November 8, 2023 3:50 PM
-
newsletter@mail.coinbase.com
A key BTC metric just hit a new high
Is Wall Street getting ready for a bull run? Major institutional investors have been making moves as BTC hovers near 2023 highs.
Plus, is Wall Street getting ready for a bull run? View in browser 11/8/23 Over the past six weeks, more than $750 million has flowed into institutional crypto funds. [lo lo via Unsplash] What’s up? It’s Coinbase Bytes There’s never a dull mo
November 8, 2023 3:50 PM
-
newsletter@mail.coinbase.com
A key BTC metric just hit a new high
Is Wall Street getting ready for a bull run? Major institutional investors have been making moves as BTC hovers near 2023 highs.
Plus, is Wall Street getting ready for a bull run? View in browser 11/8/23 Over the past six weeks, more than $750 million has flowed into institutional crypto funds. [lo lo via Unsplash] What’s up? It’s Coinbase Bytes There’s never a dull mo
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</style></head><body style="margin:0; padding:0; background-color:#FFFFFF; font-family:Helvetica Neue,Helvetica,Arial,sans-serif; font-size:16px; color:#0A0B0D"><span style="color:transparent; visibility:hidden; display:none; opacity:0; height:0; width:0; font-size:0">Plus, is Wall Street getting ready for a bull run?</span><img src="https://links.coinbase.com/e/eo?_t=3aca56371967418192255878e9689713&_m=24124209259746c3a669b0fc0de80698&_e=MnWcxHcSBcX47U9dmM6j0-RC33KzuV4K0jzlCACXbKtuj2ljixsBfvx6GLZvqbPu-o2pSGPtCGI6wMeKc-yeXKlb5eX3Y8OgWr8-ThuquiJ9f4LPLEeLwux-4yYE7QK-yUAmMuGHXhCmCB4vHn0FqVS7yH8EoHZ3PDsmPNgKSU0%3D" width="1" height="1" style="border:0; width:1px; height:1px; border-width:0px!important; display:none!important; line-height:0!important"><div id="root" style="min-width:320px; background-color:#FFFFFF; width:100%"><div class="block-grid" style="min-width:320px; max-width:570px; word-break:break-word; margin:0px auto"><div style="padding:0px 10px 10px"><div style="text-align:right; margin-bottom:24px"><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(91,97,110); text-decoration:none; line-height:1.5; font-size:12px">View in browser</a></div><div style="margin-bottom:20px"><table style="width:100%"><tbody><tr><td style="text-align:left; vertical-align:middle"><a href="#" title="Coinbase Bytes" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/cbytes-4x.png" height="36" style="display:block; height:36px"></a></td><td style="text-align:right"><p style="font-size:20px; color:rgb(10,11,1); margin:10px 0px 0px">11/8/23</p></td></tr></tbody></table></div><a href="#" target="_blank" rel="noopener noreferrer"><img src="https://images.ctfassets.net/q5ulk4bp65r7/5P6yo9GfeByrLPt7IhkAbr/7a7c2df2223f1d404917109993fff3dc/image1.jpg" width="100%" style="display:block; width:100%"></a><p style="margin:16px 0px 0px; line-height:1.5; word-break:break-word; font-size:12px; color:rgb(91,97,110)">Over the past six weeks, more than $750 million has flowed into institutional crypto funds. [<a href="#" target="_blank" rel="noopener noreferrer">lo lo</a> via Unsplash]</p><p style="margin:48px 0px 16px; font-size:32px; line-height:1.26; word-break:break-word"><strong>What’s up? It’s Coinbase Bytes </strong></p><p style="margin:0px; line-height:1.6; word-break:break-word">There’s never a dull moment on the blockchain. Here’s what you need to know this week:</p><ul style="margin:10px 0px; padding-left:24px; line-height:1.6"><li style="margin:0px; padding:6px 0px"><strong>Is Wall Street ready for the next bull run? </strong>Major institutional investors have been making moves as BTC hovers near 2023 highs.</li><li style="margin:0px; padding:6px 0px"><strong>A key Bitcoin metric just hit an all-time high. </strong>A closer look at BTC mining and the significance of next year’s “halving.”</li><li style="margin:0px; padding:6px 0px"><strong>This week in numbers. </strong>The price tag for a luxury web3 smartphone, the record amount of wallets with at least $1K of BTC, and more stats to know.</li></ul><p style="margin:0px; padding:0px"></p><div class="desktop_hide" style="display:none; max-height:0; overflow:hidden"><table style="width:100%; table-layout:fixed; margin:0"><tbody><tr><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Bitcoin</strong></p><p style="margin:8px 0px">$35,755.51 </p><p style="margin:0; font-size:12px">+1.32% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Ethereum</strong></p><p style="margin:8px 0px">$1,890.18 </p><p style="margin:0; font-size:12px">+2.47% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>XRP</strong></p><p style="margin:8px 0px">$0.69 </p><p style="margin:0; font-size:12px">+13.01% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Solana</strong></p><p style="margin:8px 0px">$42.98 </p><p style="margin:0; font-size:12px">+1.60% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Cardano</strong></p><p