January 2024 Community Updates
Hi OAX community,
We’ve officially crossed the one-month mark of the new year, and the cryptocurrency industry has been buzzing with noteworthy headlines. Let’s delve into the key updates that have been shaping our industry this month.
Post Spot Bitcoin ETF approval
Following the approval earlier this month, Fidelity has achieved a significant milestone with its FBTC spot Bitcoin ETF. Within just five days of trading, the fund attracted inflows surpassing $1 billion, joining BlackRock’s IBIT as the second fund to reach this mark. Collectively, the new US spot Bitcoin ETFs garnered nearly $1.2 billion in net flows during their initial week of trading. While these figures underscore the growing interest in Bitcoin from the traditional market, it raises questions for the broader crypto market and implications from a decentralized perspective. To gain a comprehensive understanding of the situation, be sure to check out part one of our three-part blog series as we dive deep into the intricate details.
Hong Kong’s Regulator Continues to Embraces Virtual Assets
Let’s turn our focus to Hong Kong, where the city has unveiled a three-year plan that emphasizes expansion of SFC into the realms of virtual assets, tokenization, and sustainable finance. An announcement has been made that plans are underway for tokenizing more government bonds from 2024 on top of the tokenization of green bonds last year - as part of establishing Hong Kong as a crypto hub. While the SFC is also expected to step up to combat bad actors in the space, it has made commitments to raise public awareness of potential crypto scams.
Advancements in Layer 1s and 2s
Ethereum experienced a strong finish to 2023, witnessing renewed market sentiment and robust growth in its rollup ecosystem. However, Ethereum took a backseat in the crypto narrative, with Bitcoin retaining its dominance and emerging platforms like SOL and AVAX capturing attention. Meanwhile, Layer 2 solutions such as Arbitrum and Optimism have recorded notable growth on its platform usage. Additionally, alternative Layer 2 projects like Blast, Mantle, and Metis have seen substantial growth in both price and Total Value Locked (TVL). Mantle, with its rapid TVL growth, stands out as a promising contender. Manta, the inaugural project on the Celestia network, achieved remarkable TVL figures within a short span, driven by incentives and airdrop farming. The developments we’re seeing continue to highlight the industry’s focus on blockchain infrastructures.
We’re excited to see an eventful start of the year. The OAX Foundation, headquartered in Hong Kong, is delighted to witness these industry advancements as we embrace the web3 movement. We are actively seeking partnerships to further expand our ecosystem and contribute to the crypto space. Additionally, our portfolio project, the Notifs app, remains attuned to the latest developments. We’re thrilled about the soon to be released ETF tracking feature, so stay tuned for updates!