Vitalik Buterin Floats Idea of AI-Based Code Audits, Ethereum Project Developers Back Him Up

“AI can be trained to recognize and adapt to new information and context, making it more effective at identifying vulnerabilities that may not be covered by static analysis rules,” a TokenFi developer who wished to stay anonymous told CoinDesk in an interview. TokenFi, a sister project of meme coin Floki, is building an AI-assisted code auditing platform.

Bitcoin Back Over $51K, Crypto Market Recovers as Nvidia’s Earnings Rejuvenates AI-Tokens

Bitcoin (BTC) fell to as low as $50,700 late Wednesday, while ether (ETH) dropped just under $2890 before reversing some losses. Polygon’s MATIC led losses among crypto majors, slipping 7%, while Cardano’s ADA and XRP were down as much as 5%. Meanwhile, the CoinDesk 20 Index (CD20), a benchmark for the biggest and most liquid cryptocurrencies, dropped 1.2%.

Starknet’s STRK Drops 53% Amid Token Issuance Criticism

A large part, 50.1% of STRK’s supply, has been allocated to the Starknet Foundation for community airdrops, grants and donations. 24.68% of STRK’s total supply will be distributed to early contributors and investors, while 32% has been assigned to developer StarkWare’s (its developer) employees, consultants and developer partners.

DeFi Platform Earning Yield by Shorting Ether Attracts $300M

“While new stablecoin experiments are welcome, there are several parts to Ethena that will likely be challenged, especially regarding its risk management,” Doo Wan Nam, founder of governance research firm Stable Lab, said in a Telegram chat.

Worldcoin’s Rocketing WLD Token Could Benefit Creditors of Three Arrows Capital, FTX

WLD’s rise has apparently come after AI developer OpenAI’s launch of a text-to-video generator, Sora, last week. Worldcoin’s parent company and OpenAI share the same founder, Sam Altman, and crypto traders are likely considering WLD a bet on the latter’s successes.

AI Tokens Rally as OpenAI’s Sora Brings Renewed Hope to the Sector

Sector tokens jumped 7.7% on average in the past 24 hours, CoinGecko data shows, with Ocean Protocol’s OCEAN and Fetch.AI’s FET rising more than 10%. Meanwhile, the CoinDesk 20 Index (CD20), a benchmark for the biggest and the most liquid cryptocurrencies, rose 2.68% in the past 24 hours.

Bitcoin Steady Over $52K;Traders Target $55K in Short-Term

“Bitcoin is nearing its peak and will likely be pushing for $55,000 in the coming weeks,” Ed Hindi, Chief Investment Officer at Tyr Capital, told CoinDesk in an email. “In 2024, we expect bitcoin to rally to its all-time highs, reaching the $70,000 mark early this year.”

Solana’s SOL Futures Rack Up $1B in Record Bullish Bets

The present bias towards long positions means potential for a long squeeze, where investors who hold long positions feel the need to sell into a falling market to cut their losses, thereby creating a liquidation cascade. A similar build-up in late December peaked at $1.37 billion – preceding a drop from $120 to $83, or 30%, at the time.

Ether Traders Target $3.5K as ETH Jumps on ETF Expectations

As of Thursday, Franklin Templeton, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco and Galaxy, and Hashdex, had all submitted applications for an ether ETF. They already offer spot bitcoin (BTC) ETFs, which were introduced mid-January. Since then, the funds have accumulated $11 billion worth of BTC and helped propel the price of the largest cryptocurrency through $52,000.

Bitcoin Traders Target $64K as BlackRock ETF Nears $500M in Single-Day Inflow

“We are formally seeing the beginning of the Fibonacci pattern, the target of which looks to be the $63.7K area,” Alex Kuptsikevich, the FxPro senior market analyst, said in an email to CoinDesk. “This is close to historical highs and is unlikely to be the end of the global rally, although a significant shakeout is expected.”

Sandbox’s SAND Slides, ApeCoin Steady Ahead of $125M in Unlocks

Token unlocks refer to the release of previously locked or restricted tokens into the market. These tokens become available for trading, buying, and selling after the end of their vesting period – and are typically vested for early investors, treasury, and public sale investors.

Ethereum Developers Create ‘DN-404’ Tokens After ERC-404s Send Network Fees Surging

The new token type claims to solve some of the drawbacks with ERC-404s, an experimental standard that launched last week – to such popularity that it’s already driven up congestion on the Ethereum blockchain.