style="margin:8px 0px">$0.36 </p><p style="margin:0; font-size:12px">+16.31% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Dogecoin</strong></p><p style="margin:8px 0px">$0.08 </p><p style="margin:0; font-size:12px">+9.80% </p></div></td></tr></tbody></table></a></td></tr></tbody></table></div><div class="mobile_hide"><table style="width:100%; table-layout:fixed; margin:0"><tbody><tr><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Bitcoin</strong></p><p style="margin:8px 0px">$35,755.51 </p><p style="margin:0; font-size:12px">+1.32% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Ethereum</strong></p><p style="margin:8px 0px">$1,890.18 </p><p style="margin:0; font-size:12px">+2.47% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>XRP</strong></p><p style="margin:8px 0px">$0.69 </p><p style="margin:0; font-size:12px">+13.01% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Solana</strong></p><p style="margin:8px 0px">$42.98 </p><p style="margin:0; font-size:12px">+1.60% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Cardano</strong></p><p style="margin:8px 0px">$0.36 </p><p style="margin:0; font-size:12px">+16.31% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Dogecoin</strong></p><p style="margin:8px 0px">$0.08 </p><p style="margin:0; font-size:12px">+9.80% </p></div></td></tr></tbody></table></a></td></tr></tbody></table></div><p style="margin:20px 0px 0px; line-height:1.5; word-break:break-word; color:rgb(91,97,110); font-size:12px">Price changes are for the past week, ending on Nov 8, 2023 at 10:26 PM UTC</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>See the latest prices</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>WHALE STREET </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>How big-money institutional investors are preparing for the next bull run</strong></p></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">As crypto markets have risen from their slumber this year, institutional investors from Wall Street, Silicon Valley, and beyond are paying attention. Major firms are increasing their investments in crypto, crypto-oriented venture funds are busy raising and deploying capital, and many of the world’s biggest banks are exploring blockchain-native financial products like tokenized treasuries and loans. Is all of this big-money activity — much of it seeded during the quiet months of crypto winter — teeing up crypto’s next bull run? </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Here’s what you need to know.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Money keeps flowing into crypto investment products.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">More than $260 million <a href="#" target="_blank" rel="noopener noreferrer">poured into</a> digital-asset investment products last week (which includes funds at crypto-focused asset managers like Bitwise, Grayscale, and ProShares), capping a six-week, $767 million inflow streak. Crypto fund inflows are often viewed as a proxy for demand among institutional investors, and the past six weeks have seen more investment than all of 2022, according to <a href="#" target="_blank" rel="noopener noreferrer">CoinShares</a>.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Unsurprisingly, bitcoin products led crypto-fund inflows at $229 million. In a sign that investor interest might be returning to Ethereum, ETH funds — which saw $100 million of outflows this year amid previously-stagnant blockchain activity — had their best week since 2022 with $17.5 million of new investment. Institutions are also showing rising enthusiasm for altcoins, with investment in products focused on Solana ($8 million), Chainlink ($2 million), Polygon ($0.8 million), and Cardano ($0.5 million) all <a href="#" target="_blank" rel="noopener noreferrer">growing</a> last week. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>VC funding for crypto initiatives just grew for the first time in 2023.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Crypto-focused venture funds <a href="#" target="_blank" rel="noopener noreferrer">raised more than $1 billion</a> last quarter, the first time fundraising totals have increased this year, which has seen fewer investments in crypto startups than last year. New major sources of funding include Blockchain Capital’s <a href="#" target="_blank" rel="noopener noreferrer">$580 million fundraise</a> in September and Polychain Capital’s <a href="#" target="_blank" rel="noopener noreferrer">$200 million raise</a> from July.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Last week, Axios reported that Coinbase investor Andreessen Horowitz (a16z) is planning a new <a href="#" target="_blank" rel="noopener noreferrer">$3.4 billion fund</a> for “growth, crypto, and bio” initiatives. And given the <a href="#" target="_blank" rel="noopener noreferrer">billions</a> that crypto-oriented VC firms like a16z and Haun Ventures raised late in the last bull run, a huge amount of capital is likely still on the sidelines, awaiting the next generation of crypto companies.