This week in Crypto (September 4 –September 11)
The Etheruem merge from a Proof-of-Work to a Proof-of-Stake block validation mechanism has and will dominate the headlines for the next few weeks. The Merge is expected to take place between September 13th to the 15th. Main points to watch during this time are: 1) whether a hard fork happens with POW ETH tokens and 2) the trading strategies investors will deploy to capitalize. ETH derivatives have already bypassed all previous records for trading and open interest (see below).
Stablecoin wars are heating up with Binance, the largest crypto currency exchange by volume, announcing that it will end the support for USDC and other stablecoins in favour for their own token, BUSD. Binance will prioritize its own stablecoin with the aim of boosting trading liquidity and capital efficiency on its platform. Over the medium term, it will be interesting to watch if this move helps BUSD grow adoption outside of the native trading platform. Secondly whether this will have negative implications for other stablecoins specifically those used in decentralized exchanges and DeFi protocols.
On the regulatory front, the traditional song and dance of whether crypto is good or bad continued over the past week. The chairman of the SEC, Gary Gensler reiterated his adamant belief that most tokens are securities under the Howey Test. While, in more positive move and pragmatic move, banking regulation insiders claimed that there is a growing movement of encouraging banks towards more openness to engage in crypto as an indirect way of injecting some regulatory rigour.
In broader crypto adoption news, global trends of those working in the crypto space outside of the US may provide insights into the future use of stablecoins. 56% of the companies surveyed offer stablecoins as the primary payment option, with nearly all offering payment in the dollar-pegged USD Coin (USDC). With adoption growing over time, it is no surprise VCs are investing heavily in the infrastructure for payments in crypto tokens.
Lastly, the big read of the week explores the topic of using crypto in the real world. Below, FT explores the burgeoning trend of buying real estate with crypto. Specifically, documenting the first real estate sale in Portugal and the trends ramifications for the future.
Major Headlines:
Ethereum activates Bellatrix upgrade as last step before The Merge
Ether derivatives smash milestones left and right as The Merge looms
Binance to end support for USDC, two other stablecoins in favor of its own BUSD
Digital assets belong in traditional banking, ex-U.S. regulator says
Gensler: SEC has been ‘clear’ on cryptocurrencies
Web3 Workers Outside the U.S. Prefer Payment In Crypto, Study Shows
August crypto VC roundup: Funding hits 15-month low
https://www.theblockcrypto.com/news+/168379/august-crypto-funding-roundup-vc-deals
Big read:
Crypto real estate: the property market built on digital assets
Chart of the Week:
New to trading? Try crypto trading bots or copy trading
