Cryptocurrency Market Insights & Trends 2023



cryptocurrency market

Welcome to the exciting world of cryptocurrencies! In 2023, the cryptocurrency market experienced a rollercoaster ride, with thrilling twists and turns that kept investors on their toes. From the narrowing discount of the Grayscale Bitcoin Trust (GBTC) to the declining market share of Binance, the squeeze on USDC, the rise of Bitcoin NFTs, and the overall recovery of the crypto market, there were significant changes that shaped the industry throughout the year.

So, what were the key trends and insights that defined the cryptocurrency market in 2023?

Key Takeaways:

  • The discount of the Grayscale Bitcoin Trust (GBTC) to its net asset value (NAV) reached its lowest level in over two years, signaling optimism for the approval of a spot bitcoin ETF in the U.S.
  • Binance faced legal and regulatory challenges, resulting in a decrease in its market share among non-USD exchanges.
  • USDC experienced a depegging from the U.S. dollar, while Tether strengthened its domination in the stablecoin market.
  • Bitcoin-based NFTs gained traction, accounting for a significant portion of the peak weekly NFT trading volume.
  • The crypto market bounced back, with Bitcoin, Ethereum, DeFi, and Solana showing impressive gains.

GBTC’s Narrowing Discount to NAV

When it comes to investing in cryptocurrencies, the Grayscale Bitcoin Trust (GBTC) has long been a popular choice for many investors. However, in recent times, GBTC’s discount to its net asset value (NAV) has been a topic of discussion within the crypto community. And the news is…the discount is narrowing!

The discount of GBTC to its NAV reached its lowest level in over two years. A major factor contributing to this development was Grayscale Investments’ recent victory against the Securities and Exchange Commission (SEC). This favorable outcome has boosted investor confidence and resulted in GBTC’s discount currently trading below 10% for the first time since July 2021.

This narrowing discount is significant as it indicates increased optimism among investors regarding the approval of a spot Bitcoin ETF in the U.S. A spot Bitcoin ETF would allow investors to gain exposure to Bitcoin directly, without the need to navigate the complexities of futures contracts. This approval could have far-reaching implications for the cryptocurrency market, attracting more institutional investment and potentially propelling Bitcoin to new heights.

So, if you’ve been keeping an eye on GBTC, now might be the perfect time to consider its potential as the crypto market continues to evolve. Stay tuned for further updates on the discount of GBTC and its impact on the cryptocurrency landscape.

Binance’s Declining Market Share

Oh, Binance, how the mighty have fallen! In 2023, Binance found itself in some hot water with the Department of Justice, facing quite a few legal and regulatory headaches. The Department of Justice didn’t hold back, settling criminal charges against Binance, alleging money laundering and sanctions violations. Ouch!

But wait, there’s more! The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission also took their swings, hitting Binance with lawsuits left and right. It seems like everyone wanted a piece of the action.

Now, let’s talk numbers. Binance’s market share among non-USD exchanges plummeted from over 70% to a mere 46% by the end of the year. That’s quite a tumble! It seems like investors were a bit skeptical after all the legal drama. Can you blame them?

“Hey Binance, remember when you used to dominate the market? Those were the days!”

Hey, at least Binance can say it made headlines, right? But with market share slipping away and lawsuits piling up, they’ll need to work hard to bounce back. Time will tell if Binance can regain its former glory or if its declining market share is a sign of a more permanent setback.

Key Takeaways

  • Binance faced legal and regulatory challenges in 2023, with the Department of Justice settling criminal charges against the company for money laundering and sanctions violations.
  • The SEC and the Commodity Futures Trading Commission also filed lawsuits against Binance, adding to the company’s legal woes.
  • Binance’s market share among non-USD exchanges dropped from over 70% to around 46% by the end of the year.

USDC Squeeze

In 2023, the stablecoin market witnessed a dramatic event that shook the dominance of USDC, a stablecoin issued by Circle. Starting the year with a 32% market share, USDC faced a sudden depegging from the U.S. dollar, which resulted in a drastic 15% drop in its market cap within a mere 24 hours. As a consequence, USDC’s market share plummeted to a mere 19% of the total stablecoin supply.

On the other hand, Tether, another popular stablecoin, strengthened its grip on the market during this turbulent period. Tether managed to solidify its dominance, capturing a staggering 71% market share in the stablecoin market.

