Crypto Market Rallies on J.P. Morgan’s Blockchain Breakthrough
Cryptocurrencies have seen a rally, mirroring the positive sentiment in global markets, despite ongoing worries about tech valuations associated with the enthusiasm for AI. Markets responded favorably to J.P. Morgan’s orchestration of a significant commercial paper issuance on the Solana Public blockchain, underscoring the persistent institutional backing for cryptocurrencies, while the overall crypto market capitalization has experienced a rise of more than 2 percent. On Thursday, J.P. Morgan revealed that it has successfully facilitated a U.S. Commercial Paper issuance for Galaxy Digital Holdings LP, which is affiliated with Galaxy Inc. on the Solana blockchain. The financial services giant announced that the transaction stands as one of the earliest debt issuances ever executed on a public blockchain, marking it as one of the first in the U.S. to leverage blockchain technology for the issuance and servicing of securities. This represents a pivotal moment that greatly enhanced market sentiment.
J.P. Morgan assumed the role of Arranger, crafted the on-chain USCP token, and facilitated the delivery-versus-payment settlement for the primary issuance. Both the issuance and redemption proceeds were settled in USDC stablecoins issued by Circle, representing another market first for the USCP market. The aggregate crypto market capitalization has experienced a 2.2 percent increase overnight, now reaching $3.14 trillion. In a significant market shift, 64 of the top 100 cryptocurrencies are witnessing overnight gains surpassing one percent, while only 6 are encountering losses greater than one percent. Bitcoin has surged 2.6 percent over the last 24 hours, currently trading at $92,387.44, with the current price sitting approximately 27 percent beneath the all-time high of $126,198.07 reached on October 7. Although it has seen a 1.2 percent increase over the last week, it continues to face a year-to-date decline of 1.1 percent. In the U.S., Bitcoin Spot ETF products faced net outflows amounting to $77.5 million, despite the market leader, iShares Bitcoin Trust, reporting net inflows of $76.7 million. Meanwhile, the Fidelity Wise Origin Bitcoin Fund has recorded outflows totaling $103.6 million.
Ethereum saw a 1.5 percent rise overnight, currently priced at $3,247.27, and remains 34 percent below its peak of $4,953.73, with year-to-date losses capped at 2.5 percent. In the U.S., Ethereum Spot ETF products faced net outflows amounting to $42 million. Over the past 24 hours, Bitcoin experienced a fluctuation between $93,554.27 and $89,335.30, whereas Ethereum ranged from $3,272.19 to $3,149.03. Bitcoin occupies the 9th position, whereas Ethereum is ranked 37th in the global asset hierarchy according to market capitalization. XRP, now positioned 4th, experienced an overnight increase of 1.8 percent, elevating its trading price to $2.04. Meanwhile, BNB, holding the 5th rank, rose by 2.4 percent to reach $888.12, and Solana, ranked 7th, surged by 6.2 percent to $139.41. TRON has achieved the 8th position overall, although it has faced a decline of 1.1 percent, now trading at $0.2774.
Dogecoin, now positioned at the 9th rank, saw a rally of 2.3 percent overnight, elevating its trading price to $0.1411. Meanwhile, Cardano, holding the 10th rank, experienced a 2.2 percent increase, reaching $0.4253. Merlin Chain, ranked 100th, surged overnight, leading the top 100 cryptocurrencies with an impressive gain exceeding 20 percent. In contrast, Tezos, ranked 90th, managed to outperform its peers in the top 100 cryptocurrencies by experiencing a decline of 3.7 percent overnight.
