The cryptocurrency market experienced a turbulent day with sharp declines in leading NFT collections, a significant milestone for Gemini following its XRP credit card launch, and mounting regulatory scrutiny over tokenised stocks.
NFT Market Suffers as Ether Retreats
Blue-chip non-fungible token collections faced heavy losses as Ether retreated from record highs. Data from DeFi aggregator DefiLlama showed top projects recording double-digit drops in floor prices over the past week.
Pudgy Penguins, the market leader by 24-hour and weekly trading volume, fell 17.3% to 10.32 Ether. Bored Ape Yacht Club (BAYC) recorded a 14.7% decline to 9.59 Ether, while Doodles endured one of the steepest corrections, falling 18.9% to just 0.73 Ether.
Other well-known collections also suffered losses. Moonbirds dropped 10.5%, while Lil Pudgys fell 14.6%.
The decline coincided with Ether’s pullback after reaching an all-time high of $4,946 on Monday. The asset fell 12% on Tuesday to $4,342 before recovering slightly. At the time of writing, Ether traded at $4,433.
Gemini Overtakes Coinbase After XRP Credit Card Launch
Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has climbed above Coinbase in the US Apple App Store rankings. The surge followed the release of a limited-edition XRP Mastercard credit card developed in partnership with Ripple Labs.
The card offers users up to 4% cashback in XRP, with rewards credited instantly. Gemini described the card as “stacking without waiting” in an announcement on X.
Data from analytics firm Sensor Tower showed Gemini had moved to 16th place in the finance app category, with Coinbase in 20th. Despite Coinbase handling more than three times Gemini’s daily trading volume, Gemini co-founder Tyler Winklevoss declared that “the flippening is accelerating”.
Regulators Raise Alarm Over Tokenised Stocks
Global regulators and industry associations have issued a strong warning over the growing popularity of tokenised stocks. According to Reuters, the European Securities and Markets Authority (ESMA), the International Organization of Securities Commissions (IOSCO) and the World Federation of Exchanges (WFE) have jointly urged the US Securities and Exchange Commission’s (SEC) Crypto Task Force to intervene.
The bodies argued that tokenised stocks attempt to mimic traditional equities without offering the same protections for investors. The WFE told Reuters that it was “alarmed” by the number of platforms marketing these products as equivalent to real stocks when they are not.
The regulators maintain that tokenised securities expose investors to significant risks while lacking the safeguards of established markets. With ESMA representing one of the European Union’s key supervisory agencies, IOSCO setting global securities standards, and the WFE representing exchanges worldwide, their combined call is likely to carry significant influence.
Growing Interest in Solana Among Institutions
Meanwhile, Galaxy Digital, Multicoin Capital and Jump Crypto are reportedly raising $1 billion to acquire Solana tokens. The move signals increasing institutional interest in Solana, despite the network’s volatility and past outages.
The fundraising effort, reported by industry insiders, underlines how large players are positioning themselves ahead of potential future growth in the Solana ecosystem.
Leave a Reply