This sudden squeeze on USDC illustrates the inherent volatility and risks associated with stablecoins, even those backed by prominent companies like Circle. With the stablecoin market being a critical component of the cryptocurrency ecosystem, the USDC squeeze serves as a stark reminder of the need for stability and trust in these digital assets.

The Rise and Fall of Stablecoins

Stablecoins, as the name suggests, are designed to offer stability in an otherwise volatile crypto market. These digital assets are typically pegged to a stable asset, such as a fiat currency, to minimize price fluctuations. USDC and Tether are prominent examples of stablecoins, providing users with a reliable alternative for storing value and transferring funds.

However, the USDC squeeze highlights the inherent volatility within the stablecoin market. Despite efforts to maintain a stable value, stablecoins are not immune to sudden shocks and market dynamics. The depegging of USDC from the U.S. dollar serves as a cautionary tale, emphasizing the importance of robust mechanisms and regulatory oversight for stablecoins.

While stablecoins continue to play a vital role in the crypto ecosystem, events like the USDC squeeze serve as reminders for investors to exercise caution and be aware of the risks involved in these digital assets.

StablecoinMarket Share (2023)

The table above illustrates the market share of notable stablecoins in 2023, showcasing the dominance of Tether and the significantly diminished presence of USDC following the squeeze. The emergence of DAI with a 5% market share indicates the growing diversification within the stablecoin market, as investors seek alternatives to mitigate risks.

Bitcoin Helps NFT Sector Make a Comeback

When it comes to NFTs, Bitcoin isn’t usually the first cryptocurrency that comes to mind. However, thanks to the innovative Ordinals protocol, Bitcoin has made a significant impact on the NFT sector, breathing new life into the digital art market.

The Ordinals protocol takes advantage of the blockchain technology underlying Bitcoin to store and trade digital content, allowing users to create unique and tradable assets. With the ability to transfer ownership securely and transparently on the Bitcoin blockchain, artists and collectors alike have embraced this new avenue for NFT creation and distribution.

The rise of Bitcoin-based NFTs has been nothing short of remarkable. According to data from “First source”, Bitcoin-based NFTs accounted for around 59% of the peak weekly NFT trading volume in 2023. This surge in activity has not only attracted new participants to the NFT ecosystem but also revived interest in the art and collectibles market.

“Bitcoin’s entry into NFTs has been a game-changer. The Ordinals protocol has opened up new possibilities for artists, collectors, and investors, showcasing the versatility and potential of blockchain technology,” explains expert name, a renowned crypto enthusiast.

Exploring the Inscriptions of Bitcoin-based NFTs

With the Ordinals protocol, Bitcoin-based NFTs have gained a unique feature—the ability to include inscriptions. These inscriptions allow artists to embed additional information, messages, or even custom code within their NFTs. This feature has further expanded the creative opportunities for artists and added value to collectors.

Imagine owning a digital artwork that not only carries its aesthetic beauty but also contains hidden messages or interactive elements. Bitcoin-based NFTs with inscriptions offer a blend of artistry and interactivity, creating a truly engaging and dynamic experience for collectors.

One notable example is the inscription by artist name, which includes a hidden message that reveals the inspiration behind the artwork and offers a glimpse into the artist’s creative process. Inscriptions have become a sought-after feature in the NFT market, adding an extra layer of intrigue and value to Bitcoin-based NFTs.

Bitcoin Helps NFT Sector Make a Comeback

The Future of Bitcoin and NFTs

The collaboration between Bitcoin and the NFT sector has only just begun. As more artists, collectors, and investors recognize the potential of Bitcoin-based NFTs and the Ordinals protocol, we can expect to see continued growth and innovation in this space.

The combination of Bitcoin’s robust blockchain infrastructure and the creativity of artists is a powerful force that will shape the future of the NFT market. With inscriptions offering new possibilities for expression and interaction, Bitcoin-based NFTs are poised to capture the imagination of art enthusiasts and collectors worldwide.

As the NFT sector expands and evolves, it’s clear that Bitcoin will continue to play a significant role, bridging the gap between the traditional cryptocurrency world and the emerging landscape of digital art and collectibles.

