From Regulatory Relief to Ecosystem Pumps: Crypto's Momentum Builds

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Welcome to the Token Metrics Research | Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors. 

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Now let's get back to the top stories of the day.

The crypto market is increasing today, buoyed by positive developments, including renewed ETF inflows, pro-crypto policy moves from the U.S. administration, and the long-awaited resolution of the SEC's case against Ripple. Bitcoin (BTC) trades around $116,638, up 0.23% for the day, while Ether (ETH) trades above $3,900. XRP has been the standout performer, surging 11% on legal clarity.

U.S. spot Bitcoin ETFs saw net inflows of $281M on Thursday, marking the second consecutive day of positive flows after a four-day outflow streak. BlackRock's IBIT led the pack, underscoring institutional appetite. Similarly, Ether spot ETFs pulled in $222M on August 7, extending their inflow run.

Ethereum treasuries across tracked entities surpassed $10B in value, with notable accumulations by firms like BitMine Immersion and SharpLink Gaming. This signals corporate adoption of ETH as a balance sheet asset.

For investors, these inflows provide a stabilizing force; if BTC holds $116,000 over the next 48 hours, we could see a push toward $120,000, with ETH eyeing $4,000. However, monitor short-term volatility; recent outflows highlight how quickly sentiment can shift.

President Donald Trump's recent executive orders are injecting optimism into the sector. One directs the Labor Department and SEC to enable digital assets in 401(k) plans, potentially unlocking trillions in retirement capital for crypto exposure. Another addresses "unfair debanking" of crypto firms, aiming to protect access to banking services and broaden regulated product availability.

Adding to this, Trump's nomination of economist Stephen Miran, a crypto-friendly voice advocating for market access to digital assets, for a Federal Reserve Board seat could influence monetary policy, especially with a potential September rate cut on the horizon.

These moves reduce regulatory friction, but crypto natives should watch for implementation details; debanking relief could particularly benefit DeFi protocols and exchanges facing legacy banking hurdles.

The SEC's multi-year lawsuit against Ripple Labs is officially over, with both parties dismissing their appeals in the Second Circuit Court of Appeals. Judge Analisa Torres's 2023 ruling stands: Ripple violated securities laws in institutional XRP sales, resulting in a $125M penalty and a permanent injunction against future violations.

Programmatic sales, however, were not deemed securities, a key win for the industry. This resolution, amid the SEC dropping over a dozen crypto cases post-Trump's re-election, removes a significant overhang for XRP holders and sets precedents for token classification.

Solana-based memecoin launchpad Pump.fun has unveiled the Glass Full Foundation (GFF), a new initiative to support its ecosystem by providing "significant liquidity" to select community tokens. This move addresses a sharp revenue decline, with daily earnings dropping from over $7M in January to around $200,000 recently, amid competition from rivals like LetsBonk.fun.

Foundation Details and Mechanism: GFF aims to back "diehard cults" (dedicated communities) within Pump.fun's ecosystem, starting with initial deployments and planning more. Liquidity will be injected directly into tokens, though specifics on funding sources, selection criteria, and amounts remain undisclosed.

Top beneficiaries could include high-market-cap memecoins like FARTCOIN ($1B+) and Peanut the Squirrel (PNUT) ($233M+), enhancing their trading depth and price stability. 

Context and Ecosystem Impact: Pump.fun's revenue slump ties to waning memecoin hype on Solana, where LetsBonk.fun has overtaken as the top launchpad by issuances and activity. By bolstering liquidity, GFF could revitalize the Solana memecoin scene, reducing rug-pull risks and attracting more retail flow. However, without transparent criteria, it risks perceptions of favoritism; crypto natives should scrutinize on-chain data for Pump.fun's metrics.

Trump-affiliated World Liberty Financial (WLFI) has rolled out the USD1 Points Program, a loyalty initiative designed to accelerate adoption of its USD1 stablecoin. Modeled after airline miles, the program rewards users for holding, trading, staking, and using USD1 across participating exchanges and DeFi platforms. Launch partners include HTX, MEXC, KuCoin, Bitget, LBank, and others, with points earnable via trading pairs, balances, staking, and even WLFI app interactions.

Program Mechanics and Rewards: Users earn points through everyday activities with USD1, a 1:1 USD-backed stablecoin. This extends to WLFI token holders, who can unlock additional perks by bridging stablecoin utility with community incentives.

For stablecoin farmers, this adds yield-like incentives without volatility risk, which is ideal for parking capital. WLFI holders may see enhanced utility, potentially boosting token value. Watch for point redemption details; converting to WLFI or other assets could create a flywheel effect. Risks include regulatory scrutiny given WLFI's political ties.

Animoca Brands has partnered with Standard Chartered's Hong Kong arm and Hong Kong Telecom (HKT) to form Anchorpoint Financial Limited, a joint venture applying for a stablecoin issuer license under Hong Kong's new regulatory framework. The entity aims to issue HKD-backed stablecoins, bridging Web3 and traditional finance.

Anchorpoint has been in the HKMA's (Hong Kong Monetary Authority) stablecoin sandbox since July 2024 and formally expressed licensing interest on August 1, coinciding with the rollout of the Stablecoins Ordinance. Focus areas include financial market growth, payments, and on-chain asset integration. Animoca's Evan Auyang emphasized stablecoins' role in solidifying Hong Kong as a global financial hub.

Hong Kong's ordinance requires HKMA licensing for fiat-backed stablecoins, with ~40 applicants expected, but only <10 approvals likely. This contrasts with U.S. efforts like the GENIUS Act, highlighting Asia's proactive stance.

Success could accelerate stablecoin adoption in Asia, enhancing liquidity for Web3 projects and positioning Hong Kong as a crypto hub amid global regulatory shifts. For Animoca's portfolio (e.g., gaming/NFTs), licensed stablecoins could streamline in-game economies and cross-border flows.

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