Connect with us

Blockchain News

Burnt Ethereum Edges Closer to a Billion-Dollar Value

Published

on

After the London Hardfork or EIP 1559 upgrade went live on August 5, the first-ever deflationary block on the Ethereum network occurred because scarcity was introduced every time Ether was burnt after being used in transactions.

Market analyst Lark Davis disclosed that burnt Ethereum was inching closer to the billion-dollar mark. He explained:

“We’re almost at a billion dollars of Ethereum burnt due to EIP 1559. Thus there has been a billion less in sell pressure from miners. The economics of Ethereum is rocket fuel, and it will only intensify when The merge happens, and we switch from mine and dump to stake and save.”

The London Hardfork upgrade set a base fee for every transaction undertaken. Furthermore, it eliminated the use of other digital tokens for the payment of Ethereum fees. Only Eth was utilised, thus restoring the unique relevance of the ETH cryptocurrency.

Short-term ETH holding increases

According to data analytic firm IntoTheBlock:

“The number of ETH holders holding for under 30 days (traders) is at its highest since May with over 3.8m addresses buying in October. This seems to be led by retail as the amount of volume held by traders is “only” 19m ETH as opposed to 26m in May.”

Image

It shows more users have been entering the Ethereum network.

Meanwhile, ETH’s development team continues to innovate and improve, given that Github’s submission rate hit a 4-month high. Github is a web-based platform used for version control. 

Image

The total value locked in Ethereum layer two recently surged to $1 billion. Ethereum L2 is a scaling solution created to mitigate congestion on the network. As a result, decentralised applications (dapps) can avoid network congestion by utilising various technologies. 

The Ethereum 2.0 deposit contract, which went live in December 2020, is expected to boost scalability by offering a transition to a proof of stake (POS) consensus mechanism from the current proof of work (POW) framework. 

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/analysis/Burnt-Ethereum-Edges-Closer-to-a-BillionDollar-Value-8a642514-4ca0-4e1b-8a8a-ca0def3e058d

Blockchain News

Zimbabwe Plans to Support Crypto ETFs, Calming Lower the Cost of Remittance

Published

on

As many countries make advances toward supporting digital currency innovations, Zimbabwe’s Finance Minister, Mthuli Ncube, has confirmed that the government is exploring ways to let cryptocurrencies thrive.

Webp.net-resizeimage (55).jpg

Speaking to the country’s citizens at an event in Dubai last week, Ncube said the country is already creating an avenue to make digital currencies like Bitcoin legal, but not to become a legal tender, as in the case of El Salvador.

The minister pointed out the fact that digital currencies are now too big to ignore and that the embrace of digital currencies can help lower the cost of remittance to the country. This inflow is on track to hit $1 billion this year. Amongst the major considerations, Ncube noted the country is working on the launch of a crypto ETF. According to him, the plans for these products are already underway, and private investors are fronting the initiative.

While acknowledging that the nation has no plan to ban digital currencies, he explained, “but our view is that we do not want it to be a currency. Want this to be an investment class. So,… through the Victoria Falls Stock Exchange platform, we will try to create crypto-based products there, which is ring-fenced within the offshore zone.”

He reassured that the ministry “has taken the first step already and created a sandbox, at the Reserve Bank of Zimbabwe (RBZ), where the idea and everything else is being tested in a safe regulated, environment where it will then migrate to this safe Victoria Falls environment.”

There are no timelines for these crypto ETF pursuits. However, he noted that the active partners helping to develop the index weighting the ETF products will be based on are from Dubai, one of the growing financial hubs in the world today.

Crypto ETF products are becoming popular today. While relatively new, countries like Canada, Brazil, and Germany have active Bitcoin ETF products. The current move from Zimbabwe may place the country as the first in Africa to float the country’s first crypto ETF.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/news/zimbabwe-plans-to-support-crypto-etfs-calming-lower-the-cost-of-remittance

Continue Reading

Blockchain News

DeFi Trails Broader Market Uptrend to Hit New TVL at $223 Billion

Published

on

The Total Value Locked (TVL) in decentralized finance (DeFi) protocols have crossed the biggest range in history. It is trading at its highest value of $223 billion, according to data from DeFiLlama.

Webp.net-resizeimage (58).jpg

The current uptick in DeFi’s TVL is marked as an encompassing growth in the broader digital currency industry, whose market cap now sits at $2.42 trillion at the time of writing.

DeFi TVL 2.png

By ranking, Curve Finance comes off as the most prominent protocol in the space and currently holds a total of $17.14 billion in Total Value Locked. As an interoperable decentralized exchange liquidity pool on Ethereum, the protocol’s uptrend growth is similar to the broader ecosystem, with the largest bit of assets locked on the Ethereum protocol.

Lending protocol Aave also sits comfortably in the second position with a $16.69 billion TVL, with the top five largest protocols made up by MakerDAO, Wrapped Bitcoin, and InstaDapp. Despite the biggest contributors of Ethereum blockchain native protocols, other public blockchain networks, including the Binance Smart Chain (BSC), Avalanche, and Fantom, also have protocols that contribute their bit to the overall growth.

