NFT traders benefit from lower fees and increased liquidity: Glassnode Report

After a steep decline in user activity towards the end of 2022, total gas consumption by non-fungible token (NFT) transactions has risen by 97% for two consecutive months.
> This suggests that activity around NFTs is approaching levels seen during the NFT boom, according to a report by Glassnode.
> The report further states that NFT traders are currently benefiting from lower fees, increased liquidity, and improved price discovery in the NFT market due to increased competition and a shift in focus.
> However, creators may feel disadvantaged as the industry cuts back on royalty enforcement.
> Despite the renewed interest in NFTs, the Ethereum ecosystem has not yet seen an influx of new users or significant capital inflows.

Illicit Crypto Transaction Volume Reaches Record High in 2022, Chainalysis Report

Despite the ongoing market downturn in the cryptocurrency industry, illicit cryptocurrency transaction volume has risen for the second consecutive year, reaching an all-time high of $20.6 billion in 2022, according to a report by blockchain analytics firm Chainalysis.
> The estimate is a lower bound, as the actual figure is expected to grow over time as new addresses associated with the illicit activity are identified. Furthermore, the estimate doesn't capture proceeds from non-crypto-native crime such as conventional drug trafficking that involves cryptocurrency as a mode of payment.
> Chainalysis has raised last year's estimate of $14 billion in illicit activity to $18 billion this year, primarily due to the discovery of new crypto scams. Full report here.

Revolutionizing Virtual Assets: RAK DAO is UAE's Latest Innovation Hub

The emirate of Ras Al Khaimah in the United Arab Emirates is launching a free zone exclusively for digital and virtual asset companies, called the RAK Digital Assets Oasis (RAK DAO).
The zone is designed to support emerging technologies like blockchain, the metaverse, utility tokens, virtual asset wallets, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and decentralized applications (DApps).
> The zone will be open for applications in the second quarter of 2023. Sheikh Mohammed bin Humaid bin Abdullah Al Qasimi, chairman of the RAK International Corporate Centre, which operates the free zone, said, "We are building the free zone of the future for companies of the future." More here.

Cryptocurrency Market Surges to $1.1 Trillion in 2023

Bank of America (BAC) has released a report stating that the cryptocurrency market is off to a strong start this year, with the token universe up 42% year-to-date to $1.1 trillion.
> According to the report, 2023 is expected to be the year of token price divergence, with tokens that provide utility and a call on cash flows outperforming meme and governance tokens.
> The report highlighted that cryptocurrencies that power smart contract-enabled blockchain platforms, on which developers can build applications, are growth assets that are exposed to the same risks as growth stocks.
> It noted that these cryptos, along with small-cap liquid tokens, have led this year's rally. Details here.

FTX Scandal Deepens: Singh's Plea Follows Guilty Pleas of Bankman-Fried's Associates

Former director of engineering at FTX Nishad Singh has agreed to plead guilty to criminal charges brought by US prosecutors as part of an investigation into the inner circle of FTX founder, Sam Bankman-Fried.
> Bankman-Fried was charged with fraud and conspiracy in December last year, with prosecutors alleging that he stole billions of dollars in FTX customer deposits to cover losses at his hedge fund, Alameda Research, and lied to investors and lenders about the financial condition of his companies.
> Singh's plea follows that of two of Bankman-Fried's closest associates, Caroline Ellison and Gary Wang, who pleaded guilty to criminal charges in December. Continue reading.

Goldman Sachs' Digital Asset Team Explores Blockchain for Private Equity and Other Markets

Goldman Sachs Group Inc.’s digital asset team is exploring the potential for blockchain technology to enhance the efficiency of private equity and other markets.
> According to the team's global head, Mathew McDermott, the bank remains "hugely supportive" of exploring blockchain applications and will be hiring "as appropriate" this year.
> McDermott revealed that GS DAP, Goldman Sachs' private blockchain, had been used by Hong Kong to sell $102 million in digital green bonds, with settlement cut to just one day after the trade.
> The team currently comprises 70 members, compared to just four in 2020, but McDermott suggested that he would continue to add staff members as needed. Full report here.

Mt. Gox Bankruptcy Repayments: UBS Strategists Weigh In on Potential Impact on Bitcoin Price

According to UBS strategists, the upcoming bankruptcy repayments of Mt. Gox may not have a significant impact on the price of Bitcoin.
> Ivan Kachkovski, a strategist at UBS, explained that the current plan provides several repayment options to creditors, including whether to receive payments in fiat or cryptocurrency and to take an early lump sum payment or wait for further asset recoveries.
> The deadline for selecting a repayment option is set for March 10, and payments may begin in September of this year.
> Kachkovski further noted that the early lump sum option with fiat repayments may require the sale of Bitcoin by the exchange to raise the necessary funds, which could fuel the long-held concern that Mt. Gox repayments would negatively affect Bitcoin's price. Continue here.

Crypto Firms to Face Stricter Regulations in France As Of January

A proposal agreed upon by the National Assembly of France stipulates that as of January, the country would impose stricter registration requirements for crypto companies.
> In a bid to strengthen France's crypto legal framework, the new laws will mandate more internal controls, cybersecurity, and conflicts of interest.
> The action comes in the wake of market volatility and as the country prepares to implement new cryptocurrency legislation from the European Union.
> France is establishing itself as a cryptocurrency centre and has already attracted businesses like Binance and Bitstamp, which have registered with the country's Financial Markets Authority (AMF).
> Registration is necessary for all companies providing trading or custody services in France and includes compliance checks on governance and anti-money laundering rules. More here.

Bitcoin and Ether Poised for Modest February Victory

> Despite experiencing a significant decline earlier this month, Bitcoin and Ether are expected to achieve a modest victory in February.
> Based on Coin Metrics data, Bitcoin has managed to secure a 0.2% increase this month. Although it pales in comparison to its remarkable 38% surge in January, which was its most impressive monthly performance since 2021.
> On the other hand, Ether has concluded the month with a 1.7% uptick, following a 31% gain in January.