Crypto Market Bounces Back

After a turbulent year in 2022, the crypto market showed its resilience and made a strong comeback in 2023. Bitcoin, the leading cryptocurrency, experienced a remarkable gain of around 160%, closing the year at $42,600. This surge in value has once again put Bitcoin in the spotlight, solidifying its position as the digital gold of the cryptocurrency market.

Ethereum, the second largest cryptocurrency by market capitalization, also saw significant gains in 2023. With a growth rate of 91%, Ethereum demonstrated its ability to adapt and thrive in the ever-evolving crypto market. Its innovative smart contract functionality and robust developer community continue to attract both investors and developers.

But it wasn’t just Bitcoin and Ethereum that made waves in 2023. The decentralized finance (DeFi) sector also experienced remarkable growth, closing the year with a notable 67% increase. DeFi platforms, utilizing blockchain technology, provide users with opportunities for lending, borrowing, and yield farming, creating a vibrant ecosystem within the crypto market.

One cryptocurrency that emerged as a clear winner in 2023 was Solana. With a staggering nearly 1,000% increase in value, Solana established itself as one of the top ten cryptocurrencies. Its high throughput and low transaction costs make it an attractive choice for developers and users alike, propelling Solana to new heights within the crypto market.

CryptocurrencyPercentage Gain
SolanaNearly 1,000%

The strong performance of Bitcoin, Ethereum, DeFi, and Solana in 2023 underscores the continued growth and potential of the crypto market. As more individuals and institutions recognize the benefits and opportunities offered by cryptocurrencies and blockchain technology, the market is expected to further expand and evolve in the coming years.

Spot Bitcoin ETF Approvals Awaited

Are you ready for a potential game-changer in the cryptocurrency world? Several asset management firms are eagerly awaiting the approval of spot Bitcoin ETFs by the Securities and Exchange Commission (SEC). If approved, these ETFs would allow institutional investors like you to invest in actual bitcoins rather than futures contracts, opening up a whole new realm of possibilities.

The SEC has been meeting with representatives from various firms and industry experts to discuss the potential benefits and risks of spot Bitcoin ETFs. The rulings on these applications are expected to be made in early 2024, and the anticipation is building.

“The approval of spot Bitcoin ETFs would be a significant milestone for the cryptocurrency market, attracting more institutional investment and bringing a sense of legitimacy to the asset class.”

– Industry Expert

So, what makes these spot Bitcoin ETFs so exciting? Well, they provide a direct and regulated way for you to invest in Bitcoin, one of the most popular and valuable cryptocurrencies out there. By gaining exposure to actual bitcoins, you can potentially benefit from the price movements and potential long-term appreciation of this digital asset.

Not only would spot Bitcoin ETFs increase accessibility to Bitcoin for institutional investors, but they would also provide added liquidity and stability to the market. This approval is seen as a bullish catalyst that could drive significant growth and adoption of the cryptocurrency.

Benefits of Spot Bitcoin ETFs:

  • Direct exposure to actual bitcoins
  • Regulated and transparent investment vehicle
  • Potential for increased market liquidity
  • Attract more institutional investors
  • Boost market confidence and legitimacy

Imagine the possibilities if you and other institutional investors can get direct exposure to Bitcoin through these ETFs. The potential for exponential growth and the diversification benefits are immense, making spot Bitcoin ETFs a highly anticipated development in the market.

As the SEC makes its rulings on these applications, all eyes are on the future of spot Bitcoin ETFs. Will the approvals come through? Only time will tell, but if they do, you can expect a significant shift in the dynamics of the cryptocurrency industry.

Spot Bitcoin ETF Approvals Awaited

Resurging and Expanding Use Cases for NFTs

Despite the market collapse in 2022, NFTs (Non-Fungible Tokens) are making a strong comeback in 2023 with resurging and expanding use cases. Experts predict a revival in the adoption and integration of NFTs in various industries. Let’s explore some of the exciting areas where NFTs are finding new applications:

NFTs in Gaming

Gaming has emerged as a thriving sector for NFTs. Players are unlocking the power of NFT-linked digital cards to enhance their in-game experiences. These NFTs provide unique perks, abilities, and collectible items that players can buy, sell, and trade. They introduce a new dimension of rarity, ownership, and value in the gaming world, revolutionizing how gamers engage with their favorite titles.

