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Crypto custodial assets skyrocket by 250% in 2023, Bitget data shows

Crypto custodial assets skyrocket by 250% in 2023, Bitget data shows

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A recent study by crypto exchange Bitget uncovered immense growth in crypto custodial assets, rising 250% over 2023 to reach $448 billion under management. Custodial accounts provide secure digital asset storage, seeing surging demand recently as new on-ramps like Bitcoin ETFs attract inflows.

In the markets, Bitcoin bounced back above the $44,000 level on Wednesday lifted by strengthening tailwinds. Analyzing on-chain data, one report highlighted intensifying accumulation from whales as a key driver reasserting bullish momentum. The number of wallets holding over 1000 BTC recently hit multi-month highs, signaling conviction in further gains.

A new experimental token standard called ERC-404 is causing a stir in crypto twitter. The first token launched using this standard, PANDORA, has skyrocketed from $250 to over $30,000 in under a week. ERC-404 combines aspects of the popular ERC-20 and ERC-721 standards to allow for fractionalized NFT ownership and trading.

Today’s Newsletter

  • Crypto custodial assets skyrocketed by 250% in 2023, Bitget data shows
  • Bitcoin tops $44K, with whale accumulation suggesting conviction in more price gains
  • What is ERC-404?

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Markets

Data powered by CoinGecko.

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Top Stories

MARKETS

Crypto custodial assets skyrocketed by 250% in 2023, Bitget data shows

Custodial accounts give owners secure storage for digital assets like Bitcoin. More investors are using custody solutions as crypto goes mainstream, especially after new products like Bitcoin ETFs launched last month.

The number of new individual custody accounts has also almost doubled since November last year. Most custody accounts have held crypto for less than 3 months. The growth shows crypto is attracting short-term traders along with long-term investors. Even major banks started offering custody services last year to meet demand. All this growth comes despite crypto’s ups and downs, signaling its strength. [cryptobriefing]

BITCOIN

Bitcoin tops $44K, with whale accumulation suggesting conviction in more price gains

Market data showed large “whale” traders ramping up buys during the rise. The number of wallets holding over 1,000 tokens has also peaked at 73, up by 3.6% over the past two weeks. More whales getting on board signal their confidence, and prices are expected to keep going higher.

Stock markets touching new record highs also boosted crypto interest. When stocks rise, people take on more risks like crypto. The S&P 500 recently closed at a record high, almost reaching 5,000. The Dow Jones Industrial Average is making another approach to its all-time high, and the Nasdaq Composite is also closing in on its record.

Bitcoin gained the most out of the top coins, going up 2.5% on Wednesday. Ethereum did second-best: taking prices above $2,400 for the first time in two weeks, likely boosted by the growing hype for a potential ETF approval. [coindesk]

ETHEREUM

What is ERC-404?

Pandora consists of 10,000 tokens tied to algorithmically generated NFT “boxes” with varying rarity levels. Owning PANDORA tokens entitles holders to the paired NFTs. Trading the tokens fractionally burns old NFTs and mints new ones, providing constant liquidity. This fusion of fungibility and non-fungibility through partial binding solves issues like illiquidity that have plagued NFTs.

While promising, ERC-404 remains an unfinished experiment lacking formal audits. The “ERC” label implies peer-vetted standardization, which 404 lacks so far. Still, projects like Pandora showcase innovative possibilities for semi-fungible digital assets. Further refinement and security testing of the standard could lead to new NFT use cases. [cryptobriefing]

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Other News

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Next Week’s Token Unlocks

  • APT will unlock $226M, a 7.3% increase, with a market cap of $3B.
  • FLOW has an upcoming unlock of $3M, which is a 0.27% increase, with a market cap of $1.2B.
  • SAND follows with an unlock of $95M, constituting a 9.1% increase, against a market cap of $1B.
  • BLUR’s unlock will be $1.4M, adding 0.17% to the supply, with a market cap of $834M.
  • CYBER has an unlock of $18M, marking a nearly 16% increase, with a market cap of $113M.

Data powered by Token.unlocks.

Diego & Vince

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