation rate soared to 8.8% in August, the highest level since the oil crisis of 1973.

Goldman Sachs analysts pointed out that the surge in energy prices will significantly suppress economic growth in Europe. They expect the Eurozone economy to fall into recession in the fourth quarter of this year, with the economy shrinking by 0.6% in 2023.

European Central Bank President Lagarde stated that the central bank will continue to raise interest rates to combat inflation, while also acknowledging that "the risks of high inflation and economic slowdown are intensifying." She urged governments to implement fiscal measures to mitigate the impact of rising energy prices on households and businesses.

3. China's exports unexpectedly declined in August, with weak domestic and external demand.

Data released by the General Administration of Customs of China shows that exports in August fell by 7.1% year-on-year, exceeding expectations. This marks the first annual decline since the beginning of 2020, reflecting weak domestic and external demand.

The main reasons for the weak export include high global inflation, economic slowdown in major economies, and the impact of domestic pandemic control measures. In August, imports grew by 0.3% year-on-year, far below the expected increase of 1.1%. The trade surplus was 792 billion yuan.

According to data from the National Bureau of Statistics of China, the manufacturing Purchasing Managers' Index (PMI) for August is 49.4, below the expansion range of 50. This indicates that manufacturing activity is contracting.

Liu Xuezhi, a senior researcher at the Financial Research Center of Bank of Communications, stated: "Weak export has intensified the downward pressure on China's economy. It is expected that economic growth will further slow down in the fourth quarter, and the annual economic growth rate may only be around 3%."

The People's Bank of China unexpectedly lowered the reserve requirement ratio for comprehensive reduction this week, releasing about 1 trillion yuan in long-term funds to support the real economy. However, analysts believe that this may not be enough, and further easing of monetary and fiscal policies may be needed in the future.

5. Regulation & Policy

1. The U.S. Securities and Exchange Commission has delayed its decision on Grayscale's DOT spot ETF.

The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for regulating the securities markets. Recently, the SEC postponed its decision on Grayscale Asset Management's application for a DOT spot ETF (exchange-traded fund).

Grayscale Asset Management has applied to launch an ETF product that tracks the spot price of Polkadot (DOT). The SEC was originally set to make a decision on this application by September 6, but has now postponed the decision date to October 6. This decision reflects the SEC's cautious approach in reviewing cryptocurrency spot ETF applications.

Cryptocurrency spot ETFs have always been a hot topic of interest in the industry. If approved, they will provide investors with a more convenient channel for cryptocurrency investment. However, the SEC remains cautious, primarily concerned about the risks of fraud and manipulation in the cryptocurrency market. The delay in the decision means the SEC needs more time to assess the risks and compliance of the product.

Industry insiders understand this. Crypto analyst Lyle Pratt stated: "It is understandable that the SEC has a cautious attitude towards cryptocurrency spot ETFs. They need to ensure that the product design is reasonable and that investors' interests are fully protected." However, he also pointed out that excessive delays could impact the competitiveness of the United States in the cryptocurrency sector.

2. Trump signs executive order adjusting the scope of tariff policy.

On September 6, U.S. President Trump signed an executive order to adjust the scope of import tariffs and implement a trade and security framework agreement with foreign trade partners.

According to the executive order, after reaching a framework agreement or a final agreement with foreign trading partners, the United States may adjust tariffs based on the terms of the agreement, including reducing the reciprocal tariffs on certain goods to zero. However, before the final agreement is signed, the range of tariffs is typically not narrowed or the tariffs related to Section 232 (tariffs on steel and aluminum products) are modified.

Products that can obtain zero equivalent tariffs include those that cannot be produced in the United States or are produced insufficiently to meet domestic demand, specific agricultural products, aircraft and parts, as well as non-patented items for pharmaceutical applications.

This executive order aims to strengthen the United States' negotiating position in global trade and create conditions for reaching more favorable trade agreements with other countries. It also opens zero-tariff channels for certain key commodities, which is beneficial for reducing costs and promoting trade.

Industry insiders believe that this policy is beneficial for alleviating inflationary pressures, but it may also intensify friction with certain trading partners. The American business community has mixed reactions to this policy; some sectors may benefit while others may face fiercer international competition.

3. Arkham: The German government failed to seize $5 billion worth of Bitcoin.

According to Arkham monitoring, the German government failed to seize Bitcoin worth $5 billion. In early 2024, the German police seized 49,858 Bitcoins from the operators of the piracy website Movie2K. However, in July 2024, the government sold these Bitcoins for only $2.89 billion, with an average selling price of $57,900.

Arkham is a company focused on cryptocurrency analysis and monitoring. They discovered that the German government failed to fully capitalize on market conditions when selling seized Bitcoin, resulting in a loss of approximately $2 billion in revenue.

This discovery has raised questions about the government's ability to handle cryptocurrency assets. Arthur Hayes, the founder of the cryptocurrency exchange MEX, stated: "This reflects the government's ignorance in dealing with cryptocurrencies. They should hire professionals instead of hastily selling these assets."

But some analysts defend the government, arguing that the market conditions at the time were not ideal, and the government could not predict future trends. Cryptocurrency analyst Lina Seiche stated: "Choosing the right time to sell is a difficult decision. The government needs to balance multiple interests; simply pursuing the highest price is not advisable."

This has sparked widespread discussion in the industry about the professional capabilities of government agencies in the field of cryptocurrency. Some believe that the government should establish a dedicated cryptocurrency management department and hire experienced professionals.

4. The U.S. SEC and CFTC proposed that traditional financial markets be open for trading "24/7".

Paul Atkins, the chairman of the U.S. Securities and Exchange Commission (SEC), and Caroline Pham, the acting chair of the U.S. Commodity Futures Trading Commission (CFTC), proposed several more proactive measures to support cryptocurrency in a joint statement, including a proposal for a traditional financial market "24/7 all-day market" aimed at aligning the U.S. economy with the pace of the digital asset market.

This policy will enable continuous online trading on the stock exchange. For 154 years since the introduction of continuous trading on Wall Street, such markets have adhered to a strict trading schedule, which has been open only during specific business hours on weekdays since 1985.

However, the two chairmen indicated that the policy may need to be adjusted to keep pace with the continuously active markets such as cryptocurrencies, gold, and foreign exchange. The two chairmen also proposed relaxing the permissions for "innovators" to launch event contracts in prediction markets, and allowing perpetual derivative contracts to trade freely between securities and commodity exchanges. Another proposal would establish an "innovation exemption" for DeFi protocols that provide spot cryptocurrency and perpetual derivative contract trading. The chairmen stated that these proposals align with a report released by the Trump administration in July, which directed agencies to ease many restrictions on cryptocurrency trading in the United States.

This proposal aims to synchronize traditional financial markets with the evolving cryptocurrency market, enhancing the United States' competitiveness in the digital asset space. However, some analysts are concerned that 24-hour trading may exacerbate market volatility and pose new challenges for regulation.

Valerie Menissier-Moreira, the chair of the American Fintech Association, stated: "This is the right direction, but it is necessary to strengthen market regulation at the same time to ensure that investors' interests are protected." She also emphasized that the government and industry need to work closely together to jointly promote the modernization process of the financial market.