NFTs in Fashion

Leading fashion brands like Nike and Prada have embraced NFTs as a means to engage with their fans in innovative ways. NFTs allow these brands to create virtual fashion items, limited-edition collections, and exclusive experiences that enthusiasts can own and showcase in the digital realm. By blending fashion and NFT technology, these brands are tapping into the growing market of virtual identities and digital fashion.

NFTs in Real Estate

The real estate industry is also exploring the potential of NFTs to streamline transactions and improve efficiency. NFTs can represent ownership of properties, facilitating faster and more secure transfer of titles and deeds. By leveraging blockchain technology, real estate professionals can reduce paperwork, increase transparency, and enhance the overall buying and selling process. NFTs open up exciting possibilities for fractional ownership and democratized access to real estate investments.

As NFTs continue to find new use cases in various sectors, their impact on the digital economy is becoming increasingly evident. From gaming to fashion and real estate, NFTs are revolutionizing traditional industries and shaping the way we perceive and interact with digital assets. As the market recovers and evolves, the potential for NFTs to redefine value, ownership, and creativity is on the rise.

Continuing Fallout from FTX Collapse

The collapse of FTX, once a major crypto exchange, has had far-reaching consequences in the industry. The founder was arrested, and the alleged Ponzi scheme and losses have impacted numerous companies and investors. This event has highlighted the importance of cold wallets, offline storage solutions for cryptocurrency, as a safeguard against bankruptcies and hacks. Interest in cold wallets has increased as a result.

As the FTX collapse unfolded, it sent shockwaves through the crypto community. The once-prominent exchange, known for its innovative products and user-friendly platform, crumbled under the weight of financial mismanagement and fraudulent activities. The founder’s arrest served as a stark reminder of the risks associated with investing in unregulated platforms.

The fallout from the FTX collapse has not only affected the exchange itself but also the wider cryptocurrency industry. Companies that had affiliations with FTX, whether through partnerships or investments, have suffered significant losses. Investors who trusted the exchange with their funds are now grappling with the realization that their hard-earned money may be lost.

“The collapse of FTX has been a wake-up call for the entire industry. It underscores the importance of due diligence and the need for regulatory oversight in the crypto market.” – Crypto industry expert

One of the key lessons learned from the FTX collapse is the critical role of cold wallets in safeguarding cryptocurrency assets. Unlike hot wallets, which are connected to the internet and thus vulnerable to hacks, cold wallets store digital currencies offline. This offline storage significantly reduces the risk of theft or loss due to exchange failures or security breaches.

Interest in cold wallets has surged in the aftermath of the FTX collapse, as investors seek more secure ways to protect their assets. Cold wallets offer peace of mind and give individuals complete control over their private keys, ensuring that they are the sole custodians of their funds.

Why Cold Wallets Matter

Using cold wallets is essential for those who want to take a proactive approach to protecting their digital assets. With the increasing number of exchange collapses and hacking attempts, it’s crucial to prioritize security.

  • Enhanced Security: Cold wallets provide an added layer of security by keeping cryptocurrency offline and out of reach from potential hackers.
  • Peace of Mind: Knowing that your funds are stored in a secure offline environment can give you peace of mind, even during times of market volatility or exchange crises.
  • Protection Against Bankruptcy: Cold wallets ensure that your funds are not at risk of being seized or frozen in the event of an exchange’s collapse or bankruptcy.

As the crypto industry continues to evolve, the FTX collapse serves as a stark reminder of the importance of protecting your investments. Investing in a high-risk market requires caution and a proactive approach to security. By utilizing cold wallets, you can mitigate the risks associated with exchange failures and keep your funds safe.

FTX Collapse and Cold Wallets

Increasing Regulation of Cryptocurrency and Exchanges

Regulatory scrutiny of the cryptocurrency market is intensifying, and the U.S. government is taking significant steps to regulate the industry. The Securities and Exchange Commission (SEC) and other regulatory bodies are actively pushing for the implementation of more laws and regulations in various aspects of crypto, particularly focused on stablecoins and spot markets.

The SEC is leading the charge to ensure that the cryptocurrency market operates within legal boundaries and protects investors. The agency has been actively working on enforcing compliance with existing regulations and proposing new rules to address the fast-paced and evolving nature of digital assets.

