May 9, 2024

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Canaan Unveils Latest A1566 Bitcoin Mining Machine

Canaan Inc. has launched its latest Bitcoin mining machine, the A1566 from its Avalon A15 series, boasting an energy efficiency ratio of 18.5J/T alongside its 185T hashing power and 3420W power consumption. The company highlighted its intensified focus on product development and collaboration with key partners to deliver high-quality mining solutions, especially crucial post-halving. The Avalon A15 series aims to enhance profitability for users, showcasing Canaan's commitment to innovation in the blockchain sector. Additionally, Canaan raised $50 million in preferred-shares financing in January to boost its production capacity.

Bitcoin Mining Difficulty Plummets 5.7% in Biggest Decline Since Bear Market Lows

The Bitcoin mining difficulty experienced a significant 5.7% drop on Thursday, marking the largest negative adjustment in nearly 18 months. This adjustment occurred at block height 842,688, lowering the difficulty to 83.1 trillion, according to Bitbo data. It is the most substantial negative adjustment since the bear market lows in December 2022. Bitcoin's mining difficulty is a measure of how challenging it is to mine new blocks and adjusts automatically every 2016 blocks or approximately every two weeks. The recent drop follows a 10% decline in network hash rate since April 24, leading to an easier mining environment for miners after consecutive rises surrounding halving activity.

Solana Surpasses Ethereum in MEV Collection by Validators

Solana's validators are experiencing a surge in revenue, particularly from maximal extractible value (MEV), surpassing Ethereum in MEV earnings. MEV refers to the value validators can create by including transactions in blockchain blocks, with Solana validators earning nearly $7 million in MEV last week, a stark increase from previous levels. The growth in MEV is largely attributed to Jito, a protocol on Solana that facilitates transaction bundling and tipping for faster processing. However, concerns about predatory MEV practices and spam transactions on Solana persist, highlighting ongoing challenges despite the revenue surge.

Grayscale Withdraws Ethereum Futures ETF Application Ahead of SEC Decision

Grayscale has withdrawn its application for an Ether futures exchange-traded fund (ETF) just before the deadline for the United States securities regulator to make a decision. The cryptocurrency asset manager submitted the notice of withdrawal for the Grayscale Ethereum Futures Trust with the SEC on May 7. Initially filed in September 2023, the Ether futures ETF application was set for a decision on May 30.

Trading Desk Insights

Bitcoin has bounced back from recent lows this morning and is poised to challenge its prior peak of $65,000. The overall trading volume, encompassing spot and derivatives markets, has declined for the first time in seven months, falling by 44% to $6.58 trillion. This drop is attributed to rising geopolitical tensions and reduced investments into U.S.-listed spot ETFs, which have cast a shadow over the cryptocurrency market.

Turning our focus to U.S. BTC ETFs, activity was relatively subdued yesterday despite net inflows amounting to $11.5 million, predominantly driven by Bitwise. Notably, this marks the first day without inflows from Blackrock and Fidelity, alongside no outflows from Grayscale.

In the realm of meme coins, demand remains robust, hitting a listing record of 138 meme coins in April compared to just 18 in April 2023. Currently, CoinMarketCap lists approximately 2,229 meme coins, collectively valued at over $50 billion. Among these, WIF and PEPE hold the highest ratios of perpetual futures open interest (OI) to market capitalization, as reported by Kaiko.

Arthur Hayes, co-founder and former CEO of BitMEX and now chief investment officer at Maelstrom, commented on the phenomenon, stating, "You might dismiss these as frivolous and devoid of value, but their role in drawing attention and attracting more talent to the sector represents a net positive for the blockchain ecosystem."

On the equities front, stock futures remained stable on Thursday, bolstered by new economic data that fueled hopes for a more lenient policy from the Federal Reserve later this year. However, this optimism was tempered by disappointing earnings reports. Additionally, weekly jobless claims reached their highest level since August, pushing yields down and heightening expectations that the Fed might reduce interest rates later in the year.

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