Early exchange flow data show no clear signs of a mass migration from Binance ahead of the EU MiCA transition deadline, despite rivals' efforts to attract users. Binance recorded over $400 million in net outflows during the week beginning June 22, as the cryptocurrency exchange announced the withdrawal of its Markets in Crypto-Assets Regulation (MiCA) license application in Greece. According to DefiLlama data viewed by Cointelegraph on Sunday, Binance's seven-day net outflows amount to 0.3% of its $133.3 billion in tracked assets. Excluding BNB, Binance's native token, the outflows equal 0.35% of the exchange's $113.8 billion in crypto assets. Read more
Grayscale's research head Zach Pandl said Strategy should sell $3 billion in Bitcoin to cover its cash obligations, but CryptoQuant argued the company has other ways to support STRC. Zach Pandl, head of research at Grayscale, said he hopes Strategy will sell at least $3 billion in Bitcoin to cover most of the company’s cash obligations for the next two years. In a Saturday X post, Pandl argued that the move may restore market confidence in the company's capital structure. Contrary to his hopes, Pandl said he expects a 50-basis-point increase to the dividend rate on Strategy’s preferred stock, STRC, adding roughly $100 million in annual obligations over two years. Pandl added that this scenario “probably does not help market confidence.” Read more
A “race condition” after the system was reset prevented the sequencers from catching up, causing the second outage. A sequencer bug was responsible for two outages of the Coinbase layer-2 network Base last week, according to a post-mortem published on Saturday. In a blog, the Base engineering team said they identified a bug in sequencer block-building logic that allowed “stale journal state” to persist after a transaction validation failure. “An invalid transaction was received by the block builder and failed during execution, as expected, but erroneously did not clear the journal state that contained the accounts and storage slots that had been accessed,” said the team. Read more
“These periods have always been profitable for long-term investors,” said CryptoQuant analyst Darkfost. Analysis of Bitcoin unspent transaction outputs (UTXOs) suggests investors are capitulating, a pattern that has historically coincided with bear market bottoms. The ratio of the number of UTXOs spent in profit versus at a loss has fallen to its lowest level this bear market cycle, said CryptoQuant analyst known as Darkfost on Saturday. This is the first time this signal has triggered since the correction began, “demonstrating that the number of UTXOs spent at a loss is reaching significant levels, reflecting the start of a broader capitulation,” he said. Read more
The asset manager argues Bitcoin's fixed supply schedule does not undermine network security, even as miners face shrinking block rewards after each halving. Fidelity Digital Assets has pushed back against concerns that Bitcoin’s long-term security will deteriorate as mining rewards decline, arguing in a new research report that the network’s economic incentives remain sufficient to secure the blockchain over time. The report, authored by Fidelity research analyst Daniel Gray, reiterated the view that Bitcoin’s security depends on more than block rewards. Transaction fees, market incentives and other economic forces continue to encourage miners to secure the network and make sustained attacks prohibitively expensive, it said. The findings challenge a longstanding criticism that each quadrennial halving weakens Bitcoin’s security by reducing the issuance of new coins. Critics argue that declining block rewards could eventually erode miners’ incentives unless transaction fees grow enough to offset the shortfall...