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Global finance giants see a big future for tokenized assets.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Major institutions are increasingly exploring the digitization of real-world assets, including U.S. Treasuries and loans — the total market for tokenized treasuries has already <a href="#" target="_blank" rel="noopener noreferrer">increased sixfold</a> this year, to $675 million. In just one example, investment giant Franklin Templeton, which manages more than $1 trillion in assets, has tokenized more than $300 million of its U.S. Government Money Fund on the Stellar and Polygon blockchains. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Wall Street firms like <a href="#" target="_blank" rel="noopener noreferrer">JPMorgan</a> and <a href="#" target="_blank" rel="noopener noreferrer">Citigroup</a> say they see big potential in blockchain technology to enable 24-7 trading, faster settlement times, and lower costs. As BlackRock CEO Larry Fink <a href="#" target="_blank" rel="noopener noreferrer">put it earlier this year</a>, tokenization represents “the next generation for markets.”</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>The bottom line...</strong> </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">A lot of the current institutional activity began even before the current spike in prices, which was triggered by optimism that the SEC could approve Wall Street’s spot BTC exchange-traded fund applications in the near-ish future. What might happen once one or more of the planned major BTC ETFs launch? The <a href="#" target="_blank" rel="noopener noreferrer">expectation</a> from analysts is billions of dollars in new money will come pouring into crypto, much of it from financial advisers, pension funds, and other asset managers.</p><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>MAJOR MINERS </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>Activity spikes to all-time high on the Bitcoin network ahead of next year’s “halving” </strong></p></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">As bitcoin prices have ticked upward this year, BTC’s hashrate — a measure of the amount of computing effort that goes into the mining process — has spiked to an all-time high. Meanwhile, crypto mining companies continue to seek cheaper and greener sources of energy and mining company stocks are surging in value. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Here’s what you need to know.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>How does crypto mining work, anyway?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Mining is the process the Bitcoin network uses to remain secure and issue new tokens. In the early days of Bitcoin, technically savvy individuals with a decent laptop could easily become miners, but now mining is largely performed by dedicated companies with huge data-center-like operations.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Roughly every ten minutes, millions of specialized bitcoin mining computers around the world race to become the first to guess a 64-digit hexadecimal number (or “hash”). The winner gets to update the blockchain ledger with a “block” of newly verified transactions and is currently granted a 6.25 BTC block reward (worth around $219,000) in return. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>BTC’s hashrate hit new highs as the next “halving” approaches.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Bitcoin’s hashrate, which is a proxy for network activity and a key security metric, hit an all-time high this week. In addition to <a href="#" target="_blank" rel="noopener noreferrer">the correlation between rising BTC prices and hashrate</a>, the surge was likely <a href="#" target="_blank" rel="noopener noreferrer">supported</a> by a large number of new participants joining the network in anticipation of BTC’s next halving — which is expected around April of next year and will cut the block reward in half to 3.125 BTC.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Why would the prospect of a smaller block reward result in </strong><strong><i>more</i></strong><strong> miners?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Good question! It’s because the halving — which happens every four years and is designed to make bitcoin resistant to inflation by cutting down the issuance of new tokens over time — has been correlated with a <i>lot</i> of new BTC activity in the past. As a recent Morgan Stanley <a href="#" target="_blank" rel="noopener noreferrer">report</a> notes, “Historically, most of bitcoin’s gains come directly after a ‘halving’ event that occurs every four years.” (Of course, past performance is no guarantee of future returns.)