DeFi has grown to offer new assistance to a wide range of investors as mainstream investment offerings do not look promising. The advent of the coronavirus pandemic placed a massive burden on the global economy. Based on this situation, central banks around the world set extremely low-interest rates to ease off the pressures. Investment securities, including government and corporate bonds, interests in savings, and others, directly impacted the broad economic fallout.

The shakedown of the global economy presented an opportunity for decentralized finance to showcase itself, offering higher interest rates and correspondingly lowering the barriers to entry per crypto-backed loans. 

The growth of DeFi has seen the TVL climb from $13.7 billion back in November 2020 to the $223 billion it currently is today, a price point that showcases the blockchain offshoot is just getting started.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/analysis/defi-trails-broader-market-uptrend-hit-new-tvl-at-223-billion

Continue Reading

Blockchain News

This CryptoPunk Owner Refuses to Accept a $9.5M Bid for His Rare NFT

Published

on

Owning a piece of Non-Fungible Token (NFT) nowadays is not just a way to own bragging rights today, it has become a prominent way to store assets for many people. This has pushed a Twitter user with the handle @richerd to reject a 2,500 ETH (approximately $9.5 million) bid for CryptoPunk #6046.

Webp.net-resizeimage (61).jpg

NFTs provide a new way to store a piece of art on the blockchain such that they prove authenticity, and are verifiable. NFTs have become one of the most important use cases of blockchain technology today, and the innovation has unleashed the creativity in digital artists around the world today, harnessing the opportunities NFT has brought.

Amongst the pioneering NFT collections are the CryptoPunks, a collection of 10,000 randomly generated images created by the startup Larva Labs. CryptoPunks is currently the top NFT collection of all time on the NFT marketplace OpenSea, with over 551,000 ETH (~$2.1 billion) in total sales volume.

A large NFT collection like CryptoPunks are often tagged by their rarities, and one of the extremely rare ones was Punk #6046 which Richerd said is “not for sale” no matter what bid was offered.

In justifying the rejection of the bid placed by poap.eth as seen on LarvaLabs page for the Punk, Richerd stated that his refusal was partly based on the fact that a huge part of his only identity has been built around the CryptoPunk.

“My identity along with the identity of other iconic Punks and apes have value beyond the NFT itself. We have our own brands similar to any other brand and that has value. Because I value my personal brand and identity, this was an easy rejection for me,” Richard tweeted, “I have huge conviction in the NFT space and in Punks. When it comes to NFTs space I think very long term. To me, my brand, identity, and what I’m building in the NFT space will be way more valuable in the long run.”

While Punk #6046 would have been the most valuable of all the CryptoPunks sold to date had the bid been accepted, Beeple’s “Everydays” remains the highest-grossing NFT piece of all time with a $69.3 million valuation when it was auctioned off in March.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/news/this-cryptopunk-owner-refuses-accept-a-$9.5m-bid-his-rare-nft

Continue Reading

Blockchain News

Google Search Trends Show a Strong Correlation with Bitcoin Price

Published

on

The crypto community has been waiting with bated breath for Bitcoin (BTC) to breach the psychological level of $60K as this would move it inches closer to the all-time high (ATH) price of $64,800 set in mid-April. 

Webp.net-resizeimage (69).jpg

This milestone recently has been attained, given that the leading cryptocurrency has been enjoying a notable upward momentum. Data shows Google search trends are positively correlated with Bitcoin price. Data analytic firm IntoTheBlock explained:

“The correlation between Google search trends for “Bitcoin search trends” and BTC’s price has climbed to 0.91, indicating a very strong correlation.”

Image

Bitcoin nosedived to lows of $30K in May as Chinese authorities intensified their crackdown on crypto mining. Charles Edwards, the founder of Capriole Investments, believes that institutional investments have played a pivotal role in Bitcoin’s move from $30,000 to $60,000. He added that a surge from $60K to $100K would be prompted by retail’s FOMO (fear of missing out).

NewYork takes the lion’s share of US Bitcoin hashrate

According to a recent report by the Cambridge Centre for Alternative Finance, the United States was ranked as the largest Bitcoin mining hub with 35.4% of the global hash rate as of the end of August.

The study noted that Kazakhstan and Russia were positioned in the second and third places, respectively. On the other hand, China’s dominance which once peaked at a high of 75% back in 2019, had hit zero percent as of July, given that Bitcoin mining activities had become unwelcome on Chinese soil.

With the majority of Bitcoin’s hashrate shifting to the United States, New York emerged first with 19.9%. Digital asset firm Foundry USA acknowledged:

“Within the U.S, 19.9% of Bitcoin’s hashrate is in New York, 18.7% in Kentucky, 17.3% in Georgia, and Texas accounts for 14%.”

Image

 

The hashrate is used to measure the processing power of the BTC network. It allows computers to process and solve problems that would enable transactions to be approved and confirmed across the network.

Image source: Shutterstock
PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://Blockchain.News/analysis/google-search-trends-show-a-strong-correlation-bitcoin-price

Continue Reading

Trending