Hotairballoon Crypto Market Weekly Report (Aug 14–Aug 20)

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The crypto market continued to evolve rapidly during the week of August 14–20, with significant regulatory developments, major project updates, and strong momentum in key sectors such as Real-World Assets (RWA), Liquid Staking Derivatives (LSD), and Layer 2 solutions. This comprehensive weekly report breaks down the most impactful events,投融资 trends, on-chain data insights, and upcoming token unlocks that every investor and enthusiast should know.


Major Regulatory & Policy Developments

Regulatory clarity took center stage this week, with several jurisdictions reinforcing their commitment to building structured frameworks for digital assets.

Singapore Finalizes Stablecoin Regulatory Framework

The Monetary Authority of Singapore (MAS) officially finalized its regulatory framework for single-currency stablecoins (SCS) pegged to the Singapore Dollar or any G10 currency. The decision follows public consultations held in October 2022 and aims to ensure value stability while enabling innovation in digital transactions. MAS emphasized that well-regulated stablecoins can serve as trusted mediums of exchange in Web3 ecosystems.

Hong Kong Advances Web3 and Stablecoin Regulation

Hong Kong Chief Executive John Lee reaffirmed the city’s strong support for Web3 innovation during a tech and art forum. He highlighted that the government is actively exploring regulatory arrangements for stablecoins and remains open to global innovators in the virtual asset space. Additionally, InvestHK revealed that Hong Kong is considering launching a dedicated public blockchain for local and global use—potentially positioning the city as a regional blockchain hub.

Taiwan to Recognize “Virtual Currency Business” as Official Category

Taiwan’s Ministry of Economic Affairs announced plans to formally recognize "virtual currency business" as a commercial category. This move will allow crypto operators to form industry associations, promoting self-regulation and compliance adherence across the sector.

U.S. and Europe Move Closer to ETF Approvals

In a major development, Bloomberg reported that the U.S. Securities and Exchange Commission (SEC) is preparing to approve the first Ethereum futures ETFs. Firms like Volatility Shares, Bitwise, Roundhill, and ProShares have already filed applications. Meanwhile, Europe is set to launch its first spot Bitcoin ETF—Jacobi FT Wilshire Bitcoin ETF (BCOIN)—on Euronext Amsterdam, regulated by the Guernsey Financial Services Commission (GFSC).

👉 Stay ahead of ETF approvals and market-moving regulations with real-time insights.


Key Project Updates Across the Ecosystem

Innovation continues at full speed across DeFi, NFTs, Layer 2s, and infrastructure layers.

OpenSea Shifts to Optional Creator Fees

Starting August 31, OpenSea transitioned to an optional creator fee model, empowering creators to choose whether to charge royalties. This shift aligns with growing demand for user sovereignty and decentralized governance in NFT marketplaces.

Shiba Inu Launches Shibarium Mainnet

Shiba Inu officially launched Shibarium, its Ethereum Layer 2 scaling solution. The network supports BONE, TREAT, SHIB, and LEASH tokens and will prioritize metaverse and gaming applications. Developers can now build on a faster, lower-cost environment.

Immutable zkEVM Testnet Goes Live

Immutable launched its zkEVM testnet built on Polygon Supernets, enabling seamless migration of existing Solidity-based smart contracts. Over 20 game studios—including GameStop and Kongregate—are already collaborating on the platform, signaling strong traction in Web3 gaming.

EigenLayer Increases LST Re-Staking Cap

EigenLayer announced it will raise re-staking limits for Liquid Staking Tokens (LSTs) such as stETH, rETH, and cbETH on August 22. Once any LST reaches 100,000 tokens staked, deposits will pause temporarily. This adjustment reflects growing demand for restaking-based yield strategies.

friend.tech Surpasses Top NFT Platforms in User Adoption

Messari data shows that friend.tech attracted over 23,720 unique buyers within a week of its Base chain launch—surpassing combined user acquisition from OpenSea, Blur, and LooksRare during the same period. With over $13.25M in trading volume and $650K distributed to users via its 5% revenue-sharing model, the social trading platform is gaining rapid momentum.

PayPal Expands Crypto Offerings

Following the launch of its stablecoin PYUSD, PayPal introduced a new crypto hub allowing select users to buy, sell, and hold Bitcoin directly through the app—a sign of increasing institutional integration.


Weekly Investment Trends in Crypto

Capital inflows remained robust across DeFi, Web3 infrastructure, and emerging verticals.

DeFi Funding Highlights

Web3 & Security Investments

NFT & Metaverse Growth

👉 Discover how institutional capital shapes emerging crypto trends.


On-Chain Data: RWA, LSD & Layer 2 Trends

Real-World Assets (RWA) – TVL Hits $1.25B

According to Defillama, total value locked (TVL) in RWA protocols reached $1.247 billion**, ranking 9th among all DeFi categories. U.S. Treasury tokenization dominates the space with over **$640 million in assets, offering average yields above 5%. Franklin Templeton’s Benji Investments leads with a $294M market cap on Stellar.

MakerDAO now derives over 58% of its revenue from RWA-related activities. DAI Savings Rate (DSR) deposits surged to 1.47 billion DAI, up from 9% to 26.9% of total DAI supply following an interest rate hike to 8%. Spark Protocol’s TVL grew to $629 million, fueled by community incentives.

Liquid Staking Derivatives (LSD)

Total ETH staked on the Beacon Chain reached 25.69 million ETH (~21.6% of total supply), with over 800,000 validators active. Current staking yield stands at 4.14%.

Top LSD protocols saw mixed performance:

Notably:

Ethereum Layer 2 Update

Total L2 TVL dropped 5.93% to $9.92 billion, largely due to ETH price correction.

opBNB also progressed toward public mainnet launch, now open to infrastructure providers.


Upcoming Token Unlocks: What Investors Should Watch

Several high-profile projects are scheduled for significant token unlocks:

ProjectUnlock ValueNotes
AVAX>$100MOne of the largest unlocks this cycle
LDOSubstantialCould impact Lido governance dynamics
YGG7.04% of circulating supplyMay create short-term selling pressure

These unlocks could influence market sentiment and price volatility—monitor vesting schedules closely.


Frequently Asked Questions (FAQ)

Q: What is the significance of Singapore’s stablecoin regulation?
A: It establishes a clear legal framework for SCS issuance, enhancing investor confidence and potentially attracting global stablecoin issuers to operate under regulated conditions.

Q: Why did Starknet’s TVL drop so sharply?
A: The decline was due to temporary test deposits by OKX during integration trials—not indicative of organic outflows or user loss.

Q: How does restaking work on EigenLayer?
A: Restaking allows users to reuse their staked ETH or LSTs (like stETH) to secure additional services beyond Ethereum consensus, amplifying yield opportunities while inheriting security assumptions.

Q: Is PayPal entering full crypto trading?
A: Yes—PayPal now allows select users to buy, sell, and hold Bitcoin via its newly launched crypto center within the app.

Q: What drives DAI’s rising savings adoption?
A: The increase in DSR interest rate to 8% has made holding DAI in savings more attractive than speculative uses or lending elsewhere.

Q: Can Base sustain its growth momentum?
A: With strong backing from Coinbase and active community campaigns like Onchain Summer, Base is well-positioned for continued expansion if developer activity remains high.


Core Keywords Integrated

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