The return of crypto bulls? These are the factors that stimulate institutional interest:

Hello! Welcome to Distributed Ledger, our weekly crypto newsletter that arrives in your inbox every Thursday. I’m Frances Yue, a crypto reporter at CNET, and I’ll bring you the latest in the digital asset market.

Find me on Twitter at @FrancesYue_ to send feedback, or tell us what you think we should deal with. You can also reach me via email to share your personal stories with crypto.

Crypto at a glance

BitcoinBTCUSD,
-0.17%
lost 3.9% in the past seven days, trading around $23,297 on Thursday, according to CoinDesk data. Ether ETHUSD,
+1.15%
fell 2.6% over the seven-day period to about $1,865. Dogecoin DOGEUSD Meme Token,
-4.97%
gained 10.9% while another dog themed token, Shiba Inu SHIBUSD,
-7.77,
up 19.7% compared to seven days ago.

cryptographic statistics
The biggest winners

Price %return in 7 days

Chili

$0.22

43.6%

Celsius network

$2.91

25%

shiba inus

$0.00001

15%

LEO token

$5.34

13.4%

EOS

$1.45

13%

Source: CoinGecko as of August 18
The biggest declines Price %return in 7 days

BitDAO

$0.51

-30.7%

the image

$0.12

-18.1%

maker

$920.5

-17.5%

Synthetix Network

$3.49

-16.9%

THOR necklace

$2.49

-14.9%

Source: CoinGecko as of August 18
The return of crypto bulls?

After months of muted crypto market activity, there are signs that institutional and retail holdings are recovering, leaving some investors wondering if the worst is over. According to data from CoinDesk, Bitcoin is up 24% from its June low, but still down 50% so far.

black rock blk,
+0.27%,
The world’s largest asset manager launched a private cash bitcoin trust last week, available to US institutional investors.

“Despite the sharp decline in the digital asset market, we are still seeing significant interest from some institutional clients to access these assets efficiently and cost-effectively using our technology and product capabilities,” the company said in a blog post.

Meanwhile, lending in the crypto space has seen an uptick, GSR crypto trader Luke Farrell said in an interview. As of June, lending was nearly “cut off” as the digital asset industry struggled with contagion as crypto hedge fund Three Arrows and lender Celsius went bankrupt, Farrell said. “Lenders from all walks of life, from DeFi pools to major lenders like Genesis, really didn’t feel like borrowing.”

“Over the past two weeks we have seen a recovery at this rate. They’ve grown naturally due to the cessation of lending, but you’re seeing new funds ready to roll out,” Farrell said. Still, interest rates “are not that high compared to what they could be,” Farrell said.

“To me, that shows a lot of capital on the sidelines that wants to bet in type return strategies or things that can generate a return or income that was a little more market neutral, rather than just buying tokens,” Farrell noted. .

According to Tom Dunleavy, Principal Research Analyst at Messari, with the upcoming “merger” of Ethereum, there is “clear institutional and whale interest and accumulation.” The “merger” is a highly anticipated upgrade that will move Ethereum from proof-of-work to proof-of-stake, a much more energy-efficient consensus mechanism, paving the way for blockchain to become cheaper and more productive. .

According to blockchain data, the number of addresses with more than 100 ether, 1,000 ether and more than 10,000 ether has increased dramatically, Dunleavy noted.

Some traders have borrowed Ether in anticipation of an Ethereum hard fork. In late July, Ethereum miner Chandler Guo suggested splitting or splitting the chain with another that is still based on the proof-of-work consensus mechanism. When this happens, all ether holders will receive an equal number of new tokens on the forked chain.

“Presumably there will be some kind of value in it,” Dunleavy said. “So preserving native ether in the merger, if you assume there will be some fork value, is a strategy that I think a lot of people are pursuing through these lending protocols.”

On the retail side, investors are not as active in Ethereum “Merge” trades. The number of addresses with between 0.1 ETH and 1 ETH remained stable in July and August, Dunleavy noted.

Still, meme pieces have rallied, which some have attributed in part to the return of shopping interests. I wrote more about it here.

Listen to Mike Novogratz at the Best New Ideas in Money Festival September 21-22 in New York City. Galaxy Digital CEO has ideas for navigating the crypto winter.

Genesis is cutting 20% ​​of its workforce

The contagion from the collapse of some major crypto firms is not over. Genesis, one of the largest cryptocurrency lenders, said it has laid off 20% of its workforce. The company’s chief executive, Michael Moro, will also step down, while the company’s chief executive, Derar Islim, will take on the role of interim CEO, according to a statement.

Genesis previously filed a $1.2 billion claim against Three Arrows, which is in liquidation, while Genesis parent company Digital Currency Group has insured the entire claim.

Crypto Companies, Funds

Shares of Coinbase Global Inc.. MONEY,
-2.31%
fell 3.6% to $82.37 on Thursday, and they are down 2.06% in the past five trading sessions. by Michael Saylor Microstrategy Inc.
MSTR,
-0.25%
fell 1% to $321.95 on Thursday, while shares are down 4.6% in the past five days.

my company Blockchain Riot Inc. REVOLT,
-0.84%
stocks fell 1.4% to $8.23 on Thursday and are down 13.5% in the past five days. Shares of Marathon Digital Holdings Inc.
MARA,
+0.91%
rose 0.5% to $15.53, down 9.7% in the past five days. Another miner Ebang International Holdings Inc.. EBON,
-3.50%
saw shares fall 4.5% to $0.53 on Thursday, down 6.4% in the past five days.

Overstock.com Inc.
OSTK,
-3.49%that is
shares fell 4.8% to $30.55. Shares fell 1.6% over the five-session period.

Shares of Block Inc.
sq,
-0.76%,
formerly known as Square, fell 0.9% to $79.66 and was down 7.3% for the week. Tesla Inc.. TSLA,
-0.37%
shares fell 0.1% to $910.65, up 5.9% in the past five days.

PayPal Holdings Inc.
PYPL,
+0.44%
rose 1.2% to $100.57, up 1.5% over the five-session period. Nvidia Corp.
NVDA,
+2.39%
shares added 2.3% to $187.53, a 4.5% gain over the past week.

Advanced Micro Devices Inc.
AMD,
+2.21%
shares rose 2.4% to $100.60 on Thursday, 2.5% higher than five trading days ago.

Among crypto funds, ProShares Bitcoin Strategy ETF
BIT,
+0.56%
rose 0.5% to $14.38 on Thursday, as the Bitcoin Short Strategy ETF
TO BE,
-0.48%
fell 0.4% to $33.50. Valkyrie Bitcoin Strategy ETF
BESIDE,
+0.45%
0.2% added to $8.94, while VanEck Bitcoin Strategy ETF
xbtf,
+0.58%
traded up 0.2% at $22.60.

Bitcoin Trust in Grayscale
GBTC,
+0.77%
advanced 1.8% to $15.23.

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