</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Meanwhile, mining firms are testing greener, cheaper energy sources. </strong> </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Miners are naturally incentivized to source the electricity they use as cheaply as possible, and in many places the cheapest energy is renewable — including forms of energy that <a href="#" target="_blank" rel="noopener noreferrer">would otherwise go to waste</a>. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">In a new pilot, mining firm Marathon Digital is exploring the viability of <a href="#" target="_blank" rel="noopener noreferrer">powering mining using the methane produced by landfills</a>. “The methane naturally produced from landfills, biowaste, and elsewhere is often stranded, and Bitcoin miners like Marathon are uniquely positioned to help convert this harmful gas into a productive source of clean, renewable energy,” Marathon’s chairman and CEO told CoinDesk. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>The bottom line… </strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Bitcoin prices may have spiked to year-and-a-half highs, but many major U.S.-based mining companies have <a href="#" target="_blank" rel="noopener noreferrer">seen their stock prices rise even faster than BTC</a> in 2023 — in part benefiting from revenues boosted by the emergence of Bitcoin Ordinal NFT technology. Next up for miners: preparing for the double-edged sword that is the halving, in which network activity will likely surge but block rewards will be cut in half.</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Learn mining basics</strong></a></div><a href="#" target="_blank" rel="noopener noreferrer"><div class="desktop_hide" style="display:none; max-height:0px; overflow:hidden"><img src="https://images.ctfassets.net/q5ulk4bp65r7/11ethN8SqaxfTpSQp5dFNK/2a692d99adc4eceabaa8a5da01590f6e/650x488px_mobile__1_.png" width="100%" style="display:block; width:100%; margin:64px 0px"></div><div class="mobile_hide"><img src="https://images.ctfassets.net/q5ulk4bp65r7/2EIy1P2xeUhtobZGk8Vi8V/f8427ab27cd5eb64dfcd50efe733d669/1060x408px_desktop__1_.png" width="100%" style="display:block; width:100%; margin:64px 0px"></div></a><div style="margin-bottom:16px"><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>NUMBERS TO KNOW </strong></p></td></tr></tbody></table></div><p style="margin:16px 0px 0px; font-size:32px"><strong>$1.4 billion</strong></p><p style="margin:4px 0px 0px; line-height:1.6; word-break:break-word">Trade volume for Nike-RTFKT’s two-dozen-plus lines of <a href="#" target="_blank" rel="noopener noreferrer">NFT collectibles</a> (with revenues topping $170 million) since Nike’s 2021 purchase of digital merch company RTFKT. Owners of the NFTs can order exclusive sneakers like the new <a href="#" target="_blank" rel="noopener noreferrer">Nike Dunk Genesis Cryptokicks</a>.</p><p style="margin:16px 0px 0px; font-size:32px"><strong>8 million</strong></p><p style="margin:4px 0px 0px; line-height:1.6; word-break:break-word">Number of bitcoin addresses holding at least $1,000 of BTC, a new all-time high according to <a href="#" target="_blank" rel="noopener noreferrer">data</a> from Blockware Solutions and Glassnode. Bitcoin has rallied roughly 25% over the past month amid <a href="#" target="_blank" rel="noopener noreferrer">growing optimism</a> that the SEC could approve the first spot bitcoin ETFs in the U.S.</p><p style="margin:16px 0px 0px; font-size:32px"><strong>$5,100</strong></p><p style="margin:4px 0px 0px; line-height:1.6; word-break:break-word">Base price for the new <a href="#" target="_blank" rel="noopener noreferrer">Metavertu II</a> smartphone, which includes crypto-friendly features like a built-in wallet, a decentralized operating system for running dapps, and a “secure element chip” meant to boost privacy and security with “<a href="#" target="_blank" rel="noopener noreferrer">zero-knowledge</a>” capabilities. Want to upgrade to an alligator leather finish? You’ll need to drop $8,100.</p><p style="margin:16px 0px 0px; font-size:32px"><strong>32%</strong></p><p style="margin:4px 0px 0px; line-height:1.6; word-break:break-word">Percentage the NFT market grew from September to October as trading volumes increased by $99 million, according to <a href="#" target="_blank" rel="noopener noreferrer">DappRadar</a>. The NFT market’s first positive monthly volume move of 2023 was buoyed by a 50% spike in Ethereum-based NFTs and a 15% bounce in Solana-based NFTs.</p><p style="margin:16px 0px 0px; font-size:32px"><strong>10%</strong></p><p style="margin:4px 0px 0px; line-height:1.6; word-break:break-word">Rate of interest that stablecoin borrowers on the Aave DeFi protocol are charged <a href="#" target="_blank" rel="noopener noreferrer">as of this week</a>. Rising borrowing rates are seen as a sign that activity is returning to the DeFi sphere as traders’ appetite for risk grows.