Ainslie Crypto Weekly Wrap-Up 

Ethereum’s Anniversary: A Year of Progress Amidst Hiccups

 

Ethereum has celebrated one year since it transitioned to the energy-efficient proof of stake (PoS) model, replacing the proof of work (PoW) system. The network has, indeed, expanded, boasting an increase from 205M to 245M unique addresses. Consequently, the influx has caused a few hitches, including transaction delays and occasional network disturbances. The rise of staking, allowing ETH holders to earn while retaining their holdings, has added to the complexity. Furthermore, Ethereum’s layer-2 networks are thriving, showing more than a fivefold increase in transactions compared to the main net.

 

In other updates, Ethereum’s current standing against Bitcoin has somewhat dimmed. Yet, industry leaders remain hopeful, with promises of lower transaction fees and faster transaction speeds in future upgrades.

 

The Growing Chorus for Universal Crypto Regulations

As the crypto domain globalises, international financial bodies and nations are increasingly advocating for a holistic regulatory approach. Collaborations to mitigate potential financial system threats are in full swing. The Bank for International Settlements (BIS) and the International Monetary Fund (IMF) are pioneering initiatives to monitor crypto activities and bolster regulation. Notably, the BIS’s Project Atlas seeks to track crypto transactions both on and off-chain, aiming for a holistic understanding and potential early warning systems for global financial stability. The IMF, too, has introduced a matrix to evaluate macro-financial risks stemming from crypto assets.

 

Quick Highlights:

• Regulation & Security: FTX under the lens; Israel’s move against crypto accounts backing Hamas; Overseas firms overlooking UK crypto advertising norms.
• Crypto Business Bytes: Visa’s crypto ventures clock $1B since 2021; Deus X Capital steps into the scene with $1B; DBS dives deep into crypto.
• Web3 & DeFi: Hong Kong VC giant invests $100MM in Web3; TON garners significant investment for its Web3 aspirations; Stellar and PwC unveil a Web3 assessment framework for emerging markets.

 

Crypto Market Insights:

As we close out our weekly roundup, it’s clear the crypto sphere remains a dynamic and ever-evolving landscape. Bitcoin stands firm, a testament to its resilient nature, while Ethereum, facing a dip of 5.3%, and other prominent altcoins have showcased the market’s innate volatility, leading to an overall 1.5% decline in the global crypto market cap, now resting at $1.06T. Geopolitical tensions, particularly in the Middle East, have sent ripples throughout the commodity markets, reigniting concerns about inflation. All eyes now turn to the imminent release of September’s economic data, with the Producer Price Index and Consumer Price Index taking centre stage. As we anticipate the next FOMC meeting on November 1st, the consensus leans towards a stable interest rate. The crypto community remains on its toes, ever-watchful and eager to decipher the market’s next move.

 

 

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