Solana Leads Gains in Crypto Majors, Bitcoin Metric Suggests Low Retail Growth

“There’s no upcoming news that may have a price correlation with bitcoin except the halving, which may provide returns in the medium to long term,” shared Ryan Lee, Chief Analyst at Bitget Research, in a note to CoinDesk. “It’s also important to take market’s psychological levels, such as BTC prices ranging from $50K to previous ATH, which may cause larger price retracements.”

Bitcoin ‘Stronger’ Ahead of Halving: Grayscale

“Historically, block rewards have introduced potential sell pressure to the market, with the possibility that all newly mined bitcoin could be sold, impacting prices,” Zhao wrote. “Currently, 6.25 bitcoin mined per block equates to approximately $14 billion annually (assuming bitcoin price is $43K).”

Bitcoin ETFs Flows Could Propel BTC Prices to $112K This Year: CryptoQuant

“Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly,” Ki said. “Even with $GBTC outflows, a $76B rise could elevate the realized cap from $451B to $527-565B.”

What Is ERC-404? The Experimental Standard Whose First Token Has Rocketed 12,000% in One Week

“This standard is entirely experimental and unaudited, while testing has been conducted in an effort to ensure execution is as accurate as possible,” developer 0xacme said on Github. “The nature of overlapping standards, however, does imply that integrating protocols will not fully understand their mixed function.”

Bitcoin Crosses $46K as Year of ‘Long’ Begins, Easing ETF Selloff

“Bitcoin rose above its 50-day moving average late Wednesday, confirming the bullish medium-term trend and easing fears of a deeper correction,” said Alex Kuptsikevich, FxPro senior market analyst, in an email to CoinDesk. “On a weekly basis, bitcoin and the broader crypto market have gained strength after a long period of consolidation and are now poised to make new highs.”

Social App Friendzone to Start Operations on Polygon Network This Month

Registered users surged more than 600% from December to January, and there were 10,000 completed user quests, or activities, in January alone. The pre-launch progressive web app is initially open only to Friendzone’s network of partners, investors and in-person event attendees for early sign-ups. It claims to have seen over 3,000 registrations.

Rollup Platform Dymension’s DYM Reaches $5.2B Valuation After Botched Start

In cryptocurrency terms, modular blockchains try to specialize in a few specific applications, such as gaming or trading, while roll-ups process transactions on another, faster blockchain (known as a layer 2), and then port the transaction data back to the parent blockchain.

Whales Grab $50M in Chainlink’s LINK as Price Climbs 40% in a Month

Last month, Chainlink connected its Cross-Chain Interoperability Protocol (CCIP) with stablecoin company Circle’s Cross-Chain Transfer Protocol (CCTP) to make it easy for users to transfer the USDC stablecoin across chains. The deal allows developers to build cross-chain applications involving Circle’s USDC, including payments and other DeFi interactions, further boosting LINK’s fundamentals.

Bitcoin ETFs Pose Risk for Coinbase Stock, Leverage Shares Says

“While it is difficult to quantify the impact of the spot bitcoin ETFs on Coinbase’s revenue in the early days of their listing, over the long-term, the company is likely to be a beneficiary. As Coinbase charges custodial fees based on the total value of each account, not the number of bitcoin, the price of bitcoin is one of the determinants of the value of the funds held in custody,” Rao said.

Bitcoin Floats Above $43K as ‘Buy The Dip’ Sentiment Prevails

“Previously, the ‘what doesn’t rise, falls’ formula was often applied to cryptocurrencies,” Alex Kuptsikevich, FxPro senior market analyst, told CoinDesk in an email. “However, recent attempts to sell off after a period of stabilization have been met with increased buying.”

Apparent ‘Insiders’ Make Millions After Grabbing Ethereum Version of Dogwifhat

Over 12 wallets, termed “insiders” by the on-chain analytics tool Lookonchain, purchased 24 million Ethereum WIF tokens for $3,000 in ether. This purchase was in the same block where the deployer opened trading – implying the trader knew precisely when the tokens would be issued and traded, Lookonchain said.

Genesis Seeks Approval to Sell $1.6B in Bitcoin, Ether Trust Holdings

Nearly $1.4 billion of Genesis’ assets were held in Grayscale Bitcoin Trust (GBTC), which has since converted to become a spot exchange-traded fund (ETF). It also holds $165 million in Grayscale Ethereum Trust and $38 million in Grayscale Ethereum Classic Trust, the filing shows.