One area of focus for regulators is stablecoins, which are cryptocurrencies pegged to a stable asset like the U.S. dollar. The rapid growth and potential systemic risks associated with stablecoins have raised concerns among regulators. As a result, they are exploring ways to further regulate and supervise the issuance, custody, and redemption of stablecoins to safeguard financial stability.

“Stablecoins have the potential to significantly impact the economy and financial stability. It is crucial that we have robust regulations in place to mitigate risks and ensure investor protection.”

In addition to stablecoins, regulators are also closely monitoring spot markets, where cryptocurrencies are bought and sold for immediate delivery. Recent market manipulations and fraudulent activities have underscored the need for increased oversight and transparency in these markets.

Furthermore, discussions are underway regarding the potential implementation of a Central Bank Digital Currency (CBDC). A CBDC is a digital form of a country’s fiat currency issued by the central bank. The objective of a CBDC is to provide a secure and efficient digital payment system while maintaining control over the monetary policy and regulatory framework.

The Benefits of CBDC:

  • Enhanced financial inclusion
  • Reduced transaction costs
  • Improved security and transparency

The Challenges of CBDC:

  • Data privacy concerns
  • Infrastructure readiness
  • Integration with existing financial systems

The potential introduction of a CBDC could address some of the risks associated with cryptocurrencies, such as money laundering and financial stability. However, it also presents challenges that need to be carefully navigated.

Regulatory DevelopmentsImpact
The SEC’s crackdown on unregistered Initial Coin Offerings (ICOs)Increased investor protection and reduced fraudulent activities
Proposed crypto bill requiring exchanges to register with regulatorsImproved transparency and accountability in the crypto ecosystem
Initiatives to establish international regulatory frameworks for cryptoHarmonized regulations and enhanced cross-border cooperation

As the cryptocurrency market continues to gain mainstream acceptance, it is becoming increasingly important to strike a balance between innovation and regulation. The goal is to foster a safe and vibrant ecosystem that encourages innovation while protecting investors and maintaining financial stability.

2024 Crypto Market Stories to Watch

As we enter 2024, the crypto market is poised for another year of exciting trends and developments. Keep your eye on these key stories that will shape the industry:

The Bitcoin Halving Event

The highly-anticipated Bitcoin halving event is expected to occur in 2024. This event, which happens approximately every four years, will see the number of new Bitcoins produced per block reduced by half. The previous halvings in 2012 and 2016 had a significant impact on the market, leading to price surges and increased interest in Bitcoin. Traders and investors will closely monitor the halving to gauge its potential effects on the market.

Ongoing Regulatory Battles

The regulatory landscape surrounding cryptocurrencies continues to evolve, with governments around the world working to establish clear guidelines. In 2024, regulatory battles are expected to intensify as authorities seek to address concerns such as fraud, money laundering, and investor protection. Keep a close watch on how governments navigate the balance between regulation and innovation, as it will have a significant impact on the overall market sentiment.

Potential Launch of CBDCs

Central bank digital currencies (CBDCs) have gained significant attention in recent years, with several countries exploring the idea of launching their own digital currencies. 2024 could be a year of important developments in this area, as countries like China, Sweden, and the Bahamas move closer to launching their CBDCs. These digital currencies have the potential to reshape the financial landscape and impact the adoption of cryptocurrencies.

Impact of Interest Rates and Inflation

Interest rates and inflation are key factors that influence the performance of traditional financial markets. In 2024, their impact on the crypto market will be closely watched. As central banks adjust their monetary policies to combat inflation or stimulate economic growth, the crypto market could experience both direct and indirect effects. Traders and investors will analyze the relationship between interest rates, inflation, and the crypto market to identify potential opportunities and risks.

Stay informed about these stories and other developments throughout the year to make informed decisions about your crypto investments. The dynamic nature of the crypto market keeps it exciting and brings potential rewards for those who stay ahead of the curve.

Bitcoin Halving EventThe event where the supply of new Bitcoins is reduced by half, expected to occur in 2024.
Ongoing Regulatory BattlesThe continued efforts of governments to regulate cryptocurrencies and address concerns such as fraud and money laundering.
Potential Launch of CBDCsThe possible introduction of central bank digital currencies by various countries.
Impact of Interest Rates and InflationThe influence of interest rates and inflation on the performance of the crypto market.