</p><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>TOKEN TRIVIA </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>An upgrade called Dencun is expected next year for which blockchain?</strong></p></div><div style="margin-top:16px"><table style="line-height:1.6; word-break:break-word"><tbody><tr><td style="padding-right:12px"><strong>A</strong></td><td>Bitcoin</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>B</strong></td><td style="padding-top:12px">Ethereum</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>C</strong></td><td style="padding-top:12px">Solana</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>D</strong></td><td style="padding-top:12px">Cardano</td></tr></tbody></table></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Find the answer at the end of the email.</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Read up on Dencun</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>NOW TRADING ON COINBASE </strong></p></td></tr></tbody></table></div><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>TIA</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://dynamic-assets.coinbase.com/93f5c37c0950575eeaea5adf840629c3eb17b426f170f86f9bbafe025d504fda1f491ff3b839f85461b6f9f14a0a5eeb7f63df5ecd6eb412f0f839a0bae80137/asset_icons/647c4333b5f51fdab5b8769cb6f2d2a554612b94bf1d18c5d7834ee644580f73.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Celestia is a modular data availability network built with the Cosmos SDK. </p></a><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>BIGTIME</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://dynamic-assets.coinbase.com/f63aaf6796e4696e4f851c0c59ebabfc77e2b33116723f2c10b6891e1da30dc6de5fdd4a139dfc2e8c8435d8c84b31d2f91bc8e6552a48b0627ee055ef36fd08/asset_icons/b11e1b396895892f80446b217cb5010a312e998b4b83f780073b8cc348bb0903.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Big Time is a multiplayer action RPG game developed by Big Time Studios. </p></a><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><p style="margin:0px; line-height:1.6; word-break:break-word"><strong>Trivia answer</strong></p><table style="margin:12px 0px 0px; line-height:1.6; word-break:break-word"><tbody><tr><td style="padding-right:12px"><strong>B</strong></td><td>Ethereum</td></tr></tbody></table><table style="margin:48px 0px 0px"><tbody><tr><td style="text-align:left"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Rebrand%20Assets/coinbase_footer_wordmark.png" alt="Coinbase" height="26" style="display:block; height:26px; margin-bottom:24px"></td></tr><tr><td><a href="#" title="coinbase ios app" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Icons/app_apple.png" alt="Download on iOS App store" height="46" style="display:block; height:46px; margin-right:8px"></a></td><td><a href="#" title="coinbase android app" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Icons/app_google.png" alt="Download on Google Play" height="46" style="display:block; height:46px"></a></td></tr></tbody></table><div style="margin-top:24px"><p style="font-size:12px; line-height:1.8; word-break:break-word; color:rgb(91,97,110)">Disclaimer: This material is the property of Coinbase, Inc., its parent and affiliates ("Coinbase"). The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Coinbase or its employees and summarizes information and articles with respect to cryptocurrencies or related topics that the author believes may be of interest. This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. No representation or warranty is made, expressed or implied, with respect to the accuracy or completeness of the information or to the future performance of any digital asset, financial instrument or other market or economic measure. The information is believed to be current as of the date indicated on the materials. Recipients should consult their advisors before making any investment decision. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or otherwise referenced in the materials. Certain links that may be provided in the materials are provided for convenience and do not imply Coinbase's endorsement, or approval of any third-party websites or their content. <br><br>© Coinbase 2023 | Coinbase Inc. <br>248 3rd St #434 <br>Oakland | CA 94607 | US <br><a href="#">www.coinbase.com</a> <br><a href="#">Get in touch</a> <br><br><br><a href="#" style="text-decoration:none">Unsubscribe</a> from future editions of Coinbase Bytes.</p></div></div></div></div><img alt="" src="http://comm.coinbase.com/CI0/0100018bb12123b5-9244d405-98d2-4699-99a3-dd41cac2b4b5-000000/Ux9ZGSnTBQAst-a5lGUtff3Vre8Q-X74HXGtMv-PNz4=326" style="display:none; width:1px; height:1px"> </body></html>
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