The cryptocurrency market in 2023 was a rollercoaster ride, but it showcased the industry’s resilience and ability to adapt to challenges. From the narrowing discount of GBTC to the decline in Binance’s market share, the squeeze on USDC, and the rise of Bitcoin NFTs, the market underwent significant transformations throughout the year.

Despite the ups and downs, the crypto market showed signs of recovery and growth. Bitcoin’s resurgence and Ethereum’s gains highlighted the market’s overall bounce back, while the DeFi sector and Solana emerged as notable winners. The market’s ability to recover and thrive amidst volatility underscores its long-term potential.

Looking ahead to 2024, the approval of spot Bitcoin ETFs and ongoing regulatory developments will shape the future of the cryptocurrency market. Institutional investors eagerly await these approvals, which could act as a catalyst for increased institutional investment and further market growth.

As the crypto market continues to evolve, it’s crucial to stay informed about the latest trends and insights. Keep a close eye on Bitcoin’s halving event, ongoing regulatory battles, the potential launch of central bank digital currencies, and the impact of interest rates and inflation on the market. By staying informed and adaptable, you can navigate the ever-changing cryptocurrency landscape with confidence.


What is the status of GBTC’s discount to NAV?

The discount of the Grayscale Bitcoin Trust (GBTC) to its net asset value (NAV) reached its lowest level in over two years, trading below 10% for the first time since July 2021. This narrowing discount indicates increased optimism for the approval of a spot bitcoin ETF in the U.S.

What challenges did Binance face in 2023?

Binance faced significant legal and regulatory challenges, including criminal charges, money laundering allegations, and lawsuits from the SEC and the Commodity Futures Trading Commission. As a result, Binance’s market share among non-USD exchanges decreased from over 70% to around 46% by the end of the year.

How did USDC perform in the stablecoin market?

USDC, issued by Circle, started 2023 with a 32% market share but experienced a significant depegging from the U.S. dollar, leading to a 15% drop in market cap in just 24 hours. USDC’s market share fell to 19% of the total stablecoin supply, while Tether strengthened its domination with a 71% market share.

How did Bitcoin contribute to the revival of the NFT sector?

Despite being traditionally less associated with NFTs, Bitcoin saw a surge in NFT activity thanks to the Ordinals protocol. Bitcoin-based NFTs accounted for around 59% of the peak weekly NFT trading volume, creating unique and tradeable assets on the Bitcoin blockchain.

How did the crypto market perform in 2023?

The crypto market bounced back in 2023, with Bitcoin gaining around 160% and Ethereum seeing gains of 91%. The DeFi sector also performed well, closing the year with 67% gains. Solana emerged as the biggest winner among the top ten cryptocurrencies, with a nearly 1,000% increase in value.

What is the status of spot Bitcoin ETF approvals?

Several asset management firms are awaiting the approval of spot Bitcoin ETFs by the SEC. These ETFs would allow institutional investors to invest in actual bitcoins rather than futures contracts, and rulings are expected in early 2024. Approval of spot Bitcoin ETFs is seen as a bullish catalyst for the market and could attract increased institutional investment.

What are the potential use cases for NFTs in 2023?

Despite a market collapse in 2022, experts predict a resurgence in the use cases for NFTs in 2023. Gaming, fashion, and real estate industries are embracing NFTs for in-game perks, brand collaborations, and faster property transactions, respectively.

What were the consequences of the FTX collapse?

The collapse of FTX, a major crypto exchange, resulted in the founder’s arrest and impacted numerous companies and investors involved in the alleged Ponzi scheme and losses. This event highlighted the importance of cold wallets as a safeguard against bankruptcies and hacks, leading to increased interest in cold wallet solutions.

How is the cryptocurrency market being regulated?

Regulatory scrutiny of the cryptocurrency market is intensifying, with the U.S. government taking steps to regulate the industry further. The SEC and other regulators are pushing for more laws and regulations, particularly in areas such as stablecoins and spot markets. Discussions are also ongoing for the potential implementation of a central bank digital currency (CBDC) as a response to the risks associated with cryptocurrencies.

What are the key trends and developments to watch in the crypto market in 2024?

In 2024, key trends and developments to watch in the crypto market include the Bitcoin halving event, ongoing regulatory battles, potential launch of central bank digital currencies, and the impact of interest rates and inflation on the market.

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